Document:

EX-4.1

 

EXECUTION VERSION

 

 

HANESBRANDS INC.

AND EACH OF THE SUBSIDIARY GUARANTORS PARTY HERETO

FLOATING RATE SENIOR NOTES DUE 2014

 

INDENTURE

Dated as of December 14, 2006

 

 

Branch Banking and Trust Company

Trustee

 

 

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	310(a)(1)
	 	7.10
	  (a)(2)
	 	7.10
	  (a)(3)
	 	N.A.
	  (a)(4)
	 	N.A.
	  (a)(5)
	 	7.10
	  (b)
	 	7.10
	  (c)
	 	N.A.
	311(a)
	 	7.11
	  (b)
	 	7.11
	  (c)
	 	N.A.
	312(a)
	 	2.05
	  (b)
	 	13.03
	  (c)
	 	13.03
	313(a)
	 	7.06
	  (b)(2)
	 	7.06; 7.07
	  (c)
	 	7.06; 13.02
	  (d)
	 	7.06
	314(a)
	 	4.03; 13.02; 13.05
	  (c)(1)
	 	13.04
	  (c)(2)
	 	13.04
	  (c)(3)
	 	N.A.
	  (e)
	 	13.05
	  (f)
	 	N.A.
	315(a)
	 	7.01
	  (b)
	 	7.05, 13.02
	  (c)
	 	7.01
	  (d)
	 	7.01
	  (e)
	 	6.11
	316(a) (last sentence)
	 	2.09
	  (a)(1)(A)
	 	6.05
	  (a)(1)(B)
	 	6.04
	  (a)(2)
	 	N.A.
	  (b)
	 	6.07
	  (c)
	 	2.12
	317(a)(1)
	 	6.08
	  (a)(2)
	 	6.09
	  (b)
	 	2.04
	318(a)
	 	N.A.
	  (b)
	 	N.A.
	  (c)
	 	13.01

 

			
	 	 	N.A. means not applicable.
	 
	*	 	This Cross Reference Table is not part of this Indenture.

 

 

 TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	ARTICLE 1 DEFINITIONS  AND INCORPORATION BY REFERENCE	 	 	1	 
	Section 1.01
	 	Definitions

	 	 	1	 
	Section 1.02
	 	Other Definitions

	 	 	31	 
	Section 1.03
	 	Incorporation by Reference of Trust Indenture Act

	 	 	32	 
	Section 1.04
	 	Rules of Construction

	 	 	32	 
	ARTICLE 2 THE NOTES	 	 	32	 
	Section 2.01
	 	Form and Dating

	 	 	32	 
	Section 2.02
	 	Execution and Authentication

	 	 	34	 
	Section 2.03
	 	Registrar and Paying Agent

	 	 	34	 
	Section 2.04
	 	Paying Agent to Hold Money in Trust

	 	 	34	 
	Section 2.05
	 	Holder Lists

	 	 	35	 
	Section 2.06
	 	Transfer and Exchange

	 	 	35	 
	Section 2.07
	 	Replacement Notes

	 	 	48	 
	Section 2.08
	 	Outstanding Notes

	 	 	48	 
	Section 2.09
	 	Treasury Notes

	 	 	48	 
	Section 2.10
	 	Temporary Notes

	 	 	48	 
	Section 2.11
	 	Cancellation

	 	 	49	 
	Section 2.12
	 	Defaulted Interest

	 	 	49	 
	ARTICLE 3 REDEMPTION AND PREPAYMENT	 	 	49	 
	Section 3.01
	 	Notices to Trustee

	 	 	49	 
	Section 3.02
	 	Selection of Notes to Be Redeemed or Purchased

	 	 	50	 
	Section 3.03
	 	Notice of Redemption

	 	 	50	 
	Section 3.04
	 	Effect of Notice of Redemption

	 	 	51	 
	Section 3.05
	 	Deposit of Redemption or Purchase Price

	 	 	51	 
	Section 3.06
	 	Notes Redeemed or Purchased in Part

	 	 	51	 
	Section 3.07
	 	Optional Redemption

	 	 	51	 
	Section 3.08
	 	Mandatory Redemption

	 	 	52	 
	ARTICLE 4 COVENANTS	 	 	52	 
	Section 4.01
	 	Payment of Notes

	 	 	52	 
	Section 4.02
	 	Maintenance of Office or Agency

	 	 	53	 
	Section 4.03
	 	SEC Reports and Reports to Holders

	 	 	53	 
	Section 4.04
	 	Compliance Certificate

	 	 	54	 

i

 

 TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	Section 4.05
	 	Taxes

	 	 	54	 
	Section 4.06
	 	Stay, Extension and Usury Laws

	 	 	54	 
	Section 4.07
	 	Limitation on Restricted Payments

	 	 	55	 
	Section 4.08
	 	Limitation on Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries

	 	 	58	 
	Section 4.09
	 	Limitation on Indebtedness

	 	 	60	 
	Section 4.10
	 	Limitation on Asset Sales

	 	 	63	 
	Section 4.11
	 	Limitation on Transactions with Shareholders and Affiliates

	 	 	64	 
	Section 4.12
	 	Limitation on Liens

	 	 	65	 
	Section 4.13
	 	Limitation on Business Activities

	 	 	66	 
	Section 4.14
	 	Corporate Existence

	 	 	66	 
	Section 4.15
	 	Repurchase of Notes Upon a Change of Control

	 	 	67	 
	Section 4.16
	 	Limitation on the Issuance and Sale of Capital Stock
of Restricted Subsidiaries

	 	 	68	 
	Section 4.17
	 	Limitation on Sale and Leaseback Transactions

	 	 	69	 
	Section 4.18
	 	Payments for Consent

	 	 	69	 
	Section 4.19
	 	Limitation on Issuance of Guarantees by Restricted Subsidiaries

	 	 	70	 
	Section 4.20
	 	Investments in HBI Playtex BATH LLC

	 	 	70	 
	Section 4.21
	 	Changes in Covenants when Notes Rated Investment Grade

	 	 	70	 
	ARTICLE 5 SUCCESSORS 	 	 	71	 
	Section 5.01
	 	Consolidation, Merger and Sale of Assets

	 	 	71	 
	Section 5.02
	 	Successor Corporation Substituted

	 	 	72	 
	ARTICLE 6 DEFAULTS AND REMEDIES	 	 	73	 
	Section 6.01
	 	Events of Default

	 	 	73	 
	Section 6.02
	 	Acceleration

	 	 	74	 
	Section 6.03
	 	Other Remedies

	 	 	75	 
	Section 6.04
	 	Waiver of Past Defaults

	 	 	75	 
	Section 6.05
	 	Control by Majority

	 	 	75	 
	Section 6.06
	 	Limitation on Suits

	 	 	75	 
	Section 6.07
	 	Rights of Holders of Notes to Receive Payment

	 	 	76	 
	Section 6.08
	 	Collection Suit by Trustee

	 	 	76	 
	Section 6.09
	 	Trustee May File Proofs of Claim

	 	 	76	 

ii

 

 TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	Section 6.10
	 	Priorities

	 	 	76	 
	Section 6.11
	 	Undertaking for Costs

	 	 	77	 
	ARTICLE 7 TRUSTEE	 	 	77	 
	Section 7.01
	 	Duties of Trustee

	 	 	77	 
	Section 7.02
	 	Rights of Trustee

	 	 	78	 
	Section 7.03
	 	Individual Rights of Trustee

	 	 	79	 
	Section 7.04
	 	Trustee’s Disclaimer

	 	 	79	 
	Section 7.05
	 	Notice of Defaults

	 	 	79	 
	Section 7.06
	 	Reports by Trustee to Holders of the Notes

	 	 	80	 
	Section 7.07
	 	Compensation and Indemnity

	 	 	80	 
	Section 7.08
	 	Replacement of Trustee

	 	 	81	 
	Section 7.09
	 	Successor Trustee by Merger, etc

	 	 	82	 
	Section 7.10
	 	Eligibility; Disqualification

	 	 	82	 
	Section 7.11
	 	Preferential Collection of Claims Against Company

	 	 	82	 
	ARTICLE 8 LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	 	82	 
	Section 8.01
	 	Option to Effect Legal Defeasance or Covenant Defeasance

	 	 	82	 
	Section 8.02
	 	Legal Defeasance and Discharge

	 	 	82	 
	Section 8.03
	 	Covenant Defeasance

	 	 	83	 
	Section 8.04
	 	Conditions to Legal or Covenant Defeasance

	 	 	84	 
	Section 8.05
	 	Deposited Money and U.S. Government Obligations to be Held
in Trust; Other Miscellaneous Provisions

	 	 	85	 
	Section 8.06
	 	Repayment to Company

	 	 	86	 
	Section 8.07
	 	Reinstatement

	 	 	86	 
	ARTICLE 9 AMENDMENT, SUPPLEMENT AND WAIVER	 	 	86	 
	Section 9.01
	 	Without Consent of Holders of Notes

	 	 	86	 
	Section 9.02
	 	With Consent of Holders of Notes

	 	 	87	 
	Section 9.03
	 	Compliance with Trust Indenture Act

	 	 	89	 
	Section 9.04
	 	Revocation and Effect of Consents

	 	 	89	 
	Section 9.05
	 	Notation on or Exchange of Notes

	 	 	89	 
	Section 9.06
	 	Trustee to Sign Amendments, etc

	 	 	90	 
	ARTICLE 10 [INTENTIONALLY OMITTED]	 	 	90	 
	ARTICLE 11 NOTE GUARANTEES	 	 	90	 
	Section 11.01
	 	Guarantee

	 	 	90	 

iii

 

 TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 
	Section 11.02
	 	Intentionally Omitted

	 	 	91	 
	Section 11.03
	 	Limitation on Subsidiary Guarantor Liability

	 	 	91	 
	Section 11.04
	 	Execution and Delivery of Note Guarantee

	 	 	92	 
	Section 11.05
	 	Subsidiary Guarantors May Consolidate, etc., on Certain Terms

	 	 	92	 
	Section 11.06
	 	Releases

	 	 	93	 
	ARTICLE 12 SATISFACTION AND DISCHARGE	 	 	94	 
	Section 12.01
	 	Satisfaction and Discharge

	 	 	94	 
	Section 12.02
	 	Application of Trust Money

	 	 	95	 
	ARTICLE 13 MISCELLANEOUS	 	 	95	 
	Section 13.01
	 	Trust Indenture Act Controls

	 	 	95	 
	Section 13.02
	 	Notices

	 	 	95	 
	Section 13.03
	 	Communication by Holders of Notes with Other Holders of Notes
	 	 	96	 
	Section 13.04
	 	Certificate and Opinion as to Conditions Precedent

	 	 	96	 
	Section 13.05
	 	Statements Required in Certificate or Opinion

	 	 	97	 
	Section 13.06
	 	Rules by Trustee and Agents

	 	 	98	 
	Section 13.07
	 	No Personal Liability of Incorporators, Stockholders, Officers,
Directors or Employees

	 	 	98	 
	Section 13.08
	 	Governing Law

	 	 	98	 
	Section 13.09
	 	No Adverse Interpretation of Other Agreements

	 	 	98	 
	Section 13.10
	 	Successors

	 	 	98	 
	Section 13.11
	 	Severability

	 	 	98	 
	Section 13.12
	 	Counterpart Originals

	 	 	98	 
	Section 13.13
	 	Table of Contents, Headings, etc

	 	 	99	 
	Section 13.14
	 	Benefits of Indenture

	 	 	99	 

EXHIBITS

Exhibit A       Form of Note

Exhibit B       Form of Certificate of Transfer

Exhibit C       Form of Certificate of Exchange

Exhibit D       Form of Certificate From Acquiring Institutional Accredited Investor

Exhibit E       Form of Note Guarantee

Exhibit F       Form of Supplemental Indenture

iv

 

     INDENTURE dated as of December 14, 2006 among Hanesbrands Inc., a Maryland corporation (the
“Company”), the Subsidiary Guarantors (as defined below) and Branch Banking and Trust
Company, a North Carolina state banking corporation, as trustee (the “Trustee”). Upon
execution and delivery by all parties hereto, this Indenture shall be effective as to all such
parties.

     The Company has duly authorized the creation of an issue of (i) Floating Rate Senior Notes due
2014 issued on the date hereof (the “Notes”) and, if and when issued as required by the
Registration Rights Agreement dated the date hereof, among the Company, the Subsidiary Guarantors
and the Initial Purchasers (as defined therein) (the “Registration Rights Agreement”) and
(ii) Floating Rate Senior Exchange Notes due 2014 (the “Exchange Notes”) issued in an
Exchange Offer (as defined below) in exchange for any Notes (as defined below) representing the
same indebtedness, of substantially the tenor and amount hereinafter set forth, and to provide
therefor the Company has duly authorized the execution and delivery of this Indenture.

     Each Subsidiary Guarantor has duly authorized its Guarantee of the Notes, and if and when
issued, the Exchange Notes and to provide therefor each Subsidiary Guarantor has duly authorized
the execution and delivery of this Indenture.

     All things necessary have been done to make the Notes, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid and legally binding
obligations of the Company and to make this Indenture a valid and legally binding agreement of the
Company, in accordance with their and its terms.

     All things necessary have been done to make the Guarantees, upon execution and delivery of
this Indenture, the valid obligations of each of the Company and each Subsidiary Guarantor and to
make this Indenture a valid and legally binding agreement of each of the Company and each
Subsidiary Guarantor, in accordance with their and its terms.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
it is mutually covenanted and agreed, for the equal and ratable benefit of all Holders, as follows:

ARTICLE 1

DEFINITIONS AND INCORPORATION

BY REFERENCE

     SECTION 1.01 Definitions.

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

1

 

     “Acquired Indebtedness” means Indebtedness of a Person existing at the time such
Person becomes a Restricted Subsidiary or Indebtedness of a Restricted Subsidiary assumed in
connection with an Asset Acquisition by such Restricted Subsidiary; provided such
Indebtedness was not Incurred in connection with or in contemplation of such Person becoming a
Restricted Subsidiary or such Asset Acquisition.

     “Additional Notes” means an unlimited principal amount of additional Notes (other than
the Indebtedness evidenced by the Initial Notes) issued under this Indenture in accordance with
Sections 2.02 and 4.09 hereof, as part of the same series as the Initial Notes.

     “Adjusted Consolidated Net Income” means, for any period, the aggregate net income (or
loss) of the Company and its Restricted Subsidiaries for such period determined in conformity with
GAAP; provided that the following items shall be excluded in computing Adjusted
Consolidated Net Income (without duplication):

     (1) the net income (or loss) of any Person that is not a Restricted Subsidiary except
to the extent that dividends or similar distributions have been paid by such Person to the
Company or a Restricted Subsidiary;

     (2) solely for purposes of calculating the amount of Restricted Payments that may be
made pursuant to clause (C) of the first paragraph of Section 4.07, the net income (or loss)
of any Person accrued prior to the date it becomes a Restricted Subsidiary or is merged into
or consolidated with the Company or any of its Restricted Subsidiaries or all or
substantially all of the property and assets of such Person are acquired by the Company or
any of its Restricted Subsidiaries;

     (3) the net income of any Restricted Subsidiary to the extent that the declaration or
payment of dividends or similar distributions by such Restricted Subsidiary of such net
income is at the time prohibited by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to such Restricted Subsidiary;

     (4) any gains or losses (on an after tax basis) attributable to asset dispositions;

     (5) all extraordinary gains or extraordinary losses;

     (6) the cumulative effect of a change in accounting principles;

     (7) any non-cash compensation expenses recorded from grants of stock options,
restricted stock, stock appreciation rights and other equity equivalents to Officers,
directors and employees, whether under FASB 123R or otherwise;

     (8) any impairment charge or asset write off pursuant to FASB No. 142 and No. 144 or
any successor pronouncement;

     (9) (a) net cash charges associated with or related to any contemplated restructurings
in an aggregate amount not to exceed in any Fiscal Year, the Permitted
Cash Restructuring Charge Amount for such Fiscal Year and (b) net cash restructuring

2

 

charges associated with or related to the Spin Off in an aggregate amount not to exceed, in
any Fiscal Year, the Permitted Cash Spin-Off Charge Amount for such Fiscal Year;

     (10) all other non-cash charges, including all non-cash charges associated with
announced restructurings, whether announced previously or in the future (such non-cash
restructuring charges being “Non-Cash Restructuring Charges”); and

     (11) income or loss attributable to discontinued operations (including, without
limitation, operations disposed of during such period whether or not such operations were
classified as discontinued).

     “Affiliate” means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with, such Person. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as applied to any Person, means
the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

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

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

	 	(1)	 	1.0% of the principal amount of the Note; or
	 
	 	(2)	 	the excess of:

     (a) the present value at such Redemption Date of (i) the redemption price of
the Note at December 15, 2008, (such redemption price being set forth in the table
appearing above under Section 3.07) plus (ii) all required interest payments
due on the Note through December 15, 2008, (excluding accrued but unpaid interest to
the Redemption Date), computed using a discount rate equal to the Treasury Rate as
of such Redemption Date plus 50 basis points; over

     (b) the principal amount of the Note, if greater.

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

     “Asset Acquisition” means (1) an investment by the Company or any of its Restricted
Subsidiaries in any other Person pursuant to which such Person shall become a Restricted Subsidiary
or shall be merged into or consolidated with the Company or any of its Restricted Subsidiaries or
(2) an acquisition by the Company or any of its Restricted Subsidiaries of the
property and assets of any Person other than the Company or any of its Restricted Subsidiaries
that constitute substantially all of a division or line of business of such Person.

3

 

     “Asset Disposition” means the sale or other disposition by the Company or any of its
Restricted Subsidiaries of (1) all or substantially all of the Capital Stock of any Restricted
Subsidiary or (2) all or substantially all of the assets that constitute a division or line of
business of the Company or any of its Restricted Subsidiaries.

     “Asset Sale” means any sale, transfer or other disposition (including by way of merger
or consolidation or Sale Leaseback Transaction) in one transaction or a series of related
transactions by the Company or any of its Restricted Subsidiaries to any Person other than the
Company or any of its Restricted Subsidiaries of:

     (1) all or any of the Capital Stock of any Restricted Subsidiary (other than sales of
preferred stock that are permitted under Section 4.09);

     (2) all or substantially all of the property and assets of a division or line of
business of the Company or any of its Restricted Subsidiaries; or

     (3) any other property and assets (other than the Capital Stock or other Investment in
an Unrestricted Subsidiary) of the Company or any of its Restricted Subsidiaries outside the
ordinary course of business of the Company or such Restricted Subsidiary, and

in each case, that is not governed by the provisions of this Indenture applicable to mergers,
consolidations and sales of assets of the Company; provided that “Asset Sale” shall not
include:

     (a) sales, transfers or other dispositions of assets constituting a Permitted
Investment or Restricted Payment permitted to be made under Section 4.07;

     (b) sales, transfers or other dispositions of assets with a fair market value not in
excess of $25.0 million in any transaction or series of related transactions;

     (c) any sale, transfer, assignment or other disposition of any property or equipment
that has become damaged, worn out, obsolete or otherwise unsuitable for use in connection
with the business of the Company or its Restricted Subsidiaries;

     (d) the sale or discount of accounts receivable, but only in connection with the
compromise or collection thereof, or the disposition of assets in connection with a
foreclosure or transfer in lieu of a foreclosure or other exercise of remedial action;

     (e) any exchange of like property similar to (but not limited to) those allowable under
Section 1031 of the Internal Revenue Code; or

     (f) sales or grants of licenses to use the Company’s or any Restricted Subsidiary’s
patents, trade secrets, know-how and technology to the extent that such
license does not prohibit the licensor from using the patent, trade secret, know-how or
technology.

     “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time
of determination, the present value of the obligation of the lessee for net rental payments during
the

4

 

remaining term of the lease included in such Sale and Leaseback Transaction, including any
period for which such lease has been extended or may, at the option of the lessor, be extended.
Such present value shall be calculated using a discount rate equal to the rate of interest implicit
in such transaction, determined in accordance with GAAP; provided, however, that if
such sale and leaseback transaction results in a Capital Lease Obligation, the amount of
Indebtedness represented thereby will be determined in accordance with the definition of
“Capitalized Lease Obligation”.

     “Average Life” means, at any date of determination with respect to any debt security,
the quotient obtained by dividing (1) the sum of the products of (a) the number of years from such
date of determination to the dates of each successive scheduled principal payment of such debt
security and (b) the amount of such principal payment by (2) the sum of all such principal
payments.

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

     “Board of Directors” means, with respect to any Person, the Board of Directors of such
Person, any duly authorized committee of such Board of Directors or any Person to which the Board
of Directors has properly delegated authority with respect to any particular matter. Unless
otherwise indicated, the “Board of Directors” refers to the Board of Directors of the Company.

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

     “Business Day” means a day other than a Saturday, Sunday or other day on which banking
institutions are authorized or required by law to close in New York State.

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) in equity of
such Person, whether outstanding on the Closing Date or issued thereafter, including, without
limitation, all common stock and preferred stock.

     “Capitalized Lease” means, as applied to any Person, any lease of any property
(whether real, personal or mixed) of which the discounted present value of the rental obligations
of such Person as lessee, in conformity with GAAP, is required to be capitalized on the balance
sheet of such Person.

     “Capitalized Lease Obligations” means all monetary obligations of any Person and its
Subsidiaries under any leasing or similar arrangement which, in accordance with GAAP, should be
classified as Capitalized Leases and the Stated Maturity thereof shall be the date that the last
payment of rent or any other amount due under such Capitalized Lease prior to the first date
upon which such lease may be terminated by the lessee without payment of a premium or penalty
is due thereunder.

     “Change of Control” means such time as:

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

5

 

     (2) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the
Exchange Act) becomes the ultimate “beneficial owner” (as defined in Rule 13d 3 under the
Exchange Act) of more than 50% of the total voting power of the Voting Stock of the Company
on a fully diluted basis; or

     (3) during any period of 24 consecutive months, individuals who at the beginning of
such period constituted the Board of Directors of the Company (together with any new
directors whose election to such Board or whose nomination for election by the stockholders
of the Company was approved by a vote of a majority of the directors then still in office
who were either directors at the beginning of such period or whose election or nomination
for election was previously so approved) cease for any reason to constitute a majority of
the Board of Directors of the Company then in office.

     “Clearstream” means Clearstream Banking, S.A.

     “Closing Date” means the date on which the Notes are originally issued under this
Indenture.

     “Commodity Agreement” means any forward contract, commodity swap agreement, commodity
option agreement or other similar agreement or arrangement.

     “Consolidated EBITDA” means, for any period, Adjusted Consolidated Net Income for such
period plus, to the extent such amount was deducted in calculating such Adjusted
Consolidated Net Income:

     (1) Fixed Charges;

     (2) amounts shown under the item “Taxes” on the Company’s income statement;

     (3) depreciation expense;

     (4) amortization expense;

     (5) (a) non-cash compensation expense, or other non-cash expenses or charges, arising
from the sale of stock, the granting of stock options, the granting of stock appreciation
rights and similar arrangements (including any repricing, amendment, modification,
substitution or change of any such stock, stock option, stock appreciation rights or similar
arrangements), (b) any financial advisory fees, accounting fees, legal
fees and other similar advisory and consulting fees, cash charges in respect of
strategic market reviews, management bonuses and early retirement of Indebtedness, and
related out-of-pocket expenses incurred by the Company or any of its Restricted Subsidiaries
as a result of the Transaction, all determined in accordance with GAAP, (c) to the extent
non-recurring and not capitalized, any financial advisory fees, accounting fees, legal fees
and similar advisory and consulting fees and related costs and expenses of the Company and
its Restricted Subsidiaries incurred as a result of Asset Acquisitions, Investments, Asset
Sales permitted under this Indenture and the issuance of Capital Stock or Indebtedness
permitted hereunder, all determined in accordance with GAAP and in each

6

 

case eliminating any
increase or decrease in income resulting from non-cash accounting adjustments made in
connection with the related Asset Acquisition, Investment or Asset Sale, (d) to the extent
the related loss is not added back pursuant to the definition of Adjusted Consolidated Net
Income, all proceeds of business interruption insurance policies, (e) expenses incurred by
the Company or any Restricted Subsidiary to the extent reimbursed in cash by a third party,
and (f) extraordinary, unusual or non-recurring cash charges not to exceed $10.0 million in
any Fiscal Year; minus

     (6) to the extent included in determining such Adjusted Consolidated Net Income, the
sum of (a) reversals (in whole or in part) of any restructuring charges previously treated
as Non-Cash Restructuring Charges in any prior period, (b) all non-cash items increasing
Adjusted Consolidated Net Income, other than (A) the accrual of revenue consistent with past
practice and (B) the reversal in such period of an accrual of, or cash reserve for, cash
expenses in a prior period, to the extent such accrual or reserve did not increase EBITDA in
a prior period;

all as determined on a consolidated basis for the Company and its Restricted Subsidiaries in
conformity with GAAP; provided that, if any Restricted Subsidiary is not a Wholly Owned
Restricted Subsidiary, Consolidated EBITDA shall be reduced (to the extent not otherwise reduced in
accordance with GAAP) by an amount equal to (A) the amount of the Adjusted Consolidated Net Income
attributable to such Restricted Subsidiary multiplied by (B) the percentage ownership interest in
the income of such Restricted Subsidiary not owned on the last day of such period by the Company or
any of its Restricted Subsidiaries.

     “Consolidated Interest Expense” means, for any period, the aggregate amount of
interest in respect of Indebtedness (including, without limitation, amortization of original issue
discount on any Indebtedness and the interest portion of any deferred payment obligation,
calculated in accordance with the effective interest method of accounting; all commissions,
discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance
financing; the net costs associated with Interest Rate Agreements; and Indebtedness that is
Guaranteed or secured by the Company or any of its Restricted Subsidiaries); imputed interest with
respect to Attributable Debt; and all but the principal component of rentals in respect of
Capitalized Lease Obligations paid, in each case, accrued or scheduled to be paid or to be accrued
by the Company and its Restricted Subsidiaries during such period; excluding, however, (1) any
amount of such interest of any Restricted Subsidiary if the net income of such Restricted
Subsidiary is excluded in the calculation of Adjusted Consolidated Net Income pursuant to clause
(3) of the definition
thereof (but only in the same proportion as the net income of such Restricted Subsidiary is
excluded from the calculation of Adjusted Consolidated Net Income pursuant to clause (3) of the
definition thereof) and (2) any premiums, fees and expenses (and any amortization thereof) payable
in connection with the offering of the Notes, all as determined on a consolidated basis (without
taking into account Unrestricted Subsidiaries) in conformity with GAAP.

     “Contingent Liability” means any agreement, undertaking or arrangement by which any
Person guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or
indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or
otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the Indebtedness
of any other Person (other than by endorsements of instruments in the course of collection), or

7

 

guarantees the payment of dividends or other distributions upon the capital securities of any other
Person. The amount of any Person’s obligation under any Contingent Liability shall (subject to any
limitation with respect thereto) be deemed to be the outstanding principal amount of the debt,
obligation or other liability guaranteed thereby.

     “Corporate Trust Office of the Trustee” will be at the address of the Trustee
specified in Section 13.02 hereof or such other address as to which the Trustee may give notice to
the Company.

     “Credit Agreement” means that certain Credit Agreement, dated as of September 5, 2006,
among the Company as borrower, the guarantors party thereto, the several banks and other financial
institutions or entities from time to time party thereto as lenders, Citicorp USA, Inc., as
administrative agent, and Merrill Lynch. Pierce, Fenner & Smith Incorporated and Morgan Stanley
Senior Funding, Inc., as joint lead arrangers and joint book runners.

     “Credit Facilities” means, with respect to the Company and its Restricted
Subsidiaries, one or more debt facilities (including the Credit Agreement and the Second Lien
Credit Agreement), commercial paper facilities, or indentures providing for revolving credit loans,
term, loans, notes or other financings or letters of credit, or other credit facilities, in each
case, as amended, modified, renewed, refunded, replaced or refinanced from time to time.

     “Currency Agreement” means any foreign exchange contract, currency swap agreement or
other similar agreement or arrangement.

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

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

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

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

     “Determination Date”, with respect to an Interest Period, will be the second London
Banking Day preceding the first day of the Interest Period.

     “Disqualified Stock” means any class or series of Capital Stock of any Person that by
its terms or otherwise is (1) required to be redeemed prior to the date that is 91 days after the
Stated Maturity of the Notes, (2) redeemable at the option of the holder of such class or series of
Capital Stock at any time prior to the date that is 91 days after the Stated Maturity of the Notes
or (3) convertible into or exchangeable for Capital Stock referred to in clause (1) or (2) above or

8

 

Indebtedness having a scheduled maturity prior to the date that is 91 days after the Stated
Maturity of the Notes; provided that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof giving holders thereof the right to require such
Person to repurchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change
of control” occurring prior to the date that is 91 days after the Stated Maturity of the Notes
shall not constitute Disqualified Stock if the “asset sale” or “change of control” provisions
applicable to such Capital Stock are no more favorable to the holders of such Capital Stock than
the provisions contained in Section 4.10 and Section 4.15 and such Capital Stock specifically
provides that such Person will not repurchase or redeem any such stock pursuant to such provision
prior to the Company’s repurchase of such Notes as are required to be repurchased pursuant to
Section 4.10 and Section 4.15.

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

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

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

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

     “fair market value” means the price that would be paid in an arm’s-length transaction
between an informed and willing seller under no compulsion to sell and an informed and willing
buyer under no compulsion to buy, as determined in good faith by (i) for a transaction or series of
related transactions in excess of $25.0 million, the Board of Directors, whose determination shall
be conclusive if evidenced by a resolution of the Board of Directors or (ii) for a transaction or
series of related transactions involving $25.0 million or less, by the chief financial officer,
whose determination shall be conclusive if evidenced by a certificate to such effect.

     “Fiscal Year” means any period of fifty-two or fifty-three consecutive calendar weeks
ending on the Saturday nearest to the last day of December, with respect to all periods beginning
on or after July 2, 2006; references to a Fiscal Year with a number corresponding to any calendar
year (e.g., the “2007 Fiscal Year”) refer to the Fiscal Year ending on the Saturday nearest to the
last day of December of such calendar year; provided that in the event that the
Company gives notice to the Trustee that it intends to change its Fiscal Year, Fiscal Year will
mean any period of fifty-two or fifty-three consecutive calendar weeks or twelve consecutive
calendar months ending on the date set forth in such notice; provided, further,
that the term “Fiscal Year 2006” means the period from the date of this Indenture to
December 30, 2006.

     “Fixed Charge Coverage Ratio” means, for any Person on any Transaction Date, the ratio
of (1) the aggregate amount of Consolidated EBITDA for the then most recent four fiscal quarters
prior to such Transaction Date for which reports have been filed with the SEC or provided to the
Trustee (the “Four Quarter Period”) to (2) the aggregate Fixed Charges during such Four Quarter
Period. In making the foregoing calculation:

     (A) pro forma effect shall be given to any Indebtedness Incurred or repaid during the
period (the “Reference Period”) commencing on the first day of the Four

9

 

Quarter Period and
ending on the Transaction Date, in each case, as if such Indebtedness had been Incurred or
repaid on the first day of such Reference Period;

     (B) Consolidated Interest Expense attributable to interest on any Indebtedness (whether
existing or being Incurred) computed on a pro forma basis and bearing a floating interest
rate shall be computed as if the rate in effect on the Transaction Date (taking into account
any Interest Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement
has a remaining term in excess of 12 months or, if shorter, at least equal to the remaining
term of such Indebtedness) had been the applicable rate for the entire period;

     (C) pro forma effect shall be given to Asset Dispositions and Asset Acquisitions
(including giving pro forma effect to the application of proceeds of any Asset Disposition)
that occur during such Reference Period as if they had occurred and such proceeds had been
applied on the first day of such Reference Period; and

     (D) pro forma effect shall be given to asset dispositions and asset acquisitions
(including giving pro forma effect to the application of proceeds of any asset disposition)
that have been made by any Person that has become a Restricted Subsidiary or has been merged
with or into the Company or any Restricted Subsidiary during such Reference Period and that
would have constituted Asset Dispositions or Asset Acquisitions had such transactions
occurred when such Person was a Restricted Subsidiary as if such asset dispositions or asset
acquisitions were Asset Dispositions or Asset Acquisitions that occurred on the first day of
such Reference Period; provided that to the extent that clause (C) or (D) of this
paragraph requires that pro forma effect be given to an Asset Acquisition or Asset
Disposition, such pro forma calculation shall be based upon the four full fiscal quarters
immediately preceding the Transaction Date of the Person, or division or line of business of
the Person, that is acquired or disposed for which financial information is available; and
provided, further, that such pro forma calculation will take into account
all adjustments required by Article 11 of Regulation S-X to be reflected, any adjustments
permitted by Article 11 of Regulation S-X that the Company, in its
reasonable judgment, elects to make and any Pro Forma Cost Savings arising from such
transaction.

     “Fixed Charges” means, with respect to any Person for any period, the sum, without
duplication, of:

     (1) Consolidated Interest Expense; plus

     (2) the product of (x) the amount of all dividend payments on any series of preferred
stock of such Person or any of its Restricted Subsidiaries (other than dividends payable
solely in Capital Stock of such Person or such Restricted Subsidiary (other than
Disqualified Stock) or to such Person or a Restricted Subsidiary of such Person) paid,
accrued or scheduled to be paid or accrued during such period times (y) a fraction, the
numerator of which is one and the denominator of which is one minus the then current
effective consolidated federal, state and local income tax rate of such Person, expressed as
a decimal, as determined on a consolidated basis in accordance with GAAP.

10

 

     “Foreign Subsidiary” means any Restricted Subsidiary of the Company that is an entity
which is a controlled foreign corporation under Section 957 of the Internal Revenue Code.

     “GAAP” means generally accepted accounting principles in the United States of America
as in effect as of the Closing Date as determined by the Public Company Accounting Oversight Board.
All ratios and computations contained or referred to in this Indenture shall be computed in
conformity with GAAP applied on a consistent basis, except that calculations made for purposes of
determining compliance with the terms of the covenants and with other provisions of this Indenture
shall be made without giving effect to (1) the amortization of any expenses incurred in connection
with the offering of the Notes and (2) except as otherwise provided, the amortization of any
amounts required or permitted by Accounting Principles Board Opinion Nos. 16 and 17.

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

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

     “Governmental Authority” means the government of the United States, any other nation
or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government.

     “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and, without limiting the generality
of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (1)
to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of
such other Person (whether arising by virtue of partnership arrangements, or by agreements to
keep-well, to purchase assets, goods, securities or services (unless such purchase arrangements are
on arm’s-length terms and are entered into in the normal course of business), to take-or-pay, or to
maintain financial statement conditions or otherwise) or (2) entered into for purposes of assuring
in any other manner the obligee of such Indebtedness of the payment thereof or to protect such
obligee against loss in respect thereof (in whole or in part); provided that the term
“Guarantee” shall not include endorsements for collection or deposit in the normal course of
business. The term “Guarantee” used as a verb has a corresponding meaning.

     “Hedging Obligations” means, with respect to any Person, all liabilities of such
Person under foreign exchange contracts, commodity hedging agreements, currency exchange
agreements, interest rate swap agreements, interest rate cap agreements and interest rate collar
agreements, and all other agreements or arrangements designed to protect such Person against
fluctuations in interest rates, currency exchange rates or commodity prices.

11

 

     “Holder” means a holder of any Notes.

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

     “Immaterial Subsidiary” shall mean, at any time, any Restricted Subsidiary of the
Company that is designated by the Company as an “Immaterial Subsidiary” if and for so long as such
Restricted Subsidiary, together with all other Immaterial Subsidiaries, has (i) total assets at
such time not exceeding 5% of the Company’s consolidated assets as of the most recent fiscal
quarter for which balance sheet information is available and (ii) total revenues and operating
profit for the most recent 12-month period for which income statement information is available not
exceeding 5% of the Company’s consolidated revenues and operating profit, respectively;
provided that such Restricted Subsidiary shall be an Immaterial Subsidiary only to the
extent that and for so long as all of the above requirements are satisfied, provided, that
a Restricted Subsidiary will not be considered to be an Immaterial Subsidiary if it, directly or
indirectly, guarantees or otherwise provides credit support for any Indebtedness of the Company.

     “Incur” means, with respect to any Indebtedness, to incur, create, issue, assume,
Guarantee or otherwise become liable for or with respect to, or become responsible for, the payment
of, contingently or otherwise, such Indebtedness; provided that (1) any Indebtedness of a
Person existing at the time such Person becomes a Restricted Subsidiary will be deemed to be
incurred by such Restricted Subsidiary at the time it becomes a Restricted Subsidiary and (2)
neither the accrual of interest nor the accretion of original issue discount nor the payment of
interest in the form of additional Indebtedness (to the extent provided for when the Indebtedness
on which such interest is paid was originally issued) shall be considered an Incurrence of
Indebtedness.

“Indebtedness” means, with respect to any Person at any date of determination
(without duplication):

     (1) all indebtedness of such Person for borrowed money;

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

     (3) all obligations of such Person in respect of letters of credit or other similar
instruments (including reimbursement obligations with respect thereto, but excluding
obligations with respect to letters of credit (including trade letters of credit) securing
obligations (other than obligations described in (1) or (2) above or (5), (6) or (7) below)
entered into in the normal course of business of such Person to the extent such letters of
credit are not drawn upon or, if drawn upon, to the extent such drawing is reimbursed no
later than the third Business Day following receipt by such Person of a demand for
reimbursement);

12

 

     (4) all obligations of such Person to pay the deferred and unpaid purchase price of
property or services, which purchase price is due more than six months after the date of
placing such property in service or taking delivery and title thereto or the completion of
such services, except Trade Payables;

     (5) all Capitalized Lease Obligations and Attributable Debt;

     (6) all Indebtedness of other Persons secured by a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person; provided that the amount
of such Indebtedness shall be the lesser of (A) the fair market value of such asset at such
date of determination and (B) the amount of such Indebtedness;

     (7) all Indebtedness of other Persons Guaranteed by such Person to the extent such
Indebtedness is Guaranteed by such Person;

     (8) to the extent not otherwise included in this definition, obligations under
Commodity Agreements, Currency Agreements and Interest Rate Agreements (other than Commodity
Agreements, Currency Agreements and Interest Rate Agreements designed solely to protect the
Company or its Restricted Subsidiaries against fluctuations in commodity prices, foreign
currency exchange rates or interest rates and that do not increase the Indebtedness of the
obligor outstanding at any time other than as a result of fluctuations in commodity prices,
foreign currency exchange rates or interest rates or by reason of fees, indemnities and
compensation payable thereunder); and

     (9) all Disqualified Stock issued by such Person with the amount of Indebtedness
represented by such Disqualified Stock being equal to the greater of its
voluntary or involuntary liquidation preference and its maximum fixed repurchase price,
but excluding accrued dividends, if any.

     The amount of Indebtedness of any Person at any date shall be the outstanding balance at such
date of all unconditional obligations as described above and, with respect to contingent
obligations, the maximum liability upon the occurrence of the contingency giving rise to the
obligation, provided that:

     (A) the amount outstanding at any time of any Indebtedness issued with original issue
discount is the face amount of such Indebtedness less the remaining unamortized portion of
the original issue discount of such Indebtedness at such time as determined in conformity
with GAAP;

     (B) money borrowed and set aside at the time of the Incurrence of any Indebtedness in
order to prefund the payment of the interest on such Indebtedness shall not be deemed to be
“Indebtedness” so long as such money is held to secure the payment of such interest; and

     (C) Indebtedness shall not include:

     (x) any liability for federal, state, local or other taxes;

13

 

     (y) obligations in respect of performance, bid and surety bonds and completion
guarantees in respect of activities being performed by, on behalf of or for the
benefit of the Company or its Restricted Subsidiaries; or

     (z) agreements providing for indemnification, adjustment of purchase price or
similar obligations, or Guarantees or letters of credit, surety bonds or performance
bonds securing any obligations of the Company or any of its Restricted Subsidiaries
pursuant to such agreements, in any case, Incurred in connection with the
disposition of any business, assets or Restricted Subsidiary (other than Guarantees
of Indebtedness Incurred by any Person acquiring all or any portion of such
business, assets or Restricted Subsidiary for the purpose of financing such
acquisition), so long as the principal amount does not to exceed the gross proceeds
actually received by the Company or any Restricted Subsidiary in connection with
such disposition.

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

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

     “Initial Notes” means the first $500.0 aggregate principal amount of Notes issued
under this Indenture on the date hereof.

     “Initial Subsidiary Guarantors” means each Restricted Subsidiary of the Company (other
than HBI Playtex BATH LLC and those that are a Foreign Subsidiary or an Immaterial Subsidiary)
existing on the Closing Date.

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

     “Interest Period” means the period commencing on and including an interest payment
date and ending on and including the day immediately preceding the next succeeding interest payment
date, with the exception that the first Interest Period shall commence on and include the date of
this Indenture and end on and include June 15, 2007.

     “Interest Rate Agreement” means any interest rate protection agreement, interest rate
future agreement, interest rate option agreement, interest rate swap agreement (whether fixed to
floating or floating to fixed), interest rate cap agreement, interest rate collar agreement,
interest rate hedge agreement, option or future contract or other similar agreement or arrangement.

     “Investment” in any Person means any direct or indirect advance, loan or other
extension of credit (including, without limitation, by way of Guarantee or similar arrangement, but
excluding advances to customers or suppliers in the ordinary course of business that are, in
conformity with GAAP, recorded as accounts receivable, prepaid expenses or deposits on the balance
sheet of the Company or its Restricted Subsidiaries and endorsements for collection or deposit
arising in the ordinary course of business) or capital contribution to (by means of any transfer of
cash or other property to others or any payment for property or services for the account or use of
others), or any purchase or acquisition of Capital Stock, bonds, notes,

14

 

debentures or other similar
instruments issued by, such Person and shall include (1) the designation of a Restricted Subsidiary
as an Unrestricted Subsidiary and (2) the retention of the Capital Stock (or any other Investment)
by the Company or any of its Restricted Subsidiaries of (or in) any Person that has ceased to be a
Restricted Subsidiary, including without limitation, by reason of any transaction permitted by
clause (3) or (4) of Section 4.16. For purposes of the definition of “Unrestricted Subsidiary” and
Section 4.07, (a) the amount of or a reduction in an Investment shall be equal to the fair market
value thereof at the time such Investment is made or reduced and (b) in the event the Company or a
Restricted Subsidiary makes an Investment by transferring assets to any Person and as part of such
transaction receives Net Cash Proceeds, the amount of such Investment shall be the fair market
value of the assets less the amount of Net Cash Proceeds so received, provided the Net Cash
Proceeds are applied in accordance with Section 4.10.

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

     “Leverage Ratio” means, as of any date, the ratio of

     (a) Total Debt outstanding on the last day of the most recently ended fiscal quarter for which
reports have been filed with the SEC or provided to the Trustee

     to

     (b) Consolidated EBITDA computed for the then most recent four fiscal quarters prior to such
date for which reports have been filed with the SEC or provided to the Trustee;

provided that, for purposes of calculating the Leverage Ratio with respect to the four
consecutive fiscal quarter period ending (i) December 30, 2006, Consolidated EBITDA shall be actual
Consolidated EBITDA for the fiscal quarter ending on December 30, 2006 multiplied by four; (ii)
March 31, 2007, Consolidated EBITDA shall be actual Consolidated EBITDA for the two fiscal quarter
period ending on March 31, 2007 multiplied by two; and (iii) June 30, 2007, Consolidated EBITDA
shall be actual Consolidated EBITDA for the three fiscal quarter period ending on June 30, 2007
multiplied by one and one-third.

     “LIBOR”, with respect to an Interest Period, will be the rate (expressed as a
percentage per annum) for deposits in United States dollars for a six-month period beginning on the
second London Banking Day after the Determination Date that appears on Telerate Page 3750 as of
11:00 a.m., London time, on the Determination Date. If Telerate Page 3750 does not include such a
rate or is unavailable on a Determination Date, the Calculation Agent will request the principal
London office of each of four major banks in the London interbank market, as selected by the
Calculation Agent, to provide such bank’s offered quotation (expressed as a percentage per annum),
as of approximately 11:00 a.m., London time, on such Determination Date, to prime banks in the
London interbank market for deposits in a Representative Amount in U.S. dollars for a six-month
period beginning on the second London Banking Day after the Determination Date. If at least two
such offered quotations are so provided, LIBOR for the Interest Period will be the arithmetic mean
of such quotations. If fewer than two such quotations are so provided, the Calculation Agent will
request each of three major banks in New York City, as selected by the

15

 

Calculation Agent, to
provide such bank’s rate (expressed as a percentage per annum), as of approximately 11:00 a.m., New
York City time, on such Determination Date, for loans in a Representative Amount in United States
dollars to leading European banks for a six-month period beginning on the second London Banking Day
after the Determination Date. If at least two such rates are so provided, LIBOR for the Interest
Period will be the arithmetic mean of such rates. If fewer than two such rates are so provided,
then LIBOR for the Interest Period will be LIBOR in effect with respect to the immediately
preceding Interest Period.

     “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of
any kind (including, without limitation, any conditional sale or other title retention agreement or
lease in the nature thereof or any agreement to give any security interest).

     “London Banking Day” is any day in which dealings in U.S. dollars are transacted or,
with respect to any future date, are expected to be transacted in the London interbank market.

     “Material Adverse Effect” means a material adverse effect on (i) the business,
financial condition, operations, performance, or assets of the Company or the Company and its
Restricted Subsidiaries (other than a Receivables Subsidiary) taken as a whole, (ii) the rights and
remedies of any Holder under this Indenture or the Registration Rights Agreement or (iii) the
ability of the
Company or its Restricted Subsidiaries to perform its obligations under this Indenture or the
Registration Rights Agreement.

     “Moody’s” means Moody’s Investors Service, Inc. and its successors and assigns.

     “Net Cash Proceeds” means:

     (a) with respect to any Asset Sale, the proceeds of such Asset Sale in the form of cash
or cash equivalents, including payments in respect of deferred payment obligations (to the
extent corresponding to the principal, but not interest, component thereof) when received in
the form of cash or cash equivalents and proceeds from the conversion of other property
received when converted to cash or cash equivalents, net of:

     (1) brokerage commissions and other fees and expenses (including fees and
expenses of counsel and investment bankers) related to such Asset Sale;

     (2) provisions for all taxes (whether or not such taxes will actually be paid
or are payable) as a result of such Asset Sale without regard to the consolidated
results of operations of the Company and its Restricted Subsidiaries, taken as a
whole;

     (3) payments made to repay Indebtedness or any other obligation outstanding at
the time of such Asset Sale that either (x) is secured by a Lien on the property or
assets sold or (y) is required to be paid as a result of such sale; and

     (4) appropriate amounts to be provided by the Company or any Restricted
Subsidiary as a reserve against any liabilities associated with such Asset Sale,
including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities under

16

 

any
indemnification obligations associated with such Asset Sale, all as determined in
conformity with GAAP; and

     (b) with respect to any issuance or sale of Capital Stock, the proceeds of such
issuance or sale in the form of cash or cash equivalents, including payments in respect of
deferred payment obligations (to the extent corresponding to the principal, but not
interest, component thereof) when received in the form of cash or cash equivalents and
proceeds from the conversion of other property received when converted to cash or cash
equivalents, net of attorney’s fees, accountants’ fees, underwriters’ or placement agents’
fees, discounts or commissions and brokerage, consultant and other fees incurred in
connection with such issuance or sale and net of taxes paid or payable as a result thereof.

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

     “Note Guarantee” means any Guarantee of the obligations of the Company under this
Indenture and the Notes by any Subsidiary Guarantor.

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

     “Obligors” means each of the Company and all Subsidiary Guarantors and
“Obligor” means each of the Company and each Subsidiary Guarantor individually.

     “Offer to Purchase” means an offer to purchase Notes by the Company from the Holders
commenced by mailing a notice to the Trustee and each Holder stating:

     (1) the provision of this Indenture pursuant to which the offer is being made and that
all Notes validly tendered will be accepted for payment on a pro rata basis;

     (2) the purchase price and the date of purchase, which shall be a Business Day no
earlier than 30 days nor later than 60 days from the date such notice is mailed (the
“Payment Date”);

     (3) that any Note not tendered will continue to accrue interest pursuant to its terms;

     (4) that, unless the Company defaults in the payment of the purchase price, any Note
accepted for payment pursuant to the Offer to Purchase shall cease to accrue interest on and
after the Payment Date;

     (5) that Holders electing to have a Note purchased pursuant to the Offer to Purchase
will be required to surrender the Note, together with the form entitled “Option of the
Holder to Elect Purchase” on the reverse side of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on the Business Day
immediately preceding the Payment Date;

17

 

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

     (7) that Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered;
provided that each Note purchased and each new Note issued shall be in a principal
amount of $1,000 or integral multiples of $1,000.

     On the Payment Date, the Company shall (a) accept for payment on a pro rata basis Notes or
portions thereof tendered pursuant to an Offer to Purchase; (b) deposit with the Paying Agent money
sufficient to pay the purchase price of all Notes or portions thereof so accepted; and (c) deliver,
or cause to be delivered, to the Trustee all Notes or portions thereof so accepted together
with an Officers’ Certificate specifying the Notes or portions thereof accepted for payment by
the Company. The Paying Agent shall promptly mail to the Holders of Notes so accepted payment in
an amount equal to the purchase price, and the Trustee shall promptly authenticate and mail to such
Holders a new Note equal in principal amount to any unpurchased portion of the Note surrendered;
provided that each Note purchased and each new Note issued shall be in a principal amount
of $1,000 or integral multiples of $1,000. the Company will publicly announce the results of an
Offer to Purchase as soon as practicable after the Payment Date. The Trustee shall act as the
Paying Agent for an Offer to Purchase. the Company will comply with Rule 14e-1 under the Exchange
Act and any other securities laws and regulations thereunder, to the extent such laws and
regulations are applicable, in the event that the Company is required to repurchase Notes pursuant
to an Offer to Purchase. To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Indenture relating to an Offer to Purchase, the Company will
comply with the applicable securities laws and regulations and will not be deemed to have breached
its obligations under such provisions of this Indenture by virtue of such conflict.

     “Offering Memorandum” means the offering memorandum dated December 11, 2006 relating
to the Initial Notes.

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

     “Officers’ Certificate” means a certificate signed on behalf of the Company by at
least two Officers of the Company, one of whom must be the principal executive officer, the
principal financial officer, the treasurer or the principal accounting officer of the Company, that
meets the requirements of Section 13.05 hereof.

     “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable
to the Trustee, that meets the requirements of Section 13.05 hereof. The counsel may be an
employee of or counsel to the Company or any Subsidiary of the Company.

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

     “Permitted Additional Restricted Payment” means, for any Fiscal Year set forth below,
Restricted Payments made by the Company in the amount set forth opposite such Fiscal Year:

	 	 	 
	Fiscal Year	 	Cash Amount
	2006

	 	$24.0 million
	2007

	 	$30.0 million
	2008

	 	$36.0 million
	2009

	 	$42.0 million
	2010 and thereafter

	 	$48.0 million

; provided, to the extent that the amount of Permitted Additional Restricted Payments made
by the Company during any Fiscal Year is less than the aggregate amount permitted (including after
giving effect to this proviso) for such Fiscal Year, then such unutilized amount may be carried
forward and utilized by the Company to make Permitted Additional Restricted Payments in any
succeeding Fiscal Year or Years and provided further that, for Fiscal Year 2009 and
each Fiscal Year thereafter, the amounts set forth above in such Fiscal Years shall be increased by
an additional $120.0 million so long as both before and after giving effect to such Restricted
Payment, the Leverage Ratio is less than 3.75:1.00.

     “Permitted Business” means the business of the Company and its Subsidiaries engaged in
on the Closing Date and any other activities that are reasonably related, supportive,
complementary, ancillary or incidental thereto or reasonable extensions thereof.

     “Permitted Cash Restructuring Charge Amount” means, $120.0 million in the aggregate
for Fiscal Year 2006 and all Fiscal Years ending after the Closing Date.

     “Permitted Cash Spin-Off Charge Amount” means, for any Fiscal Year set forth below,
the amount set forth opposite such Fiscal Year:

	 	 	 
	Fiscal Year	 	Cash Amount
	2006

	 	$20.0 million
	2007

	 	$55.0 million

     “Permitted Investment” means:

     (1) an Investment in the Company or a Subsidiary Guarantor or a Person which will, upon
the making of such Investment, become a Restricted Subsidiary;

     (2) Temporary Cash Investments;

     (3) payroll, travel and similar advances to cover matters that are expected at the time
of such advances ultimately to be treated as expenses in accordance with GAAP;

19

 

     (4) stock, obligations or securities received in satisfaction of judgments;

     (5) an Investment in an Unrestricted Subsidiary consisting solely of an Investment in
another Unrestricted Subsidiary;

     (6) Commodity Agreements, Interest Rate Agreements and Currency Agreements intended to
protect the Company or its Restricted Subsidiaries against fluctuations in commodity prices,
interest rates or foreign currency exchange rates or manage interest rate risk;

     (7) loans and advances to employees and officers of the Company and its Restricted
Subsidiaries made in the ordinary course of business for bona fide business purposes not to
exceed $12.0 million in the aggregate at any one time outstanding;

     (8) Investments in securities of trade creditors or customers received

     (a) pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of such trade creditors or customers, or

     (b) in settlement of delinquent obligations of, and other disputes with,
customers, suppliers and others, in each case arising in the ordinary course of
business or otherwise in satisfaction of a judgment;

     (9) Investments made by the Company or its Restricted Subsidiaries consisting of
consideration received in connection with an Asset Sale made in compliance with Section
4.10; or

     (10) Investments of a Person or any of its Subsidiaries existing at the time such
Person becomes a Restricted Subsidiary of the Company or at the time such Person merges or
consolidates with the Company or any of its Restricted Subsidiaries, in either case, in
compliance with this Indenture; provided that such Investments were not made by such
Person in connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary of the Company or such merger or consolidation;

     (11) Investments in a Receivables Subsidiary or any Investment by a Receivables
Subsidiary in any other Person under a Permitted Securitization; provided that any
Investment in a Receivables Subsidiary is in the form of a Purchase Money Note, contribution
of additional receivables and related assets or any equity interests;

     (12) Investments to the extent made in exchange for the Issuance of Capital Stock
(other than Disqualified Stock) of the Company;

     (13) any Investment made within 60 days after the date of the commitment to make the
Investment, that when such commitment was made, would have complied with the terms of this
Indenture;

     (14) repurchases of the Notes; and

20

 

     (15) other Investments made since the date of this Indenture that do not exceed, at any
one time outstanding, $100.0 million.

     “Permitted Liens” means:

     (1) Liens in connection with a Permitted Securitization;

     (2) Liens existing as of the Closing Date and disclosed in Item 7.2.3(c) of the
disclosure schedule to the Credit Agreement securing Indebtedness existing as of the Closing
Date which is identified in Item 7.2.2(c) of the disclosure schedule to the Credit Agreement
and refinancings, refundings, reallocations, renewals or extensions of such Indebtedness;
provided that, no such Lien shall encumber any additional property (except for
accessions to such property and the products and proceeds thereof) and the amount of
Indebtedness secured by such Lien is not increased from that existing on the Closing Date;

     (3) Liens securing Indebtedness of the type permitted by clause (7) of Section 4.09
that, (i) such Lien is granted within 270 days after such Indebtedness is incurred, (ii) the
Indebtedness secured thereby does not exceed the lesser of the cost or the fair market value
of the applicable property, improvements or equipment at the time of such acquisition (or
construction) and (iii) such Lien secures only the assets that are the subject of the
Indebtedness referred to in such clause;

     (4) Liens securing Indebtedness permitted by under clause (7) of Section 4.09;
provided that, such Liens existed prior to such Person becoming a Restricted
Subsidiary, were not created in anticipation thereof and attach only to specific tangible
assets of such Person;

     (5) Liens in favor of carriers, warehousemen, mechanics, repairmen, materialmen,
customs and revenue authorities and landlords and other similar statutory Liens and Liens in
favor of suppliers (including sellers of goods pursuant to customary reservations or
retention of title, in each case) granted in the ordinary course of business for amounts not
overdue for a period of more than 60 days or are being diligently contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP shall have
been set aside on its books or with respect to which the failure to make payment could not
reasonably be expected to have a Material Adverse Effect;

     (6) Liens incurred or deposits made in the ordinary course of business in connection
with worker’s compensation, unemployment insurance or other forms of governmental insurance
or benefits, or to secure performance of tenders, statutory obligations, bids, leases, trade
contracts or other similar obligations (other than for borrowed money) entered into in the
ordinary course of business or to secure obligations on surety and appeal bonds or
performance bonds, performance and completion guarantees and other obligations of a like
nature (including those to secure health, safety and environmental obligations) incurred in
the ordinary course of business and (ii)

21

 

obligations in respect of letters of credit or bank
guarantees that have been posted to support payment of the items set forth in the
immediately preceding clause (i);

     (7) judgment Liens that are being appealed in good faith or with respect to which
execution has been stayed or the payment of which is covered in full (subject to a
customary deductible) by insurance maintained with responsible insurance companies and
which do not otherwise result in an Event of Default;

     (8) easements, rights-of-way, covenants, conditions, building codes, restrictions,
reservations, minor defects or irregularities in title and other similar encumbrances and
matters that would be disavowed by a full survey of real property not interfering in any
material respect with the value or use of the affected or encumbered real property to which
such Lien is attached;

     (9) Liens securing Indebtedness permitted by clause (8) of Section 4.09;

     (10) Liens arising solely by virtue of any statutory or common law provision relating
to banker’s liens, rights of set-off or similar rights and remedies as to deposit accounts
or other funds maintained with a creditor depository institution and Liens attaching to
commodity trading accounts or other commodities brokerage accounts incurred in the ordinary
course of business;

     (11) (i) licenses, sublicenses, leases or subleases granted to third Persons in the
ordinary course of business not interfering in any material respect with the business of the
Company or any of its Restricted Subsidiaries, (ii) other agreements with respect to the use
and occupancy of real property entered into in the ordinary course of business or in
connection with an Asset Sale permitted by Section 4.10 or (iii) the rights reserved or
vested in any Person by the terms of any lease, license, franchise, grant or permit held by
the Company or any of its Restricted Subsidiaries or by a statutory provision, to terminate
any such lease, license, franchise, grant or permit, or to require annual or periodic
payments as a condition to the continuance thereof;

     (12) Liens on the property of the Company or any of its Restricted Subsidiaries
securing (i) the non-delinquent performance of bids, trade contracts (other than for
borrowed money), leases, licenses and statutory obligations, (ii) Contingent Liabilities on
surety and appeal bonds, and (iii) other non-delinquent obligations of a like nature; in
each case, incurred in the ordinary course of business;

     (13) Liens on Receivables transferred to a Receivables Subsidiary under a Permitted
Securitization;

     (14) Liens upon specific items or inventory or other goods and proceeds of the Company
or any of its Restricted Subsidiaries securing such Person’s obligations in respect of
bankers’ acceptances or documentary letters of credit issued or created for the account of
such Person to facilitate the shipment or storage of such inventory or other goods;

22

 

     (15) Liens (i) (A) on advances of cash or Cash Equivalents in favor of the seller of
any property to be acquired as a Permitted Investment to be applied against the purchase
price for such Permitted Investment and (B) consisting of an agreement involving an Asset
Sale permitted by Section 4.10, in each case under this clause (i),
solely to the extent such Permitted Investment or Asset Sale, as the case may be, would
have been permitted on the date of the creation of such Lien and (ii) on earnest money
deposits of cash or Cash Equivalents made by the Company or any of its Restricted
Subsidiaries in connection with any letter of intent or purchase agreement permitted
hereunder;

     (16) Liens arising from precautionary Uniform Commercial Code financing statement
filings (or similar filings under other applicable Law) regarding leases entered into by the
Company or any of its Restricted Subsidiaries in the ordinary course of business;

     (17) Liens (i) arising out of conditional sale, title retention, consignment or similar
arrangements for sale of goods (including under Article 2 of the UCC) and Liens that are
contractual rights of set-off relating to purchase orders and other similar agreements
entered into by the Company or any of its Restricted Subsidiaries and (ii) relating to the
establishment of depository relations with banks not given in connection with the issuance
of Indebtedness and (iii) relating to pooled deposit or sweep accounts of the Company or any
Restricted Subsidiary to permit satisfaction of overdraft or similar obligations in each
case in the ordinary course of business and not prohibited by this Agreement;

     (18) ground leases in respect of real property on which facilities owned or leased by
the Company or any of its Restricted Subsidiaries are located or any Liens senior to any
lease, sub-lease or other agreement under which the Company or any of its Restricted
Subsidiaries uses or occupies any real property;

     (19) Liens constituting security given to a public or private utility or any
Governmental Authority as required in the ordinary course of business;

     (20) pledges or deposits of cash and Cash Equivalents securing deductibles,
self-insurance, co-payment, co-insurance, retentions and similar obligations to providers of
insurance in the ordinary course of business;

     (21) Liens on (A) incurred premiums, dividends and rebates which may become payable
under insurance policies and loss payments which reduce the incurred premiums on such
insurance policies and (B) rights which may arise under State insurance guarantee funds
relating to any such insurance policy, in each case securing Indebtedness permitted to be
incurred pursuant to clause (12)(i) of Section 4.09; and

     (22) Liens for taxes not at the time delinquent or thereafter payable without penalty
or being diligently contested in good faith by appropriate proceedings and for which

adequate reserves in accordance with GAAP shall have been set aside on its books

23

 

or with
respect to which the failure to make payment could not reasonably be expected to have a
Material Adverse Effect.

     “Permitted Securitization” means any sale, transfer or other disposition by the
Company or any of its Restricted Subsidiaries of Receivables and related collateral, credit support
and similar rights and any other assets that are customarily transferred in a securitization of
receivables, pursuant to one or more securitization programs, to a Receivables Subsidiary or a
Person who is not an Affiliate of the Company; provided that (i) the consideration to be
received by the Company and its Restricted Subsidiaries other than a Receivables Subsidiary for any
such disposition consists of cash, a promissory note or a customary contingent right to receive
cash in the nature of a “hold-back” or similar contingent right, (ii) no Default shall have
occurred and be continuing or would result therefrom, and (iii) the aggregate outstanding balance
of the Indebtedness in respect of all such programs at any point in time is not in excess of $500.0
million.

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

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

     “Pro Forma Cost Savings” means with respect to any acquisition or disposition
transaction, cost savings reasonably expected to be realized in connection with that transaction,
as determined in good faith by the Board of Directors, whose determination shall be conclusive and
evidenced by a resolution of the Board of Directors, in consultation with a nationally recognized
accounting firm (regardless of whether those cost savings could then be reflected in pro forma
financial statements under GAAP, Regulation S-X promulgated by the SEC or any other regulation or
policy of the SEC).

     “Purchase Money Note” means a promissory note evidencing a line of credit, or
evidencing other Indebtedness owed to the Company or any Restricted Subsidiary in connection with a
Permitted Securitization, which note shall be repaid from cash available to the maker of such note,
other than amounts required to be established as reserves, amounts paid to investors in respect of
interest, principal and other amounts owing to such investors and amounts paid in connection with
the purchase of newly generated accounts receivable.

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

     “Receivable” shall mean a right to receive payment arising from a sale or lease of
goods or the performance of services by a Person pursuant to an arrangement with another Person
pursuant to which such other Person is obligated to pay for goods or services under terms that
permit the purchase of such goods and services on credit and shall include, in any event, any items
of property that would be classified as an “account,” “chattel paper,” “payment intangible” or
“instrument” under the UCC and any supporting obligations.

24

 

     “Receivables Subsidiary” shall mean any Wholly Owned Restricted Subsidiary of the
Company (or another Person in which the Company or any Restricted Subsidiary makes an Investment
and to which the Company or one or more of its Restricted Subsidiaries transfer Receivables and
related assets) which engages in no activities other than in connection with the financing of
Receivables and which is designated by the Board of Directors of the applicable Restricted
Subsidiary (as provided below) as a Receivables Subsidiary and which meets the following
conditions:

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

     (i) is guaranteed by the Company or any Restricted Subsidiary (that is not a
Receivables Subsidiary);

     (ii) is recourse to or obligates the Company or any Restricted Subsidiary (that
is not a Receivables Subsidiary); or

     (iii) subjects any property or assets of the Company or any Restricted
Subsidiary (that is not a Receivables Subsidiary), directly or indirectly,
contingently or otherwise, to the satisfaction thereof;

     (b) with which neither the Company nor any Restricted Subsidiary (that is not a
Receivables Subsidiary) has any material contract, agreement, arrangement or understanding
(other than Standard Securitization Undertakings); and

     (c) to which neither the Company nor any Restricted Subsidiary (that is not a
Receivables Subsidiary) has any obligation to maintain or preserve such entity’s financial
condition or cause such entity to achieve certain levels of operating results.

Any such designation by the Board of Directors of the applicable Restricted Subsidiary shall be
evidenced by a certified copy of the resolution of the Board of Directors of such Restricted
Subsidiary giving effect to such designation and an officers certificate certifying, to the best of
such officer’s knowledge and belief, that such designation complies with the foregoing conditions.

     “Registration Rights Agreement” means the registration rights agreement, dated as of
the Closing Date, among the Company, the Subsidiary Guarantors and the Initial Purchasers, as the
same may be amended or modified from time to time in accordance with the terms thereof.

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

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

     “Regulation S Permanent Global Note” means a permanent Global Note substantially in
the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement
Legend and deposited with or on behalf of and registered in the name of the Depositary or its
nominee,

25

 

issued in a denomination equal to the outstanding principal amount of the Temporary Regulation
S Global Note upon expiration of the Restricted Period.

     “Replacement Assets” means, on any date, property or assets (other than current
assets) of a nature or type or that are used in a Permitted Business (or an Investment in a
Permitted Business).

     “Representative” means this Indenture trustee or other trustee, agent or
representative.

     “Representative Amount” means a principal amount of not less than U.S. $1.0 million
for a single transaction in the relevant market at the relevant time.

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

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

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

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

     “Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted
Subsidiary.

     “Rule 144” means Rule 144 promulgated under the Securities Act.

     “Rule 144A” means Rule 144A promulgated under the Securities Act.

     “Rule 903” means Rule 903 promulgated under the Securities Act.

     “Rule 904” means Rule 904 promulgated under the Securities Act.

     “S&P” means Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies,
and its successors.

     “Sale and Leaseback Transaction” means a transaction whereby a Person sells or
otherwise transfers assets or properties and then or thereafter leases such assets or properties or
any part thereof or any other assets or properties which such Person intends to use for
substantially the same purpose or purposes as the assets or properties sold or otherwise
transferred.

     “SEC” means the U.S. Securities and Exchange Commission or any successor agency.

26

 

     “Second Lien Credit Agreement” means that certain Second Lien Credit Agreement, dated
as of September 5, 2006, among the Company Branded Apparel Limited, Inc., as borrower, the
guarantors party thereto, the several banks and other financial institutions or entities from time
to time party thereto as lenders, Citicorp USA, Inc., as administrative agent, and Merrill Lynch.
Pierce, Fenner & Smith Incorporated and Morgan Stanley Senior Funding, Inc., as joint lead
arrangers and joint book runners.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Shelf Registration Statement” has the meaning set forth in the Registration Rights
Agreement.

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

     “Spin-Off” means the distribution of the Company’s common stock by Sara Lee
Corporation to its stockholders.

     “Standard Securitization Undertakings” shall mean representations, warranties,
covenants and indemnities entered into by the Company or any Restricted Subsidiary which are
reasonably customary in a securitization of Receivables.

     “Stated Maturity” means, (1) with respect to any debt security, the date specified in
such debt security as the fixed date on which the final installment of principal of such debt
security is due and payable and (2) with respect to any scheduled installment of principal of or
interest on any debt security, the date specified in such debt security as the fixed date on which
such installment is due and payable.

     “Subsidiary” means, with respect to any Person, any corporation, association or other
business entity of which more than 50% of the voting power of the outstanding Voting Stock is
owned, directly or indirectly, by such Person and one or more other Subsidiaries of such Person.

     “Subsidiary Guarantor” means any Initial Subsidiary Guarantor and any other Restricted
Subsidiary of the Company which provides a Note Guarantee of the Company’s obligations under this
Indenture and the Notes pursuant to Section 4.19.

     “Telerate Page 3750” means the display designated as “Page 3750” on the Moneyline
Telerate service (or such other page as may replace Page 3750 on that service).

     “Temporary Cash Investment” means any of the following:

     (a) any direct obligation of (or unconditionally guaranteed by) the United States or a
State thereof (or any agency or political subdivision thereof, to the extent such
obligations are supported by the full faith and credit of the United States or a State
thereof) maturing not more than one year after such time;

27

 

     (b) commercial paper maturing not more than 270 days from the date of issue, which is
issued by (i) a corporation (other than an Affiliate of the Company or any Subsidiary of the
Company) organized under the laws of any State of the United States or of the District of
Columbia and rated A 1 or higher by S&P or P 1 or higher by Moody’s;

     (c) any certificate of deposit, time deposit or bankers acceptance, maturing not more
than one year after its date of issuance, which is issued by any bank organized under the
laws of the United States (or any State thereof) and which has (A) a credit rating of A2 or
higher from Moody’s or A or higher from S&P and (B) a combined capital and surplus greater
than $500.0 million;

     (d) any repurchase agreement having a term of 30 days or less entered into with any
commercial banking institution satisfying the criteria set forth in clause (c) which (i) is
secured by a fully perfected security interest in any obligation of the type described in
clause (a), and (ii) has a market value at the time such repurchase agreement is entered
into of not less than 100% of the repurchase obligation of such commercial banking
institution thereunder;

     (e) with respect to any Foreign Subsidiary, non-Dollar denominated (i) certificates of
deposit of, bankers acceptances of, or time deposits with, any commercial bank which is
organized and existing under the laws of the country in which such Person maintains its
chief executive office or principal place of business or is organized provided such
country is a member of the Organization for Economic Cooperation and Development, and which
has a short-term commercial paper rating from S&P of at least “A-1” or the equivalent
thereof or from Moody’s of at least “P-1” or the equivalent thereof (any such bank being an
“Approved Foreign Bank”) and maturing within one year of the date of acquisition and (ii)
equivalents of demand deposit accounts which are maintained with an Approved Foreign Bank;
or

     (f) readily marketable obligations issued or directly and fully guaranteed or insured
by the government or any agency or instrumentality of any member nation of the European
Union whose legal tender is the Euro and which are denominated in Euros or any other foreign
currency comparable in credit quality and tenor to those referred to above and customarily
used by corporations for cash management purposes in any jurisdiction outside the United
States to the extent reasonably required in connection with any business conducted by any
Foreign Subsidiary organized in such jurisdiction, having (i) one of the three highest
ratings from either Moody’s or S&P and (ii) maturities of not more than one year from the
date of acquisition thereof; provided that the full faith and credit of any such
member nation of the European Union is pledged in support thereof.

     “Temporary Regulation S Global Note” means a temporary Global Note substantially in
the form of Exhibit A hereto bearing the Global Note Legend, the Private Placement Legend
and the legend specified in Section 2.06(g)(3) and deposited with or on behalf of and registered in
the name of the Depositary or its nominee, issued in a denomination equal to the outstanding
principal amount of the Notes initially sold in reliance on Rule 903 of Regulation S.

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     “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect
on the date on which this Indenture is qualified thereunder, as may be amended from time to time.

     “Total Assets” means the total consolidated assets of the Company and its Restricted
Subsidiaries, determined on a consolidated basis in accordance with GAAP, as shown on the most
recent balance sheet of the Company filed with the SEC or delivered to the Trustee.

     “Total Debt” means, on any date, the outstanding principal amount of all:

     (1) obligations of such Person for borrowed money or advances and all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments;

     (2) monetary obligations, contingent or otherwise, relative to the face amount of all
letters of credit, whether or not drawn, and banker’s acceptances issued for the account of
such Person;

     (3) all Capitalized Lease Obligations of such Person; and

     (4) the full outstanding balance of trade receivables, notes or other instruments sold
with full recourse (and the portion thereof subject to potential recourse, if sold with
limited recourse), other than in any such case any thereof sold solely for purposes of
collection of delinquent accounts and other than in connection with any Permitted
Securitization,

of the Company and its Subsidiaries (other than a Receivables Subsidiary), in each case exclusive
of intercompany Indebtedness between the Company and its Subsidiaries and any Contingent Liability
in respect of any of the foregoing.

     “Trade Payables” means, with respect to any Person, any accounts payable or any other
indebtedness or monetary obligation to trade creditors created, assumed or Guaranteed by such
Person or any of its Subsidiaries arising in the ordinary course of business in connection with the
acquisition of goods or services.

     “Transaction Date” means, with respect to the Incurrence of any Indebtedness, the date
such Indebtedness is to be Incurred and, with respect to any Restricted Payment, the date such
Restricted Payment is to be made.

     “Transaction” means, collectively, (i) the consummation of the Spin-Off, (ii) the
payment by the Company to Sara Lee Corporation of dividends and other payments in the approximate
amount of $2.4 billion, (iii) the transfer of all the assets and certain associated liabilities of
the branded apparel Americas/Asia business of Sara Lee Corporation to the Company and the sale to
the Company of certain related trademarks and other intellectual property, (iv) the entering into
of the documents governing the Credit Agreement and Second Lien Credit Agreement and the making of
the loans thereunder, (v) the receipt by the Company of the proceeds from unsecured increasing rate
loans and the entering into of the related documents in an aggregate amount of $500.0 million (the
“Bridge Loans”), (vi) the issuance of the Notes and the redemption of the

29

 

Bridge Loans, and (vii) the payment of fees and expenses in connection and in accordance with
the foregoing.

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

     “Treasury Rate” means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two Business Day s prior to the Redemption Date (or, if such
Statistical Release is no longer published, any publicly available source of similar market data))
most nearly equal to the period from the Redemption Date to December 15, 2008; provided,
however, that if the period from the Redemption Date to December 15,2008, is less than one
year, the weekly average yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year will be used.

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

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

     “Unrestricted Subsidiary” means (1) any Foreign Supply Chain Entity (as defined in the
Credit Agreement) listed on Item 1.1 of the Disclosure Schedule (as defined in the Credit
Agreement) to the Credit Agreement, as of the Closing Date, (2) any Subsidiary of the Company that
at the time of determination shall be designated an Unrestricted Subsidiary by the Board of
Directors in the manner provided below and (3) any Subsidiary of an Unrestricted Subsidiary. The
Board of Directors may designate any Restricted Subsidiary (including any newly acquired or newly
formed Subsidiary of the Company) to be an Unrestricted Subsidiary unless such Subsidiary owns any
Capital Stock of, or owns or holds any Lien on any property of, the Company or any Restricted
Subsidiary; provided that (A) any Guarantee by the Company or any Restricted Subsidiary of
any Indebtedness of the Subsidiary being so designated shall be deemed an “Incurrence” of such
Indebtedness and an “Investment” by the Company or such Restricted Subsidiary (or both, if
applicable) at the time of such designation; (B) either (I) the Subsidiary to be so designated has
total assets of $1.0 million or less or (II) if such Subsidiary has assets greater than $1.0
million such designation would be permitted under Section 4.07 and (C) if applicable, the
Incurrence of Indebtedness and the Investment referred to in clause (A) of this proviso would be
permitted under Section 4.07 and Section 4.09. The Board of Directors may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided that (a) no Default or
Event of Default shall have occurred and be continuing at the time of or after giving effect to
such designation and (b) all Liens and Indebtedness of such Unrestricted Subsidiary outstanding
immediately after such designation would, if Incurred at such time, have been permitted to be
Incurred (and shall be deemed to have been Incurred) for all purposes of this Indenture. Any such
designation by the Board of Directors shall be evidenced to the Trustee by promptly filing with the
Trustee a copy of the resolution of the Board of Directors giving effect to such

30

 

designation and an Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

     “U.S. Government Obligations” means securities that are (1) direct obligations of the
United States of America for the payment of which its full faith and credit is pledged or (2)
obligations of a Person controlled or supervised by and acting as an agency or instrumentality of
the United States of America the 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 Company thereof at any time prior to the Stated Maturity of the
Notes, and shall also include a depository receipt issued by a bank or trust company as custodian
with respect to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the account of the
holder of a depository receipt; provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of such depository
receipt from any amount received by the custodian in respect of the U.S. Government Obligation or
the specific payment of interest on or principal of the U.S. Government Obligation evidenced by
such depository receipt.

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

     “Voting Stock” means with respect to any Person, Capital Stock of any class or kind
ordinarily having the power to vote for the election of directors, managers or other voting members
of the governing body of such Person.

     “Wholly Owned” of any specified Person, as of any date means the Capital Stock of such
Person (other than directors’ and foreign nationals’ qualifying shares) that is at the time
entitled to vote in the election of the Board of Directors of such Person is owned by the referent
Person.

     SECTION 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Authentication Order”

	 	 	2.02	 
	“Change of Control Offer”

	 	 	4.15	 
	“Change of Control Payment”

	 	 	4.15	 
	“Change of Control Payment Date”

	 	 	4.15	 
	“Covenant Defeasance”

	 	 	8.03	 
	“DTC”

	 	 	2.03	 
	“Event of Default”

	 	 	6.01	 
	“Excess Proceeds”

	 	 	4.10	 
	“Legal Defeasance”

	 	 	8.02	 
	“Paying Agent”

	 	 	2.03	 
	“Redemption Date”

	 	 	3.07	 
	“Registrar”

	 	 	2.03	 
	“Restricted Payments”

	 	 	4.07	 

31

 

     SECTION 1.03 Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made
a part of this Indenture.

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

     “indenture securities” means the Notes;

     “indenture security Holder” means a Holder of a Note;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the Notes and the Note Guarantees means the Company and the Subsidiary
Guarantors, respectively, and any successor obligor upon the Notes and the Note Guarantees,
respectively.

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

     SECTION 1.04 Rules of Construction. Unless the context otherwise requires:

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

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

     (3) “or” is not exclusive;

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

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

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

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

ARTICLE 2

THE NOTES

     SECTION 2.01 Form and Dating.

     (a) General. The Notes and the Trustee’s certificate of authentication will be
substantially in the form of Exhibit A hereto. The Notes may have notations,
legends or

32

 

endorsements required by law, stock exchange rule or usage. Each Note will be dated
the date of its authentication. The Notes shall be in denominations of $1,000 and integral
multiples thereof.

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

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

     (c) Temporary Global Notes. Notes offered and sold in reliance on Regulation S
shall be issued initially in the form of the Temporary Regulation S Global Note, which shall
be deposited on behalf of the purchasers of the Notes represented thereby with the Trustee,
as custodian for the Depositary, and registered in the name of the Depositary or the
nominee of the Depositary for the accounts of the designated agents holding on behalf of
Euroclear or Clearstream, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. Following the termination of the Restricted Period, beneficial
interests in the Temporary Regulation S Global Note shall be exchanged for beneficial
interests in the Regulation S Permanent Global Notes pursuant to the Applicable Procedures.
Simultaneously with the authentication of Regulation S Permanent Global Notes, the Trustee
shall cancel the Temporary Regulation S Global Note. The aggregate principal amount of the
Temporary Regulation S Global Note and the Regulation S Permanent Global Notes may from time
to time be increased or decreased by adjustments endorsed thereon as specified in Section
2.01(b) in connection with transfers of interests as hereinafter provided.

     (d) Euroclear and Clearstream Procedures Applicable. The provisions of the
“Operating Procedures of the Euroclear System” and “Terms and Conditions Governing Use of
Euroclear” and the “General Terms and Conditions of Clearstream Banking” and “Customer
Handbook” of Clearstream will be applicable to transfers of beneficial

33

 

interests the Regulation S Global Note that are held by Participants through Euroclear
or Clearstream.

     SECTION 2.02 Execution and Authentication. At least one Officer must sign the Notes
for the Company by manual or facsimile signature.

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

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

     The Trustee will, upon receipt of a written order of the Company signed by two Officers (an
“Authentication Order”), authenticate Notes for original issue up to the aggregate
principal amount stated on the face of the Notes.

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

     SECTION 2.03 Registrar and Paying Agent. The Company will maintain an office or
agency where Notes may be presented for registration of transfer or for exchange
(“Registrar”) and an office or agency where Notes may be presented for payment (“Paying
Agent”). The Registrar will keep a register of the Notes and of their transfer and exchange.
The Company may appoint one or more co-registrars and one or more additional paying agents. The
term “Registrar” includes any co-registrar and the term “Paying Agent” includes any additional
paying agent. The Company may change any Paying Agent or Registrar without notice to any Holder.
The Company will notify the Trustee in writing of the name and address of any Agent not a party to
this Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying
Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may act as Paying
Agent or Registrar.

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

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

     SECTION 2.04 Paying Agent to Hold Money in Trust. The Company will require each
Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust
for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of
principal or premium, if any, or interest on the Notes, and will notify the Trustee of any default
by the Company in making any such payment. While any such default continues, the Trustee may
require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the
Trustee, the Paying Agent (if other than the Company or a Subsidiary) will have no further

34

 

liability for the money. If the Company or a Subsidiary acts as Paying Agent, it will
segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as
Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the Company, the
Trustee will serve as Paying Agent for the Notes.

     SECTION 2.05 Holder Lists. The Trustee will preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of all
Holders and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the
Company will furnish to the Trustee at least seven Business Days before each interest payment date
and at such other times as the Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of the Holders of Notes and
the Company shall otherwise comply with TIA § 312(a).

     SECTION 2.06 Transfer and Exchange.

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

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

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

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

     (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer
and exchange of beneficial interests in the Global Notes will be effected through the Depositary,
in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial

35

 

interests in the Restricted Global Notes will be subject to restrictions on transfer
comparable to those set forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes also will require compliance with either subparagraph
(1) or (2) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable:

     (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial
interests in any Restricted Global Note may be transferred to Persons who take delivery
thereof in the form of a beneficial interest in the same Restricted Global Note in
accordance with the transfer restrictions set forth in the Private Placement Legend;
provided, however, that prior to the expiration of the Restricted Period,
transfers of beneficial interests in the Temporary Regulation S Global Note may not be made
to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial
Purchaser). Beneficial interests in any Unrestricted Global Note may be transferred to
Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted
Global Note. No written orders or instructions shall be required to be delivered to the
Registrar to effect the transfers described in this Section 2.06(b)(1).

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

     (a) both:

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

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

     (b) both:

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

     (2) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Note shall be
registered to effect the transfer or exchange referred to in (1) above,
provided that in no event shall Definitive Notes be issued upon the
transfer or exchange of beneficial interests in the Temporary Regulation S
Global Note prior to (x) the expiration of the Restricted Period and (y) the
receipt by the Registrar of any certificates

36

 

required pursuant to Rule 903 under the Securities Act. Upon
consummation of an Exchange Offer by the Company in accordance with Section
2.06(f) hereof, the requirements of this Section 2.06(b)(2) shall be deemed
to have been satisfied upon receipt by the Registrar of the instructions
contained in the Letter of Transmittal delivered by the Holder of such
beneficial interests in the Restricted Global Notes. Upon satisfaction of
all of the requirements for transfer or exchange of beneficial interests in
Global Notes contained in this Indenture and the Notes or otherwise
applicable under the Securities Act, the Trustee shall adjust the principal
amount of the relevant Global Note(s) pursuant to Section 2.06(h) hereof.

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

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

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

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

     (4) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for
Beneficial Interests in an Unrestricted Global Note. A beneficial interest in any
Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer
complies with the requirements of Section 2.06(b)(2) above and:

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

37

 

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

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

     (d) the Registrar receives the following:

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

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

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

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

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

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

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

     (a) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for a Restricted Definitive Note, a

38

 

certificate from such holder in the form of Exhibit C hereto, including
the certifications in item (2)(a) thereof,

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

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

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

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

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

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

     (2) Beneficial Interests in Temporary Regulation S Global Note to Definitive
Notes. Notwithstanding Sections 2.06(c)(1)(a) and (c) hereof, a beneficial interest in
the Temporary Regulation S Global Note may not be exchanged for a Definitive Note or
transferred to a Person who takes delivery thereof in the form of a Definitive Note prior to
(x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any

39

 

certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act,
except in the case of a transfer pursuant to an exemption from the registration requirements
of the Securities Act other than Rule 903 or Rule 904.

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

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

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

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

     (d) the Registrar receives the following:

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

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

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

     (4) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive
Notes. If any holder of a beneficial interest in an Unrestricted Global Note proposes
to exchange such beneficial interest for a Definitive Note or to transfer such

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

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

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

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

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

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

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

     (e) if such Restricted Definitive Note is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements
of the Securities Act other than those listed in subparagraphs (b) through
(d) above, a certificate to the effect set forth in Exhibit B
hereto,

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including the certifications, certificates and Opinion of Counsel required by
item (3) thereof, if applicable; or

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

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

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

     (a) the Registrar receives the following:

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

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

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

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

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

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

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

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

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

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

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

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

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

     (a) the Registrar receives the following:

     (1) if the Holder of such Restricted Definitive Notes proposes to
exchange such Notes for an Unrestricted Definitive Note, a certificate

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from such Holder in the form of Exhibit C hereto, including the
certifications in item (1)(d) thereof; or

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

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

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

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

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

     (2) Unrestricted Definitive Notes in an aggregate principal amount equal to the
principal amount of the Restricted Definitive Notes accepted for exchange in the Exchange
Offer.

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

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

     (1) Private Placement Legend.

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

“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD
REFERRED TO IN RULE 144(k) UNDER THE SECURITIES ACT AFTER THE ORIGINAL ISSUANCE OF THESE NOTES,
RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO HANESBRANDS INC. OR ANY SUBSIDIARY THEREOF,
(B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR RULE 904 UNDER
THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) OR ANY OTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT OR (E)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHER
JURISDICTIONS, AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED
A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS NOTE
WITHIN THE TIME PERIOD REFERRED TO IN RULE 144(k) UNDER THE SECURITIES ACT AFTER THE ORIGINAL
ISSUANCE OF THESE NOTES, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF
RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO THE TRUSTEE.

AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE
MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE WHICH GOVERNS THIS
NOTE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS
CERTIFICATE IN VIOLATION OF THE FOREGOING RESTRICTIONS.”

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

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

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

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

     (3) Temporary Regulation S Global Note Legend. The Temporary Regulation S
Global Note will bear a legend in substantially the following form:

“THE RIGHTS ATTACHING TO THIS TEMPORARY REGULATION S GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES
GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTE, ARE SPECIFIED IN THE INDENTURE WHICH GOVERNS THIS
NOTE. NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS TEMPORARY REGULATION S GLOBAL NOTE
SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON.”

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

46

 

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

     (i) General Provisions Relating to Transfers and Exchanges.

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

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

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

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

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

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

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

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

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

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

     SECTION 2.07 Replacement Notes. If any mutilated Note is surrendered to the Trustee
or the Company and the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Note, the Company will issue and the Trustee, upon receipt of an Authentication Order,
will authenticate a replacement Note if the Trustee’s requirements are met. If required by the
Trustee or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the
judgment of the Trustee and the Company to protect the Company, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Note is replaced. The Company
may charge for its expenses in replacing a Note.

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

     SECTION 2.08 Outstanding Notes. The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this Section 2.08 or Sections 2.09,
8.02 or 8.03 as not outstanding. Except as set forth in Section 2.09 hereof, a Note does not cease
to be outstanding because the Company or an Affiliate of the Company holds the Note; however, Notes
held by the Company or a Subsidiary of the Company shall not be deemed to be outstanding for
purposes of Section 3.07(a) hereof.

     If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding.

     If the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to
be outstanding and interest on it ceases to accrue.

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

     SECTION 2.09 Treasury Notes. In determining whether the Holders of the required
principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the
Company or any Subsidiary Guarantor, or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any Subsidiary
Guarantor, will be considered as though not outstanding, except that for the purposes of
determining whether the Trustee will be protected in relying on any such direction, waiver or
consent, only Notes that a Responsible Officer of the Trustee actually knows are so owned will be
so disregarded.

     SECTION 2.10 Temporary Notes. Until certificates representing Notes are ready for
delivery, the Company may prepare and the Trustee, upon receipt of an Authentication Order, will
authenticate temporary Notes. Temporary Notes will be substantially in the form of

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certificated Notes but may have variations that the Company considers appropriate for
temporary Notes and as may be reasonably acceptable to the Trustee. Without unreasonable delay,
the Company will prepare and the Trustee will authenticate definitive Notes in exchange for
temporary Notes.

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

     SECTION 2.11 Cancellation. The Company at any time may deliver Notes to the Trustee
for cancellation. The Registrar and Paying Agent will forward to the Trustee any Notes surrendered
to them for registration of transfer, exchange or payment. The Trustee and no one else will cancel
all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation
and will dispose of such canceled Notes (subject to the record retention requirement of the
Exchange Act) in its customary manner. Certification of the destruction of all canceled Notes will
be delivered to the Company. The Company may not issue new Notes to replace Notes that it has paid
or that have been delivered to the Trustee for cancellation.

     SECTION 2.12 Defaulted Interest. If the Company defaults in a payment of interest on
the Notes, it will pay the defaulted interest in any lawful manner plus, to the extent lawful,
interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special
record date, in each case at the rate provided in the Notes and in Section 4.01 hereof. The
Company will notify the Trustee in writing of the amount of defaulted interest proposed to be paid
on each Note and the date of the proposed payment. The Company will fix or cause to be fixed each
such special record date and payment date, provided that no such special record date may be
less than 10 days prior to the related payment date for such defaulted interest. At least 15 days
before the special record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) will mail or cause to be mailed to Holders a
notice that states the special record date, the related payment date and the amount of such
interest to be paid.

ARTICLE 3

REDEMPTION AND PREPAYMENT

     SECTION 3.01 Notices to Trustee. If the Company elects to redeem Notes pursuant to
the optional redemption provisions of Section 3.07 hereof, it must furnish to the Trustee, at least
30 days but not more than 60 days before a Redemption Date, an Officers’ Certificate setting forth:

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

     (2) the Redemption Date;

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

     (4) the redemption price; and

     (5) applicable CUSIP numbers.

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     SECTION 3.02 Selection of Notes to Be Redeemed or Purchased. If less than all of the
Notes are to be redeemed or purchased in an offer to purchase at any time, the Trustee will select
Notes for redemption or purchase as follows:

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

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

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

     The Trustee will promptly notify the Company in writing of the Notes selected for redemption
or purchase and, in the case of any Note selected for partial redemption or purchase, the principal
amount thereof to be redeemed or purchased. Notes and portions of Notes selected will be in
amounts of $1,000 or whole multiples of $1,000. No notes of $1,000 or less shall be redeemed in
part. Except as provided in the preceding sentence, provisions of this Indenture that apply to
Notes called for redemption or purchase also apply to portions of Notes called for redemption or
purchase.

     SECTION 3.03 Notice of Redemption. At least 30 days but not more than 60 days before
a Redemption Date, the Company will mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed at its registered address, except that
redemption notices may be mailed more than 60 days prior to a Redemption Date if the notice is
issued in connection with a defeasance of the Notes or a satisfaction and discharge of this
Indenture pursuant to Articles 8 or 12 of this Indenture.

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

     (1) the Redemption Date;

     (2) the redemption price;

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

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

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

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

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

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

     At the Company’s request, the Trustee will give the notice of redemption in the Company’s name
and the Company’s expense; provided, however, that the Company has delivered to the
Trustee, at least 40 days (unless a shorter time shall be acceptable to the Trustee) prior to the
Redemption Date, an Officers’ Certificate requesting that the Trustee give such notice and setting
forth the information to be stated in such notice as provided in the preceding paragraph.

     SECTION 3.04 Effect of Notice of Redemption. Once notice of redemption is mailed in
accordance with Section 3.03 hereof, Notes called for redemption become irrevocably due and payable
on the Redemption Date at the redemption price. A notice of redemption may not be conditional.

     SECTION 3.05 Deposit of Redemption or Purchase Price. One Business Day prior to the
redemption or purchase date, the Company will deposit with the Trustee or with the Paying Agent
money sufficient to pay the redemption or purchase price of and accrued interest on all Notes to be
redeemed or purchased on that date. The Trustee or the Paying Agent will promptly return to the
Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the
amounts necessary to pay the redemption or purchase price of, and accrued interest on, all Notes to
be redeemed or purchased.

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

     SECTION 3.06 Notes Redeemed or Purchased in Part. Upon surrender of a Note that is
redeemed or purchased in part, the Company will issue and, upon receipt of an Authentication Order,
the Trustee will authenticate for the Holder at the expense of the Company a new Note equal in
principal amount to the unredeemed or unpurchased portion of the Note surrendered.

     SECTION 3.07 Optional Redemption. (a) At any time on or prior to December 15, 2008,
the Company may redeem up to 35% of the principal amount of Notes with the net cash

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proceeds of one or more sales of Capital Stock (other than Disqualified Stock) of the Company
at a redemption price equal to the product of (x) the sum of (1) 100% and (2) a percentage equal to
the per annum rate of interest on the Notes then applicable on the date on which the notice of
redemption is given and (y) the principal amount thereof, plus accrued and unpaid interest to the
Redemption Date; provided that at least 65% of the aggregate principal amount of the Notes
originally issued under this Indenture remains outstanding after each such redemption and notice of
any such redemption is mailed within 180 days of each such sale of Capital Stock.

     (b) The Company may redeem the Notes, in whole or in part, at any time on or after December
15, 2008. The redemption price for the Notes (expressed as a percentage of principal amount) will
be as follows, plus accrued and unpaid interest to the Redemption Date, if redeemed during the
12-month period commencing on December 15 of any year set forth below preceded below:

	 	 	 	 	 
	Year	 	Redemption Price
	2008
	 	 	102.000	%
	2009
	 	 	101.000	%
	2010 and thereafter
	 	 	100.000	%

     (c) At any time prior to December 15, 2008, the Company may also redeem all or a part of the
Notes upon not less than 30 nor more than 60 days’ prior notice mailed by first-class mail to each
Holder’s registered address, at a redemption price equal to 100% of the principal amount of Notes
redeemed plus the Applicable Premium as of, and accrued and unpaid interest and additional
interest, if any, to the Redemption Date, subject to the rights of Holders of Notes on the relevant
record date to receive interest due on the relevant interest payment date.

     (d) All redemptions of the Notes will be made upon not less than 30 days’ nor more than 60
days’ prior notice mailed by first class mail to each Holder’s registered address as provided in
Section 3.03. Unless the Company defaults in the payment of the redemption price, interest will
cease to accrue on the Notes or portions thereof called for redemption on the applicable Redemption
Date.

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

     SECTION 3.08 Mandatory Redemption. The Company is not required to make mandatory
redemption or sinking fund payments with respect to the Notes.

ARTICLE 4

COVENANTS

     SECTION 4.01 Payment of Notes. The Company will pay or cause to be paid the
principal of, premium, if any, and interest on the Notes on the dates and in the manner provided in
the Notes. Principal, premium, if any, and interest will be considered paid on the date due if the
Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m. New York
City on the due date money deposited by the Company in immediately available funds and designated
for and sufficient to pay all principal, premium, if any, and interest then due.

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

     SECTION 4.02 Maintenance of Office or Agency. The Company will maintain an office or
agency (which may be an office of the Trustee or an affiliate or an agent of the Trustee, Registrar
or co-registrar) where Notes may be surrendered for registration of transfer or for exchange and
where notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The Company will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. If at any time the Company fails to maintain any such
required office or agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.

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

     SECTION 4.03 SEC Reports and Reports to Holders.

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

     (1) all quarterly and annual reports that would be required to be filed with the SEC on
Forms 10-Q and 10-K if the Company were required to file such reports; and

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

All such reports will be prepared in all material respects in accordance with the rules and
regulations applicable to such reports. Each annual report on Form 10-K will include a report on
the Company’s consolidated financial statements by the Company’s certified independent accountants.

     (b) In addition, following the consummation of the exchange offer contemplated by the
Registration Rights Agreement, the Company will file a copy of each of the reports referred to in
clauses (1) and (2) above with the SEC for public availability within the time periods specified in
the rules and regulations applicable to such reports (unless the SEC will not accept such a filing)
and will post the reports on its website within those time periods.

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     (c) If, at any time after consummation of the exchange offer contemplated by the Registration
Rights Agreement, the Company is no longer subject to the periodic reporting requirements of the
Exchange Act for any reason, the Company will nevertheless continue filing the reports specified in
the preceding paragraphs of this covenant with the SEC within the time periods specified above
unless the SEC will not accept such a filing. The Company will not take any action for the purpose
of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will
not accept the Company’s filings for any reason, the Company will post the reports referred to in
the preceding paragraphs on its website within the time periods that would apply if the Company
were required to file those reports with the SEC.

     (d) In addition, the Company and the Subsidiary Guarantors agree that, for so long as any
Notes remain outstanding, if at any time they are not required to file with the SEC the reports
required by the preceding paragraphs, they will furnish to the Holders and to securities analysts
and prospective investors, upon their request, the information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act.

     SECTION 4.04 Compliance Certificate.

     (a) The Company and each Subsidiary Guarantor (to the extent that such Subsidiary Guarantor is
so required under the TIA) shall deliver to the Trustee, within 90 days after the end of each
fiscal year, an Officers’ Certificate stating that a review of the activities of the Company and
its Subsidiaries during the preceding fiscal year has been made under the supervision of the
signing Officers with a view to determining whether the Company has kept, observed, performed and
fulfilled its obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Company has kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and is not in default
in the performance or observance of any of the terms, provisions and conditions of this Indenture
(or, if a Default or Event of Default has occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Company is taking or proposes to
take with respect thereto).

     (b) So long as any of the Notes are outstanding, the Company will deliver to the Trustee,
forthwith upon any Officer becoming aware of any Default or Event of Default that has not been
cured, an Officers’ Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

     SECTION 4.05 Taxes. The Company will pay, and will cause each of its Subsidiaries to
pay, prior to delinquency, all material taxes, assessments, and governmental levies except such as
are contested in good faith and by appropriate proceedings or where the failure to effect such
payment is not adverse in any material respect to the Holders of the Notes.

     SECTION 4.06 Stay, Extension and Usury Laws. The Company and each of the Subsidiary
Guarantors covenants (to the extent that it may lawfully do so) that it will not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the
covenants or the performance of this Indenture; and the Company and each of the Subsidiary
Guarantors (to the extent that it may lawfully do so) hereby expressly waives all

54

 

benefit or advantage of any such law, and covenants that it will not, by resort to any such
law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law has been enacted.

     SECTION 4.07 Limitation on Restricted Payments.

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

     (1) declare or pay any dividend or make any distribution on or with respect to its
Capital Stock (other than (x) dividends or distributions payable solely in shares of Capital
Stock (other than Disqualified Stock) of the Company or in options, warrants or other rights
to acquire shares of such Capital Stock and (y) pro rata dividends or distributions on
common stock of Restricted Subsidiaries held by minority stockholders) held by Persons other
than the Company or any of its Restricted Subsidiaries;

     (2) purchase, call for redemption or redeem, retire or otherwise acquire for value any
shares of Capital Stock (including options, warrants or other rights to acquire such shares
of Capital Stock) of the Company or any Restricted Subsidiary;

     (3) make any voluntary or optional principal payment, or voluntary or optional
redemption, repurchase, defeasance, or other acquisition or retirement for value, of
Indebtedness of the Company that is expressly subordinated in right of payment to the Notes
or any Indebtedness of a Subsidiary Guarantor that is expressly subordinated in right of
payment to a Note Guarantee; or

     (4) make any Investment, other than a Permitted Investment, in any Person;

(such payments or any other actions described in clauses (1) through (4) above being collectively
“Restricted Payments”) if, at the time of, and after giving effect to, the proposed
Restricted Payment:

     (A) a Default or Event of Default shall have occurred and be continuing,

     (B) the Company could not Incur at least $1.00 of Indebtedness under the first
paragraph of part (a) of Section 4.09, or

     (C) the aggregate amount of all Restricted Payments made after the Closing Date
would exceed the sum of:

     (1) 50% of the aggregate amount of the Adjusted Consolidated Net Income
(or, if the Adjusted Consolidated Net Income is a loss, minus 100%
of the amount of such loss) less the amount of any net reduction in
Investments included pursuant to clause (3) below that would otherwise be
included in Adjusted Consolidated Net Income accrued on a cumulative basis
during the period (taken as one accounting period) beginning on the first
day of the fiscal quarter immediately preceding the Closing Date and

55

 

ending on the last day of the last fiscal quarter preceding the
Transaction Date for which reports have been filed with the SEC or provided
to the Trustee, plus

     (2) the aggregate Net Cash Proceeds received by the Company after the
Closing Date as a capital contribution or from the issuance and sale of its
Capital Stock (other than Disqualified Stock) to a Person who is not a
Subsidiary of the Company, including the Net Cash Proceeds received by the
Company from any issuance or sale permitted by this Indenture of convertible
Indebtedness of the Company subsequent to the Closing Date but only upon the
conversion of such Indebtedness into Capital Stock (other than Disqualified
Stock) of the Company, or from the issuance to a Person who is not a
Subsidiary of the Company of any options, warrants or other rights to
acquire Capital Stock of the Company (in each case, exclusive of any
Disqualified Stock or any options, warrants or other rights that are
redeemable at the option of the holder, or are required to be redeemed,
prior to the Stated Maturity of the Notes) plus

     (3) an amount equal to the net reduction in Investments in any Person
resulting from payments of interest on Indebtedness, dividends, repayments
of loans or advances, or other transfers of assets, in each case, to the
Company or any Restricted Subsidiary or from the Net Cash Proceeds from the
sale of any such Investment (whether or not any such payment or proceeds are
included in the calculation of Adjusted Consolidated Net Income) or from
redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries
(valued in each case as provided in the definition of “Investments”), not to
exceed, in each case, the aggregate amount of all Investments previously
made by the Company or any Restricted Subsidiary in such Person or
Unrestricted Subsidiary.

     (b) The foregoing provision shall not be violated by reason of:

     (1) the payment of any dividend or redemption of any Capital Stock within 60 days after
the related date of declaration or call for redemption if, at said date of declaration or
call for redemption, such payment or redemption would comply with the preceding paragraph;

     (2) the redemption, repurchase, defeasance or other acquisition or retirement for value
of Indebtedness that is subordinated in right of payment to the Notes or any Note Guarantee
with the proceeds of, or in exchange for, Indebtedness Incurred under clause (3) of the
second paragraph of part (a) of Section 4.09;

     (3) the repurchase, redemption or other acquisition of Capital Stock of the Company or
a Restricted Subsidiary (or options, warrants or other rights to acquire such Capital Stock)
in exchange for, or out of the proceeds of a capital contribution or a substantially
concurrent offering of, shares of Capital Stock (other than Disqualified Stock) of the
Company (or options, warrants or other rights to acquire such Capital

56

 

Stock); provided that such new options, warrants or other rights are not
redeemable at the option of the holder, or required to be redeemed, prior to the Stated
Maturity of the Notes;

     (4) the making of any principal payment or the repurchase, redemption, retirement,
defeasance or other acquisition for value of Indebtedness which is subordinated in right of
payment to the Notes or any Note Guarantee in exchange for, or out of the proceeds of a
capital contribution or a substantially concurrent offering of, shares of the Capital Stock
(other than Disqualified Stock) of the Company (or options, warrants or other rights to
acquire such Capital Stock); provided that such new options, warrants or other
rights are not redeemable at the option of the holder, or required to be redeemed, prior to
the Stated Maturity of the Notes;

     (5) payments or distributions, to dissenting stockholders required by applicable law,
pursuant to or in connection with a consolidation, merger or transfer of assets of the
Company that complies with the provisions of this Indenture applicable to mergers,
consolidations and transfers of all or substantially all of the property and assets of the
Company;

     (6) Investments acquired as a capital contribution to, or in exchange for, or out of
the proceeds of a substantially concurrent offering of, Capital Stock (other than
Disqualified Stock) of the Company;

     (7) the repurchase of Capital Stock deemed to occur upon the exercise of options or
warrants if such Capital Stock represents all or a portion of the exercise price thereof or
payments in lieu of the issuance of fractional shares of Capital Stock;

     (8) Investments by any Foreign Subsidiary in any other Foreign Subsidiary;

     (9) the repurchase, redemption, retirement or otherwise acquisition of Capital Stock
required by the employee stock ownership programs of the Company or required or permitted
under employee agreements;

     (10) other Investments in an amount not to exceed $120.0 million at any time
outstanding; or

     (11) Permitted Additional Restricted Payments;

provided that, in the case of clauses (2), (4) and (11), no Default (of the type described
in clauses (1), (2), (9) or (10) under Section 6.01) or Event of Default shall have occurred and be
continuing or occur as a consequence of the actions or payments set forth therein.

     Each Restricted Payment permitted pursuant to the preceding paragraph (other than the
Restricted Payment referred to in clause (2), (7) or (11) thereof or an exchange of Capital Stock
for Capital Stock or Indebtedness referred to in clause (3) or (4) thereof or an Investment
acquired as a capital contribution or in exchange for Capital Stock referred to in clause (6)
thereof) shall be included in calculating whether the conditions of clause (C) of the first
paragraph of this Section 4.07 have been met with respect to any subsequent Restricted

57

 

Payments, and the Net Cash Proceeds from any issuance of Capital Stock referred to in clause
(3), (4) or (6) of the preceding paragraph shall not be included in such calculation. In the event
the proceeds of an issuance of Capital Stock of the Company are used for the redemption, repurchase
or other acquisition of the Notes, or Indebtedness that is pari passu with the Notes or any Note
Guarantee, then the Net Cash Proceeds of such issuance shall be included in clause (C) of the first
paragraph of this Section 4.07 only to the extent such proceeds are not used for such redemption,
repurchase or other acquisition of Indebtedness.

     For purposes of determining compliance with this Section 4.07, (x) (i) for a Restricted
Payment or series of related Restricted Payments involving in excess of $25.0 million, the amount,
if other than in cash, of any Restricted Payment shall be determined in good faith by the Board of
Directors, whose determination shall be conclusive and evidenced by a resolution of the Board of
Directors or (ii) for a Restricted Payment or series of related Restricted Payments involving $25.0
million or less, the amount, if other than in cash, of any Restricted Payment shall be determined
in good faith by the chief financial officer, whose determination shall be conclusive and evidenced
by a certificate to such effect and (y) in the event that a Restricted Payment meets the criteria
of more than one of the types of Restricted Payments described in the above clauses, including the
first paragraph of this Section 4.07, the Company, in its sole discretion, may order and classify,
and from time to time may reclassify, such Restricted Payment if it would have been permitted at
the time such Restricted Payment was made and at the time of such reclassification.

     SECTION 4.08 Limitation on Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries.

     (a) The Company will not, and will not permit any Restricted Subsidiary to, create or
otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of
any kind on the ability of any Restricted Subsidiary (other than a Receivables Subsidiary) to:

     (1) pay dividends or make any other distributions permitted by applicable law on any
Capital Stock of such Restricted Subsidiary owned by the Company or any other Restricted
Subsidiary;

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

     (3) make loans or advances to the Company or any other Restricted Subsidiary; or

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

     (b) The foregoing provisions shall not restrict any encumbrances or restrictions:

     (1) existing on the Closing Date in the Credit Agreement, this Indenture or any other
agreements in effect on the Closing Date, and any extensions, refinancings, renewals or
replacements of such agreements; provided that the encumbrances and restrictions in
any such extensions, refinancings, renewals or replacements taken as a

58

 

whole are no less favorable in any material respect to the Holders than those
encumbrances or restrictions that are then in effect and that are being extended,
refinanced, renewed or replaced;

     (2) existing under or by reason of applicable law;

     (3) that are customary non-assignment provisions in contracts, agreements, leases,
permits and licenses;

     (4) that are purchase money obligations for property acquired and Capitalized Lease
Obligations that impose restrictions on the property purchased or leased;

     (5) existing with respect to any Person or the property or assets of such Person
acquired by the Company or any Restricted Subsidiary, existing at the time of such
acquisition and not incurred in contemplation thereof, which encumbrances or restrictions
are not applicable to any Person or the property or assets of any Person other than such
Person or the property or assets of such Person so acquired and any extensions,
refinancings, renewals or replacements thereof; provided that the encumbrances and
restrictions in any such extensions, refinancings, renewals or replacements taken as a whole
are no less favorable in any material respect to the Holders than those encumbrances or
restrictions that are then in effect and that are being extended, refinanced, renewed or
replaced;

     (6) in the case of clause (4) of the first paragraph of this Section 4.08:

     (A) that restrict in a customary manner the subletting, assignment or
transfer of any property or asset that is a lease, license, conveyance or
contract or similar property or asset,

     (B) existing by virtue of any transfer of, agreement to transfer,
option or right with respect to, or Lien on, any property or assets of the
Company or any Restricted Subsidiary not otherwise prohibited by this
Indenture, or

     (C) arising or agreed to in the normal course of business, not relating
to any Indebtedness, and that do not, individually or in the aggregate,
detract from the value of property or assets of the Company or any
Restricted Subsidiary in any manner material to the Company or any
Restricted Subsidiary;

     (7) with respect to a Restricted Subsidiary and imposed pursuant to an agreement that
has been entered into for the sale or disposition of all or substantially all of the Capital
Stock of, or property and assets of, such Restricted Subsidiary;

     (8) relating to a Subsidiary Guarantor and contained in the terms of any Indebtedness
or any agreement pursuant to which such Indebtedness was issued if:

59

 

     (A) the encumbrance or restriction is not materially more
disadvantageous to the Holders of the Notes than is customary in comparable
financings (as determined by the Company in good faith); and

     (B) the Company determines that any such encumbrance or restriction
will not materially affect the Company’s ability to make principal or
interest payments on the Notes;

     (9) arising from customary provisions in joint venture agreements and other similar
agreements;

     (10) existing in the documentation governing any Permitted Securitization; or;

     (11) contained in any agreement governing Indebtedness permitted under clause
(8) of the second paragraph of part (a) of Section 4.09.

     Nothing contained in this Section 4.08 shall prevent the Company or any Restricted Subsidiary
from (1) creating, incurring, assuming or suffering to exist any Liens otherwise permitted in
Section 4.12 or (2) restricting the sale or other disposition of property or assets of the Company
or any of its Restricted Subsidiaries that secure Indebtedness of the Company or any of its
Restricted Subsidiaries.

     SECTION 4.09 Limitation on Indebtedness.

     (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, Incur any
Indebtedness (other than the Notes, the Note Guarantees and other Indebtedness existing on the
Closing Date) and the Company will not permit any of its Restricted Subsidiaries to issue any
Disqualified Stock; provided, however, that the Company or any Subsidiary Guarantor
may Incur Indebtedness (including, without limitation, Acquired Indebtedness) if, after giving
effect to the Incurrence of such Indebtedness and the receipt and application of the proceeds
therefrom, the Fixed Charge Coverage Ratio would be greater than 2.0:1.0.

     Notwithstanding the foregoing, the Company and any Restricted Subsidiary (except as specified
below) may Incur each and all of the following:

     (1) the incurrence by the Company and any Subsidiary Guarantor of additional
Indebtedness and letters of credit under Credit Facilities in an aggregate principal amount
at any one time outstanding under this clause (1) (with letters of credit being deemed to
have a principal amount equal to the maximum potential liability of the Company and such
Subsidiary Guarantor thereunder) (together with refinancings thereof) not to exceed $2.6
billion less any amount of such Indebtedness permanently repaid with the Net Proceeds of
Asset Sales as provided under Section 4.10;

     (2) Indebtedness owed to the Company or any Restricted Subsidiary; provided
that (x) any event which results in any such Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any subsequent transfer of such Indebtedness (other than to the
Company or another Restricted Subsidiary) shall be deemed, in each case, to constitute an
Incurrence of such Indebtedness not permitted by this clause (2) and (y) if the

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Company or any Subsidiary Guarantor is the obligor on such Indebtedness, such
Indebtedness must be expressly subordinated in right of payment to the Notes, in the case of
the Company, or the Note Guarantee, in the case of a Subsidiary Guarantor;

     (3) Indebtedness issued in exchange for, or the net proceeds of which are used to
refinance or refund, then outstanding Indebtedness including the Notes (other than
Indebtedness outstanding under clauses (1), (2), (5), (6), (7), (8), (9) and (13) and any
refinancings thereof) in an amount not to exceed the amount so refinanced or refunded (plus
premiums, accrued interest, fees and expenses); provided that (a) Indebtedness the
proceeds of which are used to refinance or refund the Notes or Indebtedness that is pari
passu with, or subordinated in right of payment to, the Notes or a Note Guarantee shall only
be permitted under this clause (3) if (x) in case the Notes are refinanced in part or the
Indebtedness to be refinanced is pari passu with the Notes or a Note Guarantee, such new
Indebtedness, by its terms or by the terms of any agreement or instrument pursuant to which
such new Indebtedness is outstanding, is pari passu with, or expressly subordinate in right
of payment to, the remaining Notes or the Note Guarantee, or (y) in case the Indebtedness to
be refinanced is subordinated in right of payment to the Notes or a Note Guarantee, such new
Indebtedness, by its terms or by the terms of any agreement or instrument pursuant to which
such new Indebtedness is issued or remains outstanding, is expressly made subordinate in
right of payment to the Notes or the Note Guarantee at least to the extent that the
Indebtedness to be refinanced is subordinated to the Notes or the Note Guarantee, (b) such
new Indebtedness, determined as of the date of Incurrence of such new Indebtedness, does not
mature prior to the Stated Maturity of the Indebtedness to be refinanced or refunded, and
the Average Life of such new Indebtedness is at least equal to the remaining Average Life of
the Indebtedness to be refinanced or refunded and (c) such new Indebtedness is Incurred by
the Company or a Subsidiary Guarantor or by the Restricted Subsidiary that is the obligor on
the Indebtedness to be refinanced or refunded;

     (4) Indebtedness of the Company, to the extent the net proceeds thereof are (A) used to
purchase Notes tendered in an Offer to Purchase made as a result of a Change in Control or
an Optional Redemption or (B) promptly deposited to defease the Notes as described under
Article 8 and Article 12;

     (5) Guarantees of Indebtedness of the Company or any Restricted Subsidiary of the
Company by any other Restricted Subsidiary of the Company; provided the Guarantee of
such Indebtedness is permitted by and made in accordance with Section 4.19;

     (6) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business
provided, however, that such Indebtedness is extinguished within five
Business Days of Incurrence;

     (7) Indebtedness (i) in respect of industrial revenue bonds or other similar
governmental or municipal bonds, (ii) evidencing the deferred purchase price of newly

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acquired property or incurred to finance the acquisition of property, plant or
equipment of the Company and its Restricted Subsidiaries (pursuant to purchase money
mortgages or otherwise, whether owed to the seller or a third party) (provided that,
such Indebtedness is incurred within 365 days of the acquisition of such property, plant or
equipment) and (iii) in respect of Capitalized Lease Obligations; provided that, the
aggregate amount of all Indebtedness outstanding pursuant to this clause shall not at any
time exceed the greater of (x) $200.0 million and (y) 5.0% of Total Assets;

     (8) Indebtedness of Foreign Subsidiaries and Guarantees thereof in an aggregate
outstanding principal amount not to exceed $225.0 million at any one time outstanding;

     (9) Indebtedness of a Person existing at the time such Person became a Restricted
Subsidiary, but only if such Indebtedness was not created or incurred in contemplation of
such Person becoming a Restricted Subsidiary;

     (10) Indebtedness incurred in the ordinary course of business in connection with cash
pooling arrangements, cash management and other Indebtedness incurred in the ordinary course
of business in respect of netting services, overdraft protections and similar arrangements
in each case in connection with cash management and deposit accounts;

     (11) Indebtedness incurred pursuant to a Permitted Securitization and Standard
Securitization Undertakings;

     (12) Indebtedness consisting of (i) the financing of insurance premiums or (ii) take or
pay obligations in supply agreements, in each case in the ordinary course of business; and

     (13) additional Indebtedness of the Company or any Subsidiary Guarantor (in addition to
Indebtedness permitted under clauses (1) through (12) above) in an aggregate principal
amount outstanding at any time (together with refinancings thereof) not to exceed $150.0
million.

     (b) Notwithstanding any other provision of this Section 4.09, the maximum amount of
Indebtedness that may be Incurred pursuant to this Section 4.09 will not be deemed to be exceeded,
with respect to any outstanding Indebtedness due solely to the result of fluctuations in the
exchange rates of currencies. The amount of any particular Indebtedness incurred in a foreign
currency will be calculated based on the exchange rate for such currency vis-à-vis the U.S. dollar
on the date of such incurrence.

     (c) For purposes of determining any particular amount of Indebtedness under this Section 4.09,
(x) Indebtedness outstanding under the Credit Agreement and the Second Lien Credit Agreement on the
Closing Date shall be treated as Incurred pursuant to clause (1) of the second paragraph of part
(a) of this Section 4.09, (y) Guarantees, Liens or obligations with respect to letters of credit
supporting Indebtedness otherwise included in the determination of such particular amount shall not
be included and (z) any Liens granted pursuant to the equal and ratable provisions referred to in
Section 4.12 shall not be treated as Indebtedness. For purposes

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of determining compliance with this Section 4.09, in the event that an item of Indebtedness
meets the criteria of more than one of the types of Indebtedness described above (other than
Indebtedness referred to in clause (x) of the preceding sentence), including under the first
paragraph of clause (a), the Company, in its sole discretion, may classify, and from time to time
may reclassify, such item of Indebtedness.

     (d) The Obligors will not Incur any Indebtedness if such Indebtedness is subordinate in right
of payment to any other Indebtedness unless such Indebtedness is also subordinate in right of
payment to the Notes (in the case of the Company) or the Note Guarantees (in the case of any
Subsidiary Guarantor), in each case, to the same extent.

     SECTION 4.10 Limitation on Asset Sales. The Company will not, and will not permit
any Restricted Subsidiary to, consummate any Asset Sale unless:

     (1) the consideration received by the Company or such Restricted Subsidiary is at least
equal to the fair market value of the assets sold or disposed of; and

     (2) at least 75% of the consideration received consists of (a) cash or Temporary Cash
Investments, (b) the assumption of unsubordinated Indebtedness of the Company or any
Subsidiary Guarantor or Indebtedness of any other Restricted Subsidiary (in each case, other
than Indebtedness owed to the Company or any Affiliate of the Company), provided
that the Company, such Subsidiary Guarantor or such other Restricted Subsidiary is
irrevocably released in writing from all liability under such Indebtedness, or (c)
Replacement Assets.

The Company will, or will cause the relevant Restricted Subsidiary to:

     (1) within twelve months after the date of receipt of any Net Cash Proceeds from an
Asset Sale:

     (A) apply an amount equal to such Net Cash Proceeds to permanently repay
Indebtedness under any Credit Facility or other unsubordinated secured Indebtedness
of the Company or any Subsidiary Guarantor or Indebtedness of any other Restricted
Subsidiary, in each case, owing to a Person other than the Company or any Affiliate
of the Company (and to cause a corresponding permanent reduction in commitments if
such repaid Indebtedness was outstanding under the revolving portion of a Credit
Facility); or

     (B) invest an equal amount, or the amount not so applied pursuant to clause (A)
(or enter into a definitive agreement committing to so invest within 12 months after
the date of such agreement) in Replacement Assets; and

     (2) apply (no later than the end of the 12-month period referred to in clause (1)) any
excess Net Cash Proceeds (to the extent not applied pursuant to clause (1)) as provided in
the following paragraphs of this Section 4.10.

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     The amount of such excess Net Cash Proceeds required to be applied (or to be committed to be
applied) during such 12-month period as set forth in clause (1) of the preceding sentence and not
applied as so required by the end of such period shall constitute “Excess Proceeds.”

     If, as of the first day of any calendar month, the aggregate amount of Excess Proceeds not
theretofore subject to an Offer to Purchase pursuant to this Section 4.10 totals at least $50.0
million, the Company must commence, not later than the last Business Day of such month, and
consummate an Offer to Purchase from the Holders (and, if required by the terms of any Indebtedness
that is pari passu with the Notes (“Pari Passu Indebtedness”), from the holders of such
Pari Passu Indebtedness) on a pro rata basis an aggregate principal amount of Notes (and Pari Passu
Indebtedness) equal to the Excess Proceeds on such date, at a purchase price equal to 100% of their
principal amount, plus, in each case, accrued interest (if any) to the Payment Date. To the extent
that any Excess Proceeds remain after consummation of an Offer to Purchase pursuant to this Section
4.10, the Company may use those Excess Proceeds for any purpose not otherwise prohibited by this
Indenture and the amount of Excess Proceeds shall be reset to zero.

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

     SECTION 4.11 Limitation on Transactions with Shareholders and Affiliates.

     (a) The Company will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, enter into, renew or extend any transaction (including, without limitation, the
purchase, sale, lease or exchange of property or assets, or the rendering of any service) with any
holder (or any Affiliate of such holder) of 5% or more of any class of Capital Stock of the Company
or with any Affiliate of the Company or any Restricted Subsidiary, except upon terms no less
favorable to the Company or such Restricted Subsidiary than could be obtained, at the time of such
transaction or, if such transaction is pursuant to a written agreement, at the time of the
execution of the agreement providing therefor, in a comparable arm’s-length transaction with a
Person that is not such a holder or an Affiliate.

     (b) The foregoing limitation does not limit, and shall not apply to:

     (1) transactions (A) approved by a majority of the disinterested members of the Board
of Directors or (B) for which the Company or a Restricted Subsidiary delivers to the Trustee
a written opinion of a nationally recognized investment banking, accounting, valuation or
appraisal firm stating that the transaction is fair to the Company or such Restricted
Subsidiary from a financial point of view;

     (2) any transaction solely between the Company and any of its Restricted Subsidiaries
or solely among Restricted Subsidiaries;

     (3) the payment of reasonable regular fees to directors of the Company who are not
employees of the Company and indemnification arrangements entered into by the Company
consistent with past practices of the Company;

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

     (5) transactions in connection with a Permitted Securitization including Standard
Securitization Undertakings;

     (6) any sale of shares of Capital Stock (other than Disqualified Stock) of the Company;

     (7) any Permitted Investments or any Restricted Payments not prohibited by Section
4.07;

     (8) any agreement as in effect or entered into as of the Closing Date (as disclosed in
the Offering Memorandum) or any amendment thereto or any transaction contemplated thereby
(including pursuant to any amendment thereto) and any replacement agreement thereto so long
as any such amendment or replacement agreement is not more disadvantageous to the Holders in
any material respect than the original agreement as in effect on the Closing Date; and

     (9) any employment agreement, change in control/severance agreement, employee benefit
plan, officer or director indemnification agreement or any similar arrangement entered into
by the Company or any of its Restricted Subsidiaries in the ordinary course of business and
payments pursuant thereto.

     (c) Notwithstanding the foregoing, any transaction or series of related transactions covered
by the first paragraph of this Section 4.11 and not covered by clauses (2) through (9) of this
paragraph, (a) the aggregate amount of which exceeds $50.0 million in value, must be approved or
determined to be fair in the manner provided for in clause (1)(A) or (B) above and (b) the
aggregate amount of which exceeds $100.0 million in value, must be determined to be fair in the
manner provided for in clause (1)(B) above.

     SECTION 4.12 Limitation on Liens. The Company will not, and will not permit any
Restricted Subsidiary to, create, incur, assume or suffer to exist any Lien on any of its assets or
properties of any character (including any shares of Capital Stock or Indebtedness of any
Restricted Subsidiary), without making effective provision for all of the Notes and all other
amounts due under this Indenture to be directly secured equally and ratably with (or, if the
obligation or liability to be secured by such Lien is subordinated in right of payment to the
Notes, prior to) the obligation or liability secured by such Lien.

     The foregoing limitation does not apply to:

     (1) Liens existing on the Closing Date;

     (2) Liens granted on or after the Closing Date on any assets or Capital Stock of the
Company or its Restricted Subsidiaries created in favor of the Holders;

     (3) Liens in connection with a Permitted Securitization;

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     (4) Liens securing Indebtedness which is Incurred to refinance secured Indebtedness
which is permitted to be Incurred under clause (3) of the second paragraph of part (a) of
Section 4.09; provided that such Liens do not extend to or cover any property or
assets of the Company or any Restricted Subsidiary other than the property or assets
securing the Indebtedness being refinanced;

     (5) Liens to secure Indebtedness permitted under clause (1) of the second paragraph of
part (a) of Section 4.09;

     (6) Liens (including extensions and renewals thereof) securing Indebtedness permitted
under clause (7) of the second paragraph of part (a) of Section 4.09;
provided that, (i) such Lien is granted within 365 days after such Indebtedness is
incurred, (ii) the Indebtedness secured thereby does not exceed the lesser of the cost or
the fair market value of the applicable property, improvements or equipment at the time of
such acquisition (or construction) and (iii) such Lien secures only the assets that are the
subject of the Indebtedness referred to in such clause;

     (7) Liens on cash set aside at the time of the Incurrence of any Indebtedness, or
government securities purchased with such cash, in either case, to the extent that such cash
or government securities pre-fund the payment of interest on such Indebtedness and are held
in a collateral or escrow account or similar arrangement to be applied for such purpose;

     (8) Lien on any assets or properties of Foreign Subsidiaries to secure Indebtedness
permitted under clause (8) of the second paragraph of part (a) of Section 4.09;

     (9) Liens on (A) incurred premiums, dividends and rebates which may become payable
under insurance policies and loss payments which reduce the incurred premiums on such
insurance policies and (B) rights which may arise under State insurance guarantee funds
relating to any such insurance policy, in each case securing Indebtedness permitted to be
incurred pursuant to clause (12) of the second paragraph of part (a) of Section 4.09;

     (10) other Liens securing Indebtedness or other obligations permitted under this
Indenture and outstanding in an aggregate principal amount not to exceed $90.0 million; or

     (11) Permitted Liens.

     SECTION 4.13 Limitation on Business Activities. The Company will not, and will not
permit any of its Restricted Subsidiaries to, engage in any business other than Permitted
Businesses.

     SECTION 4.14 Corporate Existence. Subject to Article 5 hereof, the Company
shall do or cause to be done all things necessary to preserve and keep in full force and effect:

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

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

     SECTION 4.15 Repurchase of Notes Upon a Change of Control.

     (a) If a Change of Control occurs, the Company will make an offer (a “Change of Control
Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral multiple
of $1,000) of each Holder’s Notes at a purchase price equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest on the Notes repurchased, if any, to, but not
including, the date of purchase, subject to the rights of the Holders on the relevant record date
to receive interest due on the relevant interest payment date (the “Change of Control
Payment”). Within 30 days following any Change of Control, the Company will mail a notice to
each Holder describing the transaction or transactions that constitute the Change of Control and
stating:

     (1) that the Change of Control Offer is being made pursuant to this Section 4.15 and
that all Notes tendered and not withdrawn will be accepted for payment;

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

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

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

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

     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the
Change of Control Payment Date, a telegram, telex, facsimile transmission, email or

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letter setting forth the name of the Holder, the principal amount of Notes the Holder
delivered for purchase, and a statement that such Holder is withdrawing his election to have
such Notes purchased; and

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

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

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

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

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

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

     Upon receipt of the Change of Control Payment and Officers’ Certificate described
above, the Paying Agent will promptly mail to each Holder of Notes properly tendered the
Change of Control Payment for such Notes, and the Trustee will promptly authenticate and
mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any. The Company will
publicly announce the results of the Change of Control Offer on or as soon as reasonably
practicable after the Change of Control Payment Date.

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

     SECTION 4.16 Limitation on the Issuance and Sale of Capital Stock of Restricted
Subsidiaries. The Company will not sell, and will not permit any Restricted Subsidiary,
directly

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or indirectly, to issue or sell, any shares of Capital Stock of a Restricted Subsidiary
(including options, warrants or other rights to purchase shares of such Capital Stock) except:

     (1) to the Company or a Wholly Owned Restricted Subsidiary;

     (2) issuances of director’s qualifying shares or sales to foreign nationals of shares
of Capital Stock of foreign Restricted Subsidiaries, to the extent required by applicable
law;

     (3) if, immediately after giving effect to such issuance or sale, such Restricted
Subsidiary would no longer constitute a Restricted Subsidiary and any Investment in such
Person remaining after giving effect to such issuance or sale would have been permitted to
be made under Section 4.07 if made on the date of such issuance or sale; or

     (4) sales of Capital Stock (other than Disqualified Stock) (including options, warrants
or other rights to purchase shares of such Capital Stock) of a Restricted Subsidiary,
provided that the Company or such Restricted Subsidiary either (a) applies the Net
Cash Proceeds of any such sale in accordance with Section 4.10 or (b) to the extent such
sale is of preferred stock, such sale is permitted under Section 4.09.

     SECTION 4.17 Limitation on Sale and Leaseback Transactions. The Company will not,
and will not permit any Restricted Subsidiary to, enter into any Sale and Leaseback Transaction
involving any of its assets or properties whether now owned or hereafter acquired;
provided, however, that the Company or any Restricted Subsidiary may enter into a
Sale and Leaseback Transaction if:

     (1) the consideration received in such Sale and Leaseback Transaction is at least equal
to the fair market value of the property so sold or otherwise transferred, as determined by
a resolution of the Board of Directors;

     (2) the Company or such Restricted Subsidiary, as applicable, would be permitted to
grant a Lien to secure Indebtedness under Section 4.12 in the amount of the Attributable
Debt in respect of such Sale Leaseback Transaction;

     (3) prior to and after giving effect to the Attributable Debt in respect of such Sale
and Leaseback Transaction, the Company and such Restricted Subsidiary comply with Section
4.09; and

     (4) the Company or such Restricted Subsidiary applies the proceeds received from such
sale in accordance with Section 4.10.

     SECTION 4.18 Payments for Consent. The Company will not, and will not permit any of
its Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any consideration
to or for the benefit of any Holder for or as an inducement to any consent, waiver or amendment of
any of the terms or provisions of this Indenture or the Notes unless such consideration is offered
to be paid and is paid to all Holders that consent, waive or agree to amend in the time frame set
forth in the solicitation documents relating to such consent, waiver or agreement.

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     SECTION 4.19 Limitation on Issuance of Guarantees by Restricted Subsidiaries. The
Company will cause each Restricted Subsidiary other than a Foreign Subsidiary or an Immaterial
Subsidiary to execute and deliver a supplemental indenture to this Indenture providing for a
Guarantee (a “Subsidiary Guarantee”) of payment of the Notes by such Restricted Subsidiary.

     The Company will not permit any Restricted Subsidiary which is not a Subsidiary Guarantor,
directly or indirectly, to Guarantee any Indebtedness (“Guaranteed Indebtedness”) of the
Company or any other Restricted Subsidiary (other than a Foreign Subsidiary or an Immaterial
Subsidiary), unless (a) such Restricted Subsidiary promptly executes and delivers a supplemental
indenture to this Indenture providing for a Guarantee (also a “Subsidiary Guarantee”) of
payment of the Notes by such Restricted Subsidiary and (b) such Restricted Subsidiary waives and
will not in any manner whatsoever claim or take the benefit or advantage of, any rights of
reimbursement, indemnity or subrogation or any other rights against the Company or any other
Restricted Subsidiary as a result of any payment by such Restricted Subsidiary under its Subsidiary
Guarantee until the Notes have been paid in full.

     If the Guaranteed Indebtedness is (A) pari passu in right of payment with the Notes or any
Note Guarantee, then the Guarantee of such Guaranteed Indebtedness shall be pari passu in right of
payment with, or subordinated to, the Subsidiary Guarantee or (B) subordinated in right of payment
to the Notes or any Note Guarantee, then the Guarantee of such Guaranteed Indebtedness shall be
subordinated in right of payment to the Subsidiary Guarantee at least to the extent that the
Guaranteed Indebtedness is subordinated to the Notes or the Note Guarantee.

     Notwithstanding the foregoing, any Subsidiary Guarantee by a Restricted Subsidiary may provide
by its terms that it shall be automatically and unconditionally released and discharged upon:

     (1) any sale, exchange or transfer, to any Person not an Affiliate of the Company, of
all or substantially all of the Company’s and each Restricted Subsidiary’s Capital Stock in,
or all or substantially all the assets of, such Restricted Subsidiary (which sale, exchange
or transfer is not prohibited by this Indenture) or upon the designation of such Restricted
Subsidiary as an Unrestricted Subsidiary in accordance with the terms of this Indenture; or

     (2) the release or discharge of the Guarantee which resulted in the creation of such
Subsidiary Guarantee, except a discharge or release by or as a result of payment under such
Guarantee.

     SECTION 4.20 Investments in HBI Playtex BATH LLC. The Company will not, and will not
permit any of its Subsidiaries to, make any additional Investment in HBI Playtex BATH LLC or
transfer any of their respective assets to HBI Playtex BATH LLC.

     SECTION 4.21 Changes in Covenants when Notes Rated Investment Grade.

     (a) If on any date following the date of this Indenture: (i) the Notes are rated Baa3 or
better by Moody’s and BBB- or better by S&P (or, if either such entity ceases to rate the Notes for
reasons outside of the control of the Company, the equivalent investment grade credit rating from
any other “nationally recognized statistical rating organization” within the meaning of Rule

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15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Company as a replacement agency);
and (ii) no Default or Event of Default shall have occurred and be continuing, then, beginning on
that day and continuing at all times thereafter regardless of any subsequent changes in the rating
of the Notes then, beginning on that day and subject to the provisions of the following paragraph,
the covenants specifically listed under the following sections in this Indenture will be suspended:

     (1) Section 4.07;

     (2) Section 4.08;

     (3) Section 4.09;

     (4) Section 4.10;

     (5) Section 4.11; and

     (6) clause (3) of Section 5.01(a).

     (b) During any period that the foregoing covenants have been suspended, the Company’s Board of
Directors may not designate any of its Subsidiaries as Unrestricted Subsidiaries.

     (c) Notwithstanding the foregoing, if the rating assigned by either such rating agency should
subsequently decline to below Baa3 or BBB-, respectively, the foregoing covenants will be
reinstituted as of and from the date of such rating decline. Calculations under the reinstated
Section 4.07 or Section 4.09 covenants will be made as if Section 4.07 or Section 4.09, as the case
may be, had been in effect since the date of this Indenture except that no Default will be deemed
to have occurred solely by reason of a Restricted Payment or incurrence of Indebtedness made while
such relevant covenant was suspended and it being understood that no actions taken by (or omissions
of) the Company or any of its Restricted Subsidiaries during the suspension period shall constitute
a Default or an Event of Default under the covenants listed this Section 4.21(a)(1)-(6).

ARTICLE 5

SUCCESSORS

     SECTION 5.01 Consolidation, Merger and Sale of Assets.

     (a) The Company will not (1), directly or indirectly, consolidate or merge with or into
another Person (whether or not the Company is the surviving corporation), or (2) sell, assign,
convey, transfer, lease or otherwise dispose of all or substantially all of the property or assets
of the Company and its Restricted Subsidiaries taken as a whole, in one or more related
transactions, to another Person, unless:

     (1) it shall be the continuing Person, or the Person (if other than it) formed by such
consolidation or into which it is merged or that acquired or leased such property and assets
(the “Surviving Person”) shall be a corporation, limited partnership, limited liability
company or other entity organized and validly existing under the laws of the

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United States of America or any jurisdiction thereof and shall expressly assume, by a
supplemental indenture, executed and delivered to the Trustee, all of the Company’s
obligations under this Indenture, the Notes and the Registration Rights Agreement;
provided, however, that if the Surviving Person is not a corporation, a
corporation that has no material assets or liabilities other than the Notes shall become a
co-issuer of the Notes pursuant to a supplemental indenture duly executed by the Trustee;

     (2) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing;

     (3) immediately after giving effect to such transaction on a pro forma basis the
Company (or the Surviving Person, if applicable) could Incur at least $1.00 of Indebtedness
under the first paragraph of part (a) of Section 4.09 or (b) the Company’s (or the Surviving
Person’s, if applicable) Fixed Charge Coverage Ratio is greater than that of the Company
prior to the consummation of such transaction; and

     (4) the Company will have delivered to the Trustee an Officers’ Certificate (attaching
the arithmetic computations to demonstrate compliance with clause (3) of this paragraph) and
an Opinion of Counsel, each stating that such transaction and, if a supplemental indenture
is required in connection with such transaction, such supplemental indenture comply with the
applicable provisions of this Indenture, that all conditions precedent in this Indenture
relating to such transaction have been satisfied and that supplemental indenture is
enforceable.

     (b) Clause (a)(3) above does not apply if, in the good faith determination of the Board of
Directors, whose determination shall be evidenced by a resolution of the Board of Directors, the
principal purpose of such transaction is to change the state of incorporation of the Company and
any such transaction shall not have as one of its purposes the evasion of the foregoing
limitations.

     SECTION 5.02 Successor Corporation Substituted. Upon any consolidation or merger, or
any sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all
of the assets of the Company in a transaction that is subject to, and that complies with the
provisions of, Section 5.01 hereof, the successor corporation formed by such consolidation or into
or with which the Company is merged or to which such sale, assignment, transfer, lease, conveyance
or other disposition is made shall succeed to, and be substituted for (so that from and after the
date of such consolidation, merger, sale, lease, conveyance or other disposition, the provisions of
this Indenture referring to the “Company” shall refer instead to the successor corporation and not
to the Company), and may exercise every right and power of the Company under this Indenture with
the same effect as if such successor Person had been named as the Company herein; provided,
however, that the predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on the Notes except in the case of a sale or other disposition of all or
substantially all of the properties or assets of the Company (determined on a consolidated basis
for the Company and its Subsidiaries), in one or more related transactions subject to, and in
compliance with the provisions of, Section 5.01 hereof.

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ARTICLE 6

DEFAULTS AND REMEDIES

SECTION 6.01 Events of Default. Each of the following is an “Event of Default:”

     (1) default for 30 days in the payment when due of interest on the Notes;

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

     (3) failure by the Company or any of its Restricted Subsidiaries to comply with the
provisions of Section 4.15 or Section 5.01 hereof;

     (4) failure by the Company or any of its Restricted Subsidiaries for 30 days after
notice to the Company by the trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding voting as a single class to comply with the provisions
of Section 4.07, Section 4.09 or Section 4.10;

     (5) failure by the Company or any of its Restricted Subsidiaries for 60 days after
notice to the Company by the trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding voting as a single class to comply with any of the
other agreements in this Indenture;

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

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

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

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness or the maturity of which has been so
accelerated, aggregates $100.0 million or more;

     (7) failure by the Company or any of its Restricted Subsidiaries to pay final judgments
entered by a court or courts of competent jurisdiction aggregating in excess of $100.0
million, which judgments are not paid, discharged or stayed for a period of 60 days;

     (8) except as permitted by this Indenture, any Note Guarantee is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in full

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force and
effect or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary
Guarantor denies or disaffirms its obligations under its Note Guarantee;

     (9) the Company or any of its Restricted Subsidiaries that would constitute a
Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

     (A) commences a voluntary case;

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

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

     (D) makes a general assignment for the benefit of its creditors; and

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

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

     (B) appoints a custodian of the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or for all or substantially all of the property of
the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary;
or

     (C) orders the liquidation of the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary;

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

     SECTION 6.02 Acceleration. In the case of an Event of Default specified in clause
(9) or (10) of Section 6.01 hereof, the principal of, premium, if any, and accrued
interest on the Notes then outstanding shall automatically become due and payable immediately
without any declaration or other act on the part of the Trustee or any Holder. If any other Event
of Default occurs and is continuing under this Indenture, the Trustee or the Holders of at least
25% in aggregate principal amount of the Notes, then outstanding, by written notice to the Company
(and to the Trustee if such notice is given by the Holders), may, and the Trustee at the request of
such Holders shall, declare the principal of, premium, if any, and accrued interest on the Notes to
be immediately due and payable. Upon a declaration of acceleration, such principal of, premium, if
any, and accrued interest shall be immediately due and payable. In the event of a declaration of
acceleration because an Event of Default set forth in clause (6) above has occurred and is
continuing, such declaration of acceleration shall be automatically rescinded and annulled if the
event of default triggering such Event of Default pursuant to clause (6) shall be remedied or
cured by the Company or the relevant Restricted Subsidiary or waived by the holders of the
relevant Indebtedness within 60 days after the declaration of acceleration with respect thereto.

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     SECTION 6.03 Other Remedies. If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal, premium and interest
on the Notes or to enforce the performance of any provision of the Notes or this Indenture.

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

     SECTION 6.04 Waiver of Past Defaults. The Holders of at least a majority in principal
amount of the outstanding Notes by written notice to the Company and to the Trustee, may waive all
past defaults and rescind and annul a declaration of acceleration and its consequences if (x) all
existing Events of Default, other than the nonpayment of the principal of, premium, if any, and
accrued interest on the Notes that have become due solely by such declaration of acceleration, have
been cured or waived and (y) the rescission would not conflict with any judgment or decree of a
court of competent jurisdiction. Upon any such waiver, such Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

     SECTION 6.05 Control by Majority. The Holders of at least a majority in aggregate
principal amount of the outstanding Notes may 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. However, the Trustee may refuse to follow any direction that conflicts with law or
this Indenture, that may involve the Trustee in personal liability, or that the Trustee determines
in good faith may be unduly prejudicial to the rights of Holders of Notes not joining in the giving
of such direction and may take any other action it deems proper that is not inconsistent with any
such direction received from Holders of Notes.

     SECTION 6.06 Limitation on Suits. Except to enforce the right to receive payment of
principal, premium, if any, or interest when due, no Holder may pursue any remedy with respect to
this Indenture or the Notes unless:

     (1) the Holder gives the Trustee written notice of a continuing Event of Default;

     (2) the Holders of at least 25% in aggregate principal amount of outstanding Notes make
a written request to the Trustee to pursue the remedy;

     (3) such Holder or Holders offer the Trustee indemnity satisfactory to the Trustee
against any costs, liability or expense;

     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

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     (5) 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 that is inconsistent with the
request.

     A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

     SECTION 6.07 Rights of Holders of Notes to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder of a Note to receive payment of principal,
premium, if any and interest, on the Note, on or after the respective due dates expressed in the
Note (including in connection with an offer to purchase), or to bring suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

     SECTION 6.08 Collection Suit by Trustee. If an Event of Default specified in Section
6.01(1) or (2) occurs and is continuing, the Trustee is authorized to recover judgment in its own
name and as Trustee of an express trust against the Company for the whole amount of principal of,
premium, if any, and interest remaining unpaid on the Notes and interest on overdue principal and,
to the extent lawful, interest and such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

     SECTION 6.09 Trustee May File Proofs of Claim. The Trustee is authorized to file such
proofs of claim and other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company (or any other obligor upon the Notes), its creditors or its
property and shall be entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07 hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     SECTION 6.10 Priorities. If the Trustee collects any money pursuant to this
Article 6, it shall pay out the money in the following order:

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

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

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

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

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

ARTICLE 7

TRUSTEE

     SECTION 7.01 Duties of Trustee.

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

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

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

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

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

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

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

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

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

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

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

     SECTION 7.02 Rights of Trustee.

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

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

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

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

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

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

     (g) 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.

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

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

     (j) 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.

     SECTION 7.03 Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or any
Affiliate of the Company with the same rights it would have if it were not Trustee. However, in
the event that the Trustee acquires any conflicting interest it must eliminate such conflict within
90 days, apply to the SEC for permission to continue as trustee (if this Indenture has been
qualified under the TIA) or resign. Any Agent may do the same with like rights and duties. The
Trustee is also subject to Sections 7.10 and 7.11 hereof.

     SECTION 7.04 Trustee’s Disclaimer. The Trustee will not be responsible for and makes
no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company’s use of the proceeds from the Notes or any money paid to the Company
or upon the Company’s direction under any provision of this Indenture, it will not be responsible
for the use or application of any money received by any Paying Agent other than the Trustee, and it
will not be responsible for any statement or recital herein or any statement in the
Notes or any other document in connection with the sale of the Notes or pursuant to this
Indenture other than its certificate of authentication.

     SECTION 7.05 Notice of Defaults. If a Default or Event of Default occurs and is
continuing and if it is known to the Trustee, the Trustee will mail to Holders a notice of the

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

     SECTION 7.06 Reports by Trustee to Holders of the Notes.

     (a) Within 60 days after each December 31 beginning with the December 31 following the date of
this Indenture, and for so long as Notes remain outstanding, the Trustee will mail to the Holders
of the Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if
no event described in TIA § 313(a) has occurred within the twelve months preceding the reporting
date, no report need be transmitted). The Trustee also will comply with TIA § 313(b)(2). The
Trustee will also transmit by mail all reports as required by TIA § 313(c).

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

     SECTION 7.07 Compensation and Indemnity.

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

     (b) The Company and the Subsidiary Guarantors, jointly and severally, will indemnify the
Trustee against any and all losses, liabilities or expenses incurred by it arising out of or in
connection with the acceptance or administration of its duties under this Indenture, including the
costs and expenses of enforcing this Indenture against the Company and the Subsidiary Guarantors
(including this Section 7.07) and defending itself against any claim (whether asserted by the
Company, the Subsidiary Guarantors, any Holder or any other Person) or liability in connection with
the exercise or performance of any of its powers or duties hereunder, except to the extent any such
loss, liability, claim, damage or expense as shall be determined to have been caused by its
negligence or bad faith. The Trustee will notify the Company promptly of any claim for which it
may seek indemnity. Failure by the Trustee to so notify the Company will not relieve the Company
or any of the Subsidiary Guarantors of their obligations hereunder. The Company or such Subsidiary
Guarantor will defend the claim and
the Trustee will cooperate in the defense. The Trustee may have separate counsel and the
Company will pay the reasonable fees and expenses of such counsel. Neither the Company nor any
Subsidiary Guarantor need pay for any settlement made without its consent, which consent will not
be unreasonably withheld.

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

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

     (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(8) or (9) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

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

     SECTION 7.08 Replacement of Trustee.

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

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

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

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

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

     (4) the Trustee becomes incapable of acting.

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

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

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

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

     SECTION 7.09 Successor Trustee by Merger, etc. If the Trustee consolidates, merges or
converts into, or transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act will be the successor Trustee.

     SECTION 7.10 Eligibility; Disqualification. There will at all times be a Trustee
hereunder that is a corporation organized and doing business under the laws of the United States of
America or of any state thereof that is authorized under such laws to exercise corporate trustee
power, that is subject to supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $100.0 million as set forth in its most recent published
annual report of condition.

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

     SECTION 7.11 Preferential Collection of Claims Against Company. The Trustee is
subject to 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 therein.

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 8.01 Option to Effect Legal Defeasance or Covenant Defeasance. The Company
may, any time, at the option of its Board of Directors evidenced by a resolution set forth in an
Officers’ Certificate, elect to have either Section 8.02 or 8.03 hereof be applied to all
outstanding Notes and the Note Guarantees upon compliance with the conditions set forth below in
this Article 8.

     SECTION 8.02 Legal Defeasance and Discharge. Upon the Company’s exercise under
Section 8.01 hereof of the option applicable to this Section 8.02, the Company and each of the
Subsidiary Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be deemed to have been discharged from their obligations with respect to all outstanding
Notes (including the Note Guarantees) on the date the conditions set forth below are satisfied
(hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the
Company

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and the Subsidiary Guarantors will be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes (including the Note Guarantees), which will
thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other
Sections of this Indenture referred to in clauses (1) and (2) below, and to have
satisfied all their other obligations under such Notes, the Note Guarantees and this Indenture (and
the Trustee, on demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which will survive until otherwise
terminated or discharged hereunder:

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

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

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

     (4) this Article 8.

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

     SECTION 8.03 Covenant Defeasance. Upon the Company’s exercise under Section 8.01
hereof of the option applicable to this Section 8.03, the provisions of this Indenture will no
longer be in effect with respect to clause (3) of the first paragraph under Section 5.01(a) and all
the covenants described herein under Article 4 (hereinafter “Covenant Defeasance”) and
clause (3) under Section 6.01 with respect to such clause (3) of the first paragraph under Section
5.01(a), clauses (4) and (5) under Section 6.01 with respect to such other covenants and clauses
(6) and (7) under Section 6.01 shall be deemed not to be Events of Default upon, among other
things, the deposit with the Trustee, in trust, of money and/or U.S. Government Obligations that
through the payment of interest and principal in respect thereof in accordance with their terms
will provide money in an amount sufficient to pay the principal of, premium, if any, and accrued
interest on the Notes on the Stated Maturity of such payments in accordance with the terms of this
Indenture and the Notes, the satisfaction of the provisions described in clauses 2(B), (3) and (7)
of Section 8.04 and the delivery by the Company to the Trustee of an Opinion of Counsel to the
effect that, among other things, the Holders will not recognize income, gain or loss for federal
income tax purposes as a result of such deposit and defeasance of certain covenants and Events of
Default and will be subject to federal income tax on the same amount and in the same
manner and at the same times as would have been the case if such deposit and defeasance had
not occurred. Upon such an occurrence the Notes will thereafter be deemed not “outstanding” for
the purposes of any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but will continue to be deemed
“outstanding” for all other purposes hereunder (it being understood that such Notes will not be
deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means

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that,
with respect to the outstanding Notes and Note Guarantees, the Company and the Subsidiary
Guarantors may omit to comply with and will have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to comply will not
constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified
above, the remainder of this Indenture and such Notes and Note Guarantees will be unaffected
thereby.

     In the event that the Company exercises its option to omit compliance with certain covenants
and provisions of this Indenture with respect to the Notes as described in the immediately
preceding paragraph and the Notes are declared due and payable because of the occurrence of an
Event of Default that remains applicable, the amount of money and/or U.S. Government Obligations on
deposit with the Trustee will be sufficient to pay amounts due on the Notes at the time of their
Stated Maturity but may not be sufficient to pay amounts due on the Notes at the time of the
acceleration resulting from such Event of Default. However, the Company will remain liable for such
payments and the Company’s obligations or any Subsidiary Guarantor’s Note Guarantee with respect to
such payments will remain in effect.

     SECTION 8.04 Conditions to Legal or Covenant Defeasance. In order to exercise either
Legal Defeasance or Covenant Defeasance under either Section 8.02 or 8.03:

     (1) The Company must deposit with the Trustee, in trust, money and/or U.S. Government
Obligations that through the payment of interest and principal in respect thereof in
accordance with their terms will provide money in an amount sufficient to pay the principal
of, premium, if any, and accrued interest on the Notes on the Stated Maturity of such
payments in accordance with the terms of this Indenture and the Notes;

     (2) The Company must have delivered to the Trustee (A) either (x) an Opinion of Counsel
to the effect that Holders will not recognize income, gain or loss for federal income tax
purposes as a result of the Company’s exercise of its option under this Article 8 and will
be subject to federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit, Defeasance and discharge had not
occurred, which Opinion of Counsel must be based upon (and accompanied by a copy of) a
ruling of the Internal Revenue Service to the same effect unless there has been a change in
applicable federal income tax law after the Closing Date such that a ruling is no longer
required or (y) a ruling directed to the Trustee received from the Internal Revenue Service
to the same effect as the aforementioned Opinion of Counsel and (B) an Opinion of Counsel to
the effect that the creation of the defeasance trust does not violate the Investment Company
Act of 1940 and after the passage of 123 days following the deposit, the trust fund will not
be subject to the effect
of Section 547 of the United States Bankruptcy Code or Section 15 of the New York
Debtor and Creditor Law;

     (3) immediately after giving effect to such deposit on a pro forma basis, no Event of
Default, or event that after the giving of notice or lapse of time or both would become an
Event of Default, shall have occurred and be continuing on the date of such

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deposit, and
such deposit shall not result in a breach or violation of, or constitute a default under,
any other agreement or instrument to which the Company or any of its Subsidiaries is a party
or by which the Company or any of its Subsidiaries is bound;

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

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

     (6) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to the Legal
Defeasance or the Covenant Defeasance have been complied with; and

     (7) if at such time the Notes are listed on a national securities exchange, the Company
must deliver to the Trustee an Opinion of Counsel to the effect that the Notes will not be
delisted as a result of such deposit, Defeasance and discharge.

provided, that notwithstanding the foregoing, in order to exercise Covenant Defeasance
under Section 8.03, the Company must only satisfy those conditions of this Section 8.04 that are
specifically identified in Section 8.03 hereof and such other conditions required by Section 8.03.

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

     The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable U.S. Government Obligations deposited pursuant to
Section 8.04 hereof or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

     Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver
or pay to the Company from time to time upon the request of the Company any money or non-callable
U.S. Government Obligations held by it as provided in Section 8.04 hereof which, in the opinion of
a nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee (which may be the opinion delivered under Section

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8.04(1) hereof),
are in excess of the amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

     SECTION 8.06 Repayment to Company. Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust pursuant to Section 8.04 or Section 12.01 for the
payment of the principal of, premium, if any, or interest on any Note and remaining unclaimed for
two years after such principal, premium, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) will be discharged from such
trust; and the Holder of such Note will thereafter be permitted to look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, will thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in The New York Times and
The Wall Street Journal (national edition), notice that such money remains unclaimed and that,
after a date specified therein, which will not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining will be repaid to
the Company.

     SECTION 8.07 Reinstatement. If the Trustee or Paying Agent is unable to apply any
United States dollars or non-callable U.S. Government Obligations in accordance with Section 8.02
or 8.03 hereof, as the case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the Company’s and
the Subsidiary Guarantors’ obligations under this Indenture and the Notes and the Note Guarantees
will be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03
hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 8.02 or 8.03 hereof, as the case may be; provided, however,
that, if the Company makes any payment of principal of, premium, if any, or interest on any Note
following the reinstatement of its obligations, the Company will be subrogated to the rights of the
Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

     SECTION 9.01 Without Consent of Holders of Notes. Notwithstanding Section 9.02 of
this Indenture (but subject in any event to Section 10.13), without the consent of any Holder of
Notes, the Company, the Subsidiary Guarantors and the Trustee may amend or supplement this
Indenture, the Notes or the Note Guarantees:

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

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

     (3) to conform the text of this Indenture to any provisions of the Description of the
Notes contained in the Offering Memorandum to the extent that a portion of that

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description
of the Notes was intended to be a verbatim recitation of this Indenture or the Notes;

     (4) to provide for the issuance of additional Notes under this Indenture to the extent
otherwise so permitted under the terms of this Indenture;

     (5) to comply with the provisions described under Section 4.19 or Section 5.01;

     (6) to comply with any requirements of the SEC in connection with the qualification of
this Indenture under the Trust Indenture Act;

     (7) to evidence and provide for the acceptance of appointment by a successor Trustee;

     (8) to add a Subsidiary Guarantor; or

     (9) to make any change that, in the good faith opinion of the Board of Directors, does
not materially and adversely affect the rights of any Holder.

     Upon the request of the Company and upon receipt by the Trustee of the documents described in
Section 13.04 hereof, the Trustee will join with the Company and the Subsidiary Guarantors in the
execution of any such amended or supplemental indenture, but the Trustee will not be obligated to
enter into such amended or supplemental indenture that affects its own rights, duties or immunities
under this Indenture or otherwise.

     SECTION 9.02 With Consent of Holders of Notes. Except as provided below in this
Section 9.02 and Section 10.13, the Company, the Subsidiary Guarantors and the Trustee may amend or
supplement this Indenture (including, without limitation, Section 4.10 and 4.15 hereof), the Note
Guarantees and the Notes with the consent of the Holders of at least a majority in aggregate
principal amount of the Notes (including, without limitation, Additional Notes, if any) then
outstanding (including, without limitation, consents obtained in connection with a tender offer or
exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any
existing Default or Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium, if any, or interest on the Notes, except a payment default resulting
from an acceleration that has been rescinded) or compliance with any provision of this Indenture or
the Note Guarantees or the Notes may be waived with the consent of the Holders of a majority in
aggregate principal amount of the then outstanding Notes (including, without limitation, Additional
Notes, if any) voting as a single class (including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the Notes). Section 2.08
hereof shall determine which Notes are considered to be “outstanding” for purposes of this Section
9.02.

     Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section 13.04 hereof, the
Trustee will join with the Company and the Subsidiary Guarantors in the execution of such

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amended
or supplemental indenture unless such amended or supplemental indenture directly affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but will not be obligated to, enter into such amended or
supplemental Indenture.

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

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company will mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, will not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver. However, without the consent of each Holder affected, an amendment,
supplement or waiver under this Section 9.02 may not (with respect to any Notes held by a
non-consenting Holder):

     (1) change the Stated Maturity of the principal of, or any installment of interest on,
any Note;

     (2) reduce the principal amount of, or premium, if any, or interest on, any Note;

     (3) change the optional Redemption Date s or optional redemption prices of the Notes
from that stated under Section 3.07;

     (4) change the place or currency of payment of principal of, or premium, if any, or
interest on, any Note;

     (5) impair the right to institute suit for the enforcement of any payment on or after
the Stated Maturity (or, in the case of a redemption, on or after the Redemption Date) of
any Note;

     (6) waive a default in the payment of principal of, premium, if any, or interest on the
Notes (other than a rescission of acceleration of the Notes to the extent that such
acceleration was initially instituted pursuant to a vote of the Holders);

     (7) amend, change or modify the obligation of the Company to make and consummate an
Offer to Purchase as described under Section 4.10 after the obligation to make such an offer
has arisen or the obligation of the Company to make and consummate an Offer to Purchase as
described under Section 4.15 after a Change of Control has occurred;

     (8) release any Subsidiary Guarantor from its Note Guarantee, except as provided in
this Indenture;

     (9) amend or modify any of the provisions of this Indenture in any manner which
subordinates the Notes issued thereunder in right of payment to any other

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Indebtedness of
the Company or which subordinates any Note Guarantee in right of payment to any other
Indebtedness of the Subsidiary Guarantor issuing any such Note Guarantee; or

     (10) reduce the percentage or aggregate principal amount of outstanding Notes the
consent of whose Holders is necessary for waiver of compliance with certain provisions of
this Indenture or for waiver of certain defaults.

     SECTION 9.03 Compliance with Trust Indenture Act. Every amendment or supplement to
this Indenture or the Notes will be set forth in an amended or supplemental indenture that complies
with the TIA as then in effect.

     SECTION 9.04 Revocation and Effect of Consents. Until an amendment, supplement or
waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the
Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note.
However, any such Holder of a Note or subsequent Holder of a Note may revoke the consent as to its
Note if the Trustee receives written notice of revocation before the date the waiver, supplement or
amendment becomes effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

     For purposes of this Indenture, the consent of the Holder of a Global Security shall be deemed
to include any consent delivered by any member of, or participant in, any Depository or DTC, any
nominees thereof and their respective successors and assigns, or such other depository institution
hereinafter appointed by the Company (“Depository Entity”) by electronic means in accordance with
the Automated Tender Offer Procedures system or other customary procedures of, and pursuant to
authorization by, such Depository Entity.

     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 required or
permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding
the first paragraph of this Section 9.04, those Persons who were Holders at such 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.

     Any Holder entitled hereunder to give, make or take any action under this Indenture with
regard to any particular Note may do so, or duly appoint any Person or Persons as its agent or
agents to do so, with regard to all or any part of the principal amount of such Note.

     SECTION 9.05 Notation on or Exchange of Notes. The Trustee may place an appropriate
notation about an amendment, supplement or waiver on any Note thereafter
authenticated. The Company in exchange for all Notes may issue and the Trustee shall, upon
receipt of an Authentication Order, authenticate new Notes that reflect the amendment, supplement
or waiver.

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     Any consent of any Holder of Notes may include, without limitation, any consent obtained in
connection with a tender offer or exchange offer for, or purchase of, Notes.

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

     SECTION 9.06 Trustee to Sign Amendments, etc. The Trustee will sign any amended or
supplemental indenture authorized pursuant to this Article 9 if the amendment or supplement
does not adversely affect the rights, duties, liabilities or immunities of the Trustee. The
Company may not sign an amended or supplemental indenture until its Board of Directors approves it.
In executing any amended or supplemental indenture, the Trustee will be provided with and (subject
to Section 7.01 hereof) will be fully protected in relying upon, in addition to the documents
required by Section 13.04 hereof, an Officers’ Certificate and an Opinion of Counsel stating that
the execution of such amended or supplemental indenture is authorized or permitted by this
Indenture.

ARTICLE 10

[INTENTIONALLY OMITTED]

ARTICLE 11

NOTE GUARANTEES

     SECTION 11.01 Guarantee.

     (a) Subject to this Article 11, each of the Subsidiary Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Note authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company hereunder or
thereunder, that:

     (1) the principal of, premium, if any, and interest on the Notes will be promptly paid
in full when due, whether at maturity, by acceleration, redemption or otherwise, and
interest on the overdue principal of and interest on the Notes, if any, if lawful, and all
other obligations of the Company to the Holders or the Trustee hereunder or thereunder will
be promptly paid in full or performed, all in accordance with the terms hereof and thereof;
and

     (2) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

     Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Subsidiary Guarantors will be jointly and severally obligated
to pay the same immediately. Each Subsidiary Guarantor agrees that this is a guarantee of
payment and not a guarantee of collection.

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     (b) The Subsidiary Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a Subsidiary Guarantor. Each Subsidiary Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency
or bankruptcy of the Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenant that this Note Guarantee will not be discharged
except by complete performance of the obligations contained in the Notes and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Company, the Subsidiary Guarantors or any custodian, trustee, liquidator or other similar official
acting in relation to either the Company or the Subsidiary Guarantors, any amount paid by either to
the Trustee or such Holder, this Note Guarantee, to the extent theretofore discharged, will be
reinstated in full force and effect.

     (d) Each Subsidiary Guarantor agrees that it will not be entitled to any right of subrogation
in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of
all obligations guaranteed hereby. Each Subsidiary Guarantor further agrees that, as between the
Subsidiary Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (1) the
maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6
hereof for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (2)
in the event of any declaration of acceleration of such obligations as provided in Article
6 hereof, such obligations (whether or not due and payable) will forthwith become due and
payable by the Subsidiary Guarantors for the purpose of this Note Guarantee, in each case subject
to any rescission of any such acceleration pursuant to Section 6.04. The Subsidiary Guarantors
will have the right to seek contribution from any non-paying Subsidiary Guarantor so long as the
exercise of such right does not impair the rights of the Holders under the Note Guarantee.

     SECTION 11.02 Intentionally Omitted

     SECTION 11.03 Limitation on Subsidiary Guarantor Liability. Each Subsidiary
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of
all such parties that the Note Guarantee of such Subsidiary Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any
Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Subsidiary
Guarantors hereby irrevocably agree that the obligations of such Subsidiary Guarantor will be
limited to the maximum amount that will, after giving effect to such maximum amount and all other
contingent and fixed liabilities of such Subsidiary Guarantor that are
relevant under such laws, and after giving effect to any collections from, rights to receive
contribution from or payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under this Article 11, result in the

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obligations of such Subsidiary Guarantor under its Note Guarantee not constituting a fraudulent
transfer or conveyance.

     SECTION 11.04 Execution and Delivery of Note Guarantee. To evidence its Note
Guarantee set forth in Section 11.01 hereof, each Subsidiary Guarantor hereby agrees that a
notation of such Note Guarantee substantially in the form attached as Exhibit E hereto will
be endorsed by an Officer of such Subsidiary Guarantor on each Note authenticated and delivered by
the Trustee and that this Indenture will be executed on behalf of such Subsidiary Guarantor by one
of its Officers.

     Each Subsidiary Guarantor hereby agrees that its Note Guarantee set forth in Section 11.01
hereof will remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Note Guarantee.

     If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds
that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed,
the Note Guarantee will be valid nevertheless.

     The delivery of any Note by the Trustee, after the authentication thereof hereunder, will
constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the
Subsidiary Guarantors.

     SECTION 11.05 Subsidiary Guarantors May Consolidate, etc., on Certain Terms. Except
as otherwise provided in this Section 11.05, no Subsidiary Guarantor will consolidate with, merge
with or into, or sell, convey, transfer, lease or otherwise dispose of all or substantially all of
its property and assets (as an entirety or substantially an entirety in one transaction or a series
of related transactions) to, any Person or permit any Person to merge with or into it unless:

     (1) it shall be the continuing Person, or the Person (if other than it) formed by such
consolidation or into which it is merged or that acquired or leased such property and assets
shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee,
all of such Subsidiary Guarantor’s obligations under its Note Guarantee and the Registration
Rights Agreement;

     (2) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing; and

     (3) the Company will have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such transaction and such supplemental indenture
comply with the applicable provisions of this Indenture, that all conditions precedent in
this Indenture relating to such transaction have been satisfied and that such supplemental
indenture is enforceable.

     In case of any such consolidation, merger, sale or disposition and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the Trustee and
substantially in the form of Exhibit F hereto, of the Note Guarantee endorsed upon the
Notes and the due and punctual performance of all of the covenants and conditions of this Indenture
to be

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performed by the Subsidiary Guarantor, such successor Person will succeed to and be
substituted for the Subsidiary Guarantor with the same effect as if it had been named herein as a
Subsidiary Guarantor. Such successor Person thereupon may cause to be signed any or all of the
Note Guarantees to be endorsed upon all of the Notes issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee. All the Note Guarantees so issued
will in all respects have the same legal rank and benefit under this Indenture as the Note
Guarantees theretofore and thereafter issued in accordance with the terms of this Indenture as
though all of such Note Guarantees had been issued at the date of the execution hereof.

     Except as set forth in Articles 4 and 5 hereof, and notwithstanding
clauses (1), (2) and (3) above, the foregoing requirements of this Section
11.05 shall not apply to a consolidation or merger of any Subsidiary Guarantor with and into the
Company or any other Subsidiary Guarantor, so long as the Company or such Subsidiary Guarantor
survives such consolidation or merger.

     SECTION 11.06 Releases.

     The Note Guarantee of a Subsidiary Guarantor will be released, and such Subsidiary Guarantor
will be released from and relieved of all of its obligations under its Note Guarantee and this
Indenture:

     (1) in connection with any sale, exchange or transfer of all or substantially all of
the Capital Stock of that Subsidiary Guarantor (including by way of merger or consolidation)
to a Person that is not (either before or after giving effect to such transaction) the
Company or a Restricted Subsidiary of the Company, if the sale, disposition or transfer does
not violate the first paragraph of Section 4.10;

     (2) in connection with any sale, disposition or transfer of all of the Capital Stock of
that Subsidiary Guarantor to a Person that is not (either before or after giving effect to
such transaction) the Company or a Restricted Subsidiary of the Company, if the sale,
disposition or transfer does not violate the first paragraph of Section 4.10;

     (3) if the Company designates any Restricted Subsidiary that is a Subsidiary Guarantor
to be an Unrestricted Subsidiary in accordance with the applicable provisions of this
Indenture; or

     (4) upon Legal Defeasance in accordance with Article 8 hereof or satisfaction
and discharge of this Indenture in accordance with Article 12 hereof.

     Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of
Counsel to the effect that a release of a Subsidiary Guarantor in accordance with this Section
11.06 is authorized or permitted by this Indenture, Trustee will, upon the request and at the
expense of the Company, execute any documents reasonably requested by the Company in order
to evidence the release of such Subsidiary Guarantor from its obligations under its Note
Guarantee and this Indenture.

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ARTICLE 12

SATISFACTION AND DISCHARGE

     SECTION 12.01 Satisfaction and Discharge. This Indenture will be discharged and will
cease to be of further effect as to all Notes issued hereunder when:

(1) either

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

     (b) all Notes not theretofore delivered to the Trustee for cancellation have
become due and payable pursuant to an optional redemption notice or otherwise or
will become due and payable within one year, and the Company has irrevocably
deposited or caused to be deposited with the Trustee funds in an amount sufficient
to pay and discharge the entire indebtedness on the Notes not theretofore delivered
to the trustee for cancellation, for principal of, premium, if any, and interest on
the Notes to the date of deposit together with irrevocable instructions from the
Company directing the Trustee to apply such funds to the payment thereof at maturity
or redemption, as the case may be; and

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

     (3) the Company has paid all other sums payable under this Indenture by the Company;
and

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

In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.
Upon satisfaction of the conditions set forth in this Section 12.01, and the receipt of such
Officers’ Certificate and Opinion of counsel, the Trustee, upon request and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture.

     Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (b) of clause (1) of this Section, the
provisions of Sections 12.02 and 8.06 will survive. In addition, nothing in this Section 12.01 will
be deemed

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to discharge those provisions of Section 7.07 hereof, that, by their terms, survive the
satisfaction and discharge of this Indenture.

     SECTION 12.02 Application of Trust Money. Subject to the provisions of Section 8.06
hereof, all money deposited with the Trustee pursuant to Section 12.01 hereof shall be held in
trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and interest for whose payment such money has been deposited with the Trustee; but
such money need not be segregated from other funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 12.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Subsidiary Guarantor’s obligations under this Indenture and
the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section
12.01 hereof; provided that if the Company has made any payment of principal of, premium,
if any, or interest on any Notes because of the reinstatement of its obligations, the Company shall
be subrogated to the rights of the Holders of such Notes to receive such payment from the money or
U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE 13

MISCELLANEOUS

     SECTION 13.01 Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by TIA § 318(c), the imposed duties will
control.

     SECTION 13.02 Notices. Any notice or communication by the Company, any Subsidiary
Guarantor or the Trustee to the others is duly given if in writing and delivered in Person or
mailed by first class mail (registered or certified, return receipt requested), telex, telecopier
or overnight air courier guaranteeing next day delivery, to the others’ address:

     If to the Company and/or any Subsidiary Guarantor:

Hanesbrands Inc.

1000 East Hanes Mill Road

Winston Salem, North Carolina 27105

Attention: Richard D. Moss

With a copy to:

Kirkland & Ellis LLP

200 E. Randolph Drive

Chicago, Illinois 60601

Attention: Gerald T. Nowak

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If to the Trustee:

Branch Banking and Trust Company

223 West Nash Street

Wilson, North Carolina 27893

Attention: Corporate Trust Administration

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

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

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

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

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

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     Where this Indenture provides for notice of any event to a Holder of a Global Note, such
notice shall be sufficiently given if given to the Depository for such Note (or its designee),
pursuant to the Applicable Procedures, not later than the latest date (if any), and not earlier
than the earliest date (if any), prescribed for the giving of such notice.

     SECTION 13.03 Communication by Holders of Notes with Other Holders of Notes. Holders
may communicate pursuant to TIA § 312(b) with other Holders with respect to their rights under this
Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

     SECTION 13.04 Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the

96

 

Company
shall furnish to the Trustee (except that the Opinion of Counsel referred to in Section 13.04(2)
hereof shall not be required in connection with the Authentication Order):

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 13.05 hereof) stating that,
in the opinion of the signers, all conditions precedent and covenants, if any, provided for
in this Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 13.05 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been satisfied.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion as to such matters in one or several documents.

     Any certificate or opinion of an Officer of the Company or any Subsidiary Guarantor may be
based, insofar as it relates to legal matters, upon a certificate of opinion of, or representations
by, counsel, unless such Officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, and may
state that it is so based, insofar as it relates to factual matters, upon a certificate or opinion
of, or representations by, an Officer or Officers of the Company or such Subsidiary Guarantor
stating that the information with respect to such factual matters is in possession of the Company
or such Subsidiary Guarantor, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate of opinion or representations with respect to such matters are
erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

     SECTION 13.05 Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture
(other than a certificate provided pursuant to TIA § 314(a)(4)) must comply with the provisions of
TIA § 314(e) and must include:

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

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

97

 

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

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

     SECTION 13.06 Rules by Trustee and Agents. The Trustee may make reasonable rules for
action by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and
set reasonable requirements for its functions.

     SECTION 13.07 No Personal Liability of Incorporators, Stockholders, Officers, Directors or
Employees. No recourse for the payment of the principal of, premium, if any, or interest on
any of the Notes or for any claim based thereon or otherwise in respect thereof, and no recourse
under or upon any obligation, covenant or agreement of any Obligor in this Indenture, or in any of
the Notes or Note Guarantees or because of the creation of any Indebtedness represented thereby,
shall be had against any incorporator, stockholder, officer, director, employee or controlling
person of the Company or any Subsidiary Guarantor or of any successor Person thereof. Each Holder,
by accepting the Notes, waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of the Notes. Such waiver may not be effective to waive
liabilities under the federal securities laws.

     SECTION 13.08 Governing Law. THIS INDENTURE AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HERETO AND THERETO, INCLUDING THE INTERPRETATION, CONSTRUCTION, VALIDITY AND ENFORCEABILITY
THEREOF, SHALL BE GOVERNED BY AND SHALL BE CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

     SECTION 13.09 No Adverse Interpretation of Other Agreements. This Indenture may not
be used to interpret any other indenture, loan or debt agreement of the Company or its Subsidiaries
or of any other Person. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

     SECTION 13.10 Successors. All agreements of the Company in this Indenture and the
Notes will bind its successors. All agreements of the Trustee in this Indenture will bind its
successors. All agreements of each Subsidiary Guarantor in this Indenture will bind its
successors, except as otherwise provided in Section 11.06.

     SECTION 13.11 Severability. In case any provision in this Indenture or in the Notes
is invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby.

     SECTION 13.12 Counterpart Originals. The parties may sign any number of copies of
this Indenture. Each signed copy will be an original, but all of them together represent the same
agreement.

98

 

     SECTION 13.13 Table of Contents, Headings, etc. The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this Indenture have been
inserted for convenience of reference only, are not to be considered a part of this Indenture and
will in no way modify or restrict any of the terms or provisions hereof.

     SECTION 13.14 Benefits of Indenture. Nothing in this Indenture or in the Notes or
Note Guarantees, express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder and the Holders of Notes, any benefit or any legal or equitable right,
remedy or claim under this Indenture, the Notes or the Note Guarantees.

[Signatures on following pages]

99

 

SIGNATURES

	 	 	 	 	 	 	 
	 	 	Hanesbrands Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard D. Moss	 	 
	 

	 	 	 	 

Name:    Richard D. Moss
	 	 
	 

	 	 	 	Title:       Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	BA International, L.L.C.	 	 
	 	 	Caribesock, Inc.	 	 
	 	 	Caribetex, Inc.	 	 
	 	 	CASA International, LLC	 	 
	 	 	Ceibena Del, Inc.	 	 
	 	 	Hanes Menswear, LLC	 	 
	 	 	Hanes Puerto Rico, Inc.	 	 
	 	 	Hanesbrands Direct, LLC	 	 
	 	 	Hanesbrands Distribution, Inc.	 	 
	 	 	HBI Branded Apparel Limited, Inc.	 	 
	 	 	HBI Branded Apparel Enterprises, LLC	 	 
	 	 	HbI International, LLC	 	 
	 	 	HBI Sourcing, LLC	 	 
	 	 	Inner Self LLC	 	 
	 	 	Jasper-Costa Rica, L.L.C.	 	 
	 	 	National Textiles, L.L.C.	 	 
	 	 	NT Investment Company, Inc.	 	 
	 	 	Playtex Dorado, LLC	 	 
	 	 	Playtex Industries, Inc.	 	 
	 	 	Seamless Textiles, LLC	 	 
	 	 	UPCR, Inc.	 	 
	 	 	UPEL, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	      /s/ Richard D. Moss	 	 
	 

	 	 	 	 

Name: Richard D. Moss
	 	 
	 

	 	 	 	Title: Treasurer	 	 

Indenture

 

 

	 	 	 	 	 	 	 
	 	 	Branch Banking and Trust Company, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	      /s/ Gregory J. Yanok
 

Name: Gregory J. Yanok
	 	 
	 

	 	 	 	Title: Assistant Vice President	 	 

Indenture

 

 

EXHIBIT A

[Face of Note]

 

CUSIP/CINS [                    ]

Floating Rate Senior Notes due 2014

			
	 	 	 
	No.[                    ]
	 	$[                                        ]

HANESBRANDS INC.

promises to pay to [                                        ] or registered assigns,

the principal sum of [                                                                   
                                                     ] DOLLARS [Insert if Note
is issued in Global Form: (or such [greater] [or] [lesser] amount as may from time to time be
endorsed in accordance with the Indenture on the “Schedule of Exchanges of Interests in the Global
Note” attached hereto)] on December 15, 2014.

Interest Payment Dates: June 15 and December 15

Record Dates: June 1 and December 1

Dated: December 14, 2006

	 	 	 	 	 	 	 
	 	 	HANESBRANDS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

This is one of the Notes referred to

in the within-mentioned Indenture:

Branch Banking and Trust Company

     as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

  Authorized Signatory
	 	 

      

A-1

 

Back of Note

Floating Rate Senior Notes due 2014

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) Interest. Hanesbrands Inc., a Maryland corporation (the “Company”),
promises to pay interest on the principal amount of this Note at the rate per annum, reset
semi-annually, equal to LIBOR plus 3.375%, as determined by the calculation agent (the
“Calculation Agent”), which shall initially be the Trustee as set forth below. The Company
will pay interest semi-annually in arrears on June 15 and December 15 of each year, or if any such
day is not a Business Day, on the next succeeding Business Day (each, an “Interest Payment
Date”). Interest on the Notes will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from the date of issuance; provided that if there is
no existing Default in the payment of interest, and if this Note is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided further that the
first Interest Payment Date shall be June 15, 2007. The Company will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate
then in effect; it will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest from time to time on demand at the same rate to
the extent lawful. Interest will be computed on the basis of a 360-day year comprised of twelve
30-day months.

     The amount of interest for each day that the Notes are outstanding (the “Daily
Interest”) will be calculated by dividing the interest rate in effect for such day by 360 and
multiplying the result by the principal amount of the Notes. The amount of interest to be paid on
the Notes for each Interest Period will be calculated by adding the Daily Interest amounts for each
day in the Interest Period.

     All percentages resulting from any of the above calculations will be rounded, if necessary, to
the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage
point being rounded upwards (e.g., 9.876545% (or .09876545) being
rounded to 9.87655% (or .0987655)) and all dollar amounts used in or resulting from such calculations will be rounded to
the nearest cent (with one-half cent being rounded upwards).

     The interest rate on the Notes will in no event be higher than the maximum rate permitted by
applicable law.

     (2) Method of Payment. The Company will pay interest on the Notes (except defaulted
interest) to the Persons who are registered Holders of Notes at the close of business on the June 1
or December 1 next preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest. The Notes will be payable as to principal,

A-2

 

premium and interest at the office or agency of the Company maintained for such purpose within
or without the City and State of New York, or, at the option of the Company, payment of interest
may be made by check mailed to the Holders at their addresses set forth in the register of Holders;
provided that payment by wire transfer of immediately available funds will be required with
respect to principal of, interest, and premium, if any, on all Global Notes and all other Notes the
Holders of which will have provided wire transfer instructions to the Company or the Paying Agent.
Such payment will be in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.

     (3) Paying Agent and Registrar. Initially, Branch Banking and Trust Company, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may
act in any such capacity.

     (4) Indenture. The Company issued the Notes under an Indenture dated as of December
14, 2006 (the “Indenture”) among the Company, the Guarantors 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 TIA (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders
are referred to the Indenture and such Act for a statement of such terms. To the extent any
provision of this Note conflicts with the express provisions of the Indenture, the provisions of
the Indenture shall govern and be controlling. The Notes are unsecured obligations of the Company.

     (5) Optional Redemption.

     (a) The Company may redeem the Notes, in whole or in part, at any time on or after December
15, 2008. The redemption price for the Notes (expressed as a percentage of principal amount) will
be as follows, plus accrued and unpaid interest to the Redemption Date, if redeemed during the
12-month period commencing on December 15 of any year set forth below preceded below:

	 	 	 	 	 
	Year	 	Redemption Price
	2008
	 	 	102.000	%
	2009
	 	 	101.000	%
	2010 and thereafter
	 	 	100.000	%

     (b) At any time on or prior to December 15, 2008, the Company may redeem up to 35% of the
principal amount of Notes with the net cash proceeds of one or more sales of Capital Stock (other
than Disqualified Stock) of the Company at a redemption price equal to the product of (x) the sum
of (1) 100% and (2) a percentage equal to the per annum rate of interest on the Notes then
applicable on the date on which the notice of redemption is given and (y) the principal amount
thereof, plus accrued and unpaid interest to the Redemption Date; provided that at least 65% of the
aggregate principal amount of the Notes originally issued under this Indenture remains outstanding
after each such redemption and notice of any such redemption is mailed within 180 days of each such
sale of Capital Stock.

A-3

 

     (c) At any time prior to December 15, 2008, the Company may also redeem all or a part of the
Notes upon not less than 30 nor more than 60 days’ prior notice mailed by first-class mail to each
Holder’s registered address, at a redemption price equal to 100% of the principal amount of Notes
redeemed plus the Applicable Premium as of, and accrued and unpaid interest and additional
interest, if any, to the Redemption Date, subject to the rights of Holders of Notes on the relevant
record date to receive interest due on the relevant interest payment date.

     Unless the Company defaults in the payment of the redemption price, interest will cease to
accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

     (6) Mandatory Redemption. The Company is not required to make mandatory redemption
or sinking fund payments with respect to the Notes.

     (7) Repurchase at the Option of Holder.

     (a) If a Change of Control occurs, the Company will make a Change of Control Offer to each
Holder to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000) of each
Holder’s Notes at a purchase price equal to 101% of the aggregate principal amount thereof plus
accrued and unpaid interest on the Notes repurchased, if any, to, but not including, the date of
purchase, subject to the rights of the Holders on the relevant record date to receive interest due
on the relevant interest payment date.

     (b) If the Company or a Restricted Subsidiary of the Company consummates any Asset Sales, in
which the aggregate amount of Excess Proceeds not theretofore subject to an Offer to Purchase
pursuant to Section 4.10 of the Indenture totals at least $50.0 million, the Company must commence,
not later than the last Business Day of the month in which such Excess Proceeds exceed $50.0
million, and consummate an Offer to Purchase from the Holders (and, if required by the terms of any
Pari Passu Indebtedness, from the holders of such Pari Passu Indebtedness) on a pro rata basis an
aggregate principal amount of Notes (and Pari Passu Indebtedness) equal to the Excess Proceeds on
such date, at a purchase price equal to 100% of their principal amount, plus, in each case, accrued
interest (if any) to the Payment Date. To the extent that any Excess Proceeds remain after
consummation of an Offer to Purchase pursuant to Section 4.10 of the Indenture, the Company may use
those Excess Proceeds for any purpose not otherwise prohibited by the Indenture and the amount of
Excess Proceeds shall be reset to zero. Pending the final application of any Net Proceeds, the
Company may temporarily reduce revolving credit borrowings or otherwise invest the Net Proceeds in
any manner that is not prohibited by the Indenture.

     (8) Notice of Redemption. At least 30 days but not more than 60 days before a
Redemption Date, the Company will mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed at its registered address, except that
redemption notices may be mailed more than 60 days prior to a Redemption Date if the notice is
issued in connection with a defeasance of the Notes or a satisfaction and discharge of the
Indenture pursuant to Articles 8 or 12 of the Indenture.

A-4

 

     (9) Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, the Company need not exchange or register the transfer of any Notes for a
period of 15 days before a selection of Notes to be redeemed or during the period between a record
date and the corresponding Interest Payment Date.

     (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes.

     (11) Amendment, Supplement and Waiver.

     (a) Subject to certain exceptions, the Company, the Subsidiary Guarantors and the Trustee may
amend or supplement the Indenture (including, without limitation, Section 4.10 and 4.15 thereof),
the Note Guarantees and the Notes with the consent of the Holders of at least a majority in
aggregate principal amount of the Notes (including, without limitation, Additional Notes, if any)
then outstanding (including, without limitation, consents obtained in connection with a tender
offer or exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 of
the Indenture, any existing Default or Event of Default (other than a Default or Event of Default
in the payment of the principal of, premium, if any, or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance with any provision of
the Indenture or the Note Guarantees or the Notes may be waived with the consent of the Holders of
a majority in aggregate principal amount of the then outstanding Notes (including, without
limitation, Additional Notes, if any) voting as a single class (including, without limitation,
consents obtained in connection with a tender offer or exchange offer for, or purchase of, the
Notes). Section 2.08 of the Indenture shall determine which Notes are considered to be
“outstanding”.

     (b) Without the consent of any Holder, the Company, the Subsidiary Guarantors and the Trustee
may amend or supplement the Indenture, the Notes or the Note Guarantees: to cure any ambiguity,
defect or inconsistency; to provide for uncertificated Notes in addition to or in place of
certificated Notes; to conform the text of the Indenture to any provisions of the Description of
the Notes contained in the Offering Memorandum to the extent that a portion of that description of
the Notes was intended to be a verbatim recitation of the Indenture or the Notes; to provide for
the issuance of additional Notes under the Indenture to the extent otherwise so permitted under the
terms of the Indenture; to comply with the provisions described under Section 4.19 or Section 5.01
of the Indenture; to comply with any requirements of the SEC in connection with the qualification
of the Indenture under the Trust Indenture Act; to evidence and provide for the acceptance of
appointment by a successor Trustee; to add a Subsidiary Guarantor; or to make any change that, in
the good faith opinion of the Board of Directors, does not materially and adversely affect the
rights of any Holder.

A-5

 

     (12) Defaults and Remedies.

     (a) Events of Default include: (i) default for 30 days in the payment when due of interest
on the Notes; (ii) default in the payment when due (at maturity, upon redemption or otherwise) of
the principal of, or premium, if any, on the Notes; (iii) failure by the Company or any of its
Restricted Subsidiaries to comply with the provisions of Section 4.15 or Section 5.01 of the
Indenture; (iv) failure by the Company or any of its Restricted Subsidiaries for 30 days after
notice to the Company by the trustee or the Holders of at least 25% in aggregate principal amount
of the Notes then outstanding voting as a single class to comply with the provisions of Section
4.07, Section 4.09 or Section 4.10 of the Indenture; (v) failure by the Company or any of its
Restricted Subsidiaries for 60 days after notice to the Company by the trustee or the Holders of at
least 25% in aggregate principal amount of the Notes then outstanding voting as a single class to
comply with any of the other agreements in the Indenture; (vi) default under any mortgage,
indenture or instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries
(or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries),
whether such Indebtedness or Guarantee now exists or is created after the date of the Indenture, if
that default: (a) is caused by a failure to pay principal of, or interest or premium, if any, on,
such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the
date of such default; or (b) results in the acceleration of such Indebtedness prior to its express
maturity, and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness or the maturity of which has been so accelerated,
aggregates $100.0 million or more; (vii) failure by the Company or any of its Restricted
Subsidiaries to pay final judgments entered by a court or courts of competent jurisdiction
aggregating in excess of $100.0 million, which judgments are not paid, discharged or stayed for a
period of 60 days;(viii) except as permitted by the Indenture, any Note Guarantee is held in any
judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and
effect or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary Guarantor
denies or disaffirms its obligations under its Note Guarantee; (ix) the Company or any of its
Restricted Subsidiaries that would constitute a Significant Subsidiary pursuant to or within the
meaning of Bankruptcy Law: (a) commences a voluntary case; (b) consents to the entry of an order
for relief against it in an involuntary case; (c) consents to the appointment of a custodian of it
or for all or substantially all of its property; or (d) makes a general assignment for the benefit
of its creditors; and (x) court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that: (a) is for relief against the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary in an involuntary case; (b) appoints a custodian of the Company or
any of its Restricted Subsidiaries that is a Significant Subsidiary or for all or substantially all
of the property of the Company or any of its Restricted Subsidiaries that is a Significant
Subsidiary; or (c) orders the liquidation of the Company or any of its Restricted Subsidiaries that
is a Significant Subsidiary; and the order or decree remains unstayed and in effect for 60
consecutive days.

     (b) In the case of an Event of Default specified in clause (9) or (10) of Section 6.01 of the
Indenture, the principal of, premium, if any, and accrued interest on the Notes then outstanding
shall automatically become due and payable immediately without any declaration or other act on the
part of the Trustee or any Holder. If any other Event of Default occurs and is continuing under
the Indenture, the Trustee or the Holders of at least 25% in aggregate principal

A-6

 

amount of the Notes, then outstanding, by written notice to the Company (and to the Trustee if
such notice is given by the Holders), may, and the Trustee at the request of such Holders shall,
declare the principal of, premium, if any, and accrued interest on the Notes to be immediately due
and payable. Upon a declaration of acceleration, such principal of, premium, if any, and accrued
interest shall be immediately due and payable. In the event of a declaration of acceleration
because an Event of Default set forth in clause (6) of Section 6.01 of the Indenture has occurred
and is continuing, such declaration of acceleration shall be automatically rescinded and annulled
if the event of default triggering such Event of Default pursuant to clause (6) of Section 6.01 of
the Indenture shall be remedied or cured by the Company or the relevant Restricted Subsidiary or
waived by the holders of the relevant Indebtedness within 60 days after the declaration of
acceleration with respect thereto.

     (13) Trustee Dealings with Company. The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company or any
Affiliates of the Company, with the same rights it would have if it were not the Trustee.

     (14) No Recourse Against Others. A director, officer, employee, incorporator or
stockholder, of the Company or any Guarantor, as such, will not have any liability for any
obligations of the Company or the Guarantors under the Notes, the Note Guarantees or the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or their creation.
Each Holder by accepting a Note waives and releases all such liability. The waiver and release are
part of the consideration for the issuance of the Notes.

     (15) Authentication. This Note will not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

     (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or
an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN
(= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (17) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on
the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the
Notes or as contained in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

     (18) Governing Law. THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO
AND THERETO, INCLUDING THE INTERPRETATION, CONSTRUCTION, VALIDITY AND ENFORCEABILITY THEREOF, SHALL
BE GOVERNED BY AND SHALL BE CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

A-7

 

Hanesbrands Inc.

1000 East Hanes Mill Road

Winston-Salem, North Carolina 27105

Attention: Corporate Secretary

A-8

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name) 

 

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

 

 

 

 

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

	 	 	 
	and irrevocably appoint
	 	 
	 

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

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

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

Signature Guarantee*:                                                        

	 	•	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or
4.15 of the Indenture, check the appropriate box below:

o Section 4.10                      o Section 4.15

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have
purchased:

$          
                  
                  
                   
               

Date:                                              

	 	 	 	 	 	 	 
	 

	 	Your Signature:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Sign exactly as your name appears on the face of this Note)
	 	 	Tax Identification No.:
	 

	 	 	 	 	 	 

Signature Guarantee*:                                                                  

	 	•	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

A-10

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount at	 	 
	 	 	Amount of decrease in	 	Amount of increase in	 	maturity of this	 	 
	 	 	Principal Amount at	 	Principal Amount at	 	Global Note following	 	Signature of authorized
	 	 	maturity of	 	maturity of	 	such decrease	 	officer of Trustee or
	Date of Exchange	 	this Global Note	 	this Global Note	 	(or increase)	 	Custodian
	 	 	 	 	 	 	 	 	 

 

			
	*	 	This schedule should be included only if the Floating Rate Note is issued in global form.

A-11

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Hanesbrands Inc.

1000 East Hanes Mill Road

Winston-Salem, North Carolina 27105

Attention: Richard D. Moss

Branch Banking and Trust Company

223 West Nash Street

Wilson, North Carolina 27893

Attention: Corporate Trust Administration

Fax No: [                    ]

     Re: Floating Rate Senior Notes Due 2014

     Reference is hereby made to the Indenture, dated as of December 14, 2006 (the
“Indenture”), among Hanesbrands Inc. as issuer (the “Company”), the Subsidiary
Guarantors party thereto and Branch Banking and Trust Company, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

                         , (the “Transferor”) owns and proposes to transfer the Note[s] or
interest in such Note[s] specified in Annex A hereto, in the principal amount of $                    in such
Note[s] or interests (the “Transfer”), to                                          (the “Transferee”),
as further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby
certifies that:

[CHECK ALL THAT APPLY]

     1. o Check if Transferee will take delivery of a beneficial interest in the 144A
Global Note or a Restricted Definitive Note pursuant to Rule 144A. The Transfer is being
effected pursuant to and in accordance with Rule l44A under the Securities Act of 1933, as amended
(the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Note for its own account,
or for one or more accounts with respect to which such Person exercises sole investment discretion,
and such Person and each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A, and such Transfer is in
compliance with any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Restricted
Definitive Note and in the Indenture and the Securities Act.

     2. o Check if Transferee will take delivery of a beneficial interest in the
Regulation S Global Note or a Restricted Definitive Note pursuant to Regulation S. The Transfer
is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made
to a Person in the United States and (x) at the time the buy order was originated, the Transferee
was outside the United States or such Transferor and any Person acting on its behalf reasonably

B-1

 

believed and believes that the Transferee was outside the United States or (y) the transaction
was executed in, on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the
Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the
expiration of the Restricted Period, the transfer is not being made to a U.S. Person or for the
account or benefit of a U.S. Person (other than an Initial Purchaser). Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on Transfer enumerated in the
Private Placement Legend printed on the Regulation S Global Note and/or the Restricted Definitive
Note and in the Indenture and the Securities Act.

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

     (a) o such Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act;

or

     (b) o such Transfer is being effected to the Company or a subsidiary thereof;

or

     (c) o such Transfer is being effected pursuant to an effective registration
statement under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act;

or

     (d) o such Transfer is being effected to an Institutional Accredited Investor and
pursuant to an exemption from the registration requirements of the Securities Act other than
Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further certifies that
it has not engaged in any general solicitation within the meaning of Regulation D under the
Securities Act and the Transfer complies with the transfer restrictions applicable to
beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the
requirements of the exemption claimed, which certification is supported by (1) a certificate
executed by the Transferee in the form of Exhibit C to the Indenture and (2) if such
Transfer is in respect of a principal amount of Notes at the time of transfer of less than
$250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of
which the Transferor has attached to this certification), to the

B-2

 

effect that such Transfer is in compliance with the Securities Act. Upon consummation
of the proposed transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the IAI Global Note and/or the
Restricted Definitive Notes and in the Indenture and the Securities Act.

     4. o Check if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note or of an Unrestricted Definitive Note.

     (a) o Check if Transfer is pursuant to Rule 144. (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any applicable blue
sky securities laws of any state of the United States and (ii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive
Notes and in the Indenture.

     (b) o Check if Transfer is Pursuant to Regulation S. (i) The Transfer is
being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act. Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

     (c) o Check if Transfer is Pursuant to Other Exemption. (i) The Transfer
is being effected pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in
compliance with the transfer restrictions contained in the Indenture and any applicable blue
sky securities laws of any State of the United States and (ii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will not be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes or Restricted Definitive
Notes and in the Indenture.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

B-3

 

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Insert Name of Transferor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Dated:                                         

B-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

	1.	 	The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

	 	(a)	 	o a beneficial interest in the:

	 	(i)	 	o 144A Global Note (CUSIP                     ), or
	 
	 	(ii)	 	o Regulation S Global Note (CUSIP                     ), or
	 
	 	(iii)	 	o IAI Global Note (CUSIP                     ); or

	 	(b)	 	o a Restricted Definitive Note.

	2.	 	After the Transfer the Transferee will hold:

[CHECK ONE]

	 	(a)	 	o a beneficial interest in the:

	 	(i)	 	o 144A Global Note (CUSIP                     ), or
	 
	 	(ii)	 	o Regulation S Global Note (CUSIP                     ), or
	 
	 	(iii)	 	o IAI Global Note (CUSIP                     ); or
	 
	 	(iv)	 	o Unrestricted Global Note (CUSIP                     ); or

	 	(b)	 	o a Restricted Definitive Note; or
	 
	 	(c)	 	o an Unrestricted Definitive Note,
	 
	 	in accordance with the terms of the Indenture.	 

B-5

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Hanesbrands Inc.

1000 East Hanes Mill Road

Winston-Salem, North Carolina 27105

Attention: Richard D. Moss

Branch Banking and Trust Company

223 West Nash Street

Wilson, North Carolina 27893

Attention: Corporate Trust Administration

Fax No: [                    ]

     Re: Floating Rate Senior Notes due 2014

(CUSIP                     )

     Reference is hereby made to the Indenture, dated as of December 14, 2006 (the
“Indenture”), among Hanesbrands Inc., as issuer (the “Company”), the Subsidiary
Guarantors party thereto and Branch Banking and Trust Company, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

                                        , (the “Owner”) owns and proposes to exchange the Note[s] or
interest in such Note[s] specified herein, in the principal amount of $                    in such Note[s] or
interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies
that:

     1. Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to
beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the-Owner’s
beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global
Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in
accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the beneficial interest
in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

     (b) o Check if Exchange is from beneficial interest in a Restricted Global Note to
Unrestricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest
in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer,

C-1

 

(ii) such Exchange has been effected in compliance with the transfer restrictions applicable
to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of any state of the
United States.

     (c) o Check if Exchange is from Restricted Definitive Note to beneficial interest in an
Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note
for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not required in order
to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired
in compliance with any applicable blue sky securities laws of any state of the United States.

     (d) o Check If Exchange is from Restricted Definitive Note to Unrestricted Definitive
Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

     2. Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

     (a) o Check If Exchange is from beneficial interest in a Restricted Global Note to
Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner
hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account
without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

     (b) o Check if Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note
for a beneficial interest in the [CHECK ONE] o 144A Global Note, o Regulation S Global
Note, o IAI Global Note with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to the

C-2

 

Restricted Global Notes and pursuant to and in accordance with the Securities Act, and in
compliance with any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial
interest issued will be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Insert Name of Transferor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Dated:                                         

C-3

 

EXHIBIT D

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Hanesbrands Inc.

1000 East Hanes Mill Road

Winston-Salem, North Carolina 27105

Attention: Richard D. Moss

Branch Banking and Trust Company

223 West Nash Street

Wilson, North Carolina 27893

Attention: Corporate Trust Administration

Fax No: [                    ]

     Re: Floating Rate Senior Notes due 2014

     Reference is hereby made to the Indenture, dated as of December 14, 2006 (the
“Indenture”), among Hanesbrands Inc., as issuer (the “Company”), the Subsidiary
Guarantors party thereto and Branch Banking and Trust Company, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

     In connection with our proposed purchase of $                     aggregate principal amount of:

     (a) o a beneficial interest in a Global Note, or

     (b) o a Definitive Note,

     we confirm that:

     1. We understand that any subsequent transfer of the Notes or any interest therein is subject
to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended
(the “Securities Act”).

     2. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for
which we are acting as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Company or any subsidiary thereof, (B) in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C)
to an institutional “accredited investor” (as defined below) that, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a
signed letter substantially in the form of this letter and, if such transfer is in respect of a
principal amount of Notes, at the time of transfer of less than $250,000, an Opinion of Counsel in
form reasonably acceptable to the Company to the effect that such transfer is in

D-1

 

compliance with the Securities Act, (D) outside the United States in accordance with Rule 904
of Regulation S under the Securities Act, (E) pursuant to the provisions of Rule 144(k) under the
Securities Act or (F) pursuant to an effective registration statement under the Securities Act, and
we further agree to provide to any Person purchasing the Definitive Note or beneficial interest in
a Global Note from us in a transaction meeting the requirements of clauses (A) through (E) of this
paragraph a notice advising such purchaser that resales thereof are restricted as stated herein.

     3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Company such certifications, legal opinions and other
information as you and the Company may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. We further understand that the Notes purchased by us will
bear a legend to the foregoing effect.

     4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

     5. We are acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

     You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	[Insert Name of Accredited Investor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Dated:                                         

D-2

 

EXHIBIT E

FORM OF NOTATION OF GUARANTEE

     For value received, each Subsidiary Guarantor (which term includes any successor Person under
the Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in
the Indenture and subject to the provisions in the Indenture dated as of December 14, 2006 (the
“Indenture”) among Hanesbrands Inc., (the “Company”), the Subsidiary Guarantors
party thereto and Branch Banking and Trust Company, as trustee (the “Trustee”), (a) the due
and punctual payment of the principal of, premium, if any, and interest on, the Notes, whether at
maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on
overdue principal of and interest on the Notes, if any, if lawful, and the due and punctual
performance of all other obligations of the Company to the Holders or the Trustee all in accordance
with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of
any Notes or any of such other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. The obligations of the Subsidiary Guarantors to the Holders of Notes
and to the Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in
Article 11 of the Indenture and reference is hereby made to the Indenture for the precise terms of
the Note Guarantee. Each Holder of a Note, by accepting the same, (a) agrees to and shall be bound
by such provisions and (b) appoints the Trustee attorney-in-fact of such Holder for such purpose.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

[Signature Page Follows]

E-1

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	[NAME OF SUBSIDIARY GUARANTOR(S)]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 

E-2

 

EXHIBIT F

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

     Supplemental Indenture (this “Supplemental Indenture”), dated as of
                    , 200_, among                      (the “Guaranteeing Subsidiary”), a subsidiary of
Hanesbrands Inc. (or its permitted successor), a Maryland corporation (the “Company”), the
Company, the other Subsidiary Guarantors (as defined in the Indenture referred to herein) and
Branch Banking and Trust Company, as trustee under the Indenture referred to below (the
“Trustee”).

WITNESSETH

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of December 14, 2006 providing for the issuance of Floating Rate
Senior Notes due 2014 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Note
Guarantee”); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to
execute and deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have
the meanings assigned to them in the Indenture.

     2. Agreement To Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee
and in the Indenture including but not limited to Article 11 thereof.

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

     5. GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HERETO AND THERETO, INCLUDING THE INTERPRETATION, CONSTRUCTION, VALIDITY AND ENFORCEABILITY
THEREOF, SHALL BE GOVERNED BY AND SHALL BE CONSTRUED, INTERPRETED

F-1

 

AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW).

     6. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     7. Effect Of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     8. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary
and the Company.

F-2

 

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

     Dated:                     . 20___

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	[GUARANTEEING SUBSIDIARY]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HANESBRANDS INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[EXISTING SUBSIDIARY GUARANTORS]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BRANCH BANKING AND TRUST COMPANY	 	 
	 	 	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Authorized Signatory	 	 

F-3EX-4.2

 

EXECUTION VERSION

REGISTRATION RIGHTS AGREEMENT

Dated: December 14, 2006

among

HANESBRANDS INC.

and

THE GUARANTORS NAMED HEREIN

and

MORGAN STANLEY & CO. INCORPORATED

MERRILL LYNCH, PIERCE, FENNER & SMITH

INCORPORATED

ABN AMRO INCORPORATED

BARCLAYS CAPITAL INC.

CITIGROUP GLOBAL MARKETS INC.

HSBC SECURITIES (USA) INC.

 

 

REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into December
14, 2006, among Hanesbrands Inc., a Maryland corporation (the “Company”), the companies
named on the signature pages hereto (collectively, the “Guarantors”) and Morgan Stanley &
Co. Incorporated, Merrill Lynch, Pierce, Fenner & Smith Incorporated, ABN AMRO Incorporated,
Barclays Capital Inc., Citigroup Global Markets, Inc. and HSBC Securities (USA) Inc. (the
“Placement Agents”).

          This Agreement is made pursuant to the Placement Agreement dated, December 11, 2006, among the
Company, the Guarantors and the Placement Agents (the “Placement Agreement”), which
provides for the sale by the Company to the Placement Agents of an aggregate of $500.0 million
principal amount of the Company’s Floating Rate Senior Notes due 2014 (the “Notes”), which
will be jointly and severally guaranteed on an unsecured senior basis by the Guarantors
(the “Guarantees” and, together with the Notes, the “Securities”). In order
to induce the Placement Agents to enter into the Placement Agreement, the Company and the
Guarantors have agreed to provide to the Placement Agents and their direct and indirect transferees
the registration rights set forth in this Agreement. The execution of this Agreement is a
condition to the closing under the Placement Agreement.

          In consideration of the foregoing, the parties hereto agree as follows:

          1. Definitions.

          As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

“1933 Act” shall mean the Securities Act of 1933, as amended from time to time.

“1934 Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

“Additional Interest” shall have the meaning set forth in Section 2(d) hereof.

“Board of Directors” means, with respect to any Person, the Board of Directors of
such Person, any duly authorized committee of such Board of Directors or any Person to which
the Board of Directors has properly delegated authority with respect to any particular
matter. Unless otherwise indicated, the “Board of Directors” refers to the Board of
Directors of the Company.

“Closing Date” shall mean the Closing Date as defined in the Placement Agreement.

“Company” shall have the meaning set forth in the preamble and shall also include
the

1

 

Company’s successors.

“Exchange Offer” shall mean the exchange offer by the Company of Exchange Securities
for Registrable Securities pursuant to Section 2(a) hereof.

“Exchange Offer Registration” shall mean a registration under the 1933 Act effected
pursuant to Section 2(a) hereof.

“Exchange Offer Registration Statement” shall mean an exchange offer registration
statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments
and supplements to such registration statement, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein.

“Exchange Securities” shall mean notes issued by the Company and guarantees of the
Guarantors under the Indenture containing terms identical to the Securities, as applicable
(except that (i) interest thereon shall accrue from the last date on which interest was paid
on the Securities or, if no such interest has been paid, from December 14, 2006, (ii) the
Exchange Securities will not contain restrictions on transfer and (iii) the Exchange
Securities are not entitled to Additional Interest), and to be offered to Holders of such
Securities pursuant to the Exchange Offer.

“Guarantors” shall have the meaning set forth in the preamble and shall also include
any Guarantor’s successor.

“Holder” shall mean the Placement Agents, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who
become registered owners of Registrable Securities under the Indenture; provided
that for purposes of Sections 4 and 5 of this Agreement, the term “Holder” shall include
Participating Broker-Dealers (as defined in Section 4(a)).

“Indenture” shall mean the indenture relating to the Securities dated as of December
14, 2006 among the Company, the Guarantors and Branch Banking and Trust Company, as trustee,
and as the same may be amended from time to time in accordance with the terms thereof.

“Majority Holders” shall mean the Holders of a majority of the aggregate principal
amount of outstanding Registrable Securities; provided that whenever the consent or
approval of Holders of a specified percentage of Registrable Securities is required
hereunder, Registrable Securities held by the Company or any of its affiliates (as such term
is defined in Rule 405 under the 1933 Act) (other than the Placement Agents or subsequent
Holders of Registrable Securities if such subsequent holders are deemed to be such
affiliates solely by reason of their holding of such Registrable Securities) shall not be
counted in

2

 

determining whether such consent or approval was given by the Holders of such required
percentage or amount.

“Person” shall mean an individual, partnership, limited liability company,
corporation, trust or unincorporated organization, or a government or agency or political
subdivision thereof.

“Placement Agents” shall have the meaning set forth in the preamble.

“Prospectus” shall mean the prospectus included in a Registration Statement,
including any preliminary prospectus, and any such prospectus as amended or supplemented by
any prospectus supplement, including a prospectus supplement with respect to the terms of
the offering of any portion of the Registrable Securities covered by a Shelf Registration
Statement, and by all other amendments and supplements to such prospectus, and in each case
including all material incorporated by reference therein.

“Registration Default” shall have the meaning set forth in Section 2(d) hereof.

“Registrable Securities” shall mean the Securities; provided,
however, that the Securities shall cease to be Registrable Securities (i) when a
Registration Statement with respect to such Securities shall have been declared effective
under the 1933 Act and such Securities shall have been disposed of or exchanged pursuant to
such Registration Statement, (ii) when such Securities have been sold to the public pursuant
to Rule 144 (or any similar provision then in force, but not Rule 144A) under the 1933 Act,
(iii) when such Securities are exchanged for Exchange Securities or (iv) when such
Securities shall otherwise have ceased to be outstanding.

“Registration Expenses” shall mean any and all expenses incident to performance of
or compliance by the Company and the Guarantors with this Agreement, including without
limitation: (i) all SEC, stock exchange or NASD registration and filing fees, (ii) all fees
and expenses incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of one law firm acting as counsel for any
underwriters or Holders in connection with blue sky qualification of any of the Exchange
Securities or Registrable Securities), (iii) all expenses of any Persons in preparing or
assisting in printing and distributing any Registration Statement, any Prospectus, any
amendments or supplements thereto, any underwriting agreements, securities sales agreements
and other documents relating to the performance of and compliance with this Agreement, (iv)
all rating agency fees, (v) all fees and disbursements relating to the qualification of the
Indenture under applicable securities laws, (vi) the fees and disbursements of the Trustee
and its counsel, (vii) the fees and disbursements of counsel for the Company and the
Guarantors, and in the case of a Shelf Registration Statement, the reasonable fees and
disbursements of one counsel for the Holders (which counsel shall be

3

 

selected by the Majority Holders and which counsel may also be counsel for the Placement
Agents) and (viii) the fees and disbursements of the independent public accountants of the
Company and the Guarantors, including the expenses of any special audits or “cold comfort”
letters required by this Agreement or incident to the performance of this Agreement, but
excluding fees and expenses of counsel to the underwriters (other than fees and expenses set
forth in clause (ii) above) or the Holders and underwriting discounts and commissions and
transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a
Holder.

“Registration Statement” shall mean any registration statement of the Company and
the Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant
to the provisions of this Agreement and all amendments and supplements to any such
Registration Statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material incorporated by
reference therein.

“SEC” shall mean the Securities and Exchange Commission.

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b)
hereof.

“Shelf Registration Statement” shall mean a “shelf” registration statement of the
Company and the Guarantors pursuant to the provisions of Section 2(b) of this Agreement
which covers all or a portion of the Registrable Securities on an appropriate form under
Rule 415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference therein.

“Trustee” shall mean the trustee with respect to the Securities under the Indenture.

“Underwriter” shall have the meaning set forth in Section 3 hereof.

“Underwritten Registration” or “Underwritten Offering” shall mean a
registration in which Registrable Securities are sold to an Underwriter for reoffering to
the public.

          2. Registration Under the 1933 Act.

          (a) To the extent not prohibited by any applicable law or applicable interpretation of the
Staff of the SEC (the “Staff”), the Company and the Guarantors shall use commercially
reasonable efforts to cause to be filed an Exchange Offer Registration Statement after the date of
the original issuance of the Securities (the “Issue Date”), covering the offer by the
Company and the Guarantors to the Holders to exchange all of the Registrable Securities for
Exchange Securities

4

 

and to have such Exchange Offer Registration Statement remain effective until the closing of the
Exchange Offer. The Company and the Guarantors shall use commercially reasonable efforts to cause
such Exchange Offer Registration Statement to be declared effective under the 1933 Act after the
Issue Date. The Company and the Guarantors shall commence the Exchange Offer promptly after the
Exchange Offer Registration Statement has been declared effective by the SEC and shall use
commercially reasonable efforts to complete the Exchange Offer after such effective date. The
Company and the Guarantors shall commence the Exchange Offer by mailing the related exchange offer
Prospectus and accompanying documents to each Holder, through the common depositary for the
Securities or otherwise, stating in such Prospectus or accompanying documents in addition to such
other disclosures as are required by applicable law:

(i) that the Exchange Offer is being made pursuant to this Agreement and that all
Registrable Securities validly tendered and not withdrawn will be accepted for exchange;

(ii) the dates of acceptance for exchange (which shall be a period of at least 20 business
days from the date such notice is mailed) (the “Exchange Dates”);

(iii) that any Registrable Security not tendered will remain outstanding and continue to
accrue interest (but not Additional Interest), but will not retain any rights under this
Registration Rights Agreement;

(iv) that Holders electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to surrender such Registrable Security, together with the enclosed
letters of transmittal, to the institution and at the address specified in the notice prior
to the close of business on the last Exchange Date; and

(v) that Holders will be entitled to withdraw their election, not later than the close of
business on the last Exchange Date, by sending to the institution and at the address
specified in the notice a telegram, telex, facsimile transmission or letter setting forth
the name of such Holder, the principal amount of Registrable Securities delivered for
exchange and a statement that such Holder is withdrawing his election to have such
Securities exchanged.

          As soon as reasonably practicable after the last Exchange Date, the Company shall:

(i) accept for exchange Registrable Securities or portions thereof tendered and not validly
withdrawn pursuant to the Exchange Offer; and

(ii) deliver, or cause to be delivered, to the Trustee for cancellation all Registrable
Securities or portions thereof so accepted for exchange by the Company and issue, and cause
the Trustee to promptly authenticate an Exchange Security equal in principal amount to the
principal amount of the Registrable Securities surrendered by such Holder.

5

 

The Company and the Guarantors shall use commercially reasonable efforts to complete the Exchange
Offer as provided above and shall comply with the applicable requirements of the 1933 Act, the 1934
Act and other applicable laws and regulations in connection with the Exchange Offer. The Exchange
Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate
applicable law or any applicable interpretation of the Staff of the SEC. Upon the Placement
Agent’s request, the Company and the Guarantors shall inform the Placement Agents of the names and
addresses of the Holders to whom the Exchange Offer is made, and the Placement Agents shall have
the right, subject to applicable law, to contact such Holders and otherwise facilitate the tender
of Registrable Securities in the Exchange Offer.

If the Company and the Guarantors effect the Exchange Offer, the Company and the Guarantors (i)
will be entitled to close the Exchange Offer 20 business days after such commencement (provided
that the Company and the Guarantors have accepted all the Securities theretofore validly tendered
in accordance with the terms of the Exchange Offer) and (ii) will be required to consummate the
Exchange Offer not later than 40 business days after the date on which the Exchange Offer
Registration Statement is declared effective.

Each Holder participating in the Exchange Offer shall be required to represent to the Company and
the Guarantors that at the time of the consummation of the Exchange Offer (i) any Exchange
Securities received by such Holder will be acquired in the ordinary course of its business, (ii)
such Holder will have no arrangements or understanding with any person to participate in the
distribution (within the meaning of the 1933 Act) of the Exchange Securities, (iii) such Holder is
not an “affiliate,” as defined in Rule 405 of the 1933 Act, of the Company or the Guarantors or if
it is an affiliate, such Holder will comply with the registration and prospectus delivery
requirements of the 1933 Act to the extent applicable, (iv) if such Holder is not a broker-dealer,
that it is not engaged in, and does not intend to engage in, the distribution of the Exchange
Securities and (v) if such Holder is a broker-dealer, that it will receive Exchange Securities for
its own account in exchange for Securities that were acquired as a result of market-making
activities or other trading activities and that it will be required to acknowledge that it will
deliver a prospectus in connection with any resale of such Exchange Securities.

          (b) In the event that (i) the Company and the Guarantors determine that the Exchange Offer
Registration provided for in Section 2(a) above is not available or may not be consummated as soon
as practicable after the last Exchange Date because it would violate applicable law or the
applicable interpretations of the Staff of the SEC, (ii) the Exchange Offer is not consummated for
any other reason, (iii) any Placement Agent shall notify the Company and the Guarantors following
the consummation of the Exchange Offer that the Securities held by it are not eligible to be
exchanged for Exchange Securities in the Exchange Offer or (iv) any Holder (other than an
Participating Broker-Dealer) is prohibited by law or SEC policy from participating in the Exchange
Offer or, in the case of any Holder (other than an Participating Broker-Dealer) that participates
in the Exchange Offer, such Holder may not resell the Exchange Securities acquired

6

 

by it in the Exchange Offer to the public without delivering a prospectus, the Company and the
Guarantors shall: (1) use commercially reasonable efforts to cause to be filed as soon as
practicable after such determination, date or notice is given to the Company and the Guarantors, as
the case may be, a Shelf Registration Statement providing for the sale by the Holders of all of the
Registrable Securities, (2) in the case of Section 2(b)(i), use commercially reasonable efforts to
cause the Shelf Registration Statement to be declared effective by the SEC under the 1933 Act, (3)
in the case of Sections 2(b)(ii), (iii) or (iv), use commercially reasonable efforts to cause the
Shelf Registration Statement to be declared effective by the SEC under the 1933 Act after the date
on with the Shelf Registration Statement is required to be filed, and (4) keep the Shelf
Registration Statement effective until the earliest of (A) the time when the Registrable Securities
covered by the Shelf Registration Statement can be sold pursuant to Rule 144 under the 1933 Act
without any limitations under clauses (c), (e), (f) and (h) of Rule 144, (B) two years from the
Issue Date and (C) the date on which all Registrable Securities registered thereunder are disposed
of in accordance therewith. Notwithstanding the foregoing, to the extent that a Shelf Registration
Statement is required to be filed pursuant to Section 2(b)(ii) and the Exchange Offer is
consummated on a date that is later than 400 days after the Closing Date, upon the completion of
the Exchange Offer, the Company and the Guarantors will no longer be required to make effective or
continue to effectiveness of the Shelf Registration Statement, except as may be required pursuant
to Section 2(b)(i), (iii) or (iv).

The Company and the Guarantors further agree to supplement or amend the Shelf Registration
Statement if required by the rules, regulations or instructions applicable to the registration form
used by the Company and the Guarantors for such Shelf Registration Statement or by the 1933 Act or
by any other rules and regulations thereunder for shelf registration or if reasonably and timely
requested by a Holder with respect to information relating to such Holder, and to use commercially
reasonable efforts to cause any such amendment to become effective and such Shelf Registration
Statement to become usable as soon as thereafter practicable, provided that the Company and the
Guarantors shall not be required to amend the Shelf Registration Statement to add additional
Holders more than once per quarter. The Company and the Guarantors agree to furnish to the Holders
of Registrable Securities copies of any such supplement or amendment promptly after its being used
or filed with the SEC, provided, that the Company and the Guarantors shall not be required
to provide such Holder with copies of Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.

          (c) The Company and the Guarantors shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a) and Section 2(b). Each Holder shall pay all underwriting
discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale
or disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration
Statement.

          (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a Shelf
Registration Statement pursuant to Section 2(b) hereof will not be deemed to have

7

 

become effective unless it has been declared effective by the SEC; provided,
however, that, if, after it has been declared effective, the offering of Registrable
Securities pursuant to a Shelf Registration Statement is interfered with by any stop order,
injunction or other order or requirement of the SEC or any other governmental agency or court, such
Registration Statement will be deemed not to have become effective during the period of such
interference until the offering of Registrable Securities pursuant to such Registration Statement
may legally resume.

          The Company and the Guarantors will pay additional cash interest (“Additional
Interest”) on the Securities,

   (1) if obligated to file a Shelf Registration Statement, a Shelf Registration Statement
is not declared effective by the SEC on or prior to the date that is nine months after the
Issue Date, or

   (2) if the Exchange Offer is not consummated on or prior to the date that is nine months
after the Issue Date (each such event referred to in the preceding clauses (1) and (2), a
“Registration Default”);

from, and including, the date on which any such Registration Default shall occur to, but excluding,
the date on which all Registration Defaults have been cured.

     The rate of the Additional Interest will be 0.25% per annum for the first 90-day period
immediately following the occurrence of a Registration Default, and such rate will increase by an
additional 0.25% per annum with respect to each subsequent 90-day period until all Registration
Defaults have been cured, up to a maximum Additional Interest rate of 1.00% per annum. The Company
and the Guarantors will pay such Additional Interest on regular interest payment dates. Such
Additional Interest will be in addition to any other interest payable from time to time with
respect to the Securities. Once the Exchange Offer is consummated or a Shelf Registration
Statement is declared effective, the Company and the Guarantors shall no longer be required to pay
such Additional Interest.

          (e) Without limiting the remedies available to the Placement Agents and the Holders, the
Company acknowledges that any failure by the Company to comply with its obligations under Section
2(a) and Section 2(b) hereof may result in material irreparable injury to the Placement Agents or
the Holders for which there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure, the Placement
Agents or any Holder may obtain such relief as may be required to specifically enforce the
Company’s obligations under Section 2(a) and Section 2(b) hereof.

8

 

          3. Registration Procedures.

          In connection with the obligations of the Company and the Guarantors with respect to the
Registration Statements pursuant to Section 2(a) and Section 2(b) hereof, the Company and the
Guarantors shall:

(a) prepare and file with the SEC a Registration Statement on the appropriate form under the
1933 Act, which form (x) shall be selected by the Company and the Guarantors and (y) shall,
in the case of a Shelf Registration, be available for the sale of the Registrable Securities
by the selling Holders thereof and (z) shall comply as to form in all material respects with
the requirements of the applicable form and include all financial statements required by the
SEC to be filed therewith, and use commercially reasonable efforts to cause such
Registration Statement to become effective and remain effective in accordance with Section 2
hereof;

(b) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement effective for
the applicable period and cause each Prospectus to be supplemented by any required
prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the
1933 Act; to keep each Prospectus current during the period described under Section 4(3) and
Rule 174 under the 1933 Act that is applicable to transactions by brokers or dealers with
respect to the Registrable Securities or Exchange Securities;

(c) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
to counsel for the Placement Agents, to counsel for the Holders and to each Underwriter of
an Underwritten Offering of Registrable Securities, if any, without charge, as many copies
of each Prospectus as reasonably requested, including each preliminary Prospectus, and any
amendment or supplement thereto and such other documents as such Holder or Underwriter may
reasonably request other than exhibits to documents incorporated by reference or exhibits
thereto or documents available on the SEC’s Electronic Data Gathering, Analysis, and
Retrieval system (“EDGAR”), in order to facilitate the public sale or other
disposition of the Registrable Securities; and the Company consents to the use of such
Prospectus and any amendment or supplement thereto in accordance with applicable law by each
of the selling Holders of Registrable Securities and any such Underwriters in connection
with the offering and sale of the Registrable Securities covered by and in the manner
described in such Prospectus or any amendment or supplement thereto in accordance with
applicable law;

(d) use commercially reasonable efforts to register or qualify the Registrable Securities
under all applicable state securities or “blue sky” laws of such jurisdictions as any Holder
of Registrable Securities covered by a Registration Statement shall reasonably request in
writing a reasonable time prior to the time the applicable Registration Statement is
declared

9

 

effective by the SEC, to cooperate with such Holders in connection with any filings required
to be made with the National Association of Securities Dealers, Inc. and do any and all
other acts and things which may be reasonably necessary or advisable to enable such Holder
to consummate the disposition in each such jurisdiction of such Registrable Securities owned
by such Holder; provided, however, that each of the Company and the
Guarantors shall not be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(d), (ii) file any general consent to service of process or (iii) subject
itself to taxation in any such jurisdiction if it is not so subject;

(e) in the case of a Shelf Registration, notify each Holder of Registrable Securities who
has provided contact information to the Company, counsel for the Holders and counsel for the
Placement Agents promptly and, if requested by any such Holder or counsel, confirm such
advice in writing (i) when a Registration Statement has become effective and when any
post-effective amendment thereto has been filed and becomes effective, (ii) of any request
by the SEC or any state securities authority for amendments and supplements to a
Registration Statement and Prospectus or for additional information after the Registration
Statement has become effective, (iii) of the issuance by the SEC or any state securities
authority of any stop order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose, (iv) if, between the effective date of a
Registration Statement and the closing of any sale of Registrable Securities covered
thereby, the representations and warranties of the Company contained in any underwriting
agreement, securities sales agreement or other similar agreement, if any, relating to the
offering cease to be true and correct in all material respects or if the Company receives
any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation of any proceeding for such
purpose, (v) of the happening of any event during the period a Shelf Registration Statement
is effective which makes any statement made in such Registration Statement or the related
Prospectus untrue in any material respect or which requires the making of any changes in
such Registration Statement or Prospectus in order to make the statements therein not
misleading and (vi) of any determination by the Company and the Guarantors that a
post-effective amendment to a Registration Statement would be appropriate;

(f) use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement and provide prompt notice to each Holder of the
withdrawal of any such order;

(g) in the case of a Shelf Registration, if requested, furnish to each Holder of Registrable
Securities, without charge, at least one conformed copy of each Registration Statement and
any post-effective amendment thereto (without documents incorporated therein by reference or
exhibits thereto, unless requested);

10

 

(h) in the case of a Shelf Registration, cooperate with the selling Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and enable such
Registrable Securities to be in such denominations (consistent with the provisions of the
Indenture) and registered in such names as the selling Holders may reasonably request at
least one business day prior to the closing of any sale of Registrable Securities;

(i) in the case of a Shelf Registration, upon the occurrence of any event contemplated by
Section 3(e)(v) hereof, use commercially reasonable efforts to prepare and file with the SEC
a supplement or post-effective amendment to a Registration Statement or the related
Prospectus or any document incorporated therein by reference or file any other required
document so that, as thereafter delivered to the purchasers of the Registrable Securities,
such Prospectus will not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The Company and the Guarantors agree to notify the
Holders to suspend use of the Prospectus as promptly as practicable after the occurrence of
such an event, and the Holders hereby agree to suspend use of the Prospectus until the
Company and the Guarantors have amended or supplemented the Prospectus to correct such
misstatement or omission;

(j) a reasonable time prior to the filing of any Registration Statement, any Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus or any
document which is to be incorporated by reference into a Registration Statement or a
Prospectus (other than filings to be made pursuant to the Securities Exchange Act of 1934),
after initial filing of a Registration Statement, provide copies of such document to the
Placement Agents and their counsel (and, in the case of a Shelf Registration Statement,
counsel to the Holders) and make such of the representatives of the Company and the
Guarantors as shall be reasonably requested by the Placement Agents or their counsel (and,
in the case of a Shelf Registration Statement, the Holders or their counsel) available for
discussion of such document, and shall not at any time file or make any amendment to the
Registration Statement, any Prospectus or any amendment of or supplement to a Registration
Statement or a Prospectus or any document which is to be incorporated by reference into a
Registration Statement or a Prospectus, of which the Placement Agents and their counsel
(and, in the case of a Shelf Registration Statement, counsel to the Holders) shall not have
previously been advised and furnished a copy or to which the Placement Agents or their
counsel (and, in the case of a Shelf Registration Statement, the Holders or their counsel)
shall reasonably object, except for any amendment or supplement or document (a copy of which
has previously been furnished to the Placement Agents and their counsel (and, in the case of
a Shelf Registration Statement, counsel to the Holders)) which counsel to the Company shall
advise the Company in writing is required in order to comply with applicable law;

11

 

(k) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case
may be, not later than the effective date of a Registration Statement;

(l) cause the Indenture to be qualified under the Trust Indenture Act of 1939, as amended
(the “TIA”), in connection with the registration of the Exchange Securities or
Registrable Securities, as the case may be, cooperate with the Trustee and the Holders to
effect such changes to the Indenture as may be required for the Indenture to be so qualified
in accordance with the terms of the TIA and execute, and use commercially reasonable efforts
to cause the Trustee to execute, all documents as may be required to effect such changes and
all other forms and documents required to be filed with the SEC to enable the Indenture to
be so qualified in a timely manner;

(m) in the case of a Shelf Registration, make available for inspection by a representative
of the Holders of a majority in principal amount of the Registrable Securities being sold,
any Underwriter participating in any disposition pursuant to such Shelf Registration
Statement, and attorneys and accountants designated by such Holders, at reasonable times and
in a reasonable manner, all financial and other records, pertinent documents and properties
of the Company and the Guarantors, and cause the respective officers, directors and
employees of the Company and the Guarantors to supply all information reasonably requested
by any such representative, Underwriter, attorney or accountant in connection with a Shelf
Registration Statement; provided that (1) the foregoing inspection and information gathering
shall be coordinated on behalf of the selling Holders, underwriters and representatives
thereof by one counsel for the Holders and one counsel for the underwriters, who shall be
such counsel as may be chosen by the Holders of a majority in principal amount of the
Securities or by the underwriters, as the case may be, and (2) if any such information is
identified by the Company or any Guarantor as being confidential or proprietary, each person
receiving such information shall take such actions as are reasonably necessary to protect
the confidentiality of such information, including, with respect to Holders, entering into
customary confidentiality agreements;

(n) use commercially reasonable efforts to cause the Exchange Securities or Registrable
Securities, as the case may be, to be rated by two nationally recognized statistical rating
organizations (as such term is defined in Rule 436(g)(2) under the 1933 Act); and

(o) in the case of a Shelf Registration, enter into such customary agreements and take all
such other reasonable actions in connection therewith (including those reasonably requested
by the Holders of a majority in principal amount of the Registrable Securities being sold)
in order to expedite or facilitate the disposition of such Registrable Securities including,
but not limited to, if requested by the Holders of a majority in principal amount of the
Securities covered by a Shelf Registration Statement not more than one Underwritten Offering
and in such connection, (i) to the extent possible, make such

12

 

representations and warranties to the Holders and any Underwriters of such Registrable
Securities with respect to the business of the Company and its subsidiaries, the
Registration Statement, Prospectus and documents incorporated by reference or deemed
incorporated by reference, if any, in each case, in form, substance and scope as are
customarily made by issuers to underwriters in underwritten offerings, (ii) obtain opinions
of counsel to the Company and the Guarantors (which counsel and opinions, in form, scope and
substance, shall be reasonably satisfactory to the Holders and such Underwriters and their
respective counsel) addressed to each selling Holder and Underwriter of Registrable
Securities, covering the matters customarily covered in opinions requested in underwritten
offerings, (iii) obtain “cold comfort” letters from the independent certified public
accountants of the Company and the Guarantors (and, if necessary, any other certified public
accountant of any subsidiary of the Company or the Guarantors, or of any business acquired
by the Company or the Guarantors for which financial statements and financial data are or
are required to be included in the Registration Statement) addressed to each selling Holder
and Underwriter of Registrable Securities, such letters to be in customary form and covering
matters of the type customarily covered in “cold comfort” letters in connection with
underwritten offerings, and (iv) deliver such documents and certificates as may be
reasonably requested by the Holders of a majority in principal amount of the Registrable
Securities being sold or the Underwriters, and which are customarily delivered in
underwritten offerings, to evidence the continued validity of the representations and
warranties of the Company made pursuant to clause (i) above and to evidence compliance with
any customary conditions contained in an underwriting agreement.

          In the case of a Shelf Registration Statement, the Company and the Guarantors may require each
Holder of Registrable Securities to furnish to the Company and the Guarantors such information
regarding the Holder and the proposed distribution by such Holder of such Registrable Securities as
the Company and the Guarantors may from time to time reasonably request in writing. In addition,
each selling Holder agrees to promptly furnish additional information required under Item 507 of
Regulation S-K. So long as any Holder fails to furnish such information in a reasonably timely
manner after receiving the request, the Company and the Guarantors shall (i) have no obligation
under this Agreement to provide for the disposition of such Holder’s Registrable Securities in the
Shelf Registration Statement in respect to which such information was requested, (ii) not be
required to provide for the disposition of such Holder’s Registrable Securities in any
post-effective amendment to such Shelf Registration Statement or any future Shelf Registration
Statement that is not otherwise required to be filed and (iii) not be required to pay any
Additional Interest as provided in Section 2(d) hereof. Each Holder including Registrable
Securities in a Shelf Registration Statement shall agree to furnish promptly to the Company all
information regarding such Holder and the proposed distribution by the Holder of such Registrable
Securities required under Regulation S-K.

          In the case of a Shelf Registration Statement, each Holder agrees that, upon receipt of any
notice from the Company and the Guarantors of the happening of any event of the kind

13

 

described in Section 3(e)(v) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to a Shelf Registration Statement until such Holder’s receipt of
the copies of the supplemented or amended Prospectus contemplated by Section 3(i) hereof, and, if
so directed by the Company and the Guarantors, such Holder will deliver to the Company and the
Guarantors (at their expense) all copies in its possession, other than permanent file copies then
in such Holder’s possession, of the Prospectus covering such Registrable Securities current at the
time of receipt of such notice. If the Company and the Guarantors shall give any such notice to
suspend the disposition of Registrable Securities pursuant to a Registration Statement, the Company
and the Guarantors shall extend the period during which the Registration Statement shall be
maintained effective pursuant to this Agreement by the number of days during the period from and
including the date of the giving of such notice to and including the date when the Holders shall
have received copies of the supplemented or amended Prospectus necessary to resume such
dispositions. The Company and the Guarantors may give any such notice only twice during any 365
day period and any such suspensions may not exceed 45 days for each suspension and there may not be
more than two suspensions in effect during any 365 day period.

          Nothwithstanding the foregoing (and anything else to the contrary in this Agreement), the
Company and the Guarantors may allow a Shelf Registration Statement to cease to be effective if the
Board of Directors of the Company determines in good faith that it is in the Company’s best
interests not to disclose the existence of facts surrounding any proposed or pending material
corporate transaction involving the Company or a Guarantor, and the Company notifies the Holders of
Registrable Securities promptly after such Board of Directors makes such determination; provided,
however, that such period shall not be greater than 60 days (whether or not consecutive) in the
aggregate, and provided further that the period referred to in this paragraph during which the
Company and the Guarantors agree to use commercially reasonable efforts to keep such Shelf
Registration Statement effective shall be extended by the number of days during which such Shelf
Registration Statement was not effective pursuant to the foregoing provision.

          In the Underwritten Offering referred to in Section 3(p) above, the investment bank or
investment banks and manager or managers (the “Underwriters”) that will administer the
offering will be selected by the Majority Holders of the Registrable Securities included in such
offering, subject to the approval of the Company, which approval shall not be unreasonably withheld
or delayed.

4. Participation of Broker-Dealers in Exchange Offer.

          (a) The Staff of the SEC has taken the position that any broker-dealer that receives Exchange
Securities for its own account in the Exchange Offer in exchange for Securities that were acquired
by such broker-dealer as a result of market-making or other trading activities (a
“Participating Broker-Dealer”), may be deemed to be an “underwriter” within the meaning of
the 1933 Act and must deliver a prospectus meeting the requirements of the 1933 Act in connection
with any resale of such Exchange Securities.

14

 

          The Company understands that it is the Staff’s position that if the Prospectus contained in
the Exchange Offer Registration Statement includes a plan of distribution containing a statement to
the above effect and the means by which Participating Broker-Dealers may resell the Exchange
Securities, without naming the Participating Broker-Dealers or specifying the amount of Exchange
Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers to
satisfy their prospectus delivery obligation under the 1933 Act in connection with resales of
Exchange Securities for their own accounts, so long as the Prospectus otherwise meets the
requirements of the 1933 Act.

          (b) In light of the above, notwithstanding the other provisions of this Agreement, the Company
and the Guarantors agree that the provisions of this Agreement as they relate to a Shelf
Registration shall also apply to an Exchange Offer Registration to the extent, and with such
reasonable modifications thereto as may be, reasonably requested by the Placement Agents or by one
or more Participating Broker-Dealers, in each case as provided in clause (ii) below, in order to
expedite or facilitate the disposition of any Exchange Securities by Participating Broker-Dealers
consistent with the positions of the Staff recited in Section 4(a) above; provided that:

(i) the Company and the Guarantors shall not be required to amend or supplement the
Prospectus contained in the Exchange Offer Registration Statement, as would otherwise be
contemplated by Section 3(i), (A) after the Participating Broker-Dealers shall have disposed
of the Registrable Securities or (B) for a period exceeding 180 days after the last Exchange
Date (as such period may be extended pursuant to the penultimate paragraph of Section 3 of
this Agreement) and Participating Broker-Dealers shall not be authorized by the Company to
deliver and shall not deliver such Prospectus after such date or such period in connection
with the resales contemplated by this Section 4; and

(ii) the application of the Shelf Registration procedures set forth in Section 3 of this
Agreement to an Exchange Offer Registration, to the extent not required by the positions of
the Staff of the SEC or the 1933 Act and the rules and regulations thereunder, will be in
conformity with the reasonable request to the Company and the Guarantors by the Placement
Agents or with the reasonable request in writing to the Company by one or more
broker-dealers who certify to the Placement Agents and the Company and the Guarantors in
writing that they anticipate that they will be Participating Broker-Dealers; and
provided further that, in connection with such application of the Shelf
Registration procedures set forth in Section 3 to an Exchange Offer Registration, the
Company and the Guarantors shall be obligated (x) to deal only with one entity representing
the Participating Broker-Dealers, which shall be Morgan Stanley & Co. Incorporated unless it
elects not to act as such representative, (y) to pay the fees and expenses of only one
counsel representing the Participating Broker-Dealers, which shall be counsel to the
Placement Agents unless such counsel elects not to so act and (z) to cause to be delivered
only one, if

15

 

any, “cold comfort” letter with respect to the Prospectus in the form existing on the last
Exchange Date and with respect to each subsequent amendment or supplement, if any, effected
during the period specified in clause (i) above.

          (c) The Placement Agents shall have no liability to the Company, the Guarantors or any Holder
with respect to any request that it may make pursuant to Section 4(b) above.

          5. Indemnification and Contribution.

          (a) The Company and the Guarantors agree to indemnify and hold harmless the Placement Agents,
each Holder and each Person, if any, who controls any Placement Agent or any Holder within the
meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is under common
control with, or is controlled by, any Placement Agent or any Holder, from and against all losses,
claims, damages and liabilities (including, without limitation, any legal or other expenses
reasonably incurred by the Placement Agents, any Holder or any such controlling or affiliated
Person in connection with defending or investigating any such action or claim) caused by any untrue
statement or alleged untrue statement of a material fact contained in any Registration Statement
(or any amendment thereto) pursuant to which Exchange Securities or Registrable Securities were
registered under the 1933 Act, including all documents incorporated therein by reference, or caused
by any omission or alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, or caused by any untrue statement or
alleged untrue statement of a material fact contained in any Prospectus (as amended or supplemented
if the Company and the Guarantors shall have furnished any amendments or supplements thereto), or
caused by any omission or alleged omission to state therein a material fact necessary to make the
statements therein in light of the circumstances under which they were made not misleading, except
insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or
omission or alleged untrue statement or omission based upon information relating to the Placement
Agents or any Holder furnished to the Company and the Guarantors in writing through Morgan Stanley
& Co. Incorporated or any selling Holder expressly for use therein. In connection with any
Underwritten Offering permitted by Section 3, the Company and the Guarantors will also indemnify
the Underwriters, if any, selling brokers, dealers and similar securities industry professionals
participating in the distribution, their officers and directors and each Person who controls such
Persons (within the meaning of the 1933 Act and the 1934 Act) to the same extent as provided above
with respect to the indemnification of the Holders, if requested in connection with any
Registration Statement.

          (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company,
the Guarantors, the Placement Agents and the other selling Holders, and each of their respective
directors, officers who sign the Registration Statement and each Person, if any, who controls the
Company, the Guarantors, any Placement Agent and any other selling Holder within the meaning of
either Section 15 of the 1933 Act or Section 20 of the 1934 Act to the

16

 

same extent as the foregoing indemnity from the Company and the Guarantors to the Placement Agents
and the Holders, but only with reference to information relating to such Holder furnished to the
Company and the Guarantors in writing by such Holder directly or through Morgan Stanley & Co.
Incorporated expressly for use in any Registration Statement (or any amendment thereto) or any
Prospectus (or any amendment or supplement thereto).

          (c) In case any proceeding (including any governmental investigation) shall be instituted
involving any Person in respect of which indemnity may be sought pursuant to either paragraph (a)
or paragraph (b) above, such Person (the “indemnified party”) shall promptly notify the
Person against whom such indemnity may be sought (the “indemnifying party”) in writing and
the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably
satisfactory to the indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the reasonable fees and
disbursements of such counsel related to such proceeding. The Company and the Guarantors may take
the primary responsibility for supervising any such defense (with counsel reasonably satisfactory
to the indemnified party), provided, however, that the indemnified party shall be promptly informed
of all material developments with respect to such proceeding by the indemnifying party, the
indemnified party shall have the right to ask reasonable questions of such counsel and the
indemnifying party and, with respect to any matters that relate directly to such indemnified party
in such proceedings, shall be consulted by the indemnifying party. Notwithstanding the foregoing,
in any such proceeding, any indemnified party shall have the right to retain its own counsel, but
the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i)
the indemnifying party and the indemnified party shall have mutually agreed to the retention of
such counsel or (ii) the named parties to any such proceeding (including any impleaded parties)
include both the indemnifying party and the indemnified party and representation of both parties by
the same counsel would be inappropriate due to actual or potential differing interests between
them. It is understood that the indemnifying party shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for (a) the fees and expenses of more than
one separate firm (in addition to any local counsel) for the Placement Agents and all Persons, if
any, who control any Placement Agent within the meaning of either Section 15 of the 1933 Act or
Section 20 of the 1934 Act, (b) the fees and expenses of more than one separate firm (in addition
to any local counsel) for the Company, the Guarantors, their respective directors, their respective
officers who sign the Registration Statement and each Person, if any, who controls the Company or
the Guarantors within the meaning of either such Section and (c) the fees and expenses of more than
one separate firm (in addition to any local counsel) for all Holders and all Persons, if any, who
control any Holders within the meaning of either such Section, and that all such fees and expenses
shall be reimbursed as they are incurred. In such case involving the Placement Agents and Persons
who control the Placement Agents, such firm shall be designated in writing by Morgan Stanley & Co.
Incorporated. In such case involving the Holders and such Persons who control Holders, such firm
shall be designated in writing by the Majority Holders. In all other cases, such firm shall be
designated by the Company and the Guarantors. The indemnifying party shall not be liable for any
settlement of any proceeding effected without its

17

 

written consent but, if settled with such consent or if there be a final judgment for the
plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any
loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and
third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any
settlement of any proceeding effected without its written consent if (i) such settlement is entered
into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii)
such indemnifying party shall not have reimbursed the indemnified party for such fees and expenses
of counsel in accordance with such request prior to the date of such settlement. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any settlement of
any pending or threatened proceeding in respect of which such indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

          (d) If the indemnification provided for in paragraph (a) or paragraph (b) of this Section 5 is
unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or
liabilities, then each indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, damages or liabilities in such proportion as is
appropriate to reflect the relative fault of the indemnifying party or parties on the one hand and
of the indemnified party or parties on the other hand in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative fault of the Company, the Guarantors and the
Holders shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company, the Guarantors or by the Holders and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Holders’ respective obligations to contribute pursuant to this Section
5(d) are several in proportion to the respective principal amount of Registrable Securities of such
Holder that were registered pursuant to a Registration Statement.

          (e) The Company, the Guarantors and each Holder agree that it would not be just or equitable
if contribution pursuant to this Section 5 were determined by pro rata allocation
or by any other method of allocation that does not take account of the equitable considerations
referred to in paragraph (d) above. The amount paid or payable by an indemnified party as a result
of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed
to include, subject to the limitations set forth above, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any such action or
claim. Notwithstanding the provisions of this Section 5, no Holder shall be required to indemnify
or contribute any amount in excess of the amount by which the total price at which Registrable

18

 

Securities were sold by such Holder exceeds the amount of any damages that such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. The remedies provided for in this Section 5 are not exclusive and
shall not limit any rights or remedies which may otherwise be available to any indemnified party at
law or in equity.

          The indemnity and contribution provisions contained in this Section 5 shall remain operative
and in full force and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of the Placement Agents, any Holder or any Person controlling
any Placement Agent or any Holder, or by or on behalf of the Company, the Guarantors, their
respective officers or directors or any Person controlling the Company or the Guarantors, (iii)
acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities pursuant
to a Shelf Registration Statement.

          6. Miscellaneous.

          (a) No Inconsistent Agreements. The Company and the Guarantors have not entered into,
and on or after the date of this Agreement will not enter into, any agreement which is inconsistent
with the rights granted to the Holders of Registrable Securities in this Agreement or otherwise
conflicts with the provisions hereof. The rights granted to the Holders hereunder do not in any
way conflict with and are not inconsistent with the rights granted to the holders of the Company’s
or the Guarantors’ other issued and outstanding securities under any such agreements.

          (b) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given unless the Company and the Guarantors
have obtained the written consent of Holders of at least a majority in aggregate principal amount
of the outstanding Registrable Securities affected by such amendment, modification, supplement,
waiver or consent; provided, however, that no amendment, modification, supplement,
waiver or consent to any departure from the provisions of Section 5 hereof shall be effective as
against any Holder of Registrable Securities unless consented to in writing by such Holder.

          (c) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any
courier guaranteeing overnight delivery (i) if to a Holder, at the most current address given by
such Holder to the Company or the Guarantors by means of a notice given in accordance with the
provisions of this Section 6(c), which address initially is, with respect to the Placement Agents,
the address set forth in the Purchase Agreement; and (ii) if to the Company and the Guarantors,
initially at the Company’s address set forth in the Placement Agreement and thereafter at such

19

 

other address, notice of which is given in accordance with the provisions of this Section 6(c).

          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five business days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt is acknowledged, if
telecopied; and on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

          Copies of all such notices, demands, or other communications shall be concurrently delivered
by the Person giving the same to the Trustee, at the address specified in the Indenture.

          (d) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided
that nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Placement Agreement. If any transferee of
any Holder shall acquire Registrable Securities, in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all of the terms of this Agreement,
and by taking and holding such Registrable Securities such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement and
such Person shall be entitled to receive the benefits hereof. The Placement Agents (in their
capacity as Placement Agents) shall have no liability or obligation to the Company or the
Guarantors with respect to any failure by a Holder to comply with, or any breach by any Holder of,
any of the obligations of such Holder under this Agreement.

          (e) Purchases and Sales of Securities. The Company and the Guarantors shall not, and
shall use commercially reasonable efforts to cause its affiliates (as defined in Rule 405 under the
1933 Act) not to, purchase and then resell or otherwise transfer any Securities; provided, however,
the preceding sentence shall not apply to purchases by affiliates of the Company in the initial
distribution of the Securities.

          (f) Third Party Beneficiary. The Holders shall be third party beneficiaries to the
agreements made hereunder between the Company and the Guarantors, on the one hand, and the
Placement Agents, on the other hand, and shall have the right to enforce such agreements directly
to the extent it deems such enforcement necessary or advisable to protect its rights or the rights
of Holders hereunder.

          (g) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

20

 

          (h) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

          (i) Governing Law. This Agreement shall be governed by the laws of the State of New
York.

          (j) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

21

 

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

	 	 	 	 	 	 	 	 	 
	 	 	Hanesbrands Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Richard D. Moss	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Richard D. Moss	 	 
	 

	 	 	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BA International, L.L.C.

Caribesock, Inc.

Caribetex, Inc.

CASA International, LLC

Ceibena Del, Inc.

Hanes Menswear, LLC

Hanes Puerto Rico, Inc.

Hanesbrands Direct, LLC

Hanesbrands Distribution, Inc.

HBI Branded Apparel Limited, Inc.

HBI Branded Apparel Enterprises, LLC

HbI International, LLC

HBI Sourcing, LLC

Inner Self LLC

Jasper-Costa Rica, L.L.C.

National Textiles, L.L.C.

NT Investment Company, Inc.

Playtex Dorado, LLC

Playtex Industries, Inc.

Seamless Textiles, LLC

UPCR, Inc.

UPEL, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Richard D. Moss	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Richard D. Moss	 	 
	 

	 	 	 	Title:
	Treasurer	 	 

Registration Rights Agreement

 

 

Accepted as of the date hereof:

Acting severally on behalf of themselves and:

ABN AMRO Incorporated

Barclays Capital Inc.

Citigroup Global Markets Inc.

HSBC Securities (USA) Inc.

Morgan Stanley & Co. Incorporated

	 	 	 	 	 	 	 
	By:	 	/s/ Jaap L. Tonckens	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Jaap L. Tonckens	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	Merrill Lynch, Pierce, Fenner & Smith	 	 
	 

	 	 	 	Incorporated	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Tami Kidd	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Tami Kidd	 	 
	 

	 	Title:
	 	Vice President	 	 

Registration Rights Agreement

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