Document:

exv4w1

 

Exhibit 4.1

EXECUTION COPY

VALMONT INDUSTRIES, INC.

as Issuer

THE SUBSIDIARY GUARANTORS NAMED HEREIN

as Guarantors

6 7/8% Senior Subordinated Notes due 2014

INDENTURE

Dated as of May 4, 2004

Wells Fargo Bank, National Association

as Trustee

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 
	TIA	 	Indenture
	Section
	 	Section

	310
	 	(a)(1)	 	7.10
	 
	 	(a)(2)	 	7.10
	 
	 	(a)(3)	 	N.A.
	 
	 	(a)(4)	 	N.A.
	 
	 	(b)	 	7.08; 7.10
	 
	 	(c)	 	N.A.
	311
	 	(a)	 	7.11
	 
	 	(b)	 	7.11
	 
	 	(c)	 	N.A.
	312
	 	(a)	 	2.05
	 
	 	(b)	 	13.03
	 
	 	(c)	 	13.03
	313
	 	(a)	 	7.06
	 
	 	(b)(1)	 	N.A.
	 
	 	(b)(2)	 	7.06
	 
	 	(c)	 	13.02
	 
	 	(d)	 	7.06
	314
	 	(a)	 	4.02; 4.10; 13.02
	 
	 	(b)	 	N.A.
	 
	 	(c)(1)	 	13.04
	 
	 	(c)(2)	 	13.04
	 
	 	(c)(3)	 	N.A.
	 
	 	(d)	 	N.A.
	 
	 	(e)	 	13.05
	 
	 	(f)	 	4.10
	315
	 	(a)	 	7.01
	 
	 	(b)	 	7.05; 13.02
	 
	 	(c)	 	7.01
	 
	 	(d)	 	7.01
	 
	 	(e)	 	6.11
	316
	 	(a)(last sentence)	 	13.0
	 
	 	(a)(1)(A)	 	6.05
	 
	 	(a)(1)(B)	 	6.04
	 
	 	(a)(2)	 	N.A.
	 
	 	(b)	 	6.07
	317
	 	(a)(1)	 	6.08
	 
	 	(a)(2)	 	6.09
	 
	 	(b)	 	2.04
	318
	 	(a)	 	13.01

	N.A. means Not Applicable.
	 
	This Cross-Reference Table shall not, for any purpose, be deemed to be part of
the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page

	Article 1
	Definitions and Incorporation by Reference
	SECTION 1.01.	 	Definitions
	 	 	1	 
	SECTION 1.02.	 	Other Definitions
	 	 	24	 
	SECTION 1.03.	 	Incorporation by Reference of Trust Indenture Act
	 	 	24	 
	SECTION 1.04.	 	Rules of Construction
	 	 	25	 
	Article 2
	The Securities
	SECTION 2.01.	 	Form and Dating
	 	 	26	 
	SECTION 2.02.	 	Execution and Authentication
	 	 	26	 
	SECTION 2.03.	 	Registrar and Paying Agent
	 	 	26	 
	SECTION 2.04.	 	Paying Agent To Hold Money in Trust
	 	 	27	 
	SECTION 2.05.	 	Securityholder Lists
	 	 	27	 
	SECTION 2.06.	 	Transfer and Exchange
	 	 	27	 
	SECTION 2.07.	 	Replacement Securities
	 	 	27	 
	SECTION 2.08.	 	Outstanding Securities
	 	 	28	 
	SECTION 2.09.	 	Temporary Securities
	 	 	28	 
	SECTION 2.10.	 	Cancellation
	 	 	28	 
	SECTION 2.11.	 	Defaulted Interest
	 	 	29	 
	SECTION 2.12.	 	CUSIP Numbers
	 	 	29	 
	SECTION 2.13.	 	Issuance of Additional Securities
	 	 	29	 
	Article 3
	Redemption
	SECTION 3.01.	 	Notices to Trustee
	 	 	30	 
	SECTION 3.02.	 	Selection of Securities to Be Redeemed
	 	 	30	 
	SECTION 3.03.	 	Notice of Redemption
	 	 	30	 
	SECTION 3.04.	 	Effect of Notice of Redemption
	 	 	31	 
	SECTION 3.05.	 	Deposit of Redemption Price
	 	 	31	 
	SECTION 3.06.	 	Securities Redeemed in Part
	 	 	31	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page

	Article 4
	Covenants
	SECTION 4.01.	 	Payment of Securities
	 	 	32	 
	SECTION 4.02.	 	SEC Reports
	 	 	32	 
	SECTION 4.03.	 	Limitation on Indebtedness
	 	 	33	 
	SECTION 4.04.	 	Limitation on Restricted Payments
	 	 	36	 
	SECTION 4.05.	 	Limitation on Restrictions on Distributions from
Restricted Subsidiaries
	 	 	39	 
	SECTION 4.06.	 	Limitation on Sales of Assets and Subsidiary Stock
	 	 	41	 
	SECTION 4.07.	 	Limitation on Affiliate Transactions
	 	 	44	 
	SECTION 4.08.	 	Limitation on Line of Business
	 	 	46	 
	SECTION 4.09.	 	Limitation on the Sale or Issuance of Capital
Stock of Restricted Subsidiaries
	 	 	46	 
	SECTION 4.10.	 	Change of Control
	 	 	46	 
	SECTION 4.11.	 	Future Guarantors
	 	 	48	 
	SECTION 4.12.	 	Compliance Certificate
	 	 	48	 
	SECTION 4.13.	 	Further Instruments and Acts
	 	 	48	 
	Article 5
	Successor Company
	SECTION 5.01.	 	When Company May Merge or Transfer Assets
	 	 	49	 
	Article 6
	Defaults and Remedies
	SECTION 6.01.	 	Events of Default
	 	 	51	 
	SECTION 6.02.	 	Acceleration
	 	 	53	 
	SECTION 6.03.	 	Other Remedies
	 	 	53	 
	SECTION 6.04.	 	Waiver of Past Defaults
	 	 	53	 
	SECTION 6.05.	 	Control by Majority
	 	 	53	 
	SECTION 6.06.	 	Limitation on Suits
	 	 	54	 
	SECTION 6.07.	 	Rights of Holders to Receive Payment
	 	 	54	 
	SECTION 6.08.	 	Collection Suit by Trustee
	 	 	54	 
	SECTION 6.09.	 	Trustee May File Proofs of Claim
	 	 	55	 
	SECTION 6.10.	 	Priorities
	 	 	55	 
	SECTION 6.11.	 	Undertaking for Costs
	 	 	55	 
	SECTION 6.12.	 	Waiver of Stay or Extension Laws
	 	 	56	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page

	Article 7
	Trustee
	SECTION 7.01.	 	Duties of Trustee
	 	 	56	 
	SECTION 7.02.	 	Rights of Trustee
	 	 	57	 
	SECTION 7.03.	 	Individual Rights of Trustee
	 	 	57	 
	SECTION 7.04.	 	Trustee’s Disclaimer
	 	 	58	 
	SECTION 7.05.	 	Notice of Defaults
	 	 	58	 
	SECTION 7.06.	 	Reports by Trustee to Holders
	 	 	58	 
	SECTION 7.07.	 	Compensation and Indemnity
	 	 	58	 
	SECTION 7.08.	 	Replacement of Trustee
	 	 	59	 
	SECTION 7.09.	 	Successor Trustee by Merger
	 	 	60	 
	SECTION 7.10.	 	Eligibility; Disqualification
	 	 	60	 
	SECTION 7.11.	 	Preferential Collection of Claims Against Company
	 	 	60	 
	Article 8
	Discharge of Indenture; Defeasance
	SECTION 8.01.	 	Discharge of Liability on Securities; Defeasance
	 	 	61	 
	SECTION 8.02.	 	Conditions to Defeasance
	 	 	62	 
	SECTION 8.03.	 	Application of Trust Money
	 	 	63	 
	SECTION 8.04.	 	Repayment to Company
	 	 	63	 
	SECTION 8.05.	 	Indemnity for Government Obligations
	 	 	63	 
	SECTION 8.06.	 	Reinstatement
	 	 	63	 
	Article 9
	Amendments
	SECTION 9.01.	 	Without Consent of Holders
	 	 	64	 
	SECTION 9.02.	 	With Consent of Holders
	 	 	65	 
	SECTION 9.03.	 	Compliance with Trust Indenture Act
	 	 	66	 
	SECTION 9.04.	 	Revocation and Effect of Consents and Waivers
	 	 	66	 
	SECTION 9.05.	 	Notation on or Exchange of Securities
	 	 	66	 
	SECTION 9.06.	 	Trustee To Sign Amendments
	 	 	66	 
	SECTION 9.07.	 	Payment for Consent
	 	 	67	 
	Article 10
	Subordination
	SECTION 10.01.	 	Agreement To Subordinate
	 	 	67	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page

	SECTION 10.02.	 	Liquidation, Dissolution, Bankruptcy
	 	 	67	 
	SECTION 10.03.	 	Default on Senior Indebtedness of the Company
	 	 	67	 
	SECTION 10.04.	 	Acceleration of Payment of Securities
	 	 	68	 
	SECTION 10.05.	 	When Distribution Must Be Paid Over
	 	 	69	 
	SECTION 10.06.	 	Subrogation
	 	 	69	 
	SECTION 10.07.	 	Relative Rights
	 	 	69	 
	SECTION 10.08.	 	Subordination May Not Be Impaired by Company
	 	 	69	 
	SECTION 10.09.	 	Rights of Trustee and Paying Agent
	 	 	69	 
	SECTION 10.10.	 	Distribution or Notice to Representative
	 	 	70	 
	SECTION 10.11.	 	Article 10 Not To Prevent Events of Default or
Limit Right To Accelerate
	 	 	70	 
	SECTION 10.12.	 	Trust Moneys Not Subordinated
	 	 	70	 
	SECTION 10.13.	 	Trustee Entitled To Rely
	 	 	70	 
	SECTION 10.14.	 	Trustee To Effectuate Subordination
	 	 	71	 
	SECTION 10.15.	 	Trustee Not Fiduciary for Holders of Senior
Indebtedness of the Company
	 	 	71	 
	SECTION 10.16.	 	Reliance by Holders of Senior Indebtedness of the
Company on Subordination Provisions
	 	 	71	 
	Article 11
	Subsidiary Guaranties
	SECTION 11.01.	 	Guaranties
	 	 	71	 
	SECTION 11.02.	 	Limitation on Liability
	 	 	73	 
	SECTION 11.03.	 	Successors and Assigns
	 	 	73	 
	SECTION 11.04.	 	No Waiver
	 	 	73	 
	SECTION 11.05.	 	Modification
	 	 	74	 
	SECTION 11.06.	 	Release of Subsidiary Guarantor
	 	 	74	 
	SECTION 11.07.	 	Contribution
	 	 	75	 
	Article 12
	Subordination of Subsidiary Guaranties
	SECTION 12.01.	 	Agreement To Subordinate
	 	 	75	 
	SECTION 12.02.	 	Liquidation, Dissolution, Bankruptcy
	 	 	75	 
	SECTION 12.03.	 	Default on Senior Indebtedness of Subsidiary
Guarantor
	 	 	76	 
	SECTION 12.04.	 	Demand for Payment
	 	 	77	 
	SECTION 12.05.	 	When Distribution Must Be Paid Over
	 	 	77	 
	SECTION 12.06.	 	Subrogation
	 	 	77	 
	SECTION 12.07.	 	Relative Rights
	 	 	77	 
	SECTION 12.08.	 	Subordination May Not Be Impaired by Company
	 	 	77	 
	SECTION 12.09.	 	Rights of Trustee and Paying Agent
	 	 	77	 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	Page

	SECTION 12.10.	 	Distribution or Notice to Representative
	 	 	78	 
	SECTION 12.11.	 	Article 12 Not To Prevent Events of Default or
Limit Right To Demand Payment
	 	 	78	 
	SECTION 12.12.	 	Trustee Entitled To Rely
	 	 	78	 
	SECTION 12.13.	 	Trustee To Effectuate Subordination
	 	 	79	 
	SECTION 12.14.	 	Trustee Not Fiduciary for Holders of Senior
Indebtedness of Subsidiary Guarantor
	 	 	79	 
	SECTION 12.15.	 	Reliance by Holders of Senior Indebtedness of
Subsidiary Guarantors on Subordination Provisions
	 	 	79	 
	Article 13
	Miscellaneous
	SECTION 13.01.	 	Trust Indenture Act Controls
	 	 	80	 
	SECTION 13.02.	 	Notices
	 	 	80	 
	SECTION 13.03.	 	Communication by Holders with Other Holders
	 	 	81	 
	SECTION 13.04.	 	Certificate and Opinion as to Conditions Precedent
	 	 	81	 
	SECTION 13.05.	 	Statements Required in Certificate or Opinion
	 	 	81	 
	SECTION 13.06.	 	When Securities Disregarded
	 	 	81	 
	SECTION 13.07.	 	Rules by Trustee, Paying Agent and Registrar
	 	 	82	 
	SECTION 13.08.	 	Legal Holidays
	 	 	82	 
	SECTION 13.09.	 	Governing Law
	 	 	82	 
	SECTION 13.10.	 	No Recourse Against Others
	 	 	82	 
	SECTION 13.11.	 	Successors
	 	 	82	 
	SECTION 13.12.	 	Multiple Originals
	 	 	82	 
	SECTION 13.13.	 	Table of Contents; Headings
	 	 	82	 

Rule 144A / Regulation S / IAI Appendix

	 	 	 	 	 
	

	 	Exhibit 1 –
	 	Form of Initial Security
	 
	 	 	 	 
	

	 	Exhibit A –
	 	Form of Exchange Security or Private Exchange Security
	 
	 	 	 	 
	

	 	Exhibit 2 –
	 	Form of Transferee Letter of Representation

v

 

     INDENTURE dated as of May 4, 2004, among VALMONT
INDUSTRIES, INC., a Delaware corporation (the
“Company”), the SUBSIDIARY GUARANTORS from time to time
party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION,
a national banking association (the “Trustee”).

          Each party agrees as follows for the benefit of the other parties and for
the equal and ratable benefit of the Holders of the Company’s Initial
Securities, Exchange Securities and Private Exchange Securities (collectively,
the “Securities”):

Article 1

Definitions and Incorporation by Reference

          SECTION 1.01. Definitions.

          “Additional Assets” means (1) any property, plant or equipment used in a
Related Business; (2) the Capital Stock of a Person that becomes a Restricted
Subsidiary as a result of the acquisition of such Capital Stock by the Company
or another Restricted Subsidiary; or (3) Capital Stock constituting a minority
interest in any Person that at such time is a Restricted Subsidiary; provided,
however, that any such Restricted Subsidiary described in clause (2) or (3)
above is primarily engaged in a Related Business.

          “Additional Securities” means Securities issued under this Indenture after
the Issue Date and in compliance with Section 2.13 and 4.03, it being
understood that any Securities issued in exchange for or replacement of any
Initial Security issued on the Issue Date shall not be an Additional Security,
including any such Securities issued pursuant to a Registration Rights
Agreement.

          “Affiliate” of any specified Person means any other Person, directly or
indirectly, controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
“control” when used with respect to any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing. A
Person shall not be deemed to be an “Affiliate” of the Company or any of its
Restricted Subsidiaries solely as a result of a director of the Company also
serving as a director or executive officer of such Person. For purposes of
Sections 4.04, 4.06 and 4.07 only, “Affiliate” shall also mean any beneficial
owner of Capital Stock representing 5% or more of the total voting power of the
Voting Stock (on a fully diluted basis) of the Company or of rights or warrants
to purchase such Capital Stock (whether or not currently exercisable) and any
Person who would be an Affiliate of any such beneficial owner pursuant to the
first sentence of this definition.

 

 

          “Asset Disposition” means any sale, lease, transfer or other disposition
(or series of related sales, leases, transfers or dispositions that are part of
a common plan) by the Company or any Restricted Subsidiary, including any
disposition by means of a merger, consolidation or similar transaction (each
referred to for the purposes of this definition as a “disposition”), of:

   (1) any shares of Capital Stock of a Restricted Subsidiary (other
than directors’ qualifying shares or shares required by applicable law
to be held by a Person other than the Company or a Restricted
Subsidiary);

   (2) all or substantially all the assets of any division or line of
business of the Company or any Restricted Subsidiary; or

   (3) any other assets of the Company or any Restricted
Subsidiary outside of the ordinary course of business of the Company
or such Restricted Subsidiary

other than, in the case of clauses (1), (2) and (3) above, (A) a disposition by
a Restricted Subsidiary to the Company or by the Company or a Restricted
Subsidiary to a Wholly Owned Subsidiary; (B) for purposes of Section 4.06 only,
(i) a disposition that constitutes a Restricted Payment (or would constitute a
Restricted Payment but for the exclusions from the definition thereof) and that
is not prohibited by Section 4.04 and (ii) a disposition of all or
substantially all the assets of the Company in accordance with Section 5.01;
(C) a disposition of assets with a fair market value of less than $1.0 million;
(D) a disposition of cash or Temporary Cash Investments; (E) the creation of a
Lien (but not the sale or other disposition of the property subject to such
Lien); and (F) a disposition of obsolete or damaged equipment or property.

          “Attributable Debt” in respect of a Sale/Leaseback Transaction means, as
at the time of determination, the present value (discounted at the interest
rate borne by the Securities, compounded annually) of the total obligations of
the lessee for rental payments during the remaining term of the lease included
in such Sale/Leaseback Transaction (including any period for which such lease
has been extended); provided, however, that if such Sale/Leaseback Transaction
results in a Capital Lease Obligation, the amount of Indebtedness represented
thereby will be determined in accordance with the definition of “Capital Lease
Obligation”.

          “Average Life” means, as of the date of determination, with respect to any
Indebtedness, the quotient obtained by dividing (1) the sum of the products of
the numbers of years from the date of determination to the dates of each
successive scheduled principal payment of or redemption or similar payment with
respect to such Indebtedness multiplied by the amount of such payment by (2)
the sum of all such payments.

          “Bank Indebtedness” means all Obligations pursuant to the Credit
Agreement.

2

 

          “Board of Directors” means the Board of Directors of the Company or any
committee thereof duly authorized to act on behalf of such Board of Directors.

          “Business Day” means each day which is not a Legal Holiday.

          “Capital Lease Obligation” means an obligation that is required to be
classified and accounted for as a capital lease for financial reporting
purposes in accordance with GAAP, and the amount of Indebtedness represented
by such obligation shall be the capitalized amount of such obligation
determined in accordance with GAAP; and the Stated Maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease
prior to the first date upon which such lease may be terminated by the lessee
without payment of a penalty.

          “Capital Stock” of any Person means any and all shares, interests
(including partnership interests), rights to purchase, warrants, options,
participations or other equivalents of or interests in (however designated)
equity of such Person, including any Preferred Stock, but excluding any debt
securities convertible into such equity.

          “Change of Control” means the occurrence of any of the following
events:

   (1) any “person” (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act), other than one or more Permitted Holders, is or
becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that for purposes of this clause (1) such person
shall be deemed to have “beneficial ownership” of all shares that any
such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly,
of more than 35% of the total voting power of the Voting Stock of the
Company; provided, however, that the Permitted Holders beneficially own
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, in the aggregate a lesser percentage of the total voting
power of the Voting Stock of the Company than such other person and do
not have the right or ability by voting power, contract or otherwise to
elect or designate for election a majority of the Board of Directors (for
the purposes of this clause (1), such other person shall be deemed to
beneficially own any Voting Stock of a Person (the “specified person”)
held by any other Person (the “parent entity”), if such other person is
the beneficial owner (as defined above in this clause (1)), directly or
indirectly, of more than 35% of the voting power of the Voting Stock of
such parent entity and the Permitted Holders beneficially own (as defined
in this proviso), directly or indirectly, in the aggregate a lesser
percentage of the voting power of the Voting Stock of such parent entity
and do not have the right or ability by voting power, contract or
otherwise to elect or designate for election a majority of the board of
directors of such parent entity);

   (2) individuals who on the Issue Date constituted the Board of
Directors (together with any new directors whose election by such Board
of Directors or
whose nomination for election by the shareholders of the Company
was approved by a vote of a majority of the directors of the Company
then still in

3

 

office who were either directors on the Issue Date or whose election
or nomination for election was previously so approved) cease for any
reason to constitute a majority of the Board of Directors then in
office;

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

   (4) the merger or consolidation of the Company with or into another
Person or the merger of another Person with or into the Company, or the
sale of all or substantially all the assets of the Company (determined on
a consolidated basis) to another Person other than (A) a transaction in
which the survivor or transferee is a Person that is controlled by the
Permitted Holders or (B) a transaction following which (i) in the case of
a merger or consolidation transaction, holders of securities that
represented 100% of the Voting Stock of the Company immediately prior to
such transaction (or other securities into which such securities are
converted as part of such merger or consolidation transaction) own
directly or indirectly at least a majority of the voting power of the
Voting Stock of the surviving Person in such merger or consolidation
transaction immediately after such transaction and in substantially the
same proportion as before the transaction and (ii) in the case of a sale
of assets transaction, each transferee becomes an obligor in respect of
the Securities and a Subsidiary of the transferor of such assets.

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

          “Company” means the party named as such in this Indenture until a
successor replaces it and, thereafter, means the successor and, for purposes
of any provision contained herein and required by the TIA, each other obligor
on the Securities.

          “Commodity Price Protection Agreement” means, with respect to any Person,
any forward contract, commodity swap, commodity option or other similar
agreement or arrangement entered into with respect to fluctuations in
commodity prices.

          “Consolidated Coverage Ratio” as of any date of determination means the
ratio of

   (a) the aggregate amount of EBITDA for the period of the most
recent four consecutive fiscal quarters ending prior to the date of such
determination for which internal financial statements are available to

   (b) Consolidated Interest Expense for such four fiscal quarters;

provided, however, that:

   (1) if the Company or any Restricted Subsidiary has Incurred any
Indebtedness since the beginning of such period that remains outstanding
or if the
transaction giving rise to the need to calculate the Consolidated
Coverage Ratio is an Incurrence of Indebtedness, or both, EBITDA and
Consolidated Interest

4

 

Expense for such period shall be calculated after giving effect on a
pro forma basis to such Indebtedness as if such Indebtedness had been
Incurred on the first day of such period;

   (2) if the Company or any Restricted Subsidiary has repaid,
repurchased, defeased or otherwise discharged any Indebtedness since the
beginning of such period or if any Indebtedness is to be repaid,
repurchased, defeased or otherwise discharged (in each case other than
Indebtedness Incurred under any revolving credit facility unless such
Indebtedness has been permanently repaid and has not been replaced) on
the date of the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense for
such period shall be calculated on a pro forma basis as if such discharge
had occurred on the first day of such period and as if the Company or
such Restricted Subsidiary had not earned the interest income actually
earned during such period in respect of cash or Temporary Cash
Investments used to repay, repurchase, defease or otherwise discharge
such Indebtedness;

   (3) if since the beginning of such period the Company or any
Restricted Subsidiary shall have made any Asset Disposition, EBITDA for
such period shall be reduced by an amount equal to EBITDA (if positive)
directly attributable to the assets which are the subject of such Asset
Disposition for such period, or increased by an amount equal to EBITDA
(if negative), directly attributable thereto for such period and
Consolidated Interest Expense for such period shall be reduced by an
amount equal to the Consolidated Interest Expense directly attributable
to any Indebtedness of the Company or any Restricted Subsidiary repaid,
repurchased, defeased or otherwise discharged with respect to the
Company and its continuing Restricted Subsidiaries in connection with
such Asset Disposition for such period (or, if the Capital Stock of any
Restricted Subsidiary is sold, the Consolidated Interest Expense for
such period directly attributable to the Indebtedness of such Restricted
Subsidiary to the extent the Company and its continuing Restricted
Subsidiaries are no longer liable for such Indebtedness after such
sale);

   (4) if since the beginning of such period the Company or any
Restricted Subsidiary (by merger or otherwise) shall have made an
Investment in any Restricted Subsidiary (or any Person which becomes a
Restricted Subsidiary) or an acquisition of assets, including any
acquisition of assets occurring in connection with a transaction
requiring a calculation to be made hereunder, which constitutes all or
substantially all of an operating unit of a business, EBITDA and
Consolidated Interest Expense for such period shall be calculated after
giving pro forma effect thereto (including the Incurrence of any
Indebtedness) as if such Investment or acquisition had occurred on the
first day of such period; and

   (5) if since the beginning of such period any Person (that
subsequently became a Restricted Subsidiary or was merged with or into
the Company or any Restricted Subsidiary since the beginning of such
period) shall have made any Asset Disposition, any Investment or
acquisition of assets that would have

5

 

required an adjustment pursuant to clause (3) or (4) above if made by
the Company or a Restricted Subsidiary during such period, EBITDA and
Consolidated Interest Expense for such period shall be calculated after
giving pro forma effect thereto as if such Asset Disposition, Investment
or acquisition had occurred on the first day of such period.

For purposes of this definition, whenever pro forma effect is to be given to an
acquisition of assets, the amount of income or earnings relating thereto and
the amount of Consolidated Interest Expense associated with any Indebtedness
Incurred in connection therewith, the pro forma calculations shall be
determined in good faith by a responsible financial or accounting Officer of
the Company. If any Indebtedness bears a floating rate of interest and is being
given pro forma effect, the interest on such Indebtedness shall be calculated
as if the rate in effect on the date of determination had been the applicable
rate for the entire period (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). If any Indebtedness is Incurred under a revolving
credit facility and is being given pro forma effect, the interest on such
Indebtedness shall be calculated based on the average daily balance of such
Indebtedness for the four fiscal quarters subject to the pro forma calculation
to the extent that such Indebtedness was Incurred solely for working capital
purposes.

          “Consolidated Interest Expense” means, for any period, the total interest
expense of the Company and its consolidated Restricted Subsidiaries, plus, to
the extent not included in such total interest expense, and to the extent
incurred by the Company or its Restricted Subsidiaries, without duplication,

   (1) interest expense attributable to Capital Lease
Obligations;

   (2) amortization of debt discount and debt
issuance cost;

   (3) capitalized interest;

   (4) non-cash
interest expense;

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

   (6) net payments pursuant to Hedging Obligations;

   (7) dividends accrued in respect of all Preferred Stock held by
Persons other than the Company or a Wholly Owned Subsidiary (other than
dividends payable solely in Capital Stock (other than Disqualified Stock)
of the Company); provided, however, that such dividends will be
multiplied by a fraction the numerator of which is one and the
denominator of which is one minus the effective combined tax rate of the
issuer of such Preferred Stock (expressed as a decimal) for such period
(as estimated by the chief financial officer of the Company in good
faith);

6

 

   (8) interest incurred in connection with Investments in
discontinued operations;

   (9) interest accruing on any Indebtedness of any other Person to
the extent such Indebtedness is Guaranteed by (or secured by the
assets of) the Company or any Restricted Subsidiary; and

   (10) the cash contributions to any employee stock ownership plan or
similar trust to the extent such contributions are used by such plan or
trust to pay interest or fees to any Person (other than the Company) in
connection with Indebtedness Incurred by such plan or trust.

          “Consolidated Net Income” means, for any period, the net income of the
Company and its consolidated Subsidiaries; provided, however, that there
shall not be included in such Consolidated Net Income:

   (1) any net income of any Person (other than the Company) if
such Person is not a Restricted Subsidiary, except that:

    (A) subject to the exclusion contained in clause (4) below,
the Company’s equity in the net income of any such Person for such
period shall be included in such Consolidated Net Income up to the
aggregate amount of cash actually distributed by such Person
during such period to the Company or a Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend
or other distribution paid to a Restricted Subsidiary, to the
limitations contained in clause (3) below); and

    (B) the Company’s equity in a net loss of any such Person
for such period shall be included in determining such
Consolidated Net Income;

   (2) any net income (or loss) of any Person acquired by the Company
or a Subsidiary in a pooling of interests transaction (or any transaction
accounted for in a manner similar to a pooling of interests) for any
period prior to the date of such acquisition;

   (3) any net income of any Restricted Subsidiary if such Restricted
Subsidiary is subject to restrictions, directly or indirectly, on the
payment of dividends or the making of distributions by such Restricted
Subsidiary, directly or indirectly, to the Company, except that:

    (A) subject to the exclusion contained in clause (4) below,
the Company’s equity in the net income of any such Restricted
Subsidiary for such period shall be included in such Consolidated
Net Income up to the
aggregate amount of cash actually distributed by such
Restricted Subsidiary during such period to the Company or
another Restricted Subsidiary as a dividend or other distribution
(subject, in the case of a

7

 

dividend or other distribution paid to another Restricted
Subsidiary, to the limitation contained in this clause); and

    (B) the Company’s equity in a net loss of any such
Restricted Subsidiary for such period shall be included in
determining such Consolidated Net Income;

   (4) any gain (or loss) realized upon the sale or other disposition
of any assets of the Company, its consolidated Subsidiaries or any other
Person (including pursuant to any sale-and-leaseback arrangement) which
are not sold or otherwise disposed of in the ordinary course of business
and any gain (or loss) realized upon the sale or other disposition of
any Capital Stock of any Person;

   (5) extraordinary gains or losses; and

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

in each case, for such period. Notwithstanding the foregoing, for the purpose
of Section 4.04 only, there shall be excluded from Consolidated Net Income any
repurchases, repayments or redemptions of Investments, proceeds realized on
the sale of Investments or return of capital to the Company or a Restricted
Subsidiary to the extent such repurchases, repayments, redemptions, proceeds
or returns increase the amount of Restricted Payments permitted under such
Section pursuant to Section 4.04(a)(3)(D).

          “Credit Agreement” means the Credit Agreement to be entered into by and
among the Company, certain of its Subsidiaries, the lenders referred to
therein, The Bank of New York, as Administrative Agent, and Wachovia Capital
Markets LLC, as Syndication Agent, together with the related documents thereto
(including the term loans and revolving loans thereunder, any guarantees and
security documents), as amended, extended, renewed, restated, supplemented or
otherwise modified (in whole or in part, and without limitation as to amount,
terms, conditions, covenants and other provisions) from time to time, and any
agreement (and related document) governing Indebtedness incurred to Refinance,
in whole or in part, the borrowings and commitments then outstanding or
permitted to be outstanding under such Credit Agreement or a successor Credit
Agreement, whether by the same or any other lender or group of lenders.

          “Currency Agreement” means any foreign exchange contract, currency swap
agreement or other similar agreement with respect to currency values.

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

          “Designated Senior Indebtedness”, with respect to a Person, means (1) the
Bank Indebtedness and (2) any other Senior Indebtedness of such Person which,
at the
date of determination, has an aggregate principal amount outstanding of,
or under which, at the date of determination, the holders thereof are
committed to lend up to, at least $25.0 million and is specifically designated
by such Person in the instrument evidencing

8

 

or governing such Senior Indebtedness as “Designated Senior Indebtedness” for
purposes of this Indenture.

          “Disqualified Stock” means, with respect to any Person, any Capital Stock
which by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder) or
upon the happening of any event:

   (1) matures or is mandatorily redeemable (other than redeemable
only for Capital Stock of such Person which is not itself Disqualified
Stock) pursuant to a sinking fund obligation or otherwise;

   (2) is convertible or exchangeable at the option of the holder
for Indebtedness or Disqualified Stock; or

   (3) is mandatorily redeemable or must be purchased upon the
occurrence of certain events or otherwise, in whole or in part;

in each case on or prior to the first anniversary of the Stated Maturity of
the Securities; 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 purchase or redeem such Capital
Stock upon the occurrence of an “asset sale” or “change of control” occurring
prior to the first anniversary of the Stated Maturity of the Securities shall
not constitute Disqualified Stock if (1) the “asset sale” or “change of
control” provisions applicable to such Capital Stock are not more favorable to
the holders of such Capital Stock than the terms applicable to the Securities
in Sections 4.06 and 4.10 of this Indenture and (2) any such requirement only
becomes operative after compliance with such terms applicable to the
Securities, including the purchase of any Securities tendered pursuant
thereto.

          The amount of any Disqualified Stock that does not have a fixed
redemption, repayment or repurchase price will be calculated in accordance
with the terms of such Disqualified Stock as if such Disqualified Stock were
redeemed, repaid or repurchased on any date on which the amount of such
Disqualified Stock is to be determined pursuant to this Indenture; provided,
however, that if such Disqualified Stock could not be required to be redeemed,
repaid or repurchased at the time of such determination, the redemption,
repayment or repurchase price will be the book value of such Disqualified
Stock as reflected in the most recent financial statements of such Person.

          “EBITDA” for any period means the sum of Consolidated Net Income, plus
the following, without duplication, to the extent deducted in calculating
such Consolidated Net Income:

   (1) all income tax expense of the Company and its
consolidated Restricted Subsidiaries;

   (2) Consolidated Interest Expense;

9

 

   (3) depreciation and amortization expense of the Company and its
consolidated Restricted Subsidiaries (excluding amortization expense
attributable to a prepaid operating activity item that was paid in cash
in a prior period);

   (4) all other non-cash charges of the Company and its consolidated
Restricted Subsidiaries (excluding any such non-cash charge to the
extent that it represents an accrual of or reserve for cash
expenditures in any future period);

   (5) any fees, charges or other expenses made or incurred in
connection with the Transactions, in an aggregate amount not to exceed
$5.0 million; and

   (6) any non-cash expenses attributable to grants or exercises
of employee stock options or equity compensation arrangements;

in each case for such period. Notwithstanding the foregoing, the provision for
taxes based on the income or profits of, and the depreciation and amortization
and non-cash charges of, a Restricted Subsidiary shall be added to
Consolidated Net Income to compute EBITDA only to the extent (and in the same
proportion, including by reason of minority interests) that the net income or
loss of such Restricted Subsidiary was included in calculating Consolidated
Net Income and only if a corresponding amount would be permitted at the date
of determination to be dividended to the Company by such Restricted Subsidiary
without prior approval (that has not been obtained), pursuant to the terms of
its charter and all agreements, instruments, judgments, decrees, orders,
statutes, rules and governmental regulations applicable to such Restricted
Subsidiary or its stockholders.

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

          “Foreign Subsidiary” means any Restricted Subsidiary of the Company that
is not organized under the laws of the United States of America or any State
thereof or the District of Columbia.

          “GAAP” means generally accepted accounting principles in the United
States of America as in effect as of the Issue Date, including those set
forth in:

   (1) the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants;

   (2) statements and pronouncements of the Financial Accounting
Standards Board;

   (3) such other statements by such other entity as approved by
a significant segment of the accounting profession; and

   (4) the rules and regulations of the SEC governing the inclusion of
financial statements (including pro forma financial statements) in
periodic reports required to be filed pursuant to Section 13 of the
Exchange Act, including

10

 

opinions and pronouncements in staff accounting bulletins and similar
written statements from the accounting staff of the SEC. All ratios and
computations based on GAAP contained in this Indenture shall be computed
in conformity with GAAP.

          “Guarantee” means any obligation, contingent or otherwise, of any Person
directly or indirectly guaranteeing any Indebtedness of any Person and 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 Person (whether arising by
virtue of partnership arrangements, or by agreements to keep-well, to
purchase assets, goods, securities or services, to take-or-pay or to
maintain financial statement conditions or otherwise); or

   (2) entered into for the purpose 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. The term “Guarantor”
shall mean any Person Guaranteeing any obligation.

          “Guaranty Agreement” means a supplemental indenture, in a form
satisfactory to the Trustee, pursuant to which a Subsidiary Guarantor
guarantees the Company’s obligations with respect to the Securities on the
terms provided for in this Indenture.

          “Hedging Obligations” of any Person means the obligations of such
Person pursuant to any Interest Rate Agreement, Currency Agreement or
Commodity Price Protection Agreement.

          “Holder” or “Securityholder” means the Person in whose name a Security is
registered on the Registrar’s books.

          “Incur” means issue, assume, Guarantee, incur or otherwise become liable
for; provided, however, that any Indebtedness of a Person existing at the time
such Person becomes a Restricted Subsidiary (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be Incurred by such Person at the
time it becomes a Restricted Subsidiary. The term “Incurrence” when used as a
noun shall have a correlative meaning. Solely for purposes of determining
compliance with Section 4.03:

   (1) amortization of debt discount or the accretion of principal
with respect to a non-interest bearing or other discount security;

   (2) the payment of regularly scheduled interest in the form of
additional Indebtedness of the same instrument or the payment of
regularly

11

 

scheduled dividends on Capital Stock in the form of additional Capital
Stock of the same class and with the same terms; and

   (3) the obligation to pay a premium in respect of Indebtedness
arising in connection with the issuance of a notice of redemption or the
making of a mandatory offer to purchase such Indebtedness,

shall not be deemed to be the Incurrence of Indebtedness.

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

   (1) the principal in respect of (A) indebtedness of such Person
for money borrowed and (B) indebtedness evidenced by notes, debentures,
bonds or other similar instruments for the payment of which such Person
is responsible or liable, including, in each case, any premium on such
indebtedness to the extent such premium has become due and payable;

   (2) all Capital Lease Obligations of such Person and all
Attributable Debt in respect of Sale/Leaseback Transactions entered
into by such Person;

   (3) all obligations of such Person issued or assumed as the
deferred purchase price of property, all conditional sale obligations of
such Person and all obligations of such Person under any title retention
agreement (but excluding trade accounts payable arising in the ordinary
course of business);

   (4) all obligations of such Person for the reimbursement of any
obligor on any letter of credit, bankers’ acceptance or similar credit
transaction (other than obligations with respect to letters of credit
securing obligations (other than obligations described in clauses (1)
through (3) above) entered into in the ordinary course of business of
such Person to the extent such letters of credit are not drawn upon or,
if and to the extent drawn upon, such drawing is reimbursed no later than
the tenth Business Day following payment on the letter of credit);

   (5) the amount of all obligations of such Person with respect to
the redemption, repayment or other repurchase of any Disqualified Stock
of such Person or, with respect to any Preferred Stock of any Subsidiary
of such Person, the principal amount of such Preferred Stock to be
determined in accordance with this Indenture (but excluding, in each
case, any accrued dividends);

   (6) all obligations of the type referred to in clauses (1) through
(5) of other Persons and all dividends of other Persons for the payment
of which, in either case, such Person is responsible or liable,
directly or indirectly, as obligor, guarantor or otherwise, including
by means of any Guarantee;

   (7) all obligations of the type referred to in clauses (1) through

(6) of other Persons secured by any Lien on any property or asset of
such Person (whether or not such obligation is assumed by such Person),
the amount of such

12

 

obligation being deemed to be the lesser of the fair market value of
such property or assets and the amount of the obligation so secured; and

   (8) to the extent not otherwise included in this definition,
Hedging Obligations of such Person.

Notwithstanding the foregoing, in connection with the purchase by the Company
or any Restricted Subsidiary of any business, the term “Indebtedness” shall
exclude post-closing payment adjustments to which the seller may become
entitled to the extent such payment is determined by a final closing balance
sheet or such payment depends on the performance of such business after the
closing; provided, however, that, at the time of closing, the amount of any
such payment is not determinable and, to the extent such payment thereafter
becomes fixed and determined, the amount is paid within 30 days thereafter.

          The amount of Indebtedness of any Person at any date shall be the
outstanding balance at such date of all obligations as described above;
provided, however, that in the case of Indebtedness sold at a discount,
the amount of such Indebtedness at any time will be the accreted value
thereof at such time.

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

          "Independent Qualified Party” means an investment banking firm,
accounting firm or appraisal firm of national standing; provided, however,
that such firm is not an Affiliate of the Company.

          “Interest Rate Agreement” means any interest rate swap agreement,
interest rate cap agreement or other financial agreement or arrangement with
respect to exposure to interest rates.

          “Investment” in any Person means any direct or indirect advance, loan
(other than advances to customers in the ordinary course of business that are
recorded as accounts receivable on the balance sheet of the lender) or other
extensions of credit (including by way of Guarantee or similar arrangement) or
capital contribution to (by means of any transfer of cash or other property to
others or any payment for property or services for the account or use of
others), or any purchase or acquisition of Capital Stock, Indebtedness or other
similar instruments issued by such Person. If the Company or any Restricted
Subsidiary issues, sells or otherwise disposes of any Capital Stock of a Person
that is a Restricted Subsidiary such that, after giving effect thereto, such
Person is no longer a Restricted Subsidiary, any Investment by the Company or
any Restricted Subsidiary in such Person remaining after giving effect thereto
will be deemed to be a new Investment at such time. The acquisition by the
Company or any Restricted Subsidiary of a Person that holds an Investment in a
third Person will be deemed to be an
Investment by the Company or such Restricted Subsidiary in such third
Person at such time. Except as otherwise provided for herein, the amount of an
Investment shall be its

13

 

fair market value at the time the Investment is made and without giving
effect to subsequent changes in value.

          For purposes of the definition of “Unrestricted Subsidiary”, the
definition of “Restricted Payment” and Section 4.04:

   (1) “Investment” shall include the portion (proportionate to the
Company’s equity interest in such Subsidiary) of the fair market value of
the net assets of any Subsidiary of the Company at the time that such
Subsidiary is designated an Unrestricted Subsidiary; provided, however,
that upon a redesignation of such Subsidiary as a Restricted Subsidiary,
the Company shall be deemed to continue to have a permanent “Investment”
in an Unrestricted Subsidiary equal to an amount (if positive) equal to
(A) the Company’s “Investment” in such Subsidiary at the time of such
redesignation less (B) the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the fair market value of the net assets
of such Subsidiary at the time of such redesignation; and

   (2) any property transferred to or from an Unrestricted Subsidiary
shall be valued at its fair market value at the time of such transfer,
in each case as determined in good faith by the Board of Directors.

          “Issue Date” means May 4, 2004.

          “Legal Holiday” means a Saturday, a Sunday or a day on which banking
institutions are not required to be open in the State of New York.

          “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).

          “Marketable Securities” means (i) publicly traded equity securities that
are listed for trading on a national securities exchange or are quoted on the
Nasdaq National Market and publicly traded debt securities that are rated in
one of the three highest rating categories by either Standard & Poor’s or
Moody’s and (ii) any securities that are Temporary Cash Investments.

          “Moody’s” means Moody’s Investors Service, Inc. and any successor to its
rating agency business.

          “Net Available Cash” from an Asset Disposition means cash payments
received therefrom (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise
and proceeds from the sale or other disposition of any securities received as
consideration, but only as and when
received, but excluding any other consideration received in the form of
assumption by the acquiring Person of Indebtedness or other obligations
relating to such properties or assets or received in any other non-cash form),
in each case net of:

14

 

   (1) all legal, title and recording tax expenses, commissions and
other fees and expenses incurred, and all Federal, state, provincial,
foreign and local taxes required to be accrued as a liability under
GAAP, as a consequence of such Asset Disposition;

   (2) all payments made on any Indebtedness which is secured by any
assets subject to such Asset Disposition, in accordance with the terms of
any Lien upon or other security agreement of any kind with respect to
such assets, or which must by its terms, or in order to obtain a
necessary consent to such Asset Disposition, or by applicable law, be
repaid out of the proceeds from such Asset Disposition;

   (3) all distributions and other payments required to be made
to minority interest holders in Restricted Subsidiaries as a result
of such Asset Disposition;

   (4) the deduction of appropriate amounts provided by the seller
as a reserve, in accordance with GAAP, against any liabilities
associated with the property or other assets disposed in such Asset
Disposition and retained by the Company or any Restricted Subsidiary
after such Asset Disposition; and

   (5) any portion of the purchase price from an Asset Disposition
placed in escrow, whether as a reserve for adjustment of the purchase
price, for satisfaction of indemnities in respect of such Asset
Disposition or otherwise in connection with that Asset Disposition;
provided, however, that upon the termination of such escrow, Net
Available Cash will be increased by any portion of funds in the escrow
that are released to the Company or any Restricted Subsidiary.

          “Net Cash Proceeds”, with respect to any issuance or sale of Capital Stock
or Indebtedness, means the cash proceeds of such issuance or sale net of
attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees,
discounts or commissions and brokerage, consultant and other fees actually
incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.

          “Net Fair Market Value”, with respect to Marketable Securities received by
the Company in respect of the issuance or sale of its Capital Stock, means the
value of such Marketable Securities that would be paid by a willing buyer to an
unaffiliated willing seller in a transaction not involving distress or
necessity of either party, determined in good faith by the Board of Directors
of the Company, net of attorneys’ fees, accountants’ fees, underwriters’ or
placement agents’ fees, discounts or commissions and brokerage, consultant and
other fees actually incurred in connection with such issuance or sale and net
of taxes paid or payable as a result thereof.

          “Obligations” means, with respect to any Indebtedness, all obligations
for principal, premium, interest, penalties, fees, indemnifications,
reimbursements, and other amounts payable pursuant to the documentation
governing such Indebtedness.

15

 

          “Offering Circular” means the final offering circular dated as of April
29, 2004 and used in connection with the offering of the Initial Securities
issued on the Issue Date.

          “Officer” means the Chairman of the Board, the President, any Vice
President, the Treasurer or the Secretary of the Company.

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

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

          “Permitted Holders” means Robert B. Daugherty and (1) entities
controlled by Robert B. Daugherty, (2) charitable foundations established by
Robert B. Daugherty, (3) trusts for the benefit of Robert B. Daugherty and/or
his family members and (4) the estate and heirs of Robert B. Daugherty.
Except for a Permitted Holder specifically identified by name, in determining
whether Voting Stock is owned by a Permitted Holder, only Voting Stock
acquired by a Permitted Holder in its described capacity will be treated as
“beneficially owned” by such Permitted Holder.

          “Permitted Investment” means an Investment by the Company or any
Restricted Subsidiary in:

   (1) the Company, a Restricted Subsidiary or a Person that will,
upon the making of such Investment, become a Restricted Subsidiary;
provided, however, that the primary business of such Restricted
Subsidiary is a Related Business;

   (2) another Person if, as a result of such Investment, such other
Person is merged or consolidated with or into, or transfers or conveys
all or substantially all its assets to, the Company or a Restricted
Subsidiary; provided, however, that such Person’s primary business is a
Related Business;

   (3) cash and Temporary Cash Investments;

   (4) receivables owing to the Company or any Restricted Subsidiary
if created or acquired in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms; provided,
however, that such trade terms may include such concessionary trade
terms as the Company or any such Restricted Subsidiary deems reasonable
under the circumstances;

   (5) payroll, travel and similar advances to cover matters that
are expected at the time of such advances ultimately to be treated as
expenses for accounting purposes and that are made in the ordinary
course of business;

16

 

   (6) loans or advances to employees made in the ordinary course
of business consistent with past practices of the Company or such
Restricted Subsidiary;

   (7) stock, obligations or securities received in settlement of
debts created in the ordinary course of business and owing to the
Company or any Restricted Subsidiary or in satisfaction of
judgments;

   (8) any Person to the extent such Investment represents the
non-cash portion of the consideration received for (A) an Asset
Disposition as permitted pursuant to Section 4.06 or (B) a disposition
of assets not constituting an Asset Disposition;

   (9) any Person where such Investment was acquired by the Company or
any of its Restricted Subsidiaries (A) in exchange for any other
Investment or accounts receivable held by the Company or any such
Restricted Subsidiary in connection with or as a result of a bankruptcy,
workout, reorganization or recapitalization of the issuer of such other
Investment or accounts receivable or (B) as a result of a foreclosure by
the Company or any of its Restricted Subsidiaries with respect to any
secured Investment or other transfer of title with respect to any
secured Investment in default;

   (10) any Person to the extent such Investments consist of
prepaid expenses, negotiable instruments held for collection and
lease, utility and workers’ compensation, performance and other
similar deposits made in the ordinary course of business by the
Company or any Restricted Subsidiary;

   (11) any Person to the extent such Investments consist of
Hedging Obligations otherwise permitted under Section 4.03;

   (12) any Person to the extent such Investments existed on the
Issue Date, and any extension, modification or renewal of any such
Investments existing on the Issue Date, but only to the extent not
involving additional advances, contributions or other Investments of
cash or other assets or other increases thereof (other than as a
result of the accrual or accretion of interest or original issue

discount or the issuance of pay-in-kind securities, in each case,
pursuant to the terms of such Investment as in effect on the Issue
Date); and

   (13) Persons to the extent such Investments, when taken together
with all other Investments made pursuant to this clause (13)
outstanding on the date such Investment is made, do not exceed $15.0
million.

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

17

 

          “Preferred Stock”, as applied to the Capital Stock of any Person, means
Capital Stock of any class or classes (however designated) which is preferred
as to the payment of dividends or distributions, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over shares of Capital Stock of any other class of such Person.

          “principal” of a Security means the principal of the Security plus the
premium, if any, payable on the Security which is due or overdue or is to
become due at the relevant time.

          “Public Equity Offering” means an underwritten primary public offering
of common stock of the Company pursuant to an effective registration
statement under the Securities Act.

          “Refinance” means, in respect of any Indebtedness, to refinance, extend,
renew, refund, repay, prepay, purchase, redeem, defease or retire, or to
issue other Indebtedness in exchange or replacement for, such Indebtedness.
“Refinanced” and “Refinancing” shall have correlative meanings.

          “Refinancing Indebtedness” means Indebtedness that Refinances any
Indebtedness of the Company or any Restricted Subsidiary existing on the
Issue Date or Incurred in compliance with this Indenture, including
Indebtedness that Refinances Refinancing Indebtedness; provided, however,
that:

   (1) such Refinancing Indebtedness has a Stated Maturity no
earlier than the Stated Maturity of the Indebtedness being
Refinanced;

   (2) such Refinancing Indebtedness has an Average Life at the
time such Refinancing Indebtedness is Incurred that is equal to or
greater than the Average Life of the Indebtedness being Refinanced;

   (3) such Refinancing Indebtedness has an aggregate principal amount
(or if Incurred with original issue discount, an aggregate issue price)
that is equal to or less than the aggregate principal amount (or if
Incurred with original issue discount, the aggregate accreted value)
then outstanding (plus fees and expenses, including any premium and
defeasance costs) under the Indebtedness being Refinanced; and

   (4) if the Indebtedness being Refinanced is subordinated in right
of payment to the Securities, such Refinancing Indebtedness is
subordinated in right of payment to the Securities at least to the same
extent as the Indebtedness being Refinanced;

provided further, however, that Refinancing Indebtedness shall not
include (A) Indebtedness of a Subsidiary that Refinances Indebtedness of
the Company or (B) Indebtedness of the Company or a Restricted
Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary.

18

 

          “Related Business” means any business in which the Company or any of the
Restricted Subsidiaries was engaged on the Issue Date and any business
related, ancillary or complementary to such business as determined by the
Board of Directors in good faith.

          “Representative” means, with respect to a Person, any trustee, agent
or representative (if any) for an issue of Senior Indebtedness of such
Person.

          “Restricted Payment” with respect to any Person means:

   (1) the declaration or payment of any dividends or any other
distributions of any sort in respect of its Capital Stock (including any
payment in connection with any merger or consolidation involving such
Person) or similar payment to the direct or indirect holders of its
Capital Stock (other than (A) dividends or distributions payable solely
in its Capital Stock (other than Disqualified Stock), (B) dividends or
distributions payable solely to the Company or a Restricted Subsidiary
and (C) pro rata dividends or other distributions made by a Subsidiary
that is not a Wholly Owned Subsidiary to minority stockholders (or
owners of an equivalent interest in the case of a Subsidiary that is an
entity other than a corporation));

   (2) the purchase, redemption or other acquisition or retirement for
value of any Capital Stock of the Company held by any Person (other than
by a Restricted Subsidiary) or of any Capital Stock of a Restricted
Subsidiary held by any Affiliate of the Company (other than by a
Restricted Subsidiary), including in connection with any merger or
consolidation and including the exercise of any option to exchange any
Capital Stock (other than into Capital Stock of the Company that is not
Disqualified Stock);

   (3) the purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value, prior to scheduled maturity,
scheduled repayment or scheduled sinking fund payment of any Subordinated
Obligations of the Company or any Subsidiary Guarantor (other than (A)
from the Company or a Restricted Subsidiary or (B) the purchase,
repurchase, redemption, defeasance or other acquisition of Subordinated
Obligations purchased in anticipation of satisfying a sinking fund
obligation, principal installment or final maturity, in each case due
within one year of the date of such purchase, repurchase, redemption,
defeasance or other acquisition); or

   (4) the making of any Investment (other than a Permitted
Investment) in any Person.

          “Restricted Subsidiary” means any Subsidiary of the Company that is not
an Unrestricted Subsidiary.

          “Sale/Leaseback Transaction” means an arrangement relating to property
owned by the Company or a Restricted Subsidiary on the Issue Date or
thereafter acquired by the Company or a Restricted Subsidiary whereby the
Company or a

19

 

Restricted Subsidiary transfers such property to a Person and the
Company or a Restricted Subsidiary leases it from such Person.

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

          “Secured Indebtedness” means any Indebtedness of the Company or a
Subsidiary Guarantor, as applicable, secured by a Lien.

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

          “Senior Indebtedness” means with respect to any Person:

   (1) Indebtedness of such Person, whether outstanding on the
Issue Date or thereafter Incurred; and

   (2) all other Obligations of such Person (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to such Person whether or not post-filing
interest is allowed in such proceeding) in respect of Indebtedness
described in clause (1) above,

unless, in the case of clauses (1) and (2), in the instrument creating or
evidencing the same or pursuant to which the same is outstanding, it is
provided that such Indebtedness or other Obligations are subordinate or pari
passu in right of payment to the Securities or the Subsidiary Guaranty of such
Person, as the case may be; provided, however, that Senior Indebtedness shall
not include:

   (1) any obligation of such Person to the Company or any
Subsidiary;

   (2) except for purposes of Section 4.03(e)(2), any liability for
Federal, state, local or other taxes owed or owing by such Person;

   (3) except for purposes of Section 4.03(e)(2), any accounts payable
or other liability to trade creditors arising in the ordinary course of
business (including guarantees thereof or instruments evidencing such
liabilities);

   (4) any Indebtedness or other Obligation of such Person which is
subordinate or junior in any respect to any other Indebtedness or other
Obligation of such Person; or

   (5) that portion of any Indebtedness which at the time of
Incurrence is Incurred in violation of this Indenture.

          “Senior Subordinated Indebtedness” means, with respect to a Person, the
Securities (in the case of the Company), the Subsidiary Guaranty (in the case
of a
Subsidiary Guarantor) and any other Indebtedness of such Person that
specifically provides that such Indebtedness is to rank pari passu with the
Securities or such Subsidiary Guaranty, as the case may be, in right of
payment and is not subordinated by

20

 

its terms in right of payment to any Indebtedness or other obligation of
such Person which is not Senior Indebtedness of such Person.

          “Significant Subsidiary” means any Restricted Subsidiary that would be a
“Significant Subsidiary” of the Company within the meaning of Rule 1-02 under
Regulation S-X promulgated by the SEC.

          “Standard & Poor’s” means Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc., and any successor to its rating agency
business.

          “Stated Maturity” means, with respect to any security, the date specified
in such security as the fixed date on which the final payment of principal of
such security is due and payable, including pursuant to any mandatory
redemption provision (but excluding any provision providing for the repurchase
of such security at the option of the holder thereof upon the happening of any
contingency unless such contingency has occurred).

          “Subordinated Obligation” means, with respect to a Person, any
Indebtedness of such Person (whether outstanding on the Issue Date or
thereafter Incurred) which is subordinate or junior in right of payment to the
Securities or a Subsidiary Guaranty of such Person, as the case may be,
pursuant to a written agreement to that effect.

          “Subsidiary” means, with respect to any Person, any corporation,
association, partnership or other business entity of which more than 50% of
the total voting power of shares of Voting Stock is at the time owned or
controlled, directly or indirectly, by (1) such Person, (2) such Person and
one or more Subsidiaries of such Person or (3) one or more Subsidiaries of
such Person.

          “Subsidiary Guarantor” means each Subsidiary of the Company that executes
this Indenture as a guarantor on the Issue Date and each other Subsidiary of
the Company that thereafter Guarantees the Securities pursuant to the terms of
this Indenture.

          “Subsidiary Guaranty” means a Guarantee by a Subsidiary Guarantor of the
Company’s obligations with respect to the Securities.

          “Temporary Cash Investments” means any of the following:

   (1) any investment in direct obligations of the United States of
America or any agency thereof or obligations guaranteed by the United
States of America or any agency thereof;

   (2) investments in demand and time deposit 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 or any foreign country recognized by the United States of
America, and which bank or trust company has capital, surplus and
undivided profits aggregating in excess of $50.0 million (or

21

 

the foreign currency equivalent thereof) 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) investments in commercial paper, maturing not more than 90 days
after the date of acquisition, issued by a corporation (other than an
Affiliate of the Company) organized and in existence under the laws of
the United States of America or any foreign country recognized by 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 Standard & Poor’s;

   (5) investments in securities with maturities of six months or less
from the date of acquisition issued or fully 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 Standard & Poor’s or “A” by Moody’s; and

   (6) investments in money market funds that invest substantially
all their assets in securities of the types described in clauses (1)
through (5) above.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb) as in effect on the Issue Date.

          “Transactions” means (A) the acquisition by the Company of Newmark
International, Inc. and Pfleiderer Leasing USA, Inc. and the Incurrence of
Indebtedness in connection with the financing thereof, (B) the entrance into
the credit agreement, dated May 2004, by and among the Company and The Bank of
New York, as Administrative Agent, and Wachovia Capital Markets LLC, as
Syndication Agent, (C) the issuance of the Securities and (D) the use of
proceeds of the Securities and borrowings under such credit agreement as
described under the caption “Use of Proceeds” in the Offering Circular.

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

          “Trust Officer” means the Chairman of the Board, the President or any
other officer or assistant officer of the Trustee assigned by the Trustee to
administer its corporate trust matters.

          “Uniform Commercial Code” means the New York Uniform Commercial Code as
in effect from time to time.

22

 

          “Unrestricted Subsidiary” means:

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

   (2) any Subsidiary of an Unrestricted Subsidiary.

          The Board of Directors may designate any Subsidiary of the Company
(including any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns
any Capital Stock or Indebtedness of, or holds any Lien on any property of,
the Company or any other Subsidiary of the Company that is not a Subsidiary of
the Subsidiary to be so designated; provided, however, that either (A) the
Subsidiary to be so designated has total assets of $1,000 or less or (B) if
such Subsidiary has assets greater than $1,000, such designation would be
permitted under Section 4.04.

          The Board of Directors may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided, however, that immediately after giving effect
to such designation (A) the Company could Incur $1.00 of additional
Indebtedness under Section 4.03(a) and (B) no Default shall have occurred and
be continuing. Any such designation by the Board of Directors shall be
evidenced to the Trustee by promptly filing with the Trustee a copy of the
resolution of the Board of Directors giving effect to such designation and an
Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

          “U.S. Dollar Equivalent” means, with respect to any monetary amount in a
currency other than U.S. dollars, at any time for determination thereof, the
amount of U.S. dollars obtained by converting such foreign currency involved in
such computation into U.S. dollars at the spot rate for the purchase of U.S.
dollars with the applicable foreign currency as published in The Wall Street
Journal in the “Exchange Rates” column under the heading “Currency Trading” on
the date two Business Days prior to such determination.

          Except as described in Section 4.03, whenever it is necessary to
determine whether the Company has complied with any covenant in this Indenture
or a Default has occurred and an amount is expressed in a currency other than
U.S. dollars, such amount will be treated as the U.S. Dollar Equivalent
determined as of the date such amount is initially determined in such
currency.

          “U.S. Government Obligations” means direct obligations (or certificates
representing an ownership interest in such obligations) of the United States
of America (including any agency or instrumentality thereof) for the payment
of which the full faith
and credit of the United States of America is pledged and which are not
callable at the issuer’s option.

23

 

          “Voting Stock” of a Person means all classes of Capital Stock of such
Person then outstanding and normally entitled (without regard to the
occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof.

          “Wholly Owned Subsidiary” means a Restricted Subsidiary all the Capital
Stock of which (other than directors’ qualifying shares) is owned by the
Company or one or more other Wholly Owned Subsidiaries.

          SECTION 1.02. Other Definitions.

	 	 	 
	 	 	Defined in
	Terms
	 	Section

	“Affiliate Transaction”
	 	4.07(a)
	“Bankruptcy Law”
	 	6.01
	“Blockage Notice”
	 	10.03; 12.03
	“Change of Control Offer”
	 	4.10(b)
	“covenant defeasance option”
	 	8.01(b)
	“Custodian”
	 	6.01
	“Event of Default”
	 	6.01
	“Guaranteed Obligations”
	 	11.01
	“Initial Lien”
	 	4.11
	“legal defeasance option”
	 	8.01(b)
	“Offer”
	 	4.06(b)
	“Offer Amount”
	 	4.06(c)(2)
	“Offer Period”
	 	4.06(c)(2)
	“Paying Agent”
	 	2.03
	“Payment Blockage Period”
	 	10.03; 12.03
	“Payment Default”
	 	10.03; 12.03
	“Purchase Date”
	 	4.06(c)(1)
	“Registrar”
	 	2.03
	“Successor Company”
	 	5.01(a)(1)

          SECTION 1.03. Incorporation by Reference of Trust Indenture Act. This
Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

          “Commission” means the SEC;

          “indenture securities” means the Securities and the Subsidiary
Guaranties;

          “indenture security holder” means a Securityholder;

          “indenture to be qualified” means this Indenture;

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

24

 

          “obligor” on the indenture securities means the Company, each Subsidiary
Guarantor and any other obligor on the indenture securities.

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

          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) “including” means including without limitation;

   (5) words in the singular include the plural and words in the
plural include the singular;

   (6) unsecured Indebtedness shall not be deemed to be subordinate
or junior to Secured Indebtedness merely by virtue of its nature as
unsecured Indebtedness;

   (7) Secured Indebtedness shall not be deemed to be subordinate or
junior to any other secured Indebtedness merely because it has a
junior priority with respect to the same collateral;

   (8) the principal amount of any noninterest bearing or other
discount security at any date shall be the principal amount thereof that
would be shown on a balance sheet of the issuer dated such date prepared
in accordance with GAAP;

   (9) the principal amount of any Preferred Stock shall be (A)
the maximum liquidation value of such Preferred Stock or (B) the
maximum mandatory redemption or mandatory repurchase price with
respect to such Preferred Stock, whichever is greater; and

   (10) all references to the date the Securities were originally
issued shall refer to the Issue Date.

25

 

Article 2

The Securities

          SECTION 2.01. Form and Dating. Provisions relating to the Initial
Securities, the Private Exchange Securities and the Exchange Securities are set
forth in the Rule 144A/Regulation S/IAI Appendix attached hereto (the
“Appendix”) which is hereby incorporated in, and expressly made part of, this
Indenture. The Initial Securities and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibit 1 to the Appendix
which is hereby incorporated in, and expressly made a part of, this Indenture.
The Exchange Securities, the Private Exchange Securities and the Trustee’s
certificate of authentication shall be substantially in the form of Exhibit A,
which is hereby incorporated in and expressly made a part of this Indenture.
The Securities may have notations, legends or endorsements required by law,
stock exchange rule, agreements to which the Company is subject, if any, or
usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Company). Each Security shall be dated the date of its
authentication. The terms of the Securities set forth in the Appendix and
Exhibit A are part of the terms of this Indenture.

          SECTION 2.02. Execution and Authentication. Two Officers shall sign the
Securities for the Company by manual or facsimile signature. The Company’s
seal shall be impressed, affixed, imprinted or reproduced on the Securities
and may be in facsimile form.

          If an Officer whose signature is on a Security no longer holds that office
at the time the Trustee authenticates the Security, the Security shall be valid
nevertheless.

          A Security shall not be valid until an authorized signatory of the
Trustee manually signs the certificate of authentication on the Security. The
signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

          The Trustee may appoint an authenticating agent reasonably acceptable to
the Company to authenticate the Securities. Unless limited by the terms of
such appointment, an authenticating agent may authenticate Securities 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 any Registrar, Paying Agent or agent for service of notices
and demands.

          SECTION 2.03. Registrar and Paying Agent. The Company shall maintain an
office or agency where Securities may be presented for registration of transfer
or for exchange (the “Registrar”) and an office or agency where Securities may
be presented for payment (the “Paying Agent”). The Registrar shall keep a
register of the Securities and of their transfer and exchange. The Company may
have one or more co-registrars and one or
more additional paying agents. The term “Paying Agent” includes any
additional paying agent.

26

 

          The Company shall enter into an appropriate agency agreement with any
Registrar, Paying Agent or co-registrar not a party to this Indenture, which
shall incorporate the terms of the TIA. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall
notify the Trustee of the name and address of any such agent. If the Company
fails to maintain a Registrar or Paying Agent, the Trustee shall act as such
and shall be entitled to appropriate compensation therefor pursuant to Section
7.07. The Company or any Wholly Owned Subsidiary incorporated or organized
within the United States of America may act as Paying Agent, Registrar,
co-registrar or transfer agent.

          The Company initially appoints the Trustee as Registrar and Paying Agent
in connection with the Securities.

          SECTION 2.04. Paying Agent To Hold Money in Trust. Prior to each due date
of the principal and interest on any Security, the Company shall deposit with
the Paying Agent a sum sufficient to pay such principal and interest when so
becoming due. The Company shall require each Paying Agent (other than the
Trustee) to agree in writing that the Paying Agent shall hold in trust for the
benefit of Securityholders or the Trustee all money held by the Paying Agent
for the payment of principal of or interest on the Securities and shall notify
the Trustee of any default by the Company in making any such payment. If the
Company or a Subsidiary acts as Paying Agent, it shall segregate the money held
by it as Paying Agent and hold it as a separate trust fund. The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee and
to account for any funds disbursed by the Paying Agent. Upon complying with
this Section, the Paying Agent shall have no further liability for the money
delivered to the Trustee.

          SECTION 2.05. Securityholder 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 Securityholders. If the Trustee is not the
Registrar, the Company shall furnish to the Trustee, in writing at least five
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Securityholders.

          SECTION 2.06. Transfer and Exchange. The Securities shall be issued in
registered form and shall be transferable only upon the surrender of a Security
for registration of transfer. When a Security is presented to the Registrar or
a co-registrar with a request to register a transfer, the Registrar shall
register the transfer as requested if the requirements of this Indenture and
Section 8-401(1) of the Uniform Commercial Code are met. When Securities are
presented to the Registrar or a co-registrar with a request to exchange them
for an equal principal amount of Securities of other denominations, the
Registrar shall make the exchange as requested if the same requirements are
met.

          SECTION 2.07. Replacement Securities. If a mutilated Security is
surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall
issue and the Trustee shall

27

 

authenticate a replacement Security if the requirements of Section 8-405 of the
Uniform Commercial Code are met and the Holder satisfies any other reasonable
requirements of the Trustee. If required by the Trustee or the Company, such
Holder shall furnish an indemnity bond sufficient in the judgment of the
Company and the Trustee to protect the Company, the Trustee, the Paying Agent,
the Registrar and any co-registrar from any loss which any of them may suffer
if a Security is replaced. The Company and the Trustee may charge the Holder
for their expenses in replacing a Security.

          Every replacement Security is an additional Obligation of the
Company.

          SECTION 2.08. Outstanding Securities. Securities outstanding at any time
are all Securities authenticated by the Trustee except for those canceled by
it, those delivered to it for cancellation and those described in this
Section as not outstanding. A Security does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Security.

          If a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee and the Company receive proof satisfactory to
them that the replaced Security is held by a bona fide purchaser.

          If the Paying Agent segregates and holds in trust, in accordance with this
Indenture, on a redemption date or maturity date money sufficient to pay all
principal and interest payable on that date with respect to the Securities (or
portions thereof) to be redeemed or maturing, as the case may be, and the
Paying Agent is not prohibited from paying such money to the Securityholders on
that date pursuant to the terms of this Indenture, then on and after that date
such Securities (or portions thereof) cease to be outstanding and interest on
them ceases to accrue.

          SECTION 2.09. Temporary Securities. Until definitive Securities are ready
for delivery, the Company may prepare and the Trustee shall authenticate
temporary Securities. Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate definitive Securities and
deliver them in exchange for temporary Securities.

          SECTION 2.10. Cancellation. The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the Paying
Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee and no one else
shall cancel and destroy (subject to the record retention requirements of
the Exchange Act) all Securities surrendered for registration of transfer,
exchange, payment or cancellation and deliver a certificate of such
destruction to the Company unless the Company directs the Trustee to deliver
canceled Securities to the Company. The Company may not issue new
Securities to replace Securities it has redeemed, paid or delivered to the
Trustee for cancellation.

28

 

          SECTION 2.11. Defaulted Interest. If the Company defaults in a payment of
interest on the Securities, the Company shall pay defaulted interest (plus
interest on such defaulted interest to the extent lawful) in any lawful
manner. The Company may pay the defaulted interest to the persons who are
Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee and shall promptly mail to each
Securityholder a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

          SECTION 2.12. CUSIP Numbers. The Company in issuing the Securities may use
“CUSIP” numbers (if then generally in use) and, if so, the Trustee shall use
“CUSIP” numbers in notices of redemption as a convenience to Holders; provided,
however, that any such notice may state that no representation is made as to
the correctness of such numbers either as printed on the Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers.

          SECTION 2.13. Issuance of Additional Securities. After the Issue Date, the
Company shall be entitled, subject to its compliance with Section 4.03, to
issue Additional Securities under this Indenture, which Securities shall have
identical terms and the same CUSIP numbers as the Initial Securities issued on
the Issue Date, other than with respect to the date of issuance and issue
price. All the Securities issued under this Indenture shall be treated as a
single class for all purposes of this Indenture, including waivers, amendments,
redemptions and offers to purchase.

          With respect to any Additional Securities, the Company shall set forth in
a resolution of the Board of Directors and an Officers’ Certificate, a copy of
each of which shall be delivered to the Trustee, the following information:

   (1) the aggregate principal amount of such Additional Securities to
be authenticated and delivered pursuant to this Indenture and the
provision of Section 4.03 that the Company is relying on to issue such
Additional Securities;

   (2) the issue price, the issue date and the CUSIP number of such
Additional Securities; provided, however, that no Additional
Securities may be issued at a price that would cause such Additional
Securities to have “original issue discount” within the meaning of
Section 1273 of the Code; and

   (3) whether such Additional Securities shall be Initial
Securities or shall be issued in the form of Exchange Securities as
set forth in Exhibit A.

29

 

Article 3

Redemption

          SECTION 3.01. Notices to Trustee. If the Company elects to redeem
Securities pursuant to paragraph 5 of the Securities, it shall notify the
Trustee in writing of the redemption date, the principal amount of Securities
to be redeemed and the paragraph of the Securities pursuant to which the
redemption will occur.

          The Company shall give each notice to the Trustee provided for in this
Section at least 60 days before the redemption date unless the Trustee
consents to a shorter period. Such notice shall be accompanied by an
Officers’ Certificate and an Opinion of Counsel from the Company to the
effect that such redemption shall comply with the conditions herein.

          SECTION 3.02. Selection of Securities to Be Redeemed. If fewer than all
the Securities are to be redeemed, the Trustee shall select the Securities to
be redeemed pro rata to the extent practicable (subject to the procedures of
the Depository). The Trustee shall make the selection from outstanding
Securities not previously called for redemption. The Trustee may select for
redemption portions of the principal of Securities that have denominations
larger than $1,000. Securities and portions of them the Trustee selects shall
be in principal amounts of $1,000 or a whole multiple of $1,000. Provisions of
this Indenture that apply to Securities called for redemption also apply to
portions of Securities called for redemption. The Trustee shall notify the
Company promptly of the Securities or portions of Securities to be redeemed.

          SECTION 3.03. Notice of Redemption. At least 30 days but not more than 60
days before a date for redemption of Securities, the Company shall mail a
notice of redemption by first-class mail to each Holder of Securities to be
redeemed at such Holder’s registered address.

          The notice shall identify the Securities to be redeemed and
shall state:

   (1) the redemption date;

   (2) the redemption
price;

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

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

   (5) if fewer than all the outstanding Securities are to be
redeemed, the identification and principal amounts of the particular
Securities to be redeemed;

   (6) that, unless the Company defaults in making such redemption
payment or the Paying Agent is prohibited from making such payment
pursuant to

30

 

the terms of this Indenture, interest on Securities (or portion
thereof) called for redemption ceases to accrue on and after the
redemption date; and

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

          At the Company’s request, the Trustee shall give the notice of redemption
in the Company’s name and at the Company’s expense. In such event, the Company
shall provide the Trustee with the information required by this Section.

          SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is
mailed, Securities called for redemption become due and payable on the
redemption date and at the redemption price stated in the notice. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption
price stated in the notice, plus accrued interest to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the related interest payment date). Failure to give
notice or any defect in the notice to any Holder shall not affect the validity
of the notice to any other Holder.

          SECTION 3.05. Deposit of Redemption Price. Prior to the redemption date,
the Company shall deposit with the Paying Agent (or, if the Company or a
Subsidiary is the Paying Agent, shall segregate and hold in trust) money
sufficient to pay the redemption price of and accrued interest on all
Securities to be redeemed on that date other than Securities or portions of
Securities called for redemption which have been delivered by the Company to
the Trustee for cancellation.

          SECTION 3.06. Securities Redeemed in Part. Upon surrender of a Security
that is redeemed in part, the Company shall execute and the Trustee shall
authenticate for the Holder (at the Company’s expense) a new Security equal in
principal amount to the unredeemed portion of the Security surrendered.

31

 

Article 4

Covenants

          SECTION 4.01. Payment of Securities. The Company shall promptly pay the
principal of and interest on the Securities on the dates and in the manner
provided in the Securities and in this Indenture. Principal and interest shall
be considered paid on the date due if on such date the Trustee or the Paying
Agent holds in accordance with this Indenture money sufficient to pay all
principal and interest then due and the Trustee or the Paying Agent, as the
case may be, is not prohibited from paying such money to the Securityholders on
that date pursuant to the terms of this Indenture.

          The Company shall pay interest on overdue principal at the rate specified
therefor in the Securities, and it shall pay interest on overdue installments
of interest at the same rate to the extent lawful.

          SECTION 4.02. SEC Reports. Whether or not the Company is subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company
shall file with the SEC (subject to the next sentence) and provide the Trustee
and Securityholders with such annual and other reports as are specified in
Sections 13 and 15(d) of the Exchange Act and applicable to a U.S. corporation
subject to such Sections, such reports to be so filed and provided at the times
specified for the filings of such reports under such Sections and containing
all the information, audit reports and exhibits required for such reports. If,
at any time, the Company is not subject to the periodic reporting requirements
of the Exchange Act for any reason, the Company shall nevertheless continue
filing the reports specified in the preceding sentence with the SEC within the
time periods required unless the SEC will not accept such a filing. The Company
agrees that it shall not take any action for the purpose of causing the SEC not
to accept any such filings. If, notwithstanding the foregoing, the SEC will not
accept such filings for any reason, the Company shall post the reports
specified in the preceding sentence on its website within the time periods that
would apply if the Company were required to file those reports with the SEC.

          At any time that any of the Company’s Subsidiaries are Unrestricted
Subsidiaries, then the quarterly and annual financial information required by
the preceding paragraph shall include a reasonably detailed presentation,
either on the face of the financial statements or in the footnotes thereto, and
in “Management’s Discussion and Analysis of Financial Condition and Results of
Operations”, of the financial condition and results of operations of the
Company and its Restricted Subsidiaries separate from the financial condition
and results of operations of the Unrestricted Subsidiaries of the Company.

          In addition, the Company shall furnish to the Holders of the Securities
and to prospective investors, upon the requests of such Holders, any
information required to
be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long
as any Securities are not freely transferable under the Securities Act. The
Company also shall comply with the other provisions of TIA § 314(a).

32

 

          SECTION 4.03. Limitation on Indebtedness. (a) The Company shall not, and
shall not permit any Restricted Subsidiary to, Incur, directly or indirectly,
any Indebtedness; provided, however, that the Company and the Subsidiary
Guarantors shall be entitled to Incur Indebtedness if, on the date of such
Incurrence and after giving effect thereto on a pro forma basis, the
Consolidated Coverage Ratio exceeds 2.0 to 1.

          (b) Notwithstanding the foregoing paragraph (a), the Company and the
Restricted Subsidiaries shall be entitled to Incur any or all of the following
Indebtedness:

     (1) Indebtedness Incurred by the Company or any Subsidiary
Guarantor pursuant to the Credit Agreement; provided, however, that,
after giving effect to any such Incurrence, the aggregate principal
amount of all Indebtedness Incurred under this clause (1) and then
outstanding does not exceed the greater of (A) $225.0 million less the
sum of all principal payments with respect to such Indebtedness pursuant
to Section 4.06(a)(3)(A) and (B) the sum of (i) 65% of the book value of
the inventory of the Company and its Restricted Subsidiaries and (ii) 85%
of the book value of the accounts receivable of the Company and its
Restricted Subsidiaries;

     (2) Indebtedness owed to and held by the Company or a Wholly Owned
Subsidiary; provided, however, that (A) any subsequent issuance or
transfer of any Capital Stock which results in any such Wholly Owned
Subsidiary ceasing to be a Wholly Owned Subsidiary or any subsequent
transfer of such Indebtedness (other than to the Company or a Wholly
Owned Subsidiary) shall be deemed, in each case, to constitute the
Incurrence of such Indebtedness by the obligor thereon, (B) if the
Company is the obligor on such Indebtedness, such Indebtedness is
expressly subordinated to the prior payment in full in cash of all
obligations with respect to the Securities and (C) if a Subsidiary
Guarantor is the obligor on such Indebtedness, such Indebtedness is
expressly subordinated to the prior payment in full in cash of all
obligations of such obligor with respect to its Subsidiary Guaranty;

     (3) the Securities (other than any Additional Securities);

     (4) Indebtedness outstanding on the Issue Date (other than
Indebtedness described in clause (1), (2) or (3) of this
Section 4.03(b));

     (5) Indebtedness of a Restricted Subsidiary Incurred and
outstanding on or prior to the date on which such Subsidiary was
acquired by the Company (other than Indebtedness Incurred in connection
with, or to provide all or any portion of the funds or credit support
utilized to consummate, the transaction or series of related
transactions pursuant to which such Subsidiary became a Subsidiary or
was acquired by the Company); provided, however, that on the date
of such acquisition and after giving pro forma effect thereto, the
Company would have been entitled to Incur at least $1.00 of additional
Indebtedness pursuant to Section 4.03(a);

33

 

     (6) Refinancing Indebtedness in respect of Indebtedness Incurred
pursuant to Section 4.03(a) or pursuant to clause (3), (4) or (5) of
this Section 4.03(b) or this clause (6); provided, however, that to the
extent such Refinancing Indebtedness directly or indirectly Refinances
Indebtedness of a Subsidiary Incurred pursuant to clause (5), such
Refinancing Indebtedness shall be Incurred only by such Subsidiary;

     (7) Hedging Obligations consisting of (A) Interest Rate Agreements
directly related to Indebtedness permitted to be Incurred by the Company
and its Restricted Subsidiaries pursuant to this Indenture (B) Currency
Agreements entered into in the ordinary course of business for the
purpose of mitigating the risk to the Company or its Subsidiaries of
currency fluctuations and not for speculative purposes and (C) Commodity
Price Protection Agreements entered into in the ordinary course of
business for the purpose of mitigating the risk to the Company or its
Subsidiaries of commodity price fluctuations and not for speculative
purposes;

     (8) Obligations in respect of performance, bid and surety bonds and
completion guarantees provided by the Company or any Restricted
Subsidiary in the ordinary course of business;

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

     (10) Indebtedness consisting of the Subsidiary Guaranty of a
Subsidiary Guarantor and any Guarantee by a Subsidiary Guarantor of
Indebtedness Incurred pursuant to Section 4.03(a) or pursuant to Section
4.03(b)(1), (2), (3) or (4) or pursuant to Section 4.03(b)(6) to the
extent the Refinancing Indebtedness Incurred thereunder directly or
indirectly Refinances Indebtedness Incurred pursuant to Section 4.03(a)
or pursuant to Section 4.03(b)(3) or (4);

     (11) Indebtedness (including Capital Lease Obligations and
Attributable Debt in respect of Sale/Leaseback Transactions) Incurred by
the Company or any of its Restricted Subsidiaries in the ordinary course
of business to finance the purchase, lease, construction or improvement
of property (real or personal) or equipment (whether through the direct
purchase of assets or the Capital Stock of any Person owning such assets)
within 90 days of such purchase, lease, construction or improvement, and
any Refinancing Indebtedness Incurred to Refinance such Indebtedness, in
an aggregate principal amount which, when taken together with all other
Indebtedness Incurred pursuant to this clause (11) and outstanding on the
date of such Incurrence, does not exceed the greater of (A) $25.0 million
and (B) 5% of the consolidated total tangible assets of the Company
and the Restricted Subsidiaries as of the end of the most recent
fiscal quarter prior to such Incurrence for which internal financial
statements are available;

34

 

     (12) Indebtedness Incurred by Foreign Subsidiaries which, when taken
together with all other Indebtedness Incurred pursuant to this clause
(12) and outstanding on the date of such Incurrence, does not exceed the
greater of (A) $25.0 million and (B) 10% of the combined total tangible
assets of the Foreign Subsidiaries as of the end of the most recent
fiscal quarter prior to such Incurrence for which internal financial
statements are available; and

     (13) Indebtedness of the Company or of any Subsidiary Guarantor in
an aggregate principal amount which, when taken together with all other
Indebtedness of the Company and the Subsidiary Guarantors outstanding on
the date of such Incurrence (other than Indebtedness permitted by clauses
(1) through (12) of this Section 4.03(b) or Section 4.03(a)) does not
exceed $15.0 million.

          (c) Notwithstanding the foregoing, neither the Company nor any Subsidiary
Guarantor shall Incur any Indebtedness pursuant to Section 4.03(b) if the
proceeds thereof are used, directly or indirectly, to Refinance any
Subordinated Obligations of the Company or any Subsidiary Guarantor unless
such Indebtedness shall be subordinated to the Securities or the applicable
Subsidiary Guaranty to at least the same extent as such Subordinated
Obligations.

          (d) For purposes of determining compliance with this Section 4.03, (1) any
Indebtedness Incurred under the Credit Agreement on the Issue Date will be
treated as Incurred under clause (1) of paragraph (b) above; (2) in the event
that an item of Indebtedness (or any portion thereof) meets the criteria of
more than one of the types of Indebtedness described above, the Company, in its
sole discretion, shall classify such item of Indebtedness (or any portion
thereof) at the time of Incurrence and shall only be required to include the
amount and type of such Indebtedness in one of the above clauses; and (3) the
Company shall be entitled to divide and classify an item of Indebtedness in
more than one of the types of Indebtedness described above.

          (e) Notwithstanding Section 4.03(a) or 4.03(b), neither the Company nor
any Subsidiary Guarantor shall Incur (1) any Indebtedness if such Indebtedness
is subordinate or junior in ranking in any respect to any Senior Indebtedness
of the Company or such Subsidiary Guarantor, as applicable, unless such
Indebtedness is Senior Subordinated Indebtedness or is expressly subordinated
in right of payment to Senior Subordinated Indebtedness of the Company or such
Subsidiary Guarantor, as applicable, or (2) any Secured Indebtedness that is
not Senior Indebtedness of such Person unless contemporaneously therewith such
Person makes effective provision to secure the Securities or the relevant
Subsidiary Guaranty, as applicable, equally and ratably with such Secured
Indebtedness (or on a senior basis to, in the case of Indebtedness subordinated
in right of payment to the Securities or the relevant Subsidiary Guaranty, as
applicable) for so long as such Secured Indebtedness is secured by a Lien.

          (f) For purposes of determining compliance with any U.S. dollar
denominated restriction on the Incurrence of Indebtedness where the
Indebtedness Incurred is denominated in a different currency, the amount of
such Indebtedness shall be the U.S. Dollar Equivalent determined on the date of
the Incurrence of such

35

 

Indebtedness; provided, however, that if any such Indebtedness denominated in a
different currency is subject to a Currency Agreement with respect to U.S.
dollars covering all principal, premium, if any, and interest payable on such
Indebtedness, the amount of such Indebtedness expressed in U.S. dollars shall
be as provided in such Currency Agreement. The principal amount of any
Refinancing Indebtedness Incurred in the same currency as the Indebtedness
being Refinanced shall be the U.S. Dollar Equivalent of the Indebtedness
Refinanced, except to the extent that (1) such U.S. Dollar Equivalent was
determined based on a Currency Agreement, in which case the Refinancing
Indebtedness shall be determined in accordance with the preceding sentence, and
(2) the principal amount of the Refinancing Indebtedness exceeds the principal
amount of the Indebtedness being Refinanced, in which case the U.S. Dollar
Equivalent of such excess shall be determined on the date such Refinancing
Indebtedness is Incurred.

          SECTION 4.04. Limitation on Restricted Payments. (a) The Company shall
not, and shall not permit any Restricted Subsidiary, directly or indirectly,
to make a Restricted Payment if at the time the Company or such Restricted
Subsidiary makes such Restricted Payment:

     (1) a Default shall have occurred and be continuing (or would
result therefrom);

     (2) the Company is not entitled to Incur an additional $1.00
of Indebtedness under Section 4.03(a); or

     (3) the aggregate amount of such Restricted Payment and all
other Restricted Payments since the Issue Date would exceed the sum
of (without duplication):

     (A) 50% of the Consolidated Net Income accrued during the
period (treated as one accounting period) from the beginning of
the fiscal quarter immediately following the fiscal quarter during
which the Issue Date occurs to the end of the most recent fiscal
quarter ending prior to the date of such Restricted Payment for
which internal financial statements are available (or, in case
such Consolidated Net Income shall be a deficit, minus 100% of
such deficit); plus

     (B) 100% of the aggregate Net Cash Proceeds and Net Fair
Market Value of Marketable Securities received by the Company from
the issuance or sale of its Capital Stock (other than Disqualified
Stock) subsequent to the Issue Date (other than an issuance or
sale to a Subsidiary of the Company and other than an issuance or
sale to an employee stock ownership plan or to a trust established
by the Company or any of its Subsidiaries for the benefit of their
employees) and 100% of any cash capital contribution or capital
contribution to the extent consisting of
Marketable Securities received by the Company from its
shareholders subsequent to the Issue Date; plus

36

 

     (C) the amount by which Indebtedness of the Company is
reduced on the Company’s balance sheet upon the conversion or
exchange subsequent to the Issue Date of any Indebtedness of the
Company convertible or exchangeable for Capital Stock (other than
Disqualified Stock) of the Company (less the amount of any cash,
or the fair value of any other property, distributed by the
Company upon such conversion or exchange); provided, however, that
the foregoing amount shall not exceed the Net Cash Proceeds
received by the Company or any Restricted Subsidiary from the sale
of such Indebtedness (excluding Net Cash Proceeds from sales to a
Subsidiary of the Company or to an employee stock ownership plan
or to a trust established by the Company or any of its
Subsidiaries for the benefit of their employees); plus

     (D) an amount equal to the sum of (i) the net reduction in
the Investments (other than Permitted Investments) made by the
Company or any Restricted Subsidiary in any Person resulting from
repurchases, repayments or redemptions of such Investments by
such Person, proceeds realized on the sale of such Investments
and proceeds representing the return of capital (excluding
dividends and distributions), in each case received by the
Company or any Restricted Subsidiary, and (ii) to the extent such
Person is an Unrestricted Subsidiary, the portion (proportionate
to the Company’s equity interest in such Subsidiary) of the fair
market value of the net assets of such Unrestricted Subsidiary at
the time such Unrestricted Subsidiary is designated a Restricted
Subsidiary; provided, however, that the foregoing sum shall not
exceed, in the case of any such Person or Unrestricted
Subsidiary, the amount of Investments (excluding Permitted
Investments) previously made (and treated as a Restricted
Payment) by the Company or any Restricted Subsidiary in such
Person or Unrestricted Subsidiary.

          (b) The provisions of Section 4.04(a) shall not prohibit:

     (1) any Restricted Payment made out of the Net Cash Proceeds of the
substantially concurrent sale of, or made by exchange for, Capital Stock
of the Company (other than Disqualified Stock and other than Capital
Stock issued or sold to a Subsidiary of the Company or an employee stock
ownership plan or to a trust established by the Company or any of its
Subsidiaries for the benefit of their employees) or a substantially
concurrent cash capital contribution received by the Company from its
shareholders; provided, however, that (A) such Restricted Payment shall
be excluded in the calculation of the amount of Restricted Payments and
(B) the Net Cash Proceeds from such sale or such cash capital
contribution (to the extent so used for such Restricted Payment) shall
be excluded from the calculation of amounts under Section 4.04(a)(3)(B);

     (2) any purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value of Subordinated Obligations of the
Company or a Subsidiary Guarantor made by exchange for, or out of the
proceeds of the

37

 

substantially concurrent sale of, Indebtedness of such Person which is
permitted to be Incurred pursuant to Section 4.03; provided, however,
that such purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value shall be excluded in the
calculation of the amount of Restricted Payments;

     (3) dividends paid within 60 days after the date of declaration
thereof if at such date of declaration such dividend would have complied
with this Section 4.04; provided, however, that at the time of payment
of such dividend, no other Default shall have occurred and be continuing
(or result therefrom); provided further, however, that such dividend
shall be included in the calculation of the amount of Restricted
Payments;

     (4) so long as no Default has occurred and is continuing, the
repurchase or other acquisition of shares of Capital Stock of the Company
or any of its Subsidiaries from employees, former employees, directors or
former directors of the Company or any of its Subsidiaries (or permitted
transferees of such employees, former employees, directors or former
directors), pursuant to the terms of the agreements (including employment
agreements) or plans (or amendments thereto) approved by the Board of
Directors under which such individuals purchase or sell or are granted
the option to purchase or sell, shares of such Capital Stock; provided,
however, that the aggregate amount of such repurchases and other
acquisitions (excluding amounts representing cancelation of Indebtedness)
shall not exceed $1.0 million in any calendar year; provided further,
however, that such repurchases and other acquisitions shall be excluded
in the calculation of the amount of Restricted Payments;

     (5) the declaration and payments of dividends on Disqualified
Stock issued pursuant to Section 4.03; provided, however, that, at the
time of payment of such dividend, no Default shall have occurred and be
continuing (or result therefrom); provided further, however, that such
dividends shall be excluded in the calculation of the amount of
Restricted Payments;

     (6) repurchases of Capital Stock deemed to occur upon exercise of
stock options if such Capital Stock represents a portion of the exercise
price of such options; provided, however, that such Restricted Payments
shall be excluded in the calculation of the amount of Restricted
Payments;

     (7) cash payments in lieu of the issuance of fractional shares in
connection with the exercise of warrants, options or other securities
convertible into or exchangeable for Capital Stock of the Company;
provided, however, that any such cash payment shall not be for the
purpose of evading the limitations of this Section 4.04 (as determined in
good faith by the Board of Directors); provided further, however, that
such payments shall be excluded in the calculation of the amount of
Restricted Payments;

     (8) in the event of a Change of Control, and if no Default shall
have occurred and be continuing, the payment, purchase, redemption,
defeasance or

38

 

other acquisition or retirement of Subordinated Obligations of the
Company or any Subsidiary Guarantor, in each case, at a purchase price
not greater than 101% of the principal amount of such Subordinated
Obligations, plus any accrued and unpaid interest thereon; provided,
however, that prior to such payment, purchase, redemption, defeasance or
other acquisition or retirement, the Company (or a third party to the
extent permitted by this Indenture) has made a Change of Control Offer
with respect to the Securities as a result of such Change of Control and
has repurchased all Securities validly tendered and not withdrawn in
connection with such Change of Control Offer; provided further, however,
that such repurchase and other acquisitions shall be included in the
calculation of the amount of Restricted Payments;

     (9) payments of intercompany subordinated Indebtedness, the
Incurrence of which was permitted under Section 4.03(b)(2); provided,
however, that no Default has occurred and is continuing or would
otherwise result therefrom; provided further, however, that such payments
shall be excluded in the calculation of the amount of Restricted
Payments;

     (10) Restricted Payments in an amount which, when taken together
with all Restricted Payments made pursuant to this clause (10), does not
exceed $40.0 million; provided, however, that (A) at the time of each
such Restricted Payment, no Default shall have occurred and be continuing
(or result therefrom) and (B) such payments shall be excluded in the
calculation of the amount of Restricted Payments; or

     (11) so long as no Default has occurred and is continuing, the
declaration and payment of dividends on the Capital Stock of the Company;
provided, however, that the aggregate amount of such dividends made
pursuant to this clause (11) in any calendar year shall not exceed the
sum of (A) $10.0 million and (B) the amount of dividends permitted but
not made pursuant to this clause (11) in prior calendar years; provided
further, however, that such dividends shall be excluded in the
calculation of the amount of Restricted Payments.

          SECTION 4.05. Limitation on Restrictions on Distributions from Restricted
Subsidiaries. The Company shall not, and shall not permit any Restricted
Subsidiary to, create or otherwise cause or permit to exist or become
effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to (a) pay dividends or make any other distributions on
its Capital Stock to the Company or a Restricted Subsidiary or pay any
Indebtedness owed to the Company, (b) make any loans or advances to the
Company or (c) transfer any of its property or assets to the Company, except:

     (1) with respect to clauses (a), (b) and (c),

     (A) any encumbrance or restriction pursuant to an agreement
in effect at or entered into on the Issue Date, including the
Credit Agreement entered into on the Issue Date;

39

 

     (B) any encumbrance or restriction with respect to a
Restricted Subsidiary pursuant to an agreement relating to any
Indebtedness Incurred by such Restricted Subsidiary on or prior
to the date on which such Restricted Subsidiary was acquired by
the Company (other than Indebtedness Incurred as consideration
in, or to provide all or any portion of the funds or credit
support utilized to consummate, the transaction or series of
related transactions pursuant to which such Restricted Subsidiary
became a Restricted Subsidiary or was acquired by the Company)
and outstanding on such date;

     (C) any encumbrance or restriction pursuant to an agreement
effecting a Refinancing of Indebtedness Incurred pursuant to an
agreement referred to in Section 4.05(1)(A) or (B) or this clause
(C) or contained in any amendment to an agreement referred to in
Section 4.05(1)(A) or (B) or this clause (C); provided, however,
that the encumbrances and restrictions with respect to such
Restricted Subsidiary contained in any such refinancing agreement
or amendment are no less favorable to the Securityholders than
encumbrances and restrictions with respect to such Restricted
Subsidiary contained in such predecessor agreements;

     (D) any encumbrance or restriction with respect to a
Restricted Subsidiary imposed pursuant to an agreement entered
into for the sale or disposition of all or substantially all the
Capital Stock or assets of such Restricted Subsidiary pending the
closing of such sale or disposition; and

     (E) any encumbrance or restriction contained in the terms of
any Indebtedness of the type described in Section 4.03(b)(11) or
4.03(b)(12) (provided that such Indebtedness is Incurred in
compliance with such Section) or any agreement pursuant to which
such Indebtedness was Incurred if (x) either (i) the encumbrance
or restriction applies only in the event of and during the
continuance of a payment default or a default with respect to a
financial covenant contained in such Indebtedness or agreement or
(ii) the Company determines at the time any such Indebtedness is
Incurred (and at the time of any modification of the terms of any
such encumbrance or restriction) that any such encumbrance or
restriction will not materially affect the Company’s ability to
make principal or interest payments on the Securities and any
other Indebtedness that is an obligation of the Company and (y)
the encumbrance or restriction is not materially more
disadvantageous to the Holders of the Securities than is customary
in comparable financings or agreements (as determined by the
Company in good faith); and

       (2) with respect to clause (c) only,

     (A) any encumbrance or restriction consisting of customary
nonassignment provisions in leases governing leasehold
interests to the

40

 

extent such provisions restrict the transfer of the lease or
the property leased thereunder;

     (B) any encumbrance or restriction contained in security
agreements or mortgages securing Indebtedness of a Restricted
Subsidiary to the extent such encumbrance or restriction restricts
the transfer of the property subject to such security agreements
or mortgages;

     (C) any encumbrance or restriction on cash or other deposits
or net worth imposed by customers under contracts entered into in
the ordinary course of business;

     (D) any encumbrance or restriction contained in customary
provisions in joint venture agreements entered into in the
ordinary course of business with respect to the disposition or
distribution of assets or property of the applicable joint
venture or that restrict the transfer of interests in such joint
venture; and

     (E) customary restrictions imposed on the transfer of, or
licenses related to, copyrights, patents or other intellectual
property and contained in agreements entered into in the
ordinary course of business.

          SECTION 4.06. Limitation on Sales of Assets and Subsidiary Stock. (a) The
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, consummate any Asset Disposition unless:

     (1) the Company or such Restricted Subsidiary receives
consideration at the time of such Asset Disposition at least equal to the
fair market value (including as to the value of all non-cash
consideration), as determined in good faith by the Board of Directors, of
the shares and assets subject to such Asset Disposition;

     (2) at least 75% of the consideration thereof received by the
Company or such Restricted Subsidiary is in the form of cash or cash
equivalents; and

     (3) an amount equal to 100% of the Net Available Cash from such
Asset Disposition is applied by the Company (or such Restricted
Subsidiary, as the case may be)

     (A) to the extent the Company elects (or is required by the
terms of any Indebtedness), to prepay, repay, redeem or purchase
Senior Indebtedness of the Company or Indebtedness (other than any
Disqualified Stock) of a Wholly Owned Subsidiary (in each case
other than Indebtedness owed to the Company or an Affiliate of the
Company)
within one year from the later of the date of such Asset
Disposition or the receipt of such Net Available Cash;

41

 

     (B) to the extent the Company elects, to acquire Additional
Assets within one year from the later of the date of such Asset
Disposition or the receipt of such Net Available Cash; and

     (C) to the extent of the balance of such Net Available Cash
after application in accordance with clauses (A) and (B), to make
an Offer to the Holders of the Securities (and to holders of
other Senior Subordinated Indebtedness of the Company designated
by the Company) to purchase Securities (and such other Senior
Subordinated Indebtedness of the Company) pursuant to and subject
to the conditions contained in this Indenture;

provided, however, that in connection with any prepayment, repayment or
purchase of Indebtedness pursuant to clause (A) or (C) above, the Company or
such Restricted Subsidiary shall permanently retire such Indebtedness and
shall cause the related loan commitment (if any) to be permanently reduced
in an amount equal to the principal amount so prepaid, repaid or purchased.

          Notwithstanding the foregoing provisions of this Section 4.06, the Company
and the Restricted Subsidiaries shall not be required to apply any Net
Available Cash in accordance with this Section 4.06(a) except to the extent
that the aggregate Net Available Cash from all Asset Dispositions that is not
applied in accordance with this Section 4.06(a) exceeds $15.0 million. Pending
application of Net Available Cash pursuant to this Section 4.06(a), such Net
Available Cash shall be invested in Temporary Cash Investments or applied to
temporarily reduce revolving credit indebtedness.

          For the purposes of this Section 4.06(a), the following are deemed to
be cash or cash equivalents:

     (1) the assumption of Indebtedness of the Company (other than
Obligations in respect of Disqualified Stock of the Company) or any
Restricted Subsidiary (other than Obligations in respect of
Disqualified Stock or Preferred Stock of a Subsidiary Guarantor) and
the release of the Company or such Restricted Subsidiary from all
liability on such Indebtedness in connection with such Asset
Disposition; and

     (2) securities received by the Company or any Restricted
Subsidiary from the transferee that are promptly converted by the
Company or such Restricted Subsidiary into cash, to the extent of the
cash received in that conversion.

          (b) In the event of an Asset Disposition that requires the purchase of
Securities (and other Senior Subordinated Indebtedness of the Company)
pursuant to Section 4.06(a)(3)(C), the Company shall purchase Securities
tendered pursuant to an
offer by the Company for the Securities (and such other Senior
Subordinated Indebtedness) (the “Offer”) at a purchase price of 100% of their
principal amount (or, in the event such other Senior Subordinated Indebtedness
was issued with significant

42

 

original issue discount, 100% of the accreted value thereof) without premium,
plus accrued but unpaid interest (or, in respect of such other Senior
Subordinated Indebtedness, such lesser price, if any, as may be provided for
by the terms of such Senior Subordinated Indebtedness) in accordance with the
procedures (including prorating in the event of oversubscription) set forth in
Section 4.06(c). If the aggregate purchase price of the securities tendered
exceeds the Net Available Cash allotted to their purchase, the Company shall
select the securities to be purchased on a pro rata basis but in round
denominations, which in the case of the Securities will be denominations of
$1,000 principal amount or multiples thereof. The Company shall not be
required to make such an Offer to purchase Securities (and other Senior
Subordinated Indebtedness) pursuant to this Section 4.06 if the Net Available
Cash available therefor is less than $15.0 million (which lesser amount shall
be carried forward for purposes of determining whether such an Offer is
required with respect to the Net Available Cash from any subsequent Asset
Disposition). Upon completion of such an Offer to purchase, Net Available Cash
shall be deemed to be reduced by the aggregate amount of such Offer.

          (c) (1) Promptly, and in any event within 10 days after the Company
becomes obligated to make an Offer, the Company shall deliver to the Trustee
and send, by first-class mail to each Holder, a written notice stating that the
Holder may elect to have his Securities purchased by the Company either in
whole or in part (subject to prorating as described in Section 4.06(b) in the
event the Offer is oversubscribed) in integral multiples of $1,000 of principal
amount, at the applicable purchase price. The notice shall specify a purchase
date not less than 30 days nor more than 60 days after the date of such notice
(the “Purchase Date”) and shall contain such information concerning the
business of the Company which the Company in good faith believes will enable
such Holders to make an informed decision (which at a minimum will include (A)
the most recently filed Annual Report on Form 10-K (including audited
consolidated financial statements) of the Company, the most recent subsequently
filed Quarterly Report on Form 10-Q and any Current Report on Form 8-K of the
Company filed subsequent to such Quarterly Report, other than Current Reports
describing Asset Dispositions otherwise described in the offering materials (or
corresponding successor reports), (B) a description of material developments in
the Company’s business subsequent to the date of the latest of such Reports,
and (C) if material, appropriate pro forma financial information) and all
instructions and materials necessary to tender Securities pursuant to the
Offer, together with the information contained in clause (3).

     (2) Not later than the date upon which written notice of an Offer is
delivered to the Trustee as provided below, the Company shall deliver to
the Trustee an Officers’ Certificate as to (A) the amount of the Offer
(the “Offer Amount”), including information as to any other Senior
Subordinated Indebtedness included in the Offer, (B) the allocation of
the Net Available Cash from the Asset Dispositions pursuant to which such
Offer is being made and (C) the compliance of such allocation with the
provisions of Section 4.06(a) and (b). On such date, the Company shall
also irrevocably deposit with the Trustee or with
a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust) in Temporary Cash Investments,
maturing on the last day prior to the Purchase Date or on the Purchase
Date if funds are immediately

43

 

available by open of business, an amount equal to the Offer Amount to be
held for payment in accordance with the provisions of this Section. If
the Offer includes other Senior Subordinated Indebtedness, the deposit
described in the preceding sentence may be made with any other paying
agent pursuant to arrangements satisfactory to the Trustee. Upon the
expiration of the period for which the Offer remains open (the “Offer
Period”), the Company shall deliver to the Trustee for cancellation the
Securities or portions thereof which have been properly tendered to and
are to be accepted by the Company. The Trustee shall, on the Purchase
Date, mail or deliver payment (or cause the delivery of payment) to each
tendering Holder in the amount of the purchase price. In the event that
the aggregate purchase price of the Securities delivered by the Company
to the Trustee is less than the Offer Amount applicable to the
Securities, the Trustee shall deliver the excess to the Company
immediately after the expiration of the Offer Period for application in
accordance with this Section 4.06.

     (3) Holders electing to have a Security purchased shall be required
to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least three
Business Days prior to the Purchase Date. Holders shall be entitled to
withdraw their election if the Trustee or the Company receives not later
than one Business Day prior to the Purchase Date, a telex, facsimile
transmission or letter setting forth the name of the Holder, the
principal amount of the Security which was delivered for purchase by the
Holder and a statement that such Holder is withdrawing his election to
have such Security purchased. Holders whose Securities are purchased
only in part shall be issued new Securities equal in principal amount to
the unpurchased portion of the Securities surrendered.

     (4) At the time the Company delivers Securities to the Trustee
which are to be accepted for purchase, the Company shall also deliver an
Officers’ Certificate stating that such Securities are to be accepted by
the Company pursuant to and in accordance with the terms of this
Section. A Security shall be deemed to have been accepted for purchase
at the time the Trustee, directly or through an agent, mails or delivers
payment therefor to the surrendering Holder.

          (d) The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Securities pursuant
to this Section 4.06. To the extent that the provisions of any securities laws
or regulations conflict with provisions of this Section 4.06, the Company
shall comply with the applicable securities laws and regulations and shall not
be deemed to have breached its obligations under this Section 4.06 by virtue
of its compliance with such securities laws or regulations.

          SECTION 4.07. Limitation on Affiliate Transactions. (a) The Company shall
not, and shall not permit any Restricted Subsidiary to, enter into or permit
to exist
any transaction (including the purchase, sale, lease or exchange of any
property, employee compensation arrangements or the rendering of any service)
with, or for the benefit of, any Affiliate of the Company (an “Affiliate
Transaction”) unless:

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     (1) the terms of the Affiliate Transaction are no less favorable
to the Company or such Restricted Subsidiary than those that could be
obtained at the time of the Affiliate Transaction in arm’s-length
dealings with a Person who is not an Affiliate;

     (2) if such Affiliate Transaction involves an amount in excess of
$15.0 million, the terms of the Affiliate Transaction are set forth in
writing and a majority of the non-employee directors of the Company
disinterested with respect to such Affiliate Transaction have determined
in good faith that the criteria set forth in clause (1) are satisfied and
have approved the relevant Affiliate Transaction as evidenced by a
resolution of the Board of Directors; and

     (3) if such Affiliate Transaction involves an amount in excess of
$35.0 million, the Board of Directors shall also have received a written
opinion from an Independent Qualified Party to the effect that such
Affiliate Transaction is fair, from a financial standpoint, to the
Company and its Restricted Subsidiaries or is not less favorable to the
Company and its Restricted Subsidiaries than could reasonably be expected
to be obtained at the time in an arm’s-length transaction with a Person
who was not an Affiliate.

          (b) The provisions of Section 4.07(a) shall not prohibit:

     (1) any Investment (other than a Permitted Investment) or other
Restricted Payment, in each case permitted to be made pursuant to (but
only to the extent included in the calculation of the amount of
Restricted Payments made pursuant to paragraph (a)(3) of) Section 4.04;

     (2) any issuance of securities, or other payments, awards or grants
in cash, securities or otherwise pursuant to, or the funding of,
employment arrangements, stock options and stock ownership plans
approved by the Board of Directors;

     (3) loans or advances to employees in the ordinary course of
business in accordance with the past practices of the Company or its
Restricted Subsidiaries, but in any event not to exceed $1.0 million in
the aggregate outstanding at any one time;

     (4) the payment of reasonable fees in cash or equity to directors
of the Company and its Restricted Subsidiaries who are not employees of
the Company or its Restricted Subsidiaries;

     (5) any transaction with a Restricted Subsidiary or joint venture
or similar entity which would constitute an Affiliate Transaction
solely because the
Company or a Restricted Subsidiary owns an equity interest in or
otherwise controls such Restricted Subsidiary, joint venture or similar
entity; and

     (6) the issuance or sale of any Capital Stock (other than
Disqualified Stock) of the Company.

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          SECTION 4.08. Limitation on Line of Business. The Company shall not, and
shall not permit any Restricted Subsidiary to, engage in any business other
than a Related Business.

          SECTION 4.09. Limitation on the Sale or Issuance of Capital Stock of
Restricted Subsidiaries. The Company

     (1) shall not, and shall not permit any Restricted Subsidiary to,
sell, lease, transfer or otherwise dispose of any Capital Stock of any
Restricted Subsidiary to any Person (other than the Company or a
Wholly Owned Subsidiary), and

     (2) shall not permit any Restricted Subsidiary to issue any of its
Capital Stock (other than, if necessary, shares of its Capital Stock
constituting directors’ or other legally required qualifying shares) to
any Person (other than to the Company or a Wholly Owned Subsidiary),
unless

     (A) immediately after giving effect to such issuance, sale or
other disposition, neither the Company nor any of its Subsidiaries
own any Capital Stock of such Restricted Subsidiary; or

     (B) immediately after giving effect to such issuance, sale
or other disposition, such Restricted Subsidiary would no longer
constitute a Restricted Subsidiary and any Investment in such
Person remaining after giving effect thereto is treated as a new
Investment by the Company and such Investment would be permitted
to be made under Section 4.04 if made on the date of such
issuance, sale or other disposition.

          For purposes of this Section 4.09, the creation of a Lien on any Capital
Stock of a Restricted Subsidiary to secure Indebtedness of the Company or any
of its Restricted Subsidiaries shall not be deemed to be a violation of this
Section 4.09; provided, however, that any sale or other disposition by the
secured party of such Capital Stock following foreclosure of its Lien will be
subject to this Section 4.09.

          SECTION 4.10. Change of Control. (a) Upon the occurrence of a Change of
Control, each Holder shall have the right to require that the Company purchase
such Holder’s Securities at a purchase price in cash equal to 101% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date
of purchase (subject to the right of Holders of record on the relevant record
date to receive interest on the relevant interest payment date), in accordance
with the terms contemplated in Section 4.10(b). In the event that at the time
of such Change of Control the terms of any Senior Indebtedness of the Company
(including the Credit Agreement) restrict or prohibit the repurchase of
Securities pursuant to this Section, then prior to the mailing of the notice to
Holders provided for in Section 4.10(b) below but in any event within 30 days
following any
Change of Control, the Company shall (1) repay in full all such Senior
Indebtedness or (2) obtain the requisite consents under the agreements
governing such

46

 

Senior Indebtedness to permit the repurchase of the Securities as
provided for in Section 4.10(b).

          (b) Within 30 days following any Change of Control, the Company shall
mail a notice to each Holder with a copy to the Trustee (the “Change of
Control Offer”) stating:

     (1) that a Change of Control has occurred and that such Holder has
the right to require the Company to purchase such Holder’s Securities at
a purchase price in cash equal to 101% of the principal amount thereof on
the date of purchase, plus accrued and unpaid interest, if any, to the
date of purchase (subject to the right of Holders of record on the
relevant record date to receive interest on the relevant interest payment
date);

     (2) the circumstances and relevant facts regarding such Change of
Control (including information with respect to pro forma historical
income, cash flow and capitalization, in each case after giving effect
to such Change of Control);

     (3) the purchase date (which shall be no earlier than 30 days nor
later than 60 days from the date such notice is mailed); and

     (4) the instructions, as determined by the Company, consistent
with this Section 4.10, that a Holder must follow in order to have its
Securities purchased.

          (c) Holders electing to have a Security purchased shall be required to
surrender the Security, with an appropriate form duly completed, to the
Company at the address specified in the notice at least three Business Days
prior to the purchase date. Holders shall be entitled to withdraw their
election if the Trustee or the Company receives not later than one Business
Day prior to the purchase date, a telegram, telex, facsimile transmission or
letter setting forth the name of the Holder, the principal amount of the
Security which was delivered for purchase by the Holder and a statement that
such Holder is withdrawing his election to have such Security purchased.

          (d) On the purchase date, all Securities purchased by the Company under
this Section shall be delivered by the Company to the Trustee for
cancellation, and the Company shall pay the purchase price plus accrued and
unpaid interest, if any, to the Holders entitled thereto.

          (e) Notwithstanding the foregoing provisions of this Section 4.10, the
Company shall not be required to make a Change of Control Offer following a
Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set
forth in this Section 4.10 applicable to
a Change of Control Offer made by the Company and purchases all Securities
validly tendered and not withdrawn under such Change of Control Offer.

47

 

          (f) The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Securities pursuant
to this Section 4.10. To the extent that the provisions of any securities laws
or regulations conflict with the provisions of this Section 4.10, the Company
shall comply with the applicable securities laws and regulations and shall not
be deemed to have breached its obligations under this Section 4.10 by virtue
of its compliance with such securities laws or regulations.

          SECTION 4.11. Future Guarantors. The Company shall cause each domestic
Restricted Subsidiary that Incurs or Guarantees any Bank Indebtedness to, and
each Foreign Subsidiary that enters into a Guarantee of any Senior
Indebtedness (other than a Foreign Subsidiary that Guarantees Senior
Indebtedness Incurred by another Foreign Subsidiary) to, in each case, at the
same time, execute and deliver to the Trustee a Guaranty Agreement pursuant to
which such Restricted Subsidiary shall Guarantee payment of the Securities on
the same terms and conditions as those set forth in Article 11 of this
Indenture.

          SECTION 4.12. Compliance Certificate. The Company shall deliver to the
Trustee within 120 days after the end of each fiscal year of the Company an
Officers’ Certificate stating that in the course of the performance by the
signers of their duties as Officers of the Company they would normally have
knowledge of any Default and whether or not the signers know of any Default
that occurred during such period. If they do, the certificate shall describe
the Default, its status and what action the Company is taking or proposes to
take with respect thereto. The Company also shall comply with TIA § 314(a)(4).

          SECTION 4.13. Further Instruments and Acts. Upon request of the
Trustee, the Company shall execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out
more effectively the purpose of this Indenture.

48

 

Article 5

Successor Company

          SECTION 5.01. When Company May Merge or Transfer Assets. (a) The Company
shall not consolidate with or merge with or into, or convey, transfer or lease,
in one transaction or a series of transactions, directly or indirectly, all or
substantially all its assets to, any Person, unless:

     (1) the resulting, surviving or transferee Person (the “Successor
Company”) shall be a Person organized and existing under the laws of the
United States of America, any State thereof or the District of Columbia
and the Successor Company (if not the Company) shall expressly assume, by
an indenture supplemental hereto, executed and delivered to the Trustee,
in form reasonably satisfactory to the Trustee, all the obligations of
the Company under the Securities and this Indenture;

     (2) immediately after giving pro forma effect to such transaction
(and treating any Indebtedness which becomes an obligation of the
Successor Company or any Subsidiary as a result of such transaction as
having been Incurred by such Successor Company or such Subsidiary at the
time of such transaction), no Default shall have occurred and be
continuing;

     (3) immediately after giving pro forma effect to such transaction,
the Successor Company would be able to Incur an additional $1.00 of
Indebtedness pursuant to Section 4.03(a);

     (4) the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger or transfer and such supplemental
indenture (if any) comply with this Indenture; and

     (5) the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that the Holders will not recognize income, gain
or loss for Federal income tax purposes as a result of such transaction
and will be subject to Federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such
transaction had not occurred.

provided, however, that clause (3) shall not be applicable to (A) a
Restricted Subsidiary consolidating with, merging into or transferring all or
part of its properties and assets to the Company or (B) the Company merging
with an Affiliate of the Company solely for the purpose and with the sole
effect of reincorporating the Company in another jurisdiction.

          For purposes of this Section 5.01, the sale, lease, conveyance,
assignment, transfer or other disposition of all or substantially all of the
properties and assets of one or more Subsidiaries of the Company, which
properties and assets, if held by the Company instead of such Subsidiaries,
would constitute all or substantially all of the properties and

49

 

assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

          The Successor Company shall be the successor to the Company and shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture, and the predecessor Company, except in the
case of a lease, shall be released from the obligation to pay the principal of
and interest on the Securities.

          (b) The Company shall not permit any Subsidiary Guarantor to consolidate
with or merge with or into, or convey, transfer or lease, in one transaction
or a series of transactions, all or substantially all of its assets to any
Person (other than the Company or another Subsidiary Guarantor) unless:

     (1) except in the case of a Subsidiary Guarantor (x) that has been
disposed of in its entirety to another Person (other than to the Company
or an Affiliate of the Company), whether through a merger, consolidation
or sale of Capital Stock or assets or (y) that, as a result of the
disposition of all or a portion of its Capital Stock, ceases to be a
Subsidiary, in both cases, if in connection therewith the Company
provides an Officers’ Certificate to the Trustee to the effect that the
Company shall comply with its obligations under Section 4.06 in respect
of such disposition, the resulting, surviving or transferee Person (if
not such Subsidiary) shall be a Person organized and existing under the
laws of the jurisdiction under which such Subsidiary was organized or
under the laws of the United States of America, or any State thereof or
the District of Columbia, and such Person shall expressly assume, by a
Guaranty Agreement, in a form satisfactory to the Trustee, all the
obligations of such Subsidiary, if any, under its Subsidiary Guaranty;

     (2) immediately after giving effect to such transaction or
transactions on a pro forma basis (and treating any Indebtedness which
becomes an obligation of the resulting, surviving or transferee Person
as a result of such transaction as having been issued by such Person at
the time of such transaction), no Default shall have occurred and be
continuing; and

     (3) the Company delivers to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, merger or
transfer and such Guaranty Agreement, if any, complies with this
Indenture.

50

 

Article 6

Defaults and Remedies

          SECTION 6.01. Events of Default. An “Event of Default” occurs if:

     (1) the Company defaults in any payment of interest on any
Security when the same becomes due and payable, whether or not such
payment shall be prohibited by Article 10, and such default continues
for a period of 30 days;

     (2) the Company (A) defaults in the payment of the principal of any
Security when the same becomes due and payable at its Stated Maturity,
upon optional redemption, upon declaration of acceleration or otherwise,
whether or not such payment shall be prohibited by Article 10 or (B)
fails to purchase Securities when required pursuant to this Indenture or
the Securities, whether or not such purchase shall be prohibited by
Article 10;

     (3) the Company fails to comply with Section 5.01;

     (4) the Company fails to comply with Section 4.02, 4.03, 4.04,
4.05, 4.06, 4.07, 4.08, 4.09, 4.10 or 4.11 (other than a failure to
purchase Securities when required under Section 4.06 or 4.10) and such
failure continues for 30 days after the notice specified below;

     (5) the Company or any Subsidiary Guarantor fails to comply with any
of its agreements contained in the Securities or this Indenture (other
than those referred to in clause (1), (2), (3) or (4) above) and such
failure continues for 60 days after the notice specified below;

     (6) Indebtedness of the Company, any Subsidiary Guarantor or any
Significant Subsidiary is not paid within any applicable grace period
after final maturity or is accelerated by the holders thereof because of
a default and the total amount of such Indebtedness unpaid or
accelerated exceeds $10.0 million, or its foreign currency equivalent at
the time;

     (7) the Company, any Subsidiary Guarantor or any Significant
Subsidiary pursuant to or within the meaning of any Bankruptcy
Law:

     (A) commences a voluntary case;

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

     (C) consents to the appointment of a Custodian of it or for
any substantial part of its property; or

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

51

 

or takes any comparable action under any foreign laws relating to
insolvency;

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

     (A) is for relief against the Company, any Subsidiary
Guarantor or any Significant Subsidiary in an involuntary case;

     (B) appoints a Custodian of the Company, any Subsidiary
Guarantor or any Significant Subsidiary or for any substantial
part of its property; or

     (C) orders the winding up or liquidation of the Company,
any Subsidiary Guarantor or any Significant Subsidiary;

or any similar relief is granted under any foreign laws and the order
or decree remains unstayed and in effect for 60 days; or

     (9) any judgment or decree for the payment of money in an amount
(net of the amount of any surety bonds in respect of such judgment or
decree and any insurance proceeds available to the obligor in respect of
such judgment or decree from insurance carriers who in the reasonable
judgment of the Board of Directors are creditworthy and who have not
disclaimed their liability with respect thereto) in excess of $10.0
million or its foreign currency equivalent at the time is entered against
the Company, a Subsidiary Guarantor or any Significant Subsidiary,
remains outstanding for a period of 60 consecutive days following the
entry of such judgment or decree and is not discharged, waived or the
execution thereof stayed; or

     (10) any Subsidiary Guaranty ceases to be in full force and effect
(other than in accordance with the terms of such Subsidiary Guaranty) or
any Subsidiary Guarantor denies or disaffirms its obligations under its
Subsidiary Guaranty.

          The foregoing shall constitute Events of Default whatever the reason for
any such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body.

          The term “Bankruptcy Law” means Title 11, United States Code, or any
similar Federal or state law for the relief of debtors. The term “Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.

          A Default under clause (4) or (5) is not an Event of Default until the
Trustee or the Holders of at least 25% in principal amount of the outstanding
Securities notify the Company of the Default and the Company does not cure
such Default within the time specified after receipt of such notice. Such
notice must specify the Default, demand that it be remedied and state that
such notice is a “Notice of Default”.

52

 

          The Company shall deliver to the Trustee, within 30 days after the
occurrence thereof, written notice in the form of an Officers’ Certificate of
any Event of Default under clause (3), (6) or (10) and any event which with the
giving of notice or the lapse of time would become an Event of Default under
clause (4), (5) or (9), its status and what action the Company is taking or
proposes to take with respect thereto.

          SECTION 6.02. Acceleration. If an Event of Default (other than an Event of
Default specified in Section 6.01(7) or (8) with respect to the Company) occurs
and is continuing, the Trustee by notice to the Company, or the Holders of at
least 25% in principal amount of the Securities by notice to the Company and
the Trustee, may declare the principal of and accrued but unpaid interest on
all the Securities to be due and payable. Upon such a declaration, such
principal and interest shall be due and payable immediately. If an Event of
Default specified in Section 6.01(7) or (8) with respect to the Company occurs,
the principal of and interest on all the Securities shall ipso facto become and
be immediately due and payable without any declaration or other act on the part
of the Trustee or any Securityholders. The Holders of a majority in principal
amount of the Securities by notice to the Trustee may rescind an acceleration
and its consequences if the rescission would not conflict with any judgment or
decree and if all existing Events of Default have been cured or waived except
nonpayment of principal or interest that has become due solely because of
acceleration. No such rescission shall affect any subsequent Default or impair
any right consequent thereto.

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

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

          SECTION 6.04. Waiver of Past Defaults. The Holders of a majority in
principal amount of the Securities by notice to the Trustee may waive an
existing Default and its consequences except (a) a Default in the payment of
the principal of or interest on a Security, (b) a Default arising from the
failure to redeem or purchase any Security when required pursuant to this
Indenture or (c) a Default in respect of a provision that under Section 9.02
cannot be amended without the consent of each Securityholder affected. When a
Default is waived, it is deemed cured, but no such waiver shall extend to any
subsequent or other Default or impair any consequent right.

          SECTION 6.05. Control by Majority. The Holders of a majority in principal
amount of the Securities may direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or of exercising any
trust or power conferred on the Trustee. However, the Trustee may refuse to
follow any direction

53

 

that conflicts with law or this Indenture or, subject to Section 7.01, that
the Trustee determines is unduly prejudicial to the rights of other
Securityholders or would involve the Trustee in personal liability; provided,
however, that the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction. Prior to taking any
action under this Section, the Trustee shall be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses
caused by taking or not taking such action.

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

     (1) the Holder gives to the Trustee written notice stating that an
Event of Default is continuing;

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

     (3) such Holder or Holders offer to the Trustee reasonable security
or indemnity against any loss, liability or expense;

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

     (5) the Holders of a majority in principal amount of the
Securities do not give the Trustee a direction inconsistent with the
request during such 60-day period.

          A Securityholder may not use this Indenture to prejudice the rights of
another Securityholder or to obtain a preference or priority over another
Securityholder. In the event that the Definitive Securities are not issued to
any beneficial owner promptly after the Registrar has received a request from
the Holder of a Global Security to issue such Definitive Securities to such
beneficial owner or its nominee, the Company expressly agrees and acknowledges,
with respect to the right of any Holder to pursue a remedy pursuant to this
Indenture, the right of such beneficial holder of Securities to pursue such
remedy with respect to the portion of the Global Security that represents such
beneficial holder’s Securities is as if such Definitive Securities had been
issued.

          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 interest on the Securities held by such Holder, on or
after the respective due dates expressed in the Securities, or to bring suit
for the enforcement of any such payment on or after such respective dates,
shall not be impaired or affected without the consent of such Holder.

          SECTION 6.08. Collection Suit by Trustee. If an Event of Default
specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against
the Company for the

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whole amount then due and owing (together with interest on any unpaid
interest to the extent lawful) and the amounts provided for in Section 7.07.

          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 and the Securityholders allowed in
any judicial proceedings relative to the Company, its creditors or its
property and, unless prohibited by law or applicable regulations, may vote on
behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and its counsel, and any other amounts due the Trustee
under Section 7.07.

          SECTION 6.10. Priorities. If the Trustee collects any money or property
pursuant to this Article 6, 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 of Senior Indebtedness of the Company and, if
such money or property has been collected from a Subsidiary Guarantor,
to holders of Senior Indebtedness of such Subsidiary Guarantor, in each
case to the extent required by Articles 10 and 12;

     THIRD: to Securityholders for amounts due and unpaid on the
Securities for principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the
Securities for principal and interest, respectively; and

     FOURTH: to the Company.

          The Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section. At least 15 days before such record
date, the Company shall mail to each Securityholder and the Trustee a notice
that states the record date, the payment date and amount to be paid.

          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, 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 does not apply to a suit by the
Trustee, a
suit by a Holder pursuant to Section 6.07 or a suit by Holders of more
than 10% in aggregate principal amount of the Securities.

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          SECTION 6.12. Waiver of Stay or Extension Laws. The Company (to the extent
it may lawfully do so) shall not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and the Company
(to the extent that it may lawfully do so) hereby expressly waives all benefit
or advantage of any such law, and shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been
enacted.

Article 7

Trustee

          SECTION 7.01. Duties of Trustee. (a) If an Event of Default has occurred
and is continuing, the Trustee shall exercise the rights and powers vested in
it by this Indenture and use the same degree of care and skill in their
exercise as a prudent Person would exercise or use under the circumstances in
the conduct of such Person’s own affairs.

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

     (1) the Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture and no implied
covenants or obligations shall be read into this Indenture against the
Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of
this Indenture.

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

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

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

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     (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) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section.

          (e) The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree in writing with the Company.

          (f) Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law.

          (g) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur financial liability in the performance
of any of its duties hereunder or in the exercise of any of its rights or
powers, if it shall have reasonable grounds to believe that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

          (h) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section and to the provisions of the
TIA.

          SECTION 7.02. Rights of Trustee. (a) The Trustee may rely on any document
believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the
document.

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

          (c) The Trustee may act through agents and shall not be responsible for
the misconduct or negligence of any agent 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 believes to be authorized or within its rights
or powers; provided, however, that the Trustee’s conduct does not constitute
wilful misconduct or negligence.

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

          SECTION 7.03. Individual Rights of Trustee. The Trustee in its individual
or any other capacity may become the owner or pledgee of Securities and may

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otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee. However, in the event that the Trustee acquires
any conflicting interest, it must eliminate such conflict within 90 days, apply
to the SEC for permission to continue as Trustee (if this Indenture has been
qualified under the TIA) or resign. Any Paying Agent, Registrar, co-registrar
or co-paying agent may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11.

          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 Securities, it shall not be accountable for the Company’s
use of the proceeds from the Securities, and it shall not be responsible for
any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Securities or in the Securities other than
the Trustee’s certificate of authentication.

          SECTION 7.05. Notice of Defaults. If a Default occurs, is continuing and
is known to the Trustee, the Trustee shall mail to each Securityholder notice
of the Default within 90 days after it occurs. Except in the case of a Default
in the payment of principal of or interest on any Security (including payments
pursuant to the mandatory redemption provisions of such Security, if any), the
Trustee may withhold the notice if and so long as a committee of its Trust
Officers in good faith determines that withholding the notice is not opposed to
the interests of the Securityholders.

          SECTION 7.06. Reports by Trustee to Holders. As promptly as practicable
after each April 1 beginning with the April 1 following the date of this
Indenture, and in any event prior to June 1 in each year, the Trustee shall
mail to each Securityholder a brief report dated as of April 1 that complies
with TIA § 313(a). The Trustee also shall comply with TIA § 313(b).

          A copy of each report at the time of its mailing to Securityholders shall
be filed with the SEC and each stock exchange (if any) on which the Securities
are listed. The Company agrees to notify promptly the Trustee whenever the
Securities become listed on any stock exchange and of any delisting thereof.

          SECTION 7.07. Compensation and Indemnity. The Company shall pay to the
Trustee from time to time reasonable compensation for its services. The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all out-of-pocket expenses incurred or made by it, including costs
of collection, in addition to the compensation for its services. Such expenses
shall include the compensation and expenses, disbursements and advances of the
Trustee’s agents, counsel, accountants and experts. The Company shall indemnify
the Trustee against any and all loss, liability or expense (including agents’
and attorneys’ fees) incurred by it in connection with the administration of
this trust and the performance of its duties hereunder. The Trustee shall
notify the Company promptly of any claim for which it may seek indemnity.
Failure by
the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder. The Company shall defend the claim and the Trustee may
have separate counsel and the Company shall pay the fees and expenses of such
counsel. The Company

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need not reimburse any expense or indemnify against any loss, liability or
expense incurred by the Trustee through the Trustee’s own willful misconduct,
negligence or bad faith.

          To secure the Company’s payment obligations in this Section, the Trustee
shall have a lien prior to the Securities on all money or property held or
collected by the Trustee other than money or property held in trust to pay
principal of and interest on particular Securities.

          The Company’s payment obligations pursuant to this Section shall survive
the discharge of this Indenture. When the Trustee incurs expenses after the
occurrence of a Default specified in Section 6.01(7) or (8) with respect to the
Company, the expenses are intended to constitute expenses of administration
under the Bankruptcy Law.

          SECTION 7.08. Replacement of Trustee. The Trustee may resign at any time
by so notifying the Company. The Holders of a majority in principal amount of
the Securities may remove the Trustee by so notifying the Trustee and may
appoint a successor Trustee. The Company shall remove the Trustee if:

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

     (2) the Trustee is adjudged bankrupt or insolvent;

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

     (4) the Trustee otherwise becomes incapable of acting.

          If the Trustee resigns, is removed by the Company or by the Holders of a
majority in principal amount of the Securities and such Holders do not
reasonably promptly appoint a successor Trustee, or if a vacancy exists in the
office of Trustee for any reason (the Trustee in such event being referred to
herein as the retiring Trustee), the Company shall promptly appoint a
successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Thereupon the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property held
by it as Trustee to the successor Trustee, subject to the lien provided for in
Section 7.07.

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

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

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

          SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee.

          In case at the time such successor or successors by merger, conversion or
consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of
the successor to the Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Securities or in this Indenture
provided that the certificate of the Trustee shall have.

          SECTION 7.10. Eligibility; Disqualification. The Trustee shall at all
times satisfy the requirements of TIA § 310(a). The Trustee shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
§ 310(b); provided, however, that there shall be excluded from the operation of
TIA § 310(b)(1) any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Company
are outstanding if the requirements for such exclusion set forth in TIA §
310(b)(1) are met.

          SECTION 7.11. Preferential Collection of Claims Against Company. The
Trustee shall comply with TIA § 311(a), excluding any creditor relationship
listed in TIA § 311(b). A Trustee who has resigned or been removed shall be
subject to TIA § 311(a) to the extent indicated.

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Article 8

Discharge of Indenture; Defeasance

          SECTION 8.01. Discharge of Liability on Securities; Defeasance. (a) When
(1) the Company delivers to the Trustee all outstanding Securities (other than
Securities replaced pursuant to Section 2.07) for cancellation or (2) all
outstanding Securities have become due and payable, whether at maturity or on a
redemption date as a result of the mailing of a notice of redemption pursuant
to Article 3 hereof and the Company irrevocably deposits with the Trustee funds
sufficient to pay at maturity or upon redemption all outstanding Securities,
including interest thereon to maturity or such redemption date (other than
Securities replaced pursuant to Section 2.07), and if in either case the
Company pays all other sums payable hereunder by the Company, then this
Indenture shall, subject to Section 8.01(c), cease to be of further effect. The
Trustee shall acknowledge satisfaction and discharge of this Indenture on
demand of the Company accompanied by an Officers’ Certificate and an Opinion of
Counsel and at the cost and expense of the Company.

          (b) Subject to Sections 8.01(c) and 8.02, the Company at any time may
terminate (1) all its obligations under the Securities and this Indenture
(“legal defeasance option”) or (2) its obligations under Sections 4.02, 4.03,
4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10 and 4.11 and the operation of Sections
6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case of Sections
6.01(7) and (8), with respect only to Significant Subsidiaries and Subsidiary
Guarantors) and the limitations contained in Section 5.01(a)(3) (“covenant
defeasance option”). The Company may exercise its legal defeasance option
notwithstanding its prior exercise of its covenant defeasance option.

          If the Company exercises its legal defeasance option, payment of the
Securities may not be accelerated because of an Event of Default with respect
thereto. If the Company exercises its covenant defeasance option, payment of
the Securities may not be accelerated because of an Event of Default specified
in Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case of
Sections 6.01(7) and (8), with respect only to Significant Subsidiaries and
Subsidiary Guarantors) or because of the failure of the Company to comply with
Section 5.01(a)(3). If the Company exercises its legal defeasance option or its
covenant defeasance option, each Subsidiary Guarantor, if any, shall be
released from all its obligations with respect to its Subsidiary Guaranty.

          Upon satisfaction of the conditions set forth herein and upon request of
the Company, the Trustee shall acknowledge in writing the discharge of those
obligations that the Company terminates.

          (c) Notwithstanding clauses (a) and (b) above, the Company’s
obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and
7.08 and in this
Article 8 shall survive until the Securities have been paid in
full. Thereafter, the Company’s obligations in Sections 7.07, 8.04 and
8.05 shall survive.

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          SECTION 8.02. Conditions to Defeasance. The Company may exercise its
legal defeasance option or its covenant defeasance option only if:

     (1) the Company irrevocably deposits in trust with the Trustee
money or U.S. Government Obligations for the payment of principal of and
interest on the Securities to maturity or redemption, as the case may
be;

     (2) the Company delivers to the Trustee a certificate from a
nationally recognized firm of independent accountants expressing their
opinion that the payments of principal and interest when due and without
reinvestment on the deposited U.S. Government Obligations plus any
deposited money without investment will provide cash at such times and
in such amounts as will be sufficient to pay principal and interest when
due on all the Securities to maturity or redemption, as the case may be;

     (3) 123 days pass after the deposit is made and during the 123-day
period no Default specified in Sections 6.01(7) or (8) with respect to
the Company occurs which is continuing at the end of the period;

     (4) the deposit does not constitute a default under any other
agreement binding on the Company and is not prohibited by Article 10 or
12;

     (5) the Company delivers to the Trustee an Opinion of Counsel to
the effect that the trust resulting from the deposit does not
constitute, or is qualified as, a regulated investment company under the
Investment Company Act of 1940;

     (6) in the case of the legal defeasance option, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (A) the
Company 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 Federal income tax law, in either
case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Securityholders will not recognize income, gain or
loss for Federal income tax purposes as a result of such defeasance and
will be subject to Federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such
defeasance had not occurred;

     (7) in the case of the covenant defeasance option, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Securityholders will not recognize income, gain or loss for
Federal income tax purposes as a result of such covenant defeasance and
will be subject to Federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such
covenant defeasance had not occurred; and

     (8) the Company delivers to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that all conditions precedent to the
defeasance and discharge of the Securities as contemplated by this
Article 8 have been complied with.

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          Before or after a deposit, the Company may make arrangements satisfactory
to the Trustee for the redemption of Securities at a future date in accordance
with Article 3.

          SECTION 8.03. Application of Trust Money. The Trustee shall hold in
trust money or U.S. Government Obligations deposited with it pursuant to this
Article 8. It shall apply the deposited money and the money from U.S.
Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal of and interest on the Securities.
Money and securities so held in trust are not subject to Article 10.

          SECTION 8.04. Repayment to Company. The Trustee and the Paying Agent
shall promptly turn over to the Company upon request any excess money or
securities held by them at any time.

          Subject to any applicable abandoned property law, the Trustee and the
Paying Agent shall pay to the Company upon request any money held by them for
the payment of principal or interest that remains unclaimed for two years,
and, thereafter, Securityholders entitled to the money must look to the
Company for payment as general creditors.

          SECTION 8.05. Indemnity for Government Obligations. The Company shall pay
and shall indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against deposited U.S. Government Obligations or the principal
and interest received on such U.S. Government Obligations.

          SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with this Article
8 by reason of any legal proceeding or by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s and each Subsidiary Guarantor’s
obligations under this Indenture, each Subsidiary Guaranty and the Securities
shall be revived and reinstated as though no deposit had occurred pursuant to
this Article 8 until such time as the Trustee or Paying Agent is permitted to
apply all such money or U.S. Government Obligations in accordance with this
Article 8; provided, however, that, if the Company has made any payment of
interest on or principal of any Securities because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money or U.S. Government
Obligations held by the Trustee or Paying Agent.

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Article 9

Amendments

          SECTION 9.01. Without Consent of Holders. The Company, the
Subsidiary Guarantors and the Trustee may amend this Indenture or the
Securities without notice to or consent of any Securityholder:

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

     (2) to comply with Article 5;

     (3) to provide for uncertificated Securities in addition to or in
place of certificated Securities; provided, however, that the
uncertificated Securities are issued in registered form for purposes of
Section 163(f) of the Code or in a manner such that the uncertificated
Securities are described in Section 163(f)(2)(B) of the Code;

     (4) to make any change in Article 10 or 12 that would limit
or terminate the benefits available to any holder of Senior
Indebtedness of the Company or of a Subsidiary Guarantor (or
Representatives therefor) under Article 10 or 12;

     (5) to add Guarantees with respect to the Securities, including
any Subsidiary Guaranties, or to secure the Securities;

     (6) to add to the covenants of the Company or any Subsidiary
Guarantor for the benefit of the Holders or to surrender any right or
power herein conferred upon the Company or any Subsidiary Guarantor;

     (7) to comply with any requirements of the SEC in connection with
qualifying, or maintaining the qualification of, this Indenture under
the TIA;

     (8) to make any change that does not adversely affect the rights of
any Securityholder; or

     (9) to make any amendment to the provisions of this Indenture
relating to the transfer and legending of Securities; provided, however,
that (a) compliance with this Indenture as so amended would not result in
Securities being transferred in violation of the Securities Act or any
other applicable securities law and (b) such amendment does not
materially and adversely affect the rights of Holders to transfer
Securities.

          An amendment under this Section may not make any change that adversely
affects the rights under Article 10 or 12 of any holder of Senior Indebtedness
of the Company or of a Subsidiary Guarantor then outstanding unless the holders
of such Senior Indebtedness (or their Representative) consent to such change.

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          After an amendment under this Section becomes effective, the Company shall
mail to Securityholders a notice briefly describing such amendment. The failure
to give such notice to all Securityholders, or any defect therein, shall not
impair or affect the validity of an amendment under this Section.

          SECTION 9.02. With Consent of Holders. The Company, the Subsidiary
Guarantors and the Trustee may amend this Indenture or the Securities with the
written consent of the Holders of at least a majority in principal amount of
the Securities then outstanding (including consents obtained in connection
with a tender offer or exchange for the Securities) and any past default or
compliance with any provisions may also be waived with the consent of the
Holders of at least a majority in principal amount of the Securities then
outstanding. However, without the consent of each Securityholder affected
thereby, an amendment or waiver may not:

     (1) reduce the amount of Securities whose Holders must consent to
an amendment;

     (2) reduce the rate of or extend the time for payment of interest on
any Security;

     (3) reduce the principal of or change the Stated Maturity of
any Security;

     (4) change the provisions applicable to the redemption of any
Security contained in Article 3 hereof or paragraph 5 of the Securities;

     (5) make any Security payable in money other than that stated in
the Security;

     (6) make any change in Section 6.04 or 6.07 or the second sentence
of this Section; or

     (7) make any changes in the ranking or priority of any Security
that would adversely affect the Securityholders;

     (8) make any change in, or release other than in accordance with
this Indenture, any Subsidiary Guaranty that would adversely affect the
Securityholders.

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

          An amendment under this Section may not make any change that adversely
affects the rights under Article 10 or 12 of any holder of Senior Indebtedness
of the Company or of a Subsidiary Guarantor then outstanding unless the holders
of such Senior Indebtedness (or any group or representative thereof authorized
to give a consent) consent to such change.

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          After an amendment under this Section becomes effective, the Company shall
mail to Securityholders a notice briefly describing such amendment. The failure
to give such notice to all Securityholders, or any defect therein, shall not
impair or affect the validity of an amendment under this Section.

          SECTION 9.03. Compliance with Trust Indenture Act. Every amendment to this
Indenture or the Securities shall comply with the TIA as then in effect.

          SECTION 9.04. Revocation and Effect of Consents and Waivers. A consent to
an amendment or a waiver by a Holder of a Security shall bind the Holder and
every subsequent Holder of that Security or portion of the Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent or waiver is not made on the Security. However, any such Holder
or subsequent Holder may revoke the consent or waiver as to such Holder’s
Security or portion of the Security if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective. After an
amendment or waiver becomes effective, it shall bind every Securityholder. An
amendment or waiver becomes effective upon the execution of such amendment or
waiver by the Trustee.

          The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Securityholders entitled to give their consent or
take any other action described above or required or permitted to be taken
pursuant to this Indenture. If a record date is fixed, then notwithstanding the
immediately preceding paragraph, those Persons who were Securityholders at such
record date (or their duly designated proxies), and only those Persons, shall
be entitled to give such consent or to revoke any consent previously given or
to take any such action, whether or not such Persons continue to be Holders
after such record date. No such consent shall be valid or effective for more
than 120 days after such record date.

          SECTION 9.05. Notation on or Exchange of Securities. If an amendment
changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security regarding the changed terms and return it to the
Holder. Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Security shall issue and the Trustee shall authenticate a
new Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such
amendment.

          SECTION 9.06. Trustee To Sign Amendments. The Trustee shall sign any
amendment authorized pursuant to this Article 9 if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may but need not sign it. In signing such amendment the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it
and to receive, and (subject to Section
7.01) shall be fully protected in relying upon, an Officers’ Certificate
and an Opinion of Counsel stating that such amendment is authorized or
permitted by this Indenture.

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          SECTION 9.07. Payment for Consent. Neither the Company nor any Affiliate
of the Company shall, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder for
or as an inducement to any consent, waiver or amendment of any of the terms or
provisions of this Indenture or the Securities unless such consideration is
offered to all Holders and is paid to all Holders that so consent, waive or
agree to amend in the time frame set forth in solicitation documents relating
to such consent, waiver or agreement.

Article 10

Subordination

          SECTION 10.01. Agreement To Subordinate. The Company agrees, and each
Securityholder by accepting a Security agrees, that the Indebtedness evidenced
by the Securities is subordinated in right of payment, to the extent and in
the manner provided in this Article 10, to the prior payment of all Senior
Indebtedness of the Company and that the subordination is for the benefit of
and enforceable by the holders of such Senior Indebtedness. The Securities
shall in all respects rank pari passu with all other Senior Subordinated
Indebtedness of the Company and only Indebtedness of the Company which is
Senior Indebtedness of the Company shall rank senior to the Securities in
accordance with the provisions set forth herein. All provisions of this
Article 10 shall be subject to Section 10.12.

          SECTION 10.02. Liquidation, Dissolution, Bankruptcy. Upon any payment or
distribution of the assets of the Company to creditors upon a total or partial
liquidation or a total or partial dissolution of the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property:

     (1) holders of Senior Indebtedness of the Company shall be entitled
to receive payment in full in cash of such Senior Indebtedness before
Securityholders shall be entitled to receive any payment of principal of
or interest on the Securities; and

     (2) until such Senior Indebtedness is paid in full in cash, any
payment or distribution to which Securityholders would be entitled but
for this Article 10 shall be made to holders of such Senior Indebtedness
as their interests may appear, except that Securityholders may receive
shares of stock and any debt securities that are subordinated to such
Senior Indebtedness to at least the same extent as the Securities.

          SECTION 10.03. Default on Senior Indebtedness of the Company. The Company
shall not pay the principal of or interest on the Securities or make any
deposit pursuant to Section 8.01 and may not purchase, redeem or otherwise
retire any Securities

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(collectively, “pay the Securities”) if either of the following (a “Payment
Default”) occurs (1) any Designated Senior Indebtedness of the Company is not
paid in full in cash when due; or (2) any other default on Designated Senior
Indebtedness of the Company occurs and the maturity of such Designated Senior
Indebtedness is accelerated in accordance with its terms unless, in either
case, the Payment Default has been cured or waived and any such acceleration
has been rescinded or such Designated Senior Indebtedness has been paid in
full in cash; provided, however, that the Company shall be entitled to pay the
Securities without regard to the foregoing if the Company and the Trustee
receive written notice approving such payment from the Representatives of all
Designated Senior Indebtedness with respect to which the Payment Default has
occurred and is continuing.

          During the continuance of any default (other than a Payment Default) with
respect to any Designated Senior Indebtedness of the Company pursuant to which
the maturity thereof may be accelerated without further notice (except such
notice as may be required to effect such acceleration) or the expiration of any
applicable grace periods, the Company shall not pay the Securities for a period
(a “Payment Blockage Period”) commencing upon the receipt by the Trustee of
(with a copy to the Company) written notice (a “Blockage Notice”) of such
default from the Representative of such Designated Senior Indebtedness
specifying an election to effect a Payment Blockage Period and ending 179 days
thereafter. The Payment Blockage Period shall end earlier if such Payment
Blockage Period is terminated: (1) by written notice to the Trustee and the
Company from the Person or Persons who gave such Blockage Notice; (2) because
the default giving rise to such Blockage Notice is cured, waived or otherwise
no longer continuing; or (3) because such Designated Senior Indebtedness has
been discharged or repaid in full.

          Notwithstanding the provisions described in the immediately preceding two
sentences (but subject to the provisions contained in the first sentence of
this Section), unless the holders of such Designated Senior Indebtedness or the
Representative of such Designated Senior Indebtedness shall have accelerated
the maturity of such Designated Senior Indebtedness, the Company shall be
entitled to resume payments on the Securities after termination of such Payment
Blockage Period. The Securities shall not be subject to more than one Payment
Blockage Period in any consecutive 360-day period, irrespective of the number
of defaults with respect to Designated Senior Indebtedness of the Company
during such period. For purposes of this Section, no default or event of
default which existed or was continuing on the date of the commencement of any
Payment Blockage Period with respect to the Designated Senior Indebtedness of
the Company initiating such Payment Blockage Period shall be, or be made, the
basis of the commencement of a subsequent Payment Blockage Period by the
Representative of such Designated Senior Indebtedness unless such default or
event of default shall have been cured or waived for a period of not less than
90 consecutive days.

          SECTION 10.04. Acceleration of Payment of Securities. If payment of the
Securities is accelerated because of an Event of Default, the Company or the
Trustee shall promptly notify the holders of the Designated Senior
Indebtedness of the Company (or their Representatives) of the acceleration.

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          SECTION 10.05. When Distribution Must Be Paid Over. If a distribution is
made to Securityholders that because of this Article 10 should not have been
made to them, the Securityholders who receive the distribution shall hold it in
trust for holders of Senior Indebtedness of the Company and pay it over to them
as their interests may appear.

          SECTION 10.06. Subrogation. After all Senior Indebtedness of the Company
is paid in full and until the Securities are paid in full, Securityholders
shall be subrogated to the rights of holders of such Senior Indebtedness to
receive distributions applicable to such Senior Indebtedness. A distribution
made under this Article 10 to holders of such Senior Indebtedness which
otherwise would have been made to Securityholders is not, as between the
Company and Securityholders, a payment by the Company on such Senior
Indebtedness.

          SECTION 10.07. Relative Rights. This Article 10 defines the relative
rights of Securityholders and holders of Senior Indebtedness of the Company.
Nothing in this Indenture shall:

     (1) impair, as between the Company and Securityholders, the
obligation of the Company, which is absolute and unconditional, to pay
principal of and interest on the Securities in accordance with their
terms; or

     (2) prevent the Trustee or any Securityholder from exercising
its available remedies upon a Default, subject to the rights of
holders of Senior Indebtedness of the Company to receive
distributions otherwise payable to Securityholders.

          SECTION 10.08. Subordination May Not Be Impaired by Company. No right of
any holder of Senior Indebtedness of the Company to enforce the subordination
of the Indebtedness evidenced by the Securities shall be impaired by any act
or failure to act by the Company or by its failure to comply with this
Indenture.

          SECTION 10.09. Rights of Trustee and Paying Agent. Notwithstanding
Section 10.03, the Trustee or Paying Agent shall continue to make payments on
the Securities and shall not be charged with knowledge of the existence of
facts that under this Article 10 would prohibit the making of any such
payments unless, not less than two Business Days prior to the date of such
payment, a Trust Officer of the Trustee receives notice satisfactory to it
that such payments are prohibited by this Article 10. The Company, the
Registrar or co-registrar, the Paying Agent, a Representative or a holder of
Senior Indebtedness of the Company shall be entitled to give the notice;
provided, however, that, if an issue of Senior Indebtedness of the Company has
a Representative, only the Representative shall be entitled to give the
notice.

          The Trustee in its individual or any other capacity shall be entitled to
hold Senior Indebtedness of the Company with the same rights it would have if
it were not Trustee. The Registrar and co-registrar and the Paying Agent shall
be entitled to do the same with like rights. The Trustee shall be entitled to
all the rights set forth in this

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Article 10 with respect to any Senior Indebtedness of the Company which may
at any time be held by it, to the same extent as any other holder of such
Senior Indebtedness; and nothing in Article 7 shall deprive the Trustee of
any of its rights as such holder. Nothing in this Article 10 shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 7.07.

          SECTION 10.10. Distribution or Notice to Representative. Whenever any
Person is to make a distribution or give a notice to holders of Senior
Indebtedness of the Company, such Person shall be entitled to make such
distribution or give such notice to their Representative (if any).

          SECTION 10.11. Article 10 Not To Prevent Events of Default or Limit Right
To Accelerate. The failure to make a payment pursuant to the Securities by
reason of any provision in this Article 10 shall not be construed as
preventing the occurrence of a Default. Nothing in this Article 10 shall have
any effect on the right of the
Securityholders or the Trustee to accelerate the maturity of the Securities.

          SECTION 10.12. Trust Moneys Not Subordinated. Notwithstanding anything
contained herein to the contrary, payments from money or the proceeds of U.S.
Government Obligations held in trust under Article 8 by the Trustee for the
payment of principal of and interest on the Securities shall not be
subordinated to the prior payment of any Senior Indebtedness of the Company or
subject to the restrictions set forth in this Article 10, and none of the
Securityholders shall be obligated to pay over any such amount to the Company
or any holder of Senior Indebtedness of the Company or any other creditor of
the Company.

          SECTION 10.13. Trustee Entitled To Rely. Upon any payment or distribution
pursuant to this Article 10, the Trustee and the Securityholders shall be
entitled to rely (a) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section
10.02 are pending, (b) upon a certificate of the liquidating trustee or agent
or other Person making such payment or distribution to the Trustee or to the
Securityholders or (c) upon the Representatives of Senior Indebtedness of the
Company for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of such Senior Indebtedness and
other Indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article 10. In the event that the Trustee determines, in
good faith, that evidence is required with respect to the right of any Person
as a holder of Senior Indebtedness of the Company to participate in any
payment or distribution pursuant to this Article 10, the Trustee shall be
entitled to request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held
by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and other facts pertinent to the rights of such
Person under this Article 10,
and, if such evidence is not furnished, the Trustee shall be entitled to
defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment. The provisions of Sections 7.01
and 7.02 shall be applicable to all actions or omissions of actions by the
Trustee pursuant to this Article 10.

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          SECTION 10.14. Trustee To Effectuate Subordination. Each
Securityholder by accepting a Security authorizes and directs the Trustee on
his behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination between the Securityholders and
the holders of Senior Indebtedness of the Company as provided in this Article
10 and appoints the Trustee as attorney-in-fact for any and all such purposes.

          SECTION 10.15. Trustee Not Fiduciary for Holders of Senior Indebtedness
of the Company. The Trustee shall not be deemed to owe any fiduciary duty to
the holders of Senior Indebtedness of the Company and shall not be liable to
any such holders if it shall mistakenly pay over or distribute to
Securityholders or the Company or any other Person, money or assets to which
any holders of Senior Indebtedness of the Company shall be entitled by virtue
of this Article 10 or otherwise.

          SECTION 10.16. Reliance by Holders of Senior Indebtedness of the Company
on Subordination Provisions. Each Securityholder by accepting a Security
acknowledges and agrees that the foregoing subordination provisions are, and
are intended to be, an inducement and a consideration to each holder of any
Senior Indebtedness of the Company, whether such Senior Indebtedness was
created or acquired before or after the issuance of the Securities, to acquire
and continue to hold, or to continue to hold, such Senior Indebtedness and such
holder of such Senior Indebtedness shall be deemed conclusively to have relied
on such subordination provisions in acquiring and continuing to hold, or in
continuing to hold, such Senior Indebtedness.

Article 11

Subsidiary Guaranties

          SECTION 11.01. Guaranties. Each Subsidiary Guarantor hereby
unconditionally and irrevocably guarantees, jointly and severally, to each
Holder and to the Trustee and its successors and assigns (a) the full and
punctual payment of principal of and interest on the Securities when due,
whether at maturity, by acceleration, by redemption or otherwise, and all other
monetary obligations of the Company under this Indenture and the Securities and
(b) the full and punctual performance within applicable grace periods of all
other obligations of the Company under this Indenture and the Securities (all
the foregoing being hereinafter collectively called the “Guaranteed
Obligations”). Each Subsidiary Guarantor further agrees that the Guaranteed
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from such Subsidiary Guarantor and that such Subsidiary
Guarantor will remain bound under this Article 11 notwithstanding any extension
or renewal of any Guaranteed Obligation.

          Each Subsidiary Guarantor waives presentation to, demand of, payment
from and protest to the Company of any of the Guaranteed Obligations and also
waives notice of protest for nonpayment. Each Subsidiary Guarantor waives
notice of any

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default under the Securities or the Guaranteed Obligations. The obligations of
each Subsidiary Guarantor hereunder shall not be affected by (1) the failure of
any Holder or the Trustee to assert any claim or demand or to enforce any right
or remedy against the Company or any other Person (including any Subsidiary
Guarantor) under this Indenture, the Securities or any other agreement or
otherwise; (2) any extension or renewal of any thereof; (3) any rescission,
waiver, amendment or modification of any of the terms or provisions of this
Indenture, the Securities or any other agreement; (4) the release of any
security held by any Holder or the Trustee for the Guaranteed Obligations or
any of them; (5) the failure of any Holder or the Trustee to exercise any right
or remedy against any other guarantor of the Guaranteed Obligations; or (6)
except as set forth in Section 11.06, any change in the ownership of such
Subsidiary Guarantor.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guaranty
herein constitutes a guarantee of payment, performance and compliance when
due (and not a guarantee of collection) and waives any right to require that
any resort be had by any Holder or the Trustee to any security held for
payment of the Guaranteed Obligations.

          Each Subsidiary Guaranty is, to the extent and in the manner set forth
in Article 12, subordinated and subject in right of payment to the prior
payment in full of the principal of and premium, if any, and interest on all
Senior Indebtedness of the Subsidiary Guarantor giving such Subsidiary
Guaranty and each Subsidiary Guaranty is made subject to such provisions of
this Indenture.

          Except as expressly set forth in Sections 8.01(b), 11.02 and 11.06, the
obligations of each Subsidiary Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and shall not
be subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of
the Guaranteed Obligations or otherwise. Without limiting the generality of
the foregoing, the obligations of each Subsidiary Guarantor herein shall not
be discharged or impaired or otherwise affected by the failure of any Holder
or the Trustee to assert any claim or demand or to enforce any remedy under
this Indenture, the Securities or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the obligations, or by any other act or thing
or omission or delay to do any other act or thing which may or might in any
manner or to any extent vary the risk of such Subsidiary Guarantor or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of
law or equity.

          Each Subsidiary Guarantor further agrees that its Guarantee herein shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of principal of or interest on any Guaranteed
Obligation is rescinded or
must otherwise be restored by any Holder or the Trustee upon the
bankruptcy or reorganization of the Company or otherwise.

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          In furtherance of the foregoing and not in limitation of any other right
which any Holder or the Trustee has at law or in equity against any Subsidiary
Guarantor by virtue hereof, upon the failure of the Company to pay the
principal of or interest on any Guaranteed Obligation when and as the same
shall become due, whether at maturity, by acceleration, by redemption or
otherwise, or to perform or comply with any other Guaranteed Obligation, each
Subsidiary Guarantor hereby promises to and shall, upon receipt of written
demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the
Holders or the Trustee an amount equal to the sum of (A) the unpaid amount of
such Guaranteed Obligations, (B) accrued and unpaid interest on such
Guaranteed Obligations (but only to the extent not prohibited by law) and (C)
all other monetary Guaranteed Obligations of the Company to the Holders and
the Trustee.

          Each Subsidiary Guarantor agrees that it shall not be entitled to any
right of subrogation in respect of any Obligations guaranteed hereby until
payment in full of all Obligations and all obligations to which the Obligations
are subordinated as provided in Article 12. Each Subsidiary Guarantor further
agrees that, as between it, on the one hand, and the Holders and the Trustee,
on the other hand, (i) the maturity of the Guaranteed Obligations may be
accelerated as provided in Article 6 for the purposes of such Subsidiary
Guarantor’s Subsidiary Guaranty herein, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the Guaranteed
Obligations, and (ii) in the event of any declaration of acceleration of such
Guaranteed Obligations as provided in Article 6, such Guaranteed Obligations
(whether or not due and payable) shall forthwith become due and payable by such
Subsidiary Guarantor for the purposes of this Section.

          Each Subsidiary Guarantor also agrees to pay any and all costs and
expenses (including reasonable attorneys’ fees) incurred by the Trustee or any
Holder in enforcing any rights under this Section.

          SECTION 11.02. Limitation on Liability. Any term or provision of this
Indenture to the contrary notwithstanding, the maximum aggregate amount of
the Guaranteed Obligations guaranteed hereunder by any Subsidiary Guarantor
shall not exceed the maximum amount that can be hereby Guaranteed without
rendering this Indenture, as it relates to such Subsidiary Guarantor,
voidable under applicable law relating to fraudulent conveyance or fraudulent
transfer or similar laws affecting the rights of creditors generally.

          SECTION 11.03. Successors and Assigns. This Article 11 shall be binding
upon each Subsidiary Guarantor and its successors and assigns and shall enure
to the benefit of the successors and assigns of the Trustee and the Holders
and, in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges conferred upon that party in this Indenture
and in the Securities shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions of this
Indenture.

          SECTION 11.04. No Waiver. Neither a failure nor a delay on the part of
either the Trustee or the Holders in exercising any right, power or privilege
under this

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Article 11 shall operate as a waiver thereof, nor shall a single or partial
exercise thereof preclude any other or further exercise of any right, power
or privilege. The rights, remedies and benefits of the Trustee and the
Holders herein expressly specified are cumulative and not exclusive of any
other rights, remedies or benefits which either may have under this Article
11 at law, in equity, by statute or otherwise.

          SECTION 11.05. Modification. No modification, amendment or waiver of any
provision of this Article 11, nor the consent to any departure by any
Subsidiary Guarantor therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given. No notice to or demand on any Subsidiary Guarantor in any
case shall entitle such Subsidiary Guarantor to any other or further notice
or demand in the same, similar or other circumstances.

          SECTION 11.06. Release of Subsidiary Guarantor. A Subsidiary
Guarantor will be released from its obligations under this Article 11
(other than any obligation that may have arisen under Section 11.07)

     (1) upon the sale (including any sale pursuant to any exercise of
remedies by a holder of Indebtedness of the Company or of such Subsidiary
Guarantor) or other disposition (including by way of consolidation or
merger) of a Subsidiary Guarantor,

     (2) upon the sale or disposition of all or substantially all the
assets of such Subsidiary Guarantor,

     (3) upon the designation of such Subsidiary Guarantor as
an Unrestricted Subsidiary in accordance with the terms of this
Indenture,

     (4) at such time as such Subsidiary Guarantor does not have any
Indebtedness outstanding that would have required such Subsidiary
Guarantor to enter into a Guaranty Agreement pursuant to Section 4.11
and the Company provides an Officers’ Certificate to the Trustee
certifying that no such Indebtedness is outstanding and that the Company
elects to have such Subsidiary Guarantor released from this Article 11,
or

     (5) upon defeasance of the Securities pursuant to Article 8, or

     (6) upon the discharge of the Company’s obligations in accordance
with this Indenture;

provided, however, that in the case of clauses (1) and (2) above, (i)
such sale or other disposition is made to a Person other than the Company
or a Subsidiary of the Company, (ii) such sale or disposition is
otherwise permitted by this Indenture
and (iii) the Company provides an Officers’ Certificate to the Trustee to
the effect that the Company will comply with its obligations under
Section 4.06.

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At the request of the Company, the Trustee shall execute and deliver an
appropriate instrument evidencing such release.

          SECTION 11.07. Contribution. Each Subsidiary Guarantor that makes a
payment under its Subsidiary Guaranty shall be entitled upon payment in full of
all Guaranteed Obligations under this Indenture to a contribution from each
other Subsidiary Guarantor in an amount equal to such other Subsidiary
Guarantor’s pro rata portion of such payment based on the respective net assets
of all the Subsidiary Guarantors at the time of such payment determined in
accordance with GAAP.

Article 12

Subordination of Subsidiary Guaranties

          SECTION 12.01. Agreement To Subordinate. Each Subsidiary Guarantor agrees,
and each Securityholder by accepting a Security agrees, that the Indebtedness
evidenced by such Subsidiary Guarantor’s Subsidiary Guaranty is subordinated in
right of payment, to the extent and in the manner provided in this Article 12,
to the prior payment of all Senior Indebtedness of such Subsidiary Guarantor
and that the subordination is for the benefit of and enforceable by the holders
of such Senior Indebtedness. The Obligations of a Subsidiary Guarantor shall in
all respects rank pari passu with all other Senior Subordinated Indebtedness of
such Subsidiary Guarantor and only Senior Indebtedness of such Subsidiary
Guarantor (including such Subsidiary Guarantor’s Guaranty of Senior
Indebtedness of the Company) shall rank senior to the Obligations of such
Subsidiary Guarantor in accordance with the provisions set forth herein.

          SECTION 12.02. Liquidation, Dissolution, Bankruptcy. Upon any payment or
distribution of the assets of any Subsidiary Guarantor to creditors upon a
total or partial liquidation or a total or partial dissolution of such
Subsidiary Guarantor or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to such Subsidiary Guarantor or its
property:

     (1) holders of Senior Indebtedness of such Subsidiary Guarantor
shall be entitled to receive payment in full in cash of such Senior
Indebtedness before Securityholders shall be entitled to receive any
payment pursuant to the Subsidiary Guaranty of such Subsidiary
Guarantor; and

     (2) until the Senior Indebtedness of any Subsidiary Guarantor is
paid in full in cash, any payment or distribution to which
Securityholders would be entitled but for this Article 12 shall be made
to holders of such Senior Indebtedness as their interests may appear,
except that Securityholders may receive shares of stock and any debt
securities of such Subsidiary Guarantor that

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are subordinated to such Senior Indebtedness to at least the same
extent as Subsidiary Guaranty.

          SECTION 12.03. Default on Senior Indebtedness of Subsidiary
Guarantor. No Subsidiary Guarantor shall make payments on its Subsidiary
Guaranty or purchase, redeem or otherwise retire or defease any Securities or
other Obligations (collectively, “pay its Subsidiary Guaranty”) if either of
the following (a “Payment Default”) occurs (1) any Designated Senior
Indebtedness of such Subsidiary Guarantor is not paid in full in cash when
due; or (2) any other default on Designated Senior Indebtedness of such
Subsidiary Guarantor occurs and the maturity of such Designated Senior
Indebtedness is accelerated in accordance with its terms; unless, in either
case, the Payment Default has been cured or waived and any such acceleration
has been rescinded or such Designated Senior Indebtedness has been paid in
full in cash; provided, however, that any Subsidiary Guarantor shall be
entitled to pay its Subsidiary Guaranty without regard to the foregoing if
such Subsidiary Guarantor and the Trustee receive written notice approving
such payment from the Representatives of all Designated Senior Indebtedness
with respect to which the Payment Default has occurred and is continuing.

          During the continuance of any default (other than a Payment Default) with
respect to any Designated Senior Indebtedness of such Subsidiary Guarantor
pursuant to which the maturity thereof may be accelerated without further
notice (except such notice as may be required to effect such acceleration) or
the expiration of any applicable grace periods, such Subsidiary Guarantor shall
not pay its Subsidiary Guaranty for a period (a “Payment Blockage Period”)
commencing upon the receipt by the Trustee of (with a copy to such Subsidiary
Guarantor) written notice (a “Blockage Notice”) of such default from the
Representative of such Designated Senior Indebtedness specifying an election to
effect a Payment Blockage Period and ending 179 days thereafter. The Payment
Blockage Period shall end earlier if such Payment Blockage Period is
terminated (1) by written notice to the Trustee and such Subsidiary Guarantor
from the Person or Persons who gave such Blockage Notice; (2) because the
default giving rise to such Blockage Notice is cured, waived or otherwise no
longer continuing; or (3) because such Designated Senior Indebtedness has
been discharged or repaid in full.

          Notwithstanding the provisions described in the immediately preceding two
sentences (but subject to the provisions contained in the first sentence of
this Section), unless the holders of such Designated Senior Indebtedness giving
such Payment Notice or the Representative of such Designated Senior
Indebtedness shall have accelerated the maturity of such Designated Senior
Indebtedness, any Subsidiary Guarantor shall be entitled to resume payments
pursuant to its Subsidiary Guaranty after termination of such Payment Blockage
Period. No Subsidiary Guarantor shall be subject to more than one Blockage
Period in any consecutive 360-day period, irrespective of the number of
defaults with respect to Designated Senior Indebtedness of such Subsidiary
Guarantor during such period. For purposes of this Section, no default or
event of default which existed or was continuing on the date of the
commencement of any Payment Blockage Period with respect to the Designated
Senior Indebtedness of such Subsidiary Guarantor initiating such Payment
Blockage Period shall be, or be made, the basis of the commencement of a
subsequent Payment Blockage Period by the Representative of such

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Designated Senior Indebtedness unless such default or event of default shall
have been cured or waived for a period of not less than 90 consecutive days.

          SECTION 12.04. Demand for Payment. If a demand for payment is made on a
Subsidiary Guarantor pursuant to Article 11, the Trustee shall promptly notify
the holders of the Designated Senior Indebtedness of such Subsidiary Guarantor
(or their Representatives) of such demand.

          SECTION 12.05. When Distribution Must Be Paid Over. If a distribution is
made to Securityholders that because of this Article 12 should not have been
made to them, the Securityholders who receive the distribution shall hold it in
trust for holders of Senior Indebtedness of the applicable Subsidiary Guarantor
and pay it over to them or their Representatives as their interests may appear.

          SECTION 12.06. Subrogation. After all Senior Indebtedness of a
Subsidiary Guarantor is paid in full and until the Securities are paid in
full, Securityholders shall be subrogated to the rights of holders of such
Senior Indebtedness to receive distributions applicable to Senior
Indebtedness of such Subsidiary Guarantor. A distribution made under this
Article 12 to holders of such Senior Indebtedness which otherwise would have
been made to Securityholders is not, as between the relevant Subsidiary
Guarantor and Securityholders, a payment by such Subsidiary Guarantor on such
Senior Indebtedness.

          SECTION 12.07. Relative Rights. This Article 12 defines the relative
rights of Securityholders and holders of Senior Indebtedness of a Subsidiary
Guarantor. Nothing in this Indenture shall:

     (1) impair, as between a Subsidiary Guarantor and Securityholders,
the obligation of such Subsidiary Guarantor, which is absolute and
unconditional, to pay its Subsidiary Guaranty to the extent set forth in
Article 11; or

     (2) prevent the Trustee or any Securityholder from exercising
its available remedies upon a default by such Subsidiary Guarantor
under its Subsidiary Guaranty, subject to the rights of holders of
Senior Indebtedness of such Subsidiary Guarantor to receive
distributions otherwise payable to Securityholders.

          SECTION 12.08. Subordination May Not Be Impaired by Company. No right of
any holder of Senior Indebtedness of any Subsidiary Guarantor to enforce the
subordination of the Subsidiary Guaranty of such Subsidiary Guarantor shall be
impaired by any act or failure to act by such Subsidiary Guarantor or by its
failure to comply with this Indenture.

          SECTION 12.09. Rights of Trustee and Paying Agent. Notwithstanding
Section 12.03, the Trustee or Paying Agent shall continue to make payments on
any Subsidiary Guaranty and shall not be charged with knowledge of the
existence of facts that would prohibit the making of any such payments
unless, not less than two Business Days prior to the date of such payment, a
Trust Officer of the Trustee receives written

77

 

notice satisfactory to it that such payments are prohibited by this Article
12. The Company, the relevant Subsidiary Guarantor, the Registrar or
co-registrar, the Paying Agent, a Representative or a holder of Senior
Indebtedness of such Subsidiary Guarantor shall be entitled to give the
notice; provided, however, that, if an issue of Senior Indebtedness of any
Subsidiary Guarantor has a Representative, only the Representative shall be
entitled to give the notice.

          The Trustee in its individual or any other capacity shall be entitled to
hold Senior Indebtedness of any Subsidiary Guarantor with the same rights it
would have if it were not the Trustee. The Registrar and co-registrar and the
Paying Agent may do the same with like rights. The Trustee shall be entitled
to all the rights set forth in this Article 12 with respect to any Senior
Indebtedness of any Subsidiary Guarantor which may at any time be held by it,
to the same extent as any other holder of such Senior Indebtedness; and
nothing in Article 7 shall deprive the Trustee of any of its rights as such
holder. Nothing in this Article 12 shall apply to claims of, or payments to,
the Trustee under or pursuant to Section 7.07.

          SECTION 12.10. Distribution or Notice to Representative. Whenever any
Person is to make a distribution or give a notice to holders of Senior
Indebtedness of any Subsidiary Guarantor, such Person shall be entitled to
make such distribution or give such notice to their Representative (if any).

          SECTION 12.11. Article 12 Not To Prevent Events of Default or Limit
Right To Demand Payment. The failure to make a payment pursuant to a
Subsidiary Guaranty by reason of any provision in this Article 12 shall not
be construed as preventing the occurrence of a Default. Nothing in this
Article 12 shall have any effect on the right of the Securityholders or the
Trustee to make a demand for payment on any Subsidiary Guarantor pursuant to
its Subsidiary Guaranty.

          SECTION 12.12. Trustee Entitled To Rely. Upon any payment or distribution
pursuant to this Article 12, the Trustee and the Securityholders shall be
entitled to rely (a) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section
12.02 are pending, (b) upon a certificate of the liquidating trustee or agent
or other Person making such payment or distribution to the Trustee or to the
Securityholders or (c) upon the Representatives for the holders of Senior
Indebtedness of any Subsidiary Guarantor for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders
of such Senior Indebtedness and other indebtedness of such Subsidiary
Guarantor, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this
Article 12. In the event that the Trustee determines, in good faith, that
evidence is required with respect to the right of any Person as a holder of
Senior Indebtedness of any Subsidiary Guarantor to participate in any payment
or distribution pursuant to this Article 12, the Trustee shall be entitled to
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness of such Subsidiary
Guarantor held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and other facts pertinent to the
rights of such Person under this Article 12,

78

 

and, if such evidence is not furnished, the Trustee shall be entitled to defer
any payment to such Person pending judicial determination as to the right of
such Person to receive such payment. The provisions of Sections 7.01 and 7.02
shall be applicable to all actions or omissions of actions by the Trustee
pursuant to this Article 12.

          SECTION 12.13. Trustee To Effectuate Subordination. Each
Securityholder by accepting a Security authorizes and directs the Trustee on
his behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination between the Securityholders and
the holders of Senior Indebtedness of any Subsidiary Guarantor as provided in
this Article 12 and appoints the Trustee as attorney-in-fact for any and all
such purposes.

          SECTION 12.14. Trustee Not Fiduciary for Holders of Senior
Indebtedness of Subsidiary Guarantor. The Trustee shall not be deemed to
owe any fiduciary duty to the holders of Senior Indebtedness of any
Subsidiary Guarantor and shall not be liable to any such holders if it
shall mistakenly pay over or distribute to Securityholders or the Company
or any other Person, money or assets to which any holders of such Senior
Indebtedness shall be entitled by virtue of this Article 12 or otherwise.

          SECTION 12.15. Reliance by Holders of Senior Indebtedness of Subsidiary
Guarantors on Subordination Provisions. Each Securityholder by accepting a
Security acknowledges and agrees that the foregoing subordination provisions
are, and are intended to be, an inducement and a consideration to each holder
of any Senior Indebtedness of any Subsidiary Guarantor, whether such Senior
Indebtedness was created or acquired before or after the issuance of the
Securities, to acquire and continue to hold, or to continue to hold, such
Senior Indebtedness and such holder of Senior Indebtedness shall be deemed
conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Senior Indebtedness.

79

 

Article 13

Miscellaneous

          SECTION 13.01. Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

          SECTION 13.02. Notices. Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail addressed as
follows:

               if to the Company or any Subsidiary Guarantor:

Valmont Industries,
Inc.
 One Valmont Plaza

Omaha, Nebraska 68154

Attention: Terry
McClain

with a copy to:

McGrath North Mullin & Kratz, PC LLO

Suite 3700 First National Tower
 1601
Dodge Street
 Omaha, NE 68102

Attention: Dave Hefflinger

if to the Trustee:

Wells Fargo Bank, N.A.

Sixth & Margquette; N9303-120

Minneapolis, MN 55479 
Attention:
Corporate Trust Services

          The Company, any Subsidiary Guarantor or the Trustee by notice to the
others may designate additional or different addresses for subsequent
notices or communications.

          Any notice or communication mailed to a Securityholder shall be mailed
to the Securityholder at the Securityholder’s address as it appears on the
registration books of the Registrar and shall be sufficiently given if so
mailed within the time prescribed.

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

80

 

          SECTION 13.03. Communication by Holders with Other Holders.
Securityholders may communicate pursuant to TIA § 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, any Subsidiary Guarantor, the Trustee, the Registrar
and anyone else shall have the protection of TIA § 312(c).

          SECTION 13.04. Certificate and Opinion as to Conditions Precedent. Upon
any request or application by the Company to the Trustee to take or refrain
from taking any action under this Indenture, the Company shall furnish to
the Trustee:

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

     (2) an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.

          SECTION 13.05. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture shall include:

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

     (4) a statement as to whether or not, in the opinion of such
individual, such covenant or condition has been complied with.

          SECTION 13.06. When Securities Disregarded. In determining whether the
Holders of the required principal amount of Securities have concurred in any
direction, waiver or consent, Securities owned by the Company or by any Person
directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company shall be disregarded and deemed not
to be outstanding, except that, for the purpose of determining whether the
Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which the Trustee knows are
so owned shall be so disregarded. Also, subject to the foregoing, only
Securities outstanding at the time shall be considered in any such
determination.

81

 

          SECTION 13.07. Rules by Trustee, Paying Agent and Registrar. The
Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar and the Paying Agent may make reasonable
rules for their functions.

          SECTION 13.08. Legal Holidays. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period. If a regular record
date is a Legal Holiday, the record date shall not be affected.

          SECTION 13.09. Governing Law. This Indenture and the Securities shall be
governed by, and construed in accordance with, the laws of the State of New
York.

          SECTION 13.10. No Recourse Against Others. A director, officer, employee
or stockholder, as such, of the Company or any Subsidiary Guarantor shall not
have any liability for any obligations of the Company under the Securities or
this Indenture or of such Subsidiary Guarantor under its Subsidiary Guaranty or
this Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder
shall waive and release all such liability. The waiver and release shall be
part of the consideration for the issue of the Securities.

          SECTION 13.11. Successors. All agreements of the Company or any
Subsidiary Guarantor in this Indenture and the Securities shall bind its
successors. All agreements of the Trustee in this Indenture shall bind its
successors.

          SECTION 13.12. Multiple Originals. The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One signed copy is enough to
prove this Indenture.

          SECTION 13.13. Table of Contents; Headings. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any
of the terms or provisions hereof.

82

 

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

	 	 	 	 	 	 	 	 	 
	 	 	VALMONT INDUSTRIES, INC.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By	 	 	 	/s/ Terry J. McClain
	 	 	 	 	 	
 
	

	 	 	 	 	 	Name:
	 	Terry J. McClain
	

	 	 	 	 	 	Title:
	 	Senior Vice President and
	

	 	 	 	 	 	 	 	Chief Financial Officer
	 
	 	 	 	 	 	 	 	 
	 	 	NEWMARK INTERNATIONAL, INC.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By	 	 	 	/s/ Terry J. McClain
	 	 	 	 	 	
 
	

	 	 	 	 	 	Name:
	 	Terry J. McClain
	

	 	 	 	 	 	Title:
	 	Senior Vice President and
	

	 	 	 	 	 	 	 	Chief Financial Officer
	 
	 	 	 	 	 	 	 	 
	 	 	PIROD, INC.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By	 	 	 	/s/ Terry J. McClain
	 	 	 	 	 	
 
	

	 	 	 	 	 	Name:
	 	Terry J. McClain
	

	 	 	 	 	 	Title:
	 	Senior Vice President and
	

	 	 	 	 	 	 	 	Chief Financial Officer
	 
	 	 	 	 	 	 	 	 
	 	 	VALMONT COATINGS, INC.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By	 	 	 	/s/ Terry J. McClain
	 	 	 	 	 	
 
	

	 	 	 	 	 	Name:
	 	Terry J. McClain
	

	 	 	 	 	 	Title:
	 	Senior Vice President and
	

	 	 	 	 	 	 	 	Chief Financial Officer
	 
	 	 	 	 	 	 	 	 

83

 

	 	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK,
NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	

	 	 	By	 	/s/ Timothy P.
Mowdy
	

	 	 	 	 	
 
	

	 	 	 	 	Name:	 	Timothy P. Mowdy
	

	 	 	 	 	Title:	 	Assistant Vice President

84

 

RULE 144A / REGULATION S / IAI APPENDIX

PROVISIONS RELATING TO INITIAL SECURITIES, PRIVATE

EXCHANGE SECURITIES

AND EXCHANGE SECURITIES

     1. Definitions

     1.1 Definitions

     For the purposes of this Appendix the following terms shall have the
meanings indicated below:

          “Applicable Procedures” means, with respect to any transfer or transaction
involving a Regulation S Global Security or beneficial interest therein, the
rules and procedures of the Depository for such a Regulation S Global Security,
to the extent applicable to such transaction and as in effect from time to
time.

          “Definitive Security” means a certificated Initial Security or
Exchange Security or Private Exchange Security bearing, if required, the
appropriate restricted securities legend set forth in Section 2.3(e).

          “Depository” means The Depository Trust Company, its nominees and
their respective successors.

          “Distribution Compliance Period”, with respect to any Securities, means
the period of 40 consecutive days beginning on and including the later of (i)
the day on which such Securities are first offered to Persons other than
distributors (as defined in Regulation S under the Securities Act) in reliance
on Regulation S and (ii) the issue date with respect to such Securities.

          “Exchange Securities” means (1) the 6 7/8% Senior Subordinated Notes due
2014 issued pursuant to the Indenture in connection with a Registered Exchange
Offer pursuant to a Registration Rights Agreement and (2) Additional
Securities, if any, offered and sold by the Company pursuant to a registration
statement filed with the SEC under the Securities Act.

          “IAI” means an institutional “accredited investor”, as defined
in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act.

          “Initial Purchasers” means (1) with respect to the Initial Securities
issued on the Issue Date, Credit Suisse First Boston LLC, BNY Capital Markets,
Inc., Wachovia Capital Markets LLC and Banc of America Securities LLC and (2)
with respect to each
issuance of Additional Securities, the Persons purchasing such Additional
Securities under the related Purchase Agreement.

 

 

          “Initial Securities” means (1) $150,000,000 aggregate principal amount of
6 7/8% Senior Subordinated Notes due 2014 issued on the Issue Date and (2)
Additional Securities, if any, offered and sold by the Company in a
transaction exempt from the registration requirements of the Securities Act.

          “Private Exchange” means the offer by the Company, pursuant to a
Registration Rights Agreement, to the Initial Purchasers to issue and
deliver to each Initial Purchaser, in exchange for the Initial Securities
held by the Initial Purchaser as part of its initial distribution, a like
aggregate principal amount of Private Exchange Securities.

          “Private Exchange Securities” means any 6 7/8% Senior Subordinated
Notes due 2014 issued in connection with a Private Exchange.

          “Purchase Agreement” means (1) with respect to the Initial Securities
issued on the Issue Date, the Purchase Agreement dated April 29, 2004, among
the Company, the Subsidiary Guarantors named therein and the Initial
Purchasers, and (2) with respect to each issuance of Additional Securities, the
purchase agreement or underwriting agreement among the Company and the Persons
purchasing such Additional Securities.

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

          “Registered Exchange Offer” means the offer by the Company, pursuant to
a Registration Rights Agreement, to certain Holders of Initial Securities, to
issue and deliver to such Holders, in exchange for the Initial Securities, a
like aggregate principal amount of Exchange Securities registered under the
Securities Act.

          “Registration Rights Agreement” means (1) with respect to the Initial
Securities issued on the Issue Date, the Registration Rights Agreement dated
April 29, 2004, among the Company, the Subsidiary Guarantors named therein
and the Initial Purchasers and (2) with respect to each issuance of
Additional Securities issued in a transaction exempt from the registration
requirements of the Securities Act, the registration rights agreement, if
any, among the Company and the Persons purchasing such Additional Securities
under the related Purchase Agreement.

          “Rule 144A Securities” means all Securities offered and sold to QIBs in
reliance on Rule 144A.

          “Securities” means the Initial Securities, the Exchange Securities and
the Private Exchange Securities, treated as a single class.

          “Securities Act” means the Securities Act of 1933.

          “Securities Custodian” means the custodian with respect to a Global
Security (as appointed by the Depository), or any successor Person
thereto, and shall initially be the Trustee.

2

 

          “Shelf Registration Statement” means the registration statement issued by
the Company in connection with the offer and sale of Initial Securities or
Private Exchange Securities pursuant to a Registration Rights Agreement.

          “Transfer Restricted Securities” means Securities that bear or are
required to bear the legend relating to restrictions on transfer relating to
the Securities Act set forth in Section 2.3(e) hereto.

     1.2 Other Definitions

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section:
	“Agent Members”

	 	 	2.1	(b)
	“Global Securities”

	 	 	2.1	(a)
	“IAI Global Security”

	 	 	2.1	(a)
	“Regulation S”

	 	 	2.1	(a)
	“Regulation S Global Security”

	 	 	2.1	(a)
	“Rule 144A”

	 	 	2.1	(a)
	“Rule 144A Global Security”

	 	 	2.1	(a)

     2. The Securities.

     2.1 (a) Form and Dating. The Initial Securities will be offered and sold
by the Company pursuant to a Purchase Agreement. The Initial Securities will be
resold initially only to (i) QIBs in reliance on Rule 144A under the Securities
Act (“Rule 144A”) and (ii) Persons other than U.S. Persons (as defined in
Regulation S) in reliance on Regulation S under the Securities Act (“Regulation
S”). Initial Securities may thereafter be transferred to, among others, QIBs,
IAIs and purchasers in reliance on Regulation S, subject to the restrictions on
transfer set forth herein. Initial Securities initially resold pursuant to Rule
144A shall be issued initially in the form of one or more permanent global
Securities in definitive, fully registered form (collectively, the “Rule 144A
Global Security”); Initial Securities initially resold pursuant to Regulation S
shall be issued initially in the form of one or more permanent global
Securities in definitive, fully registered form (collectively, the “Regulation
S Global Security”); and Initial Securities to be resold to IAIs shall be
issued initially in the form of one or more permanent global Securities in
definitive, fully registered form (collectively, the “IAI Global Security”), in
each case without interest coupons and with the global securities legend and
the applicable restricted securities legend set forth in Exhibit 1 hereto,
which shall be deposited on behalf of the purchasers of the Initial Securities
represented thereby with the Securities Custodian and registered
in the name of the Depository or a nominee of the Depository, duly
executed by the Company and authenticated by the Trustee as provided in this
Indenture. Beneficial ownership interests in the Regulation S Global Security
will be exchangeable for interests in a Rule 144A Global Security, an IAI
Global Security or a Definitive Security only after the expiration of the
Distribution Compliance Period.

3

 

          Beneficial interests in Regulation S Global Securities or IAI Global
Securities may be exchanged for interests in Rule 144A Global Securities if
(1) such exchange occurs in connection with a transfer of Securities in
compliance with Rule 144A and (2) the transferor of the beneficial interest in
the Regulation S Global Security or the IAI Global Security, as applicable,
first delivers to the Trustee a written certificate (in a form satisfactory to
the Trustee) to the effect that the beneficial interest in the Regulation S
Global Security or the IAI Global Security, as applicable, is being
transferred to a Person (a) who the transferor reasonably believes to be a
QIB, (b) purchasing for its own account or the account of a QIB in a
transaction meeting the requirements of Rule 144A, and (c) in accordance with
all applicable securities laws of the States of the United States and other
jurisdictions.

          Beneficial interests in Regulation S Global Securities and Rule 144A
Global Securities may be exchanged for an interest in IAI Global Securities if
(1) such exchange occurs in connection with a transfer of the Securities in
compliance with an exemption under the Securities Act and (2) the transferor of
the Regulation S Global Security or Rule 144A Global Security, as applicable,
first delivers to the Trustee on behalf of the transferee a written certificate
(substantially in the form of Exhibit 2) to the effect that the Regulation S
Global Security or Rule 144A Global Security, as applicable, is being
transferred (x) to an “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act that is an institutional
investor acquiring the Securities for its own account or for the account of
such an institutional accredited investor, for investment purposes and not with
a view to or for offer or sale in connection with any distribution in violation
of the Securities Act, (y) in accordance with all applicable securities laws of
the States of the United States and other jurisdictions and (z), in an
aggregate principal amount of Securities of no less than $250,000 or, if such
transfer is in an aggregate principal amount of Securities of less than
$250,000, such transferor shall also deliver to the Trustee an opinion of
counsel acceptable to the Company that such transfer is in compliance with the
Securities Act.

          Beneficial interests in a Rule 144A Global Security or an IAI Global
Security may be transferred to a Person who takes delivery in the form of an
interest in a Regulation S Global Security, whether before or after the
expiration of the Distribution Compliance Period, only if the transferor first
delivers to the Trustee a written certificate (in the form provided in the
Indenture) to the effect that such transfer is being made in accordance with
Rule 903 or 904 of Regulation S or Rule 144 (if applicable).

          The Rule 144A Global Security, the IAI Global Security and the
Regulation S Global Security are collectively referred to herein as “Global
Securities”. The aggregate principal amount of the Global Securities may
from time to time be increased or decreased by adjustments made on the
records of the Trustee and the Depository or its nominee as hereinafter
provided.

          (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a
Global Security deposited with or on behalf of the Depository.

4

 

          The Company shall execute and the Trustee shall, in accordance with this
Section 2.1(b), authenticate and deliver initially one or more Global
Securities that (a) shall be registered in the name of the Depository for such
Global Security or Global Securities or the nominee of such Depository and (b)
shall be delivered by the Trustee to such Depository or pursuant to such
Depository’s instructions or held by the Trustee as custodian for the
Depository.

          Members of, or participants in, the Depository (“Agent Members”) shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by the Depository or by the Trustee as the custodian of the
Depository or under such Global Security, and the Company, the Trustee and any
agent of the Company or the Trustee shall be entitled to treat the Depository
as the absolute owner of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depository
or impair, as between the Depository and its Agent Members, the operation of
customary practices of such Depository governing the exercise of the rights of
a holder of a beneficial interest in any Global Security.

          (c) Definitive Securities. Except as provided in this Section 2.1 or
Section 2.3 or 2.4, owners of beneficial interests in Global Securities shall
not be entitled to receive physical delivery of Definitive Securities.

     2.2 Authentication. The Trustee shall authenticate and deliver: (1) on
the Issue Date, an aggregate principal amount of $150.0 million 6 7/8% Senior
Subordinated Notes due 2014, (2) any Additional Securities for an original
issue in an aggregate principal amount specified in the written order of the
Company pursuant to this Section 2.2 and (3) Exchange Securities or Private
Exchange Securities for issue only in a Registered Exchange Offer or a Private
Exchange, respectively, pursuant to a Registration Rights Agreement, for a like
principal amount of Initial Securities, in each case upon a written order of
the Company signed by two Officers or by an Officer and either an Assistant
Treasurer or an Assistant Secretary of the Company. Such order shall specify
the amount of the Securities to be authenticated and the date on which the
original issue of Securities is to be authenticated and, in the case of any
issuance of Additional Securities pursuant to Section 2.13 of the Indenture,
shall certify that such issuance is in compliance with Section 4.03 of the
Indenture.

     2.3 Transfer and Exchange.

          (a) Transfer and Exchange of Definitive Securities. When Definitive
Securities are presented to the Registrar with a request:

	 	(x)	 	to register the transfer of such Definitive Securities;
or
	 
	 	(y)	 	to exchange such Definitive Securities for an
equal principal amount of Definitive Securities of
other authorized denominations,

5

 

the Registrar shall register the transfer or make the exchange as
requested if its reasonable requirements for such transaction are met;
provided, however, that the Definitive Securities surrendered for
transfer or exchange:

     (i) shall be duly endorsed or accompanied by a written instrument
of transfer in form reasonably satisfactory to the Company and the
Registrar, duly executed by the Holder thereof or its attorney duly
authorized in writing; and

     (ii) if such Definitive Securities are required to bear a
restricted securities legend, they are being transferred or exchanged
pursuant to an effective registration statement under the Securities Act,
pursuant to Section 2.3(b) or pursuant to clause (A), (B) or (C) below,
and are accompanied by the following additional information and
documents, as applicable:

     (A) if such Definitive Securities are being delivered to
the Registrar by a Holder for registration in the name of such
Holder, without transfer, a certification from such Holder to
that effect; or

     (B) if such Definitive Securities are being transferred to
the Company, a certification to that effect; or

     (C) if such Definitive Securities are being transferred (x)
pursuant to an exemption from registration in accordance with Rule
144A, Regulation S or Rule 144 under the Securities Act; or (y) in
reliance upon another exemption from the requirements of the
Securities Act: (i) a certification to that effect (in the form
set forth on the reverse of the Security) and (ii) if the Company
so requests, an opinion of counsel or other evidence reasonably
satisfactory to it as to the compliance with the restrictions set
forth in the legend set forth in Section 2.3(e)(i).

          (b) Restrictions on Transfer of a Definitive Security for a Beneficial
Interest in a Global Security. A Definitive Security may not be exchanged
for a beneficial interest in a Rule 144A Global Security, an IAI Global
Security or a Regulation S Global Security except upon satisfaction of the
requirements set forth below. Upon receipt by the Trustee of a Definitive
Security, duly endorsed or accompanied by appropriate instruments of
transfer, in form satisfactory to the Trustee, together with:

     (i) certification, in the form set forth on the reverse of the
Security, that such Definitive Security is either (A) being transferred
to a QIB in accordance with Rule 144A, (B) being transferred to an IAI or
(C) being transferred after expiration of the Distribution Compliance
Period by a Person who initially purchased such Security in reliance on
Regulation S to a buyer who elects to hold its interest in such Security
in the form of a beneficial interest in the Regulation S Global Security;
and

6

 

     (ii) written instructions directing the Trustee to make, or to
direct the Securities Custodian to make, an adjustment on its books and
records with respect to such Rule 144A Global Security (in the case of a
transfer pursuant to clause (b)(i)(A)), IAI Global Security (in the case
of a transfer pursuant to clause (b)(i)(B)) or Regulation S Global
Security (in the case of a transfer pursuant to clause (b)(i)(C)) to
reflect an increase in the aggregate principal amount of the Securities
represented by the Rule 144A Global Security, IAI Global Security or
Regulation S Global Security, as applicable, such instructions to
contain information regarding the Depository account to be credited with
such increase,

then the Trustee shall cancel such Definitive Security and cause, or direct the
Securities Custodian to cause, in accordance with the standing instructions and
procedures existing between the Depository and the Securities Custodian, the
aggregate principal amount of Securities represented by the Rule 144A Global
Security, IAI Global Security or Regulation S Global Security, as applicable,
to be increased by the aggregate principal amount of the Definitive Security to
be exchanged and shall credit or cause to be credited to the account of the
Person specified in such instructions a beneficial interest in the Rule 144A
Global Security, IAI Global Security or Regulation S Global Security, as
applicable, equal to the principal amount of the Definitive Security so
canceled. If no Rule 144A Global Securities, IAI Global Securities or
Regulation S Global Securities, as applicable, are then outstanding, the
Company shall issue and the Trustee shall authenticate, upon written order of
the Company in the form of an Officers’ Certificate of the Company, a new Rule
144A Global Security, IAI Global Security or Regulation S Global Security, as
applicable, in the appropriate principal amount.

          (c) Transfer and Exchange of Global Securities.

     (i) The transfer and exchange of Global Securities or beneficial
interests therein shall be effected through the Depository, in accordance
with this Indenture (including applicable restrictions on transfer set
forth herein, if any) and the procedures of the Depository therefor. A
transferor of a beneficial interest in a Global Security shall deliver to
the Registrar a written order given in accordance with the Depository’s
procedures containing information regarding the participant account of
the Depository to be credited with a beneficial interest in the Global
Security. The Registrar shall, in accordance with such instructions,
instruct the Depository to credit to the account of the Person specified
in such instructions a beneficial interest in the Global Security and to
debit the account of the Person making the transfer the beneficial
interest in the Global Security being transferred.

     (ii) If the proposed transfer is a transfer of a beneficial interest
in one Global Security to a beneficial interest in another Global
Security, the Registrar shall reflect on its books and records the date
and an increase in the principal amount of the Global Security to which
such interest is being transferred in an amount equal to the principal
amount of the interest to be so transferred, and the Registrar shall
reflect on its books and records the date and a corresponding

7

 

decrease in the principal amount of the Global Security from which such
interest is being transferred.

     (iii) Notwithstanding any other provisions of this Appendix (other
than the provisions set forth in Section 2.4), a Global Security 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.

     (iv) In the event that a Global Security is exchanged for Definitive
Securities pursuant to Section 2.4 of this Appendix, prior to the
consummation of a Registered Exchange Offer or the effectiveness of a
Shelf Registration Statement with respect to such Securities, such
Securities may be exchanged only in accordance with such procedures as
are substantially consistent with the provisions of this Section 2.3
(including the certification requirements set forth on the reverse of the
Initial Securities intended to ensure that such transfers comply with
Rule 144A, Regulation S or another applicable exemption under the
Securities Act, as the case may be) and such other procedures as may from
time to time be adopted by the Company.

          (d) Restrictions on Transfer of Regulation S Global Securities. During
the Distribution Compliance Period, beneficial ownership interests in
Regulation S Global Securities may only be sold, pledged or transferred in
accordance with the Applicable Procedures and only (i) to the Company, (ii) in
an offshore transaction in accordance with Regulation S or (iii) pursuant to an
effective registration statement under the Securities Act, in each case in
accordance with any applicable securities laws of any State of the United
States.

          (e) Legend.

     (i) Except as permitted by the following paragraphs (ii), (iii)
and (iv), each Security certificate evidencing the Global Securities
(and all Securities issued in exchange therefor or in substitution
thereof), in the case of Securities offered otherwise than in reliance
on Regulation S, shall bear a legend in substantially the following
form:

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND
THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED
THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION
FROM THE

8

 

PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A THEREUNDER.

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY
THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON
WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE
THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 904 UNDER THE SECURITIES ACT, (III) TO AN INSTITUTIONAL
“ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR
(7) OF REGULATION D UNDER THE SECURITIES ACT) THAT, PRIOR TO SUCH
TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF
THIS SECURITY (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE)
AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL
AMOUNT OF SECURITIES LESS THAN $250,000, AN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH
THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES
(I) THROUGH (V), IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND
EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN
(A) ABOVE.

     Each certificate evidencing a Security offered in reliance on
Regulation S shall bear a legend in substantially the following form:

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS
USED

9

 

ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION
S UNDER THE SECURITIES ACT.

       Each Definitive Security shall also bear the following additional legend:

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH REGISTRAR AND TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.

     (ii) Upon any sale or transfer of a Transfer Restricted Security
(including any Transfer Restricted Security represented by a Global
Security) pursuant to Rule 144 under the Securities Act, the Registrar
shall permit the transferee thereof to exchange such Transfer
Restricted Security for a certificated Security that does not bear the
legend set forth above and rescind any restriction on the transfer of
such Transfer Restricted Security, if the transferor thereof certifies
in writing to the Registrar that such sale or transfer was made in
reliance on Rule 144 (such certification to be in the form set forth on
the reverse of the Security).

     (iii) After a transfer of any Initial Securities or Private
Exchange Securities pursuant to and during the period of the
effectiveness of a Shelf Registration Statement with respect to such
Initial Securities or Private Exchange Securities, as the case may be,
all requirements pertaining to legends on such Initial Security or such
Private Exchange Security will cease to apply, the requirements
requiring any such Initial Security or such Private Exchange Security
issued to certain Holders be issued in global form will cease to apply,
and a certificated Initial Security or Private Exchange Security or an
Initial Security or Private Exchange Security in global form, in each
case without restrictive transfer legends, will be available to the
transferee of the Holder of such Initial Securities or Private Exchange
Securities upon exchange of such transferring Holder’s certificated
Initial Security or Private Exchange Security or directions to transfer
such Holder’s interest in the Global Security, as applicable.

     (iv) Upon the consummation of a Registered Exchange Offer with
respect to the Initial Securities, all requirements pertaining to such
Initial Securities that Initial Securities issued to certain Holders be
issued in global form will still apply with respect to Holders of such
Initial Securities that do not exchange their Initial Securities, and
Exchange Securities in certificated or global form, in each case without
the restricted securities legend set forth in Exhibit 1 hereto will be
available to Holders that exchange such Initial Securities in such
Registered Exchange Offer.

     (v) Upon the consummation of a Private Exchange with respect to the
Initial Securities, all requirements pertaining to such Initial
Securities that

10

 

Initial Securities issued to certain Holders be issued in global form
will still apply with respect to Holders of such Initial Securities that
do not exchange their Initial Securities, and Private Exchange
Securities in global form with the global securities legend and the
applicable restricted securities legend set forth in Exhibit 1 hereto
will be available to Holders that exchange such Initial Securities in
such Private Exchange.

          (f) Cancellation or Adjustment of Global Security. At such time as all
beneficial interests in a Global Security have either been exchanged for
Definitive Securities, redeemed, purchased or canceled, such Global Security
shall be returned to the Depository for cancellation or retained and canceled
by the Trustee. At any time prior to such cancellation, if any beneficial
interest in a Global Security is exchanged for Definitive Securities, redeemed,
purchased or canceled, the principal amount of Securities represented by such
Global Security shall be reduced and an adjustment shall be made on the books
and records of the Trustee (if it is then the Securities Custodian for such
Global Security) with respect to such Global Security, by the Trustee or the
Securities Custodian, to reflect such reduction.

          (g) No Obligation of the Trustee.

     (i) The Trustee shall have no responsibility or obligation to any
beneficial owner of a Global Security, a member of, or a participant in
the Depository or other Person with respect to the accuracy of the
records of the Depository or its nominee or of any participant or member
thereof, with respect to any ownership interest in the Securities or with
respect to the delivery to any participant, member, beneficial owner or
other Person (other than the Depository) of any notice (including any
notice of redemption) or the payment of any amount, under or with respect
to such Securities. All notices and communications to be given to the
Holders and all payments to be made to Holders under the Securities shall
be given or made only to or upon the order of the registered Holders
(which shall be the Depository or its nominee in the case of a Global
Security). The rights of beneficial owners in any Global Security shall
be exercised only through the Depository subject to the applicable rules
and procedures of the Depository. The Trustee may rely and shall be
fully protected in relying upon information furnished by the Depository
with respect to its members, participants and any beneficial owners.

     (ii) 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 Security (including any transfers between
or among Depository participants, members or beneficial owners in any
Global Security) 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.

11

 

     2.4 Definitive Securities.

          (a) A Global Security deposited with the Depository or with the Trustee as
Securities Custodian for the Depository pursuant to Section 2.1 shall be
transferred to the beneficial owners thereof in the form of Definitive
Securities in an aggregate principal amount equal to the principal amount of
such Global Security, in exchange for such Global Security, only if such
transfer complies with Section 2.3 hereof and (i) the Depository notifies the
Company that it is unwilling or unable to continue as Depository for such
Global Security and the Depository fails to appoint a successor depository or
if at any time such Depository ceases to be a “clearing agency” registered
under the Exchange Act and, in either case, a successor depository is not
appointed by the Company within 90 days of such notice, or (ii) an Event of
Default has occurred and is continuing or (iii) the Company, in its sole
discretion, notifies the Trustee in writing that it elects to cause the
issuance of Definitive Securities under this Indenture.

          (b) Any Global Security that is transferable to the beneficial owners
thereof pursuant to this Section 2.4 shall be surrendered by the Depository to
the Trustee located at its principal corporate trust office in the Borough of
Manhattan, The City of New York, to be so transferred, in whole or from time to
time in part, without charge, and the Trustee shall authenticate and deliver,
upon such transfer of each portion of such Global Security, an equal aggregate
principal amount of Definitive Securities of authorized denominations. Any
portion of a Global Security transferred pursuant to this Section 2.4 shall be
executed, authenticated and delivered only in denominations of $1,000 principal
amount and any integral multiple thereof and registered in such names as the
Depository shall direct. Any Definitive Security delivered in exchange for an
interest in the Transfer Restricted Security shall, except as otherwise
provided by Section 2.3(e) hereof, bear the applicable restricted securities
legend and definitive securities legend set forth in Exhibit 1 hereto.

          (c) Subject to the provisions of Section 2.4(b) hereof, the registered
Holder of a Global Security shall be entitled to grant proxies and otherwise
authorize any Person, including Agent Members and Persons that may hold
interests through Agent Members, to take any action which a Holder is entitled
to take under this Indenture or the Securities.

          (d) In the event of the occurrence of one of the events specified in
Section 2.4(a) hereof, the Company shall promptly make available to the Trustee
a reasonable supply of Definitive Securities in definitive, fully registered
form without interest coupons. In the event that such Definitive Securities
are not issued, the Company expressly acknowledges, with respect to the right
of any Holder to pursue a remedy pursuant to Section 6.06 of this Indenture,
the right of any beneficial owner of Securities to pursue such remedy with
respect to the portion of the Global Security that represents such beneficial
owner’s Securities as if such Definitive Securities had been issued.

12

 

EXHIBIT 1 
to

RULE 144A / REGULATION S / IAI APPENDIX 
 [FORM
OF FACE OF INITIAL SECURITY]

[Global Securities Legend]

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS 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 SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

          [[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER THE LATER
OF COMMENCEMENT OR COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES
WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY
VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR
SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

[Restricted Securities Legend for Securities offered otherwise than in

Reliance on Regulation S]

          THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT
THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS
OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

 

          THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY
(I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (III) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN
RULE 501(A) (1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT)
THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER
CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF
THIS SECURITY (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH
TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF SECURITIES LESS THAN
$250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS
IN COMPLIANCE WITH THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V), IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

[Restricted Securities Legend for Securities Offered in Reliance on Regulation S.]

          THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT
PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE
HAVE THE MEANINGS GIVEN TO THEM IN REGULATIONS UNDER THE SECURITIES ACT.

[Definitive Securities Legend]

          IN CONNECTION WITH ANY TRANSFER, THE HOLDER
WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

2

 

			
	No.                                      
	 	$                                      

6 7/8% Senior Subordinated Note due 2014

          Valmont Industries, Inc., a Delaware corporation, promises to pay to
                                      , or registered assigns, the principal sum of
                                                          Dollars on May 1, 2014.

          Interest Payment Dates: May 1 and November 1.

          Record Dates: April 15 and October 15.

          Additional provisions of this Security are set forth on the other side of
this Security.

Dated:                                      

	 	 	 	 	 	 	 
	 	 	VALMONT INDUSTRIES, INC.
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	
 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	
 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 

TRUSTEE’S CERTIFICATE OF

          AUTHENTICATION

WELLS FARGO BANK, N.A. as

     Trustee, certifies that

          this is one of the

          Securities referred to in

          the Indenture.

	 	 	 
	By
	 	 
	

	
 
	

	 	Authorized Signatory

3

 

[FORM OF REVERSE SIDE OF INITIAL SECURITY]

6 7/8% Senior Subordinated Note Due 2014

1. Interest

          Valmont Industries, Inc., a Delaware corporation (such corporation, and
its successors and assigns under the Indenture hereinafter referred to, being
herein called the “Company”), promises to pay interest on the principal amount
of this Security at the rate per annum shown above; provided, however, that if
a Registration Default (as defined in the Registration Rights Agreement)
occurs, additional interest will accrue on this Security at a rate of 0.25% per
annum (increasing by an additional 0.25% per annum after each consecutive
90-day period that occurs after the date on which such Registration Default
occurs up to a maximum additional interest rate of 1.00%) from and including
the date on which any such Registration Default shall occur to but excluding
the date on which all Registration Defaults have been cured. The Company will
pay interest semiannually on May 1 and November 1 of each year, commencing
November 1, 2004. Interest on the Securities will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from May
4, 2004. Interest will be computed on the basis of a 360-day year of twelve
30-day months. The Company will pay interest on overdue principal at the rate
borne by this Security plus 1.0% per annum, and it will pay interest on overdue
installments of interest at the same rate to the extent lawful.

2. Method of Payment

          The Company will pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the April 15 or October 15 next preceding the interest payment
date even if Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company will pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts. Payments in respect of the Securities
represented by a Global Security (including principal, premium and interest)
will be made by wire transfer of immediately available funds to the accounts
specified by the Depository. The Company will make all payments in respect of
a certificated Security (including principal, premium and interest) by mailing
a check to the registered address of each Holder thereof; provided, however,
that payments on a certificated Security will be made by wire transfer to a
U.S. dollar account maintained by the payee with a bank in the United States if
such Holder elects payment by wire transfer by giving written notice to the
Trustee or the Paying Agent to such effect designating such account no later
than 30 days immediately preceding the relevant due date for payment (or such
other date as the Trustee may accept in its discretion).

4

 

3. Paying Agent and Registrar

          Initially, Wells Fargo Bank, N.A., a national banking association (the
“Trustee”), will act as Paying Agent and Registrar. The Company may appoint
and change any Paying Agent, Registrar or co-registrar without notice. The
Company or any of its domestically incorporated Wholly Owned Subsidiaries may
act as Paying Agent, Registrar or co-registrar.

4. Indenture

          The Company issued the Securities under an Indenture dated as of May 4,
2004 (the “Indenture”), among the Company, the Subsidiary Guarantors and the
Trustee. The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of
1939 (15 U.S.C. §§ 77aaa-77bbbb) (the “Act”). Terms defined in the Indenture
and not defined herein have the meanings ascribed thereto in the Indenture.
The Securities are subject to all such terms, and Securityholders are referred
to the Indenture and the Act for a statement of those terms.

          The Securities are general unsecured obligations of the Company. The
Company shall be entitled, subject to its compliance with Section 4.03 of the
Indenture, to issue Additional Securities pursuant to Section 2.13 of the
Indenture. The Initial Securities issued on the Issue Date, any Additional
Securities and all Exchange Securities or Private Exchange Securities issued in
exchange therefor will be treated as a single class for all purposes under the
Indenture. The Indenture contains covenants that limit the ability of the
Company and its subsidiaries to, among other things, incur additional
indebtedness; pay dividends or distributions on, or redeem or repurchase,
capital stock; make investments; issue or sell capital stock of subsidiaries;
engage in transactions with affiliates; transfer or sell assets; guarantee
indebtedness; restrict dividends or other payments of subsidiaries; and
consolidate, merge or transfer all or substantially all of its assets and the
assets of its subsidiaries. These covenants are subject to important
exceptions and qualifications.

5. Optional Redemption

          Except as set forth below, the Company shall not be entitled to redeem the
Securities.

5

 

          On and after May 1, 2009, the Company shall be entitled at its option to
redeem all or a portion of the Securities upon not less than 30 nor more than
60 days’ notice, at the redemption prices (expressed in percentages of
principal amount on the redemption date), plus accrued interest to the
redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date), if
redeemed during the 12-month period commencing on May 1 of the years set forth
below:

	 	 	 	 	 
	 	 	Redemption
	Period
	 	Price

	2009
	 	 	103.438	%
	2010
	 	 	102.292	%
	2011
	 	 	101.146	%
	2012 and thereafter
	 	 	100.000	%

          In addition, prior to May 1, 2007, the Company shall be entitled at its
option on one or more occasions to redeem Securities (which includes Additional
Securities, if any) in an aggregate principal amount not to exceed 35% of the
aggregate principal amount of the Securities (which includes Additional
Securities, if any) originally issued at a redemption price (expressed as a
percentage of principal amount) of 106.875%, plus accrued and unpaid interest
to the redemption date, with the net cash proceeds from one or more Public
Equity Offerings; provided, however, that (1) at least 65% of such aggregate
principal amount of Securities (which includes Additional Securities, if any)
remains outstanding immediately after the occurrence of each such redemption
(other than Securities held, directly or indirectly, by the Company or its
Affiliates); and (2) each such redemption occurs within 60 days after the date
of the related Public Equity Offering.

6. Notice of Redemption

          Notice of redemption will be mailed at least 30 days but not more than 60
days before the redemption date to each Holder of Securities to be redeemed at
his registered address. Securities in denominations larger than $1,000
principal amount may be redeemed in part but only in whole multiples of
$1,000. Securities in denominations of $1,000 or less in principal amount
will be redeemed in whole and not in part. If money sufficient to pay the
redemption price of and accrued interest on all Securities (or portions
thereof) to be redeemed on the redemption date is deposited with the Paying
Agent on or before the redemption date and certain other conditions are
satisfied, on and after such date interest ceases to accrue on such Securities
(or such portions thereof) called for redemption.

7. Put Provisions

          Upon a Change of Control, any Holder of Securities will have the right to
cause the Company to repurchase all or any part of the Securities of such
Holder at a repurchase price in cash equal to 101% of the principal amount of
the Securities to be

6

 

repurchased plus accrued interest to the date of repurchase (subject to the
right of holders of record on the relevant record date to receive interest due
on the related interest payment date) as provided in, and subject to the terms
of, the Indenture.

8. Guaranty

          The payment by the Company of the principal of, and premium and interest
on, the Securities is fully and unconditionally guaranteed on a joint and
several senior subordinated basis by each of the Subsidiary Guarantors to the
extent set forth in the Indenture.

9. Subordination

          The Securities are subordinated to Senior Indebtedness of the Company and
the Subsidiary Guarantors on the terms and subject to the conditions set forth
in the Indenture. To the extent provided in the Indenture, Senior Indebtedness
must be paid before the Securities may be paid. Each Securityholder by
accepting a Security agrees to the subordination provisions contained in the
Indenture and authorizes the Trustee to give them effect and appoints the
Trustee as attorney-in-fact for such purpose.

10. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of
$1,000 principal amount and whole multiples of $1,000. A Holder may transfer
or exchange Securities in accordance with the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements or
transfer documents and to pay any taxes and fees required by law or permitted
by the Indenture. The Registrar need not register the transfer of or exchange
any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any
Securities for a period of 15 days before a selection of Securities to be
redeemed or 15 days before an interest payment date.

11. Persons Deemed Owners

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

12. Unclaimed Money

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

7

 

13. Discharge and Defeasance

          Subject to certain conditions, the Company at any time shall be entitled
to terminate some or all of its and the Subsidiary Guarantors’ obligations
under the Securities and the Indenture if the Company deposits with the
Trustee money or U.S. Government Obligations for the payment of principal and
interest on the Securities to redemption or maturity, as the case may be.

14. Amendment; Waiver

          Subject to certain exceptions set forth in the Indenture, (a) the
Indenture and the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the
Securities and (b) any default or noncompliance with any provision may be
waived with the written consent of the Holders of a majority in principal
amount outstanding of the Securities. Subject to certain exceptions set forth
in the Indenture, without the consent of any Securityholder, the Company, the
Subsidiary Guarantors and the Trustee shall be entitled to amend the Indenture
or the Securities to cure any ambiguity, omission, defect or inconsistency, or
to comply with Article 5 of the Indenture, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, to limit or
terminate the benefits available to any holder of Senior Indebtedness of the
Company or of a Subsidiary Guarantor, or to add guarantees with respect to the
Securities, including Subsidiary Guaranties, or to secure the Securities, or to
add additional covenants or surrender rights and powers conferred on the
Company or the Subsidiary Guarantors, or to comply with any requirement of the
SEC in connection with qualifying the Indenture under the Act, or to make any
change that does not adversely affect the rights of any Securityholder, or to
make amendments to provisions of the Indenture relating to the transfer and
legending of the Securities.

15. Defaults and Remedies

          Under the Indenture, Events of Default include (a) default for 30 days in
payment of interest on the Securities; (b) default in payment of principal on
the Securities at maturity, upon redemption pursuant to paragraph 5 of the
Securities, upon acceleration or otherwise, or failure by the Company to redeem
or purchase Securities when required; (c) failure by the Company or any
Subsidiary Guarantor to comply with other agreements in the Indenture or the
Securities, in certain cases subject to notice and lapse of time; (d) certain
accelerations (including failure to pay within any grace period after final
maturity) of other Indebtedness of the Company, any Subsidiary Guarantor or any
Significant Subsidiary if the amount accelerated (or so unpaid) exceeds $10.0
million; (e) certain events of bankruptcy or insolvency with respect to the
Company, the Subsidiary Guarantors and the Significant Subsidiaries; (f)
certain judgments or decrees for the payment of money in excess of $10.0
million; and (g) certain defaults with respect to Subsidiary Guaranties. If an
Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the Securities may declare all the Securities
to be due and payable immediately. Certain events of bankruptcy or

8

 

insolvency are Events of Default which will result in the Securities being due
and payable immediately upon the occurrence of such Events of Default.

          Securityholders may not enforce the Indenture or the Securities except
as provided in the Indenture. The Trustee may refuse to enforce the
Indenture or the Securities unless it receives indemnity or security
satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Securityholders notice of
any continuing Default (except a Default in payment of principal or interest)
if it determines that withholding notice is in the interest of the Holders.

16. Trustee Dealings with the Company

          Subject to certain limitations imposed by the Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17. No Recourse Against Others

          A director, officer, employee or stockholder, as such, of the Company or
any Subsidiary Guarantor or the Trustee shall not have any liability for any
obligations of the Company under the Securities or the Indenture or of such
Subsidiary Guarantor under its Subsidiary Guaranty or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder waives and releases all
such liability. The waiver and release are part of the consideration for the
issue of the Securities.

18. Authentication

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

19. Abbreviations

          Customary abbreviations may be used in the name of a Securityholder or
an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

20. CUSIP Numbers

          Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Company has caused CUSIP numbers to be
printed on the Securities and has directed the Trustee to use CUSIP numbers in
notices of

9

 

redemption as a convenience to Securityholders. No representation is made as to
the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

21. Holders’ Compliance with Registration Rights Agreement

          Each Holder of a Security, by acceptance hereof, acknowledges and agrees
to the provisions of the Registration Rights Agreement, including the
obligations of the Holders with respect to a registration and the
indemnification of the Company to the extent provided therein.

22. Governing Law

          THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

     The Company will furnish to any Securityholder upon written request and
without charge to the Security holder a copy of the Indenture which has in it
the text of this Security in larger type. Requests may be made to:

Valmont Industries, Inc.

One Valmont Plaza
 Omaha,
Nebraska 68154

Attention: Terry McClain

10

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

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

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

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

	 	 	 
	Date:

	 	Your Signature:

     

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

In connection with any transfer of any of the Securities evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act after the later of the date of original
issuance of such Securities and the last date, if any, on which such Securities
were owned by the Company or any Affiliate of the Company, the undersigned
confirms that such Securities are being transferred in accordance with its
terms:

CHECK ONE BOX BELOW

	 	 	 	 	 	 	 
	o	 	to the Company; or
	 
	 	 	 	 	 	 
	

	 	 (1)
	 	o
	 	pursuant to an effective registration statement under the Securities
Act of 1933; or
	 
	 	 	 	 	 	 
	

	 	 (2)
	 	o
	 	inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933) that
purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that
such transfer is being made in reliance on Rule 144A, in
each case pursuant to and in compliance with Rule 144A under
the Securities Act of 1933; or

11

 

	 	 	 	 	 	 	 
	 	 	 (3)
	 	o
	 	outside the United States in an offshore transaction within the
meaning of Regulation S under the Securities Act of 1933 in
compliance with Rule 904 under the Securities Act of 1933;
or
	 
	 	 	 	 	 	 
	

	 	 (4)
	 	o
	 	pursuant to the exemption from registration provided by Rule 144
under the Securities Act of 1933; or
	 
	 	 	 	 	 	 
	

	 	 (5)
	 	o
	 	to an institutional “accredited investor” (as defined in Rule 501(a)(l), (2), (3) or (7) under the Securities Act of
1933) that has furnished to the Trustee a signed letter
containing certain representations and agreements and, if
applicable, an opinion of counsel satisfactory to the
Company that such transfer is in compliance with the
Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register
any of the Securities evidenced by this certificate in the name of any
person other than the registered holder thereof; provided, however, that
if box (4) is checked, the Trustee shall be entitled to require, prior to
registering any such transfer of the Securities, such legal opinions,
certifications and other information as the Company 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 of 1933.

	 	 	 
	 

	 	

	

	 	Signature

Signature Guarantee:

	 	 	 
	
 

	 	
 
	Signature must be guaranteed

	 	Signature

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

12

 

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

          The undersigned represents and warrants that it is purchasing this
Security 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
of 1933, and is aware that the sale to it is being made in reliance on Rule
144A and acknowledges that it has received such information regarding the
Company and the Subsidiary Guarantors 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

13

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

The following increases or decreases in
this Global Security have been made:

	 	 	 
	 	 	 	 	 	 	 	 	Principal amount of	 	 	Signature of
	 	 	Amount of decrease	 	 	Amount of increase	 	 	this Global	 	 	authorized officer
	 	 	in Principal amount	 	 	in Principal amount	 	 	Security following	 	 	of Trustee or
	Date of	 	of this Global	 	 	of this Global	 	 	such decrease or	 	 	Securities
	Exchange	 	Security	 	 	Security	 	 	increase	 	 	Custodian

14

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06 or 4.10 of the Indenture, check the box:

o

          If you want to elect to have only part of this Security purchased by the
Company pursuant to Section 4.06 or 4.10 of the Indenture, state the
amount in principal amount: $                                      

	 	 	 	 	 
	Dated:                                      	 	Your Signature:                                                                                  
	

	 	 	 	(Sign exactly as your name
	

	 	 	 	appears on the other side
	

	 	 	 	of this Security.)

	 	 	 
	Signature Guarantee:
	 	 
	

	 	

(Signature must be guaranteed)

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

15

 

EXHIBIT A TO THE

RULE 144A / REGULATION S / IAI APPENDIX

FORM OF FACE OF EXCHANGE SECURITY

OR PRIVATE EXCHANGE SECURITY

     */**/

*/ If the Security is to be issued in global form add the Global Securities
Legend from Exhibit 1 to Appendix A and the attachment from such Exhibit 1
captioned “[TO BE ATTACHED TO GLOBAL SECURITIES] — SCHEDULE OF INCREASES OR
DECREASES IN GLOBAL SECURITY”.

**/If the Security is a Private Exchange Security issued in a Private Exchange
to an Initial Purchaser holding an unsold portion of its initial allotment, add
the Restricted Securities Legend from Exhibit 1 to Appendix A and replace the
Assignment Form included in this Exhibit A with the Assignment Form included in
such Exhibit 1.

 

 

			
	No.                                      
	 	$                                      

6 7/8% Senior Subordinated Notes due 2014

          Valmont Industries, Inc. a Delaware corporation, promises to pay to                                                                            
        , or registered assigns, the principal sum of                                                                            
Dollars on May 1, 2014.

          Interest Payment Dates: May 1 and November
1.

           Record Dates: April 15 and October 15.

          Additional provisions of this Security are set forth on the other
side of this Security.

Dated:                                      

	 	 	 	 	 	 	 
	 	 	VALMONT INDUSTRIES, INC.
	 
	 	 	 	 	 	 
	

	 	 	 	By	 	 
	

	 	 	 	 	
 
	

	 	 	 	 	 	Name:
	

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	

	 	 	 	By	 	 
	

	 	 	 	 	
 
	

	 	 	 	 	 	Name:
	

	 	 	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF

          AUTHENTICATION

WELLS FARGO BANK, N.A. 

     as Trustee, certifies

          that this is one of the

          Securities referred to

          in the Indenture.

	 	 	 
	By
	 	 
	

	
 
	

	 	Authorized Signatory

2

 

FORM OF REVERSE SIDE OF EXCHANGE

SECURITY OR PRIVATE EXCHANGE SECURITY

6 7/8% Senior Subordinated Note Due 2014

1. Interest

     Valmont Industries, Inc., a Delaware corporation (such corporation, and
its successors and assigns under the Indenture hereinafter referred to, being
herein called the “Company”), promises to pay interest on the principal amount
of this Security at the rate per annum shown above [; provided, however, that
if a Registration Default (as defined in the Registration Rights Agreement)
occurs, additional interest will accrue on this Security at a rate of 0.25% per
annum (increasing by an additional 0.25% per annum after each consecutive
90-day period that occurs after the date on which such Registration Default
occurs up to a maximum additional interest rate of 1.00%) from and including
the date on which any such Registration Default shall occur to but excluding
the date on which all Registration Defaults have been cured.]1 The Company will
pay interest semiannually on May 1 and November 1 of each year, commencing
November 1, 2004. Interest on the Securities will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from May
4, 2004. Interest will be computed on the basis of a 360-day year of twelve
30-day months. The Company will pay interest on overdue principal at the rate
borne by this Security plus 1.0% per annum, and it will pay interest on overdue
installments of interest at the same rate to the extent lawful.

2. Method of Payment

     The Company will pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the April 15 or October 15 next preceding the interest payment
date even if Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company will pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts. Payments in respect of the Securities
represented by a Global Security (including principal, premium and interest)
will be made by wire transfer of immediately available funds to the accounts
specified by the Depository. The Company will make all payments in respect of a
certificated Security (including principal, premium and interest) by mailing a
check to the registered address of each Holder thereof; provided, however, that
payments on a certificated Security will be made by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such
Holder elects payment by wire transfer by giving written notice to the Trustee
or the Paying Agent to such effect designating such account no later than

     

1 Insert if at the date of issuance of the Exchange Security or Private
Exchange Security (as the case may be) any Registration Default has occurred
with respect to the related Initial Securities during the interest period in
which such date of issuance occurs.

3

 

30 days immediately preceding the relevant due date for payment (or such other
date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar

     Initially, Wells Fargo Bank, N.A., a national banking association (the
“Trustee”), will act as Paying Agent and Registrar. The Company may appoint and
change any Paying Agent, Registrar or co-registrar without notice. The Company
or any of its domestically incorporated Wholly Owned Subsidiaries may act as
Paying Agent, Registrar or co-registrar.

4. Indenture

     The Company issued the Securities under an Indenture dated as of May 4,
2004 (the “Indenture”), among the Company, the Subsidiary Guarantors and the
Trustee. The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of
1939 (15 U.S.C. §§ 77aaa-77bbbb) (the “Act”). Terms defined in the Indenture
and not defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to
the Indenture and the Act for a statement of those terms.

     The Securities are general unsecured obligations of the Company. The
Company shall be entitled, subject to its compliance with Section 4.03 of the
Indenture, to issue Additional Securities pursuant to Section 2.13 of the
Indenture. The Initial Securities issued on the Issue Date, any Additional
Securities and all Exchange Securities or Private Exchange Securities issued in
exchange therefor will be treated as a single class for all purposes under the
Indenture. The Indenture contains covenants that limit the ability of the
Company and its subsidiaries to, among other things, incur additional
indebtedness; pay dividends or distributions on, or redeem or repurchase,
capital stock; make investments; issue or sell capital stock of subsidiaries;
engage in transactions with affiliates; transfer or sell assets; guarantee
indebtedness; restrict dividends or other payments of subsidiaries; and
consolidate, merge or transfer all or substantially all of its assets and the
assets of its subsidiaries. These covenants are subject to important exceptions
and qualifications.

5. Optional Redemption

     Except as set forth below, the Company shall not be entitled to
redeem the Securities.

     On and after May 1, 2009, the Company shall be entitled at its option to
redeem all or a portion of the Securities upon not less than 30 nor more than
60 days’ notice, at the redemption prices (expressed in percentages of
principal amount on the redemption date), plus accrued interest to the
redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date), if
redeemed during the 12-month period commencing on May 1 of the years set forth
below:

4

 

	 	 	 	 	 
	 	 	Redemption
	Period
	 	Price

	2009
	 	 	103.438	%
	2010
	 	 	102.292	%
	2011
	 	 	101.146	%
	2012 and thereafter
	 	 	100.000	%

     In addition, prior to May 1, 2007, the Company shall be entitled at its
option on one or more occasions to redeem Securities (which includes Additional
Securities, if any) in an aggregate principal amount not to exceed 35% of the
aggregate principal amount of the Securities (which includes Additional
Securities, if any) originally issued at a redemption price (expressed as a
percentage of principal amount) of 106.875%, plus accrued and unpaid interest
to the redemption date, with the net cash proceeds from one or more Public
Equity Offerings; provided, however, that (1) at least 65% of such aggregate
principal amount of Securities (which includes Additional Securities, if any)
remains outstanding immediately after the occurrence of each such redemption
(other than Securities held, directly or indirectly, by the Company or its
Affiliates); and (2) each such redemption occurs within 60 days after the date
of the related Public Equity Offering.

6. Notice of Redemption

     Notice of redemption will be mailed at least 30 days but not more than 60
days before the redemption date to each Holder of Securities to be redeemed at
his registered address. Securities in denominations larger than $1,000
principal amount may be redeemed in part but only in whole multiples of $1,000.
Securities in denominations of $ 1,000 or less in principal amount will be
redeemed in whole and not in part. If money sufficient to pay the redemption
price of and accrued interest on all Securities (or portions thereof) to be
redeemed on the redemption date is deposited with the Paying Agent on or before
the redemption date and certain other conditions are satisfied, on and after
such date interest ceases to accrue on such Securities (or such portions
thereof) called for redemption.

7. Put Provisions

     Upon a Change of Control, any Holder of Securities will have the right to
cause the Company to repurchase all or any part of the Securities of such
Holder at a repurchase price equal to 101% of the principal amount of the
Securities to be repurchased plus accrued interest to the date of repurchase
(subject to the right of holders of record on the relevant record date to
receive interest due on the related interest payment date) as provided in, and
subject to the terms of, the Indenture.

8. Guaranty

     The payment by the Company of the principal of, and premium and interest
on, the Securities is fully and unconditionally guaranteed on a joint and
several senior

5

 

subordinated basis by each of the Subsidiary Guarantors to the extent set
forth in the Indenture.

9. Subordination

     The Securities are subordinated to Senior Indebtedness of the Company and
the Subsidiary Guarantors on the terms and subject to the conditions set forth
in the Indenture. To the extent provided in the Indenture, Senior Indebtedness
must be paid before the Securities may be paid. Each Securityholder by
accepting a Security agrees to the subordination provisions contained in the
Indenture and authorizes the Trustee to give them effect and appoints the
Trustee as attorney-in-fact for such purpose.

     10. Denominations; Transfer; Exchange

     The Securities are in registered form without coupons in denominations of
$ 1,000 principal amount and whole multiples of $ 1,000. A Holder may transfer
or exchange Securities in accordance with the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements or
transfer documents and to pay any taxes and fees required by law or permitted
by the Indenture. The Registrar need not register the transfer of or exchange
any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any
Securities for a period of 15 days before a selection of Securities to be
redeemed or 15 days before an interest payment date.

11. Persons Deemed Owners

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

12. Unclaimed Money

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

13. Discharge and Defeasance

     Subject to certain conditions, the Company at any time shall be entitled
to terminate some or all of its and the Subsidiary Guarantors’ obligations
under the Securities and the Indenture if the Company deposits with the Trustee
money or U.S. Government Obligations for the payment of principal and interest
on the Securities to redemption or maturity, as the case may be.

6

 

14. Amendment; Waiver

     Subject to certain exceptions set forth in the Indenture, (a) the
Indenture and the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the
Securities and (b) any default or noncornpliance with any provision may be
waived with the written consent of the Holders of a majority in principal
amount outstanding of the Securities. Subject to certain exceptions set forth
in the Indenture, without the consent of any Securityholder, the Company, the
Subsidiary Guarantors and the Trustee shall be entitled to amend the Indenture
or the Securities to cure any ambiguity, omission, defect or inconsistency, or
to comply with Article 5 of the Indenture, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, to limit or
terminate the benefits available to any holder of Senior Indebtedness of the
Company or any Subsidiary Guarantor, or to add guarantees with respect to the
Securities, including Subsidiary Guaranties, or to secure the Securities, or to
add additional covenants or surrender rights and powers conferred on the
Company or the Subsidiary Guarantors, or to comply with any requirement of the
SEC in connection with qualifying the Indenture under the Act, or to make any
change that does not adversely affect the rights of any Securityholder, or to
make amendments to provisions of the Indenture relating to the form,
authentication, transfer and legending of the Securities.

15. Defaults and Remedies

     Under the Indenture, Events of Default include (a) default for 30 days in
payment of interest on the Securities; (b) default in payment of principal on
the Securities at maturity, upon redemption pursuant to paragraph 5 of the
Securities, upon acceleration or otherwise, or failure by the Company to redeem
or purchase Securities when required;
(c) failure by the Company or any Subsidiary Guarantor to comply with other
agreements
in the Indenture or the Securities, in certain cases subject to notice and
lapse of time;
(d) certain accelerations (including failure to pay within any grace period
after final
maturity) of other Indebtedness of the Company, any Subsidiary Guarantor or any
Significant Subsidiary if the amount accelerated (or so unpaid) exceeds $10.0
million;
(e) certain events of bankruptcy or insolvency with respect to the Company, the
Subsidiary Guarantors and the Significant Subsidiaries; (f) certain judgments
or decrees
for the payment of money in excess of $10.0 million; and (g) certain defaults
with respect
to Subsidiary Guaranties. If an Event of Default occurs and is continuing, the
Trustee or
the Holders of at least 25% in principal amount of the Securities may declare
all the
Securities to be due and payable immediately. Certain events of bankruptcy or
insolvency are Events of Default which will result in the Securities being due
and payable
immediately upon the occurrence of such Events of Default.

     Securityholders may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives indemnity or security satisfactory to it.
Subject to certain limitations, Holders of a majority in principal amount of
the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Securityholders notice of any continuing Default
(except a Default in payment of

7

 

principal or interest) if it determines that withholding notice is in the
interest of the Holders.

16. Trustee Dealings with the Company

     Subject to certain limitations imposed by the Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17. No Recourse Against Others

     A director, officer, employee or stockholder, as such, of the Company or
any Subsidiary Guarantor or the Trustee shall not have any liability for any
obligations of the Company under the Securities or the Indenture or of such
Subsidiary Guarantor under its Subsidiary Guaranty or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder waives and releases all
such liability. The waiver and release are part of the consideration for the
issue of the Securities.

18. Authentication

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

19. Abbreviations

     Customary abbreviations may be used in the name of a Securityholder
or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by
the entireties), JT TEN (=joint tenants with rights of survivorship and
not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift
to Minors Act).

20. CUSIP Numbers

     Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Company has caused CUSIP numbers to be
printed on the Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Securityholders. No representation is
made as to the accuracy of such numbers either as printed on the Securities or
as contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

[21. Holders’ Compliance with Registration Rights Agreement

     Each Holder of a Security, by acceptance hereof, acknowledges and agrees
to the provisions of the Registration Rights Agreement, including the
obligations of the Holders

8

 

with respect to a registration and the indemnification of the Company to
the extent provided therein.]2

22. Governing Law

     THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

     The Company will furnish to any Securityholder upon written request and
without charge to the Security holder a copy of the Indenture which has in it
the text of this Security in larger type. Requests may be made to:

Valmont Industries, Inc.

One Valmont Plaza

Omaha, Nebraska 68154

Attention: Terry McClain

	2	 	Delete if this Security is not being issued in exchange for an Initial
Security.

9

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

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

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

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

	 	 	 
	Date:

	 	Your Signature:

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

10

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06 or 4.10 of the Indenture, check the box:

o

          If you want to elect to have only part of this Security purchased by the

Company pursuant to Section 4.06 or 4.10 of the Indenture, state the
amount in principal amount: $                                      

	 	 	 	 	 
	Dated:                                          	 	Your Signature:                                                                                   
	

	 	 	 	(Sign exactly as your name

appears on the other side

of this Security.)

	 	 	 
	Signature Guarantee:
	 	 
	

	
 

(Signature must be guaranteed)

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

 

 

EXHIBIT 2 TO THE

RULE 144A / REGULATIONS / IAI APPENDIX

Form of

Transferee Letter of Representation

Valmont Industries, Inc.

One Valmont Plaza
 Omaha,
Nebraska 68154
 Attention:
Terry McClain

In care of

[     ]

Ladies and Gentlemen:

     This certificate is delivered to request a transfer of $[     ] principal
amount of the 6 7/8% Senior Subordinated Notes due 2014 (the “Securities”) of
Valmont Industries, Inc. (the “Company”).

     Upon transfer, the Securities would be registered in the name of
the new beneficial owner as follows:

	 	 	 
	Name:
	 	 
	

	 	
 
	Address:
	 	 
	

	 	
 
	Taxpayer ID Number:
	 	 
	

	 	
 

     The undersigned represents and warrants to you that:

     1. We are an institutional “accredited investor” (as defined in Rule
501(a)(l), (2), (3) or (7) under the Securities Act of 1933, as amended (the
“Securities Act”)), purchasing for our own account or for the account of such
an institutional “accredited investor”, and we are acquiring the Securities not
with a view to, or for offer or sale in connection with, any distribution in
violation of the Securities Act. We are purchasing at least $250,000 principal
amount of the Securities or, if less, are furnishing herewith an opinion of
counsel as described in clause (iii) of paragraph 2 below. We 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 Securities, and we
invest in or purchase securities similar to the Securities in the normal course
of our business. We, and any accounts for which we are acting, are each able to
bear the economic risk of our or its investment.

 

 

     2. We understand that the Securities have not been registered under the
Securities Act and, unless so registered, may not be sold except as permitted
in the following sentence. We agree on our own behalf and on behalf of any
investor account for which we are purchasing Securities to offer, sell or
otherwise transfer such Securities prior to the date that is two years after
the later of the date of original issue and the last date on which the Company
or any affiliate of the Company was the owner of such Securities (or any
predecessor thereto) (the “Resale Restriction Termination Date”) only (i) to
the Company, (ii) in the United States to a person whom the seller reasonably
believes is a qualified institutional buyer in a transaction meeting the
requirements of Rule 144A, (iii) to an institutional “accredited investor”
within the meaning of Rule 501(a)(l), (2), (3) or (7) under the Securities Act
that is an institutional accredited investor purchasing for its own account or
for the account of an institutional accredited investor, in each case in a
minimum principal amount of the Securities of $250,000, or if such transfer is
in respect of an aggregate principal amount of Securities of less than
$250,000, only if such institutional accredited investor furnishes to the
Trustee an opinion of counsel acceptable to the Company that such transfer is
in compliance with the Securities Act, (iv) outside the United States in a
transaction complying with the provisions of Rule 904 under the Securities Act,
(v) pursuant to an exemption from registration under the Securities Act
provided by Rule 144 (if available) or (vi) pursuant to an effective
registration statement under the Securities Act, in each of cases (i) through
(vi) subject to any requirement of law that the disposition of our property or
the property of such investor account or accounts be at all times within our or
their control and in compliance with any applicable state securities laws. The
foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the Securities
is proposed to be made pursuant to clause (iii) above prior to the Resale
Restriction Termination Date, the transferor shall deliver a letter from the
transferee substantially in the form of this letter to the Trustee, which shall
provide, among other things, that the transferee is an institutional
“accredited investor” within the meaning of Rule 501(a)(l), (2), (3) or (7)
under the Securities Act and that it is acquiring such Securities for
investment purposes and not for distribution in violation of the Securities
Act. Each purchaser acknowledges that the Company and the Trustee reserve the
right prior to the offer, sale or other transfer prior to the Resale
Restriction Termination Date of the Securities pursuant to clause (iii), (iv)
or (v) above to require the delivery of an opinion of counsel, certifications
or other information satisfactory to the Company and the Trustee.

	 	 	 	
	TRANSFEREE:
	 	 	
	

	 	
	,
	by:
	 	 	
	

	 	
 	

13exv10w1

 

Exhibit 10.1

AMENDMENT NO. 1 TO THE

VALMONT 1999 STOCK PLAN

     Effective April 26, 2004, Section 5.2 of the Valmont 1999 Stock Plan is
amended and restated in its entirety to read as follows:

“5.2 Cancelled, Terminated or Forfeited Awards. Any shares of Stock
subject to an Award which for any reason are cancelled, terminated or
otherwise settled without the issuance of any Stock shall again be
available for Awards under the Plan. In the event a Participant pays the
exercise price of an Option pursuant to Section 6.4 by transferring or
having withheld shares of stock, only the net number of Shares shall be
considered utilized under the Plan and the balance shall again be
available for Award under the Plan. Notwithstanding the immediately
preceding sentence, the number of shares available for Awards under the
Plan shall not be increased by the number of any previously issued shares
surrendered in connection with the exercise of an Award, more than ten
years after the date of the most recent shareholder approval of the Plan.”

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