Document:

Exhibit 10.2

 

 

OMEGA HEALTHCARE INVESTORS, INC.

as Issuer,

 

the SUBSIDIARY GUARANTORS named herein,

as Subsidiary Guarantors,

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

INDENTURE

 

Dated as of March 22, 2004

 

7% Senior Notes due 2014

 

 

 

 

CROSS-REFERENCE TABLE

 

	
  Trust Indenture Act

  Section

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.08; 7.10

  
	
  (b)

  	
   

  	
  7.08; 7.10; 12.02

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  11.03

  
	
  (c)

  	
   

  	
  11.03

  
	
  313(a)

  	
   

  	
  7.06

  
	
  (b)(1)

  	
   

  	
  7.06

  
	
  (b)(2)

  	
   

  	
  7.06

  
	
  (c)

  	
   

  	
  7.06; 11.02

  
	
  (d)

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
  4.05; 4.15; 11.02

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  7.02;
  11.04; 11.05

  
	
  (c)(2)

  	
   

  	
  7.02;
  11.04; 11.05

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  11.05

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.01(b);
  7.02(a)

  
	
  (b)

  	
   

  	
  7.05;
  11.02

  
	
  (c)

  	
   

  	
  7.01

  
	
  (d)

  	
   

  	
  6.05;
  7.01(c)

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a)(last
  sentence)

  	
   

  	
  2.09

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  9.02

  
	
  (b)

  	
   

  	
  6.07

  
	
  (c)

  	
   

  	
  9.04

  
	
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (b)

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
  11.01

  
	
  (c)

  	
   

  	
  11.01

  

 

N.A.
means Not Applicable

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

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE

  
	
   

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  
	
   

  
	
  SECTION 1.01.

  	
  Definitions.

  	
   

  
	
  SECTION 1.02.

  	
  Other Definitions.

  	
   

  
	
  SECTION 1.03.

  	
  Incorporation
  by Reference of Trust Indenture Act.

  	
   

  
	
  SECTION 1.04.

  	
  Rules of
  Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  
	
  THE NOTES

  
	
   

  
	
  SECTION 2.01.

  	
  Form and Dating.

  	
   

  
	
  SECTION 2.02.

  	
  Execution,
  Authentication and Denomination; Additional Notes; Exchange Notes

  	
   

  
	
  SECTION 2.03.

  	
  Registrar and
  Paying Agent.

  	
   

  
	
  SECTION 2.04.

  	
  Paying
  Agent To Hold Assets in Trust.

  	
   

  
	
  SECTION 2.05.

  	
  Holder Lists.

  	
   

  
	
  SECTION 2.06.

  	
  Transfer and
  Exchange.

  	
   

  
	
  SECTION 2.07.

  	
  Replacement Notes.

  	
   

  
	
  SECTION 2.08.

  	
  Outstanding Notes.

  	
   

  
	
  SECTION 2.09.

  	
  Treasury Notes.

  	
   

  
	
  SECTION 2.10.

  	
  Temporary Notes.

  	
   

  
	
  SECTION 2.11.

  	
  Cancellation.

  	
   

  
	
  SECTION 2.12.

  	
  Defaulted Interest.

  	
   

  
	
  SECTION 2.13.

  	
  CUSIP and ISIN
  Numbers.

  	
   

  
	
  SECTION 2.14.

  	
  Deposit of Moneys.

  	
   

  
	
  SECTION 2.15.

  	
  Book-Entry
  Provisions for Global Notes.

  	
   

  
	
  SECTION 2.16.

  	
  Special
  Transfer and Exchange Provisions.

  	
   

  
	
   

  
	
  ARTICLE THREE

  
	
   

  
	
  REDEMPTION

  
	
   

  
	
  SECTION 3.01.

  	
  Notices to Trustee.

  	
   

  
	
  SECTION 3.02.

  	
  Selection
  of Notes To Be Redeemed.

  	
   

  
	
  SECTION 3.03.

  	
  Notice of
  Redemption.

  	
   

  
	
  SECTION 3.04.

  	
  Effect of
  Notice of Redemption.

  	
   

  
	
  SECTION 3.05.

  	
  Deposit of
  Redemption Price.

  	
   

  
	
  SECTION 3.06.

  	
  Notes Redeemed in
  Part.

  	
   

  

 

i

 

	
  ARTICLE FOUR

  
	
   

  
	
  COVENANTS

  
	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes.

  	
   

  
	
  SECTION 4.02.

  	
  Maintenance
  of Office or Agency.

  	
   

  
	
  SECTION 4.03.

  	
  Corporate Existence.

  	
   

  
	
  SECTION 4.04.

  	
  Payment of Taxes.

  	
   

  
	
  SECTION 4.05.

  	
  Compliance
  Certificate; Notice of Default.

  	
   

  
	
  SECTION 4.06.

  	
  Waiver of
  Stay, Extension or Usury Laws.

  	
   

  
	
  SECTION 4.07.

  	
  Change of Control.

  	
   

  
	
  SECTION 4.08.

  	
  Limitations
  on Additional Indebtedness.

  	
   

  
	
  SECTION 4.09.

  	
  Limitations
  on Restricted Payments.

  	
   

  
	
  SECTION 4.10.

  	
  Maintenance
  of Total Unencumbered Assets.

  	
   

  
	
  SECTION 4.11.

  	
  Limitations
  on Asset Sales.

  	
   

  
	
  SECTION 4.12.

  	
  Limitations
  on Transactions with Affiliates.

  	
   

  
	
  SECTION 4.13.

  	
  Limitations
  on Dividend and Other Payment Restrictions

  	
   

  
	
   

  	
  Affecting
  Restricted Subsidiaries.

  	
   

  
	
  SECTION 4.14.

  	
  Limitation
  on Issuances of Guarantees by Restricted

  	
   

  
	
   

  	
  Subsidiaries.

  	
   

  
	
  SECTION 4.15.

  	
  Reports to Holders.

  	
   

  
	
  SECTION 4.16.

  	
  Suspension of
  Covenants

  	
   

  
	
   

  
	
  ARTICLE FIVE

  
	
   

  
	
  SUCCESSOR
  CORPORATION

  
	
   

  
	
  SECTION 5.01.

  	
  Consolidation,
  Merger and Sale of Assets.

  	
   

  
	
   

  
	
  ARTICLE SIX

  
	
   

  
	
  DEFAULT
  AND REMEDIES

  
	
   

  
	
  SECTION 6.01.

  	
  Events of Default.

  	
   

  
	
  SECTION 6.02.

  	
  Acceleration.

  	
   

  
	
  SECTION 6.03.

  	
  Other Remedies.

  	
   

  
	
  SECTION 6.04.

  	
  Waiver of Past
  Defaults.

  	
   

  
	
  SECTION 6.05.

  	
  Control by Majority.

  	
   

  
	
  SECTION 6.06.

  	
  Limitation on Suits.

  	
   

  
	
  SECTION 6.07.

  	
  Rights
  of Holders To Receive Payment.

  	
   

  
	
  SECTION 6.08.

  	
  Collection
  Suit by Trustee.

  	
   

  
	
  SECTION 6.09.

  	
  Trustee
  May File Proofs of Claim.

  	
   

  
	
  SECTION 6.10.

  	
  Priorities.

  	
   

  
	
  SECTION 6.11.

  	
  Undertaking for
  Costs.

  	
   

  

 

ii

 

	
  ARTICLE SEVEN

  
	
   

  
	
  TRUSTEE

  
	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee.

  	
   

  
	
  SECTION 7.02.

  	
  Rights of Trustee.

  	
   

  
	
  SECTION 7.03.

  	
  Individual
  Rights of Trustee.

  	
   

  
	
  SECTION 7.04.

  	
  Trustee’s
  Disclaimer.

  	
   

  
	
  SECTION 7.05.

  	
  Notice of Default.

  	
   

  
	
  SECTION 7.06.

  	
  Reports by
  Trustee to Holders.

  	
   

  
	
  SECTION 7.07.

  	
  Compensation
  and Indemnity.

  	
   

  
	
  SECTION 7.08.

  	
  Replacement of
  Trustee.

  	
   

  
	
  SECTION 7.09.

  	
  Successor
  Trustee by Merger, Etc.

  	
   

  
	
  SECTION 7.10.

  	
  Eligibility;
  Disqualification.

  	
   

  
	
  SECTION 7.11.

  	
  Preferential
  Collection of Claims Against the Issuer.

  	
   

  
	
   

  
	
  ARTICLE EIGHT

  
	
   

  
	
  DISCHARGE OF
  INDENTURE; DEFEASANCE

  
	
   

  
	
  SECTION 8.01.

  	
  Termination
  of the Issuer’s Obligations.

  	
   

  
	
  SECTION 8.02.

  	
  Legal
  Defeasance and Covenant Defeasance.

  	
   

  
	
  SECTION 8.03.

  	
  Conditions
  to Legal Defeasance or Covenant Defeasance.

  	
   

  
	
  SECTION 8.04.

  	
  Application
  of Trust Money.

  	
   

  
	
  SECTION 8.05.

  	
  Repayment to the
  Issuer.

  	
   

  
	
  SECTION 8.06.

  	
  Reinstatement.

  	
   

  
	
   

  
	
  ARTICLE NINE

  
	
   

  
	
  AMENDMENTS, SUPPLEMENTS
  AND WAIVERS

  
	
   

  
	
  SECTION 9.01.

  	
  Without
  Consent of Holders.

  	
   

  
	
  SECTION 9.02.

  	
  With Consent of
  Holders.

  	
   

  
	
  SECTION 9.03.

  	
  Compliance
  with the Trust Indenture Act.

  	
   

  
	
  SECTION 9.04.

  	
  Revocation
  and Effect of Consents.

  	
   

  
	
  SECTION 9.05.

  	
  Notation
  on or Exchange of Notes.

  	
   

  
	
  SECTION 9.06.

  	
  Trustee
  To Sign Amendments, Etc.

  	
   

  
	
   

  
	
  ARTICLE TEN

  
	
   

  
	
  SUBSIDIARY
  GUARANTEE

  
	
   

  
	
  SECTION 10.01.

  	
  Guarantee.

  	
   

  
	
  SECTION 10.02.

  	
  Limitation
  on Subsidiary Guarantor Liability.

  	
   

  
	
  SECTION 10.03.

  	
  Execution
  and Delivery of Subsidiary Guarantee.

  	
   

  
	
  SECTION 10.04.

  	
  Release
  of a Subsidiary Guarantor.

  	
   

  

 

iii

 

	
  ARTICLE ELEVEN

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  
	
  SECTION 11.01.

  	
  Trust
  Indenture Act Controls.

  	
   

  
	
  SECTION 11.02.

  	
  Notices.

  	
   

  
	
  SECTION 11.03.

  	
  Communications
  by Holders with Other Holders.

  	
   

  
	
  SECTION 11.04.

  	
  Certificate
  and Opinion as to Conditions Precedent.

  	
   

  
	
  SECTION 11.05.

  	
  Statements
  Required in Certificate or Opinion.

  	
   

  
	
  SECTION 11.06.

  	
  Rules
  by Paying Agent or Registrar.

  	
   

  
	
  SECTION 11.07.

  	
  Legal Holidays.

  	
   

  
	
  SECTION 11.08.

  	
  Governing Law.

  	
   

  
	
  SECTION 11.09.

  	
  No
  Adverse Interpretation of Other Agreements.

  	
   

  
	
  SECTION 11.10.

  	
  No Recourse
  Against Others.

  	
   

  
	
  SECTION 11.11.

  	
  Successors.

  	
   

  
	
  SECTION 11.12.

  	
  Duplicate
  Originals.

  	
   

  
	
  SECTION 11.13.

  	
  Severability.

  	
   

  
	
   

  	
   

  
	
  SIGNATURES

  	
   

  

 

 

	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Form of Note

  
	
  Exhibit B

  	
   

  	
  -

  	
   

  	
  Form of Legends

  
	
  Exhibit C

  	
   

  	
  -

  	
   

  	
  Form of Certificate To Be Delivered in Connection with Transfers to
  Non-QIB Accredited Investors

  
	
  Exhibit D

  	
   

  	
  -

  	
   

  	
  Form of Certificate To Be Delivered in Connection with Transfers
  Pursuant to Regulation S

  
	
  Exhibit E

  	
   

  	
  -

  	
   

  	
  Form of Notation of Subsidiary Guarantee

  

 

Note:                   This Table of
Contents shall not, for any purpose, be deemed to be part of this Indenture.

 

iv

 

INDENTURE dated as of
March 22, 2004 among Omega Healthcare Investors, Inc., a Maryland corporation
(the “Issuer”),
and each of the Subsidiary Guarantors named herein, as Subsidiary Guarantors,
and U.S. Bank National Association, a national banking association organized
and existing under the laws of the United States of America, as Trustee (the “Trustee”).

 

The Issuer has duly
authorized the creation of an issue of 7% Senior Notes due 2014 and, to provide
therefor, the Issuer and the Subsidiary Guarantors have duly authorized the
execution and delivery of this Indenture. 
All things necessary to make the Notes, when duly issued and executed by
the Issuer and authenticated and delivered hereunder, the valid and binding
obligations of the Issuer and to make this Indenture a valid and binding
agreement of the Issuer and the Subsidiary Guarantors have been done.

 

THIS INDENTURE WITNESSETH

 

For and in consideration
of the premises and the purchase of the Notes by the Holders thereof, the
parties hereto covenant and agree, for the equal and proportionate benefit of
all Holders, as follows:

 

ARTICLE ONE

 

DEFINITIONS AND
INCORPORATION BY REFERENCE

 

SECTION 1.01.                                              Definitions.

 

Set forth below are
certain defined terms used in this Indenture.

 

“Acquired Indebtedness” means
Indebtedness of a Person existing at the time such Person becomes a Restricted
Subsidiary or that is assumed in connection with an Asset Acquisition from such
Person by a Restricted Subsidiary and not incurred by such Person in connection
with, or in anticipation of, such Person becoming a Restricted Subsidiary or
such Asset Acquisition; provided, however, that Indebtedness of
such Person that is redeemed, defeased, retired or otherwise repaid at the time
of or immediately upon consummation of the transactions by which such Person
becomes a Restricted Subsidiary or such Asset Acquisition shall not be Acquired
Indebtedness.

 

“Additional Interest” has the
meaning set forth in the Registration Rights Agreement.

 

“Adjusted Consolidated Net Income”
means, for any period, the aggregate net income (or loss) (before giving effect
to cash dividends on preferred stock of the Issuer or charges resulting from
the redemption of preferred stock of the Issuer) of the Issuer and its
Restricted Subsidiaries for such period determined on a consolidated basis in
conformity with GAAP; provided, however, that the following
items shall be excluded in computing Adjusted Consolidated Net Income, without
duplication:

 

 

(1)           the net income of any Person, other
than the Issuer or a Restricted Subsidiary, except to the extent of the amount
of dividends or other distributions actually paid to the Issuer or any of its
Restricted Subsidiaries by such Person during such period;

 

(2)           the net income of any Restricted
Subsidiary to the extent that the declaration or payment of dividends or
similar distributions by such Restricted Subsidiary of such net income is not
at the time permitted by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to such Restricted Subsidiary;

 

(3)           any after-tax gains or losses
attributable to Asset Sales; and

 

(4)           all extraordinary gains and
extraordinary losses.

 

“Adjusted Consolidated Net Tangible
Assets” means the total amount of assets of the Issuer and its
Restricted Subsidiaries (less applicable depreciation, amortization and other
valuation reserves), except to the extent resulting from write-ups of capital
assets (excluding write-ups in connection with accounting for acquisitions in
conformity with GAAP), after deducting from the total amount of assets:

 

(1)           all liabilities of the Issuer and its
Restricted Subsidiaries that are classified as current liabilities in
accordance with GAAP, excluding intercompany items; and

 

(2)           all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like
intangibles, all as set forth on the most recent quarterly or annual
consolidated balance sheet of the Issuer and its Restricted Subsidiaries,
prepared in conformity with GAAP and filed with the SEC or provided to the
Trustee pursuant to Section 4.15.

 

“Adjusted Total Assets” means,
for any Person, the sum of:

 

(1)           Total Assets for such Person as of
the end of the fiscal quarter preceding the Transaction Date as set forth on
the most recent quarterly or annual consolidated balance sheet of the Issuer
and its Restricted Subsidiaries, prepared in conformity with GAAP and filed
with the SEC or provided to the Trustee pursuant to Section 4.15; and

 

(2)           any increase in Total Assets
following the end of such quarter including any increase in Total Assets
resulting from the application of the proceeds of any additional Indebtedness.

 

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

 

2

 

“Agent” means any Registrar or
Paying Agent.

 

“amend” means to amend,
supplement, restate, amend and restate or otherwise modify, including
successively; and “amendment” shall have a correlative
meaning.

 

“Asset Acquisition” means:

 

(1)           an investment by the Issuer or any of
its Restricted Subsidiaries in any other Person pursuant to which such Person
shall become a Restricted Subsidiary or shall be merged into or consolidated
with the Issuer or any of its Restricted Subsidiaries; provided, however, that such
Person’s primary business is related, ancillary, incidental or complementary to
the businesses of the Issuer or any of its Restricted Subsidiaries on the date
of such investment; or

 

(2)           an acquisition by the Issuer or any
of its Restricted Subsidiaries from any other Person of assets that constitute
substantially all of a division or line of business, or one or more healthcare
properties, of such Person; provided, however, that the assets and
properties acquired are related, ancillary, incidental or complementary to the
businesses of the Issuer or any of its Restricted Subsidiaries on the date of
such acquisition.

 

“Asset Disposition” means the
sale or other disposition by the Issuer or any of its Restricted Subsidiaries,
other than to the Issuer or another Restricted Subsidiary, of:

 

(1)           all or substantially all of the
Capital Stock of any Restricted Subsidiary; or

 

(2)           all or substantially all of the
assets that constitute a division or line of business, or one or more
healthcare properties, of the Issuer or any of its Restricted Subsidiaries.

 

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

 

(1)           all or any of the Capital Stock of
any Restricted Subsidiary;

 

(2)           all or substantially all of the
property and assets of an operating unit or business of the Issuer or any of
its Restricted Subsidiaries; or

 

(3)           any other property and assets of the
Issuer or any of its Restricted Subsidiaries outside the ordinary course of
business of the Issuer or such Restricted Subsidiary and, in each case, that is
not governed by the provisions of Section 5.01;

 

provided, however, that “Asset Sale” shall
not include:

 

(1)           sales or other dispositions of
inventory, receivables and other current assets;

 

3

 

(2)           the sale, conveyance, transfer,
lease, disposition or other transfer of all or substantially all of the assets
of the Issuer as permitted under Section 5.01;

 

(3)           any Restricted Payment permitted by
Section 4.09 or that constitutes a Permitted Investment;

 

(4)           sales, transfers or other
dispositions of assets with a fair market value not in excess of
$5 million in any transaction or series of related transactions;

 

(5)           sales or other dispositions of assets
for consideration at least equal to the fair market value of the assets sold or
disposed of, to the extent that the consideration received would satisfy
Section 4.11(b)(1)(ii);

 

(6)           sales or other dispositions of
Temporary Cash Investments;

 

(7)           the creation or realization of any
Lien permitted under this Indenture;

 

(8)           transfers of damaged, worn-out or
obsolete equipment or assets that, in the Issuer’s reasonable judgment, are no
longer used or useful in the business of the Issuer or its Restricted
Subsidiaries; or

 

(9)           sales or other dispositions of any of
the Closed Facilities as in existence on the Closing Date.

 

“Average Life” means at any
date of determination with respect to any debt security, the quotient obtained
by dividing:

 

(1)         the sum of the products of:

 

(x)                                   the
number of years from such date of determination to the dates of each successive
scheduled principal payment of such debt security, and

 

(y)           the amount of such principal payment;
by

 

(2)         the sum of all such principal payments.

 

“Bankruptcy Law” means Title
11 of the United States Code, as amended, or any insolvency or other similar
federal or state law for the relief of debtors.

 

“Board of Directors” means, as
to any Person, the board of directors (or similar governing body) of such
Person or any duly authorized committee thereof.

 

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

 

4

 

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

 

“Capital Stock” means, with
respect to any Person, any and all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting), including
partnership interests, whether general or limited, in the equity of such
Person, whether outstanding on the Closing Date or issued thereafter, including
all Common Stock and Preferred Stock.

 

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

 

“Capitalized Lease Obligations”
means the discounted present value of the rental obligations under a
Capitalized Lease as reflected on the balance sheet of such Person in
determined in conformity with GAAP.

 

“Change of Control” means the
occurrence of one or more of the following events:

 

(1)           any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Issuer to any “person” or “group” (as
such terms are defined in Sections 13(d) and 14(d)(2) of the Exchange
Act), together with any Affiliates thereof (whether or not otherwise in
compliance with the provisions of this Indenture);

 

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

 

(3)           the approval by the holders of
Capital Stock of the Issuer of any plan or proposal for the liquidation or
dissolution of the Issuer (whether or not otherwise in compliance with the
provisions of this Indenture); or

 

(4)           individuals who on the Closing Date
constitute the Board of Directors (together with any new or replacement
directors whose election by the Board of Directors or whose nomination by the
Board of Directors for election by the Issuer’s shareholders was approved by a
vote of at least a majority of the members of the Board of Directors then still
in office who either were members of the Board of Directors on the Closing Date
or whose election or nomination for election was so approved) cease for any
reason to constitute a majority of the members of the Board of Directors then
in office.

 

“Closing Date” means
March 22, 2004.

 

5

 

“Closed Facilities” means each
of:

 

(1)           Apalachicola Nursing Home, SNF, 150
10th Street, Apalachicola, Franklin, FL 
32329;

 

(2)           Crystal Springs, SNF, 12006 McIntosh
Road, Thonotosassa, Hillsborough, FL 33592;

 

(3)           Woodward Healthcare Center, SNF, 706
Cedar Avenue, Woodward, Dallas, IA 50276;

 

(4)           Park Avenue Health Care Home, SNF,
1701 S. Park Avenue, Route 148 South, P.O. Box 68, Herrin, Williamson,
IL  62948;

 

(5)           IHS of Hershey at Woodlands, SNF, 820
Rhue Haus Lane, P.O. Box 377, Hershey, Dauphin, PA  17036; and

 

(6)           Meydenbauer Medical &
Rehabilitation Ctr, SNF, 150 102nd Avenue SE, Bellevue, King, WA  98004.

 

“Code” means the Internal
Revenue Code of 1986, as amended.

 

“Common Stock” means, with
respect to any Person, any and all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) that have no
preference on liquidation or with respect to distributions over any other class
of Capital Stock, including partnership interests, whether general or limited,
of such Person’s equity, whether outstanding on the Closing Date or issued
thereafter, including all series and classes of common stock.

 

“Consolidated EBITDA” means,
for any period, Adjusted Consolidated Net Income for such period plus, to the
extent such amount was deducted in calculating such Adjusted Consolidated Net
Income (without duplication):

 

(1)           Consolidated Interest Expense (plus
the premium, fees and expenses, and the amortization thereof, payable in
connection with the issuance and sale of the Initial Notes on the Closing Date
or the refinancing of the GECC Facility);

 

(2)           income taxes (other than income taxes
(either positive or negative) attributable to extraordinary and non-recurring
gains or losses or sales of assets);

 

(3)           depreciation expense;

 

(4)           amortization expense;

 

(5)           non-cash charges resulting from the
write-down of the value of accounts receivable and/or notes receivable in an
aggregate amount from the Closing Date not in excess of $5 million; and

 

6

 

(6)           all other non-cash items reducing
Adjusted Consolidated Net Income (other than items that will require cash
payments and for which an accrual or reserve is, or is required by GAAP to be,
made);

 

less all non-cash items increasing
Adjusted Consolidated Net Income, all as determined on a consolidated basis for
the Issuer and its Restricted Subsidiaries in conformity with GAAP; provided,
however, that, if any Restricted Subsidiary is not a Wholly Owned
Restricted Subsidiary, Consolidated EBITDA shall be reduced (to the extent not
already reduced in Adjusted Consolidated Net Income or otherwise reduced in
accordance with GAAP) by an amount equal to:

 

(x)                           the
amount of the Adjusted Consolidated Net Income attributable to such Restricted
Subsidiary multiplied
by

 

(y)                         the
percentage ownership interest in the income of such Restricted Subsidiary not
owned on the last day of such period by the Issuer or any of its Restricted
Subsidiaries.

 

“Consolidated Interest Expense”
means, for any period, the aggregate amount of interest expense in respect of
Indebtedness of the Issuer and the Restricted Subsidiaries during such period,
all as determined on a consolidated basis in conformity with GAAP including
(without duplication):

 

(1)           amortization of debt issuance costs,
debt discount or premium and other financing fees and expenses;

 

(2)           the interest portion of any deferred
payment obligations;

 

(3)           all commissions, discounts and other
fees and expenses owed with respect to letters of credit and bankers’
acceptance financing;

 

(4)           the net costs associated with
Interest Rate Agreements and Indebtedness that is Guaranteed or secured by
assets of the Issuer or any of its Restricted Subsidiaries; and

 

(5)           all but the principal component of
rentals in respect of Capitalized Lease Obligations paid, accrued or scheduled
to be paid or to be accrued by the Issuer and its Restricted Subsidiaries;

 

excluding, to the extent included in
interest expense above, (x) the amount of such interest expense of any
Restricted Subsidiary if the net income of such Restricted Subsidiary is
excluded in the calculation of Adjusted Consolidated Net Income pursuant to
clause (2) of the definition thereof (but only in the same proportion as
the net income of such Restricted Subsidiary is excluded from the calculation
of Adjusted Consolidated Net Income pursuant to clause (2) of the
definition thereof), and (y) any premium, fees and expenses, and the
amortization thereof, payable in connection with issuance and sale of the
Initial Notes on the Closing Date or the refinancing of the GECC Facility, all
as determined on a consolidated basis (without taking into account Unrestricted
Subsidiaries) in conformity with GAAP.

 

7

 

“Corporate Trust Office” means
the corporate trust office of the Trustee located at 1360 Peachtree Street,
N.E., Suite 1105, Atlanta, Georgia 30309, Attention:  Corporate Trust Department, or such other office, designated by
the Trustee by written notice to the Issuer, at which at any particular time
its corporate trust business shall be administered.

 

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

 

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

 

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

 

“Depository” means The
Depository Trust Company, New York, New York, or a successor thereto registered
under the Exchange Act or other applicable statute or regulation.

 

“Disqualified Stock” means any
class or series of Capital Stock of any Person that by its terms or otherwise
is:

 

(1)           required to be redeemed prior to the
Stated Maturity of the Notes,

 

(2)           redeemable at the option of the holder
of such class or series of Capital Stock, at any time prior to the Stated
Maturity of the Notes, or

 

(3)           convertible into or exchangeable for
Capital Stock referred to in clause (1) or (2) above or Indebtedness
having a scheduled maturity prior to the Stated Maturity of the Notes;

 

provided, however, that any Capital Stock
that would not constitute Disqualified Stock but for provisions thereof giving
holders thereof the right to require such Person to repurchase or redeem such
Capital Stock upon the occurrence of an “asset sale” or “change of control”
occurring prior to the Stated Maturity of the Notes shall not constitute
Disqualified Stock if the “asset sale” or “change of control” provisions
applicable to such Capital Stock are no more favorable to the holders of such
Capital Stock than the provisions contained in Sections 4.07 and 4.11 and
such Capital Stock specifically provides that such Person will not repurchase
or redeem any such stock pursuant to such provisions prior to the Issuer’s
repurchase of the Notes as are required to be repurchased pursuant to
Sections 4.07 and 4.11.

 

“Equity Offering” means a
public or private offering of Capital Stock (other than Disqualified Stock) of
the Issuer.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, or any successor statute or
statutes thereto.

 

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

 

8

 

“Exchange Offer” means the
offer that may be made by the Issuer pursuant to the Registration Rights
Agreement to exchange Notes bearing the Private Placement Legend for the
Exchange Notes.

 

“fair market value” means the
price that would be paid in an arm’s-length transaction between an informed and
willing seller under no compulsion to sell and an informed and willing buyer
under no compulsion to buy, as determined in good faith by the Board of
Directors of the Issuer, whose determination shall be conclusive if evidenced
by a Board Resolution.

 

“Funds From Operations” for
any period means the consolidated net income of the Issuer and its Restricted
Subsidiaries for such period determined in conformity with GAAP after
adjustments for unconsolidated partnerships and joint ventures, plus
depreciation of real property (including furniture and equipment) and other
real estate assets and excluding (to the extent such amount was deducted in
calculating such consolidated net income):

 

(1)           gains or losses from
(a) restructuring of Indebtedness or (b) sales of properties;

 

(2)           non-cash asset impairment charges;

 

(3)           cash litigation charges incurred in
an amount not to exceed $5 million;

 

(4)           non-cash charges associated with the
write-down of the value of accounts and/or notes receivable in an amount not to
exceed $5 million;

 

(5)           non-cash charges related to
redemptions of Preferred Stock of the Issuer;

 

(6)           satisfaction of outstanding
unamortized loan fees with respect to the GECC Facility or the restructuring or
refinancing of any Line of Credit;

 

(7)           any non-cash charges associated with
the sale or settlement of any Interest Rate Agreement in existence with respect
to the GECC Facility; and

 

(8)           any other non-cash charges associated
with the sale or settlement of any Interest Rate Agreement or other hedging or
derivative instruments.

 

“GAAP” means generally
accepted accounting principles in the United States of America as in effect as
of the Closing Date, including those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession. Except as
otherwise specifically provided in this Indenture, all ratios and computations
contained or referred to in this Indenture shall be computed in conformity with
GAAP applied on a consistent basis.

 

“GECC Facility” means
(i) the Loan Agreement dated as of June 23, 2003 among General Electric
Capital Corporation and certain subsidiaries of the Issuer party thereto

 

9

 

and (ii) the
Guaranty Agreement dated as of June 23, 2003 between the Issuer and
General Electric Capital Corporation, in each case as such agreement may be
amended (including any amendment and restatement thereof), supplemented or
otherwise modified from time to time.

 

“Guarantee” means any
obligation, contingent or otherwise, of any Person directly or indirectly
guaranteeing any Indebtedness of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person:

 

(1)           to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness of such other
Person (whether arising by virtue of partnership arrangements, or by agreements
to keep-well, to purchase assets, goods, securities or services (unless such
purchase arrangements are on arm’s-length terms and are entered into in the
ordinary course of business), to take-or-pay, or to maintain financial
statement conditions or otherwise); or

 

(2)           entered into for purposes of assuring
in any other manner the obligee of such Indebtedness of the payment thereof or
to protect such obligee against loss in respect thereof (in whole or in part);

 

provided, however,
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee” used as a verb
has a corresponding meaning.

 

“Holder” means any registered
holder, from time to time, of the Notes.

 

“Incur” means, with respect to
any Indebtedness, to incur, create, issue, assume, Guarantee or otherwise
become liable for or with respect to, or become responsible for, the payment
of, contingently or otherwise, such Indebtedness, including an “Incurrence” of
Acquired Indebtedness; provided, however, that neither the
accrual of interest nor the accretion of original issue discount shall be
considered an Incurrence of Indebtedness.

 

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

 

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

 

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

 

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

 

10

 

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

 

(5)           all Capitalized Lease Obligations;

 

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

 

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

 

(8)           to the extent not otherwise included
in this definition or the definition of Consolidated Interest Expense,
obligations under Currency Agreements and Interest Rate Agreements.

 

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

 

(1)           the amount outstanding at any time of
any Indebtedness issued with original issue discount shall be deemed to be the
face amount with respect to such Indebtedness less the remaining unamortized
portion of the original issue discount of such Indebtedness at the date of
determination in conformity with GAAP, and

 

(2)           Indebtedness shall not include any
liability for federal state, local or other taxes.

 

“Indenture” means this
Indenture, as amended or supplemented from time to time in accordance with the
terms hereof.

 

“Initial Purchasers” means
Deutsche Bank Securities Inc., UBS Securities LLC and Banc of America
Securities LLC.

 

“Institutional Accredited Investor”
or “IAI”
means an “accredited investor” within the meaning of Rule 501(a)(1), (2),
(3) or (7) under the Securities Act.

 

“interest” means, with respect
to the Notes, interest and Additional Interest, if any, on the Notes.

 

“Interest Coverage Ratio”
means, on any Transaction Date, the ratio of:

 

(x)                                   the
aggregate amount of Consolidated EBITDA for the then most recent four fiscal
quarters prior to such Transaction Date for which reports have

 

11

 

been filed with the SEC or provided to the Trustee
pursuant to Section 4.15 (“Four Quarter Period”) to

 

(y)                                 the
aggregate Consolidated Interest Expense during such Four Quarter Period.

 

In making the foregoing
calculation,

 

(1)           pro  forma effect shall be given to any
Indebtedness Incurred or repaid (other than in connection with an Asset
Acquisition or Asset Disposition) during the period (“Reference Period”) commencing
on the first day of the Four Quarter Period and ending on the Transaction Date
(other than Indebtedness Incurred or repaid under a revolving credit or similar
arrangement), in each case as if such Indebtedness had been Incurred or repaid
on the first day of such Reference Period;

 

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

 

(3)           pro  forma effect shall be given to Asset
Dispositions and Asset Acquisitions and Permitted Mortgage Investments
(including giving pro  forma effect to the application of
proceeds of any Asset Disposition and any Indebtedness Incurred or repaid in
connection with any such Asset Acquisitions or Asset Dispositions or Permitted
Mortgage Investments) that occur during such Reference Period but subsequent to
the end of the related Four Quarter Period as if they had occurred and such
proceeds had been applied on the first day of such Reference Period; and

 

(4)           pro  forma effect shall be given to asset
dispositions and asset acquisitions (including giving pro  forma effect to (i) the
application of proceeds of any asset disposition and any Indebtedness Incurred
or repaid in connection with any such asset acquisitions or asset dispositions
and (ii) expense and cost reductions calculated on a basis consistent with
Regulation S-X under the Exchange Act) that have been made by any Person
that has become a Restricted Subsidiary or has been merged with or into the
Issuer or any of its Restricted Subsidiaries during such Reference Period but
subsequent to the end of the related Four Quarter Period and that would have
constituted asset dispositions or asset acquisitions during such Reference
Period but subsequent to the end of the related Four Quarter Period had such
transactions occurred when such Person was a Restricted Subsidiary as if such
asset dispositions or asset acquisitions were Asset Dispositions or Asset
Acquisitions and had occurred on the first day of such Reference Period;

 

provided, however, that to the extent that
clause (3) or (4) of this paragraph requires that pro
forma
effect be given to an Asset Acquisition or Asset Disposition or asset acquisition
or asset disposition, as the case may be, such pro  forma calculation shall be
based upon the four full fiscal

 

12

 

quarters immediately
preceding the Transaction Date of the Person, or division or line of business,
or one or more healthcare properties, of the Person that is acquired or
disposed of to the extent that such financial information is available.

 

“Interest Payment Date” means
the Stated Maturity of an installment of interest on the Notes.

 

“Interest Rate Agreement”
means any interest rate protection agreement, interest rate future agreement,
interest rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement,
option or future contract or other similar agreement or arrangement with
respect to interest rates.

 

“Investment” in any Person
means any direct or indirect advance, loan or other extension of credit
(including by way of Guarantee or similar arrangement, but excluding advances
to customers in the ordinary course of business that are, in conformity with
GAAP, recorded as accounts receivable on the consolidated balance sheet of the
Issuer and its Restricted Subsidiaries) or capital contribution to (by means of
any transfer of cash or other property (tangible or intangible) to others or
any payment for property or services solely for the account or use of others,
or otherwise), or any purchase or acquisition of Capital Stock, bonds, notes,
debentures or other similar instruments issued by, such Person and shall
include:

 

(1)           the designation of a Restricted
Subsidiary as an Unrestricted Subsidiary; and

 

(2)           the fair market value of the Capital
Stock (or any other Investment), held by the Issuer or any of its Restricted
Subsidiaries of (or in) any Person that has ceased to be a Restricted
Subsidiary;

 

provided, however, that the fair market
value of the Investment remaining in any Person that has ceased to be a
Restricted Subsidiary shall be deemed not to exceed the aggregate amount of
Investments previously made in such Person valued at the time such Investments
were made, less the net reduction of such Investments. For purposes of the
definition of “Unrestricted Subsidiary” and Section 4.09:

 

(i)            “Investment” shall include the fair
market value of the assets (net of liabilities (other than liabilities to the
Issuer or any of its Restricted Subsidiaries)) of any Restricted Subsidiary at
the time such Restricted Subsidiary is designated an Unrestricted Subsidiary;

 

(ii)           the fair market value of the assets
(net of liabilities (other than liabilities to the Issuer or any of its
Restricted Subsidiaries)) of any Unrestricted Subsidiary at the time that such
Unrestricted Subsidiary is designated a Restricted Subsidiary shall be
considered a reduction in outstanding Investments; and

 

(iii)          any property transferred to or from an
Unrestricted Subsidiary shall be valued at its fair market value at the time of
such transfer.

 

13

 

“Investment Grade Status”
means, with respect to the Issuer, when the Notes have both (1) a rating
of “Baa3” or higher from Moody’s and (2) a rating of “BBB-” or higher from
S&P (or, if either such agency ceases to rate the Notes for reasons outside
the control of the Issuer, the equivalent investment grade credit rating from
any other “nationally recognized statistical rating organization” within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the
Issuer as a replacement agency), in each case published by the applicable
agency with no negative outlook.

 

“Lien” means any mortgage,
pledge, security interest, encumbrance, lien or charge of any kind (including
any conditional sale or other title retention agreement or lease in the nature
thereof or any agreement to give any security interest).

 

“Line of Credit” means the
Credit Agreement dated as of March 22, 2004, by and among the Issuer, the
lenders party thereto in their capacities as lenders thereunder and Bank of
America, N.A., as administrative agent, together with the related documents
thereto (including any guarantee agreements and security documents), in each
case as such agreements may be amended (including any amendment and restatement
thereof), supplemented or otherwise modified from time to time, including one
or more credit agreements, loan agreements, indentures or similar agreements
extending the maturity of, refinancing, replacing or otherwise restructuring
(including increasing the amount of available borrowings thereunder or adding
Restricted Subsidiaries of the Issuer as additional borrowers or guarantors
thereunder) all or any portion of the Indebtedness under such agreement or
agreements or any successor or replacement agreement or agreements and whether
by the same or any other agent, lender or group of lenders.

 

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

 

“Net Cash Proceeds” means:

 

(1)           with respect to any Asset Sale, the
proceeds of such Asset Sale in the form of cash or Temporary Cash Investments,
including payments in respect of deferred payment obligations (to the extent
corresponding to the principal, but not interest, component thereof) when
received in the form of cash or Temporary Cash Investments (except to the
extent such obligations are financed or sold with recourse to the Issuer or any
of its Restricted Subsidiaries) and proceeds from the conversion of other
property received when converted to cash or cash equivalents, net of:

 

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

 

(ii)           provisions
for all taxes actually paid or payable as a result of such Asset Sale by the
Issuer and its Restricted Subsidiaries, taken as a whole,

 

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

 

14

 

(iv)                              amounts
reserved by the Issuer and its Restricted Subsidiaries against any liabilities
associated with such Asset Sale, including pension and other post-employment
benefit liabilities, liabilities related to environmental matters and
liabilities under any indemnification obligations associated with such Asset
Sale, all as determined on a consolidated basis in conformity with GAAP; and

 

(2)           with respect to any issuance or sale
of Capital Stock, the proceeds of such issuance or sale in the form of cash or
Temporary Cash Investments, including payments in respect of deferred payment
obligations (to the extent corresponding to the principal, but not interest,
component thereof) when received in the form of cash or Temporary Cash Investments
(except to the extent such obligations are financed or sold with recourse to
the Issuer or any of its Restricted Subsidiaries) and proceeds from the
conversion of other property received when converted to cash or Temporary Cash
Investments, net of attorney’s fees, accountants’ fees, underwriters’ or
placement agents’ fees, discounts or commissions and brokerage, consultant and
other fees incurred in connection with such issuance or sale and net of tax
paid or payable as a result thereof.

 

“Non-U.S. Person” has the
meaning assigned to such term in Regulation S.

 

“Notes” means, collectively,
the Issuer’s 7% Senior Notes due 2014 issued in accordance with
Section 2.02 (whether issued on the Issue Date, issued as Additional
Notes, issued as Exchange Notes or Private Exchange Notes, or otherwise issued
after the Issue Date) treated as a single class of securities under this
Indenture, as amended or supplemented from time to time in accordance with the
terms of this Indenture.

 

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

 

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

 

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

 

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

 

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

 

(5)           that Holders electing to have a Note
purchased pursuant to the Offer to Purchase will be required to surrender the
Note, together with the form entitled “Option of the Holder to Elect Purchase”
on the reverse side of the Note completed, to the Paying

 

15

 

Agent at the address
specified in the notice prior to the close of business on the Business Day
immediately preceding the Payment Date;

 

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

 

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

 

On the Payment Date, the
Issuer shall

 

(i)                                     accept
for payment on a pro  rata basis Notes or portions thereof
tendered pursuant to an Offer to Purchase; and

 

(ii)           deposit
with the Paying Agent money sufficient to pay the purchase price of all Notes
or portions thereof so accepted; and

 

(iii)          shall
promptly thereafter deliver, or cause to be delivered, to the Trustee all Notes
or portions thereof so accepted together with an Officers’ Certificate
specifying the Notes or portions thereof accepted for payment by the Issuer.

 

The Paying Agent shall
promptly mail to the Holders of Notes so accepted payment in an amount equal to
the purchase price, and the Trustee shall promptly authenticate and mail to
such Holders a new Note equal in principal amount to any unpurchased portion of
any Note surrendered; provided, however, that each Note
purchased and each new Note issued shall be in a principal amount of $1,000 or
integral multiples thereof. The Issuer will publicly announce the results of an
Offer to Purchase as soon as practicable after the Payment Date. The Issuer
will comply with Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent such laws and
regulations are applicable, in the event that the Issuer is required to
repurchase Notes pursuant to an Offer to Purchase.

 

“Officer” means any of the
following of the Issuer or a Subsidiary Guarantor, as applicable:  the Chairman of the Board of Directors, the
Chief Executive Officer, the Chief Financial Officer, the President, any Vice
President, the Treasurer or the Secretary.

 

“Officers’ Certificate” means
a certificate signed by two Officers.

 

“Opinion of Counsel” means a
written opinion from legal counsel who is reasonably acceptable to the
Trustee.  The counsel may be an employee
of, or counsel to, the Issuer, a Subsidiary Guarantor or the Trustee.

 

16

 

“Pari Passu Indebtedness”
means any Indebtedness of the Issuer or any Subsidiary Guarantor that ranks pari
passu
in right of payment with the Notes or the Guarantee thereof by such Subsidiary
Guarantor, as applicable.

 

“Permitted Investment” means:

 

(1)           an investment in the Issuer or any of
its Restricted Subsidiaries or a Person that will, upon the making of such
Investment, become a Restricted Subsidiary or be merged or consolidated with or
into or transfer or convey all or substantially all its assets to, the Issuer
or any of its Restricted Subsidiaries; provided, however, that such Person’s
primary business is related, ancillary, incidental or complementary to the
businesses of the Issuer or any of its Restricted Subsidiaries on the date of
such Investment;

 

(2)           investments in cash and Temporary
Cash Investments;

 

(3)           Investments made by the Issuer or its
Restricted Subsidiaries as a result of consideration received in connection
with an Asset Sale made in compliance with Section 4.11

 

(4)           Investments represented by Guarantees
that are otherwise permitted under this Indenture;

 

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

 

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

 

(7)           Permitted Mortgage Investments; and

 

(8)           additional Investments not to exceed
$25 million at any time outstanding.

 

“Permitted Mortgage Investment”
means any Investment in secured notes, mortgage, deeds of trust, collateralized
mortgage obligations, commercial mortgage-backed securities, other secured debt
securities, secured debt derivative or other secured debt instruments, so long
as such investment relates directly or indirectly to real property that
constitutes or is used as a skilled nursing home center, hospital, assisted
living facility or other property customarily constituting an asset of a real
estate investment trust specializing in healthcare or senior housing property.

 

“Person” means any individual,
corporation, partnership, limited liability company, joint venture,
incorporated or unincorporated association, joint-stock company, trust,
unincorporated organization or government or other agency or political
subdivision thereof or other entity of any kind.

 

“Preferred Stock” means, with
respect to any Person, any and all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) that have a
preference on liquidation or with respect to distributions over any other class
of Capital

 

17

 

Stock, including
preferred partnership interests, whether general or limited, or such Person’s
preferred or preference stock, whether outstanding on the Closing Date or
issued thereafter, including all series and classes of such preferred or
preference stock.

 

“principal” means, with
respect to the Notes, the principal of and premium, if any, on the Notes.

 

“Private Exchange” has the meaning
given to it in the Registration Rights Agreement.

 

“Private Exchange Notes” has
the meaning given to it in the Registration Rights Agreement.

 

“Private Placement Legend”
means the legends initially set forth on the Notes in the form set forth in Exhibit B.

 

“Qualified Institutional Buyer”
or “QIB”
shall have the meaning specified in Rule 144A under the Securities Act.

 

“Record Date” means the
applicable Record Date specified in the Notes; provided, however,
that if any such date is not a Business Day, the Record Date shall be the first
day immediately succeeding such specified day that is a Business Day.

 

“redeem” means to redeem,
repurchase, purchase, defease, retire, discharge or otherwise acquire or retire
for value; and “redemption” shall have a correlative meaning; provided,
however,
that this definition shall not apply for purposes of Section 5 or
Section 6 of the Notes or Article Three.

 

“Redemption Date,” when used
with respect to any Note to be redeemed, means the date fixed for such
redemption pursuant to this Indenture and the Notes.

 

“Redemption Price,” when used
with respect to any Note to be redeemed, means the price fixed for such
redemption, payable in immediately available funds, pursuant to this Indenture
and the Notes.

 

“Registration Rights Agreement”
means the Registration Rights Agreement dated as of March 22, 2004 among
the Issuer, the Subsidiary Guarantors and the Initial Purchasers, as amended,
supplemented or modified from time to time, and any similar agreement entered
into in connection with the issuance of any Additional Notes.

 

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

 

“Responsible Officer” means,
when used with respect to the Trustee, any officer in the Corporate Trust
Office of the Trustee to whom any corporate trust matter is referred because of
such officer’s knowledge of and familiarity with the particular subject and
shall also mean any officer who shall have direct responsibility for the
administration of this Indenture.

 

18

 

“Restricted Security” means a
Note that constitutes a “Restricted Security” within the meaning of
Rule 144(a)(3) under the Securities Act; provided, however, that the
Trustee shall be entitled to request and conclusively rely on an Opinion of
Counsel with respect to whether any Note constitutes a Restricted Security.

 

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

 

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

 

“SEC” means the U.S.
Securities and Exchange Commission.

 

“Secured Indebtedness” means
any Indebtedness secured by a Lien upon the property of the Issuer or any of
its Restricted Subsidiaries.

 

“Securities Act” means the
U.S. Securities Act of 1933, as amended, or any successor statute or statutes
thereto.

 

“Significant Subsidiary,” with
respect to any Person, means any restricted subsidiary of such Person that
satisfies the criteria for a “significant subsidiary” set forth in
Rule 1.02(w) of Regulation S-X under the Exchange Act.

 

“S&P” means
Standard & Poor’s Ratings Services and its successors.

 

“Stated Maturity” means:

 

(1)           with respect to any debt security,
the date specified in such debt security as the fixed date on which the final
installment of principal of such debt security is due and payable; and

 

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

 

“Subsidiary” means, with
respect to any Person, any corporation, association or other business entity of
which more than 50% of the voting power of the outstanding Voting Stock is
owned, directly or indirectly, by such Person and one or more other
Subsidiaries of such Person and the accounts of which would be consolidated
with those of such Person in its consolidated financial statements in
accordance with GAAP, if such statements were prepared as of such date.

 

“Subsidiary Debt” means all
unsecured Indebtedness of which a Restricted Subsidiary is the primary obligor.

 

“Subsidiary Guarantee” means a
Guarantee by each Subsidiary Guarantor for payment of the Notes by such
Subsidiary Guarantor. The Subsidiary Guarantee will be an unsecured senior
obligation of each Subsidiary Guarantor and will be unconditional regardless of
the enforceability of the Notes and this Indenture. Notwithstanding the
foregoing, each Subsidiary

 

19

 

Guarantee by a Subsidiary
Guarantor shall provide by its terms that it shall be automatically and
unconditionally released and discharged upon any sale, exchange or transfer, to
any Person not an Affiliate of the Issuer, of all of the Capital Stock owned by
the Issuer and its Restricted Subsidiaries in, or all or substantially all the
assets of, such Restricted Subsidiary (which sale, exchange or transfer is not
then prohibited by this Indenture).

 

“Subsidiary Guarantors” means
(i) each Restricted Subsidiary of the Issuer on the Closing Date and
(ii) each other Person that is required to become a Subsidiary Guarantor
by the terms of this Indenture after the Closing Date, in each case, until such
Person is released from its Subsidiary Guarantee.

 

“Temporary Cash Investment”
means any of the following:

 

(1)           direct obligations of the United
States of America or any agency thereof or obligations fully and
unconditionally guaranteed by the United States of America or any agency
thereof;

 

(2)           time deposits accounts, certificates
of deposit and money market deposits maturing within 180 days of the date
of acquisition thereof issued by a bank or trust company which is organized
under the laws of the United States of America, any state thereof, and which
bank or trust company has capital, surplus and undivided profits aggregating in
excess of $250 million and has outstanding debt which is rated “A” (or
such similar equivalent rating) or higher by at least one nationally recognized
statistical rating organization (as defined in Rule 436 under the
Securities Act) or any money-market fund sponsored by a registered broker
dealer or mutual fund distributor;

 

(3)           repurchase obligations with a term of
not more than 30 days for underlying securities of the types described in
clause (1) above entered into with a bank meeting the qualifications
described in clause (2) above;

 

(4)           commercial paper, maturing not more
than 90 days after the date of acquisition, issued by a corporation (other
than an Affiliate of the Issuer) organized and in existence under the laws of
the United States of America, any state of the United States of America with a
rating at the time as of which any investment therein is made of “P-1” (or
higher) according to Moody’s or “A-1” (or higher) according to S&P; and

 

(5)           securities with maturities of six
months or less from the date of acquisition issued or fully and unconditionally
guaranteed by any state, commonwealth or territory of the United States of
America, or by any political subdivision or taxing authority thereof, and rated
at least “A” by S&P or Moody’s.

 

“Total Assets” means the sum
(without duplication) of:

 

(1)           Undepreciated Real Estate Assets; and

 

20

 

(2)           all other assets (excluding
intangibles and accounts receivable) of the Issuer and its Restricted Subsidiaries
on a consolidated basis determined in conformity with GAAP.

 

“Total Unencumbered Assets” as
of any date means the sum of:

 

(1)           those Undepreciated Real Estate
Assets not securing any portion of Secured Indebtedness; and

 

(2)           all other assets (but excluding
intangibles and accounts receivable) of the Issuer and its Restricted
Subsidiaries not securing any portion of Secured Indebtedness determined on a
consolidated basis in conformity with GAAP.

 

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

 

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

 

“Trust Indenture Act” means
the Trust Indenture Act of 1939, as amended.

 

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

 

“Undepreciated Real Estate Assets”
means, as of any date, the cost (being the original cost to the Issuer or any
of its Restricted Subsidiaries plus capital improvements) of real estate assets
of the Issuer and its Restricted Subsidiaries on such date, before depreciation
and amortization of such real estate assets, determined on a consolidated basis
in conformity with GAAP.

 

“Unrestricted Subsidiary”
means

 

(1)           any Subsidiary of the Issuer that at
the time of determination shall be designated an Unrestricted Subsidiary by the
Board of Directors of the Issuer in the manner provided below; and

 

(2)           any Subsidiary of an Unrestricted
Subsidiary.

 

Except during a
Suspension Period, the Board of Directors of the Issuer may designate any Subsidiary
(including any newly acquired or newly formed Subsidiary of the Issuer) to be
an Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or
owns or holds any Lien on any property of, the Issuer or any of its Restricted
Subsidiaries; provided, however, that:

 

21

 

(i)            any Guarantee by the Issuer or any
of its Restricted Subsidiaries of any Indebtedness of the Subsidiary being so
designated shall be deemed an “Incurrence” of such Indebtedness and an
“Investment” by the Issuer or such Restricted Subsidiary (or all, if
applicable) at the time of such designation;

 

(ii)           either (i) the Subsidiary to be
so designated has total assets of $1,000 or less or (ii) if such
Subsidiary has assets greater than $1,000, such designation would be permitted
under Section 4.09; and

 

(iii)          if applicable, the Incurrence of
Indebtedness and the Investment referred to in (i) of this proviso would
be permitted under Section 4.08 and Section 4.09.

 

The Board of Directors of
the Issuer may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided,
however, that:

 

(x)                                   no
Default or Event of Default shall have occurred and be continuing at the time
of or after giving effect to such designation; and

 

(y)                                 all
Liens and Indebtedness of such Unrestricted Subsidiary outstanding immediately
after such designation would, if Incurred at such time, have been permitted to
be Incurred (and shall be deemed to have been Incurred) for all purposes of
this Indenture.

 

Any such designation by
the Board of Directors of the Issuer shall be evidenced to the Trustee by
promptly filing with the Trustee a copy of the Board Resolution giving effect
to such designation and an Officers’ Certificate certifying that such designation
complied with the foregoing provisions.

 

“Unsecured Indebtedness” means
any Indebtedness of the Issuer or any of its Restricted Subsidiaries that is
not Secured Indebtedness.

 

“U.S. Government Obligations”
means direct obligations of, obligations guaranteed by, or participations in
pools consisting solely of obligations of or obligations guaranteed by, the
United States of America for the payment of which obligations or guarantee the
full faith and credit of the United States of America is pledged and that are
not callable or redeemable at the option of the issuer thereof.

 

“U.S. Legal Tender” means such
coin or currency of the United States of America that at the time of payment
shall be legal tender for the payment of public and private debts.

 

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

 

“Wholly Owned” means, with
respect to any Subsidiary of any Person, the ownership of all of the
outstanding Capital Stock of such Subsidiary (other than any director’s
qualifying

 

22

 

shares or Investments by
individuals mandated by applicable law) by such Person or one or more Wholly
Owned Subsidiaries of such Person.

 

SECTION 1.02.      Other
Definitions.

 

	
  Term

  	
   

  	
  Defined
  in Section

  
	
   

  	
   

  	
   

  
	
  “144A
  Global Note”

  	
   

  	
  2.01

  
	
  “Additional
  Notes”

  	
   

  	
  2.02

  
	
  “Authentication
  Order”

  	
   

  	
  2.02

  
	
  “Covenant
  Defeasance”

  	
   

  	
  8.02

  
	
  “Event
  of Default”

  	
   

  	
  6.01

  
	
  “Excess
  Proceeds”

  	
   

  	
  4.11

  
	
  “Four-Quarter
  Period”

  	
   

  	
  1.01

  
	
  “Global
  Note”

  	
   

  	
  2.01

  
	
  “Guaranteed
  Indebtedness”

  	
   

  	
  4.14

  
	
  “IAI
  Global Note”

  	
   

  	
  2.01

  
	
  “Initial
  Global Notes”

  	
   

  	
  2.01

  
	
  “Initial
  Notes”

  	
   

  	
  2.02

  
	
  “Issuer”

  	
   

  	
  Preamble

  
	
  “Legal
  Defeasance”

  	
   

  	
  8.02

  
	
  “Participants”

  	
   

  	
  2.15

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  
	
  “Payment
  Date”

  	
   

  	
  1.01

  
	
  “Physical
  Notes”

  	
   

  	
  2.01

  
	
  “Reference
  Period”

  	
   

  	
  1.01

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Regulation
  S Global Note

  	
   

  	
  2.01

  
	
  “Restricted
  Payments”

  	
   

  	
  4.09

  
	
  “Reversion
  Date”

  	
   

  	
  4.19

  
	
  “Suspension
  Period”

  	
   

  	
  4.19

  

 

SECTION 1.03.                                              Incorporation
by Reference of Trust Indenture Act.

 

Whenever this Indenture
refers to a provision of the Trust Indenture Act, such provision is
incorporated by reference in, and made a part of, this Indenture.  The following Trust Indenture Act terms used
in this Indenture have the following meanings:

 

“indenture securities”
means the Notes.

 

“indenture security
holder” means a Holder.

 

“indenture to be
qualified” means this Indenture.

 

“indenture trustee”
or “institutional trustee” means the Trustee.

 

“obligor” on the
indenture securities means the Issuer, any Subsidiary Guarantor or any other
obligor on the Notes.

 

23

 

All other Trust Indenture
Act terms used in this Indenture that are defined by the Trust Indenture Act,
defined by Trust Indenture Act reference to another statute or defined by SEC
rule and not otherwise defined herein have the meanings assigned to them
therein.

 

SECTION 1.04.                                              Rules
of Construction.

 

Unless the context
otherwise requires:

 

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

 

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

 

(3)           “or” is not exclusive;

 

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

 

(5)           provisions apply to successive events
and transactions;

 

(6)           “herein,” “hereof” and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision; and

 

(7)           the words “including,” “includes” and
similar words shall be deemed to be followed by “without limitation.”

 

ARTICLE TWO

 

THE NOTES

 

SECTION 2.01.                                              Form
and Dating.

 

The Notes and the
Trustee’s certificate of authentication shall be substantially in the form of Exhibit A
hereto.  The Notes may have notations,
legends or endorsements required by law, stock exchange rule or
usage.  The Issuer shall approve the
form of the Notes and any notation, legend or endorsement on them.  Each Note shall be dated the date of its
issuance and show the date of its authentication.  Each Note shall have an executed Subsidiary Guarantee from each
of the Subsidiary Guarantors existing on the Issue Date endorsed thereon
substantially in the form of Exhibit E.

 

The terms and provisions
contained in the Notes and the Subsidiary Guarantees shall constitute, and are
hereby expressly made, a part of this Indenture and, to the extent applicable,
the Issuer, the Subsidiary Guarantors and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to
be bound thereby.

 

Notes offered and sold in
reliance on Rule 144A shall be issued initially in the form of a single
permanent global Note in registered form, substantially in the form set forth
in Exhibit A (the “144A Global Note”), deposited with the
Trustee, as custodian for the Depository,

 

24

 

duly executed by the
Issuer (and having an executed Subsidiary Guarantee from each of the Subsidiary
Guarantors endorsed thereon) and authenticated by the Trustee as hereinafter
provided and shall bear the legends set forth in Exhibit B.

 

Notes offered and sold in
offshore transactions in reliance on Regulation S shall be issued
initially in the form of a single permanent global Note in registered form,
substantially in the form of Exhibit A (the “Regulation S Global Note”),
deposited with the Trustee, as custodian for the Depository, duly executed by
the Issuer (and having an executed Subsidiary Guarantee from each of the
Subsidiary Guarantors endorsed thereon) and authenticated by the Trustee as
hereinafter provided and shall bear the legends set forth in Exhibit B.

 

The initial offer and
resale of the Notes shall not be to an Institutional Accredited Investor.  The Notes resold to Institutional Accredited
Investors in connection with the first transfer made pursuant to
Section 2.16(a) shall be issued initially in the form of a single
permanent Global Note in registered form, substantially in the form set forth
in Exhibit A (the “IAI Global Note,” and, together with the
144A Global Note and the Regulation S Global Note, the “Initial Global Notes”),
deposited with the Trustee, as custodian for the Depository, duly executed by
the Issuer (and having an executed Subsidiary Guarantee from each of the
Subsidiary Guarantors endorsed thereon) and authenticated by the Trustee as
hereinafter provided and shall bear the legend set forth in Exhibit B.

 

Notes issued after the
Issue Date shall be issued initially in the form of one or more global Notes in
registered form, substantially in the form set forth in Exhibit A,
deposited with the Trustee, as custodian for the Depository, duly executed by
the Issuer (and having an executed Subsidiary Guarantee from each of the
Subsidiary Guarantors endorsed thereon) and authenticated by the Trustee as
hereinafter provided and shall bear any legends required by applicable law
(together with the Initial Global Notes, the “Global Notes”) or as Physical
Notes.

 

The aggregate principal
amount of the Global Notes may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for the
Depository, as hereinafter provided. 
Notes issued in exchange for interests in a Global Note pursuant to
Section 2.16 may be issued in the form of permanent certificated Notes in
registered form in substantially the form set forth in Exhibit A
and bearing the applicable legends, if any, (the “Physical Notes”).

 

SECTION 2.02.                                              Execution,
Authentication and Denomination; Additional Notes; Exchange Notes

 

One Officer of the Issuer
(who shall have been duly authorized by all requisite corporate actions) shall
sign the Notes for such Issuer by manual or facsimile signature.  One Officer of a Subsidiary Guarantor (who shall
have been duly authorized by all requisite corporate actions) shall sign the
Subsidiary Guarantee for such Subsidiary Guarantor by manual or facsimile
signature.

 

If an Officer whose
signature is on a Note or Subsidiary Guarantee, as the case may be, was an Officer
at the time of such execution but no longer holds that office at the time the
Trustee authenticates the Note, the Note shall nevertheless be valid.

 

25

 

A Note (and the
Subsidiary Guarantees in respect thereof) shall not be valid until an
authorized signatory of the Trustee manually signs the certificate of
authentication on the Note.  The
signature shall be conclusive evidence that the Note has been authenticated
under this Indenture.

 

The Trustee shall
authenticate (i) on the Issue Date, Notes for original issue in the
aggregate principal amount not to exceed $200,000,000 (the “Initial
Notes”), (ii) additional Notes (the “Additional Notes”) in an
unlimited amount (so long as not otherwise prohibited by the terms of this
Indenture, including Section 4.08) and (iii) Exchange Notes or
Private Exchange Notes (x) in exchange for a like principal amount of
Initial Notes or (y) in exchange for a like principal amount of Additional
Notes in each case upon a written order of the Issuer in the form of a
certificate of an Officer of the Issuer (an “Authentication Order”).  Each such Authentication Order shall specify
the amount of Notes to be authenticated and the date on which the Notes are to
be authenticated, whether the Notes are to be Initial Notes, Exchange Notes,
Private Exchange Notes or Additional Notes and whether the Notes are to be
issued as certificated Notes or Global Notes or such other information as the
Trustee may reasonably request.  In
addition, with respect to authentication pursuant to clause (ii) or (iii) of
the first sentence of this paragraph, the first such Authentication Order from
the Issuer shall be accompanied by an Opinion of Counsel of the Issuer in a
form reasonably satisfactory to the Trustee.

 

All Notes issued under
this Indenture shall be treated as a single class for all purposes under this
Indenture.  The Additional Notes and the
Private Exchange Notes shall bear any legend required by applicable law.

 

The Trustee may appoint
an authenticating agent reasonably acceptable to the Issuer to authenticate
Notes.  Unless otherwise provided in the
appointment, an authenticating agent may authenticate Notes whenever the
Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent has the
same rights as an Agent to deal with the Issuer and Affiliates of the
Issuer.  The Trustee shall have the
right to decline to authenticate and deliver any Notes under this Indenture if
the Trustee, being advised by counsel, determines that such action may not
lawfully be taken or if the Trustee in good faith shall determine that such
action would expose the Trustee to personal liability.

 

The Notes shall be
issuable only in registered form without coupons in denominations of $1,000 and
integral multiples thereof.

 

SECTION 2.03.                                              Registrar
and Paying Agent.

 

The Issuer shall maintain
or cause to be maintained an office or agency in the Borough of Manhattan, The
City of New York, where (a) Notes may be presented or surrendered for
registration of transfer or for exchange (“Registrar”), (b) Notes may, subject to
Section 2 of the Notes, be presented or surrendered for payment (“Paying Agent”)
and (c) notices and demands to or upon the Issuer in respect of the Notes
and this Indenture may be served.  The
Issuer may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner
relieve

 

26

 

the Issuer of its
obligation to maintain or cause to be maintained an office or agency in the
Borough of Manhattan, The City of New York, for such purposes.  The Issuer may act as Registrar or Paying
Agent, except that for the purposes of Articles Three and Eight and
Sections 4.07 and 4.11, neither the Issuer nor any Affiliate of the Issuer
shall act as Paying Agent.  The
Registrar shall keep a register of the Notes and of their transfer and
exchange.  The Issuer, upon notice to
the Trustee, may have one or more co-registrars and one or more additional
paying agents reasonably acceptable to the Trustee.  The term “Registrar” includes any co-registrar and the term
“Paying Agent” includes any additional paying agent.  The Issuer initially appoints the Trustee as Registrar and Paying
Agent until such time as the Trustee has resigned or a successor has been
appointed.

 

The Issuer shall enter
into an appropriate agency agreement with any Agent not a party to this
Indenture, which agreement shall implement the provisions of this Indenture
that relate to such Agent.  The Issuer
shall notify the Trustee, in advance, of the name and address of any such
Agent.  If the Issuer fails to maintain
a Registrar or Paying Agent, the Trustee shall act as such.

 

SECTION 2.04.                                              Paying
Agent To Hold Assets in Trust.

 

The Issuer shall require
each Paying Agent other than the Trustee or the Issuer or any Subsidiary to
agree in writing that each Paying Agent shall hold in trust for the benefit of
Holders or the Trustee all assets held by the Paying Agent for the payment of
principal of, or interest on, the Notes (whether such assets have been
distributed to it by the Issuer or any other obligor on the Notes), and shall
notify the Trustee of any Default by the Issuer (or any other obligor on the
Notes) in making any such payment.  The
Issuer at any time may require a Paying Agent to distribute all assets held by
it to the Trustee and account for any assets disbursed and the Trustee may at
any time during the continuance of any payment Default, upon written request to
a Paying Agent, require such Paying Agent to distribute all assets held by it
to the Trustee and to account for any assets distributed.  Upon distribution to the Trustee of all
assets that shall have been delivered by the Issuer to the Paying Agent, the
Paying Agent shall have no further liability for such assets.

 

SECTION 2.05.                                              Holder
Lists.

 

The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders.  If the Trustee is not the Registrar, the
Issuer shall furnish to the Trustee at least two (2) Business Days prior to
each Interest Payment Date and at such other times as the Trustee may request
in writing a list, in such form and as of such date as the Trustee may
reasonably require, of the names and addresses of Holders, which list may be
conclusively relied upon by the Trustee.

 

SECTION 2.06.                                              Transfer
and Exchange.

 

Subject to
Sections 2.15 and 2.16, when Notes are presented to the Registrar with a
request to register the transfer of such Notes or to exchange such Notes for an
equal principal amount of Notes of other authorized denominations, the
Registrar shall register the transfer or make the exchange as requested if its
requirements for such transaction are met; provided, however,

 

27

 

that the Notes
surrendered for transfer or exchange shall be duly endorsed or accompanied by a
written instrument of transfer in form satisfactory to the Issuer and the
Registrar, duly executed by the Holder thereof or his or her attorney duly
authorized in writing.  To permit
registrations of transfers and exchanges, the Issuer shall execute and the
Trustee shall authenticate Notes at the Registrar’s request.  No service charge shall be made for any
registration of transfer or exchange, but the Issuer may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith.

 

Without the prior written
consent of the Issuer, the Registrar shall not be required to register the
transfer of or exchange of any Note (i) during a period beginning at the
opening of business 15 days before the mailing of a notice of redemption of
Notes and ending at the close of business on the day of such mailing,
(ii) selected for redemption in whole or in part pursuant to
Article Three, except the unredeemed portion of any Note being redeemed in
part, and (iii) beginning at the opening of business on any Record Date
and ending on the close of business on the related Interest Payment Date.

 

Any Holder of a beneficial
interest in a Global Note shall, by acceptance of such beneficial interest,
agree that transfers of beneficial interests in such Global Notes may be
effected only through a book-entry system maintained by the Holder of such
Global Note (or its agent) in accordance with the applicable legends thereon,
and that ownership of a beneficial interest in the Note shall be required to be
reflected in a book-entry system.

 

SECTION 2.07.                                              Replacement
Notes.

 

If a mutilated Note is
surrendered to the Trustee or if the Holder of a Note claims that the Note has
been lost, destroyed or wrongfully taken, the Issuer shall issue and the
Trustee shall authenticate a replacement Note if the Trustee’s requirements are
met.  Such Holder must provide an
indemnity bond or other indemnity, sufficient in the judgment of both the
Issuer and the Trustee, to protect the Issuer, the Trustee or any Agent from
any loss which any of them may suffer if a Note is replaced.  The Issuer may charge such Holder for its
reasonable out-of-pocket expenses in replacing a Note pursuant to this
Section 2.07, including reasonable fees and expenses of counsel and of the
Trustee.

 

Every replacement Note is
an additional obligation of the Issuer and every replacement Subsidiary
Guarantee shall constitute an additional obligation of the Subsidiary Guarantor
thereof.

 

The provisions of this
Section 2.07 are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of lost,
destroyed or wrongfully taken Notes.

 

SECTION 2.08.                                              Outstanding
Notes.

 

Notes outstanding at any
time are all the Notes that have been authenticated by the Trustee except those
cancelled by it, those delivered to it for cancellation and those described in
this Section 2.08 as not outstanding. 
A Note does not cease to be outstanding because the Issuer,

 

28

 

the Subsidiary Guarantors
or any of their respective Affiliates hold the Note (subject to the provisions
of Section 2.09).

 

If a Note is replaced
pursuant to Section 2.07 (other than a mutilated Note surrendered for
replacement), it ceases to be outstanding unless a Responsible Officer of the
Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide
purchaser.  A mutilated Note ceases to
be outstanding upon surrender of such Note and replacement thereof pursuant to
Section 2.07.

 

If the principal amount
of any Note is considered paid under Section 4.01, it ceases to be
outstanding and interest ceases to accrue. 
If on a Redemption Date or the Stated Maturity the Trustee or Paying
Agent (other than the Issuer or an Affiliate thereof) holds U.S. Legal Tender
or U.S. Government Obligations sufficient to pay all of the principal and
interest due on the Notes payable on that date, then on and after that date
such Notes cease to be outstanding and interest on them ceases to accrue.

 

SECTION 2.09.                                              Treasury
Notes.

 

In determining whether
the Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Issuer or any of its
Affiliates shall be disregarded, except that, for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Notes that a Responsible Officer of the Trustee actually knows
are so owned shall be disregarded.

 

SECTION 2.10.                                              Temporary
Notes.

 

Until definitive Notes
are ready for delivery, the Issuer may prepare and the Trustee shall
authenticate temporary Notes.  Temporary
Notes shall be substantially in the form of definitive Notes but may have
variations that the Issuer considers appropriate for temporary Notes.  Without unreasonable delay, the Issuer shall
prepare and the Trustee shall authenticate definitive Notes in exchange for
temporary Notes.  Until such exchange,
temporary Notes shall be entitled to the same rights, benefits and privileges
as definitive Notes.  Notwithstanding
the foregoing, so long as the Notes are represented by a Global Note, such
Global Note may be in typewritten form.

 

SECTION 2.11.                                              Cancellation.

 

The Issuer at any time
may deliver Notes to the Trustee for cancellation.  The Registrar and the Paying Agent shall forward to the Trustee
any Notes surrendered to them for transfer, exchange or payment.  The Trustee, or at the direction of the
Trustee, the Registrar or the Paying Agent (other than the Issuer or a
Subsidiary), and no one else, shall cancel and, at the written direction of the
Issuer, shall dispose of all Notes surrendered for transfer, exchange, payment
or cancellation in accordance with its customary procedures.  Subject to Section 2.07, the Issuer may
not issue new Notes to replace Notes that it has paid or delivered to the
Trustee for cancellation.  If the Issuer
or any Subsidiary Guarantor shall acquire any of the Notes, such acquisition
shall not operate as a redemption or satisfaction of the Indebtedness
represented by

 

29

 

such Notes unless and
until the same are surrendered to the Trustee for cancellation pursuant to this
Section 2.11.

 

SECTION 2.12.                                              Defaulted
Interest.

 

If the Issuer defaults in
a payment of interest on the Notes, it shall pay the defaulted interest, plus
(to the extent lawful) any interest payable on the defaulted interest, in any
lawful manner.  The Issuer may pay the
defaulted interest to the persons who are Holders on a subsequent special
record date, which date shall be the fifteenth day next preceding the date fixed
by the Issuer for the payment of defaulted interest or the next succeeding
Business Day if such date is not a Business Day.  At least 15 days before any such subsequent special record date,
the Issuer shall mail to each Holder, with a copy to the Trustee, a notice that
states the subsequent special record date, the payment date and the amount of
defaulted interest, and interest payable on such defaulted interest, if any, to
be paid.

 

SECTION 2.13.                                              CUSIP
and ISIN Numbers.

 

The Issuer in issuing the
Notes may use “CUSIP” or “ISIN” numbers, and if so, the Trustee shall use the
“CUSIP” or “ISIN” numbers in notices of redemption or exchange as a convenience
to Holders; provided,
however, that any such notice may state that no representation is
made as to the correctness or accuracy of the “CUSIP” or “ISIN” numbers printed
in the notice or on the Notes, and that reliance may be placed only on the
other identification numbers printed on the Notes.  The Issuer will promptly notify the Trustee of any change in the “CUSIP”
or “ISIN” numbers.

 

SECTION 2.14.                                              Deposit
of Moneys.

 

Subject to Section 2
of the Notes, prior to 10:00 a.m. New York City time on each Interest Payment
Date, Stated Maturity, Redemption Date and Payment Date, the Issuer shall have
deposited with the Paying Agent in immediately available funds money sufficient
to make cash payments, if any, due on such Interest Payment Date, Stated
Maturity, Redemption Date and Payment Date, as the case may be, in a timely
manner which permits the Paying Agent to remit payment to the Holders on such
Interest Payment Date, Stated Maturity, Redemption Date and Payment Date, as
the case may be.

 

SECTION 2.15.                                              Book-Entry
Provisions for Global Notes.

 

(a)           The Global Notes initially shall (i)
be registered in the name of the Depository or the nominee of such Depository,
(ii) be delivered to the Trustee as custodian for such Depository and (iii)
bear legends as set forth in Exhibit B, as applicable.

 

Members of, or
participants in, the Depository (“Participants”) shall have no rights under
this Indenture with respect to any Global Note held on their behalf by the
Depository, or the Trustee as its custodian, or under the Global Note, and the
Depository may be treated by the Issuer, the Trustee and any agent of the
Issuer or the Trustee as the absolute owner of the Global Note for all purposes
whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Issuer, the Trustee or any agent of
the Issuer or the Trustee from giving effect to any

 

30

 

written certification,
proxy or other authorization furnished by the Depository or impair, as between
the Depository and Participants, the operation of customary practices governing
the exercise of the rights of a Holder of any Note.

 

(b)           Transfers of Global Notes shall be
limited to transfers in whole, but not in part, to the Depository, its
successors or their respective nominees. 
Interests of beneficial owners in the Global Notes may be transferred or
exchanged for Physical Notes in accordance with the rules and procedures of the
Depository and the provisions of Section 2.16.  In addition, Physical Notes shall be transferred to all
beneficial owners in exchange for their beneficial interests in Global Notes if
(i) the Depository notifies the Issuer that it is unwilling or unable to
act as Depository for any Global Note, the Issuer so notifies the Trustee in
writing and a successor Depository is not appointed by the Issuer within 90
days of such notice or (ii) a Default or Event of Default has occurred and
is continuing and the Registrar has received a written request from any owner
of a beneficial interest in a Global Note to issue Physical Notes.  Upon any issuance of a Physical Note in
accordance with this Section 2.15(b) the Trustee is required to register
such Physical Note in the name of, and cause the same to be delivered to, such
person or persons (or the nominee of any thereof).  All such Physical Notes shall bear the applicable legends, if
any.

 

(c)           In connection with any transfer or
exchange of a portion of the beneficial interest in a Global Note to beneficial
owners pursuant to paragraph (b) of this Section 2.15, the Registrar
shall (if one or more Physical Notes are to be issued) reflect on its books and
records the date and a decrease in the principal amount of such Global Note in
an amount equal to the principal amount of the beneficial interest in the
Global Note to be transferred, and the Issuer shall execute, and the Trustee
shall authenticate and deliver, one or more Physical Notes of authorized denominations
in an aggregate principal amount equal to the principal amount of the
beneficial interest in the Global Note so transferred.

 

(d)           In connection with the transfer of a
Global Note as an entirety to beneficial owners pursuant to paragraph (b)
of this Section 2.15, such Global Note shall be deemed to be surrendered
to the Trustee for cancellation, and (i) the Issuer shall execute, (ii) the
Subsidiary Guarantors shall execute notations of Subsidiary Guarantees on and
(iii) the Trustee shall upon written instructions from the Issuer authenticate
and deliver, to each beneficial owner identified by the Depository in exchange
for its beneficial interest in such Global Note, an equal aggregate principal
amount of Physical Notes of authorized denominations.

 

(e)           Any Physical Note constituting a
Restricted Security delivered in exchange for an interest in a Global Note
pursuant to paragraph (b) or (c) of this Section 2.15 shall, except
as otherwise provided by Section 2.16, bear the Private Placement Legend.

 

(f)            The Holder of any Global Note may
grant proxies and otherwise authorize any Person, including Participants and
Persons that may hold interests through Participants, to take any action which
a Holder is entitled to take under this Indenture or the Notes.

 

31

 

SECTION 2.16.                                              Special
Transfer and Exchange Provisions.

 

(a)           Transfers to Non-QIB Institutional
Accredited Investors.  The following
provisions shall apply with respect to the registration of any proposed
transfer of a Restricted Security to any Institutional Accredited Investor
which is not a QIB:

 

(i)            the Registrar shall register the
transfer of any Restricted Security, whether or not such Note bears the Private
Placement Legend, if (x) the requested transfer is after the second anniversary
of the Issue Date; provided, however, that neither the Issuer
nor any Affiliate of the Issuer has held any beneficial interest in such Note,
or portion thereof, at any time on or prior to the second anniversary of the
Closing Date or (y) the proposed transferee has delivered to the Registrar
a certificate substantially in the form of Exhibit C hereto and any
legal opinions and certifications as may be reasonably requested by the Trustee
and the Issuer;

 

(ii)           if the proposed transferee is a
Participant and the Notes to be transferred consist of Physical Notes which
after transfer are to be evidenced by an interest in the IAI Global Note, upon
receipt by the Registrar of the Physical Note and (x) written instructions
given in accordance with the Depository’s and the Registrar’s procedures and
(y) the certificate, if required, referred to in clause (y) of
paragraph (i) above (and any legal opinion or other certifications), the
Registrar shall register the transfer and reflect on its books and records the
date and an increase in the principal amount of the IAI Global Note in an
amount equal to the principal amount of Physical Notes to be transferred, and
the Registrar shall cancel the Physical Notes so transferred; and

 

(iii)          if the proposed transferor is a
Participant seeking to transfer an interest in a Global Note, upon receipt by
the Registrar of (x) written instructions given in accordance with the
Depository’s and the Registrar’s procedures and (y) the certificate, if
required, referred to in clause (y) of paragraph (i) above, the
Registrar shall register the transfer and reflect on its books and records the
date and (A) a decrease in the principal amount of the Global Note from which
such interests are to be transferred in an amount equal to the principal amount
of the Notes to be transferred and (B) an increase in the principal amount of
the IAI Global Note in an amount equal to the principal amount of the Notes to
be transferred.

 

(b)           Transfers to QIBs.  The following provisions shall apply with
respect to the registration of any proposed transfer of a Restricted Security
to a QIB:

 

(i)            the Registrar shall register the
transfer of any Restricted Security, whether or not such Note bears the Private
Placement Legend, if (x) the requested transfer is after the second
anniversary of the Closing Date; provided, however, that neither the Issuer
nor any Affiliate of the Issuer has held any beneficial interest in such Note,
or portion thereof, at any time on or prior to the second anniversary of the
Closing Date or (y) such transfer is being made by a proposed transferor
who has checked the box provided for on the applicable Global Note stating, or
has otherwise advised the Issuer and the Registrar in writing, that the sale
has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided for on the applicable
Global Note

 

32

 

stating, or has otherwise
advised the Issuer and the Registrar in writing, that it is purchasing the Note
for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a QIB within the
meaning of Rule 144A, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such
information regarding the Issuer as it has requested pursuant to Rule 144A
or has determined not to request such information and that it is aware that the
transferor is relying upon its foregoing representations in order to claim the
exemption from registration provided by Rule 144A;

 

(ii)           if the proposed transferee is a
Participant and the Notes to be transferred consist of Physical Notes which
after transfer are to be evidenced by an interest in the 144A Global Note, upon
receipt by the Registrar of the Physical Note and written instructions given in
accordance with the Depository’s and the Registrar’s procedures, the Registrar
shall register the transfer and reflect on its book and records the date and an
increase in the principal amount of the 144A Global Note in an amount equal to
the principal amount of Physical Notes to be transferred, and the Registrar
shall cancel the Physical Notes so transferred; and

 

(iii)          if the proposed transferor is a
Participant seeking to transfer an interest in the IAI Global Note or the
Regulation S Global Note, upon receipt by the Registrar of written
instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall register the transfer and reflect on its books
and records the date and (A) a decrease in the principal amount of the IAI
Global Note or the Regulation S Global Note, as the case may be, in an
amount equal to the principal amount of the Notes to be transferred and (B) an
increase in the principal amount of the 144A Global Note in an amount equal to
the principal amount of the Notes to be transferred.

 

(c)           Transfers to Non-U.S. Persons.  The following provisions shall apply with
respect to any transfer of a Restricted Security to a Non-U.S. Person under
Regulation S:

 

(i)            the Registrar shall register any
proposed transfer of a Restricted Security to a Non-U.S. Person upon receipt of
a certificate substantially in the form of Exhibit D from the
proposed transferor and such certifications, legal opinions and other
information as the Trustee or the Issuer may reasonably request; and

 

(ii)           (a) if the proposed transferor is a
Participant holding a beneficial interest in the Rule 144A Global Note or the
IAI Global Note or the Note to be transferred consists of Physical Notes, upon
receipt by the Registrar of (x) the documents required by paragraph (i)
and (y) instructions in accordance with the Depository’s and the
Registrar’s procedures, the Registrar shall reflect on its books and records
the date and a decrease in the principal amount of the Rule 144A Global
Note or the IAI Global Note, as the case may be, in an amount equal to the
principal amount of the beneficial interest in the Rule 144A Global Note
or the IAI Global Note, as the case may be, to be transferred or cancel the
Physical Notes to be transferred, and (b) if the proposed transferee is a
Participant, upon receipt by the Registrar of instructions given in accordance
with the Depository’s and the Registrar’s procedures, the Registrar shall
reflect on its books and records the date and an increase in the principal
amount of the Regulation S Global Note in an

 

33

 

amount equal to the
principal amount of the Rule 144A Global Note, the IAI Global Note or the
Physical Notes, as the case may be, to be transferred.

 

(d)           Exchange Offer.  Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Issuer shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.02,
the Trustee shall authenticate one or more Global Notes and/or Physical Notes
not bearing the Private Placement Legend in an aggregate principal amount equal
to the principal amount of the beneficial interests in the Initial Global Notes
or Physical Notes, as the case may be, tendered for acceptance in accordance
with the Exchange Offer and accepted for exchange in the Exchange Offer.

 

(e)           Restrictions on Transfer and
Exchange of Global Notes. 
Notwithstanding any other provisions of this Indenture, a Global Note
may not be transferred as a whole except by the Depository to a nominee of the
Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository.

 

(f)            Private Placement Legend.  Upon the transfer, exchange or replacement
of Notes not bearing the Private Placement Legend unless otherwise required by
applicable law, the Registrar shall deliver Notes that do not bear the Private
Placement Legend.  Upon the transfer,
exchange or replacement of Notes bearing the Private Placement Legend, the Registrar
shall deliver only Notes that bear the Private Placement Legend unless (i)
there is delivered to the Trustee an Opinion of Counsel reasonably satisfactory
to the Issuer and the Trustee to the effect that neither such legend nor the
related restrictions on transfer are required in order to maintain compliance
with the provisions of the Securities Act or (ii) such Note has been offered
and sold (including pursuant to the Exchange Offer) pursuant to an effective
registration statement under the Securities Act.

 

(g)           General.  By its acceptance of any Note bearing the
Private Placement Legend, each Holder of such a Note acknowledges the
restrictions on transfer of such Note set forth in this Indenture and in the
Private Placement Legend and agrees that it will transfer such Note only as
provided in this Indenture.

 

The Registrar shall
retain copies of all letters, notices and other written communications received
pursuant to Section 2.15 or Section 2.16.  The Issuer shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Registrar.

 

The Trustee shall have no
obligation or duty to monitor, determine or inquire as to compliance with any
restrictions on transfer imposed under this Indenture or under applicable law
with respect to any transfer of any interest in any Note (including any
transfers between or among Depository Participants or beneficial owners of
interests in any Global Note) other than to require delivery of such certificates
and other documentation or evidence as are expressly required by, and to do so
if and when expressly required by the terms of, this Indenture, and to examine
the same to determine substantial compliance as to form with the express
requirements hereof.

 

34

 

The Trustee shall have no
responsibility for the actions or omissions of the Depository, or the accuracy
of the books and records of the Depository.

 

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

 

ARTICLE THREE

 

REDEMPTION

 

SECTION 3.01.                                              Notices
to Trustee.

 

If the Issuer elects to redeem
Notes pursuant to Section 5 or Section 6 of the Notes, it shall
notify the Trustee in writing of the Redemption Date, the Redemption Price and
the principal amount of Notes to be redeemed. 
The Issuer shall give notice of redemption to the Trustee at least 45
days but not more than 60 days before the Redemption Date (unless a shorter
notice shall be agreed to by the Trustee in writing), together with such
documentation and records as shall enable the Trustee to select the Notes to be
redeemed.

 

SECTION 3.02.                                              Selection
of Notes To Be Redeemed.

 

If less than all of the
Notes are to be redeemed at any time pursuant to Section 5 or 6 of the
Notes, the Trustee will select Notes for redemption as follows:

 

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

 

(y)                                 if
the Notes are not so listed, on a pro rata basis, by lot or by such method
as the Trustee shall deem fair and appropriate;

 

provided, however, that, in the case
of such redemption pursuant to Section 6 of the Notes, the Trustee will
select the Notes on a pro rata basis or on as nearly a pro rata basis
as practicable (subject to the procedures of the Depository) unless that method
is otherwise prohibited.

 

35

 

No Notes of $1,000 or
less shall be redeemed in part.

 

SECTION 3.03.                                              Notice
of Redemption.

 

At least 30 days but not
more than 60 days before a Redemption Date, the Issuer shall mail a notice of
redemption by first class mail, postage prepaid, to each Holder whose Notes are
to be redeemed at its registered address (except that a notice issued in
connection with a redemption referred to in Section 8.01 may be more than
60 days before such Redemption Date). 
At the Issuer’s request, the Trustee shall forward the notice of
redemption in the Issuer’s name and at the Issuer’s expense.  Each notice for redemption shall identify
the Notes (including the CUSIP or ISIN number) to be redeemed and shall state:

 

(1)           the Redemption Date;

 

(2)           the Redemption Price and the amount
of accrued interest, if any, to be paid;

 

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

 

(4)           that Notes called for redemption must
be surrendered to the Paying Agent to collect the Redemption Price plus accrued
interest, if any;

 

(5)           that, unless the Issuer defaults in
making the redemption payment, interest on Notes called for redemption ceases
to accrue on and after the Redemption Date, and the only remaining right of the
Holders of such Notes is to receive payment of the Redemption Price upon
surrender to the Paying Agent of the Notes redeemed;

 

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

 

(7)           if fewer than all the Notes are to be
redeemed, the identification of the particular Notes (or portion thereof) to be
redeemed, as well as the aggregate principal amount of Notes to be redeemed and
the aggregate principal amount of Notes to be outstanding after such partial
redemption; and

 

(8)           the Section of the Notes or the
Indenture, as applicable, pursuant to which the Notes are to be redeemed.

 

The notice, if mailed in
a manner herein provided, shall be conclusively presumed to have been given,
whether or not the Holder receives such notice.  In any case, failure to give such notice by mail or any defect in
the notice to the Holder of any Note designated for redemption in whole or in
part shall not affect the validity of the proceedings for the redemption of any
other Note.  Notices of redemption may
not be conditional.

 

36

 

SECTION 3.04.                                              Effect
of Notice of Redemption.

 

Once notice of redemption
is mailed in accordance with Section 3.03, Notes called for redemption
become due and payable on the Redemption Date and at the Redemption Price plus
accrued interest, if any.  Upon
surrender to the Trustee or Paying Agent, such Notes called for redemption
shall be paid at the Redemption Price (which shall include accrued interest
thereon to, but not including, the Redemption Date), but installments of
interest, the maturity of which is on or prior to the Redemption Date, shall be
payable to Holders of record at the close of business on the relevant Record
Dates.  On and after the Redemption Date
interest shall cease to accrue on Notes or portions thereof called for
redemption unless the Issuer shall have not complied with its obligations
pursuant to Section 3.05.

 

SECTION 3.05.                                              Deposit
of Redemption Price.

 

On or before 10:00 a.m.
New York time on the Redemption Date, the Issuer shall deposit with the Paying
Agent U.S. Legal Tender sufficient to pay the Redemption Price plus accrued and
unpaid interest, if any, of all Notes to be redeemed on that date.

 

If the Issuer complies
with the preceding paragraph, then, unless the Issuer defaults in the payment
of such Redemption Price plus accrued interest, if any, interest on the Notes
to be redeemed will cease to accrue on and after the applicable Redemption
Date, whether or not such Notes are presented for payment.

 

SECTION 3.06.                                              Notes
Redeemed in Part.

 

If any Note is to be
redeemed in part only, the notice of redemption that relates to such Note shall
state the portion of the principal amount thereof to be redeemed.  A new Note or Notes in principal amount
equal to the unredeemed portion of the original Note or Notes shall be issued
in the name of the Holder thereof upon surrender and cancellation of the
original Note or Notes.

 

ARTICLE FOUR

 

COVENANTS

 

SECTION 4.01.                                              Payment
of Notes.

 

The Issuer shall pay the
principal of, premium, if any, and interest on the Notes in the manner provided
in the Notes, the Registration Rights Agreement and this Indenture.  An installment of principal of, or interest
on, the Notes shall be considered paid on the date it is due if the Trustee or
Paying Agent (other than the Issuer or an Affiliate thereof) holds on that date
U.S. Legal Tender designated for and sufficient to pay the installment.  Interest on the Notes will be computed on
the basis of a 360-day year comprised of twelve 30-day months.

 

The Issuer shall pay
interest on overdue principal (including post petition interest in a proceeding
under any Bankruptcy Law), and overdue interest, to the extent lawful, at the
same rate per
annum borne by the Notes.

 

37

 

SECTION 4.02.                                              Maintenance
of Office or Agency.

 

The Issuer shall maintain
in the Borough of Manhattan, The City of New York, the office or agency
required under Section 2.03 (which may be an office of the Trustee or an
affiliate of the Trustee or Registrar). 
The Issuer shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency.  If at any time the Issuer 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 set forth in
Section 11.02.

 

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

 

The Issuer hereby
initially designates U.S. Bank National Association, located at 1360 Peachtree
Street, N.E., Suite 1105, Atlanta, Georgia 30309, Attention: Corporate Trust
Department, as such office of the Issuer in accordance with Section 2.03.

 

SECTION 4.03.                                              Corporate
Existence.

 

Except as otherwise
permitted by Article Five, the Issuer shall do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate, partnership or other existence of each of its
Restricted Subsidiaries in accordance with the respective organizational
documents of each such Restricted Subsidiary and the material rights (charter
and statutory) and material franchises of the Issuer and each of its Restricted
Subsidiaries; provided, however, that the Issuer shall not be required to
preserve any such right, franchise or corporate existence with respect to
itself or any Restricted Subsidiary if the Board of Directors shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Issuer and its Restricted Subsidiaries, taken as a whole, and
that the loss thereof is not adverse in any material respect to the Holders of
the Notes.

 

SECTION 4.04.                                              Payment
of Taxes.

 

The Issuer and the
Subsidiary Guarantors shall, and shall cause each of the Restricted
Subsidiaries to, pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (a) all material taxes, assessments and
governmental charges levied or imposed upon it or any of the Restricted
Subsidiaries or upon the income, profits or property of it or any of the
Restricted Subsidiaries and (b) all lawful claims for labor, materials and
supplies which, in each case, if unpaid, might by law become a material
liability or Lien upon the property of it or any of the Restricted
Subsidiaries; provided, however, that the Issuer and the Subsidiary
Guarantors shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount the
applicability or validity is being contested in good faith by appropriate
actions and for which appropriate provision has been made.

 

38

 

SECTION 4.05.                                              Compliance
Certificate; Notice of Default.

 

(a)           The Issuer shall deliver to the
Trustee, within 120 days after the close of each fiscal year, an Officers’
Certificate stating that a review of the activities of the Issuer and its
Subsidiaries has been made under the supervision of the signing Officers with a
view to determining whether the Issuer and the Subsidiary Guarantors have kept,
observed, performed and fulfilled their obligations under this Indenture and
further stating, as to each such Officer signing such certificate, that to the
best of such Officer’s knowledge, the Issuer and the Subsidiary Guarantors
during such preceding fiscal year has kept, observed, performed and fulfilled
each and every such covenant and no Default occurred during such year and at
the date of such certificate there is no Default that has occurred and is
continuing or, if such signers do know of such Default, the certificate shall
specify such Default and what action, if any, the Issuer is taking or proposes
to take with respect thereto.  The
Officers’ Certificate shall also notify the Trustee should the Issuer elect to
change the manner in which it fixes the fiscal year end.

 

(b)           The Issuer shall deliver to the
Trustee promptly and in any event within five days after the Issuer becomes
aware of the occurrence of any Default an Officers’ Certificate specifying the
Default and what action, if any, the Issuer is taking or proposes to take with
respect thereto.

 

SECTION 4.06.                                              Waiver
of Stay, Extension or Usury Laws.

 

The Issuer and each
Subsidiary Guarantor covenants (to the extent permitted by applicable law) that
it will not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law or any usury law
or other law that would prohibit or forgive such Issuer or such Subsidiary
Guarantor from paying all or any portion of the principal of and/or interest on
the Notes or the Subsidiary Guarantee of any such Subsidiary Guarantor 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 permitted by applicable law) each 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 4.07.                                              Change
of Control.

 

The Issuer must commence,
within 30 days of the occurrence of a Change of Control, and consummate an
Offer to Purchase for all Notes then outstanding, at a purchase price equal to
101% of the principal amount of the Notes, plus accrued and unpaid interest, if
any, to the Payment Date.

 

SECTION 4.08.                                              Limitations
on Additional Indebtedness.

 

(a)           The Issuer will not, and will not
permit any of its Restricted Subsidiaries to, Incur any Indebtedness (including
Acquired Indebtedness) if, immediately after giving effect to the Incurrence of
such additional Indebtedness and the receipt and application of the proceeds
therefrom, the aggregate principal amount of all outstanding Indebtedness of
the Issuer and its

 

39

 

Restricted Subsidiaries on
a consolidated basis determined in conformity with GAAP is greater than 60% of
Adjusted Total Assets.

 

(b)           The Issuer will not, and will not
permit any of its Restricted Subsidiaries to, Incur any Subsidiary Debt or any
Secured Indebtedness if, immediately after giving effect to the Incurrence of
such additional Subsidiary Debt or Secured Indebtedness and the receipt and
application of the proceeds therefrom, the aggregate principal amount of all
outstanding Subsidiary Debt and Secured Indebtedness of the Issuer and its
Restricted Subsidiaries on a consolidated basis determined in conformity with
GAAP is greater than 40% of Adjusted Total Assets.

 

(c)           The Issuer will not, and will not
permit any of its Restricted Subsidiaries to, Incur any Indebtedness (other
than the Notes issued on the Closing Date and other Indebtedness existing on
the Closing Date); provided, however, that the Issuer or any
of the Subsidiary Guarantors may Incur Indebtedness if, after giving effect to
the Incurrence of such Indebtedness and the receipt and application of the
proceeds therefrom, the Interest Coverage Ratio of the Issuer and its
Restricted Subsidiaries on a consolidated basis would be greater than 2.0 to 1.

 

(d)           Notwithstanding paragraph (a),
(b) or (c) above, the Issuer or any of its Restricted Subsidiaries (except as
specified below) may Incur each and all of the following:

 

(1)           Indebtedness outstanding under the
Line of Credit at any time in an aggregate principal amount not to exceed $200
million;

 

(2)           Indebtedness owed to:

 

(i)                  the
Issuer evidenced by an unsubordinated promissory note,

 

(ii)               to
any Restricted Subsidiary;

 

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

 

(3)           Indebtedness issued in exchange for,
or the net proceeds of which are used to refinance or refund, outstanding
Indebtedness (other than Indebtedness Incurred under clause (1), (2) or (4) of
this paragraph (d)) and any refinancings thereof in an amount not to
exceed the amount so refinanced or refunded (plus premiums, accrued interest,
fees and expenses); provided, however, that Indebtedness the
proceeds of which are used to refinance or refund the Notes or Indebtedness
that ranks equally with or subordinate in right of payment to, the Notes shall
only be permitted under this clause (3) if:

 

(i)                                     in
case the Notes are refinanced in part or the Indebtedness to be refinanced
ranks equally with the Notes, such new Indebtedness, by its terms or by the
terms of any agreement or instrument pursuant to which such new Indebtedness is
outstanding, ranks equally with or is expressly made subordinate in right of
payment to the remaining Notes;

 

40

 

(ii)                                  in
case the Indebtedness to be refinanced is subordinated in right of payment to
the Notes, such new Indebtedness, by its terms or by the terms of any agreement
or instrument pursuant to which such new Indebtedness is issued or remains
outstanding, is expressly made subordinate in right of payment to the Notes at
least to the extent that the Indebtedness to be refinanced is subordinated to
the Notes; and

 

(iii)                               such new Indebtedness,
determined as of the date of Incurrence of such new Indebtedness, does not
mature prior to the Stated Maturity of the Indebtedness to be refinanced or refunded,
and the Average Life of such new Indebtedness is at least equal to the
remaining Average Life of the Indebtedness to be refinanced or refunded;

 

provided further, however,
that in no event may Indebtedness of the Issuer that ranks equally with or
subordinate in right of payment to the Notes be refinanced by means of any
Indebtedness of any Restricted Subsidiary pursuant to this clause (3);

 

(4)           Indebtedness:

 

(i)                                     in
respect of performance, surety or appeal bonds provided in the ordinary course
of business,

 

(ii)                                  under
Currency Agreements and Interest Rate Agreements; provided, however, that such
agreements (x) are designed solely to protect the Issuer or any of its
Restricted Subsidiaries against fluctuations in foreign currency exchange rates
or interest rates and (y) do not increase the Indebtedness of the obligor
outstanding at any time other than as a result of fluctuations in foreign
currency exchange rates or interest rates or by reason of fees, indemnities and
compensation payable thereunder; and

 

(iii)                               arising from agreements
providing for indemnification, adjustment of purchase price or similar
obligations, or from Guarantees or letters of credit, surety bonds or
performance bonds securing any obligations of the Issuer or any of its Restricted
Subsidiaries pursuant to such agreements, in any case Incurred in connection
with the disposition of any business, assets or Restricted Subsidiary (other
than Guarantees of Indebtedness Incurred by any Person acquiring all or any
portion of such business, assets or Restricted Subsidiary for the purpose of
financing such acquisition), in a principal amount not to exceed the gross
proceeds actually received by the Issuer and its Restricted Subsidiaries on a
consolidated basis in connection with such disposition;

 

(5)           Indebtedness of the Issuer, to the
extent the net proceeds thereof are promptly:

 

(i)                                     used
to purchase Notes tendered in an Offer to Purchase made as a result of a Change
in Control, or

 

41

 

(ii)                                  deposited
to defease the Notes as described in Sections 8.02 and 8.03, or

 

(iii)                               deposited to discharge
the obligations under the Notes and this Indenture as described in
Section 8.01;

 

(6)           Guarantees of the Notes and
Guarantees of Indebtedness of the Issuer by any of its Restricted Subsidiaries
provided the guarantee of such Indebtedness is permitted by and made in
accordance with Section 4.14; or

 

(7)           additional Indebtedness of the Issuer
and its Restricted Subsidiaries not to exceed $30 million in aggregate
principal amount at any time outstanding.

 

(e)           Notwithstanding any other provision
of this Section 4.08, the maximum amount of Indebtedness that the Issuer
or any of its Restricted Subsidiaries may Incur pursuant to this
Section 4.08 shall not be deemed to be exceeded, with respect to any
outstanding Indebtedness, due solely to the result of fluctuations in the
exchange rates of currencies.

 

(f)            For purposes of determining any
particular amount of Indebtedness under this Section 4.08,

 

(1)           Indebtedness Incurred under the Line
of Credit on or prior to the Closing Date shall be treated as Incurred pursuant
to clause (1) of paragraph (d) of this Section 4.08, and

 

(2)           Guarantees, Liens or obligations with
respect to letters of credit supporting Indebtedness otherwise included in the
determination of such particular amount shall not be included.

 

For purposes of
determining compliance with this Section 4.08, in the event that an item
of Indebtedness meets the criteria of more than one of the categories of permitted
Indebtedness described in clauses (1) through (7) of paragraph (d) above
or is entitled to be incurred pursuant to paragraph (c) above, the Issuer
shall, in its sole discretion, classify (and may later reclassify) such item of
Indebtedness and may divide and classify such Indebtedness in more than one of
the types of Indebtedness described, except that Indebtedness incurred under
the Line of Credit on the Issue Date shall be deemed to have been incurred
under clause (1) of paragraph (d) above.

 

SECTION 4.09.                                              Limitations
on Restricted Payments.

 

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

 

(1)           declare or pay any dividend or make
any distribution on or with respect to Capital Stock of the Issuer held by
Persons other than the Issuer or any of its Restricted Subsidiaries, other than
dividends or distributions payable solely in shares of its Capital Stock (other
than Disqualified Stock) or in options, warrants or other rights to acquire shares
of such Capital Stock;

 

42

 

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

 

(3)           make any voluntary or optional
principal payment, or voluntary or optional redemption, repurchase, defeasance,
or other acquisition or retirement for value, of Indebtedness of the Issuer
that is subordinated in right of payment to the Notes or the Subsidiary
Guaranties of the Notes; or

 

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

 

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

 

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

 

(B)           the Issuer could not Incur at least
$1.00 of Indebtedness under paragraphs (a), (b) and (c) of
Section 4.08, or

 

(C)           the aggregate amount of all
Restricted Payments (the amount, if other than in cash, to be determined in
good faith by the Board of Directors, whose determination shall be conclusive
and evidenced by a Board Resolution) made after the Closing Date shall exceed
the sum of:

 

(i)                                     95%
of the aggregate amount of the Funds From Operations (or, if the amount of
Funds From Operations is a loss, minus 100% of the amount of such loss) accrued
on a cumulative basis during the period (taken as one accounting period)
beginning on the first day of the fiscal quarter in which the Closing Date
occurs and ending on the last day of the last fiscal quarter preceding the
Transaction Date for which reports have been filed with the SEC or provided to
the Trustee pursuant to the Section 4.15, plus

 

(ii)                                  100%
of the aggregate Net Cash Proceeds received by the Issuer after the Closing
Date from the issuance and sale permitted by this Indenture of its Capital
Stock (other than Disqualified Stock) to a Person who is not a Subsidiary of
the Issuer, including from an issuance or sale permitted by this Indenture of
Indebtedness of the Issuer for cash subsequent to the Closing Date upon the
conversion of such Indebtedness into Capital Stock (other than Disqualified
Stock) of the Issuer, or from the issuance to a Person who is not a Subsidiary
of the Issuer of any options, warrants or other rights to acquire Capital Stock
of the Issuer (in each case, exclusive of any Disqualified Stock or any
options, warrants or other rights that are redeemable at the option of the
holder, or are required to be redeemed, prior to the Stated Maturity of the
Notes), plus

 

43

 

(iii)                               an amount equal to the
net reduction in Investments (other than reductions in Permitted Investments)
in any Person after the Closing Date resulting from payments of interest on
Indebtedness, dividends, repayments of loans or advances, or other transfers of
assets, in each case to the Issuer or any of its Restricted Subsidiaries or
from the Net Cash Proceeds from the sale of any such Investment (except, in
each case, to the extent any such payment or proceeds are included in the
calculation of Funds From Operations) or from redesignations of Unrestricted
Subsidiaries as Restricted Subsidiaries (valued in each case as provided in the
definition of “Investments”) not to exceed, in each case, the amount of
Investments previously made by the Issuer and its Restricted Subsidiaries in
such Person or Unrestricted Subsidiary, plus

 

(iv)                              the
fair market value of noncash tangible assets or Capital Stock acquired in
exchange for an issuance of Capital Stock (other than Disqualified Stock or
Capital Stock issued in exchange for Capital Stock of the Issuer pursuant to
clauses (3) or (4) of the Section 4.09(c)) of the Issuer subsequent to the
Closing Date, plus

 

(v)                                 $25
million.

 

(b)           Notwithstanding Section 4.09(a),
the Issuer may declare or pay any dividend or make any distribution that is
necessary to maintain the Issuer’s status as a REIT under the Code if:

 

(1)           the aggregate principal amount of all
outstanding Indebtedness of the Issuer and its Restricted Subsidiaries on a
consolidated basis at such time is less than 60% of Adjusted Total Assets; and

 

(2)           no Default or Event of Default shall
have occurred and be continuing.

 

(c)           The provisions of
Section 4.09(a) and 4.09(b) shall not be violated by reason of:

 

(1)           the payment of any dividend within 60
days after the date of declaration thereof if, at said date of declaration,
such payment would comply with Section 4.09(b);

 

(2)           the redemption, repurchase,
defeasance or other acquisition or retirement for value of Indebtedness that is
subordinated in right of payment to the Notes including premium, if any, and
accrued and unpaid interest, with the proceeds of, or in exchange for,
Indebtedness Incurred under Section 4.08(d)(3);

 

(3)           the repurchase, redemption or other
acquisition of Capital Stock of the Issuer or an Unrestricted Subsidiary (or
options, warrants or other rights to acquire such Capital Stock) in exchange
for, or out of the proceeds of an issuance of, shares of Capital Stock (other
than Disqualified Stock) of the Issuer (or options, warrants or other rights to

 

44

 

acquire such Capital Stock)
within 90 days of such repurchase, redemption or other acquisition;

 

(4)           the making of any principal payment
on, or the repurchase, redemption, retirement, defeasance or other acquisition
for value of, Indebtedness of the Issuer which is subordinated in right of
payment to the Notes in exchange for, or out of the proceeds of an issuance of,
shares of the Capital Stock (other than Disqualified Stock) of the Issuer (or
options, warrants or other rights to acquire such Capital Stock) within 90 days
of such principal payment, repurchase, redemption, retirement, defeasance or
other acquisition;

 

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

 

(6)           the payment of any regularly
scheduled cash dividend on shares of cumulative preferred stock of the Issuer
outstanding on the Closing Date as in effect on the Closing Date;

 

(7)           the repurchase, redemption or other
acquisition or retirement for value of any shares of Capital Stock of the
Issuer held by any member of the Issuer’s (or any of the Restricted
Subsidiaries’) management or other employees pursuant to (A) any management or
employee equity subscription agreement, stock option agreement or similar
agreement in an aggregate amount not to exceed $1 million in the aggregate in any
12-month period or (B) the terms of any employee stock option plan of the
Issuer for the purpose of paying employee withholding taxes with respect to
such shares; or

 

(8)           additional Restricted Payments in an
aggregate amount not to exceed $15 million;

 

provided, however, that, except in the
case of clauses (1) and (3), no Default or Event of Default shall have occurred
and be continuing or occur as a direct consequence of the actions or payments
set forth therein.

 

Each Restricted Payment
permitted pursuant to the immediately preceding paragraph (other than the
Restricted Payment referred to in clause (2) of the immediately preceding
paragraph or an exchange of Capital Stock for Capital Stock or
Indebtedness referred to in clause (3) or (4) of the immediately preceding
paragraph), and the Net Cash Proceeds from any issuance of Capital Stock
referred to in clauses (3) and (4) of the immediately preceding paragraph,
shall be included in calculating whether the conditions of
Section 4.09(a)(C) have been met with respect to any subsequent Restricted
Payments.

 

SECTION 4.10.                                              Maintenance
of Total Unencumbered Assets.

 

The Issuer and its
Restricted Subsidiaries will maintain Total Unencumbered Assets of not less
than 150% of the aggregate outstanding principal amount of the Unsecured
Indebtedness of the Issuer and its Restricted Subsidiaries on a consolidated
basis.

 

45

 

SECTION 4.11.                                              Limitations
on Asset Sales.

 

(a)           The Issuer will not, and will not
permit any of its Restricted Subsidiaries to, consummate any Asset Sale,
unless:

 

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

 

(2)           at least 75% of the consideration
received consists of cash or Temporary Cash Investments; provided, however, with
respect to the sale of one or more healthcare properties that (A) up to 75% of
the consideration may consist of indebtedness of the purchaser of such
healthcare properties so long as such indebtedness is secured by a first
priority Lien on the healthcare property or properties sold and (B) up to
66-2/3% of the consideration may consist of indebtedness of the purchaser of
such healthcare properties so long as such indebtedness is secured by a second
priority Lien on the healthcare property or properties sold and such
indebtedness together with all other indebtedness received pursuant to this
clause (B) does not exceed $7.5 million in aggregate principal amount at any time
outstanding.

 

(b)           In the event and to the extent that
the Net Cash Proceeds received by the Issuer or such Restricted Subsidiary from
one or more Asset Sales occurring on or after the Closing Date in any period of
12 consecutive months exceed 5% of Adjusted Consolidated Net Tangible Assets
(determined as of the date closest to the commencement of such 12-month period
for which a consolidated balance sheet of the Issuer and its Restricted
Subsidiaries has been filed with the SEC or provided to the Trustee pursuant to
Section 4.15), then the Issuer shall or shall cause the relevant
Restricted Subsidiary to:

 

(1)           within 12 months after the date Net
Cash Proceeds so received exceed 5% of Adjusted Consolidated Net Tangible
Assets:

 

(i)                                     apply
an amount equal to such excess Net Cash Proceeds to permanently reduce
Indebtedness under the Line of Credit, or

 

(ii)                                  invest
an equal amount, or the amount not so applied pursuant to clause (i) of
this Section 4.11(b)(1) (or enter into a definitive agreement committing
to so invest within six months after the date of such agreement), in property
or assets (which may include Permitted Mortgage Investments) (other than
current assets) of a nature or type or that are used in a business (or in a
Restricted Subsidiary having property and assets of a nature or type, or
engaged in a business) similar or related to the nature or type of the property
and assets of, or the business of, the Issuer or any of its Restricted
Subsidiaries existing on the date of such Investment, and

 

(2)           apply (no later than the end of the
12-month period referred to in clause (1)) such excess Net Cash Proceeds (to
the extent not applied pursuant to clause (1)) as provided in the following
paragraph of this Section 4.11.

 

46

 

The amount of such excess
Net Cash Proceeds required to be applied (or to be committed to be applied)
during such 12-month period as set forth in clause (1) of the preceding
sentence and not applied as so required by the end of such period shall
constitute “Excess Proceeds.”  If,
as of the first day of any calendar month, the aggregate amount of Excess
Proceeds not previously subject to an Offer to Purchase pursuant to this
Section 4.11 totals at least $10 million, the Issuer must commence, not
later than the fifteenth Business Day of such month, and consummate an Offer to
Purchase from the Holders of the Notes and, to the extent required by the terms
of any Pari Passu Indebtedness, to all holders of such Pari Passu Indebtedness
on a pro
rata basis an aggregate principal amount of Notes (and Pari Passu
Indebtedness) equal to the Excess Proceeds on such date, at a purchase price
equal to 100% of the principal amount of the Notes (and Pari Passu
Indebtedness), plus, in each case, accrued and unpaid interest, if any, to the
Payment Date.

 

SECTION 4.12.                                              Limitations
on Transactions with Affiliates.

 

(a)           The Issuer will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, enter
into, renew or extend any transaction (including the purchase, sale, lease or
exchange of property or assets, or the rendering of any service) with any
holder (or any Affiliate of such holder) of 5% or more of any class of Capital
Stock of the Issuer or with any Affiliate of the Issuer or any of its
Restricted Subsidiaries, except upon fair and reasonable terms no less
favorable to the Issuer or such Restricted Subsidiary than could be obtained,
at the time of such transaction or, if such transaction is pursuant to a
written agreement, at the time of the execution of the agreement providing
therefor, in a comparable arm’s-length transaction with a Person that is not
such a holder or an Affiliate.

 

(b)           The limitation set forth in
Section 4.12(a) does not limit, and shall not apply to:

 

(1)           transactions (A) approved by a
majority of the independent directors of the Board of Directors of the Issuer
or (B) for which the Issuer or any Restricted Subsidiary delivers to the
Trustee a written opinion of a nationally recognized investment banking firm stating
that the transaction is fair to the Issuer or such Restricted Subsidiary from a
financial point of view;

 

(2)           any transaction solely between the
Issuer and any of its Wholly Owned Restricted Subsidiaries or solely between
Wholly Owned Restricted Subsidiaries;

 

(3)           the payment of reasonable and
customary fees and expenses to directors of the Issuer who are not employees of
the Issuer;

 

(4)           any Restricted Payments not
prohibited by Section 4.09;

 

(5)           any employment agreement entered into
by the Issuer or any Restricted Subsidiary with an employee of the Issuer or
such Restricted Subsidiary in the ordinary course consistent with past
practice; or

 

47

 

(6)           advances to employees of the Issuer
or any Restricted Subsidiary for reasonable moving and relocation,
entertainment and travel expenses and similar expenses in the ordinary course
of business and consistent with past practice.

 

(c)           Notwithstanding Section 4.12(a)
and 4.12(b), any transaction or series of related transactions covered by
Section 4.12(a) and not covered by clause (2) through (6) of
Section 4.12(b):

 

(i)                                     the
aggregate amount of which exceeds $5 million in value must be approved or
determined to be fair in the manner provided for in Section 4.12(b)(1)(A)
or (B); and

 

(ii)                                  the
aggregate amount of which exceeds $10 million in value, must be determined to
be fair in the manner provided for in Section 4.12(b)(1)(B);

 

SECTION 4.13.                                              Limitations
on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

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

 

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

 

(2)           pay any Indebtedness owed to the
Issuer or any other Restricted Subsidiary;

 

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

 

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

 

(b)           Section 4.13(a) shall not
restrict any encumbrances or restrictions:

 

(1)           existing on the Closing Date in this
Indenture, the Line of Credit and any other agreement in effect on the Closing
Date as in effect on the Closing Date, and any extensions, refinancings,
renewals or replacements of such agreements; provided, however, that the
encumbrances and restrictions in any such extensions, refinancings, renewals or
replacements are no less favorable in any material respect to the Holders than
those encumbrances or restrictions that are then in effect and that are being
extended, refinanced, renewed or replaced;

 

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

 

(3)           existing with respect to any Person
or the property or assets of such Person acquired by the Issuer or any
Restricted Subsidiary, existing at the time of such acquisition

 

48

 

and not Incurred in
contemplation thereof, which encumbrances or restrictions are not applicable to
any Person or the property or assets of any Person other than such Person or the
property or assets of such Person so acquired;

 

(4)           in the case of
Section 4.15(a)(4):

 

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

 

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

 

(iii)                               arising or agreed to in
the ordinary course of business, not relating to any Indebtedness, and that do
not, individually or in the aggregate, detract from the value of property or
assets of the Issuer or any Restricted Subsidiary in any manner material to the
Issuer and its Restricted Subsidiaries taken as a whole;

 

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

 

(6)           contained in the terms of any
Indebtedness or any agreement pursuant to which such Indebtedness was issued
if:

 

(i)                                     the
encumbrance or restriction applies only in the event of a payment default or a
default with respect to a financial covenant contained in such Indebtedness or
agreement,

 

(ii)                                  the
encumbrance or restriction is not materially more disadvantageous to the
Holders of the Notes than is customary in comparable financings (as determined
by the good faith judgment of the Board of Directors of the Issuer), and

 

(iii)                               the Board of Directors
of the Issuer, in its good faith, determines that an such encumbrance or
restriction will not materially affect the Issuer’s ability to make principal
or interest payments on the Notes; or

 

(7)           restrictions on the transfer of
assets subject to any Lien permitted under this Indenture imposed by the holder
of such Lien.

 

(c)           Nothing contained in this
Section 4.13 shall prevent the Issuer or any Restricted Subsidiary from
restricting the sale or other disposition of property or assets of the Issuer
or any of its Restricted Subsidiaries that secure Indebtedness of the Issuer or
any of its Restricted Subsidiaries.

 

49

 

SECTION 4.14.                                              Limitation
on Issuances of Guarantees by Restricted Subsidiaries.

 

(a)           The Issuer will not permit any of its
Restricted Subsidiaries, directly or indirectly, to Guarantee any Indebtedness
of the Issuer which ranks equally with or subordinate in right of payment to
the Notes (“Guaranteed Indebtedness”), unless:

 

(1)           such Restricted Subsidiary
simultaneously executes and delivers a supplemental indenture to this Indenture
providing for a Subsidiary Guarantee by such Restricted Subsidiary; and

 

(2)           such Restricted Subsidiary waives and
will not in any manner whatsoever claim or take the benefit or advantage of,
any rights of reimbursement, indemnity or subrogation or any other rights
against the Issuer or any other Restricted Subsidiary as a result of any
payment by such Restricted Subsidiary under its Subsidiary Guarantee;

 

provided, however, that this
paragraph shall not be applicable to any Guarantee of any Restricted
Subsidiary that existed at the time such Person became a Restricted Subsidiary
and was not Incurred in connection with, or in contemplation of, such person
becoming a Restricted Subsidiary. If the Guaranteed Indebtedness:

 

(i)                                     ranks
equally with the Notes, then the Guarantee of such Guaranteed Indebtedness
shall rank equally with, or subordinate to, the Subsidiary Guarantee; or

 

(ii)                                  is
subordinate to the Notes, then the Guarantee of such Guaranteed Indebtedness
shall be subordinated to the Subsidiary Guarantee at least to the extent that
the Guaranteed Indebtedness is subordinated to the Notes.

 

(b)           Any Subsidiary Guarantee by a
Restricted Subsidiary may provide by its terms that it shall be automatically
and unconditionally released and discharged upon:

 

(1)           any sale, exchange or transfer, to
any Person not an Affiliate of the Issuer of all of Capital Stock held by the
Issuer and its Restricted Subsidiaries in, or all or substantially all the
assets of, such Restricted Subsidiary (which sale, exchange or transfer is not
prohibited by this Indenture); or

 

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

 

SECTION 4.15.                                              Reports
to Holders.

 

Whether or not the Issuer
is then required to file reports with the SEC, the Issuer shall file with the
SEC all such reports and other information as it would be required to file with
the SEC by Sections 13 (a) or 15 (d) under the Exchange Act if it was
subject thereto; provided, however, that, if filing such documents by
the Issuer with the SEC is not permitted under the

 

50

 

Exchange
Act, the Issuer shall provide such documents to the Trustee and upon written
request supply copies of such documents to any prospective Holder.  The Issuer shall supply the Trustee and each
Holder or shall supply to the Trustee for forwarding to each Holder, without
cost to such Holder, copies of such reports and other information.

 

SECTION 4.16.                                              Suspension
of Covenants

 

During a Suspension Period,
the Issuer and its Subsidiaries will not be subject to Section 4.07, 4.09,
4.11, 4.12, 4.13 or 4.14.  All other
provisions of this Indenture shall continue to apply during any Suspension
Period so long as any Notes remain outstanding.

 

“Suspension Period” means
any period (1) beginning on the date that:

 

(1)           the Notes have Investment Grade
status by both Rating Agencies;

 

(2)           no Default or Event of Default has
occurred and is continuing; and

 

(3)           the Issuer has delivered an Officers’
Certificate to the Trustee certifying that the conditions set forth in clauses
(1) and (2) above are satisfied; and

 

(2)           ending on the date (the “Reversion
Date”) that the Notes cease to have Investment Grade Status.

 

On each Reversion Date,
all Indebtedness incurred during the Suspension Period prior to such Reversion
Date will be deemed to have been outstanding on the Issue Date.

 

For purposes of
calculating the amount available to be made as Restricted Payments under
Section 4.09(a)(C), calculations under that clause will be made with
reference to the Transaction Date as set forth in that clause.  Accordingly, (x) Restricted Payments made
during the Suspension Period permitted pursuant to any of clauses (1) through
(8) of Section 4.09(c), will reduce the amount available to be made as
Restricted Payments under Section 4.09(a)(C) to the extent that would
otherwise be required by the second paragraph of Section 4.09(b); provided,
however,
that the amount available to be made as a Restricted Payment on the Transaction
Date shall not be reduced to below zero solely as a result of such Restricted
Payments, but may be reduced to below zero as a result of cumulative Funds from
Operations for the purpose of Section 4.09(a)(C)(i) being a negative, and
(y) the items specified in Section 4.09(a)(C)(i), (ii), (iii) and
(iv) that occur during the Suspension Period will increase the amount available
to be made as Restricted Payment under Section 4.09(a)(C).  Any Restricted Payment made during the
Suspension Period that are of the type described in Section 4.09(c) (other
than the Restricted Payment referred to in clause (2) of
Section 4.09(c) or an exchange of Capital Stock for Capital Stock or
Indebtedness referred to in clause (3) or (4) of
Section 4.09(c)), and the Net Cash Proceeds from any issuance of Capital
Stock referred to in clauses (3) and (4) of Section 4.09(c)
shall be included in calculating the amounts permitted to be incurred under
Section 4.09(a)(C) on each Reversion Date.

 

For purposes of
Section 4.11, on each Reversion Date, the unutilized Excess Proceeds will
be reset to zero.

 

51

 

During any Suspension
Period, the Issuer will not, and will not permit any of its Restricted
Subsidiaries to, make any Investment in an Unrestricted Subsidiary.

 

ARTICLE FIVE

 

SUCCESSOR CORPORATION

 

SECTION 5.01.                                              Consolidation,
Merger and Sale of Assets.

 

(a)           The Issuer will not consolidate with
or merge with or into, or sell, convey, transfer, lease or otherwise dispose of
all or substantially of its property and assets (as an entirety or
substantially an entirety in one transaction or a series of related
transactions) to, any Person or permit any Person to merge with or into the
Issuer unless:

 

(1)           the Issuer shall be the continuing
Person, or the Person (if other than the Issuer) formed by such consolidation
or into which the Issuer is merged or that acquired or leased such property and
assets of the Issuer shall be a corporation organized and validly existing
under the laws of the United States of America or any state or jurisdiction
thereof and shall expressly assume, by a supplemental indenture, executed and
delivered to the Trustee, all of the obligations of the Issuer on the Notes and
under this Indenture;

 

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

 

(3)           immediately after giving effect to
such transaction on a pro forma basis the Issuer, or any Person
becoming the successor obligor of the Notes, as the case may be, could Incur at
least $1.00 of Indebtedness under paragraphs (a), (b) and (c) of
Section 4.08; provided, however, that this clause (3)
shall not apply to a consolidation or merger with or into a Wholly Owned
Restricted Subsidiary with a positive net worth; provided further, however,
that, in connection with any such merger or consolidation, no consideration
(other than Capital Stock (other than Disqualified Stock) in the surviving
Person or the Issuer) shall be issued or distributed to the holders of Capital
Stock of the Issuer; and

 

(4)           the Issuer delivers to the Trustee an
Officers’ Certificate (attaching the arithmetic computations to demonstrate
compliance with clause (3) above) and an Opinion of Counsel, in each case
stating that such consolidation, merger or transfer and such supplemental
indenture complies with this Section 5.01 and that all conditions
precedent provided for herein relating to such transaction have been complied
with; provided,
however, that clause (3) above does not apply if, in the good faith
determination of the Board of Directors of the Issuer, whose determination
shall be evidenced by a Board Resolution, the principal purpose of such
transaction is to change the state of domicile of the Issuer; provided
further, however, that any such transaction shall
not have as one of its purposes the evasion of the foregoing limitations.

 

52

 

(b)           Except as provided in
Section 10.04, no Subsidiary Guarantor may consolidate with or merge with
or into (whether or not such Subsidiary Guarantor is the surviving Person)
another Person, unless:

 

(1)           either such Subsidiary Guarantor
shall be the continuing Person or the Person (if other than such Subsidiary
Guarantor) formed by such consolidation or into which Subsidiary Guarantor is
merged shall be a corporation organized and validly existing under the laws of
the United States of America or any state or jurisdiction thereof and shall
expressly assume, by a supplemental indenture, executed and delivered to the
Trustee, all of the obligations of such Subsidiary Guarantor under the
Subsidiary Guarantee of such Subsidiary Guarantor and under this Indenture;

 

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

 

(c)           For purposes of the foregoing, the
transfer (by lease, assignment, sale or otherwise, in a single transaction or
series of transactions) of all or substantially all of the properties or assets
of one or more Restricted Subsidiaries, the Capital Stock of which constitute
all or substantially all of the properties and assets of the Issuer, will be
deemed to be the transfer of all or substantially all of the properties and
assets of the Issuer.

 

(d)           Upon any such consolidation, combination
or merger of the Issuer or a Subsidiary Guarantor, or any such sale,
conveyance, transfer, lease or other disposition of all or substantially all of
the assets of the Issuer in accordance with this Section 5.01, in which
the Issuer or such Subsidiary Guarantor is not the continuing obligor under the
Notes or its Subsidiary Guarantee, the surviving entity formed by such
consolidation or into which the Issuer or such Subsidiary Guarantor is merged
or the entity to which the sale, conveyance, transfer, lease or other
disposition is made will succeed to, and be substituted for, and may exercise
every right and power of, the Issuer or such Subsidiary Guarantor under this
Indenture and, the Notes and the Subsidiary Guarantees with the same effect as
if such surviving entity had been named therein as the Issuer or such
Subsidiary Guarantor and, except in the case of a lease, the Issuer or such
Subsidiary Guarantor, as the case may be, will be released from the obligation
to pay the principal of and interest on the Notes or in respect of its
Subsidiary Guarantee, as the case may be, and all of the Issuer’s or such
Subsidiary Guarantor’s other obligations and covenants under the Notes, this
Indenture and its Subsidiary Guarantee, if applicable.

 

(e)           Notwithstanding the foregoing, any
Restricted Subsidiary may consolidate with or merge with or into the Issuer or
another Restricted Subsidiary.

 

53

 

ARTICLE SIX

 

DEFAULT AND REMEDIES

 

SECTION 6.01.                                              Events
of Default.

 

Each of the following is
an “Event
of Default”:

 

(1)           default in the payment of principal
of, or premium, if any, on any Note when they are due and payable at maturity,
upon acceleration, redemption or otherwise;

 

(2)           default in the payment of interest on
any Note when they are due and payable, and such default continues for a period
of 30 days;

 

(3)           default in the performance or breach
of the provisions of this Indenture applicable to mergers, consolidations and
transfers of all or substantially all of the assets of the Issuer or the
failure by the Issuer to make or consummate an Offer to Purchase in accordance
with Section 4.07 or Section 4.11;

 

(4)           the Issuer defaults in the
performance of or breaches any other covenant or agreement of the Issuer in this
Indenture or under the Notes (other than a default specified in clause (1), (2)
or (3) above) and such default or breach continues for a period of 30
consecutive days after written notice by the Trustee or the Holders of 25% or
more in aggregate principal amount of the Notes;

 

(5)           there occurs with respect to any
issue or issues of Indebtedness of the Issuer or any Significant Subsidiary
having an outstanding principal amount of $10 million or more in the aggregate
for all such issues of all such Persons, whether such Indebtedness now exists
or shall hereafter be created,

 

(i)                                     an
event of default that has caused the Holder thereof to declare such
Indebtedness to be due and payable prior to its Stated Maturity and such
Indebtedness has not been discharged in full or such acceleration has not been
rescinded or annulled within 30 days of such acceleration and/or

 

(ii)                                  the
failure to make a principal payment at the final (but not any interim) fixed
maturity and such defaulted payment shall not have been made, waived or
extended within 30 days of such payment default;

 

(6)           any final judgment or order (not
covered by insurance) for the payment of money in excess of $10 million in the
aggregate for all such final judgments or orders against all such Persons
(treating any deductibles, self-insurance or retention as not covered by
insurance):

 

(i)                                     shall
be rendered against the Issuer or any Significant Subsidiary and shall not be
paid or discharged, and

 

54

 

(ii)                                  and
there shall be any period of 60 consecutive days following entry of the final
judgment or order that causes the aggregate amount for all such final judgments
or orders outstanding and not paid or discharged against all such Persons to
exceed $10 million during which a stay of enforcement of such final judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect;

 

(7)           a court of competent jurisdiction
enters a decree or order for:

 

(i)                                     relief
in respect of the Issuer or any Significant Subsidiary in an involuntary case
under any Bankruptcy Law now or hereafter in effect,

 

(ii)                                  appointment
of a receiver, liquidator, assignee custodian, trustee, sequestrator or similar
official of the Issuer or any Significant Subsidiary or for all or substantially
all of the property and assets of the Issuer or any Significant Subsidiary, or

 

(iii)                               the winding up or
liquidation of the affairs of the Issuer or any Significant Subsidiary and, in
each case, such decree or order shall remain unstayed and in effect for a
period of 60 consecutive days; or

 

(8)                                  the
Issuer or any Significant Subsidiary:

 

(i)                                     commences
a voluntary case under any Bankruptcy Law now or hereafter in effect, or
consents to the entry of an order for relief in an involuntary case under such
law,

 

(ii)                                  consents
to the appointment of or taking possession by a receiver, liquidator, assignee,
custodian trustee, sequestrator or similar official of the Issuer or such
Significant Subsidiary or for all or substantially all of the property and assets
of the Issuer or such Significant Subsidiary, or

 

(iii)                               effects any general
assignment for the benefit of its creditors.

 

SECTION 6.02.                                              Acceleration.

 

If an Event of Default
(other than an Event of Default specified in clause (7) or (8) of
Section 6.01 that occurs with respect to the Issuer) occurs and is
continuing under this Indenture, the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding, by written notice to
the Issuer (and to the Trustee if such notice is given by the Holders), may,
and the Trustee at the request of the Holders of at least 25% in aggregate
principal amount of the Notes then outstanding shall, declare the principal of,
premium, if any, and accrued interest on the Notes to be immediately due and
payable.  Upon a declaration of
acceleration, such principal of, premium, if any, and accrued interest shall be
immediately due and payable.  In the
event of a declaration of acceleration because an Event of Default set forth in
clause (5) of Section 6.01 has occurred and is continuing, such
declaration of acceleration shall be automatically rescinded and annulled if
the event of default triggering such Event of Default 

 

55

 

pursuant
to clause (5) of Section 6.01 shall be remedied or cured by the Issuer or
the relevant Significant Subsidiary or waived by the holders of the relevant
Indebtedness within 60 days after the declaration of acceleration with respect
thereto.

 

If an Event or Default
specified in clause (7) or (8) of Section 6.01 occurs with respect to the
Issuer, the principal of, premium, if any, and accrued interest on the Notes
then outstanding shall automatically become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder.
The Holders of at least a majority in principal amount of the outstanding Notes
by written notice to the Issuer and to the Trustee, may waive all past defaults
and rescind and annul a declaration of acceleration and its consequences if:

 

(x)                                   all
existing Events of Default, other than the nonpayment of the principal of,
premium, if any, and interest on the Notes that have become due solely by such
declaration of acceleration, have been cured or waived;

 

(y)                                 the
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction; and

 

(z)                                   in
the event of a cure or waiver of a Default of the type set forth in
Section 6.01(7) or (8), the Trustee shall have received an Officers’
Certificate and an Opinion of Counsel that such Default has been cured or
waived.

 

No such rescission shall
affect any subsequent Default or impair any right consequent thereto.

 

SECTION 6.03.                                              Other
Remedies.

 

If a Default occurs and
is continuing, the Trustee may pursue any available remedy by proceeding at law
or in equity to collect the payment of principal of, or interest on, the Notes
or to enforce the performance of any provision of the Notes or this Indenture.

 

The Trustee may maintain
a proceeding even if it does not possess any of the Notes or does not produce
any of them in the proceeding.  A delay
or omission by the Trustee or any Holder in exercising any right or remedy
accruing upon a Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Default. 
No remedy is exclusive of any other remedy.  All available remedies are cumulative to the extent permitted by
law.

 

SECTION 6.04.                                              Waiver
of Past Defaults.

 

Subject to
Sections 2.09, 6.07 and 9.02, the Holders of a majority in principal
amount of the outstanding Notes (which may include consents obtained in
connection with a tender offer or exchange offer of Notes) by notice to the
Trustee may waive an existing Default and its consequences, except a Default in
the payment of principal of, or interest on, any Note as specified in
Section 6.01(1) or (2).  The Issuer
shall deliver to the Trustee an Officers’ Certificate stating that the
requisite percentage of Holders have consented to such waiver and attaching
copies of such consents.  When a Default
is waived, it is cured and ceases.

 

56

 

SECTION 6.05.                                              Control
by Majority.

 

The Holders of at least a
majority in principal amount of the outstanding Notes may direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it.  Subject to Section 7.01, however, the
Trustee may refuse to follow any direction that conflicts with any law or this
Indenture, that may involve the Trustee in personal liability, or that the
Trustee determines in good faith may be unduly prejudicial to the rights of
another Holder; provided, however, that the Trustee may take any
other action deemed proper by the Trustee which is not inconsistent with such
direction.

 

In the event the Trustee
takes any action or follows any direction pursuant to this Indenture, the
Trustee shall be entitled to indemnification against any loss or expense caused
by taking such action or following such direction.

 

SECTION 6.06.                                              Limitation
on Suits.

 

No Holder will have any
right to institute any proceeding with respect to this Indenture or for any
remedy thereunder, unless the Trustee:

 

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

 

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

 

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

 

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

 

(5)           during such 60-day period, the
Holders of a majority in aggregate principal amount of the outstanding Notes do
not give the Trustee a direction that is inconsistent with the request.

 

(6)           However, such limitations do not
apply to a suit instituted by a Holder of any Note for enforcement of payment
of the principal of or interest on such Note on or after the due date therefor.

 

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

 

SECTION 6.07.                                              Rights
of Holders To Receive Payment.

 

Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of
principal of and premium, if any, and interest on, a Note, on or after the
respective due dates therefor, or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of the Holder.

 

57

 

SECTION 6.08.                                              Collection
Suit by Trustee.

 

If a Default in payment
of principal or interest specified in Section 6.01(1) or (2) occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of
an express trust against the Issuer or any other obligor on the Notes for the
whole amount of principal and accrued interest and fees remaining unpaid, together
with interest on overdue principal and, to the extent that payment of such
interest is lawful, interest on overdue installments of interest, in each case
at the rate per
annum borne by the Notes and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

SECTION 6.09.                                              Trustee
May File Proofs of Claim.

 

The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee (including any claim for the
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders allowed in any judicial proceedings relating to
the Issuer, their creditors or their property and shall be entitled and
empowered to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same, and any Custodian in
any such judicial proceedings is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agent and counsel, and any other amounts due the
Trustee under Section 7.07. 
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 Notes 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.  The Trustee shall be entitled to participate
as a member of any official committee of creditors in the matters as it deems
necessary or advisable.

 

SECTION 6.10.                                              Priorities.

 

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

 

First:  to the Trustee for amounts due under
Section 7.07;

 

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

 

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

 

Fourth:  to the Issuer or, if applicable, the
Subsidiary Guarantors, as their respective interests may appear.

 

58

 

The Trustee, upon prior
notice to the Issuer, may fix a record date and payment date for any payment to
Holders pursuant to this Section 6.10.

 

SECTION 6.11.                                              Undertaking
for Costs.

 

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

 

ARTICLE SEVEN

 

TRUSTEE

 

SECTION 7.01.                                              Duties
of Trustee.

 

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

 

(b)           Except during the continuance of a
Default:

 

(1)           The Trustee need perform only those
duties as are specifically set forth herein or in the Trust Indenture Act and
no duties, covenants, responsibilities or obligations shall be implied in this
Indenture against the Trustee.

 

(2)           In the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon certificates (including
Officers’ Certificates) or opinions (including Opinions of Counsel) furnished
to the Trustee and conforming to the requirements of this Indenture.  However, in the case of any such
certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

 

(c)           Notwithstanding anything to the
contrary herein, the Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

(1)           This paragraph does not limit
the effect of Section 7.01(b).

 

59

 

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

 

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

 

(d)           No provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder or to
take or omit to take any action under this Indenture or take any action at the
request or direction of Holders if it shall have reasonable grounds for
believing that repayment of such funds is not assured to it.

 

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

 

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

 

(g)           In the absence of bad faith,
negligence or willful misconduct on the part of the Trustee, the Trustee shall
not be responsible for the application of any money by any Paying Agent other
than the Trustee.

 

SECTION 7.02.                                              Rights
of Trustee.

 

Subject to
Section 7.01:

 

(a)           The Trustee may rely
conclusively on any resolution, certificate (including any Officers’
Certificate), statement, instrument, opinion (including any Opinion of
Counsel), notice, request, direction, consent, order, bond, debenture, or other
paper or document believed by it to be genuine and to have been signed or
presented by the proper Person.  The
Trustee need not investigate any fact or matter stated in the document.

 

(b)           Before the Trustee
acts or refrains from acting, it may require an Officers’ Certificate and an
Opinion of Counsel, which shall conform to the provisions of
Section 11.05.  The Trustee shall
not be liable for any action it takes or omits to take in good faith in
reliance on such Officer’s Certificate or Opinion of Counsel.

 

(c)           The Trustee may act
through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent (other than an agent who is an employee
of the Trustee) appointed with due care.

 

(d)           The Trustee shall
not be liable for any action it takes or omits to take in good faith which it
reasonably believes to be authorized or within its rights or powers under this
Indenture.

 

60

 

(e)           The Trustee may
consult with counsel of its selection and the advice or opinion of such counsel
as to matters of law shall be full and complete authorization and protection
from liability in respect of any action taken, omitted or suffered by it
hereunder in good faith and in accordance with the advice or opinion of such
counsel.

 

(f)            The Trustee shall
be under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request, order or direction of any of the Holders
pursuant to the provisions of this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities which may be incurred therein or
thereby.

 

(g)           The Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate (including any Officers’ Certificate), statement,
instrument, opinion (including any Opinion of Counsel), notice, request,
direction, consent, order, bond, debenture, or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled, upon reasonable
notice to the Issuer, to examine the books, records, and premises of the
Issuer, personally or by agent or attorney at the sole cost of the Issuer.

 

(h)           The Trustee shall
not be required to give any bond or surety in respect of the performance of its
powers and duties hereunder.

 

(i)            The permissive
rights of the Trustee to do things enumerated in this Indenture shall not be
construed as duties.

 

(j)            Except with respect
to Section 4.01 and 4.05, the Trustee shall have no duty to inquire as to
the performance of the Issuer with respect to the covenants contained in
Article 4.  In addition, the
Trustee shall not be deemed to have knowledge of an Event of Default except (i)
any Default or Event of Default occurring pursuant to Sections 4.01,
6.01(1) or 6.01(2) or (ii) any Default or Event of Default known to a
Responsible Officer.

 

(k)           The rights,
privileges, protections, immunities and benefits given to the Trustee,
including its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each
agent, custodian and other Person employed to act hereunder.

 

SECTION 7.03.                                              Individual
Rights of Trustee.

 

The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and
may otherwise deal with the Issuer, its Subsidiaries or its respective
Affiliates with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights.  However, the Trustee must comply with
Sections 7.10 and 7.11.

 

61

 

SECTION 7.04.                                              Trustee’s
Disclaimer.

 

The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Notes, it shall not be accountable for the Issuer’s use
of the proceeds from the Notes, and it shall not be responsible for any
statement of the Issuer in this Indenture or any document issued in connection
with the sale of Notes or any statement in the Notes other than the Trustee’s
certificate of authentication.  The
Trustee makes no representations with respect to the effectiveness or adequacy
of this Indenture.

 

SECTION 7.05.                                              Notice
of Default.

 

If a Default occurs and
is continuing and is deemed to be known to the Trustee pursuant to
Section 7.02(j), the Trustee shall mail to each Holder notice of the
uncured Default within 30 days after such Default occurs.  Except in the case of a Default in payment
of principal of, or interest on, any Note, including an accelerated payment and
the failure to make a payment on a Payment Date pursuant to an Offer to
Purchase or a Default in complying with the provisions of Article Five,
the Trustee may withhold the 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 determines that withholding the notice
is in the interest of the Holders.

 

SECTION 7.06.                                              Reports
by Trustee to Holders.

 

Within 60 days after each
January 1, beginning with January 1, 2005, the Trustee shall, to the
extent that any of the events described in Trust Indenture Act § 313(a)
occurred within the previous twelve months, but not otherwise, mail to each
Holder a brief report dated as of such date that complies with Trust Indenture
Act § 313(a).  The Trustee also
shall comply with Trust Indenture Act §§ 313(b), 313(c) and 313(d).

 

A copy of each report at
the time of its mailing to Holders shall be mailed to the Issuer and filed with
the SEC and each securities exchange, if any, on which the Notes are listed.

 

The Issuer shall notify
the Trustee if the Notes become listed on any securities exchange or of any
delisting thereof and the Trustee shall comply with Trust Indenture Act
§ 313(d).

 

SECTION 7.07.                                              Compensation
and Indemnity.

 

The Issuer shall pay to
the Trustee from time to time such compensation as the Issuer and the Trustee
shall from time to time agree in writing for its services hereunder.  The Trustee’s compensation shall not be limited
by any law on compensation of a trustee of an express trust.  The Issuer shall reimburse the Trustee upon
request for all reasonable disbursements, expenses and advances (including
reasonable fees and expenses of counsel) incurred or made by it in addition to
the compensation for its services, except any such disbursements, expenses and
advances as may be attributable to the Trustee’s negligence, bad faith or
willful misconduct.  Such expenses shall
include the reasonable fees and expenses of the Trustee’s agents and counsel.

 

62

 

The Issuer shall
indemnify each of the Trustee or any predecessor Trustee and its agents for,
and hold them harmless against, any and all loss, damage, claims including
taxes (other than taxes based upon, measured by or determined by the income of
the Trustee), liability or expense incurred by them except for such actions to
the extent caused by any negligence, bad faith or willful misconduct on their
part, arising out of or in connection with the acceptance or administration of
this trust including the reasonable costs and expenses of defending themselves
against or investigating any claim or liability in connection with the exercise
or performance of any of the Trustee’s rights, powers or duties hereunder.  The Trustee shall notify the Issuer promptly
of any claim asserted against the Trustee or any of its agents for which it may
seek indemnity.  The Issuer may, subject
to the approval of the Trustee (which approval shall not be unreasonably
withheld), defend the claim and the Trustee shall cooperate in the
defense.  The Trustee and its agents
subject to the claim may have separate counsel and the Issuer shall pay the
reasonable fees and expenses of such counsel; provided, however, that the
Issuer will not be required to pay such fees and expenses if, subject to the
approval of the Trustee (which approval shall not be unreasonably withheld), it
assumes the Trustee’s defense and there is no conflict of interest between the
Issuer and the Trustee and its agents subject to the claim in connection with
such defense as reasonably determined by the Trustee.  The Issuer need not pay for any settlement made without its
written consent.  The Issuer need not
reimburse any expense or indemnify against any loss or liability to the extent
incurred by the Trustee through its negligence, bad faith or willful
misconduct.

 

To secure the Issuer’s
payment obligations in this Section 7.07, the Trustee shall have a Lien
prior to the Notes against all money or property held or collected by the Trustee,
in its capacity as Trustee, except money or property held in trust to pay
principal and interest on particular Notes.

 

When the Trustee incurs
expenses or renders services after a Default specified in Section 6.01(7)
or 6.01(8) occurs, such expenses and the compensation for such services shall
be paid to the extent allowed under any Bankruptcy Law.

 

Notwithstanding any other
provision in this Indenture, the foregoing provisions of this Section 7.07
shall survive the satisfaction and discharge of this Indenture or the
appointment of a successor Trustee.

 

SECTION 7.08.                                              Replacement
of Trustee.

 

The Trustee may resign at
any time by so notifying the Issuer in writing.  The Holders of a majority in principal amount of the outstanding
Notes may remove the Trustee by so notifying the Issuer and the Trustee and may
appoint a successor Trustee.  The Issuer
may remove the Trustee if:

 

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

 

(2)           the Trustee is adjudged a bankrupt or
an insolvent;

 

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

 

63

 

(4)           the Trustee becomes incapable of
acting.

 

If the Trustee resigns or
is removed or if a vacancy exists in the office of Trustee for any reason, the
Issuer shall notify each Holder of such event and shall promptly appoint a
successor Trustee.  Within one year
after the successor Trustee takes office, the Holders of a majority in
principal amount of the Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Issuer.

 

A successor Trustee shall
deliver a written acceptance of its appointment to the retiring Trustee and to
the Issuer.  Immediately after that, the
retiring Trustee shall transfer, after payment of all sums then owing to the
Trustee pursuant to Section 7.07, all property held by it as Trustee to
the successor Trustee, subject to the Lien provided in Section 7.07, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture.  A successor
Trustee shall mail notice of its succession to each Holder.

 

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

 

If the Trustee fails to
comply with Section 7.10, any Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, the Issuer’s
obligations under Section 7.07 shall continue for the benefit of the
retiring Trustee.

 

SECTION 7.09.                                              Successor
Trustee by Merger, Etc.

 

If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the resulting,
surviving or transferee corporation without any further act shall, if such
resulting, surviving or transferee corporation is otherwise eligible hereunder,
be the successor Trustee; provided that such corporation shall be
otherwise qualified and eligible under this Article Seven.

 

SECTION 7.10.                                              Eligibility;
Disqualification.

 

This Indenture shall
always have a Trustee who satisfies the requirement of Trust Indenture Act
§§ 310(a)(1), 310(a)(2) and 310(a)(5). 
The Trustee shall have a combined capital and surplus of at least
$150,000,000 as set forth in its most recent published annual report of
condition.  The Trustee shall comply
with Trust Indenture Act § 310(b); provided, however, that there shall be
excluded from the operation of Trust Indenture Act § 310(b)(1) any
indenture or indentures under which other securities, or certificates of
interest or participation in other securities, of the Issuer are outstanding,
if the requirements for such exclusion set forth in Trust Indenture Act
§ 310(b)(1) are met.  The
provisions of Trust Indenture Act § 310 shall apply to the Issuer and any
other obligor of the Notes.

 

64

 

SECTION 7.11.                                              Preferential
Collection of Claims Against the Issuer.

 

The Trustee, in its
capacity as Trustee hereunder, shall comply with Trust Indenture Act
§ 311(a), excluding any creditor relationship listed in Trust Indenture
Act § 311(b).  A Trustee who has
resigned or been removed shall be subject to Trust Indenture Act § 311(a)
to the extent indicated.

 

ARTICLE EIGHT

 

DISCHARGE OF
INDENTURE; DEFEASANCE

 

SECTION 8.01.                                              Termination
of the Issuer’s Obligations.

 

The Issuer may terminate
its obligations under the Notes and this Indenture and the obligations of the
Subsidiary Guarantors under the Subsidiary Guarantees and this Indenture and
this Indenture shall cease to be of further effect, except those obligations
referred to in the penultimate paragraph of this Section 8.01, if:

 

(1)           either

 

(A)          all the Notes theretofore
authenticated and delivered (except lost, stolen or destroyed Notes which have
been replaced or paid and Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust) have been delivered to the
Trustee for cancellation; or

 

(B)           all Notes not theretofore delivered
to the Trustee for cancellation (1) have become due and payable or
(2) will become due and payable within one year, or 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 expense, of the Issuer, and the Issuer has irrevocably deposited or
caused to be deposited with the Trustee funds in an amount sufficient to pay
and discharge the entire Indebtedness on the Notes not theretofore delivered to
the Trustee for cancellation, for principal of, premium, if any, and interest
on the Notes to the date of maturity or redemption, as the case may be,
together with irrevocable instructions from the Issuer directing the Trustee to
apply such funds to the payment thereof at maturity or redemption, as the case
may be;

 

(2)           the Issuer has paid all sums payable
by them under this Indenture, and

 

(3)           the Issuer has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel stating that all
conditions precedent under this Indenture relating to the satisfaction and discharge
of this Indenture have been complied with.

 

In the case of clause (B)
of this Section 8.01, and subject to the next sentence and notwithstanding
the foregoing paragraph, the Issuer’s obligations in Sections 2.05, 2.06,
2.07, 2.08, 4.01, 4.02, 4.03 (as to legal existence of the Issuer only), 7.07,
8.05 and 8.06 shall survive

 

65

 

until
the Notes are no longer outstanding pursuant to the last paragraph of
Section 2.08.  After the Notes are
no longer outstanding, the Issuer’s obligations in Sections 7.07, 8.05 and
8.06 shall survive.

 

After such delivery or
irrevocable deposit, the Trustee upon request shall acknowledge in writing the
discharge of the Issuer’s obligations under the Notes and this Indenture except
for those surviving obligations specified above.

 

SECTION 8.02.                                              Legal
Defeasance and Covenant Defeasance.

 

(a)           The Issuer may, at its option and at
any time, elect to have either paragraph (b) or (c) below be applied to
all outstanding Notes upon compliance with the conditions set forth in
Section 8.03.

 

(b)           Upon the Issuer’s exercise under
Section 8.02(a) hereof of the option applicable to this
Section 8.02(b), the Issuer and the Subsidiary Guarantors shall, subject
to the satisfaction of the conditions set forth in Section 8.03, be deemed
to have been discharged from their obligations with respect to all outstanding
Notes on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”).  For this
purpose, Legal Defeasance means that the Issuer and the Subsidiary Guarantors
shall be deemed to have paid and discharged the entire Indebtedness represented
by the outstanding Notes and Subsidiary Guarantees, which shall thereafter be
deemed to be “outstanding” only for the purposes of Section 8.04 hereof
and the other Sections of this Indenture referred to in (i) and (ii)
below, and to have satisfied all its other obligations under such Notes and
this Indenture and the Subsidiary Guarantors shall be deemed to have satisfied
all of their obligations under the Subsidiary Guarantees and this Indenture
(and the Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging the same), except for the following provisions
which shall survive until otherwise terminated or discharged hereunder:

 

(i)            the rights of Holders of outstanding
Notes to receive, solely from the trust fund described in Section 8.04,
and as more fully set forth in such Section 8.04, payments in respect of
the principal of, premium, if any, and interest on such Notes when such
payments are due;

 

(ii)           the Issuer’s obligations with respect
to such Notes under Article Two and Section 4.02 hereof;

 

(iii)          the rights, powers, trusts, duties and
immunities of the Trustee hereunder and the Issuer’s obligations in connection
therewith; and

 

(iv)          the provisions of this
Article Eight applicable to Legal Defeasance.

 

Subject to compliance
with this Article Eight, the Issuer may exercise its option under this
Section 8.02(b) notwithstanding the prior exercise of its option under
Section 8.02(c).

 

(c)           Upon the Issuer’s exercise under
paragraph (a) hereof of the option applicable to this paragraph (c),
the Issuer and the Subsidiary Guarantors shall, subject to the satisfaction

 

66

 

of
the conditions set forth in Section 8.03, be released from their
respective obligations under the covenants contained in Sections 4.03
(other than with respect to the legal existence of the Issuer), 4.04, 4.07
through 4.16 and clause (3) of Section 5.01(a) with respect to the
outstanding Notes on and after the date the conditions set forth in
Section 8.03 are satisfied (hereinafter, “Covenant Defeasance”), and
the Notes shall thereafter be deemed not “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes).  For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, the Issuer and
the Subsidiary Guarantors may omit to comply with and shall have no liability
in respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such covenant or by reason of any reference in any such covenant to any
other provision herein or in any other document and such omission to comply
shall not constitute an Event of Default under Section 6.01, but, except
as specified above, the remainder of this Indenture and such Notes shall be
unaffected thereby.  In addition, upon
the Issuer’s exercise under paragraph (a) hereof of the option applicable
to this paragraph (c), subject to the satisfaction of the conditions set
forth in Section 8.03, clauses (3), (4), (5) and (6) of Section 6.01
shall not constitute Events of Default.

 

SECTION 8.03.                                              Conditions
to Legal Defeasance or Covenant Defeasance.

 

The following shall be
the conditions to the application of either Section 8.02(b) or 8.02(c)
hereof to the outstanding Notes:

 

(1)           the Issuer must irrevocably deposit
with the Trustee, in trust, for the benefit of the Holders, U.S. Legal Tender,
U.S. Government Obligations or a combination thereof, in such amounts as will
be sufficient (without reinvestment), in the opinion of a nationally recognized
firm of independent public accountants selected by the Issuer, to pay the
principal of and interest and premium, if any, on the Notes on the stated date
for payment or on the redemption date Notes;

 

(2)           in the case of Legal Defeasance, the
Issuer shall have delivered to the Trustee an Opinion of Counsel in the United
States confirming that:

 

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

 

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

 

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

 

67

 

(3)           in the case of Covenant Defeasance,
the Issuer shall have delivered to the Trustee an Opinion of Counsel in the
United States reasonably acceptable to the Trustee confirming that the Holders
will not recognize income, gain or loss for U.S. federal income tax purposes as
a result of such Covenant Defeasance and will be subject to U.S. federal income
tax on the same amounts, in the same manner and at the same times as would have
been the case if such Covenant Defeasance had not occurred;

 

(4)           no Default shall have occurred and be
continuing on the date of such deposit (other than a Default resulting from the
borrowing of funds to be applied to such deposit);

 

(5)           the Legal Defeasance or Covenant
Defeasance shall not result in a breach or violation of, or constitute a
Default under this Indenture or a default under any other material agreement or
instrument to which the Issuer or any of its Subsidiaries is a party or by
which the Issuer or any of its Subsidiaries is bound (other than any such
Default or default resulting solely from the borrowing of funds to be applied
to such deposit);

 

(6)           the Issuer shall have delivered to
the Trustee an Officers’ Certificate stating that the deposit was not made by
it with the intent of preferring the Holders over any other creditors of the
Issuer or with the intent of defeating, hindering, delaying or defrauding any other
of its creditors; and

 

(7)           the Issuer shall have delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that the conditions provided for in, in the case of the Officers’ Certificate,
clauses (1) through (6), as applicable, and, in the case of the Opinion of
Counsel, clauses (2), if applicable, and/or (3) and (5) of this
Section 8.03 have been complied with.

 

SECTION 8.04.                                              Application
of Trust Money.

 

The Trustee or Paying
Agent shall hold in trust U.S. Legal Tender and U.S. Government Obligations
deposited with it pursuant to this Article Eight, and shall apply the
deposited U.S. Legal Tender and the money from U.S. Government Obligations in
accordance with this Indenture to the payment of the principal of and the interest
on the Notes.  The Trustee shall be
under no obligation to invest said U.S. Legal Tender and U.S. Government
Obligations, except as it may agree with the Issuer.

 

The Issuer shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the U.S. Legal Tender and U.S. Government Obligations
deposited pursuant to Section 8.03 or the principal and interest received
in respect thereof, other than any such tax, fee or other charge which by law
is for the account of the Holders of the outstanding Notes.

 

Anything in this
Article Eight to the contrary notwithstanding, the Trustee shall deliver
or pay to the Issuer from time to time upon the Issuer’s request any U.S. Legal
Tender and U.S. Government Obligations held by it as provided in
Section 8.03 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification

 

68

 

thereof
delivered to the Trustee, are in excess of the amount thereof that would then
be required to be deposited to effect an equivalent Legal Defeasance or
Covenant Defeasance.

 

SECTION 8.05.                                              Repayment
to the Issuer.

 

The Trustee and the
Paying Agent shall pay to the Issuer upon request any money held by them for
the payment of principal or interest that remains unclaimed for two years; provided,
however,
that the Trustee or such Paying Agent, before being required to make any
payment, may at the expense of the Issuer cause to be published once in a newspaper
of general circulation in the City of New York or mail to each Holder entitled
to such money notice that such money remains unclaimed and that after a date
specified therein which shall be at least 30 days from the date of such
publication or mailing any unclaimed balance of such money then remaining will
be repaid to the Issuer.  After payment
to the Issuer, Holders entitled to such money must look to the Issuer for
payment as general creditors unless an applicable law designates another
Person.

 

SECTION 8.06.                                              Reinstatement.

 

If the Trustee or Paying
Agent is unable to apply any U.S. Legal Tender and U.S. Government Obligations
in accordance with this Article Eight by reason of any legal proceeding or
by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, or if the
funds deposited with the Trustee to effect Covenant Defeasance are insufficient
to pay the principal of, and interest on, the Notes when due, the Issuer’s
obligations under this Indenture, and the Notes and the Subsidiary Guarantees
shall be revived and reinstated as though no deposit had occurred pursuant to
this Article Eight until such time as the Trustee or Paying Agent is
permitted to apply all such U.S. Legal Tender and U.S. Government Obligations
in accordance with this Article Eight; provided that if the Issuer has made any
payment of interest on, or principal of, any Notes because of the reinstatement
of its obligations, the Issuer shall be subrogated to the rights of the Holders
of such Notes to receive such payment from the U.S. Legal Tender and U.S.
Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE NINE

 

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

 

SECTION 9.01.                                              Without
Consent of Holders.

 

(a)           The Issuer, the Subsidiary Guarantors
and the Trustee, together, may amend or supplement this Indenture, the Notes or
the Subsidiary Guarantees without notice to or consent of any Holder:

 

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

 

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

 

69

 

(3)           to provide for the assumption of the
Issuer’s or a Subsidiary Guarantor’s obligations to the Holders of the Notes in
the case of a merger, consolidation or sale of all or substantially all of the
assets, in accordance with Article Five;

 

(4)           to release any Subsidiary Guarantor
from any of its obligations under its Subsidiary Guarantee or this Indenture
(to the extent permitted by this Indenture);

 

(5)           to make any change that would not
materially adversely affect the rights of any Holder; or

 

(6)           to comply with requirements of the
SEC in order to effect or maintain the qualification of this Indenture under
the Trust Indenture Act;

 

provided, however, that the Issuer has
delivered to the Trustee an Opinion of Counsel and an Officers’ Certificate,
each stating that such amendment or supplement complies with the provisions of
this Section 9.01.

 

SECTION 9.02.                                              With
Consent of Holders.

 

(a)           Subject to Section 6.07, the
Issuer, the Subsidiary Guarantors and the Trustee, together, with the written
consent of the Holder or Holders of a majority in aggregate principal amount of
the outstanding Notes may amend or supplement this Indenture, the Notes or the
Subsidiary Guarantees, without notice to any other Holders.  Subject to Sections 6.07, the Holder or
Holders of a majority in aggregate principal amount of the outstanding Notes
may waive compliance with any provision of this Indenture, the Notes or the
Subsidiary Guarantees without notice to any other Holders.

 

(b)           Notwithstanding Section 9.02(a),
without the consent of each Holder affected, no amendment or waiver may:

 

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

 

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

 

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

 

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

 

(5)           reduce the above-stated percentages
of outstanding Notes the consent of whose Holders is necessary to modify or
amend this Indenture;

 

(6)           waive a default in the payment of
principal of, premium, if any, or interest on the Notes;

 

70

 

(7)           voluntarily release a Subsidiary
Guarantor of the Notes, except as permitted by this Indenture; or

 

(8)           reduce the percentage or aggregate
principal amount of outstanding Notes the consent of whose Holders is necessary
for waiver of compliance with Sections 6.02 and 6.04.

 

(c)           It shall not be necessary for the
consent of the Holders under this Section to approve the particular form
of any proposed amendment, supplement or waiver but it shall be sufficient if
such consent approves the substance thereof.

 

(d)           A consent to any amendment,
supplement or waiver under this Indenture by any Holder given in connection
with an exchange (in the case of an exchange offer) or a tender (in the case of
a tender offer) of such Holder’s Notes will not be rendered invalid by such
tender or exchange.

 

(e)           After an amendment, supplement or
waiver under this Section 9.02 becomes effective, the Issuer shall mail to
the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver.  Any failure of
the Issuer to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such amendment, supplement or waiver.

 

SECTION 9.03.                                              Compliance
with the Trust Indenture Act.

 

From the date on which
this Indenture is qualified under the Trust Indenture Act, every amendment,
waiver or supplement of this Indenture, the Notes or the Subsidiary Guarantees
shall comply with the Trust Indenture Act as then in effect.

 

SECTION 9.04.                                              Revocation
and Effect of Consents.

 

Until an amendment,
waiver or supplement becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note,
even if notation of the consent is not made on any Note.  However, any such Holder or subsequent
Holder may revoke the consent as to his Note or portion of his Note by notice
to the Trustee or the Issuer received before the date on which the Trustee
receives an Officers’ Certificate certifying that the Holders of the requisite
principal amount of Notes have consented (and not theretofore revoked such
consent) to the amendment, supplement or waiver.

 

The Issuer may, but shall
not be obligated to, fix a record date for the purpose of determining the
Holders entitled to consent to any amendment, supplement or waiver, which
record date shall be at least 30 days prior to the first solicitation of such
consent.  If a record date is fixed,
then notwithstanding the last sentence of the immediately preceding paragraph,
those Persons who were Holders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to revoke any consent
previously given, whether or not such Persons continue to be Holders after such
record date.  No such consent shall be
valid or effective for 

 

71

 

more
than 90 days after such record date. 
The Issuer shall inform the Trustee in writing of the fixed record date
if applicable.

 

After an amendment,
supplement or waiver becomes effective, it shall bind every Holder, unless it
makes a change described in any of clauses (1) through (8) of
Section 9.02(b), in which case, the amendment, supplement or waiver shall
bind only each Holder of a Note who has consented to it and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder’s Note; provided, however, that any such
waiver shall not impair or affect the right of any Holder to receive payment of
principal of, and interest on, a Note, on or after the respective due dates
therefor, or to bring suit for the enforcement of any such payment on or after
such respective dates without the consent of such Holder.

 

SECTION 9.05.                                              Notation
on or Exchange of Notes.

 

If an amendment,
supplement or waiver changes the terms of a Note, the Issuer may require the
Holder of the Note to deliver it to the Trustee.  The Issuer shall provide the Trustee with an appropriate notation
on the Note about the changed terms and cause the Trustee to return it to the
Holder at the Issuer’s expense. 
Alternatively, if the Issuer or the Trustee so determines, the Issuer in
exchange for the Note shall issue, and the Trustee shall authenticate, a new
Note that reflects the changed terms. 
Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

 

SECTION 9.06.                                              Trustee
To Sign Amendments, Etc.

 

The Trustee shall execute
any amendment, supplement or waiver authorized pursuant to this
Article Nine; provided, however, that the Trustee
may, but shall not be obligated to, execute any such amendment, supplement or
waiver which affects the Trustee’s own rights, duties or immunities under this
Indenture.  The Trustee shall be entitled
to receive, and shall be fully protected in relying upon, an Opinion of Counsel
and an Officers’ Certificate each stating that the execution of any amendment,
supplement or waiver authorized pursuant to this Article Nine is
authorized or permitted by this Indenture and constitutes legal, valid and
binding obligations of the Issuer enforceable in accordance with its
terms.  Such Opinion of Counsel shall be
at the expense of the Issuer.

 

ARTICLE TEN

 

SUBSIDIARY GUARANTEE

 

SECTION 10.01.                                        Guarantee.

 

Subject to this
Article 10, each of the Subsidiary Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Note authenticated
and delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes or
the obligations of the Issuer hereunder or thereunder, that:  (a) the principal of and interest on the
Notes will be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the overdue principal of
and interest on the Notes, if any, if lawful, and all other obligations of the
Issuer to the

 

72

 

Holders
or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise. 
Failing payment when due of any amount so guaranteed or any performance
so guaranteed for whatever reason, the Subsidiary Guarantors shall be jointly
and severally obligated to pay the same immediately.  Each Subsidiary Guarantor agrees that this is a guarantee of
payment and not a guarantee of collection.

 

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

 

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

 

Each Subsidiary Guarantor
agrees that it shall not be entitled to any right of subrogation in relation to
the Holders in respect of any obligations guaranteed hereby until payment in
full of all obligations guaranteed hereby. 
Each Subsidiary Guarantor further agrees that, as between the Subsidiary
Guarantors, on the one hand, and the Holders and the Trustee, on the other
hand, (x) the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article Six hereof for the purposes of this Subsidiary
Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (y) in
the event of any declaration of acceleration of such obligations as provided in
Article Six hereof, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Subsidiary Guarantors for the
purpose of this Subsidiary Guarantee.

 

SECTION 10.02.                                        Limitation
on Subsidiary Guarantor Liability.

 

Each Subsidiary
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Subsidiary Guarantee of such
Subsidiary Guarantor not constitute a fraudulent transfer or conveyance for
purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Subsidiary Guarantee. 
To effectuate the foregoing intention, the Trustee, the Holders and the
Subsidiary Guarantors hereby irrevocably

 

73

 

agree
that the obligations of such Subsidiary Guarantor will, after giving effect to
such maximum amount and all other contingent and fixed liabilities of such
Subsidiary Guarantor that are relevant under such laws, and after giving effect
to any collections from, rights to receive contribution from or payments made
by or on behalf of any other Subsidiary Guarantor in respect of the obligations
of such other Subsidiary Guarantor under this Article Ten, result in the
obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not
constituting a fraudulent transfer or conveyance.  Each Subsidiary Guarantor that makes a payment for distribution under
its Subsidiary Guarantee is entitled to a contribution from each other
Subsidiary Guarantor in a pro rata amount based on the adjusted net
assets of each Subsidiary Guarantor.

 

SECTION 10.03.                                        Execution
and Delivery of Subsidiary Guarantee.

 

To evidence its
Subsidiary Guarantee set forth in Section 10.01, each Subsidiary Guarantor
hereby agrees that a notation of such Subsidiary Guarantee substantially in the
form included in Exhibit E shall be endorsed by an Officer of such
Subsidiary Guarantor on each Note authenticated and delivered by the Trustee
and that this Indenture shall be executed on behalf of such Subsidiary
Guarantor by an Officer.

 

Each Subsidiary Guarantor
hereby agrees that its Subsidiary Guarantee set forth in Section 10.01
shall remain in full force and effect notwithstanding any failure to endorse on
each Note a notation of such Subsidiary Guarantee.

 

If an Officer whose
signature is on this Indenture or on the Subsidiary Guarantee no longer holds
that office at the time the Trustee authenticates the Note on which a
Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid
nevertheless.

 

The delivery of any Note
by the Trustee, after the authentication thereof hereunder, shall constitute
due delivery of the Subsidiary Guarantee set forth in this Indenture on behalf
of the Subsidiary Guarantors.

 

SECTION 10.04.                                        Release of a
Subsidiary Guarantor.

 

A Subsidiary Guarantor
shall be released from its obligations under its Note Guarantee and its
obligations under this Indenture and the Registration Rights Agreement in the
event of:

 

(1)           any sale, exchange or transfer, to
any Person not an Affiliate of the Issuer of all of Capital Stock held by the
Issuer and its Restricted Subsidiaries in, or all or substantially all the
assets of, such Subsidiary Guarantor (which sale, exchange or transfer is not
prohibited by this Indenture);

 

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

 

(3)           the designation of such Subsidiary
Guarantor as an Unrestricted Subsidiary in accordance with the provisions of
this Indenture.

 

74

 

The Trustee shall execute
an appropriate instrument prepared by the Issuer evidencing the release of a
Subsidiary Guarantor from its obligations under its Subsidiary Guarantee and
this Indenture upon receipt of a request by the Issuer or such Subsidiary
Guarantor accompanied by an Officers’ Certificate and an Opinion of Counsel
certifying as to the compliance with this Section 10.04; provided,
however, that the legal counsel delivering such Opinion of Counsel
may rely as to matters of fact on one or more Officers’ Certificates of the
Issuer.

 

Nothing contained in this
Indenture or in any of the Notes shall prevent any consolidation or merger of a
Subsidiary Guarantor with or into the Issuer (in which case such Subsidiary
Guarantor shall no longer be a Subsidiary Guarantor) or another Subsidiary
Guarantor or shall prevent any sale or conveyance of the property of a
Subsidiary Guarantor as an entirety or substantially as an entirety to the
Issuer or another Subsidiary Guarantor.

 

ARTICLE ELEVEN

 

MISCELLANEOUS

 

SECTION 11.01.                                        Trust
Indenture Act Controls.

 

If any provision of this
Indenture limits, qualifies, or conflicts with another provision which is
required or deemed to be included in this Indenture by the Trust Indenture Act,
such required or deemed provision shall control.

 

SECTION 11.02.                                        Notices.

 

Any notices or other
communications required or permitted hereunder shall be in writing, and shall
be sufficiently given if made by hand delivery, by telex, by nationally
recognized overnight courier service, by telecopier or registered or certified
mail, postage prepaid, return receipt requested, addressed as follows:

 

if to the Issuer or a
Subsidiary Guarantor:

 

c/o Omega Healthcare Investors, Inc.

9690 Deereco Road, Suite 100

Timonium, Maryland  21093

Attention:  Robert O. Stephenson

 

Telephone:      (410) 427-1700

Facsimile:        (410) 427-8800

 

with a copy to:

 

Powell,
Goldstein, Frazer & Murphy LLP

Sixteenth Floor 

191 Peachtree Street NE 

Atlanta, GA 30303

Attention:  Richard Miller

 

75

 

Telephone:      (404) 572-6600

Facsimile:        (404) 572-6999

 

if to the Trustee:

 

1360 Peachtree Street, N.E.

Suite 1105

Atlanta, Georgia 30309

Attention:  Corporate Trust
Department

Telephone:      (404) 965-7222

Facsimile:        (404) 365-7946

 

Each of the Issuer and
the Trustee by written notice to each other such Person may designate
additional or different addresses for notices to such Person.  Any notice or communication to the Issuer
and the Trustee, shall be deemed to have been given or made as of the date so
delivered if personally delivered; when replied to; when receipt is
acknowledged, if telecopied; five (5) calendar days after mailing if sent by
registered or certified mail, postage prepaid (except that a notice of change
of address shall not be deemed to have been given until actually received by
the addressee); and next Business Day if by nationally recognized overnight
courier service.

 

Any notice or
communication mailed to a Holder shall be mailed to him by first class mail or
other equivalent means at his address as it appears on the registration books
of the Registrar and shall be sufficiently given to him if so mailed within the
time prescribed.

 

Failure to mail a notice
or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. 
If a notice or communication is mailed in the manner provided above, it
is duly given, whether or not the addressee receives it.

 

SECTION 11.03.                                        Communications
by Holders with Other Holders.

 

Holders may communicate
pursuant to Trust Indenture Act § 312(b) with other Holders with respect
to their rights under this Indenture, the Notes or the Subsidiary
Guarantees.  The Issuer, the Trustee,
the Registrar and any other Person shall have the protection of Trust Indenture
Act § 312(c).

 

SECTION 11.04.                                        Certificate
and Opinion as to Conditions Precedent.

 

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

 

(1)           an Officers’ Certificate, in form and
substance satisfactory to the Trustee, stating that, in the opinion of the
signers, all conditions precedent to be performed or effected by the Issuer, if
any, provided for in this Indenture relating to the proposed action have been
complied with; and

 

76

 

(2)           an Opinion of Counsel stating that,
in the opinion of such counsel, all such conditions precedent have been
complied with.

 

SECTION 11.05.                                        Statements
Required in Certificate or Opinion.

 

Each certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture, other than the Officers’ Certificate required by
Section 4.06, shall include:

 

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

 

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

 

(3)           a statement that, in the opinion of
such Person, he 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 or satisfied; and

 

(4)           a statement as to whether or not, in
the opinion of each such Person, such condition or covenant has been complied
with; provided,
however, that with respect to matters of fact, an Opinion of Counsel
may rely on an Officers’ Certificate or certificates of public officials.

 

SECTION 11.06.                                        Rules by
Paying Agent or Registrar.

 

The Paying Agent or
Registrar may make reasonable rules and set reasonable requirements for their
functions.

 

SECTION 11.07.                                        Legal
Holidays.

 

If a payment date is not
a Business Day, payment may be made on the next succeeding day that is a
Business Day.

 

SECTION 11.08.                                        Governing
Law.

 

This Indenture, the Notes and the Subsidiary Guarantees will
be governed by and construed in accordance with the laws of the State of New
York.

 

SECTION 11.09.                                        No Adverse
Interpretation of Other Agreements.

 

This Indenture may not be
used to interpret another indenture, loan or debt agreement of any of the
Issuer or any of its Subsidiaries.  Any
such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

77

 

SECTION 11.10.                                        No Recourse
Against Others.

 

No director, officer,
employee, incorporator, stockholder, member or manager of the Issuer or any
Subsidiary Guarantor shall have any liability for any obligations of the Issuer
under the Notes or this Indenture or of any Subsidiary Guarantor under its
Subsidiary Guarantee or the Indenture or for any claim based on, in respect of,
or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note waives and releases all
such liability.  Such waiver and release
are part of the consideration for issuance of the Notes.

 

SECTION 11.11.                                        Successors.

 

All agreements of the
Issuer and the Subsidiary Guarantors in this Indenture, the Notes and the Note
Guarantees shall bind their respective successors.  All agreements of the Trustee in this Indenture shall bind its
successor.

 

SECTION 11.12.                                        Duplicate
Originals.

 

All parties may sign any
number of copies of this Indenture. 
Each signed copy or counterpart shall be an original, but all of them
together shall represent the same agreement.

 

SECTION 11.13.                                        Severability.

 

To the extent permitted
by applicable law, in case any one or more of the provisions in this Indenture,
in the Notes or in the Subsidiary Guarantees shall be held invalid, illegal or
unenforceable, in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it
being intended that all of the provisions hereof shall be enforceable to the
full extent permitted by law.

 

78

 

SIGNATURES

 

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

 

	
   

  	
  OMEGA HEALTHCARE INVESTORS, INC.,

  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  C. Taylor Pickett

  
	
   

  	
   

  	
  Name:
  C. Taylor Pickett

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BAYSIDE ALABAMA HEALTHCARE SECOND, INC.

  BAYSIDE ARIZONA HEALTHCARE ASSOCIATES, INC.

  BAYSIDE ARIZONA HEALTHCARE SECOND, INC.

  BAYSIDE COLORADO HEALTHCARE ASSOCIATES, INC.

  BAYSIDE COLORADO HEALTHCARE SECOND, INC.

  OHI (CONNECTICUT), INC.

  BAYSIDE STREET II, INC.

  OHI ASSET (CA), LLC

  OHI ASSET (FL) TARPON SPRINGS, PINELLAS PARK &
  GAINESVILLE, LLC

  OHI ASSET (FL), LLC

  OHI ASSET (ID), LLC

  OHI ASSET (IN), LLC

  OHI ASSET (LA), LLC

  as Subsidiary Guarantors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  C. Taylor Pickett

  
	
   

  	
   

  	
  Name:
  C. Taylor Pickett

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer

  

 

S-1

 

	
   

  	
  OHI ASSET (MI/NC), LLC

  OHI ASSET (MO), LLC

  OHI ASSET (OH), LLC

  OHI ASSET (TX), LLC

  OHI ASSET II (CA), LLC

  OHI ASSET, LLC

  OMEGA ACQUISITION FACILITY I, LLC

  OHI (FLORIDA), INC.

  OHI SUNSHINE, INC.

  LONG TERM CARE ASSOCIATES – ILLINOIS, INC.

  OHI (ILLINOIS), INC.

  SKILLED NURSING - HERRIN, INC.

  SKILLED NURSING - PARIS, INC.

  BAYSIDE INDIANA HEALTHCARE ASSOCIATES, INC.

  LONG TERM CARE ASSOCIATES – INDIANA, INC.

  OHI (INDIANA), INC.

  SKILLED NURSING - GASTON, INC.

  OHI (IOWA), INC.

  OHI (KANSAS), INC.

  OMEGA (KANSAS), INC.

  NRS VENTURES, LLC

  OS LEASING COMPANY

  STERLING ACQUISITION CORP.

  STERLING ACQUISITION CORP. II

  ARIZONA LESSOR -
  INFINIA, INC.

  BAYSIDE STREET, INC.

  COLORADO LESSOR - CONIFER, INC.

  DELTA INVESTORS I, LLC

  DELTA INVESTORS II, LLC

  FLORIDA LESSOR - CRYSTAL SPRINGS, INC. 

  as Subsidiary Guarantors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  C. Taylor Pickett

  
	
   

  	
   

  	
  Name:
  C. Taylor Pickett

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer

  

 

S-2

 

	
   

  	
  FLORIDA
  LESSOR - EMERALD, INC.

  FLORIDA LESSOR - FIVE FACILITIES, INC.

  FLORIDA LESSOR - LAKELAND, INC.

  FLORIDA LESSOR - MEADOWVIEW, INC.

  FLORIDA LESSOR - WEST PALM BEACH AND SOUTHPOINT,
  INC.

  GEORGIA LESSOR - BONTERRA/PARKVIEW, INC.

  INDIANA LESSOR - JEFFERSONVILLE, INC.

  INDIANA LESSOR - WELLINGTON MANOR, INC.

  JEFFERSON CLARK, INC.

  OHI LESSOR WATERFORD & CRESTWOOD, INC.

  OHI OF KENTUCKY, INC.

  OHI OF TEXAS, INC.

  OMEGA TRS I, INC.

  TEXAS LESSOR - STONEGATE GP, INC.

  TEXAS LESSOR - STONEGATE LIMITED, INC.

  TEXAS LESSOR - STONEGATE, L.P.

  TEXAS LESSOR - TREEMONT, INC.

  WASHINGTON LESSOR - SILVERDALE, INC.

  OHIMA, INC.

  LONG TERM CARE – MICHIGAN, INC.

  LONG TERM CARE – NORTH CAROLINA, INC.

  OHI (CLEMMONS), INC.

  OHI (GREENSBORO), INC.

  SKILLED NURSING - HICKSVILLE, INC.

  CENTER HEALTHCARE ASSOCIATES, INC.

  CHERRY STREET - SKILLED NURSING, INC. 

  as Subsidiary Guarantors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  C. Taylor Pickett

  
	
   

  	
   

  	
  Name:
  C. Taylor Pickett

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer

  

 

S-3

 

	
   

  	
  DALLAS
  SKILLED NURSING, INC.

  HERITAGE TEXARKANA HEALTHCARE ASSOCIATES, INC.

  LAKE PARK SKILLED NURSING, INC.

  LONG TERM CARE ASSOCIATES - TEXAS, INC.

  PARKVIEW - SKILLED NURSING, INC.

  PINE TEXARKANA HEALTHCARE ASSOCIATES, INC.

  REUNION TEXARKANA HEALTHCARE ASSOCIATES, INC.

  SAN AUGUSTINE HEALTHCARE ASSOCIATES, INC.

  SOUTH ATHENS HEALTHCARE ASSOCIATES, INC.

  WAXAHACHIE HEALTHCARE ASSOCIATES, INC.

  WEST ATHENS HEALTHCARE ASSOCIATES, INC.

  CARE HOLDINGS, INC.

  as Subsidiary Guarantors

   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  C. Taylor Pickett

  
	
   

  	
   

  	
  Name:
  C. Taylor Pickett

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer

  

 

S-4

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Teresa
  L. Davis

  
	
   

  	
   

  	
  Name:
  Teresa L. Davis

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

S-5

 

EXHIBIT A

 

[Insert the Global Note Legend, if applicable pursuant to
the provisions of the Indenture]

 

[Insert the Private Placement Legend, if applicable pursuant
to the provisions of the Indenture]

 

OMEGA HEALTHCARE INVESTORS, INC.

7% Senior due Notes 2014

 

 

	
   

  	
  CUSIP No.

  	
   

  
	
  No. 
  [        ]

  	
   

  	
  $

  	
  [            ]

  	
   

  
					

 

OMEGA HEALTHCARE
INVESTORS, INC., a Maryland corporation (the “Issuer”), for value received
promise to pay
[               ]
to or its registered assigns, the principal sum of
[                         ]
[or such other amount as is provided in a schedule attached hereto](a) on
April 1, 2014.

 

Interest Payment
Dates:  October 1 and April 1,
commencing October 1, 2004.

 

Record Dates:  September 15 and March 15.

 

Reference is made to the
further provisions of this Note contained herein, which will for all purposes
have the same effect as if set forth at this place.

 

(a)           This language should be included only
if the Note is issued in global form.

 

A-1

 

IN WITNESS WHEREOF, the
Issuer has caused this Note to be signed manually or by facsimile by its duly
authorized officer.

 

Dated: 
[                        ]

 

	
   

  	
  OMEGA HEALTHCARE
  INVESTORS, INC., as

  Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2

 

[FORM OF] TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the 7%
Senior Notes due 2014 described in the within-mentioned Indenture.

 

Dated:

 

	
   

  	
  U.S. Bank National
  Association,

  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  

 

A-3

 

(Reverse
of Note)

 

7%
Senior Notes due 2014

 

Capitalized terms used
herein shall have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

 

SECTION 1.  Interest.  Omega Healthcare Investors, Inc., a Maryland corporation (the “Issuer”)
promises to pay interest on the principal amount of this Note at 7% per annum
from March 22, 2004 until maturity. 
The Issuer will pay interest semi-annually on October 1 and
April 1 of each year, or if any such day is not a Business Day, on the
next succeeding Business Day (each an “Interest Payment Date”), commencing
October 1, 2004.  Interest on the
Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from the date of original issuance.  The Issuer shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand to the extent lawful
at the interest rate applicable to the Notes; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace periods) from
time to time on demand at the same rate to the extent lawful.  Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

SECTION 2.  Method of Payment.  The Issuer will pay interest on the Notes to
the Persons who are registered Holders of Notes at the close of business on the
September 15 or March 15 next preceding the Interest Payment Date,
even if such Notes are canceled after such record date and on or before such
Interest Payment Date, except as provided in Section 2.12 of the Indenture
with respect to defaulted interest.  The
Notes will be issued in denominations of $1,000 and integral multiples
thereof.  The Issuer shall pay
principal, premium, if any, and interest on the Notes in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts (“U.S. Legal Tender”).  Principal, premium, if any, and interest on
the Notes will be payable at the office or agency of the Issuer maintained for
such purpose except that, at the option of the Issuer, the payment of interest
may be made by check mailed to the Holders of the Notes at their respective
addresses set forth in the register of Holders of Notes.  Until otherwise designated by the Issuer,
the Issuer’s office or agency in New York will be the office of the Trustee
maintained for such purpose.

 

SECTION 3.  Paying Agent and Registrar.  Initially, U.S. Bank National Association,
the Trustee under the Indenture, will act as Paying Agent and Registrar.  The Issuer may change any Paying Agent or
Registrar without notice to any Holder. 
Except as provided in the Indenture, the Issuer or any of their Subsidiaries
may act in any such capacity.

 

SECTION 4.  Indenture.  The Issuer issued the Notes under an Indenture dated as of
March 22, 2004 (“Indenture”) by and among the Issuer, the
Subsidiary Guarantors and the Trustee. 
The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (15 U.S. Code §§ 77aaa-77bbbb)

 

A-4

 

(the “Trust
Indenture Act”).  The Notes
are subject to all such terms, and Holders are referred to the Indenture and
the Trust Indenture Act for a statement of such terms.

 

SECTION 5.  Optional Redemption.  Except as set forth in Section 6
hereof, the Notes will not be redeemable at the Issuer’s option prior to
April 1, 2009.  The Notes will be redeemable
at the option of the Issuer, in whole or in part, at any time, and from time to
time, on and after April 1, 2009, upon not less than 30 days’ nor
more than 60 days’ notice, at the following redemption prices (expressed
as percentages of the principal amount thereof) if redeemed during the 12-month
period commencing April 1 of the years indicated below, in each case together
with accrued and unpaid interest thereon to the redemption date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  103.500

  	
  %

  
	
  2010

  	
   

  	
  102.333

  	
  %

  
	
  2011

  	
   

  	
  101.167

  	
  %

  
	
  2012 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

SECTION 6.  Optional Redemption With Proceeds From
Equity Offerings.  At any time, or
from time to time, on or prior to April 1, 2007, the Issuer may, at its
option, use the Net Cash Proceeds of one or more Equity Offerings to redeem up
to 35% of the principal amount of the Notes issued under the Indenture at a
redemption price of 107% of the principal amount thereof plus accrued and
unpaid interest thereon, if any, to the date of redemption; provided,
however,
that:

 

(1)           at least 65% of the
principal amount of Notes issued under the Indenture remains outstanding immediately
after such redemption; and

 

(2)           the Issuer makes
such redemption not more than 90 days after the consummation of any such Equity
Offering.

 

SECTION 7.  Notice of Redemption.  Notice of redemption will be mailed by first
class mail at least 30 days but not more than 60 days before the redemption
date to each Holder of Notes to be redeemed at its registered address.  Notes in denominations larger than $1,000
may be redeemed in part.  If any Note is
to be redeemed in part only, the notice of redemption that relates to such Note
shall state the portion of the principal amount thereof to be redeemed.  A new Note in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Note. 
On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

 

SECTION 8.  Mandatory Redemption.  For the avoidance of doubt, an
offer to purchase pursuant to Section 9 hereof shall not be deemed a
redemption.  The Issuer shall not be
required to make mandatory redemption payments with respect to the Notes.

 

SECTION 9.  Repurchase at Option of Holder.  Upon the occurrence of a Change
of Control, and subject to certain conditions set forth in the Indenture, the
Issuer will be required to offer to purchase all of the outstanding Notes at a
purchase price equal to 101% of the

 

A-5

 

principal amount thereof,
plus accrued and unpaid interest, if any, thereon to the date of repurchase.

 

The Issuer is, subject to
certain conditions and exceptions, obligated to make an offer to purchase Notes
at 100% of their principal amount, plus accrued and unpaid interest, if any,
thereon to the date of repurchase, with certain net cash proceeds of certain
sales or other dispositions of assets in accordance with the Indenture.

 

SECTION 10.  Denominations, Transfer, Exchange.  The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000.  The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Issuer may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture.  The Issuer
and the Registrar are not required to transfer or exchange any Note selected
for redemption.  Also, the Issuer and
the Registrar are not required to transfer or exchange any Notes for a period
of 15 days before a selection of Notes to be redeemed.

 

SECTION 11.  Persons Deemed Owners.  The registered Holder of a Note may be
treated as its owner for all purposes.

 

SECTION 12.  Amendment, Supplement and Waiver.  Subject to certain exceptions, the Indenture
and the Notes may be amended or supplemented with the written consent of the
Holders of at least a majority in aggregate principal amount of the Notes then
outstanding, and any existing Default or compliance with any provision may be
waived with the consent of the Holders of a majority in aggregate principal
amount of the Notes then outstanding. 
Without notice to or consent of any Holder, the parties thereto may
amend or supplement the Indenture and the Notes to, among other things, cure
any ambiguity, defect or inconsistency in the Indenture, provide for
uncertificated Notes in addition to certificated Notes, comply with any requirements
of the SEC in connection with the qualification of the Indenture under the
Trust Indenture Act, or make any change that does not materially adversely affect
the rights of any Holder of a Note.

 

SECTION 13.  Defaults and Remedies.  If a Default occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes generally may declare all the Notes to be due and payable
immediately.  Notwithstanding the foregoing,
in the case of a Default arising from certain events of bankruptcy or
insolvency as set forth in the Indenture, with respect to the Issuer, all outstanding
Notes will become due and payable without further action or notice.  Holders of the Notes may not enforce the
Indenture or the Notes except as provided in the Indenture.  Subject to certain limitations, Holders of a
majority in principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. 
The Trustee may withhold from Holders of the Notes notice of any
continuing Default if it determines that withholding notice is in their
interest.  The Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing
Default and its consequences under the Indenture except a continuing Default in
the payment of interest on, or the principal of, or the premium on, the Notes.

 

A-6

 

SECTION 14.  Restrictive Covenants.  The Indenture contains certain covenants
that, among other things, limit the ability of the Issuer and its Restricted
Subsidiaries to make restricted payments, to incur indebtedness, to create
liens, to sell assets, to permit restrictions on dividends and other payments
by Restricted Subsidiaries of the Issuer, to consolidate, merge or sell all or
substantially all of its assets or to engage in transactions with affiliates.  The limitations are subject to a number of
important qualifications and exceptions. 
The Issuer must annually report to the Trustee on compliance with such
limitations and other provisions in the Indenture.

 

SECTION 15.  No Recourse Against Others.  No director, officer, employee, incorporator,
stockholder, member or manager of the Issuer or any Subsidiary Guarantor shall
have any liability for any obligations of the Issuer under the Notes or the
Indenture, or of any Subsidiary Guarantor under its Subsidiary Guarantee or the
Indenture or for any claim based on, in respect of, or by reason of, such obligations
or their creation.  Each Holder of Notes
by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes.

 

SECTION 16.  Subsidiary Guarantees.  This Note will be entitled to the benefits
of certain Subsidiary Guarantees made for the benefit of the Holders.  Reference is hereby made to the Indenture
for a statement of the respective rights, limitations of rights, duties and
obligations thereunder of the Subsidiary Guarantors, the Trustee and the
Holders.

 

SECTION 17.  Trustee Dealings with the Issuer.  Subject to certain terms, the Trustee under
the Indenture, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with the Issuer, their Subsidiaries or
their respective Affiliates as if it were not the Trustee.

 

SECTION 18.  Authentication.  This Note shall not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.

 

SECTION 19.  Abbreviations.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT
TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

SECTION 20.  Additional Rights of Holders of
Restricted Global Notes and Restricted Definitive Notes.  Pursuant to, but subject to the exceptions
in, the Registration Rights Agreement, the Issuer and the Subsidiary Guarantors
will be obligated to consummate an exchange offer pursuant to which the Holder
of this Note shall have the right to exchange this Note for a  7% Senior Note due 2014 of the Issuer which
shall have been registered under the Securities Act, in like principal amount
and having terms identical in all material respects to this Note (except that
such Note shall not be entitled to Additional Interest and shall not contain
terms with respect to transfer restrictions). 
The Holders shall be entitled to receive certain Additional Interest in
the event such exchange offer is not consummated or the Notes are not

 

A-7

 

offered for resale and
upon certain other conditions, all pursuant to and in accordance with the terms
of the Registration Rights Agreement.(a)

(a)           This Section not to appear on Exchange Notes or
Private Exchange Notes or Additional Notes unless required by the terms of such
Additional Notes.

 

SECTION 21.  CUSIP and ISIN Numbers.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Issuer has
caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may
use CUSIP or ISIN numbers in notices of redemption as a convenience to
Holders.  No representation is made as
to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

SECTION 22.  Governing Law.  This Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

 

The Issuer will furnish
to any Holder upon written request and without charge a copy of the Indenture.

 

A-8

 

ASSIGNMENT FORM

 

	
  I
  or we assign and transfer this Note to

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print
  or type name, address and zip code of assignee or transferee)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Insert
  Social Security or other identifying number of assignee or transferee)

  	
   

  
	
   

  	
   

  
	
  and
  irrevocably appoint
                                                                                   
  agent to transfer this Note on the books of the Issuer.  The

  
	
  agent
  may substitute another to act for him.

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign
  exactly as name appears on

  the other side of this Note)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
  Participant
  in a recognized Signature Guarantee

  Medallion Program (or other signature guarantor

  program reasonably acceptable to the Trustee)

  
								

 

In connection with any
transfer of this Note occurring prior to the date which is the date following
the second anniversary of the original issuance of this Note, the undersigned
confirms that it has not utilized any general solicitation or general advertising
in connection with the transfer and is making the transfer pursuant to one of
the following:

 

[Check One]

 

	
  (1)

  	
  o

  	
  to the Issuer or a
  subsidiary thereof; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  o

  	
  to a person who the
  transferor reasonably believes is a “qualified institutional buyer” pursuant
  to and in compliance with Rule 144A under the Securities Act of 1933, as
  amended (the “Securities Act”); or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

  	
  to an institutional
  “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under
  the Securities Act) that has furnished to the Trustee a signed letter
  containing certain representations and agreements (the form of which letter
  can be obtained from the Trustee); or

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  o

  	
  outside the United
  States to a non-”U.S. person” as defined in Rule 902 of
  Regulation S under the Securities Act in compliance with Rule 904
  of Regulation S under the Securities Act; or

  

 

A-9

 

	
  (5)

  	
  o

  	
  pursuant to the
  exemption from registration provided by Rule 144 under the Securities
  Act; or

  
	
   

  	
   

  	
   

  
	
  (6)

  	
  o

  	
  pursuant to an
  effective registration statement under the Securities Act.

  
	
   

  	
   

  	
   

  
	
  and unless the box
  below is checked, the undersigned confirms that such Note is not being transferred
  to an “affiliate” of the Issuer as defined in Rule 144 under the Securities
  Act (an “Affiliate”):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o          The transferee is an Affiliate of
  the Issuer.

  

 

Unless one of the
foregoing items (1) through (6) is checked, the Trustee will refuse to register
any of the Notes evidenced by this certificate in the name of any person other
than the registered Holder thereof; provided, however, that if item (3), (4)
or (5) is checked, the Issuer or the Trustee may require, prior to registering
any such transfer of the Notes, in their sole discretion, such written legal
opinions, certifications (including an investment letter in the case of box (3)
or (4)) and other information as the Trustee or the Issuer has reasonably
requested to confirm that such transfer is being made pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the
Securities Act.

 

If none of the foregoing
items (1) through (6) are checked, the Trustee or Registrar shall not be
obligated to register this Note in the name of any person other than the Holder
hereof unless and until the conditions to any such transfer of registration set
forth herein and in Section 2.16 of the Indenture shall have been satisfied.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as name appears on the other

  side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant
  in a recognized Signature Guarantee

  Medallion Program (or other signature guarantor

  program reasonably acceptable to the Trustee)

  
						

 

A-10

 

TO BE COMPLETED BY
PURCHASER IF (2) ABOVE IS CHECKED

 

The undersigned
represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and
that it and any such account is a “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act and is aware that the sale
to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Issuer as the undersigned has requested
pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigned’s
foregoing representations in order to claim the exemption from registration
provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:

  	
  To
  be executed by an executive

  officer

  

 

A-11

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to
have this Note purchased by the Issuer pursuant to Section 4.07 or
Section 4.11 of the Indenture, check the appropriate box:

 

	
  Section 4.07  o

  	
   

  	
  Section 4.11  o

  

 

If you want to elect to
have only part of this Note purchased by the Issuer pursuant to
Section 4.07 or Section 4.11 of the Indenture, state the amount (in
denominations of $1,000 and integral multiples thereof): 
$                      

 

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign
  exactly as name appears on the other

  side of this Note)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Participant
  in a recognized Signature

  Guarantee Medallion Program (or other

  signature guarantor program reasonably

  acceptable to the Trustee)

  

 

A-12

 

SCHEDULE OF
EXCHANGES OF INTERESTS IN THE GLOBAL NOTE(a)

 

The following exchanges
of a part of this Global Note for an interest in another Global Note or for a
Physical Note, or exchanges of a part of another Global Note or Physical Note
for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of
  decrease in

  Principal Amount of

  this Global Note

  	
   

  	
  Amount of
  increase in

  Principal Amount of

  this Global Note

  	
   

  	
  Principal
  Amount of

  this Global Note

  following such decrease

  (or increase)

  	
   

  	
  Signature
  of

  authorized officer of

  Trustee or Note

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

(a)           This schedule should be included
only if the Note is issued in global form.

 

A-13

 

EXHIBIT B

 

FORM OF LEGENDS

 

Each Global Note and
Physical Note that constitutes a Restricted Security shall bear the following
legend (the “Private Placement Legend”) on the face thereof until after the
second anniversary of the Closing Date, unless otherwise agreed by the Issuer
and the Holder thereof or if such legend is no longer required by
Section 2.16(f) of the Indenture:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS EXCEPT AS SET FORTH BELOW.  BY
ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT,
(2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE
OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO
OMEGA HEALTHCARE INVESTORS, INC. 
OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR (AS DEFINED IN
RULE 501(a)(1), (2), (3), OR (7) UNDER THE SECURITIES ACT) (AN “ACCREDITED
INVESTOR”) THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS
BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER
OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR
THIS SECURITY), (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION
IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT (IF AVAILABLE),
(E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER
THE SECURITIES ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN
OPINION OF COUNSEL IF THE COMPANY SO REQUESTS) OR (G) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES
THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. 
IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER
THE ORIGINAL ISSUANCE OF

 

B-1

 

THIS
SECURITY, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER
MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY
REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.  AS
USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S.
PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES
ACT.

 

Each Global Note
authenticated and delivered hereunder shall also bear the following legend:

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY.  THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF
A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER
OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY
A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
SECTION 2.16 OF THE INDENTURE.

 

B-2

 

EXHIBIT C

 

Form of Certificate To Be

Delivered in Connection with

Transfers to Non-QIB Institutional Accredited Investors

 

[                  ],
[     ]

 

U.S.
Bank National Association

1360 Peachtree Street, N.E.

Suite 1105

Atlanta, Georgia 30309

T: 
[                     ]

F: 
[                     ]

Attention:  Corporate Trust Department

 

Ladies and Gentlemen:

 

In connection with our
proposed purchase of 7% Senior Notes due 2014 (the “Notes”) of OMEGA HEALTHCARE
INVESTORS, INC., a Maryland corporation (the “Issuer”), we confirm that:

 

1.             We understand that
any subsequent transfer of the Notes is subject to certain restrictions and
conditions set forth in the Indenture relating to the Notes (the “Indenture”)
and the undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Notes except in compliance with, such restrictions and conditions
and the Securities Act of 1933, as amended (the “Securities Act”), and all
applicable state securities laws.

 

2.             We understand that
the offer and sale of the Notes have not been registered under the Securities
Act, and that the Notes may not be offered, sold, pledged or otherwise
transferred except as permitted in the following sentence.  We agree, on our own behalf and on behalf of
any accounts for which we are acting as hereinafter stated, that if we should
sell, offer, pledge or otherwise transfer any Notes, we will do so only
(A) to the Issuer or any of the Issuer’s Subsidiaries, (B) inside the
United States to a “qualified institutional buyer” (as defined in
Rule 144A under the Securities Act) in a transaction complying with
Rule 144A under the Securities Act, (C) inside the United States to
an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act) (an “Accredited Investor”), that,
prior to such transfer, furnishes (or has furnished on its behalf by a U.S.
broker-dealer) to the Trustee a signed letter containing certain
representations and agreements relating to the restrictions on transfer of the
Notes (the form of which letter can be obtained from such Trustee),
(D) outside the United States in compliance with Rule 904 under the
Securities Act, (E) pursuant to the exemption from registration provided
by Rule 144 under the Securities Act (if available), (F) in
accordance with another exemption from the

 

C-1

 

registration
requirements of the Securities Act (and based upon an opinion of counsel if we
so request) or (G) pursuant to an effective registration statement under
the Securities Act, and we further agree to provide to any person purchasing
any of the Notes from us a notice advising such purchaser that resales of the
Notes are restricted as stated herein.

 

3.             We are not
acquiring the Notes for or on behalf of, and will not transfer the Notes to,
any employee benefit plan subject to Title I of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), any plan, individual retirement accounts
or other arrangements subject to Section 4975 of the Internal Revenue Code
of 1986, as amended (the “Code”), or provisions under any federal,
state, local, or non-U.S. or other laws or regulations that are similar to such
provisions of ERISA of the Code or any entity whose underlying assets are
considered to include “plan assets” of such plans, accounts or arrangements,
except as permitted in the Sections entitled “Notice to investors” and
“Certain ERISA considerations” of the Offering Memorandum of the Issuer relating
to the Notes dated March 15, 2004.

 

4.             We understand that,
on any proposed resale of any Notes, we will be required to furnish to the
Trustee and the Issuer such certification, legal opinions and other information
as the Trustee and the Issuer may reasonably require to confirm that the proposed
sale complies with the foregoing restrictions. 
We further understand that the Notes purchased by us will bear a legend
to the foregoing effect.

 

5.             We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act) and have such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of our investment in the Notes, and we and any accounts
for which we are acting are each able to bear the economic risk of our or their
investment, as the case may be.

 

6.             We are acquiring
the Notes purchased by us for our account or for one or more accounts (each of
which is an institutional “accredited investor”) as to each of which
we exercise sole investment discretion.

 

C-2

 

You, as Trustee, the
Issuer, counsel for the Issuer and others are entitled to rely upon this letter
and are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

 

	
   

  	
  Very
  truly yours,

  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-3

 

EXHIBIT D

 

	
  Form of Certificate To Be Delivered

  in Connection with Transfers

  
	
   

  	
  Pursuant to Regulation S

  	
   

  

 

 

[                ],
[     ]

 

U.S.
Bank National Association

1360 Peachtree Street, N.E.

Suite 1105

Atlanta, Georgia 30309

T: 
[                     ]

F: 
[                     ]

Attention:  Corporate Trust Department

 

	
  Re:

  	
  Omega
  Healthcare Investors, Inc. (the “Issuer”)

  
	
   

  	
  7%
  Senior Notes due 2014 (the “Notes”)

  	
   

  

 

 

Ladies and Gentlemen:

 

In connection with our
proposed sale of $[        ] aggregate
principal amount of the Notes, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the U.S. Securities Act
of 1933, as amended (the “Securities Act”), and, accordingly, we represent
that:

 

(1)           the offer of the
Notes was not made to a person in the United States;

 

(2)           either (a) at the
time the buy offer was originated, the transferee was outside the United States
or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States, or (b) the transaction was executed
in, on or through the facilities of a designated offshore securities market and
neither we nor any person acting on our behalf knows that the transaction has
been prearranged with a buyer in the United States;

 

(3)           no directed selling
efforts have been made in the United States in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

 

(4)           the transaction is
not part of a plan or scheme to evade the registration requirements of the
Securities Act; and

 

(5)           we have advised the
transferee of the transfer restrictions applicable to the Notes.

 

D-1

 

You, as Trustee, the
Issuer, counsel for the Issuer and others are entitled to rely upon this letter
and are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. 
Terms used in this certificate have the meanings set forth in Regulation
S.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name
  of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

D-2

 

EXHIBIT E

 

SUBSIDIARY GUARANTEE

 

For value received, each
of the undersigned (including any successor Person under the Indenture) hereby
unconditionally guarantees, jointly and severally, to the extent set forth in
the Indenture (as defined below) to the Holder of this Note the payment of
principal, premium, if any, and interest on this Note in the amounts and at the
times when due and interest on the overdue principal, premium, if any, and interest,
if any, of this Note when due, if lawful, and, to the extent permitted by law,
the payment or performance of all other obligations of the Issuer under the
Indenture or the Notes, to the Holder of this Note and the Trustee, all in
accordance with and subject to the terms and limitations of this Note, the Indenture,
including Article Ten thereof, and this Subsidiary Guarantee.  This Subsidiary Guarantee will become
effective in accordance with Article Ten of the Indenture and its terms
shall be evidenced therein.  The
validity and enforceability of any Subsidiary Guarantee shall not be affected
by the fact that it is not affixed to any particular Note.

 

Capitalized terms used
but not defined herein shall have the meanings ascribed to them in the
Indenture dated as of March 22, 2004, among Omega Healthcare Investors,
Inc., a Maryland corporation (the “Issuer”), the Subsidiary Guarantors named
therein and U.S. Bank National Association, as trustee (the “Trustee”),
as amended or supplemented (the “Indenture”).

 

The obligations of the
undersigned to the Holders of Notes and to the Trustee pursuant to this
Subsidiary Guarantee and the Indenture are expressly set forth in
Article Ten of the Indenture and reference is hereby made to the Indenture
for the precise terms of the Subsidiary Guarantee and all of the other
provisions of the Indenture to which this Subsidiary Guarantee relates.

 

No director, officer,
employee, incorporator, stockholder, member or manager of any Subsidiary
Guarantor, as such, shall have any liability for any obligations of such
Subsidiary Guarantors under such Subsidiary Guarantors’ Subsidiary Guarantee or
the Indenture or for any claim based on, in respect of, or by reason of, such
obligation or its creation.

 

This Subsidiary Guarantee shall be governed by, and construed
in accordance with, the laws of the State of New York.

 

This Subsidiary Guarantee
is subject to release upon the terms set forth in the Indenture.

 

E-1

 

IN WITNESS WHEREOF, each
Subsidiary Guarantor has caused its Subsidiary Guarantee to be duly executed.

 

Date:

 

	
   

  	
  [                                   ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

E-2Exhibit 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

Dated as of March 22, 2004

 

Among

 

OMEGA HEALTHCARE INVESTORS,
INC.

 

and

 

THE GUARANTORS NAMED HEREIN

 

as Issuers,

 

and

 

DEUTSCHE BANK SECURITIES INC.,

UBS SECURITIES LLC, AND

BANC OF AMERICA SECURITIES LLC

 

as Initial Purchasers

 

7% Senior Notes due 2014

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Exchange
  Offer

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Shelf Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Additional Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Registration Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Registration Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Indemnification and Contribution.

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Rules 144 and 144A

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Underwritten Registrations

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Miscellaneous

  	
   

  

 

i

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”) is dated
as of March 22, 2004, among OMEGA HEALTHCARE INVESTORS, INC., a Maryland
corporation (the “Company”), the subsidiaries of the Company listed on
the signature pages hereto (collectively, and together with any entity that in
the future executes a supplemental indenture pursuant to which such entity
agrees to guarantee the Notes (as hereinafter defined), the “Guarantors,”
and together with the Company, the “Issuers”) and DEUTSCHE BANK SECURITIES
INC., UBS SECURITIES LLC and BANC OF AMERICA SECURITIES LLC as initial
purchasers (the “Initial Purchasers”).

 

This Agreement is entered into in connection with the Purchase
Agreement by and among the Issuers and the Initial Purchasers, dated as of March
15, 2004 (the “Purchase Agreement”), which provides for, among other
things, the sale by the Company to the Initial Purchasers of $200,000,000
aggregate principal amount of the Company’s 7% Senior Notes due 2014 (the “Notes”)
guaranteed on a senior basis by the Guarantors (the “Guarantees”).  In order to induce the Initial Purchasers to
enter into the Purchase Agreement, the Issuers have agreed to provide the
registration rights set forth in this Agreement for the benefit of the Initial
Purchasers and any subsequent holder or holders of the Notes.  The execution and delivery of this Agreement
is a condition to the Initial Purchasers’ obligation to purchase the Notes
under the Purchase Agreement.

 

The parties hereby agree as follows:

 

1.                                       Definitions

 

As used in this Agreement, the following terms shall have the following
meanings:

 

Additional Interest:  See Section 4(a) hereof.

 

Advice:  See the last paragraph of Section 5
hereof.

 

Agreement:  See the introductory paragraphs hereto.

 

Applicable Period:  See Section 2(b) hereof.

 

Business Day:  Any day that is not a Saturday, Sunday or a
day on which banking institutions in New York or Maryland are authorized or
required by law to be closed.

 

Company:  See the introductory paragraphs hereto.

 

 

Effectiveness Date:  With respect to (i) the Exchange Offer
Registration Statement, the 180th day after the Issue Date and (ii) any
Shelf Registration Statement, the 90th day after the Filing Date with respect
thereto; provided, however, that if the Effectiveness Date would
otherwise fall on a day that is not a Business Day, then the Effectiveness Date
shall be the next succeeding Business Day.

 

Effectiveness Period:  See Section 3(a) hereof.

 

Event Date:  See Section 4(b) hereof.

 

Exchange Act:  The Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

 

Exchange Notes:  See Section 2(a) hereof.

 

Exchange Offer:  See Section 2(a) hereof.

 

Exchange Offer Registration Statement:  See Section 2(a) hereof.

 

Filing Date:  (A) If no Registration Statement has
been filed by the Company pursuant to this Agreement, the 90th day after the
Issue Date; and (B) in any other case (which may be applicable
notwithstanding the consummation of the Exchange Offer), the 90th day after the
delivery of a Shelf Notice as required pursuant to Section 2(c) hereof; provided,
however, that if the Filing Date would otherwise fall on a day that is
not a Business Day, then the Filing Date shall be the next succeeding Business
Day.

 

Guarantees:  See the introductory paragraphs hereto.

 

Guarantors:  See the introductory paragraphs hereto.

 

Holder:  Any holder of a Registrable Note or
Registrable Notes.

 

Indenture:  The Indenture, dated as of March 22, 2004,
by and among the Company, the Guarantors, and U.S. Bank National Association,
as Trustee, pursuant to which the Notes are being issued, as amended or
supplemented from time to time in accordance with the terms thereof.

 

Information:  See Section 5(o) hereof.

 

Initial Purchasers:  See the introductory paragraphs hereto.

 

Initial Shelf Registration:  See Section 3(a) hereof.

 

Inspectors:  See Section 5(o) hereof.

 

2

 

Issue Date:  March 22, 2004, the date of original
issuance of the Notes.

 

Issuers:  See the introductory paragraphs hereto.

 

NASD:  See Section 5(s) hereof.

 

Notes:  See the introductory paragraphs hereto.

 

Participant:  See Section 7(a) hereof.

 

Participating Broker-Dealer:  See Section 2(b) hereof.

 

Person:  An individual, trustee, corporation,
partnership, limited liability company, joint stock company, trust,
unincorporated association, union, business association, firm or other legal
entity.

 

Private Exchange:  See Section 2(b) hereof.

 

Private Exchange Notes:  See Section 2(b) hereof.

 

Prospectus:  The prospectus included in any Registration
Statement (including, without limitation, any prospectus subject to completion
and a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance
upon Rule 430A under the Securities Act and any term sheet filed pursuant
to Rule 434 under the Securities Act), as amended or supplemented by any
prospectus supplement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

 

Purchase Agreement:  See the introductory paragraphs hereof.

 

Records:  See Section 5(o) hereof.

 

Registrable Notes:  Each Note (and the related Guarantees) upon
its original issuance and at all times subsequent thereto, each Exchange Note
(and the related Guarantees) as to which Section 2(c)(iv) hereof is
applicable upon original issuance and at all times subsequent thereto and each
Private Exchange Note (and the related Guarantees) upon original issuance
thereof and at all times subsequent thereto, until, in each case, the earliest
to occur of (i) a Registration Statement (other than, with respect to any
Exchange Note as to which Section 2(c)(iv) hereof is applicable, the
Exchange Offer Registration Statement) covering such Note, Exchange Note or
Private Exchange Note has been declared effective by the SEC, (ii) such
Note has been exchanged pursuant to the Exchange Offer for an Exchange Note or
Exchange Notes

 

3

 

(and the related Guarantees)
that may be resold without restriction under state and federal securities laws,
(iii) such Note, Exchange Note or Private Exchange Note (and the related
Guarantees), as the case may be, ceases to be outstanding for purposes of the
Indenture or (iv) such Note, Exchange Note or Private Exchange Note (and
the related Guarantees), as the case may be, may be resold without restriction
pursuant to Rule 144(k) (as amended or replaced) under the Securities Act.

 

Registration Statement:  Any registration statement of the Company
that covers any of the Notes, the Exchange Notes or the Private Exchange Notes
(and the related Guarantees) filed with the SEC under the Securities Act,
including the Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits, and all material
incorporated by reference or deemed to be incorporated by reference in such
registration statement.

 

Rule 144:  Rule 144 under the Securities Act.

 

Rule 144A:  Rule 144A under the Securities Act.

 

Rule 405:  Rule 405 under the Securities Act.

 

Rule 415:  Rule 415 under the Securities Act.

 

Rule 424:  Rule 424 under the Securities Act.

 

SEC:  The U.S. Securities and Exchange Commission.

 

Securities Act:  The Securities Act of 1933, as amended, and
the rules and regulations of the SEC promulgated thereunder.

 

Shelf Notice:  See Section 2(c) hereof.

 

Shelf Registration:  See Section 3(b) hereof.

 

Shelf Registration Statement:  Any Registration Statement relating to a
Shelf Registration.

 

Shelf Suspension Period:  See Section 3(a) hereof.

 

Subsequent Shelf Registration:  See Section 3(b) hereof.

 

TIA:  The Trust Indenture Act of 1939, as amended.

 

Trustee:  The trustee under the Indenture and the
trustee (if any) under any indenture governing the Exchange Notes and Private
Exchange Notes (and the related Guarantees).

 

4

 

Underwritten registration or underwritten
offering:  A
registration in which securities of the Company are sold to an underwriter for
reoffering to the public.

 

Except as otherwise specifically provided, all references in this
Agreement to acts, laws, statutes, rules, regulations, releases, forms,
no-action letters and other regulatory requirements (collectively, “Regulatory
Requirements”) shall be deemed to refer also to any amendments thereto and
all subsequent Regulatory Requirements adopted as a replacement thereto having
substantially the same effect therewith; provided that Rule 144
shall not be deemed to amend or replace Rule 144A.

 

2.                                       Exchange Offer

 

(a)                                  Unless
the Exchange Offer would violate applicable law or any applicable
interpretation of the staff of the SEC, the Issuers shall use their reasonable
best efforts to file with the SEC, no later than the Filing Date, a
Registration Statement (the “Exchange Offer Registration Statement”) on
an appropriate registration form with respect to a registered offer (the “Exchange
Offer”) to exchange any and all of the Registrable Notes for a like aggregate
principal amount of debt securities of the Company (the “Exchange Notes”),
guaranteed on a senior basis by the Guarantors, that are identical in all
material respects to the Notes, except that (i) the Exchange Notes shall
contain no restrictive legend thereon and (ii) interest thereon shall
accrue from the last date on which interest was paid on the Notes or, if no
such interest has been paid, from the Issue Date, and which are entitled to the
benefits of the Indenture or a trust indenture which is identical in all
material respects to the Indenture (other than such changes to the Indenture or
any such identical trust indenture as are necessary to comply with the TIA) and
which, in either case, has been qualified under the TIA.  The Exchange Offer shall comply with all
applicable tender offer rules and regulations under the Exchange Act and other
applicable laws.  The Issuers shall
(x) use their respective reasonable best efforts to cause the Exchange
Offer Registration Statement to be declared effective under the Securities Act
on or before the Effectiveness Date; (y) keep the Exchange Offer open for
at least 30 days (or longer if required by applicable law) after the date that
notice of the Exchange Offer is mailed to Holders; and (z) consummate the
Exchange Offer on or prior to the 210th day following the Issue Date.

 

Each Holder (including, without limitation, each Participating
Broker-Dealer) who participates in the Exchange Offer will be required to
represent to the Issuers in writing (which may be contained in the applicable
letter of transmittal) that: 
(i) any Exchange Notes acquired in exchange for Registrable Notes
tendered are being acquired in the ordinary course of business of the Person
receiving such Exchange Notes, whether or not such recipient is such Holder
itself; (ii) at the time of the commencement or consummation of the
Exchange Offer neither such Holder nor, to the actual knowledge of such Holder,
any other Person receiving Exchange Notes from such Holder has an arrangement
or understanding with any Person to participate in the distribution of the
Exchange Notes in violation of the provisions of

 

5

 

the Securities Act;
(iii) neither the Holder nor, to the actual knowledge of such Holder, any
other Person receiving Exchange Notes from such Holder is an “affiliate” (as
defined in Rule 405) of the Company or, if it is an affiliate of the
Company, it will comply with the registration and prospectus delivery requirements
of the Securities Act to the extent applicable and will provide information to
be included in the Shelf Registration Statement in accordance with Section 5
hereof in order to have their Notes included in the Shelf Registration
Statement and benefit from the provisions regarding Additional Interest in
Section 4 hereof; (iv) neither such Holder nor, to the actual knowledge of
such Holder, any other Person receiving Exchange Notes from such Holder is
engaging in or intends to engage in a distribution of the Exchange Notes; and
(v) if such Holder is a Participating Broker-Dealer, such Holder has
acquired the Registrable Notes as a result of market-making activities or other
trading activities and that it will comply with the applicable provisions of
the Securities Act (including, but not limited to, the prospectus delivery
requirements thereunder).

 

Upon consummation of the Exchange Offer in accordance with this
Section 2, the provisions of this Agreement shall continue to apply, mutatis
mutandis, solely with respect to Registrable Notes that are Private
Exchange Notes, Exchange Notes as to which Section 2(c)(iv) is applicable
and Exchange Notes held by Participating Broker-Dealers, and the Company shall
have no further obligation to register Registrable Notes (other than Private
Exchange Notes and Exchange Notes as to which clause 2(c)(iv) hereof
applies) pursuant to Section 3 hereof.

 

No securities other than the Exchange Notes shall be included in the
Exchange Offer Registration Statement.

 

(b)                                 The
Issuers shall include within the Prospectus contained in the Exchange Offer
Registration Statement a section entitled “Plan of Distribution,” reasonably acceptable
to the Initial Purchasers, which shall contain a summary statement of the
positions taken or policies made by the staff of the SEC with respect to the
potential “underwriter” status of any broker-dealer that is the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act) of Exchange Notes
received by such broker-dealer in the Exchange Offer (a “Participating
Broker-Dealer”), whether such positions or policies have been publicly
disseminated by the staff of the SEC or such positions or policies represent
the prevailing views of the staff of the SEC. 
Such “Plan of Distribution” section shall also expressly permit, to the
extent permitted by applicable policies and regulations of the SEC, the use of
the Prospectus by all Persons subject to the prospectus delivery requirements
of the Securities Act, including, to the extent permitted by applicable
policies and regulations of the SEC, all Participating Broker-Dealers, and
include a statement describing the means by which Participating Broker-Dealers
may resell the Exchange Notes in compliance with the Securities Act.

 

The Issuers shall use their respective reasonable best efforts to keep
the Exchange Offer Registration Statement effective and to amend and supplement
the Prospectus

 

6

 

contained therein in order to
permit such Prospectus to be lawfully delivered by all Persons subject to the
prospectus delivery requirements of the Securities Act for such period of time
as is necessary to comply with applicable law in connection with any resale of
the Exchange Notes; provided, however, that such period shall not
be required to exceed 90 days or such longer period if extended pursuant to the
last paragraph of Section 5 hereof (the “Applicable Period”).

 

If, prior to consummation of the Exchange Offer, the Initial Purchasers
hold any Notes acquired by them that have the status of an unsold allotment in
the initial distribution, the Issuers, upon the request of the Initial
Purchasers, shall simultaneously with the delivery of the Exchange Notes issue
and deliver to the Initial Purchasers, in exchange (the “Private Exchange”)
for such Notes held by any such Holder, a like principal amount of notes (the “Private
Exchange Notes”) of the Company, guaranteed by the Guarantors, that are
identical in all material respects to the Exchange Notes except for the
placement of a restrictive legend on such Private Exchange Notes.  The Private Exchange Notes shall be issued
pursuant to the same indenture as the Exchange Notes and bear the same CUSIP
number as the Exchange Notes if permitted by the CUSIP Service Bureau.

 

In connection with the Exchange Offer, the Issuers shall:

 

(1)                                  mail, or cause to be
mailed, to each Holder of record entitled to participate in the Exchange Offer
a copy of the Prospectus forming part of the Exchange Offer Registration
Statement, together with an appropriate letter of transmittal and related
documents;

 

(2)                                  use their respective
reasonable best efforts to keep the Exchange Offer open for not less than 30
days after the date that notice of the Exchange Offer is mailed to Holders (or
longer if required by applicable law);

 

(3)                                  utilize the services
of a depositary for the Exchange Offer with an address in the Borough of
Manhattan, The City of New York;

 

(4)                                  permit Holders to
withdraw tendered Notes at any time prior to the close of business, New York
time, on the last Business Day on which the Exchange Offer remains open; and

 

(5)                                  otherwise comply in
all material respects with all applicable laws, rules and regulations.

 

As soon as practicable after the close of the Exchange Offer and the
Private Exchange, if any, the Issuers shall:

 

7

 

(1)                                  accept for exchange
all Registrable Notes validly tendered and not validly withdrawn pursuant to the
Exchange Offer and the Private Exchange, if any;

 

(2)                                  deliver to the
Trustee for cancellation all Registrable Notes so accepted for exchange; and

 

(3)                                  cause the Trustee to
authenticate and deliver promptly to each Holder of Notes, Exchange Notes or
Private Exchange Notes, as the case may be, equal in principal amount to the
Notes of such Holder so accepted for exchange; provided that, in the
case of any Notes held in global form by a depositary, authentication and
delivery to such depositary of one or more replacement Notes in global form in
an equivalent principal amount thereto for the account of such Holders in
accordance with the Indenture shall satisfy such authentication and delivery
requirement.

 

The Exchange Offer and the Private Exchange shall not be subject to any
conditions, other than that (i) the Exchange Offer or Private Exchange, as
the case may be, does not violate applicable law or any applicable
interpretation of the staff of the SEC; (ii) no action or proceeding shall
have been instituted or threatened in any court or by any governmental agency
which might materially impair the ability of the Issuers to proceed with the Exchange
Offer or the Private Exchange, and no material adverse development shall have
occurred in any existing action or proceeding with respect to the Issuers; and
(iii) all governmental approvals shall have been obtained, which approvals
the Issuers deem necessary for the consummation of the Exchange Offer or
Private Exchange.

 

The Exchange Notes and the Private Exchange Notes shall be issued under
(i) the Indenture or (ii) an indenture identical in all material
respects to the Indenture and which, in either case, has been qualified under
the TIA or is exempt from such qualification and shall provide that the Exchange
Notes shall not be subject to the transfer restrictions set forth in the
Indenture.  The Indenture or such
indenture shall provide that the Exchange Notes, the Private Exchange Notes and
the Notes shall vote and consent together on all matters as one class and that
none of the Exchange Notes, the Private Exchange Notes or the Notes will have
the right to vote or consent as a separate class on any matter.

 

(c)                                  If,
(i) because of any change in law or in currently prevailing
interpretations of the staff of the SEC, the Issuers are not permitted to
effect the Exchange Offer, (ii) the Exchange Offer is not consummated
within 210 days of the Issue Date, (iii) the Initial Purchasers or any
other holder of Private Exchange Notes so requests in writing to the Company at
any time after the consummation of the Exchange Offer, or (iv) in the case
of any Holder that participates in the Exchange Offer, such Holder does not
receive Exchange Notes on the date of the exchange that may be sold without
restriction under state and federal securities laws (other than due solely to
the status of such Holder as an affiliate of the Company within the meaning of
the Securities Act) and so notifies the Company within 30 days after such
Holder first becomes aware of such restrictions, in the case of each of clauses
(i) to and

 

8

 

including (iv) of this sentence, then the
Issuers shall promptly deliver to the Holders and the Trustee written notice
thereof (the “Shelf Notice”) and shall file a Shelf Registration
pursuant to Section 3 hereof.

 

3.                                       Shelf Registration

 

If at any time a Shelf Notice is delivered as contemplated by
Section 2(c) hereof, then:

 

(a)                                  Shelf
Registration.  The Issuers shall as
promptly as practicable file with the SEC a Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415 covering all of
the Registrable Notes (the “Initial Shelf Registration”).  The Issuers shall use their respective reasonable
best efforts to file with the SEC the Initial Shelf Registration on or prior to
the applicable Filing Date.  The Initial
Shelf Registration shall be on Form S-3 or another appropriate form permitting
registration of such Registrable Notes for resale by Holders in the manner or
manners designated by them (including, without limitation, one or more
underwritten offerings).  The Issuers
shall not permit any securities other than the Registrable Notes and the Guarantees
to be included in the Initial Shelf Registration or any Subsequent Shelf
Registration (as defined below).

 

The Issuers shall use their respective
reasonable best efforts to cause the Shelf Registration to be declared
effective under the Securities Act on or prior to the Effectiveness Date and to
keep the Initial Shelf Registration continuously effective under the Securities
Act until the date that is two years from the Issue Date or such shorter period
ending when all Registrable Notes covered by the Initial Shelf Registration
have been sold in the manner set forth and as contemplated in the Initial Shelf
Registration or, if applicable, a Subsequent Shelf Registration (the “Effectiveness
Period”); provided, however, that the Effectiveness Period in
respect of the Initial Shelf Registration shall be extended to the extent
required to permit dealers to comply with the applicable prospectus delivery
requirements of Rule 174 under the Securities Act and as otherwise provided
herein and shall be subject to reduction to the extent that the applicable
provisions of Rule 144(k) are amended or revised to reduce the two year holding
period set forth therein. 
Notwithstanding anything to the contrary in this Agreement, at any time,
the Company may delay the filing of any Initial Shelf Registration Statement or
delay or suspend the effectiveness thereof, for a reasonable period of time,
but not in excess of an aggregate of 90 days in any calendar year (a “Shelf
Suspension Period”), if the Board of Directors of the Company determines
reasonably and in good faith that the filing of any such Initial Shelf Registration
Statement or the continuing effectiveness thereof would require the disclosure
of non-public material information that, in the reasonable judgment of the
Board of Directors of the Company, would be detrimental to the Company if so
disclosed or would otherwise materially

 

9

 

adversely affect a financing, acquisition, disposition, merger or other
material transaction.

 

(b)                                 Withdrawal
of Stop Orders; Subsequent Shelf Registrations.  If the Initial Shelf Registration or any Subsequent Shelf
Registration ceases to be effective for any reason at any time during the
Effectiveness Period (other than because of the sale of all of the Notes
registered thereunder), the Issuers shall use their respective reasonable best
efforts to obtain the prompt withdrawal of any order suspending the effectiveness
thereof, and in any event shall within 30 days of such cessation of
effectiveness amend such Shelf Registration Statement in a manner to obtain the
withdrawal of the order suspending the effectiveness thereof, or file an
additional Shelf Registration Statement pursuant to Rule 415 covering all of
the Registrable Notes covered by and not sold under the Initial Shelf
Registration or an earlier Subsequent Shelf Registration (each, a “Subsequent
Shelf Registration”).  If a
Subsequent Shelf Registration is filed, the Issuers shall use their respective
reasonable best efforts to cause the Subsequent Shelf Registration to be
declared effective under the Securities Act as soon as practicable after such
filing and to keep such subsequent Shelf Registration continuously effective
for a period equal to the number of days in the Effectiveness Period less the
aggregate number of days during which the Initial Shelf Registration or any
Subsequent Shelf Registration was previously continuously effective.  As used herein the term “Shelf
Registration” means the Initial Shelf Registration and any Subsequent Shelf
Registration.

 

(c)                                  Supplements
and Amendments.  The Issuers shall
promptly supplement and amend the Shelf Registration if required by the rules,
regulations or instructions applicable to the registration form used for such
Shelf Registration, if required by the Securities Act, or if reasonably
requested by the Holders of a majority in aggregate principal amount of the
Registrable Notes (or their counsel) covered by such Registration Statement
with respect to the information included therein with respect to one or more of
such Holders, or by any underwriter of such Registrable Notes with respect to
the information included therein with respect to such underwriter.

 

4.                                       Additional Interest

 

(a)                                  The
Issuers and the Initial Purchasers agree that the Holders will suffer damages
if the Issuers fail to fulfill their obligations under Section 2 or
Section 3 hereof and that it would not be feasible to ascertain the extent
of such damages with precision. 
Accordingly, the Issuers agree to pay, jointly and severally, as
liquidated damages, additional interest on the Notes (“Additional Interest”)
under the circumstances and to the extent set forth below (each of which shall
be given independent effect):

 

(i)                                     if (A) neither the
Exchange Offer Registration Statement nor the Initial Shelf Registration has
been filed on or prior to the Filing Date applicable thereto or

 

10

 

(B) notwithstanding that the Issuers have consummated or will
consummate the Exchange Offer, the Issuers are required to file a Shelf
Registration and such Shelf Registration is not filed on or prior to the Filing
Date applicable thereto, then, commencing on the day after any such Filing
Date, Additional Interest shall accrue on the principal amount of the
Registrable Notes at a rate of 0.50% per annum for the first 90 days immediately
following such applicable Filing Date, and such Additional Interest rate shall
increase by an additional 0.50% per annum at the beginning of each subsequent
90-day period; or

 

(ii)                                  if (A) neither the
Exchange Offer Registration Statement nor the Initial Shelf Registration is
declared effective by the SEC on or prior to the Effectiveness Date applicable
thereto or (B) notwithstanding that the Issuers have consummated or will
consummate the Exchange Offer, the Issuers are required to file a Shelf
Registration and such Shelf Registration is not declared effective by the SEC
on or prior to the Effectiveness Date applicable to such Shelf Registration,
then, commencing on the day after such Effectiveness Date, Additional Interest
shall accrue on the principal amount of the Registrable Notes at a rate of
0.50% per annum for the first 90 days immediately following the day after such
Effectiveness Date, and such Additional Interest rate shall increase by an
additional 0.50% per annum at the beginning of each subsequent 90-day period;
or

 

(iii)                               if (A) the Issuers
have not exchanged Exchange Notes for all Notes validly tendered in accordance
with the terms of the Exchange Offer on or prior to the 45th day after the
applicable Effectiveness Date or (B) if applicable, a Shelf Registration
has been declared effective and such Shelf Registration ceases to be effective
at any time during the Effectiveness Period, then Additional Interest shall
accrue on the principal amount of the Notes not so exchanged in the case of (A)
or the Registrable Notes in the case of (B) at a rate of 0.50% per annum for
the first 90 days commencing on the (x) 46th day after applicable
Effectiveness Date, in the case of (A) above, or (y) the day such Shelf
Registration ceases to be effective in the case of (B) above, and such
Additional Interest rate shall increase by an additional 0.50% per annum at the
beginning of each such subsequent 90-day period;

 

provided,
however, that the Additional Interest rate on the Notes may not accrue
under more than one of the foregoing clauses (i) - (iii) at any one time and at
no time shall the aggregate amount of Additional Interest accruing exceed in
the aggregate 2.0% per annum; provided, further, however,
that (1) upon the filing of the applicable Exchange Offer Registration
Statement or the applicable Shelf Registration as required hereunder (in the
case of clause (i) above of this Section 4), (2) upon the
effectiveness of the Exchange Offer Registration Statement or the applicable
Shelf Registration Statement as required hereunder (in the case of clause (ii)
of this Section 4), or (3) upon the exchange of the Exchange Notes
for all Notes tendered (in the case of clause (iii)(A) of this Section 4),
or upon the effectiveness of the applicable Shelf

 

11

 

Registration Statement which
had ceased to remain effective (in the case of (iii)(B) of this
Section 4), Additional Interest on the Notes in respect of which such
events relate as a result of such clause (or the relevant subclause thereof),
as the case may be, shall cease to accrue. 
Notwithstanding any other provision of this Section 4, the Issuer shall
not be obligated to pay Additional Interest provided in Sections 4(a)(i)(B),
4(a)(ii)(B) or 4(a)(iii)(B) during a Shelf Suspension Period permitted by
Section 3(a) hereof.

 

(b)                                 The
Issuers shall notify the Trustee within one Business Day after each and every
date on which an event occurs in respect of which Additional Interest is required
to be paid (an “Event Date”).  Any
amounts of Additional Interest due pursuant to (a)(i), (a)(ii) or (a)(iii) of
this Section 4 will be payable in cash semiannually on each October 1 and
April 1 (to the holders of record on the September 15 and March 15 immediately
preceding such dates), commencing with the first such date occurring after any
such Additional Interest commences to accrue. 
The amount of Additional Interest will be determined by multiplying the
applicable Additional Interest rate by the principal amount of the Registrable
Notes, multiplied by a fraction, the numerator of which is the number of days
such Additional Interest rate was applicable during such period (determined on
the basis of a 360 day year comprised of twelve 30 day months and, in
the case of a partial month, the actual number of days elapsed), and the denominator
of which is 360.

 

5.                                       Registration Procedures

 

In connection with the filing of any Registration Statement pursuant to
Section 2 or 3 hereof, the Issuers shall effect such registrations to
permit the sale of the securities covered thereby in accordance with the
intended method or methods of disposition thereof, and pursuant thereto and in
connection with any Registration Statement filed by the Company hereunder each
of the Issuers shall:

 

(a)                                  Prepare
and file with the SEC prior to the applicable Filing Date a Registration
Statement or Registration Statements as prescribed by Section 2 or 3
hereof, and use their respective reasonable best efforts to cause each such
Registration Statement to become effective and remain effective as provided
herein; provided, however, that if (1) such filing is
pursuant to Section 3 hereof or (2) a Prospectus contained in the
Exchange Offer Registration Statement filed pursuant to Section 2 hereof
is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period
relating thereto from whom the Company has received prior written notice that
it will be a Participating Broker-Dealer in the Exchange Offer, before filing
any Registration Statement or Prospectus or any amendments or supplements
thereto, the Issuers shall furnish to and afford the Holders of the Registrable
Notes covered by such Registration Statement (with respect to a Registration
Statement filed pursuant to Section 3 hereof) or each such Participating
Broker-Dealer (with respect to any such Registration Statement), as

 

12

 

the case may be, their counsel and the
managing underwriters, if any, a reasonable opportunity to review copies of all
such documents (including copies of any documents to be incorporated by reference
therein and all exhibits thereto) proposed to be filed (in each case at least
five Business Days prior to such filing). 
The Issuers shall not file any Registration Statement or Prospectus or
any amendments or supplements thereto if the Holders of a majority in aggregate
principal amount of the Registrable Notes covered by such Registration
Statement, their counsel, or the managing underwriters, if any, shall
reasonably object on a timely basis.

 

(b)                                 Use
its reasonable best efforts to prepare and file with the SEC such amendments
and post-effective amendments to each Shelf Registration Statement or Exchange
Offer Registration Statement, as the case may be, as may be necessary to keep
such Registration Statement continuously effective for the Effectiveness
Period, the Applicable Period or until consummation of the Exchange Offer, as
the case may be; cause the related Prospectus to be supplemented by any
Prospectus supplement required by applicable law, and as so supplemented to be
filed pursuant to Rule 424; and comply with the provisions of the
Securities Act and the Exchange Act applicable to it with respect to the
disposition of all securities covered by such Registration Statement as so
amended or in such Prospectus as so supplemented and with respect to the subsequent
resale of any securities being sold by an Participating Broker-Dealer covered
by any such Prospectus.  The Company
shall be deemed not to have used its reasonable best efforts to keep a Registration
Statement effective if such Issuer voluntarily takes any action that would
result in selling Holders of the Registrable Notes covered thereby or Participating
Broker-Dealers seeking to sell Exchange Notes not being able to sell such Registrable
Notes or such Exchange Notes during that period unless such action is required
by applicable law or permitted by this Agreement.

 

(c)                                  If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement
filed pursuant to Section 2 hereof is required to be delivered under the
Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period relating thereto from whom the Company has
received written notice that it will be a Participating Broker-Dealer in the
Exchange Offer, notify the selling Holders of Registrable Notes (with respect
to a Registration Statement filed pursuant to Section 3 hereof), or each
such Participating Broker-Dealer (with respect to any such Registration
Statement), as the case may be, their counsel and the managing underwriters, if
any, promptly (but in any event within one business day), and confirm such
notice in writing, (i) when a Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to a Registration
Statement or any post-effective amendment, when the same has become effective
under the Securities Act (including in such notice a written statement that any
Holder may, upon request, obtain, at the sole expense of the Company, one
conformed copy of such Registration Statement or

 

13

 

post-effective amendment including financial
statements and schedules, documents incorporated or deemed to be incorporated
by reference and exhibits), (ii) of the issuance by the SEC of any stop
order suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of any preliminary prospectus or the
initiation of any proceedings for that purpose, (iii) if at any time when
a prospectus is required by the Securities Act to be delivered in connection
with sales of the Registrable Notes or resales of Exchange Notes by
Participating Broker-Dealers the representations and warranties of the Issuers
contained in any agreement (including any underwriting agreement) contemplated
by Section 5(n) hereof cease to be true and correct, (iv) of the
receipt by any Issuer of any notification with respect to the suspension of the
qualification or exemption from qualification of a Registration Statement or
any of the Registrable Notes or the Exchange Notes to be sold by any Participating
Broker-Dealer for offer or sale in any jurisdiction, or the initiation or
threatening of any proceeding for such purpose, (v) of the happening of
any event, the existence of any condition or any information becoming known
that makes any statement made in such Registration Statement or related
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires the making of any
changes in or amendments or supplements to such Registration Statement,
Prospectus or documents so that, in the case of the Registration Statement, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the Prospectus, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading,
and (vi) of the Issuers’ determination that a post-effective amendment to
a Registration Statement would be appropriate.

 

(d)                                 Use
their respective reasonable best efforts to prevent the issuance of any order
suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of a Prospectus or suspending the
qualification (or exemption from qualification) of any of the Registrable Notes
or the Exchange Notes to be sold by any Participating Broker-Dealer, for sale
in any jurisdiction, and, if any such order is issued, to use their respective
reasonable best efforts to obtain the withdrawal of any such order at the earliest
practicable date.

 

(e)                                  If
a Shelf Registration is filed pursuant to Section 3 and if requested in
writing during the Effectiveness Period by the managing underwriter or
underwriters (if any), the Holders of a majority in aggregate principal amount
of the Registrable Notes being sold in connection with an underwritten offering
or any Participating Broker-Dealer, (i) as promptly as practicable
incorporate in a prospectus supplement or post-effective amendment such
information as the managing underwriter or

 

14

 

underwriters (if any), such Holders, any
Participating Broker-Dealer or counsel for any of them reasonably request to be
included therein, (ii) make all required filings of such prospectus supplement
or such post-effective amendment as soon as practicable after the Company has
received notification of the matters to be incorporated in such prospectus
supplement or post-effective amendment, and (iii) supplement or make
amendments to such Registration Statement; provided, however, the
Issuers shall not be required to take any action pursuant to this Section 5(e)
that would, in the opinion of counsel for the Company, reasonably satisfactory
to the Initial Purchasers, violate applicable law.

 

(f)                                    If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement
filed pursuant to Section 2 hereof is required to be delivered under the
Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period, furnish to each selling Holder of
Registrable Notes (with respect to a Registration Statement filed pursuant to
Section 3 hereof) and to each such Participating Broker-Dealer who so
requests (with respect to any such Registration Statement) and to their respective
counsel and each managing underwriter, if any, at the sole expense of the
Company, one conformed copy of the Registration Statement or Registration Statements
and each post-effective amendment thereto, including financial statements and
schedules, and, if requested, all documents incorporated or deemed to be
incorporated therein by reference and all exhibits.

 

(g)                                 If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement
filed pursuant to Section 2 hereof is required to be delivered under the
Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period, deliver to each selling Holder of
Registrable Notes (with respect to a Registration Statement filed pursuant to
Section 3 hereof), or each such Participating Broker-Dealer (with respect
to any such Registration Statement), as the case may be, their respective
counsel, and the underwriters, if any, at the sole expense of the Company, as
many copies of the Prospectus or Prospectuses (including each form of
preliminary prospectus) and each amendment or supplement thereto and any
documents incorporated by reference therein as such Persons may reasonably
request; and, subject to the last paragraph of this Section 5, the Issuers
hereby consent to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders of Registrable Notes or each such
Participating Broker-Dealer, as the case may be, and the underwriters or
agents, if any, and dealers, if any, in connection with the offering and sale
of the Registrable Notes covered by, or the sale by Participating
Broker-Dealers of the Exchange Notes pursuant to, such Prospectus and any
amendment or supplement thereto.

 

15

 

(h)                                 Prior
to any public offering of Registrable Notes or any delivery of a Prospectus
contained in the Exchange Offer Registration Statement by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period,
use their respective reasonable best efforts to register or qualify, and to
cooperate with the selling Holders of Registrable Notes or each such
Participating Broker-Dealer, as the case may be, the managing underwriter or
underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Notes for offer and sale under the securities
or Blue Sky laws of such jurisdictions within the United States as any selling
Holder, Participating Broker-Dealer, or the managing underwriter or
underwriters reasonably request in writing; provided, however,
that where Exchange Notes held by Participating Broker-Dealers or Registrable
Notes are offered other than through an underwritten offering, the Issuers
agree to cause their counsel to perform Blue Sky investigations and file
registrations and qualifications required to be filed pursuant to this
Section 5(h), keep each such registration or qualification (or exemption
therefrom) effective during the period such Registration Statement is required
to be kept effective and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the Exchange Notes
held by Participating Broker-Dealers or the Registrable Notes covered by the
applicable Registration Statement; provided, however, that no
Issuer shall be required to (A) qualify generally to do business in any
jurisdiction where it is not then so qualified, (B) take any action that
would subject it to general service of process in any such jurisdiction where
it is not then so subject or (C) subject itself to taxation in excess of a
nominal dollar amount in any such jurisdiction where it is not then so subject.

 

(i)                                     If
a Shelf Registration is filed pursuant to Section 3 hereof, cooperate with
the selling Holders of Registrable Notes and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Notes to be sold, which certificates
shall not bear any restrictive legends and shall be in a form eligible for
deposit with The Depository Trust Company; and enable such Registrable Notes to
be in such denominations (subject to applicable requirements contained in the
Indenture) and registered in such names as the managing underwriter or
underwriters, if any, or Holders may request.

 

(j)                                     Use
their respective reasonable best efforts to cause the Registrable Notes covered
by the Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller
or sellers thereof or the underwriter or underwriters, if any, to consummate
the disposition of such Registrable Notes, except as may be required solely as
a consequence of the nature of such selling Holder’s business, in which case
the Issuers will cooperate in all respects with the filing of such Registration
Statement and the granting of such approvals; provided that no Issuer
shall be required to (A) qualify generally to do

 

16

 

business in any jurisdiction where it is not
then so qualified, (B) take any action that would subject it to general service
of process in any jurisdiction where it is not then so subject or (C) subject
itself to taxation in excess of a nominal dollar amount in any such
jurisdiction it is not then so subject.

 

(k)                                  If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement
filed pursuant to Section 2 hereof is required to be delivered under the
Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period, upon the occurrence of any event
contemplated by paragraph 5(c)(v) or 5(c)(vi) hereof, as promptly as
practicable prepare and (subject to Section 5(a) hereof) file with the
SEC, at the sole expense of the Company, a supplement or post-effective amendment
to the Registration Statement or a supplement to the related Prospectus or any
document incorporated or deemed to be incorporated therein by reference, or
file any other required document so that, as thereafter delivered to the
purchasers of the Registrable Notes being sold thereunder (with respect to a
Registration Statement filed pursuant to Section 3 hereof) or to the
purchasers of the Exchange Notes to whom such Prospectus will be delivered by a
Participating Broker-Dealer (with respect to any such Registration Statement),
any such Prospectus will not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

 

(l)                                     Use
their respective reasonable best efforts to cause the Registrable Notes covered
by a Registration Statement or the Exchange Notes, as the case may be, to be
rated with the appropriate rating agencies, if so requested by the Holders of a
majority in aggregate principal amount of Registrable Notes covered by such
Registration Statement or the Exchange Notes, as the case may be, or the
managing underwriter or underwriters, if any.

 

(m)                               Prior
to the effective date of the first Registration Statement relating to the
Registrable Notes, (i) provide the Trustee with certificates for the
Registrable Notes in a form eligible for deposit with The Depository Trust
Company and (ii) provide a CUSIP number for the Registrable Notes.

 

(n)                                 In
connection with any underwritten offering of Registrable Notes pursuant to a
Shelf Registration, enter into an underwriting agreement as is customary in
underwritten offerings of debt securities similar to the Notes, and take all
such other actions as are reasonably requested by the managing underwriter or
underwriters in order to expedite or facilitate the registration or the
disposition of such Registrable Notes and, in such connection, (i) make
such representations and warranties to, and covenants with, the underwriters
with respect to the business of the Issuers (including

 

17

 

any acquired business, properties or entity,
if applicable), and the Registration Statement, Prospectus and documents, if
any, incorporated or deemed to be incorporated by reference therein, in each
case, as are customarily made by issuers to underwriters in underwritten offerings
of debt securities similar to the Notes substantially similar to those included
in the Purchase Agreement, and confirm the same in writing if and when
requested; (ii) obtain the written opinions of counsel to the Issuers, and
written updates thereof in form, scope and substance reasonably satisfactory to
the managing underwriter or underwriters, addressed to the underwriters
covering the matters customarily covered in opinions reasonably requested in
underwritten offerings of debt securities similar to the Notes;
(iii) obtain “cold comfort” letters and updates thereof in form, scope and
substance reasonably satisfactory to the managing underwriter or underwriters
from the independent certified public accountants of the Issuers (and, if necessary,
any other independent certified public accountants of the Issuers, or of any
business acquired by the Issuers, for which financial statements and financial
data are, or are required to be, included or incorporated by reference in the
Registration Statement), addressed to each of the underwriters, such letters to
be in customary form and covering matters of the type customarily covered in
“cold comfort” letters in connection with underwritten offerings of debt securities
similar to the Notes; and (iv) if an underwriting agreement is entered
into, the same shall contain indemnification provisions and procedures no less
favorable to the sellers and underwriters, if any, than those set forth in
Section 7 hereof (or such other provisions and procedures reasonably
acceptable to Holders of a majority in aggregate principal amount of
Registrable Notes covered by such Registration Statement and the managing
underwriter or underwriters or agents, if any).  The above shall be done at each closing under such underwriting
agreement, or as and to the extent required thereunder.  Notwithstanding the foregoing, the Issuers
may delay entering into such agreement in the event that and for a period of
time not to exceed an aggregate of 60 days if (1) the Board of Directors of the
Company determines in good faith that the disclosure of an event at such time
could reasonably be expected to have a material adverse effect on the business,
operations or prospects of the Issuers or (2) the disclosure otherwise relates
to a material business transaction which has not been publicly disclosed and
the Board of Directors of the Company determines that any such disclosure would
jeopardize the success of such transaction.

 

(o)                                 If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement
filed pursuant to Section 2 hereof is required to be delivered under the
Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period, make available for inspection by any
Initial Purchaser, any selling Holder of such Registrable Notes being sold
(with respect to a Registration Statement filed pursuant to Section 3
hereof), or each such Participating Broker-Dealer, as the case may be, any
underwriter participating in any such disposition of Registrable Notes, if any,
and any

 

18

 

attorney, accountant or other agent retained
by any such selling Holder or each such Participating Broker-Dealer (with
respect to any such Registration Statement), as the case may be, or underwriter
(any such Initial Purchasers, Holders, Participating Broker-Dealers,
underwriters, attorneys, accountants or agents, collectively, the “Inspectors”),
upon written request, at the offices where normally kept, during reasonable
business hours, all pertinent financial and other records, pertinent corporate
documents and instruments of the Company and subsidiaries of the Company
(collectively, the “Records”), as shall be reasonably necessary to
enable them to exercise any applicable due diligence responsibilities, and
cause the officers, directors and employees of the Company and any of its
subsidiaries to supply all information (“Information”) reasonably
requested by any such Inspector in connection with such due diligence responsibilities.  Each Inspector shall agree in writing that
it will keep the Records and Information confidential and that it will not
disclose any of the Records or Information that the Company determines, in good
faith, to be confidential and notifies the Inspectors in writing are confidential,
and that such information will be treated as confidential by it so as not to
give rise to disclosure obligations on the part of the Issuer under SEC
Regulation FD, unless (i) the disclosure of such Records or Information is
necessary to avoid or correct a misstatement or omission in such Registration
Statement or Prospectus, (ii) the release of such Records or Information
is ordered pursuant to a subpoena or other order from a court of competent
jurisdiction, (iii) disclosure of such Records or Information is necessary
or advisable, in the opinion of counsel for any Inspector, in connection with
any action, claim, suit or proceeding, directly or indirectly, involving or
potentially involving such Inspector and arising out of, based upon, relating
to, or involving this Agreement or the Purchase Agreement, or any transactions
contemplated hereby or thereby or arising hereunder or thereunder, or
(iv) the information in such Records or Information has been made generally
available to the public other than by an Inspector or an “affiliate” (as
defined in Rule 405) thereof; provided, however, that prior
notice shall be provided as soon as practicable to the Company of the potential
disclosure of any information by such Inspector pursuant to clauses (i) or
(ii) of this sentence to permit the Company to obtain a protective order (or
waive the provisions of this paragraph (o)) and that such Inspector shall
take such actions as are reasonably necessary to protect the confidentiality of
such information (if practicable) to the extent such action is otherwise not
inconsistent with, an impairment of or in derogation of the rights and
interests of the Holder or any Inspector.

 

(p)                                 Provide
an indenture trustee for the Registrable Notes or the Exchange Notes, as the
case may be, and cause the Indenture or the trust indenture provided for in
Section 2(a) hereof, as the case may be, to be qualified under the TIA not
later than the effective date of the first Registration Statement relating to
the Registrable Notes; and in connection therewith, cooperate with the trustee
under any such indenture and the Holders of the Registrable Notes, to effect
such changes (if any) to such indenture as may be required for such indenture
to be so qualified in accordance with the terms

 

19

 

of the TIA; and execute, and use their
respective reasonable best efforts to cause such trustee to execute, all
documents as may be required to effect such changes, and all other forms and
documents required to be filed with the SEC to enable such indenture to be so
qualified in a timely manner.

 

(q)                                 Comply
with all applicable rules and regulations of the SEC and make generally
available to its securityholders with regard to any applicable Registration
Statement, a consolidated earning statement satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any
similar rule promulgated under the Securities Act) no later than 45 days
after the end of any fiscal quarter (or 90 days after the end of any
12-month period if such period is a fiscal year) (i) commencing at the end
of any fiscal quarter in which Registrable Notes are sold to underwriters in a
firm commitment or best efforts underwritten offering and (ii) if not sold
to underwriters in such an offering, commencing on the first day of the first
fiscal quarter of the Company, after the effective date of a Registration
Statement, which statements shall cover said 12-month periods.

 

(r)                                    Upon
consummation of the Exchange Offer or a Private Exchange, obtain an opinion of
counsel to the Issuers, in a form customary for underwritten transactions,
addressed to the Trustee for the benefit of all Holders of Registrable Notes
participating in the Exchange Offer or the Private Exchange, as the case may
be, that the Exchange Notes or Private Exchange Notes, as the case may be, the
related guarantee and the related indenture constitute legal, valid and binding
obligations of the Issuers, enforceable against the Issuers in accordance with
their respective terms, subject to customary exceptions and
qualifications.  If the Exchange Offer
or a Private Exchange is to be consummated, upon delivery of the Registrable
Notes by Holders to the Company (or to such other Person as directed by the
Company), in exchange for the Exchange Notes or the Private Exchange Notes, as
the case may be, the Issuers shall mark, or cause to be marked, on such
Registrable Notes that such Registrable Notes are being cancelled in exchange
for the Exchange Notes or the Private Exchange Notes, as the case may be; in no
event shall such Registrable Notes be marked as paid or otherwise satisfied.

 

(s)                                  Cooperate
with each seller of Registrable Notes covered by any Registration Statement and
each underwriter, if any, participating in the disposition of such Registrable
Notes and their respective counsel in connection with any filings required to
be made with the National Association of Securities Dealers, Inc. (the “NASD”).

 

(t)                                    Use
their respective reasonable best efforts to take all other steps necessary to
effect the registration of the Exchange Notes and/or Registrable Notes covered
by a Registration Statement contemplated hereby.

 

20

 

The Company may require each seller of Registrable Notes as to which
any registration is being effected to furnish to the Company such information
regarding such seller and the distribution of such Registrable Notes as the
Company may, from time to time, reasonably request.  The Company may exclude from such registration the Registrable
Notes of any seller so long as such seller fails to furnish such information
within a reasonable time after receiving such request.  Each seller as to which any Shelf
Registration is being effected agrees to furnish promptly to the Company all
information required to be disclosed in order to make the information
previously furnished to the Company by such seller not materially misleading.

 

If any such Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of any Issuer, then such Holder shall
have the right to require (i) the insertion therein of language, in form
and substance reasonably satisfactory to such Holder, to the effect that the
holding by such Holder of such securities is not to be construed as a recommendation
by such Holder of the investment quality of the securities covered thereby and
that such holding does not imply that such Holder will assist in meeting any
future financial requirements of the Issuers, or (ii) in the event that
such reference to such Holder by name or otherwise is not required by the
Securities Act or any similar federal statute then in force, the deletion of
the reference to such Holder in any amendment or supplement to the Registration
Statement filed or prepared subsequent to the time that such reference ceases
to be required.

 

Each Holder of Registrable Notes and each Participating Broker-Dealer
agrees by its acquisition of such Registrable Notes or Exchange Notes to be
sold by such Participating Broker-Dealer, as the case may be, that, upon actual
receipt of any notice from the Company of the happening of any event of the
kind described in Section 5(c)(ii), 5(c)(iv), 5(c)(v), or 5(c)(vi) hereof,
such Holder will forthwith discontinue disposition of such Registrable Notes
covered by such Registration Statement or Prospectus or Exchange Notes to be
sold by such Holder or Participating Broker-Dealer, as the case may be, and in
each case, dissemination of such Prospectus, until such Holder’s or Participating
Broker-Dealer’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(k) hereof, or until it is advised in writing
(the “Advice”) by the Company that the use of the applicable Prospectus
may be resumed, and has received copies of any amendments or supplements
thereto.  In the event that the Issuers
shall give any such notice, each of the Applicable Period and the Effectiveness
Period shall be extended by the number of days during such periods from and including
the date of the giving of such notice to and including the date when each
seller of Registrable Notes covered by such Registration Statement or Exchange
Notes to be sold by such Participating Broker-Dealer, as the case may be, shall
have received (x) the copies of the supplemented or amended Prospectus
contemplated by Section 5(k) hereof or (y) the Advice.

 

21

 

6.                                       Registration Expenses

 

All fees and expenses incident to the performance of or compliance with
this Agreement by the Issuers shall be borne by the Company, whether or not the
Exchange Offer Registration Statement or any Shelf Registration Statement is
filed or becomes effective or the Exchange Offer is consummated, including,
without limitation, (i) all registration and filing fees (including,
without limitation, (A) fees with respect to filings required to be made
with the NASD in connection with an underwritten offering and (B) fees and
expenses of compliance with state securities or Blue Sky laws where required
(including, without limitation, fees and disbursements of counsel in connection
with Blue Sky qualifications of the Registrable Notes or Exchange Notes and
determination of the eligibility of the Registrable Notes or Exchange Notes for
investment under the laws of such jurisdictions (x) where the holders of
Registrable Notes are located, in the case of the Exchange Notes, or
(y) as provided in Section 5(h) hereof, in the case of Registrable
Notes or Exchange Notes to be sold by a Participating Broker-Dealer during the
Applicable Period)), (ii) printing expenses, including, without
limitation, expenses of printing certificates for Registrable Notes or Exchange
Notes in a form eligible for deposit with The Depository Trust Company and of
printing prospectuses if the printing of prospectuses is requested by the
managing underwriter or underwriters, if any, by the Holders of a majority in
aggregate principal amount of the Registrable Notes included in any Registration
Statement or in respect of Registrable Notes or Exchange Notes to be sold by
any Participating Broker-Dealer during the Applicable Period, as the case may
be, (iii) messenger, telephone and delivery expenses, (iv) fees and
disbursements of counsel for the Issuers and, in the case of a Shelf
Registration, reasonable fees and disbursements of one special counsel for all
of the sellers of Registrable Notes selected by the Holder of a majority in
aggregate principal amount of Registrable Notes covered by such Shelf
Registration (exclusive of any counsel retained pursuant to Section 7 hereof),
(v) fees and disbursements of all independent certified public accountants
referred to in Section 5(n)(iii) hereof (including, without limitation, the
expenses of any “cold comfort” letters required by or incident to such
performance), (vi) Securities Act liability insurance, if the Issuers
desire such insurance, (vii) fees and expenses of all other Persons
retained by the Issuers, (viii) internal expenses of the Issuers
(including, without limitation, all salaries and expenses of officers and
employees of the Issuers performing legal or accounting duties), (ix) the
expense of any annual audit, (x) any fees and expenses incurred in
connection with the listing of the securities to be registered on any securities
exchange, and the obtaining of a rating of the securities, in each case, if applicable
and (xi) the expenses relating to printing, word processing and
distributing all Registration Statements, underwriting agreements, indentures
and any other documents necessary in order to comply with this Agreement.  Notwithstanding the foregoing, the Issuers
shall not pay underwriting or brokerage discounts or commissions.

 

22

 

7.                                       Indemnification and Contribution.

 

(a)                                  Each
of the Issuers agree jointly and severally, to indemnify and hold harmless each
Holder of Registrable Notes and each Participating Broker-Dealer selling
Exchange Notes during the Applicable Period, and each Person, if any, who
controls such Person or its affiliates within the meaning of Section 15 of the
Act or Section 20 of the Exchange Act (each, a “Participant”) against any
losses, claims, damages or liabilities to which any Participant may become
subject under the Securities Act, the Exchange Act or otherwise, insofar as any
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon:

 

(i)                                     any untrue
statement or alleged untrue statement made by any Issuer contained in any
application or any other document or any amendment or supplement thereto
executed by any Issuer based upon written information furnished by or on behalf
of any Issuer filed in any jurisdiction in order to qualify the Notes under the
securities or “Blue Sky” laws thereof or filed with the SEC or any securities
association or securities exchange (each, an “Application”);

 

(ii)                                  any untrue statement
or alleged untrue statement of any material fact contained in any Registration
Statement (or any amendment thereto) or Prospectus (as amended or supplemented
if any of the Issuers shall have furnished any amendments or supplements
thereto) or any preliminary prospectus; or

 

(iii)                               the omission or alleged
omission to state, in any Registration Statement (or any amendment thereto) or
Prospectus (as amended or supplemented if any of the Issuers shall have
furnished any amendments or supplements thereto) or any preliminary prospectus
or any Application or any other document or any amendment or supplement
thereto, a material fact required to be stated therein or necessary to make the
statements therein not misleading;

 

and will reimburse, as
incurred, the Participant for any legal or other expenses incurred by the
Participant in connection with investigating, defending against or appearing as
a third-party witness in connection with any such loss, claim, damage,
liability or action; provided, however, none of the Issuers will
be liable in any such case to the extent that any such loss, claim, damage, or
liability arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in any Registration Statement
(or any amendment thereto) or Prospectus (as amended or supplemented if any of
the Issuers shall have furnished any amendments or supplements thereto) or any
preliminary prospectus or Application or any amendment or supplement thereto in
reliance upon and in conformity with information relating to any Participant
furnished to the Issuers by such Participant specifically for use therein; provided
further, however, that the Issuers shall not be liable if such untrue
statement or omission or alleged untrue statement or omission was contained or
made in any preliminary prospectus and corrected in the Prospectus or any
amendment or supplement

 

23

 

thereto and the Prospectus does
not contain any other untrue statement or omission or alleged untrue statement
or omission of a material fact that was the subject matter of the related
proceeding and any such loss, liability, claim, damage or expense suffered or
incurred by the Participants resulted from any action, claim or suit by any
Person who purchased Registrable Notes or Exchange Notes which are the subject
thereof from such Participant and it is established in the related proceeding
that such Participant failed to deliver or provide a copy of the Prospectus (as
amended or supplemented) to such Person with or prior to the confirmation of
the sale of such Registrable Notes or Exchange Notes sold to such Person if
required by applicable law, unless such failure to deliver or provide a copy of
the Prospectus (as amended or supplemented) was a result of noncompliance by
the Issuers with Section 5 of this Agreement. 
The indemnity provided for in this Section 7 will be in addition to
any liability that the Issuers may otherwise have to the indemnified
parties.  The Issuers shall not be
liable under this Section 7 for any settlement of any claim or action
effected without their prior written consent, which shall not be unreasonably
withheld.

 

(b)                                 Each
Participant, severally and not jointly, agrees to indemnify and hold harmless
the Issuers, their directors, their officers and each person, if any, who
controls the Issuers within the meaning of Section 15 of the Act or Section 20
of the Exchange Act against any losses, claims, damages or liabilities to which
the Issuers or any such director, officer or controlling person may become
subject under the Act, the Exchange Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in any Registration Statement or Prospectus, any
amendment or supplement thereto, or any preliminary prospectus, or
(ii) the omission or the alleged omission to state therein a material fact
necessary to make the statements therein not misleading, in each case to the extent,
but only to the extent, that such untrue statement or alleged untrue statement
or omission or alleged omission was made in reliance upon and in conformity
with written information concerning such Participant, furnished to the Issuers
by the Participant, specifically for use therein; and subject to the limitation
set forth immediately preceding this clause, will reimburse, as incurred, any
reasonable legal or other expenses incurred by the Issuers or any such
director, officer or controlling person in connection with investigating or
defending against or appearing as a third party witness in connection with any
such loss, claim, damage, liability or action in respect thereof.  The indemnity provided for in this
Section 7 will be in addition to any liability that the Participants may
otherwise have to the indemnified parties. 
The Participants shall not be liable under this Section 7 for any
settlement of any claim or action effected without their consent, which shall
not be unreasonably withheld.  The
Issuers shall not, without the prior written consent of such Participant,
effect any settlement or compromise of any pending or threatened proceeding in
respect of which such Participant is or could have been a party, or indemnity
could have been sought hereunder by such Participant, unless such settlement
(A) includes an unconditional written release of such Participant, in form
and substance reasonably satisfactory to such Participant, from all liability
on claims that are the subject

 

24

 

matter of such proceeding and (B) does not
include any statement as to an admission of fault, culpability or failure to
act by or on behalf of such Participant.

 

(c)                                  Promptly
after receipt by an indemnified party under this Section 7 of notice of
the commencement of any action for which such indemnified party is entitled to
indemnification under this Section 7, such indemnified party will, if a claim
in respect thereof is to be made against the indemnifying party under this
Section 7, notify the indemnifying party of the commencement thereof in
writing; but the omission to so notify the indemnifying party (i) will not
relieve it from any liability under paragraph (a) or (b) above unless and to
the extent such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses and (ii) will not, in any event, relieve
the indemnifying party from any obligations to any indemnified party other than
the indemnification obligation provided in paragraphs (a) and (b) above.  In case any such action is brought against
any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party; provided, however,
that if (i) the use of counsel chosen by the indemnifying party to
represent the indemnified party would present such counsel with a conflict of
interest, (ii) the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have been advised by counsel that there may be one or more legal defenses
available to it and/or other indemnified parties that are different from or
additional to those available to the indemnifying party, or (iii) the indemnifying
party shall not have employed counsel reasonably satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after receipt by the indemnifying party of notice of the institution of such
action, then, in each such case, the indemnifying party shall not have the
right to direct the defense of such action on behalf of such indemnified party
or parties and such indemnified party or parties shall have the right to select
separate counsel to defend such action on behalf of such indemnified party or
parties.  After notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof and approval by such indemnified party of counsel appointed to
defend such action, the indemnifying party will not be liable to such indemnified
party under this Section 7 for any legal or other expenses, other than
reasonable costs of investigation, subsequently incurred by such indemnified
party in connection with the defense thereof, unless (i) the indemnified
party shall have employed separate counsel in accordance with the proviso to
the immediately preceding sentence (it being understood, however, that in connection
with such action the indemnifying party shall not be liable for the expenses of
more than one separate counsel (in addition to local counsel) in any one action
or separate but substantially similar actions in the same jurisdiction arising
out of the same general allegations or circumstances, designated by
Participants who sold a majority in interest of the Registrable Notes and Exchange
Notes sold by all such Participants in the case of paragraph (a) of this
Section 7 or the Issuers in the case of paragraph (b) of this
Section 7, representing the indemnified parties under such
paragraph (a) or paragraph (b), as the case may be, who are parties
to such action or

 

25

 

actions) or (ii) the indemnifying party has
authorized in writing the employment of counsel for the indemnified party at
the expense of the indemnifying party. 
All fees and expenses reimbursed pursuant to this paragraph (c) shall be
reimbursed as they are incurred.  After
such notice from the indemnifying party to such indemnified party, the indemnifying
party will not be liable for the costs and expenses of any settlement of such
action effected by such indemnified party without the prior written consent of
the indemnifying party (which consent shall not be unreasonably withheld),
unless such indemnified party waived in writing its rights under this
Section 7, in which case the indemnified party may effect such a
settlement without such consent.

 

(d)                                 In
circumstances in which the indemnity agreement provided for in the preceding
paragraphs of this Section 7 is unavailable to, or insufficient to hold
harmless, an indemnified party in respect of any losses, claims, damages or
liabilities (or actions in respect thereof), each indemnifying party, in order
to provide for just and equitable contribution, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect (i) the relative benefits received by the indemnifying
party or parties on the one hand and the indemnified party on the other from
the offering of the Notes or (ii) if the allocation provided by the foregoing
clause (i) is not permitted by applicable law, not only such relative benefits
but also the relative fault of the indemnifying party or parties on the one
hand and the indemnified party on the other in connection with the statements
or omissions or alleged statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof).  The relative benefits received by the
Company on the one hand and such Participant on the other shall be deemed to be
in the same proportion as the total proceeds from the offering (before
deducting expenses) of the Notes received by the Company bear to the total net
profit received by such Participant in connection with the sale of the
Notes.  The relative fault of the
parties shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company on the one hand, or the Participants on the other, the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission or alleged statement or omission, and any other
equitable considerations appropriate in the circumstances.  The parties agree that it would not be
equitable if the amount of such contribution were determined by pro rata or per
capita allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the first sentence of this
paragraph (d).  Notwithstanding any
other provision of this paragraph (d), no Participant shall be obligated to
make contributions hereunder that in the aggregate exceed the total net profit
received by such Participant in connection with the sale of the Notes, less the
aggregate amount of any damages that such Participant has otherwise been
required to pay by reason of the untrue or alleged untrue statements or the
omissions or alleged omissions to state a material fact, and no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty
of

 

26

 

such fraudulent misrepresentation.  For purposes of this paragraph (d), each
person, if any, who controls a Participant within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act shall have
the same rights to contribution as the Participants, and each director of the
Issuers, each officer of the Issuers and each person, if any, who controls the
Issuers within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act, shall have the same rights to contribution as the Issuers.

 

8.                                       Rules 144 and 144A

 

The Issuers covenant and agree that they will file the reports required
to be filed by them under the Securities Act and the Exchange Act and the rules
and regulations adopted by the SEC thereunder in a timely manner in accordance
with the requirements of the Securities Act and the Exchange Act and, if at any
time the Company or any Guarantor is not required to file such reports, the
Company or such Guarantor, as the case may be, will, upon the request of any
Holder or beneficial owner of Registrable Notes, make available such
information necessary to permit sales pursuant to Rule 144A. The Issuers
further covenant and agree, for so long as any Registrable Notes remain
outstanding that they will take such further action as any Holder of
Registrable Notes may reasonably request, all to the extent required from time
to time to enable such holder to sell Registrable Notes without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144(k) under the Securities Act and Rule 144A.

 

9.                                       Underwritten Registrations

 

If any of the Registrable Notes covered by any Shelf Registration are
to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Holders of a majority in aggregate principal amount of such Registrable
Notes included in such offering and shall be reasonably acceptable to the
Company.

 

No Holder of Registrable Notes may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder’s
Registrable Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and
(b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents required under the
terms of such underwriting arrangements.

 

10.                                 Miscellaneous

 

(a)                                  No
Inconsistent Agreements.  None of
the Issuers has, as of the date hereof, and none of the Issuers shall, after
the date of this Agreement, enter into any agreement with respect to any of its
securities that conflicts with the rights granted to the Holders of Registrable
Notes in this Agreement or otherwise conflicts with the provisions hereof.  The

 

27

 

rights granted to the Holders hereunder do
not in any way conflict with and are not inconsistent with the rights granted
to the holders of the Issuers’ other issued and outstanding securities under
any such agreements.  None of the
Issuers will enter into any agreement with respect to any of their securities
that will grant to any Person piggy-back registration rights with respect to
any Registration Statement.

 

(b)                                 Adjustments
Affecting Registrable Notes.  The
Issuers shall not, directly or indirectly, take any action with respect to the
Registrable Notes as a class that would adversely affect the ability of the
Holders of Registrable Notes to include such Registrable Notes in a
registration undertaken pursuant to this Agreement.

 

(c)                                  Amendments
and Waivers.  The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, otherwise than with
the prior written consent of (I) the Issuers, and (II) (A) the
Holders of not less than a majority in aggregate principal amount of the then
outstanding Registrable Notes and (B) in circumstances that would
adversely affect the Participating Broker-Dealers, the Participating
Broker-Dealers holding not less than a majority in aggregate principal amount
of the Exchange Notes held by all Participating Broker-Dealers; provided,
however, that Section 7 and this Section 10(c) may not be
amended, modified or supplemented without the prior written consent of each
Holder and each Participating Broker-Dealer (including any person who was a
Holder or Participating Broker-Dealer of Registrable Notes or Exchange Notes,
as the case may be, disposed of pursuant to any Registration Statement)
affected by any such amendment, modification or supplement.  Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable Notes whose
securities are being sold pursuant to a Registration Statement and that does
not directly or indirectly affect, impair, limit or compromise the rights of
other Holders of Registrable Notes may be given by Holders of at least a
majority in aggregate principal amount of the Registrable Notes being sold pursuant
to such Registration Statement.

 

(d)                                 Notices.  All notices and other communications
(including, without limitation, any notices or other communications to the
Trustee) provided for or permitted hereunder shall be made in writing by
hand-delivery, registered first-class mail, next-day air courier or facsimile:

 

(i)                                     if to a Holder of
the Registrable Notes or any Participating Broker-Dealer, at the most current
address of such Holder or Participating Broker-Dealer, as the case may be, set
forth on the records of the registrar under the Indenture, with a copy in like
manner to the Initial Purchasers as follows:

 

28

 

Deutsche Bank Securities Inc.

31 West 52nd Street

New York, New York  10019

Facsimile No.:  (212) 797-4869

Attention:  Corporate Finance Department

 

with a copy to:

 

Cahill Gordon & Reindel LLP

80 Pine Street

New York, New York  10005

Facsimile No.:  (212) 269-5420 

Attention:  William M. Hartnett, Esq.

 

(ii)                                  if
to the Initial Purchasers, at the address specified in Section 10(d)(i);

 

(iii)                               if
to the Issuers, at the address as follows:

 

Omega Healthcare Investors, Inc.

9690 Deereco Road, Suite 100

Timonium, Maryland 21093

Facsimile No.:  (410) 427-8822

Attention: Robert O. Stephenson

 

with a copy to:

 

Powell, Goldstein, Frazer & Murphy LLP

191 Peachtree, N.E., 16th Floor

Atlanta, Georgia 30303

Facsimile No.:  (404) 572-6999

Attention: Richard H. Miller

 

All such notices and communications shall be deemed to have been duly
given:  when delivered by hand, if
personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; one Business Day after being timely delivered to a
next-day air courier; and upon written confirmation, if sent by facsimile.

 

Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the address
and in the manner specified in such Indenture.

 

(e)                                  Successors
and Assigns.  This Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each
of the parties hereto, the Holders and

 

29

 

the Participating Broker-Dealers; provided,
however, that nothing herein shall be deemed to permit any assignment,
transfer or other disposition of Registrable Notes in violation of the terms of
the Purchase Agreement or the Indenture.

 

(f)                                    Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

(g)                                 Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

(h)                                 Governing
Law.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
AS APPLIED TO CONTRACTS MADE AND PERFORMED ENTIRELY WITHIN THE STATE OF NEW
YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THAT WOULD REQUIRE THE
APPLICATION OF ANY OTHER LAW.

 

(i)                                     Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and
the parties hereto shall use their best efforts to find and employ an
alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may
be hereafter declared invalid, illegal, void or unenforceable.

 

(j)                                     Notes
Held by the Issuers or Their Affiliates. 
Whenever the consent or approval of Holders of a specified percentage of
Registrable Notes is required hereunder, Registrable Notes held by the Issuers
or their affiliates (as such term is defined in Rule 405 under the
Securities Act) shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

 

(k)                                  Third-Party
Beneficiaries.  Holders of
Registrable Notes and Participating Broker-Dealers are intended third-party
beneficiaries of this Agreement, and this Agreement may be enforced by such
Persons.

 

(l)                                     Entire
Agreement.  This Agreement, together
with the Purchase Agreement and the Indenture, is intended by the parties as a
final and exclusive statement of the agreement and understanding of the parties
hereto in respect of the subject matter

 

30

 

contained herein and therein and any and all
prior oral or written agreements, representations, or warranties, contracts,
understandings, correspondence, conversations and memoranda between the Holders
on the one hand and the Issuers on the other, or between or among any agents,
representatives, parents, subsidiaries, affiliates, predecessors in interest or
successors in interest with respect to the subject matter hereof and thereof
are merged herein and replaced hereby.

 

31

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

 

	
   

  	
  OMEGA HEALTHCARE INVESTORS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Taylor Pickett

  
	
   

  	
   

  	
  Name: C. Taylor Pickett

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BAYSIDE ALABAMA HEALTHCARE SECOND, INC.

  BAYSIDE ARIZONA HEALTHCARE ASSOCIATES, INC.

  BAYSIDE ARIZONA HEALTHCARE SECOND, INC.

  BAYSIDE COLORADO HEALTHCARE ASSOCIATES, INC.

  BAYSIDE COLORADO HEALTHCARE SECOND, INC.

  OHI (CONNECTICUT), INC.

  BAYSIDE STREET II, INC.

  OHI ASSET (CA), LLC

  OHI ASSET (FL) TARPON SPRINGS,

  PINELLAS PARK & GAINESVILLE, LLC

  OHI ASSET (FL), LLC

  OHI ASSET (ID), LLC

  OHI ASSET (IN), LLC

  OHI ASSET (LA), LLC

  as Subsidiary Guarantors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Taylor Pickett

  
	
   

  	
   

  	
  Name: C. Taylor Pickett

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  

 

 

	
   

  	
  OHI ASSET (MI/NC), LLC

  OHI ASSET (MO), LLC

  OHI ASSET (OH), LLC,OHI ASSET (TX), LLC

  OHI ASSET II (CA), LLC

  OHI ASSET, LLC

  OMEGA ACQUISITION FACILITY I, LLC

  OHI (FLORIDA), INC.

  OHI SUNSHINE, INC.

  LONG TERM CARE ASSOCIATES – ILLINOIS, INC.

  OHI (ILLINOIS), INC.

  SKILLED NURSING - HERRIN, INC.

  SKILLED NURSING - PARIS, INC.

  BAYSIDE INDIANA HEALTHCARE ASSOCIATES, INC.

  LONG TERM CARE ASSOCIATES – INDIANA, INC.

  OHI (INDIANA), INC.

  SKILLED NURSING - GASTON, INC.

  OHI (IOWA), INC.

  OHI (KANSAS), INC.

  OMEGA (KANSAS), INC.

  NRS VENTURES, LLC

  OS LEASING COMPANY

  STERLING ACQUISITION CORP.

  STERLING ACQUISITION CORP. II

  ARIZONA LESSOR - INFINIA, INC.

  BAYSIDE STREET, INC.

  COLORADO LESSOR - CONIFER, INC.

  DELTA INVESTORS I, LLC

  DELTA INVESTORS II, LLC

  FLORIDA LESSOR - CRYSTAL SPRINGS, INC. 

  as Subsidiary Guarantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Taylor Pickett

  
	
   

  	
   

  	
  Name: C. Taylor Pickett

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  

 

 

	
   

  	
  FLORIDA LESSOR - EMERALD, INC.

  FLORIDA LESSOR - FIVE FACILITIES, INC.

  FLORIDA LESSOR - LAKELAND, INC.

  FLORIDA LESSOR - MEADOWVIEW, INC.

  FLORIDA LESSOR - WEST PALM BEACH AND SOUTHPOINT, INC.

  GEORGIA LESSOR - BONTERRA/PARKVIEW, INC.

  INDIANA LESSOR - JEFFERSONVILLE, INC.

  INDIANA LESSOR - WELLINGTON MANOR, INC.

  JEFFERSON CLARK, INC.

  OHI LESSOR WATERFORD & CRESTWOOD, INC.

  OHI OF KENTUCKY, INC.

  OHI OF TEXAS, INC.

  OMEGA TRS I, INC.

  TEXAS LESSOR - STONEGATE GP, INC.

  TEXAS LESSOR - STONEGATE LIMITED, INC.

  TEXAS LESSOR - STONEGATE, L.P.

  TEXAS LESSOR - TREEMONT, INC.

  WASHINGTON LESSOR - SILVERDALE, INC.

  OHIMA, INC.

  LONG TERM CARE – MICHIGAN, INC.

  LONG TERM CARE – NORTH CAROLINA, INC.

  OHI (CLEMMONS), INC.

  OHI (GREENSBORO), INC.

  SKILLED NURSING - HICKSVILLE, INC.

  CENTER HEALTHCARE ASSOCIATES, INC.

  CHERRY STREET - SKILLED NURSING, INC. 

  as Subsidiary Guarantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Taylor Pickett

  
	
   

  	
   

  	
  Name: C. Taylor Pickett

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  

 

 

	
   

  	
  DALLAS SKILLED NURSING, INC.

  HERITAGE TEXARKANA HEALTHCARE ASSOCIATES, INC.

  LAKE PARK SKILLED NURSING, INC.

  LONG TERM CARE ASSOCIATES - TEXAS, INC.

  PARKVIEW - SKILLED NURSING, INC.

  PINE TEXARKANA HEALTHCARE ASSOCIATES, INC.

  REUNION TEXARKANA HEALTHCARE ASSOCIATES, INC.

  SAN AUGUSTINE HEALTHCARE ASSOCIATES, INC.

  SOUTH ATHENS HEALTHCARE ASSOCIATES, INC.

  WAXAHACHIE HEALTHCARE ASSOCIATES, INC.

  WEST ATHENS HEALTHCARE ASSOCIATES, INC. 

  as Subsidiary Guarantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Taylor Pickett

  
	
   

  	
   

  	
  Name: C. Taylor Pickett

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  

 

 

	
  The
  foregoing Agreement is hereby confirmed and accepted as of the date first
  above written.

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE
  BANK SECURITIES INC.,

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  UBS
  SECURITIES LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Michael
  F. Newcomb II

  	
   

  
	
   

  	
  Name:
  Michael F. Newcomb II

  	
   

  
	
   

  	
  Title:
  Executive Director, High Yield Capital Markets

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John C.
  Duggan

  	
   

  
	
   

  	
  Name: John
  C. Duggan

  	
   

  
	
   

  	
  Title:
  Executive Director, High Yield Capital Markets

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BANC OF
  AMERICA SECURITIES LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Bruce
  Thompson

  	
   

  
	
   

  	
  Name: Bruce
  Thompson

  	
   

  
	
   

  	
  Title:
  Managing Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]