Document:

Exhibit 4.5

 

ALLIANCE IMAGING, INC.

 

as Issuer

 

and

 

BANK OF NEW YORK TRUST COMPANY, N.A.

 

as Trustee

 

 

INDENTURE

 

Dated as of December 29, 2004

 

 

71⁄4% Senior Subordinated Notes due 2012

71⁄4% Series B Senior Subordinated Notes due
2012

 

 

ALLIANCE IMAGING, INC.(a)

 

RECONCILIATION AND TIE BETWEEN TRUST
INDENTURE ACT

OF 1939, AS AMENDED, AND INDENTURE, DATED AS OF DECEMBER 29, 2004

 

CROSS-REFERENCE TABLE

 

	
  TIA

  	
   

  	
  Indenture

  
	
  Section

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  310(a)

  	
   

  	
  608

  
	
  (a)(2)

  	
   

  	
  608

  
	
  (b)

  	
   

  	
  609

  
	
  311

  	
   

  	
  606

  
	
  312(a)

  	
   

  	
  701

  
	
  (c)

  	
   

  	
  702

  
	
  313(a)

  	
   

  	
  703

  
	
  (c)

  	
   

  	
  703

  
	
  314(a)(4)

  	
   

  	
  1018(a)

  
	
  (c)(1)

  	
   

  	
  102

  
	
  (c)(2)

  	
   

  	
  102

  
	
  (e)

  	
   

  	
  102

  
	
  315(a)

  	
   

  	
  601

  
	
  (b)

  	
   

  	
  602

  
	
  (c)

  	
   

  	
  601(b)

  
	
  (d)

  	
   

  	
  601(c), 603

  
	
  316(a) (last sentence)

  	
   

  	
  101

  
	
  (a)(1)(A)

  	
   

  	
  502, 512

  
	
  (a)(1)(B)

  	
   

  	
  513

  
	
  (b)

  	
   

  	
  508

  
	
  (c)

  	
   

  	
  104(d)

  
	
  317(a)(1)

  	
   

  	
  503

  
	
  (a)(2)

  	
   

  	
  504

  
	
  (b)

  	
   

  	
  1003

  
	
  318(a)

  	
   

  	
  115

  

 

(a)                                  Note:   This
reconciliation and tie shall not, for any purpose, be deemed to be a part of
the Indenture.

 

 

TABLE
OF CONTENTS(a)

 

	
  ARTICLE
  ONE

  

  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 101.

  	
  Definitions

  	
  2

  
	
  Section 102.

  	
  Compliance
  Certificates and Opinions

  	
  22

  
	
  Section 103.

  	
  Form
  of Documents Delivered to Trustee

  	
  23

  
	
  Section 104.

  	
  Acts of Holders

  	
  24

  
	
  Section 105.

  	
  Notices, etc., to Trustee, the Company and
  Any Guarantor

  	
  24

  
	
  Section 106.

  	
  Notice to Holders; Waiver

  	
  25

  
	
  Section 107.

  	
  Effect of Headings and Table of Contents

  	
  25

  
	
  Section 108.

  	
  Successors and Assigns

  	
  25

  
	
  Section 109.

  	
  Separability Clause

  	
  25

  
	
  Section 110.

  	
  Benefits of Indenture

  	
  25

  
	
  Section 111.

  	
  Governing Law

  	
  26

  
	
  Section 112.

  	
  Legal Holidays

  	
  26

  
	
  Section 113.

  	
  No Personal Liability of Directors,
  Officers, Employees, Stockholders or Incorporators

  	
  26

  
	
  Section 114.

  	
  Counterparts

  	
  26

  
	
  Section 115.

  	
  Trust Indenture Act Controls

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  

  NOTE FORMS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 201.

  	
  Forms Generally

  	
  27

  
	
  Section 202.

  	
  Restrictive Legends

  	
  27

  
	
  Section 203.

  	
  Form of Certification for Transfer or
  Exchange of Notes

  	
  29

  
	
  Section 204.

  	
  Form of Face of Note

  	
  30

  
	
  Section 205.

  	
  Form of Reverse of Note

  	
  33

  
	
  Section 206.

  	
  Form of Trustee’s Certificate of
  Authentication

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  

  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 301.

  	
  Title and Terms

  	
  39

  
	
  Section 302.

  	
  Denominations

  	
  40

  

 

(a)                                  This table of contents shall not, for any
purpose, be deemed to be a part of the Indenture.

 

i

 

	
  Section 303.

  	
  Execution, Authentication, Delivery and
  Dating

  	
  40

  
	
  Section 304.

  	
  Temporary Notes

  	
  41

  
	
  Section 305.

  	
  Registration; Registration of Transfer and
  Exchange

  	
  42

  
	
  Section 306.

  	
  Book-Entry Provisions for the Global Note

  	
  43

  
	
  Section 307.

  	
  Special Transfer Provisions

  	
  44

  
	
  Section 308.

  	
  Form of Certificate to be Delivered in
  Connection with Transfers to Non-QIB Institutional Accredited Investors

  	
  48

  
	
  Section 309.

  	
  Form of Certificate to be Delivered in
  Connection with Transfers of an Offshore Global Note

  	
  50

  
	
  Section 310.

  	
  Mutilated, Destroyed, Lost and Stolen Notes

  	
  51

  
	
  Section 311.

  	
  Payment of Interest; Interest Rights
  Preserved

  	
  52

  
	
  Section 312.

  	
  Persons Deemed Owners

  	
  53

  
	
  Section 313.

  	
  Cancellation

  	
  53

  
	
  Section 314.

  	
  Computation of Interest

  	
  54

  
	
  Section 315.

  	
  CUSIP Numbers

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  

  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 401.

  	
  Satisfaction and Discharge of Indenture

  	
  54

  
	
  Section 402.

  	
  Application of Trust Money

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  

  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 501.

  	
  Events of Default

  	
  56

  
	
  Section 502.

  	
  Acceleration of Maturity; Rescission and
  Annulment

  	
  57

  
	
  Section 503.

  	
  Collection of Indebtedness and Suits for
  Enforcement by Trustee

  	
  58

  
	
  Section 504.

  	
  Trustee May File Proofs of Claim

  	
  59

  
	
  Section 505.

  	
  Trustee May Enforce Claims Without
  Possession of Notes

  	
  60

  
	
  Section 506.

  	
  Application of Money Collected

  	
  60

  
	
  Section 507.

  	
  Limitation on Suits

  	
  60

  
	
  Section 508.

  	
  Unconditional Right of Holders to Receive
  Principal, Premium and Interest

  	
  61

  
	
  Section 509.

  	
  Restoration of Rights and Remedies

  	
  61

  
	
  Section 510.

  	
  Rights and Remedies Cumulative

  	
  61

  
	
  Section 511.

  	
  Delay or Omission Not Waiver

  	
  61

  
	
  Section 512.

  	
  Control by Holders

  	
  61

  
	
  Section 513.

  	
  Waiver of Past Defaults

  	
  62

  
	
  Section 514.

  	
  Waiver of Stay or Extension Laws

  	
  62

  
	
  Section 515.

  	
  Undertaking for Costs

  	
  63

  

 

ii

 

	
  ARTICLE SIX

  

  THE TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 601.

  	
  Certain Duties and Responsibilities

  	
  63

  
	
  Section 602.

  	
  Notice of Defaults

  	
  64

  
	
  Section 603.

  	
  Certain Rights of Trustee

  	
  64

  
	
  Section 604.

  	
  Trustee Not Responsible for Recitals or
  Issuance of Notes

  	
  65

  
	
  Section 605.

  	
  May Hold Notes

  	
  66

  
	
  Section 606.

  	
  Money Held in Trust

  	
  66

  
	
  Section 607.

  	
  Compensation and Reimbursement

  	
  66

  
	
  Section 608.

  	
  Corporate Trustee Required; Eligibility

  	
  67

  
	
  Section 609.

  	
  Resignation and Removal; Appointment of
  Successor

  	
  67

  
	
  Section 610.

  	
  Acceptance of Appointment by Successor

  	
  68

  
	
  Section 611.

  	
  Merger, Conversion, Consolidation or
  Succession to Business

  	
  70

  
	
  Section 612.

  	
  Trustee’s Application for Instructions from
  the Company

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  

  HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 701.

  	
  Company to Furnish Trustee Names and
  Addresses

  	
  70

  
	
  Section 702.

  	
  Disclosure of Names and Addresses of
  Holders

  	
  71

  
	
  Section 703.

  	
  Reports by Trustee

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  

  MERGER, CONSOLIDATION, OR SALE OF ALL OR SUBSTANTIALLY ALL ASSETS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 801.

  	
  Company May Consolidate, etc., Only on
  Certain Terms

  	
  71

  
	
  Section 802.

  	
  Successor Substituted

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  

  SUPPLEMENTS AND AMENDMENTS TO INDENTURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 901.

  	
  Supplemental Indentures without Consent of
  Holders

  	
  72

  
	
  Section 902.

  	
  Supplemental Indentures with Consent of
  Holders

  	
  73

  
	
  Section 903.

  	
  Execution of Supplemental Indentures

  	
  74

  
	
  Section 904.

  	
  Effect of Supplemental Indentures

  	
  74

  
	
  Section 905.

  	
  Conformity with Trust Indenture Act

  	
  75

  
	
  Section 906.

  	
  Reference in Notes to Supplemental
  Indentures

  	
  75

  
	
  Section 907.

  	
  Notice of Supplemental Indentures

  	
  75

  
	
  Section 908.

  	
  Effect on Senior Indebtedness

  	
  75

  

 

iii

 

	
  ARTICLE TEN

  

  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1001.

  	
  Payment of Principal, Premium, if any, and
  Interest

  	
  75

  
	
  Section 1002.

  	
  Maintenance of Office or Agency

  	
  75

  
	
  Section 1003.

  	
  Money for Note Payments to be Held in Trust

  	
  76

  
	
  Section 1004.

  	
  Corporate Existence

  	
  77

  
	
  Section 1005.

  	
  Taxes

  	
  77

  
	
  Section 1006.

  	
  Maintenance of Properties

  	
  77

  
	
  Section 1007.

  	
  Insurance

  	
  77

  
	
  Section 1008.

  	
  Compliance with Laws

  	
  78

  
	
  Section 1009.

  	
  Limitation on Restricted Payments

  	
  78

  
	
  Section 1010.

  	
  Limitation on Incurrence of Indebtedness
  and Issuance of Disqualified Stock

  	
  82

  
	
  Section 1011.

  	
  Liens

  	
  85

  
	
  Section 1012.

  	
  Transactions with Affiliates

  	
  86

  
	
  Section 1013.

  	
  Dividend and Other Payment Restrictions
  Affecting Subsidiaries

  	
  87

  
	
  Section 1014.

  	
  Limitation on Guarantees of Indebtedness by
  Restricted Subsidiaries

  	
  89

  
	
  Section 1015.

  	
  Limitation on Other Senior Subordinated
  Indebtedness

  	
  90

  
	
  Section 1016.

  	
  Purchase of Notes upon a Change of Control

  	
  90

  
	
  Section 1017.

  	
  Asset Sales

  	
  91

  
	
  Section 1018.

  	
  Compliance Certificate

  	
  94

  
	
  Section 1019.

  	
  Reports

  	
  94

  
	
  Section 1020.

  	
  Further Assurances

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  

  REDEMPTION OF NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1101.

  	
  Redemption

  	
  95

  
	
  Section 1102.

  	
  Applicability of Article

  	
  95

  
	
  Section 1103.

  	
  Election to Redeem; Notice to Trustee

  	
  95

  
	
  Section 1104.

  	
  Selection by Trustee of Notes to be
  Redeemed

  	
  95

  
	
  Section 1105.

  	
  Notice of Redemption

  	
  95

  
	
  Section 1106.

  	
  Deposit of Redemption Price

  	
  96

  
	
  Section 1107.

  	
  Notes Payable on Redemption Date

  	
  97

  
	
  Section 1108.

  	
  Notes Redeemed in Part

  	
  97

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  

  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1201.

  	
  Company’s Option To Effect Legal Defeasance
  or Covenant Defeasance

  	
  97

  

 

iv

 

	
  Section 1202.

  	
  Legal Defeasance and Discharge

  	
  97

  
	
  Section 1203.

  	
  Covenant Defeasance

  	
  98

  
	
  Section 1204.

  	
  Conditions to Legal Defeasance or Covenant
  Defeasance

  	
  98

  
	
  Section 1205.

  	
  Deposited Money and U.S. Government Securities
  to be Held in Trust; Other Miscellaneous Provisions

  	
  100

  
	
  Section 1206.

  	
  Reinstatement

  	
  100

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  

  SUBORDINATION OF NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1301.

  	
  Notes Subordinate to Senior Indebtedness

  	
  101

  
	
  Section 1302.

  	
  Payment Over of Proceeds upon Dissolution,
  etc

  	
  101

  
	
  Section 1303.

  	
  Suspension of Payment When Senior
  Indebtedness in Default

  	
  101

  
	
  Section 1304.

  	
  Acceleration of Notes

  	
  102

  
	
  Section 1305.

  	
  When Distribution Must be Paid Over

  	
  102

  
	
  Section 1306.

  	
  Notice by Company

  	
  103

  
	
  Section 1307.

  	
  Payment Permitted if no Default

  	
  103

  
	
  Section 1308.

  	
  Subrogation to Rights of Holders of Senior
  Indebtedness

  	
  103

  
	
  Section 1309.

  	
  Provisions Solely to Define Relative Rights

  	
  103

  
	
  Section 1310.

  	
  Trustee to Effectuate Subordination

  	
  104

  
	
  Section 1311.

  	
  Subordination May not be Impaired by
  Company

  	
  104

  
	
  Section 1312.

  	
  Distribution or Notice to Representative

  	
  104

  
	
  Section 1313.

  	
  Notice to Trustee

  	
  104

  
	
  Section 1314.

  	
  Reliance on Judicial Order or Certificate
  of Liquidating Agent

  	
  105

  
	
  Section 1315.

  	
  Rights of Trustee as a Holder of Senior
  Indebtedness; Preservation of Trustee’s Rights

  	
  105

  
	
  Section 1316.

  	
  Article Applicable to Paying Agents

  	
  106

  
	
  Section 1317.

  	
  No Suspension of Remedies

  	
  106

  
	
  Section 1318.

  	
  Modification of Terms of Senior
  Indebtedness

  	
  106

  
	
  Section 1319.

  	
  Certain Terms

  	
  106

  
	
  Section 1320.

  	
  Trust Moneys Not Subordinated

  	
  106

  

 

v

 

INDENTURE, dated as of December 29, 2004, between Alliance Imaging,
Inc., a corporation duly organized and existing under the laws of the State of
Delaware (the “Company”), having its principal office at 1900 South
State College Boulevard, Suite 600, Anaheim, California 92806, and Bank of New
York Trust Company, N.A., a national banking corporation, as trustee (the “Trustee”).

 

RECITALS OF
THE COMPANY

 

The Company has duly authorized the creation of and issuance of its 71⁄4%
Senior Subordinated Notes due 2012 and its 71⁄4% Series B Senior Subordinated
Notes due 2012, of substantially the tenor and amount hereinafter set forth,
and to provide therefor and to provide for the Additional Notes (as defined
herein) the Company has duly authorized the execution and delivery of this
Indenture.

 

Upon issuance of the Exchange Notes, if any, or the effectiveness of
the Shelf Registration Statement (as defined herein), this Indenture will be
subject to, and shall be governed by, the provisions of the Trust Indenture Act
of 1939, as amended, that are required or deemed to be part of and to govern
indentures qualified thereunder.

 

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

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

Each
party agrees as follows for the benefit of the other party and for the equal
and ratable benefit of the Holders of (a) $150,000,000 aggregate principal
amount of the Company’s 71⁄4% Senior Subordinated Notes due 2012 (the “Original
Notes”) issued on the date hereof, (b) any Additional Notes (as defined
herein) that may be issued after the date hereof that include the Private
Placement Legend (all such securities in clauses (a) and (b) being referred to
collectively as the “Initial Notes”) and (c) if and when issued as
provided in the Registration Rights Agreement or otherwise registered under the
Securities Act and issued, the Company’s 71⁄4% Series B Senior Subordinated Notes
due 2012 (the “Exchange Notes” and, together with the Initial Notes, the
“Notes”) issued in the Exchange Offer in exchange for any Initial
Securities or otherwise registered under the Securities Act and issued without
the Private Placement Legend. Subject to the conditions and compliance with the
covenants set forth herein, the Company may issue an unlimited aggregate
principal amount of Additional Notes.

 

 

ARTICLE ONE

 

DEFINITIONS
AND OTHER PROVISIONS OF GENERAL APPLICATION

 

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

 

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

 

(b)                                 all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, or defined by
Commission rule and not otherwise defined herein have the meanings assigned to
them therein, and the terms “cash transaction” and “self-liquidating
paper,” as used in TIA Section 311, shall have the meanings assigned to
them in the rules of the Commission adopted under the Trust Indenture Act;

 

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

 

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

 

(e)                                  the word “or” is not exclusive; and

 

(f)                                    provisions of this Indenture apply to successive events and
transactions.

 

Certain terms, used principally in Articles Two, Ten, Twelve and
Thirteen, are defined in those Articles.

 

“Accredited Investor”
has the meaning set forth in Section 202.

 

“Acquired Indebtedness” means, with respect to any specified
Person, (i) Indebtedness of any other Person existing at the time such other
Person is merged with or into or became a Restricted Subsidiary of such
specified Person, including, without limitation, Indebtedness incurred in
connection with, or in contemplation of, such other Person merging with or into
or becoming a Restricted Subsidiary of such specified Person, and (ii)
Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

 

“Act,” when used with respect to any Holder, has the meaning set
forth in Section 104.

 

“Additional Notes” means 71⁄4% Senior Subordinated Notes due 2012
issued under the terms of this Indenture subsequent to the Issuance Date.

 

“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.

 

2

 

For purposes
of this definition, “control” (including, with correlative meanings, the
terms “controlling,” “controlled by” and “under common control
with”), as used with respect to any Person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise; provided,
however, that beneficial ownership
of 10% or more of the voting securities of a Person shall be deemed to be
control.

 

“Affiliate Transaction” has the meaning set forth in Section
1012.

 

“Agent” means any Paying Agent, Authenticating Agent and Note
Registrar under this Indenture.

 

“Agent Members” has the meaning set forth in Section 306.

 

“Applicable Premium” means, with respect to any Note on any
Redemption Date, the greater of (i) 1.0% of the principal amount of such Note
or (ii) the excess of (A) the present value at such Redemption Date of (1) the
redemption price of such Note at December 15, 2007 (such redemption price being
set forth as described in the Notes) plus (2) all required interest payments
due on such Note through December 15, 2007 (excluding accrued but unpaid
interest and Liquidated Damages, if any), computed using a discount rate equal
to the Treasury Rate on such Redemption Date, plus 75 basis points over (B) the
principal amount of such Note.

 

“Asset Sale” means (i) the sale, conveyance, transfer or other
disposition (whether in a single transaction or a series of related
transactions) of property or assets (including by way of a sale and leaseback)
of the Company or any Restricted Subsidiary outside the ordinary course of
business (each referred to in this definition as a “disposition”), or
(ii) the issuance or sale of Equity Interests of any Restricted Subsidiary
(whether in a single transaction or a series of related transactions), in each
case, other than: (a) a disposition of Cash Equivalents or Investment Grade Securities
or obsolete equipment in the ordinary course of business; (b) the disposition
of all or substantially all of the assets of the Company in a manner permitted
pursuant to the provisions of Section 801 hereof or any disposition that
constitutes a Change of Control pursuant to this Indenture; (c) any Restricted
Payment that is permitted to be made, and is made, under the first paragraph of
Section 1009 hereof; (d) any disposition of assets with an aggregate fair
market value of less than $2.0 million; (e) any disposition of property or
assets by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Wholly Owned Restricted Subsidiary; (f) any exchange
of like property pursuant to Section 1031 of the Internal Revenue Code of 1986,
as amended, for use in a Similar Business; (g) any financing transaction with
respect to property built or acquired by the Company or any Restricted
Subsidiary after the Issuance Date including, without limitation,
sale-leasebacks and asset securitizations; (h) foreclosures on assets; (i)
sales of accounts receivable, or participations therein, in connection with any
Receivables Facility; (j) any sale of Equity Interests in, or Indebtedness or
other securities of, an Unrestricted Subsidiary; (k) any sale of an imaging or
therapeutic system to any original manufacturer of imaging or therapeutic
systems in exchange for a credit from such manufacturer against the purchase of
a replacement or alternate imaging or therapeutic system; and (l) any sale of
an imaging or therapeutic system pursuant to an arrangement with a client of
the Company or one of its Restricted Subsidiaries; provided that (i) any such system was purchased by the
Company or such Restricted Subsidiary within the 90 days prior to the date of
such sale

 

3

 

and (ii) the
Company or such Restricted Subsidiary receives net cash proceeds in connection
with the sale in an amount equal to or greater than the amount it paid for such
system.

 

“Asset Sale Offer”
has the meaning set forth in Section 1017.

 

“Asset Sale Purchase Date” has the meaning set forth in Section
1017.

 

“Authenticating Agent” means the Person appointed, if any, by
the Trustee as an authenticating agent pursuant to the last paragraph of
Section 303.

 

“Bank Agent” means Deutsche Bank Trust Company Americas, in its
capacity as administrative agent under the Credit Facility, and any successor
administrative agent thereunder.

 

“Bankruptcy Law” means Title 11, United States Bankruptcy Code
of 1978, as amended, or any similar United States federal or state or foreign
law relating to bankruptcy, insolvency, receivership, winding-up, liquidation,
reorganization or relief of debtors or any amendment to, succession to or
change in any such law.

 

“Board of Directors” means, with respect to any Person, either
the board of directors of such Person or any duly authorized committee thereof.

 

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

 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday
and Friday which is not a day on which banking institutions in The City of New
York are authorized or obligated by law or executive order to close.

 

“Capital Stock” means (i) in the case of a corporation,
corporate stock, (ii) in the case of an association or business entity, any and
all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or
limited) and (iv) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.

 

“Capitalized Lease Obligation” means, at the time any
determination thereof is to be made, the amount of the liability in respect of
a capital lease that would at such time be required to be capitalized and
reflected as a liability on a balance sheet (excluding the footnotes thereto)
in accordance with GAAP.

 

“Cash Equivalents” means (i) U.S. dollars, (ii) securities
issued or directly and fully guaranteed or insured by the U.S. Government or
any agency or instrumentality thereof, (iii) certificates of deposit,
time deposits and eurodollar time deposits with maturities of one year or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus

 

4

 

in excess of $250.0 million,
(iv) repurchase obligations for underlying securities of the types described in
clauses (ii) and (iii) entered into with any financial institution meeting the
qualifications specified in clause (iii) above, (v) commercial paper rated A-1
or the equivalent thereof by Moody’s or S&P and in each case maturing
within one year after the date of acquisition, (vi) investment funds investing
at least 95% of their assets in securities of the types described in clauses (i)-(v)
above, (vii) readily marketable direct obligations issued by any state of the
United States of America or any political subdivision thereof having one of the
two highest rating categories obtainable from either Moody’s or S&P and
(viii) Indebtedness or preferred stock issued by Persons with a rating of “A”
or higher from S&P or “A2” or higher from Moody’s.

 

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

 

(i)                                     the sale, lease or transfer, in one or a series of related
transactions, of all or substantially all of the assets of the Company and its
Subsidiaries, taken as a whole; or

 

(ii)                                  the Company becomes aware of (by way of a report or any other
filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written
notice or otherwise) the acquisition by any Person or group (within the meaning
of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor
provision), including any group acting for the purpose of acquiring, holding or
disposing of securities (within the meaning of Rule 13d-5(b)(1) under the
Exchange Act), other than the Permitted Holders and their Related Parties, in a
single transaction or in a related series of transactions, by way of merger,
consolidation or other business combination or purchase of beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act, or any successor
provision) of 50% or more of the total voting power of the Voting Stock of the
Company.

 

“Change of Control Offer”
has the meaning set forth in Section 1016.

 

“Change of Control
Payment” has the meaning set forth in Section 1016.

 

“Change of Control
Payment Date” has the meaning set forth in Section 1016.

 

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

 

“Common Stock” of any Person means any and all shares, interests
or other participations in, and other equivalents (however designated, whether
voting or non-voting) of such Person’s common stock, whether outstanding on the
Issuance Date or issued after the Issuance Date and includes, without
limitation, all series and classes of such common stock.

 

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

 

“Company Request” or “Company Order” means a written
request or order signed in the name of the Company (i) by its Chairman, a
Vice-Chairman, its President or any Vice

 

5

 

President
and (ii) by its Treasurer, an Assistant Treasurer, its Secretary or an
Assistant Secretary and delivered to the Trustee; provided, however,
that such written request or order may be signed by any two of the officers or
directors listed in clause (i) above in lieu of being signed by one of such
officers or directors listed in such clause (i) and one of the officers listed
in clause (ii) above. 

 

“Consolidated” means, with respect to any Person, such Person
consolidated with its Restricted Subsidiaries, and shall not include any
Unrestricted Subsidiary.

 

“Consolidated Depreciation and Amortization Expense” means with
respect to any Person for any period, the total amount of depreciation and
amortization expense of such Person and its Restricted Subsidiaries for such
period on a consolidated basis and otherwise determined in accordance with
GAAP.

 

“Consolidated Interest Expense” means, with respect to any
period, the sum, without duplication, of: (i) consolidated interest expense of
such Person and its Restricted Subsidiaries for such period, to the extent such
expense was deducted in computing Consolidated Net Income (including
amortization of original issue discount, non-cash interest payments, the
interest component of Capitalized Lease Obligations, and net payments and
receipts (if any) pursuant to Hedging Obligations to the extent included in
Consolidated Interest Expense, excluding amortization of deferred financing
fees) and (ii) consolidated capitalized interest of such Person and its
Restricted Subsidiaries for such period, whether paid or accrued; provided, however,
that Receivables Fees shall be deemed not to constitute Consolidated Interest
Expense.

 

“Consolidated Net Income” means, with respect to any Person for
any period, the aggregate of the Net Income, of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, and otherwise determined
in accordance with GAAP; provided,
however, that (i) any net
after-tax extraordinary or nonrecurring or unusual gains or losses (less all
fees and expenses relating thereto) shall be excluded, (ii) the Net Income for
such period shall not include the cumulative effect of a change in accounting
principles during such period, (iii) any net after-tax income (loss) from
discontinued operations and any net after-tax gains or losses on disposal of
discontinued operations shall be excluded, (iv) any net after-tax gains or
losses (less all fees and expenses relating thereto) attributable to asset
dispositions other than in the ordinary course of business (as determined in
good faith by the Board of Directors of the Company) shall be excluded, (v) the
Net Income for such period of any Person that is not a Subsidiary, or is an
Unrestricted Subsidiary, or that is accounted for by the equity method of
accounting, shall be included only to the extent of the amount of dividends or
distributions or other payments paid in cash (or to the extent converted into
cash) to the referent Person or a Restricted Subsidiary thereof in respect of
such period, (vi) for purposes of Section 1009 only, the Net Income of any
Person acquired in a pooling of interests transaction shall not be included for
any period prior to the date of such acquisition and (vii) the Net Income for such
period of any Restricted Subsidiary shall be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of its Net Income is not at the date of determination permitted
without any prior governmental approval (which has not been obtained) or,
directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental
regulation applicable to that Restricted Subsidiary or its stockholders,

 

6

 

unless such restriction with
respect to the payment of dividends or in similar distributions has been
legally waived.

 

“Contingent Obligations” means, with respect to any Person, any
obligation of such Person guaranteeing any leases, dividends or other
obligations that do not constitute Indebtedness “Primary Obligations”)
of any other Person (the “Primary Obligor”) in any manner, whether
directly or indirectly, including, without limitation, any obligation of such
Person, whether or not contingent, (i) to purchase any such primary obligation
or any property constituting direct or indirect security therefor, (ii) to
advance or supply funds (A) for the purchase or payment of any such primary
obligation or (B) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary
obligor, or (iii) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary obligation of the ability
of the primary obligor to make payment of such primary obligation against loss
in respect thereof.

 

“Corporate Trust Office” means the principal corporate trust
office of the Trustee, at which at any particular time its corporate trust
business shall be administered, which office at the date of execution of this
Indenture is located at 101 Barclay Street, Floor 21 West, New York, NY 10286,
Att: Corporate Trust Administration.

 

“Covenant Defeasance” has the meaning set forth in Section 1203.

 

“Credit Facilities” means, with respect to the Company, one or
more debt facilities (including, without limitation, the Credit Facility) or
commercial paper facilities with banks or other institutional lenders providing
for revolving credit loans, term loans, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of
credit, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time.

 

“Credit Facility” means the credit facility provided to the
Company pursuant to the Credit Agreement, dated as of November 2, 1999, as amended
as of the Issuance Date, by and among the Company, the financial institutions
listed on the signature pages thereof and Deutsche Bank Trust Company Americas,
as administrative agent for the lenders, including any collateral documents,
instruments and agreements executed in connection therewith, and the term
Credit Facility shall also include any amendments, supplements, modifications,
extensions, renewals, restatements or refundings thereof and any credit
facilities that replace, refund or refinance any part of the loans, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility that increases the amount borrowable
thereunder or alters the maturity thereof; provided, however, that there shall not be more than one facility at
any one time that constitutes the Credit Facility and, if at any time there is
more than one facility which would constitute the Credit Facility, the Company
will designate to the Trustee which one of such facilities will be the Credit
Facility for purposes of this Indenture.

 

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

 

7

 

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

 

“Defaulted Interest” has the meaning set forth in Section 311.

 

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

 

“Designated Noncash Consideration” means the fair market value
of noncash consideration received by the Company or one of its Restricted
Subsidiaries in connection with an Asset Sale that is so designated as
Designated Noncash Consideration pursuant to an Officers’ Certificate, setting
forth the basis of such valuation, executed by the principal executive officer
and the principal financial officer of the Company, less the amount of cash or
Cash Equivalents received in connection with a sale of such Designated Noncash
Consideration.

 

“Designated Preferred Stock” means preferred stock of the
Company (other than Disqualified Stock) that is issued for cash (other than to
a Restricted Subsidiary) and is so designated as Designated Preferred Stock,
pursuant to an Officers’ Certificate executed by the principal executive
officer and the principal financial officer of the Company, on the issuance
date thereof, the cash proceeds of which are excluded from the calculation set
forth in clause (C) of paragraph (a) of Section 1009.

 

“Designated Senior Indebtedness” means (i) Senior Indebtedness
under the Credit Facility and (ii) any other Senior Indebtedness permitted
under this Indenture the principal amount of which is $50.0 million or more and
that has been designated by the Company as Designated Senior Indebtedness.

 

“Disqualified Stock” means, with respect to any Person, any
Capital Stock of such Person which, by its terms (or by the terms of any
security into which it is convertible or for which it is putable or
exchangeable), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder thereof, in whole or in part, in each case prior to
the date 91 days after the maturity date of the Notes; provided,
however, that if such Capital Stock is issued to any employee or to
any plan for the benefit of employees of the Company or its Subsidiaries or by
any such plan to such employees, such Capital Stock shall not constitute
Disqualified Stock solely because it may be required to be repurchased by the
Company in order to satisfy applicable statutory or regulatory obligations; provided further, that any Capital Stock
that would constitute Disqualified Stock solely because the holders thereof (or
of any security into which it is convertible or for which it is exchangeable)
have the right to require the issuer to repurchase such Capital Stock (or such
security into which it is convertible or for which it is exchangeable) upon the
occurrence of any of the events constituting an Asset Sale or a Change of
Control shall not constitute Disqualified Stock if such Capital Stock (and all
such securities into which it is convertible or for which it is exchangeable)
provides that the issuer thereof will not repurchase or redeem any such Capital
Stock (or any such security into which it is convertible or for which it is
exchangeable) pursuant to such provisions prior to compliance by the Company
with the provisions of Sections 1016 and 1017 as the case may be.

 

8

 

“EBITDA” means, with respect to any Person for any period, the
Consolidated Net Income of such Person for such period plus to the extent
included in the calculation of such Consolidated Net Income (a) provision for
taxes based on income or profits of such Person for such period, plus (b)
Consolidated Interest Expense of such Person for such period and any
Receivables Fees paid by such Person or any of its Restricted Subsidiaries
during such period, plus (c) Consolidated Depreciation and Amortization Expense
of such Person for such period, including amortization of deferred financing
fees, plus (d) any expenses or charges related to any Equity Offering,
Permitted Investment or Indebtedness permitted to be incurred by this Indenture
or any costs incurred in the cancellation of stock options, plus (e) the amount
of any restructuring charge, plus (f) without duplication, any other non-cash
charges reducing Consolidated Net Income for such period (excluding any such
charge which requires an accrual of a cash reserve for anticipated cash charges
for any future period), plus (g) the amount of any minority interest expense,
less (h) without duplication, non-cash items increasing Consolidated Net Income
(excluding any items which represent the reversal of any accrual of, or cash
reserve for, anticipated cash charges in any prior period).

 

“Equity Interests” means Capital Stock and all warrants, options
or other rights to acquire Capital Stock (but excluding any debt security that
is convertible into, or exchangeable for, Capital Stock).

 

“Equity Offering” means any public or private sale of common
stock or preferred stock of the Company (excluding Disqualified Stock), other
than (i) public offerings with respect to the Company’s Common Stock registered
on Form S-8 and (ii) any such public or private sale that constitutes an
Excluded Contribution.

 

“Event of Default” has the meaning set forth in Section 501.

 

“Excess Proceeds” has the meaning set forth in Section 1017.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated
thereunder.

 

“Exchange Notes” has the meaning stated in the first recital of
this Indenture and refers to any Exchange Notes containing terms substantially
identical to the Initial Notes (except that (i) such Exchange Notes shall not
contain terms with respect to transfer restrictions and shall be registered
under the Securities Act, and (ii) certain provisions relating to the payment
of Liquidated Damages thereon shall be eliminated) that are issued and
exchanged for the Initial Notes in accordance with the Exchange Offer or
otherwise registered under the Securities Act, as provided for in the
Registration Rights Agreement and this Indenture.

 

“Exchange Offer” means the offer by the Company to the Holders
of the Initial Notes to exchange all of the Initial Notes for Exchange Notes,
as provided for in the Registration Rights Agreement.

 

“Exchange
Offer Registration Statement” means the Exchange Offer Registration
Statement as defined in the Registration Rights Agreement.

 

9

 

“Excluded Contributions” means the net cash proceeds received by
the Company after the Issuance Date from (i) contributions to its equity
capital other than contributions from the issuance of Disqualified Stock and
(ii) the sale (other than to a Subsidiary or to any Company or Subsidiary
management equity plan or stock option plan or any other management or employee
benefit plan or agreement) of Capital Stock (other than Disqualified Stock) of
the Company, in each case designated as Excluded Contributions pursuant to an
Officers’ Certificate executed by the principal executive officer and the
principal financial officer of the Company on the date such capital
contributions are made or the date such Equity Interests are sold, as the case
may be, the cash proceeds of which are excluded from the calculation set forth
in clause (C) of paragraph (a) of Section 1009.

 

“Excluded Guarantee” has the meaning set forth in Section 1014.

 

“Existing Indebtedness” means Indebtedness of the Company or its
Restricted Subsidiaries in existence on the Issuance Date, plus interest
accruing thereon, after application of the net proceeds of the sale of the
Original Notes as described in the Offering Memorandum.

 

“Fixed Charge Coverage Ratio” means, with respect to any Person
for any period, the ratio of EBITDA of such Person for such period to the Fixed
Charges of such Person for such period. In the event that the Company or any of
its Restricted Subsidiaries incurs, assumes, guarantees or redeems any
Indebtedness (other than in the case of (i) revolving credit borrowings, in
which case interest expense shall be computed based upon the average daily
balance of such Indebtedness during the applicable period and (ii) capitalized
leases related to imaging or therapeutic systems, in which case imputed
interest expense shall be computed from the date of such capitalized lease) or
issues or redeems preferred stock subsequent to the commencement of the period
for which the Fixed Charge Coverage Ratio is being calculated but prior to the
event for which the calculation of the Fixed Charge Coverage Ratio is made (the
“Calculation Date”), then the Fixed Charge Coverage Ratio shall be
calculated giving pro forma effect to such incurrence, assumption, guarantee or
redemption of Indebtedness, or such issuance or redemption of preferred stock,
plus the application of any proceeds therefrom, as if the same had occurred at
the beginning of the applicable four-quarter period. For purposes of making the
computation referred to above, Investments, acquisitions, dispositions,
mergers, consolidations and discontinued operations (as determined in
accordance with GAAP) that have been made by the Company or any of its
Restricted Subsidiaries during the four-quarter reference period or subsequent
to such reference period and on or prior to or simultaneously with the
Calculation Date shall be calculated on a pro forma basis assuming that all
such Investments, acquisitions, dispositions, discontinued operations, mergers
and consolidations (and the reduction of any associated fixed charge
obligations and the change in EBITDA resulting therefrom) had occurred on the first
day of the four-quarter reference period. 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 Investment, acquisition, disposition, discontinued
operation, merger or consolidation that would have required adjustment pursuant
to this definition, then the Fixed Charge Coverage Ratio shall be calculated
giving pro forma effect thereto for such period as if such Investment,
acquisition, disposition, discontinued operation, merger or consolidation had
occurred at the beginning of the applicable four-quarter period. For purposes
of this definition, whenever pro forma effect is to be given to a transaction,
the pro forma calculations shall be made in good faith by a responsible
financial or

 

10

 

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 Calculation Date had been the
applicable rate for the entire period (taking into account any Hedging
Obligations applicable to such Indebtedness). Interest on a Capitalized Lease
Obligation shall be deemed to accrue at an interest rate reasonably determined
by a responsible financial or accounting officer of the Company to be the rate
of interest implicit in such Capitalized Lease Obligation in accordance with
GAAP. For purposes of making the computation referred to above, interest on any
Indebtedness under a revolving credit facility computed on a pro forma basis
shall be computed based upon the average daily balance of such Indebtedness
during the applicable period. Interest on Indebtedness that may optionally be
determined at an interest rate based upon a factor of a prime or similar rate,
a eurocurrency interbank offered rate, or other rate, shall be deemed to have
been based upon the rate actually chosen, or, if none, then based upon such
optional rate chosen as the Company may designate.

 

“Fixed Charges” means, with respect to any Person for any
period, the sum of (i) Consolidated Interest Expense of such Person for such
period and (ii) all cash dividend payments (excluding items eliminated in
consolidation) on any series of preferred stock of such Person.

 

“GAAP” means generally accepted accounting principles set forth
in the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect on the Issuance Date.

 

“Global Note” has the meaning set forth in Section 201.

 

“Global Note Legend” has the meaning set forth in Section 202.

 

“Government Securities” means securities that are (i) direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America, which, in either
case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depositary receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act), as custodian with respect to any such
Government Securities or a specific payment of principal of or interest on any
such Government Securities held by such custodian for the account of the holder
of such depositary receipt; provided
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the Government Securities or
the specific payment of principal of or interest on the Government Securities
evidenced by such depositary receipt.

 

“guarantee”
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including, without limitation, letters of credit and reimbursement
agreements in respect thereof), of all or any part of any Indebtedness or other
obligations.

 

11

 

“Guarantee” means any guarantee of the obligations of the
Company under this Indenture and the Notes by any Person in accordance with the
provisions of this Indenture. When used as a verb, “Guarantee” shall
have a corresponding meaning. No Guarantees will be issued in connection with
the initial offering and sale of the Notes.

 

“Guarantor” means any Person that incurs a Guarantee; provided that upon the release and
discharge of such Person from its Guarantee in accordance with this Indenture,
such Person shall cease to be a Guarantor. No Guarantees will be issued in
connection with the initial offering and sale of the Notes.

 

“Hedging Obligations” means, with respect to any Person, the
obligations of such Person under (i) currency exchange or interest rate swap
agreements, currency exchange or interest rate cap agreements and currency
exchange or interest rate collar agreements and (ii) other agreements or
arrangements designed to protect such Person against fluctuations in currency
exchange or interest rates.

 

“Holder” means the Person in whose name a Note is registered in
the Note Register.

 

“Indebtedness” means, with respect to any Person, (a) any
indebtedness of such Person, whether or not contingent (i) in respect of
borrowed money, (ii) evidenced by bonds, notes, debentures or similar
instruments or letters of credit or bankers’ acceptances (or, without double
counting, reimbursement agreements in respect thereof), (iii) representing the
balance deferred and unpaid of the purchase price of any property (including
Capitalized Lease Obligations), except any such balance that constitutes a
trade payable or similar obligation to a trade creditor, in each case accrued
in the ordinary course of business or (iv) representing any Hedging
Obligations, if and to the extent of any of the foregoing Indebtedness (other
than letters of credit and Hedging Obligations) that would appear as a
liability upon a balance sheet (excluding the footnotes thereto) of such Person
prepared in accordance with GAAP, (b) to the extent not otherwise included, any
obligation by such Person to be liable for, or to pay, as obligor, guarantor or
otherwise, the Indebtedness of another Person (other than by endorsement of
negotiable instruments for collection in the ordinary course of business) and
(c) to the extent not otherwise included, Indebtedness of another Person
secured by a Lien on any asset owned by such Person (whether or not such
Indebtedness is assumed by such Person); provided, however, that Contingent Obligations
incurred in the ordinary course of business shall be deemed not to constitute
Indebtedness and obligations under or in respect of Receivables Facilities
shall not be deemed to constitute Indebtedness of a Person.

 

“Indenture” means this instrument as originally executed and as
it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof.

 

“Independent Financial Advisor” means an accounting, appraisal,
investment banking firm or consultant to Persons engaged in Similar Businesses
of nationally recognized standing that is, in the judgment of the Company’s
Board of Directors, as evidenced by a Board Resolution, qualified to perform
the task for which it has been engaged; provided
that such firm or consultant is not an Affiliate of the Company.

 

12

 

“Initial Notes” has the meaning specified in the recitals to
this Indenture.

 

“Initial Purchasers” means Deutsche Bank Securities Inc.,
Citigroup Global Markets Inc., Lehman Brothers Inc. and Merrill Lynch, Pierce,
Fenner & Smith Incorporated, as initial purchasers of the Original Notes.

 

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

 

“Investment Grade Securities” means (i) securities issued or
directly and fully guaranteed or insured by the United States government or any
agency or instrumentality thereof (other than Cash Equivalents), (ii) debt
securities or debt instruments with a rating of BBB-or higher by S&P or
Baa3 or higher by Moody’s or the equivalent of such rating by such rating
organization, or, if no rating of S&P or Moody’s then exists, the
equivalent of such rating by any other nationally recognized securities rating
agency, but excluding any debt securities or instruments constituting loans or
advances among the Company and its Subsidiaries, and (iii) investments in any
fund that invests exclusively in investments of the type described in clauses
(i) and (ii) which fund may also hold immaterial amounts of cash pending
investment and/or distribution.

 

“Investments” means, with respect to any Person, all investments
by such Person in other Persons (including Affiliates) in the form of loans
(including guarantees), advances or capital contributions (excluding advances
to customers, commission, travel and similar advances to officers and employees
made in the ordinary course of business), purchases or other acquisitions for
consideration of Indebtedness, Equity Interests or other securities issued by
any other Person and investments that are required by GAAP to be classified on
the balance sheet (excluding the footnotes thereto) of the Company in the same
manner as the other investments included in this definition to the extent such
transactions involve the transfer of cash or other property. For purposes of
the definition of “Unrestricted Subsidiary” and Section 1009 hereof, (i)
“Investments” shall include the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the fair market value of the net assets of a
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 (x) the Company’s “Investment” in such
Subsidiary at the time of such redesignation less (y) 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 (ii) 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.

 

“Issuance Date” means December 29, 2004, the closing date for
the sale and issuance of the Original Notes under this Indenture.

 

“KKR” means Kohlberg Kravis Roberts & Co. L.P, a Delaware
limited partnership.

 

13

 

“Legal Defeasance” has the meaning set forth in Section 1202.

 

“Lien” means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law (including any conditional sale or other title retention agreement, any
lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of or agreement to give any financing
statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction); provided that in
no event shall an operating lease be deemed to constitute a Lien.

 

“Liquidated Damages” means all Liquidated Damages then owing
pursuant to Section 5 of the Registration Rights Agreement.

 

“Management Group” means the group consisting of the Officers of
the Company.

 

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

 

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

 

“Net Income” means, with respect to any Person, the net income
(loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends.

 

“Net Proceeds” means the aggregate cash proceeds received by the
Company or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any Designated Noncash Consideration received in any Asset
Sale), net of the direct costs relating to such Asset Sale and the sale or
disposition of such Designated Noncash Consideration (including, without
limitation, legal, accounting and investment banking fees, and brokerage and
sales commissions), and any relocation expenses incurred as a result thereof,
taxes paid or payable as a result thereof (after taking into account any
available tax credits or deductions and any tax sharing arrangements related
thereto), amounts required to be applied to the repayment of principal, premium
(if any) and interest on Indebtedness required (other than required by clause
(i) of paragraph (b) of Section 1017) to be paid as a result of such
transaction and any deduction of appropriate amounts to be provided by the
Company as a reserve in accordance with GAAP against any liabilities associated
with the asset disposed of in such transaction and retained by the Company
after such sale or other disposition thereof, including, without limitation,
pension and other post-employment benefit liabilities and liabilities related
to environmental matters or against any indemnification obligations associated
with such transaction.

 

“Non-Payment Default” has the meaning set forth in Section 1303.

 

“Note Register” and “Note Registrar” have the respective
meanings specified in Section 305.

 

14

 

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

 

“Obligations” means any principal, interest, penalties, fees,
indemnifications, reimbursements (including, without limitation, reimbursement
obligations with respect to letters of credit and banker’s acceptances),
damages and other liabilities payable under the documentation governing any
Indebtedness.

 

“Offer Period” means the period from the date of a Change of
Control until and including the Change of Control Payment Date.

 

“Offered Price” has the meaning set forth in Section 1017.

 

“Offering Memorandum” means the Offering Memorandum dated
December 9, 2004, relating to the Original Notes.

 

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

 

“Officers’ Certificate” means a certificate signed on behalf of
the Company by two officers of the Company, one of whom must be the principal
executive officer, the principal financial officer, the treasurer or the
principal accounting officer of the Company that meets the requirements set
forth in Section 102.

 

“Offshore Global Note” has the meaning set forth in Section 201.

 

“Opinion of Counsel” means a written opinion of counsel
complying with the requirements of Section 102. Unless otherwise required by
the TIA, such legal counsel may be an employee of or counsel to the Company who
shall be acceptable to the Trustee.

 

“Original Notes” has
the meaning set forth in the recitals to this Indenture.

 

“Outstanding,” when used with respect to Notes, means, as of the
date of determination, all Notes theretofore authenticated and delivered under
this Indenture, except:

 

(i)                                     Notes theretofore cancelled by the Trustee or delivered to
the Trustee for cancellation;

 

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

 

15

 

(iii)                                   Notes, except to the extent provided in
Sections 1202 and 1203, with respect to which the Company has effected
defeasance and/or covenant defeasance as provided in Article Twelve; and

 

(iv)                                  Notes in exchange for or in lieu of which
other Notes (including pursuant to Section 310) have been authenticated and
delivered pursuant to this Indenture, other than any such Notes in respect of
which there shall have been presented to the Trustee proof satisfactory to it
that such Notes are held by a bona fide purchaser in whose hands the Notes are
valid obligations of the Company;

 

provided, however, that in
determining whether the Holders of the requisite principal amount of
Outstanding Notes have given any request, demand, authorization, direction,
consent, notice or waiver hereunder, and for the purpose of making the
calculations required by TIA Section 316, Notes owned by the Company or any
other obligor upon the Notes or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding (provided, that in connection with any
offer by the Company or any obligor to purchase the Notes, Notes tendered for
purchase will be deemed to be Outstanding and held by the tendering Holder
until the date of purchase), except that, in determining whether the Trustee
shall be protected in making such calculation or in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Notes which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded. Notes so owned which have been pledged in good faith
may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Trustee the pledgee’s right so to act with respect to such Notes and
that the pledgee is not the Company or any other obligor upon the Notes or any
Affiliate of the Company or such other obligor.

 

“Pari Passu Indebtedness” means (i) with respect to the Notes,
Indebtedness which ranks pari passu in
right of payment to the Notes and (ii) with respect to any Guarantee,
Indebtedness which ranks pari passu in
right of payment to such Guarantee.

 

“Paying Agent” means any Person (including the Company acting as
Paying Agent) authorized by the Company to pay the principal of (and premium,
if any) or interest on any Notes on behalf of the Company.

 

“Payment Blockage Notice”
has the meaning set forth in Section 1303.

 

“Payment Blockage Period”
has the meaning set forth in Section 1303.

 

“Payment Default” has
the meaning set forth in Section 1303.

 

“Permitted Holders” means KKR and any of its Affiliates and the
Management Group.

 

“Permitted Investments” means (a) any Investment in the Company
or any Restricted Subsidiary; (b) any Investment in cash and Cash Equivalents
or Investment Grade Securities; (c) any Investment by the Company or any
Restricted Subsidiary of the Company in a Person that is a Similar Business if
as a result of such Investment (i) such Person becomes a Restricted Subsidiary
or (ii) such Person, in one transaction or a series of related transactions, is
merged, consolidated or amalgamated with or into, or transfers or conveys
substantially all of its

 

16

 

assets
to, or is liquidated into, the Company or a Restricted Subsidiary; (d) any
Investment in securities or other assets not constituting Cash Equivalents and
received in connection with an Asset Sale made pursuant to the provisions of
Section 1017 hereof or any other disposition of assets not constituting an
Asset Sale; (e) any Investment existing on the Issuance Date; (f) advances to
employees not in excess of $10.0 million outstanding at any one time, in the
aggregate; (g) any Investment acquired by the Company or any of its Restricted
Subsidiaries (i) 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, (ii) 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 or (iii) in connection with a transaction or
series of transactions in which the Person that owns the Investment becomes a
Restricted Subsidiary or is merged, consolidated or amalgamated with or into,
or transfers or conveys substantially all of its assets to, or is liquidated
into the Company or a Restricted Subsidiary; provided
that such Investment was not made in contemplation of such transaction or
series of transactions ; (h) Hedging Obligations permitted under clause (x) of
paragraph (b) of Section 1010; (i) loans and advances to officers, directors
and employees for business- related travel expenses, moving expenses and other
similar expenses, in each case incurred in the ordinary course of business; (j)
any Investment in a Similar Business having an aggregate fair market value,
taken together with all other Investments made pursuant to this clause (j) that
are at that time outstanding, not to exceed the greater of (x) $50.0 million or
(y) 15% of Total Assets at the time of such Investment (with the fair market
value of each Investment being measured at the time made and without giving
effect to subsequent changes in value); (k) Investments the payment for which
consists of Equity Interests of the Company (exclusive of Disqualified Stock); provided, however,
that such Equity Interests will not increase the amount available for Restricted
Payments under clause (C) of Section 1009(a) hereof; (l) additional Investments
having an aggregate fair market value, taken together with all other
Investments made pursuant to this clause (l) that are at that time outstanding,
not to exceed the greater of (x) $30.0 million or (y) 10% of Total Assets at
the time of such Investment (with the fair market value of each Investment
being measured at the time made and without giving effect to subsequent changes
in value); (m) any transaction to the extent it constitutes an investment that
is permitted by and made in accordance with the provisions of Section 1012(b)
hereof (except transactions described in clauses (ii) and (vi) of such
paragraph); and (n) Investments relating to any special purpose Wholly Owned
Subsidiary of the Company organized in connection with a Receivables Facility
that, in the good faith determination of the Board of Directors of the Company,
are necessary or advisable to effect such Receivables Facility.

 

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

 

“Physical Notes” means Notes issued in definitive, certificated
form.

 

“Predecessor Note” of any particular Note means every previous
Note evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purposes of this definition, any Note
authenticated and delivered under Section 310 in exchange for a

 

17

 

mutilated
security or in lieu of a lost, destroyed or stolen Note shall be deemed to
evidence the same debt as the mutilated, lost, destroyed or stolen Note.

 

“Preferred Stock” means any Equity Interest with preferential
right of payment of dividends or upon liquidation, dissolution, or winding up.

 

“Private Placement Legend” has the meaning set forth in Section
202.

 

“Purchase Agreement” means (a) the Purchase Agreement dated
December 9, 2004, among the Company and the Initial Purchasers relating to the
Original Notes and (b) any other similar Purchase Agreement relating to
Additional Notes.

 

“QIB” means a “qualified institutional buyer” (as defined in
Rule 144A under the Securities Act).

 

“Receivables Facility” means one or more receivables financing
facilities, as amended from time to time, pursuant to which the Company and/or
any of its Restricted Subsidiaries sells its accounts receivable to a Person
that is not a Restricted Subsidiary.

 

“Receivables Fees” means distributions or payments made directly
or by means of discounts with respect to any participation interests issued or
sold in connection with, and other fees paid to a Person that is not a
Restricted Subsidiary in connection with, any Receivables Facility.

 

“Redemption Date,” when used with respect to any Note to be
redeemed, in whole or in part, means the date fixed for such redemption by or
pursuant to this Indenture.

 

“Redemption Price,” when used with respect to any Note to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.

 

“Registration Default” has the meaning specified in the second
paragraph of Section 204.

 

“Registration Rights Agreement” means the Registration Rights
Agreement, dated as of December 29, 2004, among the Company and the Initial
Purchasers.

 

“Regular Record Date” for the interest payable on any Interest
Payment Date means the June 1 or December 1 (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date.

 

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

 

“Related Parties” means any Person controlled by a Permitted
Holder, including any partnership of which a Permitted Holder or its Affiliates
is the general partner.

 

“Representative” means (i) with respect to the Credit Facility,
the Bank Agent and (ii) with respect to any other Senior Indebtedness, the
indenture trustee or other trustee, agent or representative for the holders of
such Senior Indebtedness.

 

18

 

“Repurchase Offer” means an offer made by the Company to
purchase all or any portion of a Holder’s Notes pursuant to Sections 1016 and
1017 herein.

 

“Resale Restriction Termination Date” has the meaning set forth
in Section 307.

 

“Responsible Officer,” when used with respect to the Trustee,
means any vice president, the secretary, any assistant secretary, the
treasurer, any assistant treasurer, the cashier, any trust officer or assistant
trust officer, the controller or any assistant controller or any other officer
of the Trustee customarily performing functions similar to those performed by
any of the above-designated officers, and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is
referred because of his knowledge of and familiarity with the particular
subject.

 

“Restricted Investment” means an Investment other than a
Permitted Investment.

 

“Restricted Period,” with respect to any Notes, means the period
of 40 consecutive days beginning on and including the later of (a) the day on
which such Notes are first offered to persons other than distributors (as
defined in Regulation S) in reliance on Regulation S, notice of which day shall
be promptly given by the Company to the Trustee, and (b) the Issuance Date, and
with respect to any Additional Notes that are Transfer Restricted Notes, it
means the comparable period of 40 consecutive days.

 

“Restricted Subsidiary” means, at any time, any direct or
indirect Subsidiary of the Company that is not then an Unrestricted Subsidiary;
provided, however,
that upon the occurrence of an Unrestricted Subsidiary ceasing to be an
Unrestricted Subsidiary, such Subsidiary shall be included in the definition of
“Restricted Subsidiary.”

 

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

 

“Rule 501” means Rule 501(a)(1), (2), (3) or (7) under the
Securities Act.

 

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

 

“Securities Act” means the Securities Act of 1933, as amended,
and the rules and regulations of the Commission promulgated thereunder.

 

“Senior Indebtedness” means (i) the Obligations under the Credit
Facility and (ii) any other Indebtedness permitted to be incurred by the
Company under the terms of this Indenture, unless the instrument under which
such Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Notes, including, with respect to (i)
and (ii), interest accruing subsequent to the filing of, or which would have
accrued but for the filing of, a petition for bankruptcy, whether or not such
interest is an allowable claim in such bankruptcy proceeding. Notwithstanding
anything to the contrary in the foregoing, Senior Indebtedness will not include
(1) any liability for federal, state, local or other taxes owed or owing by the
Company, (2) any obligation of the Company to any of its Subsidiaries, (3) any
accounts payable or trade liabilities arising in the ordinary course of
business (including instruments evidencing such liabilities) other than
obligations in respect of bankers’ acceptances and letters of

 

19

 

credit under the Credit Facility, (4) any Indebtedness that
is incurred in violation of this Indenture, (5) Indebtedness which, when
incurred and without respect to any election under Section 1111(b) of Title 11,
United States Code, is without recourse to the Company, (6) any Indebtedness,
guarantee or obligation of the Company which is subordinate or junior to any
other Indebtedness, guarantee or obligation of the Company, (7) Indebtedness
evidenced by the Notes and (8) Capital Stock of the Company.

 

“Shelf Registration Statement” means the Shelf Registration
Statement as defined in the Registration Rights Agreement.

 

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

 

“Similar Business” means a business the majority of whose
revenues are derived from the provision of diagnostic or therapeutic services
or any business or activity that is reasonably similar thereto or a reasonable
extension, development or expansion thereof or ancillary thereto as determined
in good faith by the Board of Directors of the Company.

 

“Special Record Date” has the meaning specified in Section 311.

 

“Stated Maturity” when used with respect to any Note or any
installment of interest thereon, means the date specified in such Note as the
fixed date on which the principal of such Note or such installment of interest
is due and payable, and, when used with respect to any other Indebtedness,
means the date specified in the instrument governing such Indebtedness as the
fixed date on which the principal of such Indebtedness, or any installment of
interest thereon, is due and payable.

 

“Subordinated Indebtedness” means (a) with respect to the Notes,
any Indebtedness of the Company which is by its terms subordinated in right of
payment to the Notes and (b) with respect to any Guarantee, any Indebtedness of
the applicable Guarantor which is by its terms subordinated in right of payment
to such Guarantee.

 

“Subordinated Note Obligations” means any principal of, premium,
if any, and interest on the notes payable pursuant to the terms of the Notes or
upon acceleration, together with and including any amounts received upon the
exercise of rights of rescission or other rights of action (including claims
for damages) or otherwise, to the extent relating to the purchase price of the
Notes or amounts corresponding to such principal, premium, if any, or interest
on the Notes.

 

“Subsidiary” means, with respect to any Person, (i) any corporation,
association, or other business entity (other than a partnership) of which more
than 50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof and (ii) any
partnership, joint venture, limited liability company or similar entity of
which (x) more than 50% of the capital accounts, distribution rights, total
equity and voting interests or general or limited partnership interests, as
applicable, are owned or controlled, directly or indirectly, by such Person or
one or more of the other Subsidiaries

 

20

 

of that Person
or a combination thereof whether in the form of membership, general, special or
limited partnership or otherwise and (y) such Person or any Wholly Owned
Restricted Subsidiary of such Person is a controlling general partner or
otherwise controls such entity.

 

“Successor Company”
has the meaning set forth in Section 801.

 

“Successor Guarantor” has the meaning set forth in Section 801.

 

“Total Assets” means the total consolidated assets of the
Company and its Restricted Subsidiaries, as shown on the most recent balance
sheet (excluding the footnotes thereto) of the Company.

 

“Transfer Restricted Securities” means Definitive Notes and any
other Notes that bear or are required to bear or are subject to the Private
Placement Legend.

 

“Treasury Rate” means, as of any Redemption Date, the yield to
maturity as of such Redemption Date of United States Treasury securities with a
constant maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15(519) that has become publicly available at least two
Business Days prior to the Redemption Date (or, if such Statistical Release is
no longer published, any publicly available source of similar market data))
most nearly equal to the period from the Redemption Date to December 15, 2007; provided,
however, that if the period from the Redemption Date to December 15,
2007 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

 

“Trust Indenture Act” or “TIA” means the Trust Indenture
Act of 1939, as amended and as in force on the date as of which this Indenture
was executed, except as provided in Section 905.

 

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

 

“Unrestricted Subsidiary” means (i) any Subsidiary of the
Company which at the time of determination is an Unrestricted Subsidiary (as
designated by the Board of Directors of the Company, as provided below); (ii)
any Subsidiary of an Unrestricted Subsidiary; and (iii) each of (A)
Alliance Imaging Financial Services, Inc., (B) Alliance-Newport Harbor
Radiology Group PET Services LLC, (C) Valley Imaging Partnership-Alliance PET
Services LLC, (D) Alliance Diagnostics Venture, LLC, (E) New England Molecular
Imaging LLC, (F) Rhode Island PET Services, LLC, (G) Advanced Imaging of
Lafayette, LLC, (H) Los Alamitos Imaging Center LLC and (I) Santa Clarita
Valley Imaging Center LLC. The Board of Directors of the Company may designate
any Subsidiary of the Company (including any existing Subsidiary and any newly
acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless
such Subsidiary or any of its Subsidiaries owns any Equity Interests of, or
owns, or holds any Lien on, any property of, the Company or any Subsidiary of
the Company (other than any Subsidiary of the Subsidiary to be so designated); provided that (a) any Unrestricted
Subsidiary must be an entity of which shares of the capital stock or other
equity interests (including partnership interests) entitled to cast at least a
majority of the votes that may be cast by all shares or equity interests

 

21

 

having ordinary voting power
for the election of directors or other governing body are owned, directly or
indirectly, by the Company, (b) the Company certifies that such designation
complies with Section 1009 hereof and (c) each of (I) the Subsidiary to be so
designated and (II) its Subsidiaries has not at the time of designation, and
does not thereafter, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable with respect to any Indebtedness pursuant
to which the lender has recourse to any of the assets of the Company or any of
its Restricted Subsidiaries. The Board of Directors may designate any
Unrestricted Subsidiary (including any Unrestricted Subsidiary set forth in
clause (iii) of this definition) to be a Restricted Subsidiary; provided that, immediately after giving
effect to such designation, (x) the Company could incur at least $1.00 of
additional Indebtedness under paragraph (a) of Section 1010 or (y) the Fixed
Charge Coverage Ratio for the Company and its Restricted Subsidiaries would be
greater than such ratio for the Company and its Restricted Subsidiaries
immediately prior to such designation, in each case on a pro forma basis taking
into account such designation. Any such designation by the Board of Directors
shall be notified by the Company to the Trustee by promptly filing with the Trustee
a copy of the board resolution giving effect to such designation and an
Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

 

“U.S. Global Note” has the meaning set forth in Section 201.

 

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

 

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

 

“Weighted Average Life to Maturity” means, when applied to any
Indebtedness or Disqualified Stock, as the case may be, at any date, the
quotient obtained by dividing (i) the sum of the products of the number of
years from the date of determination to the date of each successive scheduled
principal payment of such Indebtedness or redemption or similar payment with
respect to such Disqualified Stock multiplied by the amount of such payment, by
(ii) the sum of all such payments.

 

“Wholly Owned Restricted Subsidiary” is any Wholly Owned
Subsidiary that is a Restricted Subsidiary.

 

“Wholly Owned Subsidiary” of any Person means a Subsidiary of
such Person 100% of the outstanding Capital Stock or other ownership interests
of which (other than directors’ qualifying shares) shall at the time be owned
by such Person or by one or more Wholly Owned Subsidiaries of such Person and
one or more Wholly Owned Subsidiaries of such Person.

 

Section 102.                            Compliance Certificates and
Opinions. Upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company and any Guarantor (if applicable)
and any other obligor on the Notes (if applicable) shall furnish to the Trustee
an Officers’ Certificate in form and substance reasonably acceptable to the
Trustee stating that all conditions precedent, if any, provided for in this
Indenture

 

22

 

(including
any covenant compliance with which constitutes a condition precedent) relating
to the proposed action have been complied with and an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that in the case of any such application
or request as to which the furnishing of an Officers’ Certificate and an
Opinion of Counsel is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate
or opinion need be furnished. Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture
(including without limitation certificates provided pursuant to Section
1018(a)) shall include:

 

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

 

(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 each such individual or
such firm, he or it has made such examination or investigation as is necessary
to enable him or it 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, in the opinion of each such
individual, such condition or covenant has been complied with.

 

Section 103.                            Form of Documents Delivered
to Trustee. In any case
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

 

Any
certificate or opinion of an officer of the Company, any Guarantor or other
obligor on the Notes may be based, insofar as it relates to legal matters, upon
a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon
which his certificate or opinion is based are erroneous. Any such certificate
or Opinion of Counsel may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an officer or officers
of the Company, any Guarantor or other obligor on the Notes stating that the information
with respect to such factual matters is in the possession of the Company, any
Guarantor or other obligor on the Notes unless such counsel knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous. Where any Person is
required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

 

23

 

Section 104.                            Acts of Holders.

 

(a)                                  Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agents duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are received
by a Responsible Officer of the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and conclusive in favor
of the Trustee and the Company, if made in the manner provided in this
Section 104.

 

(a)                                  The fact and date of the execution by any Person of any such
instrument or writing may be proved in any reasonable manner that the Trustee
deems sufficient.

 

(b)                                 The principal amount of Notes held by any Person, and the
date of holding the same, shall be proved by the Note Register.

 

(c)                                  If the Company shall solicit from the Holders of Notes any
request, demand, authorization, direction, notice, consent, waiver or other
Act, the Company may, at its option, by or pursuant to a Board Resolution, fix
in advance a record date for the determination of Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other
Act, but the Company shall have no obligation to do so. Notwithstanding TIA
Section 316(c), such record date shall be the record date specified in or
pursuant to such Board Resolution, which shall be a date not earlier than the
date 30 days prior to the first solicitation of Holders generally in connection
therewith and not later than the date such solicitation is completed. If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of business on such record date shall be
deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Outstanding Notes have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for that purpose the Outstanding Notes shall be
computed as of such record date; provided
that no such authorization, agreement or consent by the Holders on such record
date shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

 

(d)                                 Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Note shall bind every future
Holder of the same Note and the Holder of every Note issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof
(including in accordance with Section 310) in respect of anything done,
omitted or suffered to be done by the Trustee, any Paying Agent or the Company
or any Guarantor in reliance thereon, whether or not notation of such action is
made upon such Note.

 

Section 105.                            Notices, etc., to Trustee,
the Company and Any Guarantor.
Any request, demand, authorization, direction, notice, consent, waiver or Act
of Holders or other

 

24

 

document provided or
permitted by this Indenture to be made upon, given or furnished to, or filed
with, (1) the Trustee by any Holder or by the Company or any Guarantor or any
other obligor on the Notes shall be sufficient for every purpose hereunder if
made, given, furnished or delivered in writing and mailed, first-class postage
prepaid, or delivered by recognized overnight courier, to or with the Trustee
and received at its Corporate Trust Office, Attention: Corporate Trust
Administration - Alliance Imaging, Inc., or (2) the Company or any Guarantor by
the Trustee or by any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if made, given, furnished or
delivered, in writing, or mailed, first-class postage prepaid, or delivered by
recognized overnight courier, to the Company or such Guarantor addressed to it
at the address of its principal office specified in the first paragraph of this
Indenture, or at any other address previously furnished in writing to the
Trustee by the Company or such Guarantor.

 

Section 106.                            Notice to Holders; Waiver. Where this Indenture provides for notice of
any event to Holders by the Company or the Trustee, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to each Holder affected by such event,
at his address as it appears in the Note Register, not later than the latest
date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Any notice mailed to a Holder in the manner herein prescribed
shall be conclusively deemed to have been received by such Holder, whether or
not such Holder actually receives such notice. Where this Indenture provides
for notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver. In
case by reason of the suspension of or irregularities in regular mail service
or by reason of any other cause, it shall be impracticable to mail notice of
any event to Holders when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be
satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice for every purpose hereunder.

 

Section 107.                            Effect of Headings and Table
of Contents. The
Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

 

Section 108.                            Successors and Assigns. All covenants and agreements in this
Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

 

Section 109.                            Separability Clause. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

Section 110.                            Benefits of Indenture. Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, (other than the parties hereto,
any Agent and their successors hereunder and each of the Holders and, with
respect to any provisions hereof

 

25

 

relating to the subordination of the Notes or the
rights of holders of Senior Indebtedness, the holders of Senior Indebtedness)
any benefit or any legal or equitable right, remedy or claim under this
Indenture.

 

Section 111.                            Governing Law. THIS INDENTURE AND THE NOTES SHALL BE
GOVERNED BY THE LAW OF THE STATE OF NEW YORK EXCLUDING (TO THE GREATEST EXTENT
PERMISSIBLE BY LAW) ANY RULE OF LAW THAT WOULD CAUSE THE APPLICATION OF THE
LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK. UPON THE ISSUANCE OF
THE EXCHANGE NOTES OR THE EFFECTIVENESS OF THE SHELF REGISTRATION STATEMENT,
THIS INDENTURE SHALL BE SUBJECT TO THE PROVISIONS OF THE TRUST INDENTURE ACT
THAT ARE REQUIRED TO BE PART OF THIS INDENTURE AND SHALL, TO THE EXTENT
APPLICABLE, BE GOVERNED BY SUCH PROVISIONS.

 

Section 112.                            Legal Holidays. In any case where any Interest Payment
Date, any date established for payment of Defaulted Interest pursuant to
Section 311 or Redemption Date or Stated Maturity or Maturity of any Note
shall not be a Business Day, then (notwithstanding any other provision of this
Indenture or of the Notes) payment of principal (or premium, if any) or
interest need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the Interest Payment Date
or date established for payment of Defaulted Interest pursuant to
Section 311, Redemption Date, or at the Stated Maturity or Maturity; provided that no interest shall accrue for
the period from and after such Interest Payment Date, Redemption Date or date
established for payment of Defaulted Interest pursuant to Section 311,
Stated Maturity or Maturity, as the case may be, to the next succeeding
Business Day.

 

Section 113.                            No Personal Liability of
Directors, Officers, Employees, Stockholders or Incorporators. No director, officer, employee,
incorporator or stockholder of the Company or any Guarantor shall have any
liability for any obligations of the Company or such Guarantor under the Notes,
this Indenture or any Guarantee or for any claim based on, in respect of, or by
reason of such obligations or their creation. Each Holder by accepting a Note
waives and releases all such liability. Such waiver and release are part of the
consideration for the issuance of the Notes.

 

Section 114.                            Counterparts. This Indenture may be executed in any
number of counterparts, each of which shall be original; but such counterparts
shall together constitute but one and the same instrument.

 

Section 115.                            Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies or conflicts with another provision that is required or deemed to be
included in this Indenture by the TIA, such required or deemed provision shall
control.

 

26

 

ARTICLE TWO

 

NOTE FORMS

 

Section 201.                            Forms Generally. The Initial Notes shall be known as the
“71⁄4% Senior Subordinated Notes due 2012” and the Exchange Notes shall be known
as the “71⁄4% Series B Senior Subordinated Notes due 2012,” in each case, of the
Company. The Notes and the Trustee’s certificate of authentication shall be in
substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes. Any portion of the text of any Note
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Note. Each Note shall be dated the date of its
authentication.

 

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

 

The Initial Notes issued on the date hereof
will be (i) offered and sold by the Company pursuant to the Purchase Agreement
and (ii) resold initially only to (1) QIBs in reliance on Rule 144A and (2)
Persons other than U.S. Persons (as defined in Regulation S) in reliance on
Regulation S.  Such Initial Notes may
thereafter be transferred to, among others, QIBs, purchasers in reliance on
Regulation S and, except as set forth below, Accredited Investors in accordance
with Rule 501.  Additional Notes offered
after the date hereof may be offered and sold by the Company from time to time
pursuant to one or more Purchase Agreements in accordance with applicable law.

 

The Notes shall be issued initially in the
form of two or more permanent Global Notes (the “Global Notes”). Notes
offered and sold (i) in reliance on Rule 144A shall be issued initially in the
form of one or more permanent Global Notes in registered form, substantially in
the form set forth in Article Two hereof (the “U.S. Global Note”)
and (ii) in offshore transactions in reliance on Regulation S shall be issued
initially in the form of one or more permanent Global Notes in registered form,
substantially in the form set forth in Article Two hereof (the “Offshore
Global Note”), and in each case shall be deposited with the Trustee, as
custodian for the Depositary, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. The aggregate principal amount of any
Global Note may from time to time be increased or decreased by adjustments made
on the records of the Trustee, as custodian for the Depositary, as hereinafter
provided. The Global Notes shall bear the Global Note Legend.  The Global Notes initially shall (i) be
registered in the name of the Depositary or the nominee of such Depositary, in
each case for credit to an account of an Agent Member, (ii) be delivered to the
Trustee as custodian for such Depositary and (iii) bear the Private Placement
Legend.

 

Section 202.                            Restrictive Legends. Unless and until (i) an Initial Note is
sold under an effective Registration Statement or (ii) an Initial Note is
exchanged for an Exchange Note in connection with an effective Registration
Statement, in each case pursuant to the Registration

 

27

 

Rights Agreement, each such Global Note and Physical
Note shall bear the following legend (the “Private Placement Legend”) on
the face thereof unless otherwise agreed by the Company and the Holder thereof:

 

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

 

28

 

Each Global Note, whether or not an Initial
Note, shall also bear the following legend on the face thereof (the “Global
Note Legend”):

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER REPRESENTATIVE OF DTC AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON 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 SINCE 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 CEDE & CO. 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 SECTIONS 306 AND 307 OF THE INDENTURE.

 

Section 203.                            Form of Certification for
Transfer or Exchange of Notes.

 

CERTIFICATE TO BE DELIVERED
UPON EXCHANGE OR REGISTRATION OF TRANSFER OF NOTES

 

Re:                               Alliance
Imaging, Inc. (the “Company”)

71⁄4% Senior Subordinated Notes due 2012 (the
“Notes”)

 

This Certificate relates to
$              
principal amount of Notes held in the form of*
           a beneficial
interest in a Global Note or*
              Physical
Notes by            (the
“Transferor”).

 

The Transferor:

 

o                                    has requested by written order that the Note Registrar
deliver in exchange for its beneficial interest in the Global Note held by the
Depositary a Physical Note or Physical Notes in definitive, registered form of
authorized denominations and an aggregate number equal to its beneficial
interest in such Global Note (or the portion thereof indicated above); or

 

o                                    has requested by written order that the Note Registrar
exchange or register the transfer of a Physical Note or Physical Notes.

 

In connection
with such request and in respect of each such Note, the Transferor does hereby
certify that the Transferor is familiar with the Indenture relating to the
above captioned Notes and the restrictions on transfers thereof as provided in
Section 307 of such Indenture, and that the transfer of the Notes does not
require registration under the Securities Act of 1933, as amended (the “Securities
Act”), because*:

 

29

 

o                                    Such Note is being acquired for the Transferor’s own account,
without transfer (in satisfaction of Section 307 of the Indenture).

 

o                                    Such Note is being transferred to a “qualified institutional
buyer” (as defined in Rule 144A under the Securities Act), in reliance on Rule
144A.

 

o                                    Such Note is being transferred to an institutional
“accredited investor” (within the meaning of subparagraph (a)(1), (2), (3) or
(7) of Rule 501 under the Securities Act) which delivers a certificate to the
Trustee in the form provided in Section 308 of the Indenture.

 

o                                    Such Note is being transferred in reliance on Regulation S
under the Securities Act and a transfer certificate for Regulation S transfers
in the form provided in Section 309 to the Indenture accompanies this
certification. [An Opinion of Counsel to the effect that such transfer does not
require registration under the Securities Act accompanies this certification.]

 

o                                    Such Note is being transferred in reliance on Rule 144 under
the Securities Act. [An Opinion of Counsel to the effect that such transfer
does not require registration under the Securities Act accompanies this
certification.]

 

o                                    Such Note is being transferred in reliance on and in
compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144A or Rule 144 under the Securities Act to a
person other than an institutional “accredited investor.” [An Opinion of
Counsel to the effect that such transfer does not require registration under
the Securities Act accompanies this certification.]

 

You and the Company are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceedings or
official inquiry with respect to the matters covered hereby. Capitalized terms
used in this certificate and not otherwise defined herein have the meanings
assigned thereto in the Indenture.

 

	
   

  	
   

  
	
   

  	
  [INSERT NAME OF
  TRANSFEROR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  [Authorized
  Signatory]

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
  *Check applicable box.

  	
   

  
					

 

Section 204.                            Form of Face of Note.

 

	
  ALLIANCE IMAGING, INC.

  	
   

  
	
  71⁄4% Senior Subordinated
  Note due 2012

  	
   

  
	
  CUSIP No.
  [            ]

  	
   

  
	
  ISIN No.
  [              ]
  

  	
  NO.

  	
   

  
	
  $                              

  	
   

  	
   

  

 

ALLIANCE IMAGING, INC., a Delaware
corporation (herein called the “Company,” which term includes any
successor Person under the Indenture hereinafter referred to), for

 

30

 

value received, hereby promises to pay to Cede &
Co. or registered assigns, the principal sum of
$                  U.S.
dollars on December 15, 2012, at the office or agency of the Company
referred to below, and to pay interest thereon on June 15, 2005, and
semi-annually thereafter, on December 15 and June 15 in each year,
from December 29, 2004,(a) or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, at the rate of 71⁄4% per
annum, until the principal hereof is paid or duly provided for, and (to the
extent lawful) to pay on demand interest on any overdue interest at the rate
borne by the Notes from the date on which such overdue interest becomes payable
to the date payment of such interest has been made or duly provided for. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the December 1 or June 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date, and such defaulted interest, and (to the
extent lawful) interest on such defaulted interest at the rate borne by the
Notes, may be paid to the Person in whose name this Note (or one or more
Predecessor Notes) is registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Notes not less than 10 days prior
to such Special Record Date, or may be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on
which the Notes may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture.

 

[THE HOLDER OF THIS NOTE IS ENTITLED TO THE
BENEFITS OF THE REGISTRATION RIGHTS AGREEMENT, DATED AS OF DECEMBER 29,
2004 (THE “REGISTRATION RIGHTS AGREEMENT”), BETWEEN THE COMPANY AND THE
INITIAL PURCHASERS NAMED THEREIN. THE REGISTRATION RIGHTS AGREEMENT WILL
PROVIDE THAT (i) THE COMPANY WILL FILE AN EXCHANGE OFFER REGISTRATION STATEMENT
(AS DEFINED IN THE REGISTRATION RIGHTS AGREEMENT) WITH THE COMMISSION ON OR
PRIOR TO 120 DAYS AFTER THE DATE OF ORIGINAL ISSUE OF THE NOTES, (ii) THE
COMPANY WILL USE ITS COMMERCIALLY REASONABLE EFFORTS TO HAVE THE EXCHANGE OFFER
REGISTRATION STATEMENT DECLARED EFFECTIVE BY THE COMMISSION ON OR PRIOR TO 200
DAYS AFTER THE DATE OF ORIGINAL ISSUANCE OF THE NOTES, (iii) UNLESS THE
EXCHANGE OFFER (AS DEFINED IN THE REGISTRATION RIGHTS AGREEMENT) WOULD NOT BE
PERMITTED BY APPLICABLE LAW OR COMMISSION POLICY, THE COMPANY WILL COMMENCE THE
EXCHANGE OFFER AND USE ITS COMMERCIALLY REASONABLE EFFORTS TO ISSUE ON OR PRIOR
TO 230 DAYS AFTER THE DATE OF ORIGINAL ISSUANCE OF THE NOTES, EXCHANGE NOTES
(AS DEFINED IN THE REGISTRATION RIGHTS AGREEMENT) IN EXCHANGE FOR ALL NOTES
TENDERED PRIOR THERETO IN THE EXCHANGE OFFER AND (iv) IF OBLIGATED TO

 

(a)                                  In
the case of the Original Notes.

 

31

 

FILE THE SHELF REGISTRATION STATEMENT (AS
DEFINED IN THE REGISTRATION RIGHTS AGREEMENT) THE COMPANY WILL USE ITS BEST
REASONABLE EFFORTS TO FILE THE SHELF REGISTRATION STATEMENT WITH THE COMMISSION
ON OR PRIOR TO 30 DAYS AFTER SUCH FILING OBLIGATION ARISES AND TO CAUSE THE
SHELF REGISTRATION STATEMENT TO BE DECLARED EFFECTIVE BY THE COMMISSION ON OR
PRIOR TO 75 DAYS AFTER SUCH FILING. IF (a) THE COMPANY FAILS TO FILE ANY OF THE
REGISTRATION STATEMENTS REQUIRED BY THE REGISTRATION RIGHTS AGREEMENT ON OR
BEFORE THE DATE SPECIFIED FOR SUCH FILING, (b) ANY OF SUCH REGISTRATION
STATEMENTS IS NOT DECLARED EFFECTIVE BY THE COMMISSION ON OR PRIOR TO THE DATE
SPECIFIED FOR SUCH EFFECTIVENESS (THE “EFFECTIVENESS TARGET DATE”), (c)
THE COMPANY FAILS TO CONSUMMATE THE EXCHANGE OFFER WITHIN 30 BUSINESS DAYS OF
THE EFFECTIVENESS TARGET DATE WITH RESPECT TO THE EXCHANGE OFFER REGISTRATION
STATEMENT OR (d) THE SHELF REGISTRATION STATEMENT OR THE EXCHANGE OFFER
REGISTRATION STATEMENT IS DECLARED EFFECTIVE BUT THEREAFTER CEASES TO BE
EFFECTIVE OR USABLE IN CONNECTION WITH RESALES OF TRANSFER RESTRICTED
SECURITIES (AS DEFINED IN THE REGISTRATION RIGHTS AGREEMENT) DURING THE PERIODS
SPECIFIED IN THE REGISTRATION RIGHTS AGREEMENT (EACH SUCH EVENT REFERRED TO IN
CLAUSES (a) THROUGH (d) ABOVE A “REGISTRATION DEFAULT”), THEN THE
COMPANY WILL PAY LIQUIDATED DAMAGES TO EACH HOLDER OF NOTES. LIQUIDATED DAMAGES
WILL ACCRUE, AT AN ANNUAL RATE OF 0.25% OF THE AGGREGATE PRINCIPAL AMOUNT OF
THE NOTES, ON THE DATE OF SUCH REGISTRATION DEFAULT, PAYABLE IN CASH
SEMI-ANNUALLY IN ARREARS ON EACH INTEREST PAYMENT DATE, COMMENCING ON THE DATE
OF SUCH REGISTRATION DEFAULT. FOLLOWING THE CURE OF ALL REGISTRATION DEFAULTS,
THE ACCRUAL OF LIQUIDATED DAMAGES WILL CEASE.](a)

 

Principal of, premium, if any,
interest and Liquidated Damages, if any, on the Notes will be payable at the
office or agency of the Company maintained for such purpose within the City and
State of New York or at such other office or agency of the Company as may be
maintained for such purpose, or at the option of the Company, payment of
interest may be made by check mailed to the Holders of the Notes at their
respective addresses set forth in the register of Holders of Notes or by wire
transfer to an account maintained by the payee located in the United States; provided that all payments of principal,
premium, interest and Liquidated Damages, if any, with respect to Notes
represented by one or more permanent Global Notes registered in the name of or
held by The Depository Trust Company or its nominee will be made by wire
transfer of immediately available funds to the accounts specified by the
Holders thereof. Until otherwise designated by the Company, the Company’s
office or agency in New York will be the office of the Trustee maintained for such
purpose.

 

(a)                                  Include
only for Initial Notes.

 

32

 

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

 

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

 

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

 

	
   

  	
  ALLIANCE IMAGING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Section 205.                            Form
of Reverse of Note. This Note is one of a duly authorized issue of
securities of the Company designated as its 71⁄4% Senior Subordinated Notes due
2012 (the “Notes”), unlimited (except as otherwise provided in the
Indenture referred to below) in aggregate principal amount, of which $150,000,000
are initially issued, under an indenture (the “Indenture”) dated as of
December 29, 2004 between the Company and Bank of New York Trust Company,
N.A., as trustee (the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties, obligations and immunities thereunder of
the Company, the Trustee and the Holders of the Notes, and of the terms upon
which the Notes are, and are to be, authenticated and delivered.

 

The indebtedness evidenced by the Notes is,
to the extent and in the manner provided in the Indenture, subordinate and
subject in right of payment to the prior payment in full of all Senior
Indebtedness as defined in the Indenture, and this Note is issued subject to
such provisions. Each Holder of this Note, by accepting the same, (a) agrees to
and shall be bound by such provisions, (b) authorizes and directs the Trustee
on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination as provided in the Indenture and (c) appoints the
Trustee his attorney-in-fact for such purpose.

 

On or before each payment date, the Company
shall deliver or cause to be delivered to the Trustee or the Paying Agent an
amount in dollars sufficient to pay the amount due on such payment date.

 

Except as described below, the Notes will not
be redeemable at the Company’s option prior to December 15, 2007. From and
after December 15, 2007, the Notes will be subject to redemption at any
time at the option of the Company, in whole or in part, upon not less than 30
nor more than 60 days’ notice, at the Redemption Prices (expressed as
percentages of principal amount) set forth below, plus accrued and unpaid
interest and Liquidated Damages, if

 

33

 

any, thereon to the applicable redemption date, if
redeemed during the twelve-month period beginning on December 15 of each
of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  103.625

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2008 

  	
   

  	
  101.813

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2009 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition, at any time or from time to
time, on or prior to December 15, 2007, the Company may, at its option,
redeem up to 40% of the aggregate principal amount of Notes issued under the
Indenture at a Redemption Price equal to 107.25% of the aggregate principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages, if
any, thereon to the Redemption Date, with the net proceeds of one or more
Equity Offerings; provided that
at least 60% of the aggregate principal amount of Notes issued under the
Indenture remains outstanding immediately after the occurrence of each such
redemption; provided further that
such redemption shall occur within 60 days of the date of the closing of any
such Equity Offering.

 

If less than all the Notes are to be redeemed
pursuant to the preceding two paragraphs, the Trustee shall select the Notes or
portions thereof to be redeemed in compliance with the requirements of the
principal national securities exchange, if any, on which the Notes being
redeemed are listed, or if the Notes are not so listed, on a pro rata basis, by
lot or by such other method the Trustee shall deem fair and appropriate (and in
such manner as complies with applicable legal requirements); provided that no such Notes of less than
$1,000 shall be redeemed in part.

 

At any time on or prior to December 15,
2007, the Notes may also be redeemed, in whole but not in part, at the option
of the Company upon the occurrence of a Change of Control, upon not less than
30 nor more than 60 days prior notice (but in no event more than 90 days after
the occurrence of such Change of Control or transfer event) mailed by
first-class mail to each Holder’s registered address, at a redemption price
equal to 100% of the principal amount thereof plus the Applicable Premium as
of, and accrued and unpaid interest and Liquidated Damages, if any, 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).

 

In the event of redemption or repurchase of
this Note in part only, a new Note or Notes for the unredeemed portion hereof
shall be issued in the name of the Holder hereof upon the cancellation hereof.

 

Upon the occurrence of a Change of Control,
unless the Company has elected to redeem the Notes in connection with such
Change of Control, the Company will be required to make an offer to purchase all
or any part (equal to $1,000 in principal amount or an integral multiple
thereof) of the Notes at a price in cash equal to 101% of the aggregate
principal amount of the Notes thereof, plus accrued and unpaid interest
thereon, and Liquidated Damages, if any, thereon, if any, to the date of
purchase, in accordance with the Indenture. Holders of Notes that

 

34

 

are subject to an offer to purchase will receive a
notice of the Change of Control Offer from the Company prior to any related
Change of Control Payment Date.

 

Under certain circumstances, in the event the
Net Proceeds received by the Company from an Asset Sale, which proceeds are not
used (i) to permanently reduce Obligations under the Credit Facility (and to
correspondingly reduce commitments with respect thereto) or other Senior
Indebtedness or Pari Passu Indebtedness (provided that if the Company shall so
reduce Obligations under Pari Passu Indebtedness, it will equally and ratably
reduce Obligations under the Notes if the Notes are then prepayable or, if the
Notes may not be then prepaid, the Company shall make an offer (in accordance
with the procedures set forth in the Indenture for an Asset Sale Offer) to all
Holders to purchase at 100% of the principal amount thereof the amount of Notes
that would otherwise be prepaid), (ii) to make an investment in any one or more
businesses, capital expenditures or acquisitions of other assets in each case,
used or useful in a Similar Business and/or (iii) to make an investment in
properties or assets that replace the properties and assets that are the
subject of such Asset Sale, equal or exceed a specified amount, the Company
will be required to make an offer to all Holders to purchase the maximum
principal amount of Notes, in an integral multiple of $1,000, that may be
purchased out of such amount at a purchase price in cash equal to 100% of the
principal amount thereof, plus accrued and unpaid interest and liquidated
damages, if any, to the date of purchase, in accordance with the Indenture.
Holders of Notes that are subject to any offer to purchase will receive an
Asset Sale Offer from the Company prior to any related Asset Sale Purchase
Date.

 

In the case of any redemption or repurchase
of Notes, interest installments whose Stated Maturity is on or prior to the
Redemption Date will be payable to the Holders of such Notes, or one or more
Predecessor Notes, of record at the close of business on the relevant Regular
Record Date or Special Record Date, as the case may be, referred to on the face
hereof. Notes (or portions thereof) for whose redemption and payment provision
is made in accordance with the Indenture shall cease to bear interest from and
after the Redemption Date.

 

If an Event of Default shall occur and be
continuing, the principal of all the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture.

 

The Indenture contains provisions for
defeasance at any time of (a) the entire indebtedness of the Company on this Note
and (b) certain restrictive covenants and the related Defaults and Events of
Default, upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

 

The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders under
the Indenture and the Notes and the Guarantees, if any, at any time by the
Company and the Trustee with the consent of the Holders of a specified
percentage in aggregate principal amount of the Notes at the time Outstanding.
Additionally, the Indenture permits that, without notice to or consent of any
Holder, the Company, any Guarantor and the Trustee together may amend or
supplement the Indenture, any Guarantee or this Note (i) to cure any ambiguity,
defect or inconsistency, (ii) to provide for uncertificated Notes in addition
to or in place of Physical Notes, (iii) to comply with Article Eight of
the Indenture to provide for the assumption of the Company’s or any Guarantor’s
obligations to Holders of such Notes, (iv) to otherwise

 

35

 

provide for the assumption of the Company’s or any
Guarantor’s obligations to Holders of such Notes, (v) to make any change that
would provide any additional rights or benefits to the Holders of the Notes or
that does not adversely affect the legal rights under the Indenture of any such
Holder, (vi) to add covenants for the benefit of the Holders or to surrender
any right or power conferred upon the Company, (vii) to comply with
requirements of the Commission in order to effect or maintain the qualification
of the Indenture under the Trust Indenture Act, (viii) to evidence and provide
for the acceptance of appointment under this Indenture by a successor Trustee
pursuant to the requirements of Section 610 of the Indenture, (ix) to add
a Guarantor under the Indenture or release a Guarantor from its Guarantee
pursuant to the terms of the Indenture, or (x) to make any change to the
subordination provisions of the Indenture that would limit or terminate the
benefits available to any holder of Senior Indebtedness under such provisions, provided that if the rights of the holders
of Senior Indebtedness are adversely affected, such holders of Senior
Indebtedness must consent thereto. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Notes at the time Outstanding, on behalf of the Holders of all the
Notes, to waive compliance by the Company with certain provisions of the
Indenture, the Notes and the Guarantees, if any, and certain past Defaults
under the Indenture and the Notes and the Guarantees, if any, and their
consequences. Any such consent or waiver by or on behalf of the Holder of this
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof whether or not notation of such
consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation
of the Company, any Guarantor or any other obligor on the Notes (in the event
such Guarantor or other obligor is obligated to make payments in respect of the
Notes), which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Note at the times, place, and rate, and in
the coin or currency, herein prescribed, subject to the subordination
provisions of the Indenture.

 

As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Note is
registerable on the Note Register of the Company, upon surrender of this Note
for registration of transfer at the office or agency of the Company maintained
for such purpose in The City of New York, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Note
Registrar duly executed by, the Holder hereof or his attorney duly authorized
in writing, and thereupon one or more new Notes, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

 

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

 

No service charge shall be made for any registration of transfer or
exchange or redemption of Notes, but the Company may require payment of a sum
sufficient to pay all documentary, stamp or similar issue or transfer taxes or
other governmental charges payable in connection therewith.

 

36

 

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

 

THIS NOTE AND THE INDENTURE SHALL BE GOVERNED
BY THE LAW OF THE STATE OF NEW YORK EXCLUDING (TO THE GREATEST EXTENT
PERMISSIBLE BY LAW) ANY RULE OF LAW THAT WOULD CAUSE THE APPLICATION OF THE
LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

Interest on this Note shall be computed on
the basis of a 360-day year of twelve 30-day months.

 

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

 

FORM OF
TRANSFER NOTICE

 

FOR VALUE RECEIVED the undersigned registered
holder hereby sells, assigns and transfers unto

 

[INSERT TAXPAYER IDENTIFICATION NO.]

(please print or typewrite name and address including zip code of assignee)

 

the within Note and all rights thereunder, hereby
irrevocably constituting and appointing attorney to transfer said Note on the
books of the Company with full power of substitution in the premises.

 

[THE FOLLOWING PROVISION TO BE INCLUDED ON ALL
CERTIFICATES EXCEPT PERMANENT OFFSHORE GLOBAL NOTES]

 

In connection with any transfer of this Note
occurring prior to the date that is the earlier of the date of an effective
Registration Statement, as defined in the Registration Rights Agreement dated
as of December 29, 2004, or December 29, 2006, the undersigned
confirms that without utilizing any general solicitation or general advertising
that: 

 

[CHECK
ONE]

 

o (a)                                                                   this Note is being transferred in compliance with the
exemption from registration under the Securities Act of 1933, as amended,
provided by Rule 144A thereunder. 

 

OR

 

o (b)                                                                  this Note is being transferred other than in accordance with
(a) above and documents are being furnished that comply with the conditions of
transfer set forth in this Note and the Indenture. 

 

37

 

If neither of the
foregoing boxes is checked, the Trustee or other Registrar shall not be
obligated to register this Note in the name of any Person other than the Holder
hereof unless and until the conditions to any such transfer of registration set
forth herein and in Section 307 of the Indenture shall have been
satisfied.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTICE: 

  	
  The signature must
  correspond with the name as written upon the face of the within-mentioned
  instrument in every particular, without alteration or any change whatsoever.

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
						

 

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

 

The undersigned represents and warrants that
it is purchasing this Note for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933, as amended, and is aware that the sale to it is being
made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by
Rule 144A.

 

	
  Date:

  	
   

  	
   

  	
  NOTICE: 

  	
  To be executed by an executive officer.

  

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you wish to have this Note purchased by
the Company pursuant to Section 1016 or 1017 of the Indenture, check the
applicable Box below:

 

	
  o Section 1016

  	
  o Section 1017

  

 

If you wish to have a portion of this Note
purchased by the Company pursuant to Section 1016 or 1017 of the
Indenture, state the amount (in original principal amount) below:

 

$                     

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Your Signature:

  	
   

  	
   

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

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
							

 

Section 206.                            Form of Trustee’s
Certificate of Authentication.
The Trustee’s certificate of authentication shall be in substantially the
following form:

 

38

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION.

 

This is one of the Notes referred
to in the within-mentioned Indenture.

 

Bank of New York Trust
Company, N.A.,

as Trustee

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
   

  
	
  Dated:

  	
   

  	
   

  
					

 

ARTICLE THREE

 

THE NOTES

 

Section 301.                            Title and Terms. The aggregate principal amount of Notes
which may be authenticated and delivered under this Indenture is unlimited. The
aggregate principal amount of Original Notes issued hereunder shall be
$150,000,000.  Additional Notes may be
issued from time to time, subject to the limitations set forth in
Section 1010 hereof.

 

The Initial Notes shall be known and
designated as the “71⁄4% Senior Subordinated Notes due 2012” and the Exchange
Notes shall be known and designated as the “71⁄4% Series B Senior Subordinated
Notes due 2012,” in each case, of the Company. The Stated Maturity of the Notes
shall be December 15, 2012, and they shall bear interest at the rate of
71⁄4% per annum, which rate may be increased in the event of a Registration
Default pursuant to Section 5 of the Registration Rights Agreement dated
December 29, 2004 by and among the Company and the parties named on the
signature pages thereof, from December 29, 2004, or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
payable on June 15, 2001 and semi-annually thereafter on June 15 and
December 15 in each year, until the principal thereof is paid in full and
to the Person in whose name the Note (or any predecessor Note) is registered at
the close of business on the June 1 or December 1 immediately preceding
such interest payment date. Interest will be computed on the basis of a 360-day
year comprised of twelve 30-day months, until the principal thereof is paid or
duly provided for. Interest on any overdue principal, interest (to the extent
lawful) or premium, if any, shall be payable on demand.

 

Principal of, premium, if any, interest and
Liquidated Damages, if any, on the Notes will be payable at the office or
agency of the Company maintained for such purpose within the City and State of
New York or at such other office or agency of the Company as may be maintained
for such purposes, or at the option of the Company, payment of liquidated
damages, if any, or interest may be made by check mailed to the Holders of the
Notes at their respective addresses set forth in the register of Holders of Notes
or by wire transfer to an account maintained by the payee located in the United
States; provided that all
payments of principal, premium, if any, interest and liquidated damages, if
any, with respect to Notes represented by one or more permanent global Notes
registered in the name of or held by the Depositary or its nominee will be made
by wire transfer of immediately available funds to the accounts specified by
the

 

39

 

Holders thereof. Until otherwise designated by the
Company, the Company’s office or agency in New York will be the office of the
Trustee maintained for such purpose.

 

Holders shall have the right to require the
Company to purchase their Notes, in whole or in part, in the event of a Change
of Control pursuant to Section 1016.

 

The Notes shall be subject to repurchase by
the Company pursuant to an Asset Sale Offer as provided in Section 1017.

 

The Notes shall be redeemable as provided in
Article Eleven and in the Notes.

 

The Indebtedness evidenced by the Notes shall
be subordinated in right of payment to Senior Indebtedness as provided in
Article Thirteen.

 

Section 302.                            Denominations. The Notes shall be issuable only in
registered form without coupons and only in denominations of $1,000 and any
integral multiple thereof.

 

Section 303.                            Execution, Authentication,
Delivery and Dating. The
Notes shall be executed on behalf of the Company by its Chief Executive Officer
or any Vice President. The signature of any of these officers on the Notes may
be manual or facsimile signatures of the present or any future such authorized
officer and may be imprinted or otherwise reproduced on the Notes.

 

Notes bearing the manual or facsimile
signature of an individual who was at any time the proper officer of the
Company shall bind the Company, notwithstanding that such individual has ceased
to hold such office prior to the authentication and delivery of such Notes or
did not hold such office at the date of such Notes.

 

On the Issuance Date, the Company shall deliver the Original Notes
executed by the Company to the Trustee for authentication, together with a
Company Order for the authentication and delivery of such Notes, directing the
Trustee to authenticate the Original Notes and certifying that all conditions
precedent to the issuance of the Original Notes contained herein have been
fully complied with, and the Trustee in accordance with such Company Order
shall authenticate and deliver such Original Notes. On Company Order, the
Trustee shall authenticate Additional Notes for original issue following the
date of this Indenture (so long as permitted by the terms of this Indenture,
including, without limitation, Section 1010 hereof) in aggregate principal
amount as specified in such Company Order. On Company Order, the Trustee shall
authenticate for original issue Exchange Notes; provided that such Exchange Notes shall be issuable only
upon the valid surrender for cancellation of Initial Notes of a like aggregate
principal amount in accordance with an Exchange Offer pursuant to the
Registration Rights Agreement or otherwise registered under the Securities Act.
In each case, the Trustee shall be entitled to receive an Officers’ Certificate
and an Opinion of Counsel of the Company in connection with such authentication
of Notes. Such Company Order shall specify the amount of Notes to be
authenticated and the date on which the original issue of Initial Notes or
Exchange Notes, as the case may be, is to be authenticated.

 

40

 

Each Note shall be dated the date of its
authentication.

 

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

 

In case the Company or any Guarantor,
pursuant to Article Eight, shall be consolidated or merged with or into
any other Person or shall convey, transfer, lease or otherwise dispose of its properties
and assets substantially as an entirety to any Person, and the successor Person
resulting from such consolidation, or surviving such merger, or into which the
Company or such Guarantor shall have been merged, or the Person which shall
have received a conveyance, transfer, lease or other disposition as aforesaid,
shall have executed an indenture supplemental hereto with the Trustee pursuant
to Article Eight, any of the Notes authenticated or delivered prior to
such consolidation, merger, conveyance, transfer, lease or other disposition
may, from time to time, at the request of the successor Person, be exchanged
for other Notes executed in the name of the successor Person with such changes
in phraseology and form as may be appropriate, but otherwise in substance of
like tenor as the Notes surrendered for such exchange and of like principal
amount; and the Trustee, upon Company Request of the successor Person, shall
authenticate and deliver Notes as specified in such request for the purpose of
such exchange. If Notes shall at any time be authenticated and delivered in any
new name of a successor Person pursuant to this Section 303 in exchange or
substitution for or upon registration of transfer of any Notes, such successor
Person, at the option of the Holders but without expense to them, shall provide
for the exchange of all Notes at the time Outstanding for Notes authenticated
and delivered in such new name.

 

The Trustee may appoint an authenticating
agent acceptable to the Company to authenticate Notes on behalf of the Trustee.
Unless limited by the terms of such appointment, an authenticating agent may
authenticate Notes whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as any Note Registrar or Paying
Agent to deal with the Company and its Affiliates.

 

Section 304.                            Temporary Notes. Pending the preparation of definitive
Notes, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Notes which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Notes in lieu of
which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Notes may
determine, as conclusively evidenced by their execution of such Notes.

 

If temporary Notes are issued, the Company
will cause definitive Notes to be prepared without unreasonable delay. After
the preparation of definitive Notes, the temporary Notes shall be exchangeable
for definitive Notes upon surrender of the temporary Notes at the office or
agency of the Company designated for such purpose pursuant to
Section 1002, without

 

41

 

charge to the Holder. Upon surrender for
cancellation of any one or more temporary Notes, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Notes of authorized denominations. Until so
exchanged, the temporary Notes shall in all respects be entitled to the same
benefits under this Indenture as definitive Notes.

 

Section 305.                            Registration; Registration
of Transfer and Exchange. The
Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the register maintained in such office and in any other office or
agency designated pursuant to Section 1002 being herein sometimes referred
to as the “Note Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Notes and of transfers of Notes. The Note Register shall be in written form
or any other form capable of being converted into written form within a
reasonable time. At all reasonable times, the Note Register shall be open to
inspection by the Trustee. The Trustee is hereby initially appointed as
security registrar (the Trustee in such capacity, together with any successor
of the Trustee in such capacity, the “Note Registrar”) for the purpose
of registering Notes and transfers of Notes as herein provided.

 

Upon surrender for registration of transfer
of any Note at the office or agency of the Company designated pursuant to
Section 1002, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes of any authorized denomination or
denominations of a like aggregate principal amount.

 

Furthermore, any Holder of a beneficial
interest in a Global Note shall, by acceptance of such beneficial interest in a
Global Note, agree that transfers of beneficial interest in such Global Note
may be effected only through a book-entry system maintained by the Holder of
such Global Note (or its agent), and that ownership of a beneficial interest in
the Note shall be required to be reflected in a book entry.

 

At the option of the Holder, Notes may be
exchanged for other Notes of any authorized denomination and of a like
aggregate principal amount, upon surrender of the Notes to be exchanged at such
office or agency. Whenever any Notes are so surrendered for exchange (including
an exchange of Initial Notes for Exchange Notes), the Company shall execute,
and the Trustee shall authenticate and deliver, the Notes which the Holder
making the exchange is entitled to receive; provided
that no exchange of Initial Notes for Exchange Notes shall occur until an
Exchange Offer Registration Statement shall have been declared effective by the
Commission, the Trustee shall have received an Officers’ Certificate confirming
that the Exchange Offer Registration Statement has been declared effective by
the Commission and the Initial Notes to be exchanged for the Exchange Notes
shall be cancelled by the Trustee.

 

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

 

Every Note presented or surrendered for
registration of transfer or for exchange shall (if so required by the Company
or the Note Registrar) be duly endorsed, or be accompanied

 

42

 

by a written instrument of transfer, in form
satisfactory to the Company and the Note Registrar, duly executed by the Holder
thereof or his attorney duly authorized in writing.

 

No service charge shall be made for any
registration of transfer or exchange or redemption of Notes, but the Company
may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 304, 906,
1016, 1017 or 1108, not involving any transfer.

 

Section 306.                            Book-Entry Provisions for
the Global Note.

 

(a)                                  The Global Notes initially shall (i) be registered in the
name of the Depositary or the nominee of such Depositary, (ii) be delivered to
the Trustee as custodian for such Depositary and (iii) bear legends as set
forth in Section 202 hereof.

 

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

 

(b)                                 Interests of beneficial owners in the Global Notes may be
transferred or exchanged for Physical Notes in accordance with the rules and
procedures of the Depositary and the provisions of Section 307
hereof.  In addition, Physical Notes
shall be transferred to all beneficial owners in exchange for their beneficial
interests in Global Notes if (i) the Depositary (x) notifies the Company that
it is unwilling or unable to continue as Depositary for any Global Note or (y)
has ceased to be a clearing company registered under the Exchange Act and, in
each case, a successor depositary is not appointed by the Company within 90
days of such notice or (ii) a Default or an Event of Default has occurred and
is continuing and the Registrar has received a written request from the
Depositary to issue Physical Notes.

 

(c)                                  In connection with the transfer of Global Notes as an
entirety to beneficial owners pursuant to paragraph (b), the Global Notes shall
be deemed to be surrendered to the Trustee for cancellation, and the Company
shall execute, and the Trustee shall, upon receipt of an authentication order
from the Company in the form of an Officers’ Certificate, authenticate and
deliver, to each beneficial owner identified by the Depositary in writing in
exchange for its beneficial interest in the Global Notes, an equal aggregate
principal amount of Physical Notes of authorized denominations.

 

(d)                                 Any Physical Note constituting a Restricted Security
delivered in exchange for an interest in a Global Note pursuant to paragraph
(b) or (c) shall, except as otherwise provided by Section 307 hereof, bear
the Private Placement Legend.

 

43

 

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

 

Section 307.                            Special Transfer Provisions.

 

(a)                                  Transfer and Exchange of Physical Notes. When Physical Notes are presented to the
Note Registrar with a request:

 

(i)                                     to register the transfer of the Physical
Notes; or

 

(ii)                                  to exchange such Physical Notes for an equal
principal amount of Physical Notes of other authorized denominations,

 

the Note Registrar shall register the transfer or
make the exchange as requested if the requirements under this Indenture as set
forth in this Section 307 for such transactions are met; provided, however,
that the Physical Notes presented or surrendered for registration of transfer
or exchange:

 

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

 

(II)                                in the case of Physical Notes the offer and sale of which
have not been registered under the Securities Act and are presented for
transfer or exchange prior to (x) the date which 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 Note, or any predecessor thereto
and (y) such later date, if any, as may be required by any subsequent change in
applicable law (the “Resale Restriction Termination Date”), such
Physical Notes shall be accompanied, in the sole discretion of the Company, by
the following additional information and documents, as applicable:

 

(A)                              if such Physical Note is being delivered to the Note
Registrar by a Holder for registration in the name of such Holder, without
transfer, a certification to that effect (substantially in the form provided in
Section 203); or

 

(B)                                if such Physical Note is being transferred to a Qualified
Institutional Buyer in accordance with Rule 144A, a certification to that
effect (substantially in the form provided in Section 203); or

 

(C)                                if such Physical Note is being transferred in reliance on
Regulation S, delivery of a certification to that effect (substantially in the
form provided in Section 203) and a transferor certificate for Regulation
S transfers substantially in the form provided in Section 309; or

 

(D)                               if such Physical Note is being transferred to an
Institutional Accredited Investor, delivery of a certification to that effect
(substantially in the form provided in Section 203), certificates of the
transferee in substantially the

 

44

 

form provided
in Section 308 and, at the option of the Company and the Trustee,
an Opinion of Counsel reasonably satisfactory to the Company and the Trustee to
the effect that such transfer is in compliance with the Securities Act; or

 

(E)                                 if such Physical Note is being transferred in reliance on
Rule 144 under the Securities Act, delivery of a certification to that effect
substantially in the form provided in Section 203 hereto) and, at the
option of the Company and the Trustee, an Opinion of Counsel reasonably
satisfactory to the Company and the Trustee to the effect that such transfer is
in compliance with the Securities Act; or

 

(F)                                 if such Physical Note is being transferred in reliance on
another exemption from the registration requirements of the Securities Act, a
certification to that effect (substantially in the form provided in
Section 203) and, at the option of the Company and the Trustee, an Opinion
of Counsel reasonably satisfactory to the Company and the Trustee to the effect
that such transfer is in compliance with the Securities Act.

 

(b)                                 Restrictions on Transfer of a Physical Note
for a Beneficial Interest in a Global Note. A Physical Note may not be exchanged for a beneficial interest in a
Global Note except upon satisfaction of the requirements set forth below.  Upon receipt by the Note Registrar of a
Physical Note, duly endorsed or accompanied by appropriate instruments of
transfer, in form satisfactory to the Note Registrar, together with:

 

(A)                              in the case of Physical Notes, the offer and sale of which
have not been registered under the Securities Act and which are presented for
transfer prior to the Resale Restriction Termination Date, certification,
substantially in the form provided in Section 203, that such Physical Note
is being transferred (I) to a Qualified Institutional Buyer or (II) in an
offshore transaction in reliance on Regulation S (and, in the case of this
clause II, the Company shall have received a transferor certificate for
Regulation S transfers substantially in the form provided in Section 309
and, at the option of the Company and the Trustee, an Opinion of Counsel
reasonably satisfactory to the Company and the Trustee to the effect that such
transaction is in compliance with the Securities Act); and

 

(B)                                written instructions from the Holder thereof, on which the
recipient thereof shall be entitled to rely, directing the Registrar or
co-Registrar to make, or to direct the Depositary to make, an endorsement on
the applicable Global Note to reflect an increase in the aggregate amount of
the Notes represented by the Global Note,

 

then
the Note Registrar shall cancel such Physical Note and cause, or direct the
Depositary to cause, in accordance with the standing instructions and
procedures existing between the Depositary and the Note Registrar, the
principal amount of Notes represented by the applicable Global Note to be
increased accordingly.  If no Global Note
representing Notes held by Qualified Institutional Buyers or Persons acquiring
Notes in offshore transactions in reliance on Regulation S, as the case may be,
is then outstanding, the Company shall issue and the Trustee shall, upon
receipt of an authentication order in the form of an Officers’ Certificate in
accordance with Section 102, authenticate such a Global Note in the
appropriate principal amount.

 

45

 

(c)                                  Transfer and Exchange of Global Notes. The transfer and exchange of Global Notes or beneficial
interests therein shall be effected through the Depositary in accordance with
this Indenture (including the restrictions on transfer set forth herein) and
the procedures of the Depositary therefor. Upon receipt by the Note Registrar
of written instructions, or such other instruction as is customary for the
Depositary, from the Depositary or its nominee, requesting the registration of
transfer of an interest in a U.S. Global Note or Offshore Global Note, as the
case may be, to another type of Global Note, together with the applicable
Global Notes (or, if the applicable type of Global Note required to represent
the interest as requested to be transferred is not then outstanding, only the
Global Note representing the interest being transferred), the Note Registrar
shall cancel such Global Notes (or Global Note) and the Company shall issue and
the Trustee shall, upon receipt of an authentication order in the form of an
Officers’ Certificate in accordance with Section 102, authenticate new
Global Notes of the types so cancelled (or the type so cancelled and applicable
type required to represent the interest as requested to be transferred)
reflecting the applicable increase and decrease of the principal amount of
Notes represented by such types of Global Notes, giving effect to such
transfer.  If the applicable type of
Global Note required to represent the interest as requested to be transferred
is not outstanding at the time of such request, the Company shall issue and the
Trustee shall, upon written instructions from the Company in accordance with
Section 102, authenticate a new Global Note of such type in principal
amount equal to the principal amount of the interest requested to be
transferred.

 

(d)                                 Transfer of a Beneficial Interest in a Global Note for a
Physical Note.  (i) Any Person having a beneficial interest
in a Global Note may upon request exchange such beneficial interest for a
Physical Note. Upon receipt by the Note Registrar of written instructions, or
such other form of instructions as is customary for the Depositary, from the
Depositary or its nominee on behalf of any Person having a beneficial interest
in a Global Note and upon receipt by the Trustee of a written order or such
other form of instructions as is customary for the Depositary or the Person
designated by the Depositary as having such a beneficial interest containing
registration instructions and, in the case of any such transfer or exchange of
a beneficial interest in Notes the offer and sale of which have not been
registered under the Securities Act and which Notes are presented for transfer
or exchange prior to the Resale Restriction Termination Date, the following
additional information and documents:

 

(A)                              if such beneficial interest is being transferred to the
Person designated by the Depositary as being the beneficial owner, a
certification from such Person to that effect (substantially in the form
provided in Section 203); or

 

(B)                                if such beneficial interest is being transferred to a
Qualified Institutional Buyer in accordance with Rule l44A, a certification to
that effect (substantially in the form provided in Section 203); or

 

(C)                                if such beneficial interest is being transferred in reliance
on Regulation S, delivery of a certification to that effect (substantially in
the form provided in Section 203) and a transferor certificate for
Regulation S transfers substantially in the form provided in Section 309;
or

 

46

 

(D)                               if such beneficial interest is being transferred to an
Institutional Accredited Investor, delivery of certification (substantially in
the form provided in Section 203), a certificate of the transferee in
substantially the form provided in Section 308 and, at the option of the
Company and the Trustee, an Opinion of Counsel reasonably satisfactory to the
Company and the Trustee to the effect that such transfer is in compliance with
the Securities Act; or

 

(E)                                 if such beneficial interest is being transferred in reliance
on Rule 144 under the Securities Act, delivery of a certification to that
effect (substantially in the form provided in Section 203) and, at the
option of the Company and the Trustee, an Opinion of Counsel reasonably
satisfactory to the Company and the Trustee to the effect that such transfer is
in compliance with the Securities Act; or

 

(F)                                 if such beneficial interest is being transferred in reliance
on another exemption from the registration requirements of the Securities Act,
a certification to that effect (substantially in the form provided in
Section 203) and, at the option of the Company and the Trustee, an Opinion
of Counsel reasonably satisfactory to the Company and the Trustee to the effect
that such transfer is in compliance with the Securities Act,

 

then the Note Registrar will cause, in accordance
with the standing instructions and procedures existing between the Depositary
and the Note Registrar, the aggregate principal amount of the applicable Global
Note to be reduced and, following such reduction, the Company will execute and,
upon receipt of an authentication order in the form of an Officers’ Certificate
in accordance with Section 102 hereof, the Trustee will authenticate and
deliver to the transferee a Physical Note in the appropriate principal amount.

 

(ii)                                  Physical Notes issued in exchange for a
beneficial interest in a Global Note pursuant to this Section 307(d)
hereof shall be registered in such names and in such authorized denominations
as the Depositary, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Note Registrar in writing.  The Note Registrar shall deliver such
Physical Notes to the Persons in whose names such Physical Notes are so
registered.

 

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

 

(f)                                    Private Placement Legend. Upon the transfer, exchange or
replacement of Notes not bearing the Private Placement Legend, the Note
Registrar shall deliver Notes that do not bear the Private Placement Legend.
Upon the transfer, exchange or replacement of Notes bearing the Private
Placement Legend, the Note Registrar shall deliver only Notes that bear the
Private Placement Legend unless, and the Trustee is hereby authorized to
deliver Notes without the Private Placement Legend if, (i) the Resale Restriction
Termination Date shall have occurred and the Trustee shall have been provided
with written notice of this fact, (ii) there is delivered to the Trustee an
Opinion of Counsel reasonably satisfactory to the Company and the Trustee to
the effect that neither such legend nor the related restrictions on transfer
are required in order to

 

47

 

maintain compliance with the provisions of the
Securities Act or (iii) such Note has been sold pursuant to an effective registration
statement under the Securities Act and the Trustee shall have been provided
with written notice of this fact.

 

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

 

None of the Company, the Trustee, any agent
of the Company or the Trustee (including any Paying Agent or Note Registrar)
will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests of a
global security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.

 

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

 

The Note Registrar shall retain copies of all
letters, notices and other written communications received pursuant to
Section 306 or this Section 307. The Company shall have the right to
inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable written
notice to the Note Registrar.

 

Section 308.                            Form of Certificate to be
Delivered in Connection with Transfers to Non-QIB Institutional Accredited
Investors.

 

[date]

 

Alliance Imaging, Inc.

c/o Bank of New York Trust Company, N.A.

101 Barclay Street

Floor 21 West

New York, New York 10286

Attention: 
Corporate Trust Administration - Alliance Imaging, Inc.

 

Dear Sirs:

 

In connection with our proposed purchase of
$                   principal
amount of the 71⁄4% Senior Subordinated Notes due 2012 (the “Notes”) of
Alliance Imaging, Inc., a Delaware corporation (the “Company”), we
confirm that:

 

1.                                       We are an institutional “accredited investor” (as defined in
Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended
(the “Securities Act”)) purchasing

 

48

 

Notes for our
own account or for the account of such an institutional “accredited investor”
and we are acquiring the Notes not with a view to, or for offer or sale in
connection with, any distribution in violation of the Securities Act. We have
such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risk of our investment in the Notes and we
invest in or purchase securities similar to the Notes in the normal course of
our business.  We and any accounts for
which we are acting are each able to bear the economic risk of our or its
investment.

 

2.                                       We acknowledge that we have had access to such financial and
other information, and have been afforded the opportunity to ask such questions
of representatives of the Company and receive answers thereto, as we deem
necessary.

 

3.                                       We understand that the Notes 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 Notes that we will not prior to the date (the “Resale Restriction
Termination Date”) that is two years after the later of the original
issuance of the Notes and the last date on which the Company or any affiliate
of the Company was the owner of such Notes (or any predecessor thereto) offer,
sell or otherwise transfer such Notes except (a) to the Company or any subsidiary
of the Company, (b) inside the United States to a “qualified institutional
buyer” in compliance with Rule 144A under the Securities Act (c) inside the
United States to an “institutional accredited investor” as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act that, prior to such
transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to
the Trustee a signed letter substantially in the form of this letter (d)
outside the United States in an offshore transaction in compliance with Rule
904 under the Securities Act (e) pursuant to any other available exemption from
the registration requirements of the Securities Act or (f) pursuant to an
effective registration statement under the Securities Act.  We acknowledge that the Company and the
Trustee reserve the right prior to any offer, sale or other transfer prior to
the Resale Restriction Termination Date of the applicable Notes pursuant to
clause (c) or (e) above to require the delivery of an opinion of counsel,
certification and/or other information satisfactory to the Company and the
Trustee.

 

We understand that the Trustee will not be
required to accept for registration of transfer any Notes acquired by us,
except upon presentation of evidence satisfactory to the Company and the
Trustee that the foregoing restrictions on transfer have been complied with. We
further understand that any Notes purchased by us will be in the form of
definitive physical certificates and that such certificates will bear a legend
reflecting the substance of paragraph 3 of this letter. We further agree to
provide to any person acquiring any of the Notes from us a notice advising such
person that transfers of such Notes are restricted as stated herein and that
certificates representing such Notes will bear a legend to that effect.

 

We represent that the Company and the Trustee
and others are entitled to rely upon the truth and accuracy of our
acknowledgments, representations and agreements set forth herein, and we agree
to notify you promptly in writing if any of our acknowledgments,
representations or agreements herein cease to be accurate and complete. You are
also irrevocably authorized

 

49

 

to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

 

We represent to you that we have full power
to make the foregoing acknowledgments, representations and agreements on our
own behalf and on behalf of any investor account for which we are acting as
fiduciary agent.

 

As used herein, the terms “offshore
transaction,” “United States” and “U.S. person” have the respective meanings
given to them in Regulation S under the Securities Act.

 

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

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  (Name of Purchaser) 

  
	
   

  	
  Date:

  

 

 

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

 

	
  NAME

  	
   

  	
  ADDRESS

  	
   

  	
  TAXPAYER ID

  NUMBER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Section 309.                            Form of Certificate to be
Delivered in Connection with Transfers of an Offshore Global Note.

 

[date]

 

Bank of New York Trust Company, N.A.

Attention: 
Corporate Trust Department - Alliance Imaging, Inc.

 

	
  Re:

  	
  Alliance Imaging,
  Inc. (the “Company”) 71⁄4%

  
	
   

  	
  Senior Subordinated
  Notes due 2012 (the “Notes”)

  

 

Ladies and Gentlemen:

 

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

 

50

 

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

 

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

 

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

 

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

 

In addition, if the sale is made during a
restricted period and the provisions of Rule 903(c)(3) or Rule 904(c)(1) of
Regulation S are applicable thereto, we confirm that such sale has been made in
accordance with the applicable provisions of Rule 903(c)(3) or Rule
904(c)(1), as the case may be.

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

 

Section 310.                            Mutilated, Destroyed, Lost
and Stolen Notes. If (i) any
mutilated Note is surrendered to the Trustee, or (ii) the Company and the
Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Note, and there is delivered to the Company, any Guarantor and the
Trustee such security or indemnity, in each case, as may be required by them to
save each of them harmless, then, in the absence of notice to the Company any
Guarantor or the Trustee that such Note has been acquired by a bona fide
purchaser, the Company shall execute and upon Company Order the Trustee shall
authenticate and deliver, in exchange for any such mutilated Note or in lieu of
any such destroyed, lost or stolen Note, a new Note of like tenor and principal
amount, bearing a number not contemporaneously outstanding.

 

51

 

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

 

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

 

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

 

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

 

Section 311.                            Payment of Interest;
Interest Rights Preserved.
Interest and Liquidated Damages, if any, on any Note which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name such Note (or one or more Predecessor Notes)
is registered at the close of business on the Regular Record Date for such
interest and Liquidated Damages, if any, at the office or agency of the Company
maintained for such purpose pursuant to Section 1002; provided,
however, that each installment of interest and Liquidated Damages,
if any, may at the Company’s option be paid by mailing a check for such
interest and Liquidated Damages, if any, payable to or upon the written order
of the Person entitled thereto pursuant to Section 312, to the address of
such Person as it appears in the Note Register; provided that all payments of principal, premium, if any,
interest and Liquidated Damages, if any, with respect to Notes represented by
one or more permanent Global Notes registered in the name of or held by the
Depositary or its nominee will be made by wire transfer of immediately
available funds to the accounts specified by the Holders thereof. Until
otherwise designated by the Company, the Company’s office or agency in New York
will be the office of the Trustee maintained for such purpose.

 

Any interest and Liquidated Damages, if any,
on any Note which is payable, but is not punctually paid or duly provided for,
on any Interest Payment Date shall forthwith cease to be payable to the Holder
on the Regular Record Date by virtue of having been such Holder, and such
defaulted interest and Liquidated Damages, if any, and (to the extent lawful)
interest on such defaulted interest and Liquidate Damages, if any, at the rate
borne by the Notes (such defaulted interest and Liquidated Damages, if any, and
interest thereon herein collectively called “Defaulted Interest”) shall
be paid by the Company, at its election in each case, as provided in clause (1)
or (2) below:

 

(1)                                  the Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered

 

52

 

at the close of
business on a Special Record Date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Note and the date (not less than 30 days after such notice) of the
proposed payment (the “Special Record Date”), and at the same time the
Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a Special Record Date for the
payment of such Defaulted Interest which shall be not more than 15 days and not
less than 10 days prior to the Special Record Date and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date, and in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
given in the manner provided for in Section 106, not less than 10 days
prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so given,
such Defaulted Interest shall be paid to the Persons in whose names the Notes
(or their respective Predecessor Notes) are registered at the close of business
on such Special Record Date and shall no longer be payable pursuant to the
following clause (2).

 

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

 

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

 

Section 312.                            Persons Deemed Owners. Prior to the due presentment of a Note for
registration of transfer, the Company, the Trustee and any agent of the
Company, any Guarantor or the Trustee may treat the Person in whose name such
Note is registered as the owner of such Note for the purpose of receiving
payment of principal of (and premium, if any) and (subject to Sections 305 and
311) interest on such Note and for all other purposes whatsoever, whether or
not such Note be overdue, and none of the Company, any Guarantor, the Trustee
nor any agent of the Company, any Guarantor or the Trustee shall be affected by
notice to the contrary.

 

Section 313.                            Cancellation. All Notes surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be
promptly cancelled by it. If the Company shall acquire any of the Notes other
than as set forth in the preceding sentence, the acquisition shall not operate
as

 

53

 

a redemption or satisfaction of the Indebtedness
represented by such Notes unless and until the same are surrendered to the
Trustee for cancellation pursuant to this Section 313. No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in
this Section, except as expressly permitted by this Indenture. All cancelled
Notes held by the Trustee shall be returned to the Company.

 

Section 314.                            Computation of Interest. Interest on the Notes shall be computed on
the basis of a 360-day year of twelve 30-day months.

 

Section 315.                            CUSIP Numbers. The Company in issuing Notes may use
“CUSIP” numbers (if then generally in use) in addition to serial numbers; if
so, the Trustee shall use such CUSIP numbers in addition to serial numbers in
notices of redemption and repurchase as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such CUSIP numbers
either as printed on the Notes or as contained in any notice of a redemption or
repurchase and that reliance may be placed only on the serial or other
identification numbers printed on the Notes, and any such redemption or
repurchase shall not be affected by any defect in or omission of such CUSIP
numbers. The Company shall promptly notify the Trustee of any change of the
CUSIP numbers.

 

ARTICLE FOUR

 

SATISFACTION
AND DISCHARGE

 

Section 401.                            Satisfaction and Discharge
of Indenture. This Indenture
shall upon Company Request cease to be of further effect (except as to
surviving rights of the Trustee under Article Six and as to surviving
rights of registration of transfer or exchange of Notes expressly provided for
herein or pursuant hereto) and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture when:

 

(1)                                  either

 

(a)                                  all such Notes theretofore authenticated and delivered
(except (i) lost, stolen or destroyed Notes which have been replaced or paid as
provided in Section 310 and (ii) Notes for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Company) have
been delivered to the Trustee for cancellation; or

 

(b)                                 all such Notes not theretofore delivered to such Trustee for
cancellation have become due and payable by reason of the making of a notice of
redemption or otherwise or will become due and payable at their Stated Maturity
within one year and the Company or any Guarantor has irrevocably deposited or
caused to be deposited with the Trustee as trust funds in trust solely for the
benefit of the Holders, cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest, to pay and discharge the
entire indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation, for principal,

 

54

 

premium,
if any, and accrued interest and Liquidated Damages, if any, to the date of the
Stated Maturity or Redemption Date;

 

(2)                                  no Default or Event of Default with respect to this Indenture
or the Notes shall have occurred and be continuing on the date of such deposit
or shall occur as a result of such deposit and such deposit will not result in
a breach or violation of, or constitute a default under, any other instrument
to which the Company or any Guarantor is a party or by which the Company or any
Guarantor is bound;

 

(3)                                  the Company or any Guarantor has paid or caused to be paid
all sums payable hereunder by the Company or any Guarantor;

 

(4)                                  the Company has delivered irrevocable instructions to the
Trustee to apply the deposited money toward the payment of such Notes at
maturity or the Redemption Date, as the case may be; and

 

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

 

Notwithstanding the satisfaction and discharge
of this Indenture, the obligations of the Company to the Trustee under
Section 607 and, if money shall have been deposited with the Trustee
pursuant to subclause (b) of clause (1) of this Section, the provisions of
Section 402 and the last paragraph of Section 1003 shall survive such
satisfaction and discharge.

 

Section 402.                            Application of Trust Money. Subject to the provisions of the last
paragraph of Section 1003, all money deposited with the Trustee pursuant
to Section 401 shall be held in trust and applied by it, in accordance
with the provisions of the Notes and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of
the principal (and premium, if any) and interest for whose payment such money
has been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law.

 

If the Trustee or Paying Agent is unable to apply any money or
Government Securities in accordance with Section 401 by reason of any
legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company’s and any Guarantor’s obligations under this Indenture
and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 401; provided
that if the Company has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or Government Securities held by the
Trustee or Paying Agent.

 

55

 

ARTICLE FIVE

 

REMEDIES

 

Section 501.                            Events of Default.

 

“Event of Default,” wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be occasioned by the provisions of
Article Thirteen or be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

 

(i)                                     default in payment when due and payable, upon redemption,
acceleration or otherwise, of principal of, or premium on, if any, the Notes
whether or not such payment shall be prohibited by Article Thirteen;

 

(ii)                                  default for 30 days or more in the payment when due of
interest on or Liquidated Damages, if any, with respect to the Notes whether or
not such payment shall be prohibited by Article Thirteen;

 

(iii)                               failure
by the Company or any Guarantor for 30 days after receipt of written notice
given by the Trustee or the holders of at least 30% in principal amount of the
Notes then Outstanding to comply with any of its other agreements in this
Indenture or the Notes;

 

(iv)                              default under any mortgage, indenture or instrument under
which there is issued or by which there is secured or evidenced any
Indebtedness for money borrowed by the Company or any of its Restricted
Subsidiaries or the payment of which is guaranteed by the Company or any of its
Restricted Subsidiaries (other than Indebtedness owed to the Company or a
Restricted Subsidiary), whether such Indebtedness or guarantee now exists or is
created after the Issuance Date, if both (A) such default either (1) results
from the failure to pay any such Indebtedness at its stated final maturity
(after giving effect to any applicable grace periods) or (2) relates to an
obligation other than the obligation to pay principal of any such Indebtedness
at its stated final maturity and results in the holder or holders of such
Indebtedness causing such Indebtedness to become due prior to its stated
maturity and (B) the principal amount of such Indebtedness, together with the
principal amount of any other such Indebtedness in default for failure to pay
principal at stated final maturity (after giving effect to any applicable grace
periods), or the maturity of which has been so accelerated, aggregate $20.0
million or more at any one time outstanding;

 

(v)                                 failure by the Company or any of its Significant Subsidiaries
to pay final judgments aggregating in excess of $20.0 million, which final
judgments remain unpaid, undischarged and unstayed for a period of more than 60
days after such judgment becomes final, and in the event such judgment is
covered by insurance, an enforcement proceeding has been commenced by any
creditor upon such judgment or decree which is not promptly stayed;

 

56

 

(vi)                              the Company or any of its Significant Subsidiaries pursuant
to or within the meaning of the Federal Bankruptcy Code: (A) commences a
voluntary case; (B) consents to the entry of an order for relief against it in
an involuntary case; (C) consents to the appointment of a Custodian of it or
for all or substantially all of its property; (D) makes a general assignment
for the benefit of its creditors, or (E) admits in writing that it is generally
not paying its debts (other than debts which are the subject of a bona fide
dispute) as they become due;

 

(vii)                           a court of competent
jurisdiction enters an order or decree under the Federal Bankruptcy Code that
remains unstayed and in effect for 60 days and: (A) is for relief against the
Company or any of its Significant Subsidiaries in an involuntary case; (B)
appoints a Custodian of the Company or any of its Significant Subsidiaries or
for all or substantially all of the property of the Company or any of its
Significant Subsidiaries; or (C) orders the liquidation of the Company or any
of its Significant Subsidiaries; provided that
clauses (A), (B) and (C) shall not apply to an Unrestricted Subsidiary, unless
such action or proceeding has a material adverse effect on the interests of the
Company or any Restricted Subsidiary; or

 

(viii)                        any
Guarantee shall for any reason cease to be in full force and effect or is
declared null and void or any Responsible Officer of the Company or any
Guarantor denies that it has any further liability under any Guarantee or gives
notice to such effect (other than by reason of the termination of this
Indenture or the release of any such Guarantee in accordance with this
Indenture).

 

The Trustee shall not be charged with
knowledge of any Event of Default unless written notice thereof shall have been
received by a Responsible Officer of the Trustee at the Corporate Trust Office.

 

Section 502.                            Acceleration of Maturity;
Rescission and Annulment. If
any Event of Default (other than of a type specified in Section 501(vi) or
501(vii)) occurs and is continuing, the Trustee or the Holders of at least 30%
in principal amount of the Outstanding Notes may declare the principal,
premium, if any, interest and any other monetary obligations on all the then
Outstanding Notes to be due and payable immediately, by a notice in writing to
the Company (and to the Trustee if given by Holders); provided,
however, that, so long as any Indebtedness permitted to be incurred
pursuant to the Credit Facility shall be outstanding, such acceleration shall
not be effective until the earlier of (i) acceleration of any such Indebtedness
under the Credit Facility or (ii) five Business Days after the giving of
written notice to the Company and the Bank Agent of such acceleration. Upon the
effectiveness of such declaration, such principal and interest shall be due and
payable immediately. Notwithstanding the foregoing, in the case of an Event of
Default specified in Section 501(vi) or 501(vii) occurs and is continuing,
then the principal amount of all the Notes shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder.

 

At any time after a declaration of
acceleration has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter provided in this
Article, the Holders of a majority in aggregate principal amount of the Notes

 

57

 

Outstanding, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if:

 

(1)                                  the Company has paid or deposited with the Trustee a sum
sufficient to pay,

 

(A)                              all overdue interest and Liquidated Damages, if any, on all
Outstanding Notes;

 

(B)                                all unpaid principal of (and premium, if any, on) any
Outstanding Notes which has become due otherwise than by such declaration of
acceleration, and interest on such unpaid principal and premium at the rate
borne by the Notes (for purposes of this clause (B) without duplication to
amounts to be paid or deposited under clause (A) above);

 

(C)                                to the extent that payment of such interest is lawful,
interest on overdue interest at the rate borne by the Notes; and

 

(D)                               all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel;

 

(2)                                  all Events of Default, other than the non-payment of amounts
of principal of (or premium, if any, on) or interest on Notes which have become
due solely by such declaration of acceleration, have been cured or waived as
provided in Section 513;

 

(3)                                  if the rescission would not conflict with any judgment or
decree; and

 

(4)                                  in the event of the cure or waiver of an Event of Default
specified in clause (iv) of Section 501, the Trustee shall have received
an Officers’ Certificate and, if appropriate, an Opinion of Counsel that such
Event of Default has been cured or waived.

 

No such rescission shall affect any subsequent
default or impair any right consequent thereon.

 

Upon a determination by the Company that the
Credit Facility is no longer in effect, the Company shall promptly give to the
Trustee written notice thereof executed by an Officer of the Company, which
notice shall be countersigned by the Bank Agent. Unless and until the Trustee
shall have received such written notice with respect to the Credit Facility,
the Trustee, subject to the TIA Sections 315(a) through 315(d), shall be
entitled in all respects to assume that the Credit Facility is in effect
(unless a Responsible Officer of the Trustee shall have knowledge to the
contrary).

 

Section 503.                            Collection of Indebtedness
and Suits for Enforcement by Trustee. If an Event of Default specified in Section 501(i) or 501(ii)
occurs and is continuing, the Trustee, in its own name as trustee of an express
trust, may institute a judicial proceeding for the collection of the sums so
due and unpaid, may prosecute such proceeding to judgment or final decree and
may enforce the same against the Company or any Guarantor (in accordance with
the applicable Guarantee) or any other obligor upon the Notes and collect the
moneys adjudged

 

58

 

or decreed to be payable in the manner provided by
law out of the property of the Company, any Guarantor or any other obligor upon
the Notes, wherever situated.

 

If an Event of Default occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders under this Indenture or any Guarantee
by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, including, seeking recourse
against any Guarantor pursuant to the terms of any Guarantee, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid
of the exercise of any power granted herein, or to enforce any other proper
remedy including, without limitation, seeking recourse against any Guarantor
pursuant to the terms of a Guarantee, or to enforce any other proper remedy,
subject however to Section 513. No recovery of any such judgment upon any
property of the Company or any Guarantor shall affect or impair any rights,
powers or remedies of the Trustee or the Holders.

 

Section 504.                            Trustee May File Proofs of
Claim. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor, including any
Guarantor, upon the Notes or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue principal, premium,
if any, or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise,

 

(i)                                     to file and prove a claim for the whole amount of principal
(and premium, if any) and interest owing and unpaid in respect of the Notes, to
take such other actions (including participating as a member, voting or
otherwise, of any official committee of creditors appointed in such matter) and
to file such other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and of the Holders allowed in such judicial proceeding, and

 

(ii)                                  to collect and receive any moneys or other property payable
or deliverable on any such claims and to distribute the same;

 

and any Custodian in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under
Section 607.

 

Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding; provided,
however, that the Trustee may, on behalf of such Holders, vote for
the election of a trustee in bankruptcy or other similar official.

 

59

 

Section 505.                            Trustee May Enforce Claims
Without Possession of Notes.
All rights of action and claims under this Indenture, the Notes or the
Guarantees may be prosecuted and enforced by the Trustee without the possession
of any of the Notes or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name and as trustee of an express trust, and any recovery of judgment
shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Notes in respect of which such judgment
has been recovered.

 

Section 506.                            Application of Money
Collected. Subject to
Article Thirteen, any money collected by the Trustee pursuant to this
Article shall be applied in the following order, at the date or dates
fixed by the Trustee and, in case of the distribution of such money on account
of principal (or premium, if any) or interest, upon presentation of the Notes
and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:

 

FIRST: To the payment of all amounts due the Trustee under
Section 607 or otherwise pursuant to this Indenture;

 

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

 

THIRD: The balance, if any, to the Company, provided that all sums due and owing to the Holders and the
Trustee have been paid in full as required by this Indenture.

 

Section 507.                            Limitation on Suits. No Holder of any Notes shall have any right
to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless

 

(1)                                  such Holder has previously given written notice to the
Trustee of a continuing Event of Default;

 

(2)                                  the Holders of not less than 30% in principal amount of the
Outstanding Notes shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

 

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

 

(4)                                  the Trustee for 30 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such proceeding; and

 

(5)                                  no direction inconsistent with such written request has been
given to the Trustee during such 30-day period by the Holders of a majority or
more in principal amount of the Outstanding Notes;

 

60

 

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

 

Section 508.                            Unconditional Right of
Holders to Receive Principal, Premium and Interest. Notwithstanding any other provision in this
Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment, as provided herein (including, if
applicable, Article Eleven) and in such Note of the principal of (and
premium, if any) and (subject to Section 311) interest and Liquidated
Damages, if any, on such Note on the respective Stated Maturities expressed in
such Note (or, in the case of redemption or repurchase, on the Redemption Date
or repurchase) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

 

Section 509.                            Restoration of Rights and
Remedies. If the Trustee or
any Holder has instituted any proceeding to enforce any right or remedy under
this Indenture or any Guarantee and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, any Guarantor, any other obligor on the Notes, the
Trustee and the Holders shall be restored severally and respectively to their
former positions hereunder, and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.

 

Section 510.                            Rights and Remedies
Cumulative. Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in the last paragraph of Section 310, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

 

Section 511.                            Delay or Omission Not Waiver. No delay or omission of the Trustee or of
any Holder of any Note to exercise any right or remedy accruing upon any Event
of Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein. Every right and remedy given
by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

 

Section 512.                            Control by Holders. The Holders of not less than a majority in
principal amount of the Outstanding Notes shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred on the Trustee; provided that

 

61

 

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

 

(2)                                  the Trustee need not take any action which might involve it
in personal liability or be unjustly prejudicial to the Holders not consenting;
and

 

(3)                                  subject to the provisions of Section 315 of the Trust
Indenture Act, the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction.

 

Section 513.                            Waiver of Past Defaults. Subject to Sections 508 and 902, the
Holders of a majority in aggregate principal amount of the Outstanding Notes
(including consents obtained in connection with a tender offer or exchange
offer for the Notes) may on behalf of the Holders of all of the Notes waive any
existing Default or Event of Default and its consequences under this Indenture
or any Guarantee except a continuing Default or Event of Default in the payment
of interest on, premium, if any, or the principal of, any such Note held by a
non-consenting Holder, or in respect of a covenant or a provision which cannot
be amended or modified without the consent of each Holder affected thereby in
accordance with Section 902 hereof.

 

In the event that any Event of Default
specified in Section 501(iv) shall have occurred and be continuing, such
Event of Default and all consequences thereof (including, without limitation,
any acceleration or resulting payment default) shall be annulled, waived and
rescinded, automatically and without any action by the Trustee or the Holders
of the Notes, if within 20 days after such Event of Default arose (x) the
Indebtedness or guarantee that is the basis for such Event of Default has been discharged,
or (y) the holders thereof have rescinded or waived the acceleration, notice or
action (as the case may be) giving rise to such Event of Default, or (z) if the
default that is the basis for such Event of Default has been cured.

 

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

 

Section 514.                            Waiver of Stay or Extension
Laws. The Company, the
Guarantors and any other obligors upon the Notes, covenants (to the extent that
it may lawfully do so) that it will not at any time insist upon, or plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, which
would prohibit or forgive the Company, any Guarantor or any such obligor from
paying all or any portion of the principal of, premium, if any, or interest on
the Notes contemplated herein or in the Notes or which may affect the covenants
or the performance of this Indenture; and each of the Company, any Guarantor
and any such obligor (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

 

62

 

Section 515.                            Undertaking for Costs. All parties to this Indenture agree, and
each Holder of any Note by his acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken, suffered or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees and expenses, against any party litigant
in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this
Section shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of the Outstanding Notes, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
(or premium, if any) or interest on any Note on or after the respective Stated
Maturities expressed in such Note (or, in the case of redemption, on or after
the Redemption Date).

 

ARTICLE SIX

 

THE TRUSTEE

 

Section 601.                            Certain Duties and
Responsibilities.

 

(a)                                  Except during the continuance of a Default or
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 or willful misconduct 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; but in the case of any such certificates or opinions required to be
delivered hereunder, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations
or other facts stated therein).

 

(b)                                 In case a Default or an Event of Default has occurred and is
continuing of which a Responsible Officer of the Trustee has actual knowledge
or of which written notice of such Default or Event of Default shall have been
given to the Trustee by the Company, any other obligor of the Notes or by any
Holder, the Trustee shall exercise such of the rights and powers vested in it
by this Indenture, and use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the
conduct of his own affairs.

 

(c)                                  No provision of this Indenture shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that

 

(1)                                  this paragraph (c) shall not be construed to limit the effect
of paragraph (a) of this Section;

 

63

 

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

 

(3)                                  the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of the Outstanding Notes received by the Trustee
pursuant to Sections 502, 512 and 513 hereof or in exercising any trust or
power conferred upon the Trustee, under this Indenture; and

 

(4)                                  no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers.

 

(d)                                 Whether or not therein expressly so provided, 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.

 

Section 602.                            Notice
of Defaults. Within 90 days after the occurrence of any Default hereunder,
the Trustee shall transmit in the manner and to the extent provided in TIA
Section 313(c), notice of such Default hereunder actually known to a
Responsible Officer of the Trustee, unless such Default shall have been cured or
waived; provided, however, that, except in the case of a
Default in the payment of the principal of (or premium, if any) or interest on
any Note, the Trustee shall be protected in withholding such notice if and so
long as the board of directors, the executive committee or a trust committee of
directors and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the interest of the Holders; and provided further that in the case of any
Default of the character specified in clause (iii) of Section 501 no such
notice to Holders shall be given until at least 30 days after the occurrence
thereof.

 

Section 603.                            Certain Rights of Trustee.

 

(a)                                  Subject to the provisions of TIA Sections
315(a) through 315(d):

 

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

 

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

 

(3)                                  whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee may, in the absence of
bad faith on its part, request and rely upon an Officers’ Certificate or an
Opinion of Counsel or both;

 

64

 

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

 

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

 

(6)                                  the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but
the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled
to examine the books, records and premises of the Company, personally or by
agent or attorney at the sole cost of the Company and shall incur no liability
or additional liability of any kind by reason of such inquiry or investigation;

 

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

 

(8)                                  the Trustee shall not be liable for any action taken,
suffered or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Indenture;

 

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

 

(10)                            the Trustee may request that the Company deliver an Officers’
certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers’ Certificate may be signed by any such person authorized to sign
an Officer’s Certificate, including any person specified as so authorized in
any such certificate previously delivered and not superseded.

 

Section 604.                            Trustee Not Responsible for
Recitals or Issuance of Notes.
The recitals contained herein and in the Notes, except for the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Notes and shall not be responsible for any statement of any
Person in this

 

65

 

Indenture, the Notes or any statement made in
connection with the sale of the Notes, provided
that the Trustee represents that it is duly authorized to execute
and deliver this Indenture, authenticate the Notes and perform its obligations
hereunder and that the statements made by it in a Statement of Eligibility on
Form T-1 supplied to the Company are true and accurate, subject to the
qualifications set forth therein. The Trustee shall not be accountable for the
use or application by the Company of Notes or the proceeds thereof.

 

Section 605.                            May Hold Notes. The Trustee, any Paying Agent, any Note
Registrar, any Authenticating Agent or any other agent of the Company or of the
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes and, subject to TIA Sections 310(b) and 311, may otherwise
deal with the Company with the same rights it would have if it were not
Trustee, Paying Agent, Note Registrar, Authenticating Agent or such other
agent.

 

Section 606.                            Money Held in Trust. All moneys received by the Trustee shall,
until used or applied as herein provided, be held in trust hereunder for the
purposes for which they were received, but need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no
liability for interest on any money received by it hereunder except as
otherwise agreed in writing with the Company.

 

Section 607.                            Compensation and
Reimbursement. The Company
agrees:

 

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

 

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

 

(3)                                  to indemnify each of the Trustee or any predecessor Trustee
(and their respective directors, officers, employees and agents) for, and to
hold it harmless against, any and all loss, damage, claim, liability or
expense, including taxes (other than taxes based on the income of the Trustee)
incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of this trust, including the
costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder.

 

The obligations of the Company under this
Section to compensate the Trustee, to pay or reimburse the Trustee for
expenses, disbursements and advances and to indemnify and hold harmless the
Trustee shall constitute additional indebtedness hereunder and shall survive
the satisfaction and discharge of this Indenture. As security for the
performance of such obligations of the Company, the Trustee shall have a lien
prior to the Holders of the Notes upon all property

 

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and funds held or collected by the Trustee as such,
except funds held in trust for the payment of principal of (and premium, if
any) or interest on particular Notes.

 

When the Trustee incurs expenses or renders
services in connection with an Event of Default specified in
Section 501(vi) or (vii), the expenses (including the reasonable charges
and expenses of its counsel) of and the compensation for such services are
intended to constitute expenses of administration under any applicable federal
or state bankruptcy, insolvency or other similar law.

 

The provisions of this Section shall
also apply to the Trustee in its capacity as Note Registrar and for so long as
the Trustee shall remain Note Registrar.

 

The provisions of this Section shall
survive the termination of this Indenture.

 

Section 608.                            Corporate Trustee Required;
Eligibility. There shall be
at all times a Trustee hereunder which shall be eligible to act as Trustee
under TIA Section 310(a)(1), and which shall have an office in the City of
New York and shall have a combined capital and surplus of at least $50,000,000.
If the Trustee does not have an office in the City of New York, the Trustee may
appoint an agent in the City of New York reasonably acceptable to the Company
to conduct any activities which the Trustee may be required under this
Indenture to conduct in the City of New York. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section 608, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 608, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.

 

Section 609.                            Resignation and Removal;
Appointment of Successor.

 

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

 

(b)                                 The Trustee may resign at any time by giving written notice
thereof to the Company. Upon receiving such notice of resignation, the Company
shall promptly appoint a successor trustee by written instrument executed by
authority of the Board of Directors, a copy of which shall be delivered to the
resigning Trustee and a copy to the successor trustee. If an instrument of
acceptance required by this Section shall not have been delivered to the
Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition at the expense of the Company any court of
competent jurisdiction for the appointment of a successor Trustee.

 

(c)                                  The Trustee may be removed at
any time by Act of the Holders of not less than a majority in principal amount
of the Outstanding Notes, delivered to the Trustee and to the Company. If an
instrument of acceptance required by this Section shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
removal, such Holders may petition

 

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at the expense of the Company any court of
competent jurisdiction for the appointment of a successor Trustee.

 

(d)                                 If at
any time:

 

(1)                                  the Trustee shall fail to comply with the provisions of TIA
Section 310(b) after written request therefor by the Company or by any
Holder who has been a bona fide Holder of a Note for at least six months, or

 

(2)                                  the Trustee shall cease to be eligible under Section 608
and shall fail to resign after written request therefor by the Company or by
any Holder who has been a bona fide Holder of a Note for at least six months,
or

 

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

 

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

 

(e)                                  If the Trustee shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Trustee for any cause, the Company, by a Board Resolution, shall promptly
appoint a successor Trustee. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
shall be appointed by Act of the Holders of a majority in principal amount of the
Outstanding Notes delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee shall have been so appointed
by the Company or the Holders and accepted appointment in the manner
hereinafter provided, any Holder who has been a bona fide Holder of a Note for
at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee.

 

(f)                                    The Company shall give notice of each
resignation and each removal of the Trustee and each appointment of a successor
Trustee to the Holders of Notes in the manner provided for in Section 106.
Each notice shall include the name of the successor Trustee and the address of
its Corporate Trust Office.

 

Section 610.                            Acceptance of Appointment by
Successor. Every successor
Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such

 

68

 

successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder. Upon request of
any such successor Trustee, the Company shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor
Trustee all such rights, powers and trusts.

 

No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article.

 

69

 

Section 611.                            Merger, Conversion, Consolidation
or Succession to Business.
Any corporation into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Notes shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Notes so authenticated with the same effect
as if such successor Trustee had itself authenticated such Notes. In case at
that time any of the Notes shall not have been authenticated, any successor
Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor Trustee. In all such cases such
certificates shall have the full force and effect which this Indenture provides
for the certificate of authentication of the Trustee shall have; provided,
however, that the right to adopt the certificate of authentication
of any predecessor Trustee or to authenticate Notes in the name of any
predecessor Trustee shall apply only to its successor or successors by merger,
conversion or consolidation.

 

Section 612.                            Trustee’s Application for
Instructions from the Company.
Any application by the Trustee for written instructions from the Company may,
at the option of the Trustee, set forth in writing any action proposed to be
taken or omitted by the Trustee under this Indenture and the date on and/or
after which such action shall be taken or such omission shall be effective. The
Trustee shall not be liable for any action taken by, or omission of, the
Trustee in accordance with a proposal included in such application (which date
shall not be less than three Business Days after the date any officer of the
Company actually receives such application, unless any such officer shall have
consented in writing to any earlier date) unless prior to taking any such
action (or the effective date in the case of an omission), the Trustee shall
have received written instructions in response to such application specifying
the action to be taken or omitted.

 

ARTICLE SEVEN

 

HOLDERS
LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 701.                            Company to Furnish Trustee
Names and Addresses.  The Company will furnish or cause to be
furnished to the Trustee

 

(a)                                  semi-annually, not more than 10 days after each Regular
Record Date, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders as of such Regular Record Date; and

 

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

 

70

 

Section 702.                            Disclosure of Names and
Addresses of Holders.  Every Holder of Notes, by receiving and
holding the same, agrees with the Company and the Trustee that none of the
Company or the Trustee or any agent of either of them shall be held accountable
by reason of the disclosure of any such information as to the names and
addresses of the Holders in accordance with TIA Section 312, regardless of
the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request
made under TIA Section 312(b).

 

Section 703.                            Reports by Trustee.  Within
60 days after May 15 of each year commencing with May 15, 2005, the Trustee
shall transmit to the Holders, as their names and addresses appear on the Note
Register, a brief report dated as of such May 15, in accordance with, and to
the extent required under, Section 313 of the TIA.

 

ARTICLE EIGHT

 

MERGER,
CONSOLIDATION, OR SALE OF ALL OR SUBSTANTIALLY ALL ASSETS

 

Section 801.                            Company May Consolidate,
etc., Only on Certain Terms.

 

(1)                                  the Company shall not consolidate or merge with or into or
wind up into (whether or not the Company is the surviving corporation), or
sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its properties or assets in one or more related
transactions, to any Person unless (i) the Company is the surviving corporation
or the Person formed by or surviving any such consolidation or merger (if other
than the Company) or to which such sale, assignment, transfer, lease,
conveyance or other disposition will have been made is a corporation organized
or existing under the laws of the United States, any state thereof, the District
of Columbia, or any territory thereof (the Company or such Person, as the case
may be, being herein called the “Successor Company”); (ii) the Successor
Company (if other than the Company) expressly assumes all the obligations of
the Company under this Indenture and the Notes pursuant to a supplemental
indenture or other documents or instruments in form reasonably satisfactory to
the Trustee; (iii) immediately after such transaction no Default or Event of
Default shall have occurred and be continuing; (iv) immediately after giving
pro forma effect to such transaction, as if such transaction had occurred at
the beginning of the applicable four-quarter period, (A) the Successor Company
would be permitted to incur at least $1.00 of additional Indebtedness under the
provisions of paragraph (a) of Section 1010 or (B) the Fixed Charge
Coverage Ratio for the Successor Company and its Restricted Subsidiaries would
be greater than such Ratio for the Company and its Restricted Subsidiaries
immediately prior to such transaction; (v) each Guarantor, if any, unless it is
the other party to the transactions described above, shall have by supplemental
indenture confirmed that its Guarantee shall apply to such Person’s obligations
under this Indenture and the Notes; and (vi) 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. The Successor Company shall succeed to, and be
substituted for, the Company under this Indenture and the Notes.
Notwithstanding the foregoing clause (iv), (a) any Restricted Subsidiary may
consolidate with, merge into or transfer all or part of its properties and
assets to the Company and (b) the Company may merge with an Affiliate
incorporated solely for the purpose

 

71

 

of reincorporating the
Company in another State of the United States so long as the amount of
Indebtedness of the Company and its Restricted Subsidiaries is not increased
thereby.

 

(2)                                  Each Guarantor, if any, shall not, and the Company shall not
permit a Guarantor to, consolidate or merge with or into or wind up into
(whether or not such Guarantor is the surviving corporation), or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions, to any Person unless
(i) such Guarantor is the surviving corporation or the Person formed by or
surviving any such consolidation or merger (if other than such Guarantor) or to
which such sale, assignment, transfer, lease, conveyance or other disposition
will have been made is a corporation organized or existing under the laws of
the United States, any state thereof, the District of Columbia, or any
territory thereof (such Guarantor or such Person, as the case may be, being
herein called the “Successor Guarantor”); (ii) the Successor Guarantor
(if other than such Guarantor) expressly assumes all the obligations of such
Guarantor under this Indenture and such Guarantor’s Guarantee pursuant to a
supplemental indenture or other documents or instruments in form reasonably
satisfactory to the Trustee; (iii) immediately after such transaction no
Default or Event of Default shall have occurred and be continuing; and (iv) the
Guarantor shall have delivered or caused to be 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. The Successor Guarantor shall succeed to, and be
substituted for, such Guarantor under this Indenture and such Guarantor’s
Guarantee.

 

Section 802.                            Successor Substituted. Upon any consolidation of the Company with
or merger of the Company with or into or wind up into any other corporation or
any sale, assignment, conveyance, transfer, lease or other disposition of the
properties and assets of the Company substantially as an entirety to any Person
in accordance with Section 801, the successor Person formed by such
consolidation or into which the Company is merged or wound up or to which such
sale, assignment, conveyance, transfer, lease or other disposition is made will
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person had been named as the Company therein, and thereafter (except in the
case of a sale, assignment, transfer, lease, conveyance or other disposition)
the predecessor corporation will be relieved of all further obligations and
covenants under this Indenture and the Notes; provided
that, solely with respect to calculating amounts described in
clauses (A), (B) and (C) of paragraph (a) of Section 1009, any such
surviving entity to the Company shall only be deemed to have succeeded to and
be substituted for the Company with respect to periods subsequent to the
effective time of such merger, consolidation, combination or transfer of assets.

 

ARTICLE NINE

 

SUPPLEMENTS
AND AMENDMENTS TO INDENTURE

 

Section 901.                            Supplemental Indentures
without Consent of Holders.
Without the consent of any Holders of Notes, the Company, any Guarantor (with
respect to a Guarantee to which it is a party), when authorized by a Board
Resolution, and the Trustee may amend or supplement this Indenture, any
Guarantee or the Notes: 

 

72

 

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

 

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

 

(3)                                  to comply with Article Eight hereof to provide for the
assumption of the Company’s
or any Guarantor’s obligations to Holders of such Notes; 

 

(4)                                  to otherwise provide for the assumption of the Company’s or
any Guarantor’s obligations to Holders of such Notes;

 

(5)                                  to make any change that would provide any additional rights
or benefits to the Holders of the Notes or that does not adversely affect the
legal rights hereunder of any such Holder;

 

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

 

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

 

(8)                                  to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee pursuant to the requirements of
Section 610;

 

(9)                                  to add a Guarantor hereunder or to release a Guarantor from
its Guarantee as permitted under the terms of this Indenture; or

 

(10)                            to make any change to the provisions of Article XIII
that would limit or terminate the benefits available to any holder of Senior
Indebtedness under such provisions; provided that if the rights of the holders
of Senior Indebtedness are adversely affected, such holders of Senior
Indebtedness must consent thereto.

 

Section 902.                            Supplemental Indentures with
Consent of Holders.  With the consent of the Holders of at least a
majority in principal amount of the Outstanding Notes (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, the Notes), by Act of said Holders delivered to the
Company and the Trustee, the Company, when authorized by a Board Resolution,
and the Trustee may enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders under this Indenture; provided,
however, that no such supplemental indenture shall, without the
consent of each Holder affected thereby (with respect to any Notes held by a
nonconsenting Holder of the Notes):

 

(1)                                  reduce the principal amount of the Notes whose Holders must
consent to an amendment, supplement or waiver;

 

73

 

(2)                                  reduce the principal of or change or have the effect of
changing the Stated Maturity of any such Note or alter or waive the provisions
with respect to the redemption of the Notes (other than Sections 1016 and 1017
and the defined terms used therein);

 

(3)                                  reduce the rate of or change the time for payment of interest
on any Note;

 

(4)                                  waive a Default or Event of Default in the payment of principal
of, or premium, if any, or interest on the Notes (except a rescission of
acceleration of the Notes by the Holders of at least a majority in aggregate
principal amount of such Notes Outstanding and a waiver of the payment default
that resulted from such acceleration), or in respect of a covenant or provision
contained in this Indenture or any Guarantee which cannot be amended or
modified without the consent of all Holders;

 

(5)                                  make any Note payable in currency other than that stated in
such Notes;

 

(6)                                  make any change in the provisions of this Indenture relating
to waivers of past Defaults or the rights of Holders of the Notes to receive
payments of principal of or premium, if any, or interest on the Notes;

 

(7)                                  make any change in the foregoing amendment and waiver
provisions;

 

(8)                                  impair the right of any Holder of the Notes to receive
payment of principal of, or interest or Liquidated Damages on, such Holder’s
Notes on or after the due dates relating thereto or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes; or

 

(9)                                  make any change in the subordination provisions of this
Indenture that would adversely affect the Holders of the Notes.

 

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

 

Section 903.                            Execution of Supplemental
Indentures. In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and shall
be fully protected in relying upon, an Opinion of Counsel and an Officers’ Certificate
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustees own
rights, duties or immunities under this Indenture or otherwise.

 

Section 904.                            Effect of Supplemental
Indentures. Upon the
execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of Notes
theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby (except as provided in Section 902).

 

74

 

Section 905.                            Conformity with Trust
Indenture Act. Every
supplemental indenture executed pursuant to the Article shall conform to
the requirements of the Trust Indenture Act as then in effect.

 

Section 906.                            Reference in Notes to
Supplemental Indentures.
Notes authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Notes so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for Outstanding
Notes.

 

Section 907.                            Notice of Supplemental
Indentures. Promptly after
the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of Section 902, the Company shall give notice
thereof to the Holders of each Outstanding Note affected, in the manner
provided for in Section 106, setting forth in general terms the substance
of such supplemental indenture.

 

Section 908.                            Effect on Senior
Indebtedness.  No supplemental indenture shall adversely
affect the rights of any holders of Senior Indebtedness under
Article Thirteen unless the requisite holders of each issue of Senior
Indebtedness affected thereby shall have consented to such supplemental
indenture.

 

ARTICLE TEN

 

COVENANTS

 

Section 1001.                     Payment
of Principal, Premium, if any, and Interest. The Company shall pay or cause
to be paid the principal of, premium, if any, interest, and Liquidated Damages,
if any, on the Notes on the dates and in the manner provided in the Notes.
Principal, premium, if any, interest, and Liquidated Damages, if any, shall be
considered paid on the date due if the Paying Agent, if other than the Company
or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date
money deposited by the Company in immediately available funds and designated
for and sufficient to pay all principal, premium, if any, interest and
Liquidated Damages, if any, then due.

 

Section 1002.                     Maintenance of Office or
Agency. The Company shall
maintain in the City of New York, an office or agency (which may be an office
of the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where
Notes may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture
may be served. The Company shall give prompt written notice to the Trustee of
the location, and any change in the location, of such office or agency. If at
any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee.

 

75

 

The Company may also from time to time
designate one or more other offices or agencies where the Notes may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in the City of New York for such purposes. The
Company shall give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other office or
agency.

 

The Company hereby designates the Corporate
Trust Office of the Trustee as one such office or agency of the Company in
accordance with Section 305.

 

Section 1003.                     Money for Note Payments to
be Held in Trust. If the
Company shall at any time act as its own Paying Agent, it will, on or before
each due date of the principal of (or premium, if any) or interest on any of
the Notes, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal of (or premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee
of its action or failure to so act.

 

Whenever the Company shall have one or more
Paying Agents for the Notes, it will, on or before each due date of the
principal of (or premium, if any) or interest on any Notes, deposit with a
Paying Agent a sum in same day funds (or New York Clearing House funds if such
deposit is made prior to the date on which such deposit is required to be made)
sufficient to pay the principal (and premium, if any) or interest so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of such action or any
failure to so act. The Company will cause each Paying Agent (other than the
Trustee) to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent will:

 

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

 

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

 

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

 

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

 

76

 

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

 

Section 1004.                     Corporate Existence. Subject to Article Eight hereof, the
Company shall do or cause to be done all things necessary to preserve and keep
in full force and effect (i) its corporate existence, and the corporate,
partnership or other existence of each of its Restricted Subsidiaries, in
accordance with the respective organizational documents (as the same may be
amended from time to time) of the Company or any such Restricted Subsidiary and
(ii) the rights (charter and statutory), licenses and franchises of the Company
and its Restricted Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Restricted Subsidiaries, if the
Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and its Restricted
Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any
material respect to the Holders of the Notes.

 

Section 1005.                     Taxes. The Company shall pay, and shall cause each
of its Subsidiaries to pay, prior to delinquency, all material taxes,
assessments, and governmental charges except such as are contested in good
faith and by appropriate proceedings or where the failure to effect such
payment is not adverse in any material respect to the Holders of the Notes.

 

Section 1006.                     Maintenance of Properties. The Company will cause all material properties
owned by the Company or any Restricted Subsidiary or used or held for use in
the conduct of its business or the business of any Restricted Subsidiary to be
maintained and kept in normal condition, repair and working order and will
cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so
that the business carried on in connection therewith may be properly conducted
at all times; provided, however, that nothing in this
Section shall prevent the Company or any of its Restricted Subsidiaries
from discontinuing the maintenance of any of such properties if such
discontinuance is, in the judgment of the Company, desirable in the conduct of
its business or the business of any Restricted Subsidiary and not adverse in
any material respect to the Holders.

 

Section 1007.                     Insurance. To the extent available at commercially
reasonable rates, the Company will maintain, and will cause its Subsidiaries to
maintain, insurance with responsible carriers against such risks and in such
amounts, and with such deductibles, retentions,

 

77

 

self-insured amounts and co-insurance provisions, as
are customarily carried by similar businesses, of similar size, including
professional and general liability, property and casualty loss, workers’
compensation and interruption of business insurance.

 

Section 1008.                     Compliance with Laws. The Company shall comply, and shall cause
each of its Subsidiaries to comply, with all applicable statutes, rules,
regulations, orders and restrictions of the United States of America, all
states and municipalities thereof, and of any governmental regulatory
authority, in respect of the conduct of their respective businesses and the
ownership of their respective properties, except for such noncompliances as
would not in the aggregate have a material adverse effect on the financial
condition or results of operations of the Company and its Subsidiaries, taken
as a whole.

 

Section 1009.                     Limitation on Restricted
Payments.

 

(a)                                  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly: (i) declare or
pay any dividend or make any distribution on account of the Company’s or any of
its Restricted Subsidiaries’ Equity Interests, including any dividend or
distribution payable in connection with any merger or consolidation (other than
(A) dividends or distributions by the Company payable in Equity Interests
(other than Disqualified Stock) of the Company or (B) dividends or
distributions by a Restricted Subsidiary so long as, in the case of any
dividend or distribution payable on or in respect of any class or series of
securities issued by a Subsidiary other than a Wholly Owned Subsidiary, the
Company or a Restricted Subsidiary receives at least its pro rata share of such dividend or
distribution in accordance with its Equity Interests in such class or series of
securities); (ii) purchase, redeem, defease or otherwise acquire or retire for
value any Equity Interests of the Company or any direct or indirect parent of
the Company; (iii) make any principal payment on, or redeem, repurchase,
defease or otherwise acquire or retire for value in each case, prior to any
scheduled repayment, or maturity, any Subordinated Indebtedness (other than
Indebtedness permitted under clauses (vii) and (ix) of Section 1010(b)
hereof); or (iv) make any Restricted Investment (all such payments and other
actions set forth in clauses (i) through (iv) above being collectively referred
to as “Restricted Payments”), unless, at the time of such Restricted
Payment:

 

(A)                              no Default or Event of Default shall have occurred and be
continuing or would occur as a consequence thereof;

 

(B)                                immediately before and immediately after giving effect to
such transaction on a pro forma basis, the Company could incur $1.00 of
additional Indebtedness under the provisions of paragraph (a) of
Section 1010; and

 

(C)                                such Restricted Payment, together with the aggregate amount
of all other Restricted Payments made by the Company and its Restricted
Subsidiaries after April 10, 2001 (including Restricted Payments permitted
by clauses (i), (v) (only to the extent that amounts paid pursuant to such
clause are greater than amounts that would have been paid pursuant to such
clause if $5.0 million and $10.0 million were substituted in such clause for
$10.0 million and $20.0 million, respectively), (vi) (only to the extent of
one-half of such amounts), (ix) and (x) of paragraph (b) of this Section 1009,
but excluding all other Restricted Payments permitted by paragraph (b) of this
Section 1009), is less than the

 

78

 

sum of (i) 50% of the Consolidated Net Income of the Company for the
period (taken as one accounting period) from July 1, 2000 to the end of
the Company’s most recently ended fiscal quarter for which internal financial
statements are available at the time of such Restricted Payment (or, in the
case such Consolidated Net Income for such period is a deficit, minus 100% of
such deficit), plus (ii) 100% of the aggregate net cash proceeds and the
fair market value, as determined in good faith by the Board of Directors, of
marketable securities received by the Company since immediately after April 10,
2001 from the issue or sale of Equity Interests of the Company (excluding
Excluded Contributions) or debt securities of the Company issued or sold after
April 10, 2001 that have been converted into such Equity Interests
(including Retired Capital Stock) of the Company (other than Refunding Capital
Stock (as defined below), or Equity Interests or convertible debt securities of
the Company sold to a Restricted Subsidiary of the Company and other than
Disqualified Stock or debt securities that have been converted into
Disqualified Stock), plus (iii) the aggregate amount by which
Indebtedness (other than Subordinated Indebtedness) of the Company or any
Restricted Subsidiary is reduced on the Company’s consolidated balance sheet on
or after April 10, 2001 upon the conversion or exchange of any debt
securities issued or sold on or prior to April 10, 2001 that are
convertible into Equity Interests of the Company (other than Refunding Capital
Stock (as defined below) or Equity Interests or convertible debt securities of
the Company sold to a Restricted Subsidiary of the Company and other than
Disqualified Stock or debt securities that have been converted into
Disqualified Stock), plus (iv) 100% of the aggregate amount of cash and marketable
securities contributed to the capital of the Company following April 10,
2001 (excluding Excluded Contributions), plus (v) 100% of the aggregate
amount received in cash and the fair market value of marketable securities
(other than Restricted Investments) received after April 10, 2001 from (A)
the sale or other disposition (other than to the Company or a Restricted
Subsidiary) of Restricted Investments made by the Company and its Restricted
Subsidiaries after April 10, 2001 or (B) a dividend from, or the sale (other
than to the Company or a Restricted Subsidiary) of the stock of, an
Unrestricted Subsidiary after April 10, 2001 (other than an Unrestricted
Subsidiary the Investment in which was made by the Company or a Restricted
Subsidiary after April 10, 2001 pursuant to clauses (vii) or (xi) of
paragraph (b) of this Section 1009).

 

(b)                                 The foregoing provisions will not prohibit:

 

(i)                                     the payment of any dividend within 60 days
after the date of declaration thereof, if at the date of declaration such
payment would have complied with the provisions of this Indenture;

 

(ii)                                  (A) the redemption, repurchase,
retirement or other acquisition of any Equity Interests (the “Retired
Capital Stock”) or Subordinated Indebtedness of the Company in exchange
for, or out of the proceeds of the substantially concurrent sale (other than to
a Restricted Subsidiary) of, Equity Interests of the Company (other than any
Disqualified Stock) (the “Refunding Capital Stock”), and (B) if
immediately prior to the retirement of Retired Capital Stock, the declaration
and payment of dividends thereon was permitted under clause (vi) of this
paragraph (b), the declaration and payment of dividends on the Refunding
Capital Stock in an aggregate amount per year no greater than the aggregate
amount of dividends per annum that was declarable and payable on such Retired
Capital

 

79

 

Stock immediately prior to such retirement; provided, however, that
at the time of the declaration of any such dividends, no Default or Event of Default
shall have occurred and be continuing or would occur as a consequence thereof;

 

(iii)                               distributions
or payments of Receivables Fees;

 

(iv)                              the redemption, repurchase or other acquisition or retirement
of Subordinated Indebtedness of the Company made by exchange for, or out of the
proceeds of the substantially concurrent sale of, new Indebtedness of the
Company so long as (A) the principal amount of such new Indebtedness does not
exceed the principal amount of the Subordinated Indebtedness being so redeemed,
repurchased, acquired or retired for value (plus the amount of any premium
required to be paid under the terms of the instrument governing the
Subordinated Indebtedness being so redeemed, repurchased, acquired or retired,
and fees and expenses payable in connection with such redemption, repurchase,
acquisition or retirement), (B) such Indebtedness is subordinated to the Senior
Indebtedness and the Notes at least to the same extent as such Subordinated
Indebtedness so purchased, exchanged, redeemed, repurchased, acquired or
retired for value, (C) such Indebtedness has a final scheduled maturity date
equal to or later than the final scheduled maturity date of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired and (D) such
Indebtedness has a Weighted Average Life to Maturity equal to or greater than
the remaining Weighted Average Life to Maturity of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired;

 

(v)                                 a Restricted Payment to pay for the repurchase, retirement or
other acquisition or retirement for value of common Equity Interests of the
Company held by any future, present or former employee, director or consultant
of the Company or any Subsidiary pursuant to any management equity plan, stockholder
agreement, or stock option plan or any other management or employee benefit
plan or agreement; provided, however, that the aggregate Restricted
Payments made under this clause (v) does not exceed in any calendar year $10.0
million (with unused amounts in any calendar year being carried over to
succeeding calendar years subject to a maximum (without giving effect to the
following proviso) of $20.0 million in any calendar year); provided further that such amount in any
calendar year may be increased by an amount not to exceed (i) the cash proceeds
from the sale of Equity Interests of the Company to members of management,
directors or consultants of the Company and its Subsidiaries that occurs after
April 10, 2001 (to the extent the cash proceeds from the sale of such
Equity Interest have not otherwise been applied to the payment of Restricted
Payments by virtue of clause (C) of paragraph (a) of this Section 1009)
plus (ii) the cash proceeds of key man life insurance policies received by the
Company and its Restricted Subsidiaries after April 10, 2001 less (iii)
the amount of any Restricted Payments made after April 10, 2001 pursuant
to clauses (i) and (ii) of this subparagraph (v); and provided further that cancellation of
Indebtedness owing to the Company from members of management of the Company or
any of its Restricted Subsidiaries in connection with a repurchase of Equity
Interests of the Company will not be deemed to constitute a Restricted Payment
for purposes of this Section 1009 or any other provision of this
Indenture;

 

80

 

(vi)                              the declaration and payment of dividends to holders of any
class or series of Designated Preferred Stock (other than Disqualified Stock)
issued after the Issuance Date (including, without limitation, the declaration
and payment of dividends on Refunding Capital Stock in excess of the dividends
declarable and payable thereon pursuant to clause (ii)); provided,
however, that for the most recently ended four full fiscal quarters
for which internal financial statements are available immediately preceding the
date of issuance of such Designated Preferred Stock, after giving effect to
such issuance on a pro forma basis, the Company and its Restricted Subsidiaries
would have had a Fixed Charge Coverage Ratio of at least 1.75 to 1.00;

 

(vii)                                   Investments in Unrestricted Subsidiaries
having an aggregate fair market value, taken together with all other
Investments made since April 10, 2001 pursuant to this clause (vii) that
are at that time outstanding, not to exceed $45.0 million at the time of such
Investment (with the fair market value of each Investment being measured at the
time made and without giving effect to subsequent changes in value);

 

(viii)                                     repurchases of Equity Interests deemed to
occur upon exercise of stock options if such Equity Interests represent a
portion of the exercise price of such options;

 

(ix)                                the payment of dividends on the Company’s Common Stock,
following the first public offering of the Company’s Common Stock after
April 10, 2001, of up to 6% per annum of the net proceeds received by the
Company in such public offering, other than public offerings with respect to
the Company’s Common Stock registered on Form S-8;

 

(x)                                   a Restricted Payment to pay for the repurchase, retirement or
other acquisition or retirement for value of Equity Interests of the Company
which are not held by KKR or any of its affiliates (including any Equity
Interests issued in respect of such Equity Interests as a result of a stock
split, recapitalization, merger, combination, consolidation or otherwise, but
excluding any management equity plan or stock option plan or similar
agreement), provided that the
aggregate Restricted Payments made since April 10, 2001 under this clause
(x) shall not exceed $50 million, provided
further that notwithstanding the foregoing proviso, the Company
shall be permitted to make Restricted Payments under this clause (x) only if
after giving effect thereto, the Company would be permitted to incur at least
$1.00 of additional Indebtedness under the provisions of Section 1010(a)
hereof;

 

(xi)                                Investments in Unrestricted Subsidiaries that are made with
Excluded Contributions;

 

(xii)                             the
payment of dividends on Disqualified Stock which is issued in accordance with
Section 1010 hereof; and

 

(xiii)                          other
Restricted Payments since April 10, 2001 in an aggregate amount not to
exceed $25.0 million;

 

provided, however,
that at the time of, and after giving effect to, any Restricted Payment
permitted under clauses (v), (vi), (vii), (ix), (x), (xi), (xii) and (xiii), no
Default or Event of Default

 

81

 

shall have occurred and be continuing or would occur
as a consequence thereof; and provided
further that for purposes of determining the aggregate amount
expended for Restricted Payments in accordance with clause (C) of paragraph (a)
of this Section 1009, only the amounts expended under clauses (i), (v)
(only to the extent that amounts paid pursuant to such clause are greater than
amounts that would have been paid pursuant to such clause if $5.0 million and
$10.0 million were substituted in such clause for $10.0 million and $20.0
million, respectively), (vi) (only to the extent of one-half of such amounts),
(ix) and (x) shall be included.

 

(c)                                  In the future, the Company will not permit
any Unrestricted Subsidiary to become a Restricted Subsidiary except pursuant
to the second to last sentence of the definition of “Unrestricted Subsidiary.”
For purposes of designating any Restricted Subsidiary as an Unrestricted
Subsidiary, all outstanding Investments by the Company and its Restricted
Subsidiaries (except to the extent repaid) in the Subsidiary so designated will
be deemed to be Restricted Payments in an amount determined as set forth in the
last sentence of the definition of “Investments.” Such designation will only be
permitted if an Investment in such amount would be permitted at such time and
if such Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary. Unrestricted Subsidiaries will not be subject to any of the
restrictive covenants set forth in this Indenture.

 

Section 1010.                     Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock.

 

(a)                                  The Company shall not, and will not permit
any of its Restricted Subsidiaries to, directly or indirectly, create, incur,
issue, assume, guarantee or otherwise become directly or indirectly liable,
contingently or otherwise, with respect to (collectively, “Incur” and
collectively, an “Incurrence”) any Indebtedness (including Acquired
Indebtedness) and the Company will not issue any shares of Disqualified Stock
and will not permit any of its Restricted Subsidiaries to issue any shares of
preferred stock; provided, however, that the Company may incur
Indebtedness (including Acquired Indebtedness) or issue shares of Disqualified
Stock if the Fixed Charge Coverage Ratio for the Company’s and the Restricted
Subsidiaries’ most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Disqualified Stock is issued would
have been at least 2.00 to 1.00, determined on a pro forma basis (including a
pro forma application of the net proceeds therefrom), as if the additional
Indebtedness had been incurred, or the Disqualified Stock had been issued, as
the case may be, and the application of proceeds therefrom had occurred at the
beginning of such four-quarter period.

 

(b)                                 Section 1010(a) shall not apply to:

 

(i)                                     the
incurrence by the Company or its Restricted Subsidiaries of Indebtedness under
Credit Facilities and the issuance and creation of letters of credit and
banker’s acceptances thereunder (with letters of credit and banker’s
acceptances being deemed to have a principal amount equal to the face amount
thereof) up to an aggregate principal amount of $650.0 million outstanding at
any one time;

 

(ii)                                  the
incurrence by the Company of Indebtedness represented by the Notes;

 

82

 

(iii)                               the Existing Indebtedness (other than Indebtedness described
in clauses (i) and (ii)); 

 

(iv)                              Indebtedness (including Capitalized Lease Obligations)
incurred by the Company or any of its Restricted
Subsidiaries, to finance the purchase, lease 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) in an aggregate principal
amount which, when aggregated with the principal amount of all other
Indebtedness then outstanding and incurred pursuant to this clause (iv) and
including all Refinancing Indebtedness incurred to refund, refinance or replace
any other Indebtedness incurred pursuant to this clause (iv), does not exceed
the greater of (x) $50.0 million or (y) 15% of Total Assets; 

 

(v)                                 Indebtedness incurred by the Company or any of its Restricted
Subsidiaries constituting reimbursement obligations with respect to letters of
credit issued in the ordinary course of business, including without limitation
letters of credit in respect of workers’ compensation claims or self-insurance,
or other Indebtedness with respect to reimbursement type obligations regarding
workers’ compensation claims; provided, however, that upon the drawing of such letters
of credit or the incurrence of such Indebtedness, such obligations are
reimbursed within 30 days following such drawing or incurrence;

 

(vi)                              Indebtedness arising from agreements of the Company or a
Restricted Subsidiary providing for indemnification, adjustment of purchase
price or similar obligations, in each case, incurred or assumed in connection
with the acquisition or disposition of any business, assets or a Subsidiary,
other than guarantees of Indebtedness incurred by any Person acquiring all or
any portion of such business, assets or a Subsidiary for the purpose of
financing such acquisition; provided, however, that (A) such Indebtedness is
not reflected on the balance sheet of the Company or any Restricted Subsidiary
(contingent obligations referred to in a footnote to financial statements and
not otherwise reflected on the balance sheet will not be deemed to be reflected
on such balance sheet for purposes of this clause (A)) and (B) the maximum
assumable liability in respect of all such Indebtedness shall at no time exceed
the gross proceeds including noncash proceeds (the fair market value of such
noncash proceeds being measured at the time received and without giving effect
to any subsequent changes in value) actually received by the Company and its
Restricted Subsidiaries in connection with such disposition;

 

(vii)                           Indebtedness
of the Company to a Restricted Subsidiary; provided
that any such Indebtedness is made pursuant to an intercompany note
and is subordinated in right of payment to the Notes; provided further that any subsequent
issuance or transfer of any Capital Stock or any other event which will result
in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any
other subsequent transfer of any such Indebtedness (except to the Company or
another Restricted Subsidiary) shall be deemed, in each case to be an
incurrence of such Indebtedness;

 

(viii)                        shares
of preferred stock of a Restricted Subsidiary issued to the Company or another
Restricted Subsidiary; provided
that any subsequent issuance or transfer of any

 

83

 

Capital
Stock or any other event which results in any such Restricted Subsidiary
ceasing to be a Restricted Subsidiary or any other subsequent transfer of any
such shares of preferred stock (except to the Company or another Restricted
Subsidiary) shall be deemed, in each case to be an issuance of shares of
preferred stock;

 

(ix)                                Indebtedness of a Restricted Subsidiary to the Company or
another Restricted Subsidiary; provided
that (A) any such Indebtedness is made pursuant to an intercompany note and (B)
if a Guarantor incurs such Indebtedness from a Restricted Subsidiary that is
not a Guarantor such Indebtedness is subordinated in right of payment to the
Guarantee of such Guarantor; provided
further that any subsequent transfer of any such Indebtedness (except
to the Company or another Restricted Subsidiary) or any other event which
results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary
shall be deemed, in each case to be an incurrence of such Indebtedness;

 

(x)                                   Hedging Obligations that are incurred in the ordinary course
of business (A) for the purpose of fixing or hedging interest rate risk with
respect to any Indebtedness that is permitted by the terms of this Indenture to
be outstanding or (B) for the purpose of fixing or hedging currency exchange
rate risk with respect to any currency exchanges;

 

(xi)                                obligations in respect of performance and surety bonds and
completion guarantees provided by the Company or any Restricted Subsidiary in
the ordinary course of business;

 

(xii)                             Indebtedness
of any Guarantor in respect of such Guarantor’s Guarantee;

 

(xiii)                          Indebtedness
of the Company and any of its Restricted Subsidiaries not otherwise permitted
hereunder in an aggregate principal amount, which when aggregated with the
principal amount of all other Indebtedness then outstanding and incurred
pursuant to this clause (xiii), does not exceed $150.0 million at any one time
outstanding; provided, however, that Indebtedness of a
Restricted Subsidiary organized under the laws of the United States, any state
thereof, the District of Columbia or any territory thereof, which when
aggregated with the principal amount of all other Indebtedness of such
Restricted Subsidiaries then outstanding and incurred pursuant to this clause
(xiii), does not exceed $60.0 million at any one time outstanding;

 

(xiv)                         (A)
any guarantee by the Company of Indebtedness or other obligations of any of its
Restricted Subsidiaries so long as the incurrence of such Indebtedness incurred
by such Restricted Subsidiary is permitted under the terms of this Indenture,
(B) any Excluded Guarantee (as defined in Section 1014 hereof) of a
Restricted Subsidiary and (C) any Guarantee by a Restricted Subsidiary so long
as the Indebtedness being guaranteed was permitted to be incurred under this
Section 1010 and such Restricted Subsidiary complies with
Section 1014 hereof;

 

(xv)                            the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
which serves to refund, refinance or restructure any Indebtedness incurred as
permitted under paragraph (a) of this Section 1010 and clauses (ii),
(iii), (iv) and (xii) or clause (xvi) of this paragraph (b), or any
Indebtedness issued to so refund, refinance or

 

84

 

restructure such Indebtedness
including additional Indebtedness incurred to pay premiums, expenses and fees
in connection therewith (the “Refinancing Indebtedness”) prior to its
respective maturity; provided, however, that such Refinancing
Indebtedness (A) has a Weighted Average Life to Maturity at the time such
Refinancing Indebtedness is incurred which is not less than the remaining
Weighted Average Life to Maturity of Indebtedness being refunded or refinanced,
(B) to the extent such Refinancing Indebtedness refinances Indebtedness
subordinated or pari passu to the
Notes, such Refinancing Indebtedness is subordinated or pari passu to the Notes at least to the
same extent as the Indebtedness being refinanced or refunded and (C) shall not
include (x) Indebtedness of a Subsidiary that refinances Indebtedness of the
Company or Indebtedness of a non-Guarantor that refinances Indebtedness of a
Guarantor or (y) Indebtedness of the Company or a Restricted Subsidiary that
refinances Indebtedness of an Unrestricted Subsidiary; and provided further that subclauses (A) and
(B) of this clause (xv) will not apply to any refunding or refinancing of any
Senior Indebtedness;

 

(xvi)                         Indebtedness
or Disqualified Stock of Persons that are acquired by the Company or any of its
Restricted Subsidiaries or merged into a Restricted Subsidiary in accordance
with the terms of this Indenture; provided
that such Indebtedness or Disqualified Stock is not incurred in contemplation
of such acquisition or merger; and provided
further that after giving effect to such acquisition, either (A) the
Company would be permitted to incur at least $1.00 of additional Indebtedness
under the provisions of Section 1010(a) or (B) the Fixed Charge Coverage
Ratio is greater than immediately prior to such acquisition or merger; and

 

(xvii)                      guarantees
by the Company or its Restricted Subsidiaries of the obligations of joint
ventures of the Company or its Restricted Subsidiaries; provided that the maximum aggregate amount
of all such guaranteed obligations shall at not time exceed $25 million.

 

For purposes of determining compliance with
this covenant, in the event that an item of Indebtedness meets the criteria of
more than one of the categories of permitted Indebtedness described in clauses
(i) through (xvii) above or is entitled to be incurred pursuant to paragraph
(a) of this Section 1010, the Company shall, in its sole discretion,
classify and may later reclassify such item of Indebtedness in any manner that
complies with this covenant and such item of Indebtedness will be treated as
having been incurred pursuant to only one of such clauses or pursuant to
paragraph (a) of this Section 1010. Accrual of interest, the accretion of
accreted value and the payment of interest in the form of additional
Indebtedness will not be deemed to be an incurrence of Indebtedness for
purposes of this Section 1010.

 

Section 1011.                     Liens.

 

(a)   The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly create, incur, assume or suffer to exist any Lien that
secures obligations under any Pari Passu Indebtedness or Subordinated
Indebtedness on any asset or property of the Company or such Restricted
Subsidiary, or any income or profits therefrom, or assign or convey any right
to receive income therefrom, unless (i) if such Lien secures Pari Passu
Indebtedness, the Notes are equally and ratably secured with the obligations so
secured or (ii) if such Lien secures

 

85

 

Subordinated
Indebtedness, the Notes are secured by a Lien on the same property, assets,
income or profits which is senior to such Lien to the same extent as the Notes
are senior to such Subordinated Indebtedness, in each case until such time as
such obligations are no longer secured by a Lien.

 

(b)                                 No Guarantor shall directly or indirectly create, incur,
assume or suffer to exist any Lien that secures obligations under any Pari
Passu Indebtedness or Subordinated Indebtedness of such Guarantor on any asset
or property of such Guarantor or any income or profits therefrom, or assign or
convey any right to receive income therefrom, unless (i) if such Lien secures
Pari Passu Indebtedness, the Guarantee of such Guarantor is equally and ratably
secured with the obligations so secured or (ii) if such Lien secures
Subordinated Indebtedness, the Guarantee of such Guarantor is secured by a Lien
on the same property, assets, income or profits which is senior to such Lien to
the same extent as the Guarantee of such Guarantor is senior to such
Subordinated Indebtedness, in each case until such time as such obligations are
no longer secured by a Lien.

 

(c)                                  Any Lien created, incurred or existing in respect of unfunded
pension obligations or any similar obligations of the Company or any of its
Restricted Subsidiaries or any Guarantor shall not be deemed to give rise to
any obligations under this Section 1011.

 

Section 1012.                     Transactions with Affiliates.

 

(a)                                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or
otherwise dispose of any of its properties or assets to, or purchase any
property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any Affiliate (each of the foregoing, an “Affiliate Transaction”)
involving aggregate consideration in excess of $5.0 million, unless (i) such
Affiliate Transaction is on terms that are not materially less favorable to the
Company or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Company or such Restricted
Subsidiary with an unrelated Person and (ii) the Company delivers to the
Trustee with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in excess of 10.0
million, a resolution adopted by the majority of the Board of Directors of the
Company approving such Affiliate Transaction and set forth in an Officers’
Certificate certifying that such Affiliate Transaction complies with clause (i)
above.

 

(b)                                 Notwithstanding Section 1012(a), this Section 1012
shall not apply to the following: (i) transactions between or among the Company
and/or any of its Restricted Subsidiaries; (ii) Restricted Payments permitted
by Section 1009 hereof or Permitted Investments; (iii) the payment of
customary annual management, consulting and advisory fees and related expenses
to KKR and its Affiliates; (iv) the payment of reasonable and customary fees paid
to, and indemnity provided on behalf of, officers, directors, employees or
consultants of the Company or any Restricted Subsidiary; (v) payments by the
Company or any of its Restricted Subsidiaries to KKR and its Affiliates made
for any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures which payments are approved by
a majority of the Board of Directors of the Company in good faith; (vi)
transactions in which the Company or any

 

86

 

of its Restricted
Subsidiaries, as the case may be, delivers to the Trustee a letter from an
Independent Financial Advisor stating that such transaction is fair to the
Company or such Restricted Subsidiary from a financial point of view; provided that such transaction also meets
the requirements of clause (i) of paragraph (a) of this Section 1012;
(vii) payments or loans to employees or consultants which are approved by a
majority of the Board of Directors of the Company in good faith; (viii) any
agreement as in effect as of the Issuance Date or any amendment thereto (so
long as any such amendment is not disadvantageous to the Holders of the Notes
in any material respect) or any transaction contemplated thereby; (ix) the
existence of, or the performance by the Company or any of its Restricted
Subsidiaries of its obligations under the terms of, any stockholders agreement
(including any registration rights agreement or purchase agreement related
thereto) to which it is a party as of the Issuance Date and any similar
agreements which it may enter into thereafter; provided, however, that the existence of, or the
performance by the Company or any of its Restricted Subsidiaries of obligations
under any future amendment to any such existing agreement or under any similar
agreement entered into after the Issuance Date shall only be permitted by this
clause (ix) to the extent that the terms of any such amendment or new agreement
are not otherwise disadvantageous to the Holders of the Notes in any material
respect; (x) transactions with customers, clients, suppliers, or purchasers or
sellers of goods or services, in each case in the ordinary course of business
and otherwise in compliance with the terms of this Indenture which are fair to
the Company or its Restricted Subsidiaries, in the reasonable determination of
the Board of Directors of the Company or the senior management thereof, or are
on terms at least as favorable as might reasonably have been obtained at such
time from an unaffiliated party; and (xi) sales of accounts receivable, or
participations therein, in connection with any Receivables Facility.

 

Section 1013.                     Dividend and Other Payment
Restrictions Affecting Subsidiaries. The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any consensual encumbrance or consensual restriction
on the ability of any Restricted Subsidiary to:

 

(a)                                  (i) pay dividends or make any other
distributions to the Company or any of its Restricted Subsidiaries (1) on its
Capital Stock or (2) with respect to any other interest or participation in, or
measured by, its profits, or 

 

(ii)                                  pay any Indebtedness owed to the Company or any of its
Restricted Subsidiaries; 

 

(b)                                 make loans or advances to the Company or any of its
Restricted Subsidiaries; or 

 

(c)                                  sell,
lease or transfer any of its properties or assets to the Company or any of its Restricted Subsidiaries;
except (in each case) for such encumbrances or restrictions existing under or
by reason of:

 

(1)                                  contractual encumbrances or restrictions in
effect on the Issuance Date, including pursuant to the Credit Facility and its
related documentation;

 

(2)                                  this Indenture and the Notes;

 

87

 

(3)                                  purchase money obligations for property
acquired in the ordinary course of business that impose restrictions of the
nature discussed in clause (c) above on the property so acquired;

 

(4)                                  applicable law or any applicable rule,
regulation or order;

 

(5)                                  any agreement or other instrument of a Person
acquired by the Company or any Restricted Subsidiary in existence at the time
of such acquisition (but not created in contemplation thereof), which
encumbrance or restriction is not applicable to any Person, or the properties
or assets of any Person, other than the Person, or the property or assets of
the Person, so acquired;

 

(6)                                  contracts for the sale of assets, including,
without limitation, customary restrictions with respect to a Subsidiary
pursuant to an agreement that has been entered into for the sale or disposition
of all or substantially all of the Capital Stock or assets of such Subsidiary;

 

(7)                                  secured Indebtedness otherwise permitted to
be incurred pursuant to Sections 1010 and 1011 hereof that limit the right of
the debtor to dispose of the assets securing such Indebtedness;

 

(8)                                  restrictions on cash or other deposits or net
worth imposed by customers under contracts entered into in the ordinary course
of business;

 

(9)                                  other Indebtedness of Restricted Subsidiaries
permitted to be incurred subsequent to the Issuance Date pursuant to the
provisions of Section 1010 hereof;

 

(10)                            customary provisions in joint venture
agreements and other similar agreements entered into in the ordinary course of
business;

 

(11)                            customary provisions contained in leases and
other agreements entered into in the ordinary course of business;

 

(12)                            restrictions created in connection with any
Receivables Facility that, in the good faith determination of the Board of
Directors of the Company, are necessary or advisable to effect such Receivables
Facility; or

 

(13)                            any
encumbrances or restrictions of the type referred to in paragraphs (a), (b) and
(c) above imposed by any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings of the
contracts, instruments or obligations referred to in clauses (1) through (12)
above, provided that such amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings are, in the
good faith judgment of the Company’s Board of Directors, no more restrictive
with respect to such dividend and other payment restrictions than those
contained in the dividend or other payment restrictions prior to such
amendment, modification,

 

88

 

restatement,
renewal, increase, supplement, refunding, replacement or refinancing.

 

Section 1014.                     Limitation on Guarantees of
Indebtedness by Restricted Subsidiaries.

 

(a)                                  The Company shall not permit any Restricted Subsidiary to
guarantee the payment of any Indebtedness of the Company or any Indebtedness of
any other Restricted Subsidiary unless (i) such Restricted Subsidiary
simultaneously executes and delivers a supplemental indenture to this Indenture
providing for a Guarantee of payment of the Notes by such Restricted Subsidiary
except that (A) if the Notes are subordinated in right of payment to such
Indebtedness, the Guarantee under the supplemental indenture shall be
subordinated to such Restricted Subsidiary’s guarantee with respect to such
Indebtedness substantially to the same extent as the Notes are subordinated to
such Indebtedness under this Indenture and (B) if such Indebtedness is by its
express terms subordinated in right of payment to the Notes, any such guarantee
of such Restricted Subsidiary with respect to such Indebtedness shall be subordinated
in right of payment to such Restricted Subsidiary’s Guarantee with respect to
the Notes substantially to the same extent as such Indebtedness is subordinated
to the Notes; (ii) such Restricted Subsidiary waives and will not in any manner
whatsoever claim or take the benefit or advantage of, any rights of
reimbursement, indemnity or subrogation or any other rights against the Company
or any other Restricted Subsidiary as a result of any payment by such
Restricted Subsidiary under its Guarantee; and (iii) such Restricted Subsidiary
shall deliver to the Trustee an Opinion of Counsel to the effect that (A) such
Guarantee of the Notes has been duly executed and authorized and (B) such
Guarantee of the Notes constitutes a valid, binding and enforceable obligation
of such Restricted Subsidiary, except insofar as enforcement thereof may be
limited by bankruptcy, insolvency or similar laws (including, without
limitation, all laws relating to fraudulent transfers) and except insofar as
enforcement thereof is subject to general principles of equity; provided that this paragraph (a) shall not
be applicable to any guarantee of any Restricted Subsidiary (x) that (A)
existed at the time such Person became a Restricted Subsidiary of the Company
and (B) was not incurred in connection with, or in contemplation of, such
Person becoming a Restricted Subsidiary of the Company or (y) that guarantees
the payment of Obligations of the Company or any Restricted Subsidiary under
the Credit Facility or any other bank facility which is designated as Senior
Indebtedness and any refunding, refinancing or replacement thereof, in whole or
in part; provided that such
refunding, refinancing or replacement thereof constitutes Senior Indebtedness
and is not incurred pursuant to a registered offering of securities under the
Securities Act or a private placement of securities (including under Rule 144A)
pursuant to an exemption from the registration requirements of the Securities
Act, which private placement provides for registration rights under the
Securities Act (any guarantee excluded by operations of this clause (y) being
an “Excluded Guarantee”).

 

(b)                                 Notwithstanding the foregoing
and the other provisions of this Indenture, any Guarantee by a Restricted
Subsidiary of the Notes shall provide by its terms that it shall be
automatically and unconditionally released and discharged upon (i) any sale,
exchange or transfer, to any Person not an Affiliate of the Company, of all of
the Company’s Capital Stock in, or all or substantially all the assets of, such
Restricted Subsidiary (which sale, exchange or transfer is not prohibited by
this Indenture), (ii) the release or discharge of the guarantee which resulted
in the creation of such Guarantee, except a discharge or release by or as a
result of payment under

 

89

 

such guarantee, (iii) such Restricted
Subsidiary is designated an Unrestricted Subsidiary as provided in the
definition of “Unrestricted Subsidiary” or (iv) the obligations of the Company
and the Guarantors have been terminated or discharged, as the case may be,
pursuant to, and in compliance with, the provisions of Article Four or
Article Twelve hereof.

 

Section 1015.                     Limitation on Other Senior
Subordinated Indebtedness.
The Company shall not, and shall not permit any Guarantor to, directly or
indirectly, incur any Indebtedness (including Acquired Indebtedness) that is
subordinate in right of payment to any Indebtedness of the Company or any
Indebtedness of any Guarantor, as the case may be, unless such Indebtedness is
either (a) pari passu in right of
payment with the Notes or such Guarantor’s Guarantee, as the case may be or (b)
subordinate in right of payment to the Notes, or such Guarantor’s Guarantee, as
the case may be, in the same manner and at least to the same extent as the
Notes are subordinate to Senior Indebtedness or such Guarantor’s Guarantee is
subordinate to such Guarantor’s Senior Indebtedness, as the case may be.

 

Section 1016.                     Purchase of Notes upon a
Change of Control.

 

(a)                                  Upon the occurrence of a Change of Control, unless the
Company has elected to redeem the Notes in connection with such Change of
Control, the Company will make an offer to purchase all or any part (equal to
$1,000 or an integral multiple thereof) of the Notes pursuant to the offer
described below (the “Change of Control Offer”) at a price in cash (the
“Change of Control Payment”) equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest and Liquidated Damages, if any,
to the date of purchase. Within 30 days following any Change of Control, the
Company will mail a notice to each Holder of Notes issued hereunder in the
manner set forth in Section 106, with a copy to the Trustee, with the
following information: (1) a Change of Control Offer is being made pursuant to
this Section 1016, and that all Notes properly tendered pursuant to such
Change of Control Offer will be accepted for payment; (2) the purchase price
and the purchase date, which will be no earlier than 30 days nor later than 60
days from the date such notice is mailed, except as may be otherwise required
by applicable law (the “Change of Control Payment Date”); (3) any Note
not properly tendered will remain outstanding and continue to accrue interest;
(4) unless the Company defaults in the payment of the Change of Control
Payment, all Notes accepted for payment pursuant to the Change of Control Offer
will cease to accrue interest on the Change of Control Payment Date; (5)
Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes, with the form entitled “Option
of Holder to Elect Purchase” on the reverse of the Notes completed, to the
Paying Agent specified in the notice at the address specified in the notice
prior to the close of business on the third Business Day preceding the Change
of Control Payment Date; (6) Holders will be entitled to withdraw their
tendered Notes and their election to require the Company to purchase such
Notes; provided that the paying
agent receives, not later than the close of business on the last day of the
Offer Period, a telegram, telex, facsimile transmission or letter setting forth
the name of the Holder, the principal amount such Holder’s tendered Notes and
his election to have such Notes purchased; and (7) that Holders whose Notes are
being purchased only in part will be issued new Notes equal in principal amount
to the un-purchased portion of the Notes surrendered, which unpurchased portion
must be equal to $1,000 in principal amount or an integral multiple thereof.

 

90

 

(b)                                 Prior to complying with the provisions of this
Section 1016, but in any event within 30 days following a Change of
Control, the Company shall either repay all outstanding Senior Indebtedness or
obtain the requisite consents, if any, under any outstanding Senior
Indebtedness to permit the repurchase of the Notes required by this
Section 1016.

 

(c)                                  On the Change of Control Payment Date, the Company shall, to
the extent permitted by law, (1) accept for payment all Notes or portions
thereof properly tendered pursuant to the Change of Control Offer, (2) deposit
with the Paying Agent an amount equal to the aggregate Change of Control
Payment in respect of all Notes or portions thereof so tendered and (3)
deliver, or cause to be delivered, to the Trustee for cancellation the Notes so
accepted together with an Officers’ Certificate stating that such Notes or
portions thereof have been tendered to and purchased by the Company. The Paying
Agent shall promptly mail to each Holder of Notes the Change of Control Payment
for such Notes, and the Trustee will promptly authenticate and mail (or cause
to be transferred by book entry) to each Holder a new Note equal in principal amount
to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note will be
in a principal amount of $1,000 or an integral multiple thereof. The Company
will publicly announce the results of the Change of Control Offer on or as soon
as practicable after the Change of Control Payment Date with prompt written
notice of any such announcement to be given to the Trustee.

 

(d)                                 The Company shall comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent that such laws or regulations are applicable in connection with
the repurchase of Notes pursuant to a Change of Control Offer. To the extent
that the provisions of any securities laws or regulations conflict with
provisions of this Indenture, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations described herein by virtue thereof.

 

(e)                                  The Company will not be required to make a Change of Control
Offer upon 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 of this Section 1016 and purchases all Notes validly tendered
and not withdrawn under such Change of Control Offer.

 

(f)                                    A Change of Control Offer may be made in advance of a Change
of Control, and conditioned upon such Change of Control, if a definitive
agreement is in place for the Change of Control at the time of the making of
the Change of Control Offer.

 

(g)                                 The Notes repurchased by the Company pursuant to a Change of
Control Offer will have the status of Notes issued but not outstanding or will
be retired and canceled at the option of the Company.  Notes purchased by a third party pursuant to
Section 1016(e) hereof will have the status of Notes issued and
outstanding.

 

Section 1017.                     Asset Sales.

 

(a)                                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, cause, make or suffer to exist an Asset Sale, unless
(x) the Company, or its Restricted Subsidiaries, as the case may be, receives
consideration at the time of such Asset Sale at least equal

 

91

 

to the fair market
value (as determined in good faith by the Company) of the assets sold or
otherwise disposed of and (y) at least 75% of the consideration therefor
received by the Company, or such Restricted Subsidiary, as the case may be, is
in the form of Cash Equivalents; provided that
the amount of (A) any liabilities (as shown on the Company’s or such Restricted
Subsidiary’s most recent balance sheet or in the notes thereto) of the Company
or any Restricted Subsidiary (other than liabilities that are by their terms
subordinated to the Notes), that are assumed by the transferee of any such
assets, (B) any notes or other obligations received by the Company or such
Restricted Subsidiary from such transferee that are converted by the Company or
such Restricted Subsidiary into cash (to the extent of the cash received)
within 180 days following the closing of such Asset Sale and (C) any Designated
Noncash Consideration received by the Company or any of its Restricted
Subsidiaries in such Asset Sale having an aggregate fair market value, taken
together with all other Designated Noncash Consideration received pursuant to
this clause (C) that is at that time outstanding, not to exceed the greater of
(x) $50.0 million or (y) 15% of Total Assets at the time of the receipt of such
Designated Noncash Consideration (with the fair market value of each item of
Designated Noncash Consideration being measured at the time received and
without giving effect to subsequent changes in value), shall be deemed to be
cash for purposes of this provision and for no other purpose.

 

(b)                                 Within 365 days after the Company’s or any Restricted
Subsidiary’s receipt of the Net Proceeds of any Asset Sale, the Company or such
Restricted Subsidiary may apply the Net Proceeds from such Asset Sale, at its
option, (i) to permanently reduce Obligations under the Credit Facility (and to
correspondingly reduce commitments with respect thereto) or other Senior
Indebtedness or Pari Passu Indebtedness (provided
that if the Company shall so reduce Obligations under Pari Passu Indebtedness,
it will equally and ratably reduce Obligations under the Notes if the Notes are
then prepayable or, if the Notes may not be then prepaid, the Company shall
make an offer (in accordance with the procedures set forth below for an Asset
Sale Offer) to all Holders to purchase at 100% of the principal amount thereof
the amount of Notes that would otherwise be prepaid), (ii) to an investment in
any one or more businesses, capital expenditures or acquisitions of other
assets in each case, used or useful in a Similar Business and/or (iii) to make
an investment in properties or assets that replace the properties and assets
that are the subject of such Asset Sale. Pending the final application of any
such Net Proceeds, the Company or such Restricted Subsidiary may temporarily
reduce Indebtedness under a revolving credit facility, if any, or otherwise
invest such Net Proceeds in Cash Equivalents or Investment Grade Securities.
Any Net Proceeds from the Asset Sale that are not invested as provided and
within the time period set forth in the first sentence of this paragraph will
be deemed to constitute “Excess Proceeds.” When the aggregate amount of
Excess Proceeds exceeds $15.0 million, the Company shall make an offer to all
Holders of Notes (an “Asset Sale Offer”) to purchase the maximum principal
amount of Notes, that is an integral multiple of $1,000, that may be purchased
out of the Excess Proceeds at an offer price in cash in an amount equal to 100%
of the principal amount thereof, plus accrued and unpaid interest and
Liquidated Damages, if any, to the date fixed for the closing of such offer
(the “Offered Price”). The Company shall commence an Asset Sale Offer
with respect to Excess Proceeds within 10 Business Days after the date on which
the aggregate amount of Excess Proceeds exceeds $15.0 million by giving to each
Holder of the Notes, with a copy to the Trustee, in the manner provided in
Section 106 a notice stating:

 

92

 

(i)                                     that the Holder has the right to require the Company to
repurchase such Holder’s Notes at the Offered Price, subject to proration in
the event the Excess Proceeds are less than the aggregate Offered Price of all
Notes tendered;

 

(ii)                                  the date of purchase of Notes pursuant to the Asset Sale
Offer (the “Asset Sale Purchase Date”), which shall be no earlier than
30 days nor later than 60 days from the date such notice is mailed;

 

(iii)                               that
the Offered Price will be paid to Holders electing to have Notes purchased on
the Asset Sale Purchase Date; provided that
a Holder must surrender its Note to the Paying Agent at the address specified
in the notice prior to the close of business at least five Business Days prior
to the Asset Sale Purchase Date; 

 

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

 

(v)                                 that
unless the Company defaults in the payment of the Offered Price, any Note accepted for payment
pursuant to the Asset Sale Offer shall cease to accrue interest on and after
the Asset Sale Purchase Date;

 

(vi)                              that
Holders will be entitled to withdraw their tendered Notes and their election to
require the Company to purchase such Notes; provided
that the Company receives, not later than the close of business on
the third Business Day preceding the Asset Sale Purchase Date, a telegram,
telex, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of the Notes tendered for purchase, and a statement that
such Holder is withdrawing its election to have such Notes purchased;

 

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

 

(viii)                        the
instructions a Holder must follow in order to have his Notes purchased in
accordance with this Section 1017.

 

To the extent that the aggregate amount of
Notes tendered pursuant to an Asset Sale Offer is less than the Excess
Proceeds, the Company may use any remaining Excess Proceeds for general
corporate purposes. If the aggregate principal amount of Notes surrendered by
Holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select
the Notes to be purchased in the manner described in Section 1104. Upon
completion of any such Asset Sale Offer, the amount of Excess Proceeds shall be
reset at zero.

 

The Company shall comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes pursuant to an Asset Sale
Offer. To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Section 1017, the Company shall
comply with the applicable securities laws

 

93

 

and regulations and shall not be deemed to have
breached its obligations under this Indenture by virtue thereof.

 

Section 1018.                     Compliance Certificate.

 

(a)                                  The Company shall deliver to the Trustee, within 120 days
after the end of each fiscal year (which as of the date hereof ends on
December 31), an Officers’ Certificate stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Company
has kept, observed, performed and fulfilled each and every covenant contained
in this Indenture and there is no Default or Event of Default which has
occurred and is continuing in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event
of Default shall have occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Company is
taking or proposes to take with respect thereto) and that to the best of his or
her knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Notes is
prohibited or if such event has occurred, a description of the event and what
action the Company is taking or proposes to take with respect thereto.

 

(b)                                 The Company shall, so long as any of the Notes are
outstanding, deliver to the Trustee, within 5 Business Days of any Officer
becoming aware of any Default or Event of Default, an Officers’ Certificate
specifying such Default or Event of Default.

 

Section 1019.                     Reports. Notwithstanding that the Company may not be
subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act, the Company shall file with the Commission and deliver to the
Trustee and to each Holder and to prospective purchasers of Notes, annual and
quarterly reports and such information, documents and other reports as are
specified in Section 13 or 15(d) of the Exchange Act and applicable to a
U.S. corporation subject to such sections, such information, documents and
reports to be so filed and delivered at the times specified for the filing of
such information, documents and reports under such sections; provided, however,
that the Company shall not be so obligated to file such information, documents
and reports with the Commission if the Commission does not permit such filings.

 

FOR SO LONG AS ANY NOTES REMAIN OUTSTANDING,
THE COMPANY SHALL FURNISH TO THE HOLDERS AND TO SECURITIES ANALYSTS AND
PROSPECTIVE INVESTORS, UPON THEIR REQUEST, THE INFORMATION REQUIRED TO BE
DELIVERED PURSUANT TO RULE 144A(d)(4) UNDER THE SECURITIES ACT.

 

Delivery of reports, information and documents required by
Section 1019 to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute notice of any information
contained therein or determinable from information contained therein, including
the Company’s compliance with any of its covenants hereunder as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates.

 

94

 

Section 1020.                     Further Assurances. The Company shall, upon the request of the
Trustee or the Holders of the Notes, execute and deliver such further
instruments and perform such further acts as may reasonably be necessary or
proper to carry out more effectively the provisions of this Indenture.

 

ARTICLE ELEVEN

 

REDEMPTION
OF NOTES

 

Section 1101.                     Redemption. The Notes may or shall, as the case may be,
be redeemed, as a whole or from time to time in part, subject to the conditions
and at the Redemption Prices specified in the form of Note, together with
accrued interest and Liquidated Damages, if any, to the Redemption Date
specified in the form of the Note.

 

Section 1102.                     Applicability of Article. Redemption of Notes at the election of the
Company or otherwise, as permitted or required by any provision of this
Indenture, shall be made in accordance with such provision and this Article.

 

Section 1103.                     Election to Redeem; Notice
to Trustee. The election of
the Company to redeem any Notes pursuant to Section 1101 shall be
evidenced by a Board Resolution. In case of any redemption at the election of
the Company, the Company shall, at least 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date and of the principal
amount of Notes to be redeemed and shall deliver to the Trustee such
documentation and records as shall enable the Trustee to select the Notes to be
redeemed pursuant to Section 1104.

 

Section 1104.                     Selection by Trustee of
Notes to be Redeemed. If
less than all the Notes are to be redeemed, selection of such Notes for
redemption shall be made by the Trustee not more than 60 days prior to the
Redemption Date, from the Outstanding Notes not previously called for
redemption, in compliance with the requirements of the principal national
securities exchange, if any, on which such Notes are listed, or, if such Notes
are not so listed, on a pro rata basis, by lot or by such other method as the
Trustee shall deem fair and appropriate (and in such manner as complies with
applicable legal requirements) and which may provide for the selection for
redemption of portions of the principal of Notes; provided, however,
that no Notes of less than $1,000 shall be redeemed in part.

 

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

 

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

 

Section 1105.                     Notice of Redemption. Notice of redemption shall be given in the
manner provided for in Section 106 at least 30 but not more than 60 days
prior to the Redemption Date, to each Holder of Notes to be redeemed at such
Holder’s registered address. The

 

95

 

Trustee shall give notice of redemption in the
Company’s name and at the Company’s expense; provided, however, that the Company shall deliver
to the Trustee, at least 45 days prior to the Redemption Date (or such shorter
period acceptable to the Trustee), an Officers’ Certificate requesting that the
Trustee give such notice and setting forth the information to be stated in such
notice as provided in the following items.

 

All notices of redemption shall identify the
securities to be redeemed and shall state:

 

(1)                                  the Redemption Date,

 

(2)                                  the Redemption Price and the amount of accrued interest and
Liquidated Damages, if any, to the Redemption Date payable as provided in
Section 1107, if any,

 

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

 

(4)                                  in case any Note is to be redeemed in part only, the notice
which relates to such Note shall state that on and after the Redemption Date,
upon surrender of such Note, the holder will receive, without charge, a new
Note or Notes of authorized denominations for the principal amount thereof
remaining unredeemed,

 

(5)                                  that on the Redemption Date the Redemption Price (and accrued
interest, if any, and Liquidated Damages, if any, to the Redemption Date
payable as provided in Section 1107) will become due and payable upon each
such Note, or the portion thereof, to be redeemed, and, unless the Company
defaults in making the redemption payment, that interest on Notes called for
redemption (or the portion thereof) will cease to accrue on and after said
date,

 

(6)                                  the place or places where such Notes are to be surrendered
for payment of the Redemption Price and accrued interest, if any, and
Liquidated Damages, if any,

 

(7)                                  the name and address of the Paying Agent,

 

(8)                                  that Notes called for redemption must be surrendered to the
Paying Agent to collect the Redemption Price,

 

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

 

(10)                            the paragraph of the Notes pursuant to which the Notes are to
be redeemed.

 

Section 1106.                     Deposit of Redemption Price. Prior to any Redemption Date, the Company
shall deposit with the Trustee or with a Paying Agent (or, if the Company is
acting

 

96

 

as its own Paying Agent, segregate and hold in trust
as provided in Section 1003) an amount of money sufficient to pay the
Redemption Price of, and accrued interest and Liquidated Damages, if any, on,
all the Notes which are to be redeemed on that date.

 

Section 1107.                     Notes Payable on Redemption
Date. Notice of redemption
having been given as aforesaid, the Notes so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified (together with accrued interest, if any, and Liquidated Damages, if
any, to the Redemption Date), and from and after such date (unless the Company
shall default in the payment of the Redemption Price and accrued interest and
Liquidated Damages, if any,) such Notes shall cease to bear interest. Upon
surrender of any such Note for redemption in accordance with said notice, such
Note shall be paid by the Company at the Redemption Price, together with
accrued interest, if any, and Liquidated Damages, if any, to the Redemption
Date; provided, however, that installments of interest
whose Stated Maturity is on or prior to the Redemption Date shall be payable to
the Holders of such Notes, or one or more Predecessor Notes, registered as such
at the close of business on the relevant Regular Record Date or Special Record Date,
as the case may be, according to their terms and the provisions of
Section 311.

 

If any Note called for redemption shall not
be so paid upon surrender thereof for redemption, the principal (and premium,
if any) shall, until paid, bear interest from the Redemption Date at the rate
borne by the Notes.

 

Section 1108.                     Notes Redeemed in Part. Any Note which is to be redeemed only in
part (pursuant to the provisions of this Article) shall be surrendered at the
office or agency of the Company maintained for such purpose pursuant to
Section 1002 (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Note without
service charge, a new Note or Notes, of any authorized denomination as
requested by such Holder, in an aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Note so
surrendered; provided that each
such new Note will be in a principal amount of $1,000 or integral multiple
thereof.

 

ARTICLE TWELVE

 

LEGAL
DEFEASANCE AND COVENANT DEFEASANCE

 

Section 1201.                     Company’s Option To Effect
Legal Defeasance or Covenant Defeasance. The Company and the Guarantors may, at their option by Board
Resolution, at any time, with respect to the Notes, elect to have either
Section 1202 or Section 1203 be applied to all Outstanding Notes upon
compliance with the conditions set forth below in this Article Twelve.

 

Section 1202.                     Legal Defeasance and
Discharge. Upon the
Company’s exercise under Section 1201 of the option applicable to this
Section 1202, the Company shall be deemed to have been discharged from its
obligations with respect to all Outstanding Notes and

 

97

 

each Guarantor shall be deemed to have been discharged from its
obligations with respect to its Guarantee on the date the conditions set forth
in Section 1204 are satisfied (hereinafter, “Legal Defeasance”).
For this purpose, such Legal Defeasance means that the Company and any such
Guarantor shall be deemed to have paid and discharged the entire Indebtedness
represented by the Outstanding Notes, which shall thereafter be deemed to be
“Outstanding” only for the purposes of Section 1205 and the other Sections
of this Indenture referred to in (A) and (B) below, and to have satisfied all its
other obligations under such Notes and this Indenture insofar as such Notes are
concerned (and the Trustee, at the expense and upon the written request of the
Company, shall execute proper instruments acknowledging the same), except for
the following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of Outstanding Notes to receive payments
in respect of the principal of, premium, if any, interest and Liquidated
Damages, if any, on such Notes when such payments are due, solely from the
trust fund described in Section 1204 and as more fully set forth in such
Section, (B) the Company’s obligations with respect to such Notes under
Sections 304, 305, 310, 1002 and 1003, (C) the rights, powers, trusts, duties
and immunities of the Trustee hereunder, and the Company’s obligations in
connection therewith, including without limitation under Article six
hereof, and (D) this Article Twelve.

 

Subject to compliance with this
Article Twelve, the Company may exercise its option under this
Section 1202 notwithstanding the prior exercise of its option under
Section 1203 with respect to the Notes.

 

Section 1203.                     Covenant Defeasance. Upon the Company’s exercise under
Section 1201 of the option applicable to this Section 1203, the
Company and each Guarantor shall be released from its obligations under any
covenant contained in Section 801 and in Sections 1006 through 1019 with
respect to the Outstanding Notes on and after the date the conditions set forth
below are satisfied (hereinafter, “Covenant Defeasance”), and the Notes
shall thereafter be deemed not to be “Outstanding” for the purposes of any
direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “Outstanding” for all other purposes hereunder (it being
understood that such Notes will not be outstanding for accounting purposes).
For this purpose, such Covenant Defeasance means that, with respect to the
Outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under
Section 501(iii), but, except as specified above, the remainder of this Indenture
and such Notes shall be unaffected thereby.

 

Section 1204.                     Conditions to Legal
Defeasance or Covenant Defeasance. The following shall be the conditions to application of either
Section 1202 or Section 1203 to the Outstanding Notes:

 

(i)                                     The Company must irrevocably deposit with the Trustee (or
another trustee satisfying the requirements of this Indenture who shall agree
to comply with the provisions of this Article Twelve applicable to it) as
trust funds in trust for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely

 

98

 

to, the benefit
of the Holders of such Notes, cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, in such amounts as will be sufficient, in
the opinion of a nationally recognized firm of independent public accountants
selected by the Company, to pay the principal of, premium, if any, interest and
Liquidated Damages, if any, due on the Outstanding Notes on the Stated Maturity
or on the applicable Redemption Date as the case may be, of such principal,
premium, if any, or interest on the Outstanding Notes;

 

(ii)                                  in the case of Legal Defeasance, the Company shall have
delivered to the Trustee an Opinion of Counsel in the United States confirming
that, subject to customary assumptions and exclusions, (A) the Company has
received from, or there has been published by, the United States Internal
Revenue Service a ruling or (B) since the Issuance Date, there has been a
change in the applicable U.S. federal income tax law, in either case to the
effect that, and based thereon such Opinion of Counsel in the United States
shall confirm that, subject to customary assumptions and exclusions, the
Holders of the Outstanding Notes will not recognize income, gain or loss for
U.S. federal income tax purposes as a result of such Legal Defeasance and will
be subject to U.S. federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Legal Defeasance had
not occurred;

 

(iii)                               in the
case of Covenant Defeasance, the Company shall have delivered to the Trustee an
Opinion of Counsel in the United States confirming that, subject to customary
assumptions and exclusions, the Holders of the Outstanding Notes will not
recognize income, gain or loss for U.S. federal income tax purposes as a result
of such Covenant Defeasance and will be subject to such 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;

 

(iv)                              no Default or Event of Default shall have occurred and be
continuing on the date of such deposit or insofar as Events of Default from
bankruptcy or insolvency events are concerned, at any time in the period ending
on the 91st day after the date of deposit;

 

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

 

(vi)                              the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that, as of the date of such opinion and subject to
customary assumptions and exclusions following the deposit, the trust funds
will not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally under any
applicable U.S. federal or state law, and that the Trustee has a perfected
security interest in such trust funds for the ratable benefit of the Holders;

 

(vii)                           the
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by the Company with the intent of defeating,
hindering,

 

99

 

delaying or defrauding any
creditors of the Company or any Guarantor or others; and

 

(viii)                        the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel in the United States (which Opinion of Counsel may be
subject to customary assumptions and exclusions) each stating that all
conditions precedent provided for or relating to the Legal Defeasance or the
Covenant Defeasance, as the case may be, have been complied with.

 

Section 1205.                     Deposited Money and U.S.
Government Securities to be Held in Trust; Other Miscellaneous Provisions. Subject to the provisions of the last
paragraph of Section 1003, all money and Government Securities (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 1205, the “Trustee”)
pursuant to Section 1204 in respect of the Outstanding Notes shall be held
in trust and applied by the Trustee, in accordance with the provisions of such
Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money need not be segregated from other funds except to the extent required by
law. Money and Government Securities so held in trust are not subject to Article Thirteen.

 

The Company shall pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the
Government Securities deposited pursuant to Section 1204 or the principal
and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the Outstanding Notes.

 

Anything in this Article Twelve to the
contrary notwithstanding, the Trustee shall deliver or pay to the Company from
time to time upon Company Request any money or U.S. Government Securities held
by it as provided in Section 1204 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount
thereof which would then be required to be deposited to effect an equivalent
legal defeasance or covenant defeasance, as applicable, in accordance with this
Article.

 

Section 1206.                     Reinstatement. If the Trustee or any Paying Agent is unable
to apply any money or Government Securities in accordance with
Section 1205 by reason of any legal proceeding or by any reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, then the Company’s obligations under
this Indenture and the Notes shall be revived and reinstated as though no
deposit had occurred pursuant to Section 1202 or 1203, as the case may be,
until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 1205; provided,
however, that if the Company
makes any payment of principal of (or premium, if any) or interest on any Note
following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money and Government Securities held by the Trustee or Paying Agent.

 

100

 

ARTICLE THIRTEEN

 

SUBORDINATION
OF NOTES

 

Section 1301.                     Notes Subordinate to Senior
Indebtedness. The Company
covenants and agrees, and each Holder of a Note, by his acceptance thereof,
likewise covenants and agrees, for the benefit of the holders, from time to
time, of Senior Indebtedness that, to the extent and in the manner hereinafter
set forth in this Article, the Indebtedness represented by the Notes and the
payment of the principal of (and premium, if any) and interest on each and all
of the Notes and all other Subordinated Note Obligations are hereby expressly made
subordinate and subject in right of payment as provided in this Article to
the prior payment in full in Cash Equivalents of all Senior Indebtedness,
whether outstanding on the date of this Indenture or thereafter incurred.

 

Section 1302.                     Payment Over of Proceeds
upon Dissolution, etc. Upon
any distribution to creditors of the Company in a liquidation or dissolution of
the Company or in a bankruptcy, reorganization, insolvency, receivership or
similar proceeding relating to the Company or its property, an assignment for
the benefit of creditors or any marshaling of the Company’s assets and
liabilities:

 

(1)                                  the holders of Senior Indebtedness shall be entitled to
receive payment in full in Cash Equivalents of such Senior Indebtedness before
the Holders of Notes shall be entitled to receive any payment with respect to
the Subordinated Note Obligations (except that Holders of Notes may receive (i)
shares of stock and any debt securities that are subordinated at least to the
same extent as the Notes to (a) Senior Indebtedness and (b) any securities
issued in exchange for Senior Indebtedness and (ii) payments and other
distributions made from the trusts described in Articles Four and Twelve
hereof); and

 

(2)                                  until all Obligations with respect to Senior Indebtedness (as
provided in subsection (1) above) are paid in full in Cash Equivalents,
any distribution to which Holders would be entitled but for this
Article shall be made to holders of Senior Indebtedness (except that
Holders of Notes may receive (i) shares of stock and any debt securities that
are subordinated to at least the same extent as the Notes to (a) Senior
Indebtedness and (b) any securities issued in exchange for Senior Indebtedness
and (ii) payments and other distributions made from the trusts described in
Articles Four and Twelve) as their interests may appear.

 

Section 1303.                     Suspension of Payment When
Senior Indebtedness in Default.
The Company may not make any payment upon or distribution in respect of the
Subordinated Note Obligations (other than (i) securities that are subordinated
to at least the same extent as the Notes to (a) Senior Indebtedness and (b) any
securities issued in exchange for Senior Indebtedness and (ii) payments and
other distributions made from the trusts described in Article Twelve) if:

 

(i)                                a
default in the payment of any principal of, premium, if any, or interest on, or
of unreimbursed amounts under drawn letters of credit or in respect of banker’s
acceptances or fees relating to letters of credit or banker’s acceptances constituting,
Designated

 

101

 

Senior Indebtedness occurs and is continuing
beyond any applicable grace period in the agreement, indenture or other
document governing such Designated Senior Indebtedness (a “Payment Default”);
or

 

(ii)                             a
default, other than a payment default, on Designated Senior Indebtedness occurs
and is continuing that then permits holders of the Designated Senior
Indebtedness to accelerate its maturity (a “Non-Payment Default”) and
the Trustee receives a notice of the default (a “Payment Blockage Notice”)
from a Person who may give it pursuant to Section 1313 hereof. No new
period of payment blockage may be commenced unless and until 365 days have
elapsed since the effectiveness of the immediately preceding Payment Blockage
Notice. However, if any Payment Blockage Notice within such 365- day period is
given by or on behalf of any holders of Designated Senior Indebtedness (other
than the Bank Agent under the Credit Facility), the Bank Agent may give another
Payment Blockage Notice within such period. In no event, however, may the total
number of days during which any Payment Blockage Period or Periods is in effect
exceed 179 days in the aggregate during any 365 consecutive day period. No
Non-payment Default that existed or was continuing on the date of delivery of
any Payment Blockage Notice to the Trustee shall be, or be made, the basis for
a subsequent Payment Blockage Notice unless such default shall have been cured
or waived for a period of not less than 90 days.

 

The Company may and shall resume payments on
and distributions in respect of the Notes and may acquire them upon the earlier
of:

 

(1)                             in
the case of a payment default, upon the date on which such default is cured or
waived or shall have ceased to exist or such Designated Senior Indebtedness
shall have been discharged or paid in full in Cash Equivalents, or

 

(2)                             in
case of a nonpayment default, the earlier of (x) the date on which such
nonpayment default is cured or waived, (y) 179 days after the date on which the
applicable Payment Blockage Notice is received (each such period, the “Payment
Blockage Period”) or (z) the date such Payment Blockage Period shall be
terminated by written notice to the Trustee from the requisite holders of such
Designated Senior Indebtedness necessary to terminate such period or from their
Representative, after which the Company shall resume making any and all
required payments in respect of the Notes, including any missed payments, if
this Article otherwise permits the payment, distribution or acquisition at
the time of such payment or acquisition.

 

Section 1304.                     Acceleration of Notes. If payment of the Notes is accelerated
because of an Event of Default, the Company shall promptly notify holders of
Senior Indebtedness of the acceleration.

 

Section 1305.                     When Distribution Must be
Paid Over. In the event that
the Trustee or any Holder receives any payment of any Subordinated Note
Obligations at a time when such payment is prohibited by Sections 1302 or 1303,
such payment shall be held by the Trustee or such Holder, for the benefit of,
and shall be paid forthwith over and delivered, upon written request, to, the
holders of Senior Indebtedness as their interests may appear or to their
Representative under the indenture or other agreement (if any) pursuant to
which such Senior

 

102

 

Indebtedness may have been issued, as their
respective interests may appear, for application to the payment of all Senior
Indebtedness remaining unpaid to the extent necessary to pay such Senior
Indebtedness in full in cash equivalents in accordance with their terms, after
giving effect to any concurrent payment or distribution to or for the benefit
of holders of Senior Indebtedness.

 

With respect to the holders of Senior
Indebtedness, the Trustee undertakes to perform only such obligations on the
part of the Trustee as are specifically set forth in this
Article Thirteen, and no implied covenants or obligations with respect to
the holders of Senior Indebtedness shall be read into this Indenture against
the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness, and shall not be liable to any such holders if
the Trustee shall pay over or distribute to or on behalf of Holders or the
Company or any other Person money or assets to which any holders of Senior
Indebtedness shall be entitled by virtue of this Article Thirteen, except
if such payment is made as a result of the willful misconduct or gross negligence
of the Trustee.

 

Section 1306.                     Notice by Company. The Company shall promptly notify the
Trustee and the Paying Agent of any facts known to the Company that would cause
a payment of any Obligations with respect to the Notes that violate this Article,
but failure to give such notice shall not affect the subordination of the Notes
to the Senior Indebtedness as provided in this Article Thirteen.

 

Section 1307.                     Payment Permitted if no
Default. Nothing contained
in this Article or elsewhere in this Indenture or in any of the Notes
shall prevent the Company, at any time except during the pendency of any case,
proceeding, dissolution, liquidation or other winding up, assignment for the
benefit of creditors or other marshaling of assets and liabilities of the
Company referred to in Section 1302 or under the conditions described in
Section 1303, from making payments at any time of principal of (and
premium, if any, on) or interest on the Notes.

 

Section 1308.                     Subrogation to Rights of
Holders of Senior Indebtedness.
Subject to the payment in full of all Senior Indebtedness in cash equivalents,
the Holders shall be subrogated (equally and ratably with the holders of all
Pari Passu Indebtedness of the Company) to the rights of the holders of such
Senior Indebtedness to receive payments and distributions of cash, property and
securities applicable to the Senior Indebtedness until the Subordinated Note
Obligations shall be paid in full. For purposes of such subrogation, no
payments or distributions to the holders of Senior Indebtedness of any cash,
property or securities to which the Holders of the Notes or the Trustee would
be entitled except for the provisions of this Article, and no payments over
pursuant to the provisions of this Article to the holders of Senior Indebtedness
by Holders of the Notes or on their behalf or by the Trustee, shall, as among
the Company, its creditors other than holders of Senior Indebtedness, and the
Holders of the Notes, be deemed to be a payment or distribution by the Company
to or on account of the Senior Indebtedness;

 

it being understood that the provisions of this
Article are intended solely for the purpose of determining the relative
rights of the Holders of the Notes, on the one hand, and the holders of Senior
Indebtedness, on the other hand.

 

Section 1309.                     Provisions Solely to Define
Relative Rights. The
provisions of this Article are and are intended solely for the purpose of
defining the relative rights of the

 

103

 

Holders on the one hand and the holders of Senior Indebtedness on the
other hand. Nothing contained in this Article or elsewhere in this
Indenture or in the Notes is intended to or shall (a) impair, as between the
Company and the Holders, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders the principal of (and premium, if any) and
interest on the Notes as and when the same shall become due and payable in
accordance with their terms; or (b) affect the relative rights against the Company
of the Holders and creditors of the Company other than their rights in relation
to holders of Senior Indebtedness; or (c) prevent the Trustee or any Holder
from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article of
the holders of Senior Indebtedness. If the Company fails because of this
Article to pay principal (or premium, if any) or interest on a Note on the
due date, the failure is still a Default or Event of Default.

 

Section 1310.                     Trustee to Effectuate
Subordination. Each Holder
of a Note by his acceptance thereof authorizes and directs the Trustee on such
Holder’s behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article and appoints the
Trustee his attorney-in-fact for any and all such purposes. If the Trustee does
not file a proper proof of claim or proof of debt in the form required in any
proceeding referred to in Section 504 hereof at least 30 days before the
expiration of the time to file such claim, the Bank Agent (if the Credit
Facility is still outstanding) is hereby authorized to file an appropriate
claim for and on behalf of the Holders of the Notes.

 

Section 1311.                     Subordination May not be
Impaired by Company. No
right of any present or future holder of any Senior Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any non-compliance
by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof any such holder may have or be otherwise
charged with.

 

Section 1312.                     Distribution or Notice to
Representative. Whenever a
distribution is to be made or a notice given to holders of Senior Indebtedness,
the distribution may be made and the notice given to their Representative.

 

Upon any payment or distribution of assets of
the Company referred to in this Article Thirteen, the Trustee and the
Holders shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction or upon any certificate of such Representative or of the
liquidating trustee or agent or other Person making any distribution to the
Trustee or to the Holders for the purpose of ascertaining the Persons entitled
to participate in such distribution, the holders of the 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 acts pertinent
thereto or to this Article Thirteen.

 

Section 1313.                     Notice to Trustee.

 

(a)                                  The Company shall give prompt written notice to the Trustee
of any fact known to the Company which would prohibit the making of any payment
to or by the Trustee in respect of the Notes. Notwithstanding the provisions of
this Article or any other provision of this Indenture, the Trustee shall
not be charged with knowledge of the existence of any facts which

 

104

 

would prohibit the
making of any payment to or by the Trustee in respect of the Notes, unless and
until the Trustee shall have received written notice thereof from the Company,
the Bank Agent or a holder of Senior Indebtedness or from any trustee,
fiduciary or agent therefor; and, prior to the receipt of any such written
notice, the Trustee, subject to TIA Sections 315(a) through 315(d), shall be
entitled in all respects to assume that no such facts exist; provided,
however, that, if the Trustee shall not have received the notice
provided for in this Section at least three Business Days prior to the
date upon which by the terms hereof any money may become payable for any
purpose (including, without limitation, the payment of the principal of (and
premium, if any) or interest on any Note), then, anything herein contained to
the contrary notwithstanding, the Trustee shall have full power and authority
to receive such money and to apply the same to the purpose for which such money
was received and shall not be affected by any notice to the contrary which may
be received by it within three Business Days prior to such date.

 

(b)                                 Subject to TIA Sections 315(a) through 315(d), the Trustee
shall be entitled to rely on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Indebtedness (or a trustee,
fiduciary or agent therefor) to establish that such notice has been given by a
holder of Senior Indebtedness (or a trustee, fiduciary or agent therefor). In
the event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and any other facts pertinent to the rights of
such Person under this Article and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

 

Section 1314.                     Reliance on Judicial Order
or Certificate of Liquidating Agent. Upon any payment or distribution of assets of the Company referred to
in this Article, the Trustee, subject to TIA Sections 315(a) through 315(d),
and the Holders of the Notes shall be entitled to rely upon any order or decree
entered by any court of competent jurisdiction in which such insolvency,
bankruptcy, receivership, liquidation, reorganization, dissolution, winding up
or similar case or proceeding is pending, or a certificate of the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit
of creditors, agent or other Person making such payment or distribution,
delivered to the Trustee or to the Holders of Notes, for the purpose of
ascertaining the Persons entitled to participate in such payment or
distribution, the holders of 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; provided that such court, trustee,
receiver, custodian, assignee, agent or other Person has been apprised of, or
the order, decree or certificate makes reference to, the provisions of this
Article.

 

Section 1315.                     Rights of Trustee as a
Holder of Senior Indebtedness; Preservation of Trustee’s Rights. The Trustee in its individual capacity
shall be entitled to all the rights set forth in this Article with respect
to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder.
Nothing in this Article shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 607.

 

105

 

Section 1316.                     Article Applicable to
Paying Agents. In case at
any time any Paying Agent other than the Trustee shall have been appointed by
the Company and be then acting hereunder, the term “Trustee” as used in this
Article shall in such case (unless the context otherwise requires) be
construed as extending to and including such Paying Agent within its meaning as
fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee; provided,
however, that Section 1315 shall not apply to the Company or
any Affiliate of the Company if it or such Affiliate acts as Paying Agent.

 

Section 1317.                     No Suspension of Remedies. Nothing contained in this
Article shall limit the right of the Trustee or the Holders of Notes to
take any action to accelerate the maturity of the Notes pursuant to
Article Five or to pursue any rights or remedies hereunder or under
applicable law, except as provided in Article Five.

 

Section 1318.                     Modification of Terms of
Senior Indebtedness. Any
renewal or extension of the time of payment of any Senior Indebtedness or the
exercise by the holders of Senior Indebtedness of any of their rights under any
instrument creating or evidencing Senior Indebtedness, including, without
limitation, the waiver of default thereunder, may be made or done all without
notice to or assent from the Holders or the Trustee.

 

No compromise, alteration, amendment,
modification, extension, renewal or other change of, or waiver, consent or
other action in respect of, any liability or obligation under or in respect of,
or of any of the terms, covenants or conditions of any indenture or other
instrument under which any Senior Indebtedness is outstanding or of such Senior
Indebtedness, whether or not such release is in accordance with the provisions
of any applicable document, shall in any way alter or affect any of the
provisions of this Article Thirteen or of the Notes relating to the
subordination thereof.

 

Section 1319.                     Certain
Terms. For purposes of this Article Thirteen, (i) “Cash Equivalents”
means Government Securities with maturities of nine months or less and (ii) unless the context clearly indicates
otherwise, any payment or distribution to the Trustee or any Holder in respect
of any Subordinated Note Obligation shall include any payment or distribution
of any kind or character from any source, whether in cash, property or
securities, by setoff or otherwise, including any repurchase, redemption or
acquisition of the Notes and any direct or indirect payment payable by reason
of any other Indebtedness or Obligation being subordinated to the Notes.

 

Section 1320.                     Trust Moneys Not
Subordinated. Notwithstanding
anything contained herein to the contrary, payments from cash or the proceeds
of Government Securities held in trust under Article Twelve hereof by the
Trustee (or other qualifying trustee) and which were deposited in accordance
with the terms of Article Twelve hereof and not in violation of
Section 1303 hereof for the payment of principal of (and premium, if any)
and interest on the Notes shall not be subordinated to the prior payment of any
Senior Indebtedness or subject to the restrictions set forth in this
Article Thirteen, and none of the Holders shall be obligated to pay over
any such amount to the Company or any holder of Senior Indebtedness or any
other creditor of the Company.

 

106

 

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

 

107

 

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

 

	
   

  	
  ALLIANCE IMAGING, INC.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Russell D.
  Phillips, Jr.

  
	
   

  	
   

  	
  Name:  Russell D. Phillips, Jr.

  
	
   

  	
   

  	
  Title:  Executive Vice President, General

  Counsel and Secretary

  

 

S-1

 

	
   

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

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Oeser

  
	
   

  	
   

  	
  Name:  David A. Oeser

  
	
   

  	
   

  	
  Title:  Assistant Vice President

  

 

S-2Exhibit
4.6

 

THIRD AMENDMENT

 

DATED AS OF DECEMBER 29, 2004

 

TO

 

CREDIT AGREEMENT

 

DATED AS OF NOVEMBER 2, 1999

 

AMONG

 

ALLIANCE IMAGING, INC.,

 

as Borrower,

 

THE LENDERS LISTED HEREIN,

 

as Lenders,

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Administrative Agent,

 

CITIGROUP NORTH AMERICA, INC.,

 

as Syndication Agent,

 

and

 

LEHMAN BROTHERS COMMERCIAL PAPER INC.

 

and MERRILL LYNCH &CO.,

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

 

as Co-Documentation Agents

 

 

DEUTSCHE BANK SECURITIES INC. and LEHMAN BROTHERS
INC.,

 

as Joint Lead Arrangers

 

 

ALLIANCE IMAGING, INC.

THIRD AMENDMENT

TO CREDIT AGREEMENT

 

This THIRD AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”) is dated as of December 29, 2004 and entered into by and
among Alliance Imaging, Inc., a Delaware corporation (“Company”),
the financial institutions listed on the signature pages hereof (“Lenders”), Deutsche Bank Trust Company Americas, as
administrative agent for Lenders (“Administrative
Agent”), Citigroup North America,
Inc. as Syndication Agent (“Syndication Agent”),
Lehman Commercial Paper Inc. and Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated as Co-Documentation Agents (each, a “Co-Documentation Agent” and collectively, “Documentation Agent”), Deutsche Bank
Trust Company Americas, as collateral agent (“Collateral
Agent”) and, for purposes of Section 4 hereof,
the Credit Support Parties (as defined in Section 4 hereof) listed on the
signature pages hereof, and is made with reference to that certain Credit
Agreement, dated as of November 2, 1999, as amended by that certain First
Amendment dated as of May 11, 2000, as further amended by that certain Second
Amendment dated as of June 10, 2002 (as so amended, the “Credit Agreement”), by and among Company, Lenders, Administrative
Agent, Syndication Agent and Documentation Agent.  Capitalized terms used herein without
definition shall have the same meanings herein as set forth in the Credit
Agreement.

 

RECITALS

 

WHEREAS, Company and
Lenders desire to amend the Credit Agreement on, and subject to, the terms,
conditions and agreements set forth herein, (i) to create a new class of Tranche
C1 Term Loans in the aggregate principal amount of $390,000,000 (the “Tranche C1 Term Loans”), and (ii) to create
a class of New Revolving Loan Commitments in the aggregate principal amount of
$70,000,000 (the “New Revolving Loan
Commitments”), in each case having identical terms with, and having
the same rights and obligations under the Loan Documents as, the outstanding Tranche
C Term Loans and the existing Revolving Loan Commitments, respectively, except
as such terms are amended hereby;

 

WHEREAS,
Company and Lenders desire to further amend the Credit Agreement to permit the
issuance of $150,000,000 in aggregate principal amount of unsecured new senior
subordinated notes (the “New Senior Subordinated
Notes”), the proceeds of which will be used, together with a portion
of the proceeds of the Tranche C1 Term Loans and cash on hand of Company, to
refinance some or all of the Company’s outstanding 10-3/8% Senior Subordinated
Notes due 2011 (the “10-3/8% Senior Subordinated
Notes”) and to pay accrued interest and tender premiums thereon;

 

1

 

WHEREAS, on the Third
Amendment Effective Date (as hereinafter defined), the outstanding Tranche C
Term Loans will be converted into, or repaid in full with the proceeds of, the Tranche
C1 Term Loans;

 

WHEREAS, (a) each
Lender having a Tranche C1 Term Loan Commitment (as hereinafter defined) in
excess of its outstanding Tranche C Term Loans on the Third Amendment Effective
Date (each such Lender an “Increasing Lender”)
shall make Tranche C1 Term Loans to Company on the Third Amendment Effective
Date in the amount of the excess of such Tranche C1 Term Loan Commitment over
such Increasing Lender’s Tranche C Term Loans, and (b) each new Lender having a
Tranche C1 Term Loan Commitment (each a “New Tranche
C1 Term Loan Lender”) shall make Tranche C1 Term Loans to Company on
the Third Amendment Effective Date in an amount equal to such New Tranche C1
Term Loan Lender’s Tranche C1 Term Loan Commitment, the proceeds of which shall
be used by Company (i) to repay the outstanding principal amount of Tranche C
Term Loans of existing Lenders that do not execute and deliver this Amendment
(the “Exiting Lenders”) and (ii) to
refinance, together with the proceeds of the New Senior Subordinated Notes and
cash on hand of Company, some or all of the Company’s 10-3/8% Senior
Subordinated Notes and to pay accrued interest and tender premiums thereon;

 

WHEREAS, each
Lender having Tranche C Term Loans outstanding as of the date hereof and who
executes and delivers this Amendment shall be deemed, upon the Third Amendment
Effective Date, to have converted its Tranche C Term Loans into Tranche C1 Term
Loans in the same aggregate principal amount as such Lender’s Tranche C1 Term
Loan Commitment (less, in the case of any Increasing Lender, the amount of Tranche
C1 Term Loans made to repay Exiting Lenders’ Tranche C Term Loans);

 

WHEREAS,
on the Third Amendment Effective Date, the existing Revolving Loan Commitments
will be terminated by Company and will be replaced by the New Revolving Loan
Commitments and any outstanding Revolving Loans will be repaid in full with the
proceeds of New Revolving Loans and all existing Letters of Credit will become Letters
of Credit outstanding under the New Revolving Loan Commitments;

 

NOW, THEREFORE, in consideration
of the premises and the agreements, provisions and covenants herein contained,
the parties hereto agree as follows:

 

Section 1.                                          AMENDMENTS
TO THE CREDIT AGREEMENT

 

1.1                               Amendments
to Section 1:  Provisions Relating
to Defined Terms.

 

A.                                    Subsection 1.1
of the Credit Agreement is hereby amended by adding thereto the following
definitions, which shall be inserted in proper alphabetical order:

 

“Applicable Revolving Base Rate Margin” means, as at any
date of determination on and after the Third Amendment Effective Date, a rate
per annum equal to the percentage set forth below opposite the Applicable
Leverage Ratio in effect as of such date of determination, any change in any
such Applicable Revolving Base Rate Margin to be effective on the date of any
corresponding change in the Applicable Leverage Ratio:

 

2

 

	
  Applicable Leverage Ratio

  	
   

  	
  Applicable Revolving Base Rate

  Margin

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  greater than
  2.50:1.00

  	
   

  	
  0.50%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  greater than
  1.50:1.00, but equal to or less than 2.50:1.00

  	
   

  	
  0.25%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  equal to or less
  than 1.50:1.00

  	
   

  	
  0.00%

  	
   

  

 

“Applicable Revolving LIBOR Margin” means, as at any
date of determination on and after the Third Amendment Effective Date, a rate
per annum equal to the percentage set forth below opposite the Applicable
Leverage Ratio in effect as of such date of determination, any change in any
such Applicable Revolving LIBOR Margin to be effective on the date of any
corresponding change in the Applicable Leverage Ratio:

 

	
  Applicable Leverage Ratio

  	
   

  	
  Applicable Revolving LIBOR
  Margin

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  greater than
  2.50:1.00

  	
   

  	
  1.75%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  greater than
  1.50:1.00, but equal to or less than 2.50:1.00

  	
   

  	
  1.50%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  equal to or less
  than 1.50:1.00

  	
   

  	
  1.25%

  	
   

  

 

“DB” means
Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company),
in its capacity as Administrative Agent for Lenders.

 

“New Revolving Loan Commitment”  means the commitment of a Lender to make New
Revolving Loans to Company pursuant to subsection 2.1A(iv)(b), and “New Revolving Loan Commitments” means such commitments of
all Lenders in the aggregate.

 

“New Revolving Loans” means the Loans made by Lenders to Company pursuant to subsection 2.1A(iv)(b).

 

“New Senior Subordinated
Notes” means the $150,000,000 in initial aggregate principal amount
of unsecured senior subordinated notes issued by Company on the Third Amendment
Effective Date.

 

“New Senior Subordinated
Note Indenture” means the indenture pursuant to which the New Senior
Subordinated Notes are issued as such indenture may be amended from time to
time to the extent permitted under subsection 7.9.

 

“Prepayment Premium”
has the meaning set forth in subsection 2.4B(i).

 

3

 

“Third Amendment” means the Third Amendment to the Credit Agreement,
dated as of December    , 2004, by and among Company,
Requisite Lenders, Collateral Agent, Syndication Agent, Documentation Agent and
Administrative Agent.

 

“Third Amendment Effective
Date” means the date on
which the Third Amendment became effective in accordance with its terms.

 

“Tranche C1 Term Loans” means the Loans made (and/or converted into
Tranche C1 Term Loans from Tranche C Term Loans outstanding immediately prior
to the Third Amendment Effective Date) to the Company pursuant to subsection 2.1A(iii)(c).

 

“Tranche C1 Term Loan
Commitment” means the
commitment of a Lender to make (and/or convert into Tranche C1 Term Loans from
Tranche C Term Loans outstanding immediately prior to the Third Amendment
Effective Date), a Tranche C1 Term Loan to Company pursuant to subsection 2.1A(iii)(c),
and “Tranche C1 Term Loan Commitments” means such commitments of all Lenders in the
aggregate.

 

“10-3/8% Senior
Subordinated Notes” means Company’s $260,000,000 in initial
aggregate principal amount of 10-3/8% Senior Subordinated Notes due 2011.

 

“10-3/8% Senior
Subordinated Note Indenture” means the indenture pursuant to which
the 10-3/8% Senior Subordinated Notes were issued, as amended pursuant to the
2004 Consent Solicitation and as such indenture may be further amended from
time to time to the extent permitted under subsection 7.9.

 

“2004 Consent Solicitation”
means the solicitation by Company from the holders of outstanding 10-3/8%
Senior Subordinated Notes of consents to certain amendments to the 10-3/8%
Senior Subordinated Note Indenture in accordance with the terms of the 2004
Tender Offer.

 

“2004 Tender Offer” means the offer by Company to repurchase up
to 100% of the outstanding 10-3/8% Senior Subordinated Notes pursuant to the
2004 Tender Offer Materials.

 

“2004 Tender Offer Materials” means the Offer to Purchase and
Consent Solicitation Statement dated November 30, 2004 related to the 2004
Tender Offer and the accompanying Consent and Letter of Transmittal.

 

B.                                    Subsection 1.1
of the Credit Agreement is hereby further amended by deleting the definitions
of “Applicable Commitment Fee Percentage”, “Applicable Tranche C Base Rate
Margin”, “Applicable Tranche C LIBOR Margin”, “Documentation Agent”, “Reference Lenders”, “Related Agreements”, “Revolving Loan
Commitment”, “Revolving Loan Commitment Termination Date”, “Revolving Loans”, “Subordinated
Indebtedness”, “Syndication Agent”, “Tranche C Term Loan Commitment”, and “Tranche
C Term Loans” in their entirety, and substituting the following therefor,
respectively:

 

“Applicable Commitment Fee Percentage” means, as at any date of
determination, a rate per annum equal to 0.50%.

 

4

 

“Applicable
Tranche C Base Rate Margin”
means with respect to any date of determination on and after the Third
Amendment Effective Date, a rate per annum equal to 1.25%.

 

“Applicable
Tranche C LIBOR Margin”
means with respect to any date of determination on and after the Third
Amendment Effective Date, a rate per annum equal to 2.25%.

 

“Documentation Agent”
means, collectively, Lehman Commercial Paper Inc. and Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Co-Documentation Agents.

 

“Reference Lenders”
means DB and Syndication Agent.

 

“Related Agreements”
means, collectively, the 2004 Tender Offer Materials, the 10-3/8% Senior
Subordinated Notes, the 10-3/8% Senior Subordinated Note Indenture, the New
Senior Subordinated Notes, the New Senior Subordinated Note Indenture, and any
Refinancing Sub Debt and any indenture pursuant to which such Refinancing Sub
Debt is issued.

 

“Revolving Loan Commitment”
means the commitment of a Lender to make Revolving Loans to Company pursuant to
subsection 2.1A(iv)(a) and subsection 2.1A(iv)(b), and “Revolving Loan Commitments” means such commitments of all
Lenders in the aggregate.

 

“Revolving Loan Commitment
Termination Date” means (i) with respect to Revolving Loan
Commitments under subsection 2.1A(iv)(a), the seventh anniversary of the
Closing Date or such earlier date on which such Revolving Loan Commitments may
be terminated pursuant to subsection 2.4B or Section 8, and (ii) with
respect to Revolving Loan Commitments under subsection 2.1A(iv)(b), December 29,
2010 or such earlier date on which such Revolving Loan Commitments may be
terminated pursuant to subsection 2.4B or Section 8.

 

“Revolving Loans”
means the Loans made by Lenders to Company pursuant to subsection 2.1A(iv)(a)
and subsection 2.1A(iv)(b).

 

“Subordinated Indebtedness”
means (i) the Indebtedness of Company evidenced by the 10-3/8% Senior
Subordinated Notes, (ii) the Indebtedness of Company evidenced by the New
Senior Subordinated Notes and (iii) the Indebtedness of Company evidenced by
any Refinancing Sub Debt.

 

“Syndication Agent”
means Citigroup North America, Inc. in its capacity as Syndication Agent.

 

“Tranche C Term Loan
Commitment” means the commitment of a Lender to make a Tranche C
Term Loan to Company pursuant to subsection 2.1A(iii)(a), subsection 2.1A(iii)(b)
or subsection 2.1A(iii)(c), and “Tranche C Term Loan
Commitments” means such commitments of all Lenders in the aggregate.

 

5

 

“Tranche C Term Loans”
means the Loans made by Lenders to Company pursuant to subsection 2.1A(iii)(a),
subsection 2.1A(iii)(b) or subsection 2.1A(iii)(c).

 

C.                                    Subsection 1.1
of the Credit Agreement is hereby further amended by deleting the definition of
“BTCo” in its entirety.

 

1.2                               Amendments
to Subsection 2.1:  Commitments; Making of Loans; the Register;
Notes.

 

A.                                    Subsection 2.1A(iii)
of the Credit Agreement is hereby amended by adding at the end thereof a new
clause (c) as follows:

 

“(c)                            Tranche
C1 Term Loans.  Each Lender that has
a Tranche C1 Term Loan Commitment severally agrees (a) to convert on the Third
Amendment Effective Date each New Tranche C Term Loan made by such Lender under
this Agreement and outstanding immediately prior to giving effect to the Third
Amendment to a Tranche C1 Term Loan hereunder (and Company hereby agrees to
such conversion) and (b) to make to Company on the Third Amendment Effective
Date Tranche C1 Term Loans hereunder in an amount equal to the excess (if any)
of such Lender’s Tranche C1 Term Loan Commitment over such Lender’s New Tranche
C Term Loans (if any) being converted on the Third Amendment Effective Date to
Tranche C1 Term Loans, so that, after giving effect to the conversion of such New
Tranche C Term Loans into Tranche C1 Term Loans pursuant to clause (a) above
and the making of all such Tranche C1 Term Loans pursuant to clause (b) above,
each Lender that has a Tranche C1 Term Loan Commitment will have made or deemed
to have made, as the case may be, a Tranche C1 Term Loan to Company in an
amount equal to its Pro Rata Share of the aggregate amount of the Tranche C1
Term Loan Commitments, to be used for the purposes identified in subsection 2.5D.  The aggregate amount of the Tranche C1 Term
Loan Commitments is $390,000,000.  Each
Tranche C1 Term Loan shall be deemed to have the same Interest Period as the New
Tranche C Term Loan it replaces, and no making of or conversion into a Tranche
C1 Term Loan hereunder shall result in the commencement of a new Interest
Period.  Amounts borrowed (or converted)
under this subsection 2.1A(iii)(c) and subsequently repaid and prepaid may
not be reborrowed.”.

 

B.                                    Subsection 2.1A(iv)
of the Credit Agreement is hereby further amended by inserting an “(a)” in
front of the phrase “Revolving Loans”, replacing the phrase “this subsection 2.1A(iv)”
with the phrase “this subsection 2.1A(iv)(a)”, and by adding at the end
thereof a new clause (b) as follows:

 

“(b)                           New
Revolving Loans.  Each Lender
severally agrees, subject to the limitations set forth below with respect to
the maximum amount of New Revolving Loans permitted to be outstanding from time
to time, to lend to Company from time to time during the period from the Third
Amendment Effective Date to but excluding the Revolving Loan Commitment
Termination Date an aggregate amount not exceeding its Pro Rata Share of the
aggregate amount of the New Revolving Loan Commitments to be used for the
purposes identified in subsection 2.5B. 
The aggregate original

 

6

 

amount of the New Revolving Loan Commitments is $70,000,000;
provided that the New Revolving Loan Commitments of Lenders shall be
adjusted to give effect to any assignments of the New Revolving Loan
Commitments pursuant to subsection 10.1B; and provided, further
that the amount of the New Revolving Loan Commitments shall be reduced from
time to time by the amount of any reductions thereto made pursuant to subsection 2.4B(ii).  Each Lender’s New Revolving Loan Commitment
shall expire on the Revolving Loan Commitment Termination Date and all New
Revolving Loans and all other amounts owed hereunder with respect to the New
Revolving Loans and the New Revolving Loan Commitments shall be paid in full no
later than that date.  Amounts borrowed
under this subsection 2.1A(iv)(b) may be repaid and reborrowed to but
excluding the Revolving Loan Commitment Termination Date.

 

Anything
contained in this Agreement to the contrary notwithstanding, the New Revolving
Loans and the New Revolving Loan Commitments shall be subject to the limitation
that in no event shall the Total Utilization of Revolving Loan Commitments at
any time exceed the New Revolving Loan Commitments then in effect.”.

 

1.3                               Amendments
to Subsection 2.2: Interest on the Loans.

 

A.                                    Subsection 2.2A
of the Credit Agreement is hereby amended by

 

(a)                                  deleting
the phrase “and the Revolving Loans” from clause (i) thereof, renumbering
clause “(iv)” as clause “(v)”, and inserting a new clause (iv) immediately
prior to clause (v) as follows:

 

“(iv)                        Subject to the provisions of
subsections 2.2E and 2.7, the Revolving Loans shall bear interest through
maturity as follows:

 

(a)                                  if
a Base Rate Loan, then at the sum of the Base Rate plus the Applicable
Revolving Base Rate Margin; or

 

(b)                                 if
a LIBOR Loan, then at the sum of LIBOR plus the Applicable Revolving
LIBOR Margin.”; and

 

(b)                                 deleting
the phrase “Applicable Tranche A Base Rate Margin” from clause (iv) thereof and
substituting the phrase “Applicable Revolving Base Rate Margin” therefor.

 

B.                                    Subsection 2.2B(v)
of the Credit Agreement is hereby amended by deleting the phrase “no Interest
Period with respect to any portion of the Tranche C Term Loans shall extend
beyond the ninth anniversary of the Closing Date” and by substituting the
phrase “no Interest Period with respect to any portion of the Tranche C Term
Loans shall extend beyond December 29, 2011”.

 

7

 

1.4                               Amendment
to Subsection 2.4: Repayments, Prepayments and Reductions in Revolving
Loan Commitments; General Provisions Regarding Payments; Application of
Proceeds of Collateral and Payments Under the Guaranties.

 

A.                                    Subsection 2.4A(iii)
of the Credit Agreement is hereby amended by adding at the end thereof a new
clause (c) as follows:

 

“(c)                            Scheduled
Payments of Tranche C1 Term Loans.  Company
shall make principal payments on the Tranche C1 Term Loans in annual installments
beginning on December 29, 2005 as set forth below until the Tranche C1
Term Loans are paid in full, each such installment to be in the correlative
amount set forth below:

 

	
  December 29,

  	
   

  	
  Scheduled Repayment

  of Tranche C1 Term Loans

  	
   

  
	
  2005

  	
   

  	
  $

  	
  3,900,000.00

  	
   

  
	
  2006

  	
   

  	
  3,900,000.00

  	
   

  
	
  2007

  	
   

  	
  3,900,000.00

  	
   

  
	
  2008

  	
   

  	
  3,900,000.00

  	
   

  
	
  2009

  	
   

  	
  3,900,000.00

  	
   

  
	
  2010

  	
   

  	
  3,900,000.00

  	
   

  
	
  2011

  	
   

  	
  366,600,000.00

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  390,000,000.00

  	
   

  

 

; provided that the scheduled installments of
principal of the Tranche C1 Term Loans set forth above shall be reduced in
connection with any voluntary or mandatory prepayments of the Tranche C1 Term
Loans in accordance with subsection 2.4B(iv); and provided, further
that the Tranche C1 Term Loans and all other amounts owed hereunder with
respect to the Tranche C1 Term Loans shall be paid in full no later than December 29,
2011, and the final installment payable by Company in respect of the Tranche C1
Term Loans on such date shall be in an amount, if such amount is different from
that specified above, sufficient to repay all amounts owing by Company under
this Agreement with respect to the Tranche C1 Term Loans.”

 

B.                                    Subsection 2.4B(i)
of the Credit Agreement is hereby amended by adding the following at the end
thereof:

 

“In the event
that, prior to the first anniversary of the Third Amendment Effective Date but,
for the avoidance of doubt, after the Third Amendment Effective Date, any
Lender with Tranche C Term Loan Exposure receives a prepayment of Tranche C
Term Loans, in whole or in part, from the proceeds of Indebtedness which is
incurred substantially concurrently with such prepayment, whether incurred
under this Agreement or otherwise, then at the time of such prepayment Company
shall pay to each Lender receiving a prepayment a prepayment premium (the “Prepayment

 

8

 

Premium”)
equal to 1.00% of the principal amount of the Tranche C Term Loan prepayment;
provided however that in the event that such prepayment occurs as a result of a
Change of Control with respect to the Company, then no Prepayment Premium pursuant
to this subsection 2.4B(i) shall be owing with respect to such prepayment.”.

 

C.                                    Subsection 2.4B(iii)(b)
is hereby amended by deleting the phrase clause (i) thereof and substituting
the following therefor:

 

“(i) the Consolidated Leverage Ratio shall be equal to
or greater than 3.00:1.00 as of the last day of any Fiscal Year (commencing
with Fiscal Year 2005)”.

 

1.5                               Amendments
to Subsection 2.5:  Use of Proceeds.

 

A.                                    Subsection 2.5
of the Credit Agreement is hereby amended by adding a new subparagraph (D) at
the end thereof as follows:

 

“D.                              Tranche
C1 Term Loans.  The proceeds of the Tranche
C1 Term Loans shall be applied on the Third Amendment Effective Date by Company
first to repay in full the principal amount of all New Tranche C Term Loans
outstanding immediately prior to giving effect to the Third Amendment which are
not converted into Tranche C1 Term Loans and thereafter any remaining proceeds
shall be applied to refinance Company’s 10-3/8% Senior Subordinated Notes, to
pay accrued interest and tender premiums thereon and to pay fees and expenses
related to the Third Amendment, the refinancing of the 10-3/8% Senior
Subordinated Notes and the issuance of the New Senior Subordinated Notes.”.

 

1.6                               Amendments
to Subsection 2.6:  Special
Provisions Governing LIBOR Loans.

 

Subsection 2.6 of the Credit Agreement is hereby
amended by (i) deleting the period (“.”) at the end of subsection 2.6D
thereof and substituting therefor “;” and (ii) adding at the end of subsection 2.6D
thereof a new clause as follows:

 

“provided that no amounts shall be payable
under this subsection 2.6D as a result of (i) the making of, or conversion
of New Tranche C Term Loans into, Tranche C1 Term Loans or (ii) the prepayment
or repayment of any New Tranche C Term Loans, in each case pursuant to the
terms of the Third Amendment.”.

 

1.7                               Amendments
to Subsection 3.1:  Issuance of
Letters of Credit and Lenders’ Purchase of Participations Therein.

 

Subsection 3.1 of the Credit Agreement is hereby
amended by deleting subsection 3.1C in its entirety and substituting the
following therefor:

 

“C.                              Lenders’
Purchase of Participations in Letters of Credit.

 

Immediately upon the issuance of each Letter of
Credit, each Lender having a Revolving Loan Commitment shall be deemed to, and
hereby agrees to, have

 

9

 

irrevocably purchased from the Issuing Lender a
participation in such Letter of Credit and any drawings thereunder in an amount
equal to such Lender’s Pro Rata Share of the maximum amount which is or at any
time may become available to be drawn thereunder.  Upon satisfaction of the conditions set forth
in Section 2 of the Third Amendment, each Lender having a New Revolving
Loan Commitment shall be deemed to have irrevocably purchased from the Issuing
Lender of any Letter of Credit outstanding on the Third Amendment Effective
Date a participation in such Letter of Credit and any drawings under a Letter
of Credit which drawings are outstanding on the Third Amendment Effective Date in
an amount equal to such Lender’s Pro Rata Share of the maximum amount which is
or at any time may become available to be drawn under such Letter of Credit and
of any such outstanding drawings.”.

 

1.8                               Amendments
to Subsection 3.2:  Letter of Credit
Fees.

 

Subsection 3.2 of the Credit Agreement is hereby
amended by deleting the phrase “Applicable Tranche A LIBOR Margin” each place
it appears therein and by substituting therefor the phrase “Applicable
Revolving LIBOR Margin” and by adding at the end thereof the following:

 

“With respect to Letters of Credit outstanding on the
Third Amendment Effective Date, the fees described in clauses (i) and (ii)
above shall accrue from and including the Third Amendment Effective Date.”.

 

1.9                               Amendment
to Subsection 6.11:  Refinancing of
Bridge Notes.

 

Subsection 6.11 of the Credit Agreement is hereby
amended by deleting such subsection in its entirety and substituting
therefor the phrase:  “Intentionally
Omitted”.

 

1.10                        Amendments
to Subsection 7.1: Indebtedness.

 

Subsection 7.1 of the Credit Agreement is hereby
amended by deleting clauses (v) and (vi) in their entirety and by substituting
therefor the following:

 

“(v)                           Company
may remain liable with respect to any portion of the 10-3/8% Senior
Subordinated Notes not tendered pursuant to the 2004 Tender Offer and which have
not been defeased in accordance with subsection 7.5(ii)(b) and the 10-3/8%
Senior Subordinated Note Indenture;

 

(vi)                              Company
may become and remain liable with respect to (a) the New Senior Subordinated
Notes and (b) Indebtedness issued by Company in exchange for, or the proceeds
of which are used to repurchase, redeem, defease or otherwise prepay or retire
(collectively, to “Refinance” or a
“Refinancing”), the New Senior
Subordinated Notes (the “Replaced Debt”);
provided that, in the case of (b) such Indebtedness is unsecured and
subordinated to the Obligations, such Indebtedness shall not mature prior to six
months after the stated final maturity of all Indebtedness under this Agreement,
after giving effect to the incurrence of such Indebtedness and the payment of
interest thereon, Company shall be in pro  forma compliance with
subsection 7.6 of this Agreement, and the other terms of such Indebtedness
(including amortization schedule, covenants, defaults, remedies, subordination

 

10

 

provisions (including with respect to any subordinated
guaranties) and other material terms thereof) shall be no less favorable in any
material respect to Lenders than the terms of the New Senior Subordinated Notes,
and the aggregate principal amount of such Indebtedness shall not exceed the
sum of (x) the aggregate principal amount of the Replaced Debt thereby
Refinanced plus (y) the amount of any tender premium, call premium or
similar premium (any such premium being a “Refinancing Premium”)
paid by Company in connection with such Refinancing plus (z) the costs
of issuance of such Indebtedness, including placement agent fees or
underwriting commissions (such Indebtedness meeting the requirements set forth
above being “Refinancing Sub Debt”).”.

 

1.11                        Amendment
to Subsection 7.4:  Guarantee
Obligations.

 

Subsection 7.4 of the Credit Agreement is hereby
amended by deleting clauses (vii) and (viii) in their entirety and substituting
the following therefor:

 

“(vii)                     Company’s
Subsidiaries may become and remain liable with respect to Guarantee Obligations
under subordinated guaranties of the New Senior Subordinated Notes and the
Refinancing Sub Debt;

 

(viii)                        Company’s
Subsidiaries may remain liable with respect to subordinated Guarantee
Obligations under the 10-3/8% Senior Subordinated Note Indenture with respect
to the 10-3/8% Senior Subordinated Notes not tendered pursuant to the 2004
Tender Offer and which have not been defeased in accordance with subsection 7.5(ii)
and the 10-3/8 Senior Subordinated Note Indenture; and”.

 

1.12                        Amendments
to Subsection 7.5:  Restricted
Junior Payments.

 

Subsection 7.5
of the Credit Agreement is hereby amended by

 

(a)
deleting clause (i)  thereof in its
entirety and by substituting the following therefor:

 

“(i)                               Company
may make scheduled payments of principal in respect of any 10-3/8% Senior
Subordinated Notes not tendered pursuant to the 2004 Tender Offer, and which
has not been defeased in accordance with subsection 7.5(ii)(b) and the
10-3/8% Senior Subordinated Note Indenture, in each case in accordance with the
terms of, and only to the extent required by, and subject to the subordination
provisions contained in, the 10-3/8% Senior Subordinated Note Indenture,”

 

(b)
deleting clause (ii)(b) thereof in its entirety and by substituting the following
therefor:

 

“(b)                           repurchase,
redeem, defease or otherwise prepay or retire any 10-3/8% Senior Subordinated
Notes not tendered pursuant to the 2004 Tender Offer on terms (set forth in the
10-3/8% Senior Subordinated Note Indenture or otherwise) no less favorable in
any material respect to Company and Lenders than the terms of the 2004 Tender
Offer;”

 

(c)
deleting clause (ii)(c) thereof in its entirety and by substituting the
following therefor:

 

11

 

“(c)                            repurchase,
redeem, defease or otherwise prepay or retire the New Senior Subordinated Notes
and the Refinancing Sub Debt; provided that, in each case, after giving
effect thereto the Available Amount Usage shall not exceed the Available
Amount;”

 

; and
(d) deleting clause (ii)(g) thereof in its entirety and by substituting the
following therefor:

 

“(g)                           redeem,
repurchase or otherwise prepay (1) the 10-3/8% Senior Subordinated Notes with
the proceeds of the New Senior Subordinated Notes and the Tranche C1 Term Loans
and (2) the New Senior Subordinated Notes with the proceeds of the Refinancing
Sub Debt.”.

 

1.13                        Amendments
to Subsection 7.8: Capital Expenditures.

 

A.                                    Subsection 7.8A
is hereby amended by deleting the text of such subsection in its entirety
and by substituting therefor the phrase “Intentionally Omitted”.

 

B.                                    Subsection 7.8B
is hereby amended by deleting the phrase “$75,000,000 (the “Minimum Amount”)” thereof in its entirety and by
substituting the following phrase therefor “(a) $105,000,000 in Fiscal Year
2005 and Fiscal Year 2006, or (b) $110,000,000 in Fiscal Year 2007 and
thereafter (the “Minimum Amount”)”.

 

1.14                        References
to Bankers Trust Company and BTCo.

 

As of the Third Amendment Effective Date, all
references to “Bankers Trust Company” or “BTCo” contained in the Credit
Agreement (and the other Loan Documents) shall be deemed to be references to “Deutsche
Bank Trust Company Americas” or “DB”, respectively.

 

1.15                        Substitution
of Exhibits and Schedules.

 

A.                                    Exhibit
VI to the Credit Agreement is hereby amended by deleting said Exhibit VI
in its entirety and substituting in place thereof a new Exhibit VI in
the form of Annex A to this Amendment.

 

B.                                    Exhibit
VII to the Credit Agreement is hereby amended by deleting said Exhibit
VII in its entirety and substituting in place thereof a new Exhibit VII
in the form of Annex B to this Amendment.

 

1.16                        Limited
Waiver.

 

Upon termination of the Revolving Loan Commitments
outstanding under subsection 2.1A(iv)(a) by Company on the Third Amendment
Effective Date, Requisite Lenders hereby waive any failure of such termination
to comply with the requirements of subsection 2.4B(ii) of the Credit
Agreement.

 

12

 

Section 2.                                          CONDITIONS
TO EFFECTIVENESS

 

This Amendment shall become effective only upon the
satisfaction of all of the following conditions precedent (the date of
satisfaction of such conditions being referred to herein as the “Third Amendment Effective Date”) set forth in this Section 2:

 

A.                                    Corporate Documents. 
On or before the Third Amendment Effective Date, Company shall, and
shall cause each other Credit Support Party to, deliver to Lenders (or to
Administrative Agent for Lenders with sufficient originally executed copies,
where appropriate, for each Lender and its counsel), with respect to Company or
such other Credit Support Party, as the case may be, the following:

 

1.                                       Secretary’s
Certificates, in form and substance reasonably satisfactory to Administrative
Agent and dated the Third Amendment Effective Date, certifying that (1) the
Organizational Documents of Company, (2) the resolutions of the Board of
Directors of Company and each other Credit Support Party and (3) the signature
and incumbency certificate of Company and each other Credit Support Party, in
each case as delivered or reaffirmed to Administrative Agent on the First
Amendment Effective Date, are in full force and effect and have not been
amended or modified in any respect since the First Amendment Effective Date;
and

 

2.                                       Resolutions
of Company’s Board of Directors approving and authorizing the execution,
delivery, and performance of this Amendment and approving and authorizing the
execution, delivery and payment of the Tranche C1 Term Loans and the New
Revolving Loans, certified as of the Third Amendment Effective Date by its
corporate secretary or an assistant secretary as being in full force and effect
without modification or amendment;

 

B.                                    Third
Amendment.

 

(i)                                     Administrative
Agent shall have received from (a) the Requisite Lenders, (b) Administrative
Agent and Issuing Lender, (c) each Lender having a Tranche C1 Term Loan
Commitment, (d) each Lender having a New Revolving Loan Commitment and (e)
Company and the other Credit Support Parties, (1) a counterpart of this
Amendment signed on behalf of such party and/or (2) written evidence
satisfactory to Administrative Agent that such party has signed a counterpart
of a commitment with respect to such Lender’s Tranche C1 Term Loan Commitment
or New Revolving Loan Commitment, as the case may be; and

 

(ii)                                  Administrative
Agent shall have received from Company on the Third Amendment Effective Date notice
that Company is terminating all Revolving Loan Commitments outstanding under
subsection 2.1A(iv)(a) of the Credit Agreement.

 

C.                                    Opinion of Counsel.  On or before the Third Amendment
Effective Date, Company shall have delivered to Lenders (or to Administrative
Agent for Lenders with sufficient originally executed copies, where
appropriate, for each Lender and its counsel) originally executed copies
of one or more favorable written opinions of (i) Latham & Watkins LLP, special
counsel for Loan Parties, and (ii) Russell D. Phillips, Jr., Esq., General

 

13

 

Counsel for Loan Parties, in each case in form and substance reasonably
satisfactory to Administrative Agent and its counsel, dated as of the Third
Amendment Effective Date, with respect to the enforceability of this Amendment,
the Tranche C Term Notes and Revolving Notes, and as to such other matters as
Administrative Agent acting on behalf of Lenders may reasonably request (this
Amendment constituting a written request by Company to such counsel to deliver
such opinions to Lenders).

 

D.                                    Notice
of Borrowing.  Administrative
Agent shall have received a Notice of Borrowing meeting the requirements of subsection 2.1B
of the Credit Agreement.  Such Notice of
Borrowing shall be deemed (i) to the extent of any conversion of Tranche C Term
Loans to Tranche C1 Term Loans, to request such conversion, (ii) to the extent of
the aggregate principal amount of any Exiting Lenders’ Tranche C Term Loans, to
request the funding of Tranche C1 Term Loans from any Increasing Lender and/or
any New Tranche C1 Term Loan Lenders in accordance with subsection 2.1A(iii)(c),
and to direct the voluntary prepayment of all Exiting Lenders’ Tranche C Term
Loans in accordance with subsection 2.4B(iv) of the Credit Agreement, and
(iii) to the extent any Revolving Loans are outstanding under subsection 2.1A(iv)(a)
to request the funding of New Revolving Loans in accordance with subsection 2.1A(iv)(b)
and to direct the voluntary prepayment of all such outstanding Revolving Loans
in accordance with subsection 2.4B(iv) of the Credit Agreement.

 

E.                                      Term Loan Interest Payments.  Company shall have paid to all Lenders having
Tranche C Term Loans, simultaneously with the making of the Tranche C1 Term
Loans hereunder, all accrued and unpaid interest on their Tranche C Term Loans
to the Third Amendment Effective Date.

 

F.                                      Revolving
Loan Payments.  Company shall have
paid to all Lenders having outstanding Revolving Loan Commitments immediately
prior to the Third Amendment Effective Date, all accrued and unpaid interest, Letter
of Credit Fees and Commitment Fees, to the Third Amendment Effective Date.

 

G.                                    Fees.  Administrative Agent shall have received any
fees separately agreed upon between Company and Administrative Agent.

 

H.                                    Completion
of Subordinated Debt Refinancing Proceedings.

 

(i)  Issuance
of New Senior Subordinated Notes by Company.  Company and the other parties thereto shall
have executed and delivered the New Senior Subordinated Note Indenture and the
New Senior Subordinated Notes, in each case all of the terms and conditions shall
be in form and substance reasonably satisfactory to Agents; Company shall have
delivered to Administrative Agent a fully executed or conformed copy of the New
Senior Subordinated Note Indenture; and Company shall have received not less
than $150,000,000 in gross proceeds from the issuance and sale of the New
Senior Subordinated Notes.  Company shall
have delivered to Administrative Agent an Officer’s Certificate, in form and
substance satisfactory to Administrative Agent, to the effect set forth in this
subsection.

 

14

 

(ii)  Defeasance
of the 10-3/8% Senior Subordinated Notes or Consummation of the 2004 Consent
Solicitation relating to the 10-3/8% Senior Subordinated Notes and 2004 Tender
Offer.  On the Third Amendment
Effective Date, either (a) all of the outstanding 10-3/8% Senior Subordinated
Notes shall have been defeased or discharged in accordance with the terms of
the 10-3/8% Senior Subordinated Note Indenture or (b) pursuant to the 2004
Consent Solicitation, Company shall have obtained all such consents and
amendments with respect to the 10-3/8% Senior Subordinated Note Indenture as
may be required to permit the consummation of the transactions contemplated by
the 2004 Consent Solicitation, the 2004 Tender Offer Materials and the Third
Amendment, the conditions to the consummation of the 2004 Consent Solicitation
shall not have been waived or modified in any respect that is materially
adverse to the Lenders without the prior written consent of the Agents, the
10-3/8% Senior Subordinated Note Indenture shall have been supplemented by a
supplemental indenture (the “10-3/8% Supplemental
Indenture”) effecting the amendments described in the 2004 Consent
Solicitation, Company shall have delivered to Administrative Agent a fully
executed or conformed copy of the 10-3/8% Supplemental Indenture, and Company shall have accepted for repurchase all of the
10-3/8% Senior Subordinated Notes tendered in the 2004 Tender Offer.

 

I.                                         Completion of Proceedings. 
On or before the Third Amendment Effective Date, all corporate and other
proceedings taken or to be taken in connection with the transactions
contemplated hereby and all documents incidental thereto not previously found
acceptable by Administrative Agent, acting on behalf of Lenders, and its
counsel shall be satisfactory in form and substance to Administrative Agent and
such counsel, and Administrative Agent and such counsel shall have received all
such counterpart originals or certified copies of such documents as
Administrative Agent may reasonably request.

 

Section 3.                                          COMPANY’S
REPRESENTATIONS AND WARRANTIES

 

In order to induce Lenders and Administrative Agent to
enter into this Amendment and to amend the Credit Agreement in the manner
provided herein, Company represents and warrants to Administrative Agent and
each Lender that the following statements are true, correct and complete:

 

A.                                    Corporate
Power and Authority.  Each Loan Party
has all requisite corporate, limited partnership or limited liability company
power and authority to enter into this Amendment, to issue the Tranche C Term
Notes and the Revolving Notes and to carry out the transactions contemplated
by, and perform its obligations under, the Credit Agreement as amended by this
Amendment (the “Amended Agreement”).

 

B.                                    Authorization
of Agreements.  The execution and
delivery of this Amendment, the performance of the Amended Agreement and the
issuance, delivery and payment of the Tranche C Term Notes and the Revolving
Notes have been duly authorized by all necessary corporate, limited partnership
or limited liability company action on the part of each Loan Party, as the case
may be.

 

15

 

C.                                    No
Conflict.  The execution and delivery
by each Loan Party of this Amendment and the issuance, delivery and payment of
the Tranche C Term Notes and the Revolving Notes do not and will not (i)
violate any provision of any law or any governmental rule or regulation
applicable to such Loan Party, the Certificate or Articles of Incorporation or
other organizational documents or Bylaws of such Loan Party or any order,
judgment or decree of any court or other agency of government binding on such
Loan Party, (ii) conflict with, result in a breach of or constitute (with due
notice or lapse of time or both) a default under any Contractual Obligation of such
Loan Party, (iii) result in or require the creation or imposition of any
Lien upon any of the properties or assets of such Loan Party (other than Liens
created under any of the Loan Documents in favor of Collateral Agent on behalf
of Lenders), or (iv) require any approval of stockholders or any approval
or consent of any Person under any Contractual Obligation of such Loan Party,
except for such approvals or consents which have been obtained on or before the
Third Amendment Effective Date and disclosed in writing to Lenders.

 

D.                                    Governmental
Consents.  The execution and delivery
by each Loan Party of this Amendment, the performance by such Loan Party of the
Amended Agreement and the issuance, delivery and payment of the Tranche C Term
Notes and the Revolving Notes by the Company do not and will not require any
registration with, consent or approval of, or notice to, or other action to,
with or by, any federal, state or other governmental authority or regulatory
body.

 

E.                                      Binding
Obligation.  This Amendment and the
Amended Agreement have been duly executed and delivered by each Loan Party
party thereto and are, and the Tranche C Term Notes and the Revolving Notes,
when executed and delivered, will be, the legally valid and binding obligations
of such Loan Party, enforceable against such Loan Party in accordance with
their respective terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’
rights generally or by equitable principles relating to enforceability.

 

F.                                      Incorporation
of Representations and Warranties From Credit Agreement.  The representations and warranties contained
in Section 5 of the Amended Agreement are and will be true, correct and
complete in all material respects on and as of the Third Amendment Effective
Date to the same extent as though made on and as of that date, except to the
extent such representations and warranties specifically relate to an earlier
date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

 

G.                                    Absence
of Default.  No event has occurred
and is continuing or will result from the consummation of the transactions
contemplated by this Amendment that constitutes or would constitute an Event of
Default or a Potential Event of Default after giving effect to this Amendment.

 

Section 4.                                          ACKNOWLEDGEMENT
AND CONSENT

 

Company is a party to the Collateral Account
Agreement, pursuant to which Company has created Liens in favor of
Administrative Agent on a certain deposit account of

 

16

 

Company upon the occurrence of an event stated
therein; the Amended and Restated Pledge Agreement, pursuant to which Company
has affirmed, among other things, the pledge to Collateral Agent for the
benefit of Secured Parties of certain capital stock and intercompany
indebtedness owned by it to secure the Secured Obligations; and the Security
Agreement, pursuant to which Company has granted Liens in favor of Collateral
Agent on certain Collateral to secure the Secured Obligations, in each case as
amended through the Third Amendment Effective Date.

 

Each Subsidiary Guarantor is a party to the Subsidiary
Guaranty pursuant to which such Subsidiary Guarantor has guarantied the Obligations;
the Amended and Restated Pledge Agreement pursuant to which such Subsidiary
Guarantor has affirmed, among other things, the pledge to Collateral Agent for
the benefit of Secured Parties of certain capital stock and intercompany
indebtedness owned by it to secure the obligations of such Subsidiary Guarantor
under the Subsidiary Guaranty and Additional Debt (as defined in the Security
Agreement); and the Security Agreement pursuant to which such Subsidiary
Guarantor will grant Liens in favor of Collateral Agent on certain Collateral
to secure the obligations of such Subsidiary Guarantor under the Subsidiary
Guaranty and Additional Debt (as defined in the Security Agreement), in each
case as amended through the Third Amendment Effective Date.  Company and the Subsidiary Guarantors are
collectively referred to herein as the “Credit Support Parties”,
and the Collateral Account Agreement, the Amended and Restated Pledge Agreement
and the Security Agreement are collectively referred to herein as the “Credit Support Documents.”

 

Each Credit Support Party hereby acknowledges that it
has reviewed the terms and provisions of the Credit Agreement and this
Amendment and consents to the amendment of the Credit Agreement effected
pursuant to this Amendment.  Each Credit
Support Party hereby confirms that each Credit Support Document to which it is
a party or otherwise bound and all Collateral encumbered thereby will continue
to guaranty or secure, as the case may be, to the fullest extent possible the
payment and performance of all Secured Obligations, as the case may be (in each
case as such terms are defined in the applicable Credit Support Document),
including without limitation the payment and performance of all such Secured
Obligations, as the case may be, in respect of the Obligations of Company now
or hereafter existing under or in respect of the Amended Agreement and the
Notes defined therein.  Each Credit
Support Party acknowledges and agrees that any of the Credit Support Documents
to which it is a party or otherwise bound shall continue in full force and
effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired or limited by the execution or
effectiveness of this Amendment.  Each
Credit Support Party represents and warrants that all representations and
warranties contained in the Amended Agreement and the Credit Support Documents
to which it is a party or otherwise bound are true, correct and complete in all
material respects on and as of the date hereof to the same extent as though
made on and as of that date, except to the extent such representations and
warranties specifically relate to an earlier date, in which case they were
true, correct and complete in all material respects on and as of such earlier date.

 

Each Credit Support Party (other than Company)
acknowledges and agrees that (i) notwithstanding the conditions to
effectiveness set forth in this Amendment, such Credit Support Party is not
required by the terms of the Credit Agreement or any other Loan

 

17

 

Document to consent to the amendments to the Credit
Agreement effected pursuant to this Amendment and (ii) nothing in the
Credit Agreement, this Amendment or any other Loan Document shall be deemed to require
the consent of such Credit Support Party to any future amendments to the Credit
Agreement.

 

Section 5.                                          MISCELLANEOUS

 

A.                                    Reference
to and Effect on the Credit Agreement and the Other Loan Documents.

 

(i)                                     On
and after the Third Amendment Effective Date, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like
import referring to the Credit Agreement, and each reference in the other Loan
Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement shall mean and be a reference to the
Amended Agreement.

 

(ii)                                  Except
as specifically amended by this Amendment, the Credit Agreement and the other
Loan Documents shall remain in full force and effect and are hereby ratified
and confirmed.

 

(iii)                               The execution, delivery
and performance of this Amendment shall not, except as expressly provided
herein, constitute a waiver of any provision of, or operate as a waiver of any
right, power or remedy of Administrative Agent or any Lender under, the Credit
Agreement or any of the other Loan Documents.

 

B.                                    Obligations
of New Tranche C1 Term Loan Lenders and New Revolving Lenders.  Each of Company and each Lender having a
Tranche C1 Term Loan Commitment and each Lender having a New Revolving Loan
Commitment hereby agrees that, upon the effectiveness of this Amendment, each such
Lender shall be a party to the Credit Agreement and shall have all of the
rights and obligations under the Loan Documents, and shall be deemed to have
made all of the covenants and agreements contained in the Loan Documents,
arising out of or otherwise related to the Tranche C1 Term Loans or the New
Revolving Loan Commitments, as the case may be.

 

C.                                    Fees
and Expenses.  Payment of all costs,
fees and expenses as described in subsection 10.2 of the Credit Agreement incurred
by Administrative Agent or its counsel with respect to this Amendment and the
documents and transactions contemplated hereby shall be paid by Company as
agreed upon between Company and Agents.

 

D.                                    Headings.  Section and subsection headings in
this Amendment are included herein for convenience of reference only and shall
not constitute a part of this Amendment for any other purpose or be given any
substantive effect.

 

E.                                      Applicable
Law.  THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE

 

18

 

STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF
LAWS PRINCIPLES.

 

F.                                      Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are physically
attached to the same document.

 

19

 

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

 

 

	
   

  	
  ALLIANCE
  IMAGING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Hanson

  	
   

  
	
   

  	
  Name:  Brian Hanson

  
	
   

  	
  Title:  Executive Vice President &

  Chief Financial Officer

  

 

S-1

 

	
   

  	
  ALLIANCE IMAGING CENTERS, INC.

  
	
   

  	
  ALLIANCE IMAGING MANAGEMENT, INC.

  
	
   

  	
  ROYAL MEDICAL HEALTH SERVICES, INC.

  
	
   

  	
  ALLIANCE IMAGING OF OHIO, INC.

  
	
   

  	
  ALLIANCE IMAGING OF MICHIGAN, INC.

  
	
   

  	
  MEDICAL CONSULTANTS IMAGING CO.

  
	
   

  	
  ALLIANCE IMAGING NC, INC. (f/k/a MOBILE TECHNOLOGY INC.)

  
	
   

  	
  MEDICAL DIAGNOSTICS, INC.

  
	
   

  	
  WESTERN MASSACHUSETTS MAGNETIC RESONANCE SERVICES, INC.

  
	
   

  	
  GREATER BOSTON MRI L.P.

  
	
   

  	
  GREATER SPRINGFIELD MRI L.P.

  
	
   

  	
  CURACARE, INC.

  
	
   

  	
  AMERICAN SHARED-CURACARE

  
	
   

  	
  SMT HEALTH SERVICES INC.

  
	
   

  	
  MID-AMERICAN IMAGING, INC.

  
	
   

  	
  RIA MANAGEMENT SERVICES, INC.

  
	
   

  	
  GREATER BOSTON MRI SERVICES, INC.

  
	
   

  	
  CENTRAL MASSACHUSETTS MRI SERVICES, INC.

  
	
   

  	
  DIMENSIONS MEDICAL GROUP, INC.

  
	
   

  	
  MERITUS PLS, INC.

  
	
   

  	
  QUINCY MRI, L.P.

  
	
   

  	
  THREE RIVERS HOLDING CORP.

  
	
   

  	
  SOUTHEAST ARIZONA, INC.

  
	
   

  	
   

  
	
   

  	
  (for purposes of Section 4
  only) as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Hanson

  
	
   

  	
  Name:  Brian Hanson

  
	
   

  	
  Title:  Executive Vice President &

  Chief Financial Officer

  

 

S-2

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY
  AMERICAS, individually and as Administrative Agent, Issuing Lender and
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Diane F. Rolfe

  
	
   

  	
  Name:  Diane F. Rolfe

  
	
   

  	
  Title:  Vice President

  

 

S-3

 

	
   

  	
  CITIGROUP NORTH AMERICA, INC.,
  individually and as Syndication Agent and Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard C. Zogheb

  
	
   

  	
  Name:  Richard C. Zogheb

  
	
   

  	
  Title:  Vice President

  

 

S-4

 

	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,
  individually and as Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Pabt

  
	
   

  	
  Name:  Jeffrey Pabt

  
	
   

  	
  Title:  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN BROTHERS INC.,
  individually and as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Pabt

  
	
   

  	
  Name:  Jeffrey Pabt

  
	
   

  	
  Title:  SVP

  

 

S-5

 

	
   

  	
  MERRILL LYNCH & CO.,

  
	
   

  	
   

  
	
   

  	
  MERRILL LYNCH, PIERCE, FENNER
  &

  SMITH INCORPORATED, as Co-

  Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen B. Paras

  
	
   

  	
  Name:  Stephen B. Paras

  
	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MERRILL LYNCH CAPITAL

  CORPORATION, as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard E. O’Brien

  
	
   

  	
  Name:  Richard E. O’Brien

  
	
   

  	
  Title:  Vice President

  

 

S-6

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

S-7

 

Annex A

 

 

(See Attached)

 

 

EXHIBIT VI

 

[FORM OF TRANCHE C TERM NOTE]

 

ALLIANCE IMAGING, INC.

 

PROMISSORY NOTE DUE DECEMBER 29, 2011

 

	
  $(1)

  	
  New York, New York

  

 

December 29, 2004

 

FOR VALUE RECEIVED, ALLIANCE
IMAGING, INC., a Delaware corporation (“Company”),
promises to pay to                        (2)
(“Payee”) or its registered assigns the
principal amount of                        (3)
($[1]) in the installments referred to below.

 

Company also promises to pay interest on the unpaid
principal amount hereof, from the date hereof until paid in full, at the rates
and at the times which shall be determined in accordance with the provisions of
that certain Credit Agreement dated as of November 2, 1999 by and among
Company, the financial institutions party thereto as Lenders, and Deutsche Bank
Trust Company Americas, as Administrative Agent (said Credit Agreement, as
amended by that certain First Amendment dated as of May 11, 2000, as further
amended by that certain Second Amendment dated as of June 10, 2002, as
further amended by that certain Third Amendment dated as of December 29,
2004 and as it may further be amended, supplemented or otherwise modified from
time to time, being the “Credit Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined).

 

Company shall make principal payments on this Note in
consecutive annual installments, commencing on December 29, 2005, as set
forth in the Credit Agreement.  Each such
installment shall be due on the date specified in the Credit Agreement and in
an amount determined in accordance with the provisions thereof; provided
that the last such installment shall be in an amount sufficient to repay the
entire unpaid principal balance of this Note, together with all accrued and
unpaid interest thereon.

 

This Note is one of Company’s “Tranche C Term Notes”
in the aggregate principal amount of $390,000,000 and is issued pursuant to and
entitled to the benefits of the Credit Agreement, to which reference is hereby
made for a more complete statement of the terms 

 

 

(1)                                  Insert
amount of Lender’s Tranche C Term Loan in numbers.

 

(2)                                  Insert
Lender’s name in capital letters.

 

(3)                                  Insert
amount of Lender’s Tranche C Term Loan in words.

 

 

and conditions under
which the Tranche C Term Loan evidenced hereby was made and is to be repaid.

 

All payments of principal and interest in respect of
this Note shall be made in lawful money of the United States of America in same
day funds at the Funding and Payment Office or at such other place as shall be
designated in writing for such purpose in accordance with the terms of the
Credit Agreement.  Unless and until an
Assignment Agreement effecting the assignment or transfer of this Note shall
have been accepted by Administrative Agent and recorded in the Register as
provided in subsection 10.1B(ii) of the Credit Agreement, Company and
Administrative Agent shall be entitled to deem and treat Payee as the owner and
holder of this Note and the Loan evidenced hereby.  Payee hereby agrees, by its acceptance
hereof, that before disposing of this Note or any part hereof it will make a
notation hereon of all principal payments previously made hereunder and of the
date to which interest hereon has been paid; provided, however,
that the failure to make a notation of any payment made on this Note shall not
limit or otherwise affect the obligations of Company hereunder with respect to
payments of principal of or interest on this Note.

 

Whenever any payment on this Note shall be stated to
be due on a day which is not a Business Day, such payment shall be made on the
next succeeding Business Day and such extension of time shall be included in
the computation of the payment of interest on this Note.

 

This Note is subject to mandatory prepayment as
provided in subsection 2.4B(iii) of the Credit Agreement and to prepayment
at the option of Company as provided in subsection 2.4B(i) of the Credit
Agreement.

 

THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF
COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

Upon the occurrence of an Event of Default, the unpaid
balance of the principal amount of this Note, together with all accrued and
unpaid interest thereon, may become, or may be declared to be, due and payable
in the manner, upon the conditions and with the effect provided in the Credit
Agreement.

 

The terms of this Note are subject to amendment only
in the manner provided in the Credit Agreement.

 

This Note is subject to restrictions on transfer or
assignment as provided in subsections 10.1 and 10.15 of the Credit Agreement.

 

 

 

Company and any endorsers of this Note hereby consent
to renewals and extensions of time at or after the maturity hereof, without
notice, and hereby waive diligence, presentment, protest, demand and notice of
every kind and, to the full extent permitted by law, the right to plead any
statute of limitations as a defense to any demand hereunder.

 

 

 

IN WITNESS WHEREOF, Company has caused this Note to be
duly executed and delivered by its officer thereunto duly authorized as of the
date and at the place first written above.

 

 

	
   

  	
  ALLIANCE IMAGING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

 

Annex B

 

 

(See Attached)

 

 

 

EXHIBIT VII

 

[FORM OF REVOLVING NOTE]

 

ALLIANCE IMAGING, INC.

 

PROMISSORY NOTE DUE DECEMBER 29, 2010

 

	
  $(4)

  	
  New York, New York

  

 

December 29, 2004

 

FOR VALUE RECEIVED, ALLIANCE
IMAGING, INC., a Delaware corporation (“Company”),
promises to pay to                         (5)
(“Payee”) or its registered assigns, on
or before December 29, 2010, the lesser of (x)                     (6)
 ($[1]) and (y) the unpaid principal
amount of all advances made by Payee to Company as Revolving Loans under the
Credit Agreement referred to below.

 

Company also promises to pay interest on the unpaid
principal amount hereof, from the date hereof until paid in full, at the rates
and at the times which shall be determined in accordance with the provisions of
that certain Credit Agreement dated as of November 2, 1999 by and among
Company, the financial institutions party thereto as Lenders, and Deutsche Bank
Trust Company Americas, as Administrative Agent (said Credit Agreement, as
amended by that certain First Amendment dated as of May 11, 2000, as further
amended by that certain Second Amendment dated as of June 10, 2002, as
further amended by that certain Third Amendment dated as of December 29,
2004 and as it may further be amended, supplemented or otherwise modified from
time to time, being the “Credit Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined).

 

This Note is one of Company’s “Revolving Notes” in the
aggregate principal amount of $70,000,000 and is issued pursuant to and
entitled to the benefits of the Credit Agreement, to which reference is hereby
made for a more complete statement of the terms and conditions under which the Revolving
Loans evidenced hereby were made and are to be repaid.

 

All payments of principal and interest in respect of
this Note shall be made in lawful money of the United States of America in same
day funds at the Funding and Payment Office or at such other place as shall be
designated in writing for such purpose in accordance with the terms of the
Credit Agreement.  Unless and until an
Assignment Agreement

 

 

(4)                                  Insert
amount of Lender’s Revolving Loan Commitment in numbers.

 

(5)                                  Insert
Lender’s name in capital letters.

 

(6)                                  Insert
amount of Lender’s Revolving Loan Commitment in words.

 

 

 

effecting the assignment or transfer of this Note
shall have been accepted by Administrative Agent and recorded in the Register
as provided in subsection 10.1B(ii) of the Credit Agreement, Company and
Administrative Agent shall be entitled to deem and treat Payee as the owner and
holder of this Note and the Loans evidenced hereby.  Payee hereby agrees, by its acceptance hereof,
that before disposing of this Note or any part hereof it will make a notation
hereon of all principal payments previously made hereunder and of the date to
which interest hereon has been paid; provided, however, that the
failure to make a notation of any payment made on this Note shall not limit or
otherwise affect the obligations of Company hereunder with respect to payments
of principal of or interest on this Note.

 

Whenever any payment on this Note shall be stated to
be due on a day which is not a Business Day, such payment shall be made on the
next succeeding Business Day and such extension of time shall be included in
the computation of the payment of interest on this Note.

 

This Note is subject to mandatory prepayment as
provided in subsection 2.4B(iii) of the Credit Agreement and to prepayment
at the option of Company as provided in subsection 2.4B(i) of the Credit
Agreement.

 

THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF
COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

Upon the occurrence of an Event of Default, the unpaid
balance of the principal amount of this Note, together with all accrued and
unpaid interest thereon, may become, or may be declared to be, due and payable
in the manner, upon the conditions and with the effect provided in the Credit
Agreement.

 

The terms of this Note are subject to amendment only
in the manner provided in the Credit Agreement.

 

This Note is subject to restrictions on transfer or
assignment as provided in subsections 10.1 and 10.15 of the Credit Agreement.

 

Company and any endorsers of this Note hereby consent
to renewals and extensions of time at or after the maturity hereof, without
notice, and hereby waive diligence, presentment, protest, demand and notice of
every kind and, to the full extent permitted by law, the right to plead any
statute of limitations as a defense to any demand hereunder.

 

 

 

IN WITNESS WHEREOF, Company has caused this Note to be
duly executed and delivered by its officer thereunto duly authorized as of the
date and at the place first written above.

 

 

	
   

  	
  ALLIANCE IMAGING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

 

TRANSACTIONS

 

ON

 

REVOLVING NOTE

 

 

	
  Date

  	
   

  	
  Type of

  Loan Made

  This Date

  	
   

  	
  Amount of

  Loan Made

  This Date

  	
   

  	
  Amount of

  Principal Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance

  This Date

  	
   

  	
  Notation

  Made By

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