Document:

Exhibit 4.1

 

 

MXENERGY HOLDINGS INC.,

 

as Issuer,

 

and

 

THE GUARANTORS PARTY HERETO,

 

as Guarantors

 

13.25% Senior Subordinated Secured Notes due 2014

 

 

INDENTURE

 

Dated as of September 22, 2009

 

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK,

 

as Trustee

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.3,
  7.8, 7.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.5

  
	
  (b)

  	
   

  	
  13.3

  
	
  (c)

  	
   

  	
  13.3

  
	
  313(a)

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
  7.6

  
	
  (c)

  	
   

  	
  7.6,
  13.2

  
	
  (d)

  	
   

  	
  7.6

  
	
  314(a)

  	
   

  	
  4.3,
  4.4, 13.5

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  13.4

  
	
  (c)(2)

  	
   

  	
  13.4

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  13.5

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.1(b)

  
	
  (b)

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
  7.1(a)

  
	
  (d)

  	
   

  	
  7.1(c)

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a)(last
  sentence)

  	
   

  	
  2.9

  
	
  (a)(1)(A)

  	
   

  	
  6.5

  
	
  (a)(1)(B)

  	
   

  	
  6.4

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.7

  
	
  (c)

  	
   

  	
  N.A.

  
	
  317(a)(1)

  	
   

  	
  6.8

  
	
  (a)(2)

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
  2.4

  
	
  318(a)

  	
   

  	
  13.1

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)

  	
   

  	
  13.1

  

 

N.A. means Not Applicable

 

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page Numbers

  
	
   

  
	
  ARTICLE I.

  
	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  
	
  Section 1.1.

  	
  Definitions

  	
  1

  
	
  Section 1.2.

  	
  Other Definitions

  	
  24

  
	
  Section 1.3.

  	
  Incorporation by Reference of Trust Indenture Act

  	
  25

  
	
  Section 1.4.

  	
  Rules of Construction

  	
  25

  
	
  Section 1.5.

  	
  Acts of Holders

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  
	
   

  	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Form and Dating

  	
  26

  
	
  Section 2.2.

  	
  Execution and Authentication

  	
  27

  
	
  Section 2.3.

  	
  Registrar and Paying Agent

  	
  28

  
	
  Section 2.4.

  	
  Paying Agents to Hold Money in Trust

  	
  28

  
	
  Section 2.5.

  	
  Holder Lists

  	
  28

  
	
  Section 2.6.

  	
  Transfer and Exchange

  	
  29

  
	
  Section 2.7.

  	
  Replacement Notes

  	
  39

  
	
  Section 2.8.

  	
  Outstanding Notes

  	
  39

  
	
  Section 2.9.

  	
  Treasury Notes

  	
  39

  
	
  Section 2.10.

  	
  Temporary Notes

  	
  40

  
	
  Section 2.11.

  	
  Cancellation

  	
  40

  
	
  Section 2.12.

  	
  Defaulted Interest

  	
  40

  
	
  Section 2.13.

  	
  Persons Deemed Owners

  	
  40

  
	
  Section 2.14.

  	
  CUSIP and ISIN Numbers

  	
  41

  
	
  Section 2.15.

  	
  Additional Interest

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  
	
   

  	
   

  	
   

  
	
  REDEMPTION AND REPURCHASE

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Notices to Trustee

  	
  41

  
	
  Section 3.2.

  	
  Selection of Notes

  	
  41

  
	
  Section 3.3.

  	
  Notice of Optional or Special Redemption

  	
  42

  
	
  Section 3.4.

  	
  Effect of Notice of Redemption

  	
  43

  
	
  Section 3.5.

  	
  Deposit of Redemption Price or Purchase Price

  	
  43

  
	
  Section 3.6.

  	
  Notes Redeemed or Repurchased in Part

  	
  43

  
	
  Section 3.7.

  	
  Optional Redemption

  	
  43

  
	
  Section 3.8.

  	
  Optional Redemption Upon Equity Offerings

  	
  44

  
	
  Section 3.9.

  	
  Repurchase upon Change of Control Offer

  	
  44

  
				

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 3.10.

  	
  Repurchase upon Application of Net Proceeds

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Payment of Principal and Interest

  	
  47

  
	
  Section 4.2.

  	
  Maintenance of Office or Agency

  	
  47

  
	
  Section 4.3.

  	
  Reports

  	
  48

  
	
  Section 4.4.

  	
  Compliance Certificate

  	
  48

  
	
  Section 4.5.

  	
  Taxes

  	
  48

  
	
  Section 4.6.

  	
  Stay, Extension and Usury Laws

  	
  49

  
	
  Section 4.7.

  	
  Limitation on Restricted Payments

  	
  49

  
	
  Section 4.8.

  	
  Limitation on Dividend and Other Payment Restrictions Affecting
  Restricted Subsidiaries

  	
  51

  
	
  Section 4.9.

  	
  Limitation on Incurrence of Additional Indebtedness

  	
  52

  
	
  Section 4.10.

  	
  Limitation on Asset Sales

  	
  53

  
	
  Section 4.11.

  	
  Limitations on Transactions with Affiliates

  	
  54

  
	
  Section 4.12.

  	
  Limitation on Liens

  	
  55

  
	
  Section 4.13.

  	
  Continued Existence

  	
  56

  
	
  Section 4.14.

  	
  Insurance Matters

  	
  56

  
	
  Section 4.15.

  	
  Offer to Repurchase upon Change of Control

  	
  56

  
	
  Section 4.16.

  	
  Additional Subsidiary Guarantees

  	
  57

  
	
  Section 4.17.

  	
  Payments for Consent

  	
  57

  
	
  Section 4.18.

  	
  Limitation on Issuance of Preferred Stock of Restricted
  Subsidiaries

  	
  57

  
	
  Section 4.19.

  	
  Conduct of Business

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.

  
	
   

  	
   

  	
   

  
	
  SUCCESSORS

  
	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Merger, Consolidation and Sale of Assets

  	
  58

  
	
  Section 5.2.

  	
  Successor Corporation Substituted

  	
  60

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  
	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Events of Default

  	
  60

  
	
  Section 6.2.

  	
  Acceleration

  	
  61

  
	
  Section 6.3.

  	
  Other Remedies

  	
  62

  
	
  Section 6.4.

  	
  Waiver of Past Defaults

  	
  62

  
	
  Section 6.5.

  	
  Control by Majority

  	
  63

  
	
  Section 6.6.

  	
  Limitation on Suits

  	
  63

  
	
  Section 6.7.

  	
  Rights of Holders of Notes to Receive Payment

  	
  63

  
	
  Section 6.8.

  	
  Collection Suit by Trustee

  	
  63

  
	
  Section 6.9.

  	
  Trustee May File Proofs of Claim

  	
  64

  
	
  Section 6.10.

  	
  Priorities

  	
  64

  
				

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 6.11.

  	
  Undertaking for Costs

  	
  64

  
	
  Section 6.12.

  	
  Appointment and Authorization of the Trustee as Collateral
  Agent

  	
  65

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  
	
   

  	
   

  	
   

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Duties of Trustee

  	
  65

  
	
  Section 7.2.

  	
  Rights of Trustee

  	
  66

  
	
  Section 7.3.

  	
  Individual Rights of Trustee

  	
  67

  
	
  Section 7.4.

  	
  Trustee’s Disclaimer

  	
  67

  
	
  Section 7.5.

  	
  Notice of Defaults

  	
  67

  
	
  Section 7.6.

  	
  Reports by Trustee to Holders of the Notes

  	
  68

  
	
  Section 7.7.

  	
  Compensation, Reimbursement and Indemnity

  	
  68

  
	
  Section 7.8.

  	
  Replacement of Trustee

  	
  69

  
	
  Section 7.9.

  	
  Successor Trustee by Merger, Etc.

  	
  69

  
	
  Section 7.10.

  	
  Eligibility; Disqualification

  	
  70

  
	
  Section 7.11.

  	
  Preferential Collection of Claims Against Company

  	
  70

  
	
  Section 7.12.

  	
  Collateral Agent

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  
	
   

  	
   

  	
   

  
	
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  Option to Effect Legal Defeasance or Covenant Defeasance

  	
  70

  
	
  Section 8.2.

  	
  Legal Defeasance and Discharge

  	
  70

  
	
  Section 8.3.

  	
  Covenant Defeasance

  	
  71

  
	
  Section 8.4.

  	
  Conditions to Legal or Covenant Defeasance

  	
  71

  
	
  Section 8.5.

  	
  Deposited Money and Government Securities to Be Held in
  Trust; Other Miscellaneous Provisions

  	
  72

  
	
  Section 8.6.

  	
  Repayment to Company

  	
  73

  
	
  Section 8.7.

  	
  Reinstatement

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  
	
   

  	
   

  	
   

  
	
  AMENDMENT, SUPPLEMENT AND WAIVER

  
	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Without Consent of Holders of Notes

  	
  73

  
	
  Section 9.2.

  	
  With Consent of Holders of Notes

  	
  74

  
	
  Section 9.3.

  	
  Compliance with Trust Indenture Act

  	
  75

  
	
  Section 9.4.

  	
  Revocation and Effect of Consents

  	
  76

  
	
  Section 9.5.

  	
  Notation on or Exchange of Notes

  	
  76

  
	
  Section 9.6.

  	
  Trustee to Sign Amendment, Etc.

  	
  76

  
				

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE X.

  
	
   

  	
   

  	
   

  
	
  GUARANTEE

  
	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
  Unconditional Guarantee

  	
  76

  
	
  Section 10.2.

  	
  Severability

  	
  77

  
	
  Section 10.3.

  	
  Limitation of Guarantor’s Liability

  	
  77

  
	
  Section 10.4.

  	
  Release of Guarantor

  	
  77

  
	
  Section 10.5.

  	
  Contribution

  	
  78

  
	
  Section 10.6.

  	
  Waiver of Subrogation

  	
  78

  
	
  Section 10.7.

  	
  Execution of Guarantee

  	
  79

  
	
  Section 10.8.

  	
  Waiver of Stay, Extension or Usury Laws

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI.

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
  Satisfaction and Discharge

  	
  79

  
	
  Section 11.2.

  	
  Application of Trust

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII.

  
	
   

  	
   

  	
   

  
	
  SECURITY

  
	
   

  	
   

  	
   

  
	
  Section 12.1.

  	
  Security Documents; Additional Collateral

  	
  80

  
	
  Section 12.2.

  	
  Recording, Registration and Opinions

  	
  81

  
	
  Section 12.3.

  	
  Release of Liens on Collateral

  	
  81

  
	
  Section 12.4.

  	
  Form and Sufficiency of Release

  	
  82

  
	
  Section 12.5.

  	
  Possession and Use of Collateral

  	
  82

  
	
  Section 12.6.

  	
  Purchaser Protected

  	
  82

  
	
  Section 12.7.

  	
  Authorization of Actions To Be Taken by the Collateral Agent
  Under the Security Documents

  	
  82

  
	
  Section 12.8.

  	
  Authorization of Receipt of Funds by the Trustee Under the
  Security Agreement

  	
  82

  
	
  Section 12.9.

  	
  Powers Exercisable by Receiver or Collateral Agent

  	
  82

  
	
  Section 12.10.

  	
  Ranking of Liens

  	
  83

  
	
  Section 12.11.

  	
  Relative Rights

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII.

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 13.1.

  	
  Trust Indenture Act Controls

  	
  84

  
	
  Section 13.2.

  	
  Notices

  	
  84

  
	
  Section 13.3.

  	
  Communication by Holders of Notes with Other Holders of
  Notes

  	
  85

  
	
  Section 13.4.

  	
  Certificate and Opinion as to Conditions Precedent

  	
  85

  
	
  Section 13.5.

  	
  Statements Required in Certificate or Opinion

  	
  86

  
				

 

iv

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 13.6.

  	
  Rules by Trustee and Agents

  	
  86

  
	
  Section 13.7.

  	
  No Personal Liability of Directors, Officers, Employees and
  Stockholders

  	
  86

  
	
  Section 13.8.

  	
  Governing Law; Submission to Jurisdiction; Waiver of Jury
  Trial

  	
  86

  
	
  Section 13.9.

  	
  No Adverse Interpretation of Other Agreements

  	
  87

  
	
  Section 13.10.

  	
  Successors

  	
  87

  
	
  Section 13.11.

  	
  Severability

  	
  87

  
	
  Section 13.12.

  	
  Counterpart Originals

  	
  87

  
	
  Section 13.13.

  	
  Table of Contents, Headings, Etc.

  	
  87

  
	
  Section 13.14.

  	
  Intercreditor Agreement

  	
  87

  
	
  Section 13.15.

  	
  Notes Escrow Agreement

  	
  88

  
	
  Section 13.16.

  	
  Qualification of Indenture

  	
  88

  
	
   

  	
   

  	
   

  
	
  Signatures

  	
   

  	
  S-1

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
  Exhibit A

  	
  Form of 13.25% Senior Subordinated Secured Note due 2014

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  Form of
  Guarantee

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  Form of
  Certificate of Transfer

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  Form of
  Certificate of Exchange

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  Form of
  Certificate of Acquiring Accredited Investor

  	
   

  
				

 

v

 

INDENTURE

 

INDENTURE dated as of September 22, 2009 among
MXENERGY HOLDINGS INC., a Delaware corporation (the “Company”), the
Guarantors (as defined herein), if any, and Law Debenture Trust Company of New
York, 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 (as defined
below) of the Company’s 13.25% Senior Subordinated Secured Notes due 2014:

 

ARTICLE I.

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.1.                                   Definitions.

 

“144A Global Note” means a Global Note substantially in the
form of Exhibit A hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of, and registered in the name
of, the Depositary or its nominee that will be issued in a denomination equal
to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

 

“Account
Control Agreement” means, with respect to any deposit account, an agreement
among the Trustee, for the benefit of the Holders, the financial institution or
other Person at which such account is maintained, and the Company or Guarantor
maintaining such account, effective to grant “control” (as defined under the
applicable Uniform Commercial Code) over such accounts to the Trustee.

 

“Accredited
Investor” means an institution that is an “accredited investor” as defined
in Rule 501(a) under the Securities Act, who are not also QIBs.

 

“Acquired Indebtedness” means Indebtedness of
a Person or any of its Subsidiaries existing at the time such Person becomes a
Restricted Subsidiary of the Company or at the time it merges or consolidates
with or into the Company or any of its Subsidiaries or assumed in connection
with the acquisition of assets from such Person and in each case not incurred
by such Person in connection with, or in anticipation or contemplation of, such
Person becoming a Restricted Subsidiary of the Company or such acquisition,
merger or consolidation.

 

“Additional Interest” means all additional
interest then owing pursuant to Section 5 of the Registration Rights
Agreement or the comparable section of any registration rights agreement
entered into in connection with the issuance of any Additional Notes.

 

“Additional Notes” means Notes (other than
the Initial Notes and any Exchange Notes issued in exchange therefor) issued
under this Indenture pursuant to Article II and in compliance with Section 4.9
as part of the same series as the Initial Notes.

 

“Affiliate” means, with respect to any
specified Person, any other Person who directly or indirectly through one or
more intermediaries controls, or is controlled by, or is under common control
with, such specified Person.  The term “control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative of the foregoing, provided that no
Holder of Notes shall be deemed to be an Affiliate of the Company solely by
reason of holding the shares of Class A Exchange Common Stock such Holder
has received in the Exchange Offer and being party to the equity agreements
entered into in connection with the Exchange Offer.

 

“Agent” means any Registrar, Paying Agent or
co-registrar.

 

 

“AI Global Note” means a Global Note substantially in the form of Exhibit A
hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with or on behalf of, and registered in the name of, the Depositary
or its nominee.

 

“Applicable Procedures” means, with respect to any transfer or
exchange of or for beneficial interests in any Global Note, the rules and
procedures of the Depositary, Euroclear and Clearstream that apply to such
transfer or exchange.

 

“Asset Acquisition” means (1) an
Investment by the Company or any Restricted Subsidiary of the Company in any
other Person pursuant to which such Person shall become a Restricted Subsidiary
of the Company or any Restricted Subsidiary of the Company, or shall be merged
with or into the Company or any Restricted Subsidiary of the Company, or (2) the
acquisition by the Company or any Restricted Subsidiary of the Company of the
assets of any Person (other than a Restricted Subsidiary of the Company) which
constitute all or substantially all of the assets of such Person or comprises
any division or line of business of such Person or any other properties or
assets of such Person other than in the ordinary course of business.

 

“Asset Sale” means any direct or indirect
sale, issuance, conveyance, transfer, lease (other than operating leases
entered into in the ordinary course of business), assignment or other transfer
for value by the Company or any of its Restricted Subsidiaries (including any
Sale and Leaseback Transaction) to any Person other than the Company or a
Wholly Owned Restricted Subsidiary of the Company of:  (1) any Capital Stock of any Restricted
Subsidiary of the Company; or (2) any other property or assets of the Company
or any Restricted Subsidiary of the Company other than in the ordinary course
of business; provided, however,
that asset sales or other dispositions shall not include:  (a) a transaction or series of related
transactions for which the Company or its Restricted Subsidiaries receive
aggregate consideration of less than $1.0 million; (b) the sale, lease,
conveyance, disposition or other transfer of all or substantially all of the
assets of the Company as permitted under Section 5.1; (c) any
Restricted Payment permitted by Section 4.7 or that constitutes a
Permitted Investment; (d) the sale or discount, in each case without
recourse, of accounts receivable arising in the ordinary course of business,
but only in connection with the compromise or collection thereof; (e) disposals
or replacements of obsolete or worn-out equipment; (f) the grant of Liens
not prohibited by this Indenture; (g) the licensing of intellectual property;
(h) dispositions of accounts receivable to local distribution companies
under guaranteed receivables agreements entered into in the ordinary course of
business; and (i) the sale of inventory in the ordinary course of business.

 

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

 

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

 

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

 

“Business Day” means
any day other than a Saturday, a Sunday or a day on which banking institutions
in the City of New York or at a place of payment are authorized by law,
regulation or executive order to remain closed. 
If a payment date is not a Business Day, payment may be made on the next
succeeding day that is a Business Day, and no interest shall accrue for the
intervening period.

 

“Capital Stock”
means:

 

(1)                                  with respect to any Person that is a corporation, any
and all shares, interests, participations or other equivalents (however
designated and whether or not voting) of corporate stock, including 

 

2

 

each class of Common Stock and Preferred Stock of such
Person, and all options, warrants or other rights to purchase or acquire any of
the foregoing; and

 

(2)                                  with respect to any Person that is not a corporation,
any and all partnership, membership or other equity interests of such Person,
and all options, warrants or other rights to purchase or acquire any of the
foregoing.

 

“Capitalized Lease Obligation” means, as to any Person, the obligations
of such Person under a lease that are required to be classified and accounted
for as capital lease obligations under GAAP and, for purposes of this
definition, the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.

 

“Cash Equivalents”
means:

 

(1)                                  marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition thereof;

 

(2)                                  marketable direct obligations issued by any state of
the United States of America or any political subdivision of any such state or
any public instrumentality thereof maturing within one year from the date of
acquisition thereof and, at the time of acquisition, having one of the two
highest ratings obtainable from either Standard & Poor’s Ratings Group
(“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”);

 

(3)                                  commercial paper maturing no more than one year from
the date of creation thereof and, at the time of acquisition, having a rating
of at least A-1 from S&P or at least P-1 from Moody’s;

 

(4)                                  certificates of deposit or bankers’ acceptances
maturing within one year from the date of acquisition thereof issued by any
bank organized under the laws of the United States of America or any state
thereof or the District of Columbia or any U.S. branch of a foreign bank having
at the date of acquisition thereof combined capital and surplus of not less
than $250.0 million;

 

(5)                                  repurchase obligations with a term of not more than
seven days for underlying securities of the types described in clause (1) above
entered into with any bank meeting the qualifications specified in clause (4) above;
and

 

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

 

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

 

(1)                                  any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all of
the assets of the Company to any Person or group of related Persons for
purposes of Section 13(d) of the Exchange Act (a “Group”), together
with any Affiliates thereof (whether or not otherwise in compliance with the
provisions of this Indenture) other than to the Permitted Holders;

 

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

 

3

 

(3)                                  any Person or Group (other than the Permitted Holders
and any entity formed by the Permitted Holders for the purpose of owning
Capital Stock of the Company) shall become the owner, directly or indirectly,
beneficially or of record, of shares representing more than 50% of the
aggregate ordinary voting power represented by the issued and outstanding
Capital Stock of the Company;

 

provided, however, in no event shall any event that
occurs in connection with the exercise of rights and remedies under the Credit
Facility constitute a “Change of Control,”and provided, further,
that no holders of shares of Class A Exchange Common Stock, Class C
Common Stock or Common Stock shall be deemed to constitute a Group for the
purpose of determining whether a Change of Control has occurred solely by
virtue of being a party to the Class A Voting Agreement, the Class C
Voting Agreement and/or the Stockholders Agreement, respectively, in each case
as the same may be amended, amended and restated, supplemented, modified,
renewed, replaced or extended from time to time.

 

“Class A Exchange Common Stock” means the
shares of Class A common stock, par value $0.01, of the Company issued to
the holders of the Existing Notes who validly tendered (and did not withdraw)
their Existing Notes in the Exchange Offer.

 

“Class A Stockholder” means the owner of
the Class A Exchange Common Stock.

 

“Class A Voting Agreement” means the
voting agreement, dated as of September 22, 2009, among the Class A
Stockholders listed on schedule 1 thereto and any other Class A
Stockholder that becomes party to the agreement after the date of execution, as
amended, modified, renewed, restated or replaced from time to time in
accordance with its terms.

 

“Class C Common Stock” means the shares of Class C
common stock of the Company, par value $0.01 per share, issued to holders of
the Company’s old Common Stock and old Series A Preferred Stock upon conversion
thereof on the Issue Date.

 

“Class C Stockholder” means the owner of
the Class C Common Stock.

 

“Class C Voting Agreement” means the
voting agreement, dated as of September 22, 2009, among the Class C
Stockholders, as amended, modified, renewed, restated or
replaced from time to time in accordance with its terms.

 

“Clearstream” means Clearstream Banking, S.A.

 

“Collateral” means all present and future
properties and assets of the Company or any other Pledgor upon which a security
interest is granted to secure the Notes or the Guarantees pursuant to the
Security Documents, including, without limitation, the Notes Escrow Account
(and the cash, Cash Equivalents and Government Securities on deposit in such
account), other than Excluded Assets.

 

“Collateral Agent” means the Trustee in its
capacity as collateral agent for the Notes under the Security Documents.

 

“Commission” means the Securities and
Exchange Commission.

 

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

 

4

 

“Company” means MxEnergy Holdings Inc., a
Delaware corporation, or any successor obligor under this Indenture and the
Notes pursuant to Article V.

 

“Consolidated EBITDA” means, with respect to
any Person, for any period, the sum (without duplication) of:

 

(1)                                  Consolidated Net Income; and

 

(2)                                  to the extent
Consolidated Net Income has been reduced thereby:

 

(a)                                  all income
taxes of such Person and its Restricted Subsidiaries paid or accrued in
accordance with GAAP for such period (other than income taxes attributable to extraordinary,
unusual or nonrecurring gains or losses or taxes attributable to sales or
dispositions outside the ordinary course of business);

 

(b)                                 Consolidated
Interest Expense; and

 

(c)                                  Consolidated
Non-cash Charges less any non-cash items
increasing Consolidated Net Income for such period, all as determined on a
consolidated basis for such Person and its Restricted Subsidiaries in accordance
with GAAP.

 

In
addition to the foregoing, Consolidated EBITDA shall be calculated to exclude
the after-tax impact of:

 

(1)                                  any unrealized gains or
losses from risk management activities of any Person and its Restricted Subsidiaries
as set forth on such Person’s consolidated financial statements.

 

(2)                                  extraordinary,
unusual or nonrecurring gains or losses attributable to sales or dispositions
outside the ordinary course of business;

 

(3)                                  any gain or
loss from settled financial hedges with a term of one year or less for inventory
before it is sold to customers occurring since the latest April 1st.  As of the trailing twelve month period ending
each March 31st, this amount is
deemed to be zero;

 

(4)                                  any non-cash
impact on earnings from the write down (or write up) of inventory during such
period due to the application of the weighted average cost method of inventory
valuation for natural gas; or

 

(5)                                  any non-cash
impact on earnings from the write down of inventory during such period as a result
of a lower of cost or market valuation.

 

“Consolidated Fixed Charge Coverage Ratio” means, with respect to any Person, the
ratio of Consolidated EBITDA of such Person during the four full fiscal quarters
(the “Four Quarter Period”) ending prior to the date of the transaction
giving rise to the need to calculate the Consolidated Fixed Charge Coverage
Ratio for which financial statements are available (the “Transaction Date”)
to Consolidated Fixed Charges of such Person for the Four Quarter Period.  In addition to and without limitation of the
foregoing, for purposes of this definition, “Consolidated EBITDA” and “Consolidated
Fixed Charges” shall be calculated after giving effect on a pro  forma basis for
the period of such calculation to:

 

(1)                                  the incurrence or repayment of any Indebtedness of
such Person or any of its Restricted Subsidiaries (and the application of the
proceeds thereof) giving rise to the need to make such 

 

5

 

calculation and any incurrence or repayment of other
Indebtedness (and the application of the proceeds thereof), other than the
incurrence or repayment of Indebtedness in the ordinary course of business for
working capital purposes pursuant to working capital facilities, occurring
during the Four Quarter Period or at any time subsequent to the last day of the
Four Quarter Period and on or prior to the Transaction Date, as if such
incurrence or repayment, as the case may be (and the application of the
proceeds thereof), occurred on the first day of the Four Quarter Period; and

 

(2)                                  any asset sales or other dispositions or Asset
Acquisitions (including, without limitation, any Asset Acquisition giving rise
to the need to make such calculation as a result of such Person or one of its
Restricted Subsidiaries (including any Person who becomes a Restricted
Subsidiary as a result of the Asset Acquisition) incurring, assuming or
otherwise being liable for Acquired Indebtedness and also including any
Consolidated EBITDA (including any pro forma
expense and cost reductions calculated on a basis consistent with Regulation
S-X under the Exchange Act) attributable to the assets which are the subject of
the Asset Acquisition or asset sale or other disposition during the Four
Quarter Period) occurring during the Four Quarter Period or at any time
subsequent to the last day of the Four Quarter Period and on or prior to the
Transaction Date, as if such asset sale or other disposition or Asset
Acquisition (including the incurrence, assumption or liability for any such
Acquired Indebtedness) occurred on the first day of the Four Quarter
Period.  If such Person or any of its
Restricted Subsidiaries directly or indirectly guarantees Indebtedness of a
third Person, the preceding sentence shall give effect to the incurrence of
such guaranteed Indebtedness as if such Person or any Restricted Subsidiary of
such Person had directly incurred or otherwise assumed such guaranteed Indebtedness.

 

Furthermore, in calculating “Consolidated Fixed
Charges” for purposes of determining the denominator (but not the numerator) of
this “Consolidated Fixed Charge Coverage Ratio”:

 

(1)                                  interest on outstanding
Indebtedness determined on a fluctuating basis as of the Transaction Date and
which will continue to be so determined thereafter shall be deemed to have accrued
at a fixed rate per annum equal to the rate of interest on such Indebtedness in
effect on the Transaction Date; and

 

(2)                                  notwithstanding clause (1) above, interest
on Indebtedness determined on a fluctuating basis, to the extent such interest
is covered by agreements relating to Interest Swap Obligations, shall be deemed
to accrue at the rate per annum resulting after giving effect to the operation
of such agreements.

 

“Consolidated Fixed Charges” means, with
respect to any Person for any period, the sum, without duplication, of:

 

(1)                                  Consolidated Interest
Expense; plus

 

(2)                                  the product of (x) the amount of all dividend
payments on any series of Preferred Stock of such Person and, to the extent
permitted under this Indenture, its Restricted Subsidiaries (other than
dividends paid in Qualified Capital Stock and other than dividends paid by a
Restricted Subsidiary of such Person to such Person or to a Wholly Owned
Restricted Subsidiary of such Person) paid, accrued or scheduled to be paid or
accrued during such period times (y) a fraction, the numerator of which is
one and the denominator of which is one minus the then current effective
consolidated federal, state and local income tax rate of such Person, expressed
as a decimal.

 

“Consolidated Interest Expense” means, with
respect to any Person for any period, the sum of, without duplication:

 

6

 

(1)                                  the aggregate of the
interest expense of such Person and its Restricted Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP, net of interest
income, including without limitation:  (a) any
amortization of debt discount; (b) the net costs under Interest Swap Obligations;
(c) all capitalized interest; and (d) the interest portion of any
deferred payment obligation; provided
that the foregoing shall not include the amortization or write-off of deferred
financing costs or non-cash unrealized gains or losses on Interest Swap
Obligations; and

 

(2)                                  the interest component of
Capitalized Lease Obligations paid, accrued and/or scheduled to be paid or
accrued by such Person and its Restricted Subsidiaries during such period as
determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” means, with respect
to any Person, for any period, the aggregate net income (or loss) of such
Person and its Restricted Subsidiaries for such period on a consolidated basis,
determined in accordance with GAAP; provided that
there shall be excluded therefrom:

 

(1)                                  after-tax gains or losses
from Asset Sales (without regard to the $1.0 million limitation set forth in
the definition thereof) or abandonments or reserves relating thereto;

 

(2)                                  after-tax items classified
as extraordinary, unusual or nonrecurring gains or losses;

 

(3)                                  the net income of any Person accrued prior to the date
it becomes a Restricted Subsidiary of the referent Person or is merged or
consolidated with the referent Person or any Restricted Subsidiary of the
referent Person;

 

(4)                                  the net income (but not loss) of any Restricted
Subsidiary of the referent Person to the extent that the declaration of
dividends or similar distributions by that Restricted Subsidiary of that income
is restricted by a contract, operation of law or otherwise, unless received in
cash by the Company or a Restricted Subsidiary that is not subject to any such
restriction and other than to the extent permitted by the covenant described in
Section 4.8;

 

(5)                                  the net income of any Person, other than a Restricted
Subsidiary of the referent Person, except to the extent of cash dividends or
distributions paid to the referent Person or to a Restricted Subsidiary of the
referent Person by such Person;

 

(6)                                  any restoration to income of  any contingency reserve, except to the extent
that provision for such reserve was made out of Consolidated Net Income accrued
at any time following the Issue Date;

 

(7)                                  income or loss attributable to discontinued operations
(including, without limitation, operations disposed of during such period
whether or not such operations were classified as discontinued);

 

(8)                                  in the case of a successor to the referent Person by
consolidation or merger or as a transferee of the referent Person’s assets, any
earnings of the successor corporation prior to such consolidation, merger or
transfer of assets; and

 

(9)                                  any net after-tax income or
loss (less all fees and expenses or charges relating thereto) attributable to
the early extinguishment of Indebtedness.

 

In
addition to the foregoing, Consolidated Net Income shall be calculated to
exclude the after-tax impact of:

 

7

 

(1)                                any unrealized gains or
losses from risk management activities of any Person and its Restricted
Subsidiaries as set forth on such Person’s consolidated financial statements;

 

(2)                                any gain or loss from
settled financial hedges with a term of one year or less for inventory before
it is sold to customers occurring since the latest April 1st.  As of the trailing twelve month period ending
each March 31st, this amount
is deemed to be zero;

 

(3)                               any non-cash impact on
earnings from the write down (or write up) of inventory during such period due
to the application of the weighted average cost method of inventory valuation
for natural gas;

 

(4)                             any non-cash impact on
earnings from the write down of inventory during such period as a result of a
lower of cost or market valuation; or

 

(5)                            any non-cash expenses of
such Person and its Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP (excluding any such charges
constituting an extraordinary item or loss or any such charge which requires an
accrual of or a reserve for cash charges for any future period).

 

“Consolidated Non-cash Charges” means, with
respect to any Person, for any period, the aggregate depreciation, amortization
and other non-cash expenses of such Person and its Restricted Subsidiaries
reducing Consolidated Net Income of such Person and its Restricted Subsidiaries
for such period, determined on a consolidated basis in accordance with GAAP
(excluding any such charges constituting an extraordinary item or loss or any
such charge which requires an accrual of or a reserve for cash charges for any
future period).

 

“Corporate Trust Office” means the office of
the Trustee at which time its corporate trust business shall be principally
administered.  Such address is specified
in Section 13.2 or such other address as to which the Trustee may give notice
to the Company.

 

“Credit Facility” means the debt
facilities, physical supply agreements, commodity hedge facilities or similar
agreements, entered into with Sempra Energy Trading LLC and/or its affiliates
on the Issue Date, as amended, restated, modified, renewed, refunded, replaced
or refinanced in whole or in part from time to time, including any refunding,
replacement or refinancing thereof through similar facilities entered into with
one or more counterparties, as a global financing or separate facilities,
together with the related documents thereto (including, without limitation, any
guarantee agreements and security documents).

 

“Credit Facility Agent” means at any time, the Person serving at
such time as the “Agent” or “Administrative Agent” under the Credit Facility or
any other representative then most recently designated in accordance with the
applicable provisions of the Credit Facility or any successor or replacement
agreement or agreements entered into by the Company in connection with the replacement
or refinancing of the Credit Facility, together with its successors in such
capacity.

 

“Credit Facility Documents” means the
Credit Facility and each of the other agreements, documents and instruments
providing for or evidencing any other Credit Facility Obligations, and any
other document or instrument executed or delivered at any time in connection
with any Credit Facility Obligations, including any intercreditor or joinder
agreement among holders of the Credit Facility Obligations, to the extent such
are effective at the relevant time, as each may be amended, amended and
restated, supplemented, modified, renewed, replaced, refinanced or extended
from time to time.

 

“Credit
Facility Lenders” means the lenders from time to time party to the Credit
Facility in such capacity.

 

8

 

“Credit Facility
Obligations”  means any
principal (including reimbursement obligations with respect to letters of
credit whether or not drawn), interest (including, to the extent legally
permitted, all interest accrued thereon after the commencement of any
insolvency or liquidation proceeding at the rate, including any applicable
post-default rate, specified in the Credit Facility Documents, even if such
interest is not enforceable, allowable or allowed as a claim in such
proceeding), premium (if any), fees, indemnifications, reimbursements, expenses
and other liabilities payable under the documentation governing any
Indebtedness.

 

“Currency Agreement” means any foreign
exchange contract, currency swap agreement or other similar agreement or
arrangement designed to protect the Company or any Restricted Subsidiary of the
Company against fluctuations in currency values.

 

“Custodian” means the Trustee, as custodian, with respect to the
Notes in global form, or any successor entity thereto.

 

“Default” means an event or condition the
occurrence of which is, or with the lapse of time or the giving of notice or
both would be, an Event of Default.

 

“Definitive Note” means a certificated Note registered in the name of
the Holder thereof and issued in accordance with Section 2.6 hereof,
substantially in the form of Exhibit A hereto except that such Note shall
not bear the Global Note Legend and shall not have the “Schedule of Exchanges
of Interests in the Global Note” attached thereto.

 

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

 

“Depositary” means, with respect to the Notes issuable in whole
or in part in global form, the Person specified in Section 2.3 as the
Depositary with respect to the Notes, until a successor shall have been
appointed and become such pursuant to the applicable provisions hereof, and,
thereafter, “Depositary” shall mean or include such successor.

 

“Discharge of Credit
Facility Obligations” means, except in the event of a refinancing of
the Credit Facility, the occurrence of all of the following:

 

(1)                       payment in full
in cash of the principal of and interest (including interest accruing on or
after the commencement of any insolvency or liquidation proceeding, whether or
not such interest would be allowed in such insolvency or liquidation
proceeding) and premium (if any) on all Indebtedness outstanding under the
Credit Facility and constituting Credit Facility Obligations, including
reimbursement obligations;

 

(2)                     payment in full in cash of
all other Credit Facility Obligations that are outstanding and unpaid at the
time such principal, interest and premium (if any) on all Indebtedness under
the Credit Facility are paid in full in cash (other than any obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities
in respect of which no claim or demand for payment has been made at such time);

 

(3)                     termination or expiration of
all commitments, if any, to extend credit that would constitute Credit Facility
Obligations;

 

(4)                     termination or cash
collateralization (in an amount and manner reasonably satisfactory to the
Agent, but in no event greater than 105% of the aggregate undrawn face amount)
of all letters of credit issued under the Credit Facility and constituting
Credit Facility Obligations; and

 

9

 

(5)                    termination or
expiration of all Specified Hedging Agreements and the payment in full in cash
of all Specified Hedging Obligations that are outstanding and unpaid at the
time of such termination or expiration, including any breakage fees, premiums
and other amounts due in connection with any such termination.

 

“Disqualified Capital Stock” means that
portion of 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 thereof), or upon the happening of any event (other than
an event which would constitute a Change of Control or an Asset Sale), matures
or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the sole option of the holder thereof (except,
in each case, upon the occurrence of a Change of Control or an Asset Sale) on
or prior to the final maturity date of the Notes.

 

“Distribution Compliance Period” means the forty (40)-day distribution
compliance period as defined in Rule 903(b)(2) of Regulation S.

 

“Domestic Restricted Subsidiary” means a
Restricted Subsidiary incorporated or otherwise organized or existing under the
laws of the United States, any state thereof or any territory or possession of
the United States.

 

“DTC” means The Depositary Trust Company.

 

“Equity Offering” means any public or private
sale of Qualified Capital Stock of the Company or any of its direct or indirect
parent companies (provided that, in the event of an
Equity Offering by a direct or indirect parent company, such company
contributes to the capital of the Company the portion of net cash proceeds of
such Equity Offering necessary to pay the aggregate redemption price (plus accrued interest to the redemption date) of the Notes
to be redeemed pursuant to Section 3.8 hereof), other than (i) public
offerings with respect to common stock of the Company or any of its direct or
indirect parent companies registered on Form S-4 or Form S-8 or (ii) an
issuance to any Subsidiary of the Company.

 

“Euroclear”
means Euroclear Bank, S.A./N.V.

 

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

 

“Exchange Notes” means the Notes issued in
exchange for the Initial Notes, which Exchange Notes are registered under the
Securities Act and issued pursuant to the terms of the Registration Rights Agreement.

 

“Exchange
Offer” means the offer to exchange any and all of the Company’s Existing
Notes for a combination of cash, the Notes and shares of the Company’s common
Capital Stock.

 

“Excluded Assets” will include, among other
things, (i) any lease, license, permit, franchise, power, authority or
right if, to the extent that and for long as (a) the grant of a security
interest therein validly constitutes or would result in the abandonment,
invalidation or unenforceability of such lease, license, permit, franchise,
power, authority or right or the termination or default under the instrument or
agreement by which such lease, license, permit, franchise, power, authority or
right is governed and (b) such abandonment, invalidation, unenforceability,
breach, termination or default is not rendered ineffective pursuant to Sections
9-046, 9-047, 9-048 or 9-049 of the Uniform Commercial Code (or any successor
provision) of any relevant jurisdiction or other applicable law (including the
U.S. Bankruptcy Code) or principles of equity; provided, however, that (x) such
lease, license, permit, franchise, power, authority or right will be an
Excluded Asset only to the extent and for as long as the conditions set forth
in clauses (a) and (b) of this paragraph are and remain satisfied,
and to the

 

10

 

extent such assets otherwise constitute Collateral,
such assets will cease to be Excluded Assets and will become subject to the
second priority security interest of the Collateral Agent for the benefit of
the Holders of Notes, immediately and automatically at such time as such
conditions cease to exist, including by reason of any waiver or consent under
the applicable instrument or agreement, and (y) the proceeds of any sale,
lease or other disposition of any such lease, license, permit, franchise,
power, authority or right that is or becomes an Excluded Asset shall not be an
Excluded Asset and shall at all times be and remain subject to the second
priority security interest of the Collateral Agent for the benefit of the
Holders of Notes, (ii) property securing Capital Lease Obligations, mortgage
financings or purchase money obligations and Indebtedness secured by Liens
permitted to be incurred under this Indenture to the extent the documents
governing such Indebtedness prohibit the granting of a security interest in the
assets securing such Indebtedness, (iii) non-material real property, (iv) any
instrument evidencing Indebtedness owed to the Company or any of the Guarantors
to the extent that (a) the existence and amount of such instrument is
disclosed herein or (b) such instrument is created following the date of
the issuance of the Notes in a transaction that complies with this
Indenture.  Notwithstanding anything to
the contrary in this definition no asset that is subject to a Lien securing the
Credit Facility Obligations shall constitute an “Excluded Asset”.

 

“Existing
Notes” means the Company’s outstanding Floating Rate Senior Notes due 2011
issued pursuant to the Existing Notes Indenture.

 

“Existing
Notes Indenture” means that certain Indenture, dated as of August 4,
2006, among the Company, the guarantors party thereto, Law Debenture Trust
Company of New York, as trustee, and Deutsche Bank Trust Company Americas, as
registrar and paying agent, as the same may be amended, supplemented or modified
from time to time in accordance with the terms thereof.

 

“fair market value” means, with respect to any asset or
property, the price which could be negotiated in an arm’s-length, free market
transaction, for cash, between a willing seller and a willing and able buyer,
neither of whom is under undue pressure or compulsion to complete the transaction.  Fair market value shall be determined by the
Board of Directors of the Company acting reasonably and in good faith and shall
be evidenced by a Board Resolution of the Board of Directors of the Company
delivered to the Trustee.

 

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

 

“Global
Note Legend” means
the legend set forth in Section 2.6(f)(ii) hereof, which is required
to be placed on all Global Notes issued under this Indenture.

 

“Global Notes” means, individually and
collectively, each of the Restricted Global Notes and the Unrestricted Global
Notes deposited with or on behalf of and registered in the name of the
Depositary or its nominee, substantially in the form of Exhibit A hereto
and that bears the Global Note Legend and that has the “Schedule of Exchanges
of Interests in the Global Note” attached thereto.

 

“Government
Securities” means direct obligations of, or obligations guaranteed by, the
United States of America, and the timely payment for which the United States
pledges its full faith and credit.

 

“Guarantee”
means a guarantee of the Notes by a Guarantor.

 

“Guarantor”
means (1) each of the Company’s Subsidiaries as of the Issue Date that is
a Domestic Restricted Subsidiary and (2) each of the Company’s Restricted
Subsidiaries that in the future executes a supplemental indenture in which such
Restricted Subsidiary agrees to be bound by the terms of this Indenture as 

 

11

 

a Guarantor; provided that
any Person constituting a Guarantor as described above shall cease to
constitute a Guarantor when its respective Guarantee is released in accordance
with the terms of this Indenture.

 

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

 

“Indebtedness” means
with respect to any Person, without duplication:

 

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

 

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

 

(3)                                 all Capitalized
Lease Obligations of such Person;

 

(4)                                 all Obligations
of such Person issued or assumed as the deferred purchase price of property,
all conditional sale obligations and all Obligations under any title retention
agreement (but excluding trade accounts payable and other accrued liabilities
arising in the ordinary course of business that are not overdue by 120 days or
more or are being contested in good faith by appropriate proceedings promptly
instituted and diligently conducted);

 

(5)                                 all Obligations
for the reimbursement of any obligor on any letter of credit, banker’s
acceptance or similar credit transaction;

 

(6)                                 guarantees and
other contingent obligations in respect of Indebtedness referred to in clauses (1) through
(5) above and clause (8) below;

 

(7)                                 all Obligations
of any other Person of the type referred to in clauses (1) through (6) which
are secured by any lien on any property or asset of such Person, the amount of
such Obligation being deemed to be the lesser of the fair market value of such
property or asset or the amount of the Obligation so secured;

 

(8)                                 all Obligations
under currency agreements and interest swap agreements of such Person; and

 

(9)                                 all
Disqualified Capital Stock issued by such Person with the amount of Indebtedness
represented by such Disqualified Capital Stock being equal to the greater of
its voluntary or involuntary liquidation preference and its maximum fixed repurchase
price, but excluding accrued dividends, if any.

 

For
purposes hereof, the “maximum fixed repurchase price” of any Disqualified Capital
Stock which does not have a fixed repurchase price shall be calculated in
accordance with the terms of such Disqualified Capital Stock as if such
Disqualified Capital Stock were purchased on any date on which Indebtedness
shall be required to be determined pursuant to this Indenture, and if such
price is based upon, or measured by, the fair market value of such Disqualified
Capital Stock, such fair market value shall be determined reasonably and in
good faith by the Board of Directors of the issuer of such Disqualified Capital
Stock.

 

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

 

“Independent Financial Advisor” means a firm (1) which does not, and
whose directors, officers and employees or Affiliates do not, have a direct or
indirect financial interest in the Company; and (2) which, in the judgment
of the Board of Directors of the Company, is otherwise independent and
qualified to perform the task for which it is to be engaged.

 

12

 

“Indirect
Participant” means a Person who holds a beneficial interest in a Global
Note through a Participant.

 

“Initial
Notes” means the $67,751,000 aggregate principal amount of original 13.25%
Senior Subordinated Notes due 2014 originally issued under this Indenture on
the Issue Date.

 

“Intercreditor Agreement” means the
intercreditor and subordination agreement, dated as of September 22, 2009,
among the Company, the Guarantors, Sempra Energy Trading LLC and the Trustee,
as amended, modified, renewed, restated or replaced from time to time in
accordance with its terms.

 

“Interest Swap Obligations” means the obligations of any Person
pursuant to any arrangement with any other Person, whereby, directly or
indirectly, such Person is entitled to receive from time to time periodic
payments calculated by applying either a floating or a fixed rate of interest
on a stated notional amount in exchange for periodic payments made by such
other Person calculated by applying a fixed or a floating rate of interest on
the same notional amount and shall include, without limitation, interest rate
swaps, caps, floors, collars and similar agreements.

 

“Investment” means, with respect to any Person, any direct or
indirect loan or other extension of credit (including, without limitation, a
guarantee) 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 by such Person of any
Capital Stock, bonds, notes, debentures or other securities or evidences of
Indebtedness issued by, any other Person. 
“Investment” shall exclude extensions of trade credit by the Company and
its Restricted Subsidiaries on commercially reasonable terms in accordance with
normal trade practices of the Company or such Restricted Subsidiary, as the
case may be.  If the Company or any Restricted
Subsidiary of the Company sells or otherwise disposes of any Common Stock of
any direct or indirect Restricted Subsidiary of the Company such that, after
giving effect to any such sale or disposition, such Person is no longer a
Subsidiary of the Company, the Company shall be deemed to have made an
Investment on the date of any such sale or disposition equal to the fair market
value of the Common Stock of such Restricted Subsidiary not sold or disposed
of.  Except as otherwise provided in this
Indenture, the amount of an Investment will be determined at the time the
Investment is made and without giving effect to subsequent changes in value.

 

“Issue
Date” means the date of original issuance of the Notes.

 

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

 

“Net
Cash Proceeds” means, with respect to any Asset Sale, the proceeds in the
form of cash or Cash Equivalents including payments in respect of deferred
payment obligations when received in the form of cash or Cash Equivalents
received by the Company or any of its Restricted Subsidiaries from such Asset
Sale net of:

 

(1)                                 reasonable out-of-pocket expenses and
fees relating to such Asset Sale (including, without limitation, legal,
accounting and investment banking fees and sales commissions);

 

(2)                                 taxes paid or payable after taking into
account any reduction in consolidated tax liability due to available tax
credits or deductions and any tax sharing arrangements;

 

(3)                                 repayment of Indebtedness (other than
Indebtedness under the Credit Facility and the Notes) that is secured by the
property or assets that are the subject of such Asset Sale; and

 

13

 

(4)                                 appropriate amounts to be provided by the
Company or any Restricted Subsidiary, as the case may be, as a reserve, in
accordance with GAAP, against any liabilities associated with such Asset Sale
and retained by the Company or any Restricted Subsidiary, as the case may be,
after such Asset Sale, including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale.

 

“Non-U.S. Person” means a Person who is not a
U.S. Person.

 

“Note Custodian” means the Trustee, as
custodian with respect to the Notes in global form, or any successor entity
thereto.

 

“Note Debt” means the Initial Notes and any
Exchange Notes.

 

“Notes” means the Initial Notes and the
Exchange Notes, if any, that are issued under this Indenture, as amended or
supplemented from time to time, including Additional Notes, if any.

 

“Notes
Default Notice” means a written notice from the Trustee to the Credit
Facility Agent pursuant to which the Credit Facility Agent is notified of the
occurrence of an Event of Default, which notice incorporates a reasonably detailed
description of such Event of Default and states specifically that such notice
is a “Notes Default Notice”.

 

“Notes Documents” means the Notes,
this Indenture and the Security Documents.

 

“Notes
Escrow Account” means the escrow account to be maintained by the Law
Debenture Trust Company of New York, as escrow agent, pursuant to the Notes
Escrow Agreement.

 

“Notes
Escrow Agreement” means the notes escrow and security agreement to be
entered into on the Issue Date among the Company, the Trustee and Law Debenture
Trust Company of New York, as escrow agent, relating to the Notes Escrow
Account, as amended, modified, renewed, restated or replaced from time to time
in accordance with its terms.

 

“Notes
Escrow Amount” has the meaning given in the Notes Escrow Agreement.

 

“Obligations”
means all obligations for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

 

“Officer”
means, (a) with respect to any Person that is a corporation, the Chairman
of the Board, the Chief Executive Officer, the President, Vice President,
Assistant Vice President, the Chief Operating Officer, the Chief Financial Officer,
the Chief Operating Officer, the Treasurer, the Controller, the Secretary or
any Vice-President of such Person and (b) with respect to any other
Person, the individuals selected by such Person to perform functions similar to
those of the officers listed in clause (a).

 

“Officers’ Certificate” means a certificate
signed by two Officers of the Company, at least one of whom shall be the
principal executive officer or principal financial officer of the Company and
delivered to the Trustee, that meets the requirements of Sections 13.4 and
13.5.

 

“Opinion of Counsel” means an opinion from
legal counsel who is reasonably acceptable to the Trustee that meets the
requirements of Sections 13.4 and 13.5. 
The counsel may be an employee of or counsel to the Company, any
Subsidiary of the Company or the Trustee.

 

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

 

14

 

“Participant”
means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream (and, with respect
to DTC, shall include Euroclear and Clearstream).

 

“Permitted
Holders” means Jeffrey A. Mayer, Denham Commodity Partners LP, Charter Mx
LLC and Camulos Capital LP, and their respective Affiliates.

 

“Permitted Indebtedness”
means, without duplication, each of the following:

 

(1)                                 Indebtedness
under the Notes issued on the Issue Date or any Exchange Notes (as defined in
the Registration Rights Agreement) and the Guarantees and the guarantees on any
Exchange Notes;

 

(2)                                 Indebtedness
incurred pursuant to the Credit Facility in an aggregate principal amount at
any time outstanding not to exceed $300.0 million;

 

(3)                                 [intentionally
omitted];

 

(4)                                 Indebtedness
under the Existing Notes not exchanged for Notes in the Exchange Offer and the
related guarantees thereto, but excluding any such Existing Notes held by the
Company or any Affiliate of the Company and the related guarantees thereto;

 

(5)                                 [intentionally
omitted];

 

(6)                                 Interest Swap
Obligations of the Company or any Restricted Subsidiary of the Company covering
Indebtedness of the Company or any of its Restricted Subsidiaries; provided, however,
that such Interest Swap Obligations are entered into to protect the Company and
its Restricted Subsidiaries from fluctuations in interest rates on its
outstanding Indebtedness to the extent the notional principal amount of such
Interest Swap Obligation does not, at the time of the incurrence thereof,
exceed the principal amount of the Indebtedness to which such Interest Swap
Obligation relates;

 

(7)                                 Indebtedness
under Currency Agreements; provided
that in the case of Currency Agreements which relate to Indebtedness, such
Currency Agreements do not increase the Indebtedness of the Company and its
Restricted Subsidiaries outstanding other than as a result of fluctuations in
foreign currency exchange rates or by reason of fees, indemnities and
compensation payable thereunder;

 

(8)                                 Indebtedness of
a Restricted Subsidiary of the Company to the Company or to a Wholly Owned
Restricted Subsidiary of the Company for so long as such Indebtedness is held
by the Company or a Wholly Owned Restricted Subsidiary of the Company, in each
case subject to no Lien held by a Person other than the Company or a Wholly
Owned Restricted Subsidiary of the Company; provided
that if as of any date any Person other than the Company or a Wholly Owned
Restricted Subsidiary of the Company owns or holds any such Indebtedness or
holds a Lien in respect of such Indebtedness, such date shall be deemed the
incurrence of Indebtedness not constituting Permitted Indebtedness under this
clause (8) by the issuer of such Indebtedness;

 

(9)                                 Indebtedness of
the Company to a Wholly Owned Restricted Subsidiary of the Company for so long
as such Indebtedness is held by a Wholly Owned Restricted Subsidiary of the
Company, in each case subject to no Lien other than a Lien permitted under this
Indenture; provided that (a) any
Indebtedness of the Company to any Wholly Owned Restricted Subsidiary of the
Company that is not a Guarantor is unsecured and subordinated, pursuant to a
written agreement, to the Company’s obligations under this Indenture and the
Notes and (b) if as of any date any Person other than a Wholly Owned

 

15

 

Restricted
Subsidiary of the Company owns or holds any such Indebtedness or any Person
holds a Lien in respect of such Indebtedness, such date shall be deemed the
incurrence of Indebtedness not constituting Permitted Indebtedness under this
clause (9) by the Company;

 

(10)                           Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of
business; provided, however, that such Indebtedness is extinguished
within five business days of incurrence;

 

(11)                           Indebtedness of
the Company or any of its Restricted Subsidiaries in respect of performance
bonds, bankers’ acceptances, workers’ compensation claims, surety or appeal
bonds, payment obligations in connection with self-insurance or similar
obligations, and bank overdrafts (and letters of credit in respect thereof) in
the ordinary course of business;

 

(12)                           Indebtedness
represented by Capitalized Lease Obligations and Purchase Money Indebtedness of
the Company and its Restricted Subsidiaries incurred in the ordinary course of
business not to exceed (together with any Refinancing Indebtedness with respect
thereto) $10.0 million at any one time outstanding;

 

(13)                           Refinancing
Indebtedness;

 

(14)                           Indebtedness
represented by guarantees by the Company or its Restricted Subsidiaries of Indebtedness
otherwise permitted to be incurred under this Indenture;

 

(15)                           Indebtedness of
the Company or any Restricted Subsidiary consisting of “earn-out” obligations,
guarantees, indemnities or obligations in respect of purchase price adjustments
in connection with the acquisition or disposition of assets (including Capital
Stock); and

 

(16)                           Additional
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate
principal amount (or accreted value) not to exceed $7.5 million at any one
time outstanding (which amount may, but need not, be incurred in whole or in
part under the Credit Facility).

 

For
purposes of determining compliance with Section 4.9, in the event that an
item of Indebtedness meets the criteria of more than one of the categories of
Permitted Indebtedness described in clauses (1) through (16) above or
is entitled to be incurred pursuant to the Consolidated Fixed Charge Coverage
Ratio provisions of such covenant, the Company shall, in its sole discretion,
classify (or later reclassify) such item of Indebtedness in any manner that
complies with this covenant; provided
that all Indebtedness outstanding under the Credit Facility up to the maximum
amount permitted under clause (2) above shall be deemed to have been
incurred pursuant to clause (2). Accrual of interest, accretion or
amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, and
the payment of dividends on Disqualified Capital Stock in the form of additional
shares of the same class of Disqualified Capital Stock will not be deemed to be
an incurrence of Indebtedness or an issuance of preferred stock of a Restricted
Subsidiary or Disqualified Capital Stock, as applicable, for purposes of Section 4.9.

 

“Permitted Investments”
means:

 

(1)                                 Investments by
the Company or any Restricted Subsidiary of the Company in any Person that is
or will become immediately after such Investment a Wholly Owned Restricted
Subsidiary of the Company or that will merge or consolidate into the Company or
a Wholly Owned Restricted Subsidiary of the Company;

 

16

 

(2)                                 Investments in the Company by any Wholly Owned Restricted Subsidiary of the Company; provided that any Indebtedness evidencing such Investment
and held by a Restricted Subsidiary that is not a Guarantor is unsecured and
subordinated, pursuant to a written agreement, to the Company’s obligations
under the Notes and this Indenture;

 

(3)                                 Investments in cash and Cash Equivalents;

 

(4)                                 Loans and advances to employees,
directors and officers of the Company and its Restricted Subsidiaries in the
ordinary course of business for bona fide business purposes not in excess of
$1.0 million at any one time outstanding;

 

(5)                                 Currency Agreements and Interest Swap
Obligations entered into in the ordinary course of the Company’s or its
Restricted Subsidiaries’ businesses and otherwise in compliance with this
Indenture;

 

(6)                                 Additional Investments (other than any
Investments in any direct or indirect parent company of the Company) not to
exceed $5.0 million at any one time outstanding;

 

(7)                                 Investments in securities of trade
creditors or customers received pursuant to any plan of reorganization or
similar arrangement upon the bankruptcy or insolvency of such trade creditors
or customers or in good faith settlement of delinquent obligations of such
trade creditors or customers;

 

(8)                                 Investments made by the Company or its
Restricted Subsidiaries as a result of consideration received in connection
with an Asset Sale made in compliance with Section 4.10;

 

(9)                                 Investments resulting from the creation
of Liens on the assets of the Company or any of its Restricted Subsidiaries in
compliance with Section 4.12;

 

(10)                           Investments represented by guarantees
that are otherwise permitted under this Indenture; and

 

(11)                           Investments the payment for which is
Qualified Capital Stock of the Company.

 

“Permitted Liens”
means the following types of Liens:

 

(1)                                 [intentionally
omitted];

 

(2)                                 [intentionally
omitted];

 

(3)                                 Liens of the Company or a Restricted
Subsidiary of the Company that is a Guarantor on assets of any Restricted
Subsidiary of the Company other than Collateral;

 

(4)                                 Liens for taxes, assessments or
governmental charges or claims either (a) not delinquent or (b) contested
in good faith by appropriate proceedings and as to which the Company or its Restricted
Subsidiaries shall have set aside on its books such reserves as may be required
pursuant to GAAP;

 

(5)                                 statutory Liens of landlords and Liens of
carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and other
Liens imposed by law incurred in the ordinary course of business for sums not
yet delinquent or being contested in good faith, if such reserve or other
appropriate provision, if any, as shall be required by GAAP shall have been
made in respect thereof;

 

17

 

(6)                                 Liens incurred or deposits made in the
ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security, including any Lien
securing letters of credit issued in the ordinary course of business consistent
with past practice in connection therewith, or to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, performance and return-of-money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed money);

 

(7)                                 judgment Liens not giving rise to an
Event of Default so long as such Lien is adequately bonded and any appropriate
legal proceedings which may have been duly initiated for the review of such
judgment shall not have been finally terminated or the period within which such
proceedings may be initiated shall not have expired;

 

(8)                                 easements, rights-of-way, zoning
restrictions and other similar charges or encumbrances in respect of real
property not interfering in any material respect with the ordinary conduct of
the business of the Company or any of its Restricted Subsidiaries;

 

(9)                                 any interest or title of a lessor under
any Capitalized Lease Obligation incurred in accordance with clause (12) of the
definition of Permitted Indebtedness; provided that
such Liens do not extend to any property or assets which is not leased property
subject to such Capitalized Lease Obligation (other than other property that is
subject to a separate lease from such lessor or any of its Affiliates);

 

(10)                           Liens securing Purchase Money
Indebtedness incurred in accordance with clause (12) of the definition of Permitted
Indebtedness; provided, however,
that (a) such Purchase Money Indebtedness shall not exceed the purchase
price or other cost of such property or equipment and shall not be secured by
any property or equipment of the Company or any Restricted Subsidiary of the
Company other than the property and equipment so acquired or other property
that was acquired from such seller or any of its Affiliates with the proceeds
of Purchase Money Indebtedness and (b) the Lien securing such Purchase
Money Indebtedness shall be created within 120 days of such acquisition;

 

(11)                           Liens upon specific items of inventory or
other goods and proceeds of any Person securing such Person’s obligations in
respect of bankers’ acceptances issued or created for the account of such Person
to facilitate the purchase, shipment or storage of such inventory or other
goods;

 

(12)                           Liens securing reimbursement obligations
with respect to commercial letters of credit which encumber documents and other
property relating to such letters of credit and products and proceeds thereof;

 

(13)                           Liens encumbering deposits made to secure
obligations arising from statutory, regulatory, contractual (including, without
limitation, (a) contracts for trading activities in the ordinary course of
business and for the purchase, transmission, distribution, sale, lease or hedge
of any energy-related commodity or service and (b) commodity price
management contracts or derivatives), or warranty requirements of the Company
or any of its Restricted Subsidiaries, including rights of offset and set-off;

 

(14)                           Liens securing Interest Swap Obligations
which Interest Swap Obligations relate to Indebtedness that is otherwise
permitted under this Indenture;

 

(15)                           Liens securing Indebtedness under
Currency Agreements; and

 

18

 

(16)                           Liens securing Acquired Indebtedness
incurred in accordance with Section 4.9; provided
that:

 

(a)                                  such Liens secured such Acquired
Indebtedness at the time of and prior to the incurrence of such Acquired Indebtedness
by the Company or a Restricted Subsidiary of the Company and were not granted
in connection with, or in anticipation of, the incurrence of such Acquired
Indebtedness by the Company or a Restricted Subsidiary of the Company; and

 

(b)                                 such Liens do not extend to or cover any
property or assets of the Company or of any of its Restricted Subsidiaries
other than the property or assets that secured the Acquired Indebtedness prior
to the time such Indebtedness became Acquired Indebtedness of the Company or a
Restricted Subsidiary of the Company and are no more favorable to the lienholders
than those securing the Acquired Indebtedness prior to the incurrence of such
Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company.

 

(17)                           Liens on assets of a Restricted
Subsidiary of the Company that is not a Guarantor to secure Indebtedness of
such Restricted Subsidiary that is otherwise permitted under this Indenture;

 

(18)                           Leases, subleases, licenses and
sublicenses granted to others that do not materially interfere with the ordinary
course of business of the Company and its Restricted Subsidiaries;

 

(19)                           banker’s Liens, rights of setoff and
similar Liens with respect to cash and Cash Equivalents on deposit in one or
more bank accounts in the ordinary course of business;

 

(20)                           Liens arising from filing Uniform
Commercial Code financing statements regarding leases;

 

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

 

(22)                           Liens (a) on inventory held by and
granted to a local distribution company in the ordinary course of business and (b) in
accounts purchased and collected by and granted to a local distribution company
that has agreed to make payments to the Company or any of its Restricted
Subsidiaries for such amounts in the ordinary course of business; and

 

(23)                         Liens with respect to obligations
(including Indebtedness) of the Company or any of its Restricted Subsidiaries
that do not exceed $7.5 million at any one time outstanding, provided
that, except in the case of Liens securing Indebtedness incurred under
the Credit Facility in accordance with clause (16) of the definition of “Permitted
Indebtedness”, any such Liens encumbering any Collateral are (x)  pari passu with or junior to the Liens securing the Notes
and the Guarantees and (y) the holders of the Indebtedness secured by such
Liens or their representative and the Trustee have entered into an intercreditor
agreement on customary terms satisfactory to the Trustee.

 

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

 

“Pledgors”
means the Company and any other Person (if any) that provides collateral
security for any Secured Debt Obligations.

 

19

 

“The PORTAL Market” means the Private
Offerings, Resales and Trading through Automatic Linkages Market, commonly
referred to as The Portal Market, operated by the National Association of Securities
Dealers, Inc. or any successor thereto.

 

“Preferred Stock” of any Person means any
Capital Stock of such Person that has preferential rights to any other Capital
Stock of such Person with respect to dividends or redemptions or upon liquidation.

 

“Private Placement Legend” means the legend set forth in Section 2.6(f)(i) hereof
to be placed on all Notes issued under this Indenture except where otherwise
permitted by the provisions of this Indenture.

 

“Purchase Date” means, with respect to any
Note to be repurchased, the date fixed for such repurchase by or pursuant to
this Indenture.

 

“Purchase Money Indebtedness” means
Indebtedness of the Company and its Restricted Subsidiaries incurred in the
normal course of business for the purpose of financing all or any part of the
purchase price, or the cost of installation, construction or improvement, of
property or equipment.

 

“Purchase Price” means the amount payable for
the repurchase of any Note on a Purchase Date, exclusive of accrued and unpaid
interest and Additional Interest (if any) thereon to the Purchase Date, unless
otherwise specifically provided.

 

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

 

“Qualified Capital Stock” means any Capital
Stock that is not Disqualified Capital Stock.

 

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

 

“Redemption Price” means the amount payable
for the redemption of any Note on a Redemption Date, exclusive of accrued and
unpaid interest and Additional Interest (if any) thereon to the Redemption
Date, unless otherwise specifically provided.

 

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

 

“Refinancing
Indebtedness” means any Refinancing by the Company or any Restricted Subsidiary
of the Company of Indebtedness incurred in accordance with Section 4.9
(pursuant to clauses (1) or (4) of the definition of Permitted
Indebtedness), in each case that does not:

 

(1)                                 result in an increase in the aggregate
principal amount of Indebtedness of such Person as of the date of such proposed
Refinancing (plus the amount of all accrued interest and any premium required
to be paid under the terms of the instrument governing such Indebtedness and
plus the amount of reasonable expenses incurred by the Company in connection
with such Refinancing); or

 

(2)                                 create Indebtedness with:  (a) a Weighted Average Life to Maturity
that is less than the Weighted Average Life to Maturity of the Indebtedness
being Refinanced; or (b) a final maturity earlier than the final maturity
of the Indebtedness being Refinanced; provided that (x) if
such Indebtedness being Refinanced is Indebtedness solely of the Company (and
is not otherwise guaranteed by a Restricted Subsidiary of the Company), then
such Refinancing Indebtedness shall be Indebtedness solely 

 

20

 

of the Company and (y) if such Indebtedness being
Refinanced is subordinate or junior to the Notes or any Guarantee, then such
Refinancing Indebtedness shall be subordinate to the Notes or such Guarantee,
as the case may be, at least to the same extent and in the same manner as the
Indebtedness being Refinanced.

 

“Registration Exchange Offer” means the offer
that may be made by the Company pursuant to the Registration Rights Agreement
to exchange Initial Notes for Exchange Notes.

 

“Registration Rights Agreement” means the
registration rights agreement, dated as of September 22, 2009, among the
Company, the Guarantors and holders of the Initial Notes, as amended, modified,
renewed, restated or replaced from time to time in accordance with its terms.

 

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

 

“Regulation S Global Note” means a Global Note substantially in the
form of Exhibit A hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of, and registered in the name
of, the Depositary or its nominee that will be issued in a denomination equal
to the outstanding principal amount of the Notes sold in reliance on Rule 903.

 

“Responsible Officer” means, when used with
respect to the Trustee, any officer of the Trustee assigned by the Trustee to
administer this Indenture and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his knowledge of and familiarity with the particular subject.

 

“Restricted
Definitive Note”
means a Definitive Note bearing the Private Placement Legend.

 

“Restricted
Global Note”
means the 144A Global Note, the AI Global Note and the Regulation S Global
Note, each of which shall bear the Private Placement Legend.

 

“Restricted Note” means a Restricted
Definitive Note or Restricted Global Note.

 

“Restricted Subsidiary” of any Person means
any Subsidiary of such Person which at the time of determination is not an
Unrestricted Subsidiary.

 

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

 

“Rule 144A” means Rule 144A promulgated under
the Securities Act (or any successor provision promulgated by the SEC).

 

“Rule 903” means Rule 903 promulgated under
the Securities Act (or any successor provision promulgated by the SEC).

 

“Rule 904” means Rule 904 promulgated under
the Securities Act (or any successor provision promulgated by the SEC).

 

“Sale and Leaseback Transaction” means any
direct or indirect arrangement with any Person or to which any such Person is a
party, providing for the leasing to the Company or a Restricted Subsidiary of
any property, whether owned by the Company or any Restricted Subsidiary at the
Issue Date or later acquired, which has been or is to be sold or transferred by
the Company or such Restricted Subsidiary to such Person or to 

 

21

 

any other Person from whom
funds have been or are to be advanced by such Person on the security of such
Property.

 

“Secured
Debt” means the Credit Facility Obligations and the Notes Debt.

 

“Secured
Debt Documents” means the Credit Facility Documents and the Notes Documents.

 

“Secured
Debt Representative” means each the Credit Facility Agent and the Trustee.

 

“Secured
Obligations” means the Credit Facility Obligations and the Notes Debt.

 

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

 

“Security
Agreement” means the Second Lien Collateral Agreement, dated as of the
Issue Date, among the Law Debenture Trust Company of New York, the Company and
the Guarantors, as amended, modified, renewed, restated or replaced from time
to time in accordance with its terms.

 

“Security
Documents” means the Security Agreement, the Notes Escrow Agreement, the
Intercreditor Agreement and each other document entered into to grant a
security interest in the Collateral to the Collateral Agent for the benefit of
the Holders of Notes or other grants or transfers for security executed and
delivered by the Company or any other Pledgor creating (or purporting to
create) a Lien that at such time constitutes a Lien securing the Credit
Facility upon collateral in favor of the Credit Facility Agent, in each case,
as amended, modified, renewed, restated or replaced, in whole or in part, from
time to time, in accordance with its terms.

 

“Series of
Secured Debt” means (i) the Credit Facility and (ii) the Notes.

 

“Shared Collateral” means all properties and
assets of the Company or any other Pledgor, whether real, personal or mixed,
with respect to which from time to time a Lien is granted as security for the
Credit Facility Obligations and a Lien is granted as security for the Notes
Obligations.

 

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

 

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

 

“Specified Hedging Agreement” shall mean any
hedging agreement (1) entered into by (a) the Company and (b) any
Credit Facility Lender or any affiliate thereof, or any Person that was a
Credit Facility Lender or an affiliate thereof on the Issue Date but
subsequently, whether before or after entering into a hedging agreement, ceases
to be a Credit Facility Lender and (2) which has been designated by such
counterparty and the Company, by notice to the Credit Facility Agent not later
than 90 days after the execution and delivery thereof by the Company, as a
Specified Hedging Agreement.

 

“Specified
Hedging Obligations” means the obligations of the Company and its
Subsidiaries under any Specified Hedging Agreement.

 

“Stockholders
Agreement” means the stockholders agreement, dated as of September 22,
2009, among certain holders of the Company’s Common Stock and holders of
Existing Notes participating in the Exchange Offer, as amended, modified,
renewed, restated or replaced from time to time in accordance with its terms.

 

22

 

“Subordinated Indebtedness” means
Indebtedness of the Company or any Guarantor that is subordinated or junior in
right of payment to the Notes or the Guarantee of such Guarantor, as the case
may be.

 

“Subsidiary”, with
respect to any Person, means:

 

(1)                                 any corporation
of which the outstanding Capital Stock having at least a majority of the votes
entitled to be cast in the election of directors under ordinary circumstances
shall at the time be owned, directly or indirectly, by such Person; or

 

(2)                                 any other
Person of which at least a majority of the voting interest under ordinary circumstances
is at the time, directly or indirectly, owned by such Person.

 

“Tax Agreement” means either (i) the
letter agreement, dated as of the date hereof, between the Company, on the one
hand, and Camulos Loan Vehicle Fund I LP and Camulos Master Fund LP, on the
other hand, or (ii) the letter agreement, dated as of the date hereof,
between the Company, on the one hand, and Taconic Opportunity Fund LP, Taconic
Opportunity Master Fund LP, Taconic Master Fund 1.5 LP, Taconic Capital
Partners LP, Taconic Capital Partners 1.5 LP and Taconic Master Fund LP, on the
other hand.

 

“TIA” means the Trust Indenture Act of 1939
(15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date on which this Indenture is
qualified under the TIA; provided that
in the event the Trust Indenture Act of 1939 is amended after such date, “TIA”
means, to the extent required by any such amendment, the Trust Indenture Act of
1939 as so amended.

 

“Transfer Restricted Security” means a Note
that is a restricted security as defined in Rule 144(a)(3) under the
Securities Act.

 

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

 

“Unrestricted Subsidiary”
of any Person means:

 

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

 

(2)                                 any Subsidiary
of an Unrestricted Subsidiary.

 

The Board of Directors may designate any Subsidiary
(including any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary owns any Capital Stock of, or owns 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 that:

 

(1)                                 the Company
certifies to the Trustee that such designation complies with Section 4.7;
and

 

(2)                                 each Subsidiary
to be so designated and each of its Subsidiaries has not at the time of
designation, and does not thereafter, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Company or any of its Restricted Subsidiaries.

 

23

 

For purposes of making the determination of whether
any such designation of a Subsidiary as an Unrestricted Subsidiary complies
with Section 4.7, the portion of the fair market value of the net assets
of such Subsidiary of the Company at the time that such Subsidiary is designated
as an Unrestricted Subsidiary that is represented by the interest of the
Company and its Restricted Subsidiaries in such Subsidiary, in each case as
determined in good faith by the Board of Directors of the Company, shall be
deemed to be an Investment.  Such designation
will be permitted only if such Investment would be permitted at such time under
Section 4.7.

 

The Board of Directors may
designate any Unrestricted Subsidiary to be a Restricted Subsidiary only if:

 

(1)                                 immediately
after giving effect to such designation, the Company is able to incur at least
$1.00 of additional Indebtedness (other than Permitted Indebtedness) in
compliance with Section 4.9(a); and

 

(2)                                 immediately
before and immediately after giving effect to such designation, no Default or
Event of 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 Board Resolution giving effect to such designation
and an Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

 

“Unrestricted Definitive Note” means a Definitive Note that does not
bear and is not required to bear the Private Placement Legend.

 

“Unrestricted
Global Note” means a Global Note that does not bear and is not required to
bear the Private Placement Legend.

 

“U.S. Person” means any U.S. Person as
defined in Regulation S.

 

“Weighted Average Life to
Maturity” means, when applied to any Indebtedness at any date, the number
of years obtained by dividing (a) the then outstanding aggregate principal
amount of such Indebtedness into (b) the sum of the total of the products
obtained by multiplying (i) the amount of each then remaining installment,
sinking fund, serial maturity or other required payment of principal, including
payment at final maturity, in respect thereof, by (ii) the number of years
(calculated to the nearest one-twelfth) which will elapse between such date and
the making of such payment.

 

“Wholly Owned Restricted Subsidiary” of any
Person means any Wholly Owned Subsidiary of such Person which at the time of
determination is a Restricted Subsidiary of such Person.

 

“Wholly Owned Subsidiary” of any Person means
any Subsidiary of such Person of which all the outstanding voting securities
(other than in the case of a foreign Subsidiary, directors’ qualifying shares or
an immaterial amount of shares required to be owned by other Persons pursuant
to applicable law) are owned by such Person or any Wholly Owned Subsidiary of
such Person.

 

Section 1.2.                                  Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “Act”

  	
   

  	
  1.5(a)

  
	
  “Adjusted
  Net Assets”

  	
   

  	
  10.5

  
	
  “Affiliate
  Transaction”

  	
   

  	
  4.11

  

 

24

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “Authentication
  Order”

  	
   

  	
  2.2

  
	
  “Change
  of Control Offer”

  	
   

  	
  4.15(a)

  
	
  “Change
  of Control Offer Period”

  	
   

  	
  3.9(b)

  
	
  “Change
  of Control Payment Date”

  	
   

  	
  3.9(c)(B)

  
	
  “Covenant
  Defeasance”

  	
   

  	
  8.3

  
	
  “Event
  of Default”

  	
   

  	
  6.1

  
	
  “Funding
  Guarantor”

  	
   

  	
  10.5

  
	
  “incur”

  	
   

  	
  4.9(a)

  
	
  “Legal
  Defeasance”

  	
   

  	
  8.2

  
	
  “Net
  Proceeds Offer”

  	
   

  	
  4.10

  
	
  “Net
  Proceeds Offer Amount”

  	
   

  	
  4.10

  
	
  “Net
  Proceeds Offer Payment Date”

  	
   

  	
  4.10

  
	
  “Net
  Proceeds Offer Trigger Date”

  	
   

  	
  4.10

  
	
  “Paying
  Agent”

  	
   

  	
  2.3

  
	
  “Private
  Placement Legend”

  	
   

  	
  2.6(f)

  
	
  “Reference
  Date”

  	
   

  	
  4.7

  
	
  “Registrar”

  	
   

  	
  2.3

  
	
  “Replacement
  Assets”

  	
   

  	
  4.10(a)(3)(b)

  
	
  “Restricted
  Payment”

  	
   

  	
  4.7(a)

  
	
  “Special
  Redemption”

  	
   

  	
  3.8

  
	
  “Surviving
  Entity”

  	
   

  	
  5.1

  

 

Section 1.3.                                  Incorporation
by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture.

 

The following TIA terms used in this Indenture have
the following meanings:

 

“indenture securities” means the Notes;

 

“indenture security holder” means a Holder;

 

“indenture to be qualified” means this
Indenture;

 

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

 

“obligor” on the Notes means the Company and
the Guarantors and any successor obligor upon the Notes.

 

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

 

Section 1.4.                                  Rules of
Construction.

 

Unless the context otherwise requires:

 

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

 

25

 

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

 

(c)                                 “or” is not
exclusive;

 

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

 

(e)                                 references to
sections of or rules under the Securities Act, the Exchange Act and the
TIA shall be deemed to include substitute, replacement and successor sections
or rules adopted by the Commission from time to time unless otherwise
specified.

 

Section 1.5.                                  Acts of Holders.

 

(a)                                 Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such Holders in person or by an agent duly appointed in writing; and, except
as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. 
Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the “Act” of Holders
signing or bound by such instrument or instruments.  Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 7.1) conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section.

 

(b)                                The fact and
date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by the certificate of
any notary public or other officer authorized by law to take acknowledgments of
deeds, certifying that the individual signing such instrument or writing
acknowledged to him or her the execution thereof.  Where such execution is by an officer of a
corporation or a member of a partnership, on behalf of such corporation or
partnership, such certificate or affidavit shall also constitute sufficient
proof of his or her authority.

 

(c)                                 The ownership
of Notes shall be proved by the register maintained by the Registrar.

 

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

 

ARTICLE
II.

 

THE
NOTES

 

Section 2.1.                                  Form and
Dating.

 

(a)                                 General.  The Notes and the Trustee’s certificate of
authentication relating thereto shall be substantially in the form of Exhibit A
hereto.  The Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage in
addition to those set forth in Exhibit A hereto.  The notation on each Note relating to the Guarantees
shall be substantially in the form set forth in Exhibit B
hereto.  Each Note shall be dated the
date of its authentication.  The Notes
shall be in denominations of $1,000 and integral multiples thereof.

 

26

 

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

 

(b)                                Global Notes.  Notes issued in global form
will be substantially in the form of Exhibit A hereto (including the
Global Note Legend thereon and the “Schedule of Exchanges of Interests in the
Global Note” attached thereto).  Notes issued in definitive form will be
substantially in the form of Exhibit A hereto (but without the Global Note
Legend thereon and the “Schedule of Exchanges of Interests in the Global Note”
attached thereto).  Each Global Note will represent such of the
outstanding Notes as will be specified therein and each will provide that it
represents the aggregate principal amount of outstanding Notes from time to
time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as appropriate,
to reflect exchanges and redemptions.  Any endorsement of a Global Note to
reflect the amount of any increase or decrease in the aggregate principal
amount of outstanding Notes represented thereby will be made by the Trustee or
the Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.6 hereof.

 

(c)                                 Euroclear and
Clearstream Procedures Applicable.  The provisions of the “Operating Procedures
of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear”
and the “General Terms and Conditions of Clearstream Banking” and “Customer
Handbook” of Clearstream will be applicable to transfers of beneficial
interests in Global Notes that are held by Participants through Euroclear and
Clearstream.

 

Section 2.2.                                  Execution and
Authentication.

 

An Officer of the Company shall sign the Notes for
the Company by manual or facsimile signature and the Notes shall be attested to
by another Officer of the Company.

 

If an Officer whose signature is on a Note no longer
holds that office at the time a Note is authenticated, the Note shall
nevertheless be valid.  Each Guarantor
shall execute a Guarantee in the manner set forth in Section 10.7.

 

A Note shall not be valid until authenticated by the
signature of the Trustee.  The signature
shall be conclusive evidence that the Note has been authenticated under this
Indenture.

 

The Trustee, upon a written order of the Company
signed by two Officers of the Company (an “Authentication Order”),
together with the other documents required by Sections 13.4 and 13.5, shall
authenticate (i) the Notes for original issue on the Issue Date in the
aggregate principal amount not to exceed $80.0 million and (ii) subsequent
to the Issue Date and subject to Section 4.9, Additional Notes.  The Trustee, upon written order of the
Company signed by two Officers of the Company, together with the other
documents required by Sections 13.4 and 13.5, shall authenticate Exchange
Notes; provided that such Exchange Notes shall be issuable only upon the valid
surrender for cancellation of Initial Notes of a like aggregate principal
amount in accordance with the Registration Exchange Offer or an exchange offer
specified in any registration rights agreement relating to Additional Notes or
in connection with one or more registered public offerings of Additional
Notes.  Such written order of the Company
shall specify the amount of Notes to be authenticated and the date on which the
original issue of Notes is to be authenticated. 
Any Additional Notes and Exchange Notes shall be part of the same issue
as the Notes being issued on the Issue Date and will vote on all matters as one
class with the Notes being issued on the Issue Date, including, without
limitation, waivers, amendments, redemptions, Change of Control Offers and Net
Proceeds Offers.

 

The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate Notes.  An authenticating agent may authenticate
Notes whenever the Trustee may do so.  Each
reference in this 

 

27

 

Indenture to authentication
by the Trustee includes authentication by such agent.  An authenticating agent has the same rights
as an Agent to deal with the Company or an Affiliate of the Company.

 

Section 2.3.                                  Registrar and
Paying Agent.

 

The Company shall maintain an office or agency where
Notes may be presented for registration of transfer or for exchange (“Registrar”)
and an office or agency where Notes may be presented for payment (“Paying
Agent”).  The Registrar shall keep a
register of the Notes and of their transfer and exchange.  At the option of the Company, payment of
interest and Additional Interest (if any) may be made by check mailed to the
Holders at their addresses set forth in the register of Holders, provided that payment by wire transfer of immediately
available funds will be required with respect to principal, Redemption Price
and Purchase Price of, and interest and Additional Interest (if any) on, all
Global Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to the Trustee or the Paying Agent at least 5 days prior
to date of payment.  The Company may
appoint one or more co-registrars and one or more additional paying
agents.  The term “Registrar” includes
any co-registrar and the term “Paying Agent” includes any additional paying
agent.  The Company may change any Paying
Agent or Registrar without notice to any Holder.  The Company shall notify the Trustee in
writing of the name and address of any Paying Agent not a party to this
Indenture.  If the Company fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
shall act as such.  The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.  The Depositary shall, by acceptance of a
Global Note, agree that transfers of beneficial interests in such Global Note
may be effected only through a book-entry system maintained by the Depositary
(or its agent), and that ownership of a beneficial interest in the Note shall
be required to be reflected in a book entry.

 

The Depositary shall be a clearing agency registered
under the Exchange Act.  The Company
initially appoints The Depository Trust Company to act as Depositary with
respect to the Global Notes.  The Company
initially appoints the Trustee to act as the Registrar and Paying Agent and to
act as Note Custodian with respect to the Global Notes.

 

The Trustee is hereby authorized to enter into a
letter of representations with the Depositary in the form provided by the
Company and to act in accordance with such letter.

 

Section 2.4.                                  Paying Agents
to Hold Money in Trust.

 

The Company shall require each Paying Agent other
than the Trustee to agree in writing that the Paying Agent will hold in trust for
the benefit of Holders or the Trustee all money held by the Paying Agent for
the payment of principal of, premium (if any), interest and Additional Interest
(if any) on the Notes, and will notify the Trustee of any default by the
Company in making any such payment. 
While any such default continues, the Trustee may require a Paying Agent
to pay all money held by it to the Trustee. 
The Company at any time may require a Paying Agent to pay all money held
by it to the Trustee.  Upon payment over
to the Trustee, the Paying Agent (if other than the Company or a Subsidiary)
shall have no further liability for the money. 
If the Company or a Subsidiary acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of the Holders all money held
by it as Paying Agent.  Upon any
bankruptcy or reorganization proceedings relating to the Company, the Trustee
shall serve as Paying Agent for the Notes.

 

Section 2.5.                                  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 all Holders and shall otherwise comply with TIA
§ 312(a).  If the Trustee is not the
Registrar, the Company shall furnish to the Trustee 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 the Holders of Notes, and the
Company shall otherwise comply with TIA § 312(a).

 

28

 

Section 2.6.                                  Transfer and
Exchange.

 

(a)                           Transfer and
Exchange of Global Notes.  A Global Note may not be transferred except
as a whole by the Depositary to a nominee of the Depositary, by a nominee of
the Depositary to the Depositary or to another nominee of the Depositary, or by
the Depositary or any such nominee to a successor Depositary or a nominee of
such successor Depositary.  All Global Notes will be exchanged by the
Company for Definitive Notes if:

 

(i)                             the Company
delivers to the Trustee notice from the Depositary that it is unwilling or
unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor Depositary
is not appointed by the Company within 120 days after the date of such notice
from the Depositary;

 

(ii)                          the Company in
its sole discretion determines that the Global Notes (in whole but not in part)
should be exchanged for Definitive Notes and delivers a written notice to such
effect to the Trustee; or

 

(iii)                       there has
occurred and is continuing a Default or Event of Default with respect to the
Notes and the Depositary so requests.

 

Upon
the occurrence of either of the preceding events in (i), (ii) or (iii) above,
Definitive Notes shall be issued in such names as the Depositary shall instruct
the Trustee.  Global Notes also may be exchanged or replaced, in whole or
in part, as provided in Sections 2.7 and 2.10 hereof.  Every Note authenticated
and delivered in exchange for, or in lieu of, a Global Note or any portion
thereof, pursuant to this Section 2.6 or Section 2.7 or 2.10 hereof,
shall be authenticated and delivered in the form of, and shall be, a Global
Note.  A Global Note may not be exchanged for another Note other than as
provided in this Section 2.6(a), however, beneficial interests in a Global
Note may be transferred and exchanged as provided in Section 2.6(b), (c) or
(d) hereof.

 

(b)                          Transfer and Exchange of Beneficial Interests in the Global Notes. 
The transfer and exchange of beneficial interests in the Global Notes
will be effected through the Depositary, in accordance with the provisions of
this Indenture and the Applicable Procedures.  Beneficial interests in the
Restricted Global Notes will be subject to restrictions on transfer comparable
to those set forth herein to the extent required by the Securities Act. 
Transfers of beneficial interests in the Global Notes also will require
compliance with either subparagraph (i) or (ii) below, as applicable,
as well as one or more of the other following subparagraphs, as applicable:

 

(i)                             Transfer of
Beneficial Interests in the Same Global Note.  Beneficial interests in any
Restricted Global Note may be transferred to Persons who take delivery thereof
in the form of a beneficial interest in the same Restricted Global Note in
accordance with the transfer restrictions set forth in the Private Placement
Legend; provided, however, that prior to the expiration of
the Distribution Compliance Period, transfers of beneficial interests in the
Regulation S Global Note may not be made to a U.S. Person or for the account or
benefit of a U.S. Person.  Beneficial interests in any Unrestricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note.  No written orders or
instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.6(b)(i).

 

(ii)                          All Other
Transfers and Exchanges of Beneficial Interests in Global Notes.  In connection
with all transfers and exchanges of beneficial interests that are not subject
to Section 2.6(b)(i) above, the transferor of such beneficial
interest must deliver to the Registrar either:

 

(1)                          both:

 

29

 

(A)                             a written order from a Participant or an
Indirect Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to credit or cause to be credited a
beneficial interest in another Global Note in an amount equal to the beneficial
interest to be transferred or exchanged; and

 

(B)                               instructions given in accordance with the
Applicable Procedures containing information regarding the Participant account
to be credited with such increase; or

 

(2)                          both:

 

(A)                             a written order from a Participant or an
Indirect Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to cause to be issued a Definitive Note in
an amount equal to the beneficial interest to be transferred or exchanged; and

 

(B)                               instructions given by the Depositary to
the Registrar containing information regarding the Person in whose name such
Definitive Note shall be registered to effect the transfer or exchange referred
to in (2)(A) above.

 

Upon
satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Indenture and the Notes or
otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to Section 2.6(h) hereof.

 

(iii)                       Transfer of
Beneficial Interests to Another Restricted Global Note.  A beneficial interest
in any Restricted Global Note may be transferred to a Person who takes delivery
thereof in the form of a beneficial interest in another Restricted Global Note
if the transfer complies with the requirements of Section 2.6(b)(ii) above
and the Registrar receives the following:

 

(1)                          if the
transferee shall take delivery in the form of a beneficial interest in the 144A
Global Note, then the transferor must deliver a certificate in the form of Exhibit C
hereto, including the certifications in item (1) thereof;

 

(2)                          if the
transferee shall take delivery in the form of a beneficial interest in the
Regulation S Global Note, then the transferor must deliver a certificate in the
form of Exhibit C hereto, including the certifications in item (2) thereof;
or

 

(3)                          if the
transferee shall take delivery in the form of a beneficial interest in the
AI Global Note, then the transferor must deliver a certificate in the form
of Exhibit C hereto, including the certifications in item (3) thereof;

 

(iv)                      Transfer and
Exchange of Beneficial Interests in a Restricted Global Note for Beneficial
Interests in an Unrestricted Global Note.  A beneficial interest in any
Restricted Global Note may be exchanged by any holder thereof for a beneficial
interest in an Unrestricted Global Note or transferred to a Person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted Global
Note if the exchange or transfer complies with the requirements of Section 2.6(b)(ii) above
and:

 

(1)                          such exchange
or transfer is effected pursuant to the Registration Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the
beneficial interest to be transferred, in the case of an exchange, or the
transferee, in the case of a transfer, makes the certifications contained in Section 2
of the Registration Rights Agreement;

 

30

 

(2)                                 such transfer is effected pursuant to the
Shelf Registration Statement or Demand Registration Statement in accordance
with the Registration Rights Agreement; or

 

(3)                                 the Registrar receives the following:

 

(A)                             if the holder of such beneficial interest
in a Restricted Global Note proposes to exchange such beneficial interest for a
beneficial interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit D hereto, including the certification in
item (1)(a) thereof; or

 

(B)                               if the holder of such beneficial interest
in a Restricted Global Note proposes to transfer such beneficial interest to a
Person who shall take delivery thereof in the form of a beneficial interest in
an Unrestricted Global Note, a certificate from such holder in the form of Exhibit C
hereto, including the certifications in item (4) thereof;

 

and, in each such case set forth in this subparagraph
(iv), if the Registrar so requests or if the Applicable Procedures so require,
an Opinion of Counsel in form reasonably acceptable to the Registrar, if
applicable, to the effect that such exchange or transfer is in compliance with
the Securities Act and that the restrictions on transfer contained herein and
in the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act.

 

If any such transfer is
effected pursuant to subparagraph (ii) or (iv) above at a time when
an Unrestricted Global Note has not yet been issued, the Company shall issue
and, upon receipt of an Authentication Order in accordance with Section 2.2
hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in
an aggregate principal amount equal to the aggregate principal amount of
beneficial interests transferred pursuant to subparagraph (ii) or (iv) above.

 

Beneficial interests in
an Unrestricted Global Note cannot be exchanged for, or transferred to Persons
who take delivery thereof in the form of, a beneficial interest in a Restricted
Global Note.

 

(c)                                 Transfer or
Exchange of Beneficial Interests for Definitive Notes.

 

(i)                                    Beneficial
Interests in Restricted Global Notes to Restricted Definitive Notes.  If any
holder of a beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Restricted Definitive Note or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Restricted Definitive Note, then, upon receipt by the Registrar of
the following documentation:

 

(1)                                 if the holder
of such beneficial interest in a Restricted Global Note proposes to exchange
such beneficial interest for a Restricted Definitive Note, a certificate from
such holder in the form of Exhibit D hereto, including the certifications
in item (2)(a) thereof;

 

(2)                                 if such
beneficial interest is being transferred to a QIB in accordance with Rule 144A,
a certificate to the effect set forth in Exhibit C hereto, including the
certifications in item (1) thereof;

 

(3)                                 if such
beneficial interest is being transferred to a Non-U.S. Person in an offshore
transaction in accordance with Rule 903 or Rule 904, a certificate to
the effect set forth in Exhibit C hereto, including the certifications in
item (2) thereof;

 

31

 

(4)                                 if such
beneficial interest is being transferred pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144, a
certificate to the effect set forth in Exhibit C hereto, including the
certifications in item (3)(a) thereof;

 

(5)                                 if such
beneficial interest is being transferred to an Accredited Investor in reliance
on an exemption from the registration requirements of the Securities Act other
than those listed in clauses (2) through (4) above, a certificate to
the effect set forth in Exhibit C hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if
applicable;

 

(6)                                 if such
beneficial interest is being transferred to the Company or any of its Subsidiaries,
a certificate to the effect set forth in Exhibit C hereto, including the
certifications in item (3)(b) thereof; or

 

(7)                                 if such
beneficial interest is being transferred pursuant to an effective registration
statement under the Securities Act, a certificate to the effect set forth in Exhibit C
hereto, including the certifications in item (3)(c) thereof,

 

the Trustee shall cause the aggregate principal amount
of the applicable Global Note to be reduced accordingly pursuant to Section 2.6(h) hereof,
and the Company shall execute and the Trustee shall authenticate and deliver to
the Person designated in the instructions a Definitive Note in the appropriate
principal amount.  Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.6(c) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall deliver such Definitive Notes to
the Persons in whose names such Notes are so registered.  Any Definitive
Note issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.6(c)(i) shall bear the Private Placement
Legend and shall be subject to all restrictions on transfer contained therein.

 

(ii)                                 Beneficial
Interests in Restricted Global Notes to Unrestricted Definitive
Notes.   A holder of a beneficial interest in a Restricted Global
Note may exchange such beneficial interest for an Unrestricted Definitive Note
or may transfer such beneficial interest to a Person who takes delivery thereof
in the form of an Unrestricted Definitive Note only if:

 

(1)                                 such exchange
or transfer is effected pursuant to the Registration Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the
beneficial interest to be transferred, in the case of an exchange, or the
transferee, in the case of a transfer, makes the certifications contained in Section 2
of the Registration Rights Agreement;

 

(2)                                 such transfer is effected pursuant to the
Shelf Registration Statement or Demand Registration Statement in accordance
with the Registration Rights Agreement; or

 

(3)                                 the Registrar receives the following:

 

(A)                             if the holder of such beneficial interest
in a Restricted Global Note proposes to exchange such beneficial interest for
an Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit D
hereto, including the certifications in item (1)(b) thereof; or

 

(B)                               if the holder of such beneficial interest
in a Restricted Global Note proposes to transfer such beneficial interest to a
Person who shall take delivery 

 

32

 

thereof in the form of an
Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit C
hereto, including the certifications in item (4) thereof;

 

and, in each such
case set forth in this subparagraph (ii), if the Registrar so requests or if
the Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar, if applicable, to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

(iii)                              Beneficial
Interests in Unrestricted Global Notes to Unrestricted Definitive Notes. 
If any holder of a beneficial interest in an Unrestricted Global Note proposes
to exchange such beneficial interest for a Definitive Note or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.6(b)(ii) hereof,
the Trustee will cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.6(h) hereof, and
the Company will execute and the Trustee will authenticate and deliver to the
Person designated in the instructions a Definitive Note in the appropriate
principal amount.  Any Definitive Note issued in exchange for a beneficial
interest pursuant to this Section 2.6(c)(iii) will be registered in
such name or names and in such authorized denomination or denominations as the
holder of such beneficial interest requests through instructions to the
Registrar from or through the Depositary and the Participant or Indirect
Participant.  The Trustee will deliver such Definitive Notes to the
Persons in whose names such Notes are so registered.  Any Definitive Note
issued in exchange for a beneficial interest pursuant to this Section 2.6(c)(iii) will
not bear the Private Placement Legend.

 

(d)                                Transfer and
Exchange of Definitive Notes for Beneficial Interests.

 

(i)                                    Restricted
Definitive Notes to Beneficial Interests in Restricted Global Notes.  If
any Holder of a Restricted Definitive Note proposes to exchange such Note for a
beneficial interest in a Restricted Global Note or to transfer such Restricted
Definitive Notes to a Person who takes delivery thereof in the form of a
beneficial interest in a Restricted Global Note, then, upon receipt by the Registrar
of the following documentation:

 

(1)                                 if the Holder
of such Restricted Definitive Note proposes to exchange such Note for a
beneficial interest in a Restricted Global Note, a certificate from such Holder
in the form of Exhibit D hereto, including the certifications in item (2)(b) thereof;

 

(2)                                 if such
Restricted Definitive Note is being transferred to a QIB in accordance with Rule 144A,
a certificate to the effect set forth in Exhibit C hereto, including the
certifications in item (1) thereof;

 

(3)                                 if such
Restricted Definitive Note is being transferred to a Non-U.S. Person in an offshore
transaction in accordance with Rule 903 or Rule 904, a certificate to
the effect set forth in Exhibit C hereto, including the certifications in
item (2) thereof;

 

(4)                                 if such
Restricted Definitive Note is being transferred pursuant to an exemption from
the registration requirements of the Securities Act in accordance with Rule 144,
a certificate to the effect set forth in Exhibit C hereto, including the
certifications in item (3)(a) thereof;

 

(5)                                 if such
Restricted Definitive Note is being transferred to an Accredited Investor in reliance
on an exemption from the registration requirements of the Securities Act other
than those listed in subparagraphs (2) through (4) above, a
certificate to the effect set forth in Exhibit C hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof,
if applicable;

 

33

 

(6)                                 if such Restricted Definitive Note is
being transferred to the Company or any of its Subsidiaries, a certificate to
the effect set forth in Exhibit C hereto, including the certifications in
item (3)(b) thereof; or

 

(7)                                 if such Restricted Definitive Note is
being transferred pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in Exhibit C hereto,
including the certifications in item (3)(c) thereof,

 

the Trustee will cancel
the Restricted Definitive Note, increase or cause to be increased the aggregate
principal amount of, in the case of clause (1) above, the appropriate
Restricted Global Note, in the case of clause (2) above, the 144A Global
Note, in the case of clause (3) above, the Regulation S Global Note, and
in all other cases, the AI Global Note.

 

(ii)                                 Restricted
Definitive Notes to Beneficial Interests in Unrestricted Global Notes.  A
Holder of a Restricted Definitive Note may exchange such Note for a beneficial
interest in an Unrestricted Global Note or transfer such Restricted Definitive
Note to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note only if:

 

(1)                                 such exchange
or transfer is effected pursuant to the Registration Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the
beneficial interest to be transferred, in the case of an exchange, or the
transferee, in the case of a transfer, makes the certifications contained in Section 2
of the Registration Rights Agreement;

 

(2)                                 such transfer is effected pursuant to the
Shelf Registration Statement or Demand Registration Statement in accordance
with the Registration Rights Agreement; or

 

(3)                                 the Registrar receives the following:

 

(A)                             if the Holder of such Definitive Note
proposes to exchange such Note for a beneficial interest in an Unrestricted
Global Note, a certificate from such holder in the form of Exhibit D
hereto, including the certifications in item (1)(c) thereof; or

 

(B)                               if the Holder of such Definitive Note
proposes to transfer such Note to a Person who shall take delivery thereof in
the form of a beneficial interest in an Unrestricted Global Note, a certificate
from such holder in the form of Exhibit C hereto, including the
certifications in item (4) thereof;

 

and, in each such case
set forth in this subparagraph (ii), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar, if applicable, to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

Upon satisfaction of the
conditions of any of the subparagraphs in this Section 2.6(d)(ii), the
Trustee will cancel the Definitive Notes and increase or cause to be increased
the aggregate principal amount of the Unrestricted Global Note.

 

(iii)                              Unrestricted
Definitive Notes to Beneficial Interests in Unrestricted Global Notes.  A
Holder of an Unrestricted Definitive Note may exchange such Note for a
beneficial interest in an Unrestricted Global Note or transfer such Definitive
Note to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note at any time.  Upon receipt of a
request for such an 

 

34

 

exchange
or transfer, the Trustee will cancel the applicable Unrestricted Definitive
Note and increase or cause to be increased the aggregate principal amount of
one of the Unrestricted Global Notes.

 

If
any such exchange or transfer from a Definitive Note to a beneficial interest
is effected pursuant to subparagraphs (ii) or (iii) of this
subsection (d) at a time when an Unrestricted Global Note has not yet been
issued, the Company will issue and, upon receipt of an Authentication Order in
accordance with Section 2.2 hereof, the Trustee will authenticate one or
more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of Definitive Notes so transferred.

 

(e)                                 Transfer and
Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of
Definitive Notes and such Holder’s compliance with the provisions of this Section 2.6(e),
the Registrar will register the transfer or exchange of Definitive Notes. 
Prior to such registration of transfer or exchange, the requesting Holder must
present or surrender to the Registrar the Definitive Notes duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the
Registrar duly executed by such Holder or by its attorney, duly authorized in
writing.  In addition, the requesting Holder must provide any additional
certifications, documents and information, as applicable, required pursuant to
the following provisions of this Section 2.6(e).

 

(i)                                    Restricted
Definitive Notes to Restricted Definitive Notes.  Any Restricted
Definitive Note may be transferred to and registered in the name of Persons who
take delivery thereof in the form of a Restricted Definitive Note if the Registrar
receives the following:

 

(1)                                 if the transfer will be made pursuant to Rule 144A,
then the transferor must deliver a certificate in the form of Exhibit C
hereto, including the certifications in item (1) thereof;

 

(2)                                 if the transfer will be made pursuant to Rule 903
or Rule 904, then the transferor must deliver a certificate in the form of
Exhibit C hereto, including the certifications in item (2) thereof;
or

 

(3)                                 if the transfer will be made pursuant to
any other exemption from the registration requirements of the Securities Act,
then the transferor must deliver a certificate in the form of Exhibit C
hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable.

 

(ii)                                 Restricted
Definitive Notes to Unrestricted Definitive Notes.  Any Restricted Definitive
Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note
or transferred to a Person or Persons who take delivery thereof in the form of
an Unrestricted Definitive Note if:

 

(1)                                 such exchange
or transfer is effected pursuant to the Registration Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the
beneficial interest to be transferred, in the case of an exchange, or the
transferee, in the case of a transfer, makes the certifications contained in Section 2
of the Registration Rights Agreement;

 

(2)                                 such transfer is effected pursuant to the
Shelf Registration Statement or Demand Registration Statement in accordance
with the Registration Rights Agreement; or

 

(3)                                 the Registrar receives the following:

 

(A)                             if the Holder
of such Restricted Definitive Note proposes to exchange such Note for an
Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit D
hereto, including the certifications in item (1)(d) thereof; or

 

35

 

(B)                               if the Holder
of such Restricted Definitive Note proposes to transfer such Note to a Person
who shall take delivery thereof in the form of an Unrestricted Definitive Note,
a certificate from such Holder in the form of Exhibit C hereto, including
the certifications in item (4) thereof;

 

and, in each such case
set forth in this subparagraph (ii), if the Registrar so requests, an Opinion
of Counsel in form reasonably acceptable to the Registrar to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

 

(iii)                              Unrestricted Definitive
Notes to Unrestricted Definitive Notes.  A Holder of Unrestricted
Definitive Notes may transfer such Notes to a Person who takes delivery thereof
in the form of an Unrestricted Definitive Notes.  Upon receipt of a
request to register such a transfer, the Registrar shall register the
Unrestricted Definitive Notes pursuant to the instructions from the Holder
thereof.

 

Concurrently with the
issuance of such Notes, the Trustee will cause the aggregate principal amount
of the applicable Restricted Global Notes to be reduced accordingly, and the
Company will execute and the Trustee will authenticate and deliver to the
Persons designated by the Holders of Definitive Notes so accepted Unrestricted
Definitive Notes in the appropriate principal amount.

 

(f)                                   Legends.  The following legends will appear on the face
of all Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

 

(i)                                    Private
Placement Legend.

 

(1)                                 Unless and
until the Company determines and there is delivered to the Trustee an Opinion
of Counsel reasonably satisfactory to the Trustee and a letter of
representation of the Company reasonably satisfactory to the Trustee to the
effect that the following legend and related restrictions on transfer are not
required in order to maintain compliance with the provisions of the Securities
Act, and except as permitted by the sub-paragraph (2), each Global Note
and each Definitive Note (and all Notes issued in exchange therefor or
substitution thereof) shall bear the legend in substantially the following form
(the “Private Placement Legend”):

 

“THE SECURITIES EVIDENCED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE OR OTHER SECURITIES LAWS.  THIS SECURITY AND ANY INTEREST OR
PARTICIPATION HEREIN (A) MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (1) (a) TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (b) TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS AN ACCREDITED INVESTOR IN A TRANSACTION EXEMPT
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, (c) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, IF
AVAILABLE, OR (d) OUTSIDE THE UNITED STATES TO A PERSON THAT IS NOT A “U.S.
PERSON” IN AN “OFFSHORE TRANSACTION” (EACH AS DEFINED IN REGULATION S PROMULGATED
UNDER THE SECURITIES ACT) MEETING THE REQUIREMENTS OF REGULATION S UNDER THE
SECURITIES ACT, (2) TO US OR ANY OF OUR SUBSIDIARIES OR (3) UNDER AN
EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN COMPLIANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
APPLICABLE JURISDICTION 

 

36

 

AND (B) THE PURCHASE
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY LATER PURCHASER
FROM IT OF THE RESALE RESTRICTIONS DESCRIBED IN (A) ABOVE.”

 

(2)                                 Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to
subsections (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii) or (e)(iii) of
this Section 2.6 (and all Notes issued in exchange therefore or
substitution thereof) will not bear the Private Placement Legend.

 

(3)                                 Notwithstanding
the foregoing, upon consummation of the Registration Exchange Offer, the
Company shall issue and, upon receipt of an Authentication Order in accordance
with Section 2.2, the Trustee shall authenticate one or more Unrestricted
Global Notes or Unrestricted Definitive Notes in an aggregate principal amount
equal to the principal amount of the Restricted Global Notes or Restrictive
Definitive Notes, respectively, accepted for exchange in the Registration Exchange
Offer, which Exchange Notes shall not bear the legend set forth in (1) above,
and the Registrar shall rescind any restriction on the transfer of such Notes,
in each case unless the Company has notified the Registrar in writing that the
Holder of Notes is either (A) a broker-dealer, (B) a Person
participating in the distribution of the Notes or (C) a Person who is an
affiliate (as defined in Rule 144A) of the Company.

 

(ii)                                 Global Note
Legend.  Each Global Note will bear a
legend in substantially the following form:

 

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

 

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

 

(iii)                              OID Legend.  Each Note issued hereunder shall bear a
legend in substantially the following form:

 

“THIS SECURITY MAY HAVE
BEEN ISSUED WITH “ORIGINAL ISSUE DISCOUNT” FOR U.S. FEDERAL INCOME TAX
PURPOSES.  MXENERGY HOLDINGS INC. WILL
PROMPTLY MAKE AVAILABLE TO THE HOLDER HEREOF INFORMATION REGARDING THE ISSUE
PRICE, ISSUE DATE, YIELD TO MATURITY, AMOUNT OF ORIGINAL ISSUE DISCOUNT, IF ANY,
(AND ANY OTHER INFORMATION

 

37

 

REQUIRED TO BE MADE
AVAILABLE TO THE HOLDER PURSUANT TO U.S. TREASURY REGULATIONS), UPON THE
WRITTEN REQUEST OF SUCH HOLDER DIRECTED TO MXENERGY HOLDINGS INC., 595 SUMMER
STREET, SUITE 300, STAMFORD, CONNECTICUT 06901.”

 

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

 

(h)                                General
Provisions Relating to Transfers and Exchanges.

 

(i)                                    To permit
registrations of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate Global Notes and Definitive Notes upon receipt of an
Authentication Order in accordance with Section 2.2 hereof or at the
Registrar’s request.

 

(ii)                                 No service
charge shall be made to a Holder of a beneficial interest in a Global Note or
to a Holder of a Definitive Note for any registration of transfer or exchange,
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 taxes or similar governmental charge payable upon exchange or
transfer pursuant to Sections 2.10, 3.6, 3.10, 4.10 and 9.5 hereof).

 

(iii)                              The Registrar
shall not be required to register the transfer of or exchange of any Note
selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part.

 

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

 

(v)                                Neither the
Company nor the Registrar shall be required:

 

(1)                                 to issue, to
register the transfer of or to exchange Notes during a period beginning at the
opening of business 15 days before the day of any selection of Notes for
redemption under Section 3.2 hereof and ending at the close of business on
the day of selection; or

 

(2)                                 to register the
transfer of or to exchange any Note selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part; or

 

(3)                                 to register the
transfer of or to exchange a Note between a record date and the next succeeding
interest payment date.

 

38

 

(vi)                             Prior to due
presentment for the registration of a transfer of any Note, the Trustee, any
Agent and the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Notes and for all other purposes,
and none of the Trustee, any Agent or the Company shall be affected by notice
to the contrary.

 

(vii)                          The Trustee
shall authenticate Global Notes and Definitive Notes in accordance with the
provisions of Section 2.2.

 

(viii)                       All certifications,
certificates and Opinions of Counsel required to be submitted to the Registrar
pursuant to this Section 2.6 to effect a registration of transfer or
exchange may be submitted by facsimile.

 

Section 2.7.                                 Replacement
Notes.

 

If any mutilated Note is surrendered to the Trustee
or either the Company or the Trustee receives evidence to its satisfaction of
the destruction, loss or theft of any Note, the Company shall issue and the
Trustee, upon receipt of an Authentication Order in accordance with Section 2.2,
shall authenticate a replacement Note if the Trustee’s requirements for
replacement of Notes are met.  If
required by the Trustee or the Company, an indemnity bond must be supplied by
the Holder that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent and any authenticating agent from
any loss or liability that any of them may suffer if a Note is replaced.  The Trustee and the Company may each charge
the Holder for their expenses in replacing a Note.

 

Every replacement Note is an additional obligation
of the Company and shall be entitled to all of the benefits of this Indenture
equally and proportionately with all other Notes duly issued hereunder.

 

Section 2.8.                                 Outstanding
Notes.

 

The Notes outstanding at any time are all the Notes
that have been authenticated by the Trustee except for those canceled by it,
those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee.  In
accordance with the provisions hereof, and those described in this Section 2.8
as not outstanding.  Except as set forth
in Section 2.9, a Note does not cease to be outstanding because the Company
or an Affiliate of the Company holds the Note.

 

If a Note is replaced pursuant to Section 2.7,
it shall cease to be outstanding unless the Trustee receives proof satisfactory
to it that the replaced Note is held by a bona fide purchaser for value.

 

If the principal amount of any Note is considered
paid under Section 4.1, it ceases to be outstanding and interest on it
ceases to accrue.

 

If the Paying Agent (other than the Company, a
Subsidiary or an Affiliate of any thereof) holds, on a Redemption Date or
maturity date, money sufficient to pay Notes payable on that date, then on and
after that date such Notes shall be deemed to be no longer outstanding and
shall cease to accrue interest.

 

Section 2.9.                                 Treasury Notes.

 

In determining whether the Holders of the required
principal amount of Notes have concurred in any direction, waiver or consent,
Notes owned by the Company, the Guarantors or by any Affiliate thereof shall be
considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes that a Responsible Officer of 

 

39

 

the Trustee knows are so
owned shall be so disregarded.  The
Company agrees to notify the Trustee of the existence of any such treasury
Notes or Notes owned by the Company, any Guarantor or an Affiliate thereof.

 

Section 2.10.                           Temporary Notes.

 

Until certificates representing Notes are ready for
delivery, the Company may prepare and the Trustee, upon receipt of an
Authentication Order in accordance with Section 2.2, shall authenticate
temporary Notes.  Temporary Notes shall
be substantially in the form of certificated Notes, but may have such
variations as the Company considers appropriate for temporary Notes and as
shall be reasonably acceptable to the Trustee. 
Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate definitive Notes in exchange for temporary Notes.

 

Holders of temporary Notes shall be entitled to all
of the benefits of this Indenture.

 

Section 2.11.                           Cancellation.

 

The Company at any time may deliver Notes to the
Trustee for cancellation.  The Registrar
and Paying Agent shall forward to the Trustee any Notes surrendered to them for
registration of transfer, exchange or payment. 
The Trustee, or at the direction of the Trustee, the Registrar or Paying
Agent, and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall destroy all
canceled Notes in accordance with the Trustee’s usual procedures.  Subject to Section 2.7 hereof, the
Trustee shall maintain a record of the destruction of all canceled Notes.  Certification of the destruction of all
canceled Notes shall be delivered to the Company.  The Company may not issue new Notes to
replace Notes that have been paid or that have been delivered to the Trustee
for cancellation.

 

Section 2.12.                           Defaulted
Interest.

 

If the Company defaults in a payment of interest on
the Notes, the Company shall pay the defaulted interest in any lawful manner plus,
to the extent lawful, interest payable on the defaulted interest, to the
Persons who are Holders on a subsequent special record date, in each case at
the rate provided in the Notes and in Section 4.1.  The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note
and the date of the proposed payment. 
The Company shall fix or cause to be fixed each such special record date
and payment date, provided that no such special
record date shall be less than 10 days prior to the related payment date for
such defaulted interest.  At least 15
days before the special record date, the Company (or, upon the written request
of the Company, the Trustee in the name and at the expense of the Company)
shall mail or cause to be mailed to Holders a notice that states the special
record date, the related payment date and the amount of such interest to be
paid.

 

Section 2.13.                           Persons Deemed
Owners.

 

Prior to due presentment of a Note for registration
of transfer and subject to Section 2.12, the Company, the Trustee, any
Paying Agent, any co-registrar and any Registrar may deem and treat the person
in whose name any Note shall be registered upon the register of Notes kept by
the Registrar as the absolute owner of such Note (whether or not such Note
shall be overdue and notwithstanding any notation of the ownership or other
writing thereon made by anyone other than the Company, any co-registrar or any
Registrar) for the purpose of receiving all payments with respect to such Note and
for all other purposes, and none of the Company, the Trustee, any Paying Agent,
any co-registrar or any Registrar shall be affected by any notice to the
contrary.

 

40

 

Section 2.14.                           CUSIP and ISIN
Numbers.

 

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

 

Section 2.15.                           Additional
Interest.

 

The Trustee is not responsible for ascertaining if
there is any payment for Additional Interest in accordance with the
Registration Rights Agreement.  If
Additional Interest is to be paid, the Company will provide the Trustee with an
Officers’ Certificate, on or before the relevant record date for payment of
interest setting forth the amount of Additional Interest and the calculation of
the rate per $1,000.

 

ARTICLE
III.

 

REDEMPTION
AND REPURCHASE

 

Section 3.1.                                 Notices to
Trustee.

 

If the Company elects to redeem Notes pursuant to
the provisions of Section 3.7 or 3.8 hereof, it shall furnish to the
Trustee, at least 30 days but not more than 60 days before the Redemption Date
(unless a shorter notice period shall be satisfactory to the Trustee), an
Officers’ Certificate setting forth the Section of this Indenture pursuant
to which the redemption shall occur, the Redemption Date, the principal amount
of Notes to be redeemed and the Redemption Price.

 

If the Company is required to offer to repurchase
Notes pursuant to the provisions of Section 4.10 or 4.15, it shall notify
the Trustee in writing, at least 30 days but not more than 60 days before the
Purchase Date, of the Section of this Indenture pursuant to which the
repurchase shall occur, the Purchase Date, the principal amount of Notes
required to be repurchased and the Purchase Price and shall furnish to the
Trustee an Officers’ Certificate to the effect that (a) the Company is
required to make or has made a Net Proceeds Offer or a Change of Control Offer,
as the case may be, and (b) the conditions set forth in Section 4.10
or 4.15, as the case may be, have been satisfied.

 

If the Registrar is not the Trustee, the Company
shall, concurrently with each notice of redemption or repurchase, cause the
Registrar to deliver to the Trustee a certificate (upon which the Trustee may rely)
setting forth the principal amounts of Notes held by each Holder.

 

Section 3.2.                                 Selection of
Notes.

 

Except as set forth below, if less than all of the
Notes are to be redeemed, the Trustee shall select the Notes or portions
thereof to be redeemed in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed or, if the
Notes are not then listed on a national securities exchange, on a pro rata basis, by lot  or
by such method as the Trustee shall deem fair and appropriate.  In the event of partial redemption by lot,
the particular Notes or portions thereof to be redeemed shall be selected,
unless otherwise provided herein, not less than 30 nor more than 60 days prior
to the Redemption Date by the Trustee from the outstanding Notes not previously
called for redemption.

 

41

 

If less than all of the Notes tendered are to be
repurchased pursuant to the provisions of Section 4.10, the Trustee shall
select the Notes or portions thereof to be repurchased in compliance with Section 4.10.  In the event of partial repurchase by lot,
the particular Notes or portions thereof to be repurchased shall be selected at
the close of business of the last Business Day prior to the Purchase Date.  If less than all of the Notes tendered are to
be redeemeed pursuant to the provisions of Section 3.7 or 3.8, the Trustee
shall select the Notes only on a pro rata basis or on as nearly a pro rata basis as is practicable (subject
to DTC procedures).

 

The Trustee shall promptly notify the Company in
writing of the Notes or portions thereof selected for redemption or repurchase
and, in the case of any Note selected for partial redemption or repurchase, the
principal amount thereof to be redeemed or repurchased.  Notes and portions thereof selected shall be
in amounts of $1,000 or integral multiples of $1,000; except that if all of the
Notes of a Holder are to be redeemed, the entire outstanding amount of Notes
held by such Holder, even if not a multiple of $1,000, shall be redeemed.  No Notes of a principal amount of $1,000 or
less shall be redeemed in part.

 

Section 3.3.                                 Notice of
Optional or Special Redemption.

 

In the event Notes are to be redeemed pursuant to Section 3.7
or 3.8, at least 30 days but not more than 60 days before the Redemption Date,
the Company shall mail by first-class mail a notice of redemption to each
Holder at its registered address whose Notes are to be redeemed in whole or in
part, with a copy to the Trustee.

 

The notice shall identify
the Notes or portions thereof to be redeemed and shall state:

 

(a)                                  the Redemption
Date;

 

(b)                                 the Redemption
Price;

 

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

 

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

 

(e)                                  that Notes
called for redemption must be surrendered to the Paying Agent to collect the
Redemption Price, Additional Interest, if any, and, unless the Redemption Date
is after a record date and/or before the succeeding interest payment date,
accrued interest thereon to the Redemption Date;

 

(f)                                    that, unless the
Company defaults in making the redemption payment, interest and any Additional
Interest on Notes called for redemption will cease to accrue on and after the
Redemption Date, and the only remaining right of the Holders of such Notes is
to receive payment of the Redemption Price, any Additional Interest and, unless
the Redemption Date is after a record date and/or before the succeeding
interest payment date, accrued interest thereon to the Redemption Date upon
surrender to the Paying Agent of the Notes redeemed;

 

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

 

(h)                                 the section of
the Notes pursuant to which the Notes called for redemption are being redeemed;
and

 

42

 

(i)                                     the aggregate
principal amount of Notes that are being redeemed.

 

At the Company’s request, the Trustee shall give the
notice of redemption in the Company’s name and at its expense; provided that the Company shall deliver to the Trustee, at
least 35 days prior (unless a shorter notice period shall be satisfactory to
the Trustee) to the Redemption Date, an Officers’ Certificate requesting that
the Trustee give such notice and setting forth the information to be stated in
such notice as provided in the preceding paragraph.

 

Section 3.4.                                 Effect of
Notice of Redemption.

 

Once notice of redemption is mailed, Notes or
portions thereof called for redemption become due and payable on the Redemption
Date at the Redemption Price.  Upon
surrender to any Paying Agent, such Notes or portions thereof shall be paid at the
Redemption Price, plus Additional Interest, if any, and accrued interest
to the Redemption Date; provided, however, that installments of interest which are due and
payable on or prior to the Redemption Date shall be payable to the Holders of
such Notes, registered as such, at the close of business on the relevant record
date for the payment of such installment of interest.

 

Section 3.5.                                 Deposit of
Redemption Price or Purchase Price.

 

On or before 10:00 A.M. New York City time on
each Redemption Date or Purchase Date, the Company shall irrevocably deposit
with the Trustee or with the Paying Agent money sufficient to pay the aggregate
amount due on all Notes to be redeemed or repurchased on that date, including
without limitation any accrued and unpaid interest and Additional Interest, if
any, to the Redemption Date or Purchase Date. 
The Company, the Trustee or the Paying Agent shall promptly return to
the Company any money not required for that purpose.

 

Unless the Company defaults in making such payment,
interest and Additional Interest, if any, on the Notes to be redeemed or
repurchased will cease to accrue on the applicable Redemption Date or Purchase
Date, whether or not such Notes are presented for payment.  If any Note called for redemption shall not
be so paid upon surrender because of the failure of the Company to comply with
the preceding paragraph, interest will be paid on the unpaid principal, from
the applicable Redemption Date or Purchase Date until such principal is paid,
and on any interest not paid on such unpaid principal, in each case at the rate
provided in the Notes and in Section 4.1.

 

Section 3.6.                                 Notes Redeemed
or Repurchased in Part.

 

Upon surrender of a Note that is redeemed or
repurchased in part, the Company shall issue and the Trustee shall authenticate
for the Holder at the expense of the Company a new Note equal in principal
amount to portion of the Note surrendered that is not to be redeemed or
repurchased.

 

Section 3.7.                                 Optional
Redemption.

 

Except as described in Section 3.8 below, the
Notes are not redeemable before August 1, 2011.  Thereafter, the Company may redeem the notes
at its option, in whole or in part, upon not less than 30 nor more than
60 days’ notice, at the following redemption prices (expressed as percentages
of the principal amount thereof) if redeemed during the twelve-month period
commencing on August 1 of the year set forth below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  106.625

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2012

  	
   

  	
  103.313

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2013 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

43

 

In addition, the Company
must pay accrued and unpaid interest to the Redemption Date on the Notes
redeemed.

 

Section 3.8.                                 Optional
Redemption Upon Equity Offerings.

 

At any time or from time to time, on or before August 1,
2011, the Company may, at its option, use the net cash proceeds from one or
more Equity Offerings to redeem (a “Special Redemption”) either (1) 100%
of the principal amount of the Notes issued under this Indenture or (2) up
to 35% of the principal amount of the Notes issued under this Indenture at a
Redemption Price of 113.250% of the principal amount thereof, plus accrued and
unpaid interest thereon, if any, to the Redemption Date, provided
that (1) if the Company redeems less than all of the Notes, at least 65%
of the principal amount of the Notes issued hereunder remains outstanding
immediately after any such Special Redemption; and (2) the Company makes
such Special Redemption not more than 90 days after the consummation of any
such Equity Offering.  Any redemption pursuant
to this Section 3.8 shall be made pursuant to the provisions of Sections
3.1 through 3.6.

 

Section 3.9.                                 Repurchase upon
Change of Control Offer.

 

(a)                                  In the event
that, pursuant to Section 4.15, the Company shall be required to commence
a Change of Control Offer, it shall follow the procedures specified in this Section 3.9.

 

(b)                                 The Change of
Control Offer shall remain open for a period from the date of the mailing of
the notice of the Change of Control Offer described in paragraph (c) until
a date determined by the Company which is at least 30 but no more than 60 days
from the date of mailing of such notice and no longer, except to the extent
that a longer period is required by applicable law (the “Change of Control
Offer Period”).  On the Purchase
Date, the Company shall purchase the principal amount of Notes properly
tendered in response to the Change of Control Offer.  Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

 

(c)                                  Within 45 days
following the date upon which the Change of Control occurred, the Company shall
send, by first class mail, a notice to each Holder, with a copy to the Trustee,
which notice shall govern the terms of the Change of Control Offer.  The notice shall contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the
Change of Control Offer.  The Change of
Control Offer shall be made to all Holders. 
The notice, which shall govern the terms of the Change of Control Offer,
shall state:

 

(A)                              the transaction
or transactions that constitute the Change of Control, providing information,
to the extent publicly available, regarding the Person or Persons acquiring
control, and stating that the Change of Control Offer is being made pursuant to
this Section 3.9 and Section 4.15 and that, to the extent lawful, all
Notes properly tendered will be accepted for payment;

 

(B)                                the Purchase
Price, the last day of the Change of Control Offer Period, and the Purchase
Date which must be no earlier than 30 days nor later than 60 days from the date
such notice is mailed, other than as may be required by law (the “Change of
Control Payment Date”);

 

(C)                                that any Note
not properly tendered or otherwise not accepted for repurchase will continue to
accrue interest and Additional Interest, if any;

 

44

 

(D)                               that, unless
the Company defaults in the payment of the amount due on the Purchase Date, all
Notes or portions thereof accepted for repurchase pursuant to the Change of
Control Offer shall cease to accrue interest and Additional Interest, if any,
after the Change of Control Payment Date;

 

(E)                                 that Holders
electing to have any Notes purchased pursuant to the Change of Control Offer
will be required to surrender the Notes, with the form entitled Option of
Holder to Elect Purchase on the reverse of the Notes completed, or transfer by
book-entry transfer, to the Company, a Depositary, if appointed by the Company,
or a Paying Agent to the address specified in the notice not later than the
third Business Day preceding the Change of Control Payment Date;

 

(F)                                 that Holders
will be entitled to withdraw their election if the Company, the Depositary or
the Paying Agent, as the case may be, receives, not later than the expiration of
the Change of Control Offer Period, a telegram, facsimile transmission or
letter setting forth the name of the Holder, the principal amount of Notes
delivered for repurchase, and a statement that such Holder is withdrawing his
election to have the Notes redeemed in whole or in part; and

 

(G)                                that Holders
whose Notes are being repurchased only in part will be issued new Notes equal
in principal amount to the portion of the Notes tendered (or transferred by
book-entry transfer) that is not to be repurchased, which portion must be equal
to $1,000 in principal amount or an integral multiple thereof.

 

(d)                                 On or before
10:00 A.M. New York City time on the Purchase Date, the Company shall to
the extent lawful, (i) accept for payment all Notes or portions thereof
properly tendered pursuant to the Change of Control Offer, (ii) deposit
with the Paying Agent an amount equal to the Purchase Price, together with
accrued and unpaid interest and Additional Interest, if any, thereon to the
Purchase Date in respect of all Notes or portions thereof so tendered and
accepted for repurchase and (iii) deliver or cause to be delivered to the
Trustee the Notes so accepted together with an Officers’ Certificate stating
the aggregate principal amount of Notes or portions thereof being repurchased
by the Company.  The Paying Agent shall
promptly (but in any case not later than five days after the Purchase Date)
mail to each Holder of Notes so repurchased the amount due in connection with
such Notes, and the Company shall promptly issue a new Note, and the Trustee,
upon written request from the Company in the form of an Officers’ Certificate
shall authenticate and mail or deliver (or cause to transfer by book entry) to
each relevant Holder a new Note, in a principal amount equal to any unpurchased
portion of the Notes surrendered to the Holder thereof; provided
that each such new Note shall be in a principal amount of $l,000 or an integral
multiple thereof.  The Company shall
publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Purchase Date.

 

(e)                                  If the Purchase
Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Additional Interest,
if any, in each case to the Purchase Date, shall be paid to the Person in whose
name a Note is registered at the close of business on such record date, and no
additional interest shall be payable to Holders pursuant to the Change of
Control Offer.

 

Section 3.10.                           Repurchase upon
Application of Net Proceeds.

 

(a)                                  In the event
that, pursuant to Section 4.10, the Company shall be required to commence
a Net Proceeds Offer, it shall follow the procedures specified in this Section 3.10.

 

(b)                                 The notice of a
Net Proceeds Offer shall contain all instructions and materials necessary to enable
such Holders to tender Notes pursuant to the Net Proceeds Offer.  Each Net Proceeds Offer will be mailed to all
record Holders as shown on the register of Holders within 30 days following the
Net Proceeds Offer Trigger Date, with a copy to the Trustee, and shall comply
with the procedures set forth in this Indenture.  Upon receiving notice of the Net Proceeds
Offer, Holders may elect to tender their Notes in whole or in part in 

 

45

 

integral
multiples of $1,000 in exchange for cash. 
A Net Proceeds Offer shall remain open for a period of 20 Business Days
or such longer period as may be required by law.  Upon the expiration of that period, the Company
shall promptly (but in any event within three Business Days following such
expiration) purchase the Notes and any such other Pari Passu Indebtedness
properly tendered in accordance with this Section 3.10 and Section 4.10.  The notice, which shall govern the terms of the
Net Proceeds Offer, shall state:

 

(A)                              that the Net
Proceeds Offer is being made pursuant to this Section 3.10 and Section 4.10;

 

(B)                                the Net
Proceeds Offer Amount, the Purchase Price and the Purchase Date;

 

(C)                                that any Note
not properly tendered or otherwise not accepted for repurchase shall continue
to accrue interest and Additional Interest, if any;

 

(D)                               that, unless
the Company defaults in the payment of the amount due on the Purchase Date, all
Notes or portions thereof accepted for repurchase pursuant to the Net Proceeds
Offer shall cease to accrue interest and Additional Interest, if any, after the
Purchase Date;

 

(E)                                 that Holders
electing to have any Notes repurchased pursuant to any Net Proceeds Offer shall
be required to tender the Notes, with the form entitled Option of Holder to
Elect Purchase on the reverse of the Notes completed, or transfer by book-entry
transfer, to the Company, a Depositary, if appointed by the Company, or a Paying
Agent at the address specified in the notice prior to the close of business on
the third Business Day preceding the Purchase Date;

 

(F)                                 that Holders
will be entitled to withdraw their election if the Company, the Depositary or
the Paying Agent, as the case may be, receives, not later than the Purchase
Date, a telegram, facsimile transmission or letter setting forth the name of
the Holder, the principal amount of the Notes delivered for repurchase and a
statement that such Holder is withdrawing his election to have such Notes repurchased
in whole or in part; and

 

(G)                                that, to the
extent Holders properly tender Notes (along with any other Pari Passu
Indebtedness of the Company properly tendered) in an amount exceeding the Net
Proceeds Offer Amount, the tendered Notes will be purchased pro rata based on the aggregate amounts of
Notes and other Pari Passu Indebtedness of the Company properly tendered (and
the Trustee shall select the tendered Notes of tendering Holders pro rata based on the amount of Notes and
other Pari Passu Indebtedness of the Company properly tendered).

 

(c)                                  On or before
10:00 A.M. New York City time on the Purchase Date, the Company shall to
the extent lawful, (i) accept for payment, pro rata in accordance with this Indenture to the extent
necessary, the Net Proceeds Offer Amount of Notes or portions thereof properly
tendered pursuant to the Net Proceeds Offer (along with any other Pari Passu
Indebtedness of the Company properly tendered), or if less than the Net
Proceeds Offer Amount has been tendered, all Notes (together with other Pari
Passu Indebtedness properly tendered) properly tendered, (ii) deposit with
the Paying Agent an amount equal to the Purchase Price, plus accrued and
unpaid interest and Additional Interest, if any, thereon to the Purchase Date
in respect of all Notes or portions thereof so tendered and accepted for
repurchase and (iii) deliver or cause to be delivered to the Trustee the
Notes so accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions thereof being repurchased by the Company.  The Paying Agent shall promptly (but in any
case not later than five days after the Purchase Date) mail to each Holder of
Notes so repurchased the amount due in connection with such Notes, and the
Company shall promptly issue a new Note, and the Trustee, upon written request
from the Company in the form of an Officers’ Certificate shall authenticate and
mail or deliver such new Note to such Holder, in a principal amount equal to
any unpurchased portion to the Holder thereof; provided
that each such new Note shall be in a principal amount of $1,000 or an integral
multiple thereof.  The 

 

46

 

Company shall publicly
announce the results of the Net Proceeds Offer on or as soon as practicable
after the Purchase Date.

 

(d)                                 If the Purchase
Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Additional Interest,
if any, in each case to the Purchase Date, shall be paid to the Person in whose
name a Note is registered at the close of business on such record date, and no
additional interest shall be payable to Holders to the Net Proceeds Offer.

 

ARTICLE
IV.

 

COVENANTS

 

Section 4.1.                                 Payment of
Principal and Interest.

 

(a)                                  The Company shall
pay or cause to be paid the principal, Redemption Price and Purchase Price of,
and interest and Additional Interest (if any) on, the Notes on the dates, in
the amounts and in the manner provided herein and in the Notes.  Principal, Redemption Price, Purchase Price
and interest shall be considered paid on the date due if the Paying Agent, if
other than the Company, holds as of 10:00 A.M. New York City time on the
due date money deposited by the Company in immediately available funds and designated
for and sufficient to pay the aggregate amount then due.  The Company shall pay all Additional
Interest, if any, on the dates, in the amounts and in the manner set forth in
the Registration Rights Agreement.

 

(b)                                 The Company
shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue principal, Redemption Price and Purchase Price
at the rate equal to 2% per annum in excess of the then applicable interest
rate on the Notes to the extent lawful; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Additional Interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

 

Section 4.2.                                 Maintenance of
Office or Agency.

 

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

 

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

 

(c)                                  The Company
hereby designates the Corporate Trust Office of the Trustee as one such office
or agency of the Company in accordance with Section 2.3.  The Trustee may resign such agency at any
time by giving written notice to the Company no later than 30 days prior to the
effective date of such resignation.

 

47

 

Section 4.3.                                 Reports.

 

(a)                           Whether or not
required by the rules and regulations of the Commission, so long as any
Notes are outstanding, the Company will furnish the Trustee and the Holders of
Notes within the time periods such information would be required under the rules and
regulations of the Commission to be filed with the Commission:

 

(1)                                  all quarterly
and annual financial information that would be required to be contained in a
filing with the Commission on Forms 10-Q and 10-K if the Company were required
to file such Forms, including a “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” that describes the financial
condition and results of operations of the Company and its consolidated
Subsidiaries and, with respect to the annual information only, a report thereon
by the Company’s certified independent accountants; and

 

(2)                                  all current
reports that would be required to be filed with the Commission on Form 8-K
if the Company were required to file such reports, in each case within the time
periods specified in the Commission’s rules and regulations.

 

(b)                          In addition
whether or not required by the rules and regulations of the Commission,
the Company will file electronically via the Electronic Data Gathering,
Analysis and Retrieval (EDGAR) system or any successor system maintained by the
Commission a copy of all such information and reports with the Commission for
public availability within the time periods specified in the Commission’s rules and
regulations (unless the Commission will not accept such a filing) and make such
information available to securities analysts and prospective investors upon
request.  In addition, the Company has
agreed that, for so long as any Notes remain outstanding, it will furnish to
the Holders and to securities analysts and prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.

 

Section 4.4.                                 Compliance
Certificate.

 

(a)                           The Company and
each Guarantor shall deliver to the Trustee, within 120 days after the end of
each fiscal year, an Officers’ Certificate complying with the applicable
provisions of the TIA and stating that a review of the activities of the
Company and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining
whether the Company has kept, observed, performed and fulfilled its obligations
under this Indenture in all material respects and further stating, as to each
such Officer signing such certificate, that to the best of his or her
knowledge, the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture in all material respects and is not
in Default in the performance or observance of any of the terms, provisions and
conditions of this Indenture (and, if a Default or Event of Default shall have
occurred, describing all such Defaults or Events of Default) of which he or she
may have knowledge, and that to the best of his or her knowledge, no event has
occurred and remains in existence by reason of which payments on account of the
principal of or interest, if any, on the Notes are prohibited or if such event
has occurred, a description of the event.

 

(b)                          The Company
shall, so long as any of the Notes are outstanding, deliver to the Trustee,
promptly upon any Officer of the Company becoming aware of any Default or Event
of Default, an Officers’ Certificate specifying such Default or Event of
Default and describing its status with reasonable particularity and what action
the Company is taking or proposes to take with respect thereto.

 

Section 4.5.                                 Taxes.

 

The Company shall pay or discharge, and shall cause
each of its Subsidiaries to pay or discharge, prior to delinquency, all
material taxes, assessments and governmental levies except such as are

 

48

 

contested in good faith and
by appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of the Notes.

 

Section 4.6.                                 Stay, Extension
and Usury Laws.

 

The Company covenants (to the extent that it may
lawfully do so) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension
or usury law wherever enacted, now or at any time hereafter in force, that 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 covenants that it shall not, by resort to any
such law, 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 such law has not been enacted.

 

Section 4.7.                                 Limitation on
Restricted Payments.

 

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

 

(1)                                  declare or pay
any dividend or make any distribution (other than dividends or distributions
payable in Qualified Capital Stock of the Company) on or in respect of shares
of the Company’s Capital Stock to the holders thereof;

 

(2)                                  purchase, redeem or otherwise acquire or
retire for value any Capital Stock of the Company;

 

(3)                                  make any
principal payment on, purchase, defease, redeem, prepay, decrease or otherwise
acquire or retire for value, prior to any scheduled final maturity, scheduled
repayment or scheduled sinking fund payment, any Subordinated Indebtedness; or

 

(4)                                  make any Investment (other than Permitted
Investments) (each of the foregoing actions set forth in clauses
(1), (2), (3) and (4) above being referred to as a “Restricted
Payment”);

 

if at the time of such
Restricted Payment or immediately after giving effect thereto,

 

(i)                                    a Default or an
Event of Default shall have occurred and be continuing; or

 

(ii)                                 the Company is
not able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) in compliance with Section 4.9; or

 

(iii)                              the aggregate amount of Restricted
Payments (including such proposed Restricted Payment) made subsequent to the
Issue Date (the amount expended for such purposes, if other than in cash, being
the fair market value of such property as determined in good faith by the Board
of Directors of the Company) shall exceed the sum of

 

(w)                               50% of the cumulative Consolidated Net
Income (or if cumulative Consolidated Net Income shall be a loss, minus 100% of
such loss) of the Company earned subsequent to the July 1, 2009 and ending
on the last day of the most recent quarter for which financial statements have
been delivered pursuant Section 4.3 (treating such period as a single
accounting period); plus

 

49

 

(x)                                   100% of the aggregate net cash proceeds
received by the Company from any Person (other than a Subsidiary of the
Company) from the issuance and sale subsequent to the Issue Date and on or
prior to the date the Restricted Payment occurs (the “Reference Date”)
of Qualified Capital Stock of the Company or warrants, options or other rights
to acquire Qualified Capital Stock of the Company (but excluding any debt
security that is convertible into, or exchangeable for, Qualified Capital
Stock, until such debt security has been converted into, or exchanged for,
Qualified Capital Stock); plus

 

(y)                                 without duplication of any amounts
included in clause (ii) above, 100% of the aggregate net cash
proceeds of any equity contribution received by the Company from a holder of
the Company’s Capital Stock subsequent to the Issue Date and on or prior to the
Reference Date (excluding, in the case of clauses (ii)and (iii), any net
cash proceeds from an Equity Offering to the extent used to redeem the Notes in
compliance with the provisions set forth under Section 3.8);

 

(z)                                   without duplication, the sum of:

 

(1)                                  the aggregate amount returned in cash on
or with respect to Investments (other than Permitted Investments) made
subsequent to the Issue Date whether through interest payments, principal
payments, dividends or other distributions or payments;

 

(2)                                  the net cash proceeds received by the
Company or any of its Restricted Subsidiaries from the disposition of all or
any portion of such Investments (other than to a Subsidiary of the Company);
and

 

(3)                                  upon redesignation of an Unrestricted
Subsidiary as a Restricted Subsidiary, the fair market value of such Subsidiary
as of the date of such redesignation;

 

provided, that such sum of clauses (1), (2) and
(3) above shall not exceed the aggregate amount of all such Investments
made subsequent to the Issue Date.

 

(b)                           Notwithstanding the foregoing, the
Company and its Restricted Subsidiaries are permitted to:

 

(1)                              pay any dividend within 60 days after the
date of declaration of such dividend if the dividend would have been permitted
on the date of declaration;

 

(2)                                  acquire any shares of Capital Stock of the Company,
either (i) solely in exchange for shares of Qualified Capital Stock of the
Company or (ii) through the application of net proceeds of a substantially
concurrent sale for cash (other than to a Subsidiary of the Company) of shares
of Qualified Capital Stock of the Company;

 

(3)                                  prepay Subordinated Indebtedness either (i) solely
in exchange for shares of Qualified Capital Stock of the Company, or (ii) through
the application of net proceeds of a substantially concurrent sale for cash
(other than to a Subsidiary of the Company) of (a) shares of Qualified
Capital Stock of the Company or (b) Refinancing Indebtedness incurred to
Refinance such Subordinated Indebtedness;

 

(4)                                  so long as no Default or Event of Default
shall have occurred and be continuing, the Company may repurchase Common Stock
of the Company from officers, directors and employees of 

 

50

 

the Company or any of its Subsidiaries or their
authorized representatives upon the death, disability or termination of
employment of such employees or termination of their seat on the board of the
Company in an aggregate amount not to exceed $1.75 million in any calendar
year;

 

(5)                                  repurchase Capital Stock upon the
exercise of stock options or warrants if such Capital Stock represents a
portion of the exercise price and related statutory withholding taxes of such options
or warrants;

 

(6)                                  pay dividends on Disqualified Capital
Stock of any Restricted Subsidiary, the incurrence or issuance of which was
permitted by this Indenture;

 

(7)                                  make cash payments in lieu of the
issuance of fractional shares in connection with the Exchange Offer or the
exercise of warrants, options or other securities convertible into or
exchangeable for Capital Stock of the Company;

 

(8)                                  retire any shares of Disqualified Capital
Stock of the Company by conversion into, or by exchange for, shares of
Disqualified Capital Stock of the Company or out of the net cash proceeds of
the substantially concurrent sale (other than to a Subsidiary of the Company)
or other shares of Disqualified Capital Stock of the Company; and

 

(9)                                  make other Restricted Payments in an
aggregate amount not to exceed $10.0 million after the Issue Date.

 

In
determining the aggregate amount of Restricted Payments made subsequent to the
Issue Date in accordance with clause (iii) of the immediately
preceding paragraph, amounts expended pursuant to clauses (1), (2)(ii),
(3)(ii)(a), (4) and (9) shall be included in such calculation.

 

Section 4.8.                                   Limitation on
Dividend and Other Payment Restrictions Affecting Restricted  Subsidiaries.

 

The Company will not, and will not cause or permit
any of its Restricted Subsidiaries to, directly or indirectly, create or
otherwise cause or allow to exist or become effective any encumbrance or restriction
on the ability of any Restricted Subsidiary to:

 

(1)                                  pay dividends
or make any other distributions on or in respect of its Capital Stock;

 

(2)                                  make loans or
advances to the Company or any other Restricted Subsidiary or to pay any
Indebtedness or other obligation owed to the Company or any other Restricted
Subsidiary; or

 

(3)                                  transfer any of
its property or assets to the Company or any other Restricted Subsidiary of the
Company, except in each case for such encumbrances or restrictions existing
under or by reason of:

 

(a)                                  applicable law,
rule, regulation or order;

 

(b)                                 this Indenture, the Notes, the
Guarantees, and the Security Documents;

 

(c)                                  customary non-assignment provisions of
any contract or any lease governing a leasehold interest of any Restricted
Subsidiary of the Company;

 

51

 

(d)                                 any instrument governing Acquired Indebtedness,
which encumbrance or restriction is not applicable to any Person, or the
properties or assets of any Person, other than the Person or the properties or
assets of the Person so acquired;

 

(e)                                  agreements existing on the Issue Date to
the extent and in the manner such agreements are in effect on the Issue Date;

 

(f)                                    the Credit Facility;

 

(g)                                 restrictions on the transfer of assets
subject to any Lien permitted under Section 4.12 imposed by the holder of
such Lien;

 

(h)                                 restrictions imposed by any agreement to
sell assets or Capital Stock permitted under this Indenture to any Person
pending the closing of such sale;

 

(i)                                     customary provisions in joint venture
agreements and other similar agreements (in each case relating solely to the
respective joint venture or similar entity or the equity interests therein)
entered into in the ordinary course of business;

 

(j)                                     other Indebtedness of Restricted
Subsidiaries permitted to be incurred pursuant to an agreement entered into
subsequent to the Issue Date in accordance with Section 4.9; provided, however, that
the Board of Directors of the Company determines in good faith at the time such
dividend and other payment restrictions are created that such dividend and
other payment restrictions do not materially adversely affect the Company’s
ability to pay principal of, and interest on, the Notes; and

 

(k)                                  an agreement governing Indebtedness
incurred to Refinance the Indebtedness issued, assumed or incurred pursuant to
an agreement referred to in clauses (b), (d), (e) and (j) above;
provided, however,
that the provisions relating to such encumbrance or restriction contained in
any such Indebtedness, taken as a whole, are no less favorable to the Company
in any material respect as determined by the Board of Directors of the Company
in their reasonable and good faith judgment than the provisions relating to
such encumbrance or restriction contained in agreements referred to in such
clauses (b), (d), (e) and (j).

 

Section 4.9.                                   Limitation on
Incurrence of Additional Indebtedness.

 

The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur, assume, guarantee, acquire, become liable, contingently or
otherwise, with respect to, or otherwise become responsible for payment of
(collectively, “incur”) any Indebtedness (other than Permitted Indebtedness).
Notwithstanding the foregoing, if no Default or Event of Default shall have
occurred and be continuing at the time of or as a consequence of the incurrence
of any such Indebtedness, the Company and its Restricted Subsidiaries may incur
Indebtedness (including, without limitation, Acquired Indebtedness) so long as
such incurrence would not cause the Company’s Consolidated Fixed Charge
Coverage Ratio to be less than 2.25 to 1.0 on the date of such incurrence.

 

The Company will not, and
will not permit any Guarantor to, directly or indirectly, incur any Indebtedness
which by its terms (or by the terms of any agreement governing such
Indebtedness) is expressly subordinated in right of payment to any other
Indebtedness of the Company or such Guarantor, as the case may be, unless such
Indebtedness is also by its terms (or by the terms of any agreement governing
such Indebtedness) made expressly subordinate to the Notes or the applicable
Guarantee, as the case may be, to the same extent and

 

52

 

in the same manner as such
Indebtedness is subordinated to other Indebtedness of the Company or such Guarantor.

 

Section 4.10.                             Limitation on
Asset Sales.

 

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

 

(1)                                  the Company or
the applicable Restricted Subsidiary receives consideration at the time of such
Asset Sale at least equal to the fair market value of the assets sold or
otherwise disposed of (as determined in good faith by the Company’s Board of
Directors);

 

(2)                                  at least 75% of
the consideration received by the Company or the Restricted Subsidiary, as the
case may be, from such Asset Sale shall be in the form of cash, Cash
Equivalents and/or Replacement Assets (as defined below) and is received at the
time of such disposition; provided that

 

(i)                                     the amount of
any liabilities of the Company or any such Restricted Subsidiary (other than
liabilities that are by their terms subordinated in right of payment to the
Notes or any Guarantee of a Guarantor) that are assumed by the transferee of
any such assets; and

 

(ii)                                  the fair market
value of any securities or other assets received by the Company or any such
Restricted Subsidiary in exchange for any such assets that are converted into
cash or Cash Equivalents within 180 days after such Asset Sale;

 

in each case, shall be
deemed to be cash for purposes of this provision; and

 

(3)                                  upon the
consummation of an Asset Sale, the Company shall apply, or cause such Restricted
Subsidiary to apply the Net Cash Proceeds relating to such Asset Sale within
180 days (provided that if the Company or such Restricted Subsidiary, as the
case may be, has entered into an agreement in definitive form to so apply such
Net Cash Proceeds before such 180th day, the transaction must be consummated
within the later of such 180 day period and 90 days form the date of the
execution of such agreement (to the extent such additional time is required to
obtain regulatory approvals)) of receipt thereof either:

 

(i)                                     to permanently reduce Indebtedness under
the Credit Facility; and, in the case of any such Indebtedness under any
revolving credit facility, effect a permanent reduction in the availability
under such revolving credit facility;

 

(ii)                                  to make an investment in properties and
assets that replace the subject of such Asset Sale or in properties and assets
that will be used in the business of the Company and its Restricted
Subsidiaries as existing on the Issue Date or in businesses reasonably related
thereto (“Replacement Assets”); and/or

 

(iii)                               a combination of prepayment and
investment permitted by the foregoing clauses (3)(i) and (3)(ii).

 

(b)                          Pending the
final application of such Net Cash Proceeds, the Company may temporarily reduce
borrowings under the Credit Facility or any other revolving credit facility.  On the 181st day after an Asset Sale or such
earlier date, if any, as the Board of Directors of the Company or of such
Restricted Subsidiary determines not to apply the Net Cash Proceeds relating to
a qualifying Asset Sale as provided in Clause (3) above or, in the event
that a definitive agreement has been entered into prior to the 181st day pursuant
to which 

 

53

 

the
Net Cash Proceeds are to be applied, on the later of the 181st day and, to the
extent such additional time is required to obtain regulatory approval, the 91st
day after the execution of such agreement (each, a “Net Proceeds Offer
Trigger Date”), such aggregate amount of Net Cash Proceeds which have not
been so applied on or before such Net Proceeds Offer Trigger Date (“Net
Proceeds Offer Amount”) shall be applied by the Company or such Restricted
Subsidiary to make an offer to purchase (the “Net Proceeds Offer”) to
all Holders of Notes and, to the extent required by the terms of any Pari Passu
Indebtedness, to all holders of such Pari Passu Indebtedness, on a date (the “Net
Proceeds Offer Payment Date”) not less than 30 nor more than 60 days
following the applicable Net Proceeds Offer Trigger Date, from all Holders (and
holders of any such Pari Passu Indebtedness) on a pro
rata basis, that amount of Notes (and
Pari Passu Indebtedness) equal to the Net Proceeds Offer Amount at a price
equal to 100% of the principal amount of the Notes (and Pari Passu
Indebtedness) to be purchased, plus accrued and unpaid interest thereon, if
any, to the date of purchase; provided, however, that if at any time any non-cash consideration
received by the Company or any Restricted Subsidiary of the Company, as the
case may be, in connection with any Asset Sale is converted into or sold or
otherwise disposed of for cash (other than interest received with respect to
any such non-cash consideration), then such conversion or disposition shall be
deemed to constitute an Asset Sale hereunder and the Net Cash Proceeds thereof
shall be applied in accordance with this Section 4.10.

 

(c)                            The Company may defer the Net Proceeds
Offer until there is an aggregate unutilized Net Proceeds Offer Amount equal to
or in excess of $7.5 million resulting from one or more Asset Sales (at
which time, the entire unutilized Net Proceeds Offer Amount, and not just the
amount in excess of $7.5 million, shall be applied as required pursuant to
this Section 4.10).

 

(d)                           In the event of
the transfer of substantially all of the property and assets of the Company and
its Restricted Subsidiaries as an entirety in a transaction permitted under Section 5.1,
which transaction does not constitute a Change of Control, the successor
corporation shall be deemed to have sold the properties and assets of the
Company and its Restricted Subsidiaries not so transferred for purposes of this
Section 4.10, and shall comply with the provisions of this covenant with
respect to such deemed sale as if it were an Asset Sale.  In addition, the fair market value of such
properties and assets of the Company or its Restricted Subsidiaries deemed to
be sold shall be deemed to be Net Cash Proceeds for purposes of this Section 4.10.

 

(e)                            Each Net
Proceeds Offer will be mailed to the record Holders in compliance with the
procedures set forth in this Indenture. Upon receiving notice of the Net
Proceeds Offer, Holders may elect to tender their Notes in whole or in part in
integral multiples of $1,000 in exchange for cash. To the extent the Net
Proceeds Offer is oversubscribed, the tendered Notes and Pari Passu
Indebtedness will be purchased on a pro rata
basis based on the aggregate amounts tendered. A Net Proceeds Offer shall
remain open for a period of 20 Business Days or such longer period as may be
required by law. If any Net Cash Proceeds remain after the consummation of any
Net Proceeds Offer, the Company may use those Net Cash Proceeds for any purpose
not otherwise prohibited by this Indenture. 
Upon completion of each Net Proceeds Offer, the amount of Net Cash Proceeds
will be reset at zero.

 

(f)                              The Company
must comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws
and regulations are applicable in connection with the repurchase of Notes
pursuant to a Net Proceeds Offer. To the extent that the provisions of any
securities laws or regulations conflict with this Section 4.10 or Section 3.10,
the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached its obligations under this Section 4.10
or Section 3.10 by virtue thereof.

 

Section 4.11.                             Limitations on
Transactions with Affiliates.

 

(a)                                  The Company
will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, enter into or permit to exist any transaction or series of
related transactions with, or for the benefit of, any of its Affiliates (each
an “Affiliate Transaction”),
other than (x) Affiliate Transactions permitted

 

54

 

under paragraph (b) below
and (y) Affiliate Transactions that are on terms that are no less favorable
than those which would have been obtained in an arm’s-length transaction.

 

All Affiliate Transactions
or series thereof involving aggregate payments or other property with a fair
market value in excess of $1.0 million shall be approved by the Board of Directors
of the Company or such Restricted Subsidiary. If the Company or any Restricted
Subsidiary of the Company enters into an Affiliate Transaction or a series
thereof that involves an aggregate fair market value of more than $7.5 million,
the Company or such Restricted Subsidiary must deliver to the Trustee a
fairness opinion regarding the transaction or series of related transactions
from an Independent Financial Advisor.

 

(b)   The restrictions set
forth in paragraph (a) of this Section 4.11 shall not apply to:

 

(1)                                  loans and
payments to or provided on behalf of, officers, directors, employees or consultants
of the Company or any Restricted Subsidiary of the Company as determined in
good faith by the Company’s Board of Directors or senior management;

 

(2)                                  transactions
exclusively between or among the Company and any of its Restricted Subsidiaries
or exclusively between or among such Restricted Subsidiaries, provided that such transactions are not
otherwise prohibited by the Indenture;

 

(3)                                  any agreement
as in effect as of the Issue Date, as amended or replaced, or any transaction
contemplated by such agreement;

 

(4)                                  any transaction
on arm’s-length terms with any non-Affiliate that becomes an Affiliate as a result
of such transaction;

 

(5)                                  any employment
agreement entered into by the Company or any of its Restricted Subsidiaries in
the ordinary course of business;

 

(6)                                  the issuance
and sale of Qualified Capital Stock;

 

(7)                                  any transaction
between the Holders and the Company or any of its Restricted Subsidiaries relating
to the Notes or this Indenture; and

 

(8)                                  Permitted
Investments and Restricted Payments permitted by this Indenture.

 

Section 4.12.                             Limitation on
Liens.

 

The Company will not, and will not cause or permit
any of its Restricted Subsidiaries to, directly or indirectly, create, incur,
assume or permit or suffer to exist any Liens of any kind against or upon any
property or assets of the Company or any of its Restricted Subsidiaries whether
owned or acquired after the Issue Date, or any proceeds therefrom, or assign or
otherwise convey any right to receive income or profits therefrom except for:

 

(1)                                  Liens securing borrowings under the
Credit Facility incurred pursuant to clause (2) of the definition of “Permitted
Indebtedness”;

 

(2)                                  [intentionally omitted];

 

55

 

(3)                                  Liens securing Currency Agreements and
Interest Swap Obligations so long as such Currency Agreements and Interest Swap
Obligations are permitted to be incurred under this Indenture;

 

(4)                                  Liens securing the Notes and the
Guarantees and Liens with respect to Refinancing Indebtedness used to Refinance
the Notes and the Guarantees;

 

(5)                                  Liens on assets other than Collateral in
favor of the Company or a Wholly Owned Restricted Subsidiary of the Company
that is a Guarantor on assets of any Restricted Subsidiary of the Company; and

 

(6)                                  Permitted Liens.

 

Section 4.13.                             Continued
Existence.

 

Subject to Article V, the Company shall do or
cause to be done all things necessary to preserve and keep in full force and
effect its corporate or other existence and the corporate or other existence of
each Guarantor in accordance with the organizational documents (as the same may
be amended from time to time) of the Company or such Guarantor, except to the
extent that the Board of Directors of the Company determines in good faith that
the preservation of such existence is no longer necessary or desirable in the
conduct of the business of the Company or such Guarantor, taken as a whole, and
that the loss thereof is not disadvantageous in any material respect to the Holders.

 

Section 4.14.                             Insurance
Matters.

 

The Company shall provide or cause to be provided
for itself and each of its Subsidiaries insurance (including appropriate
self-insurance) against loss or damage of the kinds that, in the reasonable,
good faith opinion of the Company, are adequate and appropriate for the conduct
of the business of the Company and its Subsidiaries in a prudent manner, with
reputable insurers or with the government of the United States of America or an
agency or instrumentality thereof, in such amounts, with such deductibles, and
by such methods as shall be either (i) consistent with past practices of
the Company or the applicable subsidiary or (ii) customary, in the reasonable,
good faith opinion of the Company, for corporations similarly situated in the
industry, unless, in the good faith judgment of the Board of Directors of the
Company, the failure to provide such insurance (together with all other such
failures) would not have a material adverse effect on the financial condition
or results of operations of the Company and its Subsidiaries, taken as a whole.

 

Section 4.15.                             Offer to
Repurchase upon Change of Control.

 

(a)                            Upon the
occurrence of a Change of Control, each Holder will have the right to require
the Company to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of such Holder’s Notes pursuant to the offer described below
(the “Change of Control Offer”), at a Purchase Price in cash equal to
101% of the aggregate principal amount thereof plus accrued and unpaid interest
and Additional Interest, if any, thereon to the Purchase Date. The Change of
Control Offer shall be made in compliance with the applicable procedures set
forth in Article III hereof and shall include all instruments and
materials necessary to enable Holders to tender their Notes.

 

(b)                           The Company
will not be required to make a Change of Control Offer upon a Change of Control
if a third party makes the Change of Control Offer in the manner, at the times
and otherwise in compliance with the requirements set forth in this Indenture
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.

 

56

 

(c)                            The Company
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws
and regulations are applicable in connection with the repurchase of Notes
pursuant to a Change of Control Offer. 
To the extent that the provisions of any securities laws or regulations
conflict with this Section 4.15 or Section 3.9, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations under this Section 4.15 or Section 3.9
by virtue thereof.

 

Section 4.16.                             Additional
Subsidiary Guarantees.

 

If the Company or any of its Restricted Subsidiaries
transfers any property to any Domestic Restricted Subsidiary that is not a
Guarantor, or if the Company or any of its Restricted Subsidiaries forms, acquires
or otherwise invests in another Domestic Restricted Subsidiary having total
assets with a book value in excess of $1.0 million, then such Domestic
Restricted Subsidiary shall:

 

(1)                                  execute and deliver to the
Trustee a supplemental indenture, in form reasonably satisfactory to the
Trustee, in which such Restricted Subsidiary agrees to be bound by the terms of
this Indenture as a Guarantor;

 

(2)                                  execute and deliver to the
Trustee supplements to the Security Documents to the extent necessary to grant
a security interest to the Collateral Agent in the Collateral of such
Restricted Subsidiary; and

 

(3)                                  deliver to the Trustee an
Opinion of Counsel that such supplemental indenture and Security Documents have
been duly authorized, executed and delivered by such Restricted Subsidiary and
constitute valid, binding and enforceable obligations of such Restricted Subsidiary.

 

Thereafter, such Restricted Subsidiary shall be a
Guarantor for all purposes of this Indenture (until released from its Guarantee
in accordance with the terms of this Indenture).

 

Notwithstanding anything to the contrary in this Section 4.16,
until the Discharge of Credit Facility Obligations, no Restricted Subsidiary
shall be required to become a Guarantor pursuant to this Section 4.16,
unless such Restricted Subsidiary also guarantees the Credit Facility
Obligations.

 

Section 4.17.                             Payments for
Consent.

 

The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration to or for the benefit of any Holder of Notes for or as an inducement
to any consent, waiver or amendment of any of the terms or provisions of this
Indenture, the Security Documents or the Notes unless such consideration is
offered to be paid and is paid to all Holders of the Notes that consent, waive
or agree to amend in the time frame set forth in the solicitation documents
relating to such consent, waiver or agreement.

 

Section 4.18.                             Limitation on
Issuance of Preferred Stock of Restricted Subsidiaries.

 

The Company will not permit any of its Restricted
Subsidiaries that are not Guarantors to issue any Preferred Stock (other than
to the Company or to a Wholly Owned Restricted Subsidiary of the Company) or
permit any Person (other than the Company or a Wholly Owned Restricted Subsidiary
of the Company) to own any Preferred Stock of any Restricted Subsidiary of the
Company that is not a Guarantor.

 

57

 

Section 4.19.                             Conduct of
Business.

 

The Company and its Restricted Subsidiaries will not
be permitted to engage in any businesses which are not the same, similar,
ancillary or reasonably related to the businesses in which the Company and its
Restricted Subsidiaries are engaged on the Issue Date.

 

ARTICLE V.

 

SUCCESSORS

 

Section 5.1.                                   Merger,
Consolidation and Sale of Assets.

 

(a)                            The Company
will not, in a single transaction or series of related transactions, consolidate
or merge with or into any Person, or sell, assign, transfer, lease, convey or
otherwise dispose of (or cause or permit any Restricted Subsidiary of the
Company to do so) all or substantially all of the Company’s assets (determined
on a consolidated basis for the Company and the Company’s Restricted Subsidiaries)
whether as an entirety or substantially as an entirety to any Person unless:

 

(1)                                  either:

 

(i)                                     the Company
shall be the surviving or continuing corporation; or

 

(ii)                                  the Person (if
other than the Company) formed by such consolidation or into which the Company
is merged or the Person which acquires by sale, assignment, transfer, lease,
conveyance or other disposition the properties and assets of the Company and of
the Company’s Restricted Subsidiaries substantially as an entirety (the “Surviving
Entity”):

 

(x)                                   shall be a
corporation organized and validly existing under the laws of the United States
or any State thereof or the District of Columbia;

 

(y)                                 shall expressly
assume, by supplemental indenture (in form and substance satisfactory to the
Trustee) the Company’ obligations under the Notes this Indenture and the
Registration Rights Agreement; and

 

(z)                                   shall expressly
assume by supplements to the applicable Security Documents (in form and
substance reasonably satisfactory to the Trustee), executed and delivered to
the Trustee, all obligations of the Company under the Security Documents and
shall take all actions as may be required to cause the Liens in favor of the
Collateral Agent to continue to be perfected Liens as was applicable
immediately prior to the transaction;

 

(2)                                  immediately
after giving effect to such transaction and the assumption of the Company’s obligations
contemplated by (1)(ii) above (including giving effect to any Indebtedness
and Acquired Indebtedness incurred or anticipated to be incurred in connection
with or in respect of such transaction), the Company or such Surviving Entity
shall be able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) pursuant to Section 4.9;

 

(3)                                  immediately
before and immediately after giving effect to such transaction and the
assumption of the Company’s obligations contemplated by (1)(ii) above
(including, without limitation, giving effect to any Indebtedness and Acquired
Indebtedness incurred or anticipated to be incurred and any Lien 

 

58

 

granted in connection with
or in respect of the transaction), no Default or Event of Default shall have
occurred or be continuing; and

 

(4)                                  the Company or
the Surviving Entity shall have delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, that the transaction and supplemental indenture, if
applicable, comply with the applicable provisions of the Indenture and that all
conditions precedent in this Indenture relating to such transaction have been
satisfied.

 

For purposes of the foregoing, the transfer of all
or substantially all of the properties or assets of one or more Restricted
Subsidiaries of the Company, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.

 

(b)                           Notwithstanding
the foregoing clauses (1), (2), (3) and (4) of clause (a) above,
the Company may merge with (a) any of its Wholly-Owned Restricted
Subsidiaries or (b) an Affiliate that is a Person that has no material
assets or liabilities and which was organized solely for the purpose of
reorganizing the Company in another jurisdiction.

 

(c)                            Each Guarantor
(other than any Guarantor whose Guarantee is to be released in accordance with
the terms of the Guarantee and this Indenture in connection with any transaction
complying with Section 4.10) will not, and the Company will not cause or
permit any Guarantor to, consolidate with or merge with or into (whether or not
such Guarantor is the surviving Person) another, or sell, assign, transfer,
lease, convey or otherwise dispose of all or substantially all of its assets to
any Person, other than the Company or any other Guarantor unless:

 

(1)                                  the entity
formed by or surviving any such consolidation or merger (if other than the
Guarantor) or to which such sale, lease, conveyance or other disposition shall
have been made is a domestic corporation;

 

(2)                                  such entity
assumes by supplemental indenture all of the Obligations of the Guarantor on
the Guarantee, the Indenture and Registration Rights Agreement;

 

(3)                                  such entity
shall expressly assume by supplements to the applicable Security Documents (in
form and substance reasonably satisfactory to the Trustee), executed and
delivered to the Trustee, all obligations of such Guarantor under the Security
Documents and shall take all actions as may be required to cause the Liens in
favor of the Collateral Agent to continue with the same priority as was applicable
immediately prior to the transactions;

 

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

 

(5)                              immediately after giving
effect to such transaction and the use of any Net Cash Proceeds therefrom on a pro forma basis, the Company could satisfy the provisions of
clause (2) of this Section 5.1(a).

 

Any merger or consolidation
of a Guarantor with and into the Company (with the Company being the surviving
entity) or another Guarantor that is a Wholly Owned Restricted Subsidiary of
the Company need only comply with clauses (1)(ii)(z) and (4) of this Section 5.1(a),
or clauses (1) and (3) of this Section 5.1(c), as the case may
be.

 

59

 

Section 5.2.                                   Successor
Corporation Substituted.

 

Upon any consolidation, combination or merger or any
transfer of all or substantially all of the assets of the Company in accordance
with Section 5.1 in which the Company is not the continuing corporation, the
successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, lease or transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture, the Notes, the Security Documents and the Registration
Rights Agreement with the same effect as if such Surviving Entity had been
named as such.  When a successor corporation
assumes all of the obligations of the predecessor hereunder and under the Notes,
the Security Documents and the Registration Rights Agreement and agrees in
writing to be bound hereby and thereby, the predecessor shall be released from
such obligations.

 

ARTICLE VI.

 

DEFAULTS AND REMEDIES

 

Section 6.1.                                   Events of
Default.

 

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

 

(1)                                  the failure to pay interest
on any Notes when the same becomes due and payable and the default continues
for a period of 30 days, provided that,
if the Discharge of Credit Facility Obligations has not yet occurred, no Event
of Default shall be deemed to occur under this clause (1) if the funds
then available in the Notes Escrow Account are at least equal to the then
required Notes Escrow Amount;

 

(2)                                  the Trustee uses funds from
the Notes Escrow Account to make a payment of interest or related tax gross-up
amount payable pursuant to a Tax Agreement on any Notes and the Company fails
to “top up” the Notes Escrow Account to the then required Notes Escrow Amount
within 2 Business Days thereafter;

 

(3)                                  the failure to pay the
principal on any Notes, when such principal becomes due and payable, at maturity,
upon redemption or otherwise (including the failure to make a payment to
purchase Notes tendered pursuant to a Change of Control Offer or a Net Proceeds
Offer);

 

(4)                                  a default in the observance
or performance of any other covenant or agreement contained in this Indenture
or the Security Documents which default continues for a period of 45 days after
the Company receives written notice specifying the default (and demanding that
such default be remedied) from the Trustee or the Holders of at least 25% of
the outstanding principal amount of the Notes provided that, if the Discharge
of Credit Facility Obligations has occurred, a default with respect to Section 5.1
or Section 4.12, will constitute an Event of Default without such notice
requirement or such passage of time requirement;

 

(5)                                  the failure to pay at final
maturity (giving effect to any applicable grace periods and any extensions
thereof) the stated principal amount of any Indebtedness, including, for the
avoidance of doubt, the Credit Facility Obligations, of the Company or any of
its Restricted Subsidiaries, or the acceleration of the final stated maturity
of any such Indebtedness if the aggregate principal amount of such
Indebtedness, together with the principal amount of any other such Indebtedness
in payment default or which has been accelerated aggregates $2.0 million
or more at any time; provided,
that if such failure to pay relates to Indebtedness in aggregate principal
amount of less than $10.0 million and shall be remedied, waived or extended,
then any Default or Event of Default hereunder shall be deemed likewise to be
remedied, waived or extended to the extent such remedy, waiver or extension
occurs prior to the acceleration of the Notes and, if the Discharge of Credit
Facility Obligations has not yet occurred, such failure continues for a period
of 45 days;

 

60

 

(6)                                  one or more judgments in an
aggregate amount in excess of $2.0 million shall have been rendered
against the Company or any of its Restricted Subsidiaries and such judgments
remain undischarged, unpaid or unstayed for a period of 60 days after such
judgment or judgments become final and non-appealable;

 

(7)                                  the Company or any
Significant Subsidiary of the Company:

 

(i)                  commences a
voluntary case under any Bankruptcy Law,

 

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

 

(iii)            consents to the
appointment of a custodian or receiver of it or for all or substantially all of
its property,

 

(iv)           makes a general
assignment for the benefit of its creditors, or

 

(v)              admits in
writing its inability to pay its debts as they become due;

 

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

 

(i)                  is for relief
in an involuntary case against the Company or any Significant Subsidiary of the
Company;

 

(ii)               appoints a
custodian or receiver of the Company or any Significant Subsidiary or for all
or substantially all of the property of any of the foregoing;

 

(iii)            orders the
liquidation of the Company or any of its Significant Subsidiaries;

 

and the order or decree
remains unstayed and in effect for 60 consecutive days;

 

(9)                                  any Guarantee of a
Significant Subsidiary ceases to be in full force and effect or is declared to
be null and void and unenforceable or is found to be invalid or any Guarantor
that is a Significant Subsidiary denies its liability under its Guarantee
(other than by reason of release of a Guarantor in accordance with the terms of
this Indenture) or the Company or any Guarantor that is a Significant
Subsidiary denies the validity of the Liens created pursuant to the Security
Documents (other than by reason of a release of such Liens in accordance with
the terms of this Indenture), and, if the Discharge of Credit Facility
Obligations has not yet occurred, such failure continues for a period of 45
days; or

 

(10)                            any Lien
purported to be created by any Security Document shall cease to be a valid and
enforceable Lien except in accordance with the Security Documents and such
failure continues for a period of 45 days after the Company receives written
notice specifying the failure (and demanding that such failure be remedied) from
the Trustee or the Holders of at least 40% of the outstanding principal amount
of the Notes.

 

Section 6.2.                                   Acceleration.

 

If an Event of Default (other than an Event of
Default specified in clause (7) or clause (8) of Section 6.1
above with respect to the Company or any Guarantor) shall occur and be
continuing, the Trustee or the Holders of at least 40% (or, if the Discharge of
Credit Facility Obligations has occurred, 25%) in principal amount of outstanding
Notes may declare the principal of and accrued interest on all the Notes to be
due and payable by notice in writing to the Company and the Trustee specifying
the respective Event of Default and that it is a “notice of acceleration”, and
the same shall become immediately due and payable.

 

61

 

If an Event of Default specified in clause (7) or
clause (8) of Section 6.1 above with respect to the Company or any
Guarantor occurs and is continuing, then all unpaid principal of, and premium,
if any, and accrued and unpaid interest on all of the outstanding Notes shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder.

 

An Event of Default specified in clause (b) above
shall be cured and of no further effect if Holdings “tops up” the Notes Escrow
Account to the then required Notes Escrow Amount prior to the 365th day after
the delivery by the Trustee to the Credit Facility Agent of a Notes Default
Notice with respect to such Event of Default.

 

At any time after a declaration of acceleration with
respect to the Notes as described in the preceding paragraph, the Holders of a
majority in principal amount of the Notes may rescind and cancel such
declaration and its consequences:

 

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

 

(2)                                  if all existing Events of
Default have been cured or waived except nonpayment of principal or interest
that has become due solely because of the acceleration;

 

(3)                                  to the extent the payment of
such interest is lawful, interest on overdue installments of interest and
overdue principal, which has become due otherwise than by such declaration of
acceleration, has been paid;

 

(4)                                  if the Company has paid the
Trustee its reasonable compensation and reimbursed the Trustee for its expenses,
disbursements and advances; and

 

(5)                                  in the event of the cure or
waiver of an Event of Default of the type described in clause (7) or
clause (8) of Section 6.1, the Trustee shall have received an
Officers’ Certificate and an Opinion of Counsel that such Event of Default has
been cured or waived.

 

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

 

Section 6.3.                                   Other Remedies.

 

If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal,
premium, if any, interest or Additional Interest, if any, on the Notes or to
enforce the performance of any provision of the Notes or this Indenture or the
Security Documents.

 

The Trustee may maintain a proceeding even if it
does not possess any of the Notes or does not produce any of them in the
proceeding, and any recovery or judgment shall, after provision for the payment
of the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, be for the ratable benefit of the Holders of
the Notes.  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 or constitute a waiver of or
acquiescence in the Event of Default. 
All remedies are cumulative to the extent permitted by law.

 

Section 6.4.                                   Waiver of Past
Defaults.

 

The Holders of a majority in principal amount of the
Notes may waive any existing or past Default or Event of Default under this
Indenture, and its consequences, except a default in the payment of the principal
of or interest on any Notes.  Upon any
such waiver, such Default shall cease to exist, and any Event of Default 

 

62

 

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

 

Section 6.5.                                   Control by
Majority.

 

Holders of a majority in principal amount of the
then outstanding Notes may direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee or exercising any
trust or power conferred on it.  However,
the Trustee may refuse to follow any direction that conflicts with applicable
law or this Indenture, including any direction that conflicts with applicable
law or this Indenture that the Trustee reasonably determines may be unduly
prejudicial to the rights of other Holders of Notes or that may subject the
Trustee to personal liability and shall be entitled to the benefit of
Sections 7.1(c)(iii) and 7.1(e).

 

Section 6.6.                                   Limitation on
Suits.

 

A Holder of a Note may pursue a remedy with respect
to this Indenture or the Notes only if:

 

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

 

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

 

(c)                            such Holder or
Holders of Notes offer and, if requested, provide to the Trustee reasonable indemnity
satisfactory to the Trustee against any loss, liability or expense;

 

(d)                           the Trustee
does not comply with the request within 60 days after receipt of the request
and the offer and, if requested, the provision of indemnity; and

 

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

 

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

 

Section 6.7.                                   Rights of
Holders of Notes to Receive Payment.

 

Notwithstanding any other provision of this
Indenture, the right of any Holder of a Note to receive payment of principal
of, or premium, if any, interest or Additional Interest, if any, on the Note,
on or after the respective due dates thereon (including in connection with an
offer to repurchase), 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 written consent of such Holder.

 

Section 6.8.                                   Collection Suit
by Trustee.

 

If an Event of Default specified in Section 6.l(a) or
(b) occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount of principal of, premium and Additional Interest, if any,
and interest remaining unpaid on the Notes and interest on overdue principal
and, to the extent lawful, interest and Additional Interest, if any, and such
further amounts as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expense, disbursements and advances of
the Trustee, its agents and counsel.

 

63

 

Section 6.9.                                   Trustee May File
Proofs of Claim.

 

The Trustee is authorized to file such proofs of
claim and other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents (including accountants,
experts or such other processionals as the Trustee deems necessary, advisable
or appropriate) and counsel) and the Holders of the Notes allowed in any
judicial proceedings relative to the Company (or any other obligor upon the
Notes), its creditors or its property and shall be entitled to participate as a
member, voting or otherwise, of any official committee of creditors appointed
in such matter and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable on any such claims, and any
custodian in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.7.  To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.7 out
of the estate in any such proceeding, shall be denied for any reason, payment
of the same shall be secured by a lien on, and shall be paid out of, any and
all distributions, dividends, money, securities and other properties that the
Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise.  Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder, or to authorize
the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.10.                             Priorities.

 

Subject to the terms of the Intercreditor Agreement
and the Security Documents, if the Trustee collects any money pursuant to this Article or
from the Collateral Agent pursuant to any Security Document, it shall pay out
the money in the following order:

 

First:  to the Trustee, its agents and attorneys for
amounts due under Section 7.7, including payment of all compensation,
expense and liabilities incurred, and all advances made, by the Trustee and the
costs and expenses of collection;

 

Second:  to Holders of Notes for amounts due and
unpaid on the Notes for principal, Purchase Price, Redemption Price and Additional
Interest, if any, and interest, ratably, without preference or priority of any
kind, according to the amounts due and payable on the Notes for principal,
Purchase Price, Redemption Price and Additional Interest, if any, and interest,
respectively; and

 

Third:  to the Company, the Guarantors, if any, or to
such party as a court of competent jurisdiction shall direct.

 

The Trustee may fix a special record date and
payment date for any payment to Holders of Notes pursuant to this Section 6.10.

 

Section 6.11.                             Undertaking for
Costs.

 

In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action
taken, suffered or omitted by it as a 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 

 

64

 

does not apply to a suit by
the Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by
Holders of more than 10% in principal amount of the then outstanding Notes.

 

Section 6.12.                             Appointment and
Authorization of the Trustee as Collateral Agent.

 

(a)                            The Trustee is
hereby designated and appointed as the Collateral Agent of the Holders under
the Security Documents, and is authorized as the Collateral Agent for such
Holders to execute and enter into each of the Security Documents and all other
instruments relating to the Security Documents and (i) to take action and
exercise such powers as are expressly required or permitted hereunder and under
the Security Documents and all instruments relating hereto and thereto and (ii) to
exercise such powers and perform such duties as are in each case, expressly
delegated to the Collateral Agent by the terms hereof and thereof together with
such other powers as are reasonably incidental hereto and thereto.

 

(b)                           Notwithstanding
any provision to the contrary elsewhere in this Indenture or the Security
Documents, the Collateral Agent shall not have any duties or responsibilities
except those expressly set forth herein or therein or any fiduciary
relationship with any Holder, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into this Indenture or any
Security Document or otherwise exist against the Collateral Agent.

 

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

 

ARTICLE VII.

 

TRUSTEE

 

Section 7.1.                                   Duties of
Trustee.

 

(a)                            If an Event of
Default has occurred and is continuing, the Trustee (including in its capacity
as Collateral Agent) shall exercise such of the rights and powers vested in it
by this Indenture and the Security Documents, and use the same degree of care
and skill in its exercise thereof, 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:

 

(i)                           the duties of
the Trustee (including in its capacity as Collateral Agent) shall be determined
solely by the express provisions of this Indenture, the Security Documents and
the TIA and the Trustee need perform only those duties that are specifically
set forth in this Indenture and the Security Documents and no others, and no
implied covenants or obligations shall be read into this Indenture, the
Security Documents or the TIA against the Trustee; and

 

(ii)                        in the absence
of bad faith on its part, the Trustee (including in its capacity as Collateral
Agent) may conclusively rely, without investigation, as to the truth or the
statements and the correctness of the opinions expressed therein, upon any
statements, certificates or opinions furnished to the Trustee and conforming to
the requirements of this Indenture and the Security Documents.  However, the Trustee shall examine the
certificates and opinions to determine whether or not they conform on their
face to the requirements of this Indenture but not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein or otherwise
verify the contents thereof.

 

65

 

(c)                            The Trustee
(including in its capacity as Collateral Agent) may not be relieved from
liabilities for its own negligent action, its own negligent failure to act, or
its own willful misconduct, except that:

 

(i)                           this paragraph
does not limit the effect of paragraph (b) of this Section 7.1;

 

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

 

(iii)                     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 6.5;
and

 

(iv)                    the Trustee
shall not be required to examine any of the reports, information, or documents
filed with it pursuant to Section 4.3 to determine where there has been
any breach of covenants of the Company set forth in Article IV.

 

(d)                           Whether or not
therein expressly so provided, every provision of this Indenture and the
Security Documents that in any way relates to the Trustee is subject to this Section 7.1.

 

(e)                            No provision of
this Indenture or the Security Documents shall require the Trustee (including
in its capacity as Collateral Agent) to expend or risk its own funds or incur
any liability.  The Trustee shall be
under no obligation to exercise any of its rights and powers under this
Indenture and the Security Documents at the request of any Holder, pursuant to the
provisions of this Indenture, including, without limitation, Section 6.5,
unless such Holder shall have offered to the Trustee security and indemnity
reasonably satisfactory to it against any loss, liability or expense which
might be incurred by it in compliance with such request or direction.  The Holders also agree to indemnify the
Trustee for any indemnification and/or reimbursement obligations the Trustee
incurs under an Account Control Agreement.

 

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

 

Section 7.2.                                   Rights of
Trustee.

 

(a)                            The Trustee
(including in its capacity as Collateral Agent) may conclusively rely and shall
be protected in acting or refraining from acting upon any document believed by
it to be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

(b)                           Before the
Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both.  The
Trustee (including in its capacity as Collateral Agent) shall not be liable for
any action it takes or omits to take in good faith in reliance on such Officers’
Certificate or Opinion of Counsel.  The
Trustee may consult with counsel and the written advice of such counsel and Opinions
of Counsel shall be full and complete authorization and protection from
liability in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon.

 

(c)                            The Trustee
(including in its capacity as Collateral Agent) may act through its attorneys,
accountants, experts and such other professionals as the Trustee deems
necessary, advisable or appropriate and shall not be responsible for the misconduct
or negligence of any attorney, accountant, expert or other such professional
appointed with due care.

 

66

 

(d)                           The Trustee
(including in its capacity as Collateral Agent) shall not be liable for any
action it takes or omits to take in good faith that it believes to be authorized
or within the rights or powers conferred upon it by this Indenture.

 

(e)                            Unless
otherwise specifically provided herein, any demand, request, direction or notice
from the Company shall be sufficiently evidenced by a written order signed by
two Officers of the Company.

 

(f)                              The Trustee
shall not be charged with knowledge of any Default or Event of Default under Section 6.1
(other than under Section 6.1(1) (subject to the following sentence)
or Section 6.1(2)) unless either (i) a Responsible Officer shall have
actual knowledge thereof, or (ii) the Trustee shall have received notice
thereof in accordance with Section 13.2 from the Company or any Holder of
the Notes.  The Trustee shall not be
charged with knowledge of the Company’s obligation to pay Additional Interest,
or the cessation of such obligation, unless the Trustee receives written notice
thereof from the Company or any Holder.

 

(g)                           The Trustee
(including in its capacity as Collateral Agent) shall have no duty (i) to
cause the maintenance of any insurance, (ii) to see to the payment or
discharge of any tax, charge or Lien levied against any part of the Collateral,
or (iii) to see to the filing or refiling of any Security Documents.

 

Section 7.3.                                   Individual
Rights of Trustee.

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Notes and may otherwise deal with the
Company or any Affiliate of the Company with the same rights it would have if
it were not Trustee.  However, in the
event that the Trustee acquires any conflicting interest within the meaning of
the TIA it must eliminate such conflict within 90 days, apply (subject to the
consent of the Company) to the Commission for permission to continue as trustee
or resign.  Any Agent may do the same
with like rights and duties.  The Trustee
shall also be subject to Sections 7.10 and 7.11.

 

Section 7.4.                                   Trustee’s
Disclaimer.

 

The Trustee (including in its capacity as Collateral
Agent) shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture, the Security Documents or the Notes, it
shall not be accountable for the Company’s use of the proceeds from the Notes
or any money paid to the Company or upon the Company’s direction under any
provision of this Indenture or the Security Documents, it shall not be responsible
for the use or application of any money received by any Paying Agent other than
the Trustee, and it shall not be responsible for any statement or recital
herein or any statement in the Notes or any other document in connection with
the sale of the Notes or pursuant to this Indenture other than its certificate
of authentication.

 

Section 7.5.                                   Notice of
Defaults.

 

If a Default or Event of Default occurs and is
continuing and the Trustee has actual knowledge thereof, the Trustee shall mail
to Holders of Notes a notice of the Default or Event of Default within 90 days
after it occurs.  Except in the case of a
Default in payment on any Note (including the failure to make a mandatory
repurchase pursuant hereto), the Trustee shall withhold the notice if and so
long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes.  Notwithstanding anything to the contrary
expressed in this Indenture, the Trustee shall not be deemed to have knowledge
of any Default or Event of Default hereunder or that a Discharge of Credit
Facility Obligations has occurred unless and until the Trustee shall have
received written notice thereof from the Company or any Holder at its Corporate
Trust Office as specified in Section 13.2, except in the case of an Event
of Default under clauses (a), (b) or (c) of the first paragraph of Section 6.1
(provided that the Trustee is the Paying Agent).

 

67

 

Section 7.6.                                   Reports by
Trustee to Holders of the Notes.

 

Within 60 days after each May 15 beginning with
the May 15 following the date of this Indenture, and for so long as Notes
remain outstanding, the Trustee shall mail to the Holders of the Notes a brief
report dated as of such reporting date that complies with TIA § 313(a) (but
if no event described in TIA § 313(a) has occurred within the twelve
months preceding the reporting date, no report need be transmitted).  The Trustee also shall comply with TIA
§ 313(b).  The Trustee shall also
transmit by mail all reports as required by TIA § 313(c).

 

A copy of each report at the time of its mailing to
the Holders of Notes shall be mailed to the Company and filed with the
Commission and each stock exchange on which the Notes are listed in accordance
with TIA § 313(d).  The Company
shall promptly notify the Trustee when the Notes are listed on any stock exchange.

 

Section 7.7.                                   Compensation,
Reimbursement and Indemnity.

 

The Company shall pay to the Trustee from time to
time reasonable compensation for its acceptance of this Indenture and the
Security Documents and the rendering by it of the services required hereunder
as shall be agreed upon in writing by the Company and the Trustee.  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
promptly upon request for all reasonable disbursements, advances and expenses
incurred or made by or on behalf of it in addition to the compensation for its
services.  Such expenses shall include
the reasonable compensation, disbursements and expenses of the Trustee’s
attorneys, accountants, experts and such other professionals as the Trustee
deems necessary, advisable or appropriate.

 

The Company shall indemnify the Trustee (including
in its capacity as Collateral Agent) 
against any and all losses, liabilities or expenses (including
reasonable attorneys’ fees and expenses) incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture (including its duties under Section 9.6), including the costs
and expenses of enforcing this Indenture or any Guarantee against the Company
or a Guarantor (including this Section 7.7) and defending itself against
or investigating any claim (whether asserted by the Company, any Guarantor, any
Holder or any other Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except to the extent any
such loss, liability or expense may be attributable to its negligence or
willful misconduct.  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 any claim or threatened
claim asserted against the Trustee, and the Trustee shall cooperate in the
defense.  The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel.  The Company need not pay for
any settlement made without its consent, which consent shall not be
unreasonably withheld.

 

The obligations of the Company under this Section 7.7
shall survive the resignation or removal of the Trustee, the satisfaction and
discharge of this Indenture and the termination of this Indenture.

 

To secure the Company’s payment obligations in this Section 7.7,
the Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal,
Redemption Price or Purchase Price of or Additional Interest, if any, or
interest on, particular Notes.  Such Lien
shall survive the resignation or removal of the Trustee, the satisfaction and
discharge of this Indenture and the termination of this Indenture.

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.1(6) occurs, the
expenses and the compensation for the services (including the fees and expenses
of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

 

68

 

Section 7.8.                                   Replacement of
Trustee.

 

A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section 7.8.

 

The Trustee may resign in writing at any time and be
discharged from the trust hereby created by so notifying the Company.  The Holders of Notes of a majority in
principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Company in writing.  The Company may remove the Trustee if:

 

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

 

(b)                                 the Trustee is adjudged a bankrupt or an
insolvent or an order for relief is entered with respect to the Trustee under
any Bankruptcy Law;

 

(c)                                  a custodian, receiver or public officer
takes charge of the Trustee or its property for the purpose of rehabilitation,
conversion or liquidation; or

 

(d)                                 the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, the Company shall promptly
appoint a successor Trustee.  Within one
year after the date on which the successor Trustee takes office, the Holders of
a majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.

 

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

 

If the Trustee, after written request by any Holder
of a Note who has been a bona fide holder of a Note or Notes for at least six
months, fails to comply with Section 7.10, such Holder of a Note may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of 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 Company shall mail a notice of its
succession to Holders of the Notes.  The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, provided all
sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.7. 
Notwithstanding replacement of the Trustee pursuant to this Section 7.8,
the Company’s obligations under Section 7.7 shall continue for the benefit
of the retiring Trustee.

 

Any successor Trustee shall execute a joinder to
each of the Security Documents, including, but not limited to, the Notes Escrow
Agreement.

 

Section 7.9.                                   Successor
Trustee by Merger, Etc.

 

If the Trustee (including in its capacity as
Collateral Agent) consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation that
is eligible under Section 7.10, the successor corporation without any
further act shall be the successor Trustee.

 

69

 

Section 7.10.                             Eligibility;
Disqualification.

 

There shall at all times be a Trustee hereunder that
is an entity organized and doing business under the laws of the United States
of America or of any state thereof (including the District of Columbia) that is
authorized under such laws to exercise corporate trust power, that is subject
to supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $50 million as set forth in its most
recent published annual report of condition.

 

This Indenture shall always have a Trustee who
satisfies the requirements of TIA § 310(a)(1), (2) and (5).  The Trustee is subject to TIA § 310(b).

 

Section 7.11.                             Preferential
Collection of Claims Against Company.

 

The Trustee is subject to 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 therein.

 

Section 7.12.                             Collateral
Agent.

 

The rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Collateral Agent
as if the Collateral Agent were named as the Trustee herein and the Security
Documents were named as this Indenture herein.

 

ARTICLE VIII.

 

LEGAL DEFEASANCE AND
COVENANT DEFEASANCE

 

Section 8.1.                                   Option to
Effect Legal Defeasance or Covenant Defeasance.

 

The Company may, at its option and at any time,
elect to have its obligations and the obligations of any Guarantors discharged
with respect to the then outstanding Notes and the Security Documents.

 

Section 8.2.                                   Legal
Defeasance and Discharge.

 

Upon the Company’s exercise under Section 8.1
of the option applicable to this Section 8.2, the Company and any
Guarantor shall, subject to the satisfaction of the conditions set forth in Section 8.4,
be deemed to have been discharged from its obligations with respect to all
outstanding Notes on the date the conditions set forth below are satisfied
(hereinafter, “Legal Defeasance”). 
For this purpose, Legal Defeasance means that the Company and the
Guarantors, if any, shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes and any Guarantees thereon,
which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.5
and the other Sections of this Indenture referred to in clauses (a) through
(d) below, and to have satisfied all their other obligations under such
Notes, this Indenture and the Security Documents (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall
survive until otherwise terminated or discharged hereunder:

 

(a)                                  the rights of Holders of outstanding
Notes to receive payments in respect of the principal of, premium, if any, and
interest on the Notes when such payments are due;

 

70

 

(b)                                 the Company’s obligations with respect to
the Notes concerning issuing temporary Notes, registration of Notes, mutilated,
destroyed, lost or stolen Notes and the maintenance of an office or agency for
payments;

 

(c)                                  the rights, powers, trust, duties and
immunities of the Trustee and the Company’s obligations in connection
therewith; and

 

(d)                                 the Legal Defeasance provisions of this Article VIII.

 

Subject to compliance with this Article VIII,
the Company may exercise its option under this Section 8.2,
notwithstanding the prior exercise of its option under Section 8.3.

 

Section 8.3.                                   Covenant
Defeasance.

 

Upon the Company’s exercise under Section 8.1
of the option applicable to this Section 8.3, the Company shall, subject
to the satisfaction of the conditions set forth in Section 8.4, be
released from its obligations under the Security Documents and under the
covenants contained in Sections 3.9, 3.10, 3.11, 4.3, 4.4, 4.5, 4.7 through
4.12 and 4.14 through 4.19, both inclusive, and Section 5.1(b), Article XI
and Article XIII with respect to the outstanding Notes on and after the
date the conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes shall thereafter be deemed not “outstanding” for the purposes of
any direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes).  For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, the Company may
omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document, and such omission to comply shall not constitute a Default
or an Event of Default under Section 6.1, but, except as specified above,
the remainder of this Indenture and such Notes shall be unaffected
thereby.  In addition, upon the Company’s
exercise under Section 8.1 of the option applicable to this Section 8.3,
subject to the satisfaction of the conditions set forth in Section 8.4,
Sections 6.1(3) through 6.1(7) shall not constitute Events of
Default.

 

Section 8.4.                                   Conditions to
Legal or Covenant Defeasance.

 

The following are the conditions precedent to the
application of either Section 8.2 or 8.3 to the outstanding Notes as
specified:

 

In order to exercise either Legal Defeasance or
Covenant Defeasance:

 

(1)                                  the Company
must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient, in the opinion of a
nationally recognized firm of independent public accountants, to pay the
principal of, premium, if any, and interest on the Notes on the stated date for
payment thereof or on the applicable Redemption Date, as the case may be;

 

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

 

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

 

71

 

(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 Legal 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 Legal Defeasance had not occurred;

 

(3)                                  in the case of
Covenant Defeasance, the Company shall have delivered to the Trustee an Opinion
of Counsel in the United States reasonably acceptable to the Trustee confirming
that the Holders will not recognize income, gain or loss for 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;

 

(4)                                  no Default or
Event of Default shall have occurred and be continuing on the date of such
deposit (other than a Default or an Event of Default resulting from the
borrowing of funds to be applied to such deposit and the grant of any Lien
securing such borrowings);

 

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

 

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

 

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

 

Notwithstanding the foregoing, the Opinion of
Counsel required by clause (2) above with respect to a Legal Defeasance
need not be delivered if all Notes not theretofore delivered to the Trustee for
cancellation (1) have become due and payable or (2) will become due
and payable on the maturity date within one year, under arrangements reasonably
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company.

 

Section 8.5.                                   Deposited Money
and Government Securities to Be Held in Trust; Other  Miscellaneous
Provisions.

 

Subject to Section 8.6,
all money and Government Securities (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee, collectively for purposes of
this Section 8.5 only, the “Trustee”) pursuant to Section 8.4
in respect of the outstanding Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to
the payment, either directly or through any Paying Agent (other than the
Company) as the Trustee may determine, to the Holders of such Notes of all sums
due and to become due thereon in respect of principal, Redemption Price or
Purchase Price of, and Additional Interest, if any, or interest on, the Notes,
provided that such money need not be segregated from other funds except to the
extent required by law.

 

72

 

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the cash or
Government Securities deposited pursuant to Section 8.4 or the principal
and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

 

Anything in this Article VIII to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon the request of the Company any money or Government Securities held by
it as provided in Section 8.4 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion delivered
under Section 8.4), are in excess of the amount thereof that would then be
required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

 

Section 8.6.                                   Repayment to
Company.

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal,
Redemption Price or Purchase Price of, or Additional Interest, if any, or
interest on any Note and remaining unclaimed for two years after such amount
has become due and payable shall be paid to the Company on its request or (if
then held by the Company) shall be discharged from such trust; and the Holder
of such Note shall thereafter look only to the Company for payment thereof as a
general creditor, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, at the expense of the Company, if required
by applicable law cause to be published once, in The New York Times and The
Wall Street Journal (national editions), notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days after the date of such notification or publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

 

Section 8.7.                                   Reinstatement.

 

If the Trustee or Paying
Agent is unable to apply any United States dollars or Government Securities in
accordance with Section 8.2 or 8.3, as the case may be, by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, then the obligations of the Company
and the Guarantors under this Indenture and the Notes and the Guarantees shall
be revived and reinstated as though no deposit had occurred pursuant to Section 8.2
or 8.3 until such time as the Trustee or Paying Agent is permitted to apply all
such money in accordance with Section 8.2 or 8.3, as the case may be; provided, however, that,
if the Company makes any payment with respect to any Note following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money held by the
Trustee or Paying Agent.

 

ARTICLE IX.

 

AMENDMENT, SUPPLEMENT AND
WAIVER

 

Section 9.1.                                   Without Consent
of Holders of Notes.

 

Notwithstanding Section 9.2 of this Indenture,
from time to time, the Company, the Guarantors and the Trustee (including in
its capacity as Collateral Agent) may amend or supplement this Indenture, the Security
Documents, or the Notes without the consent of any Holder of a Note:

 

(a)                            to cure any
ambiguity, omission, defect or inconsistency so long as such change does not,
in the opinion of the Trustee, adversely affect the rights of any of the
Holders in any material respect.

 

73

 

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

 

(c)                            to provide for
the assumption of the Company’s obligations to Holders of the Notes in case of
a merger or consolidation or sale of all or substantially all of the Company’s
assets pursuant to Article V hereof;

 

(d)                           if applicable,
to comply with the requirements of the Commission in order to effect or
maintain the qualification of this Indenture under the TIA;

 

(e)                            to add or
release the Guarantees of Guarantors in compliance with this Indenture and add
or release assets as Collateral in accordance with this Indenture and the
Security Documents; or

 

(f)                              to make any
change that would provide any additional rights or benefits to the Holders of
the Notes.

 

Upon the written request of the Company, accompanied
by a Board Resolution (evidenced by an Officers’ Certificate) authorizing the
execution of any such amended or supplemental indenture, and upon receipt by
the Trustee of the documents described in Section 7.2, the Trustee shall
join with the Company in the execution of any amended or supplemental indenture
authorized or permitted by the terms of this Indenture and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee shall not be obligated to enter into such amended or supplemental indenture
that affects its own rights, duties or immunities under this Indenture or
otherwise.

 

Section 9.2.                                   With Consent of
Holders of Notes.

 

Except as provided below in this Section 9.2,
the Company, the Trustee (including in its capacity as Collateral Agent) and
the Guarantors may amend or supplement this Indenture, the Security Documents
or the Notes with the consent of the Holders of at least a majority in
principal amount of the Notes then outstanding (including, without limitation,
consents obtained in connection with a tender offer or exchange offer for the
Notes), and, subject to Sections 6.2, 6.4 and 6.7, any existing Default or
Event of Default or compliance with any provision of this Indenture or the
Notes may be waived with the consent of the Holders of a majority in principal
amount of the then outstanding Notes (including consents obtained in connection
with a tender offer or exchange offer for the Notes).

 

Without the consent of each Holder affected, an
amendment or waiver may not (with respect to any Notes held by a non-consenting
Holder):

 

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

 

(2)                                  reduce the rate of or change
or have the effect of changing the time for payment of interest, including defaulted
interest, on any Notes;

 

(3)                                  reduce the principal of or change or have the effect
of changing the fixed maturity of any Notes, or change the date on which any
Notes may be subject to redemption or reduce the redemption price therefor,
other than prior to the time the Company’s obligation to purchase Notes arises
under provisions relating to the Company’s obligation to make and consummate a
Change of Control Offer in the event of a Change of Control or to make and
consummate a Net Proceeds Offer with respect to any Asset Sale, any
amendment, change or modification to the obligation of the Company to make and
consummate a Change of Control Offer in the event of a Change of Control or
make and consummate a Net Proceeds Offer with respect to any Asset Sale, as the
case may be:

 

74

 

(4)                                  make any Notes payable in
money other than that stated in the Notes;

 

(5)                                  make any change in provisions of this Indenture
protecting the right of each Holder to receive payment of principal of and
interest on such Note on or after the due date thereof or to bring suit to
enforce such payment (except a rescission of acceleration of the Notes by the
Holders of at least a majority in aggregate principal amount of the Notes and a
waiver of the payment default that resulted from such acceleration), or
permitting Holders of a majority in principal amount of Notes to waive Defaults
or Events of Default;

 

(6)                                  after the Company’s
obligation to purchase Notes arises thereunder, amend, change or modify in any material
respect the obligation of the Company to make and consummate a Change of
Control Offer in the event of a Change of Control or make and consummate a Net
Proceeds Offer with respect to any Asset Sale that has been consummated or,
after such Change of Control has occurred or such Asset Sale has been
consummated, modify any of the provisions or definitions with respect thereto;

 

(7)                                  modify or change any
provision of this Indenture or the related definitions affecting the ranking of
the Notes or any Guarantee in a manner which adversely affects the Holders of
Notes;

 

(8)                                  release any Guarantor that
is a Significant Subsidiary from any of its obligations under its Guarantee or
this Indenture otherwise than in accordance with the terms of this Indenture;
or

 

(9)                                  release all or substantially
all of the Collateral from the Liens of the Security Documents otherwise than
in accordance with the terms of this Indenture.

 

Upon the written request of the Company accompanied
by a resolution of the Board (evidenced by an Officers’ Certificate)
authorizing the execution of any such amended or supplemental indenture, and
upon the filing with the Trustee of evidence satisfactory to the Trustee of the
consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee
of the documents described in Section 7.2, the Trustee shall join with the
Company in the execution of such amended or supplemental indenture unless such
amended or supplemental indenture affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such amended or supplemental
indenture.

 

It shall not be necessary for the consent of the
Holders of Notes under this Section 9.2 to approve the particular form of
any proposed amendment or waiver, but it shall be sufficient if such consent approves
the substance thereof.

 

After an amendment, supplement or waiver under this Section 9.2
becomes effective, the Company shall mail to the Holders of Notes affected
thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Company to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such amended or supplemental indenture or waiver.

 

Section 9.3.                                   Compliance with
Trust Indenture Act.

 

Every amendment or supplement to this Indenture or
the Notes shall be set forth in an amended or supplemental indenture that
complies with the TIA as then in effect.

 

75

 

Section 9.4.                                   Revocation and
Effect of Consents.

 

Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder of a Note is a continuing consent by the
Holder of a Note and every subsequent Holder of a Note or portion of a Note
that evidences the same debt as the consenting Holder’s Note, even if notation
of the consent is not made on any Note. 
However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date the waiver, supplement or amendment becomes
effective.  An amendment, supplement or
waiver becomes effective in accordance with its terms and therefore binds every
Holder.

 

Section 9.5.                                   Notation on or
Exchange of Notes.

 

The Trustee may place an appropriate notation about
an amendment, supplement or waiver on any Note thereafter authenticated.  The Company in exchange for all Notes may
issue and the Trustee shall authenticate new Notes that reflect the amendment,
supplement or waiver.

 

Failure to make the appropriate notation or issue a
new Note shall not affect the validity and effect of such amendment, supplement
or waiver.

 

Section 9.6.                                   Trustee to Sign
Amendment, Etc.

 

The Trustee shall sign any amended or supplemental
indenture authorized pursuant to this Article IX if the amendment or
supplement does not adversely affect the rights, duties, liabilities or
immunities of the Trustee.  Prior to the
Discharge of Credit Facility Obligations, without the consent of the Credit
Facility Agent, the Trustee will not enter into any amendments to the Notes or
the Indenture which would (i) increase the rate of interest on the Notes,
both before and after an Event of Default, (ii) shorten the stated
maturity of the Notes or change the date(s) upon which principal or
interest is due and payable, (iii) change the definition of Change of
Control, Change of Control Offer (as set forth in the Notes) or Net Proceeds
Offer (as set forth in the Notes) or the operative provisions relating thereto,
(iv) cause any of the affirmative and negative covenants in the Indenture
to be more burdensome on the Company and its Subsidiaries or (v) amend or
modify the Events of Default (as set forth herein). The Company may not sign an
amended or supplemental indenture until the Board approves such amended or supplemental
indenture.  In executing any amended or
supplemental indenture, the Trustee shall be entitled to receive, in addition
to the documents required by Sections 13.4 and 13.5, and, subject to Section 7.1,
shall be fully protected in relying upon, an Officers’ Certificate and an
Opinion of Counsel stating that (i) the execution of such amended or supplemental
indenture is authorized or permitted by this Indenture, (ii) no Event of
Default shall occur as a result of the execution of such Officers’ Certificate
or the delivery of such Opinion of Counsel and (iii) the amended or
supplemental indenture complies with the terms of this Indenture.

 

ARTICLE X.

 

GUARANTEE

 

Section 10.1.                             Unconditional
Guarantee.

 

Each Guarantor hereby unconditionally guarantees, on
a senior subordinated secured basis and jointly and severally, to each Holder
of a Note authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns that: (i) the principal of and interest on the
Notes and any related tax gross-up amounts payable under the Tax Agreements
will be promptly paid in full when due, subject to any applicable grace period,
whether at maturity, by acceleration, upon redemption, purchase pursuant to Article III
or otherwise, and interest on the overdue principal, if any, interest on any
interest, and Additional Interest, if any, to the extent lawful, of the Notes
and all other obligations of the Company to the Holders or the Trustee
hereunder or thereunder will be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and (ii) in case of 

 

76

 

any extension of time of
payment or renewal of any Notes or of any such other obligations, the same will
be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, subject to any applicable grace period, whether at
Stated Maturity, by acceleration, upon redemption, purchase pursuant to Article III
or otherwise, subject, however, in the case of clauses (i) and (ii) above,
to the limitations set forth in Section 10.3.  Each Guarantor hereby agrees that its
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof (other than a waiver of all or
part of the provisions of this Article X), the recovery of any judgment
against the Company, and action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor.  Each Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever
and covenants that this Guarantee will not be discharged except by complete
performance of the obligations contained in the Notes, this Indenture and in
this Guarantee.  If any Holder or the
Trustee is required by any court or otherwise to return to the Company, any
Guarantor, or any custodian, trustee, liquidator or other similar official
acting in relation to the Company or any Guarantor, any amount paid by the
Company or any Guarantor to the Trustee or such Holder, this Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and
effect.  Each Guarantor further agrees
that, as between each Guarantor, on the one hand, and the Holders and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article VI for the purposes of
this Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby,
and (y) in the event of any acceleration of such obligations as provided
in Article VI, such obligations (whether or not due and payable) shall
forthwith become due and payable by each Guarantor for the purpose of this
Guarantee.

 

Section 10.2.                             Severability.

 

In case any provision of this Guarantee shall be
invalid, illegal or unenforceable, the validity, legality, and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

 

Section 10.3.                             Limitation of
Guarantor’s Liability.

 

Each Guarantor and by its acceptance hereof each
Holder hereby confirms that it is the intention of all such parties that the
guarantee by such Guarantor pursuant to its Guarantee not constitute a
fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar Federal or state law.  To
effectuate the foregoing intention, the Holders and such Guarantor hereby irrevocably
agree that the obligations of such Guarantor under the Guarantee shall be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Guarantor and after giving effect to
any collections from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under its Guarantee or
pursuant to Section 10.5, result in the obligations of such Guarantor
under the Guarantee not constituting such fraudulent transfer or conveyance.

 

Section 10.4.                             Release of
Guarantor.

 

(a)                            Any Guarantee
shall be automatically and unconditionally released and discharged, without any
further action required on the part of the Trustee or any Holder of the Notes:

 

(1)                                             in connection
with any sale or other disposition of all or substantially all of the assets of
such Guarantor (including by way of merger or consolidation) to a Person that
is not (either before or after giving effect to such transaction) the Company
or a Restricted Subsidiary of the Company, if the sale or other disposition
does not violate Section 4.10 of this Indenture;

 

77

 

(2)                                             in connection
with any sale or other disposition of all of the Capital Stock of the Guarantor
to a Person that is not (either before or after giving effect to such
transaction) the Company or a Restricted Subsidiary of the Company, if the sale
or other disposition does not violate Section 4.10 of this Indenture;

 

(3)                                             if Company
designates any Restricted Subsidiary that is a Guarantor to be an Unrestricted
Subsidiary in accordance with the provisions of this Indenture; or

 

(4)                                              upon legal
defeasance or satisfaction and discharge of this Indenture as described under Article VIII
and Article XI.

 

(b)                           The Trustee
shall deliver an appropriate instrument evidencing such release upon receipt of
a request by the Company accompanied by an Officers’ Certificate and Opinion of
Counsel certifying as to the compliance with this Section 10.4.  Any Guarantor not so released shall remain
liable for the full amount of principal of and interest on the Notes as
provided in this Article X.

 

(c)                            All Guarantees
shall be of no further force and effect upon the occurrence of a Legal
Defeasance or a Covenant Defeasance pursuant to Section 8.2 or 8.3,
subject to reinstatement pursuant to Section 8.7 under the circumstances
described therein.

 

Section 10.5.                             Contribution.

 

In order to provide for just and equitable
contribution among the Guarantors, the Guarantors agree, inter se,
that in the event any payment or distribution is made by any Guarantor (a “Funding
Guarantor”) under the Guarantee, such Funding Guarantor shall be entitled
to a contribution from all other Guarantors in a pro rata
amount based on the Adjusted Net Assets (as defined below) of each Guarantor
(including the Funding Guarantor) for all payments, damages and expenses
incurred by that Funding Guarantor in discharging the Company’s obligations
with respect to the Notes or any other Guarantor’s obligations with respect to
the Guarantee.  “Adjusted Net Assets”
of such Guarantor at any date shall mean the lesser of the amount by which (x) the
fair value of the property of such Guarantor exceeds the total amount of
liabilities, including, without limitation, contingent liabilities (after
giving effect to all other fixed and contingent liabilities incurred or assumed
on such date), but excluding liabilities under the Guarantee, of such Guarantor
at such date and (y) the present fair salable value of the assets of such
Guarantor at such date exceeds the amount that will be required to pay the probable
liability of such Guarantor on its debts (after giving effect to all other
fixed and contingent liabilities incurred or assumed on such date), excluding
debt in respect of the Guarantee of such Guarantor, as they become absolute and
matured.

 

Section 10.6.                             Waiver of
Subrogation.

 

Until all Notes Obligations under the Notes and this
Indenture are paid in full, each Guarantor hereby irrevocably waives any claims
or other rights which it may now or hereafter acquire against the Company that
arise from the existence, payment, performance or enforcement of such Guarantor’s
obligations under the Guarantee and this Indenture, including, without
limitation, any right of subrogation, reimbursement, exoneration,
indemnification, and any right to participate in any claim or remedy of any
Holder against the Company, whether or not such claim, remedy or right arises
in equity, or under contract, statute or common law, including, without
limitation, the right to take or receive from the Company, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights.  If any amount shall be paid to any Guarantor
in violation of the preceding sentence and the Notes shall not have been paid
in full, such amount shall have been deemed to have been paid to such Guarantor
for the benefit of, and held in trust for the benefit of, the Holders, and
shall, forthwith be paid to the Trustee for the benefit of such Holders to be
credited and applied upon the Notes, whether matured or unmatured, in
accordance with the terms of this Indenture. 
Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing 

 

78

 

arrangements contemplated by this Indenture and
that the waiver set forth in this Section 10.6 is knowingly made in
contemplation of such benefits.

 

Section 10.7.                             Execution of
Guarantee.

 

To evidence its guarantee to the Holders set forth
in this Article X, each Guarantor agrees to execute the Guarantee in
substantially the form attached hereto as Exhibit B, which shall be
endorsed on each Note ordered to be authenticated and delivered by the
Trustee.  Each Guarantor hereby agrees
that its Guarantee shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Guarantee.  Each such Guarantee shall be signed on behalf
of each Guarantor by two Officers, or an Officer and an Assistant Secretary or
one Officer shall sign and one Officer or an Assistant Secretary (each of whom
shall, in each case, have been duly authorized by all requisite corporate
actions) shall attest to such Guarantee prior to the authentication of the Note
on which it is endorsed, and the delivery of such Note by the Trustee, after
the authentication thereof hereunder, shall constitute due delivery of such
Guarantee on behalf of such Guarantor. 
Such signatures upon the Guarantee may be by manual or facsimile
signature of such officers and may be imprinted or otherwise reproduced on the
Guarantee, and in case any such officer who shall have signed the Guarantee
shall cease to be such officer before the Note on which such Guarantee is
endorsed shall have been authenticated and delivered by the Trustee or disposed
of by the Company, such Note nevertheless may be authenticated and delivered or
disposed of as though the Person who signed the Guarantee had not ceased to be
such officer of the Guarantor.

 

Section 10.8.                             Waiver of Stay,
Extension or Usury Laws.

 

Each Guarantor hereby covenants (to the extent that
it may lawfully do so) that it will not at any time insist upon, plead, or in
any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law that would prohibit or forgive each
such Guarantor from performing its Guarantee as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture; and (to the extent that it may
lawfully do so) each such Guarantor hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

 

ARTICLE XI.

 

SATISFACTION AND DISCHARGE

 

Section 11.1.                             Satisfaction
and Discharge.

 

This Indenture and the Security Documents will be
discharged and will cease to be of further effect (except as set forth below)
as to all outstanding Notes and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture and the Security Documents as to all outstanding Notes when:

 

(1)                                  either:

 

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

 

79

 

(b)                                 all Notes not
theretofore delivered to the Trustee for cancellation (1) have become due
and payable by reason of the mailing of a notice of redemption or otherwise or (2) will
become due and payable within one year, or are to be called for redemption within
one year, under arrangements reasonably satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name, and at the expense,
of the Company, and the Company has irrevocably deposited or caused to be
deposited with the Trustee funds in an amount sufficient to pay and discharge
the entire Indebtedness on the Notes not theretofore delivered to the Trustee
for cancellation, for principal of, premium, if any, and interest on the Notes
to the date of maturity or redemption, as the case may be, together with
irrevocable instructions from the Company directing the Trustee to apply such
funds to the payment thereof at maturity or redemption, as the case may be;

 

(2)                                  the Company has
paid all other sums payable under this Indenture and the Security Documents by
the Company; and

 

(3)                                  the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
which Opinion of Counsel may be subject to customary assumptions and exclusions,
stating that all conditions precedent under this Indenture relating to the
satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of
this Indenture, the Company’s obligations in Sections 2.3, 2.4, 2.6, 2.7, 2.11,
7.7, 7.8, 13.2, 13.3 and 13.4, and the Trustee’s and Paying Agent’s obligations
in Section 11.2 shall survive until the Notes are no longer
outstanding.  Thereafter, only the
Company’s obligations in Section 7.7 shall survive.

 

Section 11.2.                             Application of
Trust.

 

All money deposited with the Trustee pursuant to Section 11.1
shall be held in trust and, at the written direction of the Company, be
invested prior to maturity in Government Securities, and applied by the Trustee
in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for the payment of which money has been deposited with the
Trustee; but such money need not be segregated from other funds except to the
extent required by law.

 

ARTICLE XII.

 

SECURITY

 

Section 12.1.                             Security
Documents; Additional Collateral.

 

(a)                            In order to
secure the due and punctual payment of the Notes Obligations, the Company, the
Guarantors, the Collateral Agent and the other parties thereto have simultaneously
with the execution of this Indenture entered or, in accordance with the
provisions of this Article XII and the provisions of the Security Agreement,
will enter into the Security Documents.

 

(b)                           The Company
shall, and shall cause each Guarantor to, and each Guarantor shall, make all
filings (including filings of continuation statements and amendments to
financing statements that may be necessary to continue the effectiveness of
such financing statements) and take all other actions as are necessary or
required by the Security Documents to maintain (at the sole cost and expense of
the Company and the Guarantors) the security interest created by the Security
Documents in the Collateral as a perfected second priority security interest
subject only to (i) in the case of Collateral under the Notes Escrow
Agreement, Liens expressly 

 

80

 

permitted
thereunder, and (ii) in the case of all other Collateral, the first
priority Lien securing Credit Facility Obligations and Permitted Liens.

 

(c)                            With respect to
assets acquired after the Issue Date (or assets that cease to be Excluded
Assets), the Company or applicable Guarantor will take the actions required by
the Security Agreement.

 

Section 12.2.                             Recording,
Registration and Opinions.

 

The Company and the Guarantors shall furnish to the
Trustee at least thirty (30) days prior to the anniversary of the Issue Date in
each year an Opinion of Counsel, dated as of such date, either (i) (x) stating
that, in the opinion of such counsel, such action has been taken with respect
to the recording, filing, re-recording, and refiling of this Indenture or the
Security Documents, as applicable, as are necessary to maintain the perfected
Liens of the applicable Security Documents securing the Notes Obligations under
applicable law to the extent required by the Security Documents other than any
action as described therein to be taken and such opinion may refer to prior
Opinions of Counsel and contain customary qualifications and exceptions and may
rely on an Officers’ Certificate of the Company, and (y) stating that on
the date of such Opinion of Counsel, all financing statements, financing
statement amendments and continuation statements have been or will be executed
and filed that are necessary, as of such date or promptly thereafter and during
the succeeding 12 months, fully to maintain the perfection of the security
interests of the Collateral Agent securing the Notes Obligations thereunder and
under the Security Documents with respect to the Collateral and such Opinion of
Counsel may contain customary qualifications and exceptions and may rely on an
Officers’ Certificate; provided that if there is a required filing of a
continuation statement or other instrument within such 12 month period and such
continuation statement or amendment is not effective if filed at the time of
the opinion, such opinion may so state and in that case the Company and the
Guarantors shall cause a continuation statement or amendment to be timely filed
so as to maintain such Liens and security interests securing Notes Obligations
or (ii) stating that, in the opinion of such counsel, no such action is
necessary to maintain such Liens or security interests.

 

Section 12.3.                             Release of
Liens on Collateral.

 

The Liens securing the Notes and the Guarantees will
automatically and without the need for any further action by any Person be
released:

 

(a)                           in whole or in
part, as applicable, as to all or any portion of property subject to such Liens
which has been taken by eminent domain, condemnation or other similar circumstances;

 

(b)                           in whole upon:

 

(i)                              satisfaction
and discharge of this Indenture under Section 11.1 hereof; or

 

(ii)                           a Legal
Defeasance or Covenant Defeasance of this Indenture under Article VIII
hereof;

 

(c)                           in part, as to
any property that (i) is sold, transferred or otherwise disposed of by the
Company or any Guarantor (other than to the Company or another Guarantor) in a
transaction that is permitted by this Indenture at the time of such transfer or
disposition or (ii) is owned or at any time acquired by a Guarantor that
has been released from its Guarantee, concurrently with the release of such
Guarantee; and

 

(d)                          in whole or in
part, in accordance with the applicable provisions of the Intercreditor
Agreement.

 

81

 

Section 12.4.                             Form and
Sufficiency of Release.

 

In the event that any Lien is to be released pursuant
to Section 12.3, and the Company or such Guarantor requests the Collateral
Agent to furnish a written disclaimer, release or quitclaim of any interest in
such property under the Security Documents, upon receipt of an Officers’
Certificate and Opinion of Counsel to the effect that such release complies
with Section 12.3 and specifying the provision in Section 12.3
pursuant to which such release is being made (upon which the Trustee and
Collateral Agent may exclusively and conclusively rely), the Collateral Agent
shall execute, acknowledge and deliver to the Company or such Guarantor such an
instrument in the form provided by the Company, and providing for release
without recourse and shall take such other action as the Company or such
Guarantor may reasonably request and as necessary to effect such release.

 

Section 12.5.                             Possession and
Use of Collateral.

 

Unless an Event of Default shall have occurred and
be continuing and the Collateral Agent shall have commenced enforcement of
remedies under the Security Documents, the Company will have the right to
remain in possession and retain exclusive control of the Collateral, to freely
operate the Collateral and to collect, invest and dispose of any income
thereon.

 

Section 12.6.                             Purchaser
Protected.

 

No purchaser or grantee of any property or rights
purporting to be released shall be bound to ascertain the authority of the
Collateral Agent to execute the release or to inquire as to the existence of
any conditions herein prescribed for the exercise of such authority so long as
the conditions set forth in Section 12.4 have been satisfied.

 

Section 12.7.                             Authorization
of Actions To Be Taken by the Collateral Agent Under the Security  Documents.

 

The Holders of Notes agree that the Collateral Agent
shall be entitled to the rights, privileges, protections, immunities,
indemnities and benefits provided to the Collateral Agent by the Security
Documents.  Furthermore, each Holder of a
Note, by accepting such Note, agrees, acknowledges and consents to the terms
(including, but not limited to, waivers, representations and covenants) of and
authorizes and directs the Trustee (in each of its capacities) and the
Collateral Agent to enter into and perform the Security Documents in each of
its capacities thereunder.

 

Section 12.8.                             Authorization
of Receipt of Funds by the Trustee Under the Security Agreement.

 

The Trustee is authorized to receive any funds for
the benefit of Holders distributed under the Security Documents to the Trustee,
to apply such funds as provided in Section 6.12.

 

Section 12.9.                             Powers
Exercisable by Receiver or Collateral Agent.

 

In case the Collateral shall be in the possession of
a receiver or trustee, lawfully appointed, the powers conferred in this Article XII
upon the Company or any Guarantor, as applicable, with respect to the release,
sale or other disposition of such property may be exercised by such receiver or
trustee, and an instrument signed by such receiver or trustee shall be deemed
the equivalent of any similar instrument of the Company or any Guarantor, as
applicable, or of any officer or officers thereof required by the provisions of
this Article XII.

 

82

 

Section 12.10.                       Ranking of
Liens.

 

(a)                                  Notwithstanding:

 

(i)                                     anything to the
contrary contained in the Security Documents;

 

(ii)                                  the time of
incurrence of any Series of Secured Debt;

 

(iii)                               the order or
method of attachment or perfection of any Liens securing any Series of
Secured Debt;

 

(iv)                              the time or
order of filing or recording of financing statements, mortgages or other
documents filed or recorded to perfect any Lien upon any Shared Collateral;

 

(v)                                 the time of
taking possession or control over any Shared Collateral;

 

(vi)                              that any Lien
securing the Credit Facility may not have been perfected or may be or have
become subordinated, by equitable subordination or otherwise, to any other
Lien; or

 

(vii)                           the rules for
determining priority under any law governing relative priorities of Liens,

 

(1)                                  all Liens upon
the Shared Collateral securing the Notes and the Guarantees at any time granted
by the Company or any other Pledgor will be subject and subordinate to all
Liens upon the Shared Collateral securing the Credit Facility up to the amount
permitted to be incurred under this Indenture; and

 

(2)                                  the Liens upon
the Notes Escrow Account (and the funds deposited therein) secure the Notes,
and no other person, other than the Trustee and the Holders of the Notes shall
have a security interest in the Notes Escrow Account of the funds deposited
therein.

 

(b)                           The provisions
under this Section 12.10 are intended for the benefit of, and will be
enforceable as a third party beneficiary by each present and future holder of
Credit Facility Obligations and each present and future Credit Facility Agent
as holder of Liens having priority over the Liens securing the Notes and the
Guarantees. No other Person will be entitled to rely on, have the benefit of or
enforce those provisions.

 

(c)                            In addition,
the provisions under this Section 12.10 are intended solely to set forth
the relative ranking, as Liens, of the Liens securing the Notes and the
Guarantees as against the Liens securing the Credit Facility. Neither the Notes
nor the exercise or enforcement of any right or remedy for the payment or
collection thereof are intended to be, or will ever be by reason of the
foregoing provision, in any respect subordinated, deferred, postponed, restricted
or prejudiced.

 

Section 12.11.                       Relative Rights.

 

Nothing in the Notes Documents will:

 

(a)                                  impair, as between Company
and the Holders of the Notes, the obligation of the Company to pay principal
of, and interest or premium, if any, on the Notes in accordance with their
terms or any other obligation of the Company or any other Pledgor;

 

83

 

(b)                                 affect the relative rights
of Holders of the Notes as against any other creditors of the Company or any
other Pledgor (other than, with respect to rights in the Shared Collateral,
holders of Liens securing the Credit Facility);

 

(c)                                  restrict the right of any
Holder of the Notes to sue for payments that are then due and owing (but not
enforce any judgment in respect thereof against any Shared Collateral to the
extent specifically prohibited by the provisions of Sections 3.4 and 3.8 of the
Intercreditor Agreement);

 

(d)                                 restrict or prevent any
Holder of the Notes from exercising any of its rights or remedies upon a
Default or Event of Default not specifically restricted or prohibited by the
provisions of Sections 3.4 and 3.8 of the Intercreditor Agreement; or

 

(e)                                  restrict or prevent any
Holder of the Notes from taking any lawful action in an insolvency or
liquidation proceeding not specifically restricted or prohibited by the
provisions of Sections 3.4 and 3.8 of the Intercreditor Agreement.

 

ARTICLE XIII.

 

 MISCELLANEOUS

 

Section 13.1.                             Trust Indenture
Act Controls.

 

If any provision hereof limits, qualifies or
conflicts with a provision of the TIA or another provision that would be
required or deemed under such Act to be part of and govern this Indenture if
this Indenture were subject thereto, the latter provision shall control.  If any provision of this Indenture modifies
or excludes any provision of the TIA that may be so modified or excluded or if
the Indenture is not required to comply with the TIA, the latter provision
shall be deemed to apply to this Indenture as so modified or to be excluded, as
the case may be.  Notwithstanding the
foregoing, the Company will comply with the provisions of TIA § 314.  In addition, to the extent applicable, the
Company will cause TIA § 313(b), relating to reports, and TIA § 314(d),
relating to the release of property or securities subject to the Lien of the
Collateral Documents, to be complied with. 
Any certificate or opinion required by TIA § 314(d) may be made by
an officer of the Company except in cases where TIA § 314(d) requires that
such certificate or opinion be made by an independent Person, which Person will
be an independent engineer, appraiser or other expert selected by or reasonably
satisfactory to the trustees. 
Notwithstanding anything to the contrary in this paragraph, the Company
will not be required to comply with all or any portion of TIA § 314(d) if
it determines, in good faith based on advice of counsel, that under the terms
of TIA §314(d) and/or any interpretation or guidance as to the meaning
thereof of the Commission and its staff, including “no action” letters or
exemptive orders, all or any portion of TIA §314(d) is inapplicable to one
or a series of released Collateral.

 

Section 13.2.                             Notices.

 

Any notice or communication by the Company or the
Trustee to others is duly given if in writing and delivered in Person or mailed
by first class mail (registered or certified, return receipt requested), telex,
telecopier or overnight air courier guaranteeing next day delivery, to the
others’ address:

 

If to the Company:

 

MxEnergy Holdings Inc.

595 Summer Street

Stamford, CT  06901

Attention:  Chief Financial
Officer

 

84

 

With a copy to:

 

Paul, Hastings, Janofsky & Walker LLP

75 East 55th Street

New York, New York  10022

Attention:  Michael Chernick

 

If to the Trustee:

 

Law Debenture Trust Company of New York

400 Madison Avenue

4th Floor 

New York, NY 10017

Attention:  Corporate Trust Department

 

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

 

All notices and communications (other than those
sent to Holders) shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed, or in the case of any offer to purchase Notes under Section 3.9,
3.10 or 3.11 upon the date the communication is postmarked; when answered back,
if telexed; when receipt acknowledged, if telecopied; and the next Business Day
after timely delivery to the courier, if sent by overnight air courier guaranteeing
next day delivery, except that notices to the Trustee shall be effective only
upon receipt.

 

Any notice or communication to a Holder shall be
mailed by first class mail, certified or registered, return receipt requested,
or by overnight air courier guaranteeing next day delivery to its address shown
on the register kept by the Registrar. 
Any notice or communication shall also be so mailed to any Person described
in TIA § 313(c), to the extent required by the TIA.  Failure to mail a notice or communication to
a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

 

If a notice or communication is mailed in the manner
provided above within the time prescribed, it is duly given, whether or not the
address receives it.

 

If the Company mails a notice or communication to
Holders, it shall mail a copy to the Trustee and each Agent at the same time.

 

Section 13.3.                             Communication
by Holders of Notes with Other Holders of Notes.

 

Holders may communicate pursuant to TIA § 312(b) with
other Holders with respect to their rights under this Indenture or the Notes.  The Company, the Trustee, the Registrar and
anyone else shall have the protection of TIA § 312(c).

 

Section 13.4.                             Certificate and
Opinion as to Conditions Precedent.

 

Upon any request or application by the Company
and/or any Guarantor to the Trustee to take any action under this Indenture,
the Company and/or any Guarantor shall furnish to the Trustee:

 

(a)                            an Officers’
Certificate in form and substance reasonably satisfactory to the Trustee (which
shall include the statements set forth in Section 13.5) stating that, in
the opinion of the signers, all conditions 

 

85

 

precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

 

(b)                           if requested by
the Trustee, an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in Section 13.5)
stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been satisfied.

 

Section 13.5.                             Statements
Required in Certificate or Opinion.

 

Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (other
than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with
the provisions of TIA § 314(e) and shall include:

 

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

 

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

 

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

 

(d)                           a statement as
to whether or not, in the opinion of such Person, such condition or covenant
has been satisfied.

 

Section 13.6.                             Rules by
Trustee and Agents.

 

The Trustee may make reasonable rules for
action by or at a meeting of Holders. 
The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

 

Section 13.7.                             No Personal
Liability of Directors, Officers, Employees and Stockholders.

 

No past, present or future director, officer,
employee, incorporator, agent or stockholder or Affiliate of the Company, as
such, shall have any liability for any obligations of the Company under the
Notes, the Security Documents or this Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  No past, present or future director, officer,
employee, incorporator, agent or stockholder or Affiliate of any of the
Guarantors, if any, as such, shall have any liability for any obligations of
the Guarantors under the Guarantees, the Security Documents or this Indenture
or for any claim based on, in respect of, or by reason of, such obligations or
their creation.  Each Holder of Notes and
Guarantees by accepting a Note and a Guarantee waives and releases all such
liabilities.  The waiver and release are
part of the consideration for issuance of the Notes and the Guarantees.  Such waiver may not be effective to waive
liabilities under the federal securities law and it is the view of the Commission
that such a waiver is against public policy.

 

Section 13.8.                             Governing Law;
Submission to Jurisdiction; Waiver of Jury Trial.

 

THE VALIDITY AND INTERPRETATION OF THIS INDENTURE,
THE GUARANTEES AND THE NOTES 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 LAW OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
EACH PARTY HERETO AGREES TO 

 

86

 

SUBMIT TO THE JURISDICTION
OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF
NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY
OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE GUARANTEES AND THE NOTES, AND IRREVOCABLY
ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY,
JURISDICTION OF THE AFORESAID COURTS IN RESPECT OF SUCH SUIT OR ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES AND THE
GUARANTEES.  EACH OF THE TRUSTEE, THE
COMPANY AND ANY GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT THAT IT MAY EFFECTIVELY
DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  Nothing herein shall affect the right of the
Trustee or any Holder of the Notes to serve process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against
the Company or any Guarantor in any other jurisdiction.

 

Section 13.9.                             No Adverse
Interpretation of Other Agreements.

 

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

 

Section 13.10.                       Successors.

 

All agreements of the Company and any Guarantor in
this Indenture and the Notes and Guarantees shall bind their successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

 

Section 13.11.                       Severability.

 

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

 

Section 13.12.                       Counterpart
Originals.

 

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

 

Section 13.13.                       Table of
Contents, Headings, Etc.

 

The Table of Contents, Cross-Reference Table and
headings of the Articles and Sections of this Indenture, which have been
inserted for convenience of reference only, are not to be considered a part of
this Indenture and shall in no way modify or restrict any of the terms or
provisions hereof.

 

Section 13.14.                       Intercreditor
Agreement.

 

This Indenture, the Notes, the Guarantees, the
Security Documents, the Trustee, the Collateral Agent and the Holders are
subject to and bound by the terms of the Intercreditor Agreement, including,
without limitation, Section 3.1 thereof.

 

87

 

Section 13.15.                       Notes Escrow
Agreement.

 

The Trustee, the Collateral Agent and the Holders
shall be entitled to the rights and benefits of, and be subject to the
obligations contained in, the Notes Escrow Agreement.

 

Section 13.16.                       Qualification
of Indenture.

 

The Company shall qualify this Indenture under the
TIA in accordance with the terms and conditions of the Registration Rights
Agreement and shall pay all reasonable costs and expenses (including attorneys’
fees for the Company, the Trustee and the Holders) incurred in connection
therewith, including, but not limited to, costs and expenses of qualification
of this Indenture and the Notes and printing this Indenture and the Notes.  The Trustee shall be entitled to receive from
the Company any such Officers’ Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.

 

[Signatures
on following page]

 

88

 

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

 

	
   

  	
  MXENERGY
  HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:

  	
  Jeffrey
  A. Mayer

  
	
   

  	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY
  CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY
  CAPITAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ONLINE
  CHOICE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY
  GAS CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  
					

 

 

	
   

  	
  MXENERGY
  ELECTRIC CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY
  SERVICES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INFOMETER.COM
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY
  GAS CAPITAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY
  ELECTRIC CAPITAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  

 

 

	
   

  	
  MXENERGY
  ELECTRIC INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
  Title:
  President

  

 

 

	
   

  	
  LAW DEBENTURE TRUST COMPANY OF NEW YORK

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Anthony A. Bocchino

  
	
   

  	
   

  	
  Name:

  	
  Anthony
  a. Bocchino

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

EXHIBIT A

 

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

 

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

 

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

 

FORM OF 13.25% SENIOR SUBORDINATED SECURED NOTE
DUE 2014

 

(Face of Note)

 

MXENERGY HOLDINGS INC.

 

13.25% SENIOR SUBORDINATED SECURED NOTE DUE 2014

 

	
   

  	
   

  	
  CUSIP
  No. [               ]

  
	
   

  	
   

  	
   

  
	
  No.

  	
   

  	
  $

  

 

Interest
Payment Dates:  February 1 and August 1 of each year, commencing
on February 1, 2010

 

Record
Dates:  January 15 and July 15

 

MXENERGY
HOLDINGS INC., a Delaware corporation (the “Company,” which term includes any
successor corporation under the indenture hereinafter referred to), for value
received, promises to pay to
[                  ],
or registered assigns the principal sum of
$                      
on August 1, 2014.

 

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

 

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

 

 

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

 

	
   

  	
  Dated:

  
	
   

  	
   

  
	
   

  	
  MXENERGY HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  

 

	
  This
  is one of the Notes referred to

  	
   

  
	
  in
  the within-mentioned Indenture:

  	
   

  
	
   

  	
   

  
	
  LAW DEBENTURE TRUST
  COMPANY OF NEW YORK,

  	
   

  
	
  as
  Trustee

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

 

(Back of Note)

 

13.25% Senior Subordinated Secured Note due 2014

 

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

 

1.             Interest.  The Company promises to pay interest on the
principal amount of this Note at the rate of 13.25% per annum from the date of
original issuance until maturity and shall pay Additional Interest pursuant to Section 5
of the Registration Rights Agreement referred to below.  The Company will pay interest and Additional
Interest semi-annually in cash on February 1 and August 1 of each
year, commencing February 1, 2010, or if any such day is not a Business
Day, on the next succeeding Business Day (each an “Interest Payment Date”).  Interest on this Note will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from the date of issuance; provided that
if there is no existing Default in the payment of interest, and if this Note is
authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided, further,
that the first Interest Payment Date with respect to a Note issued on the Issue
Date shall be February 1, 2010.  The
Company shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue payments of the principal, Purchase Price
and Redemption Price of this Note from time to time on demand at a rate that is
2% per annum in excess of the rate then in effect; it shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest and Additional Interest, if any (without
regard to any applicable grace periods), hereon from time to time on demand at
the same rate to the extent lawful. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.

 

2.             Method of Payment.  The Company will pay interest on the Notes (except
defaulted interest) and Additional Interest, if any, to the Persons who are
registered Holders of Notes at the close of business on January 15 and July 15
next preceding the Interest Payment Date, even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted
interest.  Any such installment of
interest or Additional Interest, if any, not punctually paid or duly provided
for shall forthwith cease to be payable to the registered Holders on such
Interest Payment Date, and may be paid to the registered Holders at the close
of business on a special interest payment date to be fixed by the Trustee for
the payment of such defaulted interest, notice whereof shall be given to the
registered Holders not less than 10 days prior to such special interest payment
date, or may be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture.  The
Notes will be payable as to principal, Redemption Price, Purchase Price,
interest and Additional Interest, if any, at the office or agency of the
Company maintained for such purpose within or without the City and State of New
York, or, at the option 

 

 

of the Company, payment of
interest and Additional Interest may be made by check mailed to the Holders at
their addresses set forth in the register of Holders, provided that payment by
wire transfer of immediately available funds will be required with respect to
principal, Redemption Price and Purchase Price of, and interest and Additional
Interest (if any) on, all Global Notes and all other Notes the Holders of which
shall have provided wire transfer instructions to the Trustee or the Paying
Agent.  Such payment shall be in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

 

3.             Paying Agent and Registrar.  Initially, Law Debenture Trust Company of New
York, the Trustee under the Indenture, will act as Paying Agent and
Registrar.  The Company may change any
Paying Agent or Registrar without prior notice to any holder of Notes.  The Company may act in any such capacity.

 

4.             Indenture and Guarantees.  The Company issued the $67,751,000 aggregate
principal amount of the Notes under an Indenture dated as of September 22,
2009 (the “Indenture”) among the Company, the Guarantors party thereto
from time to time and the Trustee.  The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939, as amended (15
U.S.C. Code §§ 77aaa-77bbbb).  The
Notes are subject to all such terms, and Holders are referred to the Indenture
and such Act for a statement of such terms. 
The Notes are general obligations of the Company.  Payment on each Note is guaranteed on a
senior subordinated secured basis, jointly and severally, by the Guarantors
pursuant to Article X of the Indenture.

 

The Notes and the Guarantees of any Guarantor are
subordinated in right of payment to the Credit Facility Obligations. Each
Holder by his acceptance hereof agrees to be bound by such provisions and
authorizes and expressly directs the Trustee, on his behalf, to take such
actions as may be necessary or appropriate to effectuate the subordination
provided for in the Indenture and appoints the Trustee as his attorney-in-fact
for such purposes.

 

5.             Optional Redemption. Except as described in
paragraph 6 below, the Notes are not redeemable before August 1,
2011.  Thereafter, the Company may redeem
the Notes at its option, in whole or in part, upon not less than 30 nor more
than 60 days’ notice, at the following redemption prices (expressed as percentages
of the principal amount thereof) if redeemed during the twelve-month period
commencing on August 1 of the year set forth below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  106.625

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2012

  	
   

  	
  103.313

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2013 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

 

In addition, the Company must pay accrued and
unpaid interest on the Notes redeemed.

 

6.             Optional Redemption Upon Equity Offerings.  At any time, or from time to time, on or
prior to August 1, 2011, the Company may, at its option, use the net cash
proceeds of one or more Equity Offerings of the Company to redeem (a “Special
Redemption”) either (1) 100% of the principal amount of the Notes issued
under the Indenture or (2) up to 35% of the principal amount of the Notes
issued under the Indenture at a redemption price of 113.250% of the principal
amount thereof, plus accrued and unpaid interest thereon, if any, to the Redemption
Date; provided that:

 

·                     if the Company redeems less
than all of the Notes, at least 65% of the principal amount of Notes issued
under the Indenture remains outstanding immediately after any such Special
Redemption; and

 

·                     the Company makes such
Special Redemption not more than 90 days after the consummation of any such
Equity Offering.

 

7.             Mandatory Redemption.  Except as set forth in Paragraph 9 below with
respect to repurchases of Notes in certain events, the Company shall not be
required to make mandatory redemption or repurchase payments with respect to
the Notes.

 

8.             Selection and Notice of Redemption.  Subject to the provisions of the Indenture,
if the Company elects to redeem the Notes pursuant to the provisions of Section 3.7
or 3.8 of the Indenture, the Company shall furnish to the Trustee, at least 30
days but not more than 60 days before the Redemption Date (unless a shorter
notice period shall be satisfactory to the Trustee), an Officers’ Certificate
setting forth the Section of the Indenture pursuant to which the redemption
shall occur, the Redemption Date, the principal amount of Notes to be redeemed
and the Redemption Price.  Notes and
portions thereof selected shall be in amounts of $1,000 or integral multiples
of $1,000; except that if all of the Notes of a Holder are to be redeemed, the
entire outstanding amount of Notes held by such Holder, even if not a multiple
of $1,000, shall be redeemed.  No Notes
of a principal amount of $1,000 or less shall be redeemed in part.

 

If less than all of the Notes are to be redeemed,
the Trustee shall select the Notes or portions thereof to be redeemed in
compliance with the requirements of the principal national securities exchange,
if any, on which the Notes are listed; or if the Notes are not listed on any
national securities exchange, on a pro rata basis,
by lot or by such method as the Trustee shall deem fair and appropriate.

 

9.             Repurchase at Option of Holder.

 

(a)           Upon
the occurrence of certain events, the Company may be required to commence an
Offer to Purchase pursuant to a Change of Control Offer or a Net Proceeds Offer.

 

 

(b)           Holders
of the Notes that are the subject of a Change of Control Offer or a Net
Proceeds Offer will receive notice of the Change of Control Offer or Net
Proceeds Offer from the Company prior to any related Purchase Date and may
elect to have such Notes purchased by completing the form titled “Option of
Holder to Elect Purchase” appearing below.

 

10.           Denominations, Transfer, Exchange.  The Notes are in registered form without coupons
in denominations of $1,000 and integral multiples of $1,000.  The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. 
Neither the Company nor the Registrar shall be required:

 

(1)           to issue, to
register the transfer of or to exchange Notes during a period beginning at the
opening of business 15 days before the day of any selection of Notes for
redemption under Section 3.2 of the Indenture and ending at the close of
business on the day of selection; or

 

(2)           to register the
transfer of or to exchange any Note selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part; or

 

(3)           to register the
transfer of or to exchange a Note between a record date and the next succeeding
interest payment date.

 

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

 

12.           Amendment, Supplement and Waiver.  Except as provided in Section 9.2 of the
Indenture, the Company, the Trustee (including in its capacity as Collateral
Agent) and the Guarantors may amend or supplement the Indenture, the Security
Documents or the Notes with the consent of the Holders of at least a majority
in principal amount of the Notes then outstanding (including, without
limitation, consents obtained in connection with a tender offer or exchange
offer for the Notes), and, subject to Sections 6.2, 6.4 and 6.7 of the
Indenture, any existing Default or Event of Default or compliance with any
provision of this Indenture or the Notes may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Notes
(including consents obtained in connection with a tender offer or exchange
offer for the Notes).

 

Notwithstanding Section 9.2 of the Indenture,
from time to time, the Company, the Guarantors and the Trustee (including in
its capacity as Collateral Agent) may amend or supplement this Indenture, the
Security Documents, or the Notes without the consent of any Holder of a Note:

 

 

(b)         to cure any ambiguity,
omission, defect or inconsistency so long as such change does not, in the
opinion of the Trustee, adversely affect the rights of any of the Holders in
any material respect.

 

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

 

(d)         to provide for the
assumption of the Company’s obligations to Holders of the Notes in case of a
merger or consolidation or sale of all or substantially all of the Company’s
assets pursuant to Article V hereof;

 

(e)         if applicable, to comply
with the requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the TIA;

 

(f)          to add or release the
Guarantees of Guarantors in compliance with this Indenture and add or release
assets as Collateral in accordance with this Indenture and the Security
Documents; or

 

(g)         to make any change that
would provide any additional rights or benefits to the Holders of the Notes.

 

13.           Defaults and Remedies. Events
of Default include: (1) the failure to pay interest on any Notes when the
same becomes due and payable and the default continues for a period of 30 days,
provided that, if the Discharge of Credit Facility Obligations has not yet occurred,
no Event of Default shall be deemed to occur under this clause (1) if the
funds then available in the Notes Escrow Account are at least equal to the then
required Notes Escrow Amount; (2) the Trustee uses funds from the Notes
Escrow Account to make a payment of interest or related tax gross-up amount
payable pursuant to a Tax Agreement on any Notes and the Company fails to “top
up” the Notes Escrow Account to the then required Notes Escrow Amount within 2
Business Days thereafter; (3) the failure to pay the principal on any
Notes, when such principal becomes due and payable, at maturity, upon redemption
or otherwise (including the failure to make a payment to purchase Notes
tendered pursuant to a Change of Control Offer or a Net Proceeds Offer); (4) a
default in the observance or performance of any other covenant or agreement
contained in this Indenture or the Security Documents which default continues
for a period of 45 days after the Company receives written notice specifying
the default (and demanding that such default be remedied) from the Trustee or
the Holders of at least 25% of the outstanding principal amount of the Notes
provided that, if the Discharge of Credit Facility Obligations has occurred, a
default with respect to Section 5.1 or Section 4.12 of the Indenture,
will constitute an Event of Default without such notice requirement or such
passage of time requirement; (5) the failure to pay at final maturity
(giving effect to any applicable grace periods and any extensions thereof) the
stated principal amount of any Indebtedness, including, for the avoidance of
doubt, the Credit Facility Obligations, of the Company or any of its Restricted
Subsidiaries, or the acceleration of the final stated maturity of any such
Indebtedness if the aggregate principal amount of such Indebtedness, together
with the principal amount of any other such Indebtedness in payment default or
which has been accelerated aggregates $2.0 million or more at any time;
provided, that if such failure

 

 

to pay relates to
Indebtedness in aggregate principal amount of less than $10.0 million and shall
be remedied, waived or extended, then any Default or Event of Default hereunder
shall be deemed likewise to be remedied, waived or extended to the extent such
remedy, waiver or extension occurs prior to the acceleration of the Notes and,
if the Discharge of Credit Facility Obligations has not yet occurred, such
failure continues for a period of 45 days; (6) one or more judgments in an
aggregate amount in excess of $2.0 million shall have been rendered
against the Company or any of its Restricted Subsidiaries and such judgments
remain undischarged, unpaid or unstayed for a period of 60 days after such
judgment or judgments become final and non-appealable; (7) certain events
of bankruptcy affecting the Company or any of its Significant Subsidiaries; (8) any
Guarantee of a Significant Subsidiary ceases to be in full force and effect or
is declared to be null and void and unenforceable or is found to be invalid or
any Guarantor that is a Significant Subsidiary denies its liability under its
Guarantee (other than by reason of release of a Guarantor in accordance with
the terms of the Indenture) or the Company or any Guarantor that is a
Significant Subsidiary denies the validity of the Liens created pursuant to the
Security Documents (other than by reason of a release of such Liens in accordance
with the terms of the Indenture), and, if the Discharge of Credit Facility
Obligations has not yet occurred, such failure continues for a period of 45
days; or (9) any Lien purported to be created by any Security Document
shall cease to be a valid and enforceable Lien except in accordance with the
Security Documents and such failure continues for a period of 45 days after the
Company receives written notice specifying the failure (and demanding that such
failure be remedied) from the Trustee or the Holders of at least 40% of the
outstanding principal amount of the Notes.

 

14.           Trustee Dealings with Company. 
Subject to certain limitations, the Trustee under the Indenture, in its
individual or any other capacity, may become owner or pledgee of Notes and may
otherwise deal with the Company or its Affiliates as if it were not Trustee.

 

15.           Intercreditor Agreement.  The Indenture, the Notes, the Guarantees, the
Security Documents, the Trustee, the Collateral Agent and the Holders are
subject to and bound by the terms of the Intercreditor Agreement, including,
without limitation, Section 3.1 thereof.

 

16.           Notes
Escrow Agreement.  The Trustee, the
Collateral Agent and the Holders shall be entitled to the rights and benefits
of, and be subject to the obligations contained in, the Notes Escrow Agreement.

 

17.           No
Recourse Against Others.  No past,
present or future director, officer, employee, incorporator or stockholder of
the Company, as such, shall have any liability for any obligations of the Company
under the Notes or the Indenture or for any claim based on, in respect of, or
by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and
releases all such liability.  The waiver
and release are part of the consideration for the issuance of the Notes.

 

 

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

 

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

 

20.           Discharge Prior to Maturity.  If the Company deposits with the Trustee or
Paying Agent cash or Government Securities sufficient to pay the principal or
Redemption Price of, and interest and Additional Interest, if any, on, the
Notes to maturity or a specified Redemption Date and satisfies certain conditions
specified in the Indenture, the Company will be discharged from the Indenture,
except for certain Sections thereof.

 

21.           Governing Law. 
The validity and interpretation of the Indenture, the Guarantees and
this Note 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 law of another
jurisdiction would be required thereby. 
Each party hereto agrees to submit to the jurisdiction of any New York
state court sitting in the Borough of Manhattan in the City of New York or any
federal court sitting in the Borough of Manhattan in the City of New York in
respect of any suit, action or proceeding arising out of or relating to the
Indenture, the Guarantees and the Notes, and irrevocably accepts for itself and
in respect of its property, generally and unconditionally, jurisdiction of the
aforesaid courts in respect of such suit or action or proceeding arising out of
or relating to the Indenture, the Notes and the Guarantees.  Each of the Trustee, the Company and any
Guarantor irrevocably waives, to the fullest extent that it may effectively do
so under applicable law, trial by jury and any objection which it may now or
hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient
forum.

 

22.           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 Notes and the Trustee may use CUSIP numbers in notices of redemption
as a convenience to Holders.  No
representation is made as to the correctness or accuracy of such numbers either
as printed on the Notes or as contained in any notice of redemption or
repurchase and reliance may be placed only on the other identification numbers
placed thereon.

 

23.           Registration Rights.  Pursuant to a registration rights agreement,
the Company will be obligated upon the occurrence of certain events to
consummate an exchange offer pursuant to which the Holder of this Note shall
have the right to exchange this Note for an Exchange Note, which have been
registered under the Securities Act, in like principal amount and having terms
identical in all material respects as the Notes.  The Holders shall be entitled to receive
certain additional interest payments in the event such exchange offer is not 

 

 

consummated and upon certain
other conditions, all pursuant to and in accordance with the terms of such
registration rights agreement.

 

24.           Additional
Interest.  The Trustee is not
responsible for ascertaining if there is any payment for Additional Interest in
accordance with the Registration Rights Agreement.  If Additional Interest is to be paid, the
Company will provide the Trustee with an Officers’ Certificate, on or before
the relevant record date for payment of interest setting forth the amount of
Additional Interest and the calculation of the rate per $1,000.

 

The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture.  Request
may be made to:

 

MxEnergy Holdings Inc.

595 Summer Street

Stamford, CT  06901

Attention:  Chief Financial Officer

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

(I) or (we) assign and transfer this Note to

 

	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  

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

 

and irrevocably appoint                                                                                                                                           agent
to transfer this Note 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 face of
  this Note)

  
	
   

  	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  	
  Participant in a recognized Signature Guarantee
  Medallion Program (or other signature guarantor acceptable to the Trustee)

  
							

 

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you wish to elect to have all or any portion of
this Note purchased by the Company pursuant to Section 4.10 (“Net
Proceeds Offer”) or Section 4.15 (“Change of Control Offer”) of
the Indenture, check the applicable boxes

 

	
  o Net Proceeds
  Offer:

  	
   

  	
  o Change of
  Control Offer:

  
	
   

  	
   

  	
   

  
	
  in
  whole

  	
  o

  	
  in
  whole

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  in
  part

  	
  o

  	
  in
  part

  	
  o

  
	
   

  	
   

  	
   

  
	
  Amount
  to be

  purchased: $              

  	
   

  	
  Amount
  to be

  purchased: $            

  
					

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  Signature:  

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on the 

  other side of this Note)

  

 

 

	
  Tax
  Identification No.:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
  Participant
  in a recognized Signature Guarantee Medallion Program (or other signature
  guarantor acceptable to the Trustee

  
	
   

  
				

 

Social Security Number or

Taxpayer Identification Number:

 

 

SCHEDULE OF EXCHANGES OF NOTES

 

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

 

	
  Date of Exchange

  	
   

  	
  Amount
  of decrease

  in Principal Amount

  of this Global Note

  	
   

  	
  Amount
  of increase

  in Principal Amount

  of this Global Note

  	
   

  	
  Principal
  Amount of

  this Global Note

  following such

  decrease (or

  increase)

  	
   

  	
  Signature
  of

  authorized officer of Trustee or Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT B

 

FORM OF GUARANTEE

 

For value received, [each of] the undersigned hereby
unconditionally guarantees to the Holder of this Note the cash payments in
United States dollars of principal of, premium, if any, interest on this Note
(and including Additional Interest payable thereon) in the amounts and at the
times when due and interest on the overdue principal, premium, if any, and any
tax gross-up amounts payable under a Tax Agreement, if lawful, and the payment
or performance of all other Notes Obligations of the Company under the
Indenture (as defined below) or this Note, to the Holder of this Note and the
Trustee, all in accordance with and subject to the terms and limitations of
this Note, Article X of the Indenture and this Guarantee.  The validity and enforceability of this Guarantee
shall not be affected by the fact that it is not affixed to any particular
Note.  Capitalized terms used but not
defined herein shall have the meanings ascribed to them in the Indenture dated
as of September 22, 2009, among MxEnergy Holdings Inc., a Delaware
corporation, as issuer (the “Company”), the guarantors party thereto,
from time to time, and Law Debenture Trust Company of New York, as trustee (the
“Trustee”) (as amended or supplemented, the “Indenture”).

 

THIS GUARANTEE 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 LAW OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.  Each
Guarantor hereby agrees to submit to the jurisdiction of the courts of the
State of New York in any action or proceeding arising out of or relating to
this Guarantee.

 

B-1

 

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

 

	
   

  	
  MXENERGY CAPITAL
  HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ONLINE CHOICE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY GAS CAPITAL
  HOLDINGS

  
	
   

  	
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-2

 

	
   

  	
  MXENERGY
  ELECTRIC CAPITAL

  
	
   

  	
  HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY SERVICES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INFOMETER.COM INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY GAS
  CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY
  ELECTRIC CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-3

 

	
   

  	
  MXENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-4

 

EXHIBIT C

 

FORM OF
CERTIFICATE OF TRANSFER

 

MxEnergy
Holdings Inc.

595
Summer Street

Stamford,
CT 06901

 

Law
Debenture Trust Company of New York

400 Madison Avenue

4th Floor 

New York, NY 10017

Attention:  Corporate Trust Department

 

Re:                               13.25% Senior
Subordinated Secured Notes due 2014 (the “Notes”)

 

Reference is hereby made
to the Indenture, dated as of September 22, 2009 (the “Indenture”), among MxEnergy Holdings Inc.,
as issuer (the “Company”), the
Guarantors party thereto, and Law Debenture Trust Company of New York, as
Trustee.  Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

 

, (the “Transferor”) owns and proposes to transfer
the Notes[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount of
$                      
in such Note[s] or interests (the “Transfer”),
to
                                                      
(the “Transferee”), as further
specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.            
o           
Check if Transferee will take delivery of
a beneficial interest in the 144A Global Note or a Restricted Definitive Note
pursuant to Rule 144A. The Transfer is being effected pursuant
to and in accordance with Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect
to which such Person exercises sole investment discretion, and such Person and
each such account is a “qualified institutional buyer” within the meaning of Rule 144A
in a transaction meeting the requirements of Rule 144A, and such Transfer
is in compliance with any applicable blue sky securities laws of any state of
the United States. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the 144A Global Note and/or the
Restricted Definitive Note and in the Indenture and the Securities Act.

 

2.             o           
Check if Transferee will take delivery of
a beneficial interest in the Regulation S Global Note or a Restricted
Definitive Note pursuant to Regulation S. The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904
under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a Person in the
United States and (x) at the time the buy order was originated, the
Transferee was outside the United States or such Transferor and any Person
acting on its behalf reasonably believed and believes that the Transferee was
outside the United States or (y) the transaction was executed in, on or
through the facilities of a designated offshore securities market and neither
such Transferor nor any Person acting on its behalf knows that the transaction
was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule 903(b) or
Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the 

 

C-1

 

registration requirements of the Securities Act and (iv) if
the proposed transfer is being made prior to the expiration of the Distribution
Compliance Period under Regulation S, the transfer is not being made to a U.S.
Person or for the account or benefit of a U.S. Person. Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on Transfer enumerated in the Private Placement Legend printed on
the Regulation S Global Note and/or the Restricted Definitive Note and in the
Indenture and the Securities Act.

 

3.             o           
Check and complete if Transferee will take
delivery of a beneficial interest in the AI Global Note or a Restricted
Definitive Note pursuant to any provision of the Securities Act other than Rule 144A
or Regulation S. The Transfer is being effected in compliance
with the transfer restrictions applicable to beneficial interests in Restricted
Global Notes and Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act and any applicable blue sky securities laws of any
state of the United States, and accordingly the Transferor hereby further
certifies that (check one):

 

(a)          
o           
such Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act;

 

or

 

(b)          
o           
such Transfer is being effected to the Company or a Subsidiary thereof;

 

or

 

(c)          
o           
such Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act;

 

or

 

(d)          
o           
such Transfer is being effected to an Accredited Investor and pursuant to an exemption
from the registration requirements of the Securities Act other than Rule 144A,
Rule 144, Rule 903 or Rule 904, and the Transferor hereby
further certifies that it has not engaged in any general solicitation within
the meaning of Regulation D under the Securities Act and the Transfer complies
with the transfer restrictions applicable to beneficial interests in a
Restricted Global Note or Restricted Definitive Notes and the requirements of
the exemption claimed, which certification is supported by (1) a
certificate executed by the Transferee in the form of Exhibit E to the
Indenture and (2) if such Transfer is in respect of a principal amount of
Notes at the time of transfer of less than $250,000, an Opinion of Counsel
provided by the Transferor or the Transferee (a copy of which the Transferor
has attached to this certification), to the effect that such Transfer is in
compliance with the Securities Act. Upon consummation of the proposed transfer
in accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the AI Global Note and/or the
Restricted Definitive Notes and in the Indenture and the Securities Act.

 

4.             o           
Check if Transferee will take delivery of
a beneficial interest in an Unrestricted Global Note or of an Unrestricted
Definitive Note.

 

(a)          
o           
Check if Transfer is pursuant to Rule 144.
(i) The Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the 

 

C-2

 

terms of the Indenture,
the transferred beneficial interest or Definitive Note will no longer be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the Restricted Global Notes, on Restricted Definitive Notes
and in the Indenture.

 

(b)          
o           
Check if Transfer is Pursuant to Regulation S.
(i) The Transfer is being effected pursuant to and in accordance with Rule 903
or Rule 904 under the Securities Act and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will no
longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

 

(c)          
o           
Check if Transfer is Pursuant to Other
Exemption. (i) The Transfer is being effected pursuant to and
in compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in
compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act. Upon consummation of the proposed Transfer in accordance with the terms of
the Indenture, the transferred beneficial interest or Definitive Note will not
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the Restricted Global Notes or Restricted Definitive Notes
and in the Indenture.

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company.

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  

 

C-3

 

ANNEX A TO
CERTIFICATE OF TRANSFER

 

1. 
The Transferor owns and proposes to transfer the following:

 

[CHECK ONE OF (a) OR
(b)]

 

(a)               o         a
beneficial interest in the:

 

(i)                 o              
144A Global Note (CUSIP
                  ),
or

 

(ii)              o              
Regulation S Global Note (CUSIP
                  ),
or

 

(iii)           o              
AI Global Note (CUSIP
                  );
or

 

(b)              a Restricted Definitive Note.

 

2.  After the
Transfer the Transferee will hold:

 

[CHECK ONE]

 

(a)               a beneficial interest in the:

 

(i)                 o              
144A Global Note (CUSIP
                  ),
or

 

(ii)              o              
Regulation S Global Note (CUSIP
                  ),
or

 

(iii)           o              
AI Global Note (CUSIP
                  );
or

 

(iv)          o              
Unrestricted Global Note (CUSIP
                  );
or

 

(b)              o         a
Restricted Definitive Note; or

 

(c)               o         an
Unrestricted Definitive Note,

 

in accordance with the
terms of the Indenture.

 

C-4

 

EXHIBIT D

 

FORM OF CERTIFICATE OF EXCHANGE

 

MxEnergy
Holdings Inc.

595
Summer Street

Stamford,
CT 06901

 

Law
Debenture Trust Company of New York

400 Madison Avenue

4th Floor 

New York, NY 10017

Attention:  Corporate Trust Department

 

Re:                               13.25% Senior
Subordinated Secured Notes due 2014 (the “Notes”)

 

(CUSIP
                        )

 

Reference is hereby made
to the Indenture, dated as of September 22, 2009 (the “Indenture”), among MxEnergy Holdings Inc.,
as issuer (the “Company”), the
Guarantors party thereto, and Law Debenture Trust Company of New York, as
Trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

 

, (the “Owner”) owns and proposes to exchange the
Note[s] or interest in such Note[s] specified herein, in the principal amount
of
$                        
in such Note[s] or interests (the “Exchange”). In connection with the
Exchange, the Owner hereby certifies that:

 

1.            
Exchange of Restricted Definitive Notes or
Beneficial Interests in a Restricted Global Note for Unrestricted Definitive
Notes or Beneficial Interests in an Unrestricted Global Note

 

(a)          
o           
Check if Exchange is from beneficial interest
in a Restricted Global Note to beneficial interest in an Unrestricted Global
Note. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for a beneficial interest in an
Unrestricted Global Note in an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and
pursuant to and in accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest in an Unrestricted Global Note is being
acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

 

(b)           o           
Check if Exchange is from beneficial interest
in a Restricted Global Note to Unrestricted Definitive Note. In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the
Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

D-1

 

(c)          
o           
Check if Exchange is from Restricted
Definitive Note to beneficial interest in an Unrestricted Global Note.
In connection with the Owner’s Exchange of a Restricted Definitive Note for a
beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to
and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

 

(d)          
o           
Check if Exchange is from Restricted
Definitive Note to Unrestricted Definitive Note. In connection with
the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Unrestricted
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

 

2.            
Exchange of Restricted Definitive Notes or
Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes
or Beneficial Interests in Restricted Global Notes

 

(a)          
o           
Check if Exchange is from beneficial interest
in a Restricted Global Note to Restricted Definitive Note. In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a Restricted Definitive Note with an equal principal amount,
the Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer. Upon consummation of the
proposed Exchange in accordance with the terms of the Indenture, the Restricted
Definitive Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Definitive Note and in the Indenture and the Securities Act.

 

(b)           o           
Check if Exchange is from Restricted
Definitive Note to beneficial interest in a Restricted Global Note.
In connection with the Exchange of the Owner’s Restricted Definitive Note for a
beneficial interest in the [CHECK ONE] o 144A Global Note, o
Regulation S Global Note, o AI Global Note with an equal principal
amount, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer and (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance
with the Securities Act, and in compliance with any applicable blue sky
securities laws of any state of the United States. Upon consummation of the
proposed Exchange in accordance with the terms of the Indenture, the beneficial
interest issued will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the relevant Restricted Global Note and
in the Indenture and the Securities Act.

 

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company.

 

 

	
   

  	
   

  
	
   

  	
  [Insert Name of
  Transferor]

  

 

D-2

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
					

 

D-3

 

EXHIBIT E

 

FORM OF
CERTIFICATE OF ACQUIRING ACCREDITED INVESTOR

 

MxEnergy
Holdings Inc.

595
Summer Street

Stamford,
CT 06901

 

Law
Debenture Trust Company of New York

400 Madison Avenue

4th Floor 

New York, NY 10017

Attention:  Corporate Trust Department

 

Re:                               13.25% Senior
Subordinated Secured Notes due 2014 (the “Notes”)

 

Reference is hereby made
to the Indenture, dated as of September 22, 2009 (the “Indenture”), among MxEnergy Holdings Inc.,
as issuer (the “Company”), the
Guarantors party thereto, and Law Debenture Trust Company of New York, as
Trustee.  Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

 

In connection with our
proposed purchase of
$                        
aggregate principal amount of:

 

(a)          
o           
a beneficial interest in a Global Note, or

 

(b)          
o           
a Definitive Note,

 

we confirm that:

 

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

 

2.             We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes and any interest therein may not be
offered or sold except as permitted in the following sentence. We agree, on our
own behalf and on behalf of any accounts for which we are acting as hereinafter
stated, that if we should sell the Notes or any interest therein, we will do so
only (A) to the Company or any Subsidiary thereof, (B) in accordance
with Rule 144A under the Securities Act to a “qualified institutional
buyer” (as defined therein), (C) to an “accredited investor” (as defined
below) that is purchasing for its own account or for the account of such an “accredited
investor” for investment purposes and not with a view to or for offer or sale
in connection with any distribution in violation of the Securities Act that,
prior to such transfer, furnishes (or has furnished on its behalf by a U.S.
broker-dealer) to the Trustee and to the Company a signed letter substantially
in the form of this letter and, if such transfer is in respect of a principal
amount of Notes, at the time of transfer of less than $250,000, an Opinion of
Counsel in form reasonably acceptable to the Company to the effect that such
transfer is in compliance with the Securities Act, (D) outside the United
States in accordance with Rule 904 of Regulation S under the Securities
Act, (E) pursuant to the provisions of Rule 144(b)(1)(i) under
the Securities Act by a person who is not affiliate of the Company or (F) pursuant
to an effective registration statement under the Securities Act, and we further
agree to provide 

 

E-1

 

to any Person purchasing the Definitive Note or
beneficial interest in a Global Note from the Company in a transaction meeting
the requirements of clauses (A) through (E) of this paragraph a
notice advising such purchaser that resales thereof are restricted as stated
herein.

 

3.            
We understand that, on any proposed resale of the Notes or beneficial interest
therein, we will be required to furnish to the Trustee and the Company such
certifications, legal opinions and other information as the Trustee and the
Company may reasonably require to confirm that the proposed sale complies with
the foregoing restrictions. We further understand that the Notes purchased by
us will bear a legend to the foregoing effect.

 

4.            
We are an “accredited investor” (as defined in Rule 501(a) of
Regulation D under the Securities Act) and have such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Notes, and we and any accounts for which we are
acting are each able to bear the economic risk of our or its investment.

 

5.            
We are acquiring the Notes or beneficial interest therein purchased by us for
our own account or for one or more accounts (each of which is an “accredited
investor”) as to each of which we exercise sole investment discretion.

 

The Trustee and the
Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  

 

E-2Exhibit 4.4

 

 

SECOND LIEN COLLATERAL AGREEMENT

 

dated as of September 22, 2009

 

among

 

MXENERGY HOLDINGS INC.,

 

MXENERGY ELECTRIC INC.,

 

MXENERGY INC.,

 

and

 

THE OTHER PARTIES HERETO,

as Grantors,

 

and

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK,

as Collateral Agent

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 2

  	
  [Intentionally Omitted]

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 3

  	
  Grant of Security Interest

  	
  8

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Grant

  	
  8

  
	
  3.2

  	
  Collateral Assignment of Rights under the Contracts

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 4

  	
  Representations and Warranties

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Corporate Authority

  	
  9

  
	
  4.2

  	
  Title; No Other Liens

  	
  10

  
	
  4.3

  	
  Perfected First Priority Liens

  	
  10

  
	
  4.4

  	
  Grantor Information

  	
  10

  
	
  4.5

  	
  Collateral Locations

  	
  10

  
	
  4.6

  	
  Certain Property

  	
  11

  
	
  4.7

  	
  Investment Property

  	
  11

  
	
  4.8

  	
  Receivables

  	
  11

  
	
  4.9

  	
  Intellectual Property

  	
  11

  
	
  4.10

  	
  Depositary and Other Accounts

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 5

  	
  Covenants

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Delivery of Instruments, Certificated Securities and
  Chattel Paper

  	
  12

  
	
  5.2

  	
  Maintenance of Perfected Security Interest; Further
  Documentation

  	
  12

  
	
  5.3

  	
  Changes in Locations, Name, etc.

  	
  13

  
	
  5.4

  	
  Notices

  	
  13

  
	
  5.5

  	
  Investment Property

  	
  13

  
	
  5.6

  	
  Receivables

  	
  14

  
	
  5.7

  	
  Intellectual Property

  	
  15

  
	
  5.8

  	
  Counterparty Undertakings

  	
  16

  
	
  5.9

  	
  Depositary and Other Deposit Accounts

  	
  17

  
	
  5.10

  	
  Other Matters

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 6

  	
  Remedial Provisions

  	
  19

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Certain Matters Relating to Receivables

  	
  19

  
	
  6.2

  	
  Communications with Obligors; Grantors Remain Liable

  	
  20

  
	
  6.3

  	
  Investment Property

  	
  20

  
	
  6.4

  	
  Proceeds to be Turned Over to the Collateral Agent

  	
  21

  
	
  6.5

  	
  Application of Proceeds

  	
  22

  
	
  6.6

  	
  Code and Other Remedies

  	
  22

  
	
  6.7

  	
  Private Sales of Pledged Equity

  	
  23

  
	
  6.8

  	
  Waiver; Deficiency

  	
  24

  
	
  6.9

  	
  Collateral Access

  	
  24

  

 

i

 

	
  Section 7

  	
  Collateral Agent

  	
  24

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Collateral Agent’s Appointment as Attorney-in-Fact, etc.

  	
  24

  
	
  7.2

  	
  Duty of Collateral Agent

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 8

  	
  Miscellaneous

  	
  26

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Amendments in Writing

  	
  26

  
	
  8.2

  	
  Notices

  	
  26

  
	
  8.3

  	
  Indemnification by Grantors

  	
  26

  
	
  8.4

  	
  Enforcement Expenses

  	
  26

  
	
  8.5

  	
  Captions

  	
  27

  
	
  8.6

  	
  Nature of Remedies

  	
  27

  
	
  8.7

  	
  Counterparts

  	
  27

  
	
  8.8

  	
  Severability

  	
  27

  
	
  8.9

  	
  Entire Agreement

  	
  27

  
	
  8.10

  	
  Successors; Assigns

  	
  27

  
	
  8.11

  	
  Governing Law

  	
  27

  
	
  8.12

  	
  Consent to Arbitration

  	
  28

  
	
  8.13

  	
  Waiver of Certain Damages

  	
  28

  
	
  8.14

  	
  Set-off

  	
  29

  
	
  8.15

  	
  [Intentionally Omitted]

  	
  29

  
	
  8.16

  	
  Acknowledgements

  	
  29

  
	
  8.17

  	
  Additional Grantors

  	
  29

  
	
  8.18

  	
  Releases

  	
  29

  
	
  8.19

  	
  Obligations and Liens Absolute and Unconditional

  	
  30

  
	
  8.20

  	
  Termination; Reinstatement

  	
  30

  

 

	
  Schedule
  1

  	
  –

  	
  Grantors

  
	
  Schedule
  2

  	
  –

  	
  Pledged
  Equity, Investment Property and Pledged Notes

  
	
  Schedule
  3

  	
  –

  	
  Perfection
  Filings and Actions

  
	
  Schedule
  4

  	
  –

  	
  Collateral
  Locations

  
	
  Schedule
  5

  	
  –

  	
  Intellectual
  Property

  
	
  Schedule
  6

  	
  –

  	
  Deposit
  Accounts

  
	
  Schedule
  7

  	
  –

  	
  Identified
  Claims

  
	
   

  	
   

  	
   

  
	
  Annex
  I

  	
  –

  	
  Joinder
  Agreement

  

 

ii

 

SECOND LIEN COLLATERAL
AGREEMENT

 

Second Lien Collateral
Agreement, dated as of September 22, 2009 (this “Agreement”), among
MxEnergy Holdings Inc., a Delaware corporation (“Holdings”), and each
Subsidiary of Holdings listed on Schedule 1 hereto (together with
Holdings and any other Person that becomes a party hereto as provided herein,
collectively, the “Grantors”) and Law Debenture Trust Company of New
York, as collateral agent (in such capacity, together with any successor
collateral agent, the “Collateral Agent”) for the benefit of the Trustee
(as defined below) and the Noteholders (as defined below) (collectively, the “Secured
Party”).

 

The Grantors have entered
into that certain Indenture, dated as of the date hereof (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “Indenture”),
among Holdings, the other Grantors, as guarantors, and Law Debenture Trust
Company of New York, as trustee (together with its successors in such capacity,
the “Trustee”) on behalf of the holders (the “Noteholders”) of
the Notes (as defined below) pursuant to which Holdings has issued $67,751,000
aggregate principal amount of its 131⁄4% Senior Subordinated Secured Notes due
2014 (the “Notes).  The Trustee
has been appointed to serve as Collateral Agent under the Indenture and, in
such capacity, to enter into this Agreement. 
The Grantors are executing and delivering this Agreement pursuant to the
terms of the Indenture to induce the Noteholders to acquire the Notes.

 

In consideration of the
premises set forth above, each Grantor hereby agrees with the Collateral Agent
as follows:

 

Section 1                                               Definitions.

 

1.1           Unless otherwise defined herein, terms defined in the
Indenture and used herein shall have the meanings given to them in the
Indenture, and the following terms are used herein as defined in the UCC (as
defined below): Account Debtor, Accounts, Certificated Security, Chattel Paper,
Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel Paper,
Equipment, Farm Products, Goods, Health Care Insurance Receivables,
Instruments, Inventory, Leases, Letter-of-Credit Rights, Money, Payment
Intangibles, Supporting Obligations and Tangible Chattel Paper.

 

1.2           When used herein the following terms shall have the
following meanings:

 

“AAA” has the meaning
set forth in Section 8.12(a).

 

“Agreement” has the
meaning set forth in the preamble hereto.

 

“Capital Stock” means
(a) with respect to any Person that is a corporation, any and all shares,
interests, participations or other equivalents (however designated and whether
or not voting) of corporate stock, including each class of common stock and
preferred stock of such Person, and all options, warrants or other rights to
purchase or acquire any of the foregoing; and (b) with respect to any
Person that is not a corporation, any and all partnership, membership or other
equity interests of such Person, and all options, warrants or other rights to
purchase or acquire any of the foregoing.

 

 

“Chattel Paper” means
all “chattel paper” as such term is defined in Section 9-102(a)(11) of the
UCC and, in any event, including with respect to any Grantor, all Electronic
Chattel Paper and Tangible Chattel Paper.

 

“Closing Date” means
the date on which the Indenture is executed and delivered by all parties
thereto and the Notes are issued.

 

“Collateral” means (a) all
of the personal property now owned or at any time hereafter acquired by any
Grantor or in which any Grantor now has or at any time in the future may
acquire any right, title or interest, including all of each Grantor’s Accounts,
Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Equipment,
Fixtures, General Intangibles, Health Care Insurance Receivables, Farm
Products, Goods, Instruments, Intellectual Property, Inventory, Investment
Property, Leases, Letter-of-Credit Rights, Money, Supporting Obligations and
Identified Claims, (b) all books and records pertaining to any of the
foregoing, (c) all Proceeds and products of any of the foregoing, and (d) all
collateral security and guaranties given by any Person with respect to any of
the foregoing, provided, however, that for the purposes of this Agreement “Collateral”
shall not include the Escrow Account or any funds or securities on deposit
therein or any proceeds of such funds or securities, which security interest is
granted pursuant to the Escrow Agreement. Where the context requires, terms
relating to the Collateral or any part thereof, when used in relation to a
Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof.

 

“Collateral Agent” has
the meaning set forth in the preamble hereto.

 

“Collateral Agent Party”
has the meaning set forth in Section 8.3.

 

“Commission” means
the Securities and Exchange Commission.

 

“Contract” means any
contract or agreement to which any Grantor is a party.

 

“Contract Rights”
means all of the Grantors’ rights and remedies under any Contract.

 

“Copyright Licenses”
means all written agreements naming any Grantor as licensor or licensee,
including those listed on Schedule 5, granting any right under any
Copyright, including the grant of rights to manufacture, distribute, exploit
and sell materials derived from any Copyright.

 

“Copyrights” means
all copyrights arising under the laws of the United States, any other country
or any political subdivision thereof, whether registered or unregistered and
whether published or unpublished, including those listed on Schedule 5,
all registrations and recordings thereof, and all applications in connection
therewith, including all registrations, recordings and applications in the
United States Copyright Office, and the right to obtain all renewals of any of
the foregoing.

 

“Counterparty
Undertakings” means, collectively, all representations, warranties,
covenants and agreements in favor of any Grantor, and all indemnifications for
the benefit of any Grantor relating thereto, pursuant to the Contracts.

 

2

 

“Credit Facility”
means the debt facilities, physical supply agreements, commodity hedge
facilities or similar agreements, entered into with Sempra Energy Trading LLC
and/or its affiliates on the date hereof, as amended, restated, modified,
renewed, refunded, replaced or refinanced in whole or in part from time to
time, including any refunding, replacement or refinancing thereof through
similar facilities entered into with one or more counterparties, as a global
financing or separate facilities, together with the related documents thereto
(including, without limitation, any guarantee agreements and security
documents).

 

“Credit Facility Agent”
means at any time, the Person serving at such time as the “Agent” or “Administrative
Agent” under the Credit Facility or any other representative then most recently
designated in accordance with the applicable provisions of the Credit Facility or
any successor or replacement agreement or agreements entered into in connection
with the replacement or refinancing of the Credit Facility, together with its
successors in such capacity.

 

“Credit Facility
Obligations” means any principal (including reimbursement obligations with
respect to letters of credit whether or not drawn), interest (including, to the
extent legally permitted, all interest accrued thereon after the commencement
of any Insolvency or Liquidation Proceeding at the rate, including any applicable
post-default rate, specified in the Credit Facility Documents, even if such
interest is not enforceable, allowable or allowed as a claim in such
proceeding), premium (if any), fees, indemnifications, reimbursements, expenses
and other liabilities payable under the documentation governing any
Indebtedness.

 

“Discharge of Credit
Facility Obligations” means, except in the event of a refinancing of the
Credit Facility, the occurrence of all of the following:

 

(i)             indefeasible payment in full
in cash of settlement amounts, termination payments, the principal of and
interest (including interest accruing on or after the commencement of any
Insolvency or Liquidation Proceeding, whether or not such interest would be
allowed in such Insolvency or Liquidation Proceeding) and premium (if any) on
all amounts outstanding under Credit Facility and constituting Credit Facility
Obligations, including reimbursement obligations;

 

(ii)          indefeasible payment in full
in cash of all other Credit Facility Obligations that are outstanding and
unpaid at the time such settlement amounts, termination payments, principal,
interest and premium (if any) on all amounts outstanding under the Credit
Facility are paid in full in cash (other than any obligations for taxes,
indemnifications, damages and other contingent liabilities in respect of which
no claim or demand for payment has been made at such time);

 

(iii)       irrevocable termination or
expiration of all commitments, if any, to extend credit that would constitute
Credit Facility Obligations; and

 

(iv)      irrevocable termination or
cash collateralization (in an amount and manner reasonably satisfactory to the
Credit Facility Agent, but in no event greater than 105% of the aggregate
undrawn face amount) of all letters of credit and guarantees issued under or
pursuant to the terms of the Credit Facility Documents and constituting Credit
Facility Obligations.

 

3

 

“Discharge of Notes
Obligations”  means
indefeasible payment in full in cash of all Notes Obligations that are
outstanding and unpaid at the time such payment (other than any obligations for
taxes, indemnifications, damages and other contingent liabilities in respect of
which no claim or demand for payment has been made at such time.

 

“Escrow Account”
means the escrow account under the Escrow Agreement.

 

“Escrow Agreement”
means that certain Escrow and Security Agreement dated as of the date hereof,
by and among Holdings, Law Debenture Trust Company of New York, as trustee
under the Indenture, and Law Debenture Trust Company of New York, as escrow
agent and securities intermediary.

 

“EDC” means the local
distribution company responsible for delivering Energy (as defined in the
Credit Facility Documentation) to MxEnergy Electric Inc.’s customers in a
particular geographic area.

 

“Fixtures” means all
of the following, whether now owned or hereafter acquired by a Grantor: plant
fixtures; business fixtures; other fixtures and storage facilities, wherever
located; and all additions and accessories thereto and replacements therefor.

 

“General Intangibles”
means all “general intangibles” as such term is defined in Section 9-102(a)(42)
of the UCC and, in any event, including with respect to any Grantor, all
Payment Intangibles, all Contract Rights, all Counterparty Undertakings,
agreements, instruments and indentures in any form, and portions thereof, to
which such Grantor is a party or under which such Grantor has any right, title
or interest or to which such Grantor or any property of such Grantor is
subject, as the same from time to time may be amended, supplemented or
otherwise modified, including, without limitation, (a) all rights of such
Grantor to receive moneys due and to become due to it thereunder or in
connection therewith, (b) all rights of such Grantor to damages arising
thereunder and (c) all rights of such Grantor to perform and to exercise
all remedies thereunder; provided, that the foregoing limitation shall
not affect, limit, restrict or impair the grant by such Grantor of a security
interest pursuant to this Agreement in any Receivable or any money or other
amounts due or to become due under any such Payment Intangible, contract,
agreement, instrument or indenture.

 

“Grantors” has the
meaning set forth in the preamble hereto.

 

“Holdings” has the
meaning set forth in the preamble hereto.

 

“Identified
Claims” means the Commercial Tort Claims described on Schedule 7 as
such schedule shall be supplemented from time to time.

 

“Indemnified Liabilities”
has the meaning set forth in Section 8.3.

 

“Indenture” has the
meaning set forth in the preamble hereto.

 

“Insolvency or
Liquidation Proceeding”  means:

 

4

 

(i)             any case commenced by or
against Holdings or any other Grantor under Title 11, U.S. Code or any similar
federal or state law for the relief of debtors, any other proceeding for the
reorganization, recapitalization or adjustment or marshalling of the assets or
liabilities of Holdings or any other Grantor, any receivership or assignment for
the benefit of creditors relating to Holdings or any other Grantor or any
similar case or proceeding relative to Holdings or any other Grantor or its
creditors, as such, in each case whether or not voluntary;

 

(ii)          any liquidation,
dissolution, marshalling of assets or liabilities or other winding up of
Holdings or any other Grantor, in each case whether or not voluntary and
whether or not involving bankruptcy or insolvency, other than a liquidation or
dissolution of Holdings or a Grantor in connection with (a) a merger or
consolidation of such Person with or into a Grantor or Holdings, as the case
may be, or (b) a transfer of substantially all assets of Holdings or a
Grantor to a Grantor or Holdings, as the case may be, in the case of each of
the preceding clauses (a) and (b), in a transaction that is
permitted under the Indenture; or

 

(iii)       any other proceeding of any
type or nature in which substantially all claims of creditors of Holdings or
any other Grantor are determined and any payment or distribution is or may be
made on account of such claims.

 

“Intellectual Property”
means the collective reference to all rights, priorities and privileges
relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including the Copyrights, the
Copyright Licenses, the Patents, the Patent Licenses, the Trademarks and the
Trademark Licenses, and all rights to sue at law or in equity for any
infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

 

“Intercompany Note”
means any promissory note evidencing loans made by any Grantor to any other
Grantor.

 

“Intercreditor Agreement”
means that certain Intercreditor Agreement, dated as of September 22,
2009, by and among the Trustee, Holdings, the other pledgors from time to time
parties thereto and the Credit Facility Agent.

 

“Investment Property”
means the collective reference to (a) all “investment property” as such
term is defined in Section 9-102(a)(49) of the UCC (other than the equity
interest of any foreign Subsidiary excluded from the definition of Pledged
Equity), (b) all “financial assets” as such term is defined in Section 8-102(a)(9) of
the UCC, and (c) whether or not constituting “investment property” as so
defined, all Pledged Notes and all Pledged Equity.

 

“Issuers” means the
collective reference to each issuer of any Investment Property.

 

“LDC” means the local
distribution company responsible for delivering Gas (as defined in the Credit
Facility Documentation) to MxEnergy Inc.’s customers in a particular geographic
area.

 

“Notes” has the
meaning set forth in the preamble hereto.

 

5

 

“Noteholders” has the
meaning set forth in the preamble hereto.

 

“Notes Documents”
means, collectively, the Indenture, the Notes and all security agreements,
pledge agreements, collateral assignments, mortgages, collateral agency
agreements, control agreements, deeds of trust or other grants or transfers for
security executed and delivered by Holdings or any other Grantor creating (or
purporting to create) a Lien securing Notes Obligations in favor of the
Collateral Agent, and any other document or instrument executed or delivered at
any time in connection with, or giving rise to, any Notes Obligations, to the
extent such are effective at the relevant time, as each may be amended, amended
and restated, supplemented, modified, renewed, restated, replaced, refinanced
or extended, restructured or otherwise modified in whole or in part, from time
to time, in accordance with its terms and with the provisions of the
Intercreditor Agreement.

 

“Notes Obligations”
means any principal, interest (including, to the extent legally permitted, all
interest accrued thereon after the commencement of any Insolvency or
Liquidation Proceeding at the rate, including any applicable post-default rate,
specified in the Notes Documents, even if such interest is not enforceable,
allowable or allowed as a claim in such proceeding), premium (if any), fees,
indemnifications, reimbursements, expenses and other liabilities to be paid or
performed under the Notes Documents..

 

“Notes Security Documents”  means, collectively, this Agreement and
any and all guarantees, security agreements, pledge agreements, collateral
assignments, mortgages, collateral agency agreements, control agreements, deeds
of trust or other grants or transfers for security executed and delivered by
Holdings or any other Grantor creating (or purporting to create) a Lien
securing Notes Obligations in favor of the Collateral Agent, in each case, as
amended, amended and restated, supplemented, modified, renewed, restated,
replaced, refinanced or extended, restructured or otherwise modified, in whole
or in part, from time to time, in accordance with its terms and with the
provisions of this Agreement.

 

“Patent Licenses”
means all agreements, whether written or oral, providing for the grant by or to
any Grantor of any right to manufacture, use or sell any invention covered in
whole or in part by a Patent, including any of the foregoing referred to in Schedule
5.

 

“Patents” means (a) all
letters patent of the United States, any other country or any political
subdivision thereof, all reissues and extensions thereof and all goodwill
associated therewith, including any of the foregoing referred to in Schedule
5, (b) all applications for letters patent of the United States or any
other country and all divisions, continuations and continuations-in-part
thereof, including any of the foregoing referred to in Schedule 5, and (c) all
rights to obtain any reissues or extensions of the foregoing.

 

“Payments” has the
meaning set forth in Section 3.2.

 

“Pledged Equity”
means 100% of the outstanding equity interests in MX Electric, MX Energy, and
any other Subsidiary of Holdings, as set forth on Schedule 2, and such
other equity interests set forth on Schedule 2, together with any other
equity interests, certificates, options or rights of any nature whatsoever in
respect of the equity interests of any Person that may be issued or granted to,
or held by, any Grantor while this Agreement is in effect; provided,
that in 

 

6

 

no
event shall more than 65% of the total outstanding equity interests of any
foreign Subsidiary (including MxEnergy (Canada) Ltd., a Nova Scotia
corporation) be required to be pledged hereunder.

 

“Pledged Notes” means
all promissory notes listed on Schedule 2, all Intercompany Notes at any
time issued to any Grantor and all other promissory notes issued to or held by
any Grantor (other than promissory notes issued in connection with extensions
of trade credit by any Grantor in the ordinary course of business).

 

“Proceeds” means all “proceeds”
as such term is defined in Section 9-102(a)(64) of the UCC and, in any event,
shall include all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

 

“Receivable” means
any right to payment for goods sold or leased or for services rendered, whether
or not such right is evidenced by an Instrument or Chattel Paper and whether or
not it has been earned by performance (including any Accounts).

 

“Related Agreements”
means, collectively, the Notes Documents, the Stockholders Agreement, the
Registration Rights Agreement and the Intercreditor Agreement.

 

“Second Lien Collateral
Agreement Joinder” means a joinder agreement in the form of Annex I
hereto.

 

“Secured Party” has
the meaning set forth in the preamble hereto.

 

“Securities Act”
means the United States Securities Act of 1933, as amended.

 

“Trademarks” means (a) all
trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, logos and other source
or business identifiers, and all goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and
all applications in connection therewith, whether in the United States Patent
and Trademark Office or in any similar office or agency of the United States,
any State thereof or any other country or any political subdivision thereof, or
otherwise, and all common-law rights related thereto, including any of the
foregoing referred to in Schedule 5, and (b) the right to obtain
all renewals thereof.

 

“Trademark Licenses”
means, collectively, each agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trademark, including any of
the foregoing referred to in Schedule 5.

 

“UCC” means the
Uniform Commercial Code as in effect on the date hereof and from time to time
in the State of New York; provided, that if by reason of mandatory
provisions of law, the perfection or the effect of perfection or non-perfection
of the security interests in any Collateral or the availability of any remedy
hereunder is governed by the Uniform Commercial Code as in effect on or after
the date hereof in any other jurisdiction, “UCC” means the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such perfection or effect of perfection or non-perfection or
availability of such remedy.

 

7

 

Section 2                                               [Intentionally Omitted].

 

Section 3                                               Grant of Security Interest.

 

3.1                                 Grant.  (a) Each Grantor hereby assigns and
transfers to the Collateral Agent for the benefit of the Secured Party, and
hereby grants to Collateral Agent for the benefit of the Secured Party, and its
respective successors, endorsees, transferees and assigns and (to the extent
provided herein) their Affiliates, a continuing security interest in all of its
Collateral, as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Notes Obligations.

 

(b)                                 Notwithstanding any other provision of this Section 3.1,
but subject to Section 3.1(d), this Agreement shall not constitute
a grant of a security interest in (i) any property to the extent (and only
for so long as) that such grant of a security interest is expressly prohibited
by any applicable law, (ii) accounts receivable from Customers to the
extent that (and only for so long as) such grant of a security interest is
prohibited by, or constitutes a breach or default under or results in the
termination of or requires any consent not obtained under, any express
provision of any contract, agreement or instrument between a LDC or an EDC and
one or more Grantors, (iii) any contract between a LDC or EDC and one or
more Grantors which has express provisions which prohibit grants of security
interests in such contract unless an exception to such prohibition is
applicable to the security interest granted by this Agreement (unless in any
such case and to the extent such applicable law or such relevant express
provision in such contract, agreement, instrument providing for such
prohibition, breach, default or termination or requiring such consent is
ineffective under applicable law) and (iv) the Capital Stock, securities
and other payment rights of any Grantor to the extent that under Rule 3-10
or Rule 3-16 of Regulation S-X under the Securities Act (or any other law,
rule or regulation) the grant of a security interest in such Capital
Stock, securities and other payment rights would require the filing of separate
financial statements of such Grantor with the Commission (or any other
governmental agency).  In the event that Rule 3-10
or Rule 3-16 of Regulation S-X under the Securities Act requires or is
amended, modified or interpreted by the Commission to require (or is replaced
with another rule or regulation, or any other law, rule or regulation
is adopted, which would require) the filing with the Commission (or any other
governmental agency) of separate financial statements of any Grantor due to the
fact that such Grantor’s Capital Stock, securities or other payment rights
secure the Notes Obligations, then the Capital Stock, securities or other
payment rights of such Grantor shall automatically be deemed not to be part of
the Collateral but only to the extent necessary to not be subject to such
requirement.  In the event that Rule 3-10
and Rule 3-16 of Regulation S-X under the Securities Act are amended,
modified or interpreted by the Commission to permit (or are replaced with
another rule or regulation, or any other law, rule or regulation is
adopted, which would permit) such Grantor’s Capital Stock, securities and other
payment rights to secure the Notes Obligations in excess of the amount then
pledged without the filing with the Commission (or any other governmental
agency) of separate financial statements of such Grantor, then the Capital
Stock, securities and other payment rights of such Grantor shall automatically
be deemed to be a part of the Collateral but only to the extent that such Grantor
would not be subject to any such financial statement requirement.  For the avoidance of doubt, this Section 3.1(b) is
not applicable to accounts receivable due from a LDC or an EDC to one or more
Grantors.

 

8

 

(c)                                  Each Grantor hereby agrees to use commercially reasonable
efforts to obtain any required consent not obtained under, or to seek an
amendment to, any contract, agreement, instrument or other document in order to
permit the grant of a security interest to the Secured Party (or its agents) in
any property affected by Section 3.1(b).

 

(d)                                 Section 3.1(b) shall
not be deemed effective to the extent that Sections 9-406, 9-407 and 9-408 of
the UCC would in any instance render the limitations set forth in clauses
(i), (ii) or (iii) of Section 3.1(b) ineffective.

 

3.2                                 Collateral Assignment of Rights under the Contracts.  Each Grantor hereby
irrevocably authorizes and empowers the Collateral Agent or its agents, in
their sole discretion, to assert, either directly or on behalf of any Grantor,
at any time that a Default is in existence, any claims any Grantor may from
time to time have against the counterparties or any of their affiliates with
respect to any and all of the Contract Rights or with respect to any and all
payments or other obligations due from the counterparties or any of their
affiliates to any Grantor under or pursuant to the Contracts (“Payments”),
and to receive and collect any damages, awards and other monies resulting
therefrom and to apply the same on account of the Notes Obligations in
accordance with Section 6.5 hereof. After the occurrence and during
the continuation of a Default, subject to the terms of the Intercreditor
Agreement, the Collateral Agent may provide notice to the counterparties or any
of their Affiliates under any Contract that all Payments shall be made to or at
the direction of the Collateral Agent for so long as such Default shall be
continuing. Following the delivery of any such notice, the Collateral Agent
shall promptly notify the counterparties under such Contract upon the
termination or waiver of any such Default and the Collateral Agent shall
promptly deliver to Holdings any Payments it receives after such termination or
waiver and prior to notifying the counterparties thereto. Each Grantor hereby
irrevocably makes, constitutes and appoints the Collateral Agent (and all
officers, employees, or agents designated by the Collateral Agent) as such
Grantor’s true and lawful attorney (and agent-in-fact) for the purpose of
enabling the Collateral Agent or its agents to assert and collect such claims
and to apply such monies in the manner set forth hereinabove.  Such appointment shall become effective upon
the occurrence and during the continuation of a Default and, if the Notes Documents
are terminated following an Event of Default, such appointment shall continue
thereafter.

 

Section 4                                               Representations and Warranties.

 

Each Grantor, jointly and
severally, hereby represents and warrants to the Collateral Agent as follows:

 

4.1                                 Corporate Authority.  It is duly organized and validly existing
under the laws of the jurisdiction of its organization or incorporation and, if
relevant under such laws, in good standing. 
It has the corporate power to execute this Agreement and any other documentation
relating to this Agreement to which it is a party, to deliver this Agreement
and any other documentation relating to this Agreement that it is required by
this Agreement to deliver and to perform its obligations under this Agreement
and any obligations it has under any other Note Document to which it is a party
and has taken all necessary corporate action to authorize such execution,
delivery and performance.  Such
execution, delivery and performance do not violate or conflict with any law
applicable to it, any provision of its constitutional documents, any order 

 

9

 

or
judgment of any court or other agency of government applicable to it or any of
its assets or any contractual restriction binding on or affecting it or any of
its assets.  All governmental and other
consents that are required to have been obtained by it with respect to this
Agreement or any other Note Document to which it is a party have been obtained
and are in full force and effect and all conditions of any such consents have
been complied with.  Its obligations
under this Agreement and any other Note Document to which it is a party
constitute its legal, valid and binding obligations, enforceable in accordance
with their respective terms (subject to applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general
application (regardless of whether enforcement is sought in a proceeding in
equity or at law)).

 

4.2                                 Title; No Other Liens.  Except for Permitted Liens, the Grantors own
each item of the Collateral free and clear of any and all Liens or claims of
others. No financing statement or other public notice with respect to all or
any part of the Collateral is on file or of record in any public office, except
filings evidencing Permitted Liens and filings for which termination statements
have been delivered to the Collateral Agent.

 

4.3                                 Perfected Liens.  The security interests granted pursuant to
this Agreement (a) upon completion of the filings and other actions
specified on Schedule 3 (which, in the case of all filings and
other documents referred to on Schedule 3, have been delivered to
the Collateral Agent in completed, to the extent required, and duly executed
form) will constitute valid perfected security interests in all of the
Collateral (other than unregistered patents, trademarks and copyrights and
titled motor vehicles) in favor of the Collateral Agent, as collateral security
for each Grantor’s obligations, enforceable in accordance with the terms hereof
against all creditors of each Grantor and any Persons purporting to purchase
any Collateral from each Grantor and (b) are prior to all other Liens on
the Collateral in existence on the date hereof except for Liens that secure the
Credit Facility Obligations and Permitted Liens for which priority is accorded
under applicable law.  The filings and
other actions specified on Schedule 3 constitute all of the filings and
other actions necessary to perfect all security interests granted hereunder.

 

4.4                                 Grantor Information.  On the date hereof, Schedule 1 sets
forth (a) each Grantor’s jurisdiction of organization, (b) the
location of each Grantor’s chief executive office, (c) each Grantor’s
exact legal name as it appears on its organizational documents and (d) each
Grantor’s organizational identification number (to the extent a Grantor is
organized in a jurisdiction which assigns such numbers) and federal employer
identification number.

 

4.5                                 Collateral Locations.  On the date hereof, Schedule 4 sets
forth (a) each place of business of each Grantor (including its chief
executive office), (b) all locations where all Inventory and the Equipment
owned by each Grantor is kept, except with respect to Inventory and Equipment
with a fair market value of less than $100,000 (in the aggregate for all
Grantors) which may be located at other locations and (c) whether each
such Collateral location and place of business (including each Grantor’s chief
executive office) is owned or leased (and if leased, specifies the complete
name and notice address of each lessor). No Collateral is located outside the
United States or in the possession of any lessor, bailee, warehouseman or
consignee, except as indicated on Schedule 4.

 

10

 

4.6                                 Certain Property.  None of the Collateral constitutes, or is the
Proceeds of, (a) Farm Products, (b) Health Care Insurance Receivables
or (c) vessels, aircraft or any other property subject to any certificate
of title or other registration statute of the United States, any State or other
jurisdiction, except for personal vehicles owned by the Grantors and used by
employees of the Grantors in the ordinary course of business with an aggregate
fair market value of less than $100,000 (in the aggregate for all Grantors).

 

4.7                                 Investment Property.  (a) Except as set forth on Schedule 2,
the Pledged Equity pledged by each Grantor hereunder constitutes all the issued
and outstanding equity interests of each Issuer owned by such Grantor or, in
the case of any foreign Subsidiary, 65% of all issued and outstanding equity
interests of such foreign Subsidiary.

 

(b)                                 All of the Pledged Equity has been duly and validly issued
and, to the extent applicable, is fully paid and nonassessable.

 

(c)                                  Each of the Pledged Notes constitutes the legal, valid and
binding obligation of the obligor with respect thereto, enforceable in
accordance with its terms (subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally), general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

 

(d)                                 Schedule 2
lists all Investment Property owned by each Grantor. Each Grantor is the record
and beneficial owner of, and has good and marketable title to, the Investment
Property pledged by it hereunder, free of any and all Liens or options in favor
of, or claims of, any other Person, except Permitted Liens.

 

4.8                                 Receivables.  (a) No material amount payable to such
Grantor under or in connection with any Receivable is evidenced by any
Instrument or Chattel Paper which has not been delivered to the Credit Facility
Agent.

 

(b)                                 The amounts represented by such Grantor to the Collateral
Agent from time to time as owing to such Grantor in respect of the Receivables
(to the extent such representations are required by any of the Notes Documents)
will at all such times be accurate in all material respects.

 

4.9                                 Intellectual Property.  (a) Schedule 5 lists all
Intellectual Property owned by such Grantor in its own name on the date hereof.

 

(b)                                 On the date hereof, all material Intellectual Property owned
by any Grantor is valid, subsisting, unexpired and enforceable and has not been
abandoned.

 

(c)                                  Except as set forth in Schedule 5, none of the
Intellectual Property material to a Grantor’s business is the subject of any
licensing or franchise agreement pursuant to which such Grantor is the licensor
or franchisor.

 

(d)                                 Each Grantor owns and possesses or has a license or other
right to use all Intellectual Property as is necessary for the conduct of the
businesses of such Grantor, without 

 

11

 

any
infringement upon rights of others which could reasonably be expected to have a
Material Adverse Effect.

 

4.10                           Depositary and Other Accounts.  All depositary and other accounts maintained
by each Grantor are described on Schedule 6 hereto, which description
includes for each such account the name of the Grantor maintaining such
account, the name, address, telephone and fax numbers of the financial
institution at which such account is maintained, the account number and the
account officer, if any, of such account.

 

4.11                           Certain Exclusion From Security Interests.  As of the date
hereof, no Capital Stock, securities and other payment rights of any Grantor
has been excluded from the security interest granted pursuant to Section 3.1(a) of
this Agreement by operation of clause (iv) of the first sentence of Section 3.1(b) of
this Agreement.

 

Section 5                                               Covenants.

 

Each Grantor covenants and
agrees with the Collateral Agent that, from and after the date of this Agreement
until the Discharge of Notes Obligations:

 

5.1                                 Delivery of Instruments, Certificated Securities and Chattel
Paper.  If any amount payable under or in connection
with any of the Collateral in excess of $100,000 (in the aggregate for all
Grantors) shall be or become evidenced by any Instrument, Certificated Security
or Chattel Paper, such Instrument, Certificated Security or Chattel Paper shall
be promptly delivered to the Collateral Agent (subject to the terms of the
Intercreditor Agreement), duly endorsed in a manner satisfactory to the
Collateral Agent, to be held as Collateral pursuant to this Agreement. Subject
to the terms of the Intercreditor Agreement, in the event that a Default shall
have occurred and be continuing, upon the request of the Collateral Agent, any
Instrument, Certificated Security or Chattel Paper not theretofore delivered to
the Collateral Agent and at such time being held by any Grantor shall be
promptly (and in any event within two Business Days) delivered to the
Collateral Agent, duly endorsed in a manner satisfactory to the Collateral
Agent, to be held as Collateral pursuant to this Agreement.

 

5.2                                 Maintenance of Perfected Security Interest; Further
Documentation.  (a) Such Grantor shall maintain the
security interest created by this Agreement as a perfected security interest
having at least the priority described in Section 4.3 and shall
defend such security interest against the claims and demands of all Persons
whomsoever.

 

(b)                                 Such Grantor will furnish to the Collateral Agent from time
to time statements and schedules further identifying and describing the assets
and property of such Grantor and such other reports in connection therewith as
the Collateral Agent may reasonably request, all in reasonable detail.

 

(c)                                  At any time and from time to time, upon the written request
of the Collateral Agent, and at the sole expense of such Grantor, such Grantor
will promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Collateral Agent
may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including (i) filing any financing or continuation statements under the
UCC (or other similar laws) in effect in any 

 

12

 

jurisdiction
with respect to the security interests created hereby and (ii) subject to
the terms of the Intercreditor Agreement, in the case of Investment Property
and any other relevant Collateral, taking any actions necessary to enable the
Collateral Agent to obtain “control” (within the meaning of the applicable UCC)
with respect thereto and (iii) subject to the terms of the Intercreditor
Agreement, during the continuance of a Default, if requested by the Collateral
Agent, delivering, to the extent permitted by law, any original motor vehicle
certificates of title received by such Grantor from the applicable secretary of
state or other governmental authority after information reflecting the
Collateral Agent’s security interest has been recorded therein.

 

5.3                                 Changes in Locations, Name, etc.  Such Grantor shall
not, except upon 30 days’ prior written notice to the Collateral Agent and
delivery to the Collateral Agent of (a) all additional executed financing
statements and other documents reasonably requested by the Collateral Agent as
to the validity, perfection and priority of the security interests provided for
herein and (b) if applicable, a written supplement to Schedule 4
showing any additional location at which Inventory or Equipment shall be kept:

 

(i)                                     permit any of the Inventory
or Equipment to be kept at a location other than those listed on Schedule 4;
provided, that up to $100,000 (in the aggregate for all Grantors) in
fair market value of any such Inventory and Equipment may be kept at other
locations;

 

(ii)                                  change its jurisdiction of
organization or the location of its chief executive office from that specified
on Schedule 1 or in any subsequent notice delivered pursuant to this Section 5.3;
or

 

(iii)                               change its name, identity or
corporate structure.

 

5.4                                 Notices.  Such Grantor will advise the Collateral Agent
promptly upon knowledge by such Grantor thereof, in reasonable detail, of:

 

(a)                                  any Lien (other than Permitted Liens) on any of the
Collateral which would adversely affect the ability of the Collateral Agent to
exercise any of its remedies hereunder; and

 

(b)                                 the occurrence of any other event which could reasonably be
expected to have a material adverse effect on the aggregate value of the
Collateral or on the Liens created hereby.

 

5.5                                 Investment Property.  (a) If such Grantor shall become
entitled to receive or shall receive any certificate, option or rights in
respect of the equity interests of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any of the Pledged
Equity, or otherwise in respect thereof, such Grantor shall accept the same as
the agent of the Collateral Agent, hold the same in trust for the Collateral
Agent and deliver the same forthwith to the Credit Facility Agent until the
Discharge of Credit Facility Obligations and thereafter to the Collateral Agent
in the exact form received, duly endorsed by such Grantor to the Collateral
Agent, if required, together with an undated instrument of transfer covering
such certificate duly executed in blank by such Grantor and with, if the
Collateral Agent, so requests, signature guaranteed, to be held by the
Collateral Agent, subject to the terms hereof, as additional Collateral for the
Notes Obligations. Subject to the terms of the Intercreditor Agreement, (i) any
sums paid upon or in respect of the Investment Property upon the liquidation or
dissolution of 

 

13

 

any
Issuer shall be paid over to the Collateral Agent to be held by it hereunder as
additional Collateral for the Notes Obligations, and (ii) in case any
distribution of capital shall be made on or in respect of the Investment
Property or any property shall be distributed upon or with respect to the
Investment Property pursuant to the recapitalization or reclassification of the
capital of any Issuer or pursuant to the reorganization thereof, the property
so distributed shall, unless otherwise subject to a perfected Lien in favor of
the Collateral Agent, be delivered to the Collateral Agent to be held by it
hereunder as additional Collateral for the Notes Obligations. Subject to the
terms of the Intercreditor Agreement, upon the occurrence and during the continuance
of a Default, if any sums of money or property so paid or distributed in
respect of the Investment Property shall be received by such Grantor, such
Grantor shall, until such money or property is paid or delivered to the
Collateral Agent, hold such money or property in trust for the Collateral
Agent, segregated from other funds of such Grantor, as additional Collateral
for the Notes Obligations.

 

(b)                                 Without the prior written consent of the Collateral Agent,
such Grantor will not (i) vote to enable, or take any other action to
permit, any Issuer to issue any equity interests of any nature or to issue any
other securities or interests convertible into or granting the right to
purchase or exchange for any equity interests of any nature of any Issuer, except,
in each case, as permitted by the Indenture, (ii) sell, assign, transfer,
exchange, or otherwise dispose of, or grant any option with respect to, the
Investment Property or Proceeds thereof (except pursuant to a transaction
expressly permitted by the Indenture) other than, with respect to Investment
Property not constituting Pledged Equity or Pledged Notes, any such action
which is not prohibited by the Indenture, (iii) create, incur or permit to
exist any Lien or option in favor of, or any claim of any Person with respect
to, any of the Investment Property or Proceeds thereof, or any interest
therein, except for Permitted Liens, or (iv) enter into any agreement or
undertaking restricting the right or ability of such Grantor or the Collateral
Agent to sell, assign or transfer any of the Investment Property or Proceeds
thereof, except, with respect to such Investment Property, shareholders’
agreements entered into by such Grantor with respect to Persons in which such
Grantor maintains an ownership interest of 50% or less.

 

(c)                                  In the case of each Grantor which is an Issuer, such Issuer
agrees that (i) it will be bound by the terms of this Agreement relating
to the Investment Property issued by it and will comply with such terms insofar
as such terms are applicable to it, (ii) it will notify the Collateral
Agent promptly in writing of the occurrence of any of the events described in Section 5.5(a) with
respect to the Investment Property issued by it and (iii) the terms of Sections
6.3(c) and 6.7 shall apply to such Grantor with respect to all
actions that may be required of it pursuant to Section 6.3(c) or
6.7 regarding the Investment Property issued by it.

 

5.6                                 Receivables.  (a) Other than in the ordinary course of
business consistent with its past practice and in amounts which are not
material to such Grantor, such Grantor will not (i) grant any extension of
the time of payment of any Receivable other than extensions which such Grantor
deems reasonable and consistent with prudent business practice, (ii) compromise
or settle any Receivable for less than the full amount thereof, (iii) release,
wholly or partially, any Person liable for the payment of any Receivable, (iv) allow
any credit or discount whatsoever on any Receivable or (v) amend,
supplement or modify any Receivable in any manner that could adversely affect
the value thereof.

 

14

 

(b)                                 Such Grantor will deliver to the Collateral Agent a copy of
each material demand, notice or document received by it that questions or calls
into doubt the validity or enforceability of more than 5% of the aggregate
amount of the then outstanding Receivables for all Grantors.

 

5.7                                 Intellectual Property.  (a) Such Grantor (either itself or
through licensees) will (i) continue to use each Trademark material to its
business in order to maintain such Trademark in full force free from any claim
of abandonment for non-use, (ii) maintain as in the past the quality of
products and services offered under such Trademark, (iii) use such
Trademark with the appropriate notice of registration and all other notices and
legends required by applicable law, (iv) not adopt or use any mark which
is confusingly similar or a colorable imitation of such Trademark unless the
Collateral Agent shall obtain a perfected security interest in such mark
pursuant to this Agreement, and (v) not (and not permit any licensee or
sublicensee thereof to) do any act or knowingly omit to do any act whereby such
Trademark may become invalidated or impaired in any way except, in the case of
each of clauses (i) through (v) of this Section 5.7(a),
to the extent that it could not reasonably be expected to cause a Material
Adverse Effect.

 

(b)                                 Such Grantor (either itself or through licensees) will not
do any act, or omit to do any act, whereby any Patent material to its business
may become forfeited, abandoned or dedicated to the public.

 

(c)                                  Such Grantor (either itself or through licensees) (i) will
employ each Copyright material to its business and (ii) will not (and will
not permit any licensee or sublicensee thereof to) do any act or knowingly omit
to do any act whereby any material portion of such Copyrights may become
invalidated or otherwise impaired. Such Grantor will not (either itself or
through licensees) do any act whereby any material portion of such Copyrights
may fall into the public domain.

 

(d)                                 Such Grantor (either itself or through licensees) will not
do any act that knowingly infringes the intellectual property rights of any
other Person.

 

(e)                                  Such Grantor will notify the Collateral Agent promptly if it
knows that any application or registration relating to any material
Intellectual Property owned by a Grantor or material to a Grantor’s business
may become forfeited, abandoned or dedicated to the public, or of any adverse
determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any court or tribunal
in any country) regarding, such Grantor’s ownership of, or the validity of, any
material Intellectual Property or such Grantor’s right to register the same or
to own and maintain the same.

 

(f)                                    Whenever such Grantor, either by itself or through any
agent, employee, licensee or designee, shall file an application for the
registration of any Intellectual Property with the United States Patent and
Trademark Office, the United States Copyright Office or any similar office or
agency in any other country or any political subdivision thereof, such Grantor
shall report such filing to the Collateral Agent concurrently with the next
delivery of financial statements of the applicable Grantor pursuant to Section 4.3(a)(1) of
the Indenture. Upon the request of the Collateral Agent, such Grantor shall
execute and deliver, and have recorded, any and all agreements, instruments,
documents, and papers as the Collateral Agent may request to 

 

15

 

evidence
the Collateral Agent’s security interest in any Copyright, Patent or Trademark
and the goodwill and general intangibles of such Grantor relating thereto or
represented thereby.

 

(g)                                 Such Grantor will take all reasonable and necessary steps to
maintain and pursue each application (and to obtain the relevant registration)
and to maintain each registration of all material Intellectual Property owned
by it.

 

(h)                                 In the event that any material Intellectual Property owned
by a Grantor or material to a Grantor’s business is infringed upon or misappropriated
or diluted by a third party, such Grantor shall (i) take such actions as
such Grantor shall reasonably deem appropriate under the circumstances to
protect such Intellectual Property and (ii) if such Intellectual Property
is of material economic value, promptly notify the Collateral Agent after it
learns thereof and, to the extent, in its reasonable judgment, such Grantor
determines it appropriate under the circumstances, sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and
to recover any and all damages for such infringement, misappropriation or
dilution.  If Grantor fails to take
action under clause (i) or (ii) for one hundred twenty
(120) days after Grantor becomes aware of such infringement, misappropriation
or dilution, after the Discharge of Credit Facility Obligations, the Collateral
Agent is hereby authorized to take action on behalf of the Grantor to the
extent the infringement, misappropriation or dilution would have an adverse
effect on the Collateral Agent or the Collateral Agent’s interests in the
Collateral hereunder.

 

5.8                                 Counterparty Undertakings.

 

(a)                                  Each Grantor shall keep the Collateral Agent informed of all
circumstances bearing upon any material potential claim under or with respect to
the Material Contracts and the Counterparty Undertakings and such Grantor shall
not, without the prior written consent of the Collateral Agent, (i) waive
any of its rights or remedies under any Material Contract with respect to any
of the Counterparty Undertakings in excess of $100,000, (ii) settle,
compromise or offset any amount payable by the counterparties to such Grantor
under any Material Contract in excess of $100,000 or (iii) amend or
otherwise modify any Material Contract in any manner which is adverse to the
interests of the Collateral Agent.

 

(b)                                 Each Grantor shall perform and observe all the terms and
conditions of each Material Contract to be performed by it, maintain each
Material Contract in full force and effect, enforce in all material respects
each Material Contract in accordance with its terms and take all such action to
such end as may from time to time be reasonably requested by the Collateral
Agent, except where except where the Grantor demonstrates that the failure to
do so would not result in a loss or losses to such Grantor or an impairment to
the value of the Collateral that in the aggregate exceeds $3,500,000; provided
that the foregoing exception shall not apply to any Material Contract that is
necessary for the conduct of the business of the Grantors taken as a whole.

 

(c)                                  Anything herein to the contrary notwithstanding, (i) each
applicable Grantor shall remain liable under each Material Contract to the
extent set forth therein to perform all of its duties and obligations thereunder
to the same extent as if this Agreement had not been executed, (ii) the
exercise by the Collateral Agent of any of its rights hereunder shall not
release any 

 

16

 

Grantor
from any of its duties or obligations under any Material Contract and (iii) the
Collateral Agent shall not have any obligation or liability under any Material
Contract by reason of this Agreement, nor shall the Collateral Agent be
obligated to perform any of the obligations or duties of any Grantor thereunder
or to take any action to collect or enforce any claim for payment assigned
hereunder.

 

5.9                                 Depositary and Other Deposit Accounts.  No Grantor shall
open new depositary or other deposit accounts unless such Grantor shall have
received the prior written consent of the Credit Facility Agent or, if the
Discharge of Credit Facility Obligations has occurred, the Collateral Agent;
provided that no consent of the Collateral Agent shall be required to the
extent an agreement has been entered into in order to give the Collateral Agent
“control” (as defined in the UCC) of such account.  The Grantors shall deliver to the Collateral
Agent a revised version of Schedule 6 showing any changes thereto within
5 days of any such change. Each Grantor hereby authorizes the financial
institutions at which such Grantor maintains a Deposit Account to provide the
Collateral Agent with such information with respect to such Deposit Account as
the Collateral Agent may from time to time reasonably request, and each Grantor
hereby consents to such information being provided to the Collateral Agent.
Each Grantor will, upon the Collateral Agent’s request, cause each financial
institution at which such Grantor maintains a depositary or other Deposit
Account to enter into a bank agency or other similar agreement with the
Collateral Agent and such Grantor, in form and substance satisfactory to the
Collateral Agent, in order to give the Collateral Agent “control” (as defined
in the UCC) of such account. Each Grantor shall direct all Account Debtors to
make all payments on the Accounts directly to a Deposit Account designated by
the Credit Facility Agent in which the Collateral Agent has a perfected
security interest or, if the Discharge of Credit Facility Obligations has occurred,
to a Deposit Account in which the Collateral Agent has a perfected security
interest.  If any Grantor or any
director, officer, employee, agent of such Grantor, or any other Person acting
for or in concert with such Grantor shall receive any monies, checks, notes,
drafts or other payments relating to or as proceeds of Accounts or other
Collateral, such Grantor and each such Person shall receive all such items in
trust for, and as the sole and exclusive property of, the Credit Facility Agent
(and after Discharge of Credit Facility Obligations, the Collateral Agent) and,
promptly (and in any event within one Business Day) upon receipt thereof, shall
remit the same (or cause the same to be remitted) in kind to a Deposit Account
in which the Collateral Agent has a perfected security interest, subject to any
rights of the Grantors to use such proceeds pursuant to the Indenture. The
Grantors, jointly and severally, agree to pay all fees, costs and expenses in
connection with opening and maintaining each Account, control agreements with
respect thereto, and depositing for collection by the Collateral Agent any
check or other item of payment received by the Collateral Agent on account of
the Notes Obligations. All of such fees, costs and expenses shall constitute
Notes Obligations hereunder and shall be payable to the Collateral Agent by the
Grantors upon demand. All checks, drafts, instruments and other items of
payment or proceeds of Collateral shall be endorsed by the applicable Grantor
to the Collateral Agent, and, if that endorsement of any such item shall not be
made for any reason, after Discharge of Credit Facility Obligations, the
Collateral Agent is hereby irrevocably authorized to endorse the same on such
Grantor’s behalf for the purpose of this section, each Grantor irrevocably
hereby makes, constitutes and appoints the Collateral Agent (and all Persons
designated by the Collateral Agent for that purpose) as such Grantor’s true and
lawful attorney and agent-in-fact (a) to endorse such Grantor’s name upon
said items of payment and/or proceeds of Collateral and upon any Chattel Paper,
document, Instrument, invoice or similar document or agreement relating to any
Account 

 

17

 

of
such Grantor or goods pertaining thereto; (b) to take control in any
manner of any item of payment or proceeds thereof; and (c) while a Default
has occurred and is continuing, to have access to any lock box or postal box
into which any of such Grantor’s mail is deposited, and open and process all
mail addressed to the such Grantor and deposited therein.

 

5.10                           Other Matters.

 

(a)                                  [Intentionally Omitted].

 

(b)                                 Each Grantor authorizes the Collateral Agent to, at any time
and from time to time, file financing statements, continuation statements, and
amendments thereto that describe the Collateral as “all assets” of each
Grantor, or words of similar effect, and which contain any other information
required pursuant to the UCC for the sufficiency of filing office acceptance of
any financing statement, continuation statement, or amendment, and each Grantor
agrees to furnish any such information to the Collateral Agent promptly upon
request. Any such financing statement, continuation statement, or amendment may
be signed by the Collateral Agent on behalf of any Grantor and may be filed at
any time in any jurisdiction.

 

(c)                                  Each Grantor shall, at any time and from time to time, take
such steps as the Collateral Agent may reasonably request for the Collateral
Agent (i) to obtain an acknowledgement, in form and substance reasonably
satisfactory to the Collateral Agent, of any bailee having possession of any of
the Collateral, stating that the bailee holds such Collateral for the
Collateral Agent, (ii) after Discharge of Credit Facility Obligations, to obtain
“control” of any letter-of-credit rights, or electronic chattel paper (as such
terms are defined by the UCC with corresponding provisions thereof defining
what constitutes “control” for such items of Collateral), with any agreements
establishing control to be in form and substance reasonably satisfactory to the
Collateral Agent, and (iii) otherwise to insure the continued perfection
and priority of the Collateral Agent’s security interest in any of the
Collateral and of the preservation of its rights therein. If any Grantor shall
at any time, acquire a “commercial tort claim” (as such term is defined in the
UCC) in excess of $100,000, such Grantor shall promptly notify the Collateral
Agent thereof in writing and supplement Schedule 7, therein providing a
reasonable description and summary thereof, and upon delivery thereof to the
Collateral Agent, such Grantor shall be deemed to thereby grant to the
Collateral Agent (and such Grantor hereby grants to the Collateral Agent) a
security interest and lien in and to such commercial tort claim and all
proceeds thereof, all upon the terms of and governed by this Agreement.

 

(d)                                 Without limiting the generality of the foregoing, if any
Grantor at any time holds or acquires an interest in any electronic chattel paper
or any “transferable record”, as that term is defined in Section 201 of
the federal Electronic Signatures in Global and National Commerce Act, or in Section 16
of the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction, such Grantor shall promptly notify the Collateral Agent thereof
and, at the request of the Collateral Agent (after Discharge of Credit Facility
Obligations), shall take such action as the Collateral Agent may reasonably
request to vest in the Collateral Agent “control” under Section 9-105 of
the UCC of such electronic chattel paper or control under Section 201 of
the federal Electronic Signatures in Global and National Commerce Act or, as
the case may be, Section 16 of the Uniform Electronic Transactions Act, as
so in effect in such jurisdiction, of such transferable record. The Collateral
Agent agrees with the Grantors that the Collateral Agent will

 

18

 

arrange,
pursuant to procedures satisfactory to the Collateral Agent and so long as such
procedures will not result in the Collateral Agent’s loss of control, for the
Grantors to make alterations to the electronic chattel paper or transferable
record permitted under Section 9-105 of the UCC or, as the case may be, Section 201
of the federal Electronic Signatures in Global and National Commerce Act or Section 16
of the Uniform Electronic Transactions Act for a party in control to make
without loss of control, unless a Default has occurred and is continuing or
would occur after taking into account any action by any Grantor with respect to
such electronic chattel paper or transferable record.

 

Section 6                                               Remedial Provisions.

 

6.1                                 Certain Matters Relating to Receivables.  (a) Each
Grantor shall keep proper books and records in which full, true and correct
entries are made of all dealings and transactions in relation to its business
and activities in accordance with GAAP. 
Each Grantor shall permit the Collateral Agent or any representative
thereof, upon reasonable prior notice, to visit and inspect its properties, to
examine, audit and make extracts from its books and records, and to discuss its
affairs, finances and condition with its officers and independent accountants,
all at such reasonable times and as often as reasonably requested.  At any time and from time to time after the
occurrence and during the continuance of an Event of Default, upon the
Collateral Agent’s request and at the expense of the relevant Grantor, such
Grantor shall use reasonable efforts to cause independent public accountants or
others satisfactory to the Collateral Agent to furnish to the Collateral Agent
reports showing reconciliations and verifications of the Receivables.

 

(b)                                 Subject to the terms of the Intercreditor Agreement, the
Collateral Agent hereby authorizes each Grantor to collect such Grantor’s
Receivables, subject to Section 5.9, and the Collateral Agent may
curtail or terminate such authority at any time after the occurrence and during
the continuance of a Default. Subject to the terms of the Intercreditor
Agreement, if required by the Collateral Agent at any time after the occurrence
and during the continuance of an Event of Default, any payments of Receivables,
when collected by any Grantor, (i) shall be forthwith (and, in any event,
within two (2) Business Days) deposited by such Grantor in the exact form
received, duly endorsed by such Grantor to the Collateral Agent if required, in
a Lockbox Account maintained under the sole dominion and control of the
Collateral Agent, subject to withdrawal by the Collateral Agent as provided in Section 6.5,
and (ii) until so turned over, shall be held by such Grantor in trust for
the Collateral Agent, segregated from other funds of such Grantor. Each such
deposit of Proceeds of Receivables shall be accompanied by a report identifying
in reasonable detail the nature and source of the payments included in the
deposit.

 

(c)                                  Subject to the terms of the Intercreditor Agreement, at any
time and from time to time after the occurrence and during the continuance of a
Default, at the Collateral Agent’s request, each Grantor shall deliver to the
Collateral Agent all original and other documents evidencing, and relating to,
the agreements and transactions which gave rise to the Receivables, including
all original orders, invoices and receipts.

 

(d)                                 Subject to the terms of the Intercreditor Agreement, each
Grantor hereby irrevocably authorizes and empowers the Collateral Agent, in the
Collateral Agent’s sole discretion, at any time that after the occurrence and
during the continuance of an Event of Default and after the Collateral Agent
has provided such Grantor with three (3) Business Days’ 

 

19

 

prior
notice, to assert, either directly or on behalf of such Grantor, any claim such
Grantor may from time to time have against the counterparties under or with
respect to the Contracts and to receive and collect any and all damages, awards
and other monies resulting therefrom and to apply the same to the Notes
Obligations. Each Grantor hereby irrevocably makes, constitutes and appoints
the Collateral Agent as its true and lawful attorney in fact for the purpose of
enabling the Collateral Agent to assert and collect such claims and to apply
such monies in the manner set forth above, which appointment, being coupled
with an interest, is irrevocable.

 

6.2                                 Communications with Obligors; Grantors Remain Liable.  (a) Subject to
the terms of the Intercreditor Agreement, the Collateral Agent in its own name
or in the name of others may at any time after the occurrence and during the
continuance of a Default and after the Collateral Agent has provided such
Grantor with three (3) Business Days’ prior notice communicate with
obligors under the Receivables to verify with them to the Collateral Agent’s
satisfaction the existence, amount and terms of any Receivables.

 

(b)                                 Subject to the terms of the Intercreditor Agreement, upon
the request of the Collateral Agent at any time after the occurrence and during
the continuance of a Default, each Grantor shall notify obligors on the
Receivables that the Receivables have been assigned to the Collateral Agent and
that payments in respect thereof shall be made directly to the Collateral
Agent.

 

(c)                                  Anything herein to the contrary notwithstanding, each
Grantor shall remain liable in respect of each of the Receivables to observe
and perform all the conditions and obligations to be observed and performed by
it thereunder, all in accordance with the terms of any agreement giving rise
thereto. The Collateral Agent shall not have any obligation or liability under
any Receivable (or any agreement giving rise thereto) by reason of or arising
out of this Agreement or the receipt by the Collateral Agent of any payment
relating thereto, nor shall the Collateral Agent be obligated in any manner to
perform any of the obligations of any Grantor under or pursuant to any
Receivable (or any agreement giving rise thereto), to make any payment, to make
any inquiry as to the nature or the sufficiency of any payment received by it
or as to the sufficiency of any performance by any party thereunder, to present
or file any claim, to take any action to enforce any performance or to collect
the payment of any amounts which may have been assigned to it or to which it
may be entitled at any time or times.

 

(d)                                 For the purpose of enabling the Collateral Agent to exercise
rights and remedies under this Agreement after the occurrence and during the
continuation of a Default, each Grantor hereby grants to the Collateral Agent
an irrevocable, nonexclusive license (exercisable without payment of royalty or
other compensation to such Grantor) to use, license or sublicense any
Intellectual Property now owned or hereafter acquired by such Grantor, and
wherever the same may be located, and including in such license access to all
media in which any of the licensed items may be recorded or stored and to all
computer software and programs used for the compilation or printout thereof.

 

6.3                                 Investment Property.  (a) Unless an Event of Default shall
have occurred and be continuing and the Collateral Agent shall have given
notice to the relevant Grantor of the Collateral Agent’s intent to exercise its
corresponding rights pursuant to Section 6.3(b), each Grantor shall
be permitted to receive all cash dividends and distributions paid in respect of
the 

 

20

 

Pledged
Equity and all payments made in respect of the Pledged Notes, to the extent permitted
in the Indenture, and to exercise all voting and other rights with respect to
the Investment Property; provided, that no vote shall be cast or other
right exercised or action taken which could impair the Collateral or which
would be inconsistent with or result in any violation of any provision of the
Notes Documents or any other Related Agreement.

 

(b)                                 If a Default shall occur and be continuing and the
Collateral Agent shall give notice of its intent to exercise such rights to the
relevant Grantor or Grantors, subject to the terms of the Intercreditor
Agreement (i) the Collateral Agent shall have the right to receive any and
all cash dividends and distributions, payments or other Proceeds paid in
respect of the Investment Property and make application thereof to the Notes
Obligations in accordance with Section 6.5 hereof, and (ii) any
or all of the Investment Property shall be registered in the name of the
Collateral Agent or its nominee, and the Collateral Agent or its nominee may
thereafter exercise (x) all voting and other rights pertaining to such
Investment Property at any meeting of holders of the equity interests of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of
conversion, exchange and subscription and any other rights, privileges or
options pertaining to such Investment Property as if it were the absolute owner
thereof (including the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization, recapitalization
or other fundamental change in the corporate or other structure of any Issuer,
or upon the exercise by any Grantor or the Collateral Agent of any right,
privilege or option pertaining to such Investment Property, and in connection
therewith, the right to deposit and deliver any and all of the Investment
Property with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Collateral Agent may
determine), all without liability except to account for property actually
received by it, but the Collateral Agent shall have no duty to any Grantor to
exercise any such right, privilege or option and shall not be responsible for
any failure to do so or delay in so doing.

 

(c)                                  Subject to the terms of the Intercreditor Agreement, each
Grantor hereby authorizes and instructs each Issuer of any Investment Property
pledged by such Grantor hereunder over which it has control or the ability to
influence to (i) comply with any instruction received by it from the Collateral
Agent in writing that (x) states that a Default has occurred and is
continuing and (y) is otherwise in accordance with the terms of this
Agreement, without any other or further instructions from such Grantor, and
each Grantor agrees that each Issuer shall be fully protected in so complying
and (ii) unless otherwise expressly permitted hereby, pay any dividends,
distributions or other payments with respect to the Investment Property
directly to the Collateral Agent.

 

6.4                                 Proceeds to be Turned Over to the Collateral Agent.  In addition to the
rights of the Collateral Agent specified in Section 6.1 with
respect to payments of Receivables, subject to the terms of the Intercreditor
Agreement, if a Default shall occur and be continuing, all Proceeds received by
any Grantor consisting of cash, checks and other cash equivalent items shall be
held by such Grantor in trust for the Collateral Agent, segregated from other
funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be
turned over to the Collateral Agent in the exact form received by such Grantor
(duly endorsed by such Grantor to the Collateral Agent, if required). All
Proceeds received by the Collateral Agent hereunder shall be held by the
Collateral Agent in a collateral account maintained under its sole dominion and
control. All Proceeds, while held by the Collateral Agent in any collateral
account (or by such Grantor in 

 

21

 

trust
for the Collateral Agent) established pursuant hereto, shall continue to be
held as collateral security for the Notes Obligations and shall not constitute
payment thereof until applied as provided in Section 6.5.

 

6.5                                 Application of Proceeds.  Subject to the terms of the Intercreditor
Agreement, at such intervals as may be agreed upon by the applicable Grantor
and the Collateral Agent, or, if a Default shall have occurred and be
continuing, at any time at the Collateral Agent’s election, the Collateral
Agent may apply all or any part of Proceeds from the sale of, or other
realization upon, all or any part of the Collateral in payment of the Notes
Obligations in such order as the Collateral Agent shall determine in its
discretion. Any part of such funds which the Collateral Agent elects not so to
apply and deems not required as collateral security for the Notes Obligations
shall be paid over from time to time by the Collateral Agent to the applicable
Grantor or to whomsoever may be lawfully entitled to receive the same. Any
balance of such Proceeds remaining after the Discharge of Notes Obligations
shall be paid over to the applicable Grantor or to whomsoever may be lawfully
entitled to receive the same. In the absence of a specific determination by the
Collateral Agent, the Proceeds from the sale of, or other realization upon, all
or any part of the Collateral in payment of the Notes Obligations shall be
applied in the following order:

 

FIRST, to the payment of all fees, costs,
expenses and indemnities of the Collateral Agent and any other Notes
Obligations owing to the Collateral Agent in respect of sums advanced by the
Collateral Agent to preserve the Collateral or to preserve its security
interest in the Collateral, until paid in full;

 

SECOND, to the payment of all of the Notes
Obligations including accrued and unpaid interest owing to the Collateral Agent
until paid in full; and

 

THIRD, to the payment of any remaining
Proceeds, if any, to whomever may be lawfully entitled to receive such amounts.

 

6.6                                 Code and Other Remedies.  If an Event of Default shall occur and be
continuing, subject to the terms of the Intercreditor Agreement, the Collateral
Agent may exercise, in addition to all other rights and remedies granted to
them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Notes Obligations, all rights and remedies of a
secured party under the UCC or any other applicable law. Without limiting the
generality of the foregoing, the Collateral Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of
any kind (except any notice required by law referred to below) to or upon any
Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances forthwith
collect, receive, appropriate and realize upon the Collateral, or any part
thereof, and/or may forthwith sell, lease, assign, give options to purchase, or
otherwise dispose of and deliver the Collateral or any part thereof (or
contract to do any of the foregoing), in one or more parcels at public or
private sale or sales, at any exchange, broker’s board or office of the
Collateral Agent or elsewhere upon such terms and conditions as it may deem
advisable and at such prices as it may deem best, for cash or on credit or for
future delivery with assumption of any credit 

 

22

 

risk.
The Collateral Agent shall have the right upon any such public sale or sales,
and, to the extent permitted by law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption in any Grantor, which right or equity is hereby waived and
released. Each Grantor further agrees, at the Collateral Agent’s request, to
assemble the Collateral and make it available to the Collateral Agent at places
which the Collateral Agent shall reasonably select, whether at such Grantor’s
premises or elsewhere.  The Collateral
Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.6,
after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the
Collateral Agent hereunder, including reasonable attorneys’ fees and
disbursements, to the payment in whole or in part of the Notes Obligations, in
accordance with Section 6.5 hereof, and only after such application
and after the payment by the Collateral Agent of any other amount required by
any provision of law, need the Collateral Agent account for the surplus, if
any, to any Grantor. To the extent permitted by applicable law, each Grantor
waives all claims, damages and demands it may acquire against the Collateral
Agent arising out of the exercise by them of any rights hereunder. If any
notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least ten
(10) days before such sale or other disposition.

 

6.7                                 Private Sales of Pledged Equity.

 

(a)                                  Each Grantor recognizes that the Collateral Agent may be
unable to effect a public sale of any or all the Pledged Equity, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may be compelled to resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and, notwithstanding
such circumstances, agrees that any such private sale shall be deemed to have
been made in a commercially reasonable manner. The Collateral Agent shall be
under no obligation to delay a sale of any of the Pledged Equity for the period
of time necessary to permit the Issuer thereof to register such securities or
other interests for public sale under the Securities Act, or under applicable
state securities laws, even if such Issuer would agree to do so.

 

(b)                                 Each Grantor agrees to use its best efforts to do or cause
to be done all such other acts as may be necessary to make such sale or sales
of all or any portion of the Pledged Equity pursuant to this Section 6.7
valid and binding and in compliance with applicable law. Each Grantor further
agrees that a breach of any of the covenants contained in this Section 6.7
will cause irreparable injury to the Collateral Agent, that the Collateral
Agent has no adequate remedy at law in respect of such breach and, as a
consequence, that each and every covenant contained in this Section 6.7
shall be specifically enforceable against such Grantor, and such Grantor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Default has occurred
under the Indenture.

 

23

 

6.8                                 Waiver; Deficiency.  Each Grantor waives and agrees not to assert
any rights or privileges which it may acquire under Section 9-626 of the
UCC. Each Grantor shall remain liable for any deficiency if the proceeds of any
sale or other disposition of the Collateral are insufficient to pay the Notes
Obligations in full and the fees and disbursements of any attorneys employed by
the Collateral Agent to collect such deficiency.

 

6.9                                 Collateral Access.  The Collateral Agent shall be granted access
to the Grantors’ records and billings systems and shall be granted, at the
Grantors’ expense, licenses (including software updates) to allow the
Collateral Agent to realize the value of all Contracts.  In no event shall the Collateral Agent
disclose to any third parties any of the Grantors’ technology infrastructure
without the written consent of the applicable Grantor.

 

Section 7                                               Collateral Agent.

 

7.1                                 Collateral Agent’s Appointment as Attorney-in-Fact, etc.  (a) Subject to
the terms of the Intercreditor Agreement, each Grantor hereby irrevocably
constitutes and appoints the Collateral Agent and any officer or agent thereof,
with full power of substitution, as its true and lawful attorney-in-fact with
full irrevocable power and authority in the place and stead of such Grantor and
in the name of such Grantor or in its own name, for the purpose of carrying out
the terms of this Agreement, to take any and all appropriate action and to execute
any and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Agreement, and, without limiting the generality
of the foregoing, each Grantor hereby gives the Collateral Agent the power and
right, on behalf of and at the expense of such Grantor, without notice to or
assent by such Grantor, to do any or all of the following:

 

(i)                                     in the name of such Grantor
or its own name, or otherwise, take possession of and endorse and collect any
checks, drafts, notes, acceptances or other instruments for the payment of
moneys due under any Receivable or with respect to any other Collateral and
file any claim or take any other action or proceeding in any court of law or
equity or otherwise deemed appropriate by the Collateral Agent for the purpose
of collecting any and all such moneys due under any Receivable or with respect
to any other Collateral whenever payable;

 

(ii)                                  in the case of any
Intellectual Property, execute and deliver, and have recorded, any and all
agreements, instruments, documents and papers as the Collateral Agent may
request to evidence the Collateral Agent’s security interest in such
Intellectual Property and the goodwill and general intangibles of such Grantor
relating thereto or represented thereby;

 

(iii)                               discharge Liens levied or
placed on or threatened against the Collateral, and effect any repairs or
insurance called for by the terms of this Agreement and pay all or any part of
the premiums therefor and the costs thereof;

 

(iv)                              execute, in connection with
any sale provided for in Section 6.6 or 6.7, any
endorsements, assignments or other instruments of conveyance or transfer with
respect to the Collateral; and

 

24

 

(v)                                 (1) direct any party
liable for any payment under any of the Collateral to make payment of any and
all moneys due or to become due thereunder directly to the Collateral Agent or
as the Collateral Agent shall direct; (2) ask or demand for, collect, and
receive payment of and receipt for, any and all moneys, claims and other
amounts due or to become due at any time in respect of or arising out of any
Collateral; (3) sign and endorse any invoices, freight or express bills,
bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in connection with any
of the Collateral; (4) commence and prosecute any suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral; (5) defend any suit, action or proceeding
brought against such Grantor with respect to any Collateral; (6) settle,
compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such discharges or releases as the Collateral Agent may deem
appropriate; (7) assign any Copyright, Patent or Trademark, throughout the
world for such term or terms, on such conditions, and in such manner, as the
Collateral Agent shall in its sole discretion determine; (8) vote any
right or interest with respect to any Investment Property; (9) order good
standing certificates and conduct lien searches in respect of such
jurisdictions or offices as the Collateral Agent may deem appropriate; and (10) generally
sell, transfer, pledge and make any agreement with respect to or otherwise deal
with any of the Collateral as fully and completely as though the Collateral
Agent were the absolute owner thereof for all purposes, and do, at the Collateral
Agent’s option and such Grantor’s expense, at any time, or from time to time,
all acts and things which the Collateral Agent deems necessary to protect,
preserve or realize upon the Collateral and the Collateral Agent’s security
interests therein and to effect the intent of this Agreement, all as fully and
effectively as such Grantor might do.

 

Anything in this Section 7.1(a) to
the contrary notwithstanding, the Collateral Agent agrees that it will not
exercise any rights under the power of attorney provided for in this Section 7.1(a) unless
a Default shall have occurred and be continuing.

 

(b)                                 If any Grantor fails to perform or comply with any of its
agreements contained herein, subject to the terms of the Intercreditor
Agreement, the Collateral Agent, at its option, but without any obligation so
to do, may perform or comply, or otherwise cause performance or compliance,
with such agreement.

 

(c)                                  Each Grantor hereby ratifies all that such attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations
and agencies contained in this Agreement are coupled with an interest and are
irrevocable until this Agreement is terminated and the security interests
created hereby are released.

 

7.2                                 Duty of Collateral Agent.  The Collateral Agent’s sole duty with respect
to the custody, safekeeping and physical preservation of the Collateral in its
possession shall be to deal with it in the same manner as the Collateral Agent
deals with similar property for its own account. Neither the Collateral Agent
nor any of their respective officers, directors, employees or agents shall be
liable for any failure to demand, collect or realize upon any of the Collateral
or for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any Collateral upon the request of any Grantor or any
other Person or to take any other action 

 

25

 

whatsoever
with regard to the Collateral or any part thereof. The powers conferred on the
Collateral Agent hereunder are solely to protect the Collateral Agent’s
interests in the Collateral and shall not impose any duty upon the Collateral
Agent to exercise any such powers. The Collateral Agent shall be accountable
only for amounts that they actually receive as a result of the exercise of such
powers, and neither they nor any of their officers, directors, employees or
agents shall be responsible to any Grantor for any act or failure to act
hereunder.

 

Section 8                                               Miscellaneous.

 

8.1                                 Amendments in Writing.  None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
writing signed by the Grantors and the Collateral Agent.

 

8.2                                 Notices.  All notices, requests and demands to or upon
the Collateral Agent or any Grantor hereunder shall be effected in the manner
provided for in Section 13.2 of the Indenture and each Grantor
hereby appoints Holdings as its agent to receive notices hereunder.

 

8.3                                 Indemnification by Grantors.  Each Grantor hereby agrees, on a joint and
several basis, to indemnify, exonerate and hold the Collateral Agent and each
of the officers, directors, employees, Affiliates and agents of the Collateral
Agent (each a “the Collateral Agent Party”) free and harmless from and
against any and all actions, causes of action, suits, losses, liabilities,
damages and expenses, including attorneys’ fees and disbursements
(collectively, the “Indemnified Liabilities”), incurred by the
Collateral Agent Parties or any of them as a result of, or arising out of, or
relating to (a) any tender offer, merger, purchase of equity interests,
purchase of assets (including the related transactions) or other similar
transaction with respect to the Grantors or the Collateral, (b) the use,
handling, release, emission, discharge, transportation, storage, treatment or
disposal of any hazardous substance at any property owned or leased by any
Grantor or any Subsidiary, (c) any violation of any Environmental Laws
with respect to conditions at any property owned or leased by any Grantor or
any Subsidiary or the operations conducted thereon, (d) the investigation,
cleanup or remediation of offsite locations at which any Grantor or any
Subsidiary or their respective predecessors are alleged to have directly or
indirectly disposed of hazardous substances or (e) the execution,
delivery, performance or enforcement of this Agreement or any other Note
Document by any Collateral Agent Party, except to the extent any such
Indemnified Liabilities result from the applicable Collateral Agent Party’s own
gross negligence or willful misconduct as determined by a court of competent
jurisdiction. If and to the extent that the foregoing undertaking may be
unenforceable for any reason, each Grantor hereby agrees to make the maximum
contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law. All obligations provided
for in this Section 8.3 shall survive the Discharge of Notes
Obligations.

 

8.4                                 Enforcement Expenses.  (a) Each Grantor agrees, on a joint and
several basis, to pay or reimburse on demand the Collateral Agent for all
reasonable out-of-pocket costs and expenses (including Legal Costs of counsel
for the Collateral Agent) incurred in collecting against any Grantor under the
guaranty contained in Section 2 or otherwise enforcing or
preserving any rights under this Agreement and any other Note Document.

 

26

 

(b)                                 Each Grantor agrees to pay, and to save the Collateral Agent
harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes which may be
payable or determined to be payable with respect to any of the Collateral or in
connection with any of the transactions contemplated by this Agreement.

 

(c)                                  The agreements in this Section 8.4 shall survive
the Discharge of Notes Obligations.

 

8.5                                 Captions.  Section captions used in this Agreement
are for convenience only and shall not affect the construction of this
Agreement.

 

8.6                                 Nature of Remedies.  All Notes Obligations of each Grantor and
rights of the Collateral Agent expressed herein shall be in addition to and not
in limitation of those provided by applicable law. No failure to exercise and
no delay in exercising, on the part of the Collateral Agent, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.

 

8.7                                 Counterparts.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts
and each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Agreement. Receipt
by telecopy or portable document format of any executed signature page to
this Agreement shall constitute effective delivery of such signature page.

 

8.8                                 Severability.  The illegality or unenforceability of any
provision of this Agreement or any instrument or agreement required hereunder
shall not in any way affect or impair the legality or enforceability of the
remaining provisions of this Agreement or any instrument or agreement required
hereunder.

 

8.9                                 Entire Agreement.  This Agreement, together with the other Notes
Documents and the Intercreditor Agreement, embody the entire agreement and
understanding among the parties hereto and supersede all prior or
contemporaneous representations, agreements and understandings of such Persons,
verbal or written, relating to the subject matter hereof and thereof and any
prior arrangements made with respect to the payment by any Grantor of (or any indemnification
for) any fees, costs or expenses payable to or incurred (or to be incurred) by
or on behalf of the Collateral Agent.

 

8.10                           Successors; Assigns.  This Agreement shall be binding upon the
Grantors, the Collateral Agent and their respective successors and assigns, and
shall inure to the benefit of the Grantors, the Collateral Agent and the
permitted successors and assigns of the Collateral Agent. No other Person shall
be a direct or indirect legal beneficiary of, or have any direct or indirect cause
of action or claim in connection with, this Agreement or any of the other
Related Agreements. No Grantor may assign or transfer any of its rights or
obligations under this Agreement without the prior written consent of the
Collateral Agent.

 

8.11                           Governing Law.  THE INTERNAL LAW OF THE STATE OF NEW YORK
WILL GOVERN AND BE USED TO CONSTRUE THIS AGREEMENT WITHOUT GIVING

 

27

 

EFFECT
TO APPLICABLE PRINCIPLES OF LAW OF THE STATE OF NEW YORK, CONFLICTS OF LAW, OTHER
THAN SECTION 5-1402 AND SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW
OF THE STATE OF NEW YORK, TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

8.12                           Consent to Arbitration.

 

(a)                                  Any dispute, controversy, or claim arising out of, relating
to, or in connection with this contract, or the breach, termination, or
validity thereof, shall be finally settled by arbitration.  The arbitration shall be conducted in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association (the “AAA”) in effect at the time of the
arbitration, except as they may be modified herein or by mutual agreement of
the parties.  Notwithstanding the
provisions of Section 8.11, the arbitration and this clause shall
be governed by Title 9 (Arbitration) of the United States Code.  The seat of the arbitration shall be New
York, New York, United States of America, and it shall be conducted in the
English language.  The parties submit to
jurisdiction in the state and federal courts in the State, County and City of
New York for the limited purpose of enforcing this agreement to arbitrate.

 

(b)                                 The arbitration shall be conducted by three neutral arbitrators, who
shall be appointed by the AAA.  The arbitrators shall be impartial and
independent.

 

(c)                                  In order to facilitate the comprehensive resolution of
related disputes, and upon request of any party to the arbitration proceeding,
the arbitration tribunal may consolidate the arbitration proceeding with any
other arbitration proceeding involving any of the parties hereto relating to
this Agreement or to the other Related Agreements (whether or not such other
proceeding involves all of the parties hereto). 
The arbitration tribunal shall not consolidate such arbitrations unless
it determines that (i) there are issues of fact or law common to the
various arbitrations so that a consolidated proceeding would be more efficient
than separate proceedings and (ii) no party would be prejudiced as a
result of such consolidation through undue delay or otherwise.  In the event of different rulings on this
question by the arbitration tribunal constituted hereunder and the tribunal constituted
under any other Related Agreement, the ruling of the arbitration tribunal
governing the first proceeding to have been filed shall control.  In the event of the consolidation of one or
more proceedings pursuant to this subsection, the arbitration tribunal
governing the first such proceeding to have been filed shall govern the
consolidated proceeding unless otherwise agreed by all parties to the
proceedings being consolidated.  Solely
for purposes of this subsection (c), (i) a proceeding shall be
deemed to have been filed when the related demand for arbitration is served by
the complaining party and (ii) in the event that two proceedings shall
have been filed on the same day, the proceeding involving the largest dollar
amount in dispute shall be deemed to have been the first filed.

 

(d)                                 The arbitration award shall be final and binding on the
parties.  Judgment upon the award may be
entered by any court having jurisdiction thereof or having jurisdiction over
the relevant party or its assets.

 

8.13                           Waiver of Certain Damages.
 NO PARTY SHALL BE ENTITLED TO ANY
RECOVERY UNDER THIS AGREEMENT FOR CONSEQUENTIAL, INCIDENTAL, 

 

28

 

PUNITIVE,
EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION
DAMAGES.  THIS SECTION SHALL SURVIVE
THE TERMINATION OF THIS AGREEMENT AND ALL TRANSACTIONS CONTEMPLATED HEREBY.

 

8.14                           Set-off.  Each Grantor agrees that the Collateral Agent
has all rights of set-off and bankers’ lien provided by applicable law, and in
addition thereto, each Grantor agrees that at any time a Default exists, the
Collateral Agent may apply to the payment of any Notes Obligations, whether or
not then due, any and all balances, credits, deposits, accounts or moneys of
such Grantor then or thereafter with the Collateral Agent.

 

8.15                           [Intentionally Omitted].

 

8.16                           Acknowledgements.  Each Grantor hereby acknowledges that:

 

(a)                                  it has been advised by counsel in the negotiation, execution
and delivery of this Agreement and the other Related Agreements to which it is
a party;

 

(b)                                 no joint venture is created hereby or by the other Note
Document or otherwise exists by virtue of the transactions contemplated hereby
among the Collateral Agent and the Grantors or among any of them.

 

8.17                           Additional Grantors.  Each Person that is required to become a
party to this Agreement pursuant the Indenture or otherwise shall become a Grantor for all purposes of
this Agreement upon execution and delivery by such Person of a Second Lien
Collateral Agreement Joinder.

 

8.18                           Releases.  (a) Upon the Discharge of Notes
Obligations, the Collateral shall be released from the Liens created hereby,
and this Agreement and all obligations (other than those expressly stated to
survive such termination) of the Collateral Agent and each Grantor hereunder
shall terminate, all without delivery of any instrument or performance of any
act by any party, and all rights to the Collateral shall revert to the
Grantors. At the request and sole expense of any Grantor following any such
termination, the Collateral Agent shall deliver to the Grantors any Collateral
held by the Collateral Agent hereunder, and execute and deliver to the Grantors
such documents as the Grantors shall reasonably request to evidence such
termination and release.

 

(b)                                 If any of the Collateral shall be sold, transferred or
otherwise disposed of by any Grantor in a transaction permitted by the Notes
Documents, then the Collateral Agent, at the request and sole expense of such
Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens
created hereby on such Collateral. At the request and sole expense of the
Holdings, a Grantor (other than Holdings) shall be released from its
obligations hereunder in the event that all the equity interests of such
Grantor shall be sold, transferred or otherwise disposed of in a transaction
permitted by the Notes Documents and the other Related Agreements; provided,
that the relevant Grantor shall have delivered to the Collateral Agent, with
reasonable notice prior to the date of the proposed release, a written request
for release identifying the relevant Grantor and the terms of the sale or other
disposition in reasonable detail, including the price thereof and any expenses
in connection 

 

29

 

therewith,
together with a certification by such Grantor stating that such transaction is
in compliance with the Notes Documents and the other Related Agreements.

 

(c)                                  Promptly following the consummation of a merger that does
not constitute a Default under Section 6.1 of the Indenture, the
Collateral Agent shall deliver to the Grantor surviving any such merger, the
certificate or certificates (if any) evidencing the Pledged Equity of the non-surviving
Grantor of such merger.

 

(d)                                 In the event the provisions of Section 3.1(b)(iv) hereof
require that this Agreement or any other Notes Security Document be amended or
modified to the extent necessary to release any Lien on the shares of Capital
Stock, securities or other payment rights of any Grantor, then the Collateral
Agent, at the request and sole expense of such Grantor, shall execute and
deliver to such Grantor all releases or other documents reasonably necessary or
desirable for the release of the such Liens.

 

8.19                           Obligations and Liens Absolute and Unconditional.  Each Grantor
understands and agrees that the obligations of each Grantor under this
Agreement shall be construed as a continuing, absolute and unconditional
without regard to (a) the validity or enforceability of any Note Document,
any of the Notes Obligations or any other collateral security therefor or
guaranty or right of offset with respect thereto at any time or from time to
time held by the Collateral Agent, (b) any defense, set-off or
counterclaim (other than a defense of payment or performance) which may at any
time be available to or be asserted by any Grantor or any other Person against
the Collateral Agent, or (c) any other circumstance whatsoever (with or
without notice to or knowledge of any Grantor) which constitutes, or might be
construed to constitute, an equitable or legal discharge of any Grantor for the
Notes Obligations, in bankruptcy or in any other instance. When making any
demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Grantor, the Collateral Agent may, but shall be under no obligation
to, make a similar demand on or otherwise pursue such rights and remedies as it
may have against any other Grantor or any other Person or against any
collateral security or guaranty for the Notes Obligations or any right of
offset with respect thereto, and any failure by the Collateral Agent to make
any such demand, to pursue such other rights or remedies or to collect any
payments from any other Grantor or any other Person or to realize upon any such
collateral security or guaranty or to exercise any such right of offset, or any
release of any other Grantor or any other Person or any such collateral
security, guaranty or right of offset, shall not relieve any Grantor of any
obligation or liability hereunder, and shall not impair or affect the rights
and remedies, whether express, implied or available as a matter of law, of the
Collateral Agent against any Grantor. For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings.

 

8.20                           Termination; Reinstatement.  This Agreement shall terminate, subject to
reinstatement in accordance with this Section 8.20, upon the
Discharge of Notes Obligations.  This
Agreement will be reinstated if at any time any payment or distribution in
respect of any of the Notes Obligations is rescinded or must otherwise be
returned in an Insolvency or Liquidation Proceeding or otherwise by any holder
of Notes Obligations or any representative of any such party (whether by
demand, settlement, litigation or otherwise). 
In the event that any representative or any holder of any Notes
Obligation recovers all or any part of a payment or distribution made with
respect to an Notes Obligation in an Insolvency or Liquidation 

 

30

 

Proceeding
or otherwise, such representative or holder, as the case may be, will forthwith
deliver the same to the Collateral Agent on behalf of the holders of an Notes
Obligation, for the account of the such holders of an Notes Obligation, to be
applied in accordance with Section 4.1 of the Intercreditor
Agreement.  Until so delivered, such
proceeds will be held by the representative or holder who received such
proceeds, for the benefit of the holders of any Notes Obligation.

 

8.21                           Relation to Intercreditor Agreement.  Notwithstanding
anything herein to the contrary, the lien and security interest granted
pursuant to this Agreement and the exercise of any right or remedy by the
Collateral Agent hereunder are subject to the provisions of the Intercreditor
Agreement.  In the event of any conflict
between the terms of the Intercreditor Agreement and this Agreement, the terms
of the Intercreditor Agreement shall govern and control.  If any Grantor shall pledge any assets or
undertake any action to perfect or protect any Lien on any assets pledged in
connection with this Agreement, such Grantor may simultaneously pledge such
assets or undertake such actions with respect to such assets as necessary to
comply with the provisions set forth in the Intercreditor Agreement, without
further request or consent by the Collateral Agent or Credit Facility
Agent.  Any provision of this Agreement
to the contrary notwithstanding, (i) no Grantor shall be required to act
or refrain from acting in a manner that is inconsistent with the terms and
provisions of the Intercreditor Agreement, (ii) prior to the Discharge of
Credit Facility Obligations, no Grantor shall be required to act or refrain
from acting with respect to any Collateral if compliance by such Grantor with
such requirement would result in a breach of or constitute a default under any
Credit Facility Document and (iii) prior to the Discharge of Credit
Facility Obligations, the requirements of this Agreement to endorse, sign or
deliver Collateral to the Collateral Agent shall be deemed satisfied by
endorsement, assignment or delivery of such Collateral to the Credit Facility
Agent.

 

[Remainder of Page Intentionally Left
Blank]

 

31

 

Each of the undersigned has
caused this Second Lien Collateral Agreement to be duly executed and delivered
as of the date first above written.

 

 

	
   

  	
  MXENERGY HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LAW DEBENTURE TRUST COMPANY OF NEW

  YORK, as Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Anthony A. Bocchino

  
	
   

  	
   

  	
  Name:
  Anthony A. Bocchino

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

[Signature Page to Guarantee and Collateral
Agreement]

 

 

 

 

	
   

  	
  ADDITIONAL GRANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
  ONLINECHOICE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY GAS CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY GAS CAPITAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC CAPITAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  

 

 

	
   

  	
  MXENERGY CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INFOMETER.COM INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY CAPITAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name: Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY SERVICES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name: Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title: President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]