Document:

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                                                                   Exhibit 10.1

                              EMPLOYMENT AGREEMENT

            THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into by and
between Daniel Marriott ("Employee") and USA Networks, Inc., a Delaware
company ("USA" or the "Company"), and is effective March 1, 2002 (the
"Effective Date").

            WHEREAS, the Company desires to establish its right to the
services of Employee, in the capacity described below, on the terms and
conditions hereinafter set forth, and Employee is willing to accept such
employment on such terms and conditions.

            NOW, THEREFORE, in consideration of the mutual agreements
hereinafter set forth, Employee and the Company have agreed and do hereby
agree as follows:

1A. EMPLOYMENT. The Company agrees to employ Employee as Senior Vice
President, Strategic Planning and Employee accepts and agrees to such
employment. During Employee's employment with the Company, Employee shall do
and perform all services and acts necessary or advisable to fulfill the
duties and responsibilities as are commensurate and consistent with
Employee's position and shall render such services on the terms set forth
herein. During Employee's employment with the Company, Employee shall report
directly to the Vice Chairman or such person(s) as from time to time may be
designated by the Company (hereinafter referred to as the "Reporting
Officer"). Employee shall have such powers and duties with respect to the
Company as may reasonably be assigned to Employee by the Reporting Officer,
to the extent consistent with Employee's position and status. Employee agrees
to devote all of Employee's working time, attention and efforts to the
Company and to perform the duties of Employee's position in accordance with
the Company's policies as in effect from time to time. Employee's principal
place of employment shall be the Company's offices located in New York, New
York.

2A. TERM OF AGREEMENT. The term ("Term") of this Agreement shall commence on
the Effective Date and shall continue for a period of three years, unless
sooner terminated in accordance with the provisions of Section 1 of the
Standard Terms and Conditions attached hereto.

3A. COMPENSATION.

      (a) BASE SALARY. During the Term, the Company shall pay Employee an
annual base salary of $400,000 (the "Base Salary"), payable in equal biweekly
installments or in accordance with the Company's payroll practice as in
effect from time to time. For all purposes under this Agreement, the term
"Base Salary" shall refer to Base Salary as in effect from time to time.

      (b) SIGNING AND DISCRETIONARY BONUS. Employee shall receive a signing
bonus of $100,000 on the Effective Date. During the Term, Employee shall be
eligible to receive discretionary annual bonuses.

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      (c) STOCK OPTION. In consideration of Employee's entering into this
Agreement and as an inducement to join the Company, Employee shall be granted
under USA Networks, Inc.'s 2000 Stock and Annual Incentive Plan (the "Plan")
a non-qualified stock option (the "Option") to purchase 150,000 shares of USA
Networks, Inc. ("USAi") common stock, par value $.0l per share (the "Common
Stock"), subject to the approval of the Compensation Committee of the Board
of Directors of USAi. The date of grant of the Option shall be the later of
(x) the Effective Date, (y) the date on which the grant is approved by such
Compensation Committee, and (z) the date on which the Employee commences
employment with the Company. The exercise price of the Option shall equal the
last reported sales price of the Common Stock in the over-the-counter market
(or such other market on which the Common stock is then traded) on the date
preceding the date of grant. Such Option shall vest and become exercisable in
four equal installments on each of the first, second, third and fourth
anniversaries of the Effective Date, provided that the Option shall become
100% vested and exercisable upon a Change in Control (as such term is defined
in the Plan). The Option shall expire upon the earlier to occur of (i) ten
years from the date of grant (the "Option Term") or (ii) except as otherwise
provided in the Option award agreement, 90 days following the termination of
Employee's employment with the Company for any reason. Other than
acceleration of the Option following a Change in Control, the Option shall
not otherwise become vested and exercisable as a result of the termination or
non-renewal of this Agreement (or the termination of Employee's employment
with the Company) for any reason.

      BENEFITS. From the Effective Date through the date of termination of
Employee's employment with the Company for any reason, Employee shall be
entitled to participate in any welfare, health and life insurance and pension
benefit and incentive programs as may be adopted from time to time by the
Company on the same basis as that provided to similarly situated employees of
the Company. Without limiting the generality of the foregoing, Employee shall
be entitled to the following benefits:

            (i) REIMBURSEMENT FOR BUSINESS EXPENSES. During the Term, the
      Company shall reimburse Employee for all reasonable and necessary expenses
      incurred by Employee in performing Employee's duties for the Company, on
      the same basis as similarly situated employees and in accordance with the
      Company's policies as in effect from time to time.

            (ii) VACATION. During the Term, Employee shall be entitled to four
      weeks of paid vacation per year, in accordance with the plans, policies,
      programs and practices of the Company applicable to similarly situated
      employees of the Company generally.

            (iii) RELOCATION. The Company shall reimburse Employee for
      reasonable relocation expenses as approved by the Company.

4A. NOTICES. All notices and other communications under this Agreement shall
be in writing and shall be given by first-class mail, certified or registered
with return receipt requested or hand delivery acknowledged in writing by the
recipient personally, and shall be deemed to have been duly given three days
after mailing or immediately upon duly acknowledged hand delivery to the
respective persons named below:

                                      2
<Page>

      If to the Company:      USA Networks, Inc.

                              152 West 57th Street
                              New York, NY 10019
                              Attention: General Counsel

      If to Employee:         79 Laight Street, Apt. 4F

                              New York, NY 10013

Either party may change such party's address for notices by notice duly given
pursuant hereto.

5A. GOVERNING LAW; JURISDICTION. This Agreement and the legal relations thus
created between the parties hereto shall be governed by and construed under
and in accordance with the internal laws of the State of New York without
reference to the principles of conflicts of laws. Any and all disputes
between the parties which may arise pursuant to this Agreement will be heard
and determined before an appropriate federal court in New York, or, if not
maintainable therein, then in an appropriate New York state court. The
parties acknowledge that such courts have jurisdiction to interpret and
enforce the provisions of this Agreement, and the parties consent to, and
waive any and all objections that they may have as to, personal jurisdiction
and/or venue in such courts.

6A. COUNTERPARTS. This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original but all of which together
will constitute one and the same instrument. Employee expressly understands
and acknowledges that the Standard Terms and Conditions attached hereto are
incorporated herein by reference, deemed a part of this Agreement and are
binding and enforceable provisions of this Agreement. References to "this
Agreement" or the use of the term "hereof" shall refer to this Agreement and
the Standard Terms and Conditions attached hereto, taken as a whole.

                                      3
<Page>

            IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed and delivered by its duly authorized officer and Employee has
executed and delivered this Agreement on March 1, 2002.

                                    USA NETWORKS, INC.

                                    _________________________________________
                                    By:
                                    Title:

                                    DANIEL MARRIOTT

                                    _________________________________________

                                      4
<Page>

                          STANDARD TERMS AND CONDITIONS

1.    TERMINATION OF EMPLOYEE'S EMPLOYMENT.

      (a) DEATH. In the event Employee's employment hereunder is terminated
by reason of Employee's death, the Company shall pay Employee's designated
beneficiary or beneficiaries, within 30 days of Employee's death in a lump
sum in cash, Employee's Base Salary through the end of the month in which
death occurs and any Accrued Obligations (as defined in paragraph 1(f) below).

      (b) DISABILITY. If, as a result of Employee's incapacity due to
physical or mental illness ("Disability"), Employee shall have been absent
from the full-time performance of Employee's duties with the Company for a
period of four consecutive months and, within 30 days after written notice is
provided to Employee by the Company (in accordance with Section 6 hereof),
Employee shall not have returned to the full-time performance of Employee's
duties, Employee's employment under this Agreement may be terminated by the
Company for Disability. During any period prior to such termination during
which Employee is absent from the full-time performance of Employee's duties
with the Company due to Disability, the Company shall continue to pay
Employee's Base Salary at the rate in effect at the commencement of such
period of Disability, offset by any amounts payable to Employee under any
disability insurance plan or policy provided by the Company. Upon termination
of Employee's employment due to Disability, the Company shall pay Employee
within 30 days of such termination (i) Employee's Base Salary through the end
of the month in which termination occurs in a lump sum in cash, offset by any
amounts payable to Employee under any disability insurance plan or policy
provided by the Company; and (ii) any Accrued Obligations (as defined in
paragraph 1(f) below).

      (c) TERMINATION FOR CAUSE. The Company may terminate Employee's
employment under this Agreement for Cause at any time prior to the expiration
of the Term. As used herein, "Cause" shall mean: (i) the plea of guilty or
nolo contendere to, or conviction for, the commission of a felony offense by
Employee; PROVIDED, HOWEVER, that after indictment, the Company may suspend
Employee from the rendition of services, but without limiting or modifying in
any other way the Company's obligations under this Agreement; (ii) a material
breach by Employee of a fiduciary duty owed to the Company; (iii) a material
breach by Employee of any of the covenants made by Employee in Section 2
hereof; or (iv) the willful or gross neglect by Employee of the material
duties required by this Agreement. In the event of Employee's termination for
Cause, this Agreement shall terminate without further obligation by the
Company, except for the payment of any Accrued Obligations (as defined in
paragraph 1(f) below).

      (d) TERMINATION BY THE COMPANY OTHER THAN FOR DEATH, DISABILITY OR
CAUSE. If Employee's employment is terminated by the Company for any reason
other than Employee's death or Disability or for Cause, then (i) the Company
shall pay Employee the Base Salary through the end of the Term over the
course of the then remaining

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Term; and (ii) the Company shall pay Employee within 30 days of the date of
such termination in a lump sum in cash any Accrued Obligations (as defined in
paragraph 1(f) below).

      (e) MITIGATION; OFFSET. In the event of termination of Employee's
employment prior to the end of the Term, Employee shall use reasonable best
efforts to seek other employment and to take other reasonable actions to
mitigate the amounts payable under Section 1 hereof. If Employee obtains
other employment during the Term, the amount of any payment or benefit
provided for under Section 1 hereof which has been paid to Employee shall be
refunded to the Company by Employee in an amount equal to any compensation
earned by Employee as a result of employment with or services provided to
another employer after the date of Employee's termination of employment and
prior to the otherwise applicable expiration of the Term, and all future
amounts payable by the Company to Employee during the remainder of the Term
shall be offset by the amount earned by Employee from another employer. For
purposes of this Section 1(e), Employee shall have an obligation to inform
the Company regarding Employee's employment status following termination and
during the period encompassing the Term.

      (f) ACCRUED OBLIGATIONS. As used in this Agreement, "Accrued
Obligations" shall mean the sum of (i) any portion of Employee's Base Salary
through the date of death or termination of employment for any reason, as the
case may be, which has not yet been paid; and (ii) any compensation
previously earned but deferred by Employee (together with any interest or
earnings thereon) that has not yet been paid.

2.    CONFIDENTIAL INFORMATION; NON-SOLICITATION; AND PROPRIETARY RIGHTS.

      (a) CONFIDENTIALITY. Employee acknowledges that while employed by the
Company Employee will occupy a position of trust and confidence. Employee
shall not, except as may be required to perform Employee's duties hereunder
or as required by applicable law, without limitation in time or until such
information shall have become public other than by Employee's unauthorized
disclosure, disclose to others or use, whether directly or indirectly, any
Confidential Information regarding the Company or any of its subsidiaries or
affiliates. "Confidential Information" shall mean information about the
Company or any of its subsidiaries or affiliates, and their clients and
customers that is not disclosed by the Company or any of its subsidiaries or
affiliates for financial reporting purposes and that was learned by Employee
in the course of employment by the Company or any of its subsidiaries or
affiliates, including (without limitation) any proprietary knowledge, trade
secrets, data, formulae, information and client and customer lists and all
papers, resumes, and records (including computer records) of the documents
containing such Confidential Information. Employee acknowledges that such
Confidential Information is specialized, unique in nature and of great value
to the Company and its subsidiaries or affiliates, and that such information
gives the Company and its subsidiaries or affiliates a competitive advantage.
Employee agrees to deliver or return to the Company, at the Company's request
at any time or upon termination or expiration of Employee's employment or as
soon thereafter as possible, all documents, computer tapes and disks,
records, lists, data, drawings, prints, notes and written information (and
all copies thereof) furnished by the Company and its subsidiaries or
affiliates or prepared by Employee in the course of Employee's employment by
the Company and its subsidiaries or affiliates. As used in this Agreement,

                                      2
<Page>

"subsidiaries" and "affiliates" shall mean any company controlled by,
controlling or under common control with the Company.

      (b) NON-SOLICITATION OF EMPLOYEES. Employee recognizes that he will
possess confidential information about other employees of the Company and its
subsidiaries or affiliates relating to their education, experience, skills,
abilities, compensation and benefits, and inter-personal relationships with
suppliers to and customers of the Company and its subsidiaries or affiliates.
Employee recognizes that the information he will possess about these other
employees is not generally known, is of substantial value to the Company and
its subsidiaries or affiliates in developing their respective businesses and
in securing and retaining customers, and will be acquired by Employee because
of Employee's business position with the Company. Employee agrees that,
during the Term (and for a period of 24 months beyond the expiration of the
Term), Employee will not, directly or indirectly, solicit or recruit any
employee of the Company or any of its subsidiaries or affiliates for the
purpose of being employed by Employee or by any business, individual,
partnership, firm, corporation or other entity on whose behalf Employee is
acting as an agent, representative or employee and that Employee will not
convey any such confidential information or trade secrets about other
employees of the Company or any of its subsidiaries or affiliates to any
other person except within the scope of Employee's duties hereunder.

      (c) PROPRIETARY RIGHTS; ASSIGNMENT. All Employee Developments shall be
made for hire by the Employee for the Company or any of its subsidiaries or
affiliates. "Employee Developments" means any idea, discovery, invention,
design, method, technique, improvement, enhancement, development, computer
program, machine, algorithm or other work or authorship that (i) relates to
the business or operations of the Company or any of its subsidiaries or
affiliates, or (ii) results from or is suggested by any undertaking assigned
to the Employee or work performed by the Employee for or on behalf of the
Company or any of its subsidiaries or affiliates, whether created alone or
with others, during or after working hours. All Confidential Information and
all Employee Developments shall remain the sole property of the Company or
any of its subsidiaries or affiliates. The Employee shall acquire no
proprietary interest in any Confidential Information or Employee Developments
developed or acquired during the Term. To the extent the Employee may, by
operation of law or otherwise, acquire any right, title or interest in or to
any Confidential Information or Employee Development, the Employee hereby
assigns to the Company all such proprietary rights. The Employee shall, both
during and after the Term, upon the Company's request, promptly execute and
deliver to the Company all such assignments, certificates and instruments,
and shall promptly perform such other acts, as the Company may from time to
time in its discretion deem necessary or desirable to evidence, establish,
maintain, perfect, enforce or defend the Company's rights in Confidential
Information and Employee Developments.

                                      3
<Page>

      (d) COMPLIANCE WITH POLICIES AND PROCEDURES. During the Term, Employee
shall adhere to the policies and standards of professionalism set forth in
the Company's Policies and Procedures as they may exist from time to time.

      (e) REMEDIES FOR BREACH. Employee expressly agrees and understands that
Employee will notify the Company in writing of any alleged breach of this
Agreement by the Company, and the Company will have 30 days from receipt of
Employee's notice to cure any such breach.

          Employee expressly agrees and understands that the remedy at law
for any breach by Employee of this Section 2 will be inadequate and that
damages flowing from such breach are not usually susceptible to being
measured in monetary terms. Accordingly, it is acknowledged that upon
Employee's violation of any provision of this Section 2 the Company shall be
entitled to obtain from any court of competent jurisdiction immediate
injunctive relief and obtain a temporary order restraining any threatened or
further breach as well as an equitable accounting of all profits or benefits
arising out of such violation. Nothing in this Section 2 shall be deemed to
limit the Company's remedies at law or in equity for any breach by Employee
of any of the provisions of this Section 2, which may be pursued by or
available to the Company.

            (f) SURVIVAL OF PROVISIONS. The obligations contained in this
      Section 2 shall, to the extent provided in this Section 2, survive the
      termination or expiration of Employee's employment with the Company and,
      as applicable, shall be fully enforceable thereafter in accordance with
      the terms of this Agreement. If it is determined by a court of competent
      jurisdiction in any state that any restriction in this Section 2 is
      excessive in duration or scope or is unreasonable or unenforceable under
      the laws of that state, it is the intention of the parties that such
      restriction may be modified or amended by the court to render it
      enforceable to the maximum extent permitted by the law of that state.

3. TERMINATION OF PRIOR AGREEMENTS. This Agreement constitutes the entire
agreement between the parties and terminates and supersedes any and all prior
agreements and understandings (whether written or oral) between the parties
with respect to the subject matter of this Agreement. Employee acknowledges
and agrees that neither the Company nor anyone acting on its behalf has made,
and is not making, and in executing this Agreement, the Employee has not
relied upon, any representations, promises or inducements except to the
extent the same is expressly set forth in this Agreement. Employee hereby
represents and warrants that by entering into this Agreement, Employee will
not rescind or otherwise breach an employment agreement with Employee's
current employer prior to the natural expiration date of such agreement

4. ASSIGNMENT; SUCCESSORS. This Agreement is personal in its nature and none
of the parties hereto shall, without the consent of the others, assign or
transfer this Agreement or any rights or obligations hereunder, provided
that, in the event of the merger, consolidation, transfer, or sale of all or
substantially all of the assets of the Company with or to any other
individual or entity, this Agreement shall, subject to the provisions hereof,
be binding upon and inure to the benefit of such successor and such successor
shall discharge and perform all the promises, covenants, duties, and
obligations of the Company hereunder, and all references herein to the
"Company" shall refer to such successor.

                                      4
<Page>

5. WITHHOLDING. The Company shall make such deductions and withhold such
amounts from each payment and benefit made or provided to Employee hereunder,
as may be required from time to time by applicable law, governmental
regulation or order.

6. HEADING REFERENCES. Section headings in this Agreement are included herein
for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose. References to "this Agreement" or the use of
the term "hereof" shall refer to these Standard Terms and Conditions and the
Employment Agreement attached hereto, taken as a whole.

7. WAIVER; MODIFICATION. Failure to insist upon strict compliance with any of
the terms, covenants, or conditions hereof shall not be deemed a waiver of
such term, covenant, or condition, nor shall any waiver or relinquishment of,
or failure to insist upon strict compliance with, any right or power
hereunder at any one or more times be deemed a waiver or relinquishment of
such right or power at any other time or times. This Agreement shall not be
modified in any respect except by a writing executed by each party hereto.
Notwithstanding anything to the contrary herein, neither the assignment of
Employee to a different Reporting Officer due to a reorganization or an
internal restructuring of the Company or its affiliated companies nor a
change in the title of the Reporting Officer shall constitute a modification
or a breach of this Agreement.

8. SEVERABILITY. In the event that a court of competent jurisdiction
determines that any portion of this Agreement is in violation of any law or
public policy, only the portions of this Agreement that violate such law or
public policy shall be stricken. All portions of this Agreement that do not
violate any statute or public policy shall continue in full force and effect.
Further, any court order striking any portion of this Agreement shall modify
the stricken terms as narrowly as possible to give as much effect as possible
to the intentions of the parties under this Agreement.

9. INDEMNIFICATION. The Company shall indemnify and hold Employee harmless
for acts and omissions in Employee's capacity as an officer, director or
employee of the Company to the maximum extent permitted under applicable law;
PROVIDED, HOWEVER, that neither the Company, nor any of its subsidiaries or
affiliates shall indemnify Employee for any losses incurred by Employee as a
result of acts described in Section 1(c) of this Agreement.

                                      5
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ACKNOWLEDGED AND AGREED:

Date:

                                    USA NETWORKS, INC.

                                    _________________________________________
                                    By:
                                    Title:

                                    DANIEL MARRIOTT

                                    _________________________________________

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EXHIBIT 4.11    
  

$125,000,000 

MOTHERS
WORK, INC.

as Issuer 

and

CAVE
SPRINGS, INC.,

eSPECIALTY BRANDS, LLC,

DAN HOWARD INDUSTRIES, INC.,

MOTHER'S STORES, INC.,

as Subsidiary Guarantors 

111/4%
Senior Notes Due 2010 

INDENTURE 

Dated
as of August 5, 2002 

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

as Trustee 

CROSS-REFERENCE TABLE 

	TIA

Section
	 	 
	 	Indenture

Section

	310(a)	 	 	 	7.10
	(b)(1)	 	 	 	7.10
	311(a)	 	 	 	7.11
	(b)	 	 	 	7.11
	312(b)	 	 	 	11.03
	(c)	 	 	 	11.03
	313(a)	 	 	 	7.06
	(b)	 	 	 	7.06
	314(a)(4)	 	 	 	4.13

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

   TABLE OF CONTENTS  

	 
	 	 
	 	Page

	ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE
	SECTION 1.01.	 	Definitions	 	1
	SECTION 1.02.	 	Other Definitions	 	19
	SECTION 1.03.	 	Incorporation by Reference of Trust Indenture Act	 	19
	SECTION 1.04.	 	Rules of Construction	 	19
	ARTICLE 2

THE SECURITIES
	SECTION 2.01.	 	Form and Dating	 	20
	SECTION 2.02.	 	Execution and Authentication	 	20
	SECTION 2.03.	 	Registrar and Paying Accent	 	20
	SECTION 2.04.	 	Paying Agent To Hold Money in Trust	 	21
	SECTION 2.05.	 	Holder Lists	 	21
	SECTION 2.06.	 	Book-Entry Provisions for Global Securities	 	21
	SECTION 2.07.	 	Transfer and Exchange	 	22
	SECTION 2.08.	 	Replacement Securities	 	22
	SECTION 2.09.	 	Outstanding Securities	 	23
	SECTION 2.10.	 	Temporary Securities	 	23
	SECTION 2.11.	 	Cancellation	 	23
	SECTION 2.12.	 	Defaulted Interest	 	23
	SECTION 2.13.	 	CUSIP Numbers	 	23
	SECTION 2.14.	 	Issuance of Additional Securities	 	24
	ARTICLE 3

REDEMPTION
	SECTION 3.01.	 	Notices to Trustee	 	24
	SECTION 3.02.	 	Selection of Securities To Be Redeemed	 	24
	SECTION 3.03.	 	Notice of Redemption	 	24
	SECTION 3.04.	 	Effect of Notice of Redemption	 	25
	SECTION 3.05.	 	Deposit of Redemption Price	 	25
	SECTION 3.06.	 	Securities Redeemed in Part	 	25
	ARTICLE 4

COVENANTS
	SECTION 4.01.	 	Payment of Securities	 	25
	SECTION 4.02.	 	SEC Reports	 	25
	SECTION 4.03.	 	Limitation on Indebtedness	 	26
	SECTION 4.04.	 	Limitation on Restricted Payments	 	28
	SECTION 4.05.	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries	 	30
	SECTION 4.06.	 	Limitation on Sales of Assets and Subsidiary Stock	 	31
	SECTION 4.07.	 	Limitation on Affiliate Transactions	 	33
	SECTION 4.08.	 	Limitation on the Sale or Issuance of Capital Stock of Restricted Subsidiaries	 	34
	SECTION 4.09.	 	Change of Control	 	34
	SECTION 4.10.	 	Limitation on Liens	 	35
	SECTION 4.11.	 	Limitation on Sale/Leaseback Transactions	 	36
	SECTION 4.12.	 	Additional Subsidiary Guarantees	 	36
	SECTION 4.13.	 	Compliance Certificate	 	36
	SECTION 4.14.	 	Further Instruments and Acts	 	36
	ARTICLE 5

SUCCESSORS
	SECTION 5.01.	 	When Company May Merge or Transfer Assets	 	36

i

 

	SECTION 5.02.	 	When Subsidiary Guarantor May Merge or Transfer Assets	 	37
	ARTICLE 6

DEFAULTS AND REMEDIES
	SECTION 6.01.	 	Events of Default	 	38
	SECTION 6.02.	 	Acceleration	 	39
	SECTION 6.03.	 	Other Remedies	 	39
	SECTION 6.04.	 	Waiver of Past Defaults	 	40
	SECTION 6.05.	 	Control by Majority	 	40
	SECTION 6.06.	 	Limitation on Suits	 	40
	SECTION 6.07.	 	Rights of Holders to Receive Payment	 	40
	SECTION 6.08.	 	Collection Suit by Trustee	 	40
	SECTION 6.09.	 	Trustee May File Proofs of Claim	 	40
	SECTION 6.10.	 	Priorities	 	41
	SECTION 6.11.	 	Undertaking for Costs	 	41
	SECTION 6.12.	 	Waiver of Stay or Extension Laws	 	41
	ARTICLE 7

TRUSTEE
	SECTION 7.01.	 	Duties of Trustee	 	42
	SECTION 7.02.	 	Rights of Trustee	 	42
	SECTION 7.03.	 	Individual Rights of Trustee	 	43
	SECTION 7.04.	 	Trustee's Disclaimer	 	43
	SECTION 7.05.	 	Notice of Defaults	 	43
	SECTION 7.06.	 	Reports by Trustee to Holders	 	43
	SECTION 7.07.	 	Compensation and Indemnity	 	43
	SECTION 7.08.	 	Replacement of Trustee	 	44
	SECTION 7.09.	 	Successor Trustee by Merger	 	44
	SECTION 7.10.	 	Eligibility; Disqualification	 	45
	SECTION 7.11.	 	Preferential Collection of Claims Against Company	 	45
	ARTICLE 8

DISCHARGE OF INDENTURE; DEFEASANCE
	SECTION 8.01.	 	Discharge of Liability on Securities; Defeasance	 	45
	SECTION 8.02.	 	Conditions to Defeasance	 	46
	SECTION 8.03.	 	Application of Trust Money	 	46
	SECTION 8.04.	 	Repayment to Company	 	46
	SECTION 8.05.	 	Indemnity for Government Obligations	 	47
	SECTION 8.06.	 	Reinstatement	 	47
	ARTICLE 9

AMENDMENTS
	SECTION 9.01.	 	Without Consent of Holders	 	47
	SECTION 9.02.	 	With Consent of Holders	 	47
	SECTION 9.03.	 	Compliance with Trust Indenture Act	 	48
	SECTION 9.04.	 	Revocation and Effect of Consents and Waivers	 	48
	SECTION 9.05.	 	Notation on Securities	 	48
	SECTION 9.06.	 	Trustee To Sign Amendments	 	49
	SECTION 9.07.	 	Payment for Consent	 	49
	ARTICLE 10

SUBSIDIARY GUARANTIES
	SECTION 10.01.	 	Guaranties	 	49
	SECTION 10.02.	 	Limitation on Liability	 	50
	SECTION 10.03.	 	Successors and Assigns	 	50

ii

 

	SECTION 10.04.	 	No Waiver	 	50
	SECTION 10.05.	 	Modification	 	51
	SECTION 10.06.	 	Release of Subsidiary Guarantor	 	51
	ARTICLE 11

MISCELLANEOUS
	SECTION 11.01.	 	Trust Indenture Act Controls	 	51
	SECTION 11.02.	 	Notices	 	51
	SECTION 11.03.	 	Communication by Holders with Other Holders	 	52
	SECTION 11.04.	 	Certificate and Opinion as to Conditions Precedent	 	52
	SECTION 11.05.	 	Statements Required in Certificate or Opinion	 	52
	SECTION 11.06.	 	When Securities Disregarded	 	52
	SECTION 11.07.	 	Rules by Trustee, Paying Agent and Registrar	 	52
	SECTION 11.08.	 	Legal Holidays	 	52
	SECTION 11.09.	 	Governing Law	 	52
	SECTION 11.10.	 	No Recourse Against Others	 	53
	SECTION 11.11.	 	Successors	 	53
	SECTION 11.12.	 	Multiple Originals	 	53
	SECTION 11.13.	 	Table of Contents; Headings	 	53
	Exhibit A—Form of Security	 	 

iii

INDENTURE,
dated as of August 5, 2002, among Mothers Work, Inc., a Delaware corporation (the "Company"), Cave Springs, Inc., a
Delaware corporation, eSpecialty Brands, LLC, a Delaware limited liability company, Dan Howard Industries, Inc., an Illinois corporation, and Mother's Stores, Inc., a Delaware
corporation, as guarantors and J.P. Morgan Trust Company, National Association, a national banking association, as Trustee (the "Trustee"). 

        Each
party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of the Company's 111/4% Senior Notes Due 2010 (the
"Securities" or "Notes"): 

ARTICLE 1
  Definitions and Incorporation by Reference

        SECTION
1.01.    Definitions.    

        "Additional Assets" means: 

        (1)
any property, plant or equipment used in a Related Business; 

        (2)
the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Company or another Restricted Subsidiary; or 

        (3)
Capital Stock constituting a minority interest in any Person that at such time is a Restricted Subsidiary; 

provided, however, that any such Restricted Subsidiary described in clause (2) or (3) above is primarily engaged in a Related Business. 

        "Additional Securities" means, subject to the Company's compliance with Section 4.03, 111/4% Senior Notes Due 2010
issued from time to time after the Issue Date under the terms of this Indenture (other than pursuant to Section 2.07, 2.08, 2.10 or 3.06 of this Indenture). 

        "Affiliate" of any specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this definition, "control" when used with respect to any Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing.
For purposes of Sections 4.04, 4.06 and 4.07 only, "Affiliate" shall also mean any beneficial owner of Capital Stock representing 10% or more of the total voting power of the Voting Stock (on a fully
diluted basis) of the Company or of rights or warrants to purchase such Capital Stock (whether or not currently exercisable) and any Person who would be an Affiliate of any such beneficial owner
pursuant to the first sentence hereof. 

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

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

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

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

other
than, in the case of clauses (1), (2) and (3) above, 

        (A)
a disposition by a Restricted Subsidiary to the Company or by the Company or a Restricted Subsidiary to a Wholly Owned Subsidiary; 

 

        (B)
for purposes of Section 4.06 only, (x) a disposition that constitutes a Restricted Payment permitted by Section 4.04 or a Permitted Investment and (y) a
disposition of all or substantially all the assets of the Company in accordance with Article V; and 

        (C)
a disposition of assets with a fair market value of less than $2.0 million. 

        "Attributable Debt" in respect of a Sale/Leaseback Transaction means, as at the time of determination, the present value (discounted at
the interest rate borne by the Notes, compounded annually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale/Leaseback Transaction
(including any period for which such lease has been extended). 

        "Average Life" means, as of the date of determination, with respect to any Indebtedness, the quotient obtained by dividing: 

        (1)
the sum of the products of the numbers of years from the date of determination to the dates of each successive scheduled principal payment of or redemption or similar payment with
respect to such Indebtedness multiplied by the amount of such payment by 

        (2)
the sum of all such payments. 

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

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

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

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

        "Change of Control" means the occurrence of any of the following events: 

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

2

 

parent entity and do not have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the board of directors of such parent entity; 

        (2)
individuals who on the Issue Date constituted the Board of Directors (together with any new directors whose election by such Board of Directors or whose nomination for election by
the shareholders of the Company was approved by a vote of 662/3% of the directors of the Company then still in office who were either directors on the Issue Date or whose election or
nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors then in office; 

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

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

        "Code" means the Internal Revenue Code of 1986, as amended. 

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

        "Concurrent Equity Offering" means the public offering of 1,100,000 shares of the Company's common stock being conducted concurrently with
the Offering. 

        "Consolidated Coverage Ratio" as of any date of determination means the ratio of (x) the aggregate amount of EBITDA for the period
of (i) the most recent four consecutive fiscal quarters ending at least 45 days prior to the date of such determination or (ii) if quarterly information is included in the reports
filed or delivered pursuant to Section 4.02, the most recent four consecutive fiscal quarters, to (y) Consolidated Interest Expense for such four fiscal quarters;  provided, however, that:

        (1)
if the Company or any Restricted Subsidiary has Incurred any Indebtedness, or issued any Preferred Stock, since the beginning of such period that remains outstanding or if the
transaction giving rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, or an issuance of Preferred Stock, or both, EBITDA and Consolidated Interest Expense
for such period shall be calculated after giving effect on a pro forma basis to such Indebtedness, or such Preferred Stock, as if such Indebtedness had been Incurred, or such Preferred Stock had been
issued, on the first day of such period; 

        (2)
if the Company or any Restricted Subsidiary has repaid, repurchased, defeased or otherwise discharged any Indebtedness, or repaid or redeemed any Preferred Stock, since the beginning
of such period or if any Indebtedness is to be repaid, repurchased, defeased or otherwise discharged (in each case other than Indebtedness Incurred under any credit facility unless such Indebtedness
has been permanently repaid and has not been replaced), or if any Preferred Stock is to be repaid or redeemed,
on the date of the transaction giving rise to the need to calculate the Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense for such period shall 

3

 

be calculated on a pro forma basis as if such discharge or redemption had occurred on the first day of such period and as if the Company or such Restricted Subsidiary has not earned the interest
income actually earned during such period in respect of cash or Temporary Cash Investments used to repay, repurchase, defease or otherwise discharge such Indebtedness, or redeem such Preferred Stock; 

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

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

        (5)
if since the beginning of such period any Person (that subsequently became a Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary since the
beginning of such period) shall have made any Asset Disposition, any Investment or acquisition of assets that would have required an adjustment pursuant to clause (3) or (4) above if
made by the Company or a Restricted Subsidiary during such period, EBITDA and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto as if such Asset
Disposition, Investment or acquisition occurred on the first day of such period. 

        For
purposes of this definition, whenever pro forma effect is to be given to an acquisition of assets, the amount of income or earnings relating thereto and the amount of Consolidated
Interest Expense associated with any Indebtedness Incurred in connection therewith, the pro forma calculations shall be determined in good faith by a responsible financial or accounting Officer of the
Company. If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the date of
determination had been the
applicable rate for the entire period (taking into account any Interest Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement has a remaining term in excess of
12 months). 

        "Consolidated Current Liabilities" as of the date of determination means the aggregate amount of liabilities of the Company and its
consolidated Restricted Subsidiaries which may properly be classified as current liabilities (including taxes accrued as estimated), on a consolidated basis, after eliminating: 

        (1)
all intercompany items between the Company and any Restricted Subsidiary; and 

        (2)
all current maturities of long-term Indebtedness, all as determined in accordance with GAAP consistently applied. 

4

 

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

        (1)
interest expense attributable to capital leases (which interest shall be deemed to accrue at an interest rate reasonably determined in good faith by the Company to be the rate of
interest implicit in such Capital Lease Obligation in accordance with GAAP) and the interest expense attributable to leases constituting part of a Sale/Leaseback Transaction; 

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

        (3)
capitalized interest; 

        (4)
non-cash interest expense; 

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

        (6)
net payments pursuant to Hedging Obligations; 

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

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

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

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

        "Consolidated Net Income" means, for any period, the net income of the Company and its consolidated Subsidiaries as determined in
accordance with GAAP; provided, however, that there shall not be included in such Consolidated Net Income: 

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

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

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

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

5

 

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

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

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

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

        (5)
extraordinary gains or losses; and 

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

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

        "Consolidated Net Tangible Assets" as of any date of determination, means the total amount of assets (less accumulated depreciation and
amortization, allowances for doubtful receivables, other applicable reserves and other properly deductible items) which would appear on a consolidated balance sheet of the Company and its consolidated
Restricted Subsidiaries, determined on a consolidated basis in
accordance with GAAP, and after giving effect to purchase accounting and after deducting therefrom Consolidated Current Liabilities and, to the extent otherwise included, the amounts of: 

        (1)
minority interests in consolidated Subsidiaries held by Persons other than the Company or a Restricted Subsidiary; 

        (2)
excess of cost over fair value of assets of businesses acquired, as determined in good faith by the Board of Directors; 

        (3)
any revaluation or other write-up in book value of assets subsequent to the Issue Date as a result of a change in the method of valuation in accordance with GAAP
consistently applied; 

        (4)
unamortized debt discount and expenses and other unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, licenses, organization or
developmental expenses and other intangible items; 

        (5)
treasury stock; 

        (6)
cash set apart and held in a sinking or other analogous fund established for the purpose of redemption or other retirement of Capital Stock to the extent such obligation is not
reflected in Consolidated Current Liabilities; and 

        (7)
Investments in and assets of Unrestricted Subsidiaries. 

6

 

        "Consolidated Net Worth" means the total of the amounts shown on the balance sheet of the Company and its consolidated Subsidiaries,
determined on a consolidated basis in accordance with GAAP, as of the end of the most recent fiscal quarter of the Company ending at least 45 days prior to the taking of any action for the
purpose of which the determination is being made, as the sum of: 

        (1)
the par or stated value of all outstanding Capital Stock of the Company; plus

        (2)
paid-in capital or capital surplus relating to such Capital Stock; plus

        (3)
any retained earnings or earned surplus less (A) any accumulated deficit and (B) any amounts attributable to Disqualified Stock. 

        "Credit Agreement" means the Loan and Security Agreement, dated as of April 24, 1998, by and among the Company, Cave
Springs, Inc., Fleet Capital Corporation, as lender, together with the related documents thereto (including the revolving loans thereunder, any guarantees and security documents), as amended,
extended, renewed, restated, supplemented or otherwise modified (in whole or in part, and without limitation as to amount, terms, conditions, covenants and other provisions) from time to time, and any
agreement (and related document) governing Indebtedness incurred to Refinance, in whole or in part, the borrowings and commitments then outstanding or permitted to be outstanding under such Credit
Agreement or a successor Credit Agreement, whether by the same lenders or any other lender or group of lenders. 

        "Currency Agreement" means in respect of a Person any foreign exchange contract, currency swap agreement or other similar agreement
designed to protect such Person against fluctuations in currency values. 

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

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

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

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

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

in
each case on or prior to the first anniversary of the Stated Maturity of the Notes; provided, however, that any Capital Stock that would not
constitute Disqualified Stock but for provisions thereof giving holders thereof the right to require such Person to purchase or redeem such Capital Stock upon the occurrence of an "asset sale" or
"change of control" occurring prior to the first anniversary of the Stated Maturity of the Notes shall not constitute Disqualified Stock if: 

        (1)
the "asset sale" or "change of control" provisions applicable to such Capital Stock are not more favorable to the holders of such Capital Stock than the terms applicable to the Notes
pursuant to Sections 4.06 and 4.09; and 

        (2)
any such requirement only becomes operative after compliance with such terms applicable to the Notes, including the purchase of any Notes tendered pursuant thereto. 

        The
amount of any Disqualified Stock that does not have a fixed redemption, repayment or repurchase price will be calculated in accordance with the terms of such Disqualified Stock as if
such 

7

 

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

        "EBITDA" for any period means the sum of Consolidated Net Income, plus the following to the extent deducted in calculating such
Consolidated Net Income: 

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

        (2)
Consolidated Interest Expense; 

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

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

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

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

        "Existing Notes" means the Company's 125/8% Senior Notes due 2005 issued under an indenture dated as of August 1,
1995 among the Company, the guarantors named therein and J.P. Morgan Trust Company, National Association (as successor trustee), as trustee. 

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

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

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

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

        (4)
the rules and regulations of the SEC governing the inclusion of financial statements (including pro forma financial statements) in periodic reports required to be filed pursuant to
Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar written statements from the accounting staff of the SEC. 

8

   
        "Guarantee" means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any
Person and any obligation, direct or indirect, contingent or otherwise, of such Person: 

        (1)
to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services, to take-or-pay or to maintain financial statement conditions or otherwise); or 

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

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

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

        "Hedging Obligations" of any Person means the obligations of such Person pursuant to any Interest Rate Agreement or Currency Agreement. 

        "Holder" or "Noteholder" or
"Securityholder" means the Person in whose name a Note is registered on the Registrar's books. 

        "Incur" means issue, assume, Guarantee, incur or otherwise become liable for; provided,
however, that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or
otherwise) shall be deemed to be Incurred by such Person at the time it becomes a Restricted Subsidiary. The term "Incurrence" when used as a
noun shall have a correlative meaning. Solely for purposes of determining compliance with Section 4.03, the following will not be deemed to be the Incurrence of Indebtedness: 

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

        (2)
the payment of regularly scheduled interest in the form of additional Indebtedness of the same instrument or the payment of regularly scheduled dividends on Capital Stock in the form
of additional Capital Stock of the same class and with the same terms; and 

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

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

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

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

        (3)
all obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations of such Person and all obligations of such Person under 

9

 

any title retention agreement (but excluding trade accounts payable arising in the ordinary course of business); 

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

        (5)
the amount of all obligations of such Person with respect to the redemption, repayment or other repurchase of any Capital Stock of such Person or any Subsidiary of such Person or
that are determined by the value of such Capital Stock, the principal amount of such Capital Stock to be determined in accordance with this Indenture; 

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

        (7)
all obligations of the type referred to in clauses (1) through (6) of other Persons secured by any Lien on any property or asset of such Person (whether or not such
obligation is assumed by such Person), the amount of such obligation being deemed to be the lesser of the value of such property or assets and the amount of the obligation so secured; and 

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

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

        The
amount of Indebtedness of any Person at any date shall be (A) the outstanding balance at such date of all unconditional obligations as described above and (B) the
maximum liability, upon the occurrence of the contingency giving rise to the obligation, of any contingent obligations at such date; provided, however,
that in the case of Indebtedness sold at a discount, the amount of such Indebtedness at any time will be the accreted value thereof at such time. 

        "Indenture" means this Indenture as amended or supplemented from time to time. 

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

        "Interest Rate Agreement" means in respect of a Person any interest rate swap agreement, interest rate cap agreement or other financial
agreement or arrangement designed to protect such Person against fluctuations in interest rates. 

        "Investment" in any Person means any direct or indirect advance, loan (other than advances to customers in the ordinary course of business
that are recorded as accounts receivable on the balance sheet of the lender) or other extensions of credit (including by way of Guarantee or similar arrangement) or capital contribution to (by means
of any transfer of cash or other property to others or any payment for property or services for the account or use of others), or any purchase or acquisition of Capital Stock, Indebtedness or other
similar instruments issued by such Person. Except as 

10

 

otherwise provided for herein, the amount of an Investment shall be its fair value at the time the Investment is made and without giving effect to
subsequent changes in value. 

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

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

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

        "Issue Date" means the date on which the Notes are originally issued. 

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

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

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

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

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

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

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

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

11

 

        "Offering" means the offering of the Notes pursuant to the Prospectus. 

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

        "Officers' Certificate" means a certificate signed by two Officers. 

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

        "Permitted Holders" means Ms. Rebecca Matthias and Mr. Dan Matthias. 

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

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

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

        (3)
cash and Temporary Cash Investments; 

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

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

        (6)
loans or advances to employees in the ordinary course of business in accordance with past practices of the Company or such Restricted Subsidiary, but in any event not to exceed
$2.0 million in the aggregate outstanding at any one time; 

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

        (8)
any Person to the extent such Investment represents the non-cash portion of the consideration received for an Asset Disposition as permitted under Section 4.06; 

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

        (10)
any person engaged principally in a Related Business prior to such Investment if (i) at the time of such Investment and after giving pro forma effect thereto, the Company is
entitled to Incur an additional $1.00 of Indebtedness under Section 4.03 and (ii) the aggregate amount of all Investments made pursuant to this clause (10) does not exceed
$10.0 million; provided that 

12

 

Investments of up to $5.0 million in the aggregate shall be permitted under this clause (10) without regard to the requirements of clause (i) of this clause (10). 

        "Permitted Liens" means, with respect to any Person: 

        (1)
pledges or deposits by such Person under worker's compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders,
contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations of such Person or deposits of cash or United
States government bonds to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import duties or for the payment of rent, in each case incurred
in the ordinary course of business; 

        (2)
Liens imposed by law, such as carriers', warehousemen's and mechanics' Liens, in each case for sums not yet due or being contested in good faith by appropriate proceedings or other
Liens arising out of judgments or awards against such Person with respect to which such Person shall then be proceeding with an appeal or other proceedings for review; 

        (3)
Liens for taxes, assessments and governmental charges not yet subject to penalties for non-payment or which are being contested in good faith and by appropriate
proceedings; provided that any reserve or other appropriate provision as is required in conformity with GAAP has been made therefor; 

        (4)
Liens in favor of issuers of surety bonds or letters of credit issued pursuant to the request of and for the account of such Person in the ordinary course of its business;  provided, however, that such
letters of credit do not constitute Indebtedness; 

        (5)
minor survey exceptions, minor encumbrances, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and
other similar purposes, or zoning or other restrictions as to the use of real property or Liens incidental to the conduct of the business of such Person or to the ownership of its properties which
were not incurred in connection with Indebtedness and which do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the
business of such Person; 

        (6)
Liens to secure Indebtedness permitted under the provisions described in Section 4.03(b)(1); 

        (7)
Liens existing on the Issue Date; 

        (8)
Liens on property or shares of Capital Stock of another Person at the time such other Person becomes a Subsidiary of such Person; provided,
however, that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such other Person becoming such a Subsidiary;  provided further, however,
that such Lien may not extend to any other property owned by such Person or any of its Subsidiaries; 

        (9)
Liens on property at the time such Person or any of its Subsidiaries acquires the property, including any acquisition by means of a merger or consolidation with or into such Person
or a Subsidiary of such Person; provided, however, that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such
acquisition; provided further, however, that the Liens may not extend to any other property owned by such Person or any of its Subsidiaries; 

        (10)
Liens securing Indebtedness or other obligations of a Subsidiary of such Person owing to such Person or a wholly owned Subsidiary of such Person; 

13

 

        (11)
Liens securing Hedging Obligations so long as such Hedging Obligations relate to Indebtedness that is, and is permitted to be under the Indenture, secured by a Lien on the same
property securing such Hedging Obligations; 

        (12)
Liens to secure Purchase Money Indebtedness that is otherwise permitted under the Indenture, provided, however, that (i) any
such Lien is created solely for the purpose of securing Indebtedness representing, or incurred to finance, the cost of the acquisition, construction, repairs, improvements or additions that are the
subject of the Purchase Money Indebtedness and (ii) such Lien is limited in the manner described in the definition of Purchase Money Indebtedness; 

        (13)
Liens securing Capital Lease Obligations, provided, however, that such Lien does not extend to any property other than that subject
to the underlying lease; 

        (14)
Liens in favor of landlords contained in leases and subleases of real property granted by the Company or any Restricted Subsidiary on inventory or fixtures located on the leased
real property; provided, however, that such Liens are in the ordinary course of business consistent with past practice, are on terms customary for
leases of such type and do not materially impair the use of the liened property in the operation of the business of the Company or the Restricted Subsidiary; 

        (15)
Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods; and 

        (16)
Liens to secure any Refinancing (or successive Refinancings) as a whole, or in part, of any Indebtedness secured by any Lien referred to in the foregoing clauses (7), (8), (9),
(12) and (13); provided, however, that (x) such new Lien shall be limited to all or part of the same property that secured the original
Lien (plus improvements to or on such property) and (y) the Indebtedness secured by such Lien at such time is not increased to any amount greater than the sum of (A) the outstanding
principal amount or, if greater, committed amount of the Indebtedness described under clauses (7), (8), (9), (12) and (13) at the time the original Lien became a Permitted Lien and
(B) an amount necessary to pay any fees and expenses, including premiums, related to such refinancing, refunding, extension, renewal or replacement. 

        Notwithstanding
the foregoing, "Permitted Liens" will not include any Lien described in clause (8), (9), (12) or (13) above to the extent that such Lien applies to
any Additional Assets acquired directly or indirectly from Net Available Cash pursuant to Section 4.06. 

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

        "Physical Security" means a certificated Security. 

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

        "Principal" of a Note means the principal of the Note plus the premium, if any, payable on the Note which is due or overdue or is to
become due at the relevant time. 

        "Prospectus" means the prospectus of the Company dated July 31, 2002 and filed by the Company with the SEC pursuant to
Rule 424(b) of the Securities Act relating to the offering of the Notes. 

        "Public Equity Offering" means an underwritten primary public offering of the Company's common stock pursuant to an effective registration
statement under the Securities Act, other than the Concurrent Equity Offering. 

14

 

        "Purchase Money Indebtedness" means any Indebtedness incurred by the Company or a Subsidiary Guarantor to finance the acquisition,
construction of or repairs, improvements or additions to property or equipment, the principal amount of which Indebtedness does not exceed 100% of such cost and the maturity of which Indebtedness does
not exceed the useful life of the property or equipment being financed; provided, however, that any Lien arising in connection with any such
Indebtedness shall be limited to the specified asset(s) being financed or, in the case of real property or fixtures, including additions and improvements, the real property to which such asset(s) is
attached; and provided further, however, that such Indebtedness is Incurred within 180 days after such acquisition by the Company or Subsidiary
Guarantor. 

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

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

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

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

        (3)
such Refinancing Indebtedness has an aggregate principal amount (or if Incurred with original issue discount, an aggregate issue price) that is equal to or less than the aggregate
principal amount (or if Incurred with original issue discount, the aggregate accreted value) then outstanding or committed (plus fees and expenses, including any premium and defeasance costs) under
the Indebtedness being Refinanced; and provided further, however, that Refinancing Indebtedness shall not include (A) Indebtedness of a
Subsidiary that Refinances Indebtedness of the Company or (B) Indebtedness of the Company or a Restricted Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary. 

        "Related Business" means any business in which the Company was engaged on the Issue Date and any business related, ancillary or
complementary to any business of the Company in which the Company was engaged on the Issue Date. 

        "Restricted Payment" with respect to any Person means: 

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

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

15

 

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

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

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

        "Sale/Leaseback Transaction" means an arrangement relating to property now owned or hereafter acquired whereby the Company, or a
Restricted Subsidiary transfers such property to a Person and the Company or a Restricted Subsidiary leases it from such Person. 

        "SEC" means the U.S. Securities and Exchange Commission. 

        "Securities" or "Notes" means the Securities issued under this Indenture. 

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

        "Senior Indebtedness" means with respect to any Person: 

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

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

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

        (1)
any obligation of such Person to any Subsidiary; 

        (2)
any liability for Federal, state, local or other taxes owed or owing by such Person; 

        (3)
any accounts payable or other liability to trade creditors arising in the ordinary course of business (including guarantees thereof or instruments evidencing such liabilities); 

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

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

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

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

16

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

        "Subsidiary" means, with respect to any Person, any corporation, association, partnership or other business entity of which more than 50%
of the total voting power of shares of Voting Stock is at the time owned or controlled, directly or indirectly, by: 

        (1)
such Person; 

        (2)
such Person and one or more Subsidiaries of such Person; or 

        (3)
one or more Subsidiaries of such Person. 

        "Subsidiary Guarantor" means each of Cave Springs, Inc., eSpecialty Brands, LLC, Dan Howard Industries, Inc. and Mother's
Stores, Inc. and each other Subsidiary of the Company that executes the Indenture as a guarantor on the Issue Date and each other Subsidiary of the Company that thereafter guarantees the Notes
pursuant to the terms of this Indenture. 

        "Subsidiary Guaranty" means a Guarantee by a Subsidiary Guarantor of the Company's obligations with respect to the Notes. 

        "Temporary Cash Investments" means any of the following: 

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

        (2)
investments in time deposit accounts, certificates of deposit and money market deposits maturing within 180 days of the date of acquisition thereof issued by a bank or trust
company which is organized under the laws of the United States of America, any State thereof or any foreign country recognized by the United States of America, and which bank or trust company has
capital, surplus and undivided profits aggregating in excess of $50.0 million (or the foreign currency equivalent thereof) and has outstanding debt which is rated "A" (or such similar
equivalent rating) or higher by at least one nationally recognized statistical rating organization (as defined in Rule 436 under the Securities Act) or any money-market fund sponsored by a
registered broker dealer or mutual fund distributor; 

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

        (4)
investments in commercial paper, maturing not more than 90 days after the date of acquisition, issued by a corporation (other than an Affiliate of the Company) organized and
in existence under the laws of any State of the United States of America or any foreign country recognized by the United States of America with a rating at the time as of which any investment therein
is made of "P-1" (or higher) according to Moody's Investors Service, Inc. or "A-1" (or higher) according to Standard and Poor's Ratings Group; and 

        (5)
investments in securities with maturities of six months or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States
of America, or by any political subdivision or taxing authority thereof, and rated at least "A" by Standard & Poor's Ratings Group or "A" by Moody's Investors Service, Inc. 

        "Trustee" means J.P. Morgan Trust Company, National Association, until a successor replaces it and, thereafter, means the successor. 

17

 

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

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

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

        "Unrestricted Subsidiary" means: 

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

        (2)
any Subsidiary of an Unrestricted Subsidiary. 

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

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

        "Voting Stock" of a Person means all classes of Capital Stock or other interests (including partnership interests or limited liability
company units) of such Person then outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof. 

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

18

 

        SECTION
1.02.    Other Definitions.    

	

Term
	 	Defined

in Section

	"Affiliate Transaction"	 	4.07
	"Bankruptcy Law"	 	6.01
	"covenant defeasance option"	 	8.01(b)
	"Custodian"	 	6.01
	"Event of Default"	 	6.01
	"Global Securities"	 	2.01
	"legal defeasance option"	 	8.01(b)
	"Offer"	 	4.06(b)
	"Offer Amount"	 	4.06(c)(2)
	"Offer Period"	 	4.06(c)(2)
	"Participant"	 	2.06(a)
	"Paying Agent"	 	2.03
	"Purchase Date"	 	4.06(c)(1)
	"Registrar"	 	2.03
	"Securities Obligations"	 	10.01
	"Series A Preferred Stock"	 	4.03(b)(13)
	"Successor Company"	 	5.01(1)

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

        "Commission" means the SEC; 

        "indenture securities" means the Securities and each Subsidiary Guaranty; 

        "indenture trustee" or "institutional trustee" means the Trustee; and 

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

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

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

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

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

        (3)
"or" is not exclusive; 

        (4)
"including" means including without limitation; 

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

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

        (7)
the principal amount of any non-interest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of
the issuer dated such date prepared in accordance with GAAP; 

19

 

        (8)
the principal amount of any Preferred Stock shall be (i) the maximum liquidation value of such Preferred Stock or (ii) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock, whichever is greater; and 

        (9)
all references to the date the Securities were originally issued shall refer to the Issue Date. 

ARTICLE 2
  The Securities  

        SECTION
2.01.    Form and Dating.    The Securities and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A, which is hereby incorporated in and expressly made a part of this Indenture. The Securities may have notations, legends or endorsements required by law,
stock exchange rule, agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company). Each Security shall
be dated the date of its authentication. The terms of the Securities set forth in Exhibit A are part of the terms of this Indenture. 

        Securities
shall be issued in the form of one or more global Securities in registered form (the "Global Securities") without interest
coupons, deposited with the Trustee as custodian for the Depository, and registered in the name of the Depository or a nominee of the Depository, duly executed by the Company and authenticated by the
Trustee as provided in this Indenture. 

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

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

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

        On
the Issue Date, the Trustee shall authenticate and deliver $125 million of 111/4% Senior Notes Due 2010, and, at any time and from time to time thereafter, the
Trustee shall authenticate and deliver Securities for original issue in an aggregate principal amount specified in such order, in each case upon a written order of the Company signed by two Officers
or by an Officer and either an Assistant Treasurer or an Assistant Secretary of the Company. Such order shall specify the amount of the Securities to be authenticated and the date on which the
original issue of Securities is to be authenticated and, in the case of an issuance of Additional Securities pursuant to Section 2.14 after the Issue Date, shall certify that such issuance is
in compliance with Section 4.03. 

        The
Trustee may appoint an authenticating agent reasonably acceptable to the Company to authenticate the Securities. Unless limited by the terms of such appointment, an authenticating
agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has
the same rights as any Registrar, Paying Agent or agent for service of notices and demands. 

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

        SECTION
2.03.    Registrar and Paying Accent.    The Company shall maintain an office or agency where Securities may
be presented for registration of transfer or for exchange (the "Registrar") and an office or agency where Securities may be presented for payment (the
"Paying Agent"). The Registrar shall keep a register of the Securities and of their transfer and exchange. The Company may have one 

20

 

or more co-registrars and one or more additional paying agents. The term "Paying Agent" includes any additional paying agent. 

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

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

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

        SECTION
2.05.    Holder Lists.    The Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Holders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in writing at least five Business Days before
each interest payment date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of
Holders. 

        SECTION
2.06.    Book-Entry Provisions for Global Securities.    

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

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

        (b)
Transfers of Global Securities shall be limited to transfers in whole, but not in part, to the Depository, its successors or their respective nominees. Interests of beneficial owners
in the Global Securities may be transferred or exchanged for Physical Securities in accordance with the rules and
procedures of the Depository and if (i) the Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository
ceases 

21

 

to be a "clearing agency" registered under the Exchange Act and, in either case, a successor Depositary is not appointed by the Company within 90 days of such notice, (ii) the Company,
in its discretion, notifies the Trustee in writing that it elects to cause the issuance of Physical Securities under this Indenture or (iii) an Event of Default has occurred and is continuing. 

        (c)
In connection with the transfer of Global Securities as an entirety to beneficial owners pursuant to paragraph (b) of this Section 2.06, the Global Securities shall be
deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall upon written instructions from the Company authenticate and deliver, to each beneficial
owner identified by the Depository in exchange for its beneficial interest in the Global Securities, an equal aggregate principal amount of Physical Securities of authorized denominations. 

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

        SECTION
2.07.    Transfer and Exchange.    When a Security is presented to the Registrar or a co-registrar
with a request to register a transfer, the Registrar shall register the transfer as requested if the requirements of this Indenture and Section 8-401(1) of the Uniform Commercial
Code are met. When Securities are presented to the Registrar or a co-registrar with a request to register the transfer of the Securities or to exchange such Securities for an equal
principal amount of Securities of other authorized denominations, the Registrar or co-registrar shall register the transfer or make the exchange as requested if its requirements for such
transaction are met; provided, however, that the Securities presented or surrendered for registration of transfer or exchange shall be duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to the Registrar or co-registrar, duly executed by the Holder thereof or his attorney duly authorized in writing. To
permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Securities at the Registrar's or co-registrar's request. No service charge
shall be made for any registration of transfer or exchange or redemption of the Notes, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer tax or other similar governmental charge payable upon exchanges pursuant to Section 2.10, 3.06, 4.06, 4.09 or 9.05). The Registrar
or co-registrar shall not be required to register the transfer of or exchange of any Security (i) during a period beginning at the opening of business 15 days before the
mailing of a notice of redemption of Securities and ending at the close of business on the day of such mailing and (ii) selected for redemption in whole or in part pursuant to Article Three,
except the unredeemed portion of any Security being redeemed in part. 

        A
Global Security may be transferred, in whole but not in part, in the manner provided in this Section 2.07, only to a nominee of the Depository for such Global Security, or to
the Depository, or a successor Depository for such Global Security selected or approved by the Company, or to a nominee of such successor Depository. 

        None
of the Company, the Trustee, any Paying Agent or the 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. 

        SECTION
2.08.    Replacement Securities.    If a mutilated Security is surrendered to the Registrar or if the Holder
of a Security claims that the Security has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies any other reasonable requirements of the Trustee. If required by the Trustee or the Company, such
Holder shall furnish an indemnity bond sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee, the Paying Agent, the Registrar and any co-registrar
from any loss which any of them may 

22

 

suffer if a Security is replaced. The Company and the Trustee may charge the Holder for their expenses in replacing a Security. 

        Every
replacement Security is an additional obligation of the Company. 

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

        If
a Security is replaced pursuant to Section 2.08, it ceases to be outstanding unless the Trustee and the Company receive proof satisfactory to them that the replaced Security is
held by a bona fide purchaser. 

        If
the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a redemption date or maturity date money sufficient to pay all principal and interest payable on
that date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case may be, then on and after that date such Securities (or portions thereof) cease to be outstanding
and interest on them ceases to accrue. 

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

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

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

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

23

   
        SECTION 2.14.    Issuance of Additional Securities.    The Company shall be entitled, subject to its compliance
with
Section 4.03, to issue Additional Securities under this Indenture, which shall have identical terms as the Securities issued on the Issue Date, other than with respect to the date of issuance
and the issue price. The Securities issued on the Issue Date and any Additional Securities shall be treated as a single class for all purposes under this Indenture. 

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

        (1)
the aggregate principal amount of such Additional Securities to be authenticated and delivered pursuant to this Indenture; and 

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

ARTICLE 3
  Redemption  

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

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

        SECTION
3.02.    Selection of Securities To Be Redeemed.    If fewer than all the Securities are to be redeemed, the
Trustee shall select the Securities to be redeemed pro rata or by lot or by a method that complies with applicable legal and securities exchange
requirements, if any, and that the Trustee in its sole discretion shall deem to be fair and appropriate and in accordance with methods generally used at the time of selection by fiduciaries in similar
circumstances. The Trustee shall make the selection from outstanding Securities not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities that
have denominations larger than $1,000. Securities and portions of them the Trustee selects shall be in principal amounts of $1,000 or a whole multiple of $1,000. Provisions of this Indenture that
apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Company promptly of the Securities or portions of Securities to be
redeemed. 

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

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

        (1)
the redemption date; 

        (2)
the redemption price; 

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

24

 

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

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

        (6)
that, unless the Company defaults in making such redemption payment, interest on Securities (or portion thereof) called for redemption ceases to accrue on and after the redemption
date; and 

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

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

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

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

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

ARTICLE 4
  Covenants  

        SECTION
4.01.    Payment of Securities.    The Company shall pay in lawful currency of the United States of America
the principal of and interest on the Securities on the dates and in the manner provided in the Securities and in this Indenture. Principal and interest shall be considered paid on the date due if on
such date the Trustee or the Paying Agent holds in accordance with this Indenture money sufficient to pay all principal and interest then due. 

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

        SECTION
4.02.    SEC Reports.    Notwithstanding that the Company may not be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, the Company will file with the SEC (to the extent that the SEC will accept such filing) and provide the Trustee and Noteholders with such annual reports
and such information, documents and other reports as are specified in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S. corporation subject to such Sections, such 

25

 

information, documents and other reports to be so filed and provided at the times specified for the filings of such information, documents and reports under such Sections. 

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

        SECTION
4.03.    Limitation on Indebtedness.    (a) The Company will not, and will not permit any Restricted
Subsidiary to, Incur, directly or indirectly, any Indebtedness; provided, however, that the Company and the Subsidiary Guarantors will be entitled to
Incur Indebtedness if, on the date of such Incurrence and after giving effect thereto on a pro forma basis, no Default has occurred and is continuing and the Consolidated Coverage Ratio exceeds 2.0 to
1.0. 

        (b)
Notwithstanding Section 4.03(a), the Company and the Subsidiary Guarantors will be entitled to Incur any or all of the following Indebtedness: 

        (1)
Indebtedness Incurred by the Company and the Subsidiary Guarantors pursuant to the Credit Agreement; provided, however, that, after
giving effect to any such Incurrence, the aggregate principal amount of all Indebtedness Incurred under this clause (1) and then outstanding does not exceed the greater of
(i) $60.0 million and (ii) the sum of (x) 80% of the book value of accounts receivable of the Company and its Restricted Subsidiaries on a consolidated basis and
(y) 70% of the book value of the inventory of the Company and its Restricted Subsidiaries on a consolidated basis; 

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

        (3)
the Notes (other than any Additional Securities) and any Subsidiary Guaranty thereof; 

        (4)
any Indebtedness outstanding on the Issue Date after giving effect to the use of proceeds described in the Prospectus under "Use of Proceeds" (other than Indebtedness described in
clause (1), (2) or (3) of this Section 4.03(b)); 

        (5)
Indebtedness of a Subsidiary Guarantor Incurred and outstanding on or prior to the date on which such Subsidiary was acquired by the Company (other than Indebtedness Incurred in
connection with, or to provide all or any portion of the funds or credit support utilized to consummate, the transaction or series of related transactions pursuant to which such Subsidiary became a
Subsidiary or was acquired by the Company; provided, however, that if all such Indebtedness Incurred under this clause (5) in the aggregate
exceeds $10.0 million at any one time outstanding, then on the date of such acquisition and after giving pro forma effect thereto, the Company would have been able to Incur at least $1.00 of
additional Indebtedness pursuant to Section 4.03(a); 

        (6)
Refinancing Indebtedness in respect of Indebtedness Incurred pursuant to Section 4.03(a) or pursuant to clause (3), (4) or (5) of this
Section 4.03(b) or this clause (6); provided, however,

26

 

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

        (7)
Hedging Obligations consisting of Interest Rate Agreements and Currency Agreements directly related to Indebtedness permitted to be Incurred by the Company and its Restricted
Subsidiaries pursuant to this Indenture; 

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

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

        (10)
Indebtedness consisting of any Guarantee by a Subsidiary Guarantor of Indebtedness Incurred pursuant to Section 4.03(a) or (b); 

        (11)
Purchase Money Indebtedness and Capital Lease Obligations Incurred by the Company or a Subsidiary Guarantor to acquire property in the ordinary course of business and which do not
in the aggregate exceed $10.0 million at any one time outstanding; 

        (12)
Indebtedness arising from agreements of the Company or a Subsidiary Guarantor providing for the indemnification, adjustment or holdback of purchase price or other similar
obligations, in each case, Incurred in connection with the disposition of assets of the Company or a Subsidiary Guarantor, other than guarantees of Indebtedness Incurred by any Person acquiring all or
any portion of such assets for the purpose of financing such acquisition; provided, however, that the maximum aggregate liability in respect of such
Indebtedness shall at no time exceed the gross proceeds actually received by the Company and the Subsidiary Guarantors in connection with the disposition; 

        (13)
The Existing Notes and subordinated notes issued to former holders of shares of the Company's Series A Preferred Stock, par value $0.01 per share (the "Series A
Preferred Stock") in lieu of accrued and unpaid dividends; and 

        (14)
Indebtedness of the Company or of any of its Restricted Subsidiaries in an aggregate principal amount which, when taken together with all other Indebtedness of the Company and its
Restricted Subsidiaries outstanding on the date of such Incurrence (other than Indebtedness permitted by clauses (1) through (13) of this Section 4.03(b) or
Section 4.03(a)) does not exceed $10.0 million. 

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

        (d)
For purposes of determining compliance with this Section 4.03(b): 

        (1)
any indebtedness outstanding under the Credit Agreement after the application of the net proceeds from the sale of the Notes and the Company's common stock in the Concurrent Equity
Offering will be treated as Incurred on the Issue Date under clause (1) of Section 4.03(b); 

        (2)
in the event that an item of Indebtedness meets the criteria of more than one of the types of Indebtedness described above, the Company, in its sole discretion, will classify such
item of 

27

 

Indebtedness at the time of incurrence and will only be required to include the amount and type of such Indebtedness in one of the above clauses; and 

        (3)
the Company will be entitled to divide and classify an item of Indebtedness in more than one of the types of Indebtedness described above. 

        (e)
Notwithstanding any other provision of this Section 4.03, the accrual of any interest, the accretion or amortization of original issue discount and the payment of interest on
any Indebtedness in the form of additional Indebtedness with the same terms will not be deemed an Incurrence of Indebtedness for purposes of this Section 4.03; provided,
however, that the amount thereof is included in Consolidated Interest Expense of the Company and its consolidated Restricted Subsidiaries as accrued. 

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

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

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

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

        (A)
50% of the Consolidated Net Income accrued during the period (treated as one accounting period) from the beginning of the fiscal quarter immediately following the fiscal quarter
during which the Issue Date occurs to the end of the most recent fiscal quarter ending at least 45 days prior to the date of such Restricted Payment (or, in case such Consolidated Net Income
shall be a deficit, minus 100% of such deficit); plus 

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

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

        (D)
an amount equal to the sum of (x) the net reduction in the Investments (other than Permitted Investments) made by the Company or any Restricted Subsidiary in any Person
resulting from repurchases, repayments or redemptions of such Investments by such Person, proceeds realized on the sale of such Investment and proceeds representing the return of capital (excluding
dividends and distributions), in each case received by the Company or any Restricted Subsidiary and (y) to the extent such Person is an Unrestricted Subsidiary, the portion (proportionate to
the Company's equity interest in such Subsidiary) of the fair market 

28

 

value of the net assets of such Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary; provided,
however, that the foregoing sum shall not exceed, in the case of any such Person or Unrestricted Subsidiary, the amount of Investments (excluding Permitted Investments)
previously made (and treated as a Restricted Payment) by the Company or any Restricted subsidiary in such Person or Unrestricted Subsidiary. 

        (b)
The preceding provisions will not prohibit: 

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

        (2)
any purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of Subordinated Obligations of the Company or any Subsidiary Guarantor made by exchange
for, or out of the proceeds of the substantially concurrent sale of, Indebtedness which is permitted to be Incurred pursuant to Section 4.03; provided,
however, that such purchase, repurchase, redemption, defeasance or other acquisition or retirement for value shall be excluded in the calculation of the amount of Restricted
Payments pursuant to Section 4.04(a); 

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

        (4)
the prepayment, concurrently with the Offering, of the subordinated notes issued to former holders of shares of the Series A Preferred Stock in lieu of accrued and unpaid
dividends, in accordance with the terms thereof in an aggregate amount not to exceed $3.0 million; and the redemption or purchase, concurrently with the Offering, of the Series A
Preferred Stock and the Company's Series C Preferred Stock, par value $0.01 per share, including payment of accrued and unpaid dividends thereon in an aggregate amount not to exceed
$35.0 million, in each case, as described in the Prospectus under "Use of Proceeds"; provided, however, that such prepayment, redemption or
purchase shall be excluded from the calculation of the amount of Restricted Payments pursuant to Section 4.04(a) above; 

        (5)
the repurchase of Capital Stock of the Company pursuant to any stock option plan or agreement, employee benefit plan or employment agreement of the Company in effect as of the Issue
Date or as may be adopted by the Company's Board of Directors in an aggregate amount not to exceed $5.0 million, so long as no Default shall have occurred and be continuing (or result
therefrom); provided, however, that such repurchases shall be included in the calculation of the amount of Restricted Payments pursuant to
Section 4.04(a) above, other than repurchases pursuant to an employee stock ownership plan which shall be excluded from such calculation; and 

        (6)
other Restricted Payments in an aggregate amount not to exceed $10.0 million; provided, however, that at the time of such
Restricted Payments, no Default shall have occurred and be 

29

 

continuing (or result therefrom) and such Restricted Payments shall be excluded in the calculation of the amount of Restricted Payments pursuant to Section 4.03(a) above. 

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

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

        (i)
any encumbrance or restriction pursuant to an agreement in effect at or entered into on the Issue Date; 

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

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

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

        (v)
any encumbrance or restriction existing under or by reason of applicable law; and 

        (vi)
any encumbrance or restriction imposed pursuant to an agreement entered into for the sale or disposition of assets permitted by Section 4.06;  provided, however, that such encumbrance or restriction
applies only to the assets that are the subject of such agreement; and 

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

        (i)
any encumbrance or restriction consisting of customary nonassignment or no subletting provisions in leases governing leasehold interests to the extent such provisions restrict the
transfer of the lease or the property leased thereunder; and 

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

30

 

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

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

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

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

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

        (B)
second, to the extent of the balance of such Net Available Cash after application in accordance with Section 4.06(3)(A), to
acquire Additional Assets within one year from the later of the date of such Asset Disposition or the receipt of such Net Available Cash; and 

        (C)
third, to the extent of the balance of such Net Available Cash after application in accordance with Section 4.06(3)(A) and (B),
to make an offer to the holders of the Notes (and to holders of other Senior Indebtedness of the Company designated by the Company) to purchase Notes (and such other Senior Indebtedness of the
Company) pursuant to and subject to the conditions contained in this Indenture; 

provided, however, that in connection with any prepayment, repayment, redemption or purchase of Indebtedness pursuant to Section 4.06(3)(A) or
(C) above, the Company or such Restricted Subsidiary shall permanently retire such Indebtedness and shall cause the related loan commitment (if any) to be permanently reduced in an amount equal
to the principal amount so prepaid, repaid, redeemed or purchased. 

        Pending
application of Net Available Cash pursuant to this Section 4.06, such Net Available Cash shall be invested in Temporary Cash Investments or applied to temporarily reduce
revolving credit indebtedness, if any. For the purposes of this Section 4.06, the following are deemed to be cash or Temporary Cash Investments: 

        (1)
the assumption of Indebtedness of the Company or any Restricted Subsidiary and the release of the Company or such Restricted Subsidiary from all liability on such Indebtedness in
connection with such Asset Disposition; and 

        (2)
securities received by the Company or any Restricted Subsidiary from the transferee that are promptly converted by the Company or such Restricted Subsidiary into cash or Temporary
Cash Investments. 

        (b)
In the event of an Asset Disposition that requires the purchase of Notes (and other Senior Indebtedness of the Company) pursuant to Section 4.06(a)(3)(C), the Company will
purchase Notes tendered pursuant to an offer by the Company for the Notes (and such other Senior Indebtedness) (the "Offer") at a purchase price of 100%
of their principal amount (or, in the event such other Senior Indebtedness of the Company was issued with significant original issue discount, 100% of the accreted 

31

 

value thereof) without premium, plus accrued but unpaid interest (or, in respect of such other Senior Indebtedness of the Company, such lesser price, if any, as may be provided for by the terms of
such Senior Indebtedness) in accordance with the procedures (including prorating in the event of oversubscription) set forth in this Indenture. If the aggregate purchase price of the securities
tendered exceeds the Net Available Cash allotted to their purchase, the Company will select the securities to be purchased on a pro rata basis but in round denominations, which in the case of the
Notes will be denominations of $1,000 principal amount or multiples thereof. The Company shall not be required to make such an offer to purchase Notes (and other Senior Indebtedness of the Company)
pursuant to this covenant if the Net Available Cash available therefor is less than $10.0 million (which lesser amount shall be carried forward for purposes of determining whether such an offer
is required with respect to the Net Available Cash from any subsequent Asset Disposition). 

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

        (2)
Not later than the date upon which written notice of an Offer is delivered to the Trustee as provided below, the Company shall deliver to the Trustee an Officers' Certificate as to
(A) the amount of the Offer (the "Offer Amount"), including information as to any other Senior Indebtedness included in the Offer, (B) the
allocation of the Net Available Cash from the Asset Dispositions pursuant to which such Offer is being made and (C) the compliance of such allocation with the provisions of
Section 4.06(a) and (b). On such date, the Company shall also irrevocably deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and
hold in trust) in Temporary Cash Investments, maturing on the last day prior to the Purchase Date or on the Purchase Date if funds are immediately available by open of business, an amount equal to the
Offer Amount to be held for payment in accordance with the provisions of this Section. If the Offer includes other Senior Indebtedness, the deposit described in the preceding sentence may be made with
any other paying agent pursuant to arrangements satisfactory to the Trustee. Upon the expiration of the period for which the Offer remains open (the "Offer
Period"), the Company shall deliver to the Trustee for cancellation the Securities or portions thereof which have been properly tendered to and are to be accepted by the
Company. The Trustee shall, on the Purchase Date, mail or deliver payment (or cause the delivery of payment) to each tendering Holder in the amount of the purchase price. In the event that the
aggregate purchase price of the Securities delivered by the Company to the Trustee is less than the Offer Amount applicable to the Securities, the Trustee shall deliver the excess to the Company
immediately after the expiration of the Offer Period for application in accordance with this Section 4.06. 

        (3)
Holders electing to have a Security purchased shall be required to surrender the Security, with an appropriate form duly completed, to the Company at the address specified in the
notice at 

32

 

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

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

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

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

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

        (2)
if such Affiliate Transaction involves an amount in excess of $2.0 million, the terms of the Affiliate Transaction are set forth in writing and a majority of the
non-employee directors of the Company disinterested with respect to such Affiliate Transaction have determined in good faith that the criteria set forth in clause (1) are satisfied
and have approved the relevant Affiliate Transaction as evidenced by a resolution of the Board of Directors; and 

        (3)
if such Affiliate Transaction involves an amount in excess of $10.0 million, the Board of Directors shall also have received a written opinion from an Independent Qualified
Party to the effect that such Affiliate Transaction (i) is fair, from a financial standpoint, to the Company and its Restricted Subsidiaries or (ii) is not less favorable to the Company
and its Restricted Subsidiaries than could reasonably be expected to be obtained at the time in an arm's-length transaction with a Person who was not an Affiliate. 

33

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

        (1)
any Investment (other than a Permitted Investment) or other Restricted Payment, in each case permitted to be made pursuant to Section 4.04; 

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

        (3)
loans or advances to employees in the ordinary course of business in accordance with the past practices of the Company or its Restricted Subsidiaries, but in any event not to exceed
$2.0 million in the aggregate outstanding at any one time; 

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

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

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

        (7)
professional services provided by Pepper Hamilton LLP for which reasonable and customary fees are paid; 

        (8)
reasonable and customary indemnification of any officer, director or employee of the Company or any Subsidiary in the ordinary course of business; and 

        (9)
any payment to holders of all outstanding shares or principal of a series of the Company's outstanding Capital Stock or Indebtedness in respect of which all holders of such Capital
Stock or Indebtedness are treated equally. 

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

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

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

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

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

        SECTION
4.09.    Change of Control.    (a) Upon the occurrence of a Change of Control, each Holder shall have the
right to require that the Company repurchase such Holder's Notes at a purchase price in cash equal to 101% of the principal amount thereof on the date of purchase plus accrued and unpaid interest, if
any, to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), in accordance with the terms
contemplated in Section 4.09(b). 

34

 

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

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

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

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

        (4)
the instructions, as determined by the Company, consistent with this Section 4.09, that a Holder must follow in order to have its Notes purchased. 

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

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

        (e)
Notwithstanding the foregoing provisions of this Section, the Company shall 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 set forth in this Section applicable to a Change of Control Offer made by the Company and
purchases all Notes validly tendered and not withdrawn under such Change of Control Offer. 

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

        SECTION
4.10.    Limitation on Liens.    The Company will not, and will not permit any Restricted Subsidiary to,
directly or indirectly, incur or permit to exist any Lien of any nature whatsoever on any property or asset of the Company or such Restricted Subsidiary (including Capital Stock of a Restricted
Subsidiary), whether owned at the Issue Date or thereafter acquired, other than Permitted Liens, without effectively providing that the Notes shall be secured equally and ratably with (or prior to)
the obligations so secured for so long as such obligations are so secured. 

        Any
Lien created for the benefit of the Holders of the Notes pursuant to this Section 4.10 shall provide by its terms that such Lien shall be automatically and unconditionally
released and discharged upon the release and discharge of the initial Lien. 

35

 

        SECTION
4.11.    Limitation on Sale/Leaseback Transactions.    The Company will not, and will not permit any
Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with respect to any property unless: 

        (a)
the Company or such Subsidiary would be entitled to (A) incur Indebtedness in an amount equal to the Attributable Debt with respect to such Sale/Leaseback Transaction,
pursuant to Section 4.03 and (B) create a Lien on such property securing such Attributable Debt without equally and ratably securing the Notes pursuant to Section 4.10; 

        (b)
the net proceeds received by the Company or any Restricted Subsidiary in connection with such Sale/Leaseback Transaction are at least equal to the fair value (as determined by the
Board of Directors) of such property; and 

        (c)
the Company applies the proceeds of such Sale/Leaseback Transaction in compliance with Section 4.06. 

        SECTION
4.12.    Additional Subsidiary Guarantees.    If the Company or any of its Restricted Subsidiaries acquires,
creates or designates another domestic Restricted Subsidiary, then such newly acquired,
created or designated Restricted Subsidiary shall, within 30 days after the date of its acquisition, creation or designation, execute and deliver to the Trustee a Guaranty Agreement in form
reasonably satisfactory to the Trustee pursuant to which such Subsidiary shall unconditionally guarantee all of the Company's obligations under the Notes and the Indenture on the terms set forth in
the Indenture. 

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

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

ARTICLE 5
  Successors  

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

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

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

36

 

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

        (4)
immediately after giving pro forma effect to such transaction, the Successor Company shall have Consolidated Net Worth in an amount that is not less than the Consolidated Net Worth
of the Company immediately prior to such transaction; and 

        (5)
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; 

provided, however, that clauses (3) and (4) will not be applicable to (A) a Restricted Subsidiary consolidating with, merging into
or transferring all or part of its properties and assets to the Company or another Restricted Subsidiary or (B) the Company merging with an Affiliate of the Company solely for the purpose and
with the sole effect of reincorporating the Company in another jurisdiction. 

        For
purposes of this Section 5.01, the sale, lease, conveyance, assignment, transfer or other disposition of all or substantially all of the properties and assets of one or more
Subsidiaries of the Company, which properties and assets, if held by the Company instead of such Subsidiaries, would constitute all or substantially all of the properties and assets of the Company on
a consolidated basis, shall be deemed to be the transfer of all or substantially all of the properties and assets of the Company. 

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

        SECTION
5.02.    When Subsidiary Guarantor May Merge or Transfer Assets.    The Company will not permit any Subsidiary
Guarantor to consolidate with or merge with or into, or convey, transfer or lease, in one transaction or a series of transactions, all or substantially all of its assets to any Person unless: 

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

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

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

37

 

ARTICLE 6
  Defaults and Remedies  

        SECTION
6.01.    Events of Default.    An "Event of Default" occurs
if: 

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

        (2)
the Company (i) defaults in the payment of the principal of any Security when the same becomes due and payable at its Stated Maturity, upon optional redemption, upon
declaration of acceleration or otherwise or (ii) fails to purchase Securities when required pursuant to this Indenture or the Securities; 

        (3)
the Company fails to comply with Section 5.01 or 5.02; 

        (4)
the Company fails to comply with Section 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11 or 4.12 (other than a failure to purchase Securities when required under
Section 4.06 or 4.09) and such failure continues for 30 days after the notice specified below; 

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

        (6)
a default occurs which results in the acceleration of the maturity of any Indebtedness of the Company, any Subsidiary Guarantor or any Significant Subsidiary having an outstanding
principal amount of $10.0 million or more individually or taken together with all such other Indebtedness that has been so accelerated, in the aggregate; or a default occurs in the payment of
any Indebtedness of the Company, any Subsidiary Guarantor or any Significant Subsidiary in an amount of $10.0 million or more individually or taken together with other such Indebtedness with
respect to which any such payment has not been made within any applicable grace period after final maturity; 

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

        (A)
commences a voluntary case; 

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

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

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

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

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

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

        (B)
appoints a Custodian of the Company, any Subsidiary Guarantor or any Significant Subsidiary or for all or substantially all of the property of any of them; or 

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

38

 

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

        (9)
a judgment or order is rendered against the Company, any Subsidiary Guarantor or any Significant Subsidiary, which requires the payment in money by the Company, any Subsidiary
Guarantor or any Significant Subsidiary either individually or in the aggregate, of an amount (to the extent not covered by insurance) in excess of $10.0 million and such judgment or order
remains unsatisfied, undischarged, unvacated, unbonded and unstayed for 60 days; or 

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

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

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

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

        The
Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written notice in the form of an Officers' Certificate of any Event of Default and any event
which with the giving of
notice or the lapse of time would become an Event of Default, its status and what action the Company is taking or proposes to take with respect thereto. 

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

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

        The
Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy 

39

 

or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative. 

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

        SECTION
6.05.    Control by Majority.    The Holders of a majority in principal amount of the Securities may direct
the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture or, subject to Section 7.01, that the Trustee determines is unduly prejudicial to the rights of other Holders or would involve the
Trustee in personal liability; provided, however, that the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction. Prior to taking any action hereunder, the Trustee shall be entitled to reasonable indemnification against all liabilities, damages, fines,
penalties, claims, losses and expenses (including but not limited to reasonable attorneys' fees and expenses) caused by taking or not taking such action. 

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

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

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

        (3)
such Holder or Holders offer to the Trustee reasonable security or indemnity against any loss, liability or expense (including but not limited to reasonable attorneys' fees and
expenses); 

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

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

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

        SECTION
6.07.    Rights of Holders to Receive Payment.    Notwithstanding any other provision of this Indenture, the
right of any Holder to receive payment of principal of and interest on the Securities held by such Holder, on or after the respective due dates expressed in the Securities, or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder. 

        SECTION
6.08.    Collection Suit by Trustee.    If an Event of Default specified in Section 6.01(1) or
(2) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount then due and owing (together with
interest on any unpaid interest to the extent lawful) and the amounts provided for in Section 7.07. 

        SECTION
6.09.    Trustee May File Proofs of Claim.    The Trustee may file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee 

40

 

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

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

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

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

        THIRD:
to the Company. 

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

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

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

41

   ARTICLE 7
  Trustee

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

42

 

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

        (d)
The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers;  provided, however, that the Trustee's conduct
does not constitute willful misconduct or negligence. 

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

        SECTION
7.03.    Individual Rights of Trustee.    The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 

        SECTION
7.04.    Trustee's Disclaimer.    The Trustee shall not be responsible for and makes no representation as to
the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company's use of the proceeds from the Securities, and it shall not be responsible for any statement
of the Company in this Indenture or in any document issued in connection with the sale of the Securities or in the Securities other than the Trustee's certificate of authentication. 

        SECTION
7.05.    Notice of Defaults.    If a Default occurs and is continuing and if the Trustee obtains actual
knowledge of its occurrence, the Trustee shall mail to each Holder notice of the Default within 60 days after it has actual knowledge thereof. Except in the case of a Default in payment of
principal of or interest on any Security (including payments pursuant to the mandatory redemption provisions of such Security, if any), the Trustee may withhold the notice if and so long as a
committee of its Trust officers in good faith determines that withholding the notice is in the interests of Holders. 

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

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

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

43

 

by Trustee's own willful misconduct, negligence or bad faith. Such indemnification is intended to and shall be enforceable by the Trustee or any of its officers, directors, agents or employees
respectively. 

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

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

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

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

        (2)
the Trustee is adjudged bankrupt or insolvent; 

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

        (4)
the Trustee otherwise becomes incapable of acting. 

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

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

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

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

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

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

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

44

 

successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee
shall have. 

        SECTION
7.10.    Eligibility; Disqualification.    The Trustee shall at all times satisfy the requirements of TIA
§310(a). The Trustee shall have a combined capital and surplus of at least $50.0 million as set forth in its most recent published annual report of condition. The Trustee shall
comply with TIA §310(b); provided, however, that there shall be excluded from the operation of TIA §310(b)(1) any indenture or
indentures under which other securities or certificates of interest or participation in other securities of the Company are outstanding if the requirements for such exclusion set forth in TIA
§310(b)(1) are met. 

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

ARTICLE 8
  Discharge of Indenture; Defeasance

        SECTION
8.01    Discharge of Liability on Securities; Defeasance.    (a) When (1) the Company delivers
to the Trustee all outstanding Securities (other than Securities replaced pursuant to Section 2.08) for cancellation or (2) all outstanding Securities have become due and payable,
whether at maturity or on a redemption date as a result of the mailing of a notice of redemption pursuant to Article 3 hereof and the Company irrevocably deposits with the Trustee funds
sufficient to pay at maturity or upon redemption all outstanding Securities, including interest thereon to maturity or such redemption date (other than Securities replaced pursuant to
Section 2.08), and if in either case the Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 8.01(c), cease to be of further
effect. The Trustee shall acknowledge satisfaction and discharge of this Indenture on demand of the Company accompanied by an Officers' Certificate and an Opinion of Counsel and at the cost and
expense of the Company. 

        (b)
Subject to Sections 8.01(c) and 8.02, the Company at any time may terminate (1) all its obligations under the Securities and this Indenture ("legal
defeasance option") or (2) its obligations under Sections 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11 and 4.12 and the operation of Sections 6.01(4),
6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case of Sections 6.01(7) and (8), with respect only to Significant Subsidiaries and Subsidiary Guarantors) and the limitations contained in Sections
5.01(3) and (4) ("covenant defeasance option"). The Company may exercise its legal defeasance option notwithstanding its prior exercise of its
covenant defeasance option. 

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

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

        (c)
Notwithstanding clauses (a) and (b) above, the Company's obligations in Sections 2.03, 2.04, 2.05, 2.07, 2.08, 2.09, 7.07 and 7.08 and in this Article 8 shall
survive until the Securities have been paid in full. Thereafter, the Company's obligations in Sections 7.07, 8.04 and 8.05 shall survive. 

45

 

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

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

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

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

        (4)
the deposit does not constitute a default under any other agreement binding on the Company; 

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

        (6)
in the case of the legal defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel stating that (A) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling or (B) since the date of this Indenture there has been a change in the applicable Federal income tax law, in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, the Holders will not recognize income, gain or loss for Federal income tax purposes as a result of such defeasance and will be
subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred; 

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

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

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

        SECTION
8.03.    Application of Trust Money.    The Trustee shall hold in trust money or U.S. Government obligations
deposited with it pursuant to this Article 8. It shall apply the deposited money and the money from U.S. Government Obligations through the Paying Agent and in accordance with this Indenture to
the payment of principal of and interest on the Securities. 

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

        Subject
to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal or
interest 

46

 

that remains unclaimed for two years, and, thereafter, Holders entitled to the money must look to the Company for payment as general creditors. 

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

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

ARTICLE 9

Amendments  

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

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

        (2)
to provide for the assumption by a successor corporation of the obligations of the Company and the Subsidiary Guarantors under this Indenture; 

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

        (4)
to add guarantees with respect to the Securities, including any Subsidiary Guaranties, or to secure the Securities; 

        (5)
to add to the covenants of the Company or a Subsidiary Guarantor for the benefit of the Holders or to surrender any right or power herein conferred upon the Company or a Subsidiary
Guarantor; 

        (6)
to make any change that does not adversely affect the rights of any Holder; or 

        (7)
to comply with any requirement of the SEC in connection with the qualification of this Indenture under the TIA. 

        SECTION
9.02.    With Consent of Holders.    The Company, the Subsidiary Guarantors and the Trustee may amend, or
waive any past Default of noncompliance with any provision of, this Indenture or the Securities without notice to any Holder but with the written consent of the Holders of at least a majority in
principal amount of the Securities then outstanding (including consents obtained in connection with a tender offer or exchange for the Securities). However, without the consent of each Holder affected
thereby, an amendment or waiver may not, among other things: 

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

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

47

 

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

        (4)
reduce the amount payable upon the redemption of any Security or change the time at which any Security may be redeemed in accordance with Article 3; 

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

        (6)
impair the right of any Holder to receive payment of principal of and interest on such Holder's Securities on or after the due dates therefor or to institute suit for the enforcement
of any payment on or with respect to such Holder's Securities; 

        (7)
make any change in the amendment provisions that requires each Holder's consent or in the waiver provisions; 

        (8)
make any change in the ranking or priority of any Security that would adversely affect the Holders; or 

        (9)
make any change in any Subsidiary Guaranty that would adversely affect the Holders. 

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

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

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

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

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

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

48

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

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

ARTICLE 10
  Subsidiary Guaranties  

        SECTION
10.01.    Guaranties.    Each Subsidiary Guarantor hereby unconditionally and irrevocably guarantees, jointly
and severally, to each Holder and to the Trustee and its successors and assigns (a) the full and punctual payment of principal of and interest on the Securities when due, whether at maturity,
by acceleration, by redemption or otherwise, and all other monetary obligations of the Company under this Indenture and the Securities and (b) the full and punctual performance within
applicable grace periods of all other obligations of the Company under this Indenture and the Securities (all the foregoing being hereinafter collectively called the
"Securities Obligations"). Each Subsidiary Guarantor further agrees that the Securities Obligations may be extended or renewed, in whole or in part,
without notice or further assent from such Subsidiary Guarantor and that such Subsidiary Guarantor will remain bound under this Article 10 notwithstanding any extension or renewal of any
Securities Obligation. 

        Each
Subsidiary Guarantor waives presentation to, demand of, payment from and protest to the Company of any of the Securities Obligations and also waives notice of protest for
nonpayment. Each
Subsidiary Guarantor waives notice of any default under the Securities or the Securities Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by (a) the
failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or remedy against the Company or any other Person under this Indenture, the Securities or any other agreement
or otherwise, (b) any extension or renewal of any thereof, (c) any rescission, waiver, amendment or modification of any of the terms or provisions of this Indenture, the Securities or
any other agreement, (d) the release of any security held by any Holder or the Trustee for the Securities Obligations or any of them, (e) the failure of any Holder or the Trustee to
exercise any right or remedy against any other guarantor of the Securities Obligations or (f) except as set forth in Section 10.06, any change in the ownership of such Subsidiary
Guarantor. 

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

        Except
as expressly set forth in Sections 8.01(b), 10.02 and 10.06, the obligations of each Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation, impairment
or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of the Securities Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each
Subsidiary Guarantor herein shall not 

49

 

be discharged or impaired or otherwise affected by the failure of any Holder or the Trustee to assert any claim or demand or to enforce any remedy under this Indenture, the Securities or any other
agreement, by any waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any extent vary the risk of such Subsidiary Guarantor or would otherwise operate as a discharge of such Subsidiary Guarantor
as a matter of law or equity. 

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

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

        Each
Subsidiary Guarantor further agrees that, as between it, on the one hand, and the Holders and the Trustee, on the other hand, (a) the maturity of the Securities Obligations
guaranteed hereby may be accelerated as provided in Article 6 for the purposes of such Subsidiary Guarantor's Subsidiary Guaranty herein, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Securities Obligations guaranteed hereby and (b) in the event of any declaration of acceleration of such Securities Obligations as
provided in Section 6.02, such Securities Obligations (whether or not due and payable) shall forthwith become due and payable by such Subsidiary Guarantor for the purposes of this Section. 

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

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

        SECTION
10.03.    Successors and Assigns.    This Article 10 shall be binding upon each Subsidiary Guarantor
and its successors and assigns and shall inure to the benefit of the successors and assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by any Holder or
the Trustee, the rights and privileges conferred upon that party in this Indenture and in the Securities shall automatically extend to and be vested in such transferee or assignee, all subject to the
terms and conditions of this Indenture. 

        SECTION
10.04.    No Waiver.    Neither a failure nor a delay on the part of either the Trustee or the Holders in
exercising any right, power or privilege under this Article 10 shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any
right, 

50

 

power or privilege. The rights, remedies and benefits of the Trustee and the Holders herein expressly specified are cumulative and not exclusive of any other rights, remedies or benefits which either
may have under this Article 10 at law, in equity, by statute or otherwise. 

        SECTION
10.05.    Modification.    No modification, amendment or waiver of any provision of this Article 10,
nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Trustee, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or
demand on any Subsidiary Guarantor in any case shall entitle such Subsidiary Guarantor to any other or further notice or demand in the same, similar or other circumstances. 

        SECTION
10.06.    Release of Subsidiary Guarantor.    Upon (a) the sale or other disposition (including by way
of consolidation or merger) of a Subsidiary Guarantor, (b) the sale or disposition of all or substantially all the assets of a Subsidiary Guarantor or (c) the designation of such
Subsidiary Guarantor as an Unrestricted Subsidiary, in each case in accordance with the provisions of this Indenture and, in the case of clauses (a) and (b) above, other than a sale or
disposition to the Company or an Affiliate of the Company, such Subsidiary Guarantor shall be deemed released from all obligations under this Article 10 without any further action required on
the part of the Trustee or any Holder. At the request of the Company, the Trustee shall execute and deliver an appropriate instrument evidencing such release. 

ARTICLE 11
  Miscellaneous  

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

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

        if
to the Company or any Subsidiary Guarantor: 

	 	 	Mothers Work, Inc.

456 North Fifth Street

Philadelphia, Pennsylvania 19123

Attention: Chief Financial Officer
	
	 	 

        if
to the Trustee: 

	 	 	J.P. Morgan Trust Company, National Association

Chase Financial Tower

250 W. Huron Road

Suite 220

Cleveland, Ohio 44113

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

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

        Failure
to mail a notice or communication to a Holder or any defect in the notice or communication shall not affect its sufficiency with respect to other Holders. If a notice or 

51

 

communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives such notice or communication. 

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

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

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

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

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

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

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

        (3)
a statement that, in the opinion of such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and 

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

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

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

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

        SECTION
11.09.    Governing Law.    This Indenture and the Securities shall be governed by, and construed in
accordance with, the laws of the State of New York but without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another jurisdiction would
be required thereby. 

52

 

        SECTION
11.10.    No Recourse Against Others.    A director, officer, employee, incorporator or stockholder, as such,
of the Company or any Subsidiary Guarantor shall not have any liability for any obligations of the Company under the Securities, any Subsidiary Guaranty or this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. Each Holder, by accepting a Security, waives and releases all such liability. The waiver and release are part of the consideration for
issuance of the Securities. Such waiver and release may not be effective to waive liabilities under the U.S. Federal securities laws, and it is the view of the SEC that such a waiver is against public
policy. 

        SECTION
11.11.    Successors.    All agreements of the Company in this Indenture and the Securities shall bind its
successors. All agreements of the Trustee in this Indenture shall bind its successors. 

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

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

53

 

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

	 	 	MOTHERS WORK, INC.
	

 	
 	

By:	
 	

/s/  DAN W. MATTHIAS      
 Name: Dan W. Matthias

Title: Chief Executive Officer
	 	 	 	 	 
	 	 	CAVE SPRINGS, INC.
	

 	
 	

By:	
 	

/s/  REBECCA C. MATTHIAS      
 Name: Rebecca C. Matthias

Title: President and Chief Operating Officer
	 	 	 	 	 
	 	 	eSPECIALTY BRANDS, LLC
	

 	
 	

By:	
 	

/s/  DAN W. MATTHIAS      
 Name: Dan W. Matthias

Title: Chief Executive Officer
	 	 	 	 	 
	 	 	DAN HOWARD INDUSTRIES, INC.
	

 	
 	

By:	
 	

/s/  DAN W. MATTHIAS      
 Name: Dan W. Matthias

Title: Chief Executive Officer
	 	 	 	 	 
	 	 	MOTHERS STORES, INC.
	

 	
 	

By:	
 	

/s/  DAN W. MATTHIAS      
 Name: Dan W. Matthias

Title: Chief Executive Officer
	 	 	 	 	 
	 	 	J.P.MORGAN TRUST COMPANY,

    NATIONAL ASSOCIATION,

    as Trustee
	

 	
 	

By:	
 	

/s/  ROBERT WARE      
 Name: Robert Ware

Title: Trust Officer

54

   
EXHIBIT A 

[FORM
OF FACE OF SECURITY] 

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

        TRANSFERS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 

Exhibit A-1

 

	 	 	CUSIP No. ______
	No. ___________	 	$______
	
	 	 

111/4% Senior Notes Due 2010 

        Mothers
Work, Inc., a Delaware corporation, promises to pay to                 , or registered assigns, the principal sum of
             Dollars on August 1, 2010. 

        Interest
Payment Dates: February 1 and August 1. 

        Record
Dates: January 15 and July 15. 

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

Dated:

	 	 	Mothers Work, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

TRUSTEE'S
CERTIFICATE OF

    AUTHENTICATION 

J.P.
Morgan Trust Company,

National Association,

    as Trustee, certifies

    that this is one of

    the Securities referred to

    in the Indenture. 

	By:	 	 
	 	 	
 Authorized Signatory

Exhibit A-2

 

[FORM OF REVERSE SIDE OF SECURITY] 

111/4%
Senior Notes Due 2010 

1.    Interest  

        Mothers Work, Inc., a Delaware corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein
called the "Company"), promises to pay interest on the principal amount of this Security at the rate per annum shown above. The Company will pay
interest semiannually on February 1 and August 1 of each year, commencing February 1, 2003. Interest on the Securities will accrue from the most recent date to which interest has
been paid or, if no interest has been paid, from August 5, 2002. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company will pay
interest on overdue principal at the above rate and will pay interest on overdue installments of interest at such rate to the extent lawful. 

2.    Method of Payment  

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

3.    Paying Agent and Registrar  

        Initially, J.P. Morgan Trust Company, National Association, a national banking association (the "Trustee"), will
act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically incorporated Wholly
Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar. 

4.    Indenture  

        The
Company issued the Securities under an Indenture dated as of August 5, 2002 (the "Indenture"), among the Company, the
Subsidiary Guarantors and the Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15  U.S.C.
§§77aaa-77bbbb) as in effect on the date of the Indenture (the
"Act"). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all
such terms, and Holders are referred to the Indenture and the Act for a statement of those terms. 

        The
Securities are general unsecured obligations of the Company. The Company shall be entitled, subject to its compliance with Section 4.03 of the Indenture, to issue Additional
Securities pursuant to Section 2.14 of the Indenture. The Securities issued on the Issue Date and any Additional Securities will be treated as a single class for all purposes under the
Indenture. The Indenture contains covenants 

Exhibit A-3

 

that limit the ability of the Company and its subsidiaries to: incur additional indebtedness; pay dividends or distributions on, or redeem or repurchase capital stock; make investments; issue or sell
capital stock of subsidiaries; engage in transactions with affiliates; create liens on assets; transfer or sell assets; guarantee indebtedness; restrict dividends or other payments of subsidiaries;
consolidate, merge or transfer all or substantially all of the Company's assets and the assets of its subsidiaries; and engage in sale/leaseback transactions. These covenants are subject to important
exceptions and qualifications. 

5.    Optional Redemption  

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

        On
and after August 1, 2006, the Company shall be entitled at its option to redeem all or a portion of the Securities upon not less than 30 nor more than 60 days' notice,
at the redemption prices (expressed in percentages of principal amount, on the redemption date), plus accrued interest to the redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on August 1 of the years set forth below: 

	Period
 
	 	Redemption Price
	 
	2006	 	105.625	%
	2007	 	103.750	%
	2008	 	101.875	%
	2009 and thereafter	 	100.000	%

In
addition, prior to August 1, 2005, the Company shall be entitled at its option on one or more occasions to redeem Securities (which includes Additional Securities, if any) in an aggregate
principal amount not to exceed 35% of the aggregate principal amount of the Securities (which includes Additional Securities, if any) originally issued at a redemption price (expressed as a percentage
of principal amount) of 111.250%, plus accrued and unpaid interest to the redemption date, with the net cash proceeds from one or more Public Equity Offerings; provided,
however, that (1) at least 65% of such aggregate principal amount of Securities (which includes Additional Securities, if any) remains outstanding immediately after the
occurrence of each such redemption (other than Securities held, directly or indirectly, by the Company or its Affiliates) and (2) each such redemption occurs within 60 days after the
date of the related Public Equity Offering. 

6.    Notice of Redemption  

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

7.    Put Provisions  

        Upon a Change of Control, any Holder of Securities will have the right to cause the Company to repurchase all or any part of the Securities of such Holder at a
repurchase price equal to 101% of the principal amount of the Securities to be repurchased plus accrued and unpaid interest, if any, to the date of repurchase (subject to the right of holders of
record on the relevant record date to receive 

Exhibit A-4

 

interest due on the related interest payment date) as provided in, and subject to the terms of, the Indenture. 

8.    Guarantee  

        The payment by the Company of the principal of, and premium and interest on, the Securities is guaranteed by the Subsidiary Guarantors on a joint and several
basis, on the terms set forth in the Indenture. 

9.    Denominations; Transfer; Exchange  

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

10.  Persons Deemed Owners  

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

11.  Unclaimed Money  

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

12.  Discharge and Defeasance  

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

13.  Amendment, Waiver  

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

Exhibit A-5

 

14.  Defaults and Remedies  

        Under the Indenture, Events of Default include (i) default for 30 days in payment of interest on the Securities; (ii) default in payment of
principal on the Securities at maturity, upon redemption pursuant to paragraph 5 of the Securities, upon acceleration or otherwise, or failure by the Company to redeem or purchase Securities
when required; (iii) failure by the Company or any Subsidiary Guarantor to comply with other agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time;
(iv) certain accelerations or payment default in respect other Indebtedness of the Company, any Subsidiary Guarantor or any Significant Subsidiary if the amount accelerated (or if the amount of
such Indebtedness with respect to which such a payment is not made after expiration any applicable grace period) exceeds $10.0 million; (v) certain events of bankruptcy or insolvency
with respect to the Company, any Subsidiary Guarantor and the Significant Subsidiaries; (vi) certain judgments or decrees for the payment of money in excess of $10.0 million; and
(vii) certain defaults with respect to Subsidiary Guaranties. If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Securities
may declare all the Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Securities being due and payable immediately
upon the occurrence of such Events of Default. 

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

15.  Trustee Dealings with the Company  

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

16.  No Recourse Against Others  

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

17.  Authentication  

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

18.  Abbreviations  

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

Exhibit A-6

 

19.  CUSIP Numbers  

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

20.  Governing Law.  

        THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

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

        Mothers
Work, Inc.

        456 North Fifth Street

        Philadelphia, Pennsylvania 19123 

        Attention:
Chief Financial Officer 

Exhibit A-7

 

ASSIGNMENT FORM 

To
assign this Security, fill in the form below: 

I
or we assign and transfer this Security to 

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

(Insert
assignee's social security or tax I.D. No.) 

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

Date:_______________    Your
Signature: _________________________________ 

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

Exhibit A-8

 

OPTION OF HOLDER TO ELECT PURCHASE 

        If
you want to elect to have this Security purchased by the Company pursuant to Section 4.06 or 4.09 of the Indenture, check the box: 

o

        If
you want to elect to have only part of this Security purchased by the Company pursuant to Section 4.06 or 4.09 of the Indenture, state the amount in principal amount:
$__________ 

	Date: ______________________________	 	Your Signature:	 	______________________________
 (Sign exactly as your name appears on the other side of this Security.)

Signature
Guarantee:                                       
                                          
                                         

 (Signature must be guaranteed) 

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

Exhibit A-9

QuickLinks

EXHIBIT 4.11

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