Document:

Exhibit 4.1

 

SECOND AMENDED AND RESTATED
STOCKHOLDERS AGREEMENT

 

THIS
SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT, dated as of October 2,
2009, is by and among AGA MEDICAL HOLDINGS, INC., a Delaware corporation (the “Company”),
WELSH, CARSON, ANDERSON & STOWE IX, L.P., a Delaware limited
partnership (“WCAS”), WCAS CAPITAL PARTNERS IV, L.P., a Delaware limited
partnership (“WCAS CP IV”), each of the other individuals and entities
from time to time named on Schedule I hereto under the heading “WCAS Stockholders”
(together with WCAS and WCAS CP IV, each a “WCAS Stockholder” and
collectively, the “WCAS Stockholders”), FRANCK L. GOUGEON (“Gougeon”),
GOUGEON SHARES, LLC, a Minnesota limited liability company (the “Gougeon LLC”),
and THE FRANCK L. GOUGEON REVOCABLE TRUST UNDER AGREEMENT DATED JUNE 28, 2006
(the “Gougeon Trust”; and together with Gougeon and the Gougeon LLC,
each a “Gougeon Stockholder” and collectively, the “Gougeon
Stockholders”, and together with the WCAS Stockholders, each a “Stockholder”
and collectively, the “Stockholders”).

 

RECITALS

 

WHEREAS,
the Stockholders are, as of the date hereof, stockholders of the Company, and
the Company is the parent corporation of AGA Medical Corporation, a Minnesota
corporation (“AGA”);

 

WHEREAS,
the WCAS Stockholders, Gougeon and the Company are each party to that certain
Amended and Restated Stockholders Agreement, dated as of April 21, 2008,
as amended by that certain First Amendment to Amended and Restated Stockholders
Agreement, dated as of June 20, 2008, and as further amended by that
certain Second Amendment to Amended and Restated Stockholders Agreement, dated
as of January 5, 2009 (the “Original Agreement”); and

 

WHEREAS,
Section 8.05 of the Original Agreement provides that the Original
Agreement may be amended or modified by an instrument in writing signed by the
Company, WCAS and the Gougeon Stockholders holding not less than a majority of
the shares of Common Stock (including Conversion Shares) held by the Gougeon
Stockholders.

 

AGREEMENT

 

NOW,
THEREFORE, in compliance with Section 8.05 of the Original Agreement, the
Company, WCAS and the Gougeon Stockholders each hereby agree to amend and
restate the Original Agreement in its entirety to provide as follows:

 

 

ARTICLE I.

 

INTRODUCTORY
MATTERS

 

SECTION 1.01.      Defined
Terms.  In addition to the terms
defined elsewhere herein, the following terms have the following meanings when
used herein with initial capital letters:

 

“Affiliate” means, with respect to any specified Person, a
Person that directly, or indirectly through one or more intermediaries,
Controls, is Controlled by or is under common Control with, the specified
Person.

 

“Agreement” means this Amended and Restated Stockholders
Agreement, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with the terms hereof.

 

“Assumption Agreement” means a writing reasonably satisfactory
in form and substance to the Company and WCAS whereby a Permitted Transferee of
Company Equity Securities (a) becomes a party to, and agrees to be bound
(to the same extent as its transferor) by, the terms of this Agreement as a
“Stockholder” hereunder and (b) in the case of a Transfer by a Gougeon
Stockholder or one of their Designated Affiliates, agrees to be bound (with
respect to such transferred Company Equity Securities only) by, and subject to,
the indemnification obligations of (i) Gougeon set forth in Section 5
of the New Purchase Agreement and (ii) the Gougeon Stockholders set forth
in Section 5 of the Forbearance Agreement.

 

“Business
Day” means a day other than a day on which commercial banks in New York,
New York are authorized or required by law to close.

 

“Class A
Common Stock” means the Common Stock designated as Class A Common
Stock under the Company Pre-IPO Charter, which will be reclassified into
undesignated Common Stock upon the effectiveness of the Company IPO Charter.

 

“Commission”
means the Securities and Exchange Commission, or any other federal agency at
the time administering the Securities Act.

 

“Common
Stock” means (i) prior to the effectiveness of the Company IPO
Charter, the common stock, par value $0.01 per share, of the Company,
authorized by the Company Pre-IPO Charter (however designated or undesignated)
and (ii) after the effectiveness of the Company IPO Charter, the common
stock, par value $0.01 per share, of the Company, authorized by the Company IPO
Charter.

 

“Company
Capital Stock” means (i) prior to the effectiveness of the Company IPO
Charter, all Series A Preferred Stock, Series B Preferred Stock, Class A
Common Stock and Common Stock, and (ii) upon and after the effectiveness
of the Company IPO Charter, all Common Stock and all preferred stock issued by
the Company in the future after the effectiveness of the Company IPO Charter
(if any).

 

 

“Company
Equity Securities” means all shares of Company Capital Stock now or
hereafter issued and all Options or Convertible Securities now or hereafter
issued.

 

“Company
IPO Bylaws” means the Amended and Restated Bylaws of the Company in the
form attached hereto as Exhibit A, to become effective immediately
prior to consummation of the Company’s initial Public Offering, as may be
further amended from time to time.

 

“Company
IPO Charter” means the Amended and Restated Certificate of Incorporation of
the Company in the form attached hereto as Exhibit B, to become
effective immediately prior to consummation of the Company’s initial Public
Offering as may be further amended thereafter from time to time.

 

“Company
Pre-IPO Bylaws” means the Bylaws of the Company as in effect on the date
hereof and as may be hereafter amended from time to time until the
effectiveness of the Company IPO Bylaws.

 

“Company Pre-IPO Charter” means the Amended and Restated
Certificate of Incorporation of the Company, as in effect on the date hereof
and as may be hereafter amended from time to time until the effectiveness of
the Company IPO Charter.

 

“Company
Stock Plans” means all stock option plans, restricted stock purchase plans
and other stock-based plans and agreements approved by the Board.

 

“Consulting
Agreement” means that certain Consulting Agreement, dated as of June 20,
2008, between AGA and Gougeon, as may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Control”
(including the terms “Controlling”, “Controlled by” and “under common Control
with”) means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

 

“Conversion
Shares” means the shares of undesignated Common Stock issued or issuable
upon conversion of the outstanding shares of Class A Common Stock, Series A
Preferred Stock and Series B Preferred Stock pursuant to the Company
Pre-IPO Charter.

 

“Convertible
Securities” means any securities directly or indirectly convertible into or
exercisable or exchangeable for Common Stock.

 

“Designated
Affiliate” means (i) in the case of any Stockholder that is not a
natural person, any Affiliate of such Stockholder, (ii) in the case of a
Stockholder who is a natural person, such Stockholder’s spouse and lineal
descendants or trusts for the benefit of, or corporations, limited liability
companies or partnerships, the stockholders, members or general and/or limited
partners of which include, only such Stockholder and/or Stockholder’s parents,
spouse or lineal descendants (provided that any such trust may also include
such Stockholder’s heirs at law as contingent beneficiaries), and (iii) in
the case of WCAS, WCAS CP IV and each 

 

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of either entity’s Designated Affiliates, each general or limited
partner, manager, member, officer, director or employee thereof.

 

“Eligible
Issuance” means the issuance by the Company prior to the Company’s initial
Public Offering to any Person or Persons (including any of the Stockholders) of
any Company Equity Securities in consideration for cash, cash equivalents,
property or indebtedness, excluding issuances by the Company of Company Equity
Securities:

 

(i)            in connection
with or pursuant to a Company Stock Plan;

 

(ii)           in connection
with a bona fide business acquisition, reorganization or recapitalization (by
stock split, stock dividend, share exchange or otherwise) of or by the Company
or any subsidiary thereof, whether by merger, consolidation, sale of assets,
sale or exchange or otherwise;

 

(iii)          upon the
exercise, exchange or conversion of Options or Convertible Securities;

 

(iv)          to a lender
(including any Stockholder or any of their Designated Affiliates) in connection
with a debt financing or the amendment of any debt financing arrangements; or

 

(v)           in connection
with the effectiveness of the Company IPO Charter or the Company’s initial
Public Offering.

 

“Exchange
Act” means the Securities Exchange Act of 1934, or any successor federal
statute, and the rules and regulations of the Commission thereunder, as
the same may be amended from time to time.

 

“Fully
Diluted Basis” means the number of shares of Common Stock outstanding or
held by one or more Persons, including for such purposes (until the
effectiveness of the Company IPO Charter) any Conversion Shares outstanding or
held by one or more Persons.

 

“Loan
Agreement” means that certain Loan Agreement, dated as of April 21,
2008, between the Gougeon LLC and Bank of America, N.A., as may be amended,
restated, supplemented or otherwise modified from time to time.

 

“NASDAQ”
means The NASDAQ Stock Market, Inc.

 

“New
Purchase Agreement” means that certain Stock Purchase Agreement, dated as
of April 21, 2008, between WCAS and the other WCAS Stockholders party
thereto, Gougeon and the other Gougeon Stockholders party thereto and the
Company, as may be amended, restated, supplemented or otherwise modified from
time to time.

 

“Options” means any rights, warrants or options to subscribe for
or purchase Common Stock or Convertible Securities.

 

4

 

“Original
Purchase Agreement” means that certain Amended and Restated Stock Purchase
Agreement, dated as of July 25, 2005 (as amended or otherwise modified
from time to time), between WCAS, Gougeon and AGA, as may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Permitted
Transferee” means any Person to whom Company Equity Securities are
Transferred in a Transfer made in accordance with Section 2.02 and
otherwise not in violation of this Agreement.

 

“Person”
means any natural person, corporation, limited liability company, partnership,
trust, joint stock company, business trust, unincorporated association, joint
venture, governmental authority or other legal entity of any nature whatsoever.

 

“Proportionate Percentage” means, with respect to any specified
Stockholder or Stockholders as of any date, the result (expressed as a
percentage) obtained by dividing (i) the amount of shares of Common Stock
(including Conversion Shares) owned by such Stockholder or Stockholders as of
such date on a Fully Diluted Basis by (ii) the total number of shares of
Common Stock (including Conversion Shares) outstanding as of such date on a
Fully Diluted Basis.

 

“Public
Offering” means the sale of shares of Common Stock to the public pursuant
to an effective registration statement (other than a registration statement on Form S-4,
Form S-8 or any similar or successor form) filed under the Securities Act.

 

“Related
Stockholder” means a Stockholder whose Transfer of Company Equity
Securities in a sale made pursuant to Rule 144 would be subject to
aggregation with another Stockholder under Rule 144.

 

“Rule 144”
means Rule 144 promulgated under the Securities Act (or any successor
rule).

 

“Securities
Act” means the Securities Act of 1933, or any successor federal statute,
and the rules and regulations of the Commission thereunder, as the same
may be amended from time to time.

 

“Series A
Preferred Stock” means the Series A Convertible Preferred Stock, par
value $0.001 per share, of the Company, authorized by the Company Pre-IPO
Charter which will be reclassified into Common Stock upon the effectiveness of
the Company IPO Charter.

 

“Series B
Preferred Stock” means the Series B Convertible Preferred Stock, par
value $0.001 per share, of the Company, authorized by the Company Pre-IPO
Charter which will be reclassified into Common Stock upon the effectiveness of
the Company IPO Charter.

 

“Stockholders
Agreement Legend” means (i) with respect to Company Equity Securities
issued on or after the date hereof, the legend placed on any certificates
representing such Company Equity Securities pursuant to Section 2.03 and (ii) with
respect to Company Equity Securities issued prior to the date hereof, the
“Stockholders Agreement Legend” as defined in the Original Agreement.

 

5

 

“Transfer”
means a transfer, sale, assignment, pledge, hypothecation or other disposition
(including by operation of law), whether directly or indirectly pursuant to the
creation of a derivative security, the grant of an option or other right or the
imposition of a restriction on disposition or voting and whether by one or a
series of transactions.

 

SECTION 1.02.      Construction.  (a)  The parties hereto have
participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as if
drafted jointly by the parties and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any
provisions of this Agreement.  Unless the
context otherwise requires: (i) “or” is disjunctive but not exclusive, (ii) words
in the singular include the plural, and in the plural include the singular, (iii) the
words “hereof”, “herein”, and “hereunder” and words of similar import when used
in this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement, (iv) the headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement, (v) the words “Article” and “Section”
are references to the articles and sections of this Agreement unless otherwise
specified and (vi) whenever the words “include”, “includes” or “including”
are used in this Agreement they shall be deemed to be followed by the words
“without limitation”.

 

(b)           References herein to any Stockholder, to the extent
such Stockholder shall have Transferred any of its shares of Company Equity
Securities to one or more Permitted Transferees, shall mean such Stockholder
and such Permitted Transferees, taken together, and any right or action that
may be taken at the election of such Stockholder may be taken at the election
of such Stockholder and such Permitted Transferees to the extent such
Stockholder has agreed in writing to transfer such rights to any such Permitted
Transferee.  For the avoidance of doubt,
to the extent any Stockholder shall have Transferred any of its Company Equity
Securities in a Transfer permitted hereunder to one or more Persons who are not
required to execute and deliver an Assumption Agreement as a condition to such
Transfer (i) such Persons shall not be considered Stockholders for
purposes of this Agreement and (ii) if such Stockholder has Transferred
all of its Company Equity Securities to such Persons, such Stockholder shall
cease to be a Stockholder hereunder and shall no longer be subject to this
Agreement.

 

ARTICLE
II.

 

TRANSFERS

 

SECTION 2.01.      Transfer Restrictions.

 

(a)           No Stockholder may Transfer any Company Equity
Securities other than (i) the Transfer by Gougeon of shares of Common Stock
to WCAS and certain of the other WCAS Stockholders pursuant to the Purchase
Agreement, (ii) the Transfer by Gougeon of 38,016,000 shares of Common
Stock to the Gougeon Trust and the immediate subsequent Transfer by the Gougeon
Trust of such shares of Common Stock to the Gougeon LLC, (iii) the pledge
of shares of Common Stock by (1) the Gougeon LLC to Bank of America, N.A.
as contemplated by the Loan Agreement and (2) the Gougeon Stockholders to
WCAS (and, in each case, the first Transfer upon any subsequent foreclosure
thereon), (iv) Transfers by any of the 

 

6

 

Gougeon Stockholders made with the written consent of WCAS, (v) Transfers
by any of the WCAS Stockholders made with the written consent of Gougeon and (vi) Transfers
made in accordance with Section 2.02 or Article III.   Notwithstanding the foregoing, upon and
after the consummation of the Company’s initial Public Offering, the provisions
of this Section 2.01(a) shall not apply to (w) any Transfer by a
Stockholder of its Common Stock to any Person in connection with the Company’s
initial Public Offering, any subsequent Public Offering (including any shelf
takedowns) where such Stockholder’s Company Equity Securities are registered
under an effective registration statement filed under the Securities Act, (x) any
Transfer by a Stockholder of its Company Equity Securities to any Person in
sales made in reliance on Rule 144 in compliance with Section 2.01(b) or
Transfers by a Stockholder effected through open market trading or (y) one
or more distributions by either or both of WCAS or WCAS CP IV of Company Equity
Securities to their respective partners.

 

(b)           Each Stockholder that Transfers any of its Company
Equity Securities in a sale made in reliance on Rule 144 shall promptly
notify the Coordination Committee of (i) when it has commenced a
measurement period for purposes of the Rule 144 group volume limit in
connection with a Transfer that is subject to such limit and (ii) what the
volume limit for that measurement period, determined as of its commencement,
will be.  Each Related Stockholder shall
be entitled to effect Transfers that are subject to the Rule 144 group
volume limit pro rata during the applicable
measurement period based on such Related Stockholder’s percentage ownership of
Company Equity Securities held by all of the Related Stockholders at the start
of such measurement period.  In the event
any such Related Stockholder agrees to forego its full pro rata
share of the Rule 144 group volume limit by written notice to the
Coordination Committee, the remainder shall be re-allocated pro rata among the remaining Related Stockholders in like
manner (except that the Company Equity Securities held by such forfeiting
Related Stockholder at the start of such measurement period shall be excluded
from such calculation).  The provisions
of this Section 2.01(b) shall not apply to any Transfer of Company
Equity Securities (x) that is not subject to the volume limitations under Rule 144
or (y) if any Stockholder obtains a “no-action letter” from the Commission
that supports the good faith assertion of such Stockholder that this Agreement
does not constitute an agreement among any of the Stockholders to act in
concert for the purposes of selling securities of the Company within the
meaning of Rule 144.

 

(c)           Notwithstanding anything to the contrary in Section 2.01(a),
each Stockholder agrees that it will not effect any Transfer of Company Equity
Securities unless such Transfer is made pursuant to an effective registration
statement under the Securities Act or pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act
and, in either case, in compliance with all applicable state securities laws
and all applicable securities laws of any other jurisdiction.  The Company agrees, and each Stockholder
understands and consents, that the Company will not cause or permit the
Transfer of any Company Equity Securities to be made on its books (or on any
register of securities maintained on its behalf) unless the Transfer is
permitted by, and has been made in accordance with the terms of this Agreement
and all applicable securities laws.  Each
Stockholder agrees that in connection with any Transfer of Company Equity Securities
that is not made pursuant to a registered public offering, the Company may, in
its sole discretion, request an opinion in form and substance reasonably
satisfactory to the Company and from counsel reasonably satisfactory to the
Company stating that such transaction is exempt from registration under the
Securities Act 

 

7

 

and in compliance with applicable state securities laws and all
applicable securities laws of any other jurisdiction.

 

(d)           The Company shall not give effect to any attempted
Transfer of Company Equity Securities by any Stockholder made in violation of
the terms of any preexisting or future restrictions on Transfers set forth in
any other agreement or other document executed by any such Stockholder; provided
the Company has knowledge of such other agreement or other document.  At all times prior to the expiration of any
such other agreement or other document, the Company shall use its best efforts
to comply with the provisions of such other agreement or other document
relating to the placing of legends on Company Equity Securities, and each
Stockholder executing any such other agreement or other document hereby
consents to the placing of such legends on such certificates.

 

(e)           The Gougeon Stockholders acknowledge and agree that
any Transfer of the limited liability company interests of the Gougeon LLC
would constitute a Transfer of Company Equity Securities, and any proposed
Transfer of all or any portion of the limited liability company interests of
the Gougeon LLC shall be subject to, and may be made subject to compliance
with, the terms of this Agreement.

 

(f)            Any attempted Transfer of Company Equity Securities in
violation of the terms hereof shall be null and void ab initio
and of no effect.

 

(g)           Upon or immediately after the consummation of the
Company’s initial Public Offering, WCAS and the Gougeon Stockholders shall
create a coordination committee (the “Coordination Committee”) (which
shall not be a committee of the Board) and shall maintain such committee until
the earliest of (i) the termination or expiration of this Agreement, (ii) the
agreement in writing of WCAS and the Gougeon Stockholders to disband such
committee and (iii) such time as either WCAS or the Gougeon Stockholders
no longer beneficially owns any Company Equity Securities.  The Coordination Committee shall facilitate
the coordination of Transfers by the Stockholders (to the extent necessary) and
any joint filings with the Commission or other governmental agencies that are
required to be made by any Stockholder with another Stockholder under the
Securities Act, the Exchange Act or other applicable securities laws.  Each of WCAS and the Gougeon Stockholders
shall be permitted to designate one (1) member (who may also be a director
of the Company) of the Coordination Committee, and shall be permitted to remove
and replace such designated member from time to time.  The procedures governing the conduct of the
Coordination Committee shall be established from time to time by the members of
the Coordination Committee; provided that such procedures shall not
discriminate against any particular Stockholder or Stockholders in any material
respect.  Notwithstanding anything herein
to the contrary, except upon the unanimous determination of the Coordination
Committee, the Coordination Committee shall not be permitted to block or
otherwise prohibit or limit Transfers by any of the Stockholders.  Notices to the Coordination Committee shall
be delivered to WCAS and the Gougeon Stockholders in accordance with Section 8.04.

 

SECTION 2.02.      Transfers to Permitted Transferees.  Any Stockholder may, at any time, Transfer
any or all of the Company Equity Securities held by such Stockholder to any one
or more Designated Affiliates of such Stockholder so long as each such
Designated 

 

8

 

Affiliate duly executes and delivers an
Assumption Agreement unless such Designated Affiliate is already party to this
Agreement as a Stockholder hereunder (such Transfer to be effective only upon
the delivery of such Assumption Agreement to the Company, WCAS and Gougeon); provided,
that (A) if the Company so requests promptly following (and, in any event,
within five (5) Business Days after) its receipt of such Assumption
Agreement, such Assumption Agreement shall not be effective unless and until
the Company has been furnished with an opinion in form and substance reasonably
satisfactory to the Company and from counsel reasonably satisfactory to the
Company stating that such transaction is exempt from registration under the
Securities Act and in compliance with applicable state securities laws and
applicable securities laws of any other jurisdiction and (B) no Transfer
under this Section 2.02 shall be permitted if such Transfer would require
the Company to register a class of equity securities under Section 12 of
the Exchange Act under circumstances in which the Company does not then have
securities of such class registered under Section 12 of the Exchange
Act.  Notwithstanding the foregoing, no
party hereto shall avoid the provisions of this Agreement by making one or more
Transfers to one or more Permitted Transferees and then disposing of all or any
portion of such party’s interest in any such Permitted Transferee.

 

SECTION 2.03.      Legends.  (a)  Each certificate representing
Company Equity Securities that is held by a Stockholder will bear the
Stockholders Agreement Legend.   Each
certificate representing Company Equity Securities issued on or after the date
hereof that is held by a Stockholder will bear a legend substantially to the
following effect with such additions thereto or changes therein as the Company
may be advised by counsel are required by law or necessary to give full effect
to this Agreement:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO A SECOND AMENDED AND RESTATED STOCKHOLDERS
AGREEMENT, DATED AS OF OCTOBER 2, 2009, AMONG THE COMPANY AND THE OTHER PARTIES
THERETO, AS AMENDED, AND AN AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT,
DATED AS OF APRIL 21, 2008, AMONG THE COMPANY AND THE OTHER PARTIES THERETO, AS
AMENDED, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE COMPANY.  NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH
STOCKHOLDERS AGREEMENT AND SUCH AMENDED AND RESTATED REGISTRATION RIGHTS
AGREEMENT.  THE HOLDER OF THIS
CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF
THE PROVISIONS OF SUCH STOCKHOLDERS AGREEMENT.”

 

The Stockholders Agreement Legend will be
removed by the Company by the delivery of substitute certificates without such
Stockholders Agreement Legend in the event of (i) a Transfer permitted by
this Agreement in which the transferee is not required to enter into an
Assumption Agreement or (ii) the termination of this Agreement in
accordance with Section 8.07.

 

9

 

(b)           From and after the date hereof, and (i) until such
time as such Company Equity Securities have been sold to the public pursuant to
an effective registration statement under the Securities Act or (ii) if
pursuant to an exemption from such registration, until such time such Company
Equity Securities are no longer “restricted securities” under Rule 144 under
the Securities Act and the holder of such Company Equity Securities shall have
requested the issuance of new certificates in writing and, if requested by the
Company, delivered to the Company an opinion in form and substance reasonably
satisfactory to the Company and from counsel reasonably satisfactory to the
Company to such effect, all certificates representing Company Equity Securities
that are held by any Stockholder shall bear a legend which shall state the
following:

 

“THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND NO INTEREST HEREIN MAY BE
SOLD, OFFERED, ASSIGNED, DISTRIBUTED, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT COVERING ANY SUCH
TRANSACTION OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER,
SUBJECT TO THE COMPANY’S RIGHT TO RECEIVE AN OPINION OF COUNSEL CERTIFICATIONS
AND OTHER INFORMATION IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE
COMPANY AND FROM COUNSEL REASONABLY SATISFACTORY TO THE COMPANY STATING THAT
SUCH TRANSACTION IS EXEMPT FROM SUCH REGISTRATION AND IN COMPLIANCE WITH ALL
APPLICABLE STATE SECURITIES LAWS AND ALL APPLICABLE SECURITIES LAWS OF ANY
OTHER JURISDICTION.”

 

Notwithstanding the
foregoing, certificates representing Company Equity Securities issued prior to
the date hereof that are held by a Stockholder may bear the legend set forth in
Section 2.03(b) of the Original Agreement in lieu of the legend set forth in
this Section 2.03(b).

 

SECTION
2.04.      Termination of
Transfer Restrictions.  Upon
the earlier to occur of (i) a distribution of Company Equity Securities by WCAS
and WCAS CP IV to their respective partners representing in the aggregate at
least ten percent (10%) of the issued and outstanding Common Stock upon or
after the consummation of the Company’s initial Public Offering and (ii) the
second anniversary of the date of the Company’s initial Public Offering, the
restrictions on Transfers of Company Equity Securities by Stockholders set
forth in Section 2.01 (other than Sections 2.01(b), 2.01(c) and 2.01(g)) and Section
2.02 shall automatically terminate.

 

ARTICLE
III.

 

TAG-ALONG RIGHTS

 

SECTION 3.01.      Tag-Along Rights.  With respect to any proposed Transfer by one
or more Stockholders (collectively, the “Selling Stockholder”) of a
number of shares of Company Capital Stock representing a Proportionate Percentage
of least ten percent (10%) that is otherwise permitted under this Agreement,
each other Stockholder who exercises its rights

 

10

 

under this Section 3.01
(each a “Tagging Stockholder”) will have the right to include the
following in the proposed sale to the proposed transferee(s) of shares (the “Proposed
Transferee”) or sell the following to the Selling Stockholder (if such
Proposed Transferee will not agree to purchase shares directly from such Tagging
Stockholder, and in such case the Selling Stockholder shall be obligated to
purchase from such other Stockholder the following):  a number of shares of Common Stock (or
Conversion Shares convertible into such number of shares of Common Stock) up to
the product (rounded down to the nearest whole number) of (i) such Stockholder’s
Proportionate Percentage and (ii) the total number of shares of Common Stock
(or Conversion Shares convertible into such number of shares of Common Stock,
as applicable) proposed to be Transferred to the Proposed Transferee(s), at the
same price(s) per share of Common Stock, as the case may be, and upon the same
terms and conditions (including time of payment, form of consideration and adjustments
to purchase price) as the Selling Stockholder.

 

SECTION
3.02.      Exercise of
Tag-Along Rights; Notices.  The
Selling Stockholder will give each other Stockholder prior written notice of
each proposed sale, setting forth the number and type of shares of Company
Capital Stock proposed to be so Transferred, the name and address of the
Proposed Transferee, the proposed amount and form of consideration and other
material terms and conditions of payment offered by the Proposed Transferee
(such notice, the “Tag-Along Opportunity Notice”).  In the event that any of the material terms
or conditions set forth in the Tag-Along Opportunity Notice are thereafter
amended in any material respect, the Selling Stockholder shall also give
written notice of the amended terms and conditions of the Proposed Sale to each
other Stockholder (such amended notice, an “Amended Tag-Along Opportunity
Notice”).  In order to exercise the
tag-along rights provided by this Article III, each Tagging Stockholder must
send a written notice to the Selling Stockholder indicating the desire of such
Tagging Stockholder to exercise its rights and specifying the number and type
of shares of Company Capital Stock they desire to sell (the “Tag-Along
Exercise Notice”) within ten (10) Business Days following the delivery of
the Tag-Along Opportunity Notice to the other Stockholders (or if an Amended
Tag-Along Opportunity Notice is given to each other Stockholder, within ten (10)
Business Days following the delivery of such Amended Tag-Along Opportunity
Notice).  Within ten (10) Business Days
of the delivery of an Amended Tag-Along Opportunity Notice, each Tagging Stockholder
shall be permitted to cancel its exercise of its rights under this Article III
upon delivery of written notice to the Selling Stockholder to such effect and
shall be released from its obligation hereunder.  It shall be a condition to the exercise of
any rights under this Article III to Transfer shares of Company Capital Stock
that each Tagging Stockholder execute and deliver such agreements as may be
reasonably requested by the Proposed Transferee to which the Selling Stockholder
will also be party, including agreements to (i) make individual
representations, warranties, covenants and other agreements as to the
unencumbered title to its shares of Company Capital Stock and the power,
authority and legal right to Transfer such shares and (ii) be severally (with
all other sellers) liable (whether by purchase price adjustment, indemnity
payments or otherwise) in respect of representations, warranties, covenants and
agreements in respect of the Company and its subsidiaries.

 

SECTION
3.03.      Closing of
Proposed Sale.  (a)  Each Tagging Stockholder shall deliver to the
Selling Stockholder, as agent for such Tagging Stockholder, for transfer to the
Proposed Transferee one or more certificates, properly endorsed for transfer,
which represent the

 

11

 

shares of Company Capital Stock that such
Tagging Stockholder is permitted to dispose of pursuant to this Article III.  In connection with the consummation of any
such Proposed Sale, the Selling Stockholder (i) shall transfer to the Proposed
Transferee at the closing of such Proposed Sale a stock certificate or
certificates representing the shares of Company Capital Stock to be disposed of
by any Tagging Stockholders and (ii) shall promptly thereafter remit to each
Tagging Stockholder (x) that portion of the proceeds of the disposition to
which such Tagging Stockholder is entitled by reason of such participation and (y)
a stock certificate or certificates representing any balance of shares of
Company Capital Stock that were not so disposed of (or all shares of Company
Capital Stock, in the event the proposed disposition is not consummated).

 

(b)           If any Tagging Stockholder exercises its rights under
this Article III, the closing of the purchase of the Company Capital Stock with
respect to which such rights have been exercised will take place concurrently
with the closing of the sale of the Selling Stockholder’s Company Capital Stock
to the Proposed Transferee.  If by the
end of ninety (90) days following the date of delivery of the Tag-Along
Opportunity Notice (or, following the delivery of the last Amended Tag-Along
Opportunity Notice, if applicable), the Selling Stockholder and the Proposed
Transferee have not completed the Proposed Sale, each Tagging Stockholder shall
be released from its obligations under this Article III, and the Tag-Along
Exercise Notices shall be null and void, and it shall be necessary for the
terms of this Article III to be separately complied with in order to consummate
such Proposed Sale pursuant to this Article III.

 

SECTION
3.04.      Excluded
Transactions.  The rights
afforded to the Stockholders under this Article III shall apply to all
Transfers permitted under this Agreement; provided, however, that
such rights shall not apply to Transfers expressly permitted by Section 2.01(a)
(excluding clauses (iv) and (v) thereof) or Section 2.02.

 

SECTION 3.05.      Termination of
Tag-Along Rights.  The rights
afforded to Stockholders under this Article III shall automatically terminate (i)
in the case of the WCAS Stockholders, upon the Gougeon Stockholders ceasing to
have collectively a Proportionate Percentage of at least ten percent (10%), and
(ii) in the case of the Gougeon Stockholders, upon the WCAS Stockholders
ceasing to have collectively a Proportionate Percentage of at least ten percent
(10%), in either case without giving effect to any proposed Transfer which
would result in the WCAS Stockholders or the Gougeon Stockholders, as the case
may be, collectively having a Proportionate Percentage of less than ten percent
(10%).

 

12

 

ARTICLE
IV.

 

VOTING AGREEMENT

 

SECTION 4.01.      Directors.  (a) From and after the date hereof until the
effectiveness of the Company IPO Charter, at each annual or special
stockholders meeting called for the election of directors, and whenever the
stockholders of the Company act by written consent with respect to the election
of directors, the Stockholders each agree to vote or otherwise give such
Stockholder’s consent in respect of all shares of Company Capital Stock
(whether now or hereafter acquired), owned by such Stockholder, and with
respect to clause (i) below, the Company shall take, to the extent not prohibited
by applicable law, the Company Pre-IPO Charter or the Company Pre-IPO Bylaws,
all necessary and desirable actions within its control, in order to cause:

 

(i)            the authorized number of directors on the Board of
Directors of the Company (the “Board”) to be established at nine (9) directors;

 

(ii)           for so long as WCAS is a stockholder of the Company,
the election to the Board of three (3) directors designated in writing by WCAS
(each, a “WCAS Designee”), two of whom are currently Paul B. Queally and
Sean M. Traynor;

 

(iii)          for so long as one of the
Gougeon Stockholders is a stockholder of the Company, the election to the Board
of three (3) directors designated in writing by Gougeon (each, a “Gougeon
Designee”), two of whom are currently Gougeon and Darrell J. Tamosuinas;
and

 

(iv)          the election of three (3) directors
who shall be acceptable to WCAS and Gougeon which directors are currently Tommy
G. Thompson, Daniel A. Pelak and Terry A. Rappuhn; it being understood that one
of such directors will serve as the Non-Executive Chairman of the Board.

 

(b)           Upon the effectiveness of
the Company IPO Charter and thereafter at each annual or special stockholders
meeting called for the election of directors, the Stockholders each agree to
vote in respect of all shares of Company Capital Stock (whether now or
hereafter acquired), owned by such Stockholder, in order to cause:

 

(i)            for each seven percent (7%) of the issued and
outstanding Common Stock held collectively by the WCAS Stockholders, the
election to the Board of one (1) WCAS Designee, up to maximum of three (3) WCAS
Designees;

 

(ii)           for each seven percent (7%) of the issued and
outstanding Common Stock held collectively by the Gougeon Stockholders, the
election to the Board of one (1) Gougeon Designee, up to maximum of three (3) Gougeon
Designees;

 

(iii)          the election of independent directors who are
reasonably acceptable to both a majority in voting power of the WCAS
Stockholders and a majority in voting power of the Gougeon Stockholders and at
least three (3) of whom qualify as “independent” under the Commission and
NASDAQ rules (the “Independent Directors”) to fill the remaining seats
on the Board not filled by a WCAS Designee or Gougeon Designee; and

 

13

 

(iv)          the election of one (but not more than one) WCAS
Designee and one (but not more than one) Gougeon Designee, as the case may be,
to each of the three classes of directors as provided in the Company IPO
Charter upon the effectiveness of the Company IPO Charter.

 

Notwithstanding anything to the contrary in this Section 4.01(b), if
after the consummation of the Company’s initial Public Offering the Company
ceases to qualify as a “controlled company” under NASDAQ rules (or the rules of
any other exchange on which Company Equity Securities are listed), each of WCAS
and Gougeon shall, within one (1) year after the Company ceases to qualify as
such, cause a sufficient number of their respective designees to qualify as “independent
directors” under such rules to ensure that the Board complies with applicable
independence rules.  The Company shall be
permitted, if necessary, and the Stockholders shall take all reasonably
necessary actions within their control to increase the number of authorized
directors so as to comply with applicable independence rules.  If after the consummation of the Company’s
initial Public Offering (x) the WCAS Stockholders are no longer entitled to
nominate the number of WCAS Designees then serving as directors on the Board as
set forth in this Section 4.01(b), WCAS shall notify the Gougeon Stockholders
which of such directors that shall no longer be considered a WCAS Designee for
purposes of this Article IV and (y) the Gougeon Stockholders are no longer
entitled to nominate the number of Gougeon Designees then serving as directors
on the Board as set forth in this Section 4.01(b), the Gougeon Stockholders
shall notify WCAS which of such directors that shall no longer be considered a
Gougeon Designee for purposes of this Article IV.

 

(c)           From and after the date
hereof, at each annual or special stockholders meeting, and whenever the
stockholders of the Company act by written consent with respect to the election
of directors, the Stockholders each agree to vote or otherwise give such
Stockholder’s consent in respect of all shares of Company Capital Stock
(whether now or hereafter acquired), owned by such Stockholder in order to
cause:

 

(i)            the removal from the Board (with or, until the
effectiveness of the Company IPO Charter, without cause) of (A) any WCAS Designee
upon the written request of WCAS, (B) any Gougeon Designee upon the written
request of Gougeon, and (C) any Independent Director upon the written request
of WCAS and Gougeon; and

 

(ii)           until the effectiveness of the Company IPO Charter,
upon any vacancy in the Board as a result of any WCAS Designee, Gougeon
Designee or any other director ceasing to be a member of the Board, whether by
resignation, removal or otherwise, the election to the Board, as applicable, of
(A) an individual designated by WCAS in the case of a WCAS Designee, (B) an
individual designated by Gougeon in the case of a Gougeon Designee or (C) an
individual designated by both WCAS and Gougeon in the case of any other
director (subject to applicable law and NASDAQ rules (or the rules of any other
exchange on which Company Equity Securities are listed)); it being understood
that if for any reason WCAS or Gougeon shall fail to designate a replacement
director to fill such vacant directorship as provided by this paragraph (ii),
such vacant directorship shall remain vacant until the earlier to occur of (x) the
next annual or special stockholders meeting called for the election of
directors and (y) such time as a replacement director is designated by WCAS
and/or Gougeon (as applicable) to fill such vacant directorship as

 

14

 

provided by this paragraph (ii), and until such date
such vacant directorship shall not be filled by resolution or vote of the Board
or the Company’s other stockholders.

 

From and after the effectiveness of the Company IPO Charter, each of
WCAS and Gougeon agrees to cause its designees to the Board, if any, to vote or
otherwise give such director’s consent, to the extent not prohibited by
applicable law, to fill any vacancy in the Board as a result of any WCAS
Designee, Gougeon Designee or any other director ceasing to be a member of the
Board, whether by resignation, removal or otherwise, in a manner consistent
with the provisions of clause (ii) above. 
The WCAS Stockholders shall not vote to remove any director who is at
such time a Gougeon Designee without Gougeon’s prior written consent, and the
Gougeon Stockholders shall not vote to remove any director who is at such time
a WCAS Designee without the prior written consent of WCAS.

 

(d)           Except as otherwise prohibited by applicable law,
the Company shall use its best efforts to cause each such designee to the Board
that is permitted to be designated in accordance with this Section 4.01 to be (i)
included in the Board’s slate of nominees to the stockholders for each election
of directors and (ii) included in the proxy statement (if any) prepared by
management of the Company in connection with soliciting proxies for every
meeting of the stockholders of the Company called with respect to the election
of members of the Board, and at every adjournment or postponement thereof, and
on every action or approval by written consent of the stockholders of the
Company or the Board with respect to the election of members of the Board.  Without limiting the foregoing, the Company
shall not, unless required by applicable law or the Company’s certificate of
incorporation or bylaws then in effect, take any action inconsistent with the
provisions set forth in paragraphs (a), (b) or (c) of this Section 4.01.

 

(e)           Subject to the final sentence of this Section 4.01(e)
but otherwise notwithstanding the other provisions of this Section 4.01, the
Company shall not be obligated to cause to be nominated for election to the
Board (or included in the Board’s slate of nominees to the Company’s
stockholders or any proxy statement prepared by management of the Company in
connection with soliciting proxies for every meeting of the stockholders of the
Company called with respect to the election of members of the Board) or
recommend to the Company’s stockholders the election of any designee in the
event that (i) the Board determines in good faith, after consultation with
reputable outside legal counsel, that such action would constitute a breach of
its fiduciary duties (or otherwise violate applicable law) or (ii) the Company
receives a written opinion of reputable outside legal counsel that such
designee would not be qualified under any applicable law, rule or regulation to
serve as a director of the Company or if the Company objects to such designee
because such designee has been involved in any of the events enumerated in Item
2(d) or (e) of Schedule 13D under the Exchange Act or such person is currently
the target of an investigation by any governmental authority or agency relating
to felonious criminal activity or is subject to any order, decree, or judgment
of any court or agency prohibiting service as a director of any public company
or providing investment or financial advisory services.  In any such non-approval, WCAS or Gougeon, as
the case may be, shall withdraw the designation of such proposed designee and
designate a replacement therefor (which replacement designee shall also be
subject to the requirements of this Section 4.01(e)).  The Company shall promptly notify WCAS or
Gougeon, as the case may be, in writing of any objection to a designee in
advance of the date on which proxy materials are mailed by the Company in
connection with such election of directors, and the Company shall use its
reasonable

 

15

 

best efforts to enable such Person to promptly propose a replacement
designee in accordance with the terms of this Agreement.  No WCAS Designee shall be disqualified for
nomination or otherwise not recommended for election to the Board if such
Person is employed by an Affiliate of WCAS except pursuant to clause (ii) of
the first sentence of this Section 4.01(e).

 

(f)            At any time that any Stockholder shall have any
rights of designation under this Section 4.01, the Company and the Stockholders
shall not take any action, after the effectiveness of the Company IPO Charter
and Company IPO Bylaws, to reduce the size of the Board from nine (9) members,
except as may be required by applicable law.

 

SECTION
4.02.      Board Observers.  Upon and after the consummation of the
Company’s initial Public Offering, for so long as the WCAS Stockholders
collectively hold at least five percent (5%) (but less than seven percent (7%))
of the issued and outstanding shares of Common Stock, WCAS shall be entitled to
designate one (1) observer to attend any and all meetings of the Board and any
committees thereof, and for so long as the Gougeon Stockholders collectively
hold at least five percent (5%) (but less than nine seven (7%)) of the issued
and outstanding shares of Common Stock, Gougeon shall be entitled to designate
one (1) observer to attend any and all meetings of the Board and any committees
thereof.  Any such observer shall not
have any voting rights whatsoever.  Any
such observer shall be entitled to receive all notices relating to meetings of
the Board or any committees thereof, as applicable, in the same manner and at
the same time as provided to directors of the Company then in office as well as
any documentation distributed to the directors prior to or at any meeting of
the Board or any committees thereof, as applicable, at the time such materials
are distributed to the directors; provided that the Company is notified
of the identity and address of such observer sufficiently in advance of the
distribution of such materials to enable them to be sent to such observer.  The Company may require WCAS, Gougeon and/or
their respective observers to (i) execute and deliver a confidentiality
agreement reasonably acceptable to the Company prior to delivering any
proprietary or confidential information about the Company to WCAS or Gougeon or
their respective observers and (ii) agree to act in accordance with any
securities trading policy of the Company applicable to its directors.  Notwithstanding anything in this Section 4.02
to the contrary, the Board and its committees may exclude such designee from
any part of a Board or committee meeting and to screen such observer from any
Board or committee materials of a written nature, if such exclusion is
necessary, in the reasonable opinion of reputable outside legal counsel to the
Company, to preserve the Company’s attorney-client privilege.

 

SECTION
4.03.      Board
Committees.  From and
after the date hereof, each of WCAS and Gougeon agrees to cause its designees
to the Board, if any, to vote or otherwise give such director’s consent, to the
extent not prohibited by applicable law, the certificate of incorporation or
the bylaws of the Company then in effect, to the creation and maintenance of:

 

(i)            a Compensation Committee of the Board, consisting of
three (3) directors, one of whom shall be a WCAS Designee, if any, one of whom
shall be a Gougeon Designee, if any, and one of whom shall be an Independent
Director, if any, which Compensation Committee shall approve all grants of
stock options or stock awards to employees of the Company, all increases in
compensation of officers of the Company and all other employee benefits
(including, without limitation, vacation policy, benefit plans, company
automobiles and insurance) granted to officers of the Company;

 

16

 

(ii)           an Audit Committee of the Board, consisting of three
(3) directors, one of whom shall be a WCAS Designee, if any, one of whom shall
be a Gougeon Designee, if any, and one of whom shall be an Independent
Director, if any, which Audit Committee shall review and approve the financial
statements of the Company as audited by the Company’s independent certified
public accountants; and to nominate Independent Directors to serve on the Board
from time to time; provided, however, that the agreement set
forth in this clause (ii) shall cease and be of no effect upon and after the
Company’s initial Public Offering;

 

(iii)          until such time as Gougeon no longer serves on the
Board, a Corporate Development Committee of the Board, consisting of three (3) directors,
one of whom shall be a WCAS Designee, if any, one of whom shall be a Gougeon
Designee, if any, who shall chair the Corporate Development Committee, and one
of whom shall be an Independent Director, if any, which Corporate Development
Committee shall (A) provide guidance and feedback to the Company’s CEO and
conduct, in the first instance, his annual performance review and provide input
to the Board regarding the same, (B) evaluate attainment of personal goals by
the Company’s CEO and review his evaluation of attainment of personal goals by
other executives, and make recommendations to the Compensation Committee of the
Board in respect thereof, (C) provide oversight of human resource functions,
including strategic human resources and succession planning, (D) provide
general oversight of research and development and (E) review in the first
instance the annual strategic plan of management and make recommendations to
the board in regard thereto; and

 

(iv)          any other committee or sub-committee of the Board
that may be mutually deemed by WCAS and Gougeon to be necessary, advisable or
appropriate (including any committee established in connection with the Company’s
initial Public Offering); provided that such committee or sub-committee
consists, to the extent not prohibited by applicable law, of at least one WCAS
Designee, if any, and one Gougeon Designee, if any.

 

In the event that the rules of the Commission or NASDAQ (or any other
securities exchange on which Company Equity Securities are listed) applicable
to the Company limit the number of WCAS Designees or Gougeon Designees, as the
case may be, that can serve on any committee, the parties shall allocate
committee membership among the WCAS Designees and Gougeon Designees in as
equitable a manner as possible, taking into account the relative level of
ownership by the WCAS Stockholders and the Gougeon Stockholders in considering
committee preferences.  Except as may be
required by applicable law, the Board shall not approve any amendment or other
change to the charter of the Corporate Development Committee without the prior
written consent of WCAS and the Gougeon Stockholders.

 

SECTION
4.04.      Reimbursement
of Expenses.  The Company
will pay all out-of-pocket expenses reasonably incurred by any non-employee
director or observer appointed in accordance with Section 4.02 in attending
each meeting of the Board, or any committee thereof.

 

17

 

SECTION 4.05.      Matters to be Voted on by the Board.  In addition to any other approval required by
the Company Pre-IPO Charter, the Company Pre-IPO Bylaws or applicable law, the
Company agrees that, until the effectiveness of the Company IPO Charter and Company
IPO Bylaws, the following matters shall require approval of a majority of the
Board:

 

(i)            approve the annual operating budget of the Company,
modify in any material respect any such budget or take any action that is or is
reasonably likely to be a material variance therefrom;

 

(ii)           approve any Public Offering;

 

(iii)          create or permit to exist any subsidiary of the
Company;

 

(iv)          file for bankruptcy;

 

(v)           approve any joint ventures or other alliances with
an aggregate value in excess of $10,000,000;

 

(vi)          enter into any agreement, contract or understanding
which involves payment by the Corporation in excess of $10,000,000;

 

(vii)         adopt or make a material amendment to any severance
or management equity program;

 

(viii)        any settlement, admission of
liability or other concession arising out of, or related to, the facts and
circumstances discussed in the Frederickson & Byron P.A. Report of
Investigation for AGA Medical Corporation, dated July 13, 2005; provided,
that the Gougeon Designees shall recuse themselves from any such vote;

 

(ix)           approve any of the matters set forth in paragraphs
A.7(b) or (c) of Article Fourth of the Company Pre-IPO Charter that would
require approval of the holders of Series A Preferred Stock and/or Series B
Preferred Stock (as applicable); and

 

(x)            approval of the Company IPO Charter and the Company
IPO Bylaws.

 

SECTION 4.06.      Matters to be Approved by Stockholders.

 

(a)           In
addition to any other approval required by the Company Pre-IPO Charter, Company
Pre-IPO Bylaws or applicable law, the Company agrees that the prior written
approval of each of WCAS (for so long as any WCAS Stockholder holds any Company
Capital Stock) and Gougeon (for so long as any Gougeon Stockholder holds any
Company Capital Stock) shall be necessary to consummate the Company’s initial
Public Offering, including the aggregate number of shares of Common Stock to be
included in such Public Offering and the offering price therefor.

 

(b)           Subject
to Section 4.06(a), each of the Gougeon Stockholders agree to vote or otherwise
give such Stockholder’s consent in respect of all shares of Company Capital
Stock (whether now or hereafter acquired) owned by such Stockholder, and the
Company shall 

 

18

 

take all necessary
and desirable actions within its control (unless otherwise prohibited by
applicable law), in favor of any transaction or series of transactions
previously approved and submitted by the Board which would result in the sale
of all the Company Capital Stock or all or substantially all of the assets of
the Company (including by way merger, consolidation or otherwise) to one or
more Persons who are not Affiliates of WCAS; provided that (i) each of
the WCAS Stockholders shall have voted or otherwise given such Stockholder’s
consent in respect of all shares of Company Capital Stock (whether now or
hereafter acquired) owned by such Stockholder in favor of such transaction or
series of transactions and (ii) the WCAS Stockholders collectively have not
less than twenty-five percent (25%) of the shares of Common Stock (including
Conversion Shares) that the WCAS Stockholders collectively hold as of the date
hereof.

 

(c)           None
of the WCAS Stockholders shall vote to amend the Pre-IPO Charter or Pre-IPO
Bylaws without the prior written consent of Gougeon; provided, however,
immediately prior to the Company’s initial Public Offering, the Stockholders
each shall vote or otherwise give such Stockholder’s consent in respect of all
shares of Company Capital Stock (whether now or hereafter acquired), owned by
such Stockholder, and the Company shall take, to the extent not prohibited by
applicable law, all necessary and desirable actions within its control, to
adopt the Company IPO Charter and to, in the event that the Board fails to adopt
the Company IPO Bylaws, adopt the Company IPO Bylaws.

 

(d)           For
so long as any WCAS Stockholder holds any Company Capital Stock, Gougeon shall
not, and the Company shall cause AGA to not, agree to any extension of the term
of, or any amendment, supplement, waiver or other modification to, the
Consulting Agreement without the prior written consent of WCAS.

 

ARTICLE V.

 

SUBSCRIPTION
RIGHTS

 

SECTION 5.01.      Grant of Subscription Rights.  The Company hereby grants to each Stockholder
the right to purchase an amount of Company Equity Securities to be issued in
any future Eligible Issuance up to such Stockholder’s Proportionate Percentage
of such Eligible Issuance.

 

19

 

SECTION 5.02.      Notice of Eligible Issuance.  The Company shall, before issuing any Company
Equity Securities in an Eligible Issuance, give written notice thereof to each
Stockholder.  Such notice shall specify
the Company Equity Securities the Company proposes to issue, the proposed date
of issuance, the consideration that the Company intends to receive therefor and
all other material terms and conditions of such proposed issuance.  For a period of ten (10) Business Days
following the date of such notice, each Stockholder shall be entitled, by
written notice to the Company, to elect to purchase all or any part of such
Stockholder’s Proportionate Percentage of the Company Equity Securities being
sold in the Eligible Issuance; provided, that if two or more securities
shall be proposed to be sold as a “unit” in an Eligible Issuance, any such
election must relate to such unit of securities.  To the extent that elections pursuant to this
Section 5.02 shall not be made with respect to any Company Equity Securities
included in an Eligible Issuance within such ten (10) Business Day period, then
the Company may issue such Company Equity Securities, but only for
consideration not less than, and otherwise on terms no less favorable to the
Company than, those set forth in the Company’s notice and only within ninety
(90) days after the end of such ten (10) Business Day period.  In the event that any such offer is accepted
by one or more Stockholders, the Company shall sell to such Stockholder or
Stockholders, and such Stockholder or Stockholders shall purchase from the Company,
for the consideration and on the terms set forth in the notice as aforesaid,
the securities that such Stockholder or Stockholders shall have elected to
purchase and the Company may sell the balance, if any, of the Company Equity
Securities it proposed to sell in such Eligible Issuance in accordance with the
immediately preceding sentence.

 

ARTICLE VI.

 

INFORMATION
RIGHTS

 

The Company shall provide to each of WCAS and
Gougeon for so long as the WCAS Stockholders (in the case of WCAS) and the
Gougeon Stockholders (in the case of Gougeon) have, in each case, collectively
a Proportionate Percentage of at least five percent (5%), by electronic means
or otherwise, unless otherwise publicly available (a) a final audited balance
of the Company as at the end of the most recent fiscal year and the related
audited consolidated statements of income, cash flow and changes in
stockholders’ equity of the Company for the fiscal year then ended, accompanied
by any notes thereto and the report of the Company’s independent auditors,
within ninety (90) days of the end of each fiscal year of the Company, (b) unaudited
consolidated financial statements (including a balance sheet, statements of
income, cash flow and changes in stockholders’ equity) for each of the
Company’s first three (3) fiscal quarters within forty-five (45) days of the
end of each such quarter, each prepared in accordance with generally accepted
accounting principles, and (c) any other consolidated financial statements and
notices provided to the administrative agent pursuant to the Credit Agreement
(as defined in the Company Pre-IPO Charter). 
Without limiting the foregoing, from and after the date hereof, on
reasonable prior written notice, the Company shall make its representatives
reasonably available to (i) WCAS, for so long as the WCAS Stockholders have
collectively a Proportionate Percentage of at least five percent (5%), and (ii)
Gougeon, if Gougeon is no longer serving as the Chief Executive Officer of the
Company and for so long as the Gougeon Stockholders have collectively a
Proportionate Percentage of at least five percent (5%), in either case, to
discuss the business, results of operations and other matters pertaining to the
Company.  For so long as WCAS and Gougeon
continue to have the rights afforded to them 

 

20

 

under this Article VI, the
Company may require WCAS and/or Gougeon, as the case may be, to (x) execute and
deliver a confidentiality agreement reasonably acceptable to the Company and (y)
agree to act in accordance with any securities trading policy of the Company
applicable to its directors prior to delivering any proprietary or confidential
information about the Company to WCAS or Gougeon, as applicable.

 

ARTICLE VII.

 

REPRESENTATIONS
AND WARRANTIES

 

SECTION 7.01.      Representations and Warranties by the
Stockholders.  Each Stockholder,
severally and not jointly, represents and warrants to the Company and the other
Stockholders as follows:

 

(a)           The execution, delivery and
performance of this Agreement by such Stockholder will not violate any
provision of applicable law, any order of any court or other agency of
government, the certificate or articles of incorporation, bylaws, operating
agreement, partnership agreement or other organizational documents of such
Stockholder or any provision of any indenture, agreement or other instrument to
which such Stockholder or any of such Stockholder’s properties or assets is
bound, or conflict with, result in a breach of or constitute (with due notice
or lapse of time or both) a default under any such indenture, agreement or
other instrument.

 

(b)           This Agreement has been duly executed
and delivered by such Stockholder, and, when executed by the other parties
hereto, will constitute the legal, valid and binding obligation of such
Stockholder, enforceable against such Stockholder in accordance with its terms.

 

SECTION 7.02.      Representations and Warranties by the
Company.  The Company represents and
warrants to each Stockholder as follows:

 

(a)           The execution, delivery and
performance of this Agreement by the Company will not violate any provision of
applicable law, any order of any court or other agency of government, the
Company Pre-IPO Charter, Company Pre-IPO Bylaws or any provision of any
material indenture, agreement or other instrument to which the Company or any
of its properties or assets is bound, or conflict with, result in a breach of,
or constitute (with due notice or lapse of time or both) a default under, any
such indenture, agreement or other instrument.

 

(b)           This Agreement has been duly executed
and delivered by the Company, and, when executed by the other parties hereto,
will constitute the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms.

 

21

 

ARTICLE VIII.

 

MISCELLANEOUS

 

SECTION 8.01.      Severability.  In the event that any one or more of the
provisions contained in this Agreement or in any other instrument referred to
herein shall, for any reason, be held to be invalid, illegal or unenforceable,
such illegality, invalidity or unenforceability shall not affect any other
provisions of this Agreement.

 

SECTION 8.02.      Benefits of Agreement.  Nothing expressed by or mentioned in this
Agreement is intended or shall be construed to give any Person other than the
parties hereto, Bank of America, N.A. (for purposes of Section 8.05 only) and
their respective successors and permitted assigns any legal or equitable right,
remedy or claim under or in respect of this Agreement or any provision herein
contained, this Agreement and all conditions and provisions hereof being
intended to be and being for the sole and exclusive benefit of the parties
hereto and their respective successors and permitted assigns.  Except as expressly permitted hereby, each
party’s rights and obligations under this Agreement shall not be subject to
assignment or delegation by any party hereto, and any attempted assignment or
delegation in violation hereof shall be null and void ab initio.

 

SECTION 8.03.      Notice of Transfer.  To the extent that any Stockholder shall
Transfer any Company Equity Securities, notice of which Transfer is not
otherwise required to be delivered to the Stockholders hereunder, such
Stockholder shall, within three (3) days following consummation of such
Transfer, deliver notice thereof to the Company and WCAS; provided, however,
following the consummation of the Company’s initial Public Offering, any
Stockholder seeking to Transfer any Company Equity Securities shall notify and
consult with the Coordination Committee prior to effecting such Transfer or
entering into any definitive agreement with respect to such Transfer.

 

SECTION 8.04.      Notices.  Any notice or communication required or
permitted hereunder shall be in writing and shall be delivered personally,
delivered by nationally recognized overnight courier service, sent by certified
or registered mail, postage prepaid, or sent by facsimile (subject to
electronic confirmation of such facsimile transmission).  Any such notice or communication shall be
deemed to have been delivered (i) when delivered, if personally delivered, (ii)
one (1) Business Day after it is deposited with a nationally recognized
overnight courier service, if sent by nationally recognized overnight courier
service, (iii) the day of sending, if sent by facsimile prior to 5:00 p.m. (New
York City time) on any Business Day or the next succeeding Business Day if sent
by facsimile after 5:00 p.m. (New York City time) on any Business Day or on any
day other than a Business Day or (iv) five (5) Business Days after the date of
mailing, if mailed by certified or registered mail, postage prepaid, in each
case, to the following address or facsimile number, or to such other address or
addresses or facsimile number or numbers as such party may subsequently
designate to the other parties by notice given hereunder:

 

if
to the Company, to it at:

 

AGA
Medical Holdings, Inc.

5050
Nathan Lane North

Plymouth,
MN 55442

Facsimile:  (763) 513-9226

 

22

 

Attention:
Chief Executive Officer

General
Counsel

 

with
a copy to:

 

Welsh,
Carson, Anderson & Stowe IX, L.P.

320
Park Avenue, Suite 2500

New
York, NY 10022

Facsimile:  (212) 893-9559

Attention:  Sean M. Traynor

 

and

 

Franck
L. Gougeon

4729
Annaway Drive

Edina,
MN 55436

Facsimile
(763) 521-7143

 

with
an additional copy to:

 

Simpson
Thacher & Bartlett LLP

425
Lexington Avenue

New
York, NY 10017

Facsimile:  (212) 455-2502

Attention:  Kenneth B. Wallach, Esq.

 

and

 

Ropes
& Gray LLP

1211
Avenue of the Americas

New
York, NY 10036

Facsimile:  (646) 728-1513

Attention:  Othon A. Prounis, Esq.

 

and

 

Moss
& Barnett, a Professional Association

90
South Seventh Street, Suite 4800

Minneapolis,
MN 55402

Facsimile:
(612) 877-5999

Attention:  Richard J. Kelber, Esq./Christopher D. Stall,
Esq.

 

if
to any Stockholder, to such Stockholder at the address set forth underneath
such Stockholder’s name on Schedule I hereto.

 

SECTION 8.05.      Entire Agreement; Modification.  This Agreement constitutes the entire
agreement among the parties with respect to the subject matter hereof and
supersedes all prior agreements and understandings, both oral and written,
among any of the 

 

23

 

parties hereto with respect to the subject matter hereof, including the
Original Agreement and any other agreements among the Company and any of its
stockholders providing for rights of such stockholders (in their capacity as
stockholders) with respect to shares of capital stock of the Company (or
AGA).  This Agreement may not be amended
or modified except by an instrument in writing signed by the Company, WCAS and
the Gougeon Stockholders holding not less than a majority of the shares of
Common Stock (including Conversion Shares) held by the Gougeon Stockholders; provided,
that no provision of this Agreement may be modified or amended in a manner
materially adverse to any Stockholder (in its capacity as a Stockholder
hereunder) if such modification or amendment adversely affects such Stockholder
disproportionately relative to the other Stockholders (disregarding for such
purposes differences resulting solely from the amount of Company Equity
Securities held by each Stockholder) except with the written consent of such
adversely and disproportionately effected Stockholder; provided, further,
that Permitted Transferees may be added as parties to this Agreement.  Except as otherwise provided herein, any
waiver of any provision of this Agreement must be in a writing signed by the
party against whom enforcement of such waiver is sought.  The Company, WCAS and the Gougeon
Stockholders further agree not to amend Section 2.01 if such amendment would
have a material adverse effect on the security interest of Bank of America,
N.A. (and the rights attendant thereto) in the shares of Common Stock pledged
to it by the Gougeon LLC without first obtaining the written consent of Bank of
America, N.A.

 

SECTION 8.06.      Covenants Bind Successors and Assigns.  All the covenants, stipulations, promises and
agreements in this Agreement contained by or on behalf of any party shall bind
its successors and permitted assigns, whether so expressed or not.

 

SECTION 8.07.      Duration of Agreement.  This Agreement shall terminate (i) with
respect to the WCAS Stockholders, upon the Transfer by the WCAS Stockholders to
Persons who do not become parties hereto such that the WCAS Stockholders
collectively hold less than 5% of the voting power of the outstanding shares of
Company Capital Stock, (ii) with respect to the Gougeon Stockholders, upon the
Transfer by the Gougeon Stockholders to Persons who do not become parties
hereto such that the Gougeon Stockholders collectively hold less than 5% of the
voting power of the outstanding shares of Company Capital and (iii) with
respect to all the Stockholders, upon any sale of all then issued and
outstanding Company Equity Securities (including by way of merger,
consolidation or otherwise) in exchange for equity securities of a Person who
has registered the class of such equity securities under Section 12 of the
Exchange Act.

 

SECTION 8.08.      Initial Public Offering Expenses.  As soon as practicable following the
consummation of the Company’s initial Public Offering, the Company shall
reimburse each of the Gougeon Stockholders and WCAS for all reasonable fees and
disbursements of their respective legal counsel incurred in connection with the
Company’s initial Public Offering (including in connection with prior efforts
of the Company to effect an initial Public Offering).

 

SECTION 8.09.      Counterparts.  This Agreement may be executed in any number
of counterparts, and each such counterpart hereof shall be deemed to be an
original instrument, but all such counterparts together shall constitute but
one agreement.

 

24

 

SECTION 8.10.      Changes in Common Stock.  If, and as often as, there are any changes in
Common Stock by way of stock split, stock dividend, combination or reclassification,
or through merger, consolidation, reorganization or recapitalization, or by any
other means, the Stockholders and the Company shall cause appropriate
adjustment to be made in the provisions hereof as may be required so that the
rights and privileges granted hereby shall continue with respect to the Common
Stock as so changed.

 

SECTION 8.11.      Governing Law.  This Agreement, the rights of the parties and
all actions, claims or suits arising in whole or in part under or in connection
herewith, will be governed by and construed in accordance with the domestic
substantive laws of the State of Delaware (regardless of the laws that might
otherwise govern under applicable principles or rules of conflicts of law
to the extent such principles or rules are not mandatorily applicable by
statute and would require the application of the laws of another jurisdiction).

 

SECTION 8.12.      Jurisdiction; Venue; Service of Process.

 

(a)           Jurisdiction.  Each party to
this Agreement, by its execution hereof, (i) hereby irrevocably submits to
the exclusive jurisdiction of the state courts of the State of New York or the
United States District Court located in New York County in the State of New
York for the purpose of any action, claims or suit between the parties arising
in whole or in part under or in connection with this Agreement, (ii) hereby
waives to the extent not prohibited by applicable law, and agrees not to
assert, by way of motion, as a defense or otherwise, in any such action, claim
or suit, any claim that it is not subject personally to the jurisdiction of the
above-named courts, that its property is exempt or immune from attachment or
execution, that any such action, claim or suit brought in one of the
above-named courts should be dismissed on grounds of forum non
conveniens, should be transferred or removed to any court other than
one of the above-named courts, or should be stayed by reason of the pendency of
some other proceeding in any other court other than one of the above-named
courts, or that this Agreement or the subject matter hereof may not be enforced
in or by such court and (iii) hereby agrees not to commence any such
action, claim or suit other than before one of the above-named courts.  Notwithstanding the previous sentence a party
may commence any action, claim or suit in a court other than the above-named
courts solely for the purpose of enforcing an order or judgment issued by one
of the above-named courts.

 

(b)           Venue.  Each party
agrees that for any action, claim or suit between the parties arising in whole
or in part under or in connection with this Agreement, such party bring
actions, claims and suits only in courts located in New York County in the
State of New York.  Each party further
waives any claim and will not assert that venue should properly lie in any
other location within the selected jurisdiction.

 

(c)           Service of Process.  Each party
hereby (i) consents to service of process in any action, claim or suit
between the parties arising in whole or in part under or in connection with
this Agreement in any manner permitted by New York law, (ii) agrees that
service of process made in accordance with clause (i) or made by
registered or certified mail, return receipt requested, at its address
specified pursuant to Section 8.04, will constitute good and valid service
of process in any such action, claim or suit and (iii) waives and agrees
not to assert (by way of motion, as a defense, or otherwise) in any such
action, claim or suit any claim that service of 

 

25

 

process made in accordance with clause (i) or (ii) does not
constitute good and valid service of process.

 

SECTION 8.13.      Specific Performance.  Each of the parties acknowledges and agrees
that the other parties would be damaged irreparably in the event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached or violated. 
Accordingly, each of the parties agrees that, without posting bond or
other undertaking, the other parties will be entitled to an injunction or
injunctions to prevent breaches or violations of the provisions of this
Agreement and to enforce specifically this Agreement and the terms and
provisions hereof in any action, claim or suit instituted in any court of the
United States or any state thereof having jurisdiction over the parties and the
matter in addition to any other remedy to which it may be entitled, at law or
in equity.  Each party further agrees
that, in the event of any action for specific performance in respect of such
breach or violation, it will not assert that the defense that a remedy at law
would be adequate.

 

SECTION 8.14.      WAIVER OF JURY TRIAL.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE
LAW THAT CANNOT BE WAIVED, THE PARTIES HEREBY WAIVE, AND COVENANT THAT THEY
WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL
BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION
WITH THIS AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE. 
THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH
WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR
AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN
ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT WILL INSTEAD
BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A
JURY.

 

[Signature Pages to Follow]

 

26

 

IN WITNESS WHEREOF, the
parties hereto have caused this Second Amended and Restated Stockholders Agreement
to be duly executed as of the day and year first above written.

 

 

	
   

  	
  AGA MEDICAL HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald E. Lund

  
	
   

  	
   

  	
  Name: 

  	
  Ronald E. Lund

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice President, General Counsel and Secretary

  

 

[Signature
Page to Second Amended and Restated Stockholders Agreement of AGA Medical
Holdings, Inc.]

 

 

	
   

  	
  WELSH, CARSON, ANDERSON & STOWE IX, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WCAS IX Associates LLC,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean M. Traynor

  
	
   

  	
   

  	
  Name: Sean M. Traynor

  
	
   

  	
   

  	
  Title: Managing Member

  

 

[Signature
Page to Second Amended and Restated Stockholders Agreement of AGA Medical
Holdings, Inc.]

 

 

	
   

  	
  /s/ Franck L. Gougeon

  
	
   

  	
  Franck L. Gougeon

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOUGEON SHARES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Franck L. Gougeon

  
	
   

  	
   

  	
  Franck L. Gougeon

  
	
   

  	
   

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE FRANCK L. GOUGEON REVOCABLE TRUST UNDER AGREEMENT DATED JUNE 28,
  2006

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Franck L. Gougeon

  
	
   

  	
   

  	
  Name: Franck L. Gougeon

  
	
   

  	
   

  	
  Title: Trustee

  

 

[Signature
Page to Second Amended and Restated Stockholders Agreement of AGA Medical
Holdings, Inc.]

 

 

SCHEDULE I

 

Schedule
of Stockholders

 

The WCAS
Stockholders:

Welsh,
Carson, Anderson & Stowe IX, L.P.

WCAS
Capital Partners IV, L.P.

Patrick
Welsh TTEE U/A DTD 5/9/05 Patrick Welsh Revocable Trust

Patrick
Welsh 2004 Irrevocable Trust

Russell
L. Carson

Bruce K.
Anderson TTEE U/A DTD 11/9/04 Bruce K. Anderson Living Trust

Bruce K.
Anderson 2004 Irrevocable Trust

Thomas
E. McInerney

Robert
A. Minicucci

Anthony
J. de Nicola

De
Nicole Holdings LP

Paul B.
Queally

P. Brian
Queally Jr. Educational Trust U/A DTD 6/11/98

Erin F.
Queally Educational Trust U/A DTD 6/11/98

Sean P.
Queally Educational Trust U/A DTD 6/11/98

Jonathan
M. Rather IRA Charles Schwab & Co., Inc. Custodian

Sanjay
Swani

D. Scott
Mackesy

John D.
Clark

James R.
Matthews

John
Almeida, Jr.

Sean M.
Traynor

WCAS
Profit Sharing Plan

Michal
E. Donovan

Eric J.
Lee

Brian T.
Regan

Lucas
Garman

David
Mintz

Joelle
Kayden

WCAS
Profit Sharing Plan

WCAS
Management Corporation

Thomas
Scully

Address
for Notices:

c/o
Welsh Carson Anderson & Stowe

320
Park Avenue, Suite 2500

New
York, NY 10022-6815

Attention:
Sean Traynor

Facsimile:
212-893-9566

 

Lauren
Melkus

Address
for Notices:

2
Fifth Avenue

New
York, NY 10011

Facsimile:
212-921-2290

 

With
a copy to:

Welsh
Carson Anderson & Stowe

 

[Second Amended and Restated Stockholders
Agreement of AGA Medical Holdings, Inc.]

 

 

320
Park Avenue, Suite 2500

New
York, NY 10022-6815

Attention:
Sean M. Traynor

Facsimile:
212-893-9566

 

Suzanne
Bellet Price

Stacey
Bellet

Address
for Notices:

125
East 72nd Street, Apt. 11-D

New
York, NY 10021

Attention:
Dave Bellet

Facsimile:
212-439-6171

 

With
a copy to:

Welsh
Carson Anderson & Stowe

320
Park Avenue, Suite 2500

New
York, NY 10022-6815

Attention:
Sean M. Traynor

Facsimile:
212-893-9566

 

Select
Global Investors, L.P.

Address
for Notices:

4718
Old Gettysburg Road, Suite 405

Mechanicsburg,
PA 17055

Attention:
Rocco A. Ortenzio

Facsimile:
717-972-1050

 

With
a copy to:

Welsh
Carson Anderson & Stowe

320
Park Avenue, Suite 2500

New
York, NY 10022-6815

Attention:
Sean M. Traynor

Facsimile:
212-893-9566

 

Jeffrey
Jay

Address
for Notices:

c/o
Great Point Partners, LLC

165
Mason Street, 3rd Floor

Greenwich,
CT 06830

Attention:
Jeffrey Jay

Facsimile:
203-971-3320

 

With
a copy to:

Welsh
Carson Anderson & Stowe

320
Park Avenue, Suite 2500

New
York, NY 10022-6815

Attention:
Sean M. Traynor

Facsimile:
212-893-9566

 

The
Gougeon Stockholders:

Franck
L. Gougeon

Gougeon Shares, LLC

The Franck L. Gougeon Revocable Trust

Address
for Notices:

4729
Annaway Drive

Edina, MN 55436

Facsimile number: 763-521-7143EXHIBIT 4.5

 

INTERLINE
BRANDS, INC.

A DELAWARE CORPORATION

 

AND

 

THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A.

 

TRUSTEE

 

FORM OF
SENIOR DEBT INDENTURE

 

GUARANTEED
TO THE EXTENT SET FORTH HEREIN

BY THE GUARANTORS NAMED HEREIN

 

DATED AS OF
                        ,
20   

 

 

INTERLINE BRANDS, INC.

 

Reconciliation and tie between Trust Indenture Act of 1939

and Indenture, dated as of
                  ,
20  

 

	
  TRUST INDENTURE ACT SECTION

  	
   

  	
  INDENTURE SECTION

  
	
   

  	
   

  	
   

  
	
  310(a)

  	
  (1)

  	
   

  	
  6.09

  
	
  (a)

  	
  (2)

  	
   

  	
  6.09

  
	
  (a)

  	
  (3)

  	
   

  	
  Not
  Applicable

  
	
  (a)

  	
  (4)

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
   

  	
  6.08,
  6.10

  
	
  311(a)

  	
   

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
   

  	
  6.13

  
	
  (b)

  	
  (2)

  	
   

  	
  7.03(a),
  7.03(b)

  
	
  312(a)

  	
   

  	
   

  	
  7.01,
  7.02(a)

  
	
  (b)

  	
   

  	
   

  	
  7.02(b)

  
	
  (c)

  	
   

  	
   

  	
  7.02(c)

  
	
  313(a)

  	
   

  	
   

  	
  7.03(a)

  
	
  (b)

  	
   

  	
   

  	
  7.03(a)

  
	
  (c)

  	
   

  	
   

  	
  7.03(a),
  7.03(b)

  
	
  (d)

  	
   

  	
   

  	
  7.03(b)

  
	
  314(a)

  	
   

  	
   

  	
  7.04

  
	
  (b)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (c)

  	
  (1)

  	
   

  	
  1.02

  
	
  (c)

  	
  (2)

  	
   

  	
  1.02

  
	
  (c)

  	
  (3)

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
   

  	
  1.02

  
	
  315(a)

  	
   

  	
   

  	
  6.01(a)

  
	
  (b)

  	
   

  	
   

  	
  6.02,
  7.03(a)

  
	
  (c)

  	
   

  	
   

  	
  6.01(b)

  
	
  (d)

  	
   

  	
   

  	
  6.01(c)

  
	
  (d)

  	
  (1)

  	
   

  	
  6.01(a),
  6.01(c)

  
	
  (d)

  	
  (2)

  	
   

  	
  6.01(c)

  
	
  (d)

  	
  (3)

  	
   

  	
  6.01(c)

  
	
  (e)

  	
   

  	
   

  	
  5.14

  
	
  316(a)

  	
  (1)(A)

  	
   

  	
  5.12

  
	
  (a)

  	
  (1)(B)

  	
   

  	
  5.02,
  5.13

  
	
  (a)

  	
  (2)

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
   

  	
  5.08

  
	
  (c)

  	
   

  	
   

  	
  1.04(e)

  
	
  317(a)

  	
  (1)

  	
   

  	
  5.03

  
	
  (a)

  	
  (2)

  	
   

  	
  5.04

  
	
  (b)

  	
   

  	
   

  	
  10.05

  
	
  318(a)

  	
   

  	
   

  	
  1.07

  

 

i

 

TABLE OF
CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  DEFINITIONS
  AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  Definitions

  	
  1

  
	
   

  	
  Compliance
  Certificates and Opinions

  	
  5

  
	
   

  	
  Form of
  Documents Delivered to Trustee

  	
  5

  
	
   

  	
  Acts of
  Holders

  	
  5

  
	
   

  	
  Notices,
  Etc.,

  	
  6

  
	
   

  	
  Notice to
  Holders; Waiver

  	
  6

  
	
   

  	
  Conflict
  with Trust Indenture Act

  	
  6

  
	
   

  	
  Effect of Headings
  and Table of Contents

  	
  6

  
	
   

  	
  Successors
  and Assigns

  	
  6

  
	
   

  	
  Separability
  Clause

  	
  7

  
	
   

  	
  Benefits
  of Indenture

  	
  7

  
	
   

  	
  Governing
  Law

  	
  7

  
	
   

  	
  Legal
  Holidays

  	
  7

  
	
   

  	
  No
  Recourse Against Others

  	
  7

  
	
   

  	
  Judgment
  Currency

  	
  7

  
	
   

  	
  Counterparts

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECURITY
  FORMS

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  Forms
  Generally

  	
  7

  
	
  Section 2.02

  	
  Form of
  Face of Security

  	
  7

  
	
   

  	
  Form of
  Reverse of Security

  	
  8

  
	
   

  	
  Form of
  Trustee’s Certificate of Authentication

  	
  11

  
	
   

  	
  Securities
  in Global Form

  	
  11

  
	
   

  	
  Form of
  Legend for the Securities in Global Form

  	
  12

  
	
   

  	
   

  	
   

  
	
  THE
  SECURITIES

  	
  12

  
	
   

  	
   

  	
   

  
	
   

  	
  Amount Unlimited;
  Issuable in Series

  	
  12

  
	
   

  	
  Denominations

  	
  14

  
	
   

  	
  Execution,
  Authentication, Delivery and Dating

  	
  14

  
	
   

  	
  Temporary
  Securities

  	
  15

  
	
   

  	
  Registration,
  Registration of Transfer and Exchange

  	
  15

  
	
   

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  16

  
	
   

  	
  Payment of
  Interest; Interest Rights Preserved

  	
  16

  
	
   

  	
  Persons
  Deemed Owners

  	
  17

  
	
   

  	
  Cancellation

  	
  17

  
	
   

  	
  Computation
  of Interest

  	
  17

  
	
   

  	
  CUSIP
  Number

  	
  17

  
	
   

  	
  Wire
  Transfers

  	
  17

  
	
   

  	
   

  	
   

  
	
  SATISFACTION
  AND DISCHARGE

  	
  18

  
	
   

  	
   

  	
   

  
	
   

  	
  Satisfaction
  and Discharge of Indenture

  	
  18

  
	
   

  	
  Application
  of Trust Money

  	
  18

  
	
   

  	
  Application
  to a Specific Series of Securities

  	
  18

  
	
   

  	
   

  	
   

  
	
  REMEDIES

  	
  18

  
	
   

  	
   

  	
   

  
	
   

  	
  Events of
  Default

  	
  18

  
	
   

  	
  Acceleration
  of Maturity; Rescission and Annulment

  	
  19

  
	
   

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
  20

  
	
   

  	
  Trustee
  May File Proofs of Claim

  	
  20

  
	
   

  	
  Trustee
  May Enforce Claims Without Possession of Securities

  	
  20

  
	
   

  	
  Application
  of Money Collected

  	
  20

  
	
   

  	
  Limitation
  on Suits

  	
  21

  
	
   

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest

  	
  21

  
	
   

  	
  Restoration
  of Rights and Remedies

  	
  21

  
	
   

  	
  Rights and
  Remedies Cumulative

  	
  21

  
	
   

  	
  Delay or
  Omission Not Waiver

  	
  21

  
	
   

  	
  Control by
  Holders

  	
  21

  
	
   

  	
  Waiver of
  Past Defaults

  	
  22

  
	
   

  	
  Undertaking
  for Costs

  	
  22

  

 

ii

 

	
  THE
  TRUSTEE

  	
  22

  
	
   

  	
   

  	
   

  
	
   

  	
  Certain
  Duties and Responsibilities of the Trustee

  	
  22

  
	
   

  	
  Notice of
  Defaults

  	
  22

  
	
   

  	
  Certain
  Rights of Trustee

  	
  22

  
	
   

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
  23

  
	
   

  	
  May Hold
  Securities

  	
  23

  
	
   

  	
  Money Held
  in Trust

  	
  23

  
	
   

  	
  Compensation
  and Reimbursement

  	
  23

  
	
   

  	
  Disqualification;
  Conflicting Interests

  	
  23

  
	
   

  	
  Corporate
  Trustee Required; Eligibility

  	
  24

  
	
   

  	
  Resignation
  and Removal; Appointment of Successor

  	
  24

  
	
   

  	
  Acceptance
  of Appointment by Successor

  	
  24

  
	
   

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
  25

  
	
   

  	
  Preferential
  Collection of Claims Against Company

  	
  25

  
	
   

  	
  Appointment
  of Authenticating Agent

  	
  25

  
	
   

  	
  Compliance
  with Tax Laws

  	
  26

  
	
   

  	
   

  	
   

  
	
  HOLDERS’
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
  26

  
	
   

  	
   

  	
   

  
	
   

  	
  Company to
  Furnish Trustee Names and Addresses of Holders

  	
  26

  
	
   

  	
  Preservation
  of Information; Communications to Holders

  	
  26

  
	
   

  	
  Reports by
  Trustee

  	
  27

  
	
   

  	
  Reports by
  Company

  	
  27

  
	
   

  	
   

  	
   

  
	
  CONSOLIDATION,
  MERGER, LEASE, SALE OR TRANSFER

  	
  28

  
	
   

  	
   

  	
   

  
	
   

  	
  When
  Company May Merge, Etc.

  	
  28

  
	
   

  	
  Opinion of
  Counsel

  	
  28

  
	
   

  	
  Successor
  Corporation Substituted

  	
  28

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL
  INDENTURES

  	
  28

  
	
   

  	
   

  	
   

  
	
   

  	
  Supplemental
  Indentures Without Consent of Holders

  	
  28

  
	
   

  	
  Supplemental
  Indentures with Consent of Holders

  	
  29

  
	
   

  	
  Execution
  of Supplemental Indentures

  	
  29

  
	
   

  	
  Effect of
  Supplemental Indentures

  	
  29

  
	
   

  	
  Conformity
  with Trust Indenture Act

  	
  30

  
	
   

  	
  Reference
  in Securities to Supplemental Indentures

  	
  30

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
  30

  
	
   

  	
   

  	
   

  
	
   

  	
  Payments
  of Securities

  	
  30

  
	
   

  	
  Maintenance
  of Office or Agency

  	
  30

  
	
   

  	
  Compliance
  Certificates

  	
  30

  
	
   

  	
  Waiver of
  Stay, Extension or Usury Laws

  	
  30

  
	
   

  	
  Money for
  Securities Payments to Be Held in Trust

  	
  30

  
	
   

  	
  Waiver of
  Certain Covenants

  	
  31

  
	
   

  	
   

  	
   

  
	
  REDEMPTION
  OF SECURITIES

  	
  31

  
	
   

  	
   

  	
   

  
	
   

  	
  Applicability
  of Article

  	
  31

  
	
   

  	
  Election
  to Redeem; Notice to Trustee

  	
  31

  
	
   

  	
  Selection
  by Trustee of Securities to Be Redeemed

  	
  31

  
	
   

  	
  Notice of
  Redemption

  	
  32

  
	
   

  	
  Deposit of
  Redemption Price

  	
  32

  
	
   

  	
  Securities
  Payable on Redemption Date

  	
  32

  
	
   

  	
  Securities
  Redeemed in Part

  	
  32

  
	
   

  	
   

  	
   

  
	
  SINKING
  FUNDS

  	
  32

  
	
   

  	
   

  	
   

  
	
   

  	
  Applicability
  of Article

  	
  32

  
	
   

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
  33

  
	
   

  	
  Redemption
  of Securities for Sinking Fund

  	
  33

  
	
   

  	
   

  	
   

  
	
  DEFEASANCE
  AND COVENANT DEFEASANCE

  	
  33

  
	
   

  	
   

  	
   

  
	
   

  	
  Applicability
  of Article; Company’s Option to Effect Defeasance or Covenant Defeasance

  	
  33

  
	
   

  	
  Defeasance
  and Discharge

  	
  33

  
	
   

  	
  Covenant
  Defeasance

  	
  33

  
	
   

  	
  Conditions
  to Defeasance or Covenant Defeasance

  	
  33

  
	
   

  	
  Deposited
  Money and Government Obligations To Be Held in Trust

  	
  34

  
	
   

  	
  Reinstatement

  	
  34

  
	
   

  	
   

  	
   

  
	
  GUARANTEES

  	
  35

  
	
   

  	
   

  	
   

  
	
   

  	
  Guarantee

  	
  35

  

 

iii

 

INDENTURE, dated as of
                                ,
20  , between INTERLINE BRANDS, INC., a Delaware corporation (herein
called the “COMPANY”), the GUARANTORS listed on Schedule 1 hereto (herein
called the “GUARANTORS”) and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee (herein called the “TRUSTEE”).

 

RECITALS OF
THE COMPANY

 

The Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of its senior unsecured debentures, notes or other
evidences of indebtedness (herein called the “SECURITIES”), to be issued in one
or more series as in this Indenture provided.

 

All things necessary to make
this Indenture a valid agreement of the Company, in accordance with its terms,
have been done.

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE 1

 

DEFINITIONS
AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01           Definitions.
For all purposes of this Indenture, except as otherwise expressly provided or
unless the context otherwise requires:

 

(1) the
terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular;

 

(2) all
other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, or defined by Commission rule and not
otherwise defined herein, have the meanings assigned to them therein;

 

(3) all
accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP;

 

(4) the
word “INCLUDING” (and with correlative meaning “INCLUDE”) means including,
without limiting the generality of, any description preceding such term; and

 

(5) the
words “HEREIN,” “HEREOF” and “HEREUNDER” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

 

“ACT,” when used with respect
to any Holder, has the meaning specified in Section 1.04.

 

“AFFILIATE” of any specified
Person means any other Person directly or indirectly controlling or controlled
by or under direct or indirect common control with such specified Person. For
purposes of this definition, “CONTROL” (including, with correlative meanings,
the terms “CONTROLLING,” “CONTROLLED BY” and “UNDER COMMON CONTROL WITH”), as
used with respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise. For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” shall have correlative
meanings.

 

“AUTHENTICATING AGENT” means
any Person authorized by the Trustee to act on behalf of the Trustee to
authenticate Securities.

 

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

 

“BOARD OF DIRECTORS” means
the board of directors of the Company; provided, however, that when the context
refers to actions or resolutions of the Board of Directors, then the term “BOARD
OF DIRECTORS” shall also mean any duly authorized committee of the Board of
Directors of the Company authorized to act with respect to any particular
matter to exercise the power of the Board of Directors of the Company.

 

“BOARD RESOLUTION” means a
copy of a resolution certified by the Secretary or an Assistant Secretary of
the Company to have been duly adopted by the Board of Directors and to be in
full force and effect on the date of such certification, and delivered to the
Trustee.

 

“BUSINESS DAY,” when used
with respect to any Place of Payment or any other particular location referred
to in this Indenture or in the Securities of any series, means each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in that Place of Payment are authorized or obligated by law or
regulation to close.

 

1

 

“CAPITAL STOCK” means, with
respect to any Person, any and all shares, interests, participations, warrants,
rights, options or other equivalents (however designated) of capital stock or
any other equity interest of such Person, including each class of common stock
and preferred stock.

 

“COMMISSION” means the
Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act, or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such
duties at such time.

 

“COMPANY” means the Person
named as the “Company” in the first paragraph of this Indenture until a
successor corporation or other entity shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Company” shall mean
such successor corporation.

 

“COMPANY REQUEST” or “COMPANY
ORDER” means a written request or order signed in the name of the Company by
any two Officers, at least one of whom must be its Chairman of the Board, its
Chief Executive Officer, its President, its Chief Financial Officer, its Chief
Accounting Officer, its Treasurer, an Assistant Treasurer or its Controller,
and delivered to the Trustee.

 

“CORPORATE TRUST OFFICE”
means the office of the Trustee at which at any particular time its corporate
trust business shall be principally administered, which office at the date
hereof is located at The Bank of New York Mellon Trust Company, N.A., 10161
Centurion Parkway, Jacksonville, FL 32256; Attn: Corporate Trust
Administration.

 

“COVENANT DEFEASANCE” has the
meaning specified in Section 13.03.

 

“CURRENCY UNIT” or “CURRENCY
UNITS” shall mean any composite currency.

 

“CUSTODIAN” means any
receiver, custodian, trustee, assignee, liquidator, sequestrator or similar
official under any Bankruptcy Law.

 

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

 

“DEFAULTED INTEREST” has the
meaning specified in Section 3.07.

 

“DEFEASANCE” has the meaning
specified in Section 13.02.

 

“DEPOSITARY” means, with
respect to the Securities of any series issuable or issued in whole or in part
in the form of one or more global Securities, the Person designated as
Depositary by the Company pursuant to Section 3.01 until a successor
Depositary shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Depositary” shall mean or include each Person who is
then a Depositary hereunder, and if at any time there is more than one such
Person, “Depositary” shall mean the Depositary with respect to the Securities
of that series.

 

“DOLLARS” and “$” means
lawful money of the United States of America.

 

“EVENT OF DEFAULT” has the
meaning specified in Section 5.01.

 

“EXCHANGE ACT” means the
Securities Exchange Act of 1934, as amended from time to time, and the rules and
regulations promulgated thereunder.

 

“GAAP” means such accounting
principles as are generally accepted in the United States of America which are
in effect on the date hereof.

 

“GUARANTEE” means the
guarantee by any Guarantor of the obligations under this Indenture.

 

“HOLDER” or “SECURITYHOLDER”
means a Person in whose name a Security is registered in the Security Register.

 

“INDEBTEDNESS” means, with
respect to any Person (without duplication for indebtedness or other
obligations of such Person), any indebtedness of such Person for money
borrowed, whether incurred, assumed or guaranteed, and including obligations
under capitalized leases.

 

“INDENTURE” means this
instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and shall include the terms
of particular series of Securities established as contemplated hereunder.

 

“INTEREST,” when used with
respect to an Original Issue Discount Security which by its terms bears
interest only after Maturity, means interest payable after Maturity.

 

“INTEREST PAYMENT DATE,” when
used with respect to any Security, means the Stated Maturity of an installment
of interest on such Security.

 

“JUDGMENT CURRENCY” has the
meaning specified in Section 1.15.

 

2

 

“MATURITY,” when used with
respect to any Security, means the date on which the principal of such Security
or an installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption or otherwise.

 

“NEW YORK BANKING DAY” has
the meaning specified in Section 1.15.

 

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

 

“OFFICERS’ CERTIFICATE” means
a certificate signed by any two Officers of the Company, at least one of whom
must be its Chief Executive Officer, its President, its Chief Financial
Officer, its Chief Accounting Officer, its Treasurer or its Controller, and
delivered to the Trustee.

 

“OPINION OF COUNSEL” means a
written opinion of counsel, who may be an employee of or counsel for the
Company, and who shall be reasonably acceptable to the Trustee.

 

“ORIGINAL ISSUE DISCOUNT
SECURITY” means any Security which provides for an amount less than the principal
amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.02.

 

“OUTSTANDING,” when used with
respect to Securities or Securities of any series, means, as of the date of
determination, all such Securities theretofore authenticated and delivered
under this Indenture, except:

 

(i) Securities
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

 

(ii) Securities, or
portions thereof, for whose payment or redemption money in the necessary amount
has been theretofore deposited with the Trustee or any Paying Agent (other than
the Company) in trust or set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent) for the Holders of such Securities;
provided that, if such Securities are to be redeemed, notice of such redemption
has been duly given pursuant to this Indenture or provision therefor reasonably
satisfactory to the Trustee has been made;

 

(iii) Securities which
have been paid as provided herein or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee proof reasonably satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and

 

(iv) Securities which
have been defeased pursuant to Section 13.02;

 

provided, however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, or whether sufficient funds are
available for redemption or for any other purpose and for the purpose of making
the calculations required by Section 313 of the Trust Indenture Act, (a) the
principal amount of any Original Issue Discount Security that shall be deemed
to be Outstanding for such purposes shall be that portion of the principal
amount thereof that could be declared to be due and payable upon the occurrence
of an Event of Default and the continuation thereof pursuant to the terms of
such Original Issue Discount Security as of the date of such determination, (b) the
principal amount of a Security denominated in one or more foreign currencies or
currency units shall be the dollar equivalent, determined in the manner
provided as contemplated by Section 3.01 on the date of original issuance
of such Security, of the principal amount (or, in the case of an Original Issue
Discount Security, the dollar equivalent on the date of original issuance of
such Security of the amount determined as provided in (a) above) of such
Security, and (c) Securities owned by the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities which the Trustee knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Securities and that the pledgee
is not the Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor.

 

“PAYING AGENT” means any
Person authorized by the Company to pay the principal of, premium, if any, or
interest on any Securities on behalf of the Company. The Company may act as
Paying Agent with respect to any Securities issued hereunder.

 

“PERSON” means any
individual, corporation, partnership, joint venture, association, limited
liability company, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

 

“PLACE OF PAYMENT,” when used
with respect to the Securities of any series, means the place or places where
the principal of (and premium, if any) and interest on the Securities of that
series are payable as specified as contemplated by Section 3.01.

 

“PREDECESSOR SECURITY” of any
particular Security means every previous Security evidencing all or a portion
of the same debt as that evidenced by such particular Security and, for the
purposes of this definition, any Security authenticated and delivered under Section 3.06
in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

 

3

 

“REDEMPTION DATE,” when used
with respect to any Security of any series to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

 

“REDEMPTION PRICE,” when used
with respect to any Security of any series to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

 

“REGISTERED SECURITY” means
any Security issued hereunder and registered in the Security Register.

 

“REGULAR RECORD DATE” for the
interest payable on any Interest Payment Date on the Securities of any series
means the date specified for that purpose as contemplated by Section 3.01.

 

“REQUIRED CURRENCY” has the
meaning specified in Section 1.15.

 

“RESPONSIBLE OFFICER,” when
used with respect to the Trustee, means any officer of the Trustee assigned to
administer corporate trust matters and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject.

 

“SECURITIES” has the meaning
stated in the first recital of this Indenture and more particularly means any
Securities authenticated and delivered under this Indenture.

 

“SECURITY REGISTER” and “SECURITY
REGISTRAR” have the respective meanings specified in Section 3.05.

 

“SIGNIFICANT SUBSIDIARY” of a
Person has the meaning ascribed to such term in Rule 1.02(w) of
Regulation S-X under the Securities Act of 1933, as amended.

 

“SPECIAL RECORD DATE” for the
payment of any Defaulted Interest means a date fixed by the Trustee pursuant to
Section 3.07.

 

“STATED MATURITY,” when used
with respect to any Security or any installment of principal thereof or
interest thereon, means the date specified in such Security as the fixed date
on which the principal of such Security or such installment of principal or
interest is due and payable.

 

“SUBSIDIARY” means, with
respect to any Person:

 

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

 

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

 

“TRUSTEE” means the Person
named as the “Trustee” in the first paragraph of this instrument until a
successor Trustee shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter “Trustee” shall mean or include each Person
who is then a Trustee hereunder, and if at any time there is more than one such
Person, “Trustee” as used with respect to the Securities of any series shall
mean the Trustee with respect to Securities of that series.

 

“TRUST INDENTURE ACT” means
the Trust Indenture Act of 1939, as amended, as in force at the date as of
which this Indenture was executed; provided, however, that in the event that
such Act is amended after such date, “Trust Indenture Act” means, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended.

 

“U.S. GOVERNMENT OBLIGATIONS”
means securities which are (i) direct obligations of the United States of
America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the timely payment of which is unconditionally
guaranteed by the full faith and credit of the United States of America which,
in either case, are not callable or redeemable at the option of the issuer
thereof or otherwise subject to prepayment, and shall also include a depository
receipt issued by a New York Clearing House 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 held 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.

 

“VICE PRESIDENT,” when used
with respect to the Company or the Trustee, means any vice president, whether
or not designated by a number or a word or words added before or after the
title “vice president.”

 

“VOTING STOCK” of any Person
as of any date means the Capital Stock of such Person that is at the time
entitled to vote in the election of the Board of Directors of such Person.

 

4

 

Section 1.02           Compliance
Certificates and Opinions. Upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

 

Every certificate or opinion
with respect to compliance with a condition or covenant provided for in this
Indenture shall include:

 

(a) a statement that
each individual signing such certificate or opinion has read such covenant or
condition and the definitions herein relating thereto;

 

(b) 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;

 

(c) a statement that, in
the opinion of each such individual, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

 

(d) a statement as to
whether, in the opinion of each such individual, such condition or covenant has
been complied with.

 

Section 1.03           Form of
Documents Delivered to Trustee. 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 with respect to
some matters and one or more other such Persons as to other matters, and any
such Person may certify or give an opinion as to such matters in one or several
documents.

 

Any certificate or opinion of
an Officer may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such Officer
actually knows 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, insofar as it relates
to factual matters, upon a certificate or opinion of, or representations by, an
Officer or Officers of the Company stating that the information with respect to
such factual matters is in the possession of the Company, unless such counsel
actually knows that the certificate or opinion or representations with respect
to such matters are erroneous.

 

Any certificate, statement or
opinion of an Officer of the Company or of counsel may be based, insofar as it
relates to accounting matters, upon a certificate or opinion of or
representations by an accountant or firm of accountants in the employ of the
Company, unless such Officer or counsel, as the case may be, actually knows
that the certificate or opinion or representations with respect to the
accounting matters upon which his or her certificate, statement or opinion is
based 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 1.04           Acts of
Holders.

 

(a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by agents duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Company. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “ACT” of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 6.01)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

 

(b) The fact and date of
the execution by any Person of any such instrument or writing may be proved by
the affidavit of a witness of such execution or by a certificate of a notary
public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing acknowledged
to him the execution thereof. Where such execution is by a signer acting in a
capacity other than his individual capacity, such certificate or affidavit
shall also constitute sufficient proof of his authority. The fact and date of
the execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

 

(c) The ownership of Registered
Securities shall be proved by the Security Register.

 

(d) Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Security shall bind every future Holder of the same Security and the Holder
of every Security issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustee or the Company in reliance thereon, whether
or not notation of such action is made upon such Security.

 

5

 

(e) If the Company shall
solicit from the Holders any request, demand, authorization, direction, notice,
consent, waiver or other Act, the Company may, at its option, by or pursuant to
a Board Resolution, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other Act, but the Company shall have no obligation
to do so, provided that the Company may not set a record date for, and the
provisions of this paragraph shall not apply with respect to, the giving or
making of any notice, declaration, request or direction referred to in the
immediately following paragraph. If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the purposes
of determining whether Holders of the requisite proportion of Outstanding
Securities have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for that
purpose the Outstanding Securities shall be computed as of such record date;
provided that no such authorization, agreement or consent by the Holders on
such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than six months after
the record date.

 

(f) The Trustee shall
set a record date, which shall not be more than 15 days prior to the date of
commencement of solicitation of such action contemplated by this section
1.04(f), for the purpose of determining the Holders of Securities of any series
entitled to join in the giving or making of (i) any Notice of Default, (ii) any
declaration of acceleration referred to in Section 5.02, (iii) any
direction referred to in Section 5.12, (iv) any request to institute
proceedings referred to in Section 5.07(2) or (v) any waiver of
past defaults pursuant to Section 5.13, in each case with respect to
Securities of such series. If such a record date is fixed pursuant to this
paragraph, the relevant action may be taken or given before or after such
record date, but only the Holders of record at the close of business on such
record date shall be deemed to be holders of Securities of a series for the
purpose of determining whether Holders of the requisite proportion of Outstanding
Securities of such series have authorized or agreed or consented to such
action, and for that purpose the Outstanding Securities of such series shall be
computed as of such record date; provided that no such action by Holders on
such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than six months after
the record date. Nothing in this paragraph shall be construed to prevent the
Trustee from setting a new record date for any action for which a record date
has been set pursuant to this paragraph (whereupon the record date previously
set shall automatically and with no action by any Person be canceled and of no
effect), and nothing in this paragraph shall be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Trustee, at the
Company’s reasonable expense, shall cause notice of such record date and the
proposed action by Holders to be given to the Company in writing and to each
Holder of Securities of the relevant series in the manner set forth in Section 1.06.

 

Section 1.05           Notices,
Etc., to Trustee and Company. Any request, demand, authorization, direction,
notice, consent, waiver or Act of Holders or other document provided or
permitted by this Indenture to be made upon, given or furnished to, or filed
with,

 

(a) the Trustee by any
Holder or by the Company shall be sufficient for every purpose hereunder if
made, given, furnished or filed in writing and mailed first-class postage
prepaid, to or with the Trustee at The Bank of New York Mellon Trust Company,
N.A., 10161 Centurion Parkway, Jacksonville, FL 32256; Attn: Corporate Trust
Administration; or

 

(b) the Company by the
Trustee or by any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at Interline Brands, Inc.,
701 San Marco Boulevard, Jacksonville, FL 32207, Attention: Secretary, or at
any other address previously furnished in writing to the Trustee by the
Company.

 

Section 1.06           Notice
to Holders; Waiver. Where this Indenture or any Security provides for notice to
Holders of any event, such notice shall be deemed sufficiently given (unless
otherwise herein or in such Security expressly provided) if in writing and
mailed, first- class postage prepaid, to each Holder affected by such event, at
his address as it appears in the Security Register, not later than the latest
date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders or the validity of the proceedings to which such notice relates.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification
for every purpose hereunder.

 

Any request, demand,
authorization, direction, notice, consent or waiver required or permitted under
this Indenture shall be in the English language, except that any published
notice may be in an official language of the country of publication.

 

Where this Indenture or any
Security 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.

 

Section 1.07           Conflict
with Trust Indenture Act. If any provision hereof limits, qualifies or
conflicts with another provision hereof which is required to be included or
deemed included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control. If any provision of this Indenture
modifies or excludes any provision of the Trust Indenture Act that may be so
modified or excluded, such provision of the Trust Indenture Act shall be deemed
to apply to this Indenture as so modified or shall be excluded, as the case may
be.

 

Section 1.08           Effect
of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

Section 1.09           Successors
and Assigns. All covenants and agreements in this Indenture by the Company
shall bind its successors and assigns, whether so expressed or not.

 

6

 

Section 1.10           Separability
Clause. In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 1.11           Benefits
of Indenture. Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder and the Holders, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

 

Section 1.12           Governing
Law. This Indenture and the Securities shall be governed by and construed in
accordance with the laws (other than the choice of law provisions) of the State
of New York.

 

Section 1.13           Legal
Holidays. In any case where any Interest Payment Date, Redemption Date, sinking
fund payment date, Stated Maturity or Maturity of any Security shall not be a
Business Day at any Place of Payment, then (notwithstanding any other provision
of this Indenture or of the Securities other than a provision in the Securities
of any series which specifically states that such provision shall apply in lieu
of this Section) payment of interest or principal (and premium, if any) need
not be made at such Place of Payment on such date, but may be made on the next
succeeding Business Day or on such other day as may be set out in the Officers’
Certificate pursuant to Section 3.01 at such Place of Payment with the
same force and effect as if made on the Interest Payment Date, Redemption Date,
sinking fund payment date, Stated Maturity or Maturity, as the case may be,
provided that no interest shall accrue on the amount so payable for the period
from and after such Interest Payment Date, Redemption Date, sinking fund
payment date, Stated Maturity or Maturity, as the case may be, if payment is
made on such next succeeding Business Day or other day set out in such Officers’
Certificate.

 

Section 1.14           No
Recourse Against Others. A director, officer, employee or stockholder, as such,
of the Company or any Guarantor (other than a stockholder which itself is the
Company or a Guarantor of the Securities) shall not have any liability for any
obligations of the Company or any Guarantor under the Securities or this
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder, by accepting a Security,
waives and releases all such liability. Such waivers and releases are part of
the consideration for the issuance of the Securities.

 

Section 1.15           Judgment
Currency. The Company agrees, to the fullest extent that it may effectively do
so under applicable law, that (a) if for the purpose of obtaining judgment
in any court it is necessary to convert the sum due in respect of the principal
of, or premium or interest, if any, on the Securities of any series (the “REQUIRED
CURRENCY”) into a currency in which a judgment will be rendered (the “JUDGMENT
CURRENCY”), the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the New York Banking
Day preceding that on which a final unappealable judgment is given and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall
not be discharged or satisfied by any tender, or any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause
of action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture.
For purposes of the foregoing, “NEW YORK BANKING Day” means any day except a
Saturday, Sunday or a legal holiday in The City of New York or a day on which
banking institutions in The City of New York are authorized or required by law
or executive order to close.

 

Section 1.16           Counterparts.
This instrument may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.

 

ARTICLE 2

 

SECURITY
FORMS

 

Section 2.01           Forms
Generally. The Securities of each series shall be in substantially the form set
forth in this Article, or in such other form as shall be established by or
pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of
any securities exchange or as may, consistently herewith, be determined by the
Officers executing such Securities, as evidenced by their execution of the
Securities. If the form of Securities of any series is established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 3.03 for the authentication and delivery of
such Securities.

 

The definitive Securities
shall be printed, lithographed or engraved on steel engraved borders or may be
produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

 

Section 2.02           Form of Face of Security.

 

INTERLINE
BRANDS, INC.

 

	
  No.

  	
   

  	
  [$]              

  

 

7

 

Interline Brands, Inc, a
corporation duly organized and existing under the laws of Delaware (herein
called the “COMPANY,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to
                              ,
or registered assigns, the principal sum of
                              
[Dollars] on                               
[if the Security is to bear interest prior to Maturity, insert— and to pay
interest thereon from
                              
or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semi-annually on
                              
and
                              
in each year [if other than semi-annual payments, insert frequency of payments
and payment dates], commencing
                                          ,
at [if the Security is to bear interest at a fixed rate, insert— the rate of
          % per annum], [if
the Security is to bear interest at a variable or floating rate and if
determined with reference to an index, refer to description of index below]
until the principal hereof is paid or made available for payment [if applicable
insert—, and (to the extent that the payment of such interest shall be legally
enforceable) at the rate of
          % per annum on any
overdue principal and premium and on any overdue installment of interest]. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Indenture, be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the                     
or
                    
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record
Date and may either be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture]. [If the Securities are floating or adjustable rate
securities with respect to which the principal of or any premium or interest
may be determined with reference to an index, insert the text of the floating
or adjustable rate provision.]

 

[If the Security is not to
bear interest prior to Maturity, insert— The principal of this Security shall
not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the
overdue principal of this Security shall bear interest at the rate of
          % per annum (to the
extent that the payment of such interest shall be legally enforceable), which
shall accrue from the date of such default in payment to the date payment of
such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue
principal that is not so paid on demand shall bear interest at the rate of
          % per annum (to the
extent that the payment of such interest shall be legally enforceable), which
shall accrue from the date of such demand for payment to the date payment of
such interest has been made or duly provided for, and such interest shall also
be payable on demand.]

 

Payment of the principal of
(and premium, if any) and [if applicable, insert—any such] interest on this
Security will be made at the office or agency of the Company maintained for
that purpose in
                              ,
in dollars [if applicable, insert—; provided, however, that at the option of
the Company, payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register].

 

[If applicable, insert— So
long as all of the Securities of this series are represented by Securities in
global form, the principal of, premium, if any, and interest, if any, on this
global Security shall be paid in same day funds to the Depositary, or to such
name or entity as is requested by an authorized representative of the
Depositary. If at any time the Securities of this series are no longer
represented by global Securities and are issued in definitive certificated
form, then the principal of, premium, if any, and interest, if any, on each
certificated Security at Maturity shall be paid in same day funds to the Holder
upon surrender of such certificated Security at the Corporate Trust Office of
the Trustee, or at such other place or places as may be designated in or
pursuant to the Indenture, provided that such certificated Security is
surrendered to the Trustee, or at such other place or places as may be
designated in or pursuant to the Indenture, provided that such certificated
Security is surrendered to the Trustee, acting as Paying Agent, in time for the
Paying Agent to make such payments in such funds in accordance with its normal
procedures. Payments of interest with respect to such certificated Securities
other than at Maturity may, at the option of the Company, be made by check
mailed to the address of the Person entitled thereto as it appears on the
Security Register on the relevant Regular or Special Record Date or by wire
transfer in same day funds to such account as may have been appropriately
designated to the Paying Agent by such Person in writing not later than such
relevant Regular or Special Record Date.]

 

Reference is hereby made to
the further provisions of this Security set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth
at this place.

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed.

 

	
   

  	
  INTERLINE
  BRANDS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Date:
                                                ,
  20        

  

 

Section 2.03           Form of
Reverse of Security.

 

This Security is one of a
duly authorized issue of securities of the Company (herein called the “SECURITIES”),
issued and to be issued in one or more series under an Indenture, dated as of
                              ,
20     (herein called the “INDENTURE”), between the Company
and
                                        ,
as Trustee (herein called the “TRUSTEE,” which term includes any successor
trustee under the Indenture), to which 

 

8

 

Indenture
and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities and of
the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof [,
limited in aggregate principal amount to $----------].

 

[If applicable, insert— The
Securities of this series are subject to redemption upon not less than 30 nor
more than 60 days’ notice by first class mail, [if applicable, insert— (1) on
                    
in any year commencing with the year
                    
and ending with the year
                    
through operation of the sinking fund for this series at a Redemption Price
equal to 100% of the principal amount, and (2)] at any time [on or after
                    ,
          ], as a whole or in
part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount):

 

If redeemed [on or before
                              ,
          %, and if redeemed]
during the 12-month period beginning
                              
of the years indicated,

 

	
   

  	
   

  	
  REDEMPTION

  	
   

  
	
  YEAR

  	
   

  	
  PRICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

and thereafter at a
Redemption Price equal to
          % of the principal
amount, together in the case of any such redemption [if applicable, insert— (whether
through operation of the sinking fund or otherwise)] with accrued and unpaid
interest to the Redemption Date, but interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the Holders
of such Securities, or one or more Predecessor Securities, of record at the
close of business on the relevant Record Dates referred to on the face hereof,
all as provided in the Indenture.]

 

[If applicable, insert— The
Securities of this series are subject to redemption upon not less than 30 nor
more than 60 days’ notice by first class mail, (1) on
                              
in any year commencing with the year                     
and ending with the year
                    
through operation of the sinking fund for this series at the Redemption Prices
for redemption through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below, and (2) at any time
[on or after
                    ],
as a whole or in part, at the election of the Company, at the Redemption Prices
for redemption otherwise than through operation of the sinking fund (expressed
as percentages of the principal amount) set forth in the table below:

 

If redeemed during a 12-month
period beginning
                                  
of the years indicated,

 

	
  REDEMPTION
  PRICE

  	
   

  	
  REDEMPTION PRICE FOR

  	
   

  	
   

  	
   

  
	
  FOR
  REDEMPTION

  	
   

  	
  REDEMPTION OTHERWISE THAN

  	
   

  	
   

  	
   

  
	
  THROUGH
  OPERATION OF THE SINKING

  	
   

  	
  THROUGH OPERATION OF THE

  	
   

  	
   

  	
   

  
	
  FUND

  	
   

  	
  SINKING FUND

  	
   

  	
  YEAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

and thereafter at a
Redemption Price equal to
          % of the principal
amount, together in the case of any such redemption (whether through operation
of the sinking fund or otherwise) with accrued and unpaid interest to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such Securities, or
one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

 

[Notwithstanding the
foregoing, the Company may not, prior to
                    ,
redeem any Securities of this series as contemplated by [clause (2) of]
the preceding paragraph as a part of, or in anticipation of, any refunding
operation by the application, directly or indirectly, of moneys borrowed having
an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than           %
per annum.]

 

[The sinking fund for this
series provides for the redemption on
                          
in each year beginning with the year                  and
ending with the year of [not less than]
$                              
[(“MANDATORY SINKING FUND”) and not more than
$                        ]
aggregate principal amount of Securities of this series.] [Securities of this
series acquired or redeemed by the Company otherwise than through [mandatory]
sinking fund payments may be credited against subsequent [mandatory] sinking
fund payments otherwise required to be made—in the inverse order in which they
become due.]

 

[In the event of redemption
of this Security in part only, a new Security or Securities of this series for
the unredeemed portion hereof will be issued in the name of the Holder hereof
upon the cancellation hereof.]

 

[If the Security is not an
Original Issue Discount Security, insert— If any Event of Default with respect
to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and
with the effect provided in the Indenture.]

 

[If the Security is an
Original Issue Discount Security, insert— If an Event of Default with respect
to Securities of this series shall occur and be continuing, an amount of
principal of the Securities of this series may be declared due and payable in
the manner and with the effect provided in the Indenture. Such amount shall be
equal —insert formula for determining the amount. Upon payment (i) of the
amount of principal so declared due and payable and (ii) of interest on
any overdue principal and overdue interest (in each case to the extent that the
payment of such interest shall be

 

9

 

legally
enforceable), all of the Company’s obligations in respect of the payment of the
principal of and interest, if any, on the Securities of this series shall
terminate.]

 

[This Security is subject to
defeasance and covenant defeasance as described in the Indenture [if
applicable, insert — and the supplemental indenture].]

 

[This Security is subject to
satisfaction and discharge as provided in the Indenture [if applicable, insert
— and the supplemental indenture].]

 

The Indenture may be modified
by the Company and the Trustee without consent of any Holder with respect to
certain matters as described in the Indenture. In addition, the Indenture
permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of
the Holders of the Securities of each series to be affected under the Indenture
at any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of each
series to be affected. The Indenture also contains provisions permitting the
Holders of a majority in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of such
series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall bind such
Holder and all future Holders of this Security and of any Security issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of (and premium, if any) and interest on this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture
and subject to certain limitations therein set forth, the transfer of this
Security is registrable in the Security Register, upon surrender of this
Security for registration of transfer at the office or agency of the Company in
any place where the principal of (and premium, if any) and interest on this
Security are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series, of authorized
denominations and for the same Stated Maturity and aggregate principal amount,
will be issued to the designated transferee or transferees.

 

The Securities of this series
are issuable only in registered form without coupons in denominations of
[$1,000] and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
of a different authorized denomination, as requested by the Holder surrendering
the same.

 

No service charge shall be
made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

Prior to due presentment of
this Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not
this Security be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

 

The Indenture imposes certain
limitations on the ability of the Company to, among other things, merge or
consolidate with any other Person or sell, assign, transfer or lease all or
substantially all of its properties or assets [If other covenants are
applicable pursuant to the provisions of Section 3.01, insert here]. All
such covenants and limitations are subject to a number of important
qualifications and exceptions. The Company must report periodically to the
Trustee on compliance with the covenants in the Indenture.

 

A director, officer, employee
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under this Security 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 Security, waives and releases all such
liability. The waiver and release are part of the consideration for the
issuance of this Security.

 

[If applicable, insert — A
director, officer, employee or stockholder, as such, of any Guarantor shall not
have any liability for any obligations of the Company or such Guarantor under
this Security or the Indenture [if applicable, insert — or the supplemental
indenture] or for any claim based on, in respect of or by reason of, such
obligations or their creation. Each Holder, by accepting a Security, waives and
releases all such liability. The waiver and release are part of the
consideration for the issuance of this Security.]

 

[If applicable, insert — This
Security will be entitled to the benefits of certain Guarantees made for the
benefit of the Holders. Reference is hereby made to the Indenture and the
supplemental indenture for a statement of the respective rights, limitations of
rights, duties and obligations thereunder of the Guarantors, if any, the
Trustee and the Holders.]

 

[If applicable, insert— Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures (“CUSIP”), the Company has caused CUSIP numbers to be
printed on the Securities of this series as a convenience to the Holders of the
Securities of this series. No representation is made as to the correctness or
accuracy of such numbers as printed on the Securities of this series and
reliance may be placed only on the other identification numbers printed
hereon.]

 

All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

 

10

 

ASSIGNMENT
FORM

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  (Insert assignee’s social security or tax I.D. number)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  	
   

  

 

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

 

	
  Dated:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature
  Guaranty:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Signatures
  must be guaranteed by an “eligible guarantor institution” meeting the
  requirements of the Transfer Agent, which requirements will include membership
  or participation in the Medallion Stamp Program or such other “signature
  guarantee program” as may be determined by the Transfer Agent in addition to,
  or in substitution for, the Medallion Stamp Program, all in accordance with
  the Exchange Act.]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Social Security Number or

  	
   

  	
   

  	
   

  	
   

  
	
  Taxpayer
  Identification Number:

  	
   

  	
   

  	
   

  	
   

  
								

 

Section 2.04           Form of
Trustee’s Certificate of Authentication. The Trustee’s certificate of
authentication shall be in substantially the following form:

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  This
  is one of the Securities of the series designated therein referred to in the
  within-mentioned Indenture.

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  As Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  
					

 

Section 2.05           Securities
in Global Form. If Securities of or within a series are issuable in whole or in
part in global form, then any such Security of such series may provide that it
shall represent the aggregate or a specified amount of the Outstanding
Securities of such series from time to time endorsed thereon and may also
provide that the aggregate amount of Outstanding Securities of such series
represented thereby may from time to time be reduced or increased to reflect
exchanges. Any endorsement of a Security in global form to reflect the amount,
or any increase or decrease in the amount, or changes in the rights of Holders,
of Outstanding Securities represented thereby shall be made in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or in the Company Order to be delivered to the Trustee pursuant to Section 3.03
or Section 3.04. Subject to the provisions of Section 3.03 and, if
applicable, Section 3.04, the Trustee shall deliver and redeliver any
Security in permanent global form in the manner and upon instructions given by
the Person or Persons specified therein or in the applicable Company Order. If
a 

 

11

 

Company
Order pursuant to Section 3.03 or 3.04 has been, or simultaneously is,
delivered, any instructions by the Company with respect to endorsement or
delivery or redelivery of a Security in global form shall be in writing but
need not comply with Section 1.02 and need not be accompanied by an
Opinion of Counsel.

 

The provisions of the last
paragraph of Section 3.03 shall apply to any Security represented by a
Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with written instructions (which need not comply with Section 1.02
and need not be accompanied by an Opinion of Counsel) with regard to the
reduction in the principal amount of Securities represented thereby.

 

Notwithstanding the
provisions of Sections 2.01 and 3.07, unless otherwise specified as
contemplated by Section 3.01, payment of principal of and premium, if any,
and interest on any Security in permanent global form shall be made to the
Person or Persons specified therein.

 

Section 2.06           Form of
Legend for the Securities in Global Form. Any Security in global form
authenticated and delivered hereunder shall bear a legend in substantially the
following form, or in such other form as may be necessary or appropriate to
reflect the arrangements with or to comply with the requirements of any
Depositary:

 

“THIS SECURITY IS IN GLOBAL
FORM WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, THIS SECURITY 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.”

 

ARTICLE 3

 

THE
SECURITIES

 

Section 3.01           Amount
Unlimited; Issuable in Series. The aggregate principal amount of Securities
which may be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued
from time to time in one or more series. Prior to the issuance of Securities of any series,
there shall be established in or pursuant to (i) a Board Resolution, (ii) action
taken pursuant to a Board Resolution and (subject to Section 3.03) set
forth, or determined in the manner provided, in an Officers’ Certificate, or (iii) one
or more indentures supplemental hereto:

 

(1) the
title of the Securities of the series (which shall distinguish the Securities
of the series from all other Securities);

 

(2) the
purchase price, denomination and any limit upon the aggregate principal amount
of the Securities of the series which may be authenticated and delivered under
this Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Sections 3.04, 3.05, 3.06, 9.06 or 11.07);

 

(3) the
date or dates on which the principal of and premium, if any, on the Securities
of the series is payable or the method of determination thereof;

 

(4) the
rate or rates at which the Securities of the series shall bear interest, if
any, or the method of calculating such rate or rates of interest, the date or
dates from which such interest shall accrue or the method by which such date or
dates shall be determined, the Interest Payment Dates on which any such
interest shall be payable and the Regular Record Date, if any, for the interest
payable on any Interest Payment Date;

 

(5) the
place or places where the principal of, premium, if any, and interest, if any,
on Securities of the series shall be payable;

 

(6) the
place or places where the Securities may be exchanged or transferred;

 

(7) the
period or periods within which, the price or prices at which, the currency or
currencies (including currency unit or units) in which, and the other terms and
conditions upon which Securities of the series may be redeemed, in whole or in
part, at the option of the Company, and, if other than as provided in Section 11.03,
the manner in which the particular Securities of such series (if less than all
Securities of such series are to be redeemed) are to be selected for
redemption;

 

(8) the
obligation, if any, of the Company to redeem or purchase Securities of the
series in whole or in part pursuant to any sinking fund or analogous provisions
or upon the happening of a specified event or at the option of a Holder thereof
and the period or periods within which, the price or prices at which, and the
other terms and conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

 

12

 

(9) if
other than denominations of $1,000 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable;

 

(10) if
other than U.S. dollars, the currency or currencies (including currency unit or
units) in which payments of principal of, premium, if any, and interest on the
Securities of the series shall or may by payable, or in which the Securities of
the series shall be denominated, and the particular provisions applicable
thereto;

 

(11)
if the payments of principal of, premium, if any, or interest on the Securities
of the series are to be made, at the election of the Company or a Holder, in a
currency or currencies (including currency unit or units) other than that in
which such Securities are denominated or designated to be payable, the currency
or currencies (including currency unit or units) in which such payments are to
be made, the terms and conditions of such payments and the manner in which the
exchange rate with respect to such payments shall be determined, and the
particular provisions applicable thereto;

 

(12)
if the amount of payments of principal of, premium, if any, and interest on the
Securities of the series shall be determined with reference to an index,
formula or other method (which index, formula or method may be based, without
limitation, on a currency or currencies (including currency unit or units)
other than that in which the Securities of the series are denominated or
designated to be payable), the index, formula or other method by which such
amounts shall be determined;

 

(13)
if other than the principal amount thereof, the portion of the principal amount
of Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 5.02 or the
method by which such portion shall be determined;

 

(14)
any modifications of or additions to the Events of Default or the covenants of
the Company set forth herein with respect to Securities of the series; and
whether and the conditions under which the Holders of the Securities of the
series may waive any such Event of Default or compliance with any such covenant
relating to the Securities of such series;

 

(15)
if either or both of Section 13.02 and Section 13.03 shall be
inapplicable, in whole or in part, to the Securities of the series (provided
that if no such inapplicability shall be specified, then both Section 13.02
and Section 13.03 shall be applicable to the Securities of the series);
and any modification to either such section as it relates to such series of
Securities;

 

(16)
if other than the Trustee, the identity of the Registrar and any Paying Agent;

 

(17)
if the Securities of the series shall be issued in whole or in part in global
form, (i) the Depositary for such global Securities, (ii) the form of
any legend in addition to or in lieu of that in Section 2.06 which shall
be borne by such global Security, (iii) whether beneficial owners of
interests in any Securities of the series in global form may exchange such
interests for certificated Securities of such series and of like tenor of any
authorized form and denomination, and (iv) if other than as provided in Section 3.05,
the circumstances under which any such exchange may occur;

 

(18)
if the Holders of the Securities of the series may convert or exchange the
Securities of the series into or for securities of the Company or of other
entities or other property (or the cash value thereof), the specific terms of
and period during which such conversion or exchange may be made;

 

(19)
if the Securities of the series shall have the benefits of any Guarantee and,
if so, the identity of the Guarantor or Guarantors and the terms and provisions
applicable to any such Guarantee;

 

(20)
any provisions for the satisfaction and discharge of the Securities of the
series, including provisions in addition to or modifying the provisions of Article 4
as they pertain to Securities of the series;

 

(21)
any addition to or change in the covenants set forth in Article 10 which
applies to Securities of the series; and

 

(22)
any other terms of the series, including any terms which may be required by or
advisable under the laws of the United States of America or regulations
thereunder or advisable (as determined by the Company) in connection with the
marketing of Securities of the series.

 

All Securities of any one
series shall be substantially identical except as to denomination and except as
may otherwise be provided (i) by a Board Resolution, (ii) by action
taken pursuant to a Board Resolution and (subject to Section 3.03) set
forth, or determined in the manner provided, in an Officers’ Certificate or (iii) in
any such indenture supplemental hereto. All Securities of any one series need
not be issued at the same time and, unless otherwise provided, a series may be
reopened, without the consent of the Holders, for issuances of additional
Securities of such series.

 

If any of the terms of the
Securities of any series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified
by the Secretary or an Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Officers’ Certificate setting forth,
or providing the manner for determining, the terms of the Securities of such
series, and an appropriate record of any action taken pursuant thereto in
connection with the issuance of any Securities of such series shall be
delivered to the Trustee prior to the authentication and delivery thereof.

 

13

 

Section 3.02           Denominations.
The Securities of each series shall be issuable in registered form without
coupons in such denominations as shall be specified as contemplated by Section 3.01.
In the absence of any such provisions with respect to the Securities of any
series, the Securities of such series shall be issuable in denominations of
$1,000 and any integral multiple thereof.

 

Section 3.03           Execution,
Authentication, Delivery and Dating. The Securities shall be executed on behalf
of the Company by its Chairman of the Board, its Chief Executive Officer, its
President, its Chief Financial Officer, or its Chief Accounting Officer
attested by its Secretary or one of its Assistant Secretaries. The signature of
any of these officers on the Securities may be manual or facsimile.
Typographical and other minor errors or defects in any such reproduction of the
seal or any such signature shall not affect the validity or enforceability of
any Security that has been duly authenticated and delivered by the Trustee.

 

Securities bearing the manual
or facsimile signatures of individuals who were at any time the proper officers
of the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such
Securities.

 

At any time and from time to
time after the execution and delivery of this Indenture, the Company may
deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and make such Securities available for delivery. If
the form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 2.01 and
3.01, in authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Sections 315(a) through
(d) of the Trust Indenture Act) shall be fully protected in relying upon,
an Opinion of Counsel stating (subject to customary assumptions, conditions and
exceptions):

 

(a) if the terms of such
Securities have been established by or pursuant to Board Resolution as
permitted by Section 3.01, that such terms have been established in
conformity with the provisions of this Indenture; and

 

(b) that such
Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion
of Counsel, will constitute valid and legally binding obligations of the
Company, enforceable in accordance with their terms, except to the extent
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance and other similar laws
affecting the enforcement of creditors’ rights generally and by the effect of
general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law).

 

If such terms have been so
established, the Trustee shall not be required to authenticate such Securities
if the issue of such Securities pursuant to this Indenture will affect the
Trustee’s own rights, duties or immunities under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee, or in the written opinion of counsel to the Trustee (which counsel may
be an employee of the Trustee) such authentication may not lawfully be made or
would involve the Trustee in personal liability.

 

Notwithstanding the
provisions of Section 3.01 and of the immediately preceding paragraph, if
all Securities of a series are not to be originally issued at one time, it
shall not be necessary to deliver the Board Resolution and the Officers’
Certificate otherwise required pursuant to Section 3.01 or the Company
Order and Opinion of Counsel otherwise required pursuant to the second
preceding paragraph at or prior to the time of authentication of each Security
of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to
be issued.

 

If the Company shall
establish pursuant to Section 3.01 that the Securities of a series are to
be issued in whole or in part in the form of one or more global Securities,
then the Company shall execute and the Trustee shall, in accordance with this Section and
the Company Order with respect to the authentication and delivery of such
series, authenticate and deliver one or more Securities of such series in
global form that (i) shall be in an aggregate amount equal to the
aggregate principal amount of the Outstanding Securities of such series to be
represented by such Security or Securities in global form, (ii) shall be
registered in the name of the Depositary for such Security or Securities in
global form or its nominee, and (iii) shall be made available for delivery
by the Trustee to such Depositary or pursuant to such Depositary’s instruction.

 

The Trustee shall have no
responsibility to determine if the Depositary is so registered. Each Depositary
shall enter into an agreement with the Trustee and the Company governing the
respective duties and rights of such Depositary, the Company and the Trustee
with regard to Securities issued in global form.

 

Unless otherwise provided for
in the form of Security, each Security shall be dated the date of its
authentication.

 

No Security shall be entitled
to any benefits under this Indenture or be valid or obligatory for any purpose
unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee or an
Authenticating Agent by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture.

 

Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 3.09
together with a written statement (which need not comply with Section 1.02
and need not be accompanied by an Opinion of Counsel) stating that such
Security has never been issued and sold by the Company, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall not be entitled to the benefits of this
Indenture.

 

14

 

Section 3.04           Temporary
Securities. Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
make available for delivery, temporary Securities of such series which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as evidenced by their execution of
such Securities.

 

In the case of Securities of
any series, such temporary Securities may be in global form, representing all
or a portion of the Outstanding Securities of such series.

 

Except in the case of
temporary Securities in global form (which shall be exchanged in accordance
with the provisions thereof), if temporary Securities of any series are issued,
the Company will cause definitive Securities of that series to be prepared
without unreasonable delay. After the preparation of definitive Securities of
such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series at the office or agency of the Company in a Place of Payment for
that series, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Securities of any series, the Company shall execute
and the Trustee shall authenticate and make available for delivery in exchange
therefor a like principal amount of definitive Securities of the same series of
authorized denominations and of like tenor. Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series.

 

Section 3.05           Registration,
Registration of Transfer and Exchange. The Company shall cause to be kept at
the Corporate Trust Office of the Trustee or in any office or agency to be
maintained by the Company in accordance with Section 10.02 in a Place of
Payment a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the “SECURITY REGISTER”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of registration of transfers of Securities. The
Trustee is hereby appointed “SECURITY REGISTRAR” for the purpose of registering
Securities and transfers of Securities as herein provided.

 

Upon surrender for
registration of transfer of any Security of any series at the office or agency
of the Company in a Place of Payment for that series, the Company shall
execute, and the Trustee shall authenticate and make available for delivery, in
the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and Stated Maturity.

 

At the option of the Holder,
Securities of any series (except a Security in global form) may be exchanged
for other Securities of the same series, of any authorized denominations and of
a like aggregate principal amount and Stated Maturity, upon surrender of the
Securities to be exchanged at such office or agency. Whenever any Securities
are so surrendered for exchange, the Company shall execute, and the Trustee
shall authenticate and make available for delivery, the Securities which the
Holder making the exchange is entitled to receive.

 

Each Security issued in
global form authenticated under this Indenture shall be registered in the name
of the Depositary designated for such series or a nominee thereof and delivered
to such Depositary or a nominee thereof or custodian therefor, and each such
Security issued in global form shall constitute a single Security for all
purposes of this Indenture.

 

Notwithstanding any other
provision of this Section, unless and until it is exchanged in whole or in part
for Securities in certificated form in the circumstances described below, a
Security in global form representing all or a portion of the Securities of a
series may not be transferred except as a whole by the Depositary for such
series to a nominee of such Depositary or by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by such Depositary or
any such nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

 

If at any time the Depositary
for the Securities of a series notifies the Company that it is unwilling or
unable to continue as Depositary for the Securities of such series or defaults
in the performance of its duties as Depositary or it at any time the Depositary
for the Securities of such series shall no longer be eligible to perform such
duties, the Company shall appoint a successor Depositary with respect to the
Securities of such series. If a successor Depositary for the Securities of such
series is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such ineligibility, the Company’s
selection pursuant to Section 3.01(17) shall no longer be effective with
respect to the Securities of such series and the Company shall execute, and the
Trustee, upon receipt of a Company Order for the authentication and delivery of
certificated Securities of such series of like tenor, shall authenticate and
deliver Securities of such series of like tenor in certificated form, in
authorized denominations and in an aggregate principal amount equal to the
principal amount of the Security or Securities of such series of like tenor in
global form in exchange for such Security or Securities in global form.

 

The Company may at any time
in its sole discretion determine that Securities issued in global form shall no
longer be represented by such a Security or Securities in global form. In such
event the Company shall execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of certificated Securities of such
series of like tenor, shall authenticate and deliver, Securities of such series
of like tenor in certificated form, in authorized denominations and in an
aggregate principal amount equal to the principal amount of the Security or
Securities of such series of like tenor in global form in exchange for such
Security or Securities in global form.

 

If specified by the Company
pursuant to Section 3.01 with respect to a series of Securities, the
Depositary for such series may surrender a Security in global form of such
series in exchange in whole or in part for Securities of such series in
certificated form on such terms as are acceptable to the Company and such
Depositary. Thereupon, the Company shall execute, and the Trustee shall
authenticate and deliver, without service charge,

 

15

 

(i) to each Person
specified by such Depositary a new certified Security or Securities of the same
series of like tenor, of any authorized denomination as requested by such
Person in aggregate principal amount equal to and in exchange for such Person’s
beneficial interest in the Security in global form; and

 

(ii) to such Depositary
a new Security in global form of like tenor in a denomination equal to the
difference, if any, between the principal amount of the surrendered Security in
global form and the aggregate principal amount of certificated Securities
delivered to Holders thereof.

 

Upon the exchange of a
Security in global form for Securities in certificated form, such Security in
global form shall be canceled by the Trustee. Securities issued in exchange for
a Security in global form pursuant to this Section shall be registered in
such names and in such authorized denominations as the Depositary for such
Security in global form, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall
deliver such Securities to the Persons in whose names such Securities are so
registered.

 

Whenever any Securities are
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange
is entitled to receive.

 

All Securities issued upon
any registration of transfer or exchange of Securities shall be the valid
obligations of the Company, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.

 

Every Security presented or
surrendered for registration of transfer or for exchange shall (if so required
by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed by the Holder thereof or his attorney duly authorized
in writing.

 

Unless otherwise provided in
the Securities to be transferred or exchanged, no service charge shall be made
for any registration of transfer or exchange of Securities, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 3.04,
9.06 or 11.07 not involving any transfer.

 

If the Securities of any
series (or of any series and specified tenor) are to be redeemed in part, the
Company shall not be required (i) to issue, register the transfer of or
exchange Securities of such series during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of
Securities of that series selected for redemption under Section 11.03 and
ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange any Security so selected for redemption,
in whole or in part, except the unredeemed portion of any Security being
redeemed in part.

 

The foregoing provisions
relating to registration, transfer and exchange may be modified, supplemented
or superseded with respect to any series of Securities by a Board Resolution or
in one or more indentures supplemental hereto.

 

Section 3.06           Mutilated,
Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered
to the Trustee, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously
outstanding.

 

If there shall be delivered
to the Company and the Trustee (i) evidence to their satisfaction of the
destruction, loss or theft of any Security and (ii) such security or
indemnity as may be required by them to save each of them and any agent of
either of them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon its request the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.

 

In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Security,
pay such Security.

 

Upon the issuance of any new
Security under this Section, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith.

 

Every new Security of any
series issued pursuant to this Section in lieu of any destroyed, lost or
stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Security shall be
at any time enforceable by anyone, and shall be entitled to all the benefits of
this Indenture equally and proportionately with any and all other Securities of
that series duly issued hereunder.

 

The provisions of this Section are
exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities.

 

Section 3.07           Payment
of Interest; Interest Rights Preserved. Interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record
Date for such interest.

 

16

 

Any interest on any Security
of any series which is payable, but is not punctually paid or duly provided
for, on any Interest Payment Date (herein called “DEFAULTED INTEREST”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date
by virtue of having been such Holder, and such Defaulted Interest may be paid
by the Company, at its election in each case, as provided in Clause (1) or
(2) below:

 

(1) The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the amount
of Defaulted Interest proposed to be paid on each Security of such series and
the date of the proposed payment (which shall be not less than 25 days after
the receipt by the Trustee of such notice, unless such Trustee shall consent to
an earlier date), and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements reasonably satisfactory
to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this Clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days prior
to the date of the proposed payment and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall
promptly notify the Company of such Special Record Date and, in the name and at
the reasonable expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first-class postage prepaid, to each Holder of Securities of such
series at his address as it appears in the Security Register, not less than 10
days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following Clause (2).

 

(2) The
Company may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which such Securities may be listed, and upon such
notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this Clause (2),
such manner of payment shall be deemed practicable by the Trustee.

 

Subject to the foregoing
provisions of this Section, each Security delivered under this Indenture upon
registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Security.

 

Section 3.08           Persons
Deemed Owners. Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the owner of
such Security for the purpose of receiving payment of principal of, premium, if
any, and (subject to Sections 3.05 and 3.07) interest on such Security and for
all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.

 

None of the Company, the
Trustee or any agent of the Company or the Trustee shall have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interest of a Security in
global form, or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interest. Notwithstanding the foregoing, with
respect to any Security in global form, nothing herein shall prevent the
Company or the Trustee or any agent of the Company or the Trustee, from giving
effect to any written certification, proxy or other authorization furnished by
any Depositary (or its nominee), as a Holder, with respect to such Security in
global form or impair, as between such Depositary and owners of beneficial
interests in such Security in global form, the operation of customary practices
governing the exercise of the right of such Depositary (or its nominee) as
holder of such Security in global form.

 

Section 3.09           Cancellation.
All Securities surrendered for payment, redemption, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee and shall be
promptly canceled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and all
Securities so delivered shall be promptly canceled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section, except as expressly permitted by this
Indenture. All canceled Securities shall be held by the Trustee and may be
destroyed (and, if so destroyed, certification of their destruction shall be
delivered to the Company, unless, by a Company Order, the Company shall direct
that canceled Securities be returned to it).

 

Section 3.10           Computation
of Interest. Except as otherwise specified as contemplated by Section 3.01
for Securities of any series, interest on the Securities of each series shall
be computed on the basis of a year of twelve 30-day months.

 

Section 3.11           CUSIP
Number. The Company in issuing Securities of any series may use a “CUSIP”
number, and if so, the Trustee may use the CUSIP number in notices of
redemption or exchange as a convenience to Holders of such series; provided,
that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP number printed on the notice or on the
Securities of such series, and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the CUSIP number of any series of
Securities.

 

Section 3.12           Wire
Transfers. Notwithstanding any other provision to the contrary in this
Indenture, the Company may make any payment of moneys required to be deposited
with the Trustee on account of principal of, or premium, if any, or interest on
the Securities (whether pursuant to optional or mandatory redemption payments,
interest payments or otherwise) by wire transfer of immediately available funds
to an account 

 

17

 

designated
by the Trustee on or before the date and time such moneys are to be paid to the
Holders of the Securities in accordance with the terms hereof.

 

ARTICLE 4

 

SATISFACTION
AND DISCHARGE

 

Section 4.01           Satisfaction
and Discharge of Indenture. This Indenture shall cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities and replacement of such Securities which may have been lost, stolen
or mutilated as herein expressly provided for or in the form of Security for
such series), when the Trustee, upon Company Request and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

 

(1) either
(a) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 3.06 and (ii) Securities for whose payment
money has theretofore been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from such
trust, as provided in Section 10.05) have been delivered to the Trustee
for cancellation; or (b) all such Securities not theretofore delivered to
the Trustee for cancellation (i) have become due and payable, or (ii) will
become due and payable at their Stated Maturity within one year, or (iii) are
to be called for redemption within one year under arrangements reasonably
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the reasonable expense, of the Company, and the
Company, in the case of (b)(i), (ii) or (iii) above, has deposited
with the Trustee as trust funds in trust for the purpose an amount, in the
currency or currencies or currency unit or units in which the Securities of
such series are payable, sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal, premium, if any, and interest to the date of such
deposit (in the case of Securities which have become due and payable) or the
Stated Maturity or Redemption Date, as the case may be;

 

(2) the
Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

 

(3) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for herein
relating to the satisfaction and discharge of this Indenture have been complied
with.

 

Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 6.07, the obligations of the Company to any
Authenticating Agent under Section 6.14 and, if money shall have been
deposited with the Trustee pursuant to subclause (b) of clause (1) of
this Section, the obligations of the Trustee under Section 4.02 and the
last paragraph of Section 10.05 shall survive.

 

Section 4.02           Application
of Trust Money. Subject to the provisions of the last paragraph of Section 10.05,
all money deposited with the Trustee pursuant to Section 4.01 shall be
held in trust and applied by it, in accordance with the provisions of the
Securities 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 or received by the Trustee, but such money need not be segregated from
other funds except to the extent required by law.

 

Section 4.03           Application
to a Specific Series of Securities. The Company may elect to satisfy and
discharge its obligations with respect to a specific series of Securities under
the Indenture by complying with the terms of Article 4. If the Company
makes such election, (a) the terms of Section 4.01 and 4.02 shall
apply only to the specific series of Securities and the terms of the Indenture
as it relates to such series of Securities and (b) the other Securities
issued hereunder and the Indenture as it relates to such other Securities shall
remain in full force and effect.

 

ARTICLE
5

 

REMEDIES

 

Section 5.01           Events
of Default. Except as otherwise specified as contemplated by Section 3.01
for Securities of a series, “EVENT OF DEFAULT,” wherever used herein with
respect to Securities of any series, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or to be effected by operation of law or pursuant to
any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

(1) the
Company defaults in the payment of interest on any Security of that series when
such interest becomes due and payable and the default continues for a period of
30 days; or

 

(2) the
Company defaults in the payment of the principal of, or premium, if any, on any
Security of that series when the same becomes due and payable at Maturity or on
redemption or otherwise; or

 

(3) the
Company fails to deposit any sinking fund payment, for five days after it
becomes due by the terms of a Security of that series; or

 

(4) the
Company fails to observe or perform in any material respect any of its other
covenants, agreements or warranties in the Securities of that series or this
Indenture (other than a covenant, agreement or warranty a default in whose
performance or whose breach is elsewhere 

 

18

 

in
this Section specifically dealt with or which has expressly been included
in this Indenture solely for the benefit of series of Securities other than
that series), and the failure to observe or perform continues for the period
and after the notice specified in the last paragraph of this Section; or

 

(5) an
event of default, as defined in any mortgage, indenture, or instrument under
which there may be issued, or by which there may be secured or evidenced, any
Indebtedness of the Company (including Securities of another series) (other
than the Securities of such series) (whether such Indebtedness now exists or
shall hereafter be created or incurred) shall occur, which event of default (i) is
caused by a failure to pay principal of or premium, if any, or interest on such
Indebtedness at final maturity after the expiration of the grace period
provided in such Indebtedness on the date of such event of default, and (ii) results
in Indebtedness becoming or being declared due and payable prior to the date on
which it would otherwise become due and payable, and such default in payment is
not cured or such acceleration shall not be rescinded or annulled within 30
days after written notice to the Company from the Trustee or to the Company and
to the Trustee from the Holders of at least twenty-five percent in aggregate
principal amount of the Outstanding Securities of that series specifying such
event of default and requiring the Company to cure such default in payment or
cause such acceleration to be rescinded or annulled and stating that such
notice is a “NOTICE OF DEFAULT” hereunder; provided, however, that it shall not
be an Event of Default if the principal amount of Indebtedness which is not
paid at maturity or the maturity of which is accelerated is equal to or less
than $50,000,000; provided further that if, prior to a declaration of
acceleration of the maturity of the Securities of that series or the entry of
judgment in favor of the Trustee in a suit pursuant to Section 5.03, such
default shall be remedied or cured by the Company or waived by the holders of
such Indebtedness, then the Event of Default hereunder by reason thereof shall
be deemed likewise to have been thereupon remedied, cured or waived without
further action upon the part of either the Trustee or any of the Holders of the
Securities of that series; or

 

(6) the
Company or any of its Significant Subsidiaries pursuant to or within the
meaning of any Bankruptcy Law (a) commences a voluntary case or proceeding
under any Bankruptcy Law with respect to itself, (b) consents to the entry
of a judgment, decree or order for relief against it in an involuntary case or
proceeding under any Bankruptcy Law, (c) consents to or acquiesces in the
institution of bankruptcy or insolvency proceedings against it, (d) applies
for, consents to or acquiesces in the appointment of or taking possession by a
Custodian of it or for all or substantially all of its property, (e) makes
a general assignment for the benefit of its creditors or (f) takes any
corporate action in furtherance of or to facilitate, conditionally or
otherwise, any of the foregoing; or

 

(7) (i) a
court of competent jurisdiction enters a judgment, decree or order for relief
in an involuntary case or proceeding under any Bankruptcy Law which shall (a) approve
as properly filed a petition seeking reorganization, arrangement, adjustment or
composition in respect of the Company or any of its Significant Subsidiaries, (b) appoint
a Custodian of the Company or any of its Significant Subsidiaries or for all or
substantially all of its property or (c) order the winding-up or
liquidation of affairs of the Company or any of its Significant Subsidiaries,
and such judgment, decree or order shall remain unstayed and in effect for a
period of 90 consecutive days; or (ii) any bankruptcy or insolvency
petition or application is filed, or any bankruptcy or insolvency proceeding is
commenced, against the Company or any of its Significant Subsidiaries and such
petition, application or proceeding is not dismissed within 60 days; or (iii) a
warrant of attachment is issued against any material portion of the property of
the Company or any of its Significant Subsidiaries which is not released within
60 days of service; or

 

(8) any
other Event of Default provided with respect to Securities of that series.

 

A Default under clause (4) above
is not an Event of Default until the Trustee or the Holders of at least
twenty-five percent in aggregate principal amount of the Outstanding Securities
of that series notify the Company of the Default and the Company does not cure
the Default within 60 days after receipt of the notice. The notice must specify
the Default, demand that it be remedied and state that the notice is a “NOTICE
OF DEFAULT.” When a Default under clause (4) above is cured within such
60-day period, it ceases to be a Default.

 

Section 5.02           Acceleration
of Maturity; Rescission and Annulment. If an Event of Default with respect to
Securities of any series (other than an Event of Default specified in clause (6) or
(7) of Section 5.01) occurs and is continuing, the Trustee by notice
in writing to the Company, or the Holders of at least twenty-five percent in
aggregate principal amount of the Outstanding Securities of that series by
notice in writing to the Company and the Trustee, may declare the unpaid
principal of and accrued interest to the date of acceleration (or, if the
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount as may be specified in the terms of that series) on all
the Outstanding Securities of that series to be due and payable immediately
and, upon any such declaration, the Outstanding Securities of that series (or
specified principal amount) shall become and be immediately due and payable.

 

If an Event of Default specified
in clause (6) or (7) of Section 5.01 occurs, all unpaid
principal of and accrued interest on the Outstanding Securities of that series
(or specified principal amount) shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder of any Security of that series.

 

Upon payment of all such
principal and interest, all of the Company’s obligations under the Securities
of that series and (upon payment of the Securities of all series) this
Indenture shall terminate, except obligations under Section 6.07.

 

At any time after a
declaration of acceleration of Maturity with respect to Securities of any
series has been made and before a judgment or decree for payment of the money
due has been obtained by the Trustee as hereinafter in this Article provided,
the Holders of a majority in principal amount of the Outstanding Securities of
that series by notice to the Trustee may rescind an acceleration and its
consequences if (i) all existing Events of Default, other than the
nonpayment of the principal of and interest on the Securities of that series
that has become due solely by such declaration of acceleration, have been cured
or waived, (ii) to the extent the payment of such interest is lawful,
interest on overdue installments of interest and overdue principal that has
become due otherwise than by such declaration of acceleration have been paid, (iii) the
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction and (iv) all payments due to the Trustee and any
predecessor Trustee under Section 6.07 have been made.

 

19

 

Section 5.03           Collection
of Indebtedness and Suits for Enforcement by Trustee. The Company covenants
that if:

 

(1) default
is made in the payment of any interest on any Security of any series when such
interest becomes due and payable and such default continues for a period of 30
days, or

 

(2) default
is made in the payment of the principal of (or premium, if any, on) any
Security of any series at the Maturity thereof, or

 

(3) default
is made in the payment of any sinking or analogous obligation when the same
becomes due by the terms of the Securities of any series, and any such default
continues for any period of grace provided with respect to the Securities of
such series,

 

the Company will, upon demand
of the Trustee, pay to it, for the benefit of the Holders of such Securities,
the whole amount then due and payable on such Securities for principal (and
premium, if any) and interest and, to the extent that payment of such interest
shall be legally enforceable, interest on any overdue principal (and premium,
if any) and on any overdue interest, at the rate or rates prescribed therefor
in such Securities, and, in addition thereto, 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.

 

If the Company fails to pay
such amounts forthwith upon such demand, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to
judgment or final decree and may enforce the same against the Company or any
other obligor upon such Securities and collect the moneys adjudged or decreed
to be payable in the manner provided by law out of the property of the Company
or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with
respect to Securities of any series occurs and is continuing, the Trustee may
in its discretion proceed to protect and enforce its rights and the rights of
the Holders of Securities of such series by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to secure
any other proper remedy.

 

Section 5.04           Trustee
May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other
obligor upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Securities shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
on the Company for the payment of overdue principal or interest) shall be
entitled and empowered, by intervention in such proceeding or otherwise,

 

(i) to file and prove a
claim for the whole amount of principal (and premium, if any) and interest
owing and unpaid in respect of the Securities and to file such 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 agent and counsel) and of the
Holders allowed in such judicial proceedings, and

 

(ii) to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official 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 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 6.07.

 

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 Securities or the rights of any Holder
thereof or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

Section 5.05           Trustee
May Enforce Claims Without Possession of Securities. All rights of action
and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Securities in respect of which such judgment has been recovered.

 

Section 5.06           Application
of Money Collected. Any money collected by the Trustee pursuant to this Article in
respect of the Securities of any series shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal, premium, if any, or
interest, upon presentation of the Securities in respect of which moneys have
been collected and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid:

 

First: To the payment of all
amounts due the Trustee under Section 6.07 applicable to such series;

 

Second: To the payment of the
amounts then due and unpaid for principal of, and premium, if any, and interest
on the Securities of such series in respect of which or for the benefit of
which such money has been collected, ratably, without preference or priority of
any kind, according to the amounts due and payable on such Securities of such
series for principal, and premium, if any, and interest, respectively; and

 

20

 

Third: To the Company.

 

The Trustee may fix a record
date and payment date for any payment to Holders pursuant to this Section 5.06.
At least ten (10) days before such record date, the Trustee shall mail to
each Holder and the Company a notice that states the record date, the payment
date and the amount to be paid.

 

Section 5.07           Limitation
on Suits. No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

 

(1) such
Holder has previously given written notice to the Trustee of a continuing Event
of Default with respect to the Securities of that series;

 

(2) the
Holders of at least twenty-five percent in principal amount of the Outstanding
Securities of that series shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as
Trustee hereunder;

 

(3) such
Holder or Holders shall have offered to the Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in compliance with
such request;

 

(4) the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

 

(5) no
direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of
the Outstanding Securities of that series;

 

it being understood and
intended that no one or more of Holders of Securities of any series shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all Holders
of Securities of the affected series.

 

Section 5.08           Unconditional
Right of Holders to Receive Principal, Premium and Interest. Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the
principal of, premium, if any, and (subject to Section 3.07) interest on
such Security on the Stated Maturity or Maturities expressed in such Security
(or, in the case of redemption, on the Redemption Date) and to institute suit
for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

 

Section 5.09           Restoration
of Rights and Remedies. If the Trustee or any Holder has instituted any
proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such
case, subject to any determination in such proceeding, the Company, the Trustee
and the Holders shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and
the Holders shall continue as though no such proceeding has been instituted.

 

Section 5.10           Rights
and Remedies Cumulative. Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
the last paragraph of Section 3.06, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders is intended to be exclusive
of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

 

Section 5.11           Delay
or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of
any Securities to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein. Every right and remedy given
by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

 

Section 5.12           Control
by Holders. The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that:

 

(1) such
direction shall not be in conflict with any rule of law or with this
Indenture;

 

(2) the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and

 

(3) subject
to Section 6.01, the Trustee need not take any action which might involve
the Trustee in personal liability or be unduly prejudicial to the Holders not
joining therein.

 

21

 

Section 5.13           Waiver
of Past Defaults. The Holders of not less than a majority in principal amount
of the Outstanding Securities of any series may by written notice to the
Trustee on behalf of the Holders of all the Securities of such series waive any
Default or Event of Default with respect to such series and its consequences,
except a Default or Event of Default:

 

(1) in
respect of the payment of the principal of or premium, if any, or interest on
any Security of such series, or

 

(2) in
respect of a covenant or other provision hereof which under Article Nine
cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected.

 

Upon any such waiver, such
Default or Event of Default shall cease to exist and shall be deemed to have
been cured, for every purpose of this Indenture and the Securities of such
series; but no such waiver shall extend to any subsequent or other Default or
Event of Default or impair any right consequent thereon.

 

Section 5.14           Undertaking
for Costs. All parties to this Indenture agree, and each Holder of any Security
by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than ten percent in
principal amount of the Outstanding Securities of any series, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
or premium, if any, or interest on any Security on or after the Stated Maturity
or Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date).

 

ARTICLE 6

 

THE
TRUSTEE

 

Section 6.01           Certain
Duties and Responsibilities of the Trustee.

 

(a) Except during the
continuance of an Event of Default, the Trustee’s duties and responsibilities
under this Indenture shall be governed by Section 315(a) of the Trust
Indenture Act.

 

(b) In case an Event of
Default has occurred and is continuing, and is known to the Trustee, the
Trustee shall exercise the rights and powers vested in it by this Indenture,
and shall use the same degree of care and skill in their exercise, as a prudent
man would exercise or use under the circumstances in the conduct of his own
affairs.

 

(c) None of the
provisions of Section 315(d) of the Trust Indenture Act shall be
excluded from this Indenture.

 

(d) Every provision of
this Indenture which pertains to the Trustee shall be subject to this Section 6.01.

 

Section 6.02           Notice
of Defaults. Within 90 days after the occurrence of any Default or Event of
Default with respect to the Securities of any series, the Trustee shall give to
all Holders of Securities of such series, as their names and addresses appear
in the Security Register, notice of such Default or Event of Default known to
the Trustee, unless such Default or Event of Default shall have been cured or
waived; provided, however, that, except in the case of a Default or Event of
Default in the payment of the principal of or premium, if any, or interest on
any Security of such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interest of the
Holders of Securities of such series.

 

Section 6.03           Certain
Rights of Trustee. Subject to the provisions of the Trust Indenture Act:

 

(a) the Trustee may rely
and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties;

 

(b) any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or Company Order and any resolution of the Board of Directors
may be sufficiently evidenced by a Board Resolution;

 

(c) whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officers’
Certificate;

 

(d) the Trustee may
consult with counsel and the written advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;

 

22

 

(e) the Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request or direction of any of the Holders pursuant to
this Indenture, unless such Holders shall have offered to the Trustee
satisfactory security or indemnity against the costs, expenses and liabilities
which might be incurred by it in compliance with such request or direction;

 

(f) prior to the
occurrence of an Event of Default with respect to the Securities of any series
and after the curing or waiving of all such Events of Default which may have
occurred, the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, approval or other
paper or document, or the books and records of the Company, unless requested in
writing to do so by the Holders of a majority in principal amount of the
Outstanding Securities of any series; provided, however, that if the payment
within a reasonable time to the Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is not, in the
opinion of the Trustee, reasonably assured to the Trustee by the security
afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such costs, expenses or liabilities as a condition
to so proceeding; the reasonable expense of every such investigation shall be
paid by the Company or, if paid by the Trustee, shall be repaid by the Company
upon demand;

 

(g) the Trustee may
execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents or attorneys and the Trustee shall not
be responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder; and

 

(h) the Trustee shall
not be required to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in
the exercise of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

 

Section 6.04           Not
Responsible for Recitals or Issuance of Securities. The recitals herein and in
the Securities, except the Trustee’s certificates of authentication, shall be
taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities, except that the Trustee represents that it is
duly authorized to execute and deliver this Indenture, authenticate the
Securities and perform its obligations hereunder, and that the statements made
by it or to be made by it in a Statement of Eligibility and Qualification on Form T-1
supplied to the Company are true and accurate. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of Securities or the proceeds thereof.

 

Section 6.05           May Hold
Securities. The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its individual or any
other capacity, may become the owner or pledgee of Securities and, subject to
Sections 6.08 and 6.13, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, Security Registrar or such other agent.

 

Section 6.06           Money
Held in Trust. Money held by the Trustee in trust hereunder (including amounts
held by the Trustee as Paying Agent) need not be segregated from other funds
except to the extent required by law. The Trustee shall be under no liability
for interest on any money received by it hereunder except as otherwise agreed
upon in writing with the Company.

 

Section 6.07           Compensation
and Reimbursement. The Company agrees:

 

(1) to
pay to the Trustee from time to time reasonable compensation as negotiated
between the Company and the Trustee for all services rendered by it hereunder
(which compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);

 

(2) except
as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and disbursements of
its agents and counsel), except any such expense, disbursement or advance as
may be attributable to its negligence or bad faith; and

 

(3) to
indemnify the Trustee for, and to hold it harmless against, any loss,
liability, damage, claim or expense, including taxes (other than taxes based
upon or determined or measured by the income of the Trustee), incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder, including the
costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder.

 

When the Trustee incurs
expenses or renders services in connection with an Event of Default specified
in Section 5.01(6) or Section 5.01(7), the expenses (including
the reasonable charges and expenses of its counsel) and the compensation for
the services are intended to constitute expenses of administration under any
applicable Bankruptcy Law.

 

The provisions of this Section 6.07
shall survive this Indenture and the resignation or removal of the Trustee.

 

Section 6.08           Disqualification;
Conflicting Interests. The Trustee shall be disqualified only where such disqualification
is required by Section 310(b) of the Trust Indenture Act. Nothing
shall prevent the Trustee from filing with the Commission the application
referred to in the second to last paragraph of Section 310(b) of the
Trust Indenture Act.

 

23

 

Section 6.09           Corporate
Trustee Required; Eligibility. There shall at all times be a Trustee hereunder
which shall be eligible to act as Trustee under Section 310(a)(1) of
the Trust Indenture Act having a combined capital and surplus (together with
its parent) of at least $100,000,000 and subject to supervision or examination
by federal or State authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. Neither the Company nor any Person directly or
indirectly controlling, controlled by, or under common control with the Company
may serve as Trustee. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

 

Section 6.10           Resignation
and Removal; Appointment of Successor.

 

(a) No resignation or
removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of appointment by
the successor Trustee in accordance with the applicable requirements of Section 6.11.

 

(b) The Trustee may
resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance
by a successor Trustee required by Section 6.11 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

(c) The Trustee may be
removed at any time with respect to the Securities of any series by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series, delivered to the Trustee and to the Company.

 

(d) If at any time:

 

(i) the Trustee shall
fail to comply with Section 310(b) of the Trust Indenture Act after
written request therefor by the Company or by any Holder who has been a bona
fide Holder of a Security for at least six months; or

 

(ii) the Trustee shall
cease to be eligible under Section 6.09 and shall fail to resign after
written request therefor by the Company or by any such Holder of a Security who
has been a bona fide Holder of a Security for at least six months; or

 

(iii) the Trustee shall
become incapable of acting or shall be adjudged a bankrupt or insolvent or a
receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation;

 

then,
in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 315(e) of
the Trust Indenture Act, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.

 

(e) If the Trustee shall
resign, be removed or become incapable of acting, or if a vacancy shall occur
in the office of Trustee for any cause, with respect to the Securities of one
or more series, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee or Trustees with respect to the Securities of that or those
series (it being understood that any such successor Trustee may be appointed
with respect to the Securities of one or more or all of such series and that at
any time there shall be only one Trustee with respect to the Securities of any
particular series) and shall comply with the applicable requirements of Section 6.11.
If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 6.11, become the successor Trustee with
respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company with respect to such Securities. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 6.11, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

(f) The Company shall
give notice of each resignation and each removal of the Trustee with respect to
the Securities of any series and each appointment of a successor Trustee with
respect to the Securities of any series by mailing written notice of such event
by first-class mail, postage prepaid, to all Holders of Securities of such series
as their names and addresses appear in the Security Register. Each notice shall
include the name of the successor Trustee with respect to the Securities of
such series and the address of its Corporate Trust Office.

 

Section 6.11           Acceptance
of Appointment by Successor.

 

(a) In case of the
appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and
deliver to the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on the request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee 

 

24

 

all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder.

 

(b) In case of the
appointment hereunder of a successor Trustee with respect to the Securities of
some (but not all) series, the Company, the retiring Trustee and each successor
Trustee with respect to the Securities of such series shall execute and deliver
an indenture supplemental hereto wherein each successor Trustee shall accept
such appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee
is not retiring with respect to all Securities, shall contain such provisions
as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.

 

(c) Upon request of any
such successor Trustee, the Company shall execute any and all instruments for
more fully and certainly vesting in and confirming to such successor Trustee
all such rights, powers and trusts referred to in paragraph (a) or (b) of
this Section, as the case may be.

 

(d) No successor Trustee
shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under the Trust Indenture
Act.

 

Section 6.12           Merger,
Conversion, Consolidation or Succession to Business. Any corporation into which
the Trustee may be merged or converted or with which it may be consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or
substantially all the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided such corporation shall be
otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor (by merger, conversion,
consolidation or otherwise as permitted hereunder) to such authenticating
Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

 

Section 6.13           Preferential
Collection of Claims Against Company. The Trustee shall comply with Section 311(a) of
the Trust Indenture Act, excluding any creditor relationship listed in Section 311(b) of
the Trust Indenture Act. A Trustee who has resigned or been removed shall be
subject to Section 311(a) of the Trust Indenture Act to the extent
indicated therein.

 

Section 6.14           Appointment
of Authenticating Agent. At any time when any of the Securities remain
Outstanding the Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on
behalf of, and subject to the direction of, the Trustee to authenticate
Securities of such series issued upon exchange, registration of transfer or
partial redemption thereof or pursuant to Section 3.06, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Company and shall at all
times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus (together with its parent) of not less than $100,000,000
and subject to supervision or examination by federal or State authority. If
such Authenticating Agent publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such Authenticating Agent shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published.
If at any time an Authenticating Agent shall cease to be eligible in accordance
with the provisions of this Section, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section.

 

Any corporation into which an
Authenticating Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any
corporation succeeding to the corporate agency or corporate trust business of
an Authenticating Agent, shall continue to be an Authenticating Agent, provided
such corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

 

An Authenticating Agent may
resign at any time by giving written notice thereof to the Trustee and to the
Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the
Company. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time such Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the
Company and shall mail written notice of such appointment by first-class mail,
postage prepaid, to all Holders of Securities of the series with respect to
which 

 

25

 

such
Authenticating Agent will serve, as their names and addresses appear in the Security
Register. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

 

The Company agrees to pay to
each Authenticating Agent from time to time reasonable compensation as
negotiated between the Company and such Authenticating Agent for its services
under this Section.

 

If an appointment with
respect to one or more series is made pursuant to this Section, the Securities
of such series may have endorsed thereon, in addition to the Trustee’s
certificate of authentication, an alternate certificate of authentication in
the following form:

 

Form of
Authenticating Agent’s

Certificate
of Authentication

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  This is one of the Securities of the series
  designated therein referred to in the within-mentioned Indenture.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As
  Authenticating Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Authorized Signatory

  

 

Section 6.15           Compliance
with Tax Laws. The Trustee hereby agrees to comply with all U.S. Federal income
tax information reporting and withholding requirements applicable to it with
respect to payments of premium (if any) and interest on the Securities of any
series, whether acting as Trustee, Security Registrar, Paying Agent or
otherwise with respect to the Securities of any series.

 

ARTICLE 7

 

HOLDERS’
LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 7.01           Company
to Furnish Trustee Names and Addresses of Holders. The Company will furnish or
cause to be furnished to the Trustee:

 

(a) semi-annually, not
later than 15 days after the Regular Record Date for each series of Securities,
a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities as of such Regular Record Date (unless
the Trustee has such information), or if there is no Regular Record Date for
interest for such series of Securities, semi-annually, upon such dates as are
set forth in the Board Resolution or indenture supplemental hereto authorizing
such series, and

 

(b) at such other times
as the Trustee may request in writing, within 30 days after the receipt by the
Company of any such request, a list of similar form and content as of a date
not more than 15 days prior to the time such list is furnished; provided,
however, that so long as the Trustee is the Security Registrar, no such list
shall be required to be furnished.

 

Section 7.02           Preservation
of Information; Communications to Holders.

 

(a) The Trustee shall
preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders contained in the most recent list furnished to the Trustee
as provided in Section 7.01 and the names and addresses of Holders
received by the Trustee in its capacity as Security Registrar. The Trustee may
destroy any list furnished to it as provided in Section 7.01 upon receipt
of a new list so furnished.

 

(b) If three or more
Holders (herein referred to as “APPLICANTS”) apply in writing to the Trustee,
and furnish to the Trustee reasonable proof that each such applicant has owned
a Security for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to
communicate with other Holders with respect to their rights under this
Indenture or under the Securities 

 

26

 

and is accompanied by a copy of the form of
proxy or other communication which such applicants propose to transmit, then
the Trustee shall, within five Business Days after the receipt of such
application, at its election, either:

 

(i) afford such applicants
access to the information preserved at the time by the Trustee in accordance
with Section 7.02(a); or

 

(ii) inform such
applicants as to the approximate number of Holders whose names and addresses
appear in the information preserved at the time by the Trustee in accordance
with Section 7.02(a), and as to the approximate cost of mailing to such
Holders the form of proxy or other communication, if any, specified in such
application.

 

If
the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Holder whose name and address appears in the information preserved
at the time by the Trustee in accordance with Section 7.02(a) a copy
of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender the Trustee shall mail to
such applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion
of the Trustee, such mailing would be contrary to the best interests of the
Holders or would be in violation of applicable law. Such written statement
shall specify the basis of such opinion. If the Commission, after opportunity
for a hearing upon the objections specified in the written statement so filed,
shall enter an order refusing to sustain any of such objections or if, after
the entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all objections so
sustained have been met and shall enter an order so declaring, the Trustee
shall mail copies of such material to all such Holders with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such applicants
respecting their application.

 

(c) Every Holder of
Securities, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of
them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders in accordance with Section 7.02(b),
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under Section 7.02(b).

 

Section 7.03           Reports
by Trustee.

 

(a) Within 60 days after
             of
each year commencing with the year 20    , the Trustee
shall transmit by mail to all Holders of Securities as provided in Section 313(c) of
the Trust Indenture Act, a brief report dated as of
            , if
required by and in compliance with Section 313(a) of the Trust
Indenture Act. The Trustee shall also comply with Section 313(b) of
the Trust Indenture Act.

 

(b) A copy of each such
report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange or inter-dealer quotation system upon which
any Securities are listed, with the Commission and with the Company. The
Company will notify the Trustee when any Securities are listed on any stock
exchange or any inter-dealer quotation system.

 

Section 7.04           Reports
by Company. The Company shall:

 

(1) file
with the Trustee, within 15 days after the Company is required to file the same
with the Commission, copies of the annual reports and of the information,
documents and other reports (or copies of such portions of any of the foregoing
as the Commission may from time to time by rules and regulations
prescribe) which the Company may be required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act; or,
if the Company is not required to file information, documents or reports
pursuant to either of said Sections, then it shall file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time
to time by the Commission, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13 of the
Exchange Act in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations;

 

(2) file
with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional
information, documents and reports with respect to compliance by the Company
with the conditions and covenants of this Indenture as may be required from
time to time by such rules and regulations;

 

(3) transmit
or cause to be transmitted by mail to all Holders, as their names and addresses
appear in the Security Register, (a) as promptly as reasonably practicable
following the furnishing of the same to its stockholders, the Company’s annual
report to stockholders, containing certified financial statements, and any
other financial reports which the Company generally furnishes to its
stockholders, and (b) within 30 days after the filing thereof with the
Trustee, such summaries of any other information, documents and reports required
to be filed by the Company pursuant to paragraphs (1) and (2) of this
Section as may be required by rules and regulations prescribed from
time to time by the Commission; and

 

(4) furnish
to the Trustee, within 90 days after the end of each fiscal year of the Company
(which fiscal year currently ends on the last Friday in the month of December of
each calendar year), a brief certificate from the principal executive officer,
principal financial officer or principal accounting officer as to his or her knowledge
of the Company’s compliance with all conditions and covenants under this
Indenture. For purposes of this paragraph, such compliance shall be determined
without regard to any period of grace or requirement of notice provided under
this Indenture. Such certificate need not comply with Section 1.02.

 

27

 

ARTICLE 8

 

CONSOLIDATION,
MERGER, LEASE, SALE OR TRANSFER

 

Section 8.01           When
Company May Merge, Etc. Except as may be otherwise provided as
contemplated by Section 3.01 relating to Securities of a series, the
Company shall not consolidate with, or merge with or into, any other Person
(whether or not the Company shall be the surviving corporation or entity), or
convey, transfer or lease all or substantially all of its properties and assets
as an entirety or substantially as an entirety to any Person or group of
affiliated Persons, in one transaction or a series of related transactions,
unless:

 

(1) either
the Company shall be the continuing Person or the Person (if other than the
Company) formed by such consolidation or with which or into which the Company is
merged or the Person (or group of affiliated Persons) to which all or
substantially all the properties and assets of the Company as an entirety or
substantially as an entirety are conveyed, transferred or leased shall be a
corporation or other entity (group of affiliated corporations or entities)
organized and existing under the laws of the United States of America or any
State thereof or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form
reasonably satisfactory to the Trustee, all the obligations of the Company
under the Securities and this Indenture; and

 

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

 

Notwithstanding the
foregoing, the Company may (a) consolidate with, or merge with or into, an
Affiliate incorporated for the purpose incorporating the Company in another
jurisdiction and/or (b) convey, transfer or lease all or substantially all
of its properties and assets as an entirety or substantially as an entirety to
any Subsidiary or Subsidiaries, in one transaction or a series of related
transactions.

 

Section 8.02           Opinion
of Counsel. The Company shall deliver to the Trustee prior to the proposed
transaction(s) covered by Section 8.01 an Officers’ Certificate and
an Opinion of Counsel stating that the transaction(s) and such
supplemental indenture comply with this Indenture and that all conditions precedent
to the consummation of the transaction(s) under this Indenture have been
met.

 

Section 8.03           Successor
Corporation Substituted. Upon any consolidation by the Company with or merger
by the Company into any other corporation or other entity or any conveyance,
transfer or lease all or substantially all of the property and assets of the
Company in accordance with Section 8.01, the successor corporation or
other entity formed by such consolidation or into which the Company is merged
or the successor corporation or entity or affiliated group of corporations or
entities to which such lease, sale, assignment or transfer is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
corporation or corporations or entity or entities had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor
corporation or corporations or entity or entities shall be relieved of all obligations
and covenants under this Indenture and the Securities and in the event of such
conveyance or transfer, except in the case of a lease, any such predecessor
corporation may be dissolved and liquidated.

 

ARTICLE 9

 

SUPPLEMENTAL
INDENTURES

 

Section 9.01           Supplemental
Indentures Without Consent of Holders. Without notice to or the consent of any
Holders, the Company, when authorized by a Board Resolution, and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form reasonably satisfactory to the Trustee, for any of
the following purposes:

 

(1) to
evidence the succession of another corporation to the Company and the
assumption by any such successor of the covenants of the Company herein and in
the Securities; or

 

(2) to
add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit of
less than all series of Securities, stating that such covenants are expressly being
included solely for the benefit of such series) or to surrender any right or
power herein conferred upon the Company; or

 

(3) to
add any additional Events of Default with respect to all or any series of
Securities; or

 

(4) to
add or change any of the provisions of this Indenture to such extent as shall
be necessary to permit or facilitate the issuance of Securities in bearer form,
registrable or not registrable as to principal, and with or without interest
coupons; or

 

(5) to
change or eliminate any of the provisions of this Indenture, provided that any
such change or elimination shall become effective only when there is no
Security Outstanding of any series created prior to the execution of such
supplemental indenture which is entitled to the benefit of such provision; or

 

(6) to
secure the Securities; or

 

(7) to
establish the form or terms of Securities of any series as permitted by
Sections 2.01 and 3.01; or

 

28

 

(8) to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 6.11(b); or

 

(9) to
cure any ambiguity, defect or inconsistency or to correct or supplement any
provision herein which may be inconsistent with any other provision herein; or

 

(10) to
make any change that does not materially adversely affect the interests of the
Holders of Securities of any series then Outstanding; or

 

(11)
to add Guarantees or Guarantors with respect to all or any series of the
Securities; or

 

(12)
to provide for uncertificated Securities in addition to or in place of
certificated Securities (provided that the uncertificated Securities are issued
in registered form for purposes of Section 163(f) of the Internal
Revenue Code or in a manner such that the uncertificated Securities are
described in Section 163(f)(2)(B) of such Code).

 

Upon
request of the Company, accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and upon receipt by the Trustee
of the documents described in (and subject to the last sentence of) Section 9.03,
the Trustee shall join with the Company in the execution of any supplemental
indenture authorized or permitted by the terms of this Indenture.

 

Section 9.02           Supplemental
Indentures with Consent of Holders. With the written consent of the Holders of
a majority in aggregate principal amount of the Outstanding Securities of each
series affected by such supplemental indenture (with the Securities of each
series voting as a class), by Act of said Holders delivered to the Company and
the Trustee, the Company, when authorized by a Board Resolution, and the
Trustee shall, subject to Section 9.03, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
or of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby,

 

(1) change
the Stated Maturity of the principal of, or premium, if any, or any installment
of principal of or premium, if any, or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable
upon the optional redemption or Stated Maturity thereof, or change the manner
in which the amount of any principal thereof or premium, if any, or interest
thereon is determined, or reduce the amount of the principal of any Original
Issue Discount Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 5.02, or change
any Place of Payment where, or the coin or currency or currency unit in which,
any Security or any premium or interest thereon is payable, or impair the right
to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date);

 

(2) reduce
the percentage in principal amount of the Outstanding Securities of any series,
the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver of compliance with
certain provisions of this Indenture or Defaults or Events of Default hereunder
and their consequences provided for in this Indenture; or

 

(3) modify
any of the provisions of this Section, Section 5.13 or Section 10.06,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Outstanding Security affected thereby; provided, however,
that this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant changes
in this Section and Section 10.06, or the deletion of this proviso,
in accordance with the requirements of Sections 6.11(b) and 9.01(8).

 

A supplemental indenture
which changes or eliminates any covenant or other provisions of this Indenture
which has expressly been included solely for the benefit of one or more
particular series of Securities, or which modifies the rights of the Holders of
Securities of such series with respect to such covenant or other provision,
shall be deemed not to affect the rights under this Indenture of the Holders of
Securities of any other series.

 

It shall not be necessary for
any Act of Holders under this Section to approve the particular form of
any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

 

Section 9.03           Execution
of Supplemental Indentures. The Trustee shall sign any supplemental indenture
authorized pursuant to this Article, subject to the last sentence of this Section 9.03.
In executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the
trusts created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 6.01) shall be fully protected in relying upon, an
Officers’ Certificate and an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

 

Section 9.04           Effect
of Supplemental Indentures. Upon the execution of any supplemental indenture
under this Article, this Indenture shall be modified in accordance therewith,
and such supplemental indenture shall form a part of this Indenture for all
purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.

 

29

 

Section 9.05           Conformity
with Trust Indenture Act. Every supplemental indenture executed pursuant to
this Article shall conform to the requirements of the Trust Indenture Act
as then in effect.

 

Section 9.06           Reference
in Securities to Supplemental Indentures. Securities of any series
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Company shall so determine, new Securities of
any series so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series.

 

ARTICLE
10

 

COVENANTS

 

Section 10.01         Payments
of Securities. With respect to each series of Securities, the Company will duly
and punctually pay the principal of (and premium, if any) and interest on such
Securities in accordance with their terms and this Indenture, and will duly
comply with all the other terms, agreements and conditions contained in, or
made in the Indenture for the benefit of, the Securities of such series.

 

Section 10.02         Maintenance
of Office or Agency. The Company will maintain an office or agency in each
Place of Payment where Securities may be surrendered for registration of
transfer or exchange or for presentation for payment, where notices and demands
to or upon the Company in respect of the Securities and this Indenture may be
served. The Company will give prompt written notice to the Trustee of the location,
and any change in location, of such office or agency. If at any time the
Company shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the
Trustee as set forth in Section 1.05 hereof.

 

The Company may also from
time to time designate one or more other offices or agencies where the
Securities 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.

 

Section 10.03         Compliance
Certificates.

 

(a) The Company shall
deliver to the Trustee within 90 days after the end of each fiscal year of the
Company (which fiscal year currently ends on the last Friday in the month of December of
each calendar year), an Officers’ Certificate stating whether or not the signer
knows of any Default or Event of Default by the Company that occurred prior to
the end of the fiscal year and is then continuing. If the signer does know of
such a Default or Event of Default, the certificate shall describe each such
Default or Event of Default and its status and the specific section or sections
of this Indenture in connection with which such Default or Event of Default has
occurred. The Company shall also promptly notify the Trustee in writing should
the Company’s fiscal year be changed so that the end thereof is on any date
other than the date on which the Company’s fiscal year currently ends. The
certificate need not comply with Section 1.02 hereof, but shall comply
with Section 314(a)(4) of the Trust Indenture Act.

 

(b) The Company shall
deliver to the Trustee, within 10 days after the occurrence thereof, notice of
any acceleration which with the giving of notice and the lapse of time would be
an Event of Default within the meaning of Section 5.01(5) hereof.

 

(c) The Company shall
deliver to the Trustee forthwith upon becoming aware of a Default or Event of
Default (but in no event later than 10 days after the occurrence of each
Default or Event of Default that is continuing), an Officers’ Certificate
setting forth the details of such Default or Event of Default and the action
that the Company proposes to take with respect thereto and the specific section
or sections of this Indenture in connection with which such Default or Event of
Default has occurred.

 

Section 10.04         Waiver
of Stay, Extension or Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead, or in
any manner whatsoever claim, and will actively resist any and all efforts to be
compelled to take the benefit or advantage of, any stay or extension law or any
usury law or other law, which would prohibit or forgive the Company from paying
all or any portion of the principal of and/or interest on the Securities as
contemplated herein, wherever enacted, now or at any time hereafter in force,
or which may affect the covenants or the performance of this Indenture; and (to
the extent that it may lawfully do so) the Company hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

 

Section 10.05         Money
for Securities Payments to Be Held in Trust. If the Company shall at any time
act as its own Paying Agent with respect to any series of Securities, it will,
on or before each due date of the principal of (and premium, if any) or
interest on any of the Securities of that series, segregate and hold in trust
for the benefit of the Persons entitled thereto a sum sufficient to pay the
principal (and premium, if any) or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and will
promptly notify the Trustee of its action or failure so to act.

 

Whenever the Company shall
have one or more Paying Agents for any series of Securities, it will, on or
prior to each due date of the principal of (and premium, if any) or interest on
any Securities of that series, deposit with a Paying Agent a sum sufficient to
pay the principal (and premium, if any) or interest so becoming due, such sum
to be held in trust for the benefit of the Persons entitled to such principal,
premium or interest, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure to so act.

 

30

 

The Company will cause each
Paying Agent for any series of Securities (other than the Trustee) to execute
and deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent will:

 

(1) hold
all sums held by it for the payment of the principal of (and premium, if any)
or interest on Securities of that series in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;

 

(2) give
the Trustee notice of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment of principal (and
premium, if any) or interest on the Securities of that series; and

 

(3) at
any time during the continuance of any such default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent.

 

The Company may at any time,
for the purpose of obtaining the satisfaction and discharge of this Indenture
or for any other purpose, pay, or by Company Order direct any Paying Agent to
pay, to the Trustee all sums held in trust by the Company or such Paying Agent,
such sums to be held by the Trustee upon the same trusts as those upon which
such sums were held by the Company or such Paying Agent; and, upon such payment
by any Paying Agent to the Trustee, such Paying Agent shall be released from
all further liability with respect to such money.

 

Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of (and premium, if any) or interest on any Security
of any series and remaining unclaimed for one year after such principal (and
premium, if any) or interest has become due and payable shall, subject to any
applicable escheat laws, be paid to the Company on Company Request, or (if then
held by the Company) shall be discharged from such trust; and the Holder of
such Security shall thereafter, as an unsecured general creditor, 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, shall thereupon cease; provided, however, that the Trustee
of such Paying Agent, before being required to make any such repayment, may at
the expense of the Company cause to be published once, in a newspaper published
in the English language, customarily published on each Business Day and of
general circulation in New York, New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

 

Section 10.06         Waiver
of Certain Covenants. The Company may omit in any particular instance to comply
with any term, provision or condition set forth in Article 8, Article 10
(other than Sections      or     ) or
any covenant specified as contemplated under Section 3.01 with respect to
the Securities of any series if before the time for such compliance the Holders
of not less than a majority in principal amount of the Outstanding Securities
of such series shall, by Act of such Holders, either waive such compliance in
such instance or generally waive compliance with such term, provision or
condition, but no such waiver shall extend to or affect such term, provision or
condition except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Company and the duties of the Trustee
in respect of any such term, provision or condition shall remain in full force
and effect.

 

ARTICLE
11

 

REDEMPTION
OF SECURITIES

 

Section 11.01         Applicability
of Article. Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 3.01 for Securities of any
series) in accordance with this Article.

 

Section 11.02         Election
to Redeem; Notice to Trustee. The election of the Company to redeem any
Securities shall be evidenced by a Board Resolution. In case of any redemption
at the election of the Company of less than all the Securities of any series,
the Company shall, at least 30 and not more than 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
reasonably satisfactory to the Trustee), notify the Trustee of such Redemption
Date and of the principal amount of Securities of such series to be redeemed.
In the case of any redemption of Securities prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers’ Certificate evidencing compliance with such restriction.

 

Section 11.03         Selection
by Trustee of Securities to Be Redeemed. If less than all the Securities of any
series are to be redeemed, the particular Securities to be redeemed shall be
selected prior to the giving of the applicable notice of redemption to Holders
by the Trustee, from the Outstanding Securities of such series not previously
called for redemption, substantially pro rata, by lot or by any other method as
the Trustee considers fair and appropriate and that complies with the
requirements of the principal national securities exchange, if any, on which
such Securities are listed, and which may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series; provided that in case
the Securities of such series have different terms and maturities, the
Securities to be redeemed shall be selected by the Company and the Company
shall give notice thereof to the Trustee.

 

The Trustee shall promptly
notify the Company in writing of the Securities selected for redemption and, in
the case of any Securities selected for partial redemption, the principal
amount thereof to be redeemed.

 

31

 

For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to
the redemption of the Securities shall relate, in the case of any Securities
redeemed or to be redeemed only in part, to the portion of the principal amount
of such Securities which has been or is to be redeemed.

 

Section 11.04         Notice
of Redemption. Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 45 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in
the Security Register.

 

All notices of redemption
shall state:

 

(1) the
Redemption Date;

 

(2) the
Redemption Price;

 

(3) if
less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amounts)
of the particular Securities to be redeemed;

 

(4) that
on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon
will cease to accrue on and after said date;

 

(5) the
place or places where such Securities are to be surrendered for payment of the
Redemption Price;

 

(6) that
the redemption is for a sinking fund, if such is the case; and

 

(7) the
CUSIP number, if any, of the Securities to be redeemed.

 

Notice of redemption of
Securities to be redeemed at the election of the Company shall be given by the
Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company.

 

Section 11.05         Deposit
of Redemption Price. On or prior to any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section 10.05)
an amount of money sufficient to pay the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all
the Securities which are to be redeemed on that date.

 

Unless any Security by its
terms prohibits any sinking fund payment obligation from being satisfied by
delivering and crediting Securities (including Securities redeemed otherwise
than through a sinking fund), the Company may deliver such Securities to the
Trustee for crediting against such payment obligation in accordance with the
terms of such Securities and this Indenture.

 

Section 11.06         Securities
Payable on Redemption Date. Notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified, and from and
after such date (unless the Company shall default in the payment of the
Redemption Price and accrued interest) such Securities shall cease to bear
interest. Upon surrender of any such Security for redemption in accordance with
said notice, such Security shall be paid by the Company at the Redemption Price,
together with accrued interest to the Redemption Date; provided, however, that
installments of interest whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Regular or Special Record Dates according to their terms and the
provisions of Section 3.07.

 

If any Security called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security.

 

Section 11.07         Securities
Redeemed in Part. Any Security which is to be redeemed only in part shall be
surrendered at an office or agency of the Company at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by,
or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security
or Securities of the same series and Stated Maturity, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal
to and in exchange for the unredeemed portion of the principal of the Security
so surrendered.

 

ARTICLE
12

 

SINKING
FUNDS

 

Section 12.01         Applicability
of Article. The provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of a series, except as otherwise
specified as contemplated by Section 3.01 for Securities of such series.

 

The minimum amount of any
sinking fund payment provided for by the terms of Securities of any series is
herein referred to as a “MANDATORY SINKING FUND PAYMENT,” and any payment in
excess of such minimum amount provided for by the terms of Securities of any 

 

32

 

series
is herein referred to as an “OPTIONAL SINKING FUND PAYMENT.” If provided for by
the terms of Securities of any series, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 12.02. Each
sinking fund payment shall be applied to the redemption of Securities of any
series as provided for by the terms of Securities of such series.

 

Section 12.02         Satisfaction
of Sinking Fund Payments with Securities. The Company (1) may deliver
Securities of a series (other than any Securities previously called for
redemption) and (2) may apply as a credit Securities of a series which
have been redeemed either at the election of the Company pursuant to the terms
of such Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the
Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; provided that such
Securities have not been previously so credited. Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.

 

Section 12.03         Redemption
of Securities for Sinking Fund. Not less than 45 days (or such shorter period
reasonably acceptable to the Trustee) prior to each sinking fund payment date
for any series of Securities, the Company will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting
Securities of that series pursuant to Section 12.02 and will also deliver
to the Trustee any Securities to be so delivered (which have not been
previously delivered). Not less than 30 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 11.03 and
cause notice of the redemption thereof to be given in the name of and at the
expense of the Company in the manner provided in Section 11.04. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 11.06 and 11.07.

 

ARTICLE
13

 

DEFEASANCE
AND COVENANT DEFEASANCE

 

Section 13.01         Applicability
of Article; Company’s Option to Effect Defeasance or Covenant Defeasance.
Unless as otherwise specified as contemplated by Section 3.01 for
Securities of such series, provision is made for the inapplicability of, in
whole or in part, or any modification to, either or both of (a) defeasance
of the Securities of a series under Section 13.02 or (b) covenant
defeasance of the Securities of a series under Section 13.03, then the
provisions of such Section or Sections, as the case may be, together with
the other provisions of this Article, shall be applicable to the Securities of
such series and the Company may at its option by Board Resolution, at any time,
with respect to the Securities of such series elect to have either Section 13.02
(unless inapplicable) or Section 13.03 (unless inapplicable) be applied to
the Outstanding Securities of such series upon compliance with the applicable conditions
set forth below in this Article.

 

Section 13.02         Defeasance
and Discharge. Upon the Company’s exercise of the option provided in Section 13.01
to defease the Outstanding Securities of a particular series, the Company shall
be discharged from its obligations with respect to the Outstanding Securities
of such series on the date the applicable conditions set forth in Section 13.04
are satisfied (hereinafter, “DEFEASANCE”). Defeasance shall mean that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Outstanding Securities of such series and to have satisfied
all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same); provided, however,
that the following rights, obligations, powers, trusts, duties and immunities
shall survive until otherwise terminated or discharged hereunder: (A) the
rights of Holders of Outstanding Securities of such series to receive, solely
from the trust fund provided for in Section 13.04, payments in respect of
the principal of (and premium, if any) and interest on such Securities when
such payments are due, (B) the Company’s obligations with respect to such
Securities under Sections 3.04, 3.05, 3.06, 10.02 and 10.05, (C) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and (D) this
Article. Subject to compliance with this Article, the Company may exercise its
option with respect to defeasance under this Section 13.02 notwithstanding
the prior exercise of its option with respect to covenant defeasance under Section 13.03
in regard to the Securities of such series.

 

Section 13.03         Covenant
Defeasance. Upon the Company’s exercise of the option provided in Section 13.01
to obtain a covenant defeasance with respect to the Outstanding Securities of a
particular series, the Company shall be released from its obligations under
this Indenture and any applicable supplemental indenture (except its
obligations under Sections 3.04, 3.05, 3.06, 5.06, 5.09, 6.10, 10.01, 10.02,
10.03, 10.04 and 10.05) with respect to the Outstanding Securities of such
series on and after the date the applicable conditions set forth in Section 13.04
are satisfied (hereinafter, “COVENANT DEFEASANCE”). Covenant defeasance shall
mean that, with respect to the Outstanding Securities of such series, the
Company may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in this Indenture and any applicable
supplemental indenture (except its obligations under Sections 3.04, 3.05, 3.06,
5.06, 5.09, 6.10, 10.01, 10.02, 10.03, 10.04 and 10.05), whether directly or
indirectly by reason of any reference elsewhere herein or by reason of any
reference to any other provision herein or in any other document, and such
omission to comply shall not constitute an Event of Default under Section 5.01(4) or
any such supplemental indenture with respect to Outstanding Securities of such
series, and the remainder of this Indenture and of the Securities of such
series shall be unaffected thereby.

 

Section 13.04         Conditions
to Defeasance or Covenant Defeasance. The following shall be the conditions to
defeasance under Section 13.02 and covenant defeasance under Section 13.03
with respect to the Outstanding Securities of a particular series:

 

(1) The
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 6.09
who shall agree to comply with the provisions of this Article applicable
to it), under the terms of an irrevocable trust agreement in form and substance
reasonably satisfactory to such Trustee, as trust funds in trust for the
purpose of making the following payments, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Securities, (A) money
in an amount, or (B) U.S. Government Obligations which through the
scheduled payment of principal and interest in respect thereof in accordance
with their terms will 

 

33

 

provide,
not later than the due date of any payment, money in an amount, or (C) a
combination thereof, in each case sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, (i) the principal of (and premium, if any, on) and each
installment of principal of (and premium, if any) and interest on the
Outstanding Securities of such series on the Stated Maturity of such principal
or installment of principal or interest and (ii) any mandatory sinking
fund payments or analogous payments applicable to the Outstanding Securities of
such series on the day on which such payments are due and payable in accordance
with the terms of this Indenture and of such Securities.

 

(2) No
Default or Event of Default with respect to the Securities of such series shall
have occurred and be continuing on the date of such deposit or shall occur as a
result of such deposit.

 

(3) Such
deposit, defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a default under, any other material debt agreement
or instrument to which the Company is a party or by which it is bound.

 

(4) In
the case of an election with respect to Section 13.02, the Company shall
have delivered to the Trustee either (a) a ruling directed to the Trustee
received from the Internal Revenue Service to the effect that the Holders of
the Outstanding Securities of such series will not recognize income, gain or
loss for federal income tax purposes as a result of such defeasance and will be
subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such defeasance had not occurred
or (B) an Opinion of Counsel, based on such ruling or on a change in the
applicable federal income tax law since the date of this Indenture, in either
case to the effect that, and based thereon such opinion shall confirm that, the
Holders of the Outstanding Securities of such series will not recognize income,
gain or loss for federal income tax purposes as a result of such defeasance and
will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such defeasance had not
occurred.

 

(5) In
the case of an election with respect to Section 13.03, the Company shall
have delivered to the Trustee an Opinion of Counsel or a ruling directed to the
Trustee received from the Internal Revenue Service to the effect that the
Holders of the Outstanding Securities of such series will not recognize income,
gain or loss for federal income tax purposes as a result of such covenant
defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such covenant
defeasance had not occurred.

 

(6) Such
defeasance or covenant defeasance shall be effected in compliance with any
additional terms, conditions or limitations which may be imposed on the Company
in connection therewith pursuant to Section 3.01.

 

(7) The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to either the defeasance under Section 13.02 or the covenant
defeasance under Section 13.03 (as the case may be) have been complied
with.

 

Section 13.05         Deposited
Money and Government Obligations To Be Held in Trust. Subject to the provisions
of the last paragraph of Section 10.05, all money and Government
Obligations (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively for purposes of this Section 13.05,
the “TRUSTEE”) pursuant to Section 13.04 in respect of the Outstanding
Securities of a particular series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities 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 Holders of such Securities of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money need not be segregated from other funds except to the extent required by
law.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the U.S. Government Obligations deposited pursuant to Section 13.04
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 Securities of such series.

 

Anything in this Article to
the contrary notwithstanding, the Trustee shall deliver or pay to the Company
from time to time upon Company Request any money or Government Obligations held
by it as provided in Section 13.04 with respect to Securities of any
series which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, are in excess of the amount thereof which would then be required
to be deposited for the purpose for which such money or Government Obligations
were deposited.

 

Section 13.06         Reinstatement.
If the Trustee or the Paying Agent is unable to apply any money or U.S.
Government Obligations, as the case may be, in accordance with this Article with
respect to any Securities by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations under this Indenture and such Securities from
which the Company has been discharged or released pursuant to Section 13.02
or 13.03 shall be revived and reinstated as though no deposit had occurred
pursuant to this Article with respect to such Securities, until such time
as the Trustee or Paying Agent is permitted to apply all money or U.S.
Government Obligations, as the case may be, held in trust pursuant to Section 13.05
with respect to such Securities in accordance with this Article; provided,
however, that if the Company makes any payment of principal of or any premium
or interest on any such Security following such reinstatement of its
obligations, the Company shall be subrogated to the rights (if any) of the
Holders of such Securities to receive such payment from the money or U.S.
Government Obligations, as the case may be, so held in trust.

 

34

 

ARTICLE
14

 

GUARANTEES

 

Section 14.01         Guarantee.
Any series of Securities may be guaranteed by one or more of the Guarantors.
The terms and the form of any such Guarantee will be established in the manner
contemplated by Section 3.01 for that particular series of Securities.

 

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

 

	
   

  	
  INTERLINE
  BRANDS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

35

 

	
   

  	
  [GUARANTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

36

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