Document:

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                                                                   Exhibit 10.12

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               AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

                                  by and among

                          MEDCO HEALTH RECEIVABLES, LLC
                                    as Seller

                          MEDCO HEALTH SOLUTIONS, INC.
                                   as Servicer

                          The Persons Parties hereto as
                   Conduit Purchasers and Committed Purchasers

                          CITICORP NORTH AMERICA, INC.
                                       and
                       BANK ONE, NA (MAIN OFFICE CHICAGO)
                               as Managing Agents

                                       and

                          CITICORP NORTH AMERICA, INC.
                             as Administrative Agent

                         Dated as of September 22, 2003

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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01    Certain Defined Terms..........................................1
SECTION 1.02    Other Terms....................................................1
SECTION 1.03    Amendment and Restatement......................................2

                                   ARTICLE II

                       AMOUNTS AND TERMS OF THE PURCHASES

SECTION 2.01    Purchase Facility..............................................2
SECTION 2.02    Making Incremental Purchases...................................3
SECTION 2.03    Receivable Interest Computation................................4
SECTION 2.04    Application of Collections Prior to Termination Date...........5
SECTION 2.05    Application of Collections After Termination Date..............7
SECTION 2.06    General Settlement Procedures..................................8
SECTION 2.07    Yield and Fees.................................................9
SECTION 2.08    Payments and Computations, Etc................................10
SECTION 2.09    Dividing or Combining Receivable Interests....................10
SECTION 2.10    Breakage Costs................................................10
SECTION 2.11    Illegality....................................................11
SECTION 2.12    Inability to Determine Eurodollar Rate........................11
SECTION 2.13    Indemnity for Reserves and Expenses...........................11
SECTION 2.14    Indemnity for Taxes...........................................13
SECTION 2.15    Security Interest.............................................15
SECTION 2.16    Optional Liquidation..........................................16
SECTION 2.17    Optional Repurchase...........................................17
SECTION 2.18    Termination of Purchaser Groups...............................17

                                   ARTICLE III

                             CONDITIONS OF PURCHASES

SECTION 3.01    Conditions Precedent to Agreement.............................18
SECTION 3.02    Conditions Precedent to All Purchases.........................18

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

SECTION 4.01    Representations and Warranties of the Seller..................19

                                        i

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SECTION 4.02    Representations and Warranties of the Servicer................22

                                    ARTICLE V

                                    COVENANTS

SECTION 5.01    Covenants of the Seller.......................................23
SECTION 5.02    Audits........................................................32
SECTION 5.03    Additional Covenants of the Servicer..........................33

                                   ARTICLE VI

                  ADMINISTRATION AND COLLECTION OF RECEIVABLES

SECTION 6.01    Designation of Servicer.......................................34
SECTION 6.02    Duties of Servicer............................................35
SECTION 6.03    Reports.......................................................36
SECTION 6.04    Certain Rights of the Administrative Agent....................37
SECTION 6.05    Rights and Remedies...........................................38
SECTION 6.06    Indemnities by the Servicer...................................39
SECTION 6.07    Administrative Agent Account..................................40
SECTION 6.08    Servicer Replacement Event....................................42

                                   ARTICLE VII

                               TERMINATION EVENTS

SECTION 7.01    Termination Events............................................42

                                  ARTICLE VIII

                            THE ADMINISTRATIVE AGENT

SECTION 8.01    Authorization and Action......................................45
SECTION 8.02    Agent's Reliance, Etc.........................................45
SECTION 8.03    CNAI and Affiliates...........................................46
SECTION 8.04    Indemnification of Administrative Agent.......................46
SECTION 8.05    Delegation of Duties..........................................46
SECTION 8.06    Action or Inaction by Administrative Agent....................46
SECTION 8.07    Notice of Events of Termination; Action by Administrative
                Agent.........................................................47
SECTION 8.08    Non-Reliance on Administrative Agent and Other Parties........47
SECTION 8.09    Successor Administrative Agent................................47

                                   ARTICLE IX

                               THE MANAGING AGENTS

SECTION 9.01    Authorization and Action......................................48

                                       ii

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SECTION 9.02    Managing Agent's Reliance, Etc................................48
SECTION 9.03    Managing Agent and Affiliates.................................49
SECTION 9.04    Indemnification of Managing Agents............................49
SECTION 9.05    Delegation of Duties..........................................49
SECTION 9.06    Action or Inaction by Managing Agent..........................49
SECTION 9.07    Notice of Events of Termination...............................50
SECTION 9.08    Non-Reliance on Managing Agent and Other Parties..............50
SECTION 9.09    Successor Managing Agent......................................51
SECTION 9.10    Reliance on Managing Agent....................................51

                                    ARTICLE X

                                 INDEMNIFICATION

SECTION 10.01   Indemnities by the Seller.....................................51

                                   ARTICLE XI

                                  MISCELLANEOUS

SECTION 11.01   Amendments, Etc...............................................53
SECTION 11.02   Notices, Etc..................................................54
SECTION 11.03   Assignability.................................................55
SECTION 11.04   Costs and Expenses............................................59
SECTION 11.05   No Proceedings................................................60
SECTION 11.06   Confidentiality...............................................60
SECTION 11.07   Amendments to Financial Covenants.............................62
SECTION 11.08   GOVERNING LAW.................................................62
SECTION 11.09   Execution in Counterparts.....................................62
SECTION 11.10   Integration; Binding Effect; Survival of Termination..........63
SECTION 11.11   Consent to Jurisdiction.......................................63
SECTION 11.12   WAIVER OF JURY TRIAL..........................................63
SECTION 11.13   Right of Setoff...............................................63
SECTION 11.14   Ratable Payments..............................................64
SECTION 11.15   Limitation of Liability.......................................64
SECTION 11.16   Intent of the Parties.........................................65

                                    SCHEDULES
                                    ---------

SCHEDULE I      -    Definitions
SCHEDULE II     -    Purchaser Groups
SCHEDULE III    -    CP Rates
SCHEDULE IV     -    Deposit Accounts and Deposit Account Banks
SCHEDULE V      -    Credit and Collection Policy
SCHEDULE VI     -    Financial Covenants

                                       iii

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SCHEDULE VII    -    Reviewed Contracts
SCHEDULE VIII   -    Accounts Payable Deduction Amount and Rebate Deduction
                     Amount
SCHEDULE VII-A  -    Schedule of Client Contracts Reviewed (Assumed Governing
                     Law)

                                       iv

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                                    ANNEXES
                                    -------

ANNEX A-1       -    Form of Monthly Report
ANNEX A-2       -    Form of Weekly Report
ANNEX B-1       -    Form of Control Agreement (Deposit Account)
ANNEX B-2       -    Form of Control Agreement (Administrative Agent Account)
ANNEX C         -    Form of Assignment and Acceptance
ANNEX D         -    Form of Funds Transfer Letter
ANNEX E         -    Form of Joinder Agreement

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               AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

                         Dated as of September 22, 2003

          AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (as amended,
supplemented or otherwise modified and in effect from time to time, this
"Agreement"), dated as of September 22, 2003, by and among (i) MEDCO HEALTH
RECEIVABLES, LLC, a Delaware limited liability company, as Seller, (ii) MEDCO
HEALTH SOLUTIONS, INC., a Delaware corporation, as initial Servicer, (iii) the
Conduit Purchasers from time to time parties hereto, (iv) the Committed
Purchasers from time to time parties hereto, (v) CITICORP NORTH AMERICA, INC.
and BANK ONE, NA (MAIN OFFICE CHICAGO), as Managing Agents and (vi) CITICORP
NORTH AMERICA, INC., as Administrative Agent.

                             PRELIMINARY STATEMENTS
                             ----------------------

     A.   The Seller has acquired, and may continue to acquire, Receivables from
the Originator pursuant to the Originator Purchase Agreement by purchase or as a
contribution to the capital of the Seller.

     B.   The Seller may desire to convey, transfer and assign, from time to
time, undivided percentage interests in the Receivables (referred to herein as
"Receivable Interests") on the terms and conditions of this Agreement.

     C.   The Conduit Purchasers may, in their sole discretion, purchase the
Receivable Interests so offered for sale from time to time, and if a Conduit
Purchaser in any Purchaser Group elects not to make any such purchase, the
Committed Purchasers in such Purchaser Group have agreed that they shall make
such purchase, in each case subject to the terms and conditions of this
Agreement.

     D.   The Seller, Conduit Purchasers, the Bank Purchasers, the Managing
Agents, Administrative Agent and the Servicer are parties the Receivables
Purchase Agreement, dated as of August 8, 2003 (as amended prior to the date
hereof, the "Existing RPA").

     E.   On the terms and conditions set forth herein, the parties hereto have
agreed to amend and restate the Existing RPA in its entirety.

          Accordingly, the parties hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.01  Certain Defined Terms. Capitalized terms used and not
otherwise defined herein have the meanings specified on Schedule I.

          SECTION 1.02  Other Terms. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP. All terms used in
Article 9 of the UCC in the State of New York, as in effect on the date hereof
and not specifically defined herein, are

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used herein as defined in such Article 9. Unless otherwise expressly indicated,
all references herein to "Article," "Section," "Schedule" or "Annex" means
articles and sections of, and schedules and annexes to, this Agreement. Headings
are for purposes of reference only and shall not otherwise affect the meaning or
interpretation of any provision hereof. Any reference to any Law shall be deemed
to be a reference to such Law as the same may be amended or re-enacted from time
to time. Any reference to any Person appearing in any of the Transaction
Documents shall include its successors and permitted assigns.

          SECTION 1.03  Amendment and Restatement. Subject to the satisfaction
of the conditions precedent set forth in Section 3.01, this Agreement amends and
restates the Existing RPA in its entirety. This Agreement is not intended to
constitute a novation of any obligations under the Existing RPA. Upon the
effectiveness of this Agreement (the date of such effectiveness being the
"Effective Date"), each reference to the Existing RPA in any other document,
instrument or agreement executed and/or delivered in connection therewith shall
mean and be a reference to this Agreement.

                                   ARTICLE II
                       AMOUNTS AND TERMS OF THE PURCHASES

          SECTION 2.01  Purchase Facility. (a) The Seller may, at its option
from time to time prior to the Termination Date, offer to sell and assign
Receivable Interests to the Purchasers in each Purchaser Group at the applicable
Purchase Price specified pursuant to Section 2.02 (each such sale and
assignment, an "Incremental Purchase"). On the terms and conditions set forth
herein, (i) the Conduit Purchasers, ratably, in accordance with their respective
Conduit Purchase Limits, may, in their sole discretion, purchase the Receivable
Interests so offered for sale by the Seller and (ii) if a Conduit Purchaser in
any Purchaser Group declines to purchase any such Receivable Interest, or if a
Conduit Purchaser's Termination Event has occurred and is continuing with
respect to such Conduit Purchaser, the Committed Purchasers in such Purchaser
Group shall, ratably in accordance with their respective Commitments, severally
and not jointly, purchase such Receivable Interest. Each Incremental Purchase
shall be made among the Purchaser Groups ratably in accordance with their
respective Purchaser Group Limits, except as provided in Section 2.02(b). Under
no circumstances shall an Incremental Purchase be made hereunder if, after
giving effect thereto, (i) the aggregate outstanding Capital would exceed the
Purchase Limit or (ii) the Receivable Interest Percentage would exceed the
Maximum Receivable Interest Percentage, as determined by reference to the
information set forth in the most recent Servicer Report delivered hereunder.

          (b)  Until the Amortization Date for a Receivable Interest, the
Collections attributable to such Receivable Interest shall be automatically
reinvested in the Pool Receivables and Related Security and Collections with
respect thereto pursuant to (and subject to the priority of payments set forth
in) Section 2.04 (each a "Reinvestment Purchase") and such reinvested
Collections shall be applied pursuant to Section 2.03 of the Originator Purchase
Agreement to pay the purchase price for newly arising Receivables and/or to make
payments in respect of the Subordinated Note or other expenses of the Seller.

          (c)  Upon five (5) Business Days' written notice to the Administrative
Agent and each Managing Agent, the Seller may reduce the Commitments of the
Committed Purchasers

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by an amount equal to $10,000,000 or by a whole multiple of $1,000,000 in excess
thereof; provided that no such termination or reduction shall be permitted if,
after giving effect thereto, the aggregate Capital would exceed the Aggregate
Commitment. Upon any such reduction, the Commitment of each Committed Purchaser
and the Conduit Purchase Limit of each Conduit Purchaser shall be reduced in an
amount equal to such Committed Purchaser's or Conduit Purchaser's ratable share
of the amount of such reduction. Once reduced, the Commitments shall not be
subsequently reinstated without the consent of each Committed Purchaser.

          SECTION 2.02  Making Incremental Purchases. (a) Each Incremental
Purchase hereunder shall be made on notice delivered by the Seller to each
Managing Agent not later than 11:00 A.M. (New York City time) on the second
Business Day prior to the date of such Incremental Purchase. Each such notice
shall specify:

               (i)    the aggregate amount (which shall not be less than
          $5,000,000 and integral multiples of $100,000 in excess thereof)
          requested to be paid to the Seller for the Receivable Interests which
          are the subject of such Incremental Purchase (the "Purchase Price");

               (ii)   the allocation of such Purchase Price among the Purchaser
          Groups (which shall be proportional to the respective Conduit Purchase
          Limits of the Conduit Purchaser(s) in each Purchaser Group, unless
          such purchase is to be made by the Committed Purchasers in a
          particular Purchaser Group and the proceeds of such purchase are to be
          used solely to repay the Capital of the Receivable Interest of a
          Conduit Purchaser pursuant to Section 2.02(b));

               (iii)  the date of such Incremental Purchase (which shall be a
          Business Day); and

               (iv)   if the Assignee Rate is to apply to any such Receivable
          Interest, the requested duration of the initial Fixed Period for such
          Receivable Interest.

          No more than two Incremental Purchases may be requested by the Seller
during any single calendar month.

          Each Conduit Purchaser shall promptly notify its Managing Agent
whether it has determined to make the requested Incremental Purchase on the
terms specified by the Seller. If any Conduit Purchaser has determined not to
fund all or any portion of its share of the Purchase Price for an Incremental
Purchase, the Managing Agent for such Conduit Purchaser shall promptly send
notice of the proposed Incremental Purchase to the Committed Purchasers in such
Conduit Purchaser's Purchaser Group concurrently by telecopier specifying the
date of such Incremental Purchase, the aggregate amount of Capital of the
Receivable Interest being purchased by such Committed Purchasers (which amount
shall be equal to the portion of the Purchase Price that would otherwise have
been funded by the applicable Conduit Purchaser), each such Committed
Purchaser's portion thereof (determined ratably in accordance with their
respective Commitments), whether the Yield for the initial Fixed Period for such
Receivable Interest is calculated based on the Adjusted Eurodollar Rate (which
may be selected only if such notice is given at not later than 11:00 A.M. (New
York City time) on the second Business Day

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prior to the purchase date) or the Alternate Base Rate, and the duration of the
Fixed Period for such Receivable Interest (which shall be one day if the Seller
has not selected another period in accordance with the provisions set forth in
the definition of "Fixed Period").

          (b)  On the date of each such Incremental Purchase, the applicable
Conduit Purchasers and/or Committed Purchasers shall, upon satisfaction of the
applicable conditions set forth in Article III, make available to the Seller in
same day funds an aggregate amount equal to the Purchase Price for the
Receivable Interests which are the subject of such Incremental Purchase, at the
account set forth in the Funds Transfer Letter; provided, however, if such
Incremental Purchase is being made by the Committed Purchasers in a Purchaser
Group following the Amortization Date for a Receivable Interest owned by a
Conduit Purchaser pursuant to clause (i)(a) of the definition of Amortization
Date and any Capital of such Receivable Interest is outstanding on such date of
purchase, the Seller hereby directs such Committed Purchasers to pay the
Purchase Price for such Incremental Purchase (to the extent of such outstanding
Capital) to the applicable Purchaser Group Account, for application to the
reduction of the outstanding Capital of such Receivable Interest.

          (c)  Effective on the date of each Purchase, the Seller hereby sells
and assigns to the Purchaser(s) participating in such Purchase, an undivided
percentage ownership interest, to the extent of the Receivable Interests then
being purchased or in respect of which the reinvestment is being made, in each
Pool Receivable then existing or thereafter arising and in the Related Security
and Collections with respect thereto.

          (d)  No Conduit Purchaser shall participate in an Incremental Purchase
under this Agreement at any time in an amount which would exceed such Conduit
Purchaser's Conduit Purchase Limit less an amount equal to the aggregate
outstanding Capital held by such Conduit Purchaser.

          (e)  Notwithstanding anything herein to the contrary, a Committed
Purchaser shall not be obligated to participate in an Incremental Purchase if,
after giving effect thereto and the application of the proceeds thereof, the
aggregate Capital held by such Committed Purchaser would exceed an amount equal
to (i) such Committed Purchaser's Commitment less (ii) such Committed
Purchaser's ratable share of the aggregate outstanding Capital held by the
Conduit Purchaser(s) in such Committed Purchaser's Purchaser Group (whether or
not any portion thereof has been assigned by such Conduit Purchaser(s) under an
Asset Purchase Agreement). Each Committed Purchaser's obligation shall be
several, such that the failure of any Committed Purchaser to make available to
the Seller any funds in connection with any Incremental Purchase shall not
relieve any other Committed Purchaser of its obligation, if any, hereunder to
make funds available on the date of such Incremental Purchase, but no Committed
Purchaser shall be responsible for the failure of any other Committed Purchaser
to make funds available in connection with any Incremental Purchase.

          SECTION 2.03  Receivable Interest Computation. (a) Upon the payment of
the Purchase Price for any Incremental Purchase hereunder, (i) each Conduit
Purchaser participating in such Purchase shall acquire a Receivable Interest the
initial Capital of which is equal to the portion of the Purchase Price paid by
such Conduit Purchaser and (ii) to the extent the Committed Purchasers in any
Purchaser Group participate in such Purchase, such Committed

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Purchasers shall acquire (ratably in accordance with their respective
Commitments) a Receivable Interest the initial Capital of which is equal to the
portion of the Purchase Price paid by such Committed Purchasers.

          (b)  Each Receivable Interest shall be initially computed on its date
of Purchase. Thereafter until the Amortization Date for such Receivable
Interest, such Receivable Interest shall be automatically recomputed (or deemed
to be recomputed) on each day other than a Liquidation Day. Any Receivable
Interest, as computed (or deemed recomputed) as of the day immediately preceding
the Amortization Date for such Receivable Interest, shall thereafter remain
constant until the Termination Date occurs. From and after the Termination Date
until the Final Payout Date, each Receivable Interest shall be equal to a
fraction (expressed as a percentage) the numerator of which is equal to the
Capital of such Receivable Interest as of the Termination Date and the
denominator of which is equal to the aggregate Capital of all Receivable
Interests as of the Termination Date.

          (c)  Each Purchase shall constitute a purchase of undivided percentage
ownership interests in each and every Pool Receivable, together with all Related
Security and Collections with respect thereto, then existing, as well as in each
and every Pool Receivable, together with all Related Security and Collections
with respect thereto, which arises at any time after the date of such Purchase.
From and after the Termination Date, the aggregate Receivable Interests of the
Purchasers shall equal 100%. On the Final Payout Date, the Administrative Agent,
on behalf of the Conduit Purchasers and the Committed Purchasers, shall be
deemed to have reconveyed to the Seller all of the Conduit Purchasers' and the
Committed Purchasers' respective right, title and interest in, to and under the
Pool Receivables and Related Security and Collections with respect thereto, and
the Receivable Interests shall accordingly be reduced to zero. Following the
Final Payout Date, the Administrative Agent, on behalf of the Conduit Purchasers
and the Committed Purchasers, shall execute and deliver to the Seller, at the
Seller's expense, such documents or instruments as the Seller may reasonably
request to terminate the Conduit Purchasers' and the Committed Purchasers'
respective interests in the Receivables and Related Security and Collections
with respect thereto. Any such documents shall be prepared by and at the expense
of the Seller.

          SECTION 2.04  Application of Collections Prior to Termination Date.

          (a)  On each Business Day prior to the Termination Date, the Servicer
shall, out of the Collections received prior to such Business Day and not
previously applied pursuant to this Section 2.04 (including, if applicable, any
investment earnings received with respect to funds on deposit in the Collection
Account), apply such Collections in the following order and priority:

               (i)    set aside on its books and hold in trust for the
          Purchasers, the Managing Agents and the Administrative Agent an amount
          equal to the aggregate Yield, Fees and Servicing Fees accrued through
          such day and not previously set aside, such amount to be allocated
          among the Purchasers, the Managing Agents, the Administrative Agent
          and the Servicer ratably in accordance with the proportion of such
          amounts owing to each such Person;

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               (ii)   if the Servicer Report with the most recent data delivered
          hereunder indicates that the Receivable Interest Percentage exceeds
          the Maximum Receivable Interest Percentage, either (A) pay to the
          Purchasers (ratably in accordance with the outstanding Capital of
          their respective Receivable Interests) the amount necessary to cause
          the Receivable Interest Percentage to be less than or equal to the
          Maximum Receivable Interest Percentage or (B) if the Administrative
          Agent Account has been established pursuant to Section 6.07, deposit
          to the Administrative Agent Account the amount necessary to cause the
          Receivable Interest Percentage to be less than or equal to the Maximum
          Receivable Interest Percentage;

               (iii)  if such day is a Liquidation Day for one or more
          Receivable Interests (each a "Liquidating Receivable Interest"), set
          aside and hold in trust for the relevant Purchasers an amount equal to
          the excess, if any, of (1) the portion of the Capital allocable to
          such Liquidating Receivable Interests over (2) the Collections
          previously so set aside and allocable to such Capital pursuant to this
          Section 2.04(a) and not yet distributed to the applicable Purchasers
          hereunder, such amount to be allocated to such Liquidating Receivable
          Interests ratably in proportion to the Capital of each; provided,
          however, that if such day is a Liquidation Day by reason of the
          suspension of Reinvestment Purchases pursuant to Section 2.16, then
          the amount required to be set aside pursuant to this clause (iii)
          shall not exceed the applicable Reduction Amount;

               (iv)   if any Seller Obligations (other than Yield, Fees,
          Servicing Fees and Capital) are then due and payable by the Seller to
          any Indemnified Party, pay to each such Indemnified Party (ratably in
          accordance with the amounts owing to each) the Seller Obligations so
          due and payable; and

               (v)    remit any remaining Collections to the Seller as a
          Reinvestment Purchase, for the benefit of the Purchasers then holding
          Receivable Interests, pursuant to Section 2.01(b).

          (b)  On each Settlement Date for a Receivable Interest, the Servicer
shall pay to the relevant Purchaser(s) all Yield payable to such Purchaser(s)
pursuant to Section 2.07 out of Collections allocated or set aside for such
purpose pursuant to Section 2.04(a). On each date on which any Fees are payable
pursuant to the Fee Letters, the Servicer shall pay such Fees to the Persons
entitled thereto pursuant to the Fee Letters out of Collections allocated or set
aside for such purpose pursuant to Section 2.04(a). On each Servicing Fee
Payment Date, the Servicer shall pay to itself the accrued and unpaid Servicing
Fee out of Collections allocated or set aside for such purpose pursuant to
Section 2.04(a).

          (c)  In the event any deposit is made to the Administrative Agent
Account pursuant to Section 2.04(a)(ii)(B), the amount of such deposit shall be
allocated among the Purchaser Groups ratably in proportion to the outstanding
Capital of their respective Receivable Interests. If the amount on deposit in
the Administrative Agent Account exceeds $25,000,000, then on the next
Settlement Date applicable to any Receivable Interest (or such earlier date as
the Servicer may specify upon not less than three Business Days notice to each
Managing Agent),

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the Servicer shall distribute to each Purchaser then holding a Receivable
Interest such Purchaser's allocable share of such deposit for application to the
reduction of the Capital of such Receivable Interest. Notwithstanding the
foregoing, if on any Business Day after such deposit is made and prior to the
distribution of all or any portion of such deposit pursuant to this Section
2.04(c), the Servicer delivers a Servicer Report evidencing that the Receivable
Interest Percentage is less than the Maximum Receivable Interest Percentage, the
Servicer may withdraw the Collections so deposited for application in accordance
with Section 2.04(a) to the extent that, after giving effect to such withdrawal
and application, the Receivable Interest Percentage would not exceed the Maximum
Receivable Interest Percentage.

          (d)  In the event any Collections are set aside in respect of any
Liquidating Receivable Interest pursuant to Section 2.04(a)(iii), the Servicer
shall distribute such Collections to the relevant Purchaser(s) on or prior to
the first Settlement Date for any such Receivable Interest; provided, however,
that if at any time prior to such distribution, such Receivable Interest ceases
to be a Liquidating Receivable Interest, the Servicer need not distribute such
Collections pursuant to this Section 2.04(d) but instead may apply such
Collections in accordance with the provisions of Section 2.04(a).

          (e)  Following the occurrence and during the continuation of any
Termination Event or any Involuntary Bankruptcy Event, and at all times during
any Rating Level 3 Period or any Rating Level 4 Period, the Servicer shall (i)
transfer to the Collection Account all Collections set aside or required to be
set aside pursuant to this Section 2.04 by the Business Day following the
Servicer's receipt of such Collections, (ii) make all distributions of such
Collections pursuant to this Section 2.04 by withdrawing such Collections from
the Collection Account on the date such distribution is to be made and (iii) not
permit any withdrawals of such Collections from the Collection Account except
for the purpose of distributing such Collections in accordance with this Section
2.04. Except as provided herein, the Servicer shall not be required to segregate
any amounts set aside by it pursuant to this Section 2.04 from its other funds.

          SECTION 2.05  Application of Collections After Termination Date. (a)
On the Termination Date, the Servicer shall deposit to the Collection Account
all Collections held by it on such date (including amounts previously set aside
pursuant to Section 2.04(a)). On each Business Day thereafter until the Final
Payout Date, the Servicer shall deposit to the Collection Account all
Collections received prior to such Business Day that have not previously been
deposited to the Collection Account. The Servicer shall not make any withdrawals
from the Collection Account during such period except for the purpose of
distributing such Collections in accordance with this Section 2.05.

          (b)  From and after the Termination Date, the Servicer shall apply all
funds on deposit in the Collection Account on any Business Day that have not
been previously applied hereunder (including, without limitation, any investment
earnings received with respect to such funds) in the following order of
priority:

          (i)   first, pay to the Administrative Agent an amount equal to the
     Seller Obligations owing to the Administrative Agent in respect of costs
     and expenses incurred

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     in connection with the enforcement of any Transaction Document or the
     collection of any amounts due thereunder;

          (ii)  second, set aside and hold in trust for the Purchasers, the
     Managing Agents and the Administrative Agent an amount equal to the
     aggregate Yield and Fees and, if the Servicer is a Person other than Medco
     or an Affiliate thereof, Servicing Fees accrued through such day and not
     previously set aside, such amount to be allocated among the Purchasers, the
     Managing Agents, the Administrative Agent and (if applicable) the Servicer
     ratably in accordance with the proportion of such amounts owing to each
     such Person;

          (iii) third, set aside in the Collection Account an amount equal to
     the aggregate Capital for all outstanding Receivable Interests (to the
     extent not previously set aside), such amount to be allocated among the
     Receivable Interests ratably in proportion to the Capital of each;

          (iv)  fourth, if any Seller Obligations (other than Yield, Fees,
     Servicing Fees and Capital) are then due and payable by the Seller to any
     Indemnified Party, pay to each such Indemnified Party (ratably in
     accordance with the amounts owing to each) the Seller Obligations so due
     and payable;

          (v)   sixth, if the Servicer is Medco or an Affiliate thereof, set
     aside in the Collection Account the accrued and unpaid Servicing Fee not
     previously set aside; and

          (vi)  seventh, on the Final Payout Date, pay to the Seller any
     remaining funds.

          (c)  On each Settlement Date for a Receivable Interest from and after
the Termination Date, the Servicer shall withdraw from the Collection Account
and pay to the relevant Purchaser all amounts set aside in the Collection
Account in respect of the accrued Yield and the Capital of such Receivable
Interest. On each date on which any Fees are payable pursuant to the Fee
Letters, the Servicer shall pay such Fees to the Persons entitled thereto
pursuant to the Fee Letters out of Collections set aside for such purpose
pursuant to Section 2.05.

          (d)  On each Servicing Fee Payment Date from and after the Termination
Date, the Servicer shall pay to the Servicer the accrued Servicing Fee out of
Collections set aside for such purpose pursuant to this Section 2.05.

          SECTION 2.06  General Settlement Procedures.

          (a)  Except as otherwise required by applicable law or the relevant
Contract, any payment received from an Obligor of any Receivables shall be
applied as a Collection of the Pool Receivables of such Obligor in the order of
the age of such Receivables, starting with the oldest such Receivable.

          (b)  If on any day any Pool Receivable (or portion thereof) becomes a
Diluted Receivable, the Seller shall be deemed to have received on such day a
Collection of such Pool Receivable in the amount of such Diluted Receivable.

                                        8

<PAGE>

          (c)  If and to the extent the Administrative Agent, any Managing Agent
or any Purchaser shall be required for any reason to pay over to an Obligor any
amount received on its behalf hereunder, such amount shall be deemed not to have
been so received but rather to have been retained by the Seller and,
accordingly, the Administrative Agent, such Managing Agent or such Purchaser, as
the case may be, shall have a claim against the Seller for such amount, payable
when and only to the extent that any distribution from or on behalf of such
Obligor is made in respect thereof.

          (d)  Within one Business Day after the end of each Fixed Period in
respect of which Yield is computed by reference to the CP Rate, the relevant
Managing Agent shall furnish the Seller with an invoice setting forth the amount
of the accrued and unpaid Yield and Fees for such Fixed Period with respect to
the Receivable Interests held by the Conduit Purchaser(s) in such Managing
Agent's Purchaser Group.

          (e)  All payments required to be made hereunder to any Purchaser shall
be made by paying such amount to the applicable Purchaser Group Account in
accordance with Section 2.08. Upon receipt of funds, such Managing Agent shall
pay such funds to the related Purchaser(s) owed such funds in accordance with
the records maintained by such Managing Agent. If a Managing Agent shall have
paid to any Purchaser any funds that (i) must be returned for any reason
(including any Event of Bankruptcy) or (ii) exceeds that which such Purchaser
was entitled to receive, such amount shall be promptly repaid to such Managing
Agent by such Purchaser.

          SECTION 2.07  Yield and Fees. (a) The Servicer shall be entitled to
receive a fee (the "Servicing Fee") of 0.25% per annum (the "Servicing Fee
Rate") on the average daily Outstanding Balance of the Pool Receivables, payable
in arrears on each Servicing Fee Payment Date. Upon three Business Days' notice
to the Managing Agents, the Servicer (if not an Originator, the Seller or its
designee or an Affiliate of the Seller) may, with the prior written consent of
each Managing Agent, elect to be paid, as such fee, another percentage per annum
on the average daily Outstanding Balance of the Pool Receivables; provided,
however, that in no event shall the new Servicing Fee exceed 110% of the actual
costs and expenses of such Servicer. Notwithstanding anything herein to the
contrary, the Servicing Fee shall be payable only from Collections pursuant to,
and subject to the priority of payments set forth in, Sections 2.04 and 2.05. To
the extent such Collections are not sufficient to pay the Servicing Fee in full,
none of the Seller, the Administrative Agent, the Managing Agents or the
Purchasers shall have any liability for the deficiency.

          (b)  The Seller shall pay to the Administrative Agent and each
Managing Agent certain fees (collectively, the "Fees") in the amounts and on the
dates set forth in (i) the fee letter agreement dated as of the Initial Closing
Date between the Seller and the Administrative Agent (as the same may be amended
or restated from time to time, the "Administrative Agent Fee Letter") and (ii)
the fee letter dated as of the Initial Closing Date among the Seller, the
Administrative Agent and the Managing Agents (as the same may be amended or
restated from time to time, the "Purchaser Fee Letter").

                                        9

<PAGE>

          (c)  On each Settlement Date for a Receivable Interest, the Seller
shall pay to the relevant Managing Agent all accrued and unpaid Yield with
respect to such Receivable Interest.

          SECTION 2.08  Payments and Computations, Etc. (a) All amounts to be
paid by the Seller or the Servicer to the Administrative Agent, any Managing
Agent or any Purchaser hereunder shall be paid no later than 12:00 noon (New
York City time) on the day when due in same day funds to the applicable
Purchaser Group Account. All amounts to be deposited by the Seller or the
Servicer into the Collection Account, any Purchaser Group Account or any other
account shall be deposited no later than 12:00 noon (New York City time) on the
date when due.

          (b)  Each of the Seller and the Servicer shall, to the extent
permitted by law, pay interest on any amount not paid or deposited by it when
due hereunder, at an interest rate per annum equal to 2.00% per annum above the
Alternate Base Rate, payable on demand.

          (c)  All computations of Yield, Fees, and other amounts hereunder
shall be made on the basis of a year of 360 days for the actual number of days
(including the first but excluding the last day) elapsed, except that
computations of interest and Yield based on the Alternate Base Rate shall be
made on the basis of a year of 365 days (or 366, as applicable). Whenever any
payment or deposit to be made hereunder shall be due on a day other than a
Business Day, such payment or deposit shall be made on the next succeeding
Business Day and such extension of time shall be included in the computation of
such payment or deposit. Any computations by the Administrative Agent or the
applicable Managing Agent of amounts payable by the Seller hereunder shall be
binding upon the Seller absent manifest error.

          SECTION 2.09  Dividing or Combining Receivable Interests. Either the
Seller or (following a Termination Event or an Incipient Termination Event) the
Administrative Agent may, upon notice to the other party received at least three
Business Days prior to the last day of any Fixed Period in the case of the
Seller giving notice, or up to the last day of such Fixed Period in the case of
the Administrative Agent giving notice, either (i) divide any Receivable
Interest into two or more Receivable Interests having an aggregate Capital equal
to the Capital of such divided Receivable Interest, or (ii) combine any two or
more Receivable Interests originating on such last day or having Fixed Periods
ending on such last day into a single Receivable Interest having a Capital equal
to the aggregate of the Capital of such Receivable Interests; provided, however,
that no Receivable Interest owned by any Conduit Purchaser may be combined with
a Receivable Interest owned by any other Purchaser, and a Receivable Interest
held by the Committed Purchasers in any Purchaser Group may not be combined with
any Receivable Interest held by Purchasers in any other Purchaser Group.

          SECTION 2.10  Breakage Costs.

          (a)  The Seller shall indemnify the Purchasers against any loss or
expense incurred by the Purchasers, either directly or indirectly, as a result
of the failure of any Incremental Purchase to be made for any reason on the date
specified by the Seller pursuant to Section 2.02, including any loss or expense
incurred by the Purchasers by reason of the liquidation or reemployment of funds
acquired by the Purchasers (including funds obtained by

                                       10

<PAGE>

issuing Promissory Notes, obtaining deposits as loans from third parties and
reemployment of funds) to fund such Incremental Purchase.

          (b)  The Seller further agrees to pay all Liquidation Fees associated
with a reduction of the Capital at any time.

          (c)  A certificate as to any loss, expense or Liquidation Fees payable
pursuant to this Section 2.10 submitted by any Purchaser, through its Managing
Agent, to the Seller shall be conclusive in the absence of manifest error.

          SECTION 2.11  Illegality. Notwithstanding any other provision of this
Agreement, if the adoption of or any change in any Law or in the interpretation
or application thereof by any relevant Official Body shall make it unlawful for
any Purchaser to make or maintain Receivable Interests for which Yield is
calculated by reference to the Adjusted Eurodollar Rate (each a "Eurodollar
Receivable Interest") as contemplated by this Agreement or to obtain in the
interbank eurodollar market the funds with which to make or maintain any such
Eurodollar Receivable Interest, (a) such Purchaser shall promptly notify the
Administrative Agent, its Purchaser Managing Agent and the Seller thereof, (b)
the obligation of such Purchaser to fund or maintain Eurodollar Receivable
Interests or continue Eurodollar Receivable Interests as such shall forthwith be
cancelled and (c) such Purchaser's Receivable Interests then outstanding as
Eurodollar Receivable Interests, if any, shall be converted on the last day of
the Fixed Period for such Receivable Interests or within such earlier period as
required by Law into Receivable Interest that accrue Yield based on the
Alternate Base Rate (each a "Base Rate Receivable Interest").

          SECTION 2.12  Inability to Determine Eurodollar Rate. Notwithstanding
any other provision of this Agreement, if (i) the Administrative Agent
reasonably determines that, by reason of circumstances affecting the relevant
market, adequate and reasonable means do not exist for ascertaining a rate for
Eurodollar Receivable Interests as provided in the definition of Adjusted
Eurodollar Rate for any Fixed Period or (ii) Committed Purchasers representing
at least a majority of the Aggregate Commitment shall determine (which
determination shall be conclusive) that the rates for the purpose of computing
the Adjusted Eurodollar Rate do not adequately and fairly reflect the cost to
such Committed Purchasers of funding a Eurodollar Receivable Interests that the
Seller has requested be outstanding as a Eurodollar Receivable Interest during
such Fixed Period, the Administrative Agent shall forthwith give telephone
notice of such determination, confirmed in writing, to the Seller and each
Managing Agent at least two Business Days prior to the first day of such Fixed
Period. Unless the Seller shall have notified the applicable Managing Agent upon
receipt of such telephone notice that it wishes to rescind or modify its request
regarding such Eurodollar Receivable Interest, any Receivable Interests that
were requested to be funded as Eurodollar Receivable Interests shall be Base
Rate Receivable Interests and any Receivable Interests that were requested to be
converted into or continued as Eurodollar Receivable Interests shall be
converted into Base Rate Receivable Interests. Until any such notice has been
withdrawn by the Administrative Agent, no further Receivable Interests shall be
funded as, continued as, or converted into, Eurodollar Receivable Interests.

          SECTION 2.13  Indemnity for Reserves and Expenses. (a) If the adoption
of or any change in any Law or in the interpretation or application thereof or
compliance by any

                                       11

<PAGE>

Indemnified Party with any request or directive (whether or not having the force
of law) from any central bank or other Official Body made subsequent to the date
hereof (other than any such change that relates to Taxes, which are governed by
Section 2.14):

               (i)   does or shall impose, modify or hold applicable any
          reserve, special deposit, compulsory loan or similar requirement
          against assets held by, or deposits or other liabilities in or for the
          account of, advances or loans or purchases by, or other credit
          extended by, or any other acquisition of funds by, any office of such
          Indemnified Party which are not otherwise covered by the adjustment to
          the Eurodollar Rate for the Eurodollar Rate Reserve Percentage as
          contemplated by the definition of "Adjusted Eurodollar Rate"; or

               (ii)  does or shall impose on such Indemnified Party any other
          condition affecting this Agreement or any Receivable Interest or
          participation therein;

and the result of any of the foregoing shall be to increase the cost to such
Indemnified Party of making or maintaining Receivable Interests (or of
maintaining its obligation to make any such Receivable Interest) or to reduce
any amount received or receivable by such Indemnified Party hereunder, then, in
any such case, the Seller shall promptly pay such Indemnified Party, upon demand
from such Indemnified Party, any additional amounts necessary to compensate such
Indemnified Party for such additional costs or reduction suffered which such
Indemnified Party reasonably deems to be material as determined by such
Indemnified Party with respect to its Receivable Interests. A certificate as to
any additional amounts payable pursuant to this subsection submitted by such
Indemnified Party, through its Managing Agent, to the Seller setting forth, in
reasonable detail, the basis for and the calculation thereof, shall be
conclusive in the absence of manifest error.

          (b)  If any Indemnified Party shall have determined that the
adoption of any applicable Law or bank regulatory guideline regarding capital
adequacy or any change therein, or any change in the interpretation or
administration thereof by any Official Body, or any request or directive
regarding capital adequacy (in the case of any bank regulatory guideline,
whether or not having the force of law) of any such Official Body, has or would
have the effect of reducing the rate of return on capital of such Indemnified
Party (or its parent) as a consequence of such Indemnified Party's obligations
hereunder or with respect hereto or otherwise as a consequence of the
transactions contemplated hereby to a level below that which such Indemnified
Party (or its parent) could have achieved but for such adoption, change, request
or directive (taking into consideration its policies with respect to capital
adequacy) by an amount deemed by such Indemnified Party to be material, then
from time to time, within fifteen days after demand by such Indemnified Party
through its Managing Agent, the Seller shall pay to such Managing Agent, for the
benefit of such Indemnified Party, such additional amount or amounts as will
compensate such Indemnified Party (or its parent) for such reduction. A
certificate as to any additional amounts payable pursuant to this subsection
submitted by such Indemnified Party, through its Managing Agent, to the Seller
setting forth, in reasonable detail, the basis for and the calculation thereof,
shall be conclusive in the absence of manifest error.

                                       12

<PAGE>

          (c)  Failure or delay on the part of any Indemnified Party to demand
compensation pursuant to this Section 2.13 shall not constitute a waiver of such
Indemnified Party's right to demand such compensation; provided, however, that
the Seller shall not be required to compensate an Indemnified Party pursuant to
this Section 2.13 for any increased costs or reductions incurred more than 180
days prior to the date that such Indemnified Party notifies the Seller of the
change, event or circumstance giving rise to such increased costs or reductions
and of such Lender's or the Issuing Bank's intention to claim compensation
therefor; provided, further, that, if the change giving rise to such increased
costs or reductions is retroactive, then the 180-day period referred to above
shall be extended to include the period of retroactive effect thereof.

          SECTION 2.14  Indemnity for Taxes. (a) Any and all payments and
deposits required to be made hereunder or under any other Transaction Document
by the Servicer or the Seller shall be made free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding net
income, profits or branch profits taxes that are imposed by the United States
and franchise, profits, branch profits and net income taxes that are imposed on
an Indemnified Party by the state or foreign jurisdiction under the laws of
which such Indemnified Party is organized or in which it is a citizen, resident
or domiciliary, or the jurisdiction in which any office making or participating
in a purchase hereunder is located, or in each case any political subdivision
thereof (all such non-excluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as "Taxes"). If the
Seller or the Servicer shall be required by law to deduct any Taxes from or in
respect of any sum payable hereunder to any Indemnified Party, (i) the Seller
shall make an additional payment to such Indemnified Party, in an amount
sufficient so that, after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.14), such Indemnified
Party receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Seller or the Servicer, as the case may be, shall
make such deductions and (iii) the Seller or the Servicer, as the case may be,
shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law.

          (b)  In addition, the Seller agrees to pay any present or future stamp
or other documentary taxes or any other excise or property taxes, charges or
similar levies which arise from any payment made hereunder or under any other
Transaction Document or from the execution, delivery or registration of this
Agreement or any other Transaction Document (hereinafter referred to as "Other
Taxes"); provided that the Indemnified Party shall notify Seller prior to the
Initial Closing Date (or, if later, the date such Indemnified Party became a
party to this Agreement) that such Other Taxes imposed by (i) a foreign
jurisdiction under the laws of which an Indemnified Party is organized or in
which it is a citizen, resident or domiciliary, or (ii) a foreign jurisdiction
in which any office making or participating in a purchase hereunder is located,
(including, in each case, any political subdivision thereof), will be due and
owing to the extent that such Indemnified Party has knowledge of the same prior
to the Initial Closing Date.

          (c)  The Seller will indemnify each Indemnified Party for the full
amount of Taxes or Other Taxes (including, without limitation, any Taxes or
Other Taxes imposed by any jurisdiction on amounts payable under this Section
2.14) paid by such Indemnified Party and any liability (including penalties,
interest and expenses) arising therefrom or with respect thereto

                                       13

<PAGE>

whether or not such Taxes or Other Taxes were correctly or legally asserted.
This indemnification shall be made within thirty days from the date the
Indemnified Party makes written demand therefor (and a copy of such demand shall
be delivered to the Administrative Agent and the Managing Agent for such
Indemnified Party's Group). A certificate as to the amount of such
indemnification submitted to the Seller, the Administrative Agent and the
Managing Agent for such Indemnified Party's Group by such Indemnified Party,
setting forth, in reasonable detail, the basis for and the calculation thereof,
shall be conclusive and binding for all purposes absent manifest error.

          (d)  Each Purchaser or Participant who is organized outside the United
States (each, a "Non-U.S. Person") shall, prior to the date hereof (or, in the
case of any Person who becomes a Purchaser or a Participant after the date
hereof, prior to the date on which it so becomes a Purchaser or a Participant),
(x) deliver to the Seller and the Administrative Agent such properly completed
and duly executed certificates, documents or other evidence, as required by the
IRC or Treasury regulations issued pursuant thereto, including Internal Revenue
Service Form W-8BEN or Form W-8ECI and any other certificate or statement of
exemption required to establish that such payment is (i) not subject to
withholding under the IRC because such payment is effectively connected with the
conduct by such Indemnified Party of a trade or business in the United States or
(ii) totally exempt from United States tax under a provision of an applicable
tax treaty and (y) upon request of the Seller or the Administrative Agent, and
to the extent it may do so under applicable law, furnish any other government
forms which are necessary or required under an applicable tax treaty or
otherwise by law to reduce or eliminate any withholding tax; provided, however,
that in the event that a Non-U.S. Person is classified as other than a
corporation for U.S. federal income tax purposes, such Non-U.S. Person agrees to
provide any other form certificate or statement of exemption necessary to fully
establish such Non-U.S. Person's (and, if applicable, such Non-U.S. Person's
beneficial owners') entitlement to a complete exemption from withholding of U.S.
taxes on all amounts to be received by such Non-U.S. Person (or, if applicable,
such Non-U.S. Person's beneficial owners') pursuant to this Agreement and the
other Transaction Documents. Each such Purchaser that changes its funding office
shall promptly notify the Seller and the Administrative Agent of such change
and, upon written request from the Seller or the Administrative Agent, shall
deliver any new certificates, documents or other evidence required pursuant to
the preceding sentence prior to the immediately following due date of any
payment by the Seller hereunder. Unless the Seller and the Administrative Agent
have received forms or other documents satisfactory to them indicating that
payments hereunder are not subject to United States withholding tax,
notwithstanding paragraph (a), the Seller or the Administrative Agent shall
withhold taxes from such payments at the applicable statutory rate in the case
of payments to or for any Indemnified Party organized under the laws of a
jurisdiction outside the United States, and the applicable provisions of
paragraph (g) below shall apply to such Purchaser.

          (e)  Further, each Non-U.S. Person agrees (i) to deliver to the Seller
and the Administrative Agent, and if applicable, the assigning Purchaser (or, in
the case of a Participant, to the Purchaser from which the related participation
shall have been transferred) two further duly completed and signed copies of any
forms required to be delivered pursuant to Section 2.14(d), or successor and
related applicable forms, on or before the date that any such form expires or
becomes obsolete and promptly after the occurrence of any event requiring a
change from the most recent form(s) previously delivered by it to the Seller and
Administrative Agent,

                                       14

<PAGE>

and, if applicable, the assigning Purchaser (or, in the case of a Participant,
to the Purchaser from which the related participation shall have been
transferred) in accordance with applicable U.S. laws and regulations and (ii) to
notify promptly the Seller and the Administrative Agent, and, if applicable, the
assigning Purchaser (or, in the case of a Participant, the Purchaser from which
the related participation shall have been transferred) if it is no longer able
to deliver, or if it is required to withdraw or cancel, any form or statement
previously delivered by it.

          (f)  Each Purchaser or Participant that is not a Non-U.S. Person shall
deliver to the Seller and the Administrative Agent and, if applicable, the
assigning Purchaser (or, in the case of a Participant, to the Purchaser from
which the related participation shall have been transferred) two duly completed
copies of United States Internal Revenue Service Form W-9 (or applicable
successor form) unless it establishes to the reasonable satisfaction of the
Seller that it is otherwise eligible for an exemption from backup withholding
tax or other applicable withholding tax. Each such Purchaser or Participant
shall deliver to the Seller and the Administrative Agent and, if applicable, the
assigning Purchaser (or, in the case of a Participant, to the Purchaser from
which the related participation shall have been transferred) two further
properly completed and duly executed forms and statements (or applicable
successor forms) at or before the time any such form or statement becomes
obsolete.

          (g)  The Seller shall not be required to pay any amounts to any
Purchaser in respect of Taxes and Other Taxes pursuant to paragraphs (a), (b)
and (c) above if the obligation to pay such amounts would not have arisen but
for a failure by such Purchaser to comply with the provisions of paragraphs (b),
(d), (e) and (f) above unless such Purchaser is unable to comply with paragraphs
(b), (d), (e) and (f) because of (i) a change in applicable law, regulation or
official interpretation thereof or (ii) an amendment, modification or revocation
of any applicable tax treaty or a change in official position regarding the
application or interpretation thereof, in each case after the date hereof (or,
in the case of any Person who became a Purchaser after the date hereof, after
the date on which it so became a Purchaser).

          (h)  If the Administrative Agent or any Purchaser or Participant
determines, in its sole discretion, that it has received a refund in respect of
taxes paid or indemnified by the Seller, it shall promptly pay such refund to
the Seller, but only to the extent of amounts paid or indemnified by the Seller
with respect to Taxes, provided, however, that the Seller agrees to promptly
return such refund to the Administrative Agent or the applicable Purchaser or
Participant, as the case may be, if it receives notice from the applicable
Purchaser or Participant that such person is required to repay such refund, plus
any penalties, interest or other charges imposed by the relevant governmental
authority. This Section shall not be construed to require the Administrative
Agent or any Purchaser or Participant to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the
Seller or any other Person.

          SECTION 2.15  Security Interest. As security for the performance by
the Seller of all the terms, covenants and agreements on the part of the Seller
(whether as Seller or otherwise) to be performed under this Agreement or any
other Transaction Document, including the punctual payment when due of all
Seller Obligations, the Seller hereby assigns to the Administrative Agent for
its benefit and the ratable benefit of the other Indemnified Parties, and

                                       15

<PAGE>

hereby grants to the Administrative Agent for its benefit and the ratable
benefit of the other Indemnified Parties, a security interest in, all of the
Seller's right, title and interest in and to:

          (a)  all Receivables, whether now owned and existing or hereafter
     acquired or arising, together with all Related Security and Collections
     with respect thereto;

          (b)  all Contracts, whether now owned or existing or hereafter
     acquired or arising, including, without limitation, with respect to each
     Contract (i) all rights of the Originator to receive moneys due or to
     become due under or pursuant to such Contract (whether or not earned by
     performance), (ii) all security interests and property subject thereto from
     time to time purporting to secure payment of monies due or to become due
     under or pursuant to such Contract, (iii) all rights of the Originator to
     receive proceeds of any insurance, indemnity, warranty or guaranty with
     respect to such Contract, (iv) claims of the Originator for damages arising
     out of or for breach of or default under such Contract, and (v) the right
     of the Originator to compel performance and otherwise exercise all remedies
     thereunder;

          (c)  the Deposit Accounts and the Collection Account, including,
     without limitation, (i) all funds and other evidences of payment held
     therein and all certificates and instruments, if any, from time to time
     representing or evidencing any of such accounts or any funds and other
     evidences of payment held therein, (ii) all investment property and other
     financial assets held in, or acquired with funds from, such accounts and
     all certificates and instruments from time to time representing or
     evidencing such investment property and financial assets, (iii) all notes,
     certificates of deposit and other instruments from time to time hereafter
     delivered or transferred to, or otherwise possessed by, the Administrative
     Agent in substitution for any of the then existing accounts and (iv) all
     interest, dividends, cash, instruments, financial assets, investment
     property and other property from time to time received, receivable or
     otherwise distributed in respect of or in exchange for any and all of such
     accounts;

          (d)  all other assets of the Seller, whether now owned and existing or
     hereafter acquired or arising, including, without limitation, all accounts,
     chattel paper, goods, instruments, investment property, deposit accounts
     and general intangibles (as those terms are defined in the UCC as in effect
     on the date hereof in the State of New York), in which the Seller has any
     interest; and

          (e)  to the extent not included in the foregoing, all Proceeds of any
     and all of the foregoing.

          SECTION 2.16  Optional Liquidation. The Seller may at any time direct
that Reinvestment Purchases cease for the Receivable Interests of all
Purchasers. Any such direction shall be made by giving the Administrative Agent
and the Servicer at least two Business Days' prior written (including telecopy
or other facsimile communication) notice (each a "Reduction Notice") specifying
the date on which such Reinvestment Purchases shall cease and, if desired, when
such Reinvestment Purchases shall re-commence, identified as when the aggregate
outstanding Capital is reduced by a specified amount (the "Reduction Amount").
If the Seller does not so specify the date on which Reinvestment Purchases shall
re-commence, it

                                       16

<PAGE>

may cause Reinvestment Purchases to re-commence at any time before the
Termination Date, subject to the terms and conditions set forth herein, by
notifying the Administrative Agent and the Servicer in writing (including by
telecopy or other facsimile communication) at least one Business Day before the
date on which it desires such Reinvestment Purchases to re-commence.

          SECTION 2.17  Optional Repurchase. The Seller may at any time at its
option elect to repurchase all or any portion of the Receivable Interests, such
repurchase to be made ratably among the Purchasers then holding Receivable
Interests in proportion to the Capital of each. Any such repurchase shall be
made on not less than three (3) Business Days' prior written notice (each a
"Repurchase Notice") specifying the date on which such repurchase shall occur
(the "Repurchase Date") and the aggregate Capital of the Receivable Interest to
be repurchased (the "Repurchase Amount"). On the Repurchase Date, the Seller
shall pay the Repurchase Amount to the Purchasers ratably in accordance with the
outstanding Capital of their respective Receivable Interests.

          SECTION 2.18  Termination of Purchaser Groups. If any Indemnified
Party in a Purchaser Group makes a claim for payment pursuant to Section 2.13
then the Seller may, at its option, take either of the actions specified below.

               (i)    The Seller may remove such Purchaser Group and terminate
          the Commitments of the Committed Purchasers in such Purchaser Group by
          paying to the Managing Agent for such Purchaser Group an amount (the
          "Payout Amount") equal to the sum of (i) the aggregate Capital held by
          the Purchasers in such Purchaser Group, (ii) all Yield accrued and to
          accrue thereon through the last day of the applicable Fixed Period(s)
          to which such Capital has been allocated, (iii) all accrued and unpaid
          Fees owing to the members of such Purchaser Group and (iv) all other
          Seller Obligations owing to the members of such Purchaser Group under
          the Transaction Documents accrued through the date of such payment.
          Any such removal and termination shall be made upon not less than five
          (5) Business Days notice delivered by the Seller to the applicable
          Managing Agent and the Administrative Agent. The Payout Amount for any
          Purchaser Group shall be calculated by the relevant Managing Agent and
          notified to the Seller, which calculation shall be conclusive and
          binding absent manifest error. Upon such removal and termination, (x)
          the members of such Purchaser Group shall cease to be parties to this
          Agreement and the Commitments and Conduit Purchase Limits of the
          Purchasers in such Purchaser Group shall be reduced to zero and (y)
          the Purchase Limit will be reduced by an amount equal to the
          Commitments (determined immediately prior to such termination) of the
          Committed Purchasers in such Purchaser Group.

               (ii)   The Seller may declare the Scheduled Commitment
          Termination Date to have occurred for all Purchasers in such Purchaser
          Group. Any such declaration shall be made upon not less than five (5)
          Business Days notice delivered by the Seller to the applicable
          Managing Agent and the Administrative Agent. Upon the effectiveness of
          such declaration, (w) the Conduit Purchase Limit(s) and Purchaser
          Group Limit of such Purchaser Group shall be deemed to have been
          reduced to zero and Purchasers in such Purchaser Group shall have no

                                       17

<PAGE>

          further right or obligation to make any Purchases hereunder, (x)
          Amortization Date shall be deemed to have occurred for all Receivable
          Interests held by the Purchasers in such Purchaser Group, (y) the
          Capital allocable to such Receivable Interests shall be reduced out of
          Collections available for such purpose pursuant to Section 2.04 or
          2.05, as applicable and (z) on each date on which such Capital is so
          reduced the Purchase Limit shall be deemed to be reduced by a
          corresponding amount. Once the Capital of such Receivable Interests
          has been reduced to zero and the members of such Purchaser Group shall
          have received payment in full of all accrued Yield, Fees and other
          Seller Obligations owing to them, the members of such Purchaser Group
          shall cease to be parties to this Agreement.

                                   ARTICLE III

                             CONDITIONS OF PURCHASES

          SECTION 3.01  Conditions Precedent to Agreement. The effectiveness of
this Agreement is subject to the conditions precedent that (i) all Fees required
to have been paid on or prior to the date hereof pursuant to the Fee Letters
shall have been paid in full and (ii) the Administrative Agent and each Managing
Agent shall have received on or before such date, each (unless otherwise
indicated) dated such date, in form and substance satisfactory to the
Administrative Agent and each Managing Agent:

          (a)  A copy of this Agreement, duly executed and delivered by each of
the parties hereto;

          (b)  A certificate of the Secretary or Assistant Secretary of each
Transaction Party certifying the names and true signatures of the officers of
such Transaction Party authorized to sign the Transaction Documents to which it
is a party; and

          (c)  Such other documents, instruments, certificates and opinions as
the Administrative Agent or any Managing Agent shall reasonably request.

          SECTION 3.02  Conditions Precedent to All Purchases. Each Purchase
(including the initial Incremental Purchase and each Reinvestment Purchase)
hereunder shall be subject to the further conditions precedent that (a) the
Servicer shall have delivered to the Administrative Agent and each Managing
Agent all Servicer Reports required to be delivered hereunder, each duly
completed and containing information covering the most recently ended reporting
period for which information is required pursuant to Section 6.03 and (b) on the
date of such Purchase the following statements shall be true (and acceptance of
the proceeds of such Purchase shall be deemed a representation and warranty by
the Seller and the Servicer (each as to itself) that such statements are then
true):

               (i)    The representations and warranties contained in Sections
          4.01 and 4.02 of this Agreement and Section 4.01 of the Originator
          Purchase Agreement are true and correct in all material respects
          (except that, to the extent any such representation or warranty is
          qualified by materiality or Material Adverse Effect,

                                       18

<PAGE>

          such representation or warranty must be true and correct in all
          respects, subject only to the materiality or Material Adverse Effect
          qualification set forth therein) on and as of the date of such
          Purchase as though made on and as of such date, and

               (ii)   No event has occurred and is continuing, or would result
          from such Purchase, that constitutes a Termination Event or an
          Incipient Termination Event, and

               (iii)  In the case of any Purchase by a Conduit Purchaser, the
          applicable Managing Agent shall not have given the Seller notice (with
          a copy to the Administrative Agent) that such Conduit Purchaser has
          terminated the Reinvestment Purchases hereunder (unless such notice
          has been revoked by such Managing Agent), and

               (iv)   Medco shall have sold or contributed to the Seller,
          pursuant to the Originator Purchase Agreement, all outstanding
          Receivables as of such date; and

          (c)  The Administrative Agent and each Managing Agent shall have
received such other approvals, opinions or documents as it may reasonably
request for purposes of confirming compliance with the foregoing conditions.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

          SECTION 4.01  Representations and Warranties of the Seller. The Seller
hereby represents and warrants as follows as of the date hereof and as of the
date of each Purchase hereunder:

          (a)  The Seller is a limited liability company duly formed, validly
existing and in good standing under the laws of Delaware. The Seller is duly
qualified to do business, and is in good standing, in every other jurisdiction
where the nature of its business requires it to be so qualified, unless the
failure to so qualify would not reasonably be expected to have a Material
Adverse Effect.

          (b)  The execution, delivery and performance by the Seller of the
Transaction Documents, including the Seller's use of the proceeds of Purchases,
(i) are within the Seller's limited liability company powers, (ii) have been
duly authorized by all necessary limited liability company action, (iii) do not
contravene (1) the Seller's certificate of formation or limited liability
company agreement, (2) any law, rule or regulation applicable to the Seller, (3)
any contractual restriction binding on or affecting the Seller or its property
or (4) any order, writ, judgment, award, injunction or decree binding on or
affecting the Seller or its property, and (iv) do not result in or require the
creation of any Adverse Claim upon or with respect to any of its properties
(except as created pursuant to this Agreement). Each of the Transaction
Documents has been duly executed and delivered by the Seller.

          (c)  No authorization or approval or other action by, and no notice to
or filing with, any Official Body is required for the due execution, delivery
and performance by the Seller

                                       19

<PAGE>

of the Transaction Documents to which it is a party or any other document to be
delivered thereunder, except for the filing of UCC financing statements referred
to in Section 3.01.

          (d)  Each of the Transaction Documents to which the Seller is a party
constitutes the legal, valid and binding obligation of the Seller enforceable
against the Seller in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally and by general
principles of equity, regardless of whether such enforceability is considered in
a proceeding in equity or at law.

          (e)  The opening pro forma balance sheet of the Seller as of June 30,
2003, giving effect to the initial Incremental Purchase to be made under this
Agreement, a copy of which has been furnished to the Administrative Agent and
each Managing Agent, fairly presents the financial condition of the Seller as of
such date, in accordance with GAAP. Since its formation no change, occurrence or
development has occurred (including, without limitation, with respect to any
commenced or threatened material litigation or proceeding) that has had or could
reasonably be expected to have a Material Adverse Effect.

          (f)  There is no pending or (to the best knowledge of the Seller)
threatened action or proceeding affecting the Seller before any Official Body.
The Seller is not in default in any material respect of any order of any
Official Body.

          (g)  No proceeds of any Purchase will be used for a purpose that
violates or would be inconsistent with, Regulation T, U or X promulgated by the
Board of Governors of the Federal Reserve System from time to time.

          (h)  Each Receivable treated as or represented to be a Pool Receivable
is owned by the Seller free and clear of any Adverse Claim (other than Adverse
Claims created hereunder). The Purchasers have acquired a valid and perfected
first priority security interest in each Pool Receivable now existing or
hereafter arising and in the Related Security and Collections with respect
thereto, in each case free and clear of any Adverse Claim (other than Adverse
Claims created hereunder). No effective financing statement or other instrument
similar in effect is filed in any recording office listing the Seller as debtor,
covering any asset of the Seller except such as may be filed in favor of the
Administrative Agent in accordance with this Agreement. No effective financing
statement or other instrument similar in effect, is filed in any recording
office listing the Originator as debtor, covering any Receivable, Related
Security or Collections except such as may be filed in favor of the Seller and
assigned to the Administrative Agent in accordance with this Agreement. Prior to
giving effect to any transfer under the Originator Purchase Agreement, all
Receivables were payable to the Originator as principal for its own account. The
Originator has no obligation (whether pursuant to any contract, any requirement
of Law or otherwise) to remit any Collections on the Receivables to any
Pharmaceutical Plan or to any other Person, other than to the Sellers and the
Purchasers as provided in the Originator Purchase Agreement and this Agreement.

          (i)  Each Servicer Report (if prepared by any Transaction Party or one
of their respective Affiliates, or to the extent that information contained
therein is supplied by any Transaction Party or an Affiliate), information,
exhibit, financial statement, document, book,

                                       20

<PAGE>

record or report furnished or to be furnished in writing at any time (whether
before, on or after the date of this Agreement) by or on behalf of any
Transaction Party to the Administrative Agent, any Managing Agent or any
Purchaser in connection with this Agreement is or will be accurate in all
material respects as of its date or (except as otherwise disclosed to the
Administrative Agent, such Managing Agent or such Purchaser, as the case may be,
at such time) as of the date so furnished, and no such Servicer Report,
information, exhibit, financial statement, document, book, record or report
contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact necessary in order to make the statements
contained therein, in the light of the circumstances under which they were made,
not misleading.

          (j)  The principal place of business and chief executive office of the
Seller and the office where the Seller keeps its records concerning the
Receivables are located at the address or addresses referred to in Section
5.01(b).

          (k)  The names and addresses of all the Deposit Account Banks together
with the account numbers of the Deposit Accounts at such Deposit Account Banks
are as specified in Schedule IV hereto, as such Schedule IV may be updated from
time to time pursuant to Section 5.01(g).

          (l)  Since the date of its formation, the Seller has not used any
company name, tradename or doing-business-as name other than the name in which
it has executed this Agreement. The Seller's Federal Employer Identification
Number is 83-08665.

          (m)  The Seller was formed on July 10, 2003 and the Seller did not
engage in any business activities prior to the date of this Agreement. The
Seller has no Subsidiaries. Medco directly owns 100% of the membership interests
of the Seller, free and clear of any Adverse Claims.

          (n)  The Seller is not, and is not controlled by, an "investment
company" within the meaning of the Investment Company Act of 1940, as amended,
or is exempt from all provisions of such Act.

          (o)  The Seller is Solvent.

          (p)  With respect to each Receivable treated as or represented to be a
Pool Receivable, the Seller (i) received such Receivable as a contribution to
the capital of the Seller by the Originator or (ii) purchased such Receivable
from the Originator in exchange for payment (made by the Seller to the
Originator in accordance with the provisions of the Originator Purchase
Agreement) of cash, an addition to the principal amount of the Subordinated
Note, or a combination thereof in an amount which constitutes fair consideration
and reasonably equivalent value. No such sale or contribution was made for or on
account of an antecedent debt owed by the Originator to the Seller and no such
sale or capital contribution is or may be voidable or subject to avoidance under
any section of the United States Bankruptcy Code.

          (q)  Each Receivable included in the calculation of the Net
Receivables Pool Balance on any date shall be an Eligible Receivable as of such
date.

                                       21

<PAGE>

          (r)  The Receivable Interest Percentage does not exceed the Maximum
Receivable Interest Percentage.

          (s)  No event has occurred and is continuing and no condition exists
which constitutes a Termination Event or Incipient Termination Event.

          SECTION 4.02  Representations and Warranties of the Servicer. Medco,
in its capacity as Servicer, hereby represents and warrants as follows as of the
date hereof and as of the date of each Purchase hereunder:

          (a)  The Servicer is a corporation duly incorporated, validly existing
and in good standing under the laws of Delaware, and is duly qualified to do
business, and is in good standing, in every jurisdiction where the nature of its
business requires it to be so qualified, unless the failure to so qualify would
not reasonably be expected to have a Material Adverse Effect.

          (b)  The execution, delivery and performance by the Servicer of this
Agreement and any other documents to be delivered by it hereunder (i) are within
the Servicer's corporate powers, (ii) have been duly authorized by all necessary
corporate action, (iii) do not contravene (1) the Servicer's certificate of
incorporation or by-laws, (2) any Law applicable to the Servicer, (3) any
material contractual restriction binding on or affecting the Servicer or its
property or (4) any order, writ, judgment, award, injunction or decree binding
on or affecting the Servicer or its property, except, in the case of each of
sub-clauses (2) through (4) of this clause (iii), to the extent that such
contravention would not be reasonably expected to have a Material Adverse
Effect, and (iv) do not result in or require the creation of any Adverse Claim
upon or with respect to any of its properties. This Agreement has been duly
executed and delivered by the Servicer.

          (c)  No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body is required for
the due execution, delivery and performance by the Servicer of this Agreement or
any other Transaction Document to which it is a party.

          (d)  This Agreement constitutes the legal, valid and binding
obligation of the Servicer enforceable against the Servicer in accordance with
its terms.

          (e)  (i)  The Servicer has heretofore furnished to the Purchasers its
          consolidated balance sheet and statements of income, stockholders'
          equity and cash flows (i) for the fiscal years ending, and at,
          December 29, 2001 and December 28, 2002, and (ii) as of and for the
          fiscal quarter and the portion of the fiscal year ended March 29,
          2003. The financial statements described in clause (i) of this Section
          4.02(e) were reported on by PricewaterhouseCoopers LLP for such fiscal
          years ending, and at, December 29, 2001 and December 28 2002, and in
          clause (ii) of this Section 4.02(e) were certified by the Servicer's
          chief financial officer. Such financial statements present fairly, in
          all material respects, the financial position and results of
          operations and cash flows of the Servicer and its consolidated
          Subsidiaries as of such dates and for such periods in conformity with

                                       22

<PAGE>

          GAAP, subject to year-end audit adjustments and the absence of
          footnotes in the case of the statements referred to in clause (ii)
          above of this Section 4.02(e). The Servicer has heretofore also
          furnished to the Purchasers its unaudited pro forma condensed
          consolidated statement of income, for its fiscal year ended December
          28, 2002, and for its fiscal quarter ended March 29, 2003 and its
          unaudited pro forma condensed consolidated balance sheet at March 29,
          2003. Such pro forma financial statements comply, in all material
          respects, with the requirements of Article XI of Regulation S-X of the
          SEC.

               (ii) Since December 28, 2002, there has been no change,
          occurrence or development that has had or could reasonably be expected
          to have a Material Adverse Effect.

          (f)  There are no actions, suits or proceedings by or before any
Official Body pending against or, to the knowledge of the Executive Officers,
threatened against or affecting the Servicer or any of its Subsidiaries that (i)
would reasonably be expected to be adversely determined, and (ii) if so
determined either (x) would reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect or (y) seek to enjoin, unwind
or otherwise materially and adversely affect the transactions contemplated by
the Transaction Documents.

          (g)  All Obligors have been instructed to remit all their payments in
respect of Receivables directly to a Deposit Account with respect to which a
duly executed Control Agreement is in full force and effect.

          (h)  On the date of each Purchase hereunder (and after giving effect
thereto) the Receivable Interest Percentage does not exceed the Maximum
Receivable Interest Percentage.

          (i)  No event has occurred and is continuing and no condition exists
which constitutes a Termination Event or Incipient Termination Event.

          (j)  All of the representations and warranties of Medco made pursuant
to the Originator Purchase Agreement are true and correct.

                                    ARTICLE V

                                    COVENANTS

          SECTION 5.01  Covenants of the Seller. Until the Final Payout Date:

          (a)  Compliance with Laws, Etc. The Seller will comply in all respects
with all applicable Laws and preserve and maintain its limited liability company
existence, rights, franchises, qualifications, and privileges except to the
extent that the failure so to comply with such Laws or the failure so to
preserve and maintain such rights, franchises, qualifications, and privileges
would not reasonably be expected to have a Material Adverse Effect.

          (b)  Offices, Records and Books of Account. The Seller will keep its
principal place of business and chief executive office and the office where it
keeps its records concerning

                                       23

<PAGE>

the Receivables at (i) the address of the Seller specified in Section 11.02 as
of the date of this Agreement or (ii) upon 30 days' prior written notice to each
Managing Agent, at any other locations in jurisdictions where all actions
reasonably requested by any Managing Agent to protect and perfect the interests
of the Administrative Agent and the Purchasers in the Receivables and the other
assets referred to in Section 2.15 have been taken and completed. The Seller
also will maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate records evidencing
Receivables and related Contracts in the event of the destruction of the
originals thereof), and keep and maintain all documents, books, records and
other information reasonably necessary or advisable for the collection of all
Receivables (including, without limitation, records adequate to permit the daily
identification of each Receivable and all Collections of and adjustments to each
existing Receivable).

          (c)  Performance and Compliance with Contracts and Credit and
Collection Policy. The Seller will, at its expense, (i) timely and fully perform
and comply in all material respects with all provisions, covenants and other
promises required to be observed by it under the Contracts related to the
Receivables and (ii) timely and fully comply in all material respects with the
Credit and Collection Policy in regard to each Receivable and the related
Contracts.

          (d)  Sales, Liens, Etc. The Seller will not sell, assign (by operation
of law or otherwise) or otherwise dispose of, or create or suffer to exist any
Adverse Claim (except for Adverse Claims created hereunder) upon or with respect
to, any Receivable, Related Security, or Collections, or upon or with respect to
any Deposit Account, the Collection Account or any other asset of the Seller, or
assign any right to receive income in respect thereof.

          (e)  Extension or Amendment of Receivables and Contracts. Except as
provided in Section 6.02(c), the Seller will not, and will not permit the
Originator to, extend, amend or otherwise modify the terms of any Receivable.

          (f)  Change in Business or Credit and Collection Policy. The Seller
will not make any change in the character of its business or in the Credit and
Collection Policy, except for any such change in a Credit and Collection Policy
that would not (i) impair the collectibility of any Receivables in any material
respect or (ii) otherwise be reasonably likely to have a Material Adverse
Effect.

          (g)  Change in Payment Instructions to Obligors. The Seller will not
add or terminate any Deposit Account from those listed in Schedule IV to this
Agreement, or make any change in its instructions to Obligors regarding payments
to be made in respect of the Receivables or payments to be made to any Deposit
Account, unless the Administrative Agent shall have received notice of such
addition, termination or change (including an updated Schedule IV) and a fully
executed Control Agreement with respect to each new Deposit Account. Each
Deposit Account shall be maintained at all times in the name of the Seller.

          (h)  Deposits to Deposit Accounts. The Seller will cause all Obligors
to be instructed to remit all their payments in respect of Receivables to
Deposit Accounts directly by wire transfer or electronic funds transfer to the
relevant Deposit Account Bank. If the Seller or the Servicer shall receive any
Collections directly, the Seller shall promptly (and in any event within one
Business Day) cause such Collections to be deposited into a Deposit Account. The

                                       24

<PAGE>

Seller will not permit funds which do not constitute Collections of Receivables
from being deposited into any Deposit Account.

          (i)  Further Assurances; Change in Name or Jurisdiction of
Organization, etc.

               (A)  The Seller agrees from time to time, at its expense,
          promptly to execute and deliver all further instruments and documents,
          and to take all further actions, that may be necessary or desirable,
          or that the Administrative Agent or any Managing Agent may reasonably
          request, to perfect, protect or more fully evidence the Receivable
          Interests purchased under this Agreement and/or security interest
          granted pursuant to this Agreement, or to enable the Conduit
          Purchasers, the Committed Purchasers, the Managing Agents or the
          Administrative Agent to exercise and enforce their respective rights
          and remedies under this Agreement. Without limiting the foregoing, the
          Seller will, upon the request of the Administrative Agent or any
          Managing Agent, execute and file such financing or continuation
          statements, or amendments thereto, and such other instruments and
          documents, that may be necessary or desirable, or that the
          Administrative Agent or any Managing Agent may reasonably request, to
          perfect, protect or evidence such Receivable Interests and/or such
          security interest.

               (B)  The Seller authorizes the Administrative Agent to file
          financing or continuation statements, and amendments thereto and
          assignments thereof, relating to the Receivables and the Related
          Security, the related Contracts and the Collections with respect
          thereto and the other collateral described in Section 2.15 without the
          signature of the Seller. A photocopy or other reproduction of this
          Agreement shall be sufficient as a financing statement where permitted
          by law.

               (C)  The Seller shall at all times be organized under the laws of
          the State of Delaware and shall not take any action to change its
          jurisdiction of organization.

               (D)  The Seller will not change its name, identity, limited
          liability company structure or tax identification number unless (1)
          the Administrative Agent shall have received at least thirty (30) days
          advance written notice of such change and (2) all actions by the
          Seller necessary or appropriate to perfect or maintain the perfection
          of the Receivable Interests and the security interest of the
          Administrative Agent granted pursuant to Section 2.15 (including,
          without limitation, the filing of all financing statements and the
          taking of such other actions as the Administrative Agent may request
          in connection with such change) shall have been duly taken.

          (j)  Reporting Requirements. The Seller will cause to be provided to
each Managing Agent the following:

                    (i)    not later than the earlier of (i) 100 days after the
               end of each fiscal year of the Originator and (ii) 5 Business
               Days after the filing thereof with the SEC, (A) the audited
               consolidated balance sheet of the

                                       25

<PAGE>

               Originator and related statements of operations, stockholders'
               equity and cash flows as of the end of and for such year, setting
               forth in each case in comparative form the figures for the
               previous fiscal year, all reported on by PricewaterhouseCoopers
               LLP or other independent public accountants of recognized
               national standing (without a "going concern" or like
               qualification or exception and without any qualification or
               exception as to the scope of such audit) to the effect that such
               consolidated financial statements present fairly in all material
               respects the financial condition and results of operations of the
               Originator and its consolidated Subsidiaries on a consolidated
               basis, as of such dates and for such periods, in conformity with
               GAAP and (B) the consolidated balance sheet of the Seller and
               related statements of operations, stockholders' equity and cash
               flows as of the end of and for such year, setting forth in each
               case in comparative form the figures for the previous fiscal
               year, all certified by one of its Financial Officers as
               presenting fairly in all material respects the financial
               condition and results of operations of the Seller as of such
               dates and for such periods, in conformity with GAAP; provided
               that delivery within the time frame specified above of copies of
               the Originator's Annual Report on Form 10-K filed with the SEC
               shall satisfy the requirements for the delivery of the
               Originator's financial statements set forth in this clause (i);

                    (ii)   not later than the earlier of (i) 55 days after the
               end of each of the first three fiscal quarters of each fiscal
               year of the Originator and (ii) 5 Business Days after the filing
               thereof with the SEC, the unaudited consolidated balance sheet of
               the Originator and related statements of operations,
               stockholders' equity and cash flows as of the end of and for such
               fiscal quarter and the then elapsed portion of the fiscal year,
               setting forth in each case in comparative form the figures for
               the corresponding period or periods of (or, in the case of the
               balance sheet, as of the end of) the previous fiscal year, all
               certified by one of its Financial Officers as presenting fairly
               in all material respects the financial condition and results of
               operations of the Originator and its consolidated Subsidiaries,
               on a consolidated basis, as of such dates and for such periods,
               in conformity with GAAP, subject to normal year-end audit
               adjustments and the absence of footnotes; provided, however, that
               delivery within the time frame specified above of copies of
               Originator's Quarterly Report on Form 10-Q filed with the SEC
               shall satisfy the requirements for the delivery of the
               Originator's financial statements set forth in this clause (ii);

                    (iii)  at the time of the delivery of the financial
               statements provided for in clause (i) or clause (ii) of this
               Section 5.01(j), a certificate of a Financial Officer of the
               Originator or the Seller, as applicable, (A) certifying that, to
               the best of such officer's knowledge, no Termination Event or
               Incipient Termination Event has occurred and is continuing or, if
               any Termination Event or Incipient Termination Event has occurred
               and is continuing, specifying the nature and extent thereof and
               (B)

                                       26

<PAGE>

               demonstrating, in reasonable detail, compliance with the
               financial ratios or requirements set forth in Schedule VI;

                    (iv)   as soon as possible and in any event within one
               Business Day after obtaining knowledge of the occurrence of each
               Termination Event or Incipient Termination Event, a statement of
               a Financial Officer of the Seller setting forth details of such
               Termination Event or Incipient Termination Event and the action
               that the Seller has taken and proposes to take with respect
               thereto;

                    (v)    promptly upon a Financial Officer becoming aware
               thereof, notice of the occurrence of any ERISA Event that, alone
               or together with any other ERISA Events that have occurred and
               are then outstanding, would reasonably be expected to result in
               liability of the Originator and its Subsidiaries in an aggregate
               amount exceeding $5,000,000;

                    (vi)   at least thirty (30) days prior to any change in the
               name, jurisdiction of organization, corporate structure or tax
               identification number of any Transaction Party, a notice setting
               forth the new name, jurisdiction of organization, corporate
               structure or tax identification number, as applicable, and the
               effective date thereof;

                    (vii)  as soon as possible and in any event no later than
               the day of occurrence thereof, notice that the Originator has
               stopped selling or contributing to the Seller, pursuant to the
               Originator Purchase Agreement, all newly arising Receivables;

                    (viii) promptly after receipt thereof, copies of all notices
               received by the Seller from the Originator under or in connection
               with the Originator Purchase Agreement;

                    (ix)   promptly upon learning thereof, notice of any
               downgrade in the Debt Rating (or the withdrawal by either S&P or
               Moody's of a Debt Rating) of Medco, setting forth the
               Indebtedness affected and the nature of such change (or
               withdrawal);

                    (x)    promptly after the occurrence thereof any pending or
               threatened litigation or other event or condition that has had,
               or could reasonably be expected to have, a Material Adverse
               Effect;

                    (xi)   promptly upon learning thereof, and in any event no
               later than the effective date thereof, notice of any amendment,
               waiver, termination or other modification to, or replacement or
               substitution for, the Revolving Credit Agreement;

                    (xii)  as soon as possible and in any event within one
               Business Day after obtaining knowledge of any event or
               circumstance described in any of clauses (i), (ii) or (iii) of
               the definition of "Rebate Conditions," a

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<PAGE>

               statement of an Executive Officer of the Originator setting forth
               in reasonable detail the nature of such event or circumstance;

                    (xiii) promptly upon the occurrence thereof, notice of any
               amendment to the Credit and Collection Policy; and

                    (xiv)  such other information respecting the Receivables or
               the condition or operations, financial or otherwise, of any
               Transaction Party (including, without limitation, information
               regarding any pending or threatened litigation) as the
               Administrative Agent or any Managing Agent may from time to time
               reasonably request.

          (k)  Separateness. (i) The Seller shall at all times maintain at least
one independent Manager who (w) is not currently and has not been during the
five years preceding the date of this Agreement an officer, director, manager or
employee of, or a major vendor or supplier of services to, an Affiliate of the
Seller or any Other Medco Company, (x) is not a current or former officer or
employee of the Seller, (y) is not a stockholder or equity owner of any Other
Medco Company or any of their respective Affiliates (except through a mutual
fund or similar pooled investment vehicle) and (z) who (A) has prior experience
as an independent director for a corporation and/or independent manager of a
limited liability company whose charter documents required the unanimous consent
of all independent directors or independent managers, as the case may be,
thereof before such corporation could consent to the institution of bankruptcy
or insolvency proceedings against it or could file a petition seeking relief
under any applicable federal or state law relating to bankruptcy and (B) has at
least three years of employment experience with one or more entities that
provide, in the ordinary course of their respective businesses, or has otherwise
been engaged for at least three years in the business of providing, advisory,
management or placement services to issuers of securitization or structured
finance instruments, agreements or securities.

               (ii)    The Seller shall not direct or participate in the
          management of any other Person's operations.

               (iii)   The Seller shall conduct its business from an office
          separate from that of the Other Medco Companies (but which may be
          located in the same facility as one or more of the Other Medco
          Companies). The Seller shall have stationery and other business forms
          separate from that of the Other Medco Companies.

               (iv)    The Seller shall at all times be adequately capitalized
          in light of its contemplated business.

               (v)     The Seller shall at all times provide for its own
          operating expenses and liabilities from its own funds except that (A)
          common overhead expenses may be shared by the Seller and the Other
          Medco Companies on a basis reasonably related to use and (B) the
          Servicer may pay operating expenses on the Seller's behalf so long as
          the Servicer determines in its good faith business judgment that

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<PAGE>

          it will be reimbursed therefor out of the Seller's own funds on or
          before the next succeeding Settlement Date.

               (vi)    The Seller shall maintain its assets and transactions
          separately from those of any other Person, and the Seller shall
          reflect such assets and transactions in financial statements separate
          and distinct from those of the Other Medco Companies and evidence such
          assets and transactions by appropriate entries in books and records
          separate and distinct from those of any other Person. The Seller shall
          hold itself out to the public under the Seller's own name as a legal
          entity separate and distinct from any other Person. The Seller shall
          not hold itself out as having agreed to pay, or as being liable,
          primarily or secondarily, for, any obligations of any other Person.

               (vii)   The Seller shall not maintain any joint account with any
          Other Medco Company or become liable as a guarantor or otherwise with
          respect to any Indebtedness or contractual obligation of any Other
          Medco Company. The membership interests of the Seller and any
          Indebtedness (whether or not represented by promissory notes) of or
          issued by the Seller to the Originator or any of its Subsidiaries may
          not be pledged to secure Indebtedness of the Originator or any Other
          Medco Company.

               (viii)  The Seller shall not make any payment or distribution of
          assets with respect to any obligation of any other Person or grant an
          Adverse Claim on any of its assets to secure any obligation of any
          Other Person.

               (ix)    The Seller shall not make loans, advances or otherwise
          extend credit to any other Person except as expressly contemplated by
          the Originator Purchase Agreement.

               (x)     The Seller shall hold regular duly noticed meetings (or
          authorize actions by unanimous written consent) of its Board of
          Managers, make and retain minutes of such meetings and otherwise
          observe all limited liability company formalities.

               (xi)    The Seller shall have bills of sale (or similar
          instruments of assignment) with respect to all assets (other than
          Receivables or interests therein acquired under the Originator
          Purchase Agreement) purchased from any of the Other Medco Companies,
          in each case to the extent such bills of sale would be customarily
          prepared in transactions with non-Affiliates.

               (xii)   The Seller shall not engage in any transaction with any
          other Person, except as contemplated by this Agreement and the
          Originator Purchase Agreement.

               (xiii)  The Seller shall prepare its financial statements
          separately from those of any of the Other Medco Companies and shall
          insure that any consolidated financial statements of any Other Medco
          Company that are filed with the Securities and Exchange Commission or
          any other Official Body or are

                                       29

<PAGE>

          furnished to any creditors of any Other Medco Company have notes
          clearly stating that (A) the Seller is the owner of the Pool
          Receivables and is a separate entity and (B) the Seller's assets will
          be available first and foremost to satisfy the claims of the creditors
          of the Seller.

               (xiv)   The Seller shall take, or refrain from taking, as the
          case may be, all other actions that are necessary to be taken or not
          to be taken in order to (x) ensure that the assumptions and factual
          recitations set forth in the Specified Bankruptcy Opinion Provisions
          remain true and correct with respect to the Seller and (y) comply with
          those procedures described in such provisions which are applicable to
          the Seller.

               (xv)    The Seller will not commingle its funds or assets with
          those of any other Person or entity. The Seller will provide
          separately for its expenses and liabilities from its own funds (except
          as provided in paragraph (v) above), and will fairly and reasonably
          allocate any expenses associated with services provided by common
          employees, office space, or other overhead and administrative expenses
          with any affiliate.

               (xvi)   The Seller will not identify itself as a division of any
          other person or entity, and will hold itself out to creditors and the
          public as a legal entity separate and distinct from any other entity
          and will correct any known misunderstanding regarding its separate
          identity.

               (xvii)  The Seller will transact all business with Affiliates on
          an arms' length basis and pursuant to commercially reasonable
          agreements.

               (xviii) After entering into the transactions contemplated by this
          Agreement and the Originator Purchase Agreement, the Seller will not
          transfer any of its assets to the Originator other than (i) transfers
          for fair or reasonably equivalent consideration and without the intent
          to hinder, delay or defraud the Seller's creditors, and (ii)
          distributions that are not fraudulent or in violation of applicable
          entity law. If, after entering into the transactions contemplated by
          this Agreement and the Originator Purchase Agreement, the Originator
          transfers any of its assets to the Seller, the Seller will properly
          account for such transfers as capital contributions or sales made in
          accordance with the Originator Purchase Agreement and its limited
          liability company agreement, as applicable.

          (l)  Transaction Documents. The Seller will not terminate, amend,
waive or modify, or consent to any termination, amendment, waiver or
modification of, any provision of any Transaction Document or grant any other
consent or other indulgence under any Transaction Document, in each case without
the prior written consent of each Managing Agent. The Seller will perform all of
its obligations under the Originator Purchase Agreement and will enforce the
Originator Purchase Agreement in accordance with its terms. The Seller will take
all actions to perfect and enforce its rights and interests (and the rights and
interests of the Administrative Agent and the Purchasers as assignees of Seller)
under the Originator Purchase Agreement as the Administrative Agent may from
time to time reasonably request, including, without limitation,

                                       30

<PAGE>

making claims to which it may be entitled under any indemnity, reimbursement or
similar provision contained in the Originator Purchase Agreement.

          (m)  Nature of Business. The Seller will not engage in any business or
engage in any transactions other than the purchase of Receivables, Related
Security and Collections from the Originator and the transactions contemplated
by this Agreement and the Originator Purchase Agreement. The Seller will not
create or form any Subsidiary.

          (n)  Mergers, Etc. The Seller will not merge with or into or
consolidate with or into, or convey, transfer, lease or otherwise dispose of
(whether in one transaction or in a series of transactions), all or
substantially all of its assets (whether now owned or hereafter acquired) to, or
acquire all or substantially all of the assets or capital stock or other
ownership interest of, or enter into any joint venture or partnership agreement
with, any Person, other than as contemplated by this Agreement and the
Originator Purchase Agreement.

          (o)  Distributions, Etc. The Seller will not (A) declare or make any
dividend payment or other distribution of assets, properties, cash, rights,
obligations or securities on account of any membership interests or other equity
interests in the Seller, or return any capital to its members or other equity
holders as such, or purchase, retire, defease, redeem or otherwise acquire for
value or make any payment in respect of any membership interests or other equity
of the Seller or any warrants, rights or options to acquire any membership
interests or other equity of the Seller, now or hereafter outstanding, (B)
prepay, purchase or redeem any Indebtedness (other than Indebtedness hereunder),
(C) lend or advance any funds or (D) repay any loans or advances to, for or from
any of its Affiliates (the amounts described in clauses (A) through (D) being
referred to as "Restricted Payments"); provided, however, that, prior to the
Termination Date, the Seller may declare and pay cash dividends to its sole
member, and may make payments in respect of the Subordinated Note, in each case
out of Collections available for such purpose pursuant to Section 2.04 so long
as (i) no Termination Event or Incipient Termination Event shall then exist or
would occur as a result thereof and (ii) any such dividends are in compliance
with all applicable law including the Delaware Limited Liability Company Act,
and have been approved by all necessary and appropriate limited liability
company action of the Seller and its Board of Managers.

          (p)  Indebtedness. The Seller shall not create, incur, guarantee,
assume or suffer to exist any Indebtedness or other liabilities, whether direct
or contingent, other than (i) as a result of the endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary
course of business, (ii) the incurrence of obligations under this Agreement,
(iii) the incurrence of other obligations pursuant to, and, as expressly
contemplated in, the Originator Purchase Agreement, and (iv) the incurrence of
operating expenses in the ordinary course of business.

          (q)  Limited Liability Company Agreement. The Seller will not amend,
modify or delete (or permit any amendment, modification or deletion of) (i) the
definition of "Independent Manager" in its limited liability company agreement
as in effect on the Initial Closing Date or (ii) any other provision of its
limited liability company agreement as in effect on the Initial Closing Date if,
pursuant to the terms thereof, such amendment, modification or deletion requires
the consent of the Independent Manager thereunder.

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<PAGE>

          (r)  Tangible Net Worth. The Seller will maintain Tangible Net Worth
at all times equal to at least 3% of the aggregate Purchase Price (as defined in
the Originator Purchase Agreement) of all outstanding Pool Receivables at such
time (net of Collections that have been received on such outstanding Pool
Receivables).

          (s)  Taxes. The Seller will file all material tax returns and reports
required by law to be filed by it and will promptly pay all taxes and
governmental charges at any time owing, except such as are being contested in
good faith by appropriate proceedings and for which appropriate reserves have
been established. The Seller will pay when due any taxes payable in connection
with the Receivables, exclusive of taxes on or measured by income or gross
receipts of the Administrative Agent, the Managing Agents, the Conduit
Purchasers or the Committed Purchasers.

          (t)  Treatment as Sales. The Seller shall not account for or treat
(whether in financial statements or otherwise) the transactions contemplated by
the Originator Purchase Agreement in any manner other than as the sale and/or
absolute conveyance of Receivables by Medco to the Seller.

          (u)  Investments. The Seller shall not make any loans to, advances to,
investments in or otherwise acquire any capital stock or equity security of, or
any equity interest in, any other Person.

          (v)  Control Agreements. The Seller shall cause all Deposit Accounts
and the Collection Account to be subject at all times to a Control Agreement
duly executed by the Servicer, the Seller, the Administrative Agent and the
applicable bank at which such account is maintained.

          SECTION 5.02  Audits. Until the Final Payout Date, each of the Seller
and the Servicer will, at their respective expense, from time to time during
regular business hours as requested by the Administrative Agent or any Managing
Agent upon reasonable prior notice, permit the Administrative Agent, any
Managing Agent, or their respective agents or representatives (including
independent public accountants, which may be the Seller's or the Servicer's
independent public accountants), (i) to conduct periodic audits of the
Receivables, the Related Security and the related Contracts, books and records
and collections systems of the Seller or the Servicer, as the case may be, (ii)
to examine and make copies of and abstracts from all books, records and
documents (including, without limitation, computer tapes and disks) in the
possession or under the control of the Seller or the Servicer, as the case may
be, relating to Receivables and the Related Security, including, without
limitation, the Contracts, and (iii) to visit the offices and properties of the
Seller or the Servicer, as the case may be, for the purpose of examining such
materials described in clause (ii) above, and to discuss matters relating to
Receivables and the Related Security or the Seller's or the Servicer's
performance under the Transaction Documents or under the Contracts with any of
the officers or employees of the Seller or the Servicer, as the case may be,
having knowledge of such matters. In addition, upon the Administrative Agent's
request (acting either on its own initiative or at the request of any Managing
Agent), the Servicer will appoint independent public accountants acceptable to
the Administrative Agent, or utilize any Managing Agent's representatives or
auditors, to prepare and deliver to the Administrative Agent and each Managing
Agent a written report (each an

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<PAGE>

"Accountants' Report") with respect to the Receivables and the Servicer Reports
(including, in each case, the systems, procedures and records relating thereto)
on a scope and in a form reasonably requested by the Administrative Agent and
the Managing Agents. On or prior to the end of the sixth calendar month
following the Initial Closing Date, an interim audit (the "Interim Audit"), the
scope of which shall be to validate the information provided in the Monthly
Report, shall be conducted at the Servicer's expense and an Accountants' Report
submitted promptly thereafter. Each Accountants' Report shall be at the expense
of the Servicer; provided, however, that so long as no Termination Event or
Incipient Termination Event has occurred and is continuing, the Administrative
Agent may only request an Accountant's Report at the Servicer's expense once per
calendar year (not including the Accountants' Report relating to the Interim
Audit); and provided, further, that any follow-up audit resulting from a
material discrepancy disclosed in such report shall also be at the Servicer's
expense. The Administrative Agent and each Managing Agent shall use commercially
reasonable efforts to minimize the disruption to the Servicer's business in
connection with any such audit, examination or visit.

          SECTION 5.03  Additional Covenants of the Servicer.

          (a)  Compliance with Laws, Etc. The Servicer will comply in all
respects with all applicable Laws and preserve and maintain its corporate
existence, rights, franchises, qualifications, and privileges except to the
extent that the failure so to comply with such Laws or the failure so to
preserve and maintain such rights, franchises, qualifications, and privileges
would not reasonably be expected to have a Material Adverse Effect.

          (b)  Records and Books of Account. The Servicer will maintain and
implement administrative and operating procedures (including, without
limitation, an ability to recreate records evidencing Receivables and related
Contracts in the event of the destruction of the originals thereof), and keep
and maintain all documents, books, records and other information reasonably
necessary or advisable for the collection of all Receivables (including, without
limitation, records adequate to permit the daily identification of each
Receivable and all Collections of and adjustments to each existing Receivable).

          (c)  Compliance with Contracts and the Credit and Collection Policy.
The Servicer will (i) timely and fully perform and comply in all material
respects with all provisions, covenants and other promises required to be
observed by it under the Contracts related to the Receivables and (ii) timely
and fully comply in all material respects with the Credit and Collection Policy
in regard to each Receivable and the Contracts.

          (d)  Extension or Amendment of Receivables and Contracts. Except as
provided in Section 6.02(c), the Servicer will not extend, amend or otherwise
modify the terms of any Receivable.

          (e)  Change in Credit and Collection Policy. The Servicer will not
make any change in the Credit and Collection Policy, except for any such change
that would not (i) impair the collectibility of any Receivables in any material
respect or (ii) otherwise be reasonably likely to have a Material Adverse
Effect. In the event that the Servicer makes any material change to the Credit
and Collection Policy, it shall, promptly following such change, provide the

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<PAGE>

Administrative Agent and each Managing Agent with an updated Credit and
Collection Policy and a summary of all material changes.

          (f)  Change in Payment Instructions to Obligors. The Servicer will not
add or terminate any Deposit Account from those listed in Schedule IV to this
Agreement, or make any change in its instructions to Obligors regarding payments
to be made in respect of the Receivables or payments to be made to any Deposit
Account, unless the Administrative Agent shall have received notice of such
addition, termination or change (including an updated Schedule IV) and a fully
executed Control Agreement with respect to each new Deposit Account. Each
Deposit Account shall be maintained at all times in the name of the Seller.

          (g)  Deposits to Deposit Accounts. The Servicer will instruct all
Obligors to remit all their payments in respect of Receivables to Deposit
Accounts directly by wire transfer or electronic funds transfer to the relevant
Deposit Account Bank. If the Servicer shall receive any Collections directly,
the Servicer shall promptly (and in any event within one Business Day) cause
such Collections to be either (i) deposited into a Deposit Account or (ii) in
the case of checks received by the Servicer, mailed to a Deposit Account Bank
for deposit into a Deposit Account. The Servicer will not permit funds which do
not constitute Collections of Receivables from being deposited into any Deposit
Account.

          (h)  Control Agreements. The Servicer shall cause all Deposit Accounts
and the Collection Account to be subject at all times to a Control Agreement
duly executed by the Servicer, the Seller, the Administrative Agent and the
applicable bank.

          (i)  Billing of Receivables. The Servicer shall bill all Unbilled
Receivables as soon as practicable under the terms of the relevant Contract, and
shall furnish to the applicable Obligor all supporting data and other
information required to be furnished under the terms of such Contract in order
to cause such Receivable to become due and payable.

          (j)  Other Covenants. Medco (both individually and in its capacity as
Servicer) shall perform and comply with all covenants required to be performed
or observed by it pursuant to the Originator Purchase Agreement and each other
Transaction Document to which it is a party.

                                   ARTICLE VI

                          ADMINISTRATION AND COLLECTION
                                 OF RECEIVABLES

          SECTION 6.01  Designation of Servicer. The servicing, billing,
administration and collection of the Pool Receivables shall be conducted by the
Servicer so designated hereunder from time to time. Until the Administrative
Agent (with the consent or at the direction of the Majority Managing Agents)
gives notice to the Seller of the designation of a new Servicer (which notice
may be given at any time following the occurrence and during the continuation of
a Servicer Replacement Event), Medco is hereby designated as, and hereby agrees
to perform the duties and obligations of, the Servicer pursuant to the terms
hereof. Medco may not resign from the obligations and liabilities hereby imposed
on it, unless required to do so

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<PAGE>

by law as evidenced by an opinion of counsel in form and substance satisfactory
to each Managing Agent. The Administrative Agent (with the consent or at the
direction of the Majority Managing Agents), at any time after the occurrence and
during the continuation of a Servicer Replacement Event, may designate as
Servicer any Person (including itself) to succeed Medco or any successor
Servicer, on such terms and conditions as the Administrative Agent and such
successor Servicer shall agree. The Servicer may, with the prior consent of the
Administrative Agent, subcontract with any other Person for the servicing,
administration or collection of the Receivables. Any such subcontract shall not
affect the Servicer's liability for performance of its duties and obligations
pursuant to the terms hereof. Without limiting the generality of the foregoing,
any action taken or omitted to be taken by any Person that has entered into a
subcontract with the Servicer shall be deemed to be an action or omission by the
Servicer (including, without limitation, for purposes of determining whether any
Receivable is a Diluted Receivable and for purposes of Sections 6.06 and 10.01).

          SECTION 6.02  Duties of Servicer. (a) The Servicer shall take or cause
to be taken all such actions as may be necessary or advisable to bill and
collect each Pool Receivable from time to time, all in accordance in all
material respects with applicable Laws, with reasonable care and diligence, and
in accordance with the Credit and Collection Policy and the terms of the
Contracts. The Seller, each Purchaser and the Administrative Agent hereby
appoint the Servicer, from time to time designated pursuant to Section 6.01, as
their agent to enforce their respective rights and interests in the Pool
Receivables, the Related Security and the related Contracts. In performing its
duties as Servicer, the Servicer shall exercise the same care and apply the same
policies as it would exercise and apply if it owned such Receivables and shall
act in such manner as it reasonably deems to be in the best interests of the
Purchasers and the Administrative Agent. Following the occurrence and during the
continuation of a Servicer Replacement Event the Administrative Agent (with the
consent or at the direction of the Majority Managing Agents) shall have the sole
right to direct the Servicer to commence or settle any legal action to enforce
collection of any Pool Receivable or any Related Security with respect thereto.

          (b)  The Servicer shall administer the Collections in accordance with
Article II.

          (c)  If no Termination Event shall have occurred and be continuing,
the Servicer, may, in accordance with the Credit and Collection Policy, extend
the maturity or adjust the Outstanding Balance of any Pool Receivable as the
Servicer deems appropriate to maximize Collections thereof; provided, however,
that the classification of any such Receivable as a Delinquent Receivable or
Defaulted Receivable shall not be affected by any such extension; provided,
further, that if such Receivable is an Eligible Receivable, the Servicer shall
not amend or modify such Receivable or any term or condition of any Contract
related thereto in a manner that would cause such Receivable to cease to be an
Eligible Receivable; provided, further, that the Servicer shall not, nor permit
the Originator to, amend, modify or waive any term or condition of any term or
condition of any Receivable or any Contract related thereto, unless such
amendment, modification or waiver (i) is made in accordance with the Credit and
Collection Policy and (ii) could not reasonably be expected to cause any
existing Receivable to cease to be an Eligible Receivable or otherwise have a
Material Adverse Effect. The Servicer shall notify each Managing Agent of any
such extension or adjustment for a particular Obligor during any calendar year
that affects Pool Receivables having an aggregate Outstanding Balance of

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<PAGE>

$50,000,000 or more. Following the occurrence and during the continuation of a
Termination Event, the Servicer may grant such extensions or adjustments only
with the prior written consent of the Administrative Agent (acting with the
consent or at the direction of the Majority Managing Agents). In no event shall
the Servicer be entitled to make any Purchaser, any Managing Agent or the
Administrative Agent a party to any litigation involving the Transaction
Documents or the Receivables without such Purchaser's, such Managing Agent's or
the Administrative Agent's prior written consent.

          (d)  The Servicer shall hold in trust for the Seller, the
Administrative Agent, the Managing Agents and each Purchaser, in accordance with
their respective interests, all documents, instruments and records (including,
without limitation, computer tapes or disks) which evidence or relate to Pool
Receivables or Related Security. The Servicer shall mark the Seller's and the
Originator's master data processing records evidencing the Pool Receivables with
a legend, reasonably acceptable to the Administrative Agent, evidencing that
Receivable Interests therein have been sold. At the request of the
Administrative Agent following a Termination Event or Involuntary Bankruptcy
Event, the Servicer shall mark each Contract and each invoice which evidence or
relate to Pool Receivables with a legend, reasonably acceptable to the
Administrative Agent, evidencing that Receivable Interests therein have been
sold and shall deliver to the Administrative Agent a copy (which may be in
electronic form) of each invoice evidencing each Receivable.

          (e)  The Servicer shall, as soon as practicable following receipt and
identification thereof, and in any event within one Business Day, turn over to
the Seller or such other Person as may be entitled thereto any cash collections
or other cash proceeds received in the Deposit Accounts and not constituting
Collections of Receivables.

          SECTION 6.03  Reports. (a) Monthly Report. No later than 4:00 p.m.,
New York City time, on each Monthly Reporting Date, the Servicer shall deliver
to each Managing Agent and the Seller a monthly report, substantially in the
form of Annex A-1, containing the information listed in Annex A-1 with respect
to the immediately preceding Calculation Period and such other information as
the Administrative Agent or any Managing Agent may reasonably request.

          (b)  Weekly Reports. During any Rating Level 2 Period, the Servicer
shall deliver to each Managing Agent and the Seller, no later than 11:00 a.m.,
New York City time, on the second Business Day of each calendar week, a Weekly
Report containing the information listed in Annex A-2 with respect to the
immediately preceding calendar week, and such other information as the
Administrative Agent or any Managing Agent may reasonably request.

          (c)  Daily Reports. During any Rating Level 3 Period or Rating Level 4
Period, the Servicer shall deliver to each Managing Agent and the Seller, no
later than 11:00 a.m., New York City time, on each Business Day, a Daily Report
setting forth total Collections received and Receivables originated during the
immediately preceding Business Day, the Net Receivables Pool Balance at the end
of the immediately preceding Business Day, and such other information as the
Administrative Agent or any Managing Agent may reasonably request.

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<PAGE>

          (d)  Reports following Termination Event. On each Business Day after
the occurrence of a Termination Event, to the extent the Servicer is not
otherwise required to deliver Daily Reports pursuant to this Section 6.03, the
Servicer shall deliver to each Managing Agent a daily report setting forth
Collections received on the previous Business Day and the Outstanding Balance of
Eligible Receivables as of the close of business on the previous Business Day,
and such other information as the Administrative Agent or any Managing Agent may
reasonably request.

          (e)  Transmission of Servicer Reports. The Servicer shall transmit
each Servicer Report to each Managing Agent by electronic mail. In addition, the
Servicer shall transmit a copy of each such Servicer Report to the Managing
Agents by facsimile (certified by a Financial Officer of the Servicer or such
other employee of the Servicer as shall have primary responsibility for the
preparation of such report and shall have been authorized to certify Servicer
Reports hereunder by a Financial Officer).

          (f)  Notice of Termination Events. The Servicer shall provide to each
Managing Agent, promptly, and in any event within one Business Day after the
Servicer obtains knowledge thereof, notice of any Termination Event or Incipient
Termination Event.

          (g)  Notice of Downgrades. Promptly upon learning thereof, the
Servicer shall provide to each Managing Agent notice of any downgrade in the
Debt Rating (or the withdrawal by either S&P or Moody's of a Debt Rating) of the
Originator, setting forth the Indebtedness affected and the nature of such
change (or withdrawal).

          (h)  Other Information. The Servicer shall provide to each Managing
Agent, promptly upon request, such other information respecting the Receivables
or the condition or operations, financial or otherwise, of the Servicer
(including, without limitation, information regarding any pending or threatened
litigation) as the Administrative Agent or any Managing Agent may from time to
time reasonably request.

          SECTION 6.04  Certain Rights of the Administrative Agent. (a) At any
time following the occurrence and during the continuation of (i) a Termination
Event, (ii) an Involuntary Bankruptcy Event, (iii) Rating Level 3 Period or (iv)
Rating Level 4 Period, the Administrative Agent may have each Deposit Account
transferred into the name of the Administrative Agent and/or assume exclusive
control of the Deposit Accounts, and may take such actions to effect such
transfer or assumption as it may determine to be necessary or appropriate
(including, without limitation, delivering the notices attached to the Control
Agreements).

          (b)  At any time following the occurrence and during the continuation
of a Termination Event or a Rating Level 4 Period:

               (i)    At the Administrative Agent's request (acting on its own
          initiative or at the direction of the Majority Managing Agents) and at
          the Seller's expense, the Servicer shall (and if the Servicer shall
          fail to do so within three Business Days, the Administrative Agent
          may) notify each Obligor of Receivables of the

                                       37

<PAGE>

          ownership of Receivable Interests under this Agreement and direct that
          payments be made directly to the Administrative Agent or its designee.

               (ii)   At the Administrative Agent's request (acting on its own
          initiative or at the direction of the Majority Managing Agents) and at
          the Seller's or the Servicer's expense, the Seller and the Servicer
          shall (A) assemble all of the documents, instruments and other records
          (including, without limitation, computer tapes and disks) that
          evidence or relate to the Receivables and the related Contracts and
          Related Security, or that are otherwise necessary or desirable to
          collect the Receivables, and shall make the same available to the
          Administrative Agent at a place selected by the Administrative Agent
          or its designee, and (B) segregate all cash, checks and other
          instruments received by it from time to time constituting Collections
          of Receivables in a manner acceptable to the Administrative Agent and,
          promptly upon receipt, remit all such cash, checks and instruments,
          duly indorsed or with duly executed instruments of transfer, to the
          Administrative Agent or its designee.

          (c)  Each of the Seller and the Servicer authorizes the Administrative
Agent, and hereby irrevocably appoints the Administrative Agent as its
attorney-in-fact coupled with an interest, with full power of substitution and
with full authority in place of the Seller or the Servicer, following the
occurrence and during the continuation of a Termination Event or any Rating
Level 4 Period, to take any and all steps in the Seller's or the Servicer's name
and on behalf of the Seller or the Servicer that are necessary or desirable, in
the determination of the Administrative Agent, to collect amounts due under the
Receivables, including, without limitation, endorsing the Seller's, the
Servicer's or the Originator's name on checks and other instruments representing
Collections of Receivables and enforcing the Receivables and the Related
Security and related Contracts.

          SECTION 6.05  Rights and Remedies. (a) If the Servicer or the Seller
fails to perform any of its obligations under this Agreement, the Administrative
Agent may (but shall not be required to) itself perform, or cause performance
of, such obligation; and the Administrative Agent's costs and expenses
reasonably incurred in connection therewith shall be payable by the Servicer or
the Seller, as applicable.

          (b)  The Seller and the Originator shall perform their respective
obligations under the Contracts related to the Receivables to the same extent as
if Receivable Interests had not been sold and the exercise by the Administrative
Agent on behalf of the Conduit Purchasers, the Managing Agents and the Committed
Purchasers of their rights under this Agreement shall not release the Originator
or the Seller from any of their duties or obligations with respect to any
Receivables or related Contracts. None of the Administrative Agent, the Conduit
Purchasers, the Managing Agents or the Committed Purchasers shall have any
obligation or liability with respect to any Receivables or related Contracts,
nor shall any of them be obligated to perform the obligations of the Seller or
the Originator thereunder.

          (c)  The Administrative Agent's rights and powers under this Article
VI shall not subject the Administrative Agent to any liability if any action
taken by it proves to be

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<PAGE>

inadequate or invalid, nor shall such powers confer any obligation whatsoever
upon the Administrative Agent.

          SECTION 6.06  Indemnities by the Servicer. Without limiting any other
rights that the Indemnified Parties may have hereunder or under applicable law,
and in consideration of its appointment as Servicer, the Servicer hereby agrees
to indemnify each Indemnified Party from and against any and all damages,
losses, claims, liabilities, deficiencies, costs, disbursements and expenses,
including, without limitation, interest, penalties, amounts paid in settlement
and reasonable attorneys' fees (all of the foregoing being collectively referred
to as "Special Indemnified Amounts") arising out of or resulting from any of the
following (excluding, however, (a) Special Indemnified Amounts to the extent a
final non-appealable judgment of a court of competent jurisdiction finds that
such Special Indemnified Amounts resulted from gross negligence or willful
misconduct on the part of such Indemnified Party and (b) any income taxes or any
other tax or fee measured by income incurred by such Indemnified Party arising
out of or as a result of this Agreement or the ownership of Receivable Interests
or in respect of any Receivable or any Contract):

               (i)    any representation, warranty, certification, report or
          other statement made or deemed made by the Servicer under or in
          connection with this Agreement or any other Transaction Document which
          shall have been incorrect in any respect when made or deemed made;

               (ii)   the failure by the Servicer to comply with any applicable
          Law with respect to any Receivable or Contract;

               (iii)  the failure to have filed, or any delay in filing,
          financing statements or other similar instruments or documents under
          the UCC of any applicable jurisdiction or other applicable laws with
          respect to any Receivables, the Contracts and the Related Security and
          Collections in respect thereof, whether at the time of any purchase or
          reinvestment or at any subsequent time;

               (iv)   any failure of the Servicer to perform its duties or
          obligations in accordance with the provisions of this Agreement or any
          other Transaction Document;

               (v)    the commingling of Collections of Receivables at any time
          by the Servicer or any of its Affiliates (other than the Seller) with
          other funds;

               (vi)   any action by the Servicer (other than an action required
          by the Transaction Documents) reducing or impairing the rights of the
          Administrative Agent, the Conduit Purchasers or the Committed
          Purchasers with respect to any Receivable or the value of any
          Receivable;

               (vii)  any Servicing Fees or other costs and expenses payable to
          any replacement Servicer, to the extent in excess of the Servicing
          Fees payable to Medco in its capacity as Servicer hereunder;

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<PAGE>

               (viii) any claim brought by any Person other than an Indemnified
          Party arising from any activity by the Servicer or its Affiliates in
          servicing, administering, billing or collecting any Receivable; or

               (ix)   any change in the Credit and Collection Policy which
          impairs the collectibility of any Receivable or the ability of the
          Servicer to perform its obligations under this Agreement.

          Notwithstanding anything to the contrary in this Agreement, solely for
purposes of the Servicer's indemnification obligations in clauses (i) and (iv)
of this Section 6.06, any representation, warranty or covenant qualified by the
occurrence or non-occurrence of a Material Adverse Effect or similar concepts of
materiality shall be deemed to be not so qualified. It is expressly agreed and
understood by the parties hereto (x) that the foregoing indemnification is not
intended to, and shall not, constitute a guarantee of collectibility or payment
of the Receivables and (y) that nothing in this Section 6.06 shall require the
Servicer to indemnify any Person for Receivables that are not collected, not
paid or uncollectible solely on account of the insolvency, bankruptcy, or
financial inability to pay of the applicable Obligor except to the extent of any
Indemnified Amounts arising from the improper characterization of any such
Receivables as Eligible Receivables.

          SECTION 6.07  Administrative Agent Account. (a) At the request of the
Administrative Agent, upon the earliest to occur of (i) 30 days after the
commencement of a Ratings Level 2 Period, (ii) two Business Days after the
commencement of a Ratings Level 3 Period or Ratings Level 4 Period, (iii) the
Termination Date or (iv) the occurrence and continuance of any Termination Event
or any Involuntary Bankruptcy Event, the Servicer shall (and if the Servicer
fails to do so, the Administrative Agent may) cause to be established with
Citibank (or another bank satisfactory to each Managing Agent) in the name of
the Administrative Agent, a segregated account (the "Administrative Agent
Account"), bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Purchasers. Upon the establishment of
such account, such account shall constitute the "Collection Account" for all
purposes hereunder. The Servicer shall deliver, or cause to be delivered to the
Administrative Agent, as soon as practicable and in any event no later than two
Business Days after such Administrative Agent Account is required to be
established as provided above, a Control Agreement with respect to such account
in substantially the form attached as Annex B-2 or in such other form as the
Administrative Agent may approve, duly executed by the Seller, the Servicer and
the bank at which such account is maintained.

          (b)  Each of the Seller and the Servicer agrees that the
Administrative Agent shall have exclusive dominion and control over the
Administrative Agent Account and all monies, instruments and other property from
time to time deposited in or credited to the Administrative Agent Account;
provided, however, that, until notified to the contrary by the Administrative
Agent, the Servicer shall have the right to withdraw funds from the
Administrative Agent Account for application in accordance with Sections 2.04 or
2.05, as applicable. The Servicer shall cause the Administrative Agent Account
to be subject at all times to a Control Agreement, duly executed by the Seller,
the Servicer, the Administrative Agent and the bank at which the Administrative
Agent Account is maintained.

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<PAGE>

          (c)  The Servicer may invest funds on deposit in the Administrative
Agent Account, reinvest proceeds of any such investments which may mature or be
sold, and invest interest or other income received from any such investments, in
each case in such Permitted Investments as the Servicer may select; provided,
however, that each such Permitted Investment shall have a maturity date no later
than the next succeeding Settlement Date. Such proceeds, interest or income
which are not so invested or reinvested in Permitted Investments shall, except
as otherwise provided in this Agreement, be deposited and held in the
Administrative Agent Account. Neither the Administrative Agent nor any of its
Affiliates shall be liable to the Seller, the Servicer or any other Person for,
or with respect to, any decline in value of amounts on deposit in the
Administrative Agent Account. Permitted Investments from time to time purchased
and held pursuant to this Section 6.07 shall be referred to as "Collateral
Securities" and shall, for purposes of this Agreement, constitute part of the
funds held in the Administrative Agent Account in amounts equal to their
respective outstanding principal amounts. Each such Permitted Investment shall
be made in the name of the Administrative Agent or its designee.

          (d)  Following the occurrence of any Termination Event, the
Administrative Agent may, at any time or from time to time after funds are
either deposited in the Administrative Agent Account or invested in Collateral
Securities, and after selling, if necessary, any Collateral Securities, withdraw
funds then held in the Administrative Agent Account and remit the same to the
respective Purchaser Group Account for each Purchaser Group (ratably in
proportion to the Capital held by the Purchasers in each such Purchaser Group
or, to the extent no such Capital remains outstanding, in proportion to the
remaining Seller Obligations then owing to the members of each such Purchaser
Group). The Seller agrees that Permitted Investments are of a type customarily
sold on a recognized market and, accordingly, no notice of sale of any Permitted
Investments shall be required. To the extent notice of sale of any Collateral
Securities shall be required by law, at least ten days' notice to the Seller of
the time and place of any public sale or the time after which any private sale
is to be made shall constitute reasonable notification. The Administrative Agent
may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned.

          (e)  Except as expressly provided herein, the Administrative Agent
shall have the sole right of withdrawal with respect to the Administrative Agent
Account. None of the Seller, the Servicer or any Person claiming on behalf of or
through the Seller or the Servicer shall have any right to withdraw any of the
funds held in the Administrative Agent Account except, in the case of the
Servicer, for withdrawals made in accordance with Section 2.04 or 2.05, as
applicable. The Administrative Agent may at any time terminate the Servicer's
right to make withdrawals from the Administrative Agent Account. In such event,
the Administrative Agent shall make all withdrawals and distributions from the
Administrative Agent Account required to be made pursuant to Section 2.04 or
2.05, as applicable, that would otherwise be made by the Servicer.

          (f)  The Administrative Agent shall exercise reasonable care in the
custody and preservation of any funds held in the Administrative Agent Account
and shall be deemed to have exercised such care if such funds are accorded
treatment substantially equivalent to that which the Administrative Agent
accords its own property, it being understood that the

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<PAGE>

Administrative Agent shall not have any responsibility for taking any necessary
steps to preserve rights against any parties with respect to any such funds.

          (g)  The Servicer shall cause the bank at which the Administrative
Agent Account is maintained to deliver a duplicate copy of all statements
relating to the Administrative Agent Account directly to the Administrative
Agent.

          (h)  On the Final Payout Date, any funds remaining on deposit in the
Administrative Agent Account shall be paid to the Seller.

          SECTION 6.08  Servicer Replacement Event. At any time following the
occurrence and during the continuation of (i) any Termination Event or (ii) a
Rating Level 4 Period (each, a "Servicer Replacement Event"), the Administrative
Agent may (with the consent or at the direction of the Majority Managing Agents)
designate another Person to succeed Medco as the Servicer. If replaced as
Servicer, Medco agrees that it will (i) terminate, and cause each existing
sub-servicer to terminate, its collection activities in a manner and to the
extent requested by the Administrative Agent to facilitate the transition to a
new Servicer and (ii) transfer to the Administrative Agent (or its designee), or
(to the extent permitted by applicable Law and contract) license to the
Administrative Agent (or its designee) the use of, all software used in
connection with the billing and collection of the Receivables. To the extent any
such transfer or license would require the payment of any license fee or other
amount the Servicer agrees to pay such fee or other amount out of its own funds
promptly upon demand by the Administrative Agent. The Servicer shall cooperate
with and assist any successor Servicer in the performance of its
responsibilities as Servicer (including, without limitation, providing access
to, and transferring, to such successor Servicer all records related to the
Receivables and allowing (to the extent permitted by applicable law and
contract) the successor Servicer to use all licenses, hardware or software
necessary or desirable to collect or obtain or store information regarding the
Receivables). Notwithstanding its removal as Servicer, Medco irrevocably agrees
(to the extent requested to do so by the Administrative Agent) (i) to continue
to bill the Receivables and to provide all supporting data required to be
delivered to, or requested by, the Obligors pursuant to the Contracts and (ii)
to act as the data-processing agent for any successor Servicer, in each case in
substantially the same manner as Medco conducted such functions while it acted
as the Servicer.

                                   ARTICLE VII

                               TERMINATION EVENTS

          SECTION 7.01  Termination Events. If any of the following events (each
a "Termination Event") shall occur and be continuing:

          (a)  any Transaction Party shall fail to make any payment or deposit
required to be made by it hereunder in respect of Capital when due; or any
Transaction Party shall fail to make any other payment or deposit required to be
made by it hereunder or under any of the Transaction Documents when due
hereunder or thereunder and such failure shall remain unremedied for one
Business Day; or

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<PAGE>

          (b)  any representation, warranty, certification or statement made by
any Transaction Party in this Agreement, any other Transaction Document to which
it is a party or in any other document delivered pursuant hereto or thereto
shall prove to have been incorrect in any material respect (or, to the extent
any such representation or warranty is qualified by materiality or Material
Adverse Effect, such representation or warranty shall prove to have been
incorrect in any respect subject only to the materiality or Material Adverse
Effect qualification set forth therein) when made or deemed made; or

          (c)  any Transaction Party shall fail to perform or observe (A) any
term, covenant or agreement contained in Section 5.01(a) (as to maintenance of
existence only), 5.01(d), 5.01(j)(iv), 5.01(n) or 5.01(v) of this Agreement or
Section 5.01(a) (as to maintenance of existence only), 5.01(d) or 5.01(l)(iv) of
the Originator Purchase Agreement or (B) any other term, covenant or agreement
contained in this Agreement or any other Transaction Document on its part to be
performed or observed and, solely in the case of this clause (B), such failure
shall remain unremedied for ten (10) days after such Transaction Party has
knowledge or receives notice thereof; or

          (d)  (i) any Transaction Party shall fail to make any payment (whether
of principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable; or (ii) any
event or condition occurs that results in any Material Indebtedness becoming due
prior to its scheduled maturity, other than at the election of the Originator or
any Subsidiary, or that, subject to any applicable grace period, enables or
permits (with or without the giving of notice, the lapse of time or both) the
holder or holders of any Material Indebtedness or any trustee or agent on its or
their behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled
maturity; provided, however, that this clause (d)(ii) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of
the property or assets securing such Indebtedness; or

          (e)  any Event of Bankruptcy shall occur with respect to any
Transaction Party; or

          (f)  the Administrative Agent, on behalf of the Purchasers, shall, for
any reason, fail or cease to have a valid and perfected first priority security
interest in the Receivables and Related Security and Collections with respect
thereto or there shall exist any Adverse Claims (except as created in favor of
the Seller pursuant to the Originator Purchase Agreement or in favor of the
Administrative Agent and the Purchasers pursuant to this Agreement) on the
Receivables or the Related Security or Collections with respect thereto; or

          (g)  any Change of Control shall occur or the Originator shall cease
to own directly 100% of the issued and outstanding Equity Interests of the
Seller; or

          (h)  there shall have occurred since the Initial Closing Date any
event or condition which has had or could reasonably be expected to have a
material adverse effect on (A) the ability of any Transaction Party to perform
its obligations under the Transaction Documents or (B) the collectibility of the
Receivables; or

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<PAGE>

          (i)  the Receivable Interest Percentage exceeds the Maximum Receivable
Interest Percentage unless, within two Business Days of obtaining notice or
knowledge thereof, the Seller reduces the Capital from previously received
Collections or other funds available to the Seller so as to reduce the
Receivable Interest Percentage to less than or equal to the Maximum Receivable
Interest Percentage; or

          (j)  the average of the Dilution Ratios for any three consecutive
Calculation Periods exceeds 4.50%; or

          (k)  the average of the Default Ratios for any three consecutive
Calculation Periods exceeds 4.50%; or

          (l)  the average of the Delinquency Ratios for any three consecutive
Calculation Periods exceeds 5.25%; or

          (m)  the average of the Loss-to-Liquidation Ratios for any twelve
consecutive Calculation Periods exceeds 1.00%; or

          (n)  the average of the Portfolio Turnover Rates for any three
consecutive Calculation Periods exceeds 8; or

          (o)  any Transaction Party receives notice or becomes aware that (i) a
notice of federal tax lien has been filed against any Transaction Party or (ii)
a notice of lien has been filed against any Transaction Party under Section
412(n) of the IRC or Section 302(f) of ERISA for a failure to make a required
installment or other payment to a plan to which Section 412(n) of the IRC or
Section 302(f) of ERISA applies; or

          (p)  a "Termination Event" shall occur under (and as defined in) the
Originator Purchase Agreement; or

          (q)  one or more judgments for the payment of money in an aggregate
amount in excess of $25,000,000 or, in the case of the Seller, in an aggregate
amount in excess of $25,000 (except in each case to the extent covered by
insurance or other right of reimbursement or indemnification), or which have or
would reasonably be expected to have a Material Adverse Effect, shall be
rendered against the Originator, the Seller, any Subsidiary or any combination
thereof and the same shall remain undischarged for a period of 60 consecutive
days during which execution shall not be effectively stayed or bonded pending
appeal; or

          (r)  any of this Agreement or the Originator Purchase Agreement shall
cease, for any reason, to be in full force and effect, or any Transaction Party
shall so assert in writing or any Transaction Party shall otherwise seek to
terminate or disaffirm its obligations under any such Transaction Document; or

          (s)  any Financial Covenant Default shall occur; or

          (t)  an ERISA Event shall have occurred and shall be outstanding that,
when taken together with all other ERISA Events that have occurred and are then
outstanding, would

                                       44

<PAGE>

reasonably be expected to result in liability of the Originator and its
Subsidiaries in an aggregate amount exceeding $25,000,000, individually or in
the aggregate;

then, and in any such event, the Administrative Agent may, in its discretion,
and shall, at the direction of any Managing Agent or the Majority Committed
Purchasers, declare the Termination Date to have occurred upon notice to the
Seller (in which case the Termination Date shall be deemed to have occurred);
provided, however, that the Termination Date shall occur automatically upon the
occurrence of any Event of Bankruptcy with respect to any Transaction Party
without any requirement for the giving of notice. Upon any such declaration or
upon such automatic occurrence, the Purchasers, the Managing Agents and the
Administrative Agent shall have, in addition to the rights and remedies which
they may have under this Agreement, all other rights and remedies provided after
default under the UCC and under other applicable law, which rights and remedies
shall be cumulative.

                                  ARTICLE VIII

                            THE ADMINISTRATIVE AGENT

          SECTION 8.01  Authorization and Action. Each Purchaser hereby appoints
and authorizes the Administrative Agent to take such action as agent on its
behalf and to exercise such powers under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. The Administrative Agent shall not have any
duties other than those expressly set forth in the Transaction Documents, and no
implied obligations or liabilities shall be read into any Transaction Document,
or otherwise exist, against the Administrative Agent. The Administrative Agent
does not assume, nor shall it be deemed to have assumed, any obligation to, or
relationship of trust or agency with, any Transaction Party, the Conduit
Purchasers, the Committed Purchasers or the Managing Agents. Notwithstanding any
provision of this Agreement or any other Transaction Document, in no event shall
the Administrative Agent ever be required to take any action which exposes the
Administrative Agent to personal liability or which is contrary to any provision
of any Transaction Document or applicable law.

          SECTION 8.02  Agent's Reliance, Etc. Neither the Administrative Agent
nor any of its directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them as Administrative Agent under
or in connection with this Agreement (including, without limitation, the
Administrative Agent's servicing, administering or collecting Receivables as
Servicer), in the absence of its or their own gross negligence or willful
misconduct. Without limiting the generality of the foregoing, the Administrative
Agent: (a) may consult with legal counsel (including counsel for a Managing
Agent, the Seller or the Servicer), independent certified public accountants and
other experts selected by it and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (b) makes no warranty or representation to any
Managing Agent, Conduit Purchaser or Committed Purchaser (whether written or
oral) and shall not be responsible to any Managing Agent, Conduit Purchaser or
Committed Purchaser for any statements, warranties or representations (whether
written or oral) made in or in connection with this Agreement or any other
Transaction Document; (c) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants or conditions of
this

                                       45

<PAGE>

Agreement or any other Transaction Document on the part of any Transaction Party
or to inspect the property (including the books and records) of any Transaction
Party; (d) shall not be responsible to any Managing Agent, Conduit Purchaser or
Committed Purchaser for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other Transaction
Document; and (e) shall incur no liability under or in respect of this Agreement
by acting upon any notice (including notice by telephone), consent, certificate
or other instrument or writing (which may be by telecopier) believed by it to be
genuine and signed or sent by the proper party or parties.

          SECTION 8.03  CNAI and Affiliates. The obligation of Citibank to
purchase Receivable Interests under this Agreement may be satisfied by CNAI or
any of its Affiliates. With respect to any Receivable Interest or interest
therein owned by it, CNAI and its Affiliates shall have the same rights and
powers under this Agreement as any Committed Purchaser and may exercise the same
as though it were not the Administrative Agent. CNAI and any of its Affiliates
may generally engage in any kind of business with the Transaction Parties or any
Obligor, any of their respective Affiliates and any Person who may do business
with or own securities of the Transaction Parties or any Obligor or any of their
respective Affiliates, all as if CNAI were not the Administrative Agent and
without any duty to account therefor to the Managing Agents, the Conduit
Purchasers or the Committed Purchasers.

          SECTION 8.04  Indemnification of Administrative Agent. Each Committed
Purchaser agrees to indemnify the Administrative Agent (to the extent not
reimbursed by the Transaction Parties), ratably according to the respective
Percentage of such Committed Purchaser, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by, or asserted against the Administrative Agent in any way
relating to or arising out of this Agreement or any other Transaction Document
or any action taken or omitted by the Administrative Agent under this Agreement
or any other Transaction Document, provided that no Committed Purchaser shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from the Administrative Agent's gross negligence or willful misconduct.

          SECTION 8.05  Delegation of Duties. The Administrative Agent may
execute any of its duties through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.
The Administrative Agent shall not be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.

          SECTION 8.06  Action or Inaction by Administrative Agent. The
Administrative Agent shall in all cases be fully justified in failing or
refusing to take action under any Transaction Document unless it shall first
receive such advice or concurrence of the Majority Managing Agents, and
assurance of its indemnification by the Committed Purchasers, as it deems
appropriate. The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other
Transaction Document in accordance with a request or at the direction of the
Majority Managing Agents, and such request or direction and any action taken or
failure to act pursuant thereto shall be binding upon all Conduit Purchasers,
Committed Purchasers and the Managing Agents. The Purchasers, the Managing

                                       46

<PAGE>

Agents, and the Administrative Agent agree that unless any action to be taken by
the Administrative Agent under a Transaction Document (i) specifically requires
the advice or concurrence of all the Managing Agents or all the Purchasers or
(ii) may be taken by the Administrative Agent alone or without any advice or
concurrence of any Managing Agent or any Purchaser, then the Administrative
Agent may take action based upon the advice or concurrence of the Majority
Managing Agents.

          SECTION 8.07  Notice of Events of Termination; Action by
Administrative Agent. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Incipient Termination Event or of
any Termination Event unless the Administrative Agent has received notice from
any Managing Agent, Purchaser or the Seller stating that an Incipient
Termination Event or Termination Event has occurred hereunder and describing
such Incipient Termination Event or Termination Event. If the Administrative
Agent receives such a notice, it shall promptly give notice thereof to each
Managing Agent whereupon each Managing Agent shall promptly give notice thereof
to the Purchasers in its Purchaser Group. The Administrative Agent shall take
such action concerning an Incipient Termination Event or a Termination Event or
any other matter hereunder as may be directed by the Majority Managing Agents
(subject to the other provisions of this Article VIII), but until the
Administrative Agent receives such directions, the Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such action,
as the Administrative Agent deems advisable and in the best interests of the
Purchasers.

          SECTION 8.08  Non-Reliance on Administrative Agent and Other Parties.
Each Managing Agent and Purchaser expressly acknowledges (i) that neither the
Administrative Agent nor any of its directors, officers, agents or employees has
made any representations or warranties to it and (ii) that no act by the
Administrative Agent hereafter taken, including any review of the affairs of the
Transaction Parties, shall be deemed to constitute any representation or
warranty by the Administrative Agent. Each Purchaser represents and warrants to
the Administrative Agent that, independently and without reliance upon the
Administrative Agent, any Managing Agent or any other Purchaser and based on
such documents and information as it has deemed appropriate, it has made and
will continue to make its own appraisal of and investigation into the business,
operations, property, prospects, financial and other conditions and
creditworthiness of each Transaction Party and the Receivables and Contracts and
its own decision to enter into this Agreement and to take, or omit, action under
any Transaction Document. Except for items expressly required to be delivered
under any Transaction Document by the Administrative Agent to any Managing Agent
or Purchaser, the Administrative Agent shall not have any duty or responsibility
to provide any Managing Agent or Purchaser with any information concerning the
Transaction Parties or any of their Affiliates that comes into the possession of
the Administrative Agent or any of its directors, officers, agents, employees,
attorneys-in-fact or Affiliates.

          SECTION 8.09  Successor Administrative Agent. The Administrative Agent
may, upon at least thirty (30) days notice to the Seller, the Servicer and each
Managing Agent, resign as Administrative Agent. Except as provided below, such
resignation shall not become effective until a successor Administrative Agent is
appointed by the Majority Managing Agents and has accepted such appointment. If
no successor Administrative Agent shall have been so appointed by the Majority
Managing Agents within 30 days after the departing

                                       47

<PAGE>

Administrative Agent's giving of notice of resignation, the departing
Administrative Agent may, on behalf of the Majority Managing Agents, appoint a
successor Administrative Agent, which successor Administrative Agent shall have
short-term debt ratings of at least A-1 from S&P and P-1 from Moody's and shall
be either a commercial bank having a combined capital and surplus of at least
$250,000,000 or an Affiliate of such an institution. If no successor
Administrative Agent shall have been so appointed by the Majority Managing
Agents within 60 days after the departing Administrative Agent's giving of
notice of resignation, the departing Administrative Agent may, on behalf of the
Majority Managing Agents, petition a court of competent jurisdiction to appoint
a successor Administrative Agent, which successor Administrative Agent shall
have short-term debt ratings of at least A-1 from S&P and P-1 from Moody's, and
shall be either a commercial bank having a combined capital and surplus of at
least $250,000,000 or an Affiliate of such an institution. Upon such acceptance
of its appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall succeed to and
become vested with all the rights and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and obligations under the Transaction Documents. After any retiring
Administrative Agent's resignation hereunder, the provisions of Section 6.06,
Article X and this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was the Administrative Agent.

                                   ARTICLE IX

                               THE MANAGING AGENTS

          SECTION 9.01  Authorization and Action. Each Conduit Purchaser and
each Committed Purchaser which belongs to the same Purchaser Group hereby
appoints and authorizes the Managing Agent for such Purchaser Group to take such
action as agent on its behalf and to exercise such powers under this Agreement
as are delegated to such Managing Agent by the terms hereof, together with such
powers as are reasonably incidental thereto. No Managing Agent shall have any
duties other than those expressly set forth in the Transaction Documents, and no
implied obligations or liabilities shall be read into any Transaction Document,
or otherwise exist, against any Managing Agent. No Managing Agent assumes, nor
shall it be deemed to have assumed, any obligation to, or relationship of trust
or agency with any Transaction Party, Conduit Purchaser or Committed Purchaser.
Notwithstanding any provision of this Agreement or any other Transaction
Document, in no event shall any Managing Agent ever be required to take any
action which exposes such Managing Agent to personal liability or which is
contrary to any provision of any Transaction Document or applicable law.

          SECTION 9.02  Managing Agent's Reliance, Etc. No Managing Agent nor
any of its directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them as a Managing Agent under or
in connection with this Agreement or the other Transaction Documents in the
absence of its or their own gross negligence or willful misconduct. Without
limiting the generality of the foregoing, a Managing Agent: (a) may consult with
legal counsel (including counsel for the Administrative Agent, the Seller or the
Servicer), independent certified public accountants and other experts selected
by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or
experts; (b) makes no warranty or representation to any Conduit Purchaser or
Committed Purchaser (whether written or oral) and shall not be responsible to
any

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Conduit Purchaser or Committed Purchaser for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement or any other Transaction Document; (c) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Agreement or any other Transaction Document on
the part of any Transaction Party or any other Person or to inspect the property
(including the books and records) of any Transaction Party; (d) shall not be
responsible to any Conduit Purchaser or any Committed Purchaser for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement, any other Transaction Documents or any other instrument or
document furnished pursuant hereto; and (e) shall incur no liability under or in
respect of this Agreement or any other Transaction Document by acting upon any
notice (including notice by telephone), consent, certificate or other instrument
or writing (which may be by telecopier) believed by it to be genuine and signed
or sent by the proper party or parties.

          SECTION 9.03  Managing Agent and Affiliates. With respect to any
Receivable Interest or interests therein owned by it, each Managing Agent shall
have the same rights and powers under this Agreement as any Committed Purchaser
and may exercise the same as though it were not a Managing Agent. A Managing
Agent and any of its Affiliates may generally engage in any kind of business
with any Transaction Party or any Obligor, any of their respective Affiliates
and any Person who may do business with or own securities of any Transaction
Party or any Obligor or any of their respective Affiliates, all as if such
Managing Agent were not a Managing Agent and without any duty to account
therefor to any Conduit Purchasers or Committed Purchasers.

          SECTION 9.04  Indemnification of Managing Agents. Each Committed
Purchaser in any Purchaser Group agrees to indemnify the Managing Agent for such
Purchaser Group (to the extent not reimbursed by the Transaction Parties),
ratably according to the proportion of the Percentage of such Committed
Purchaser to the aggregate Percentages of all Committed Purchasers in such
Purchaser Group, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against such Managing Agent in any way relating to or arising out of
this Agreement or any other Transaction Document or any action taken or omitted
by such Managing Agent under this Agreement or any other Transaction Document,
provided that no Committed Purchaser shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from such Managing Agent's gross
negligence or willful misconduct.

          SECTION 9.05  Delegation of Duties. Each Managing Agent may execute
any of its duties through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties. No Managing
Agent shall be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

          SECTION 9.06  Action or Inaction by Managing Agent. Each Managing
Agent shall in all cases be fully justified in failing or refusing to take
action under any Transaction Document unless it shall first receive such advice
or concurrence of the Conduit Purchasers and Committed Purchasers in its
Purchaser Group and assurance of its

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indemnification by the Committed Purchasers in its Purchaser Group, as it deems
appropriate. Each Managing Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other
Transaction Document in accordance with a request or at the direction of the
Committed Purchasers in its Purchaser Group representing a majority of the
Commitments in such Purchaser Group, and such request or direction and any
action taken or failure to act pursuant thereto shall be binding upon all
Conduit Purchasers and Committed Purchasers in its Purchaser Group.

          SECTION 9.07  Notice of Events of Termination. No Managing Agent shall
be deemed to have knowledge or notice of the occurrence of any Incipient
Termination Event or of any Termination Event unless such Managing Agent has
received notice from the Administrative Agent, any other Managing Agent, any
Conduit Purchaser or Committed Purchaser or the Seller stating that an Incipient
Termination Event or Termination Event has occurred hereunder and describing
such Incipient Termination Event or Termination Event. If a Managing Agent
receives such a notice, it shall promptly give notice thereof to the Conduit
Purchasers and Committed Purchasers in its Purchaser Group and to the
Administrative Agent (but only if such notice received by such Managing Agent
was not sent by the Administrative Agent). The Managing Agent may take such
action concerning an Incipient Termination Event or a Termination Event as may
be directed by Committed Purchasers in its Purchaser Group representing a
majority of the Commitments in such Purchaser Group (subject to the other
provisions of this Article IX), but until such Managing Agent receives such
directions, such Managing Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, as such Managing Agent deems
advisable and in the best interests of the Conduit Purchasers and Committed
Purchasers in its Purchaser Group.

          SECTION 9.08  Non-Reliance on Managing Agent and Other Parties. Except
to the extent otherwise agreed to in writing between a Conduit Purchaser and its
Managing Agent, each Conduit Purchaser and Committed Purchaser in the same
Purchaser Group expressly acknowledges that neither the Managing Agent for its
Purchaser Group nor any of such Managing Agent's directors, officers, agents or
employees has made any representations or warranties to it and that no act by
such Managing Agent hereafter taken, including any review of the affairs of the
Transaction Parties, shall be deemed to constitute any representation or
warranty by such Managing Agent. Each Conduit Purchaser and Committed Purchaser
in the same Purchaser Group represents and warrants to the Managing Agent for
such Purchaser Group that, independently and without reliance upon such Managing
Agent, any other Managing Agent, the Administrative Agent or any other Conduit
Purchaser or Committed Purchaser and based on such documents and information as
it has deemed appropriate, it has made and will continue to make its own
appraisal of and investigation into the business, operations, property,
prospects, financial and other conditions and creditworthiness of the
Transaction Parties and the Receivables and Contracts and its own decision to
enter into this Agreement and to take, or omit, action under any Transaction
Document. Except for items expressly required to be delivered under any
Transaction Document by a Managing Agent to any Conduit Purchaser or Committed
Purchaser in its Purchaser Group, no Managing Agent shall have any duty or
responsibility to provide any Conduit Purchaser or Committed Purchaser in its
Purchaser Group with any information concerning the Transaction Parties or any
of their Affiliates that comes into the possession of such Managing Agent or any
of its directors, officers, agents, employees, attorneys-in-fact or Affiliates.

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          SECTION 9.09  Successor Managing Agent. Any Managing Agent may, upon
at least thirty (30) days' notice to the Administrative Agent, the Seller, the
Servicer and the Conduit Purchasers and Committed Purchasers in its Purchaser
Group, resign as Managing Agent for its Purchaser Group. Such resignation shall
not become effective until a successor Managing Agent is appointed in the manner
prescribed by the relevant Asset Purchase Agreement or, in the absence of any
provisions in such Asset Purchase Agreement providing for the appointment of a
successor Managing Agent, until a successor Managing Agent is appointed by the
Conduit Purchaser(s) in such Purchaser Group (with the consent of Committed
Purchasers representing a majority of the Commitments in such Purchaser Group)
and has accepted such appointment. If no successor Managing Agent shall have
been so appointed within 30 days after the departing Managing Agent's giving of
notice of resignation, then the departing Managing Agent may, on behalf of the
Purchasers in its Purchaser Group, appoint a successor Managing Agent for such
Purchaser Group, which successor Managing Agent shall have short-term debt
ratings of at least A-1 from S&P and P-1 from Moody's and shall be either a
commercial bank having a combined capital and surplus of at least $250,000,000
or an Affiliate of such an institution. Upon such acceptance of its appointment
as Managing Agent for such Purchaser Group hereunder by a successor Managing
Agent, such successor Managing Agent shall succeed to and become vested with all
the rights and duties of the retiring Managing Agent, and the retiring Managing
Agent shall be discharged from its duties and obligations under the Transaction
Documents. After any retiring Managing Agent's resignation hereunder, the
provisions of Section 6.06, Article X and this Article IX shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was a
Managing Agent.

          SECTION 9.10  Reliance on Managing Agent. Unless otherwise advised in
writing by a Managing Agent or by any Conduit Purchaser or Committed Purchaser
in such Managing Agent's Purchaser Group, each party to this Agreement may
assume that (i) such Managing Agent is acting for the benefit and on behalf of
each of the Conduit Purchasers and Committed Purchasers in its Purchaser Group,
as well as for the benefit of each assignee or other transferee from any such
Person, and (ii) each action taken by such Managing Agent has been duly
authorized and approved by all necessary action on the part of the Conduit
Purchasers and Committed Purchasers in its Purchaser Group.

                                    ARTICLE X

                                 INDEMNIFICATION

          SECTION 10.01 Indemnities by the Seller. Without limiting any other
rights that the Administrative Agent, the Managing Agents, the Conduit
Purchasers, the Committed Purchasers, the Program Support Providers or any of
their respective Affiliates (each, an "Indemnified Party") may have hereunder or
under applicable law, the Seller hereby agrees to indemnify each Indemnified
Party from and against any and all damages, losses, claims, liabilities,
deficiencies, costs, disbursements and expenses, including, without limitation,
interest, penalties, amounts paid in settlement and reasonable attorneys' fees
(all of the foregoing being collectively referred to as "Indemnified Amounts")
arising out of or resulting from this Agreement or any other Transaction
Document or the use of proceeds of purchases or reinvestments or the ownership
of Receivable Interests or in respect of any Receivable or any Contract,
excluding, however, (a) Indemnified Amounts to the extent a final non-appealable

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<PAGE>

judgment of a court of competent jurisdiction finds that such Indemnified
Amounts resulted from gross negligence or willful misconduct on the part of such
Indemnified Party, (b) recourse (except as otherwise specifically provided in
this Agreement) for Receivables that are uncollectible solely on account of the
insolvency, bankruptcy or financial inability of the Obligor to pay or (c) any
income, franchise, profits, branch profits or similar taxes incurred by such
Indemnified Party arising out of or as a result of this Agreement or the
ownership of Receivable Interests or in respect of any Receivable or any
Contract. Without limiting or being limited by the foregoing, the Seller shall
pay on demand to each Indemnified Party any and all amounts necessary to
indemnify such Indemnified Party from and against any and all Indemnified
Amounts relating to or resulting from any of the following (including, without
limitation, Indemnified Amounts arising on account of uncollectible Receivables,
but excluding Indemnified Amounts and taxes described in clauses (a) and (c)
above):

               (i)    any Receivable which the Seller or the Servicer includes
          as part of the Net Receivables Pool Balance but which is not an
          Eligible Receivable as of the date it was transferred to the Seller by
          the Originator or which thereafter ceases to be an Eligible
          Receivable;

               (ii)   any representation, warranty, certification, report or
          other statement made or deemed made by any Transaction Party (or any
          of their respective officers) under or in connection with this
          Agreement or any of the other Transaction Documents which shall have
          been incorrect in any respect when made;

               (iii)  the failure by any Transaction Party to comply with any
          applicable Law with respect to any Receivable or the related Contract;
          or the failure of any Receivable or the related Contract to conform to
          any such applicable Law;

               (iv)   the failure to vest (a) in the Purchasers a first priority
          perfected undivided percentage ownership interest, to the extent of
          each Receivable Interest, in the Receivables and the Related Security
          and Collections in respect thereof, or (b) in the Administrative Agent
          a first priority perfected security interest in all of the property
          described in Section 2.15, in each case free and clear of any Adverse
          Claim;

               (v)    the failure to have filed, or any delay in filing,
          financing statements or other similar instruments or documents under
          the UCC of any applicable jurisdiction or other applicable laws with
          respect to any Receivables and the Related Security and Collections in
          respect thereof, whether at the time of any purchase or reinvestment
          or at any subsequent time;

               (vi)   any dispute, claim or defense (other than discharge in
          bankruptcy) of an Obligor to the payment of any Receivable (including,
          without limitation, a defense based on such Receivable or the related
          Contract not being a legal, valid and binding obligation of such
          Obligor enforceable against it in accordance with its terms), or any
          other claim relating to any Contract or relating to billing or
          collection activities with respect to any such Contract or any
          Receivable (if such

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<PAGE>

          billing or collection activities were performed by the Seller or any
          of its Affiliates acting as Servicer) or relating to any Contract
          related thereto;

               (vii)  any failure of any Transaction Party to perform its duties
          or obligations in accordance with the provisions hereof and each other
          Transaction Document or to perform its duties or obligations under the
          Contracts or to timely and fully comply in all respects with the
          Credit and Collection Policy in regard to each Receivable and the
          related Contract;

               (viii) any products liability, environmental or other claim
          arising out of or in connection with merchandise, goods or services
          which are the subject of any Contract or the sale of which gave rise
          to any Receivable;

               (ix)   the commingling of Collections of Receivables at any time
          with other funds;

               (x)    any investigation, litigation or proceeding (actual or
          threatened) related to this Agreement or any other Transaction
          Document or the use of proceeds of Purchases or the ownership of
          Receivable Interests or in respect of any Receivable or Related
          Security or Contract;

               (xi)   any Receivable becoming a Diluted Receivable or any other
          setoff with respect to any Receivable;

               (xii)  any claim brought by any Person other than an Indemnified
          Party arising from any activity by the Seller or any Affiliate of the
          Seller in servicing, administering or collecting any Receivable; or

               (xiii) the failure by any Transaction Party to pay when due any
          taxes, including, without limitation, sales, excise or personal
          property taxes.

          Notwithstanding anything to the contrary in this Agreement, solely for
purposes of the Seller's indemnification obligations in clauses (ii) and (vii)
of this Article X, any representation, warranty or covenant qualified by the
occurrence or non-occurrence of a Material Adverse Effect or similar concepts of
materiality shall be deemed to be not so qualified.

                                   ARTICLE XI

                                  MISCELLANEOUS

          SECTION 11.01 Amendments, Etc. No failure on the part of the Managing
Agents, the Purchasers or the Administrative Agent to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right. No amendment or waiver of
any provision of this Agreement or consent to any departure by any Transaction
Party therefrom shall be effective unless in a writing signed by the
Administrative Agent, each Managing Agent and the Majority Committed Purchasers
(and, in the case of any amendment, also signed by the Seller and the Servicer),
and then such amendment, waiver or

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consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that the consent of the Seller shall
not be required for any amendment which modifies the representations,
warranties, covenants or responsibilities of the Servicer at any time when the
Servicer is not the Originator or any Affiliate of the Originator; provided,
further, that no amendment, waiver or consent shall, unless in writing and
signed by each Purchaser (or, in the case of clauses (c) and (d) below, each
Purchaser having its fees reduced or delayed or its Scheduled Commitment
Termination Date extended, as applicable) in addition to the Administrative
Agent:

               (a)  amend the definitions of Eligible Receivable, Delinquent
          Receivable, Defaulted Receivable, Net Receivables Pool Balance, Loss
          Reserve, Dilution Reserve, Yield and Fee Reserve or Total Reserve
          contained in this Agreement, or change the calculation of the
          Receivable Interests as set forth in such definition;

               (b)  reduce the amount of Capital or Yield that is payable on
          account of any Receivable Interest or delay any scheduled date for
          payment thereof;

               (c)  reduce fees payable by the Seller to the Managing Agents,
          the Conduit Purchasers or the Committed Purchasers or delay the dates
          on which such fees are payable;

               (d)  extend the Scheduled Commitment Termination Date for such
          Purchaser (except as set forth in the definition thereof); or

               (f)  change any of the provisions of this Section or the
          definition of "Majority Committed Purchasers";

and provided, further, that no amendment, waiver or consent shall increase the
Commitment of any Committed Purchaser or the Conduit Purchase Limit of any
Conduit Purchaser unless in writing and signed by such Committed Purchaser or
such Conduit Purchaser, as the case may be, and the relevant Managing Agent.

          SECTION 11.02 Notices, Etc. Except as provided below, all
communications and notices provided for hereunder shall be in writing (including
telecopy or electronic facsimile transmission or similar writing) and shall be
given to the other party at its address or telecopy number specified below or at
such other address or telecopy number as such party may hereafter specify for
the purposes of notice to such party. Each such notice or other communication
shall be effective (i) if given by telecopy, when such telecopy is transmitted
to the telecopy number specified in this Section 11.02 and confirmation is
received, (ii) if given by mail three (3) Business Days following such posting,
postage prepaid, U.S. certified or registered, (iii) if given by overnight
courier, one (1) Business Day after deposit thereof with a national overnight
courier service, or (iv) if given by any other means, when received at the
address specified in this Section 11.02. However, anything in this Section 11.02
to the contrary notwithstanding, the Seller hereby authorizes the Administrative
Agent and each Managing Agent to effect Purchases and Fixed Period and Yield
Rate selections based on telephonic notices made by any Person which the
Administrative Agent or such Managing Agent in good

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faith believes to be acting on behalf of the Seller. The Seller agrees to
deliver promptly to the Administrative Agent and each Managing Agent a written
confirmation of each telephonic notice signed by an authorized officer of
Seller. However, the absence of such confirmation shall not affect the validity
of such notice. If the written confirmation differs in any material respect from
the action taken by the Administrative Agent or such Managing Agent, the records
of the Administrative Agent or such Managing Agent shall govern absent manifest
error.

          If to a Committed Purchaser, to its address set forth on Schedule II.

          If to a Conduit Purchaser, to its address set forth on Schedule II.

          If to a Managing Agent, to its address set forth on Schedule II.

          If to the Seller:

          Medco Health Receivables, LLC
          100 Parsons Pond Drive, Mail Stop F1-5b
          Franklin Lakes, New Jersey 07417
          Attention: President
          Telecopy: (201) 269-1225

          If to the Servicer:

          Medco Health Solutions, Inc.
          100 Parsons Pond Drive
          Franklin Lakes, New Jersey 07417
          Attention: General Counsel
          Telecopy: (201) 269-1225

          If to the Administrative Agent:

          Citicorp North America, Inc.
          450 Mamaroneck Avenue
          Harrison, N.Y. 10528
          Attention: Global Securitization
          Facsimile No. 914-899-7890

          SECTION 11.03 Assignability. (a) This Agreement and each Purchasers'
rights and obligations hereunder (including ownership of each Receivable
Interest) shall be assignable by such Purchaser and its successors and permitted
assigns to any Eligible Assignee. Each assignor of a Receivable Interest or any
interest therein shall notify the Administrative Agent and the Seller of any
such assignment. Each assignor of a Receivable Interest or any interest therein
may, in connection with the assignment or participation, disclose to the
assignee or participant any information relating to the Transaction Parties,
including the Receivables, furnished to such assignor by or on behalf of any
Transaction Party or by the Administrative Agent; provided, however, that, prior
to any such disclosure, the assignee or participant agrees to preserve the
confidentiality of any confidential information relating to the Transaction
Parties received by it from any of the foregoing entities in a manner consistent
with Section 11.06(b).

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The Servicer and the Seller agree to assist each Committed Purchaser, upon its
reasonable request, in syndicating their respective Commitments hereunder,
including making management and representatives of the Servicer and the Seller
reasonably available to participate in information meetings with potential
assignees.

          (b)  Assignments by Conduit Purchasers. Each Conduit Purchaser may
assign, grant security interests in or otherwise transfer all or any portion of
the Receivable Interests to any Eligible Assignee or Program Support Provider
with respect to such Conduit Purchaser without prior notice to or consent from
any other party or any other condition or restriction of any kind. Without
limiting the generality of the foregoing, each Conduit Purchaser may, from time
to time with prior or concurrent notice to the Seller and each Managing Agent,
assign all or any portion of its interest in the Receivable Interest and its
rights and obligations under this Agreement and any other Transaction Documents
to which it is a party to a Conduit Assignee with respect to such Conduit
Purchaser. Upon such assignment by a Conduit Purchaser to a Conduit Assignee,
(A) unless a new Purchaser Group is being established pursuant to Section
11.03(i) below, the Managing Agent for the assigning Conduit Purchaser will act
as the Managing Agent for the Conduit Assignee hereunder, (B) such Conduit
Assignee and its liquidity support provider(s) and credit support provider(s)
and other related parties shall have the benefit of all the rights and
protections provided to such Conduit Purchaser and its related Committed
Purchasers herein and in the other Transaction Documents (including, without
limitation, any limitation on recourse against such Conduit Assignee), (C) such
Conduit Assignee shall assume all of such Conduit Purchaser's obligations
hereunder or under any other Transaction Document (whenever created, whether
before or after such assignment) with respect to the assigned portion of the
Receivable Interests held by such Conduit Purchaser and such Conduit Purchaser
shall be released from all such obligations, (D) all distributions to such
Conduit Purchaser hereunder with respect to the assigned portion of the
Receivable Interest shall be made to such Conduit Assignee, (E) the definition
of the term "CP Rate" shall be determined on the basis of the interest rate or
discount applicable to Promissory Notes issued by such Conduit Assignee (rather
than such assigning Conduit Purchaser), (F) the defined terms and other terms
and provisions of this Agreement and the other Transaction Documents shall be
interpreted in accordance with the foregoing, and (G) if requested by the
Administrative Agent or Managing Agent with respect to the Conduit Assignee, the
parties will execute and deliver such further agreements and documents
(including amendments to this Agreement) and take such other actions as the
Administrative Agent or such Managing Agent may reasonably request to evidence
and give effect to the foregoing.

          (c)  Assignment by Committed Purchasers. Each Committed Purchaser may
assign to any Eligible Assignee or to any other Committed Purchaser all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment and any Receivable Interests or
interests therein owned by it); provided, however that

               (i)    each such assignment shall be of a constant, and not a
          varying, percentage of all rights and obligations under this
          Agreement,

               (ii)   the amount being assigned pursuant to each such assignment
          (determined as of the date of the Assignment and Acceptance with
          respect to such

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<PAGE>

          assignment) shall in no event be less than the lesser of (x)
          $10,000,000 and (y) all of the assigning Committed Purchaser's
          Commitment,

               (iii)  the parties to each such assignment shall execute and
          deliver to the Administrative Agent, for its acceptance and recording
          in the Register (as defined below), an Assignment and Acceptance, and

               (iv)   concurrently with such assignment, it shall assign to such
          assignee Committed Purchaser or other Eligible Assignee an equal
          percentage of its rights and obligations under the Asset Purchase
          Agreement to which such assignor Committed Purchaser is a party.

          Upon such execution, delivery, acceptance and recording from and after
the effective date specified in such Assignment and Acceptance, (x) the assignee
thereunder shall be a party to this Agreement and, to the extent that rights and
obligations under this Agreement have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Committed
Purchaser thereunder and (y) the assigning Committed Purchaser shall, to the
extent that rights and obligations have been assigned by it pursuant to such
Assignment and Acceptance, relinquish such rights and be released from such
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Committed
Purchaser's rights and obligations under this Agreement, such Committed
Purchaser shall cease to be a party hereto). In addition, any Committed
Purchaser or any of its Affiliates may assign any of its rights (including,
without limitation, rights to payment of Capital and Yield) under this Agreement
to any Federal Reserve Bank without notice to or consent of any Transaction
Party, any other Committed Purchaser or Conduit Purchaser, any Managing Agent or
the Administrative Agent.

          (d)  Register. The Administrative Agent shall maintain at its address
referred to on the signature page of this Agreement (or such other address of
the Administrative Agent notified by the Administrative Agent to the other
parties hereto) a copy of each Assignment and Acceptance delivered to and
accepted by it and a register for the recordation of the names and addresses of
the Committed Purchasers and the Conduit Purchasers, the Commitment of each
Committed Purchaser and the aggregate outstanding Capital of the Receivable
Interest or interests therein owned by each Conduit Purchaser and Committed
Purchaser from time to time (the "Register"). The entries in the Register shall
be conclusive and binding for all purposes, absent manifest error, and the
Seller, the Servicer, the Administrative Agent, the Managing Agents, the Conduit
Purchasers and the Committed Purchasers may treat each Person whose name is
recorded in the Register as a Committed Purchaser or Conduit Purchaser, as the
case may be, under this Agreement for all purposes of this Agreement. The
Register shall be available for inspection by the Seller, any Managing Agent,
any Conduit Purchaser or any Committed Purchaser at any reasonable time and from
time to time upon reasonable prior notice.

          (e)  Procedure. Upon its receipt of an Assignment and Acceptance
executed by an assigning Committed Purchaser and an Eligible Assignee or
assignee Committed Purchaser, the Administrative Agent shall, if such Assignment
and Acceptance has been duly completed, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Seller.

                                       57

<PAGE>

          (f)  Participations by Conduit Purchasers. Each Conduit Purchaser may,
without the consent of the Seller or any other Person, sell participations to
one or more banks or other entities in all or a portion of its rights and
obligations hereunder (including the outstanding Receivable Interests);
provided, however, that

               (i)    such Conduit Purchaser's obligations under this Agreement
          shall remain unchanged,

               (ii)   such Conduit Purchaser shall remain solely responsible to
          the other parties to this Agreement for the performance of such
          obligations, and

               (iii)  the Administrative Agent, the Managing Agents, the Conduit
          Purchasers, the other Purchasers, the Seller and the Servicer shall
          have the right to continue to deal solely and directly with such
          Conduit Purchaser in connection with such Conduit Purchaser's rights
          and obligations under this Agreement.

          Any agreement or instrument pursuant to which a Conduit Purchaser
sells such a participation shall provide that the Participant shall not have any
right to direct the enforcement of this Agreement or other Transaction Documents
or to approve any amendment, modification or waiver of any provision of this
Agreement or the other Transaction Documents; provided, however, that such
agreement or instrument may provide that such Conduit Purchaser will not,
without the consent of the Participant, agree to any amendment, modification or
waiver of a type that would require the consent of each Purchaser affected
thereby pursuant to Section 11.01. Seller acknowledges and agrees that a Conduit
Purchaser's source of funds may derive in part from its Participants.
Accordingly, references in Sections 2.10, 2.13, 2.14, 6.06, 10.01 and 11.04 and
the other terms and provisions of this Agreement and the other Transaction
Documents to determinations, reserve and capital adequacy requirements,
expenses, increased costs, reduced receipts, Indemnified Amounts and the like as
they pertain to such Conduit Purchaser shall be deemed also to include those of
its Participants.

          (g)  Participations by Committed Purchasers. Each Committed Purchaser
may sell participations to one or more banks or other entities (each a
"Committed Purchaser Participant") in or to all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment and the interests in the Receivable Interests owned by
it); provided, however, that

               (i)    such Committed Purchaser's obligations under this
          Agreement (including, without limitation, its Commitment to the Seller
          hereunder) shall remain unchanged,

               (ii)   such Committed Purchaser shall remain solely responsible
          to the other parties to this Agreement for the performance of such
          obligations,

               (iii)  concurrently with the sale of such participation, the
          selling Committed Purchaser shall sell to such bank or other entity a
          participation in an equal percentage of its rights and obligations
          under the Asset Purchase Agreement to which such Committed Purchaser
          is a party, and

                                       58

<PAGE>

               (iv)   the Administrative Agent, the Managing Agents, the Conduit
          Purchasers, the other Committed Purchasers, the Seller and the
          Servicer shall have the right to continue to deal solely and directly
          with such Committed Purchaser in connection with such Committed
          Purchaser's rights and obligations under this Agreement.

          Any agreement or instrument pursuant to which a Committed Purchaser
sells such a participation shall provide that the Participant shall not have any
right to direct the enforcement of this Agreement or other Transaction Documents
or to approve any amendment, modification or waiver of any provision of this
Agreement or the other Transaction Documents; provided, however, that such
agreement or instrument may provide that such Committed Purchaser will not,
without the consent of the Participant, agree to any amendment, modification or
waiver of a type that would require the consent of each Purchaser affected
thereby pursuant to Section 11.01. Seller acknowledges and agrees that a
Committed Purchaser's source of funds may derive in part from its Participants.
Accordingly, references in Sections 2.10, 2.13, 2.14, 6.06, 10.01 and 11.04 and
the other terms and provisions of this Agreement and the other Program Documents
to determinations, reserve and capital adequacy requirements, expenses,
increased costs, reduced receipts, Indemnified Amounts and the like as they
pertain to such Committed Purchaser shall be deemed also to include those of its
Participants.

          (h)  Assignments by Seller and Servicer. Neither the Seller nor the
Servicer may assign any of its rights or obligations hereunder or any interest
herein without the prior written consent of each Managing Agent.

          (i)  Additional Purchaser Groups. In connection with any assignment by
a Conduit Purchaser of all or any portion of its Conduit Purchase Limit to a
Conduit Assignee, such Conduit Assignee may elect to establish a new Purchaser
Group hereunder by the execution and delivery of a Joinder Agreement by such
Conduit Assignee, the Committed Purchasers which are to be in its Purchaser
Group and the Person which is to be the Managing Agent for such Purchaser Group,
in each case without the consent of any other party. Upon the effective date of
such Joinder Agreement, (a) the Person specified therein as a "New Managing
Agent" shall become a party hereto and a party to the Purchaser Fee Letter as a
Managing Agent, entitled to the rights and subject to the obligations of a
Managing Agent hereunder, (b) each Person specified therein as a "New Conduit
Purchaser" shall become a party hereto as a Conduit Purchaser, entitled to the
rights and subject to the obligations of a Conduit Purchaser hereunder, (c) each
Person specified therein as a "New Committed Purchaser" shall become a party
hereto as a Committed Purchaser, entitled to the rights and subject to the
obligations of a Committed Purchaser hereunder and (d) Schedule II shall be
deemed to have been amended as appropriate to incorporate the information set
forth in such Joinder Agreement.

          (j)  Participants. No Participant shall receive any amount pursuant to
Sections 2.10, 2.13, 2.14, 6.06, 10.01 or 11.04 of this Agreement greater than
the amount the Purchaser, from whom such participation was made, would have been
entitled to receive under such Sections of this Agreement had no such
participation occurred.

          SECTION 11.04 Costs and Expenses. (a) In addition to the rights of
indemnification granted under Section 10.01 hereof, the Seller agrees to pay on
demand all

                                       59

<PAGE>

reasonable costs and expenses in connection with the preparation, execution,
delivery and administration of this Agreement, any Asset Purchase Agreement and
the Transaction Documents, including, without limitation, (i) the reasonable
fees and out-of-pocket expenses of counsel for the Administrative Agent, the
Conduit Purchasers, the Managing Agents, the Committed Purchasers and their
respective Affiliates with respect thereto and with respect to advising the
Administrative Agent, the Managing Agents, the Conduit Purchasers, the Committed
Purchasers and their respective Affiliates as to their rights and remedies under
this Agreement, (ii) all rating agency fees, (iii) all reasonable fees and
expenses associated with any audits and other due diligence conducted prior to
or after the Initial Closing Date and (iv) any amendments, waivers or consents
under the Transaction Documents. In addition, the Seller agrees to pay on demand
all costs and expenses (including reasonable counsel fees and expenses) of the
Administrative Agent, the Managing Agents, the Conduit Purchasers, the Committed
Purchasers and their respective Affiliates incurred in connection with the
enforcement of, or any dispute, work-out, litigation or preparation for
litigation involving, this Agreement or any other Transaction Document.

          (b)  In addition, the Seller shall pay on demand each of the following
to the extent not included in the CP Rate for the applicable Conduit Purchaser:
(i) any and all commissions of placement agents and Promissory Notes dealers in
respect of Promissory Notes issued to fund the Receivable Interests, (ii) any
and all reasonable costs and expenses of any issuing and paying agent or other
Person responsible for the administration of any Conduit Purchaser's Promissory
Notes program in connection with the preparation, completion, issuance, delivery
of payment of Promissory Notes issued to fund the Promissory Notes up to a
maximum amount of $20,000 per calendar year per Conduit Purchaser and (iii) the
applicable pro-rata costs and expenses of any Rating Agency rating any Conduit
Purchaser's Promissory Notes (to the extent not paid pursuant to Section
11.04(a) above); provided, however, that if any Conduit Purchaser enters into
agreements for the purchase of interests in receivables from one or more Persons
(each an "Other Seller"), such Conduit Purchaser shall equitably allocate such
expenses to the Seller and each Other Seller; and provided, further, that if
such expenses are attributable solely to the Seller, the Seller shall be solely
liable for such expenses, and if such expenses are attributable solely to Other
Sellers, such Other Sellers shall be solely liable for such expenses.

          SECTION 11.05 No Proceedings. Each of the Seller, the Administrative
Agent, the Servicer, each Managing Agent, each Conduit Purchaser, each Committed
Purchaser, each assignee of a Receivable Interest or any interest therein and
each Person which enters into a commitment to purchase Receivable Interests or
interests therein hereby agrees that it will not institute against any Conduit
Purchaser any proceeding of the type referred to in the definition of "Event of
Bankruptcy" so long as any Promissory Notes or other senior indebtedness issued
by such Conduit Purchaser shall be outstanding or there shall not have elapsed
one year plus one day since the last day on which any such Promissory Notes or
other senior indebtedness shall have been outstanding.

          SECTION 11.06 Confidentiality. (a) Each of the parties hereto hereby
agrees that, from the commencement of discussions with respect to the
transactions contemplated by the Transaction Documents (the "Transaction"), each
of the parties hereto (and each of their respective, and their respective
affiliates, employees, officers, directors, advisors, representatives and
agents) are permitted to disclose to any and all Persons, without limitation of
any kind, the

                                       60

<PAGE>

structure and tax aspects (as such terms are used in Internal Revenue Code
Sections 6011, 6111 and 6112 and the regulations promulgated thereunder) of the
Transaction, and all materials of any kind (including opinions or other tax
analyses) that are provided to any party related to such structure and tax
aspects. In this regard, the parties hereto acknowledge and agree that the
disclosure of the structure or tax aspects of the Transaction is not limited in
any way by an express or implied understanding or agreement, oral or written
(whether or not such understanding or agreement is legally binding).
Furthermore, each of the parties hereto acknowledges and agrees that it does not
know or have reason to know that its use or disclosure of information relating
to the structure or tax aspects of the Transaction is limited in any other
manner (such as where the Transaction is claimed to be proprietary or exclusive)
for the benefit of any other Person.

          (b)  Subject to Section 11.06(a), the Transaction Documents, the terms
thereof (including, without limitation, any specific pricing information
contained therein), the structure of the Transaction, any related structures
developed by the Administrative Agent or any Managing Agent for the Seller or
any of its Affiliates, any related analyses, computer models, information or
documents, any written or oral reports from Administrative Agent or any Managing
Agent to the Seller or any of its Affiliates or any related written information
(collectively, "Product Information") is confidential. Each of the Seller and
the Servicer agrees:

          (i)   to keep all Product Information confidential and to disclose
     Product Information only to those of its officers, employees, agents,
     accountants, legal counsel and other representatives (collectively
     "Representatives") who have a need to know such Product Information for the
     purpose of assisting in the Transaction;

          (ii)  to use the Product Information only in connection with the
     Transaction and not for any other purpose; and

          (iii) to cause its Representatives to comply with these provisions and
     to be responsible for any failure of any Representative to so comply.

          The provisions of this Section shall not apply to Product Information
that is or hereafter becomes (through a source other than the Seller, the
Servicer or any of their respective Affiliates or Representatives) a matter of
general public knowledge. The provisions of this Section shall not prohibit the
Seller or the Servicer from (i) filing with any governmental or regulatory
agency any information or other documents with respect to the Transaction as may
be required by applicable Law or (ii) making any other disclosure to the extent
required by applicable law, Subpoena or other legal process. The parties hereto
acknowledge that the Originator will file this Agreement and the Originator
Purchase Agreement, and any other material agreements related thereto (other
than the Fee Letters) as the Originator may determine in its sole discretion,
with the SEC.

          (c)  Each Purchaser, each Managing Agent, and the Administrative Agent
agrees to maintain the confidentiality of all non-public information with
respect to the Seller, the Originator, the Contracts or the Receivables
furnished or delivered to it pursuant to this Agreement; provided, however, that
such information may be disclosed (i) to such party's officers, employees,
agents, accountants, legal counsel and other representatives (collectively

                                       61

<PAGE>

"Purchaser Representatives") who have a need to know such information for the
purpose of assisting in the negotiation, completion and administration of the
facility contemplated hereby, (ii) to such party's assignees and participants
and potential assignees and participants to the extent such disclosure is made
pursuant to a written agreement of confidentiality substantially similar to this
Section 11.06(c), (iii) to the Rating Agencies, (iv) to the Program Support
Providers for each Conduit Purchaser and the dealers and investors in respect of
the Promissory Notes of any Conduit Purchaser, in each case in accordance with
the customary practices of such Conduit Purchaser for disclosures to Program
Support Providers, dealers or investors, as the case may be (it being understood
and agreed that any disclosures to dealers or investors will not identify the
Originator or its Affiliates by name) and (v) to the extent required by
applicable Law, Subpoena or other legal process or by any Official Body.

          The provisions of Section 11.06(b) shall not apply to information that
is or hereafter becomes (through a source other than the applicable Purchaser,
Managing Agent or the Administrative Agent or any Purchaser Representative
associated with such party) a matter of general public knowledge. The provisions
of this Section shall not prohibit any Purchaser, Managing Agent or the
Administrative Agent from filing with or making available to any Official Body
any information or other documents with respect to the Transaction as may be
required by applicable Law or requested by such Official Body .

          SECTION 11.07 Amendments to Financial Covenants. If the Revolving
Credit Agreement is amended, restated, supplemented or otherwise modified, or is
substituted or replaced with a new credit facility (each a "Modification"), and
such Modification includes one or more financial covenants which are different
from the financial covenants set forth on Schedule VI (including, without
limitation, by reasons of a difference in levels), then the parties hereto
agree, promptly upon request of each Managing Agent, to amend this Agreement as
appropriate to modify the financial covenants set forth in Schedule VI to
incorporate the financial covenant or covenants contained in such Modification
(which amendment shall include conforming amendments to the definitions
contained in Schedule VI).

          SECTION 11.08 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK BUT
OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES) EXCEPT TO THE EXTENT
THAT THE PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE
INTERESTS OF THE ADMINISTRATIVE AGENT, THE CONDUIT PURCHASERS AND THE COMMITTED
PURCHASERS IN THE RECEIVABLES AND ANY OTHER COLLATERAL DESCRIBED IN SECTION 2.15
ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

          SECTION 11.09 Execution in Counterparts. This Agreement may be
executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute
one and the same agreement. Delivery of an executed counterpart of a signature
page to this Agreement by facsimile shall be effective as delivery of a manually
executed counterpart of this Agreement.

                                       62

<PAGE>

          SECTION 11.10 Integration; Binding Effect; Survival of Termination.
This Agreement and the other Transaction Documents executed by the parties
hereto on the date hereof or on the Initial Closing Date contain the final and
complete integration of all prior expressions by the parties hereto with respect
to the subject matter hereof and shall constitute the entire agreement among the
parties hereto with respect to the subject matter hereof superseding all prior
oral or written understandings. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
permitted assigns (including any trustee in bankruptcy). Any provisions of this
Agreement which are prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. This Agreement
shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms and shall remain in full force and effect until the
Final Payout Date; provided, however, that the provisions of Sections 2.10,
2.13, 2.14, 6.06, 10.01, 11.04, 11.05 and 11.06 shall survive any termination of
this Agreement.

          SECTION 11.11 Consent to Jurisdiction. (a) Each party hereto hereby
irrevocably submits to the non-exclusive jurisdiction of any New York State or
Federal court sitting in New York City in any action or proceeding arising out
of or relating to this Agreement, and each party hereto hereby irrevocably
agrees that all claims in respect of such action or proceeding may be heard and
determined in such New York State court or, to the extent permitted by law, in
such Federal court. The parties hereto hereby irrevocably waive, to the fullest
extent they may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding. The parties hereto agree that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

          (b)  Each of the Seller and the Servicer consents to the service of
any and all process in any such action or proceeding by the mailing of copies of
such process to it at its address specified in Section 11.02. Nothing in this
Section 11.11 shall affect the right of any Conduit Purchaser, any Committed
Purchaser, any Managing Agent or the Administrative Agent to serve legal process
in any other manner permitted by law.

          SECTION 11.12 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED
WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT.

          SECTION 11.13 Right of Setoff. Each of the Purchasers is hereby
authorized (in addition to any other rights it may have) at any time after the
occurrence of the Termination Date due to the occurrence of a Termination Event,
or during the continuation of an Incipient Termination Event, to set off,
appropriate and apply (without presentment, demand, protest or other notice
which are hereby expressly waived) any deposits and any other

                                       63

<PAGE>

indebtedness held or owing by such Purchaser to, or for the account of, the
Seller against the amount of the Seller Obligations owing by the Seller to such
Person.

          SECTION 11.14 Ratable Payments. If any Committed Purchaser, whether by
setoff or otherwise, has a payment made to it with respect to any Seller
Obligations in a greater proportion than that received by any other Committed
Purchaser entitled to receive a ratable share of such Seller Obligations, such
Committed Purchaser agrees, promptly upon demand, to purchase for cash without
recourse or warranty a portion of such Seller Obligations held by the other
Committed Purchasers so that after such purchase each Committed Purchaser will
hold its ratable proportion of such Seller Obligations; provided that if all or
any portion of such excess amount is thereafter recovered from such Committed
Purchaser, such purchase shall be rescinded and the purchase price restored to
the extent of such recovery, but without interest.

          SECTION 11.15 Limitation of Liability. (a) No claim may be made by any
Transaction Party or any other Person against any Purchaser, any Managing Agent,
the Administrative Agent or their respective Affiliates, directors, officers,
employees, attorneys or agents (each a "Purchaser Party") for any special,
indirect, consequential or punitive damages in respect of any claim for breach
of contract or any other theory of liability arising out of or related to the
transactions contemplated by this Agreement or any other Transaction Document,
or any act, omission or event occurring in connection herewith or therewith,
except with respect to any claim arising out of the willful misconduct or gross
negligence of such Purchaser Party; and each of the Seller and the Servicer
hereby waives, releases, and agrees not to sue upon any claim for any such
damages, whether or not accrued and whether or not known or suspected to exist
in its favor.

          (b)  Notwithstanding anything to the contrary contained herein, the
obligations of the respective Conduit Purchasers under this Agreement are solely
the corporate obligations of each such Conduit Purchaser and shall be payable
only at such time as funds are actually received by, or are available to, such
Conduit Purchaser in excess of funds necessary to pay in full all outstanding
Promissory Notes issued by such Conduit Purchaser and, to the extent funds are
not available to pay such obligations, the claims relating thereto shall not
constitute a claim against such Conduit Purchaser. Each party hereto agrees that
the payment of any claim (as defined in Section 101 of Title 11 of the
Bankruptcy Code) of any such party shall be subordinated to the payment in full
of all Promissory Notes.

          (c)  No recourse under any obligation, covenant or agreement of any
Conduit Purchaser contained in this Agreement shall be had against any
incorporator, stockholder, officer, director, member, manager, employee or agent
of such Conduit Purchaser, the Managing Agent with respect to such Conduit
Purchaser or any of their Affiliates (solely by virtue of such capacity) by the
enforcement of any assessment or by any legal or equitable proceeding, by virtue
of any statute or otherwise; it being expressly agreed and understood that this
Agreement is solely a corporate obligation of such Conduit Purchaser, and that
no personal liability whatever shall attach to or be incurred by any
incorporator, stockholder, officer, director, member, manager, employee or agent
of any Conduit Purchaser, any Managing Agent or any of their Affiliates (solely
by virtue of such capacity) or any of them under or by reason of any of the
obligations, covenants or agreements of such Conduit Purchaser contained in this
Agreement, or implied therefrom, and that any and all personal liability for
breaches by any Conduit Purchaser

                                       64

<PAGE>

of any of such obligations, covenants or agreements, either at common law or at
equity, or by statute, rule or regulation, of every such incorporator,
stockholder, officer, director, member, manager, employee or agent is hereby
expressly waived as a condition of and in consideration for the execution of
this Agreement; provided, however, that the foregoing shall not relieve any such
Person from any liability it might otherwise have as a result of fraudulent
actions taken or fraudulent omissions made by them.

          SECTION 11.16 Intent of the Parties. (a) It is the intention of the
parties hereto that each purchase of Receivable Interests shall convey to the
Administrative Agent for the benefit of the applicable Purchasers, to the extent
of such Receivable Interests, an undivided interest in the Receivables and the
Related Security and Collections in respect thereof and that such transaction
shall constitute a purchase and sale and not a secured loan for all purposes
other than for United States federal, state and local income tax purposes.
However, if a determination is made that such purchase shall not be so treated,
the transactions effected hereby shall be deemed to constitute a secured
financing under applicable law.

          (b)  The Seller has structured the Transaction Documents with the
intention that the Receivable Interests and the obligations of the Seller
hereunder will be treated under United States federal, and applicable state,
local and foreign tax law as debt (the "Intended Tax Treatment"). The Seller,
Medco, the Administrative Agent, the Conduit Purchasers and the Committed
Purchasers agree to file no tax return, or take any action, inconsistent with
the Intended Tax Treatment. Each assignee and each participant acquiring an
interest in a Receivable Interest, by its acceptance of such assignment or
participation, agrees to comply with the immediately preceding sentence.

                  [Remainder of page intentionally left blank]

                                       65

<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

     SELLER:                            MEDCO HEALTH RECEIVABLES, LLC

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

     CONDUIT
     PURCHASERS:                        CAFCO, LLC

                                        By:  Citicorp North America, Inc.,
                                              as Attorney-in-Fact

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

                                        FALCON ASSET SECURITIZATION CORPORATION

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

ADMINISTRATIVE AGENT:                   CITICORP NORTH AMERICA, INC.,
                                         as Administrative Agent

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

<PAGE>

MANAGING AGENTS:                        CITICORP NORTH AMERICA, INC.,
                                         as Managing Agent

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

                                        BANK ONE, NA (MAIN OFFICE CHICAGO),
                                         as Managing Agent

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

COMMITTED PURCHASERS:                   CITIBANK, N.A.

                                        By:
                                             -----------------------------------
                                             Attorney-in-Fact

                                        BANK ONE, NA (MAIN OFFICE CHICAGO)

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

SERVICER:                               MEDCO HEALTH SOLUTIONS, INC.

                                        By:
                                             -----------------------------------
                                        Name:
                                        Title:

                                       67Indenture

 Exhibit 4.1 
  

Execution Copy 
  

  
 Saks Incorporated, 
  
 as Issuer, 
  
 The Subsidiary Guarantors named herein, 
  
 as Guarantors, 
  
 and 
  
 The Bank of New York Trust Company, N.A., 
  
 as Trustee 
  

  
 INDENTURE 
  
 Dated as of March 23, 2004 
  

  
 2.00% Convertible Senior
Notes due March 15, 2024 
  

 CROSS-REFERENCE TABLE 
  

			
	 TIA
 Section

	  	 Indenture
 Section

	 310(a)(1)
	  	11.10
	       (a)(2)
	  	11.10
	       (a)(3)
	  	N.A.
	       (a)(4)
	  	N.A.
	       (a)(5)
	  	N.A.
	       (b)
	  	11.3; 11.8; 11.10
	       (c)
	  	N.A.
	 311(a)
	  	11.11
	       (b)
	  	11.11
	       (c)
	  	N.A.
	 312(a)
	  	2.5
	       (b)
	  	15.3
	       (c)
	  	15.3
	 313(a)
	  	11.6
	       (b)(1)
	  	N.A.
	       (b)(2)
	  	11.6
	       (c)
	  	3.7; 11.6; 15.2
	       (d)
	  	11.6
	 314(a)
	  	3.7; 3.8
	       (b)
	  	N.A.
	       (c)(1)
	  	15.4
	       (c)(2)
	  	15.4
	       (c)(3)
	  	15.4
	       (d)
	  	N.A.
	       (e)
	  	15.5
	       (f)
	  	N.A.
	 315(a)
	  	11.1(b), 11.1(g)
	       (b)
	  	11.5; 15.2
	       (c)
	  	11.1(a)
	       (d)
	  	11.1(c)
	       (e)
	  	10.9
	 316(a)(last sentence)
	  	2.9; 15.6
	       (a)(1)(A)
	  	10.7
	       (a)(1)(B)
	  	10.7
	       (a)(2)
	  	N.A.
	       (b)
	  	10.4
	       (c)
	  	14.7
	 317(a)(1)
	  	10.2
	       (a)(2)
	  	10.2
	       (b)
	  	2.4
	 318(a)
	  	11.1(g), 15.1

  
 N.A. means not applicable 

Note: This Cross-Reference table shall not, for any purpose, be deemed to be part of this Indenture. 
  

 i 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE I
	DEFINITIONS AND INCORPORATION BY REFERENCE
			
	 SECTION 1.1.
	  	Definitions	  	1
			
	 SECTION 1.2.
	  	Incorporation by Reference of Trust Indenture Act	  	12
			
	 SECTION 1.3.
	  	Rules of Construction	  	13
	
	ARTICLE II
	THE NOTES
			
	 SECTION 2.1.
	  	Form, Dating and Terms	  	14
			
	 SECTION 2.2.
	  	Execution and Authentication	  	20
			
	 SECTION 2.3.
	  	Registrar, Conversion Agent and Paying Agent	  	21
			
	 SECTION 2.4.
	  	Paying Agent To Hold Money and Securities in Trust	  	22
			
	 SECTION 2.5.
	  	Holder Lists	  	22
			
	 SECTION 2.6.
	  	Transfer and Exchange	  	22
			
	 SECTION 2.7.
	  	Form of Certificate To Be Delivered in Connection with Transfers to Institutional Accredited Investors	  	24
			
	 SECTION 2.8.
	  	Mutilated, Destroyed, Lost or Stolen Notes	  	26
			
	 SECTION 2.9.
	  	Outstanding Notes	  	26
			
	 SECTION 2.10.
	  	Temporary Notes	  	27
			
	 SECTION 2.11.
	  	Cancellation	  	28
			
	 SECTION 2.12.
	  	Payment of Interest; Defaulted Interest	  	28
			
	 SECTION 2.13.
	  	Computation of Interest	  	29
			
	 SECTION 2.14.
	  	CUSIP Numbers	  	29
			
	 SECTION 2.15.
	  	Issuance, Transfer and Exchange of Common Stock Issuable Upon Conversion of the Notes	  	29
			
	 SECTION 2.16.
	  	Calculations in Respect of the Notes	  	30
	
	ARTICLE III
	COVENANTS
			
	 SECTION 3.1.
	  	Payment of Notes	  	30
			
	 SECTION 3.2.
	  	Maintenance of Office or Agency	  	31
			
	 SECTION 3.3.
	  	Money for Note Payments To Be Held in Trust	  	31
			
	 SECTION 3.4.
	  	Corporate Existence	  	32

  

 ii 

					
			
	 SECTION 3.5.
	  	Further Instruments and Acts	  	33
			
	 SECTION 3.6.
	  	Liquidated Damages Notices	  	33
			
	 SECTION 3.7.
	  	SEC Reports	  	33
			
	 SECTION 3.8.
	  	Compliance Certificates	  	33
			
	 SECTION 3.9.
	  	Rule 144A Information Requirement	  	34
			
	 SECTION 3.10.
	  	Stay, Extension and Usury Laws	  	34
			
	 SECTION 3.11.
	  	Notice of Default	  	34
			
	 SECTION 3.12.
	  	Note Guarantees	  	34
			
	 SECTION 3.13.
	  	Restrictions on Liens	  	34
			
	 SECTION 3.14.
	  	Restrictions on Sale and Leaseback Transactions	  	36
			
	 SECTION 3.15.
	  	Additional Guarantors	  	37
			
	 SECTION 3.16.
	  	Exempted Debts	  	37
	
	ARTICLE IV
	SUCCESSOR COMPANY
			
	 SECTION 4.1.
	  	Merger and Consolidation	  	37
			
	 SECTION 4.2.
	  	Successor Corporation Substituted	  	38
	
	ARTICLE V
	REDEMPTION OF NOTES
			
	 SECTION 5.1.
	  	Optional Redemption	  	38
			
	 SECTION 5.2.
	  	Applicability of Article	  	38
			
	 SECTION 5.3.
	  	Election to Redeem; Notice to Trustee	  	38
			
	 SECTION 5.4.
	  	Selection by Trustee of Notes To Be Redeemed	  	38
			
	 SECTION 5.5.
	  	Notice of Redemption	  	39
			
	 SECTION 5.6.
	  	Deposit of Redemption Price	  	40
			
	 SECTION 5.7.
	  	Notes Payable on Redemption Date	  	40
			
	 SECTION 5.8.
	  	Notes Redeemed in Part	  	41
			
	 SECTION 5.9.
	  	Arrangement on Call for Redemption	  	41
	
	ARTICLE VI
	REPURCHASE UPON A FUNDAMENTAL CHANGE
			
	 SECTION 6.1.
	  	Repurchase at the Option of the Holder upon a Fundamental Change	  	42
			
	 SECTION 6.2.
	  	Notice of Fundamental Change	  	42
			
	 SECTION 6.3.
	  	Exercise of Option	  	43
			
	 SECTION 6.4.
	  	Procedures	  	43

  

 iii 

					
	ARTICLE VII
	OPTIONAL REPURCHASE
			
	 SECTION 7.1.
	  	Repurchase of Notes by the Company at the Option of the Holder	  	44
	
	ARTICLE VIII
	 CONDITIONS AND PROCEDURES FOR REPURCHASES AT OPTION OF HOLDERS

			
	 SECTION 8.1.
	  	Notice of Repurchase Date or Fundamental Change	  	46
			
	 SECTION 8.2.
	  	Effect of Repurchase Notice or Fundamental Change Repurchase Notice	  	47
			
	 SECTION 8.3.
	  	Notes Repurchased in Part	  	48
			
	 SECTION 8.4.
	  	Covenant to Comply with Securities Laws upon Repurchase of Notes	  	48
			
	 SECTION 8.5.
	  	Repayment to the Company	  	49
	
	ARTICLE IX
	CONVERSION OF NOTES
			
	 SECTION 9.1.
	  	Right To Convert	  	49
			
	 SECTION 9.2.
	  	Determination of Satisfaction of Certain Conversion Triggers	  	51
			
	 SECTION 9.3.
	  	Conversion Procedures	  	51
			
	 SECTION 9.4.
	  	Cash Payments in Lieu of Fractional Shares	  	53
			
	 SECTION 9.5.
	  	Taxes on Conversion	  	53
			
	 SECTION 9.6.
	  	Covenants of the Company	  	54
			
	 SECTION 9.7.
	  	Adjustments to Conversion Rate	  	54
			
	 SECTION 9.8.
	  	Calculation Methodology	  	58
			
	 SECTION 9.9.
	  	When No Adjustment Required	  	58
			
	 SECTION 9.10.
	  	Notice of Adjustment	  	59
			
	 SECTION 9.11.
	  	Voluntary Increase	  	59
			
	 SECTION 9.12.
	  	Notice to Holders Prior to Certain Actions	  	60
			
	 SECTION 9.13.
	  	Effect of Reclassification, Consolidation, Merger, Binding Share Exchange or Sale	  	60
			
	 SECTION 9.14.
	  	Responsibility of Trustee	  	61
			
	 SECTION 9.15.
	  	Successive Adjustments	  	62
			
	 SECTION 9.16.
	  	General Considerations	  	62
			
	 SECTION 9.17.
	  	Payment of Cash in Lieu of Common Stock	  	62

  

 iv 

					
	ARTICLE X
	DEFAULTS AND REMEDIES
			
	 SECTION 10.1.
	  	Events of Default	  	63
			
	 SECTION 10.2.
	  	Payment of Notes on Default; Suit Therefor	  	65
			
	 SECTION 10.3.
	  	Application of Moneys Collected by Trustee	  	67
			
	 SECTION 10.4.
	  	Proceedings by Holders	  	67
			
	 SECTION 10.5.
	  	Proceedings by Trustee	  	68
			
	 SECTION 10.6.
	  	Remedies Cumulative and Continuing	  	68
			
	 SECTION 10.7.
	  	Direction of Proceedings; Waiver of Defaults by Majority of Holders	  	68
			
	 SECTION 10.8.
	  	Notice of Defaults	  	69
			
	 SECTION 10.9.
	  	Undertaking to Pay Costs	  	69
	
	ARTICLE XI
	TRUSTEE
			
	 SECTION 11.1.
	  	Duties of Trustee	  	70
			
	 SECTION 11.2.
	  	Rights of Trustee	  	71
			
	 SECTION 11.3.
	  	Individual Rights of Trustee	  	72
			
	 SECTION 11.4.
	  	Trustee’s Disclaimer	  	72
			
	 SECTION 11.5.
	  	Notice of Defaults	  	73
			
	 SECTION 11.6.
	  	Reports by Trustee to Holders	  	73
			
	 SECTION 11.7.
	  	Compensation and Indemnity	  	73
			
	 SECTION 11.8.
	  	Replacement of Trustee	  	74
			
	 SECTION 11.9.
	  	Successor Trustee by Merger	  	75
			
	 SECTION 11.10.
	  	Eligibility; Disqualification	  	75
			
	 SECTION 11.11.
	  	Preferential Collection of Claims Against Company	  	75
	
	ARTICLE XII
	GUARANTEE OF NOTES
			
	 SECTION 12.1.
	  	Unconditional Guarantee.	  	75
			
	 SECTION 12.2.
	  	Execution and Delivery of Note Guarantee	  	76
			
	 SECTION 12.3.
	  	Additional Guarantors	  	77
			
	 SECTION 12.4.
	  	Release of a Guarantor	  	77
			
	 SECTION 12.5.
	  	Waiver of Subrogation	  	77
			
	 SECTION 12.6.
	  	Reliance on Judicial Order or Certificate of Liquidating Agent Regarding Dissolution, etc. of Guarantors	  	78
			
	 SECTION 12.7.
	  	Article XII Applicable to Paying Agents	  	78

  

 v 

							
			
	 SECTION 12.8.
	  	No Suspension of Remedies	  	78
			
	 SECTION 12.9.
	  	Limitation of Subsidiary Guarantor’s Liability	  	78
			
	 SECTION 12.10.
	  	Contribution from Other Guarantors	  	79
			
	 SECTION 12.11.
	  	Obligations Reinstated	  	79
			
	 SECTION 12.12.
	  	No Obligation To Take Action Against the Company	  	79
			
	 SECTION 12.13.
	  	Dealing with the Company and Others	  	79
	
	ARTICLE XIII
	SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS
			
	 SECTION 13.1.
	  	Satisfaction and Discharge of Indenture	  	80
			
	 SECTION 13.2.
	  	Application by Trustee of Funds Deposited for Payment of Notes	  	81
			
	 SECTION 13.3.
	  	Repayment of Moneys Held by Paying Agent	  	81
			
	 SECTION 13.4.
	  	Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years	  	81
			
	 SECTION 13.5.
	  	Indemnity for U.S. Government Obligations	  	82
	
	ARTICLE XIV
	SUPPLEMENTAL INDENTURES AND AMENDMENTS
			
	 SECTION 14.1.
	  	Without Consent of Holders	  	82
			
	 SECTION 14.2.
	  	With Consent of Holders	  	83
			
	 SECTION 14.3.
	  	Execution of Supplemental Indentures, Agreements and Waivers	  	84
			
	 SECTION 14.4.
	  	Effect of Supplemental Indentures	  	84
			
	 SECTION 14.5.
	  	Compliance with Trust Indenture Act	  	84
			
	 SECTION 14.6.
	  	Reference in Notes to Supplemental Indentures	  	84
			
	 SECTION 14.7.
	  	Revocation and Effect of Consents and Waivers	  	84
			
	 SECTION 14.8.
	  	Notation on or Exchange of Notes	  	85
	
	ARTICLE XV
	MISCELLANEOUS
			
	 SECTION 15.1.
	  	Trust Indenture Act Controls	  	85
			
	 SECTION 15.2.
	  	Notices	  	85
			
	 SECTION 15.3.
	  	Communication by Holders with Other Holders	  	86
			
	 SECTION 15.4.
	  	Certificate and Opinion as to Conditions Precedent	  	86
			
	 SECTION 15.5.
	  	Statements Required in Certificate or Opinion	  	87
			
	 SECTION 15.6.
	  	When Notes Disregarded	  	87

  

 vi 

					
			
	 SECTION 15.7.
	  	Rules by Trustee, Paying Agent and Registrar	  	87
			
	 SECTION 15.8.
	  	Governing Law	  	87
			
	 SECTION 15.9.
	  	No Recourse Against Others	  	87
			
	 SECTION 15.10.
	  	Successors	  	88
			
	 SECTION 15.11.
	  	Multiple Originals	  	88
			
	 SECTION 15.12.
	  	Variable Provisions	  	88
			
	 SECTION 15.13.
	  	Qualification of Indenture	  	88

  
 EXHIBITS

  

			
		
	EXHIBIT A	 	Form of Note
		
	EXHIBIT B	 	Form of Transfer Certificate for Transfer of Restricted Stock
		
	EXHIBIT C	 	Form of Note Guarantee

  
  

 vii 

 INDENTURE, dated as of March 23, 2004, among Saks Incorporated, a corporation incorporated under the laws
of the State of Tennessee (the “Company”) as issuer, the Subsidiary Guarantors named herein (the “Guarantors”), as guarantors and The Bank of New York Trust Company, N.A. (the “Trustee”) as trustee. 
  
 RECITALS OF THE COMPANY 
  
 The Company has duly authorized the execution and delivery of this Indenture
to provide for the issuance of up to $230,000,000 principal amount of the Company’s 2.00% Convertible Senior Notes due March 15, 2024, convertible into common stock, par value $0.10 per share (the “Common Stock”), of the Company (the
“Notes”). 
  
 The Guarantors have duly authorized their
senior guarantee of the Notes and to provide therefor, the Guarantors have duly authorized the execution and delivery of this Indenture and their Note Guarantees (as hereinafter defined) under the terms set forth herein. 
  
 All things necessary have been done to make the Notes and the Note
Guarantees, when executed by the Company and the Guarantors, respectively, and authenticated and delivered hereunder and duly issued by the Company and the Guarantors, respectively, the valid obligations of the Company and the Guarantors and to make
this Indenture a valid agreement of each of the Company, the Guarantors and the Trustee in accordance with the terms hereof. 
  
 Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of the Notes: 
  
 ARTICLE I 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION 1.1. Definitions. 
  
 “9.7(g) Current Market Price” means the average of the Closing Sale Prices of the Common Stock for the five consecutive Trading Days
beginning on the Trading Day next succeeding the date of the repurchase triggering the adjustment in Section 9.7(g). 
  
 “Accounts Receivable Subsidiary” means any present or future Subsidiary (including any credit card bank) of the Company which is
organized for the purpose of and is only engaged in (i) originating, purchasing, acquiring, financing, selling, servicing or collecting accounts receivable obligations of customers of the Company or its Subsidiaries, (ii) issuing or servicing credit
cards, engaging in other credit card operations or financing accounts receivable obligations of customers of the Company and its Subsidiaries, (iii) the sale or financing of such accounts receivable and interests therein and (iv) other activities
incident thereto. 
  
 “actual knowledge” has the
meaning set forth in Section 11.2(g). 
  

 1 

 “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 the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of Voting Stock, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Agent Members” has the meaning set forth in Section
2.1(g)(ii). 
  
 “Attributable Debt” in respect of
a Sale and Leaseback Transaction means, at the time of determination, the present value (discounted at the imputed rate of interest of such transaction determined in accordance with GAAP) 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). The term “net rental payments” under any
lease for any period shall mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including any amounts required to be paid by such lessee (whether or not designated as rental or additional
rental) on account of maintenance and repairs, insurance, taxes, assessment, water rates or similar charges or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, insurance, taxes,
assessments, water rates or similar charges. 
  
 “Authenticating Agent” has the meaning set forth in Section 2.2. 
  
 “Bankruptcy Law” means Title 11, United States Code or any similar federal or state law relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or relief of debtors
or the law of any other jurisdiction relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or relief of debtors or any amendment to, succession to or change in any such law. 
  
 “Bankruptcy Order” means any court order made in a
proceeding pursuant to or within the meaning of any Bankruptcy Law, containing an adjudication of bankruptcy or insolvency, or providing for liquidation, receivership, winding-up, dissolution, “concordat” or reorganization, or appointing a
Custodian of a debtor or of all or any substantial part of a debtor’s property, or providing for the staying, arrangement, adjustment or composition of indebtedness or other relief of a debtor. 
  
 “Beneficial Owner” has the meaning set forth in Rule 13d-3
of the Exchange Act. 
  
 “Board of Directors”
means the board of directors of the Company or the board of directors, managers or other governing body of any Guarantor, as the case may be, or any duly authorized committee thereof. 
  
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the
Company or any Guarantor, as the case may be, to have been duly adopted by its respective Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 
  

 2 

 “Business Day” means each day that is not a Saturday, Sunday or other day on which
banking institutions in New York, New York are authorized or required by law, regulation or executive order to close. 
  
 “Capital Stock” of any Person means any and all shares (including ordinary shares or “American Depositary Shares”), interests,
rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person and any
rights (other than debt securities convertible or exchangeable into an equity interest), warrants or options to acquire an equity interest in such Person. 
  
 “Cash Amount Per Note” has the meaning set forth in Section 9.17(b). 
  
 “Cash Settlement Averaging Period” has the meaning set forth in Section 9.17(a). 
  
 A “Change in Control” shall be deemed to have occurred at
such time after the original issuance of the Notes that any of the following occurs: 
  
 (a) any Person, including any syndicate or group deemed to be a “person” under Section 13(d) of the Exchange Act, files a
Schedule TO or any schedule, form or report under the Exchange Act disclosing that such person, syndicate or group has become the direct or indirect ultimate “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of more than
50% of the Company’s Capital Stock that are entitled to vote generally in elections of directors, other than an acquisition by the Company, any of its Subsidiaries or any of the Company’s employee benefit plans; 
  
 (b) the Company consummates any share exchange,
consolidation or merger pursuant to which the Common Stock will be converted into cash, securities, or other property, or the Company conveys, sells, transfers or leases in one transaction or a series of transactions all or substantially all of the
consolidated assets of the Company and its Subsidiaries, taken as a whole, to a Person other than the Company or one or more of its Subsidiaries, other than any transaction pursuant to which the holders of the Common Stock immediately prior to the
transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all classes of Capital Stock entitled to vote generally in the election of directors of the continuing or surviving corporation
immediately after the transaction. 
  
 Notwithstanding the
foregoing provisions, a Change in Control shall not be deemed to have occurred if either: (i) the Closing Sale Price of the Common Stock for any five Trading Days within the period of ten consecutive Trading Days ending immediately before the later
of the Change in Control or the public announcement of the Change in Control, in the case of a Change in Control relating to an acquisition of Capital Stock under clause (a) of this definition, or the period of ten consecutive Trading Days ending
immediately before the later of the Change in Control or the public announcement of the Change in Control, in the case of a Change in Control relating to a merger, consolidation, asset sale or otherwise under clause (b) of this definition, equals or
exceeds 105% of the Conversion Price in effect on each of those five or ten Trading Days, as the case may be; or (ii) all of the consideration paid for the Common Stock 
  

 3 

 
(excluding cash payments for fractional shares and cash payments made pursuant to dissenters’ appraisal rights) in a merger or consolidation or a
conveyance, sale, transfer or lease otherwise constituting a Change in Control under clause (a) and/or clause (b) of this definition consists of shares of Capital Stock traded on the New York Stock Exchange, quoted on the Nasdaq National Market or
its successor or traded on another national securities exchange (or will be so traded or quoted immediately following the merger or consolidation) and, as a result of the merger or consolidation, the Notes become convertible into shares of such
Capital Stock. 
  
 “Closing Sale Price” of the
Common Stock on any date means the closing sale price (determined without reference to after-hours or extended market trading) per share (or, if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either
case, the average of the average bid and the average ask prices) on that date as reported in the New York Stock Exchange or, if the Common Stock is not then listed on the New York Stock Exchange, then on the principal U.S. national or regional
securities exchange or market on which the Common Stock is then listed or quoted, or if the Common Stock is not listed for trading on a U.S. national or regional securities exchange or market, the Closing Sale Price shall be the price as reported on
the principal other market on which the Common Stock is then traded. In the absence of such quotations, the Board of Directors of the Company shall make a good faith determination of the Closing Sale Price. 
  
 “Commission” means the Securities and Exchange Commission.

  
 “Common Stock” has the meaning stated in the
first recital of this Indenture. 
  
 “Company”
means Saks Incorporated, a corporation incorporated under the laws of Tennessee, and, subject to Article IV, its successors and assigns. 
  
 “Company Notice” has the meaning set forth in Section 8.1. 
  
 “Company Notice Date” has the meaning set forth in Section 8.1. 
  
 “Company Order” has the meaning set forth in Section 2.2.

  
 “Consolidated Net Tangible Assets” means the
total amount of assets (less accumulated depreciation and valuation reserves and other reserves and items deductible from gross book value of specific asset accounts under GAAP) that under GAAP are included on a balance sheet of the Company and its
Subsidiaries after deducting therefrom all goodwill, trade names, trademarks, patents, favorable lease rights, unamortized debt discount and expense and other like intangibles (other than leasehold costs and investments in so-called safe harbor
leases), which in each such case would be so included on such balance sheet, net of accumulated amortization. 
  
 “Conversion Agent” means the office or agency designated by the Company where Notes may be presented for conversion. 
  
 “Conversion Date” has the meaning set forth in Section 9.3.

  
 “Conversion Obligation” has the meaning set
forth in Section 9.17. 
  

 4 

 “Conversion Price” means $1,000 divided by the Conversion Rate. 
  
 “Conversion Rate” has the meaning set forth in Section 9.1.

  
 “Corporate Trust Office” means the designated
corporate trust office of the Trustee at which at any time its corporate trust business shall be administered, which office at the date hereof is located at 101 Barclay Street, Floor 8W, New York, New York 10286, or such other address as the Trustee
may designate from time to time by notice to the Holders and the Company, or the designated corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and
the Company). 
  
 “Credit Facility” means the
Amended and Restated Credit Agreement dated as of November 26, 2003, by and among the Company, Fleet Retail Group, Inc., as Agent, and other financial institutions, as in effect on the Issue Date, and as such agreement may be amended, renewed,
extended, substituted, refinanced, replaced, supplemented or otherwise modified from time to time, and includes related notes, guarantees and other agreements executed in connection therewith. 
  
 “Current Market Price” means (i) the average of the Closing
Sale Prices of the Common Stock for the five consecutive Trading Days ending on or at the Time of Determination. 
  
 “Default” means any event or condition that is, or after notice or passage of time or both would be, an Event of Default. 
  
 “Defaulted Interest” has the meaning set forth in Section
2.12. 
  
 “Definitive Notes” means the Notes that
are in registered definitive form. 
  
 “Depositary” means The Depository Trust Company, its nominees and their respective successors and assigns, or such other depositary institution hereinafter appointed by the Company. 
  
 “Distributed Assets” has the meaning set forth in Section
9.7(c). 
  
 “Equity Interests” means any Capital
Stock, partnership, joint venture, member or limited liability or unlimited liability company interest, beneficial interest in a trust or similar entity or other equity interest or equity investment of whatever nature. 
  
 “Event of Default” means any event or condition specified as
such in Section 10.1. 
  
 “Exchange Act” means
the Securities Exchange Act of 1934, as amended. 
  
 “Exempted Debt” has the meaning set forth in Section 3.16. 
  
 “ex-date” or “ex-dividend date” has the meaning set forth in Section 9.1(g). 
  

 5 

 “Expiration Time” has the meaning set forth in Section 9.7(f). 
  
 “Fair Market Value” means, with respect to any asset or
property, the price which could be negotiated in an arm’s-length, free market transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the transaction. Fair
Market Value shall be determined by the Board of Directors acting reasonably and in good faith. 
  
 “Fitch” means Fitch, Inc. (or its successors). 
  

“Foreign Subsidiary” means a subsidiary of the Company not organized or existing under the laws of the United States of America, any
state thereof, the District of Columbia or any territory thereof. 
  
 “Fundamental Change “ means the occurrence of a Change in Control or a Termination of Trading. 
  
 “Fundamental Change Repurchase Date” has the meaning set forth in Section 6.1. 
  
 “Fundamental Change Repurchase Notice” has the meaning set
forth in Section 6.3. 
  
 “Fundamental Change Repurchase
Price” has the meaning set forth in Section 6.1. 
  
 “Funded Debt” means Indebtedness which matures more than one year from the date of the computation thereof, or which is extendable or renewable at the sole option of the obligor so that it may become payable more than one
year from such date; provided, however, that Funded Debt shall not include (i) obligations created pursuant to leases, or (ii) any Indebtedness for the payment or redemption of which money in the necessary amount shall have been deposited in trust
either at or before the maturity date thereof. 
  
 “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 may be approved by a significant segment of the accounting profession of the United States, as in effect on the date hereof. 

 
 “Global Notes” means Notes that are in the form of the
Note attached hereto as Exhibit A and that are issued to a Depositary. 
  
 “Guarantee” or “Note Guarantee” means the guarantee, substantially in the form of Exhibit C hereto, by each of the Guarantors of the Notes and the Company’s obligations
under this Indenture. 
  
 “guarantee” means, as
applied to any obligation, (i) a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct 
  

 6 

 
or indirect, in any manner, of any part or all of such obligation and (ii) an agreement, direct or indirect, contingent or otherwise, the practical effect of
which is to assure in any way the payment or performance (or payment of damages in the event of non-performance) of all or any part of such obligation. A guarantee shall include, without limitation, any agreement to maintain or preserve any other
Person’s financial condition or to cause any other Person to achieve certain levels of operating results. 
  
 “Guarantor” means (i) each of the Company’s Subsidiaries that are guarantors or obligors in respect of the Credit Facility on the
Issue Date and (ii) each other Subsidiary of the Company that is required to execute a supplemental indenture and become a Guarantor subsequent to the Issue Date pursuant to Section 3.15. 
  
 “Holder” means, in the case of any Note, the Person in whose name such Note is registered in the Note
Register kept by the Registrar for that purpose in accordance with the terms hereof. 
  
 “IAI” means institutional accredited investors (as defined in Rules 501(a)(1), (2), (3) and (7) under the Securities Act) who are not QIBs. 
  
 “Indebtedness” of any Person means indebtedness for borrowed
money and indebtedness under purchase money Liens or conditional sales or similar title retention agreements, in each case where such indebtedness has been created, incurred, or assumed by such Person to the extent such indebtedness would appear as
a liability upon a balance sheet of such Person prepared in accordance with GAAP, guarantees by such Person of such indebtedness, and indebtedness for borrowed money secured by any Lien, pledge or other lien or encumbrance upon property owned by
such Person, even though such Person has not assumed or become liable for the payment of such indebtedness. 
  
 “Indenture” means this Indenture as amended or supplemented from time to time, including, for all purposes of this instrument and any
supplemental indenture or amendment hereto, the provisions of the TIA that are deemed to be a part of and govern this instrument and any such supplemental indenture or amendment, respectively. 
  
 “Indenture Obligations” means the obligations of the Company
and any other obligor under this Indenture or under the Notes, to pay principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes when due and payable, whether at maturity, upon repurchase or redemption, by acceleration
or otherwise, and all other amounts due or to become due under or in connection with this Indenture, the Notes or the Guarantees and the performance of all other obligations to the Trustee (including, but not limited to, payment of all amounts due
the Trustee under Section 11.7 hereof) and the Holders of the Notes under this Indenture, the Notes and the Guarantees, according to the terms thereof. 
  
 “Initial Public Offering” means, in the event of a Spin-Off, the first time securities of the same class or type as the securities being
distributed in the Spin-Off are bona fide offered to the public for cash. 
  
 “Initial Purchasers” means the initial purchasers of the Notes. 
  

 7 

 “Interest Payment Date” has the meaning set forth in the form of Note attached hereto as
Exhibit A. 
  
 “Issue Date” means the original
issue date of any Notes hereunder. 
  
 “Lien”
means any security interest, pledge, lien or other encumbrance. 
  
 “Liquidated Damages” has the meaning set forth in Section 3.6. For all purposes under this Indenture, the term “interest” shall include Liquidated Damages, if any, with respect to the Notes. 
  
 “Liquidated Damages Notice” has the meaning set forth in
Section 3.6. 
  
 “Market Capitalization” means
the product of (i) 9.7(g) Current Market Price multiplied by (ii) number of Common Stocks outstanding on the date of the repurchase triggering the adjustment set forth under Section 9.7(g). 
  
 “Moody’s” means Moody’s Investors Service, Inc.
(or its successors). 
  
 “non-electing share” has
the meaning set forth in Section 9.13. 
  
 “Note”
or “Notes” has the meaning stated in the first recital of this Indenture or, as the case may be, means Notes that have been authenticated and delivered pursuant to this Indenture, including the Global Note(s). 
  
 “Note Register” has the meaning set forth in Section 2.3.

  
 “Notes Custodian” means the Trustee or any
Person appointed by the Trustee to act as custodian of Global Notes for the Depositary. 
  
 “Notes Custodian” means the custodian with respect to the Global Note (as appointed by the Depositary or any successor Person thereto) and shall initially be the Trustee. 
  
 “Officer” means, with respect to the Company or any
Guarantor, the Chairman of the Board, an Executive Vice President, a Senior Vice President, the President, a Vice President, the Secretary, an Assistant Secretary, the Treasurer or an Assistant Treasurer. 
  
 “Officers’ Certificate” means a certificate signed by
any Officer of the Company or any Guarantor, as applicable. Each such certificate shall include the statements provided for in Section 15.5, if and to the extent required by the provisions of Section 15.4. 
  
 “Operating Assets” means all merchandise, inventories,
furniture and equipment (including all transportation and warehousing equipment, store racks and showcases but excluding office equipment and data processing equipment) owned by the Company or a Subsidiary. 
  
 “Operating Property” means all real property and
improvements thereon owned by the Company or a Subsidiary and constituting, without limitation, any store, warehouse, service center or distribution center wherever located; provided, however, that such term shall not 
  

 8 

 
include any store, warehouse, service center or distribution center which the Company’s Board of Directors declares by resolution not to be of material
importance to the business of the Company and its Subsidiaries. Operating Property is treated as having been “acquired” on the day the Operating Property is placed in operation by the Company or any of its Subsidiaries after the latest of
(a) its acquisition from a third party, including any of the Company’s Subsidiaries, (b) completion of its original construction or (c) completion of its substantial reconstruction, renovation, remodeling, expansion or improvement (whether or
not constituting an Operating Property prior to such reconstruction, renovation, remodeling, expansion or improvement). 
  
 “Opinion of Counsel” means a written opinion from legal counsel. The counsel may be an employee of or counsel to the Company. Each such
opinion shall include the statements provided for in Section 15.5, if and to the extent required by the provisions of Section 15.4. 
  
 “Outstanding Notes” has the meaning set forth in Section 2.9. 
  
 “Paying Agent” means the office or agency designated by the Company where Notes may be presented for
payment, initially the Trustee. 
  
 “Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity.

  
 “Principal Value Conversion” has the meaning
set forth in Section 9.1(c). 
  
 “protected
purchaser” has the meaning set forth in Section 2.8. 
  
 “Purchased Shares” has the meaning set forth in Section 9.7(f)(i). 
  
 “QIB” means any “qualified institutional buyer” (as defined in Rule 144A under the Securities Act). 
  

“Redemption Date” means the date fixed for redemption of the Notes. 
  
 “Redemption Price” has the meaning set forth in paragraph 6 of the Notes. 
  
 “Registrar” means the office or agency maintained by the
Company where Notes may be presented for registration of transfer or exchange, initially the Trustee. 
  
 “Registration Rights Agreement” means that certain registration rights agreement dated as of the date of this Indenture among the
Company, the Guarntors and the Initial Purchasers. 
  
 “Regular Record Date” has the meaning set forth in the form of Note attached hereto as Exhibit A. 
  
 “Repurchase Date” has the meaning set forth in Section 7.1(a). 
  

 9 

 “Repurchase Notice” has the meaning set forth in Section 7.1(a)(1). 
  
 “Repurchase Premium” has the meaning set forth in Section
9.7(g). 
  
 “Repurchase Price” has the meaning
provided in paragraph 8 of the Notes. 
  
 “Resale
Restriction Termination Date” has the meaning set forth on Section 2.6(a). 
  
 “Responsible Officer,” when used with respect to the Trustee, means any officer assigned by the Trustee to administer its corporate trust matters and who is located at the Corporate Trust Office and
who shall have the direct responsibility for the administration of this Indenture. 
  
 “Restricted Note Legend” means the legend set forth in Section 2.1(d). 
  
 “Restricted Stock Legend” means the legend required by Section 2.1(e). 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Senior Funded Debt” means all Funded Debt of the Company or
any Person (except Funded Debt, the payment of which is subordinated to the payment of the Notes). 
  
 “Shelf Registration Statement” shall have the meaning set forth in the Registration Rights Agreement. 
  
 “Special Interest Payment Date” has the meaning set forth in
Section 2.12(a). 
  
 “Special Record Date” has
the meaning set forth in Section 2.12(a). 
  
 “Spin-Off” means a dividend or other distribution of shares of Capital Stock of any class or series, or similar Equity Interests, of or relating to a Subsidiary or other business unit of the Company. 
  
 “Spin-Off Market Price” (a) per share of Common Stock means
(i) in the event a Spin-Off is not effected simultaneously with an Initial Public Offering, the average of the Closing Sale Prices of the Common Stock for the ten Trading Days after the effective date of such Spin-Off or (ii) in the event an Initial
Public Offering is effected simultaneously with the Spin-Off, the Closing Sale Price of the Common Stock on the Trading Day on which the initial public offering price of securities being distributed in the Initial Public Offering is determined and
(b) per Equity Interest of a Subsidiary or other business unit of the Company means (i) in the event a Spin-Off is not effected simultaneously with an Initial Public Offering, the average of the closing sale prices of such Equity Interest to be
distributed with respect to one share of Common Stock for the ten Trading Days after the “ex date” with respect to such Spin-Off or (ii) in the event an Initial Public Offering is effected simultaneously with the Spin-Off, the initial
public offering price in the Initial Public Offering of such Equity Interest to be distributed with respect to one share of Common Stock. 
  

 10 

 “Standard & Poor’s” means Standard & Poor’s Rating Services (or its
successors). 
  
 “Stated Maturity,” when used
with respect to the Notes, means March 15, 2024. 
  
 “Subsidiary” means any corporation or other business entity of which at least a majority of the outstanding stock or membership or other interest, as the case may be, having voting power under ordinary circumstances to
elect a majority of the board of directors, managers or other governing body of such corporation or business entity or otherwise direct the business and affairs of said corporation or business entity is at the time owned or controlled by the
Company, or by the Company and one or more Subsidiaries, or by any one or more Subsidiaries; provided, that, unless otherwise expressly stated, Subsidiary shall not include any Accounts Receivable Subsidiary or any Foreign Subsidiary. 
  
 “Successor Corporation” shall have the meaning assigned
thereto in clause (i) of Section 4.1(a). 
  
 “Termination
of Trading” will be deemed to have occurred if the Common Stock (or other Common Stock into which the Notes are then convertible) is neither traded on the New York Stock Exchange or another United States national securities exchange or
quoted on The Nasdaq Stock Market or another established automated over-the-counter trading market in the United States. 
  
 “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb), as in effect
from time to time. 
  
 “Time of Determination”
means (i) with respect to 9.1(g), 9.7(a) or (b), the time and date of the determination of stockholders entitled to receive rights, warrants or options or a distribution (or, if such date is not a Trading Day, then on the last Trading Day prior to
such date) or (ii) with respect to Section 9.7(c) or 9.7(d), the day before the “ex-dividend” Trading Day for a distribution specified in Section 9.7(c) or 9.7(d) (or, if such date is not a Trading Day, then on the last Trading Day prior
to such date). 
  
 “Trading Day” means a day
during which trading in securities generally occurs on the New York Stock Exchange or, if the Common Stock is not then listed on the New York Stock Exchange, then on another national or regional securities exchange on which the Common Stock is then
listed or, if the Common Stock is not listed on a national or regional securities exchange, on The Nasdaq National Market tier of The Nasdaq Stock Market or, if the Common Stock is not quoted on a national or regional securities exchange or on the
Nasdaq National Market, on the principal other market on which the Common Stock is then traded or quoted. 
  
 “Trading Price,” with respect to the Notes, on any date of determination means the average of the secondary market bid quotations per
Note obtained by the Trustee, at any time the Company instructs the Trustee to determine the Trading Price, for $5.0 million principal amount of the Notes at approximately 3:30 p.m., New York City time, on such determination date from two
independent nationally recognized securities dealers selected by the Company, which may include the Initial Purchasers, provided that if at least two such bids cannot reasonably be obtained by the Trustee, but one such bid can reasonably be
obtained by the Trustee, this 
  

 11 

 
one bid shall be used. If the Trustee cannot reasonably obtain at least one bid for $5.0 million principal amount of the Notes from a nationally recognized
securities dealer, or in the reasonable judgment of the Company, the bid quotations are not indicative of the secondary market value of the Notes, then the Trading Price of the Notes will equal (a) the applicable Conversion Rate of the Notes
multiplied by (b) the Closing Sale Price of the Common Stock on such determination date. 
  
 “Transfer Restricted Notes” has the meaning set forth in Section 2.1(d). 
  
 “Trust Officer” means, with respect to the Trustee, any officer assigned to the Corporate Trust Office, and also, with respect to a
particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 
  
 “Trustee” means the Person identified as “Trustee” in the first paragraph hereof and, subject to the provisions of Article XI,
shall also include any successor trustee. 
  
 “Uniform
Commercial Code” means the New York Uniform Commercial Code as in effect from time to time in the State of New York. 
  
 “U.S. Government Obligations” means securities that are (i) direct obligations of the United States of America for the timely payment of
which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuer thereof at any time prior to the Stated Maturity of the Notes, and shall also include a depository receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any such U.S. Government Obligation or a specific payment of principal of or interest on any such U.S. Government Obligation held by such custodian
for the account of the holder of such depository receipt; provided, however, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the U.S. Government Obligation or the specific payment of principal of or interest on the U.S. Government Obligation evidenced by such depository receipt. 
  
 “Voting Stock” means any class or classes of Capital Stock
pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the Board of Directors, managers, trustees or other governing body of any Person (irrespective of whether or not, at the
time, stock of any other class or classes shall have, or might have, voting power by reason of the happening of any contingency). 
  
 SECTION 1.2. Incorporation by Reference of Trust Indenture Act. This Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following TIA terms have the following meanings: 
  
 “indenture securities” means the Notes. 
  
 “indenture security holder” means a Holder. 
  

 12 

 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional trustee” means the
Trustee. 
  
 “obligor” on the indenture securities means
the Company and any other obligor on the indenture securities. 
  
 All other TIA terms used in this Indenture that are defined by the TIA, defined by the TIA by reference to another statute or defined by Commission rule have the meanings assigned to them by such definitions. 
  
 SECTION 1.3. 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 words in the plural include the singular; 
  
 (5) unsecured Indebtedness shall not be deemed to be subordinate or junior to secured Indebtedness merely by virtue of its nature as
unsecured Indebtedness; 
  
 (6) the principal
amount of any non-interest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of the issuer dated such date prepared in accordance with GAAP; 
  
 (7) the table of contents and headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof; 
  
 (8) the words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; 
  
 (9) all references to “$” or “dollars” shall refer to the lawful currency of the United States of America; 

 
 (10) the words “include,” “included”
and “including” as used herein shall be deemed in each case to be followed by the phrase “without limitation,” if not expressly followed by such phrase or the phrase “but not limited to”; 
  

 13 

 (11) references to sections of or rules under the Securities Act, the Exchange Act or the
TIA shall be deemed to include substitute, replacement or successor sections or rules adopted by the Commission from time to time thereunder; and 
  
 (12) any reference to a Section or Article refers to such Section or Article of this Indenture unless otherwise indicated. 
  
 ARTICLE II 
  
 THE NOTES 
  
 SECTION 2.1. Form, Dating and Terms. 
  
 (a) The maximum aggregate principal amount of Notes that may be
authenticated and delivered under this Indenture is $230,000,000. Furthermore, Notes may be authenticated and delivered upon registration or transfer, or in lieu of, other Notes pursuant to Section 2.6, 2.8 or 14.8. 
  
 The Notes shall be known and designated as 2.00% Convertible Senior Notes due
March 15, 2024. Pursuant to the provisions of Article IX, the Notes shall be convertible into Common Stock. 
  
 Each Note shall bear the applicable legends, if any, set forth in Section 2.1(d) and transfers of the Notes shall be made only in accordance with the
restrictions described in the applicable legend. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage, in addition to those set forth on Exhibit A and in Section 2.1(d). The Company, the Guarantors and
the Trustee shall approve the forms of the Notes and any notation, endorsement or legend on them. Each Note shall be dated the date of its authentication. The terms of the Note set forth in Exhibit A are part of the terms of this Indenture and, to
the extent applicable, the Company, the Guarantors and the Trustee, by their execution and delivery of this Indenture, expressly agree to be bound by such terms. 
  
 The principal of and interest on the Notes shall be payable at the office or agency of the Company maintained for such
purpose in the City of New York, or at such other office or agency of the Company as may be maintained for such purpose pursuant to Section 2.3. Payments in respect of a Definitive Note (including principal, interest and Liquidated Damages, if any)
shall be made in U.S. dollars at the office of the Trustee. At the Company’s option, however, the Company may make such payments by mailing a check to the registered address of each Holder thereof as such address as shall appear on the Note
Register or with respect to Notes represented by a Global Note, by wire transfer of immediately available funds to the accounts specified by the Depositary. If a payment date is a date other than a Business Day, payment may be made at that place on
the next succeeding day that is a Business Day and no interest shall accrue for the intervening period. 
  

 14 

 (b) Notes offered and sold to QIBs in reliance on Rule 144A and resold to IAIs in the United States of
America shall be issued in the form of one or more permanent Global Notes, without interest coupons, substantially in the form of Exhibit A. Such Global Notes shall be deposited on behalf of the purchasers of the Notes represented thereby with the
Notes Custodian for the Depositary for the accounts of participants in the Depositary, duly executed by the Company (and having an executed Note Guarantee from each of the Guarantors endorsed thereon) and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of a Global Note may from time to time be increased or decreased by adjustments made on the records of the Notes Custodian, as hereinafter provided. 
  
 (c) The Notes shall be issuable only in fully registered form, without
coupons, and only in denominations of $1,000 and any integral multiple thereof. 
  
 (d) Every Note that bears or is required under this Section 2.1(d) to bear the legend set forth in this Section 2.1(d) (the “Transfer Restricted Notes”) shall be subject to the restrictions on transfer set
forth in this Section 2.1(d) (including those set forth in the legend set forth below), and the Holder of each such Transfer Restricted Note, by such Holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer. As used
in Sections 2.1(d) and 2.1(e), the term “transfer” includes any sale, pledge, transfer or other disposition whatsoever of any Transfer Restricted Note. The Registrar shall not register any transfer of a Transfer Restricted Note not made in
accordance with the restrictions on transfer set forth in this Section 2.1. 
  
 Subject to the last paragraph of this Section 2.1(d) and Section 2.15 with respect to Common Stock, until the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or
any successor provision), any certificate evidencing any Note (and all securities issued in exchange therefor or substitution thereof, including Common Stock, if any, issued upon conversion thereof, which shall bear the legend set forth in Section
2.1(e), if applicable), shall bear a legend in substantially the following form: 
  
 “THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE ‘SECURITIES ACT’), AND MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THIS NOTE
AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) (1) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE
144A UNDER THE SECURITIES ACT ACQUIRING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED 
  

 15 

 INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES AND OTHER JURISDICTIONS. 
  
 “THIS NOTE, ANY SHARES
OF COMMON STOCK ISSUABLE UPON ITS CONVERSION AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS NOTE AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN
APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY. THE HOLDER OF THIS NOTE AND SUCH SHARES OF COMMON STOCK SHALL BE DEEMED BY THE ACCEPTANCE OF THIS
NOTE AND ANY SUCH SHARES TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.” 
  
 Any Note (or security issued in exchange or substitution therefor) as to which such restrictions on transfer shall have expired in accordance with their terms or that has been transferred pursuant to a registration
statement that has been declared effective under the Securities Act may, upon surrender of such Note to the Registrar for exchange in accordance with the provisions of this Section 2.1, be exchanged for a new Note or Notes, of like tenor and
aggregate principal amount, which shall not bear the Restricted Note Legend required by this Section 2.1(d). 
  
 (e) Every stock certificate representing Common Stock issued upon conversion of a Transfer Restricted Note that bears or is required under this Section
2.1(e) to bear the legend set forth in this Section 2.1(e) shall be subject to the restrictions on transfer set forth in this Section 2.1(e) (including those set forth in the legend set forth below), and the Holder of such Common Stock issued upon
conversion of a Transfer Restricted Note, by such Holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer and the further restrictions set forth in Section 2.15. The Company shall not register any transfer of Common
Stock issued upon conversion of such a Transfer Restricted Note not made in accordance with the restrictions on transfer set forth in this Section 2.1. 
  
 Until the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), any stock
certificate representing 
  

 16 

 Common Stock issued upon conversion of a Transfer Restricted Note shall bear a legend in substantially the following
form, unless such Common Stock has been sold pursuant to a registration statement that has been declared effective under the Securities Act (and which continues to be effective at the time of such transfer) or such Common Stock has been issued upon
conversion of Notes that have been transferred pursuant to a registration statement that has been declared effective under the Securities Act: 
  
 “THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933 (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 AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED,
EXCEPT (X) (I) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT ACQUIRING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (III) TO AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE
MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT,
AND (Y) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE.” 
  
 “THIS
SECURITY AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS SECURITY TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION

  

 17 

 THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY. THE
HOLDER OF THIS SECURITY SHALL BE DEEMED BY THE ACCEPTANCE OF THIS SECURITY TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.” 
  
 Any stock certificate (or security issued in exchange or substitution therefor) as to which such restrictions on transfer shall have expired in accordance
with their terms or that has been transferred pursuant to a registration statement that has been declared effective under the Securities Act may, upon surrender of such stock certificate to the Registrar for exchange in accordance with the
provisions of this Section 2.1 and Section 2.15, be exchanged for a new stock certificate, of like tenor and aggregate number of shares, which shall not bear the Restricted Stock Legend required by this Section 2.1(e). 
  
 (f) Each Global Note, whether or not a Transfer Restricted Note, shall bear
the following legend: 
  
 “THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DEPOSITARY”), OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY,
THE TRUSTEE AND ANY AGENT THEREOF AS THE OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY 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 IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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.

  
 “TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, 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, AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.” 
  

 18 

 (g) The following book-entry provisions shall apply only to Global Notes deposited with the Notes
Custodian: 
  
 (i) Each Global Note initially
shall (x) be registered in the name of the Depositary for such Global Note or the nominee of such Depositary, (y) be delivered to the Notes Custodian and (z) bear legends as set forth in Section 2.1(d). 
  
 (ii) Except as provided herein, members of, or participants
in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Note held on their behalf by the Depositary or by the Notes Custodian or under such Global Note, and the Depositary may be treated by
the Company, the Trustee, the Notes Custodian and any agent of the Company or the Trustee as the absolute owner of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or
any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its Agent Members, the operation of customary practices of the
Depositary governing the exercise of the rights of a Beneficial Owner of an interest in any Global Note. 
  
 (iii) The registered Holder of a Global Note may grant proxies and otherwise authorize any Person, including Agent Members and Persons
that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Notes. 
  
 (iv) In connection with any transfer of a portion of the beneficial interest in a Global Note pursuant to Section 2.1(h) to Beneficial
Owners who are required to hold Definitive Notes, the Trustee shall reflect on its books and records the date and a decrease in the principal amount of such Global Note in an amount equal to the principal amount of the beneficial interest in the
Global Note to be transferred, and the Company shall execute, and the Trustee shall authenticate and deliver, one or more Definitive Notes of like tenor and amount. 
  
 (v) In connection with the transfer of an entire Global Note to Beneficial Owners pursuant to Section
2.1(h), such Global Note shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each Beneficial Owner identified by the Depositary in exchange for its
beneficial interest in such Global Note, an equal aggregate principal amount of Definitive Notes of authorized denominations. 
  
 (vi) Any Holder of a Global Note shall, by acceptance of such Global Note, agree that transfers of beneficial interests in such Global
Note may be effected only through a book-entry system maintained by (a) the Holder of such Global Note (or its agent) or (b) any Holder of a beneficial interest in such Global Note, and that ownership of a beneficial interest in such Global Note
shall be required to be reflected in a book entry. 
  

 19 

 (h) Except as provided below, owners of beneficial interests in Global Notes will not be entitled to
receive Definitive Notes. If required to do so pursuant to any applicable law or regulation, Beneficial Owners may obtain Definitive Notes in exchange for their beneficial interests in a Global Note upon written request in accordance with the
Depositary’s and the Registrar’s procedures. In addition, Definitive Notes shall be transferred to all Beneficial Owners in exchange for their beneficial interests in a Global Note if (i) the Depositary notifies the Company that it is
unwilling or unable to continue as depositary for such Global Note or the Depositary ceases to be a clearing agency registered under the Exchange Act, at a time when the Depositary is required to be so registered in order to act as Depositary, and
in each case a successor depositary is not appointed by the Company within 90 days of such notice or (ii) the Company, in its sole discretion, executes and delivers to the Trustee and Registrar an Officers’ Certificate stating that such Global
Note shall be so exchangeable or (iii) an Event of Default has occurred and is continuing and the Registrar has received a request from the Depositary. 
  
 In the event that the Definitive Notes are not issued to each such Beneficial Owner promptly after the Registrar has received a request from the Holder of
a Global Note to issue such Definitive Notes, the Company and each Guarantor expressly acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to Section 10.4 or 10.6 hereof, the right of any Beneficial Owner of Notes to
pursue such remedy with respect to the portion of the Global Note that represents such Beneficial Owner’s Notes as if such Definitive Notes had been issued. 
  
 (i) Any Definitive Note delivered in exchange for an interest in a Global Note pursuant to Section 2.1(g)(iv) or (v) shall,
except as otherwise provided by Section 2.6, bear the Restricted Note Legend applicable to the Definitive Note set forth in Section 2.1(d). 
  
 (j) In connection with the exchange of a portion of a Definitive Note for a beneficial interest in a Global Note, the Trustee shall cancel such Definitive
Note, and the Company shall execute, and the Trustee shall authenticate and deliver, to the transferring Holder a new Definitive Note representing the principal amount not so transferred. 
  
 SECTION 2.2. Execution and Authentication. An Officer shall sign the Notes for the Company, and Note Guarantee for
the Guarantors, by manual or facsimile signature. If an Officer whose signature is on a Note or a Note Guarantee no longer holds that office at the time the Trustee authenticates the Note, the Note shall be valid nevertheless. Each Note shall have
an executed Note Guarantee from each of the Guarantors endorsed thereon. 
  
 A Note shall not be valid until an authorized signatory of the Trustee manually authenticates the Note. The signature of the Trustee on a Note shall be conclusive evidence that such Note has been duly and validly
authenticated and issued under this Indenture. 
  
 At any time and
from time to time after the execution and delivery of this Indenture, the Trustee shall, upon the written direction or order of the Company, authenticate and make available for delivery Notes for original issue in an aggregate principal amount of up
to $230,000,000 upon a written order of the Company signed by an Officer of the Company (the “Company Order”). Such Company Order shall specify the amount of the Notes to be authenticated. 
  

 20 

 The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to the
Company to authenticate the Notes. Unless limited by the terms of such appointment, any such 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. 
  
 In case the Company pursuant to
Article IV shall be consolidated or merged with or into any other Person or shall convey, transfer, lease or otherwise dispose of its properties and assets substantially as an entirety to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company shall have been merged, or the Person which shall have received a conveyance, transfer, lease or other disposition as aforesaid, shall have executed an indenture supplemental hereto
with the Trustee pursuant to Article IV, any of the Notes authenticated or delivered prior to such consolidation, merger, conveyance, transfer, lease or other disposition may, from time to time, at the request of the successor Person, be exchanged
for other Notes executed in the name of the successor Person with such changes in phraseology and form as may be appropriate, but otherwise in substance of like tenor as the Notes surrendered for such exchange and of like principal amount; and the
Trustee, upon Company Order of the successor Person, shall authenticate and deliver Notes as specified in such order for the purpose of such exchange. If Notes shall at any time be authenticated and delivered in any new name of a successor Person
pursuant to this Section 2.2 in exchange or substitution for or upon registration of transfer of any Notes, such successor Person, at the option of the Holders but without expense to them, shall provide for the exchange of all Notes at the time
outstanding for Notes authenticated and delivered in such new name. 
  
 SECTION 2.3. Registrar, Conversion Agent and Paying Agent. The Trustee shall initially serve as the Registrar, Conversion Agent and Paying Agent for the Notes. The Registrar, the Conversion Agent and the Paying Agent shall each
maintain an office or agency in the Borough of Manhattan, The City of New York. The Registrar shall keep a register of the Notes and of their transfer and exchange (the “Note Register”). The Company may have one or more co-registrars and
one or more additional conversions agents and paying agents. The term Paying Agent includes any additional paying agents, the term Conversion Agent includes any additional conversion agents and the term Registrar includes any co-registrar. The
Company may appoint and change any Paying Agent, Conversion Agent or Registrar without prior notice to any Holder. 
  
 The Company shall enter into an appropriate agency agreement with any Registrar, Conversion Agent or Paying Agent not a party to this Indenture, which
shall incorporate the terms of the TIA. The agreement shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee in writing of the name and address of each such agent. If the Company fails to
maintain a Registrar, Conversion Agent or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 11.7. The Company or any of its domestically incorporated Subsidiaries may act as
Paying Agent, Conversion Agent or Registrar. 
  

 21 

 The Company may remove any Registrar, Conversion Agent or Paying Agent upon written notice to such
Registrar, Conversion Agent or Paying Agent and to the Trustee; provided, however, that no such removal shall become effective until (i) acceptance of any appointment by a successor as evidenced by an appropriate agreement entered into
by the Company and such successor Registrar, Conversion Agent or Paying Agent, as the case may be, and delivered to the Trustee or (ii) notification to the Trustee that the Trustee shall serve as Registrar, Conversion Agent or Paying Agent until the
appointment of a successor in accordance with clause (i) above. The Registrar, Conversion Agent or Paying Agent may resign at any time upon written notice to the Company and the Trustee. 
  
 SECTION 2.4. Paying Agent To Hold Money and Securities in Trust. Except as otherwise provided herein, on or prior to
10:00 a.m. (New York City time) on each due date of payment in respect of any Note, the Company shall deposit with the Paying Agent a sum of money (in immediately available funds) sufficient to make such payments when due. The Company shall require
each Paying Agent (other than the Trustee) to agree in writing that such Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by such Paying Agent for the payment of principal of, interest on, and other payments
in respect of the Notes, and shall notify the Trustee in writing of any default by the Company in making any such payment. If the Company or a Subsidiary acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a
separate trust fund for the benefit of the Holders of the Notes. The Company at any time may require a Paying Agent (other than the Trustee) to pay all money held by it to the Trustee and to account for any funds disbursed by such Paying Agent. Upon
complying with this Section 2.4, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money delivered to the Trustee. Upon any bankruptcy, reorganization or similar proceeding with respect to the
Company, the Trustee shall serve as Paying Agent for the Notes. 
  
 SECTION 2.5. Holder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders and shall otherwise comply with TIA § 312(a). If
the Trustee is not the Registrar or to the extent otherwise required under the TIA, the Company, on its own behalf, shall furnish to the Trustee, in writing at least seven Business Days before each Interest Payment Date and at such other times as
the Trustee may reasonably request in writing within 15 days, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders and the Company shall otherwise comply with TIA § 312(a).

  
 SECTION 2.6. Transfer and Exchange. 
  
 (a) The following provisions shall apply with respect to any proposed
transfer of a Note prior to the date which is two years after the later of the date of its original issue and the last date on which the Company or any Affiliate of the Company was the owner of such Notes (or any predecessor thereto) (the
“Resale Restriction Termination Date”): 
  
 (i) a transfer of a Note or a beneficial interest therein to a QIB shall be made upon receipt by the Trustee or its agent of a certificate substantially in the form of the Form of Certificate to be Delivered Upon Exchange or Registration of
Transfer of Securities set forth on the reverse of the Note that the transferee is purchasing the Note for its 
  

 22 

 
own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional
buyer” within the meaning of Rule 144A, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as it has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the transferor is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A; and 
  
 (ii) a transfer of a Note or a beneficial interest therein
to an IAI shall be made upon receipt by the Trustee or its agent of a certificate substantially in the form set forth in Section 2.7 from the proposed transferee and the delivery of an Opinion of Counsel, certification and/or other information
satisfactory to each of them. 
  
 (b) Upon the transfer, exchange
or replacement of Notes not bearing a Restricted Note Legend, the Registrar shall deliver Notes that do not bear a Restricted Note Legend. Upon the transfer, exchange or replacement of Notes bearing a Restricted Note Legend, the Registrar shall
deliver only Notes that bear such Restricted Note Legend unless (i) a Note is being transferred pursuant to an effective registration statement or (ii) there is delivered to the Registrar an Opinion of Counsel to the effect that neither such legend
nor the related restrictions on transfer are required in order to maintain compliance with the provisions of the Securities Act. 
  
 (c) The Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 2.1 or this Section 2.6 until
the Notes have matured and been paid in full. The Company shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable written notice to the
Registrar. 
  
 (d) The following obligations with respect to
transfers and exchanges of Notes shall apply: 
  
 (i) To permit registrations of transfers and exchanges, the Company shall, subject to the other terms and conditions of this Article II, execute (with executed Note Guarantees from each of the Guarantors endorsed thereon) and the Trustee
shall upon receipt of a Company Order, authenticate Definitive Notes and Global Notes at the Registrar’s request. 
  
 (ii) No service charge shall be made to a Holder for any registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any transfer tax, assessments or similar governmental charge payable in connection therewith (other than any such transfer taxes, assessments or similar governmental charges payable upon exchange or transfer pursuant to
Section 6.4, 7.1 or 9.5). 
  
 (iii) The Registrar
shall not be required to register the transfer of or exchange of any Note (A) for a period beginning at the opening of business 15 days before any selection of Notes for redemption or repurchase and ending at the close of business on the day notice
of such redemption or repurchase is deemed to have been given to all Holders of Notes to be so redeemed or repurchased or (B) selected for redemption or repurchase in whole or in part, except for the transfer of the unredeemed portion of any Note
being redeemed in part. 
  

 23 

 (iv) Except as provided herein, prior to the due presentation for registration of
transfer of any Note, the Company, the Guarantors, the Trustee, Paying Agent, the Conversion Agent or the Registrar may deem and treat the Person in whose name a Note is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest (including Liquidated Damages, if any) on such Note and for all other purposes whatsoever, whether or not such Note is overdue, and none of the Company, the Guarantors, the Trustee, the Paying Agent, the
Conversion Agent or the Registrar shall be affected by notice to the contrary. 
  
 (v) All Notes issued upon any transfer or exchange pursuant to the terms of this Indenture shall evidence the same debt and shall be
entitled to the same benefits under this Indenture and the Note Guarantees as the Notes surrendered upon such transfer or exchange. 
  
 SECTION 2.7. Form of Certificate To Be Delivered in Connection with Transfers to Institutional Accredited Investors. 
  
 [Date] 
  
 Saks Incorporated 
 c/o The Bank of New York
Trust Company, N.A. 
 505 North 20th Street 
 Suite 950 
 Birmingham, Alabama 35203

  
 Attention: Corporate Trust Office 
  
 Ladies and Gentlemen: 
  
 This certificate is delivered to request a transfer of
$                     principal amount of the 2.00% Convertible Senior Notes due March 15, 2024 (the “Notes”) of Saks Incorporated
(the “Company”). 
  
 Upon transfer, the Notes would be
registered in the name of the new beneficial owner as follows: 
  

			
		
	 Name:
	  	  

		
	 Address:
	  	  

		
	 Taxpayer ID Number:
	  	  

  
 The undersigned
represents and warrants to you that: 
  
 1. We
are an institutional accredited investor (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the “Securities Act”)) purchasing 
  

 24 

 
for our own account or for the account of such an institutional accredited investor at least $250,000 principal amount of the Notes, and we are acquiring the
Notes not with a view to, or for offer or sale in connection with, any distribution in violation of the Securities Act. We have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risk of our
investment in the Notes and we invest in or purchase securities similar to the Notes in the normal course of our business. We and any accounts for which we are acting are each able to bear the economic risk of the complete loss of our or its
investment. 
  
 2. We understand that neither the
Notes nor the Note Guarantees have been registered under the Securities Act and, unless so registered, may not be sold except as permitted in the following sentence. We agree on our own behalf and on behalf of any investor account for which we are
purchasing Notes to offer, sell or otherwise transfer such Notes prior to the date that is two years after the later of the date of original issue and the last date on which the Company or any affiliate of the Company was the owner of such Notes (or
any predecessor thereto) (the “Resale Restriction Termination Date”) only (a) to the Company, (b) pursuant to a registration statement which has been declared effective under the Securities Act, (c) in a transaction complying with the
requirements of Rule 144A under the Securities Act (“Rule 144A”), to a Person we reasonably believe is a qualified institutional buyer under Rule 144A (a “QIB”) that purchases for its own account or for the account of a QIB and
to whom notice is given that the transfer is being made in reliance on Rule 144A, (d) to an institutional accredited investor within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is purchasing for its own account or
for the account of such an institutional accredited investor, in each case in a minimum principal amount of Notes of $250,000 or (e) pursuant to an effective registration statement under the Securities Act, subject in each of the foregoing cases to
compliance with any applicable state securities laws. The foregoing restrictions on resale will not apply subsequent to the Resale Restriction Termination Date. If any resale or other transfer of the Notes is proposed to be made pursuant to clause
(d) above prior to the Resale Restriction Termination Date, the transferor shall deliver a letter from the transferee substantially in the form of this letter to the Company and the Trustee, which shall provide, among other things, that the
transferee is an institutional accredited investor (within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and that it is acquiring such Notes for investment purposes and not for distribution in violation of the Securities
Act. Each purchaser acknowledges that the Company and the Trustee reserve the right prior to any offer, sale or other transfer prior to the Resale Termination Date of the Notes pursuant to clauses (c), (d) or (e) above to require the delivery of an
opinion of counsel, certifications and/or other information satisfactory to the Company and the Trustee. 
  

			
	 TRANSFEREE:
	 	  

		
	 BY:
	 	  

  

 25 

 SECTION 2.8. Mutilated, Destroyed, Lost or Stolen Notes. If a mutilated Note is surrendered to the
Registrar or if the Holder of a Note claims that the Note has been lost, destroyed or wrongfully taken, subject to compliance with the provisions of the next sentence of this Section 2.8, the Company shall issue (with executed Note Guarantees from
each of the Guarantors endorsed thereon) and the Trustee, upon Company Order, shall authenticate a replacement Note if the requirements of Section 8-405 of the Uniform Commercial Code are met such that the Holder (a) notifies the Company and the
Trustee within a reasonable time after such Holder has notice of such loss, destruction or wrongful taking and the Registrar has not registered a transfer prior to receiving such notification, (b) makes such request to the Company prior to the
Company having notice that the Note has been acquired by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code (a “protected purchaser”) and (c) satisfies any other reasonable requirements of the Company and the
Trustee. Such Holder shall furnish an indemnity bond sufficient in the judgment of the Company, the Guarantors and the Trustee to protect the Company, the Guarantors, the Trustee, the Paying Agent, the Conversion Agent and the Registrar from any
loss which any of them may suffer if a Note (and the accompanying Note Guarantees) is replaced, then, in the absence of notice to the Company, the Guarantors, the Trustee, Paying Agent, Conversion Agent or Registrar, that such Note has been acquired
by a protected purchaser, the Company shall execute (with executed Note Guarantees from each of the Guarantors endorsed thereon) and upon Company Order the Trustee shall authenticate and deliver, in exchange for any such mutilated Note or in lieu of
any such destroyed, lost or stolen Note, a new Note of like tenor and principal amount, bearing a number not contemporaneously outstanding. 
  
 In case any such mutilated, destroyed, lost or stolen Note has become or is about to become due and payable, the Company in its discretion, but subject to
any conversion rights, may, instead of issuing a new Note, pay such Note upon satisfaction of the conditions set forth in the preceding paragraph. 
  
 Upon the issuance of any new Note and new Note Guarantee under this Section, the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other expenses (including attorneys’ fees and expenses and the fees and expenses of the Trustee) in connection therewith. 
  
 Every new Note and new Note Guarantee issued pursuant to this Section in lieu
of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Company, the Guarantors and any other obligor upon the Notes, whether or not the mutilated, destroyed, lost or stolen Note or Note
Guarantee shall be at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Notes or Note Guarantees duly issued hereunder. 
  
 The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes. 
  
  

 26 

 SECTION 2.9. Outstanding Notes. Notes outstanding at any time (“Outstanding Notes”) are
all Notes authenticated by the Trustee except for: 
  
 (a) Notes
theretofore canceled by the Trustee or delivered to the Trustee for cancellation: 
  
 (b) Notes for the payment or redemption of which money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust
by the Company or the Guarantors (if the Company or any of the Guarantors shall act as a Paying Agent) for the Holders of such Notes, provided that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor reasonably satisfactory to the Trustee has been made; 
  
 (c) Notes which have been paid pursuant to Section 2.8 or in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to this Indenture, other than any such Notes in respect of which
there shall have been presented to the Trustee proof satisfactory to it that such Notes are held by a bona fide purchaser in whose hands such Notes are valid obligations of the Company; and 
  
 (d) Notes converted into Common Stock pursuant to Article IX; 
  
 provided, however that in determining whether the Holders of the requisite
principal amount of Outstanding Notes are present at a meeting of Holders of Notes for quorum purposes or have given, made or taken any request, demand, authorization, direction, notice, consent or waiver or other action hereunder, Notes owned by
the Company or any Affiliate of the Company shall be disregarded and deemed not to be Outstanding Notes, except that, in determining whether the Trustee shall be protected in relying upon any such determination as to the presence of a quorum or upon
any such request, demand, authorization, direction, notice, consent or waiver or other action, only Notes which a Responsible Officer of the Trustee has been notified in writing to be so owned shall be so disregarded. Notes so owned which have been
pledged in good faith may be regarded as Outstanding Notes if the pledgee is not the Company or any Affiliate of the Company, and the Trustee shall be protected in relying upon an Officers’ Certificate to such effect. 
  
 SECTION 2.10. Temporary Notes. In the event that Definitive Notes are
to be issued under the terms of this Indenture, until such Definitive Notes are ready for delivery, the Company may prepare (with executed Note Guarantees from each of the Guarantors endorsed thereon) and, upon receipt of a Company Order, the
Trustee shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of Definitive Notes but may have variations that the Company considers appropriate for temporary Notes. Without unreasonable delay, the Company shall
prepare (with executed Note Guarantees from each of the Guarantors endorsed thereon) and the Trustee shall authenticate Definitive Notes. After the preparation of Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at any office or agency maintained by the Company for that purpose and such exchange shall be without charge to the Holder. Upon surrender for cancellation of any one or more temporary Notes, the Company shall
execute (with executed Note Guarantees from each of the Guarantors endorsed thereon), and the Trustee shall authenticate and make available for delivery in exchange therefor, one or more Definitive Notes representing an equal principal amount of
Notes. Until so exchanged, the Holder of temporary Notes shall in all respects be entitled to the same benefits under this Indenture as a Holder of Definitive Notes. 
  

 27 

 SECTION 2.11. Cancellation. The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else shall cancel and return to the Company all Notes surrendered
for registration of transfer, exchange, payment, redemption, purchase, conversion or cancellation. All Notes so delivered to the Trustee shall be cancelled promptly by the Trustee. The Company may not issue new Notes to replace Notes it has paid or
delivered to the Trustee for cancellation. 
  
 At such time as all
beneficial interests in a Global Note have either been exchanged for Definitive Notes, transferred, paid, redeemed, repurchased, converted or canceled, such Global Note shall be returned by the Depositary or the Notes Custodian to the Trustee for
cancellation or retained and canceled by the Trustee. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for Definitive Notes, transferred in exchange for an interest in another Global Note, paid,
redeemed, repurchased, converted or canceled, the principal amount of Notes represented by such Global Note shall be reduced and an adjustment shall be made on the Global Note and on the books and records of the Trustee (if it is then the Notes
Custodian for such Global Note) with respect to such Global Note, by the Trustee or the Notes Custodian, to reflect such reduction. 
  
 SECTION 2.12. Payment of Interest; Defaulted Interest. Interest on any Note which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name such Note (or one or more predecessor Notes) is registered at the close of business on the Regular Record Date for such interest at the office or agency of the Company maintained for
such purpose pursuant to Section 2.3. 
  
 Any interest on any Note
which is payable, but is not paid when the same becomes due and payable and such nonpayment continues for a period of 30 days shall forthwith cease to be payable to the Holder on the Regular Record Date, and such defaulted interest and (to the
extent lawful) interest on such defaulted interest at the rate borne by the Notes (such defaulted interest and interest thereon herein collectively called “Defaulted Interest”) shall be paid by the Company or any of the Guarantors, at
their election in each case, as provided in clause (a) or (b) below: 
  
 (a) The Company or any of the Guarantors may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective predecessor Notes) are registered at the close of business on a Special Record Date
(as defined below) for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company or such Guarantor shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and
the date (not less than 30 days after such notice) of the proposed payment (the “Special Interest Payment Date”), and the Company or such Guarantor shall make arrangements reasonably satisfactory to the Trustee to deposit with the Trustee
an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest on or prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a record date (the “Special Record Date”) for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the
Special Interest Payment Date and not less than 10 days after the receipt by the Trustee of the 
  

 28 

 
notice of the proposed payment. The Trustee shall promptly notify the Company or such Guarantor of such Special Record Date, and in the name and at the
expense of the Company or such Guarantor, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date and Special Interest Payment Date therefor to be given in the manner provided for in Section 15.2, not less
than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date and Special Interest Payment Date therefor having been so given, such Defaulted Interest shall be paid on the
Special Interest Payment Date to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (b).

  
 (b) The Company or any Guarantor may make payment of any
Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company or such
Guarantor to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 
  
 Subject to the foregoing provisions of this Section, each Note delivered under this Indenture upon registration of transfer of, or in exchange for, or in
lieu of any other Note shall carry the rights to interest accrued and unpaid which were carried by such other Note. 
  
 SECTION 2.13. Computation of Interest. Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months.

  
 SECTION 2.14. CUSIP Numbers. The Company in issuing the
Notes and Common Stock upon conversion of the Notes may use CUSIP numbers (if then generally in use). The Trustee shall not be responsible for the use of CUSIP numbers, and the Trustee makes no representation as to their correctness as printed on
any Note, certificate of Common Stock or notice to Holders and that reliance may be placed only on the other identification numbers printed on the Notes, and any redemption shall not be affected by any defect in or omission of such CUSIP numbers.
The Company shall promptly notify the Trustee in writing of any change in the CUSIP numbers. 
  
 SECTION 2.15. Issuance, Transfer and Exchange of Common Stock Issuable Upon Conversion of the Notes. 
  
 (a) Shares of Common Stock to be issued upon conversion of Notes prior to the effectiveness of a Shelf Registration Statement shall be physically
delivered in certificated form to the Holders converting such Notes and the certificate representing such shares of Common Stock shall bear the Restricted Stock Legend unless removed in accordance with Section 2.1(e). 
  
 (b) If (i) shares of Common Stock to be issued upon conversion of Notes prior
to the effectiveness of a Shelf Registration Statement are to be registered in a name other than that of the Holder of such Notes or (ii) shares of Common Stock represented by a certificate bearing the Restricted Stock Legend are transferred
subsequently by such Holder, then, unless 
  

 29 

 
the Shelf Registration Statement has become effective and such shares are being transferred pursuant to the Shelf Registration Statement, the Holder must
deliver to the transfer agent for the Common Stock and to the Company a certificate in substantially the form of Exhibit B as to compliance with the restrictions on transfer applicable to such shares of Common Stock and neither the transfer agent
nor the registrar for the Common Stock shall be required to register any transfer of such Common Stock not so accompanied by a properly completed certificate. 
  

(c) Except in connection with a Shelf Registration Statement, if certificates representing shares of Common Stock are issued upon the registration of
transfer, exchange or replacement of any other certificate representing shares of Common Stock bearing the Restricted Stock Legend, or if a request is made to remove such Restricted Stock Legend from certificates representing shares of Common Stock,
the certificates so issued shall bear the Restricted Stock Legend, or the Restricted Stock Legend shall not be removed, as the case may be, unless there is delivered to the Company such reasonably satisfactory evidence, which, in the case of a
transfer made pursuant to Rule 144 under the Securities Act, may include an Opinion of Counsel, as may be reasonably required by the Company, that neither the legend nor the restrictions on transfer set forth therein are required to ensure that
transfers thereof comply with the provisions of Rule 144A or Rule 144 under the Securities Act and that such shares of Common Stock are securities that are not “restricted” within the meaning of Rule 144 under the Securities Act. Upon
provision to the Company of such reasonably satisfactory evidence, the Company shall cause the transfer agent for the Common Stock to countersign and deliver certificates representing shares of Common Stock that do not bear the Restricted Stock
Legend. 
  
 SECTION 2.16. Calculations in Respect of the
Notes. The Company shall be responsible for making all calculations called for under the Notes. These calculations include, but are not limited to, determinations of the Trading Prices of the Notes and the Closing Sale Price of the Common Stock,
any accrued interest and Liquidated Damages, if any, payable on the Notes and the Conversion Rate of the Notes. The Company shall make these calculations in good faith and, absent manifest error, such calculations will be final and binding on
Holders of the Note. The Company shall provide to the Trustee a schedule of its calculations, and the Trustee, subject to Sections 11.1 and 11.2, shall be entitled to rely upon the accuracy of such calculations without independent verification. The
Trustee shall forward the Company’s calculations to any Holder of the Notes upon the request of such Holder. 
  
 ARTICLE III 
  
 COVENANTS 
  
 SECTION 3.1. Payment of
Notes. The Company shall promptly pay the principal of and interest and Liquidated Damages, if any, on the Notes on the dates and in the manner provided in the Notes and in this Indenture. Principal, interest and Liquidated Damages, if any,
shall be considered paid on the date due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture money sufficient to pay all principal, interest and Liquidated Damages, if any, then due and the Trustee or the Paying
Agent, as the case may be, is not prohibited from paying such money to the Holders on that date pursuant to the terms of this Indenture. 
  

 30 

 The Company shall pay interest on overdue principal at the rate specified therefor in the Notes, and it
shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
  
 Notwithstanding anything to the contrary contained in this Indenture, the Company may, to the extent it is required to do so by law, deduct or withhold income or other taxes imposed by the United States of America or
any state or local government from principal or interest (including Liquidated Damages, if any) payments hereunder. 
  
 SECTION 3.2. Maintenance of Office or Agency. The Company will maintain in the Borough of Manhattan in the City of New York, as required by Section
2.3, an office or agency where the Notes may be presented or surrendered for payment, where, if applicable, the Notes may be surrendered for registration of transfer or exchange or conversion and where notices and demands to or upon the Company or
any of the Guarantors in respect of the Notes, the Note Guarantees and this Indenture may be served. The office of the Trustee, at 101 Barclay Street, Floor 8W, New York, New York 10286, Attention: Corporate Trust Office, shall be such office or
agency of the Company for payment, unless the Company shall designate and maintain some other office or agency for one or more of such purposes. The Company will give prompt written notice to the Trustee of any change in the location of any such
office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands. 
  
 The Company may also from time to time designate one or more other offices or agencies (in or outside of the City of New
York) where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind any such designation; provided, however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in 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 any change in the location of any such other
office or agency. 
  
 SECTION 3.3. Money for Note Payments To
Be Held in Trust. If the Company shall at any time act as its Paying Agent, it will, on or before each due date of any payment in respect of the Notes, segregate and hold in trust for the benefit of the Persons entitled thereto a sum of money in
same day funds (or New York Clearing House funds if such deposit is made prior to the date that such deposit is required to be made), sufficient to make such payments when so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee in writing of its action or failure to so act. 
  
 Whenever the Company shall have one or more Paying Agents for the Notes, it will, on or before each due date of any payment in respect of the Notes,
deposit with any Paying Agent a sum of money in same day funds (or New York Clearing House funds if such deposit is made) prior to the date on which such deposit is required to be made, that shall be available to the Trustee by 11:00 a.m. New York
City time on such due date, sufficient to pay the amount so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such payment, and (unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee in writing of such action or any failure to so act. 
  

 31 

 The Company will cause each Paying Agent (other than the Trustee) to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section 3.3, that such Paying Agent will: 
  
 (a) hold all money held by it for the making of any payments in respect of the Notes in trust for the benefit of the Persons entitled thereto until such
money shall be paid to such Persons or otherwise disposed of as herein provided; 
  
 (b) give the Trustee prompt written notice of any Default by the Company (or any other obligor upon the Notes) in the making of any payment in respect of the Notes; and 
  
 (c) at any time during the continuance of any such Default, upon the written
request of the Trustee, forthwith pay to the Trustee all money so held in trust by such Paying Agent. 
  
 The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company
Order direct any Paying Agent to pay, to the Trustee all money held in trust by the Company or such Paying Agent, such money to be held by the Trustee upon the same trusts as those upon which such money were held by the Company or such Paying Agent;
and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
  
 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of any amounts due in respect of the Notes
and remaining unclaimed for two years after such payment has become due and payable shall be paid to the Company on Company Order, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as
an unsecured general creditor, look only to the Company and each of the Guarantors 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 and each of the
Guarantors as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment to the Company, shall at the expense of the Company or any of the
Guarantors cause to be published once, in a leading daily newspaper (if practicable, The Wall Street Journal (Eastern Edition)) printed in the English language and of general circulation in New York City, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication nor shall it be later than two years after such payment shall have become due and payable, any unclaimed balance of such money
then remaining will be repaid to the Company. 
  
 SECTION 3.4.
Corporate Existence. Subject to Article IV, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and the corporate rights (charter and statutory) licenses and
franchises of the Company; provided, however, that the Company shall not be required to preserve any such existence, right, license or franchise 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 that the loss thereof is not, and will not be, disadvantageous in any material respect to the Holders. 
  

 32 

 SECTION 3.5. Further Instruments and Acts. Upon request of the Trustee, the Company and each of
the Guarantors will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 SECTION 3.6. Liquidated Damages Notices. In the event that the Company
is required to pay liquidated damages to Holders of Notes pursuant to the Registration Rights Agreement (“Liquidated Damages”), the Company will provide a direction or order in the form of a written notice (“Liquidated Damages
Notice”) to the Trustee of its obligation to pay Liquidated Damages no later than five Business Days prior to the proposed payment date set for the amount of Liquidated Damages, and the Liquidated Damages Notice shall set forth the amount of
Liquidated Damages to be paid by the Company on such Payment Date and direct the Trustee to make payment. 
  
 SECTION 3.7. SEC Reports. The Company will file with the Commission (so long as the Commission will accept any such filings) and the Trustee
the annual reports, quarterly reports and other documents required to be filed with the Commission pursuant to Sections 13 and 15 of the Exchange Act, whether or not the Company has a class of securities registered under the Exchange Act. The
Company will also comply with the other provisions of Section 314(a) of the Trust Indenture Act. 
  
 SECTION 3.8. Compliance Certificates. The Company and the Guarantors will deliver to the Trustee, within 120 days after the end of each of
their fiscal years ending after the date hereof, a written statement signed by the chairman or a chief executive officer, the principal financial officer, principal accounting officer or Treasurer of the Company or such Guarantor (as applicable),
stating (i) that a review of the activities of the Company or such Guarantor (as applicable) during the preceding fiscal year has been made under the supervision of the signing officer with a view to determining whether the Company or such Guarantor
(as applicable) has kept, observed, performed and fulfilled its obligations under this Indenture and (ii) that, to the knowledge of each officer signing such certificate, the Company or such Guarantor (as applicable) has kept, observed, performed
and fulfilled each and every covenant and condition contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions, conditions and covenants hereof (or, if a Default shall have occurred, describing
all such Defaults of which such officers may have knowledge, their status and what action the Company or such Guarantor (as applicable) is taking or proposes to take with respect thereto). When any Default has occurred and is continuing, or if the
Trustee or any Holder or the trustee for or the holder of any other evidence of Indebtedness of the Company or any Subsidiary gives any notice or takes any other action with respect to a claimed default (other than with respect to Indebtedness
(other than Indebtedness evidenced by the Notes) in the principal amount of less than $50,000,000), the Company will promptly deliver to the Trustee by registered or certified mail or by telegram, or facsimile transmission followed by hard copy by
registered or certified mail an Officer’s Certificate specifying such event, notice or other action no later than five Business Days after the Company becomes aware of such occurrence and what action the Company is taking or proposes to take
with respect thereto. 
  

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 SECTION 3.9. Rule 144A Information Requirement. Within the period prior to the expiration of the
holding period applicable to sales of the Notes under Rule 144(k) under the Securities Act (or any successor provision), the Company and each Guarantor covenants and agrees that it shall, during any period in which it is not subject to Section 13 or
15(d) under the Exchange Act, upon the request of any Holder or beneficial holder of the Notes or any Common Stock issued upon conversion thereof make available to such Holder or beneficial holder of Notes or any Common Stock issued upon conversion
thereof in connection with any sale thereof and any prospective purchaser of Notes or such Common Stock designated by such Holder or beneficial holder, the information required pursuant to Rule 144A(d)(4) under the Securities Act and they will take
such further action as any Holder or beneficial holder of such Notes or such Common Stock may reasonably request, all to the extent required from time to time to enable such Holder or beneficial holder to sell its Notes or Common Stock without
registration under the Securities Act within the limitation of the exemption provided by Rule 144A, as such Rule may be amended from time to time. Upon the request of any Holder or any beneficial holder of the Notes or such Common Stock, the Company
will deliver to such Holder a written statement as to whether such Holder and prospective purchaser have complied with such requirements 
  
 SECTION 3.10. Stay, Extension and Usury Laws. The Company and each Guarantor covenants (to the extent that it may lawfully do so)
that it shall 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 or other law which would prohibit or forgive the Company or any Guarantor from paying all or
any portion of the principal of, interest or Liquidated Damages, if any, on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture, and the
Company and each Guarantor (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenant 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 had been enacted. 
  
 SECTION 3.11. Notice of Default. In the event that any Default that could mature into an Event of Default under Section 10.1(c) hereof shall
occur, the Company or any of the Guarantors shall give written notice of such Default to the Trustee no later than five Business Days after the Company becomes aware of the occurrence of such Default. 
  
 SECTION 3.12. Note Guarantees. Each of the Guarantors
and the Company will, and the Company will cause each of the Guarantors to, ensure at all times that, unless otherwise permitted by this Indenture, each Note Guarantee will remain in full force and effect and shall not be subordinated by written
agreement in right of payment to any Indebtedness or other obligations of the Guarantors, unless required by applicable law. 
  

 34 

 SECTION 3.13. Restrictions on Liens. The Company will not, and will not permit any Subsidiary to
issue, assume or guarantee any Indebtedness secured by any Lien upon any Operating Property or Operating Asset of the Company or any Subsidiary, whether such property or assets are now owned or hereafter acquired, without in any such case
effectively providing that the Notes (together with, if the Company shall so determine, any other Indebtedness ranking equally with the Notes) shall be secured at least equally and ratably with such Indebtedness, except that the foregoing
restrictions shall not apply to: 
  
 (a) (i) a purchase money
Lien on such property (including security for inventory financing in the ordinary course of business and vendors’rights under purchase contracts under an agreement whereby title is retained for the purpose of securing the purchase price
thereof) given simultaneously with or within 180 days after the later of (1) the acquisition or completion of construction or completion of substantial reconstruction, renovation, remodeling, expansion or improvement (each a “substantial
improvement”) of such property, or (2) the date such property was placed in operation after the acquisition or completion of any such construction or substantial improvement, or (ii) the acquisition of property not theretofore owned by the
Company or such Subsidiary subject to an existing Lien securing Indebtedness (whether or not assumed), including in each case, Indebtedness incurred for reimbursement of funds previously expended for any construction or substantial improvement,
provided, however, that in each case (x) such Lien is limited to any or all of (1) such acquired or constructed property or substantial improvement (including accretions thereto), (2) the real property on which any construction or substantial
improvement occurs, or (3) with respect to distribution centers, any equipment used directly in the operation of, or the business conducted on, the real property on which any construction or substantial improvement occurs, and (y) the total amount
of the Indebtedness secured by such Lien, together with all other Indebtedness to Persons other than the Company or a Subsidiary secured by Liens on such property, shall not exceed the lesser of (1) the total cost of such property, including any
such construction or substantial improvement, to the Company or a Subsidiary, and (2) the fair market value thereof immediately following the acquisition, construction or substantial improvement thereof by the Company or a Subsidiary as determined
by the Company’s Board of Directors or a member of the Company’s senior management in good faith; 
  
 (b) a Lien on real property of the Company or a Subsidiary or, with respect to distribution centers, on equipment used directly in the operation of, or
the business conducted on, such real property, which Lien is the sole security for Indebtedness and (x) is incurred within three years after the latest of (1) the date of issuance of the Notes under this Indenture, (2) the acquisition of the real
property or equipment or (3) the completion of construction or substantial improvement on such real property, (y) is incurred for the purpose of reimbursing the Company or such Subsidiary, as the case may be, for the cost of acquisition and/or the
cost of improvement of such real property or equipment and (z) the amount of which does not exceed the lesser of the aggregate cost of such real property, improvements and equipment and the fair market value thereof, as determined by the
Company’s Board of Directors or a member of the Company’s senior management in good faith; 
  
 (c) (i) Liens on the Operating Property of the Company or any of its Subsidiaries securing (1) nondelinquent performance of bids or contracts (other than
for borrowed money, obtaining of advances or credit or the securing of debt), (2) contingent obligations on surety and appeal bonds and (3) other nondelinquent obligations of a like nature, in each case, incurred in the ordinary course of business,
(ii) Liens arising solely by virtue of any statutory or common law provision relating to bankers’ liens, rights of set-off or similar rights and remedies as to deposit account or other funds, provided that such deposit account is not a
dedicated cash collateral account and is not subject to restrictions against access by the Company in excess of those set forth by regulations promulgated by the Federal Reserve Board and such deposit account is not intended by the Company or any
Subsidiary to provide collateral to the depository institution, (iii) pledges or deposits under worker’s compensation laws, unemployment insurance laws or similar legislation, (iv) statutory and tax Liens for sums not yet due or delinquent or

  

 35 

 
which are being contested or appealed in good faith by appropriate proceedings and (v) Liens arising solely by operation of law and in the ordinary course of
business, such as mechanics’, materialmen’s, warehousemen’s and carriers’ Liens and Liens of landlords or of mortgages of landlords, on fixtures and Operating Assets located on premises leased in the ordinary course of business;

  
 (d) Liens (i) existing on the date of this Indenture, or (ii)
on assets of a Subsidiary existing on the date it became a Subsidiary; 
  
 (e) Liens in favor of the Company or a Subsidiary; 
  
 (f) Liens securing only the Indebtedness issued under this Indenture; and 
  
 (g) Liens to secure Indebtedness incurred to extend, renew, refinance or replace Indebtedness secured by any Liens referred to in the foregoing clauses (a) to (f), provided, however, that the principal amount of the
extending, renewal, refinancing or replacement Indebtedness does not exceed the principal amount of Indebtedness so extended, renewed, refinanced or replaced, plus transaction costs and fees, and that any such Lien applies only to any part or all of
the same property or assets that were subject to the prior permitted Lien (and, in the case of real property, improvements thereon). 
  
 SECTION 3.14. Restrictions on Sale and Leaseback Transactions. Without equally and ratably securing the Notes (together with, if the Company shall
so determine, any other Indebtedness ranking equally with the Notes), the Company will not, nor will it permit any Subsidiary to, enter into any arrangement with any Person providing for the leasing by the Company or any Subsidiary of any Operating
Property or Operating Asset that has been or is to be sold or transferred by the Company or such Subsidiary to such Person with the intention of taking back a lease of such property (a “Sale and Leaseback Transaction”) unless the terms of
such sale or transfer have been determined by the Company’s Board of Directors, in the case of any sale or transfer involving proceeds in excess of $25 million, to be fair and arms’-length and (i) within 365 days after the receipt of the
proceeds of such sale or transfer, the Company or any Subsidiary applies an amount equal to the greater of the net proceeds of such sale or transfer or the fair value of such Operating Property or Operating Asset at the time of such sale or transfer
to (A) the prepayment or retirement (other than any mandatory prepayment or retirement) of Senior Funded Debt of the Company or a Subsidiary, or (B) to the acquisition, construction, development or improvement of Operating Assets or Operating
Properties, or (ii) the Company or such Subsidiary would be entitled, at the effective date of such sale or transfer, to incur Indebtedness secured by a Lien on such Operating Property or Operating Assets, in an amount at least equal to the
Attributable Debt in respect thereof, without equally and ratably securing the Notes pursuant to Section 10.11. The foregoing restriction will not apply to (w) any Sale and Leaseback Transaction for a term of not more than three years including
renewals, (x) any Sale and Leaseback Transaction with respect to Operating Property (and, with respect to distribution centers, equipment used directly in the operation of, or the business conducted on, such Operating Property) if a binding
commitment with respect thereto is entered into within three years after the later of (1) the date of issuance of the Notes under this Indenture or (2) the date such Operating Property was acquired (as the term “acquired” is used in the
definition of Operating Property), (y) any Sale and Leaseback Transaction with respect to Operating Assets if a binding commitment 
  

 36 

 
with respect thereto is entered into within 180 days after the later of the date such property was acquired and, if applicable, the date such property was
first placed in operation, or (z) any Sale and Leaseback Transaction between the Company and a Subsidiary or between Subsidiaries provided that the lessor shall be the Company or a Subsidiary. 
  
 SECTION 3.15. Additional Guarantors. The Company will cause each of
its Subsidiaries that becomes a guarantor or obligor in respect of the Credit Facilities following the Issue Date to execute and deliver a supplemental indenture pursuant to which it will become a Guarantor under this Indenture. 
  
 SECTION 3.16. Exempted Debts. Notwithstanding the restrictions in this
Indenture contained in Section 3.13 and Section 3.14, the Company or its Subsidiaries may, in addition to amounts permitted under such restrictions, issue, assume or guarantee Indebtedness secured by Liens, or enter into Sale and Leaseback
Transactions, provided, however, that, after giving effect thereto, the aggregate outstanding amount of all such Indebtedness secured by Liens plus Attributable Debt resulting from such Sale and Leaseback Transactions (collectively, the
“Exempted Debt”) does not exceed 17.5% of Consolidated Net Tangible Assets at the time such Lien is granted or at the time such Sale and Leaseback Transaction is entered into. 
  
 ARTICLE IV 
  
 SUCCESSOR CORPORATION 
  
 SECTION 4.1. Merger and Consolidation. The Company may, without the consent of the Holders of the Notes, consolidate with or merge with or into any
other corporation, or convey, transfer or lease its properties and assets substantially as an entirety to any Person, provided, however, that in any such case: 
  

(a) the successor corporation (the “Successor Corporation”) shall be the Company or a domestic corporation and such corporation (if other
than the Company) shall assume by a supplemental indenture the Company’s obligations under this Indenture and the Notes; 
  
 (b) immediately after such transaction, no Event of Default shall have occurred and be continuing; and 
  
 (c) if, as a result of any such merger or consolidation, or such conveyance,
transfer or lease, an Operating Property or an Operating Asset of the Company or a Subsidiary would become subject to a Lien which would not be permitted under Section 3.13 or Section 3.16, the Notes shall be secured, equally and ratably with (or
prior to) all Indebtedness so secured. 
  
 Upon compliance with
these provisions by a successor corporation, the Company (except in the case of a lease) shall be relieved of its obligations under this Indenture and the Notes. 
  

 37 

 For purposes of this Article IV, the sale, lease, conveyance, assignment, transfer, or other disposition
of all or substantially all of the properties and assets of one or more Subsidiaries of the Company, which properties and assets, if held by the Company instead of such Subsidiaries, would constitute all or substantially all of the properties and
assets of the Company on a consolidated basis, shall be deemed to be the transfer of all or substantially all of the properties and assets of the Company. 
  
 SECTION 4.2. Successor Corporation Substituted. Upon any consolidation of the Company with, or merger of the Company into, any other Person or any
conveyance, transfer or lease of all or substantially all the properties and assets of the Company in accordance with Section 4.1, the Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if the Successor Company had been named as the Company herein, and thereafter, except in the case of a lease of all or substantially all of its assets, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Notes. 
  
 ARTICLE V 
  
 REDEMPTION OF NOTES

  
 SECTION 5.1. Optional Redemption. On or after March
21, 2011, the Notes may be redeemed for cash, as a whole or from time to time in part, subject to the conditions specified in the form of Note set forth in Exhibit A hereto, which is hereby incorporated by reference and made a part of this
Indenture, in an amount equal to the Redemption Price. 
  
 SECTION
5.2. Applicability of Article. Redemption of Notes at the election of the Company or otherwise, as permitted or required by any provision of this Indenture or the Notes, shall be made in accordance with such provision and this Article.

  
 SECTION 5.3. Election to Redeem; Notice to Trustee. The
election of the Company to redeem any Notes pursuant to Section 5.1 shall be evidenced by a Board Resolution. In case of any redemption at the election of the Company, the Company shall, not later than the earlier of the date that is 35 days prior
to the Redemption Date fixed by the Company and the date on which notice is given to the Holders (except as provided in Section 5.5 or unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Notes to be redeemed, deliver to the Trustee such documentation and records as shall enable the Trustee to select the Notes to be redeemed pursuant to Section 5.4 and direct the Trustee to redeem the Notes in accordance with
the Board Resolution. Any such notice may be canceled at any time prior to notice of such redemption being mailed to any Holder and shall thereby be void and of no effect. 
  
 SECTION 5.4. Selection by Trustee of Notes To Be Redeemed. If less than all the Notes are to be redeemed at any time
pursuant to an optional redemption, the particular Notes to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the outstanding Notes not previously called for redemption, in compliance with the

  

 38 

 requirements of the principal securities exchange, if any, on which such Notes are listed, or, if such Notes are not so
listed, on a pro rata basis, by lot or by such other method as the Trustee shall deem fair and appropriate (and in such manner as complies with applicable legal requirements) and which may provide for the selection for redemption of
portions of the principal of the Notes; provided, however, that Notes selected for partial redemption shall be in denominations of $1,000 and integral multiples thereof. 
  
 The Trustee shall promptly notify the Company in writing of the Notes selected for redemption and, in the case of any Notes
selected for partial redemption, the method it has chosen for the selection of Notes and the principal amount thereof to be redeemed and upon the Company’s written approval of such selection, the Trustee shall redeem the selected Notes.

  
 For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to redemption of Notes shall relate, in the case of any Note redeemed or to be redeemed only in part, to the portion of the principal amount of such Note which has been or is to be redeemed. 
  
 SECTION 5.5. Notice of Redemption. Notice of redemption shall be given
by first class mail not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Notes to be redeemed. At the Company’s written request, the Trustee shall give notice of redemption in the Company’s name and at the
Company’s expense; provided, however, that the Company shall deliver to the Trustee, at least 35 days prior to the Redemption Date (unless a shorter notice period shall be satisfactory to the Trustee) a Company Order requesting
that the Trustee give such notice at the Company’s expense and setting forth the information to be stated in such notice as provided in the following items: 
  
 (a) the Redemption Date, 
  
 (b) the Redemption Price and the amount of accrued interest to but excluding the Redemption Date payable as provided in Section 5.7, if any, 

 
 (c) the then existing Conversion Rate, 
  
 (d) if less than all outstanding Notes are to be redeemed, the aggregate
principal amount of Notes to be redeemed and the aggregate principal amount of Notes to be outstanding after such partial redemption, 
  
 (e) in case any Note is to be redeemed in part only, the notice that relates to such Note shall state that on and after the Redemption Date, upon
surrender of such Note, the Holder will receive, without charge, a new Note or Notes of authorized denominations for the principal amount thereof remaining unredeemed, 
  
 (f) that on the Redemption Date, 100% of the principal amount of the Notes to be redeemed (and accrued interest, if any, to
but excluding the Redemption Date payable as provided in Section 5.7) will become due and payable upon each such Note, or the portion thereof, to be redeemed, and, unless the Company defaults in making the redemption payment, that interest (and
Liquidated Damages, if any) on Notes called for redemption (or the portion thereof) will cease to accrue on and after said date, 
  

 39 

 (g) the place or places where such Notes are to be surrendered for payment of the Redemption Price and
accrued interest, 
  
 (h) the name and address of the Paying Agent
and the Conversion Agent, 
  
 (i) that Notes called for redemption
must be surrendered to the Paying Agent to collect the Redemption Price, 
  
 (j) the CUSIP number of the Notes to be redeemed, provided that no representation is made as to the accuracy or correctness of the CUSIP number, if any, listed in such notice or printed on the Notes, and any
redemption shall not be affected by any defect in such CUSIP numbers, 
  
 (k) the paragraph of the Notes pursuant to which the Notes are to be redeemed, 
  
 (l) that the Notes called for redemption may be converted at any time before the close of business on the Business Day prior to the Redemption Date, 
  
 (m) whether the Company intends to satisfy its obligation by delivering Common Stock, cash or a combination of cash and
Common Stock (and in such case, the dollar amount per Note to be satisfied in cash) in the event that Holders elect to convert their Notes in connection with the redemption, and 
  
 (n) the Holders who wish to convert Notes must comply with the procedures in Article IX and paragraph 10 of the Notes.

  
 If the Company exercises its right to redeem the Notes, in
whole or in part, the Company shall disseminate a press release containing information regarding the redemption, through a public medium that is customary for such press releases or publish the information on its website or through such other public
medium as the Company may use at that time. 
  
 SECTION 5.6.
Deposit of Redemption Price. On or before 10:00 a.m. on any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in
Section 2.4) an amount of money sufficient to pay the Redemption Price of the Notes which are to be redeemed on that date, other than Notes or portions of Notes called for redemption that are beneficially owned by the Company and have been delivered
by the Company to the Trustee for cancellation or Notes that have been converted. 
  
 SECTION 5.7. Notes Payable on Redemption Date. Notice of redemption having been given as aforesaid, the Notes or portions of Notes so to be redeemed shall, on the Redemption Date, become due and payable at a
price equal to the Redemption Price, except for Notes which are converted in accordance with the terms of this Indenture, and from and after such date (unless the Company shall default in the payment of the Redemption Price) such Notes shall cease
to bear interest (and Liquidated Damages, if any). Upon surrender of any such Note for redemption in accordance with said notice, such Note shall be paid by the Company at the Redemption Price on the Redemption Date (subject to the rights of Holders
of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date). 
  

 40 

 If any Note called for redemption shall not be so paid upon surrender thereof for redemption, the
principal shall, until paid, bear interest (and Liquidated Damages, if any) from the Redemption Date at the rate borne by the Notes. 
  
 SECTION 5.8. Notes Redeemed in Part. Any Note which is to be redeemed only in part (pursuant to the provisions of this Article) shall be
surrendered at the office or agency of the Company maintained for such purpose pursuant to Section 2.3 (with due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or such Holder’s attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and make available for delivery to the Holder of such Note at the expense of the Company, a new Note or Notes, of
any authorized denomination as requested by such Holder, in an aggregate principal amount equal to and in exchange for the unredeemed portion of the principal amount of the Note so surrendered, provided, that each such new Note will be in a
principal amount of $1,000 or integral multiple thereof. 
  
 If a
Holder converts a portion of its Note prior to receipt of the redemption notice for a Note to be redeemed only in part, the converted portion will be deemed to be from the portion selected for redemption. In the event of any redemption in part, the
Company will not be required to (i) issue, register the transfer of or exchange any Note during a period beginning at the opening of business 15 days before any selection of Notes for redemption and ending at the close of business on the earliest
date on which the relevant notice of redemption is deemed to have been given to all Holders of Notes to be so redeemed; or (ii) register the transfer of or exchange any Note so selected for redemption, in whole or in part, except the unredeemed
portion of any Note being redeemed in part. 
  
 ARTICLE VI

  
 REPURCHASE UPON A FUNDAMENTAL CHANGE 
  
 SECTION 6.1. Repurchase at the Option of the Holder upon a Fundamental
Change. If a Fundamental Change shall occur, each Holder shall have the right, at such Holder’s option, to require the Company to purchase any or all of such Holder’s Notes not previously called for redemption for cash on the date that
is no less than 20 Business Days and no more than 35 Business Days after the date of the Company Notice of the occurrence of such Fundamental Change (subject to extension to comply with applicable law, as provided in Section 8.4) (the
“Fundamental Change Repurchase Date”). The Notes shall be repurchased in integral multiples of $1,000 of the principal amount. The Company shall purchase such Notes at a price (the “Fundamental Change Repurchase Price”) equal to
100% of the principal amount of the Notes to be purchased plus accrued and unpaid interest, if any, and Liquidated Damages, if any, to, but not including, the Fundamental Change Repurchase Date. 
  

 41 

 SECTION 6.2. Notice of Fundamental Change. The Company, or at its request (which must be received
by the Paying Agent at least three Business Days (or such lesser period as agreed to by the Paying Agent) prior to the date the Paying Agent is requested to give such notice as described below), the Paying Agent in the name of and at the expense of
the Company, shall mail to all Holders and the Trustee a Company Notice of the occurrence of a Fundamental Change and of the purchase right arising as a result thereof, including the information required by Section 8.1, on or before the
30th day after the occurrence of such Fundamental Change. In addition, simultaneous with mailing the Company Notice,
the Company will disseminate a press release containing information about the Fundamental Change and the repurchase right arising as a result of the Fundamental Change through a public medium that is customary for such press releases or publish the
information on the Company’s website or through such other public medium as the Company may use at that time. 
  
 SECTION 6.3. Exercise of Option. For a Note to be so purchased at the option of the Holder, the Trustee must receive such Note duly endorsed for
transfer, together with a written notice of repurchase (the “Fundamental Change Repurchase Notice”) in the form attached to the Note, before the close of business on the Business Day immediately preceding the Fundamental Change Repurchase
Date, subject to extension to comply with applicable law, as provided in Section 8.4. The Fundamental Change Repurchase Notice shall state: 
  
 (a) if the Notes are certificated, the certificate numbers of the Notes which the Holder shall deliver to be purchased, or, if the Notes are not
certificated, the Fundamental Change Repurchase Notice must comply with appropriate Depositary procedures; 
  
 (b) the portion of the principal amount of the Notes which the Holder shall deliver to be purchased, which portion must be $1,000 in principal amount or
an integral multiple thereof; and 
  
 (c) that such Notes shall be
purchased as of the Fundamental Change Repurchase Date pursuant to the terms and conditions specified in paragraph 9 of the Notes and in this Indenture. 
  
 SECTION 6.4. Procedures. The Company shall purchase from a Holder, pursuant to this Article VI, Notes if the principal amount of such Notes is
$1,000 or a multiple of $1,000 if so requested by such Holder. 
  
 Any purchase by the Company contemplated pursuant to the provisions of this Article VI shall be consummated by the delivery of the Fundamental Change Repurchase Price to be received by the Holder promptly following the later of the
Fundamental Change Repurchase Date or the time of book-entry transfer or delivery of the Notes. 
  
 The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Repurchase Notice. 
  
 On or before 11:00 a.m., New York City time, on the Fundamental Change
Repurchase Date, the Company shall deposit with the Paying Agent (or if the Company or an Affiliate of the Company is acting as the Paying Agent, shall segregate and hold in trust) cash sufficient to pay the aggregate Fundamental Change Repurchase
Price of the Notes to be purchased 
  

 42 

 pursuant to this Article VI. Payment by the Paying Agent of the Fundamental Change Repurchase Price for such Notes shall
be made promptly following the later of the Fundamental Change Repurchase Date or the time of book-entry transfer or delivery of such Notes. If the Paying Agent holds, in accordance with the terms of this Indenture, cash sufficient to pay the
Fundamental Change Repurchase Price of such Notes on the Business Day immediately following the Fundamental Change Repurchase Date, then, on and after such date, such Notes shall cease to be outstanding and interest (including Liquidated Damages, if
any) on such Notes shall cease to accrue, whether or not book-entry transfer of such Notes is made or such Notes are delivered to the Paying Agent, and all other rights of the Holder shall terminate (other than the right to receive the Fundamental
Change Repurchase Price upon delivery or transfer of the Notes). Nothing herein shall preclude the withholding of any tax required by law or regulations. 
  
 The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of
Holders or the Trustee all cash held by the Paying Agent for the payment of the Fundamental Change Repurchase Price and shall notify the Trustee of any Default by the Company in making any such payment. The Company at any time may require a Paying
Agent to deliver all cash held by it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the Paying Agent shall have no further liability for the cash delivered to the Trustee. 
  
 All questions as to the validity, eligibility (including time of receipt) and
acceptance of any Notes for repurchase shall be determined by the Company, whose determination shall be final and binding. 
  
 ARTICLE VII 
  
 OPTIONAL REPURCHASE 
  
 SECTION 7.1. Repurchase of Notes by the Company at the Option of the Holder. 
  
 (a) On each of March 15, 2014 and March 15, 2019 (each, a “Repurchase Date”), Holders shall have the option to require the Company to repurchase
any Notes at 100.25% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest and Liquidated Damages, if any, to but not including such Repurchase Date for the repurchase occurring on March 15, 2014 and at 100% of the
principal amount of the Notes to be repurchased plus accrued and unpaid interest and Liquidated Damages, if any, to but not including such Repurchase Date for the repurchase occurring on March 15, 2019, in each case subject to the satisfaction by or
on behalf of the Holder of the requirements set forth below: 
  
 (1) Repurchases of Notes under this Section 7.1 shall be made, at the option of the Holder thereof, upon delivery to the Paying Agent by the Holder of a written notice of repurchase (a “Repurchase Notice”)
in the form attached to the Note at any time from the opening of business on the date that is 20 Business Days prior to a Repurchase Date until the close of business on the last Business Day immediately prior to such Repurchase Date, stating:

  
 (i) if the Notes are certificated, the
certificate numbers of the Notes which the Holder will deliver to be purchased, or, if the Notes are not certificated, the Repurchase Notice must comply with appropriate Depositary procedures; 
  

 43 

 (ii) the portion of the principal amount of the Notes which the Holder will deliver to be
purchased, which portion must be $1,000 in principal amount or an integral multiple thereof; and 
  
 (iii) that such Notes shall be purchased as of the Repurchase Date pursuant to the terms and conditions specified in paragraph 8 of the
Notes and in this Indenture; and 
  
 (2) delivery
or book-entry transfer of such Notes to the Paying Agent prior to, on or after the Repurchase Date (together with all necessary endorsements) at the offices of the Paying Agent, such delivery or transfer being a condition to receipt by the Holder of
the Repurchase Price therefor; provided, however, that such Repurchase Price shall be so paid pursuant to this Section 7.1 only if the Notes so delivered or transferred to the Paying Agent shall conform in all respects to the
description thereof in the related Repurchase Notice. 
  
 The
Repurchase Price with respect to Notes purchased on a Repurchase Date shall be paid solely in cash. 
  
 (b) The Company shall purchase from a Holder, pursuant to the terms of this Section 7.1, Notes if the principal amount of such Notes is $1,000 or a
multiple of $1,000 if so requested by such Holder. 
  
 (c) Any
purchase by the Company contemplated pursuant to the provisions of this Section 7.1 shall be consummated by the delivery of the Repurchase Price to be received by the Holder promptly following the later of the Repurchase Date and the time of
book-entry transfer or delivery of the Notes. 
  
 (d)
Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Repurchase Notice contemplated by this Section 7.1 shall have the right at any time prior to the close of business on the Business Day prior to the
Repurchase Date to withdraw such Repurchase Notice (in whole or in part) by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 8.2. 
  
 (e) The Paying Agent shall promptly notify the Company of the receipt by it of any Repurchase Notice or written notice of
withdrawal thereof. 
  
 (f) On or before 11:00 a.m. on the
Repurchase Date, the Company shall deposit with the Paying Agent (or if the Company or an Affiliate of the Company is acting as the Paying Agent, shall segregate and hold in trust) cash sufficient to pay the aggregate Repurchase Price of the Notes
to be purchased pursuant to this Section 7.1. Payment by the Paying Agent of 
  

 44 

 the Repurchase Price for such Notes shall be made promptly following the later of the Repurchase Date and the time of
book-entry transfer or delivery of such Notes. If the Paying Agent holds, in accordance with the terms of this Indenture, cash sufficient to pay the Repurchase Price of such Notes on the Business Day immediately following the Repurchase Date, then,
on and after such date, such Notes shall cease to be outstanding and interest and Liquidated Damages, if any, on such Notes shall cease to accrue, whether or not book-entry transfer of such Notes is made or such Notes are delivered to the Paying
Agent, and all other rights of the Holder shall terminate (other than the right to receive the Repurchase Price upon delivery or transfer of the Notes). 
  
 (g) The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of
Holders or the Trustee all cash held by the Paying Agent for the payment of the Repurchase Price and shall notify the Trustee of any Default by the Company in making any such payment. The Company at any time may require a Paying Agent to deliver all
cash held by it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the Paying Agent shall have no further liability for the cash and/or Common Stock, as the case may be, delivered to the Trustee. 
  
 ARTICLE VIII 
  
 CONDITIONS AND PROCEDURES FOR REPURCHASES AT OPTION OF HOLDERS

  
 SECTION 8.1. Notice of Repurchase Date or Fundamental
Change. The Company shall send notices (each, a “Company Notice”) to the Holders (and to Beneficial Owners as required by applicable law) at their addresses shown in the Note Register not less than 20 Business Days prior to each
Repurchase Date, in accordance with Section 7.1 hereof, or on or before the 30th day after the occurrence of a
Fundamental Change, in accordance with Section 6.2 hereof, as the case may be (each such date of delivery, a “Company Notice Date”). The Company shall also deliver a copy of such Company Notice to the Trustee and any Paying Agent. Each
Company Notice shall include a form of Repurchase Notice or Fundamental Change Repurchase Notice to be completed by a Holder and shall state: 
  
 (a) the applicable Repurchase Price or Fundamental Change Repurchase Price, excluding accrued and unpaid interest, Conversion Rate at the time of such
notice (and any adjustments to the Conversion Rate) and, to the extent known at the time of such notice, the amount of accrued and unpaid interest and Liquidated Damages, if any, that will be payable with respect to the Notes on the applicable
Repurchase Date or Fundamental Change Repurchase Date; 
  
 (b) if
the notice relates to a Fundamental Change, the events causing the Fundamental Change and the date of the Fundamental Change; 
  
 (c) the Repurchase Date or Fundamental Change Repurchase Date; 
  
 (d) the last date on which a Holder may exercise its purchase right; 
  

 45 

 (e) the name and address of the Paying Agent and the Conversion Agent; 
  
 (f) that Notes must be surrendered to the Paying Agent to collect payment of
the Repurchase Price or Fundamental Change Repurchase Price; 
  
 (g) that Notes as to which a Repurchase Notice or Fundamental Change Repurchase Notice has been given may be converted only if the applicable Repurchase Notice or Fundamental Change Repurchase Notice has been withdrawn in accordance with
the terms of this Indenture; 
  
 (h) that the Repurchase Price or
Fundamental Change Repurchase Price for any Notes as to which a Repurchase Notice or a Fundamental Change Repurchase Notice, as applicable, has been given and not withdrawn shall be paid by the Paying Agent promptly following the later of the
Repurchase Date or Fundamental Change Repurchase Date, as applicable, and the time of book-entry transfer or delivery of such Notes; 
  
 (i) the procedures the Holder must follow under Article VI or VII hereof, as applicable, and this Article VIII; 
  
 (j) briefly, the conversion rights of the Notes; 
  
 (k) that, unless the Company defaults in making payment of such Repurchase
Price or Fundamental Change Repurchase Price on Notes covered by any Repurchase Notice or Fundamental Change Repurchase Notice, as applicable, interest and Liquidated Damages, if any, will cease to accrue on and after the Repurchase Date or
Fundamental Change Repurchase Date, as applicable; 
  
 (l) the
CUSIP or ISIN number of the Notes; and 
  
 (m) the procedures for
withdrawing a Repurchase Notice or Fundamental Change Repurchase Notice. 
  
 In connection with providing such Company Notice, the Company will issue a press release and publish a notice containing the information in such Company Notice in a newspaper of general circulation in the City of New
York or publish such information on the Company’s then existing website or through such other public medium as the Company may use at the time. 
  
 If any of the Notes is in the form of a Global Note, then the Company shall modify such Company Notice to the extent necessary to accord with the
procedures of the Depositary applicable to the repurchase of Global Notes. 
  
 At the Company’s request, made at least one Business Day prior to the date upon which such notice is to be mailed, and at the Company’s expense, the Paying Agent shall give the Company Notice in the
Company’s name to the Holders; provided, however, that, in all cases, the text of the Company Notice shall be prepared by the Company. 
  

 46 

 SECTION 8.2. Effect of Repurchase Notice or Fundamental Change Repurchase Notice. Upon receipt by
the Company of a properly completed and executed Repurchase Notice or Fundamental Change Repurchase Notice specified in Section 7.1 or Section 6.3, as applicable, the Holder of the Notes in respect of which such Repurchase Notice or Fundamental
Change Repurchase Notice, as the case may be, was given shall (unless such Repurchase Notice or Fundamental Change Repurchase Notice is withdrawn as specified in the following two paragraphs) thereafter be entitled to receive solely the Repurchase
Price or Fundamental Change Repurchase Price with respect to such Notes. Such Repurchase Price or Fundamental Change Repurchase Price shall be paid by the Paying Agent to such Holder promptly following the later of (i) the Repurchase Date or the
Fundamental Change Repurchase Date, as the case may be, with respect to such Notes (provided the conditions in Section 7.1 or Section 6.2, as applicable, have been satisfied) and (ii) the time of delivery or book-entry transfer of such Notes
to the Paying Agent by the Holder thereof in the manner required by Section 7.1 or Section 6.4, as applicable. Notes in respect of which a Repurchase Notice or Fundamental Change Repurchase Notice, as the case may be, has been given by the Holder
thereof may not be converted for shares of Common Stock on or after the date of the delivery of such Repurchase Notice or Fundamental Change Repurchase Notice, as the case may be, unless such Repurchase Notice or Fundamental Change Repurchase
Notice, as the case may be, has first been validly withdrawn as specified in the following two paragraphs. 
  
 A Repurchase Notice or Fundamental Change Repurchase Notice, as the case may be, may be withdrawn by means of a written notice of withdrawal delivered to
the office of the Paying Agent (with a copy to the Company) at any time prior to the close of business on the Business Day prior to the Repurchase Date or the Fundamental Change Repurchase Date, as the case may be, to which it relates specifying:

  
 (a) if the Notes are certificated, the certificate number of
the Notes in respect of which such notice of withdrawal is being submitted, or, if not certificated, the written notice of withdrawal must comply with appropriate Depositary procedures; 
  
 (b) the principal amount of the Notes with respect to which such notice of withdrawal is being submitted; and 
  
 (c) the principal amount, if any, of such Notes which remains subject to the
original Repurchase Notice or Fundamental Change Repurchase Notice, as the case may be, and which has been or shall be delivered for purchase by the Company. 
  
 The Paying Agent shall promptly return to the respective Holders thereof any Notes with respect to which a Repurchase Notice or Fundamental Change
Repurchase Notice, as the case may be, has been withdrawn in compliance with this Indenture. If any of the Notes is in the form of a Global Note, the Company and the Trustee shall also modify the procedures for withdrawal to the extent necessary to
accord with the procedures of the Depositary. 
  
 SECTION 8.3.
Notes Repurchased in Part. Any Notes that are to be repurchased only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney 
  

 47 

 duly authorized in writing) and the Company shall execute and the Trustee or the Authenticating Agent shall authenticate
and deliver to the Holder of such Notes, without service charge, a new Note or Notes, of any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the
Notes so surrendered which is not purchased. 
  
 SECTION 8.4.
Covenant to Comply with Securities Laws upon Repurchase of Notes. In connection with any offer to repurchase Notes under Article VI or Article VII hereof, the Company shall, to the extent required by applicable law, (a) comply with Rules
13e-4 and 14e-1 (and any successor provisions thereto) and any other rules relating to tender offers under the Exchange Act, if applicable; (b) file the related Schedule TO (or any successor schedule, form or report) under the Exchange Act, if
applicable; and (c) otherwise comply in all material respects with all applicable federal and state securities laws so as to permit the rights and obligations under Article VI or Article VII to be exercised in the time and in the manner specified in
Article VI or Article VII. 
  
 SECTION 8.5. Repayment to the
Company. The Trustee and the Paying Agent shall return to the Company any cash or property that remains unclaimed as provided in paragraph 13 of the Notes and Section 3.3 hereof, together with interest that the Trustee or Paying Agent, as the
case may be, has agreed to pay, if any, held by them for the payment of a Repurchase Price or Fundamental Change Repurchase Price, as the case may be; provided, however, that to the extent that the aggregate amount of cash or property
deposited by the Company pursuant to Section 7.1(f) or 6.4, as applicable, exceeds the aggregate Repurchase Price or Fundamental Change Repurchase Price, as the case may be, of the Notes or portions thereof which the Company is obligated to purchase
as of the Repurchase Date or Fundamental Change Repurchase Date, as the case may be, then promptly on and after the Business Day immediately following the Repurchase Date or Fundamental Change Repurchase Date, as the case may be, the Trustee and the
Paying Agent shall return any such excess to the Company together with interest that the Trustee or Paying Agent, as the case may be, has agreed to pay, if any. 
  

ARTICLE IX 
  
 CONVERSION OF NOTES 
  
 SECTION 9.1. Right To Convert. Subject to and upon compliance with the provisions of this Article IX, a Holder may convert its Notes into shares of Common Stock at the applicable Conversion Rate (defined below)
at any time during which the following conditions are met: 
  
 (a) on any Business Day during a calendar quarter (and only during that calendar quarter) prior to March 15, 2019, if the Closing Sale Price of the Common Stock for at least 20 Trading Days in a period of 30 consecutive Trading Days ending
on the last Trading Day of the previous calendar quarter, is greater than 120% of the applicable Conversion Price; 
  

 48 

 (b) at any time after March 15, 2019, if the Closing Sale Price of the Common Stock is greater than 120%
of the applicable Conversion Price; 
  
 (c) during the five
consecutive Business Day period following any five consecutive Trading Day period in which the Trading Price for a Note for each day of that trading period was less than 98% of the Closing Sale Price of the Common Stock on such corresponding Trading
Day multiplied by the applicable Conversion Rate; provided, however, that if, on the Trading Day immediately prior to the Conversion Date, the Closing Sale Price of the Common Stock is greater than 100% of the applicable Conversion
Price but less than or equal to 120% of the applicable Conversion Price, a Note is surrendered for conversion and the Notes are not otherwise convertible, then Holders will receive, in lieu of Common Stock based on the Conversion Rate, cash, Common
Stock or a combination of cash and Common Stock, at the Company’s option, with a value equal to 100% of the principal amount of the Note to be converted plus accrued and unpaid interest to but not including the Conversion Date (a
“Principal Value Conversion”). If a Holder surrenders its Notes for a Principal Value Conversion pursuant to this Section 9.1(c), the Company will notify such Holder through the Conversion Agent whether the Company will pay such Holder all
or a portion of the principal amount plus accrued and unpaid interest, if any, of such Notes in cash, Common Stock or a combination of cash and Common Stock and in what percentage or amount at any time on or before the date that is two Trading Days
following the Conversion Date. Settlement (in cash and/or Common Stock) will occur on the third Business Day following the final day of the five consecutive Trading Day period beginning on the third Trading Day following the Conversion Date. Any
Common Stock delivered upon a Principal Value Conversion in accordance with this Section 9.1(c) shall be valued at 100% of the average of the Closing Sale Prices of the Common Stock for the five consecutive Trading Days commencing on the third
Trading Day following the Conversion Date; 
  
 (d) during such
period, if any, in which (i) the rating assigned by Moody’s to the Notes is at or below B3 or the rating assigned by Standard & Poor’s to the Notes is at or below B or the rating assigned by Fitch to the Notes is at or below B- or (ii)
if the Notes are no longer rated by at least one of Moody’s, Standard & Poor’s or Fitch; 
  
 (e) in the event that the Company calls the Notes for redemption pursuant to Article V hereof, prior to the close of business on the Business Day prior to
the Redemption Date, even if the Notes are not otherwise convertible at such time, provided that if the Company elects to redeem less than all the Notes, only those Notes called for redemption may be redeemed pursuant to this Section 9.1(e);

  
 (f) the Company becomes a party to a consolidation, merger or
binding share exchange pursuant to which all or substantially all of the Common Stock would be converted into cash, securities or other property, in which case a Holder may surrender Notes for conversion at any time from and after the date that is
15 days prior to the anticipated effective date for the transaction until 15 days after the actual effective date of such transaction; or 
  
 (g) the Company elects to (i) distribute to all holders of Common Stock assets, debt securities or rights to purchase securities (other than the
Company’s special one-time cash dividend payable on May 17, 2004), which distribution has a per share value as determined by the Board of Directors exceeding 10% of the Closing Sale Price of the Common Stock on the 
  

 49 

 Trading Day immediately preceding the declaration date for such distribution, or (ii) distribute to all holders of Common
Stock rights, options or warrants entitling them to purchase shares of Common Stock at less than the Current Market Price. In the case of the foregoing clauses (i) and (ii), the Company must notify the Holders at least 20 days immediately
prior to the ex-dividend date for such distribution. Once the Company has given such notice, Holders may surrender their Notes for conversion at any time thereafter until the earlier of the close of business on the Business Day immediately prior to
the ex-dividend date and the Company’s announcement that such distribution will not take place, even if the Notes are not otherwise convertible at such time; provided, however, that a Holder may not exercise this right to convert
if the Holder is otherwise entitled to participate in the distribution without conversion. As used herein, the term “ex-dividend date” or “ex-date” when used with respect to any issuance or distribution, shall mean the first date
upon which a sale of shares of Common Stock does not automatically transfer the right to receive the relevant dividend or distribution from the seller of such Common Stock to its buyer. 
  
 Upon the Company’s determination that Holders are or will be entitled to convert Notes into shares of Common Stock in
accordance with the provisions of this Section 9.1, the Company will issue a press release through a public medium that is customary for such press releases or publish the information on the Company’s website or through such other public medium
as the Company may use at that time. 
  
 The number of shares of
Common Stock issuable upon conversion of a Note per $1,000 principal amount (the “Conversion Rate”) shall be that set forth in paragraph 10 in the Notes, subject to adjustment as herein set forth. The initial Conversion Rate is 47.2210
shares of Common Stock issuable upon conversion of a Note per $1,000 principal amount. 
  
 A Holder may convert a portion of the principal amount of Notes if the portion is $1,000 or a multiple of $1,000. 
  
 SECTION 9.2. Determination of Satisfaction of Certain Conversion Triggers. 
  
 (a) The Conversion Agent shall, on the Company’s behalf, determine if the Notes are convertible in accordance with
Sections 9.1(a) or 9.1(b) and shall notify the Company and the Trustee if the Notes become convertible; provided that the Company shall provide to the Conversion Agent, upon written request, the Closing Sale Price of the Common Stock. Prior
to March 15, 2019, the Conversion Agent shall make such determination during the last 30 consecutive Trading Days ending on the last Trading Day of each calendar quarter. Beginning after March 15, 2019, the Conversion Agent shall make such
determination on a daily basis. 
  
 (b) The Conversion Agent will,
on behalf of the Company, determine if the Notes are convertible in accordance with Section 9.1(c) and notify the Company and the Trustee if the Notes become convertible; provided, however, that the Conversion Agent shall have no
obligation to determine the Trading Price of the Notes unless the Company has requested such determination in writing and the Company shall have no obligation to make such request unless requested in writing to do so by a Holder. Upon request by the
Company to the Conversion Agent to determine the Trading Price, the Company shall instruct the Conversion Agent to determine the Trading Price of the Notes beginning on the next succeeding Trading Day and on each successive Trading Day until the
Trading Price of the Notes is greater than or equal to 98% of the product of the Closing Sale Price of the Common Stock and the applicable Conversion Rate. 
  

 50 

 SECTION 9.3. Conversion Procedures. To convert Notes, a Holder must satisfy the requirements in
this Section 9.3 and in paragraph 10 of the Notes. The date on which the Holder satisfies all those requirements and delivers an irrevocable conversion notice, together, if the Notes are in certificated form, with the Certificated Note, to the
Conversion Agent, along with appropriate endorsements and transfer documents, and pays any transfer or similar tax, is the conversion date (the “Conversion Date”). Upon conversion, the Company may choose to deliver, in lieu of Common
Stock, cash or a combination of cash and Common Stock as set forth in Section 9.18. In case the Company chooses to deliver only Common Stock upon conversion, as soon as practicable, but in no event later than the third Business Day following the
date of such election by the Company, the Company shall deliver to the Holder, through the Conversion Agent, a certificate for the number of full shares of Common Stock issuable upon the conversion which shall be equal to (1) the aggregate original
principal amount of the Notes to be converted divided by 1,000, multiplied by (2) the Conversion Rate, and cash in lieu of any fractional share determined pursuant to Section 9.4. In case the Company chooses to deliver cash or a combination of cash
and Common Stock as set forth in Section 9.17, the Company shall deliver such cash or combination of cash and Common Stock as soon as practicable, but in no event later than the third Business Day following the Cash Settlement Averaging Period. The
Person in whose name the certificate is registered shall only be treated as a stockholder of record on and after the Conversion Date; provided, however, that no surrender of Notes on any date when the stock transfer books of the
Company shall be closed shall be effective to constitute the Person or Persons entitled to receive the shares of Common Stock upon such conversion as the record holder or holders of such shares of Common Stock on such date, but such surrender shall
be effective to constitute the Person or Persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all purposes at the close of business on the next succeeding Business Day on which such stock transfer books
are open; such conversion shall be at the Conversion Rate in effect on the date that such Notes were surrendered for conversion, as if the stock transfer books of the Company had not been closed. Upon conversion of Notes, such Person shall no longer
be a Holder of such Notes. 
  
 No payment or adjustment shall be
made for dividends on or other distributions with respect to any Common Stock except as provided in Section 9.7 or as otherwise provided in this Indenture. 
  
 Except as provided in this paragraph, a converting Holder of Notes shall not be entitled to receive any accrued and unpaid cash interest on any such Notes
being converted. By delivery to the Holder of the number of shares of Common Stock or other consideration issuable or payable upon conversion in accordance with this Section 9.3, any accrued and unpaid cash interest and Liquidated Damages, if any,
on such Notes will be deemed to have been paid in full. If any Conversion Date occurs subsequent to the Regular Record Date preceding an Interest Payment Date but prior to such Interest Payment Date, the Holder of such Notes at the close of business
New York City time on any Regular Record Date shall receive the cash interest and Liquidated Damages, if any, payable on such Note on such Interest Payment Date notwithstanding the conversion thereof. Notes surrendered for conversion during the
period from the close of 
  

 51 

 business New York City time on any Regular Record Date to but excluding such Interest Payment Date (except in the case of
Notes which have been called for redemption on a Redemption Date within such period) shall be accompanied by payment from converting Holders, for the account of the Company, in New York Clearing House funds, of an amount equal to the interest
payable on such Interest Payment Date on the Notes being surrendered for conversion; provided, however, if the Company elects to redeem Notes on a date that is on or after the Regular Record Date but on or prior to the corresponding Interest
Payment Date, and such Holder elects to convert those Notes, the Holder will not be required to pay the Company, at the time that Holder surrenders those Notes for conversion, the amount of cash interest and Liquidated Damages, if any, such Holder
will receive on the Interest Payment Date. Upon conversion of Notes, that portion of accrued but unpaid cash interest, if any, and Liquidated Damages, if any, with respect to the converted Notes shall not be canceled, extinguished or forfeited, but
rather shall be deemed to be paid in full to the Holder thereof through delivery of the Common Stock (together with the cash payment, if any, in lieu of fractional shares) or cash or a combination of cash and Common Stock in exchange for the Notes
being converted pursuant to the provisions hereof, and the cash or the Fair Market Value of such shares of Common Stock (together with any such cash payment in lieu of fractional shares) shall be treated as issued, to the extent thereof, first in
exchange for cash interest accrued and unpaid and Liquidated Damages, if any, through the Conversion Date and the balance, if any, of such cash or the Fair Market Value of such Common Stock (and any such cash payment) shall be treated as issued in
exchange for the principal amount of the Notes being converted pursuant to the provisions hereof. The Company will not adjust the Conversion Rate to account for accrued cash interest on any Note. 
  
 If a Holder converts more than one Note at the same time, the number of
shares of Common Stock issuable upon the conversion shall be based on the total principal amount of the Notes converted. 
  
 Upon surrender of a Note that is converted in part, the Company shall execute, and the Trustee or the Authenticating Agent shall authenticate and deliver
to the Holder, a new Note in an authorized denomination equal in principal amount to the unconverted portion of the Note surrendered. 
  
 If the last day on which Notes may be converted is not a Business Day in a place where a Conversion Agent is located, the Notes may be surrendered to that
Conversion Agent on the next succeeding Business Day. 
  
 Holders
that have already delivered a Repurchase Notice or a Fundamental Change Repurchase Notice with respect to a Note, may not surrender such Note for conversion until the Repurchase Notice or Fundamental Change Repurchase Notice, as the case may be, has
been withdrawn in accordance with the procedures set forth in Section 8.2. 
  
 SECTION 9.4. Cash Payments in Lieu of Fractional Shares. The Company shall not issue a fractional share of Common Stock upon conversion of Notes. Instead, if the Company chooses to otherwise deliver only Common
Stock, the Company shall deliver cash in lieu of fractional shares of Common Stock, based on the Closing Sale Price of a full share of Common Stock on the Trading Day immediately preceding the Conversion Date. If the Company chooses to deliver a
combination of cash and Common Stock pursuant to Section 9.17, the Company 
  

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 shall deliver cash in lieu of Fractional Shares of Common Stock based on the Closing Sale Price of a full share of the
Common Stock on the last Trading Day of the Cash Settlement Averaging Period (and rounding to the nearest whole cent.) 
  
 SECTION 9.5. Taxes on Conversion. If a Holder converts Notes, the Company shall pay any documentary, stamp or similar issue or transfer tax due on
the issue of shares of Common Stock upon the conversion. However, the Holder shall pay any such tax which is due because the Holder requests the shares to be issued in a name other than the Holder’s name. The Conversion Agent may refuse to
deliver the certificates representing the Common Stock being issued in a name other than the Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax which shall be due because the shares are to be issued in a name
other than the Holder’s name. Nothing herein shall preclude the withholding of any tax required by law or regulations. 
  
 SECTION 9.6. Covenants of the Company. The Company shall, prior to issuance of any Notes hereunder, and from time to time as may be necessary,
reserve out of its authorized but unissued Common Stock a sufficient number of shares of Common Stock to permit the conversion of the Notes. 
  
 All shares of Common Stock delivered upon conversion of the Notes shall be newly issued shares or treasury shares, shall be duly and validly issued and
fully paid and nonassessable and shall be free from preemptive rights and free of any Lien or adverse claim placed thereon by the Company. 
  
 The Company shall endeavor promptly to comply with all federal and state securities laws regulating the order and delivery of shares of Common Stock upon
the conversion of Notes, if any, and shall cause to have listed or quoted all such shares of Common Stock on each United States national securities exchange or over-the-counter or other domestic market on which the Common Stock is then listed or
quoted. 
  
 SECTION 9.7. Adjustments to Conversion Rate.
The Conversion Rate shall be subject to adjustment from time to time, without duplication, as follows: 
  
 (a) In case the Company shall (i) pay a dividend, or make a distribution on its Common Stock, payable exclusively in shares of Common Stock or other
Capital Stock of the Company; (ii) subdivide or split its outstanding Common Stock into a greater number of shares; (iii) combine or reclassify its outstanding Common Stock into a smaller number of shares; or (iv) issue by reclassification of the
shares of Common Stock any shares of the Company’s Capital Stock, the Conversion Rate in effect immediately prior to the record date or effective date, as the case may be, for the adjustment pursuant to this Section 9.7(a) as described below,
shall be adjusted so that the Holder of any Notes thereafter surrendered for conversion shall be entitled to receive the number of shares of Common Stock and/or Capital Stock which such Holder would have owned or have been entitled to receive after
the happening of any of the events described above had such Notes been converted immediately prior to such record date or effective date, as the case may be. An adjustment made pursuant to this Section 9.7(a) shall become effective immediately after
the applicable record date in the case of a dividend or distribution and shall become effective immediately after the applicable effective date in the case of subdivision, combination 
  

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 or reclassification of the Common Stock. If any dividend or distribution of the type described in clause (i) above is not
so paid or made, the Conversion Rate shall again be immediately readjusted, effective as of the date the Board of Directors determines not to pursue such action, to the Conversion Rate that would then be in effect if such dividend or distribution
had not been declared. If any subdivision or split, combination or reclassification or issuance of the type described in clauses (ii) through (iv) of this Section 9.7(a) is not so made, the Conversion Rate shall again be immediately readjusted,
effective as of the date the Board of Directors determines not to pursue such action, to the Conversion Rate that would then be in effect if such subdivision or split, combination or reclassification or issuance had not been declared. 
  
 (b) In case the Company at any time or from time to time after the issuance
of the Notes shall issue rights or warrants to all or substantially all holders of the Common Stock entitling them to purchase Common Stock for a period of 60 days from the date of issuance of such rights or warrants at a price per share less (or
having a conversion price per share less) than the Current Market Price per share of Common Stock, the Conversion Rate shall be adjusted so that the same shall equal the Conversion Rate determined by multiplying the Conversion Rate in effect
immediately prior to the close of business on the record date fixed for determination of stockholders entitled to receive such rights or warrants (prior to any adjustment in accordance with this Section 9.7(b)) by a fraction of which (i) the
numerator shall be the number of shares of Common Stock outstanding on such record date plus the number of additional shares of Common Stock offered for subscription or purchase, and (ii) the denominator shall be the number of shares of Common Stock
outstanding on such record date plus the number of shares which the aggregate offering price of the total number of shares so offered would purchase at the Current Market Price per share of Common Stock on the earlier of such record date and the
Trading Day immediately preceding the ex date for such issuance of rights or warrants. Such adjustment shall be made successively whenever any such rights or warrants are issued, and shall become effective immediately after the opening of business
on the day following the record date for the determination of stockholders entitled to receive such rights or warrants. To the extent that shares of Common Stock are not delivered after the expiration of such rights or warrants, the Conversion Rate
shall immediately be readjusted to the Conversion Rate which would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of only the number of shares of Common Stock actually
delivered. If such rights or warrants are not so issued, the Conversion Rate shall again be immediately readjusted to be the Conversion Rate which would then be in effect if such record date for the determination of shareholders entitled to receive
such rights or warrants had not been fixed. In determining whether any rights or warrants entitle the holders to purchase shares of Common Stock at less than such Current Market Price, and in determining the aggregate offering price of such shares
of Common Stock, there shall be taken into account any consideration received by the Company for such rights or warrants, the value of such consideration, if other than cash, to be determined by the Board of Directors. 
  
 (c) In case the Company shall, by dividend or in a merger, amalgamation or
consolidation or otherwise, distribute to all or substantially all holders of Common Stock any evidences of Indebtedness, shares of Capital Stock of any class or series, other securities, cash or assets (excluding (i) any dividend, distribution or
issuance covered by those referred to in Section 9.7(a) or 9.7(b) hereof, (ii) any dividend or distribution paid exclusively in cash referred to in Section 9.7(d), 9.7(f) or 9.7(g) hereof or (iii) any dividend or distribution that constitutes a

  

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 Spin-Off which is covered by Section 9.7(e) hereof), or rights or warrants to purchase any of its securities (including
the distribution of rights to all holders of Common Stock pursuant to a stockholders rights plan or the detachment of such rights under the terms of such stockholder rights plan but excluding those rights or warrants referred to in Section 9.7(b))
(any of the foregoing hereinafter in this Section 9.7(c) called the “Distributed Assets”), then in each such case the Conversion Rate shall be adjusted so that the same shall equal the Conversion Rate determined by multiplying the
Conversion Rate in effect immediately prior to the close of business on the day prior to the ex-dividend date of such distribution by a fraction of which (A) the numerator shall be the Current Market Price per share of the Common Stock and (B) the
denominator shall be (1) the Current Market Price per share of the Common Stock less (2) the Fair Market Value on such record date (as determined in good faith by the Board of Directors, whose determination shall be conclusive evidence of such Fair
Market Value, and described in a certificate filed with the Trustee and the Paying Agent) of the portion of the Distributed Assets so distributed applicable to one share of Common Stock. Such adjustment shall become effective immediately after the
record date for the determination of stockholders entitled to receive such distribution; provided, however, that, if (i) the Fair Market Value of the portion of the Distributed Assets so distributed applicable to one share of Common
Stock is equal to or greater than the Current Market Price of the Common Stock or (ii) the Current Market Price of the Common Stock is greater than the Fair Market Value per share of such Distributed Assets by less than $1.00, then, in lieu of the
adjustment provided in this Section 9.7(c), adequate provision shall be made so that each Holder shall have the right to receive upon conversion, in addition to the shares of Common Stock, the kind and amount of assets, debt securities, or rights or
warrants comprising the Distributed Assets the Holder would have received had such Holder converted such Notes immediately prior to the record date for the determination of stockholders entitled to receive such distribution. In the event that such
distribution is not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate which would then be in effect if such distribution had not been declared. 
  
 (d) In case the Company shall make any distributions, by dividend or otherwise, consisting exclusively of cash to all or
substantially all holders of outstanding shares of Common Stock, then, and in each such case, the Conversion Rate shall be adjusted so that the same shall equal the Conversion Rate determined by multiplying the Conversion Rate in effect immediately
prior to the close of business on the day prior to the ex-dividend date of such distribution by a fraction of which (A) the numerator shall be the Current Market Price per share of the Common Stock and (B) the denominator shall be (1) the Current
Market Price per share of Common Stock minus (2) the amount per share of such distributions (appropriately adjusted from time to time for any stock dividends on or subdivisions or combination of Common Stock); provided, however, that if (i)
the per share amount of such distribution equals or exceeds the Current Market Price of the Common Stock or (ii) the Current Market Price of the Common Stock exceeds the per share amount of such distribution by less than $1.00, in lieu of the
foregoing adjustment, adequate provision shall be made so that each Holder of a Note shall have the right to receive upon conversion, such dividend or distribution such Holder would have received had such Holder converted each Note immediately prior
to the record date for the determination of stockholders entitled to receive the distribution. The new Conversion Rate shall take effect immediately after the record date fixed for determination of the Stockholders entitled to receive such
distribution. 
  

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 (e) In the event that the Company makes any distribution to all holders of Common Stock that constitutes
a Spin-Off, the Conversion Rate shall be adjusted so that the same shall equal the Conversion Rate determined by multiplying the Conversion Rate in effect immediately prior to the close of business on the record date fixed for the determination of
holders of Common Stock entitled to receive such distribution by a fraction of which (i) the numerator shall be the Spin-Off Market Price per share of the Common Stock on such record date plus the Spin-Off Market Price per Equity Interest of the
Subsidiary or other business unit of the Company on such record date applicable to each share of Common Stock and (ii) the denominator shall be the Spin-Off Market Price per share of the Common Stock. The adjustment to the Conversion Rate set forth
in this Section 9.7(e) will occur at the earlier of (1) the 10th Trading Day from, and including, the effective date
of the Spin-Off and (2) the date of the Initial Public Offering of the securities being distributed in the Spin-Off, if that Initial Public Offering is effected simultaneously with the Spin-Off; provided, however, that, if (i) the
Spin-Off Market Price per Equity Interest of the Subsidiary so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price of the Common Stock or (ii) the Current Market Price of the Common Stock is
greater than the Spin-Off Market price per Equity Interest of the Subsidiary by less than $1.00, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder of a Note shall have the right to receive upon conversion,
such distribution such Holder would have received had such Holder converted each Note immediately prior to the record date for the determination of stockholders entitled to receive the distribution. 
  
 (f) In case a tender or exchange offer made by the Company or any Subsidiary
shall expire and such tender or exchange offer (as amended upon the expiration thereof) shall require the payment to stockholders of consideration per share of Common Stock having a Fair Market Value (as determined in good faith by the
Company’s Board of Directors, whose determination shall be conclusive and described in a resolution of the Board of Directors) that as of the last time (the “Expiration Time”) tenders or exchanges may be made pursuant to such tender
or exchange offer (as it may be amended) exceeds the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, the Conversion Rate shall be adjusted so that the same shall equal the rate determined by
multiplying the Conversion Rate by a fraction, 
  
 (i) the numerator of which shall be the sum of (x) the Fair Market Value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up to any maximum specified in the terms of the tender or
exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so accepted up to any such maximum, being referred to as the “Purchased Shares”) and (y) the product of (a) the
number of shares of Common Stock outstanding (less any Purchased Shares) at the Expiration Time and (b) the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, and 
  
 (ii) the denominator of which shall be the number of shares
of Common Stock outstanding (including any Purchased Shares) at the Expiration Time multiplied by the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, such adjustment to become effective
immediately prior to the opening 
  

 56 

 of business on the day following the Expiration Time. If the Company is obligated to purchase shares
pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again immediately be readjusted to be the
Conversion Rate that would then be in effect if such tender or exchange offer had not been made. 
  
 (g) In the event that the Company or any Subsidiary makes any payment in cash to repurchase Common Stocks, the consideration for which exceeded the
average Closing Sale Prices of the Common Stock for the five consecutive Trading Days ending on the last date of such repurchase (such excess amount, the “Repurchase Premium”), and such repurchase (together with any other repurchases of
Common Stock by the Company or any Subsidiary concluded within 12 months of such repurchase, the consideration for which involved a Repurchase Premium) resulted in the payment by the Company or any Subsidiary of an aggregate consideration exceeding
an amount equal to 10% of the Company’s Market Capitalization, the Conversion Rate shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate by a fraction, 
  
 (i) the numerator of which shall be the 9.7(g) Current
Market Price, and 
  
 (ii) the denominator of
which shall be (A) the 9.7(g) Current Market Price, minus (B) the quotient of (x) aggregate amount of all of the Repurchase Premium paid in connection with all such repurchases and (u) the number of share of Common Stock outstanding on the next day
succeeding the date of the repurchase triggering the adjustment in this Section 9.7(g), as determined by the Board of Directors; 
  
 provided, however, that no adjustment to the Conversion Rate shall be made to the extent the Conversion Rate is not increased as per the calculations
specified in this Section 9.7(g), and provided further, that repurchase transactions by the Company or its agents that are conducted in conformity with Rule 10b-18 under the Exchange Act shall not be included in any adjustments to the Conversion
Rate specified in this Section 9.7(g). 
  
 (h) Upon conversion of
the Notes, the Holders shall receive, if they receive shares of Common Stock, in addition to the Common Stock issuable upon such conversion, the rights issued under any shareholder rights plan the Company implements (notwithstanding the occurrence
of an event causing such rights to separate from the Common Stock at or prior to the time of conversion) unless, prior to conversion, the rights have expired, terminated or been redeemed or exchanged in accordance with the rights plan. If, and only
if, the Holders of Notes receive rights under such shareholder rights plans as described in the preceding sentence upon conversion of their Notes, then no other adjustment pursuant to this Section 9.7 shall be made in connection with such
shareholder rights plans. 
  
 (i) For purposes of this Section
9.7, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company shall not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company. 
  

 57 

 SECTION 9.8. Calculation Methodology. Except as stated in this Article IX, the Conversion Rate
will not be adjusted for the issuance of Common Stock or any securities convertible into or exchangeable for Common Stock or carrying the right to purchase any of the foregoing. If after an adjustment a Holder of a Note upon conversion of such Note
may receive shares of two or more classes of Capital Stock of the Company, the Conversion Rate shall thereafter be subject to adjustment upon the occurrence of an action with respect to any such class of Capital Stock as is contemplated by this
Article IX with respect to the Common Stock, on terms comparable to those applicable to Common Stock in this Article IX. All calculations under Article VIII, Section 9.7 and this Section 9.8 shall be made to the nearest cent or to the nearest
1/10,000th of a share, as the case may be. 
  
 SECTION 9.9.
When No Adjustment Required. No adjustment to the Conversion Rate need be made: 
  
 (a) upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on securities of the Company and the investment of additional
optional amounts in shares of Common Stock under any such plan; 
  
 (b) upon the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of its
Subsidiaries; 
  
 (c) upon the issuance of any shares of Common
Stock pursuant to any option, warrant, right, or exercisable, exchangeable or convertible security not described in paragraph (ii) above and outstanding as of the date of this Indenture; 
  
 (d) for a change in the par value of the Common Stock; or 
  
 (e) for accrued and unpaid interest (including Liquidated Damages) owed, if any. 
  
 To the extent the Notes become convertible into cash, assets, or property
(other than Capital Stock of the Company or securities to which Section 9.14 applies), no adjustment shall be made thereafter as to the cash, assets or property. Interest shall not accrue on such cash. 
  
 No adjustment need be made for a transaction referred to in Sections 9.7(b),
(c) or (e) if Holders of the Notes may participate in the transaction on a basis and with notice that the Board of Directors determines to be fair and appropriate in light of the basis and notice on which holders of Common Stock participate in the
transaction. 
  
 SECTION 9.10. Notice of Adjustment.
Whenever the Conversion Rate is adjusted, the Company shall promptly disseminate a press release which shall contain the adjusted Conversion Rate and other relevant information through a public medium that is customary for such press releases. In
addition, the Company shall mail, or cause to be mailed, by first class mail to Holders in accordance with Section 15.2 a notice of the adjustment. The Company shall also file with the Trustee and the Conversion Agent a certificate signed by the
Chief Financial Officer of the Company setting forth the adjusted Conversion Rate. The certificate shall, absent manifest error, be conclusive evidence that the adjustment is correct. 
  
  

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 SECTION 9.11. Voluntary Increase. The Company may make such increases in the Conversion Rate, in
addition to those required by Section 9.7, as the Board of Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend or distribution of stock (or
rights to acquire stock) or from any event treated as such for income tax purposes. To the extent permitted by applicable law, the Company may from time to time increase the Conversion Rate by any amount for any period of time if the period is at
least 20 days, the increase is irrevocable during the period and the Board of Directors shall have made a determination that such increase would be in the best interests of the Company, which determination shall be conclusive. Whenever the
Conversion Rate is so increased, the Company shall mail to Holders and file with the Trustee and the Conversion Agent a notice of such increase. Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with respect to
any such notice except to exhibit the same to any Holder desiring inspection thereof. The Company shall mail the notice at least 15 days before the date the increased Conversion Rate takes effect. The notice shall state the increased Conversion Rate
and the period it shall be in effect. 
  
 SECTION 9.12. Notice
to Holders Prior to Certain Actions. In case: 
  
 (a) The
Company shall declare a dividend (or any other distribution) on its Common Stock that would require an adjustment in the Conversion Rate pursuant to Section 9.7; 
  
 (b) The Company shall authorize the granting to all or substantially all the holders of its Common Stock of rights or
warrants to subscribe for or purchase any share of any class or any other rights or warrants; 
  
 (c) Of any reclassification or reorganization of the Common Stock of the Company (other than a subdivision or combination of its outstanding Common Stock, or a change in par value, or from par value to no par value,
or from no par value to par value), or of any consolidation or merger to which the Company is a party and for which approval of any shareholders of the Company is required, or of the sale or transfer of all or substantially all of the assets of the
Company; or 
  
 (d) Of the voluntary or involuntary dissolution,
liquidation or winding-up of the Company, the Company shall cause to be filed with the Conversion Agent and shall cause to be mailed to each Holder at its address appearing on the Note Register, as promptly as possible but in any event at least 15
days (10 days in the case of (a) or (b) above) prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution or rights or warrants, or, if a record
is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution, or rights or warrants are to be determined or (y) the date on which such reclassification, reorganization, consolidation,
merger, sale, transfer, dissolution, liquidation or winding-up is expected to become effective or occur, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities,
cash or other property deliverable upon such reclassification, reorganization, consolidation, merger, 
  

 59 

 sale, transfer, dissolution, liquidation or winding-up. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such dividend, distribution, reclassification, reorganization, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up. 
  
 SECTION 9.13. Effect of Reclassification, Consolidation, Merger, Binding Share Exchange or Sale. If any of the
following events occur, namely (a) any reclassification or change of outstanding shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or
combination); (b) any consolidation, merger, combination or binding share exchange of the Company with another corporation as a result of which holders of Common Stock shall be entitled to receive stock, securities or other property or assets
(including cash) with respect to or in exchange for such Common Stock; or (c) any sale or conveyance of the properties and assets of the Company as, or substantially as, an entirety to any other corporation as a result of which holders of Common
Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock, then the Company or the successor or purchasing corporation, as the case may be, shall execute
with the Trustee a supplemental indenture, providing that each Note shall be convertible into the kind and amount of shares of stock and other securities or property or assets (including cash) receivable upon such reclassification, change,
consolidation, merger, combination, binding share exchange, sale or conveyance by a holder of a number of shares of Common Stock issuable upon conversion of such Note immediately prior to such reclassification, change, consolidation, merger,
combination, binding share exchange, sale or conveyance assuming such holder of Common stock did not exercise his rights of election, if any, as to the kind or amount of stock, other securities or other property or assets (including cash) receivable
upon such reclassification, change, consolidation, merger, combination, binding share exchange, sale or conveyance (provided that, if the kind or amount of stock, other securities or other property or assets (including cash) receivable upon such
reclassification, change, consolidation, merger, combination, sale or conveyance is not the same for each share of Common Stock in respect of which such rights of election shall not have been exercised (“non-electing share”), then for the
purposes of this Section 9.13 the kind and amount of stock, other securities or other property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, binding share exchange, sale or conveyance
for each non-electing share shall be deemed to be the kind and amount so receivable per share by a plurality of the non-electing shares). Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article IX. 
  
 The Company shall cause notice of the execution of such supplemental indenture to be mailed to each Holder, at its address appearing on the Note Register, within 20 days after execution thereof. Failure to deliver such notice shall not
affect the legality or validity of such supplemental indenture. 
  
 The above provisions of this Section 9.13 shall similarly apply to successive reclassifications, changes, consolidations, mergers, combinations, binding share exchanges, sales and conveyances. 
  
 If this Section 9.13 applies to any event or occurrence, Section 9.7 shall
not apply. 
  

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 SECTION 9.14. Responsibility of Trustee. Except as specifically required in Section 9.2 herein,
the Trustee and any Conversion Agent shall not at any time be under any duty or responsibility to any Holder to either calculate the Conversion Rate or determine whether any facts exist which may require any adjustment of the Conversion Rate, or
with respect to the nature or extent or calculation of any such adjustment when made, or with respect to the method employed, or herein or in any supplemental indenture provided to be employed, in making the same and, subject to Sections 11.1 and
11.2 hereof and the provisions of this Article IX, shall be protected in relying upon an Officers’ Certificate with respect to the same. The Trustee and any Conversion Agent shall not be accountable with respect to the validity or value (or the
kind or amount) of any shares of Common Stock, or of any securities or property, which may at any time be issued or delivered upon the conversion of any Notes and the Trustee and any Conversion Agent make no representations with respect thereto.
Neither the Trustee nor any Conversion Agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the surrender of any Notes
for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the Company contained herein. 
  
 SECTION 9.15. Successive Adjustments. After an adjustment to the Conversion Rate under Section 9.7, any subsequent event requiring an adjustment
under Section 9.7 shall cause an adjustment to the Conversion Rate as so adjusted. 
  
 SECTION 9.16. General Considerations. Whenever successive adjustments to the Conversion Rate are called for pursuant to this Article IX, such adjustments shall be made to the Current Market Price as may be
necessary or appropriate to effectuate the intent of this Article IX and to avoid unjust or inequitable results as determined in good faith by the Board of Directors of the Company. 
  
 SECTION 9.17. Payment of Cash in Lieu of Common Stock. If a Holder elects to convert all or any portion of a Note
into shares of Common Stock as set forth in Section 9.1 and delivers an irrevocable conversion notice, together, if the Notes are in certificated form, with the certificated Note as set forth in Section 9.3, the Company may choose to satisfy all or
any portion of its conversion obligation with respect to a Note (the “Conversion Obligation”) in cash or a combination of cash and Common Stock. Upon such election, the Company will notify such Holder through the Conversion Agent of the
Company’s election to pay cash in lieu of delivery of some or all of the shares of Common Stock and the dollar amount per Note to be satisfied in cash (which must be expressed either as 100% of the Conversion Obligation or as a fixed dollar
amount) at any time on or before the date that is two Business Days following the Conversion Date unless the Company has previously informed Holders of its election in connection with a redemption of the Notes in accordance with Section 5.1 of this
Indenture. Settlement amounts will be computed as follows: 
  
 (a) if the Company elects to satisfy the entire Conversion Obligation in cash, the Company will deliver to such Holder cash in an amount equal to the product of: (1) a number equal to (x) the aggregate original principal amount of Notes to
be converted divided by 1,000, multiplied by (y) the Conversion Rate, and (2) the average Closing Sale Price of the Common Stock during the 20 Trading Day period beginning on the third Trading Day after the Conversion Date (the “Cash Settlement
Averaging Period”); and 
  

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 (b) if the Company elects to satisfy a fixed amount (but not all) of the Conversion Obligation per $1,000
principal amount of Notes in cash, the Company will deliver to such Holder 
  
 (1) such fixed cash amount per $1,000 principal amount Notes to be converted (the “Cash Amount”); and 
  
 (2) a number of shares of Common Stock per $1,000 principal amount of Notes equal to the sum, for each Trading Day of the Cash Settlement
Averaging Period, of the greater of 
  
 (i) zero
and 
  
 (ii) a number of Common Stock equal to a
fraction: 
  
 (A) the numerator of which equals
the (x) the product of the Closing Sale Price of the Common Stock on such Trading Day multiplied by the Conversion Rate minus (y) the Cash Amount; and 
  
 (B) the denominator of which equals the product of the Closing Sale Price of Common Stock on such Trading day multiplied by the number of
Trading Days in the Cash Settlement Averaging Period; 
  
 provided,
however, that the Company will pay cash in lieu of fractional shares of Common Stock in accordance with Section 9.4. 
  
 ARTICLE X 
  
 DEFAULTS AND REMEDIES 
  
 SECTION 10.1. Events of Default. “Event of Default”, wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 
  
 (a) default in the payment of any interest and Liquidated Damages, if any, due and payable on the Notes, continued for 30
days or more; or 
  
 (b) default in payment of all or any part of
principal of the Notes at the Maturity Date, upon redemption or repurchase or following a Fundamental Change when the same becomes due and payable; or 
  
 (c) default in the performance of or breach of any other covenant or warranty of the Company contained in the Notes, any Guarantee or this Indenture
(other than a default specified in (a) or (b) above) that continues for a period of 60 days after written notice of such 
  

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 failure requiring the Company to remedy the same and stating that such notice is a “Notice of Default”
hereunder shall have been given (x) to the Company by the Trustee or (y) to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Notes then Outstanding; or 
  
 (d) acceleration of any Indebtedness, having an aggregate minimum principal
amount of $50 million, for money borrowed by the Company or a Subsidiary under the terms of the instrument under which such Indebtedness is issued or secured, if such acceleration is not discharged within 10 days after written notice of such
acceleration; or 
  
 (e) any Guarantee ceases to be in full force
and effect or is declared null and void or any Guarantor denies that it has any further liability under any Guarantee, or gives notice to such effect (other than by reason of the termination of this Indenture or the release of any such Guarantee in
accordance with Section 12.4 hereof) and such condition shall have continued for a period of 30 days after written notice of such condition requiring the same to be remedied and stating that such notice is a “Notice of Default” hereunder
shall have been given (x) to the Company by the Trustee or (y) to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Notes then outstanding; or 
  
 (f) the Company or any Subsidiary of the Company pursuant to or under or
within the meaning of any Bankruptcy Law: 
  
 (i)
commences a voluntary case or proceeding; 
  
 (ii) consents to the making of a Bankruptcy Order in an involuntary case or proceeding or the commencement of any case against it; 
  
 (iii) consents to the appointment of a Custodian of it or for any substantial part of its property; 
  
 (iv) makes a general assignment for the benefit of its
creditors; 
  
 (v) files an answer or consent
seeking reorganization or relief; 
  
 (vi) admits
in writing its inability to pay its debts generally; or 
  
 (vii) consents to the filing of a petition in bankruptcy; or 
  
 (g) a court of competent jurisdiction in any involuntary case or proceeding enters a Bankruptcy Order against the Company or any Subsidiary, and such Bankruptcy Order remains unstayed and in effect for 60 consecutive
days; 
  
 (h) a Custodian shall be appointed out of court with
respect to the Company or any Subsidiary or with respect to all or any substantial part of the assets or properties of the Company or any Subsidiary; 
  
 (i) default on the part of the Company in its obligation to convert the Notes upon exercise of a Holder’s conversion right in accordance with the
terms of the Notes and Article IX 
  

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 hereof and such conversion Default is not cured or such conversion is not rescinded within five days after written notice
of Default is given by registered mail to the Company by the Trustee or to the Company and the Trustee by the Holder of such Note; 
  
 (j) default on the part of the Company in its obligation give notice to Holders of their right to require the Company to repurchase Notes following the
occurrence of a Fundamental Change within the time required to give such notice; or 
  
 (k) default in the payment of principal, interest or premium when due under any Indebtedness, having an aggregate minimum principal amount of $50 million, by the Company or any Subsidiaries under the terms of the
instrument under which such Indebtedness is issued or secured, if such default continues in effect for more than 30 days after the expiration of any grace period or extension of time for payment applicable thereto. 
  
 If an Event of Default with respect to the Notes then outstanding occurs and
is continuing (other than an Event of Default specified in Section 10.1(f), Section 10.1(g) or Section 10.01(h)), then and in each and every such case, unless the principal of all of the Notes shall have already become due and payable, either the
Trustee or the Holders of not less than 25% in aggregate principal amount of the Notes then outstanding, by notice in writing to the Company (and to the Trustee if given by Holders), may declare the principal of all the Notes and the interest
accrued thereon and Liquidated Damages, if any, thereon to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Notes contained to the
contrary notwithstanding. This provision, however, is subject to the condition that if at any time after the principal (or such specified amount) of the Notes shall have been so declared due and payable and before any judgment or decree for the
payment of the moneys due shall have been obtained or entered as hereinafter provided, the Company or any Guarantor shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest and Liquidated Damages, if
any, upon all of the Notes and the principal of any and all Notes, which shall have become due otherwise than by acceleration (with interest on overdue installments of interest, if any, to the extent that payment of such interest is enforceable
under applicable law and on such principal at the rate borne by the Notes to the date of such payment or deposit) and shall pay the reasonable compensation, disbursements, expenses and advances of the Trustee, and any and all Defaults under this
Indenture, other than the nonpayment of principal of and accrued interest, if any, and Liquidated Damages, if any, on the Notes, which shall have become due solely by reason of the acceleration, shall have been cured or shall have been waived in
accordance with this Indenture, then and in every such case the declaration of acceleration shall be automatically annulled and rescinded; but no such rescission and annulment shall extend to or shall affect any subsequent Default, or shall impair
any right consequent thereon. If any Event of Default with respect to the Company specified in Section 10.1(f), Section 10.1(g) or Section 10.01(h) occurs, all unpaid principal and accrued interest and Liquidated Damages, if any, on all Notes then
outstanding shall ipso facto become and be immediately due and payable without any declaration or other act by the Trustee or any Holder. 
  
 If the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of
such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the Trustee and the Holders shall be restored respectively to their several positions and rights
hereunder, and all rights, remedies and powers of the Company, the Trustee and the Holders shall continue as though no such proceeding had been taken. 
  

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 In determining whether the Holders of the requisite aggregate principal amount of the Notes outstanding
have given any request, demand, authorization or consent under this Indenture, the principal amount of Notes that will be deemed to be outstanding will be the amount of the principal of the Notes that would be due and payable as of the date of the
determination upon a declaration of acceleration of the maturity of the Notes. 
  
 SECTION 10.2. Payment of Notes on Default; Suit Therefor. The Company covenants that (a) if a Default shall be made in the payment of any installment of interest upon the Notes then outstanding as and when the
same shall become due and payable, and such Default shall have continued for a period of 30 days, or (b) if a Default shall be made in the payment of the principal of any of the Notes as and when the same shall have become due and payable, whether
at maturity of the Notes or upon redemption or by declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the Holders of the Notes, the whole amount that then shall have become due and
payable on all such Notes for principal or interest, if any, or both, as the case may be, with interest upon the overdue principal and (to the extent that payment of such interest is enforceable under applicable law) upon the overdue installments of
interest, if any, at the rate borne by the Notes; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable costs and expenses of the Trustee, its agents, attorneys
and counsel and any expenses or liabilities incurred by the Trustee hereunder other than through its negligence or bad faith. 
  
 If the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be
entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or
final decree against the Company and collect in the manner provided by law out of the property of the Company, wherever situated, the moneys adjudged or decreed to be payable. 
  
 If there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or any Guarantor under any
bankruptcy, insolvency or other similar law now or hereafter in effect, or if a receiver or trustee or similar official shall have been appointed for the property of the Company or any Guarantor, or in the case of any other similar judicial
proceedings relative to the Company or each Guarantor, or to the creditors or property of the Company, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise
and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 10.2, shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim or claims for the whole
amount of principal and interest, if any, owing and unpaid in respect of the Notes, and, in case of any judicial proceedings, 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 and of the Holders allowed in such judicial proceedings relative to the Company, each Guarantor, its creditors, or its property, and to collect and receive any moneys or other property payable or deliverable on any 
  

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 such claims, and to distribute the same after the deduction of its reasonable expenses, and any receiver, assignee or
trustee or similar official in bankruptcy or reorganization is hereby authorized by each of the Holders to make such payments to the Trustee, and, if the Trustee shall consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due it pursuant to Section 11.7 hereof for reasonable expenses. To the extent that such payment of reasonable expenses out of the estate in any such proceedings 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, moneys, securities and other property which the Holders of the Notes may be entitled to receive in such proceedings, whether in liquidation or under any plan of
reorganization or arrangement or otherwise. 
  
 All rights of
action and of asserting claims under this Indenture, under any of the Notes, or under the Note Guarantee, may be enforced by the Trustee without the possession of any of the Notes, or the production thereof at any trial or other proceeding relative
thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall be for the ratable benefit of the Holders of the Notes in respect of which such
judgment has been recovered. 
  
 SECTION 10.3. Application of
Moneys Collected by Trustee. Any moneys collected by the Trustee pursuant to Section 10.2 with respect to the Notes then outstanding shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such
moneys, upon presentation of the several Notes, and stamping thereon the payment, if only partially paid, and upon surrender thereof, if fully paid: 
  
 FIRST: To the payment of all amounts due to the Trustee pursuant to Section 11.7 except as a result of its negligence or bad faith;

  
 SECOND: If the principal of the outstanding
Notes shall not have become due and be unpaid, to the payment of interest and Liquidated Damages, if any, on the Notes, in the order of the maturity of the installments of such interest, if any, with interest (to the extent that such interest has
been collected by the Trustee) upon the overdue installments of interest and Liquidated Damages, if any, at the rate borne by the Notes, such payment to be made ratably to the Persons entitled thereto; 
  
 THIRD: If the principal of the outstanding Notes shall have
become due, by declaration or otherwise, to the payment of the whole amount then owing and unpaid upon the Notes for principal and interest, if any, with interest on the overdue principal and (to the extent that such interest has been collected by
the Trustee) upon overdue installments of interest, if any, at the rate borne by the Notes; and in case such moneys shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such principal and
interest and Liquidated Damages, if any, without preference or priority of principal over interest and Liquidated Damages or of interest and Liquidated Damages over principal, or of any installment of interest and Liquidated Damages over any other
installment of interest and Liquidated Damages, or of any Note over any other Note, ratably to the aggregate of such principal and accrued and unpaid interest; and 
  

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 FOURTH: To the payment of any surplus then remaining to the Company, its successors or
assigns, or as a court of competent jurisdiction shall direct in writing. 
  
 SECTION 10.4. Proceedings by Holders. No Holder of any Notes then outstanding shall have any right by virtue of or by availing of any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture or the Notes or for the appointment of a receiver or trustee or similar official, or for any other remedy hereunder or thereunder, unless (i) such Holder previously shall have given to
the Trustee written notice of a continuing Event of Default, (ii) the Holders of at least 25% in aggregate principal amount of the Notes then outstanding shall have made a written request to the Trustee to institute such action, suit or proceeding
in its own name as Trustee hereunder, (iii) the Trustee, after its receipt of such notice, shall have neglected or refused to institute any such action, suit or proceeding for 60 days, and (iv) during such 60-day period the Holders of a majority in
aggregate principal amount of the outstanding Notes do not give the Trustee a direction inconsistent with the request, it being understood and intended, and being expressly covenanted by the Holder of every Note with every other Holder and the
Trustee, that no one or more Holders of the Notes shall have any right in any manner whatever by virtue of or by availing of any provision of this Indenture, of the Notes or of the Note Guarantees to affect, disturb or prejudice the rights of any
other Holder of such Notes or to obtain or seek to obtain priority over or preference as to any other such Holder, or to enforce any right under this Indenture, the Notes or the Note Guarantees, except in the manner herein provided and for the
equal, ratable and common benefit of all Holders of Notes. 
  
 Notwithstanding any other provisions in this Indenture, the right of any Holder of any Note to receive payment of the principal of and interest, if any, and Liquidated Damages, if any, on such Note, on or after the respective due dates
expressed in this Indenture and such Note, to institute suit for the enforcement of any such payment or any right to convert on or after such respective dates or to convert its Notes in accordance with the Indenture is absolute and unconditional and
shall not be impaired or affected without the consent of such Holder. 
  
 SECTION 10.5. Proceedings by Trustee. In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as
the Trustee shall deem necessary to protect and enforce any of such rights, either by suit in equity or by action at law or by proceedings in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in
this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law. 
  
 SECTION 10.6. Remedies Cumulative and Continuing. All powers and remedies given by this Article X to the Trustee or
to the Holders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available to the Trustee or the Holders, by judicial proceedings or otherwise, to enforce the performance
or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of any Holder to exercise any right or power accruing upon any Default occurring and continuing as aforesaid shall impair any such
right or power, or shall be construed to be a waiver of any such Default or an acquiescence therein; and, subject to the provisions of Section 10.4, every power and remedy given by this Article X or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders, respectively. 
  

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 SECTION 10.7. Direction of Proceedings; Waiver of Defaults by Majority of Holders. Subject to
Sections 10.4 and 14.2, the Holders of a majority in aggregate principal amount of the Notes then outstanding shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee with respect to the Notes; provided, however, that (subject to the provisions of Section 11.1) the Trustee shall have the right to decline to follow any such direction if the
Trustee shall determine upon advice of counsel that the action or proceeding so directed may not lawfully be taken or is in conflict with this Indenture or if the Trustee in good faith by its board of directors, its executive committee, or a trust
committee of directors or Responsible Officers or both shall determine that the action or proceeding so directed would involve the Trustee in personal liability or would be unduly prejudicial to the rights of the other Holders of the Notes. The
Holders of a majority in aggregate principal amount of the Notes then outstanding may on behalf of the Holders of all of the Notes waive any past Default or Event of Default hereunder and its consequences (including acceleration and any related
payment Default from such acceleration) except a Default in the payment of interest and Liquidated Damages, if any, on, or the principal of, the Notes or a Default in the compliance with any provision hereunder that cannot be amended or supplemented
pursuant to Article XIV without the consent of each Holder of Notes affected. For the avoidance of doubt, nothing in this Section 10.7 shall affect the annulment and rescission of acceleration under Section 10.1. Upon any such waiver the Company,
the Guarantors, the Trustee and the Holders of the Notes shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right
consequent thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by this Section 10.7, said Default or Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been cured and
to be not continuing. 
  
 SECTION 10.8. Notice of Defaults.
The Trustee shall, within 90 days after the occurrence of a Default or Event of Default, with respect to the Notes then outstanding, mail to all Holders of the Notes, as the names and the addresses of such Holders appear upon the Note Register,
notice of all defaults known to the Trustee with respect to the Notes, unless such defaults shall have been cured before the giving of such notice (the term “defaults” for the purpose of this Section 10.8 being hereby defined to be the
events specified in clauses (a), (b), (c), (d), (e), (f), (g), (h), (i), (j) and (k) of Section 10.1, not including periods of grace, if any, provided for therein and irrespective of the giving of the written notice specified in said clause (c), but
in the case of any default of the character specified in said clause (c) no such notice to Holders shall be given until at least 60 days after the giving of written notice thereof to the Company pursuant to said clause (c)); provided,
however, that, except in the case of default in the payment of the principal of or interest or Liquidated Damages, if any, on any of the Notes, the Trustee shall be protected in withholding such notice if and so long as the board of
directors, the executive committee, or a trust committee of directors or Responsible Officers or both of the Trustee in good faith determines that the withholding of such notice is in the best interests of the Holders. 
  
 SECTION 10.9. Undertaking to Pay Costs. All parties to this Indenture
agree, and each Holder of any Note by his acceptance thereof shall be deemed to have agreed, that any 
  

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 court may in its discretion require, 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 Trustee, the filing by any party litigant in such suit of an undertaking to pay the cost of such suit, and that such court may in its discretion assess reasonable costs, including
reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 10.9 shall not apply to
any suit instituted by the Trustee, to any suit instituted by any Holder or group of Holders, holding in the aggregate more than 10% in aggregate principal amount of the Notes then outstanding, or to any suit instituted by any Holders for the
enforcement of the payment of the principal of or interest, if any, on any Note against the Company on or after the due date thereto expressed in such Note. 
  
 ARTICLE XI 
  
 TRUSTEE 
  
 SECTION 11.1. Duties of Trustee. 
  
 (a) If an
Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent Person would exercise or use under the
circumstances in the conduct of such Person’s own affairs; provided, to the extent permitted by the TIA, that if an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or
powers under this Indenture at the request or direction of any of the Holders unless such Holders have provided the Trustee indemnity or security reasonably satisfactory to the Trustee against loss, liability or expense. 
  
 (b) Except during the continuance of an Event of Default: 
  
 (i) the Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
  

(ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates, directions, notices or opinions furnished to the Trustee. However, in the case of any such certificates, directions, notices or opinions which by any provisions hereof are specifically required
to be furnished to the Trustee, the Trustee shall examine such 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 liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
  
 (i) this paragraph does not limit the effect of paragraph (b) of this Section; 
  

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 (ii) the Trustee shall 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 
  
 (iii) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 10.4. 
  
 (d) The Trustee shall
not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. 
  
 (e) Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
  
 (f) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to it. 
  
 (g) Every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 11.1 and to the provisions of the
TIA. 
  
 (h) The Trustee shall 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 shall have provided to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses
(including reasonable attorneys’ fees and expenses) and liabilities that might be incurred by it in compliance with such request or direction. 
  
 SECTION 11.2. Rights of Trustee. 
  
 (a) The Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any paper or document believed by it to be genuine
and to have been signed or presented by the proper Person or Persons. 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. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on the Officers’ Certificate or Opinion of Counsel. 
  
 (c) The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any attorney or agent appointed
with due care. 
  

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 (d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it
believes to be authorized or within its rights or powers; provided, however, that the Trustee’s conduct does not constitute willful misconduct or negligence. 
  
 (e) The Trustee may consult with counsel of its selection, and the advice or opinion of such counsel appointed with due care
with respect to legal matters relating to this Indenture, the Notes and the Note Guarantees shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and
in accordance with the advice or opinion of such counsel. 
  
 (f)
The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, notice, request, direction, consent, order, bond or other paper or document; but the Trustee,
in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and
premises of the Company at reasonable times, in a reasonable manner and upon reasonable advance notice, personally or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of
such inquiry or investigation. 
  
 (g) The Trustee shall not be
deemed to have knowledge of any Default or Event of Default except, (i) during any period it is serving as Registrar and Paying Agent for the Notes, any Event of Default occurring pursuant to Sections 10.1(a), 10.1(b) or 10.1(i) or (ii) any Default
or Event of Default of which a Responsible Officer shall have received written notification or obtained actual knowledge. The term “actual knowledge” shall mean the actual fact or statement of knowing by a Responsible Officer without
independent investigation with respect thereto. 
  
 (h) Delivery
of the 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). 
  
 (i) In no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any
kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
  
 (j) The rights, privileges, protections, immunities and benefits given to the
Trustee, including its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder. 
  
 (k) The Trustee may request that the Company deliver an Officers’
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. 
  

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 SECTION 11.3. 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 its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, co-registrar or co-paying agent may do the same with like
rights. However, the Trustee must comply with Sections 11.10 and 11.11. In addition, the Trustee shall be permitted to engage in transactions with the Company; provided, however, that if the Trustee acquires any conflicting interest
(as such term is defined in Section 310(b) of the TIA) the Trustee must (i) eliminate such conflict within 90 days of acquiring such conflicting interest, (ii) apply to the Commission for permission to continue acting as Trustee or (iii) resign as
Trustee hereunder. 
  
 SECTION 11.4. Trustee’s
Disclaimer. The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Notes or the Note Guarantees, it shall not be accountable for the Company’s use of the Notes or the
proceeds from the Notes, and it shall not be responsible for any statement of the Company or any Guarantor in this Indenture or in any document issued or offering circular (or similar document) used in connection with the sale of the Notes or in the
Notes other than the Trustee’s certificate of authentication or for the use or application of any funds received by any Paying Agent other than the Trustee. 
  
 SECTION 11.5. Notice of Defaults. If a Default or Event of Default occurs and is continuing and if a Responsible
Officer has actual knowledge thereof, the Trustee shall mail to each Holder 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, or interest on any
Note (including payments pursuant to the required repurchase provisions of such Note, if any), the Trustee may withhold the notice if and so long as its board of directors, a committee of its board of directors or a committee of its Responsible
Officers and/or a Responsible Officer in good faith determines that withholding the notice is in the interests of registered Holders. 
  
 SECTION 11.6. Reports by Trustee to Holders. As promptly as practicable after each March 15 beginning with the March 15 following the date of this
Indenture, and in any event prior to December 15 in each year, the Trustee shall mail to each Holder a brief report dated as of such March 15 that complies with TIA § 313(a), if and to the extent such report may be required by the TIA. The
Trustee also shall comply with TIA § 313(b). The Trustee shall also transmit by mail all reports required by TIA § 313(c). 
  
 A copy of each report at the time of its mailing to Holders shall be filed with the Commission and each stock exchange (if any) on which the Notes are
listed. The Company agrees to notify promptly the Trustee in writing whenever the Notes become listed on any stock exchange and of any delisting thereof. 
  
 SECTION 11.7. Compensation and Indemnity. The Company and each Guarantor covenant and agree: (a) to pay to the Trustee from time to time, and the
Trustee shall be entitled to such compensation for all services rendered by it hereunder as shall be agreed by the Company and the Trustee in writing (which shall not be limited by any provision of law in regard 
  

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 to the compensation of a trustee of an express trust); (b) to reimburse the Trustee and each predecessor Trustee upon its
request for all reasonable expenses, fees, disbursements and advances incurred or made by or on behalf of it in accordance with any of the provisions of this Indenture (including the reasonable compensation, fees, and the expenses and disbursements
of its counsel and of all agents and other Persons not regularly in its employ), except any such expense, disbursement or advance as may arise from its negligence or bad faith; and (c) to indemnify the Trustee and each predecessor Trustee for, and
to hold it harmless against, any loss, liability, damage, claim or expense, including taxes, if any (other than taxes based upon, determined by or measured by the income of the Trustee), incurred without negligence or bad faith on its part, arising
out of or in connection with the acceptance or administration of this Indenture or the trusts hereunder and its duties hereunder, including enforcement of this Section 11.7. The obligations of the Company and each Guarantor under this Section to
compensate and indemnify the Trustee and each predecessor Trustee and to pay or reimburse the Trustee and each predecessor Trustee for expenses, fees, disbursements and advances shall constitute an additional obligation hereunder and shall survive
the satisfaction and discharge of this Indenture, the resignation or removal of the Trustee or the termination of this Indenture. To secure the obligations of the Company and of each Guarantor to the Trustee under this Section 11.7, the Trustee
shall have a prior Lien upon all property and funds held or collected by the Trustee as such, except funds and property paid by the Company or any Guarantor and held in trust for the benefit of the Holders of particular Notes. 
  
 SECTION 11.8. Replacement of Trustee. The Trustee may resign at any
time by so notifying the Company. The Holders of a majority in principal amount of the Notes may remove the Trustee by so notifying the Company and the Trustee in writing and the Company may appoint a successor Trustee. The Company shall remove the
Trustee if: 
  
 (i) the Trustee fails to comply
with Section 11.10; 
  
 (ii) the Trustee is
adjudged bankrupt or insolvent; 
  
 (iii) a
receiver or other public officer takes charge of the Trustee or its property; or 
  
 (iv) the Trustee otherwise becomes incapable of acting. 
  
 If the Trustee resigns or is removed by the Company or by the Holders of a majority in principal amount of the Notes and the
Company does not reasonably promptly appoint a successor Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Holders of a majority in aggregate
principal amount of the Notes may appoint a successor Trustee. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee,
subject to the Lien provided for in Section 11.7. 
  

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 If the Company has not appointed a successor Trustee within 60 days after the retiring Trustee resigns or
is removed, the retiring Trustee or the Holders of 10% in principal amount of the Notes may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 If the Trustee fails to comply with Section 11.10, unless the Trustee’s
duty to resign is stayed as provided in TIA § 310(b), any Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 Notwithstanding the replacement of the Trustee pursuant to this Section 11.8,
the Company’s obligations under Section 11.7 shall continue for the benefit of the retiring Trustee. 
  
 SECTION 11.9. Successor Trustee by Merger. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee. 
  
 In case at the time such successor or successors by merger, conversion or
consolidation to the Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor
trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated, any successor to the Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of
the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate of the Trustee shall have. 
  
 SECTION 11.10. Eligibility; Disqualification. There shall at all times
be a Trustee hereunder which shall be eligible to act as Trustee under Trust Indenture Act Sections 310(a)(1) and (2) and which shall have a combined capital and surplus of at least $100,000,000, and have a Corporate Trust Office in the Borough of
Manhattan in The City of New York, State of New York. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of any federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect hereinafter specified in this Article. 
  
 SECTION 11.11. Preferential Collection of Claims Against Company. If
and when the Trustee shall be or become a creditor of the Company, the Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to TIA
§ 311(a) to the extent indicated. 
  

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 ARTICLE XII 
  
 GUARANTEE OF NOTES 
  
 SECTION 12.1. Unconditional Guarantee. 
  
 Each Guarantor hereby jointly and severally fully and 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 or any other Guarantor to the Holders and Liquidated Damages, if any of the Trustee
hereunder or thereunder, that: (a) the principal of, premium, if any and interest on the Notes will be duly and punctually paid in full when due, whether at Stated Maturity, by acceleration or otherwise, and interest on the overdue principal and (to
the extent permitted by law) interest, if any, on the Notes and all other obligations of the Company or the Guarantor to the Holders or the Trustee hereunder or thereunder (including fees, expenses or other) and all other Indenture Obligations will
be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and (b) in case of any extension of time of payment or renewal of any Notes or any of such other Indenture Obligations, 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. Failing payment when due of any amount so guaranteed, or failing performance of any other obligation of
the Company to the Holders, for whatever reason, each Guarantor shall be obligated to pay, or to perform or cause the performance of, the same immediately. An Event of Default under this Indenture or the Notes shall constitute an event of default
under this Guarantee, and shall entitle the Holders of Notes to accelerate the obligations of the Guarantor hereunder in the same manner and to the same extent as the obligations of the Company. 
  
 Each Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or
thereof, any release of any other Guarantor, the recovery of any judgment against the Company, any action to enforce the same, whether or not a Note Guarantee is affixed to any particular Note, or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor. 
  
 Each Guarantor hereby waives the benefit of 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 covenants that its Note Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, this Indenture and this Note Guarantee. This Note Guarantee is a
guarantee of payment and not of collection. If any Holder or the Trustee is required by any court or otherwise to return to the Company or to any Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to the
Company or such Guarantor, any amount paid by the Company or such Guarantor to the Trustee or such Holder, 
  

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 this Note Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. Each Guarantor
further agrees that, as between it, on the one hand, and the Holders of Notes and the Trustee, on the other hand, (a) subject to this Article XII, the maturity of the obligations guaranteed hereby may be accelerated as provided in Article X 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 (b) in the event of any acceleration of such obligations as provided
in Article X hereof, such obligations (whether or not due and payable) shall forthwith become due and payable by the Note Guarantor for the purpose of this Guarantee. 
  
 SECTION 12.2. Execution and Delivery of Note Guarantee. 
  
 To further evidence the Note Guarantee set forth in Section 12.1, each
Guarantor hereby agrees that a notation of such Note Guarantee shall be endorsed on each Note authenticated and delivered by the Trustee and executed by either manual or facsimile signature of an Officer of each Guarantor. 
  
 Each of the Guarantors hereby agrees that its Note Guarantee set forth in
Section 12.1 shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Note Guarantee. 
  
 If an Officer of a Guarantor whose signature is on this Indenture or a Note Guarantee no longer holds that office at the time the Trustee authenticates
such Note or at any time thereafter, such Guarantor’s Note Guarantee of such Note shall be valid nevertheless. 
  
 The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of any Note Guarantee set forth in this
Indenture on behalf of each Guarantor. 
  
 SECTION 12.3.
Additional Guarantors. Any Person that was not a Guarantor on the date of this Indenture may become a Guarantor by executing and delivering to the Trustee (a) a supplemental indenture in form and substance satisfactory to the Trustee, which
subjects such Person to the provisions (including the representations and warranties) of this Indenture as a Guarantor, and (b) an Opinion of Counsel to the effect that such supplemental indenture has been duly authorized and executed by such Person
and constitutes the legal, valid and binding obligation of such Person (subject to such customary assumptions and exceptions as may be acceptable to the Trustee in its reasonable discretion). 
  
 SECTION 12.4. Release of a Guarantor. (a) Upon the sale, exchange,
transfer or other disposition (by merger or otherwise), other than a lease, of all of the Capital Stock of a Guarantor or all, or substantially all, the assets of such Guarantor pursuant to a transaction complying with the terms of this Indenture,
to any Person that is not an Affiliate of the Company, and which sale or other disposition is otherwise in compliance with the terms of this Indenture or (b) at the request of the Company, in the event that the lenders under the Credit Facility
unconditionally release such Guarantor from its guarantee obligations under such Credit Facility, such Guarantor shall be deemed automatically and unconditionally released and discharged from all obligations under this Article XII without any
further action required on the part of the Trustee or 
  

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 any Holder. The Trustee shall deliver an appropriate instrument evidencing such release upon receipt of a request of the
Company accompanied by an Officers’ Certificate certifying as to the compliance with this Section. Any Guarantor not so released will remain liable for the full amount of principal of, premium, if any, and interest on the Notes as provided in
this Article XII. 
  
 SECTION 12.5. Waiver of Subrogation.
Until this Indenture is discharged and all of the Notes are discharged and paid in full, each Guarantor hereby irrevocably waives and agrees not to exercise any claim or other rights which it may now or hereafter acquire against the Company that
arise from the existence, payment, performance or enforcement of the Company’s obligations under the Notes or this Indenture and such Guarantor’s obligations under this Note Guarantee and this Indenture, in any such instance including,
without limitation, any right of subrogation, reimbursement, exoneration, contribution, indemnification, and any right to participate in any claim or remedy against the Company, whether or not such claim, remedy or right arises in equity, or under
contract, statute or common law, including, without limitation, the right to take or receive from the Company, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim or
other rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence and any amounts owing to the Trustee or the Holders of Notes under the Notes, this Indenture, or any other document or instrument delivered under or in
connection with such agreements or instruments, shall not have been paid in full, such amount shall have been deemed to have been paid to such Guarantor for the benefit of, and held in trust for the benefit of, the Holders of the Notes, and shall
forthwith be paid to the Trustee for the benefit of such Holders to be credited and applied to the Notes, whether matured or unmatured, in accordance with the terms of this Indenture. Each Guarantor acknowledges that it will receive direct and
indirect benefits from the financing arrangements contemplated by this Indenture and that the waiver set forth in this Section 12.5 is knowingly made in contemplation of such benefits. 
  
 SECTION 12.6. Reliance on Judicial Order or Certificate of Liquidating Agent Regarding Dissolution, etc. of
Guarantors. Upon any payment or distribution of assets of any Guarantor referred to in this Article XII, the Trustee, subject to the provisions of Section 11.1, and the Holders, shall be entitled to rely upon any order or decree entered by any
court of competent jurisdiction in which such insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution, winding-up or similar case or proceeding is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person making such payment or distribution, delivered to the Trustee or to the Holders, for the purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XII; provided, however, that the foregoing shall apply only if such court has been fully
apprised of the provisions of this Article XII. 
  
 SECTION 12.7.
Article XII Applicable to Paying Agents. In case at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term “Trustee” as used in this Article XII shall in such
case (unless the context 
  

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 otherwise requires) be construed as extending to and including such Paying Agent within its meaning as fully for all
intents and purposes as if such Paying Agent were named in this Article XII in addition to or in place of the Trustee. 
  
 SECTION 12.8. No Suspension of Remedies. Nothing contained in this Article XII shall limit the right of the Trustee or the Holders of Notes to take
any action to accelerate the maturity of the Notes pursuant to Article X or to pursue any rights or remedies hereunder or under applicable law. 
  
 SECTION 12.9. Limitation of Subsidiary Guarantor’s Liability. Each Guarantor that is a Subsidiary of the Company, and by its acceptance hereof
each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee by such Guarantor pursuant to its Note Guarantee not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law. To effectuate the foregoing intention, the Holders and such Guarantor hereby irrevocably agree that the obligations of such Guarantor under this Note
Guarantee shall be limited to the maximum amount which, after giving effect to all other contingent and fixed liabilities of such Guarantor, and after giving effect to any collections from or payments made by or on behalf of, any other Guarantor in
respect of the obligations of such other Guarantor under its Note Guarantee or pursuant to its contribution obligations under this Article XII, will result in the obligations of such Guarantor under its Note Guarantee not constituting such
fraudulent transfer or conveyance. 
  
 SECTION 12.10.
Contribution from Other Guarantors. Each Guarantor that makes a payment or distribution under its Guarantee shall be entitled to a contribution from each other Guarantor in a pro rata amount based on the net assets of each Guarantor,
determined in accordance with GAAP. 
  
 SECTION 12.11.
Obligations Reinstated. The obligations of each Guarantor hereunder shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment which would otherwise have reduced the obligations of any Guarantor
hereunder (whether such payment shall have been made by or on behalf of the Company or by or on behalf of a Guarantor) is rescinded or reclaimed from any of the Holders upon the insolvency, bankruptcy, liquidation or reorganization of the Company or
any Guarantor or otherwise, all as though such payment had not been made. If demand for, or acceleration of the time for, payment by the Company is stayed upon the insolvency, bankruptcy, liquidation or reorganization of the Company, all such
Indebtedness otherwise subject to demand for payment or acceleration shall nonetheless be payable by each Guarantor as provided herein. 
  
 SECTION 12.12. No Obligation To Take Action Against the Company. Neither the Trustee nor any other Person shall have any obligation to enforce or
exhaust any rights or remedies or to take any other steps under any security for the Indenture Obligations or against 
  

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 the Company or any other Person or any property of the Company or any other Person before the Trustee is entitled to
demand payment and performance by any or all Guarantors of their liabilities and obligations under their Note Guarantees or under this Indenture. 
  
 SECTION 12.13. Dealing with the Company and Others. The Holders, without releasing, discharging, limiting or otherwise affecting in whole or in
part the obligations and liabilities of any Guarantor hereunder and without the consent of or notice to any Guarantor, may: 
  
 (a) grant time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to the Company or any other Person;

  
 (b) take or abstain from taking security or collateral from
the Company or from perfecting security or collateral of the Company; 
  
 (c) release, discharge, compromise, realize, enforce or otherwise deal with or do any act or thing in respect of (with or without consideration) any and all collateral, mortgages or other security given by the Company or any third party
with respect to the obligations or matters contemplated by this Indenture or the Notes; 
  
 (d) accept compromises or arrangements from the Company; 
  
 (e) apply all monies at any time received from the Company or from any security upon such part of the Indenture Obligations as the Holders may see fit or change any such application in whole or in part from time to
time as the Holders may see fit; and 
  
 (f) otherwise deal with,
or waive or modify their right to deal with, the Company and all other Persons and any security as the Holders or the Trustee may see fit. 
  

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 ARTICLE XIII 
  
 SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS 
  
 SECTION 13.1. Satisfaction and Discharge of Indenture. If at any time
(a) the Company shall have paid or caused to be paid the principal of and interest and Liquidated Damages, if any, on all the Notes outstanding (other than Notes which have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 2.8) as and when the same shall have become due and payable, or (b) the Company shall have delivered to the Trustee for cancellation all Notes theretofore authenticated (other than Notes which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 2.8); and if, in any such case, the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect, and
the Trustee, on demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent relating to the satisfaction and discharge contemplated by this provision have been complied
with, and at the cost and expense of the Company, shall execute proper instruments acknowledging such satisfaction and discharging this Indenture. The Company and each of the Guarantors, jointly and severally, agrees to reimburse the Trustee for any
costs or expenses thereafter reasonably and properly incurred, and to compensate the Trustee for any services thereafter reasonably and properly rendered, by the Trustee in connection with this Indenture or the Notes. 
  
 If at any time the exact amount described in clause (ii) below can be
determined at the time of making the deposit referred to in such clause (ii), (i) all of the Notes not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and (ii) (a) the Company or any of the Guarantors shall have irrevocably deposited or caused to be
deposited with the Trustee as funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of the Notes, cash in an amount (other than moneys repaid by the Trustee or any Paying Agent to the Company in
accordance with Section 13.4) or U.S. Government Obligations, maturing as to principal and interest, if any, at such times and in such amounts as will insure the availability of cash or securities sufficient in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay the principal of and interest, if any, on all of the Notes on each date that such principal or interest, if any, is due and payable
in accordance with the terms of this Indenture and the Notes, and (b) the Company or any of the Guarantors has paid or caused to be paid all other sums payable hereunder by the Company; then the Company and the Guarantors shall be deemed to have
paid and discharged the entire indebtedness on all the Notes and the related Note Guarantees on the date of the deposit referred to in this clause (ii), and the provisions of this Indenture with respect to the Notes and the Note Guarantees shall no
longer be in effect (except as to (i) rights of registration of transfer and exchange of Notes, (ii) substitution of mutilated, defaced, destroyed, lost or stolen Notes, (iii) rights of Holders of Notes to receive payments of principal thereof and
interest, if any, thereon upon the original stated due dates therefor (but not upon acceleration), (iv) the rights, obligations, duties and immunities of the Trustee hereunder, (v) the rights of the Holders of Notes as beneficiaries hereof with
respect to the property so deposited 
  

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 with the Trustee payable to all or any of them, (vi) rights of Holders of Notes to convert the Notes pursuant to Article
IX and (vii) the obligations of the Company under Section 3.3 with respect to the Notes), and the Trustee, on demand of the Company or any Guarantor accompanied by an Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent contemplated by this provision have been complied with, and at the cost and expense of the Company or any Guarantor, shall execute proper instruments acknowledging such satisfaction and discharging such Indebtedness. 

 
 SECTION 13.2. Application by Trustee of Funds Deposited for Payment of
Notes. All moneys deposited with the Trustee or any Paying Agent shall be held in trust and applied by it to the payment, either directly or through any Paying Agent (including the Company acting as its own paying agent), to the Holders of the
Notes for the payment or redemption of which such moneys have been deposited with the Trustee, of all sums due and to become due thereon for principal and interest, if any, but such money need not be segregated from other funds except to the extent
required by law. 
  
 SECTION 13.3. Repayment of Moneys Held by
Paying Agent. In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any Paying Agent under the provisions of this Indenture with respect to the Notes shall, upon demand of the
Company, be repaid to it and thereupon such Paying Agent shall be released from all further liability with respect to such moneys. 
  
 SECTION 13.4. Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years. Any moneys deposited with or paid to the Trustee or any
Paying Agent for the payment of the principal of or interest, if any, on the Notes and not applied but remaining unclaimed for two years after the date upon which such principal or interest, if any, shall have become due and payable, shall, upon the
written request of the Company and unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Company by the Trustee or such Paying Agent, and the Holder of the Notes shall,
unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Company and the Guarantors for any payment which such Holder may be entitled to collect, and all liability
of the Trustee or any Paying Agent with respect to such moneys shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment with respect to moneys deposited with it
for any payment in respect of the Notes, shall, at the expense of the Company, mail by first-class mail to Holders of the Notes at their addresses as they shall appear on the Note register notice that such moneys remain and that, after a date
specified therein, which shall not be less than 30 days from the date of such mailing or publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
  
 SECTION 13.5. Indemnity for U.S. Government Obligations. The Company and each of the Guarantor, jointly and severally
agree to pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited pursuant to Section 13.1 or the principal or interest received in respect of such obligations.

  

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 ARTICLE XIV 
  
 SUPPLEMENTAL INDENTURES AND AMENDMENTS 
  
 SECTION 14.1. Without Consent of Holders. Without the consent of any Holders, the Company and the Guarantors, when
authorized by a Board Resolution of the Company and each Guarantor, and the Trustee, at any time and from time to time, may amend, waive, modify or supplement this Indenture or the Notes or the Note Guarantees for any of the following purposes:

  
 (a) to cure any ambiguity, omission, defect or inconsistency;

  
 (b) to provide for the assumption by a Successor Company of
the Company’s obligations under this Indenture and the Notes; 
  
 (c) to provide for uncertificated Notes in addition to or in place of certificated Notes; 
  
 (d) to secure the Notes or to provide guarantees of the Notes; 
  
 (e) to comply with any requirements to effect or maintain the qualification of this Indenture under the TIA; 
  
 (f) to add covenants that would benefit the Holders of the Notes or to
surrender any rights of the Company under this Indenture; 
  
 (g)
to add a Guarantor pursuant to the requirements of Section 3.15 hereof or otherwise; 
  
 (h) to add Events of Default with respect to the Notes; 
  
 (i) to make any change that does not adversely affect any outstanding Notes in any material respect; or 
  
 (j) to evidence and provide for the acceptance of the appointment of a successor Trustee hereunder. 
  
 SECTION 14.2. With Consent of Holders. With the written consent of the
Holders of not less than a majority in aggregate principal amount of the Outstanding Notes delivered to the Company, each Guarantor and the Trustee, the Company and each Guarantor (if a party thereto) when authorized by a Board Resolution, together
with the Trustee, may amend, waive, modify or supplement any other provision of this Indenture or the Notes or the Note Guarantees; provided, however, that no such amendment, waiver, modification or supplement may, without the written consent of the
Holder of each Outstanding Note affected thereby: 
  
 (a) reduce
the rate of accrual of interest or Liquidated Damages or modify the method for calculating interest or Liquidated Damages or change the time for payment of interest or Liquidated Damages on the Notes; 
  

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 (b) modify the provisions with respect to a Holder’s rights upon a Fundamental Change in a manner
adverse to the Holders of the Notes, including the Company’s obligations to repurchase the Notes following a Fundamental Change; 
  
 (c) reduce the principal amount of Notes or change their Stated Maturity; 
  
 (d) reduce the Redemption Price or Repurchase Price of the Notes or change the time at which the Notes may or must be
redeemed or repurchased; 
  
 (e) make payments on the Notes
payable in currency other than as originally stated in the Notes; 
  
 (f) impair the Holder’s right to institute suit for the enforcement of any payment on the Notes; 
  
 (g) make any change in the percentage of principal amount of Notes necessary to waive compliance with provisions of this Indenture or to make any change
to this Section 14.2 or Section 14.3; 
  
 (h) waive a Default or
Event of Default in the payment of principal of premium, if any, interest or Liquidated Damages, if any, on the Notes (except a rescission of acceleration of the Notes by the Holders thereof as provided in this Indenture and a waiver of the payment
default that resulted from such acceleration); 
  
 (i) adversely
affect the conversion or repurchase provisions of the Notes; 
  
 (j) modify the ranking or priority of any Note or the Note Guarantee in respect thereof of any Guarantor in any manner adverse to the Holders of the Notes; or 
  
 (k) release any Guarantor from any of its obligations under its Note Guarantee or this Indenture otherwise than in
accordance with this Indenture. 
  
 Upon the written request of
the Company and each Guarantor accompanied by a copy of a Board Resolution of the Board of Directors of each of them authorizing the execution of any such supplemental indenture or other agreement, instrument or waiver, and upon the filing with the
Trustee of evidence of the consent of Holders as aforesaid, the Trustee shall join with the Company and each Guarantor in the execution of such supplemental indenture or other agreement, instrument or waiver. 
  
 It shall not be necessary for any act of Holders under this Section to
approve the particular form of any proposed supplemental indenture or other agreement, instrument or waiver, but it shall be sufficient if such act shall approve the substance thereof. 
  

 83 

 SECTION 14.3. Execution of Supplemental Indentures, Agreements and Waivers. In executing, any
supplemental indenture, agreement, instrument or waiver permitted by this Article XIV or the modifications thereby of the Indenture, the Trustee shall be entitled to receive, and (subject to Section 11.1 hereof) shall be fully protected in relying
upon, an Opinion of Counsel and an Officer’s Certificate from each obligor under the Notes entering into such supplemental indenture, agreement, instrument or waiver, each stating that the execution of such supplemental indenture, agreement,
instrument or waiver (a) is authorized or permitted by this Indenture and (b) does not violate the provisions of any agreement or instrument evidencing any other Indebtedness of the Company, any Guarantor or any other Subsidiary of the Company. The
Trustee may, but shall not be obligated to, enter into any such supplemental indenture, agreement, instrument or waiver which affects the Trustee’s own rights, duties or immunities under this Indenture, the Notes, any Note Guarantee or
otherwise. 
  
 SECTION 14.4. Effect of Supplemental
Indentures. Upon the execution of any supplemental indenture under this Article XIV, this Indenture, the Notes, if applicable, and/or the applicable Note Guarantee shall be modified in accordance therewith, and such supplemental indenture shall
form a part of this Indenture, the Notes, if applicable, and/or the applicable Note Guarantee, as the case may be, for all purposes; and every Holder of Notes theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

  
 SECTION 14.5. Compliance with Trust Indenture Act.
Every supplemental indenture or amendment to this Indenture or the Notes shall comply with the TIA as then in effect. 
  
 SECTION 14.6. Reference in Notes to Supplemental Indentures. Notes authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Notes so modified as to conform,
in the opinion of the Trustee and the Board of Directors of the Company, to any such supplemental indenture may be prepared and executed by the Company and each Guarantor and authenticated and delivered by the Trustee upon a Company Order in
exchange for Outstanding Notes. 
  
 SECTION 14.7. Revocation
and Effect of Consents and Waivers. A consent to an amendment or a waiver by a Holder of a Note shall bind the Holder and every subsequent Holder of that Note or portion of the Note that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent or waiver is not made on the Note. However, any such Holder or subsequent Holder may revoke the consent or waiver as to such Holder’s Note or portion of the Note if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall bind every Holder. An amendment or waiver made pursuant to Section 14.2 shall become effective upon receipt by the Trustee
of the requisite number of written consents. 
  
 The Company may,
but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is
fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders at such 
  

 84 

 record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to
revoke any consent previously given or to take any such action, whether or not such Persons continue to be Holders after such record date. No such consent shall become valid or effective more than 120 days after such record date. 
  
 SECTION 14.8. Notation on or Exchange of Notes. If an amendment
changes the terms of a Note, the Trustee may require the Holder of the Note to deliver it to the Trustee. The Trustee may place an appropriate notation on the Note regarding the changed terms and return it to the Holder. Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. Failure to make the appropriate notation or to issue a new Note shall not affect
the validity of such amendment. 
  
 ARTICLE XV 

 
 MISCELLANEOUS 
  
 SECTION 15.1. Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the TIA, the provision required by the TIA shall control. 
  
 SECTION 15.2. Notices. Any notice or communication shall be in writing and delivered in person or mailed by
first-class mail addressed as follows: 
  
 If to
the Company or any Guarantor: 
  
 Saks
Incorporated 
 750 Lakeshore Parkway, 
 Birmingham, Alabama 35211, 
 Attention: Charles J. Hansen 
 Facsimile No.: (205) 940-4468 
  
 With copies to: 
  
 Alston & Bird LLP 
 90 Park Avenue 
 New York, New York 10016 
 Attention: Mark F. McElreath 
 Facsimile No.: (212) 210-9444 
  

 85 

 If to the Trustee: 
  
 The Bank of New York Trust Company, N.A. 
 505 North 20th Street 
 Suite 950 
 Birmingham, Alabama 35203 
 Facsimile No.: (205) 328-7169 
  
 The Company and the Guarantors on one hand or the Trustee on the other hand by notice to the other may designate additional or different addresses for subsequent notices or communications. 
  
 Any notice or communication mailed to a Holder shall be mailed to the Holder
at the Holder’s address as it appears on the Note Register and shall be sufficiently given if so mailed within the time prescribed. Notices shall be deemed to have been given as of the date of mailing. 
  
 Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
  
 SECTION 15.3. Communication by Holders with Other Holders. Holders may
communicate pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or the Notes. The Trustee shall comply with TIA § 312(b). The Company, the Guarantors, the Trustee, the Registrar and anyone else
shall have the protection of TIA § 312(c). 
  
 SECTION 15.4.
Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company or any Guarantor to the Trustee to take or refrain from taking any action under this Indenture, the Company or the Guarantor, as the case may
be, shall furnish to the Trustee such certificates and opinions as may be required under the TIA. Each such certificate or opinion shall be given in the form of one or more Officers’ Certificates, if to be given by an Officer, or an Opinion of
Counsel, if to be given by counsel, and shall comply with the requirements of the TIA and any other requirements set forth in this Indenture. Notwithstanding the foregoing, in the case of any such request or application as to which the furnishing of
any Officers’ Certificate or Opinion of Counsel is specifically required by any provision of this Indenture relating to such particular request or application, no additional certificate or opinion need be furnished. 
  
 SECTION 15.5. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a covenant or condition provided for in this Indenture (except for certificates provided for in Section 4.1(c)) shall include: 
  
 (1) a statement that the individual making such certificate or opinion has read such covenant or condition;

  

 86 

 (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 individual, he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (4) a statement as to whether or not, in the opinion of such individual, such covenant or condition has been complied with. 
  
 In giving an Opinion of Counsel, counsel may rely as to factual matters on an
Officers’ Certificate or such other certificates of Officer(s) as it may deem appropriate and on certificates of public officials. 
  
 SECTION 15.6. When Notes Disregarded. 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 by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company shall be disregarded and deemed not to be outstanding, except that, for
the purpose of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes which a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded. Also, subject to the
foregoing, only Notes outstanding at the time shall be considered in any such determination. 
  
 SECTION 15.7. Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable rules for action by, or a meeting of, Holders. The Registrar and the Paying Agent may make reasonable rules for their
functions. 
  
 SECTION 15.8. Governing Law. This Indenture,
the Notes and the Note Guarantees shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 SECTION 15.9. No Recourse Against Others. No recourse for the payment of the principal of, or interest (including Liquidated Damages,
if any) on any Note and no recourse under or upon any obligation, covenant, agreement of the Company or of a Guarantor in this Indenture, the Notes, the Guarantees or in any supplemental indenture, or because of the creation of any Indebtedness
represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer, director, or subsidiary, past, present or future, of the Company or of any successor corporation or entity, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, it being understood that all such liability is hereby waived and released as a condition to, and as a consideration for, the execution and delivery of this
Indenture and the issue of the Notes. 
  

 87 

 SECTION 15.10. Successors. All agreements of the Company and the Guarantors in this Indenture and
the Notes shall bind its successors. All agreements of the Trustee in this Indenture shall bind its successors. 
  
 SECTION 15.11. Multiple Originals. The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One signed copy is enough to prove this Indenture. 
  
 SECTION 15.12. Variable Provisions. The Company and the Guarantors initially appoints the Trustee as Paying Agent and Registrar and custodian with respect to any Global Notes. 
  
 SECTION 15.13. Qualification of Indenture. The Company and the
Guarantors shall qualify this Indenture under the TIA in accordance with the terms and conditions of the Registration Rights Agreement and shall pay all reasonable costs and expenses (including attorneys’ fees and expenses for the Company and
the Trustee) incurred in connection therewith, including, but not limited to, costs and expenses of qualification of the Indenture and the Notes and printing this Indenture and the Notes. The Trustee shall be entitled to receive from the Company any
such Officers’ Certificates, Opinions of Counsel or other documentation as it may reasonably request in connection with any such qualification of this Indenture under the TIA. 
  

 88 

 SIGNATURES 
  

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as of the date first written above. 
  

			
	 Saks Incorporated

		
	 By
	 	 /s/ C. Wes Burton, Jr.

	 Name:
	 	 C. Wes Burton, Jr.

	 Title:
	 	 Vice President-Treasurer

	
	 Carson Pirie Holdings, Inc.

	 Herberger’s Department Stores, LLC

	 Jackson Leasing LLC

	 McRae’s of Alabama, Inc.

	 McRae’s Stores Services, Inc.

	 McRae’s, Inc.

	 McRIL, LLC

	 New York City Saks, LLC

	 NorthPark Fixtures, Inc.

	 Parisian, Inc.

	 Saks Direct, Inc.

	 Saks Distribution Centers, Inc.

	 Saks Fifth Avenue Distribution Company

	 Saks Fifth Avenue of Texas, Inc.

	 Saks Fifth Avenue Texas, L.P.

	 Saks Fifth Avenue, Inc.

	 Saks Holdings, Inc.

	 Saks Wholesalers, Inc.

	 SCCA Store Holdings, Inc.

	 SCIL Store Holdings, Inc.

	 SCIL, LLC

	 SFAILA, LLC

	 Tex SFA, Inc.

		
	 By
	 	 /s/ Charles J. Hansen

	 Name:
	 	 Charles J. Hansen

	 Title:
	 	 Executive Vice President

  

 S-1 

			
	 Merchandise Credit, LLC

	 Saks & Company

		
	 By
	 	 /s/ Charles J. Hansen

	 Name:
	 	 Charles J. Hansen

	 Title:
	 	 Senior Vice President

	
	 SCCA, LLC

		
	 By
	 	 /s/ Charles J. Hansen

	 Name:
	 	 Charles J. Hansen

	 Title:
	 	 President

	
	 PMIN General Partnership

		
	 By:
	 	 Parisian, Inc., its Managing Partner

		
	 By:
	 	 /s/ Charles J. Hansen

	 Name:
	 	 Charles J. Hansen

	 Title:
	 	 Executive Vice President

	
	 McRae’s Stores Partnership

		
	 By:
	 	 McRae’s, Inc., its Managing Partner

		
	 By:
	 	 /s/ Charles J. Hansen

	 Name:
	 	 Charles J. Hansen

	 Title:
	 	 Executive Vice President

  

 S-2 

			
	THE BANK OF NEW YORK TRUST COMPANY, N.A.,
	 as Trustee

		
	 By:
	 	 /s/ Frederick A. Schaal

	 Name:
	 	 Frederick A. Schaal

	 Title:
	 	 Vice President

  

 S-3 

 EXHIBIT A 
  

[FORM OF FACE OF SECURITY] 
  
 THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) (1) TO A
PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT ACQUIRING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE
501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. 
  
 THIS NOTE, ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS CONVERSION AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO
MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS NOTE AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES
GENERALLY. THE HOLDER OF THIS NOTE AND SUCH SHARES OF COMMON STOCK SHALL BE DEEMED BY THE ACCEPTANCE OF THIS NOTE AND ANY SUCH SHARES TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT. 
  

 A-1 

 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DEPOSITARY”), OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS THE OWNER AND HOLDER OF THIS SECURITY
FOR ALL PURPOSES. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY 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 IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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. 
  
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, 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, AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
  

 A-2 

			
	 No. [    ]
	 	Principal Amount $[            ],
	 	 	 as revised by the Schedule of Increases
 and Decreases in the Global Note attached hereto

  
 CUSIP NO. 79377WAK4

  
 Saks Incorporated 
  
 2.00% Convertible Senior Notes due March 15, 2024 
  
 Saks Incorporated, a Tennessee corporation, promises to pay to Cede &
Co., or registered assigns, the principal sum of $[            ] Dollars, as revised by the Schedule of Increases and Decreases in the Global Note attached hereto, on March 15, 2024.

  
 Interest Payment Dates: March 15 and September 15. 

 
 Regular Record Dates: March 1 and September 1. 
  
 Additional provisions of this Note are set forth on the other side of this
Note. 
  

			
	SAKS INCORPORATED
		
	 By:
	 	  

  
 TRUSTEE’S CERTIFICATE OF
AUTHENTICATION 
  
 Dated: 
  

			
	 The Bank of New York Trust Company, N.A., as Trustee, certifies that this is one of the Notes referred to in the within-mentioned
Indenture.

		
	 By:
	 	  

	 	 	 Authorized Signatory

  
  

 A-3 

 [FORM OF REVERSE SIDE OF NOTE] 
  
 2.00% Convertible Senior Notes due March 15, 2024 
  

	1.	Interest 

  
 Saks Incorporated, a Tennessee corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein
called the “Company”), promises to pay interest on the principal amount of this Note at the rate per annum shown above. The Company will pay interest semiannually on March 15 and September 15 of each year. Interest on the Notes will accrue
from the most recent date to which interest has been paid on the Notes or, if no interest has been paid, from March 23, 2004. The Company shall, to the fullest extent permitted by law, pay interest on overdue principal and overdue installments of
interest, if any (plus interest on such interest to the extent lawful), at the rate borne by the Notes, which interest shall be payable upon demand. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  

	2.	Guarantees. 

  
 This Note is initially entitled to the benefits of the certain senior Guarantees of the Guarantors and may thereafter be entitled to certain other senior
Guarantees made for the benefit of the Holders. Reference is hereby made to Article XII of the Indenture and to the Guarantees endorsed on this Note for a statement of the respective rights, limitations of rights, duties and obligations thereunder
of the Guarantors, the Trustee and the Holders. 
  

	3.	Method of Payment 

  
 By no later than 11:00 a.m. (New York City time) on the date on which any principal of or interest on any Note is due and payable, the Company shall
irrevocably deposit with the Trustee or the Paying Agent money sufficient to pay such principal and/or interest. The Company will pay interest (except Defaulted Interest) on the principal amount of the Notes on each March 15 and September 15 to the
Persons who are registered Holders of Notes at the close of business on the March 1 and September 1 next preceding the Interest Payment Date even if Notes are canceled or repurchased after the Regular Record Date and on or before the Interest
Payment Date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United States that at the time of payment is legal tender for payment of public and private
debts. The Company will make all payments in respect of a Definitive Note (including principal and interest) in U.S. dollars at the office of the Trustee. At the Company’s option, however, the Company may make such payments by mailing a check
to the registered address of each Holder thereof as such address shall appear on the Note Register or, with respect to Notes represented by a Global Note, by wire transfer of immediately available funds to the accounts specified by the Depositary.
If a payment date is a date other than a Business Day, payment may be made at that place on the next succeeding day that is a Business Day and no interest shall accrue for the intervening period. 
  

 A-4 

	4.	Paying Agent, Conversion Agent and Registrar 

  
 Initially, The Bank of New York Trust Company, N.A. (“Trustee”) will act as Paying Agent, Conversion Agent and Registrar. The Company may
appoint and change any Paying Agent, Conversion Agent, Registrar or co-registrar without notice to any Holder. The Company or any of its domestically incorporated Subsidiaries may act as Paying Agent, Conversion Agent, Registrar or co-registrar.

  

	5.	Indenture 

  
 The Company issued the Notes under an Indenture dated as of March 23, 2004 (as it may be amended or supplemented from time to time in accordance with the
terms thereof, the “Indenture”), among the Company and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb) as in effect from time to time (the “Act”). Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Notes are subject to all such terms, and Holders are referred to the
Indenture and the Act for a statement of those terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall control. 

 
 The Notes are senior unsecured obligations of the Company limited to
$230,000,000 aggregate principal amount. 
  

	6.	Redemption at the Option of the Company 

  
 No sinking fund is provided for the Notes. The Notes are redeemable for cash in whole, or in part, at any time on or after March 20, 2011 at the option of
the Company at a redemption price (“Redemption Price”) equal to the following percentage of the principal amount of the Notes, plus any accrued and unpaid interest (including Liquidated Damages, if any) to, but not including, the
Redemption Date: 
  
 Beginning March 21, 2011 through March 14,
2012: 100.6% of the principal amount; 
  
 Beginning March 15,
2012 through March 14, 2013: 100.4% of the principal amount; 
  
 Beginning March 15, 2013 through February 14, 2014: 100.2% of the principal amount; and 
  
 On or after February 15, 2014: 100% of the principal amount. 
  

	7.	Notice of Redemption at the Option of the Company 

  
 Notice of redemption at the option of the Company shall be mailed at least 30 days but not more than 60 days before a Redemption Date to the Trustee, the
Paying Agent and each Holder of Notes to be redeemed at the Holder’s registered address. If money sufficient to pay the Redemption Price of all Notes (or portions thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent
prior to or on the Redemption Date, on and after the 
  

 A-5 

 
Redemption Date, interest (including Liquidated Damages, if any), if any, shall cease to accrue on such Notes or portions thereof. Notes in denominations
larger than $1,000 principal amount may be redeemed in part but only in integral multiples of $1,000 principal amount. 
  

	8.	Repurchase by the Company at the Option of the Holder 

  
 Subject to the terms and conditions of the Indenture, a Holder shall have the option to require the Company to purchase the Notes held by such Holder on
March 15, 2014 and March 15, 2019 (each, a “Repurchase Date”) at a purchase price (the “Repurchase Price”) equal to 100.25% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest and Liquidated
Damages, if any, to but not including such Repurchase Date for the repurchase occurring on March 15, 2014 and at 100% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest and Liquidated Damages, if any, to but not
including such Repurchase Date for the repurchase occurring on March 15, 2019, upon delivery of a Repurchase Notice containing the information set forth in the Indenture from the opening of business on the date that is 20 Business Days prior to such
Repurchase Date until the close of business on the Business Day immediately prior to such Repurchase Date and upon delivery of the Notes to the Paying Agent by the Holder as set forth in the Indenture. The Company will pay the Repurchase Price in
cash with respect each Repurchase Date. 
  
 Notes in denominations
larger than $1,000 principal amount may be purchased in part, but only in integral multiples of $1,000 principal amount. 
  

	9.	Repurchase at the Option of the Holder Upon a Fundamental Change 

  
 If a Fundamental Change shall occur, each Holder shall have the right, at such Holder’s option and subject to the terms and conditions of the
Indenture, to require the Company to purchase any or all of such Holder’s Notes or any portion of the principal amount thereof that is equal to $1,000 or an integral multiple of $1,000 on the day that is no less than 20 days and no more than 35
days after the date of the Company Notice of the occurrence of the Fundamental Change (subject to extension to comply with applicable law) for a Fundamental Change Repurchase Price equal to 100% of the principal amount of Notes purchased plus
accrued and unpaid interest (including and Liquidated Damages, if any) to but not including the Fundamental Change Repurchase Date, which Fundamental Change Repurchase Price shall be paid in cash. 
  
 Holders have the right to withdraw any Repurchase Notice or Fundamental
Change Repurchase Notice, as the case may be, by delivery to the Paying Agent of a written notice of withdrawal in accordance with the provisions of the Indenture. 
  

	10.	Conversion 

  
 Subject to the procedures set forth in the Indenture, a Holder may convert Notes into Common Stock on or before the close of business on March 15, 2024
during the periods and upon satisfaction of the conditions set forth in the Indenture. 
  
 Notes in respect of which a Holder has delivered a notice of exercise of the option to require the Company to purchase such Notes pursuant to Article VI or VII of the Indenture may be converted only if the notice of
exercise is withdrawn in accordance with the terms of the Indenture. 
  

 A-6 

 The initial Conversion Rate is 47.2210 shares of Common Stock per $1,000 principal amount, subject to
adjustment in certain events described in the Indenture. The Company may, at its option, deliver in lieu of shares of Common Stock, cash or a combination of cash and shares of Common Stock. 
  
 To convert the Notes a Holder must (1) complete and manually sign the
irrevocable conversion notice on the back of the Notes (or complete and manually sign a facsimile of such notice) and deliver such notice to the Conversion Agent at the office maintained by the Conversion Agent for such purpose, (2) surrender the
Notes to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the Conversion Agent, the Company or the Trustee and (4) pay any transfer or similar tax, if required. 
  

	11.	Denominations; Transfer; Exchange 

  
 The Notes are in registered form without coupons in denominations of principal amount of $1,000 and whole multiples of $1,000. A Holder may transfer or
exchange Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The
Registrar need not register the transfer of or exchange any Notes (A) for a period beginning at the opening of business 15 days before any selection of Notes for redemption or repurchase and ending at the close of business on the day notice of such
redemption or repurchase is deemed to have been given to all Holders of Notes to be so redeemed or repurchased or (B) selected for redemption or repurchase in whole or in part, except for the transfer of the unredeemed portion of any Note being
redeemed in part. 
  

	12.	Persons Deemed Owners 

  
 The registered Holder of this Note may be treated as the owner of this Note for all purposes. 
  

	13.	Unclaimed Money 

  
 If money for the payment of the principal of, or interest on the Note remains unclaimed for two years, the Trustee or Paying Agent shall pay the money
back to the Company at its written request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to the Company and not to the Trustee for payment. 
  

	14.	Amendment, Waiver 

  
 The Indenture permits, with certain exceptions as provided therein, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding. The Indenture also
contains provisions permitting the Holders of specified percentages 
  

 A-7 

 
in aggregate principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past Defaults under the Indenture and this Note and their consequences. Any such consent or waiver by or on behalf of the Holder of this Note shall be conclusive and binding upon such Holder and upon
all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. 
  

	15.	Defaulted Interest 

  
 Except as otherwise specified with respect to the Notes, any Defaulted Interest on any Note shall forthwith cease to be payable to the registered Holder
thereof on the relevant Regular Record Date or accrual date, as the case may be, by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company as provided for in Section 2.12 of the Indenture. 
  

	16.	No Recourse Against Others 

  
 No recourse for the payment of the principal of or interest (or including Liquidated Damages, if any) on this Note and no recourse under or upon any
obligation, covenant or agreement of the Company in the Indenture, this Note or in any supplemental indenture, or because of the creation of any Indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, agent,
officer, director, or subsidiary, past, present or future, of the Company or of any successor corporation or entity, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, it
being understood that all such liability is hereby waived and released as a condition to, and as a consideration for, the execution and delivery of the Indenture and the issue of this Note. 
  

	17.	Authentication 

  
 This Note shall not be valid until an authorized signatory of the Trustee (or an authenticating agent acting on its behalf) manually signs the certificate
of authentication on the other side of this Note. 
  

	18.	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 entirety), JT
TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to Minors Act). 
  

	19.	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. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification numbers placed thereon. 
  

 A-8 

	20.	Governing Law 

  
 This Note shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts made and to be performed
entirely in such state, without regard to principles of conflicts of law. 
  
 The Company will furnish to any Holder upon written request and without charge to the Holder a copy of the Indenture which has in it the text of this Note. Requests may be made to: 
  
 Saks Incorporated 
 750 Lakeshore Parkway 
 Birmingham, Alabama 35211 
 Attention: Charles J. Hansen 
 Facsimile No.: (205) 940-4468 
  

 A-9 

 ASSIGNMENT FORM 
  

To assign this Note, fill in the form below: 
  
 I or we assign and transfer this Note to 
  

	
	  

	(Print or type assignee’s name, address and zip code)
	
	  

	(Insert assignee’s soc. sec. or tax I.D. No.)

  
 and irrevocably appoint
                     agent to transfer this Note on the books of the Company. The agent may substitute another to act for him. 
  

							
	 Date:
	 	  

	  	 Your Signature:
	 	  

  

					
	 Signature Guarantee:
	 	  

	  	 
	 	 	(Signature must be guaranteed)	  	 

  

	
	  

	 Sign exactly as your name appears on the other side of this Note.

  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15. 
  
 In connection with any transfer or exchange of any of the Notes evidenced by this certificate
occurring prior to the date that is two years after the later of the date of original issuance of such Notes and the last date, if any, on which such Notes were owned by the Company or any Affiliate of the Company, the undersigned confirms that such
Notes are being: 
  
 CHECK ONE BOX BELOW: 
  

					
			
	1.	 	 ̈	 	acquired for the undersigned’s own account, without transfer; or
			
	2.	 	 ̈	 	transferred to the Company; or
			
	3.	 	 ̈	 	transferred pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”); or
			
	4.	 	 ̈	 	transferred pursuant to an effective registration statement under the Securities Act; or
			
	5.	 	 ̈	 	transferred to an institutional accredited investor (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act), that has furnished to the Trustee a signed letter containing
certain representations and agreements (the form of which letter appears as Section 2.7 of the Indenture).

  
 Unless one of the boxes is checked,
the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any Person other than the registered Holder thereof; provided, 
  

 A-10 

 
however, that if box (5) is checked, the Trustee or the Company may require, prior to registering any such transfer of the Notes, in their sole
discretion, such legal opinions, certifications and other information as the Trustee or the Company may reasonably request to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act, such as the exemption provided by Rule 144 under such Act. 
  

			
	 	 	

	 	 	 Signature

		
	 Signature Guarantee:
	 	 
		
	  

	 	  

	 (Signature must be guaranteed)
	 	 Signature

  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15. 
  
 TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED. 
  
 The undersigned represents and warrants that it is purchasing this Note for
its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a qualified institutional buyer within the meaning of Rule 144A under the Securities Act, as amended, and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it
is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  
  

					
	 Dated:
	 	 NOTICE: To be executed by an executive officer

		
	 	 	 [INSERT NAME OF ASSIGNOR]

			
	 	 	 By:
	 	  

	 	 	 	 	 Name:

	 	 	 	 	 Title:

  

 A-11 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
  
 The following increases or decreases in this Global Note have been made:

  

									
	 Date of
 Exchange

	  	 Amount of decrease in Principal
 Amount of this Global Note

	  	 Amount of increase in Principal
 Amount of this Global Note

	  	 Principal Amount of this
 Global Note following such
 decrease or
increase

	  	 Signature of authorized
 signatory of Trustee or Notes
 Custodian

  

 A-12 

 OPTION OF HOLDER TO ELECT REPURCHASE 
  
 If you want to elect to have this Note purchased by the Company pursuant to Section 7.1 or Article VI of the Indenture,
check the box:   ̈ 
  
 If you want to elect to have only part of this Note purchased by the Company pursuant to Section 7.1 or Article VI of the Indenture, state the amount in
principal amount (must be an integral multiple of $1,000): $                    . 
  

							
	 Date:
	 	  

	  	Your Signature:	 	  

	 	 	 	  	 	 	 (Sign exactly as your name appears
 on the other side of this Note)

  

			
	 Signature Guarantee:
	 	  

	 	 	 (Signature must be guaranteed)

  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15. 
  

 A-13 

 FORM OF CERTIFICATE TO BE DELIVERED UPON EXCHANGE 
 OR REGISTRATION OF TRANSFER OF SECURITIES 
  

	 	Re:	2.00% Convertible Senior Notes due March 15, 2024 of Saks Incorporated (the “Company”). 

  
 This Certificate relates to
$                     principal amount of Notes held in *            
book-entry or *             definitive form by                      (the
“Transferor”). 
  
 The Transferor has requested the
Trustee by written order to exchange or register the transfer of a Note or Notes. 
  
 In connection with such request and in respect of each such Note, the Transferor does hereby certify that the Transferor is familiar with the Indenture, dated as of March 23, 2004 (as amended or supplemented to date,
the “Indenture”), between the Company and The Bank of New York Trust Company, N.A., as trustee (the “Trustee”), relating to the above-captioned Notes and that the transfer of this Note does not require registration under the
Securities Act (as defined below) because:* 
  
  ̈ Such Note is being acquired for the Transferor’s own account without transfer. 
  
  ̈ Such Note is
being transferred to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”)), in accordance with Rule 144A under the Securities Act. 

	*	Fill in blank or check appropriate box, as applicable. 

  

 A-14 

 The Transferor represents that the transferee has been made aware that the sale to it is being made in
reliance on Rule 144A and the transferee is deemed to have acknowledged that it has received such information regarding the Company as it has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that
the transfereor is relying upon its foregoing representation in order to claim the exemption from registration provided by Rule 144A. 
  
 You are entitled to rely upon this certificate and you are irrevocably authorized to produce this certificate or a copy hereof to any interested party in
any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 
  

			
	 [INSERT NAME OF TRANSFEROR]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	 Address:
	 	 

  
 Date: 
  

 A-15 

 CONVERSION NOTICE 
  

To convert this Note into Common Stock of the Company, check the box: 
  
  ̈ 
  
 To convert only part of this Note, state the principal amount to be converted (must be in
integral multiples of $1,000): 
  

	
	 $

	 If you want the stock certificate made out in another person’s name, fill in the form below:

	  

	 (Insert other person’s soc. sec. or tax I.D. no.)

	  

	  

	  

	  

	 (Print or type other person’s name, address and zip code)

  

							
			
	 Date:
                        
	 	Signature(s):	 	  

  

	
	
	

	(Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of
1934, as amended.)

  

 A-16 

			
	 Signature(s) guaranteed by:
	 	  

	 	 	(Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.)

  
  

 A-17 

 EXHIBIT B 
  
 FORM OF TRANSFER CERTIFICATE FOR TRANSFER 
 OF RESTRICTED COMMON STOCK 
  
 [NAME AND ADDRESS
OF COMMON STOCK TRANSFER AGENT] 
  

	 	Re:	Saks Incorporated 2.00% Convertible Senior Notes Due March 15, 2024 (the “Notes”) 

  
 Reference is hereby made to the Indenture dated as of March 8, 2004 between the Company and the Trustee (collectively, the
“Indenture”). Capitalized terms used but not defined herein shall have the meanings given them in the Indenture. 
  
 This letter relates to                  shares of Common Stock
represented by the accompanying certificate(s) that were issued upon conversion of Notes and which are held in the name of [name of transferor] (the “Transferor”) to effect the transfer of such Common Stock. 
  
 In connection with the transfer of such shares of Common Stock, the
undersigned confirms that such shares of Common Stock are being transferred and do not require registration under the Securities Act (as defined below) because: 
  

CHECK ONE BOX BELOW: 
  
  ̈ Such Common Stock is being acquired for the
Transferor’s own account without transfer. 
  
  ̈ Such Common Stock is being transferred to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933, as amended
(the “Securities Act”)), in accordance with Rule 144A under the Securities Act. 
  
  ̈ Such Common Stock is being transferred (i) pursuant to an exemption from registration in accordance with Rule
144 under the Securities Act (and based upon an opinion of counsel if the Company or the Trustee so requests) or (ii) pursuant to an effective registration statement under the Securities Act. 
  

 B-1 

 Unless one of the boxes is checked, the transfer agent will refuse to register any of the Common Stock
evidenced by this certificate in the name of any person other than the registered holder thereof; provided, however, that if box (2) or (3) is checked, the transfer agent may require, prior to registering any such transfer of the
Common Stock such certifications and other information, including opinions of counsel, as the Company has reasonably requested in writing, by delivery to the transfer agent of a standing letter of instruction, to confirm that such transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. 
  
 [Name of Transferor], 
  

			
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 Dated:
	 	 

  

 B-2 

 EXHIBIT C 
  

FORM OF NOTE GUARANTEE 
  
 For value received, the undersigned hereby fully and unconditionally guarantees to the Holder of this Note the cash payments in United States dollars of principal of and
interest on this Note in the amounts and at the time when due and interest on the overdue principal and interest, if any, on this Note, if lawful, and the payment or performance of all other obligations of the Company under the Indenture or the
Notes, to the Holder of this Note and the Trustee, all in accordance with and subject to the terms and limitations of this Note, Article XII of the Indenture and this Note Guarantee. This Note Guarantee will become effective in accordance with
Article XII of the Indenture and its terms shall be evidenced therein. The validity and enforceability of any Note Guarantee shall not be affected by the fact that it is not affixed to any particular Note. Capitalized terms used but not defined
herein shall have the meanings ascribed to them in the Indenture dated as of March 23, 2004, by and among Saks Incorporated, the undersigned and The Bank of New York Trust Company, N.A., as Trustee, as amended or supplemented (the
“Indenture”). 
  
 The obligations of the undersigned to the Holders of
Notes and to the Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in Article XII of the Indenture and reference is hereby made to the Indenture for the precise terms of the Note Guarantee and all of the other
provisions of the Indenture to which this Note Guarantee relates. 
  
 THIS NOTE
GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. THE GUARANTOR HEREUNDER AGREES TO SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE OF NEW YORK
IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES OR THIS NOTE GUARANTEE. 
  
 This Note Guarantee is subject to release upon the terms set forth in the Indenture. 
  

 C-1 

 IN WITNESS WHEREOF, the undersigned Guarantor has caused this Note Guarantee to be duly executed. 
  
 Dated:
                     
  

			
	 [NAME OF GUARANTOR]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 C-2

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