Document:

<PAGE>

                                                                   EXHIBIT 10.7

                                  CONFIDENTIAL

March 31, 2003
Mr. Tony Liu
CEO
American Oriental Bioengineering Inc.
12 Jiance Road, Nangang District
Harbin, China C1 15008

Dear Mr. Liu:

         The purpose of this letter is to describe the terms upon which
FirsTrust Group, Inc. ("FirsTrust") has agreed to introduce American Oriental
Bioengineering (AOBO, OTCBB) and its affiliates (the "Company") to certain
potential investors (each, a "Counterparty"). The purpose of the introduction is
to permit the Company to consider a possible financial transaction with the
Counterparty.

         This agreement confirms that the Company and their respective
representatives, members, agents, associates, employees, consultants, companies,
subsidiaries, businesses and/or entities (collectively, "Representatives"),
hereby agree that they will not directly or indirectly circumvent payment of any
fees, or attempt circumvention or otherwise engage in any transaction with any
Counterparty introduced by FirsTrust without the payment of the fees set forth
in this agreement. This agreement confirms our understanding that the Company
shall be responsible for the payment of fees to FirsTrust in the event the
Company receives funding from a Counterparty through the direct or indirect
efforts of FirsTrust within two year after such introduction to the Company of
such Counterparty by FirsTrust. The Counterparties introduced to the Company
will be listed on an Addendum A (as attached), which will be updated as
additional investors are introduced to the Company.

         If, within the two-year period commencing on the date hereof, the
Counterparty, singly or with others, purchases debt or equity securities of the
Company (or otherwise makes an investment in the Company), FirsTrust or its
designee(s) will be paid at the time of the closing of such transaction:

         A)   Cash fee equal to nine percent (9%) of the total investment by the
              Counterparty, including all amounts placed in an escrow account or
              payable in the future (including future issuances resulting from
              anti-dilution provisions) and all amounts paid or payable upon
              exercise, conversion or exchange of such securities received or
              receivable directly by the Company ("Aggregate Consideration") in
              any placement of the Company's securities in connection with
              FirsTrust's efforts hereunder. All cash fee shall be paid directly
              out of an escrow arrangement at the closing;

         B)   Common Stocks equal to two percent (2%) of the funds invested by
              the Counterparty. The exact share number will be determined by the
              purchase price of the Counterparty. The common stocks should be
              either free tradable or registered for sale immediately after the
              closing;

<PAGE>

         C)   Five years warrants (the "Warrants") purchasing 250,000 shares of
              common stock per $1,000,000 of the value of the investment made by
              the Counterparty. The exercise price of the Warrants shall equal
              to 120% of the purchase price by the Counterparty. The Warrants
              shall be exercisable immediately after the date of issuance, and
              shall expire 5 years after the date of issuance, unless otherwise
              extended by the Company. The Warrants shall include customary
              anti-dilution protection, including protection against issuances
              of securities at prices (or with exercise prices, in the case of
              warrants, options or rights) below the lower of the exercise price
              of the Warrants of the then fair market value of the underlying
              common equity, a cashless exercise provision and will be
              non-redeemable and provide for automatic exercise upon expiration.
              The Warrant shall be transferable, subject only to the securities
              laws, by the holders thereof.

         If alternatively, within the period described above, the Counterparty,
singly or with other investors, acquires or causes the Company, or substantially
all of the Company's assets or businesses to be acquired, FirsTrust will be paid
at the time of the closing of such transaction an amount equal to 5% of the
value of the Aggregate Consideration received by the Company or its
stockholders.

         For the purpose of this Agreement, "Aggregate Consideration" shall mean
the value of all cash, securities and the other property paid by the acquiring
party to a selling party in connection with a business combination, plus all
amounts paid by the Company or an acquiring party to holders of options or stock
appreciation rights, whether vested or not vested. In this connection, the value
of securities (whether debt or equity) that are freely tradable in an
established public market will be determined on the basis of the last closing
price in such market prior to the consummation of the business combination (the
"Valuation Date"), and the value of securities that are not freely tradable (or
have no established public market) or other property will be the fair market
value of such securities or other property on such Valuation Date. Aggregate
Consideration shall also be deemed to include any indebtedness for money
borrowed, including pension liabilities and guarantees, assumed by the acquirer
in connection with any business combination.

         You understand that FirsTrust is providing services as a consultant and
is not providing investment banking advisory or financing services. FirsTrust
disclaims any responsibility for accurately describing or recommending any
transaction that the Company may engage in. FirsTrust's obligation with respect
to any Transaction is solely as described herein and you agree that you shall
not make any representation that FirsTrust endorses or sponsors the Company or
its securities, has performed any due diligence with respect to the Company or
has participated in any way in pricing the securities or structuring any
transaction. You agree that no reference to FirsTrust will be made in any press
release or advertisement of any transaction with the Counterparty without the
express approval, in writing, of such release or advertisement by FirsTrust.

         You further agree to indemnify FirsTrust and its officers, directors,
employees, agent and controlling persons from any liability, claim, damage,
expense (including reasonable legal fees) arising from or related to (i) any
transaction, whether or not consummated, with the CounterParty or (ii) any
breach of the representations in the immediately preceding paragraph, in this
connection, you agree to pay such liabilities, claims, damages or expenses as
incurred.

                                      -2-

<PAGE>

         This Agreement shall be construed according to the laws of the State of
Georgia and subject to the jurisdiction of the courts of said state, without
application of the principles of conflicts of laws. Each of the parties'
consents exclusively to personal jurisdiction in the Fulton County, Georgia,
waives any objection as to jurisdiction or venue, and agrees not to assert any
defense based on lack of jurisdiction or venue. In any litigation, arbitration,
or other dispute resolution arising out of or relating to this Agreement, the
prevailing party shall be reimbursed by the other party (as determined by a
court of competent jurisdiction) for reasonable attorneys' fees and/or
arbitration costs.

         This Agreement may be executed in any number of counterparts each of
which shall be enforceable against the parties executing such counterparts, and
all of which together shall constitute a single document. Except as otherwise
stated herein, in lieu of the original documents, a facsimile transmission or
copy of the original documents shall be as effective and enforceable as the
original.

         You hereby represent, warrant and covenant as follows;

                  (i) The Company has the full right, power and authority to
         enter into this Agreement and to perform all of its obligations
         hereunder, (ii) this Agreement has been duly authorized and executed by
         and constitutes a valid and binding agreement of the Company
         enforceable in accordance with its terms, (iii) the execution and
         delivery of this Agreement and the consummation of the transactions
         contemplated hereby do not conflict with or result in a breach of (A)
         The Company's certificate of incorporation or by-laws, or (B) any
         agreement to which the Company is a party or by which any of its
         property or assets is bound.

         If the foregoing is consistent with our understanding, please sign the
enclosed copy of this letter in the space indicated below and return it to the
undersigned.

                                            Very truly yours,
                                            FirsTrust Group, Inc.

                                            By:
                                                --------------------------

Accepted and Agreed:
American Oriental Bioengineering Inc.

By: /s/ Tony Liu
    ----------------------------------------
    Mr. Tony Liu, Chief Executive Officer

Date: 2003.4.1Exhibit 4.1

 

EXECUTION COPY

 

 

 

VOUGHT AIRCRAFT INDUSTRIES, INC.,

As Issuer

 

 

$270,000,000

 

 

8% SENIOR NOTES DUE 2011

 

 

 

INDENTURE

 

Dated as of July 2, 2003

 

 

 

 

Wells Fargo Bank Minnesota, National Association, 

As Trustee

 

 

 

 

 

 

TABLE OF
CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1. DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
  1

  
	
   

  	
   

  
	
  SECTION 1.01

  	
  DEFINITIONS.

  	
  1

  
	
  SECTION 1.02

  	
  OTHER DEFINITIONS.

  	
  21

  
	
  SECTION 1.03

  	
  INCORPORATION BY
  REFERENCE OF TRUST INDENTURE ACT.

  	
  22

  
	
  SECTION 1.04

  	
  RULES OF CONSTRUCTION.

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2. THE NOTES

  	
  23

  
	
   

  	
   

  
	
  SECTION 2.01

  	
  FORM AND DATING.

  	
  23

  
	
  SECTION 2.02

  	
  EXECUTION AND
  AUTHENTICATION.

  	
  24

  
	
  SECTION 2.03

  	
  REGISTRAR AND PAYING
  AGENT

  	
  25

  
	
  SECTION 2.04

  	
  PAYING AGENT TO HOLD
  MONEY IN TRUST.

  	
  25

  
	
  SECTION 2.05

  	
  HOLDER LISTS.

  	
  26

  
	
  SECTION 2.06

  	
  TRANSFER AND EXCHANGE.

  	
  26

  
	
  SECTION 2.07

  	
  REPLACEMENT NOTES.

  	
  32

  
	
  SECTION 2.08

  	
  OUTSTANDING NOTES.

  	
  32

  
	
  SECTION 2.09

  	
  TREASURY NOTES.

  	
  33

  
	
  SECTION 2.10

  	
  TEMPORARY NOTES.

  	
  33

  
	
  SECTION 2.11

  	
  CANCELLATION.

  	
  33

  
	
  SECTION 2.12

  	
  DEFAULTED INTEREST.

  	
  34

  
	
  SECTION 2.13

  	
  CUSIP NUMBERS.

  	
  34

  
	
  SECTION 2.14

  	
  ISSUANCE OF ADDITIONAL
  NOTES.

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3. REDEMPTION AND PREPAYMENT

  	
  35

  
	
   

  	
   

  
	
  SECTION 3.01

  	
  NOTICES TO TRUSTEE.

  	
  35

  
	
  SECTION 3.02

  	
  SELECTION OF NOTES TO
  BE REDEEMED OR PURCHASED.

  	
  35

  
	
  SECTION 3.03

  	
  NOTICE OF REDEMPTION.

  	
  35

  
	
  SECTION 3.04

  	
  EFFECT OF NOTICE OF
  REDEMPTION.

  	
  36

  
	
  SECTION 3.05

  	
  DEPOSIT OF REDEMPTION
  OR PURCHASE PRICE.

  	
  36

  
	
  SECTION 3.06

  	
  NOTES REDEEMED OR
  PURCHASED IN PART.

  	
  37

  
	
  SECTION 3.07

  	
  OPTIONAL REDEMPTION.

  	
  37

  
	
  SECTION 3.08

  	
  MANDATORY REDEMPTION.

  	
  38

  
	
  SECTION 3.09

  	
  OFFER TO PURCHASE BY
  APPLICATION OF EXCESS PROCEEDS.

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4. COVENANTS.

  	
  40

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
  PAYMENT OF NOTES.

  	
  40

  
	
  SECTION 4.02

  	
  MAINTENANCE OF OFFICE
  OR AGENCY.

  	
  40

  
	
  SECTION 4.03

  	
  REPORTS.

  	
  41

  
	
  SECTION 4.04

  	
  COMPLIANCE CERTIFICATE.

  	
  41

  
	
  SECTION 4.05

  	
  TAXES.

  	
  42

  
	
  SECTION 4.06

  	
  STAY, EXTENSION AND USURY LAWS.

  	
  42

  
	
  SECTION 4.07

  	
  RESTRICTED PAYMENTS.

  	
  42

  
				

 

i

 

	
  SECTION 4.08

  	
  DIVIDEND AND OTHER PAYMENT
  RESTRICTIONS AFFECTING RESTRICTED SUBSIDIARIES.

  	
  45

  
	
  SECTION 4.09

  	
  INCURRENCE OF
  INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK

  	
  47

  
	
  SECTION 4.10

  	
  ASSET SALES.

  	
  50

  
	
  SECTION 4.11

  	
  TRANSACTIONS WITH
  AFFILIATES.

  	
  52

  
	
  SECTION 4.12

  	
  LIENS.

  	
  54

  
	
  SECTION 4.13

  	
  BUSINESS ACTIVITIES.

  	
  54

  
	
  SECTION 4.14

  	
  CORPORATE EXISTENCE.

  	
  54

  
	
  SECTION 4.15

  	
  OFFER TO REPURCHASE UPON
  CHANGE OF CONTROL.

  	
  54

  
	
  SECTION 4.16

  	
  PAYMENTS FOR CONSENT.

  	
  56

  
	
  SECTION 4.17

  	
  ADDITIONAL SUBSIDIARY
  GUARANTEES.

  	
  56

  
	
  SECTION 4.18

  	
  DESIGNATION OF
  RESTRICTED AND UNRESTRICTED SUBSIDIARIES.

  	
  56

  
	
  SECTION 4.19

  	
  SALE AND LEASEBACK
  TRANSACTIONS

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5. SUCCESSORS

  	
  57

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
  MERGER, CONSOLIDATION OR SALE OF ASSETS.

  	
  57

  
	
  SECTION 5.02

  	
  SUCCESSOR CORPORATION
  SUBSTITUTED.

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6. DEFAULTS AND REMEDIES

  	
  58

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
  EVENTS OF DEFAULT.

  	
  58

  
	
  SECTION 6.02

  	
  ACCELERATION.

  	
  60

  
	
  SECTION 6.03

  	
  OTHER REMEDIES.

  	
  61

  
	
  SECTION 6.04

  	
  WAIVER OF PAST
  DEFAULTS.

  	
  61

  
	
  SECTION 6.05

  	
  CONTROL BY MAJORITY.

  	
  61

  
	
  SECTION 6.06

  	
  LIMITATION ON SUITS.

  	
  62

  
	
  SECTION 6.07

  	
  RIGHTS OF HOLDERS OF
  NOTES TO RECEIVE PAYMENT.

  	
  62

  
	
  SECTION 6.08

  	
  COLLECTION SUIT BY
  TRUSTEE.

  	
  62

  
	
  SECTION 6.09

  	
  TRUSTEE MAY FILE PROOFS
  OF CLAIM.

  	
  62

  
	
  SECTION 6.10

  	
  PRIORITIES.

  	
  63

  
	
  SECTION 6.11

  	
  UNDERTAKING FOR COSTS.

  	
  63

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7. TRUSTEE

  	
  64

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
  DUTIES OF TRUSTEE.

  	
  64

  
	
  SECTION 7.02

  	
  RIGHTS OF TRUSTEE.

  	
  65

  
	
  SECTION 7.03

  	
  INDIVIDUAL RIGHTS OF
  TRUSTEE.

  	
  66

  
	
  SECTION 7.04

  	
  TRUSTEE’S DISCLAIMERS.

  	
  66

  
	
  SECTION 7.05

  	
  NOTICE OF DEFAULTS.

  	
  66

  
	
  SECTION 7.06

  	
  REPORTS BY TRUSTEE TO
  HOLDERS OF THE NOTES.

  	
  66

  
	
  SECTION 7.07

  	
  COMPENSATION AND
  INDEMNITY.

  	
  66

  
	
  SECTION 7.08

  	
  REPLACEMENT OF TRUSTEE.

  	
  67

  
	
  SECTION 7.09

  	
  SUCCESSOR TRUSTEE BY
  MERGER, ETC.

  	
  68

  
	
  SECTION 7.10

  	
  ELIGIBILITY;
  DISQUALIFICATION.

  	
  68

  
	
  SECTION 7.11

  	
  PREFERENTIAL COLLECTION
  OF CLAIMS AGAINST COMPANY.

  	
  69

  
				

 

ii

 

	
  ARTICLE 8. LEGAL DEFEASANCE AND
  COVENANT DEFEASANCE

  	
  69

  
	
   

  	
   

  
	
  SECTION 8.01

  	
  OPTION TO EFFECT LEGAL
  DEFEASANCE OR COVENANT DEFEASANCE.

  	
  69

  
	
  SECTION 8.02

  	
  LEGAL DEFEASANCE AND
  DISCHARGE.

  	
  69

  
	
  SECTION 8.03

  	
  COVENANT DEFEASANCE.

  	
  70

  
	
  SECTION 8.04

  	
  CONDITIONS TO LEGAL OR
  COVENANT DEFEASANCE.

  	
  70

  
	
  SECTION 8.05

  	
  DEPOSITED MONEY AND
  GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.

  	
  72

  
	
  SECTION 8.06

  	
  REPAYMENT TO COMPANY.

  	
  72

  
	
  SECTION 8.07

  	
  REINSTATEMENT.

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9. AMENDMENT, SUPPLEMENT AND
  WAIVER

  	
  73

  
	
   

  	
   

  
	
  SECTION 9.01

  	
  WITHOUT CONSENT OF
  HOLDERS OF NOTES.

  	
  73

  
	
  SECTION 9.02

  	
  WITH CONSENT OF HOLDERS
  OF NOTES.

  	
  74

  
	
  SECTION 9.03

  	
  COMPLIANCE WITH TRUST
  INDENTURE ACT.

  	
  76

  
	
  SECTION 9.04

  	
  REVOCATION AND EFFECT
  OF CONSENTS.

  	
  76

  
	
  SECTION 9.05

  	
  NOTATION ON OR EXCHANGE
  OF NOTES.

  	
  76

  
	
  SECTION 9.06

  	
  TRUSTEE TO SIGN
  AMENDMENTS, ETC.

  	
  76

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10. SUBSIDIARY GUARANTEES

  	
  77

  
	
   

  	
   

  
	
  SECTION 10.01

  	
  AGREEMENT TO GUARANTEE.

  	
  77

  
	
  SECTION 10.02

  	
  EXECUTION AND DELIVERY
  OF SUBSIDIARY GUARANTEES.

  	
  77

  
	
  SECTION 10.03

  	
  GUARANTORS MAY
  CONSOLIDATE, ETC. ON CERTAIN TERMS.

  	
  78

  
	
  SECTION 10.04

  	
  RELEASES.

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11. SATISFACTION AND DISCHARGE

  	
  80

  
	
   

  	
   

  
	
  SECTION 11.01

  	
  SATISFACTION AND
  DISCHARGE.

  	
  80

  
	
  SECTION 11.02

  	
  APPLICATION OF TRUST
  MONEY.

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12. MISCELLANEOUS

  	
  82

  
	
   

  	
   

  
	
  SECTION 12.01

  	
  TRUST INDENTURE ACT
  CONTROLS.

  	
  82

  
	
  SECTION 12.02

  	
  NOTICES.

  	
  82

  
	
  SECTION 12.03

  	
  COMMUNICATIONS BY
  HOLDERS OF NOTES WITH OTHER HOLDERS OF NOTES.

  	
  83

  
	
  SECTION 12.04

  	
  CERTIFICATE AND OPINION
  AS TO CONDITIONS PRECEDENT.

  	
  83

  
	
  SECTION 12.05

  	
  STATEMENTS REQUIRED IN
  CERTIFICATE OR OPINION.

  	
  83

  
	
  SECTION 12.06

  	
  RULES BY TRUSTEE AND
  AGENTS.

  	
  84

  
	
  SECTION 12.07

  	
  NO PERSONAL LIABILITY
  OF DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS.

  	
  84

  
	
  SECTION 12.08

  	
  GOVERNING LAW.

  	
  84

  
	
  SECTION 12.09

  	
  NO ADVERSE
  INTERPRETATION OF OTHER AGREEMENTS.

  	
  84

  
	
  SECTION 12.10

  	
  SUCCESSORS.

  	
  84

  
	
  SECTION 12.11

  	
  SEVERABILITY.

  	
  84

  
	
  SECTION 12.12

  	
  COUNTERPART ORIGINALS.

  	
  84

  
	
  SECTION 12.13

  	
  TABLE OF CONTENTS, HEADINGS, ETC.

  	
  85

  

 

iii

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  FORM OF NOTE

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
   

  	
  FORM OF SUPPLEMENTAL INDENTURE

  
	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
   

  	
  FORM OF NOTATION ON SENIOR NOTE RELATING TO
  SUBSIDIARY GUARANTEE

  

 

iv

 

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)

  	
   

  	
  7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312 

  	
  (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  12.03

  
	
   

  	
  (c)

  	
   

  	
  12.03

  
	
  313 

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (b)(2)

  	
   

  	
  7.06; 7.07

  
	
   

  	
  (c)

  	
   

  	
  7.06;12.02

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  314 

  	
  (a)

  	
   

  	
  4.03;12.02

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  12.04

  
	
   

  	
  (c)(2)

  	
   

  	
  12.04

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  12.05

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315 

  	
  (a)

  	
   

  	
  7.01

  
	
   

  	
  (b)

  	
   

  	
  7.05, 12.02

  
	
   

  	
  (c)

  	
   

  	
  7.01

  
	
   

  	
  (d)

  	
   

  	
  7.01

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a)(last sentence)

  	
   

  	
  2.09

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
   

  	
  (c)

  	
   

  	
  2.12

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.08

  

 

*This Cross-Reference Table is
not part of the Indenture.

 

v

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  2.04

  
	
  318

  	
  (a)

  	
   

  	
  12.01

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  12.01

  

 

N.A. means not applicable.

 

*This Cross-Reference Table is not part of
the Indenture.

 

vi

 

This INDENTURE dated as of July 2, 2003,
among Vought Aircraft Industries, Inc., a Delaware corporation (the “Company”),
VAC Aircraft Industries, Inc., a Delaware corporation, Vought Aircraft Company,
a Delaware company, and The Aerostructures Corporation, a Delaware corporation,
and Wells Fargo Bank Minnesota, National Association, as trustee (the “Trustee”).

 

The Company and the Trustee agree as follows
for the benefit of each other and for the equal and ratable benefit of the
Holders of the 8% Senior Notes due 2011 (the “Initial Notes”), any
Additional Notes (as defined below) and the 8% Senior Notes due 2011 to be
issued in exchange for Notes pursuant to the Registration Rights Agreement (the
“Exchange
Notes”):

 

ARTICLE 1.

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section 1.01                            Definitions.

 

“144A Global Note” means the global note in
the form of Exhibit A hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with 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.

 

“Acquired Debt” means, with respect to any
specified Person, (i) Indebtedness of any other Person existing at the time
such other Person is merged with or into or became a Subsidiary of such
specified Person, whether or not such Indebtedness is incurred in connection
with, or in contemplation of, such other Person merging with or into or
becoming a Subsidiary of such specified Person, and (ii) Indebtedness secured
by a Lien encumbering any asset acquired by such specified Person.

 

“Acquisition” means, the transaction
pursuant to which TA Acquisition Holdings, Inc. will merge with and into the
Company and the Company will thereby acquire TA Acquisition Holdings, Inc.’s
wholly-owned subsidiary, The Aerostructures Corporation, pursuant to the Merger
Agreement.

 

“Additional Notes” means any notes (other
than the initial Notes), if any, issued under this Indenture in accordance with
Sections 2.02, 2.14 and 4.09 hereof.

 

“Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person; provided
however, that no Person (other than the Company or any Subsidiary of
the Company) in whom a Receivables Subsidiary makes an Investment in connection
with a Qualified Receivables Transaction will be deemed to be an Affiliate of
the Company or any of its Subsidiaries solely by reason of such
Investment.  For purposes of this
definition, “control,” as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of Voting Stock, by agreement or otherwise.  For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

 

 

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

 

“Applicable Premium” means, with respect to
any note on any Redemption Date, the greater of:

 

(1)                                  1.0% of the principal
amount of the note; and

 

(2)                                  the excess of:

 

(a)                                  the present value at
such Redemption Date of (i) the redemption price of the note at July 15,
2007 (such redemption price being set forth in the table appearing hereof under
the caption “—Optional Redemption”) plus (ii) all required interest payments
due on the note through July 15, 2007 (excluding accrued but unpaid
interest), computed using a discount rate equal to the Treasury Rate as of such
Redemption Date plus 50 basis points; over

 

(b)                                 the principal amount
of the note.

 

“Asset Sale” means (i) the sale, lease,
conveyance or other disposition of any assets or rights (provided that the sale,
conveyance or other disposition of all or substantially all of the assets of
the Company and its Restricted Subsidiaries taken as a whole will be governed
by Section 4.15 hereof and/or Section 5.01 hereof and not by
Section 4.10 hereof), and (ii) the issuance of Equity Interests in any of
the Company’s Restricted Subsidiaries or the sale of Equity Interests in any of
its Restricted Subsidiaries. 
Notwithstanding the preceding, none of the following items shall be
deemed to be an Asset Sale:  (i) any
single transaction or series of related transactions that involves assets
having a fair market value of less than $2,500,000, (ii) a transfer of assets between
or among the Company and its Restricted Subsidiaries, (iii) an issuance of
Equity Interests by a Restricted Subsidiary to the Company or to another
Restricted Subsidiary, (iv) the sale or lease of products, services, equipment,
inventory, accounts receivable or other assets in the ordinary course of
business or other disposition of damaged, worn-out or obsolete assets in the
ordinary course of business, (v) the sale or other disposition of cash or Cash
Equivalents; (vi) the license of patents, trademarks, copyrights and know-how
to third Persons in the ordinary course of business; (vii) the sale or exchange
of equipment in connection with the purchase or other acquisition of other
equipment, in each case used in a Permitted Business; (viii) the creation of
Liens; (ix) a Restricted Payment that does not violate or Permitted Investment
that is permitted by Section 4.07 hereof; (x) sales of accounts receivable
and related assets of the type specified in the definition of “Qualified
Receivables Transaction” to a Receivables Subsidiary for the fair market value
thereof, including cash in an amount at least equal to 75% of the book value
thereof as determined in accordance with GAAP, it being understood that, for
the purposes of this clause (x), notes received in exchange for the transfer of
accounts receivable and related assets will be deemed cash if the Receivables
Subsidiary or other payor is required to repay said notes as soon as
practicable from available cash collections less amounts required to be
established as reserves pursuant to contractual agreements with entities that
are not Affiliates of the Company entered into as part of a Qualified
Receivables Transaction; and (xi) transfers of accounts receivable and related
assets of the type specified in the definition of “Qualified Receivables Transaction”
(or a fractional undivided interest therein) by a Receivables Subsidiary in a
Qualified Receivables Transaction.

 

2

 

“Attributable Debt” in respect of a sale
and leaseback transaction means, at the time of determination, the present
value of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such sale and leaseback transaction
including any period for which such lease has been extended or may, at the
option of the lessor, be extended.  Such
present value shall be calculated using a discount rate equal to the rate of
interest implicit in such transaction, determined in accordance with GAAP.

 

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

 

“Beneficial Owner” has the meaning assigned
to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that
in calculating the beneficial ownership of any particular “person” (as that term
is used in Section 13(d)(3) of the Exchange Act), such “person” will be
deemed to have beneficial ownership of all securities that such “person” has
the right to acquire by conversion or exercise of other securities, whether
such right is currently exercisable or is exercisable only upon the occurrence
of a subsequent condition.  The terms
“Beneficially Owns” and “Beneficially Owned” have correlative meanings.

 

“Board of Directors” means (i) with respect
to a corporation, the board of directors of the corporation, (ii) with respect
to a partnership, the board of directors of the general partner of the
partnership, and (iii) with respect to any other Person, the board or committee
of such Person serving a similar function.

 

“Broker-Dealer” has the meaning set forth
in the Registration Rights Agreement.

 

“Business Day” means any day other than a
Legal Holiday.

 

“Capital Lease Obligation” means, at the
time any determination thereof is to be made, the amount of the liability in
respect of a capital lease that would at that time be required to be
capitalized on a balance sheet in accordance with GAAP.

 

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

 

“Cash Equivalents” means (i) United States
dollars and any other currency that is convertible into United States dollars
without legal restrictions and which is utilized by the Company or any of its
Restricted Subsidiaries in the ordinary course of its business,
(ii) securities issued or directly and fully guaranteed or insured by the
United States government or any agency or instrumentality of the United States
government (provided
that the full faith and credit of the United States is pledged in support of
those securities) having maturities of not more than one year from the date of
acquisition, (iii) certificates of deposit and eurodollar time deposits with
maturities of six months or less from the date of acquisition, bankers’
acceptances with maturities not exceeding one year and overnight bank deposits,
in each case, with any lender party to the Credit Agreement or with any
domestic commercial bank having capital and

 

3

 

surplus in excess of
$500,000,000, (iv) repurchase obligations with a term of not more than seven
days for underlying securities of the types described in clauses (ii) and (iii)
above entered into with any financial institution meeting the qualifications
specified in clause (iii) above, (v) commercial paper having one of the
two highest ratings obtainable from Moody’s or S&P and in each case maturing
within one year after the date of acquisition, (vi) money market funds at least
95% of the assets of which constitute Cash Equivalents of the kinds described
in clauses (i)-(v) above; and (vii) overnight deposits and demand deposit
accounts (in the respective local currencies) maintained in the ordinary course
of business.

 

“Change of Control” means the occurrence of
any of the following:  (i) prior to the
occurrence of the first public offering of common stock of the Company, the
Permitted Holders cease to be the Beneficial Owners, directly or indirectly, of
a majority of the Voting Stock of the Company, measured by voting power rather
than number of shares, whether as a result of the issuance of securities of the
Company, any merger, consolidation, liquidation or dissolution of the Company,
any direct or indirect transfer of securities by the Permitted Holders or
otherwise, (ii) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the properties or
assets of the Company and its Restricted Subsidiaries taken as a whole to any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act)
other than a Permitted Holder or a Related Party of a Permitted Holder, (iii)
the adoption of a plan relating to the liquidation or dissolution of the
Company, (iv) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act),
other than the Permitted Holders and their Related Parties, becomes the
“Beneficial Owner”, directly or indirectly, of more than 50% of the Voting
Stock of the Company, measured by voting power rather than number of shares; or
(v) the first day on which a majority of the members of the Board of
Directors of the Company are not Continuing Directors.

 

“Clearstream” means Clearstream Banking,
S.A., or any successor securities clearing agency.

 

“Commission” means the Securities Exchange
Commission.

 

“Consolidated Cash Flow” means, with
respect to any specified Person for any period, the Consolidated Net Income of
such Person for such period, plus (i) an amount equal to any extraordinary
loss plus any net loss realized
by such Person or any of its Restricted Subsidiaries in connection with an
Asset Sale; to the extent such losses were deducted in computing such
Consolidated Net Income, plus (ii) provision for taxes based on
income or profits of such Person and its Restricted Subsidiaries for such
period, to the extent that such provision for taxes was deducted in computing
such Consolidated Net Income, plus (iii) consolidated interest
expense of such Person and its Restricted Subsidiaries for such period, whether
paid or accrued and whether or not capitalized (including, without limitation,
amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions,
discounts and other fees and charges incurred in respect of’ letter of credit
or bankers’ acceptance financings, and net of the effect of all payments made
or received pursuant

 

4

 

to Hedging Obligations), to the
extent that any such expense was deducted in computing such Consolidated Net
Income, plus
(iv) depreciation, amortization (including amortization of intangibles but
excluding amortization of prepaid cash expenses that were paid in a prior
period) and other non-cash expenses (excluding amortization of a prepaid cash
expense that was paid in a prior period) of such Person and its Restricted
Subsidiaries for such period to the extent that such depreciation, amortization
and other non-cash expenses were deducted in computing such Consolidated Net
Income, plus
(v) unrealized non-cash losses resulting from foreign currency balance sheet
adjustments required by GAAP to the extent such losses were deducted in
computing such Consolidated Net Income, plus (vi) all other extraordinary, unusual
or nonrecurring items of loss, charge or expense, minus (vii) all extraordinary,
unusual or non-recurring non-cash items increasing such Consolidated Net Income
for such period, other than the accrual of revenue in the ordinary course of
business; in each case, on a consolidated basis and determined in accordance
with GAAP.

 

“Consolidated Net Income” means, with
respect to any specified Person for any period, the aggregate of the Net Income
of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that (i) the Net
Income (or loss) of any Person that is not a Restricted Subsidiary or that is
accounted for by the equity method of accounting will be included only to the
extent of the amount of dividends or distributions paid in cash to the
specified Person or a Restricted Subsidiary of the Person, (ii) the Net Income
of any Restricted Subsidiary will be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of that Net Income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to that Restricted Subsidiary or its stockholders, (iii) the
cumulative effect of a change in accounting principles will be excluded and
(iv) any impairment loss of such Person or its Restricted Subsidiaries relating
to goodwill or other non-amortizing intangible asset will be excluded.

 

“Consolidated Tangible Assets” means, as of
any date of determination, the aggregate amount of assets (less applicable
reserves and other properly deductible items) after deducting therefrom all
goodwill, trade names, trademarks, patents, unamortized debt discount and
expense (to the extent included in said aggregate amount of assets) and other
like intangibles, all as set forth in the most recent consolidated balance
sheet of the Company and its Restricted Subsidiaries as of the end of the
fiscal quarter ending not more than 135 days prior to such date and computed in
accordance with GAAP.  Consolidated
Tangible Assets shall be calculated after giving effect to the transaction
giving rise to the need to calculate Consolidated Tangible Assets.

 

“Continuing Directors” means, as of any
date of determination, any member of the Board of Directors of the Company who
(i) was a member of such Board of Directors on the Issue Date or (ii) was
nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board at the
time of such nomination or election.

 

5

 

“Corporate Trust Office of the Trustee”
will be at the principal address of the Trustee specified in Section 12.02
hereof or such other address as to which the Trustee may give notice to the
Company.

 

“Credit Agreement” means that certain
Credit Agreement, originally dated as of July 24, 2000, as amended by the
First, Second, Third, Fourth, Fifth and Sixth Amendments through July 2,
2003, by and among Lehman Commercial Paper Inc., as Administrative Agent,
certain financial institutions as lenders and other agents and arrangers party
thereto, providing for up to $316,000,000 of term loan borrowings and
$150,000,000 of revolving credit borrowings, including any related notes,
guarantees, collateral documents, instruments and agreements executed in
connection therewith, and in each case as amended, restated, modified, renewed,
refunded, replaced (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional
investors) from time to time.

 

“Credit Facilities” means one or more debt
facilities (including, without limitation, the Credit Agreement) or commercial
paper facilities, in each case with banks, investment banks, insurance
companies, mutual funds and/or other institutional lenders providing for
revolving credit loans, term loans, receivables or inventory financing
(including through the sale of receivables or inventory to such lenders or to
special purpose entities formed to borrow from such lenders against such
receivables or inventory) or letters of credit, in each case, as amended,
restated, modified, renewed, refunded, replaced (whether upon or after
termination or otherwise) or refinanced (including by means of sales of debt
securities to institutional investors) in whole or in part from time to time.

 

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

 

“Definitive Note” means a certificated Note
registered in the name of the Holder thereof and issued in accordance with
Article 2 hereof, substantially in the form of Exhibit A hereto, except
that such Note will not bear the Global Note Legend and will not have the
“Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means, with respect to the
Notes issuable or issued in whole or in part in global form, the Person
specified in Section 2.03 hereof as the Depositary with respect to the
Notes, until a successor shall have been appointed and become such pursuant to
the applicable provision of this Indenture, and, thereafter, “Depositary” shall
mean or include such successor.

 

“Disqualified Stock” means any Capital
Stock that, by its terms (or by the terms of any security into which it is
convertible, or for which it is exchangeable, in each case at the option of the
holder thereof), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder thereof, in whole or in part, on or prior to the
date that is 91 days after the date on which the Notes mature.  Notwithstanding the preceding sentence, any
Capital Stock that would constitute Disqualified Stock solely because the
holders of the Capital Stock have the right to require the Company to
repurchase such Capital Stock upon the occurrence of a change of control or an
asset sale will not constitute Disqualified Stock if the terms of such Capital
Stock

 

6

 

provide that the Company may
not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 4.07 hereof.

 

“Distribution Compliance Period”, with
respect to any Notes, means the period of 40 consecutive days beginning on and
including the later of (i) the day on which such Notes are first offered to
Persons other than distributors (as defined in Regulation 5) in reliance on
Regulation S and (ii) the issue date with respect to such Notes.

 

“Domestic Subsidiary” means any Restricted
Subsidiary of the Company that was formed under the laws of the United States
or any state of the United States or the District of Columbia or that
guarantees or otherwise provides direct credit support for any Indebtedness of
the Company.

 

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

 

“Equity Offering” means any public or
private sale of Capital Stock (other than Disqualified Stock) made for cash on
a primary basis by the Company after the Issue Date.

 

“Euroclear” means Euroclear Bank S.A./N.V.,
as operator of the Euroclear system, or any successor securities clearing
agency.

 

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

 

“Exchange Notes” means (i) the 8% Senior
Notes due 2011, registered under the Securities Act, issued pursuant to this
Indenture in connection with an Exchange Offer pursuant to the Registration
Rights Agreement and (ii) Additional Notes, if any, issued pursuant to a
registration statement filed with the SEC under the Securities Act.

 

“Exchange Offer” means the exchange and
issuance by the Company, pursuant to a Registration Rights Agreement, of a
principal amount of Exchange Notes (which will be registered pursuant to the
Exchange Offer Registration Statement) equal to the outstanding principal
amount of Initial Notes or Additional Notes, as the case may be, tendered by
Holders thereof in connection with such exchange and issuance.

 

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

 

“Existing Indebtedness” means Indebtedness
of the Company and its Restricted Subsidiaries (other than Indebtedness under
the Credit Agreement and the Notes and related Subsidiary Guarantees) in
existence on the Issue Date, until such amounts are repaid.

 

“Fixed Charge Coverage Ratio” means with
respect to any specified Person for any four-quarter reference period, the
ratio of the Consolidated Cash Flow of such Person and its Restricted
Subsidiaries for such period to the Fixed Charges of such Person and its
Restricted Subsidiaries for such period. 
In the event that the specified Person or any of its Restricted Subsidiaries
incurs, assumes, Guarantees, repays, repurchases or redeems any Indebtedness

 

7

 

(other than ordinary working
capital borrowings) or issues, repurchases or redeems preferred stock
subsequent to the commencement of the applicable period for which the Fixed
Charge Coverage Ratio is being calculated and on or prior to the date on which
the event for which the calculation of the Fixed Charge Coverage Ratio is made
(the “Calculation
Date”), then the Fixed Charge Coverage Ratio will be calculated giving
pro forma
effect to such incurrence, assumption, Guarantee, repayment, repurchase or
redemption of Indebtedness, or such issuance, repurchase or redemption of
preferred stock, and the use of the proceeds therefrom, as if the same had
occurred at the beginning of such period. 
In addition, for purposes of calculating the Fixed Charge Coverage
Ratio, (i) acquisitions that have been made by the specified Person or any of
its Restricted Subsidiaries, including through mergers or consolidations and
including any related financing transactions, subsequent to the commencement of
the applicable four-quarter reference period and on or prior to the Calculation
Date will be given pro forma effect as if they had occurred
on the first day of such period including any Consolidated Cash Flow and any pro forma
expense and cost reductions that have occurred or are reasonably expected to
occur, in the reasonable judgment of the chief financial officer of the
specified Person (regardless of whether those cost savings or operating
improvements could then be reflected in pro forma financial statements in
accordance with Regulation S-X promulgated under the Securities Act or any
other regulation or policy of the SEC related thereto), (ii) the Consolidated
Cash Flow attributable to discontinued operations, as determined in accordance
with GAAP, and operations or businesses disposed of prior to the Calculation
Date, will be excluded, (iii) the Fixed Charges attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses
disposed of prior to the Calculation Date, will be excluded, but only to the
extent that the obligations giving rise to such Fixed Charges will not be
obligations of the specified Person or any of its Restricted Subsidiaries
following the Calculation Date, (iv) any Person that is a Restricted Subsidiary
on the Calculation Date will be deemed to have been a Restricted Subsidiary at
all times during the applicable four-quarter reference period, (v) any Person
that is not a Restricted Subsidiary on such Calculation Date will be deemed not
to have been a Restricted Subsidiary at any time during the applicable
four-quarter reference period and (vi) if any Indebtedness bears a floating
rate of interest, the interest expense on such Indebtedness will be calculated
as if the rate in effect on the Calculation Date had been the applicable rate
for the entire applicable four-quarter reference period (taking into account
any Hedging Obligation applicable to such Indebtedness if such Hedging
Obligation has a remaining term as at the Calculation Date in excess of 12
months).

 

“Fixed Charges” means, with respect to any
specified Person for any period, the sum, without duplication, of (i) the
consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued (including, without limitation,
amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions,
discounts and other fees and charges incurred in respect of letter of credit or
bankers’ acceptance financings), and net of the effect of all payments made or
received pursuant to Hedging Obligations, plus (ii) the consolidated interest of
such Person and its Restricted Subsidiaries that was capitalized during such
period, plus
(iii) any interest expense on Indebtedness of another Person that is Guaranteed
by such Person or one of its Restricted Subsidiaries or secured by a Lien on
assets of such Person or one of its Restricted Subsidiaries (whether or not
such Guarantee or Lien is called upon), plus (iv) the product of(A) all dividends,

 

8

 

whether paid or accrued and
whether or not in cash, on any series of preferred stock of such Person or any
of its Restricted Subsidiaries, other than dividends on Equity Interests
payable solely in Equity Interests of the Company (other than Disqualified
Stock) or to the Company or a Restricted Subsidiary of the Company, times
(B) a fraction, the numerator of which is one and the denominator of which is
one minus the then current combined federal, state and local statutory tax rate
of such Person, expressed as a decimal; in each case, on a consolidated basis
and in accordance with GAAP.

 

“Foreign Subsidiary” means any Restricted
Subsidiary of the Company that was not formed under the laws of the United
States or any state of the United States or the District of Columbia.

 

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

 

“Global Notes” means, individually and
collectively, each of the Restricted Global Notes and the Unrestricted Global
Notes, substantially in the form of Exhibit A hereto issued in accordance with
Article 2 hereof.

 

“Global Note Legend” means the legend set
forth in Section 2.06(e)(i) hereof to be placed on all Global Notes issued
under this Indenture.

 

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

 

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

 

“Guarantors” means each of the Company’s
Subsidiaries in existence on the Issue Date and any other Subsidiary of the
Company that executes a Subsidiary Guarantee in accordance with the provisions
of this Indenture, and their respective successors and assigns.

 

“Hedging Obligations” means, with respect
to any specified Person, the obligations of such Person incurred in the normal
course of business and consistent with past practices and not for speculative
purposes under (i) interest rate swap agreements, interest rate cap agreements
and interest rate collar agreements entered into with one or more financial
institutions for hedging purposes and not for purposes of speculation, (ii)
foreign exchange contracts and currency protection agreements entered into with
one or more financial institutions and designed to protect the Person or entity
entering into the agreement against fluctuations in currency exchange rates
with respect to Indebtedness incurred and not for purposes of speculation,
(iii) any commodity futures contract, commodity option or other similar
agreement or arrangement designed to protect against fluctuations in the price
of commodities used by such

 

9

 

Person at the time and (iv)
other agreements or arrangements designed to protect such person against
fluctuations in interest rates or currency exchange rates.

 

“Holder” means a holder of Notes.

 

“Indebtedness” means, with respect to any
specified Person, any indebtedness of such Person (excluding accrued expenses
and trade payables), whether or not contingent, (i) in respect of borrowed
money, (ii) evidenced by bonds, notes, debentures or similar instruments or
letters of credit (or reimbursement agreements in respect thereof), (iii) in
respect of banker’s acceptances, (iv) representing Capital Lease Obligations,
(v) representing the balance deferred and unpaid of the purchase price of any
property due more than six months after such property is acquired, or (vi)
representing the loss value of any Hedging Obligations, if and to the extent
any of the preceding items (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of the specified
Person prepared in accordance with GAAP. 
In addition, the term “Indebtedness” includes all Indebtedness of others
secured by a Lien on any asset of the specified Person (whether or not such
Indebtedness is assumed by the specified Person) and, to the extent not
otherwise included, the Guarantee by the specified Person of any Indebtedness
of any other Person.

 

The amount of any Indebtedness outstanding as
of any date will be (i) the accreted value of the Indebtedness, in the case of
any Indebtedness issued with original issue discount and (ii) in connection
with any Qualified Receivables Transaction, the Securitization Financing
Amount.

 

In addition, for the purpose of avoiding
duplication in calculating the outstanding principal amount of Indebtedness for
purposes of Section 4.09 hereof, Indebtedness arising solely by reason of
the existence of a Lien to secure other Indebtedness permitted to be incurred
under Section 4.09 hereof will not be considered incremental Indebtedness.

 

Indebtedness will not include the obligations
of any Person (A) resulting from the endorsement of negotiable instruments for
collection in the ordinary course of business, (B) under stand-by letters
of credit to the extent collateralized by cash or Cash Equivalents and
(C) resulting from representations, warranties, covenants and indemnities
given by such Person that are reasonably customary for sellers or transferors
in an accounts receivable securitization transaction.

 

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

 

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

 

“Initial Notes” means $270,000,000 in
aggregate principal amount of 8% Senior Notes due 2011 issued under this
Indenture on the Issue Date.

 

“Institutional Accredited Investor” means
an institution that is an “accredited investor” as defined in Rule 501 (a)( 1),
(2), (3) or (7) under the Securities Act.

 

10

 

“Investments” means, with respect to any
Person, all direct or indirect investments by such Person in other Persons
(including Affiliates) in the forms of loans (including Guarantees or other
obligations), advances or capital contributions (excluding commission, travel
and similar advances to officers and employees made in the ordinary course of
business), purchases or other acquisitions for consideration of Indebtedness,
Equity Interests or other securities, together with all items that are or would
be classified as investments on a balance sheet prepared in accordance with
GAAP.  If the Company or any Restricted
Subsidiary of the Company sells or otherwise disposes of any Equity Interests
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
Restricted Subsidiary of the Company, the Company will be deemed to have made
an Investment on the date of any such sale or disposition in an amount equal to
the fair market value of the Equity Interests of such Restricted Subsidiary not
sold or disposed of in an amount determined as provided in the final paragraph
of Section 4.07 hereof.  The acquisition
by the Company or any Restricted Subsidiary of the Company of a Person that
holds an Investment in a third Person will be deemed to be an Investment made
by the Company or such Restricted Subsidiary in such third Person in an amount
equal to the fair market value of the Investment held by the acquired Person in
such third Person on the date of any such acquisition in an amount determined
as provided in the final paragraph of Section 4.07 hereof.

 

“Issue Date” means July 2, 2003.

 

“Legal Holiday” means 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 or required by law, regulation or executive order to
remain closed.  If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest will accrue
for the intervening period.

 

“Letter of Transmittal” means the letter of
transmittal to be prepared by the Company and sent to all Holders of the
Initial Notes and Additional Notes for use by such Holders in connection with
the Exchange Offer.

 

“Lien” means, with respect to any asset,
any mortgage, lien, pledge, charge, security interest or encumbrance of any
kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option or other
agreement to sell or give a security interest in and, except in connection with
any Qualified Receivables Transaction, any filing of or agreement to give any
financing statement under the Uniform Commercial Code (or equivalent statutes)
of any jurisdiction.

 

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

 

“Management Agreement” means the Management
Agreement dated as of July 24, 2000 by and between the Company and TC
Group L.L.C., a Delaware limited liability company.

 

11

 

“Merger Agreement” means the Agreement and
Plan of Merger dated as of May 12, 2003 by and among the Company, TA
Acquisition Holdings, Inc. and The Aerostructures Corporation.

 

“Moody’s” means Moody’s Investors Services,
Inc.

 

“Net Income” means, with respect to any
specified Person, the net income (loss) of such Person, determined in
accordance with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however, (i) any gain (or loss), together with any
related provision for taxes on such gain (but not loss), realized in connection
with (A) any Asset Sale or (B) the disposition of any securities by such Person
or any of its Restricted Subsidiaries or the extinguishment of any Indebtedness
of such Person or any of its Restricted Subsidiaries and (ii) any
extraordinary gain (or loss), together with any related provision for taxes on
such extraordinary gain (or loss).

 

“Net Proceeds” means the aggregate cash
proceeds received by the Company or any of its Restricted Subsidiaries in
respect of any Asset Sale (including, without limitation, any cash received
upon the sale or other disposition of any non-cash consideration received in
any Asset Sale), net of the direct costs relating to such Asset Sale (including,
without limitation, legal, accounting and investment banking fees, and sales
commissions, recording fees, title transfer fees, appraiser fees, costs of
preparation of assets for sale) and any relocation expenses incurred as a
result of the Asset Sale, and taxes paid or payable as a result of the Asset
Sale in each case, after taking into account any available tax credits or
deductions and any tax sharing arrangements, and amounts required to be applied
to the repayment of Indebtedness secured by a Lien on the asset or assets that
were the subject of such Asset Sale and any reserve for adjustment in respect
of the sale price of such asset or assets established in accordance with GAAP.

 

“Non-Recourse Debt” means Indebtedness (i)
as to which neither the Company nor any of its Restricted Subsidiaries (A)
provides credit support of any kind (including any undertaking, agreement or
instrument that would constitute Indebtedness), (B) is directly or indirectly
liable as a guarantor or otherwise or (C) is the lender, (ii) no default with
respect to which (including any rights that the holders of the Indebtedness may
have to take enforcement action against an Unrestricted Subsidiary) would
permit (upon notice, lapse of time or both) any holder of any other Indebtedness
(other than the Notes) of the Company or any of its Restricted Subsidiaries to
declare a default on such other Indebtedness or cause the payment of the
Indebtedness to be accelerated or payable prior to its Stated Maturity and
(iii) as to which the lenders have been notified in writing that they will not
have any recourse to the stock (other than the stock of an Unrestricted
Subsidiary pledged by the Company or any of its Restricted Subsidiaries) or
assets of the Company or any of its Restricted Subsidiaries.

 

“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.

 

12

 

“Notes” means the Initial Notes and, unless
the context otherwise requires, the Additional Notes, including any Exchange
Notes.

 

“Obligations” means any principal, premium
and Liquidated Damages, if any, interest (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization, whether
or not a claim for post-filing interest is allowed in such proceeding),
penalties, fees, charges, expenses, indemnifications, reimbursement
obligations, damages, guarantees and other liabilities or amounts payable under
the documentation governing any Indebtedness or in respect thereto.

 

“Officer” means, with respect to any
Person, the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any
Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary or
any Vice-President of such Person.

 

“Officers’ Certificate” means a certificate
signed on behalf of the Company by one Officer of the Company, who must be the
principal executive officer, the principal financial officer, a vice president,
the treasurer or the principal accounting officer of the Company, that meets
the requirements of Section 12.05 hereof.

 

“Opinion of Counsel” means an opinion from
legal counsel who is reasonably acceptable to the Trustee, that meets the
requirements of Section 12.05 hereof. 
The counsel may be an employee of or counsel to the Company, any
Subsidiary of the Company or the Trustee.

 

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

 

“Permitted Business” means the lines of
business conducted by the Company and its Restricted Subsidiaries on the Issue
Date and any business incidental or reasonably related thereto or which is a
reasonable extension thereof as determined in good faith by the Board of
Directors of the Company and set forth in an Officer’s Certificate delivered to
the Trustee.

 

“Permitted Holders” means (i) T.C. Group
L.L.C. (which operates under the trade name “The Carlyle Group”), a Delaware
limited liability company, and its Related Parties, (ii) Carlyle Partners
II, L.P. and its Related Parties, and (iii) Carlyle Partners III, L.P. and its
Related Parties or any other investment fund controlled by T.C. Group L.L.C.

 

“Permitted Investments” means (i) any
Investment in the Company or in a Restricted Subsidiary of the Company; (ii)
any Investment in Cash Equivalents; (iii) any Investment by the Company or any
Subsidiary of the Company in a Person, if as a result of such Investment (A)
such Person becomes a Restricted Subsidiary of the Company or (B) such Person
is merged, consolidated or amalgamated with or into, or transfers or conveys
substantially all of its assets to, or is liquidated into, the Company or a
Restricted Subsidiary of the Company, (iv) any Investment made as a result
of the receipt of non-cash consideration from an Asset Sale that was made
pursuant to and in compliance with Section 4.10 hereof; (v) any Investment
solely in exchange for the issuance of Equity Interests (other than
Disqualified Stock) of the Company or made with the proceeds of a substantially
concurrent sale of such Equity Interests (other than

 

13

 

Disqualified Stock); (vi) any
Investments received in compromise or resolution of obligations of (A) trade
creditors or customers that were incurred in the ordinary course of business,
including pursuant to any plan of reorganization or similar arrangement upon
the bankruptcy or insolvency of any trade creditor or customer or (B)
litigation, arbitration or other similar disputes; (vii) Hedging
Obligations permitted to be incurred under Section 4.09 hereof; (viii)
repurchase of the Notes; (ix) loans and advances to officers, directors and
employees in an aggregate amount not to exceed $3,500,000 outstanding at any
time; (x) Investments of any Person (other than Indebtedness of such Person) in
existence at the time such Person becomes a Subsidiary of the Company; provided
such Investment was not made in connection with or anticipation of such Person
becoming a Subsidiary of the Company; (xi) Investments in prepaid expenses,
negotiable instruments held for collection and lease, utility and workers’
compensation, performance and other similar deposits; (xii) any Investment
consisting of a guarantee permitted under Section 4.09 hereof; (xiii)
Investments consisting of non-cash consideration received in the form of
securities, notes or similar obligations in connection with dispositions of
obsolete or worn out assets permitted pursuant to this Indenture; (xiv)
advances, loans or extensions of credit to suppliers in the ordinary course of business
by the Company or any of its Restricted Subsidiaries; (xv) Investments in any
Person to the extent such Investment existed on the Issue Date and any
Investment that replaces, refinances or refunds such an Investment, provided, that the new Investment is
in an amount that does not exceed that amount replaced, refinanced or refunded
and is made in the same Person as the Investment replaced, refinanced or
refunded; (xvi) Investments (including debt obligations) received in
connection with the bankruptcy or reorganization of suppliers and customers and
in settlement of delinquent obligations of, and other disputes with, customers
and suppliers arising in the ordinary course of business; (xvii) so long as no
Default or Event of Default has occurred and is continuing, any Investment in
one or more joint ventures or Unrestricted Subsidiaries that, in collaboration
with other entities engaged in a Permitted Business, represents a collaborative
effort to design, develop, manufacture, assemble or otherwise provide
structural assemblies, systems and related products and services for one or
more specific commercial, military or business aircraft programs on
commercially reasonable terms and conditions, provided, however,
that (a) the purpose of such Investment is to fund the participation of the
Company or any of its Restricted Subsidiaries in any such joint venture or
Unrestricted Subsidiary, (b) any Indebtedness of such joint venture or
Unrestricted Subsidiary is Non-Recourse Debt, (c) such Investment (having a fair
market value measured on the date such Investment was made and without giving
effect to subsequent changes in value), when taken together with all other
Investments made pursuant to this clause (xvii) since the Issue Date, shall not
exceed 12% of Consolidated Tangible Assets at any time outstanding and (d) at
the time of the making of any such Investment pursuant to this clause (xvii),
the Company, after giving pro forma effect to the making of such
Investment and any related transactions could incur $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in
Section 4.09(a) hereof; and provided, further, that Permitted Investments made in any Unrestricted
Subsidiary pursuant to this clause (xvii) shall not increase the amount of
Restricted Payments permitted to be made under Section 4.07(a) hereof;
(xviii) the acquisition by a Receivables Subsidiary in connection with a
Qualified Receivables Transaction of Equity Interests of a trust or other
Person established by such Receivables Subsidiary to effect such Qualified
Receivables Transaction; and any other Investment by the Company or a
Restricted Subsidiary of the Company in a Receivables Subsidiary or any
Investment by a Receivables Subsidiary in any other Person in connection with a
Qualified Receivables Transaction;

 

14

 

provided, that such
other Investment is in the form of a note or other instrument that the
Receivables Subsidiary or other Person is required to repay as soon as
practicable from available cash collections less amounts required to be
established as reserves pursuant to contractual agreements with entities that
are not Affiliates of the Company entered into as part of a Qualified
Receivables Transaction; and (xix) other Investments in any Person having an
aggregate fair market value (measured on the date each such Investment was made
and without giving effect to subsequent changes in value), when taken together
with all other Investments made pursuant to this clause (xix) since the Issue
Date that remain outstanding, not to exceed $25,000,000.

 

“Permitted Liens” means (i) Liens of the
Company and any Guarantor securing (A) Indebtedness under Credit Facilities
that was permitted by the terms of this Indenture to be incurred or (B)
Indebtedness evidenced by debt securities sold to institutional investors that
was incurred pursuant to Section 4.09 hereof; (ii) Liens in favor of the
Company or any Guarantors; (iii) Liens on property of a Person existing at the
time such Person is merged with or into or consolidated with the Company or any
Subsidiary of the Company, provided that such Liens were in existence
prior to the contemplation of such merger or consolidation and do not extend to
any assets other than those of the Person merged into or consolidated with the
Company or the Subsidiary; (iv) Liens on property existing at the time of
acquisition of the property by the Company or any Restricted Subsidiary of the
Company, provided
that such Liens were in existence prior to the contemplation of such
acquisition; (v) Liens to secure the performance of statutory obligations,
surety or appeal bonds, performance bonds or other obligations of a like nature
incurred in the ordinary course of business; (vi) Liens to secure Indebtedness
(including Capital Lease Obligations) permitted by clause (iv) of
Section 4.09(b) hereof covering only the assets acquired with or financed
by such Indebtedness; (vii) Liens existing on the Issue Date; (viii) Liens for
taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings
promptly instituted and diligently concluded, provided that any reserve or
other appropriate provision as is required in conformity with GAAP has been
made therefor; (ix) Liens on assets of Unrestricted Subsidiaries that secure
Non-Recourse Debt of Unrestricted Subsidiaries; (x) Liens imposed by law, such
as carriers’, warehousemen’s, landlord’s and mechanics’ Liens, in each case, incurred
in the ordinary course of business; (xi) survey exceptions, easements or
reservations of, or rights of others for, licenses, rights-of-way, sewers,
electric lines, telegraph and telephone lines and other similar purposes, or
zoning or other restrictions as to the use of real property that were not
incurred in connection with Indebtedness and that do not in the aggregate
materially adversely affect the value of said properties or materially impair
their use in the operation of the business of such Person; (xii) Liens created
for the benefit of (or to secure) the Notes (or Guarantees of the Notes);
(xiii) Liens to secure any Permitted Refinancing Indebtedness permitted to be
incurred under this Indenture; provided,
however, that:  (A) the new Lien shall be limited to all or
part of the same property and assets that secured or, under the written
agreements pursuant to which the original Lien arose, could secure the original
Lien (plus improvements and accessions to, such property or proceeds or
distributions thereof); and (B) the Indebtedness secured by the new Lien is not
increased to any amount greater than the sum of (x) the outstanding principal
amount or, if greater, committed amount, of the Permitted Referencing
Indebtedness and (y) an amount necessary to pay any fees and expenses,
including premiums, related to such refinancings, refunding, extension, renewal
or replacement; (xiv) Liens arising from customs and revenue authorities
arising as a matter of law to secure payment of customs duties in connection
with importation of goods, and Liens upon specific items of inventory or other
goods and

 

15

 

proceeds of any Person securing
such Person’s obligations in respect of bankers’ acceptances or similar credit
transactions issued or created for the account of such Person to facilitate the
purchase, shipment or storage of such inventory of goods; (xv) Liens incurred
or deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security; (xvi)
purported Liens evidenced by filing of precautionary U.C.C. financing
statements relating to operating leases, for personal property; (xvii) Liens on
inventory and work-in-progress in favor of the United States government or
administrative agencies thereof arising in the ordinary course of business in
connection with progress payments under government contracts or sub-contracts;
(xviii) Liens by reason of judgment or decree not otherwise resulting in an
Event of Default; (xix) Liens securing Hedging Obligations permitted under this
Indenture or any Credit Facility; (xx) Liens securing insurance premium
financing arrangements that are limited to the applicable insurance contract;
(xxi) Liens securing Acquired Debt incurred in accordance with
Section 4.09 hereof, provided that such Liens secured such
Acquired Debt at the time of and prior to the incurrence of such Acquired Debt
by the Company or any of its Restricted Subsidiaries and such Liens do not
extend to or cover any property or assets of the Company or any of its
Restricted Subsidiaries other than property or assets that secured the Acquired
Debt prior to it being incurred by the Company or any of its Restricted
Subsidiaries; (xxii) Liens on assets of a Receivables Subsidiary incurred in
connection with a Qualified Receivables Transaction; and (xxiii) Liens incurred
in the ordinary course of business of the Company or any Subsidiary of the
Company with respect to obligations that do not exceed $5,000,000 at any one
time outstanding.

 

“Permitted Refinancing Indebtedness” means
any Indebtedness of the Company or any of its Subsidiaries issued in exchange
for, or the net proceeds of which are used to extend, refinance, renew,
replace, defease or refund other Indebtedness of the Company or any of its
Subsidiaries (other than intercompany Indebtedness); provided that (i) the
principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted
value, if applicable) of the Indebtedness extended, refinanced, renewed,
replaced, defeased or refunded (plus all accrued interest on the Indebtedness
and the amount of all expenses and premiums incurred in connection therewith);
(ii) such Permitted Refinancing Indebtedness has a final maturity date later
than the final maturity date of, and has a Weighted Average Life to Maturity
equal to or greater than the Weighted Average Life to Maturity of, the
Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded; (iii) if the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded is subordinated in right of payment to the
Notes, such Permitted Refinancing Indebtedness is subordinated in right of payment
to the Notes on terms at least as favorable to the Holders of Notes as those
contained in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded; and (iv) such Indebtedness
is incurred either by the Company, the Guarantor or the Subsidiary that is the
obligor on the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded.

 

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

 

16

 

“Private Placement Legend” means the legend
set forth in Section 2.06(e)(i) hereof to be placed on all Notes issued
under this Indenture except as otherwise permitted by the provisions of this
Indenture.

 

“Purchase Agreement” means (i) with respect
to the Initial Notes, the Purchase Agreement, dated June 27, 2003, among
the Company and the Guarantors and the initial purchasers named thereon and
(ii) with respect to each issuance of Additional Notes, the purchase agreement
or underwriting agreement among the Company, the Guarantors and the Persons
purchasing such Additional Notes.

 

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

 

“Qualified Receivables Transaction” means
any transaction or series of transactions entered into by the Company or any of
its Restricted Subsidiaries pursuant to which the Company or any of its
Restricted Subsidiaries sells, conveys or otherwise transfers to (i) a
Receivables Subsidiary (in the case of a transfer by the Company or any of its
Restricted Subsidiaries) and (ii) any other Person (in the case of a transfer
by a Receivables Subsidiary), or grants a security interest in, any accounts
receivable (whether now existing or arising in the future) of the Company or
any of its Restricted Subsidiaries, and any assets related thereto including,
without limitation, all collateral securing such accounts receivable, all
contracts and all guarantees or other obligations in respect of such accounts
receivable, proceeds of such accounts receivable and other assets which are
customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization transactions
involving accounts receivable.

 

“Receivables Subsidiary” means a Subsidiary
of the Company which engages in no activities other than in connection with the
financing of accounts receivable and which is designated by the Board of
Directors of the Company (as provided below) as a Receivables Subsidiary (a) no
portion of the Indebtedness or any other Obligations (contingent or otherwise)
of which (i) is guaranteed by the Company or any Restricted Subsidiary of the
Company (excluding guarantees of Obligations (other than the principal of, and
interest on, Indebtedness) pursuant to representations, warranties, covenants
and indemnities entered into in the ordinary course of business in connection
with a Qualified Receivables Transaction), (ii) is recourse to or obligates the
Company or any Restricted Subsidiary of the Company in any way other than
pursuant to representations, warranties, covenants and indemnities entered into
in the ordinary course of business in connection with a Qualified Receivables
Transaction or (iii) subjects any property or asset of the Company or any
Restricted Subsidiary of the Company (other than accounts receivable and
related assets as provided in the definition of “Qualified Receivables
Transaction”), directly or indirectly, contingently or otherwise, to the
satisfaction thereof, other than pursuant to representations, warranties,
covenants and indemnities entered into in the ordinary course of business in
connection with a Qualified Receivables Transaction, (b) with which neither the
Company nor any Restricted Subsidiary of the Company has any material contract,
agreement, arrangement or understanding other than on terms no less favorable
to the Company or such Restricted Subsidiary than those that might be obtained
at the time from Persons who are not Affiliates of the Company, other than fees
payable in the ordinary course of business in connection with servicing
accounts receivable and (c) with which neither the Company nor any Restricted
Subsidiary of the Company has any obligation to maintain or

 

17

 

preserve such Subsidiary’s
financial condition or cause such Restricted Subsidiary to achieve certain
levels of operating results.  Any such
designation by the Board of Directors of the Company will be evidenced to the
trustee by filing with the trustee a certified copy of the resolution of the
Board of Directors of the Company giving effect to such designation and an
officers’ certificate certifying that such designation complied with the
foregoing conditions.

 

“Registration Rights Agreement” means the
Registration Rights Agreement, dated as of the Issue Date, by and among the
Company and the Guarantors and the other parties named on the signature pages
thereof, as such agreement may be amended, modified or supplemented from time
to time and, with respect to any Additional Notes, one or more registration
rights agreements among the Company and the Guarantors and the other parties
thereto, as such agreements may be amended, modified or supplemented from time
to time, relating to rights given by the Company to the purchasers of
Additional Notes to register such Additional Notes under the Securities Act.

 

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

 

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

 

“Related Party” means (i) any controlling
stockholder, majority owned Subsidiary, or immediate family member (in the case
of an individual) of any Permitted Holder; or (ii) any trust, corporation,
partnership or other entity, the beneficiaries, stockholders, partners, owners
or Persons beneficially holding a majority controlling interest of which
consist of any one or more Permitted Holders and/or such other Persons referred
to in the immediately preceding clause (i).

 

“Responsible Officer” when used with
respect to the Trustee, means any officer within the Corporate Trust
Administration of the Trustee (or any successor group of the Trustee) with
direct responsibility for the administration of this Indenture or any other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter
is referred because of his knowledge of and familiarity with the particular
subject.

 

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

 

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

 

“Restricted Subsidiary” means, with respect
to any Person, any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary.

 

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

 

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

 

18

 

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

 

“Rule 903” means Rule 903 promulgated under
the Securities Act.

 

“Rule 904” means Rule 904 promulgated under
the Securities Act.

 

“SEC” means the Securities and Exchange
Commission.

 

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

 

“Securitization Financing Amount” means, as
of any date, with respect to a Qualified Receivables Transaction, that portion
of the Indebtedness of the related Receivables Subsidiary that is attributable
to the accounts receivable and related assets of the type described in the
definition of “Qualified Receivables Transaction” transferred to such
Receivables Subsidiary by or on behalf of the Company and its Restricted
Subsidiaries.

 

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

 

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

 

“Stated Maturity” means, with respect to
any installment of interest or principal on any series of Indebtedness, the
date on which the payment of interest or principal was scheduled to be paid in
the original documentation governing such Indebtedness, and will not include
any contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

 

“Subsidiary” means, with respect to any
specified Person, (i) any corporation, association or other business entity of
which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees of the corporation, association or
other business entity is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that
Person (or a combination thereof) and (ii) any partnership (A) the sole general
partner or the managing general partner of which is such Person or a Subsidiary
of that Person or (B) the only general partners of which are such Person or one
or more Subsidiaries of such Person (or any combination thereof).

 

“Subsidiary Guarantee” means any Guarantee
by a Guarantor of the Company’s payment Obligations under this Indenture and
the Notes, executed pursuant to the provisions of this Indenture.

 

“S&P” means Standard and Poor’s
Corporation.

 

19

 

“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 TIA.

 

“Transfer Restricted Securities” means
securities that bear or are required to bear the Private Placement Legend set
forth in Section 2.06(e)(i) hereof.

 

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

 

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

 

“Unrestricted Global Note” means one or
more Global Notes, substantially in the form of Exhibit A attached hereto, that
bear the Global Note Legend, that do not and are not required to bear the
Private Placement Legend and are deposited with or on behalf of and registered
in the name of the Depositary or its nominee.

 

“Unrestricted Subsidiary” means any
Subsidiary of the Company (other than the Subsidiaries of the Company on the
Issue Date or any successor to any of them) that is designated by the Board of
Directors of the Company as an Unrestricted Subsidiary pursuant to a resolution
of the Board of Directors, but only to the extent that such Subsidiary:  (i) has no Indebtedness other than
Non-Recourse Debt; (ii) is not party to any agreement, contract, arrangement or
understanding with the Company or any Restricted Subsidiary of the Company
unless the terms of any such agreement, contract, arrangement or understanding
are no less favorable to the Company or such Restricted Subsidiary than those
that might be obtained at the time from Persons who are not Affiliates of the
Company; (iii) is a Person with respect to which neither the Company nor any of
its Restricted Subsidiaries has any direct or indirect obligation (A) to
subscribe for additional Equity Interests or (B) to maintain or preserve such
Person’s financial condition or to cause such Person to achieve any specified
levels of operating results; and (iv) has not guaranteed or otherwise directly
or indirectly provided credit support for any Indebtedness of the Company or
any of its Restricted Subsidiaries.  Any
designation of a Subsidiary of the Company as an Unrestricted Subsidiary will
be evidenced to the Trustee by filing with the Trustee a certified copy of the
resolution of the Board of Directors of the Company giving effect to such
designation and an Officers’ Certificate certifying that such designation
complied with the preceding conditions and was permitted by Section 4.07
hereof.  If, at any time, any
Unrestricted Subsidiary would fail to meet the preceding requirements as an
Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary
for purposes of this Indenture and any Indebtedness of such Subsidiary shall be
deemed to be incurred by a Restricted Subsidiary of the Company as of such date
and, if such Indebtedness is not permitted

 

20

 

to be incurred as of such date
under Section 4.09 hereof, the Company will be in default of such
covenant.  The Board of Directors of the
Company may at any time designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that such designation will be
deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the
Company of any outstanding Indebtedness of such Unrestricted Subsidiary and
such designation will only be permitted if (i) such Indebtedness is
permitted under Section 4.09 hereof, calculated on a pro forma basis as if such
designation had occurred at the beginning of the four-quarter reference period,
and (ii) no Default or Event of Default would be in existence following such
designation.

 

“U.S. Person” means a U.S. person as
defined in Rule 902(k) under the Securities Act.

 

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

 

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

 

Section 1.02                            Other Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  	
   

  
	
  “Asset Sale Offer”

  	
   

  	
  3.09

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.15

  	
   

  
	
  “Change of Control Payment”

  	
   

  	
  4.15

  	
   

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.15

  	
   

  
	
  “Company”

  	
   

  	
  Preamble

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  	
   

  
	
  “incur”

  	
   

  	
  4.09

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Offer Amount”

  	
   

  	
  3.09

  	
   

  
	
  “Offer Period”

  	
   

  	
  3.09

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Payment Blockage Notice”

  	
   

  	
  11.03

  	
   

  
	
  “Payment Default”

  	
   

  	
  6.01

  	
   

  
	
  “Permanent Regulation S Global Note”

  	
   

  	
  2.01

  	
   

  
	
  “Permitted Debt”

  	
   

  	
  4.09

  	
   

  
	
  “Purchase Date”

  	
   

  	
  3.09

  	
   

  
	
  “Redemption Date”

  	
   

  	
  3.07

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  	
   

  
	
  “Rule 144A Global Note”

  	
   

  	
  2.01

  	
   

  
	
  “Temporary Regulation S Global Note”

  	
   

  	
  2.01

  	
   

  

 

21

 

Section 1.03                            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
of a Note;

 

“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, respectively, and any successor obligor on 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 SEC rule under the TIA have the meanings so assigned to them.

 

Section 1.04                            Rules of Construction.

 

Unless the context otherwise requires:

 

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

 

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

 

(iii)                               “or” is not exclusive;

 

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

 

(v)                                 provisions apply to
successive events and transactions; and

 

22

 

(vi)                              references to
Sections of or rules under the Securities Act will be deemed to include
substitute, replacement of successor Sections or rules adopted by the SEC
from time to time.

 

ARTICLE 2.

THE NOTES

 

Section 2.01                            Form and Dating.

 

(a)                                  General.  The Notes
and the Trustee’s certificate of authentication will be substantially in the
form of Exhibit A hereto.  The Notes may
be issued in the form of Definitive Notes or Global Notes, as specified by the
Company.  The Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage.  Each Note will be dated the date of its authentication.
The Notes will be in denominations of $l,000 and integral multiples thereof.

 

Notes issued in global form will be
substantially in the form of Exhibit A attached hereto (including the Global
Note Legend and the “Schedule of Exchanges in the Global Note” attached
thereto).  Notes issued in definitive
form shall be substantially in the form of Exhibit A attached hereto (but
without the Global Note Legend and without 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 Note Custodian, at the
direction of the Trustee, in accordance with instructions given by the Holder
thereof as required by Section 2.06 hereof.

 

The terms and provisions contained in the
Notes will constitute, and are hereby expressly made, a part of this Indenture
and the Company and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound
thereby.  However, to the extent any
provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture will govern and be controlling.

 

(b)                                 Initial Notes.  The Initial
Notes will be offered and sold by the Company pursuant to a Purchase
Agreement.  The Initial Notes will be
resold initially only to (i) QIBs in reliance on Rule 144A and (ii) Non-U.S.
Persons in reliance on Regulation S. Initial Notes may thereafter be
transferred to, among others, QIBs and purchasers in reliance on Regulation S,
subject to the restrictions on transfer set forth herein.  Initial Notes initially resold pursuant to
Rule 144A will be issued initially in the form of one or more Global Notes in
definitive, fully registered form (collectively, the “Rule 144A Global Note”) and
Initial Notes initially resold pursuant to Regulation S will be issued
initially in the form of one or more temporary Global Notes in definitive,
fully registered form (collectively, the “Temporary Regulation S Global Note”), in
each case without interest coupons and with the Global Note Legend and Private
Placement Legend set forth in Exhibit A hereto, which will be deposited on
behalf of the purchasers of the Initial Notes represented thereby with the
Notes Custodian, and registered in

 

23

 

the name of the
Depositary or a nominee of the Depositary, duly executed by the Company and
authenticated by the Trustee as provided in this Indenture.  Beneficial ownership interests in the
Temporary Regulation S Global Note will not be exchangeable for interests in
the Rule 144A Global Note, a permanent global note (the “Permanent Regulation S Global Note”)
or a Definitive Note without a legend containing restrictions on transfer of
such Note prior to the expiration of the Distribution Compliance Period and
then only upon (x) certification in form reasonably satisfactory to the Trustee
that beneficial ownership interests in such Temporary Regulation S Global Note
are owned either by Non-U.S. Persons or U.S. Persons who purchased such
interests in a transaction that did not require registration under the
Securities Act and (y) in the case of an exchange for a Definitive Note, in
compliance with Section 2.01(c) hereof. 
The Temporary Regulation S Global Note and the Permanent Regulation S
Global Note are collectively referred to herein as the “Regulation S Global
Note”.  The aggregate principal amount
of the Global Notes may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depositary or its
nominee as hereinafter provided.

 

(c)                                  Book-Entry Provisions.  This
Section 2.0 1(c) will apply only to a Global Note deposited with or on
behalf of the Depositary.

 

The Company will execute and the Trustee
will, in accordance with this Section 2.01(c), authenticate and deliver
initially one or more Global Notes that (a) will be registered in the name of
the Depositary for such Global Note or Global Notes or the nominee of such
Depositary and (b) will be delivered by the Trustee to such Depositary or
pursuant to such Depositary’s instructions or held by the Trustee as custodian
for the Depositary.

 

Participants in the Depositary will have no
rights under this Indenture with respect to any Global Note held on their
behalf by the Depositary or by the Trustee as the custodian of the Depositary
or under such Global Note, and the Company, the Trustee and any agent of the
Company or the Trustee will be entitled to treat the Depositary as the absolute
owner of such Global Note for all purposes whatsoever.  Notwithstanding the foregoing, nothing
herein will prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Participants, the operation of customary practices of such Depositary
governing the exercise of the rights of a Holder of a beneficial interest in
any Global Note.

 

(d)                                 Certificated Notes.  Except as
provided in this Section 2.01 or Section 2.03 or 2.04 hereof, owners
of beneficial interests in Global Notes shall not be entitled to receive
physical delivery of Definitive Notes.

 

Section 2.02                            Execution and
Authentication.

 

One Officer will sign the Notes for the
Company by manual or facsimile signature.

 

If an Officer whose signature is on a Note no
longer holds that office at the time a Note is authenticated, the Note will
nevertheless be valid.

 

24

 

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

 

The Trustee will authenticate and
deliver:  (i) on the Issue Date, an
aggregate principal amount of $270,000,000 8% Senior Notes Due 2011, (ii)
Additional Notes for an original issue in an aggregate principal amount
specified in the written order of the Company pursuant to this
Section 2.02 and (iii) Exchange Notes for issue only in an Exchange Offer
pursuant to a Registration Rights Agreement, for a like principal amount of
Initial Notes or Additional Notes, in each case upon a written order of the
Company signed by one Officer of the Company. 
Such order will specify the amount of the Notes to be authenticated and
the date on which the original issue of the Notes is to be authenticated.

 

The Trustee may appoint an authenticating
agent reasonably acceptable to the Company to authenticate Notes.  An authenticating agent may authenticate
Notes whenever the Trustee may do so. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent. 
An authenticating agent has the same rights as an Agent for service of
notices and demands.

 

Section 2.03                            Registrar and Paying Agent

 

The Company will 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 will keep a register of the
Notes and of their transfer and exchange. 
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 will notify the Trustee in
writing of the name and address of any Agent not a party to this
Indenture.  If the Company fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
will act as such.  The Company or any of
its Restricted Subsidiaries may act as Paying Agent or Registrar.

 

The Company initially appoints The Depository
Trust Company (“DTC”) 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.

 

Section 2.04                            Paying Agent to Hold Money
in Trust.

 

The Company will 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, premium or Liquidated Damages, if any, or
interest 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)
will have no further liability for the

 

25

 

money.  If the Company or a Subsidiary acts as
Paying Agent, it will 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 will serve as Paying Agent for
the Notes.

 

Section 2.05                            Holder Lists.

 

The Trustee will 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 will otherwise comply with TIA
§ 312(a).  If the Trustee is not
the Registrar, the Company will 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 will otherwise comply with TIA § 312(a).

 

Section 2.06                            Transfer and Exchange.

 

(a)                                  Transfer and Exchange of Definitive Notes. 
When Definitive Notes are presented to the Registrar or a co-registrar
with a request:

 

(x)                                   to register the
transfer of such Definitive Notes or

 

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

 

the Registrar or co-registrar will register
the transfer or make the exchange as requested if its reasonable requirements
for such transaction are met; provided, however, that the Definitive Notes
surrendered for transfer or exchange:

 

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

 

(ii)                                  if such Definitive Notes are
required to bear a restricted securities legend, they are being transferred or
exchanged pursuant to an effective registration statement under the Securities
Act, pursuant to Section 2.06(b) hereof or pursuant to clause (A), (B) or
(C) below, and are accompanied by the following additional information and
documents, as applicable:

 

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

 

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

 

(C)                                if such Definitive Notes are being
transferred (x) pursuant to an exemption from registration in accordance with
Rule 144A, Regulation S or Rule

 

26

 

144
or (y) in reliance upon another exemption from the requirements of the
Securities Act:  (I) a certification to
that effect (in the form set forth on the reverse of the Note) and (2) if the
Company so requests, an opinion of counsel or other evidence reasonably
satisfactory to it as to compliance with the restrictions set forth in the
legend set forth in Section 2.06(e)(i) hereof

 

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

 

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

 

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

 

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

 

(c)                                  Transfer and Exchange of Global Notes.  (i) The transfer and
exchange of Global Notes or beneficial interests therein will be effected
through the Depositary, in accordance with this Indenture (including applicable
restrictions on transfer set forth herein, if any) and the procedures of the
Depositary therefor.  A transferor of a
beneficial interest in a Global Note will deliver to the Registrar a written
order given in accordance with the Depositary’s procedures containing
information regarding the Participant account of the

 

27

 

Depositary to be
credited with a beneficial interest in the Global Note.  The Registrar will, in accordance with such
instructions, instruct the Depositary to credit to the account of the Person
specified in such instructions a beneficial interest in the Global Note and to
debit the account of the Person making the transfer the beneficial interest in
the Global Note being transferred.

 

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

 

(iii)                               Notwithstanding any
other provisions of this Indenture (other than the provisions set forth in
Section 2.06(c)(v) hereof), a Global Note may pot be transferred as a
whole except by the Depositary to a nominee of the Depositary or by a nominee
of the Depositary to the Depositary or another nominee of the Depositary or by
the Depositary or any such nominee to a successor Depositary or a nominee of
such successor Depositary.

 

(iv)                              In the event that a
Global Note is exchanged for Definitive Notes pursuant to
Section 2.06(c)(v) hereof, prior to the consummation of an Exchange Offer
or the effectiveness of a Shelf Registration Statement with respect to such
Notes, such Notes may be exchanged only in accordance with such procedures as
are substantially consistent with the provisions of this Section 2.06
(including the certification requirements set forth on the reverse of the
Initial Notes intended to ensure that such transfers comply with Rule 144A or
Regulation S, as the case may be) and such other procedures as may from
time to time be adopted by the Company.

 

(v)                                 A Global Note
deposited with the Depositary or with the Trustee as Notes Custodian for the
Depositary pursuant to Section 2.01 will be transferred to the beneficial
owners thereof in the form of Definitive Notes in an aggregate principal amount
equal to the principal amount of such Global Note, in exchange for such Global
Note, only if such transfer complies with Section 2.06 hereof and (A) the
Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Note or if at any time such Depositary ceases to be
a “clearing agency” registered under the Exchange Act and, in either case, a
successor Depositary is not appointed by the Company within 90 days of such
notice, (B) an Event of Default has occurred and is continuing or (C) the
Company, in its sole discretion, notifies the Trustee in writing that it elects
to cause the issuance of Definitive Notes under this Indenture.

 

Any Global Note that is transferable to the
beneficial owners thereof pursuant to this Section 2.06(c)(v) will be
surrendered by the Depositary to the Trustee located at its principal corporate
trust office in the Borough of Manhattan, The City of New York, to be so
transferred, in whole or from time to time in part, without charge, and the
Trustee will authenticate and deliver, upon such transfer of each portion of
such Global Note, an equal aggregate principal amount of Definitive Notes of
authorized denominations.  Any portion
of a Global Note transferred pursuant to this Section 2.06(c)(v) will be executed,
authenticated and delivered only in denominations of $1,000 principal amount
and any integral multiple thereof

 

28

 

and registered in such names as
the Depositary shall direct.  Any
Definitive Note delivered in exchange for an interest in the Transfer
Restricted Security will, except as otherwise provided by Section 2.06(e)
hereof, bear the restricted securities legend set forth in Exhibit A hereto.

 

(d)                                 Restrictions on Transfer of Temporary Regulation S Global
Notes.  During the Distribution Compliance Period,
beneficial ownership interests in a Temporary Regulation S Global Note may only
be sold, pledged or transferred through Euroclear or Clearstream in accordance
with the Applicable Procedures and only (i) for interests in a Permanent
Regulation S Global Note and then only upon certification in form reasonably
satisfactory to the Trustee that beneficial ownership interests in such
Temporary Regulation S Global Note are owned either by Non-U.S. Persons or U.S.
Persons who purchased such interests in a transaction that did not require
registration under the Securities Act or (ii) for interests in a Rule 144A
Global Note only if the transferor first delivers to the Trustee a written
certificate (in the form provided in this Indenture) to the effect that the
Notes are being transferred to a Person (A) who the transferor reasonably
believes to be a qualified institutional buyer within the meaning of Rule 144A;
(B) purchasing for its own account or the account of a qualified
institutional buyer in a transaction meeting the requirements of Rule 144A; and
(C) in accordance with all applicable securities laws of the states of the
United States and other jurisdictions.

 

(e)                                  Legend.

 

(i)                                     Except as permitted by the following
paragraphs (ii), (iii) and (iv), each Note certificate evidencing the Global
Notes (and all Notes issued in exchange therefor or in substitution thereof)
will bear the Private Placement Legend in substantially the following form:

 

THE NOTES EVIDENCED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES
ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
(A)(1) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE
TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO AN
INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, (5) IN ACCORDANCE WITH ANOTHER EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (BASED UPON AN OPINION
OF COUNSEL IF THE COMPANY SO REQUESTS) OR (6) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE
BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.

 

29

 

Each Global Note will also bear the Global
Note Legend in substantially the following form:

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY
(AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR
THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE
INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART
PURSUANT TO SECTION 2.06(c) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

Each Definitive Note will also bear the
following additional legend:

 

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

 

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

 

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

 

(iv)                              Upon the consummation of an Exchange
Offer with respect to the Initial Notes, all requirements pertaining to such
Initial Notes that Initial Notes issued to certain Holders be issued in global
form will still apply with respect to Holders of such Initial Notes that do not
exchange their Initial Notes, and Exchange Notes in certificated or global
form, in each case without the restrictive securities legend relating to the

 

30

 

restrictions
on transfer relating to the Securities Act set forth in Exhibit A hereto will
be available to Holders that exchange such Initial Notes in such Exchange
Offer.

 

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

 

(g)                                 Obligations with Respect to Transfers and Exchanges of
Securities.

 

(i)                                     To permit registrations of transfers
and exchanges, the Company shall execute and the Trustee will authenticate
Definitive Notes and Global Notes at the Registrar’s or co-registrar’s request.

 

(ii)                                  No service charge will be made for
any registration of transfer or exchange, but the Company may require payment
of a sum sufficient to cover any transfer tax, assessments, or similar
governmental charge payable in connection therewith (other than any such
transfer taxes, assessments or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.10, 3.06, 4.15 and 9.05 of
this Indenture).

 

(iii)                               The Registrar or co-registrar will
not be required to register the transfer of or exchange of (a) any Definitive
Note selected for redemption in whole or in part pursuant to Article 3
hereof, except the unredeemed portion of any Definitive Note being redeemed in
part, or (b) any Note for a period beginning 15 days before the mailing of a
notice of an offer to repurchase or redeem Notes or 15 days before an interest
payment date.

 

(iv)                              Prior to the due presentation for
registration of transfer of any Note, the Company, the Trustee, the Paying Agent,
the Registrar or any co-registrar may deem and treat the person in whose name a
Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal of and interest on such Note and for all other
purposes whatsoever, whether or not such Note is overdue, and none of the
Company, the Trustee, the Paying Agent, the Registrar or any co-registrar will
be affected by notice to the contrary.

 

(v)                                 All Notes issued upon any transfer
or exchange pursuant to the terms of this Indenture will evidence the same debt
and will be entitled to the same benefits under this Indenture as the Notes
surrendered upon such transfer or exchange.

 

31

 

(h)                                 No Obligation of the Trustee.

 

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

 

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

 

Section 2.07                            Replacement Notes.

 

If any mutilated Note is surrendered to the
Trustee or the Company and the Trustee receives evidence to its satisfaction of
the destruction, loss or theft of any Note, the Company will issue and the
Trustee, upon the written order of the Company signed by one Officer of the
Company, will authenticate a replacement Note if the Trustee’s requirements 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 that any of them
may suffer if a Note is replaced.  The
Company and the Trustee may charge for their expenses in replacing a Note.

 

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

 

Section 2.08                            Outstanding Notes.

 

The Notes outstanding at any time are all the
Notes 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

 

32

 

those described in this
Section as not outstanding.  Except
as set forth in Section 2.09 hereof, 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 2.07 hereof, it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Note is held by a bona fide
purchaser.

 

If the principal amount of any Note is
considered paid under Section 4.01 hereof, 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 all principal, premium, if any, and interest
payable on that date with respect to the Notes, then on and after that date
such Notes will be deemed to be no longer outstanding and will cease to accrue
interest.

 

Section 2.09                            Treasury Notes.

 

In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by the Company, or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Company, will be considered as though not outstanding, except that for the
purposes of determining whether the Trustee will be protected in relying on any
such direction, waiver or consent, only Notes that a Trustee knows are so owned
will be so disregarded.

 

Section 2.10                            Temporary Notes.

 

Until certificates representing Notes are
ready for delivery, the Company may prepare and the Trustee will authenticate
temporary Notes upon a written order of the Company signed by one Officer of
the Company.  Temporary Notes will be
substantially in the form of Definitive Notes but may have variations that the
Company considers appropriate for temporary Notes and that are reasonably
acceptable to the Trustee.  Without
unreasonable delay, the Company will prepare and the Trustee will authenticate
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 will forward to the Trustee any Notes surrendered to
them for registration of transfer, exchange or payment.  The Trustee and no one else will cancel all
Notes surrendered for registration of transfer, exchange, payment, replacement
or cancellation and will destroy canceled Notes (subject to the record
retention requirement of the Exchange Act). 
Certification of the destruction of all canceled Notes will be delivered
to the Company.  The Company may not
issue new Notes to replace Notes that it has redeemed, paid or delivered to the
Trustee for cancellation.

 

33

 

Section 2.12                            Defaulted Interest.

 

If the Company defaults in a payment of
interest on the Notes, it will 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 4.01 hereof.  The
company will 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 will fix or cause to be fixed
each such special record date and payment date, provided that no such special record date will 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) will mail or cause to be mailed to
Holders a notice that states the special record date, the related payment date
and the amount of defaulted interest to be paid.

 

Section 2.13                            CUSIP Numbers.

 

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

 

Section 2.14                            Issuance of Additional
Notes.

 

The Company will be entitled, subject to its
compliance with Section 4.09 hereof, to issue Additional Notes under this
Indenture with identical terms as the Initial Notes issued on the Issue Date,
other than with respect to the date of issuance and issue price.  The Initial Notes issued on the Issue Date,
any Additional Notes and all Exchange Notes issued in exchange therefor will be
treated as a single class for all purposes under this Indenture.

 

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

 

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

 

(ii)                                  the issue price, the issue date and
the CUSIP number of such Additional Notes; provided, however, that no Additional Notes may be issued at a price that would
cause such Additional Notes to have “original issue discount” within the
meaning of Section 1273 of the Internal Revenue Code of 1986, as amended;
and

 

(iii)                               whether such Additional Notes will
be Transfer Restricted Securities or will be issued in the form of Exchange
Notes.

 

34

 

ARTICLE 3.

REDEMPTION AND PREPAYMENT

 

Section 3.01                            Notices to Trustee.

 

If the Company elects to redeem Notes
pursuant to the optional redemption provisions of Section 3.07 hereof, it
will furnish to the Trustee, at least 45 days before a redemption date, an
Officers’ Certificate setting forth (i) the clause of this Indenture pursuant
to which the redemption will occur, (ii) the redemption date, (iii) the
principal amount of Notes to be redeemed and (iv) the redemption prices.

 

Section 3.02                            Selection of Notes to be
Redeemed or Purchased.

 

If less than all of the Notes are to be
redeemed or purchased in an offer to purchase at any time, the Trustee will
select Notes for redemption or purchase as follows:  (i) if the Notes are listed on any national securities exchange,
in compliance with the requirements of the principal national securities
exchange on which the Notes are listed or (ii) if the Notes are not so listed,
on a pro
rata basis, by lot or by such method as the Trustee deems fair and
appropriate; provided that no Notes of $1,000 or less shall be redeemed
in part.

 

The Trustee will promptly notify the Company
in writing of the Notes selected for redemption or purchase and, in the case of
any Note selected for partial redemption or purchase, the principal amount
thereof to be redeemed or purchased. 
Notes and portions of Notes selected will be in amounts of $1,000 or
whole multiples of $1,000; except that if all of the Notes of a Holder are to
be redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000, will be redeemed or purchased.  Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or
purchase also apply to portions of Notes called for redemption or purchase.

 

Section 3.03                            Notice of Redemption.

 

Subject to the provisions of
Section 3.09 hereof, at least 30 days but not more than 60 days before a
redemption date, the Company will mail or cause to be mailed, by first class
mail, a notice of redemption to each Holder whose Notes are to be redeemed at
its registered address, except that redemption notices may be mailed more than
60 days prior to a redemption date if the notice is issued in connection with a
defeasance of the Notes or a satisfaction and discharge of this Indenture
pursuant to Article 8 or 11 hereof. 
Notices of redemption may not be conditional.  Notes called for redemption become due on the date fixed for
redemption.

 

The notice will identify the Notes to be
redeemed (including CUSIP Numbers, if any) and will state:

 

(i)                                     the redemption date;

 

(ii)                                  the redemption price;

 

35

 

(iii)                               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 upon
cancellation of the original Note;

 

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

 

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

 

(vi)                              that, unless the Company defaults in
making such redemption payment, interest on Notes called for redemption ceases
to accrue on and after the redemption date;

 

(vii)                           the paragraph of the Notes and/or
Section of this Indenture pursuant to which the Notes called for
redemption are being redeemed; and

 

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

 

At the Company’s request, the Trustee will
give the notice of redemption in the Company’s name and at its expense; provided,
however, that the
Company has delivered to the Trustee, at least 45 days prior 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 3.04                            Effect of Notice of
Redemption.

 

Once notice of redemption is mailed in
accordance with Section 3.03 hereof, Notes called for redemption become
irrevocably due and payable on the redemption date at the redemption
price.  A notice of redemption may not
be conditional.

 

Section 3.05                            Deposit of Redemption or
Purchase Price.

 

Prior to 11:00 a.m. on the Business Day prior
to the redemption date, the Company will deposit with the Trustee or with the
Paying Agent money sufficient to pay the redemption or purchase price of and
accrued interest on all Notes to be redeemed or purchased on that date.  The Trustee or the Paying Agent will
promptly return to the Company any money deposited with the Trustee or the
Paying Agent by the Company in excess of the amounts necessary to pay the
redemption or purchase price of, and accrued interest on, all Notes to be
redeemed or purchased.

 

If the Company complies with the provisions
of the preceding paragraph, on and after the redemption or purchase date,
interest will cease to accrue on the Notes or the portions of Notes called for
redemption or purchase.  If a Note is
redeemed or purchased on or after an interest record date but on or prior to
the related interest payment date, then any accrued and unpaid interest will be
paid to the Person in whose name such Note was registered at the close of
business on such record date.  If any
Note called for redemption or purchase is not so paid upon surrender for redemption
or purchase because of the failure of the Company to comply with the

 

36

 

preceding paragraph, interest
will be paid on the unpaid principal, from the redemption or purchase date
until such principal is paid, and to the extent lawful on any interest not paid
on such unpaid principal, in each case at the rate provided in the Notes and in
Section 4.01 hereof.

 

Section 3.06                            Notes Redeemed or Purchased
in Part.

 

Upon surrender of a Note that is redeemed or
purchased in part, the Company will issue and, upon the Company’s written
request, the Trustee will authenticate for the Holder at the expense of the
Company a new Note equal in principal amount to the unredeemed or unpurchased
portion of the Note surrendered.

 

Section 3.07                            Optional Redemption.

 

(a)                                  At any time prior to July 15,
2006, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes issued under this Indenture at a redemption
price of 108.000% of the principal amount, plus accrued and unpaid interest and
Liquidated Damages, if any, to the redemption date, with the net cash proceeds
of one or more Equity Offerings by the Company or from the cash contribution of
equity capital (other than Disqualified Stock) to the Company; provided that:

 

(i)                                     at least 65% of the aggregate
principal amount of Notes issued under this Indenture remains outstanding
immediately after the occurrence of such redemption (excluding Notes held by
the Company and its Subsidiaries); and

 

(ii)                                  the redemption occurs within 120
days of the date of the closing of such Equity Offering.

 

(b)                                 At any time prior to July 15,
2007, the Company may also redeem all or a part of the Notes, upon not less
than 30 nor more than 60 days’ notice, at a redemption price equal to 100% of
the principal amount of Notes redeemed plus the Applicable Premium as of, and
accrued and unpaid interest and Liquidated Damages, if any, to the date of
redemption (the “Redemption Date”).

 

(c)                                  Except pursuant to Sections 3.07(a)
and 3.07(b) hereof, the Notes will not be redeemable at the Company’s option
prior to July 15, 2007.

 

(d)                                 On or after July 15, 2007, the
Company may redeem all or a part of the Notes upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and
Liquidated Damages, if any, on the Notes redeemed, to the applicable redemption
date, if redeemed during the twelve-month period beginning on July 15 of
the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2007

  	
   

  	
  104.000

  	
  %

  
	
  2008

  	
   

  	
  102.000

  	
  %

  
	
  2009 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

37

 

(e)                                  Any redemption pursuant to this
Section 3.07 will be made pursuant to the provisions of Sections 3.01
through 3.06 hereof.

 

Section 3.08                            Mandatory Redemption.

 

The Company is not required to make any
mandatory redemption or sinking fund payments with respect to the Notes.

 

Section 3.09                            Offer to Purchase by
Application of Excess Proceeds.

 

In the event that, pursuant to
Section 4.10 hereof, the Company is required to commence an offer to all
Holders to purchase Notes (an “Asset Sale Offer”), it will follow the
procedures specified below.

 

The Asset Sale Offer will be made to all
Holders and all holders of other Indebtedness that is pari passu with the Notes
containing provisions similar to those set forth in this Indenture with respect
to offers to purchase or redeem with the proceeds of sales of assets.  The Asset Sale Offer will remain open for a
period of at least 20 Business Days following its commencement and not longer
than 30 Business Days, except to the extent that a longer period is required by
applicable law (the “Offer Period”).  No later than five Business Days after the termination of the
Offer Period (the “Purchase Date”), the Company will apply all Excess Proceeds
(the “Offer
Amount”) to the purchase of Notes and such other pari passu
Indebtedness (on a pro rata basis,
if applicable) or, if less than the Offer Amount has been tendered, all Notes
and other Indebtedness tendered in response to the Asset Sale Offer.  Payment for any Notes so purchased will be
made in the same manner as interest payments are made.

 

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 Liquidated Damages, if any, will 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 will be payable to Holders who tender
Notes pursuant to the Asset Sale Offer.

 

Upon the commencement of an Asset Sale Offer,
the Company will send, by first class mail, a notice to the Trustee and each of
the Holders.  The notice will contain
all instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Asset Sale Offer.  The
Asset Sale Offer will be made to all Holders. 
The notice, which will govern the terms of the Asset Sale Offer, will
state:

 

(i)                                     that the Asset Sale Offer is being
made pursuant to this Section 3.09 and Section 4.10 hereof and the
length of time the Asset Sale Offer will remain open;

 

(ii)                                  the Offer Amount, the purchase price
and the Purchase Date;

 

(iii)                               that any Note not tendered or
accepted for payment will continue to accrue interest;

 

38

 

(iv)                              that, unless the Company defaults in
making such payment, any Note accepted for payment pursuant to the Asset Sale
Offer will cease to accrue interest after the Purchase Date;

 

(v)                                 that Holders electing to have a Note
purchased pursuant to an Asset Sale Offer may elect to have Notes purchased in
integral multiples of $1,000 only;

 

(vi)                              that Holders electing to have a Note
purchased pursuant to an Asset Sale Offer will be required to surrender the
Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Note 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 at least three days before the Purchase Date;

 

(vii)                           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 Offer Period, a
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Note the Holder delivered for purchase and a statement
that such Holder is withdrawing its election to have such Note purchased;

 

(viii)                        that, if the aggregate principal
amount of Notes and other pari passu Indebtedness surrendered by
Holders exceeds the Offer Amount, the Company will select the Notes and other pari passu
Indebtedness to be purchased on a pro rata basis based on the principal
amount of Notes and such other pari passu Indebtedness surrendered (with
such adjustments as may be deemed appropriate by the Company so that only Notes
in denominations of $1,000, or integral multiples thereof, will be purchased);
and

 

(ix)                                that Holders whose Notes were
purchased only in part will be issued new Notes equal in principal amount to
the unpurchased portion of the Notes surrendered (or transferred by book-entry
transfer).

 

On or before the Purchase Date, the Company
will, to the extent lawful, accept for payment, on a pro rata basis to the extent
necessary, the Offer Amount of Notes or portions thereof and other pari passu
Indebtedness tendered pursuant to the Asset Sale Offer, or if less than the
Offer Amount has been tendered, all Notes and other pari passu Indebtedness
tendered, and will deliver to the Trustee an Officers’ Certificate stating that
such Notes or portions thereof were accepted for payment by the Company in
accordance with the terms of this Section 3.09.  The Company, the Depositary or the Paying Agent, as the case may
be, will promptly (but in any case not later than five days after the Purchase
Date) mail or deliver to each tendering Holder an amount equal to the purchase
price of the Notes tendered by such Holder and accepted by the Company for
purchase, and the Company will promptly issue a new Note and the Trustee, upon
written request from the Company, will authenticate and mail or deliver such
new Note to such Holder, in a principal amount equal to any unpurchased portion
of the Note surrendered.  Any Note not
so accepted will be promptly mailed or delivered by the Company to the Holder
thereof.  The Company will publicly
announce the results of the Asset Sale Offer on the Purchase Date.

 

39

 

Other than as specifically provided in this
Section 3.09, any purchase pursuant to this Section 3.09 will be made
pursuant to the provisions of Sections 3.01 through 3.06 hereof.

 

ARTICLE 4.

COVENANTS.

 

Section 4.01                            Payment of Notes.

 

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

 

The Company will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal at the rate equal to 1.0% per annum in excess of the then applicable
interest rate on the Notes to the extent lawful; it will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest and Liquidated Damages (without regard to
any applicable grace period) at the same rate to the extent lawful.

 

Section 4.02                            Maintenance of Office or
Agency.

 

The Company will 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
will 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 fails to maintain any such required office or
agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee.

 

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 will in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, the City of New York, for such purposes.  The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

The Company hereby designates the Corporate
Trust Office of the Trustee as one such office or agency of the Company in
accordance with Section 2.03 hereof

 

40

 

Section 4.03                            Reports.

 

(a)                                  Whether or not required by the rules
and regulations of the SEC, so long as any Notes are outstanding, the Company
will furnish to the trustee for mailing to the Holders of Notes, within the
time periods specified in the SEC’s rules and regulations:

 

(i)                                     all quarterly and annual financial
information that would be required to be contained in a filing with the SEC 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” and, with respect to the annual information only, a report on the
annual financial statements by the Company’s certified independent accountants;
and

 

(ii)                                  all current reports that would be
required to be filed with the SEC on Form 8-K if the Company were required to
file such reports.

 

If the Company has designated any of its
Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual
financial information required by clause (i) hereof will include a reasonably
detailed presentation, either on the face of the financial statements or in the
footnotes thereto, and in the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” of the financial condition and
results of operations of the Company and its Restricted Subsidiaries separate
from the financial condition and results of operations of the Unrestricted
Subsidiaries of the Company.

 

(b)                                 Following the consummation of the
Exchange Offer contemplated by the Registration Rights Agreement, whether or
not required by the SEC, the Company will file a copy of all of the information
and reports referred to in Sections 4.03(a)(i) and (ii) hereof with the
SEC for public availability within the time periods specified in the SEC’s
rules and regulations (unless the SEC will not accept such a filing) and make
such information available to prospective investors upon request.  The Company will at all times comply with
TIA § 314(a).

 

(c)                                  The Company and the Guarantors will
furnish to the Holders and to prospective investors, upon the request of such
Holders, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act so long as the Notes are not freely transferable under
the Securities Act.

 

Section 4.04                            Compliance Certificate.

 

(a)                                  The
Company and each Guarantor (to the extent that such Guarantor is so required
under the TIA) will deliver to the Trustee, within 90 days after the end of
each fiscal year, an Officers’ Certificate stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Company
has kept, observed, performed and fulfilled each and every covenant contained
in this Indenture and is not in default in the performance or observance of any
of the terms, provisions and conditions of this Indenture (or, if a Default or
Event of Default has occurred, describing all such Defaults or Events of

 

41

 

Default of which he or she may have knowledge and what action the
Company is taking or proposes to take with respect thereto) and that to the
best of his or her knowledge no event has occurred and remains in existence by
reason of which payments on account of the principal of or interest, if any, on
the Notes is prohibited or if such event has occurred, a description of the
event and what action the Company is taking or proposes to take with respect
thereto.

 

(b)                                 So long as not contrary to the then
current recommendations of the American Institute of Certified Public
Accountants, the year-end financial statements delivered pursuant to
Section 4.03(a) hereof will be accompanied by a written statement of the
Company’s independent public accountants (who will be a firm of established
national reputation) that in making the examination necessary for certification
of such financial statements, nothing has come to their attention that would
lead them to believe that the Company has violated any provisions of
Article 4 or Article 5 hereof or, if any such violation has occurred,
specifying the nature and period of existence thereof, it being understood that
such accountants will not be liable directly or indirectly to any Person for
any failure to obtain knowledge of any such violation.

 

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

 

Section 4.05                            Taxes.

 

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

 

Section 4.06                            Stay,
Extension and Usury Laws.

 

Each of the Company and the Guarantors
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, 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 each of the Company and the Guarantors (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and covenants that it will not, by resort to any such law,
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 has been enacted.

 

Section 4.07                            Restricted Payments.

 

(a)                                  The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly:  (i) declare or pay any dividend or make any
other payment or distribution on account of the Company’s or any of its
Restricted Subsidiaries’ Equity Interests (including, without limitation, any
payment in connection with any merger or consolidation involving the Company or
any of its Restricted Subsidiaries), other than dividends

 

42

 

or distributions
payable in Equity interests (other than Disqualified Stock) of the Company or
to the Company or a Restricted Subsidiary of the Company; (ii) purchase, redeem
or otherwise acquire or retire for value (including without limitation, in
connection with any merger or consolidation involving the Company) any Equity
interests of the Company or any direct or indirect parent of the Company; (iii)
make any payment on or with respect to, or purchase, redeem, defease or
otherwise acquire or retire for value, any Indebtedness that is subordinated to
the Notes or the Subsidiary Guarantees (excluding any intercompany indebtedness
between the Company and any of its Restricted Subsidiaries), except a payment
of interest or principal at Stated Maturity thereof; or (iv) make any
Restricted Investment (all such payments and other actions set forth in clauses
(i) through (iv) hereof being collectively referred to as “Restricted Payments”);
unless, at the time of and after giving effect to such Restricted Payment:

 

(A)                              no Default or Event of Default has
occurred and is continuing or would occur as a consequence of such Restricted
Payment; and

 

(B)                                the Company would, at the time of
such Restricted Payment and after giving pro forma effect thereto as if such
Restricted Payment had been made at the beginning of the applicable
four-quarter period, have been permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in
Section 4.09(a) hereof; and

 

(C)                                such Restricted Payment, together
with the aggregate amount of all other Restricted Payments made by the Company
and its Restricted Subsidiaries since the Issue Date (excluding Restricted
Payments permitted by clauses (ii), (iii), (iv), (v), (vi), (vii) and (viii) of
Section 4.07(b) below), is less than the sum, without duplication of:

 

(I)                                   50% of the Consolidated Net Income
of the Company for the period (taken as one accounting period) from the
beginning of the first fiscal quarter commencing after the Issue Date to the
end of the Company’s most recently ended fiscal quarter for which internal
financial statements are available at the time of such Restricted Payment (or,
if such Consolidated Net Income for such period is a deficit, less 100% of such
deficit), plus

 

(II)                               100% of the fair market value of the
aggregate net proceeds received by the Company since the issue Date as a
contribution to its common equity capital or from the issue or sale of Equity
Interests of the Company (other than Disqualified Stock) or from the issue or
sale of convertible or exchangeable Disqualified Stock or convertible or
exchangeable debt securities of the Company that have been converted into or
exchanged for such Equity Interests (other than Equity Interests (or
Disqualified Stock or debt securities) sold to a Subsidiary of the Company), provided
that such aggregate net proceeds are limited to cash, Cash Equivalents or other
assets used or useful in a Permitted Business or the Capital Stock of a Person engaged
in a Permitted Business, plus

 

43

 

(III)                           to the extent that any Restricted
Investment that was made after the Issue Date is sold for cash or otherwise
liquidated or repaid, purchased or redeemed for cash, the lesser of (x) the
cash return of capital with respect to such Restricted Investment (less the
cost of disposition, if any) and (y) the initial amount of such Restricted
Investment, plus

 

(IV)                           the amount by which Indebtedness of
the Company or any of its Restricted Subsidiaries is reduced on the Company’s
consolidated balance sheet upon the conversion or exchange after the issue Date
of any such Indebtedness incurred after the Issue Date into or for Capital
Stock (other than Disqualified Stock); plus

 

(V)                               the extent that any Unrestricted
Subsidiary of the Company is redesignated as a Restricted Subsidiary after the
Issue Date, the lesser of (x) the fair market value of the Company’s Investment
in such Subsidiary as of the date of such redesignation and (y) the fair market
value of the Company’s Investment in such Subsidiary as of the date on which
such Subsidiary was originally designated as an Unrestricted Subsidiary.

 

(b)                                 The provisions of
Section 4.07(a) will not prohibit: 
(i) the payment of any dividend or the consummation of any irrevocable
redemption within 60 days after the date of declaration of the dividend or
giving of any such redemption notice, as the case may be, if at said date of
declaration or notice, such dividend or redemption payment would have complied
with the provisions of this Indenture; (ii) the making of any Restricted
Payment in exchange for, or out of the net cash proceeds of the substantially
concurrent sale (other than to a Subsidiary of the Company) of, Equity
interests of the Company (other than any Disqualified Stock) or from the
substantially concurrent cash contribution of common equity capital to the
Company; provided
that the amount of any such net cash proceeds that are utilized for any such
redemption, repurchase, retirement, defeasance or other acquisition will be
excluded from clause (C)(II) of Section 4.07(a) hereof; (iii) the
defeasance, redemption, repurchase or other acquisition of subordinated
indebtedness of the Company or any Guarantor in exchange for shares of Capital
Stock (other than Disqualified Stock) of the Company or any Guarantor or with
the net cash proceeds from an incurrence of Permitted Refinancing Indebtedness;
(iv) so long as no Default or Event of Default has occurred and is continuing,
the payment of any dividend by a Restricted Subsidiary of the Company to
holders of its Equity Interests on a pro rata basis; (v) so long as no Default
or Event of Default has occurred and is continuing, the repurchase, redemption
or other acquisition or retirement for value of any Equity Interests of the
Company or any Restricted Subsidiary of the Company held by any current or
former director, officer, employee or consultant of the Company (or any of its
Restricted Subsidiaries) (a) upon the death, disability or termination of
employment of such director, officer, employee or consultant or to the extent
required pursuant to employee benefit plans, employment agreements or
consulting agreements or (b) pursuant to any equity subscription agreement,
stock option agreement, shareholders’ agreement or similar agreement; provided
that the aggregate price paid for all such repurchased, redeemed, acquired or
retired Equity Interests may not in any calendar year exceed the lesser of (A)
the sum of (x) $3,500,000 and (y) the aggregate amount of Restricted Payments
permitted (but not made) pursuant to this clause (v) in prior calendar years
following the Issue Date and

 

44

 

(B) $8,000,000; (vi)
the repurchase of Equity Interests deemed to occur upon the exercise of stock
options to the extent such Equity Interests represent a portion of the exercise
price of those stock options; (vii) the declaration and payment of dividends to
holders of any class or series of Disqualified Stock of the Company or any
Restricted Subsidiary of the Company issued on or after the Issue Date in
accordance with the Fixed Charge Coverage Ratio test described in
Section 4.09(a) hereof to the extent such dividends are included in the
definition of Fixed Charges; provided that no Default or Event of
Default shall have occurred and be continuing immediately after making such
Restricted Payment; (viii) so long as no Default or Event of Default has
occurred and is continuing, the purchase by the Company of fractional shares
arising out of stock dividends, splits or combinations or business
combinations; (ix) the payment of dividends on the common stock of the Company
following the first public offering of such common stock after the issue Date
(excluding public offerings with respect to common stock of the Company
registered on Form S-8) of up to 6% per annum of the net proceeds received by
us in such public offering; provided however, that (a) the aggregate
amount of all such dividends shall not exceed the aggregate amount of net
proceeds received by the Company from such public offering and (b) such
dividends will be included in the calculation of the amount of Restricted
Payments; (x) any payments that are made to consummate the transactions
pursuant to or contemplated by the Merger Agreement and any other agreement
related thereto as in effect on the Issue Date; and (xi) so long as no Default
or Event of Default has occurred and is continuing, other Restricted Payments
in an aggregate amount since the Issue Date not to exceed $25,000,000.

 

The amount of all Restricted Payments (other
than cash) will be the fair market value on the date of the Restricted Payment
of the asset(s) or securities proposed to be transferred or issued by the
Company or such Restricted Subsidiary, as the case may be, pursuant to the
Restricted Payment.  The fair market
value of any assets or securities that are required to be valued by this
Section 4.07 will be determined by the Board of Directors of the Company,
whose good faith determination will be conclusive and will be delivered to the
Trustee.  Not later than the date of
making any Restricted Payment, the Company will deliver to the Trustee an
Officers’ Certificate stating that such Restricted Payment is permitted and
setting forth the basis upon which the calculations required by this
Section 4.07 were computed, together with a copy of any fairness opinion
or appraisal required by this Indenture.

 

Section 4.08                            Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries.

 

(a)                                  The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create or
permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to:

 

(i)                                     pay dividends or make any other
distributions on its Capital Stock to the Company or any of its Restricted
Subsidiaries, or with respect to any other interest or participation in, or
measured by, its profits, or pay any indebtedness owed to the Company or any of
its Restricted Subsidiaries; provided that the priority of any
preferred stock in receiving dividends or liquidating distributions prior to
dividends or liquidating distributions being paid on common stock shall not be
deemed to be a restriction on the ability to make distributions on Capital
Stock;

 

45

 

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

 

(iii)                               transfer any of its properties or
assets to the Company or any of its Restricted Subsidiaries.

 

(b)
          The restrictions in
Section 4.08(a) hereof will not apply to encumbrances or restrictions
existing under or by reason of:

 

(i)                                     agreements governing Existing
Indebtedness and Credit Facilities as in effect on the Issue Date and any
amendments, modifications, restatements, renewals, increases, supplements,
refundings, restructurings, replacements or refinancings of those agreements; provided
that such amendments, modifications, restatements, renewals, increases, supplements,
refundings, restructurings, replacements or refinancings are no more
restrictive, taken as a whole, with respect to such dividend and other payment
restrictions than those contained in those agreements on the Issue Date;

 

(ii)                                  this Indenture, the Notes and the
Subsidiary Guarantees;

 

(iii)                               Hedging Obligations entered into
from time to time;

 

(iv)                              applicable law, rule, regulation or
order,

 

(v)                                 any instrument governing
Indebtedness or Capital Stock of a Person acquired by the Company or any of its
Restricted Subsidiaries as in effect at the time of such acquisition or assumed
by the Company or any of its Restricted Subsidiaries in connection with an
acquisition of all or substantially all of the assets of a Person (except to
the extent such Indebtedness was incurred or such Capital Stock was issued or
assumed in connection with or in contemplation of such acquisition), which
encumbrance or restriction is not applicable to any Person, or the properties
or assets of any Person, other than the Person, or the property or assets of
the Person, so acquired, provided that, in the case of
Indebtedness, such Indebtedness was permitted by the terms of this Indenture to
be incurred;

 

(vi)                              customary non-assignment provisions
in leases, licenses or similar contracts entered into in the ordinary course of
business and consistent with past practices;

 

(vii)                           purchase money obligations for
property acquired in the ordinary course of business and Capital Lease
Obligations permitted under this Indenture that impose restrictions of the
nature described in Section 4.08(a)(iii) hereof on the property purchased
or leased;

 

(viii)                        any agreement for the sale or other
disposition of a Restricted Subsidiary that restricts distributions by that
Restricted Subsidiary pending its sale or other disposition;

 

46

 

(ix)                                Permitted Refinancing Indebtedness, provided that
the restrictions contained in the agreements governing such Permitted
Refinancing Indebtedness, taken as a whole, are not materially more restrictive
determined by the Board of Directors of the Company than those contained in the
agreements governing the Indebtedness being refinanced;

 

(x)                                   Liens securing Indebtedness
otherwise permitted to be incurred under Section 4.12 hereof that limit
the right of the debtor to dispose of the assets subject to such Liens;

 

(xi)                                provisions with respect to the
disposition or distribution of assets or property in joint venture agreements,
asset sale agreements, sale-leaseback agreements, stock sale agreements and
other similar agreements entered into in the ordinary course of business;

 

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

 

(xiii)                          Indebtedness or other contractual
requirements of a Receivables Subsidiary in connection with a Qualified
Receivables Transaction, provided that such restrictions apply only to such Receivables
Subsidiary;

 

(xiv)                         any agreement governing Indebtedness
permitted to be incurred pursuant to Section 4.09 hereof; provided
(a) that the provisions relating to such Indebtedness, taken as a whole, are
not materially more restrictive as determined by the Board of Directors of the
Company than the provisions contained in the Credit Agreement or in this
Indenture and (b) such encumbrance or restriction will not affect the Company’s
ability to make principal or interest payments on the Notes, as determined in
good faith by the Board of Directors of the Company; and

 

(xv)                            any encumbrance or restriction with
respect to a Foreign Subsidiary pursuant to an agreement governing indebtedness
incurred by such Foreign Subsidiary that was permitted by the terms of this
Indenture to be incurred.

 

Section 4.09                            Incurrence of Indebtedness
and Issuance of Preferred Stock

 

(a)                                  The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create,
incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”)
any Indebtedness (including Acquired Debt), and the Company will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to
issue any shares of preferred stock; provided, however, that the Company and any Guarantor may incur Indebtedness
(including Acquired Debt), any Restricted Subsidiary of the Company may incur
Acquired Debt, the Company may issue Disqualified Stock or any Guarantor may
issue shares of preferred stock, in each case, if the Fixed Charge Coverage
Ratio for the Company’s most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on
which such additional Indebtedness is incurred or such Disqualified Stock or
preferred stock is issued would have been at least 2.0 to 1.0, determined on a pro forma
basis (including a

 

47

 

pro forma application
of the net proceeds therefrom), as if the additional Indebtedness had been
incurred, or the Disqualified Stock or preferred stock had been issued, as the
case may be, at the beginning of such four-quarter period.

 

(b)                                 The provisions of
Section 4.09(a) will not prohibit the incurrence of any of the following
items of Indebtedness (collectively, “Permitted Debt”):

 

(i)                                     the incurrence by the Company and/or
any Guarantor of additional Indebtedness and Letters of Credit under one or
more Credit Facilities in an aggregate principal amount, together with the
aggregate Securitization Financing Amount, at any one time outstanding under
this clause (i) (with letters of credit being deemed to have a principal amount
equal to the maximum potential liability of the Company and its Subsidiaries
thereunder), not to exceed $465,000,000 less the sum of all permanent principal
payments with respect to such Indebtedness pursuant to Section 4.10
hereof;

 

(ii)                                  the incurrence by the Company and
its Restricted Subsidiaries of Existing Indebtedness;

 

(iii)                               the incurrence by the Company and
the Guarantors of Indebtedness represented by the Notes and the related
Subsidiary Guarantees to be issued on the issue Date and the Exchange Notes and
the related Subsidiary Guarantees to be issued pursuant to the Registration
Rights Agreement;

 

(iv)                              the incurrence by the Company or any
of its Restricted Subsidiaries of Indebtedness represented by Capital Lease
Obligations, mortgage financings or purchase money obligations, in each case
incurred for the purpose of financing all or any part of the purchase price or cost
of design, construction, installation or improvement of property, plant or
equipment used in the business of the Company or such Restricted Subsidiary, in
an aggregate principal amount, including all Permitted Refinancing indebtedness
then outstanding incurred to refund, refinance or replace any other
Indebtedness incurred pursuant to this clause (iv), not to exceed the greater
of (A) $12,500,000 and (B) 2.0% of the Company’s Consolidated Tangible
Assets, at any time outstanding;

 

(v)                                 the incurrence by the Company or any
of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in
exchange for, or the net proceeds of which are used to refund, refinance or
replace, Indebtedness (other than intercompany Indebtedness) that was permitted
by this Indenture to be incurred under Section 4.09(a) hereof or clause
(ii), (iii) or (v) of this Section 4.09(b);

 

(vi)                              the incurrence by the Company or any
of its Restricted Subsidiaries of intercompany Indebtedness between or among
the Company and any of its Restricted Subsidiaries; provided, however, that (A) if the Company or any
Guarantor is the obligor on such Indebtedness and the obligee is not the
Company or any Guarantor, such Indebtedness must be expressly subordinated to
the prior payment in full in cash of all Obligations then due with respect to
the Notes, in the case of the Company, or the Subsidiary Guarantee, in the case
of a Guarantor, and (B)(1) any subsequent issuance or

 

48

 

transfer
of Equity Interests that results in any such Indebtedness being held by a
Person other than the Company or one of its Restricted Subsidiaries and (2) any
sale or other transfer of any such Indebtedness to a Person that is not either
the Company or one of its Restricted Subsidiaries shall be deemed, in each
case, to constitute an incurrence of such Indebtedness by the Company or such
Restricted Subsidiary, as the case may be, that was not permitted by this
clause (vi);

 

(vii)                           the issuance by any of the Company’s
Restricted Subsidiaries to the Company or any of its Restricted Subsidiaries of
shares of preferred stock, provided that (A) any subsequent issuance
or transfer of Equity Interests that results in any such preferred stock being
held by a Person other than the Company or a Restricted Subsidiary of the
Company and (B) any sale or other transfer of any such preferred stock to a
Person that is not either the Company or a Restricted Subsidiary of the Company
will be deemed, in each case, to constitute an issuance of preferred stock by
the Company or such Restricted Subsidiary, as the case may be, that was not
permitted by this clause (vii);

 

(viii)                        the incurrence by the Company or any
of its Subsidiaries of Hedging Obligations;

 

(ix)                                the guarantee by the Company or any of
the Guarantors of Indebtedness of the Company or any Guarantor that was
permitted to be incurred by another provision of this Section 4.09;

 

(x)                                   the accrual of interest, the
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 Stock in the form of additional shares
of the same class of Disqualified Stock will not be deemed to be an incurrence
of Indebtedness or an issuance of Disqualified Stock for purposes of this
Section 4.09; provided, in each such case, that the
amount thereof is included in Fixed Charges of the Company as accrued;

 

(xi)                                the incurrence by the Company’s
Unrestricted Subsidiaries of Non-Recourse Debt, provided, however, that if any such Indebtedness
ceases to be Non-Recourse Debt of an Unrestricted Subsidiary, such event will
be deemed to constitute an incurrence of Indebtedness by a Restricted
Subsidiary of the Company that was not permitted by this clause (xi);

 

(xii)                             the incurrence by the Company or any
of its Restricted Subsidiaries of Indebtedness in respect of workers’
compensation claims, defined benefit plans, self-insurance obligations,
bankers’ acceptances, and performance and surety bonds in the ordinary course
of business;

 

(xiii)                          the incurrence by the Company or any
of its Restricted Subsidiaries of Indebtedness arising from the honoring by a
bank or other financial institution of a check, draft or similar instrument
inadvertently drawn against insufficient funds, so long as such Indebtedness is
covered within five business days;

 

49

 

(xiv)                         the incurrence by Foreign
Subsidiaries of Indebtedness in an aggregate principal amount (or accreted
value, as applicable) at any time outstanding, including all Permitted
Refinancing Indebtedness incurred to refund, defease, renew, extend, refinance
or replace any indebtedness incurred pursuant to this clause (xiv), not to
exceed $20,000,000 (or the U.S. dollar equivalent);

 

(xv)                            the incurrence by a Receivables
Subsidiary of Indebtedness in a Qualified Receivables Transaction that is
without recourse to the Company or to any other Subsidiary of the Company or
their assets (other than such Receivables Subsidiary and its assets and, as to
the Company or any Restricted Subsidiary of the Company, other than pursuant to
representations, warranties, covenants and indemnities customary for such
transactions) and is not guaranteed by the Company or any such Restricted
Subsidiary of the Company; and

 

(xvi)                         the incurrence by the Company or any
of its Restricted Subsidiaries of additional Indebtedness in an aggregate
principal amount (or accreted value, as applicable) at any time outstanding,
including all Permitted Refinancing Indebtedness incurred to refund, refinance
or replace any Indebtedness incurred pursuant to this clause (xvi), not to
exceed $30,000,000.

 

For purposes of determining compliance with
this Section 4.09, in the event that an item of Indebtedness (including
Acquired Debt) meets the criteria of more than one of the categories of
Permitted Debt described in clauses (i) through (xvi) of Section 4.09(b)
hereof or is entitled to be incurred pursuant to Section 4.09(a) hereof,
the Company will be permitted to divide and classify (or later classify or
reclassify) in whole or in part, in its sole discretion, such item of
Indebtedness in any manner that complies with this Section 4.09.

 

Section 4.10                            Asset Sales.

 

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

 

(i)                                     the Company or its Restricted
Subsidiary, as the case may be, receives consideration at the time of such
Asset Sale at least equal to the fair market value of the assets or Equity
Interests issued or sold or otherwise disposed of; and

 

(ii)                                  at least 75% of the consideration
therefor received by the Company or such Restricted Subsidiary, as the case may
be, consists of cash or Cash Equivalents.

 

For purposes of this provision, each of the
following will be deemed to be cash:

 

(A)                              any liabilities, as shown on the
Company’s or such Restricted Subsidiary’s most recent balance sheet, of the
Company or any Restricted Subsidiary (other than contingent liabilities and
liabilities that are by their terms subordinated to the Notes or any Subsidiary
Guarantee) that are assumed by the transferee of any such assets pursuant to an
agreement that releases the Company or such Restricted Subsidiary from further
liability;

 

50

 

(B)                                any securities, notes or other
obligations received by the Company or any such Restricted Subsidiary from such
transferee that are within 90 days, subject to ordinary settlement periods,
converted by the Company or such Restricted Subsidiary into cash, to the extent
of the cash received in that conversion; and

 

(C)                                any stock or assets of the kind
referred to in clause (ii) or (iv) of Section 4.10(b) hereof.

 

(b)                                 Within 360 days after the receipt of
any Net Proceeds from an Asset Sale, the Company (or the applicable Restricted
Subsidiary, as the case may be) may apply such Net Proceeds, at its option:

 

(i)                                     to repay secured Indebtedness of the
Company or any of its Restricted Subsidiaries and, if such secured Indebtedness
repaid is revolving credit Indebtedness, to correspondingly reduce commitments
with respect thereto (or effect a permanent reduction in the availability under
such revolving credit facility regardless of the fact that no prepayment is
required);

 

(ii)                                  to acquire (or enter into a binding
agreement to acquire; provided that such commitment will be
subject only to customary conditions (other than financing) and such
acquisition will be consummated within 90 days after the end of such 360-day
period) all or substantially all of the assets of, or a majority of the Voting
Stock of, another Permitted Business;

 

(iii)                               to make a capital expenditure; or

 

(iv)                              to acquire (or enter into a binding
agreement to acquire; provided that such commitment will be
subject only to customary conditions (other than financing) and such
acquisition will be consummated within 90 days after the end of such 360-day
period) other assets that are used or useful in a Permitted Business.

 

Pending the final application of any such Net
Proceeds, the Company may temporarily reduce revolving credit borrowings or
otherwise invest such Net Proceeds in any manner that is not prohibited by this
Indenture.

 

(c)                                  Any Net Proceeds from Asset Sales
that are not applied or invested as provided in Section 4.10(b) hereof
will constitute “Excess Proceeds”.  When
the aggregate amount of Excess Proceeds exceeds $10,000,000, the Company will
make an Asset Sale Offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in this Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets in accordance with
Section 3.09 hereof to purchase the maximum principal amount of Notes and
such other pari
passu Indebtedness that may be purchased out of the Excess
Proceeds.  The offer price in any Asset
Sale Offer will be equal to 100% of principal amount plus accrued and unpaid
interest and Liquidated Damages, if any, to the date of purchase, and will be
payable in cash.  If any Excess Proceeds
remain after consummation of an Asset Sale Offer, the Company may use such
Excess Proceeds for any purpose not otherwise prohibited by this Indenture.  If the aggregate principal amount of Notes

 

51

 

and other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee will select the Notes and other pari passu Indebtedness to
be purchased on a pro rata basis.  Upon
completion of each Asset Sale Offer, the amount of Excess Proceeds will be
reset at zero.

 

Section 4.11                            Transactions with
Affiliates.

 

(a)                                  The Company will not, and will not
permit any of its Restricted Subsidiaries to, make any payment to, or sell,
lease, transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee
with, or for the benefit of, any Affiliate (each, an “Affiliate Transaction”),
unless:

 

(i)                                     such Affiliate Transaction is on
terms that are no less favorable to the Company or the relevant Restricted
Subsidiary than those that would have been obtained in a comparable transaction
by the Company or such Restricted Subsidiary with an unrelated Person; and

 

(ii)                                  the Company delivers to the Trustee:

 

(A)                              with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $5,000,000, a resolution of the Board of Directors
of the Company set forth in an Officers’ Certificate certifying that such
Affiliate Transaction complies with this Section 4.11 (a) and that such
Affiliate Transaction has been approved by a majority of the disinterested
members of the Board of Directors of the Company; and

 

(B)                                with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $15,000,000, a written opinion from an independent
investment banking, accounting or appraisal firm of nationally recognized
standing to the effect that such Affiliate Transaction is fair, from a
financial standpoint, to the Company and its Restricted Subsidiaries or not
materially less favorable to the Company and its Restricted Subsidiaries than
could reasonably be expected to be obtained at the time in an arm’s-length
transaction with a Person who was not an Affiliate.

 

(b)                                 The foregoing provisions will not be
deemed to be Affiliate Transactions and, therefore, will not be subject to the
provisions of Section 4.11 (a) hereof.

 

(i)                                     any employment agreements or
arrangements, employee benefit plans or arrangements, officer and director
indemnification agreements or arrangements or other similar agreements or
arrangements entered into by the Company or any of its Restricted Subsidiaries
in the ordinary course of business;

 

(ii)                                  transactions between or among the
Company and/or its Restricted Subsidiaries;

 

52

 

(iii)                               transactions with a Person that is
an Affiliate of the Company solely because the Company owns an Equity Interest
in, or controls, such Person;

 

(iv)                              payment of reasonable directors’
fees and indemnity provided on behalf of officers, directors or employees of
the Company or any of its Restricted Subsidiaries;

 

(v)                                 any issuance or sale of Equity
Interests (other than Disqualified Stock) to, or receipt of capital
contributions from, Affiliates of the Company;

 

(vi)                              Restricted Payments and Permitted
Investments that are permitted by Section 4.07 hereof;

 

(vii)                           transactions between the Company and
any Person, a director of which is also a director of the Company; provided,
however, that such
director abstains from voting as a director of the Company on any matter involving
such other Person;

 

(viii)                        any amounts payable pursuant to the
Management Agreement as in effect on the Issue Date or pursuant to any
amendment thereto or restatement or replacement thereof to the extent that such
amendment, restatement or replacement does not provide for any amounts in
excess of those set forth in the Management Agreement as in effect on the Issue
Date;

 

(ix)                                consummation of the Acquisition,
including but not limited to execution and consummation of the Merger Agreement
and related documentation and the payment of all fees, expenses, consideration
and other amounts paid in connection therewith;

 

(x)                                   the issuance of securities or other
payments, awards or grants in cash, securities or otherwise pursuant to, or
funding of, employment arrangements, stock options and stock ownership plans or
similar employee benefit plans approved by the Board of Directors of the
Company in good faith and loans to employees of the Company and its
Subsidiaries that are approved by the Board of Directors of the Company in good
faith;

 

(xi)                                transactions between or among the
Company and/or its Subsidiaries or transactions between a Receivables
Subsidiary and any Person in which the Receivables Subsidiary has an
Investment, in each case as required to effect a Qualified Receivables
Transaction; and

 

(xii)                             transactions with customers,
clients, suppliers or purchasers or sellers of goods or services, in each case
on ordinary business terms consistent with past practices and otherwise in
compliance with the terms of this Indenture, which are fair to the Company or
its Restricted Subsidiaries, in the reasonable determination of the Board of
Directors or senior management of the Company, or are on terms at least as
favorable as could reasonably have been obtained at such time from a Person
that is not an Affiliate of the Company or any of its Restricted Subsidiaries.

 

53

 

Section 4.12                            Liens.

 

The Company will not and will not permit any
of its Subsidiaries to create, incur, assume or otherwise cause or suffer to
exist or become effective any Lien of any kind (other than Permitted Liens)
securing Indebtedness, Attributable Debt or trade payables upon any of their
property or assets, now owned or hereafter acquired, unless all payments due
under this Indenture and the Notes are secured on an equal and ratable basis
(or on a senior basis to, in the case of Obligations subordinated in right or
payment to the Notes) with the Obligations so secured until such time as such
Obligations are no longer secured by a Lien.

 

Section 4.13                            Business Activities.

 

The Company will not, and will not permit any
of its Restricted Subsidiaries to, engage in any business other than Permitted
Businesses, except to such extent as would not be material to the Company and
its Restricted Subsidiaries taken as a whole.

 

Section 4.14                            Corporate Existence.

 

Subject to Article 5 hereof, the Company
will do or cause to be done all things necessary to preserve and keep in full
force and effect (i) its corporate existence, and the corporate, partnership or
other existence of each of its Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the
Company or any such Subsidiary and (ii) the rights (charter and statutory),
licenses and franchises of the Company and its Subsidiaries; provided,
however, that the
Company will not be required to preserve any such right, license or franchise,
or the corporate, partnership or other existence of any of its Subsidiaries, if
the Board of Directors determines that the preservation thereof is no longer
desirable in the conduct of the business of the Company and its Subsidiaries,
taken as a whole, and that the loss thereof is not adverse in any material
respect to the Holders of the Notes.

 

Section 4.15                            Offer to Repurchase upon
Change of Control.

 

(a)                                  Upon the occurrence of a Change of
Control, each Holder of Notes 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 an offer price in cash equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest and
Liquidated Damages thereon, if any, to the date of purchase (the “Change of
Control Payment”).  Within 30
days following any Change of Control, the Company will mail a notice to each
Holder describing the transaction or transactions that constitute the Change of
Control and offering to repurchase Notes on the date specified in such notice,
which date will be no earlier than 30 days and no later than 60 days from the
date such notice is mailed (the “Change of Control Payment Date”).  Such notice, which will govern the terms of
the Change of Control Offer, will state: 
(i) that the Change of Control Offer is being made pursuant to this
Section 4.15 and that all Notes tendered will be accepted for payment;
(ii) the purchase price and the purchase date; (iii) that any Note not
tendered will continue to accrue interest; (iv) that, unless the Company
defaults in the payment of the Change of Control Payment, all Notes accepted
for payment pursuant to the Change of Control Offer will cease to

 

54

 

accrue interest after the Change of Control Payment Date; (v) that
Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes, with the form entitled “Option
of Holder to Elect Purchase” on the reverse of the Notes completed, to the
Paying Agent at the address specified in the notice prior to the close of
business on the third Business Day preceding the Change of Control Payment
Date; (vi) that Holders will be entitled to withdraw their election if the
Paying Agent receives, not later than the close of business on the second
Business Day preceding the Change of Control Payment Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of Notes delivered for purchase and a statement that such
Holder is withdrawing his election to have the Notes purchased; and (vii) that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an
integral multiple thereof.  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 as a
result of a Change of Control.  To the
extent that the provisions of any securities laws or regulations conflict with
the provisions of Section 3.09 or 4.15 hereof, the Company will comply
with the applicable securities laws and regulations and will not be deemed to
have breached its obligations under Section 3.09 hereof or this
Section 4.15 by virtue of such conflict.

 

(b)                                 On the Change of Control Payment
Date, the Company will, 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 Change of Control Payment in respect of all Notes or
portions thereof so tendered; and

 

(iii)                               deliver or cause to be delivered to
the Trustee the Notes properly accepted together with an Officers’ Certificate
stating the aggregate principal amount of Notes or portions thereof being
purchased by the Company.

 

The Paying Agent will promptly mail to each
Holder of Notes properly tendered the Change of Control Payment for such Notes,
and the Trustee will promptly authenticate and mail (or cause to be transferred
by book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided that each such new
Note will be in a principal amount of $1,000 or an integral multiple
thereof.  The Company will publicly announce
the results of the Change of Control Offer on or as soon as practicable after
the Change of Control Payment Date.

 

(c)                                  Notwithstanding anything to the
contrary in this Section 4.15, the Company will not be required to make a
Change of Control Offer upon a Change of Control if (1) 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 Section 3.09 hereof and this
Section 4.15 and purchases all Notes properly tendered and not withdrawn
under the Change of Control Offer or

 

55

 

(2) a notice of
redemption is outstanding pursuant to Section 3.07 hereof, unless and
until there is a default in payment of the applicable redemption price.

 

(d)                                 A Change of Control Offer may be
made in advance of a Change of Control, and conditioned upon such Change of
Control, if a definitive agreement is in place for the Change of Control at the
time of making of the Change of Control Offer. 
Notes repurchased by the Company pursuant to a Change of Control Offer
will have the status of notes issued but not outstanding or will be retired and
canceled, at the option of the Company. 
Notes purchased by a third party pursuant to the preceding paragraph
will have the status of notes issued and outstanding.

 

(e)                                  The provisions described above that
require the Company to make a Change of Control Offer following a Change of
Control shall be applicable whether or not any other provisions of this
Indenture are applicable.

 

Section 4.16                            Payments for Consent.

 

The Company will not, and will not permit any
of its 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 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 4.17                            Additional Subsidiary
Guarantees.

 

If the Company or any of its Restricted
Subsidiaries acquires, creates or permits to exist another Domestic Subsidiary
after the Issue Date that has a book value in excess of $1,000,000, then that
newly acquired or created or existing Domestic Subsidiary will become a
Guarantor and execute a supplemental indenture substantially in the form of
Exhibit B hereto (and the Form of Notation on Senior Note, attached hereto as
Exhibit C) and deliver an opinion of counsel satisfactory to the Trustee within
10 Business Days of the date on which it was acquired, created or was otherwise
required to become a Guarantor; provided, however, that this Section 4.17 will not apply to any Receivables
Subsidiary or any Subsidiary that has properly been designated as an
Unrestricted Subsidiary in accordance with this Indenture for so long as they
continue to constitute a Receivables Subsidiary or an Unrestricted Subsidiary,
as the case may be.

 

Section 4.18                            Designation of Restricted
and Unrestricted Subsidiaries.

 

The Board of Directors of the Company may
designate any Restricted Subsidiary to be an Unrestricted Subsidiary if that
designation would not cause a Default. 
If a Restricted Subsidiary is designated as an Unrestricted Subsidiary,
the aggregate fair market value of all outstanding Investments owned by the
Company and its Restricted Subsidiaries in the Subsidiary properly designated
will be deemed to be an Investment made as of the time of the designation and
will reduce the amount available for Restricted Payments under
Section 4.07 hereof or under one or more clauses of the definition of
Permitted Investments, as determined by the Company.  That designation will only be permitted if the Investment would
be permitted at that time and if

 

56

 

the Restricted Subsidiary
otherwise meets the definition of an Unrestricted Subsidiary.  The Board of Directors of the Company may
redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if the
redesignation would not cause a Default.

 

Section 4.19                            Sale and Leaseback
Transactions

 

The Company will not, and will not permit any
of its Restricted Subsidiaries to, enter into any sale and leaseback
transaction; provided that
the Company or any Guarantor may enter into a sale and leaseback transaction
if:

 

(i)                                     the Company or that Guarantor, as
applicable, could have incurred Indebtedness in an amount equal to the
Attributable Debt relating to such sale and leaseback transaction under
Section 4.09 hereof,

 

(ii)                                  the gross cash proceeds of that sale
and leaseback transaction are at least equal to the fair market value, if the
fair market value is greater than $5,000,000, as determined in good faith by
the Board of Directors of the Company and set forth in an Officers’ Certificate
delivered to the Trustee, of the property that is the subject of that sale and
leaseback transaction; and

 

(iii)                               the transfer of assets in that sale
and leaseback transaction is permitted by, and the Company applies the proceeds
of such transaction in a manner not in violation of Section 4.10 hereof.

 

ARTICLE 5.

SUCCESSORS

 

Section 5.01                            Merger,
Consolidation or Sale of Assets.

 

The Company shall not, directly or
indirectly, (a) consolidate or merge with or into another Person (whether or
not the Company is the surviving corporation) or (b) sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or assets
of the Company and its Restricted Subsidiaries taken as a whole, in one or more
related transactions, to another Person, unless:

 

(i)                                     either (A) the Company is the
surviving corporation or (B) the Person formed by or surviving any such
consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, conveyance or other disposition has been made is a
corporation organized or existing under the laws of the United States, any
state of the United States or the District of Columbia;

 

(ii)                                  the Person formed by or surviving
any such consolidation or merger (if other than the Company) or the Person to
which such sale, assignment, transfer, conveyance or other disposition has been
made assumes all the obligations of the Company under the Notes, this Indenture
and the Registration Rights Agreement pursuant to agreements reasonably
satisfactory to the Trustee;

 

57

 

(iii)                               immediately after such transaction,
no Default or Event of Default exists; and

 

(iv)                              the Company or the Person formed by
or surviving any such consolidation or merger (if other than the Company), or
to which such sale, assignment, transfer, conveyance or other disposition has
been made will, on the date of such transaction after giving pro forma effect
thereto and any related financing transactions as if the same had occurred at
the beginning of the applicable four-quarter period, be permitted to incur at
least $1.00 of additional Indebtedness under the Fixed Charge Coverage Ratio
test in Section 4.09(a) hereof.

 

The Company shall not, directly or
indirectly, lease all or substantially all of its properties or assets, in one
or more related transactions, to any other Person.

 

Notwithstanding the foregoing:

 

(A)                              the Company may merge with an
Affiliate incorporated solely for the purpose of reincorporating the Company in
another jurisdiction; and

 

(B)                                any Restricted Subsidiary of the
Company may consolidate with, merge into or transfer all or part of its
properties and assets to the Company or to a Subsidiary that is a Guarantor.

 

Section 5.02                            Successor Corporation
Substituted.

 

Upon any consolidation or merger, or any
sale, assignment, transfer, lease, conveyance or other disposition of all or
substantially all of the assets of the Company in accordance with
Section 5.01 hereof, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such
sale, assignment, transfer, lease, conveyance or other disposition is made will
succeed to, be substituted for (so that from and after the date of such
consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the “Company” will refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; provided, however, that the predecessor Company will
not be relieved from the obligation to pay the principal of and interest on the
Notes except in the case of a sale of all of the Company’s assets in a
transaction that meets the requirements of Section 5.01 hereof.

 

ARTICLE 6.

DEFAULTS AND REMEDIES

 

Section 6.01                            Events of Default.

 

An “Event of Default” occurs if:

 

(i)                                     the Company defaults in the payment
when due of interest on, or Liquidated Damages, if any, with respect to, the
Notes and such default continues for a period of 30 days;

 

58

 

(ii)                                  the Company defaults in the payment
when due of the principal of or premium, if any, on the Notes;

 

(iii)                               the Company or any of its Restricted
Subsidiaries fails to comply with any of the provisions of Section 4.10,
4.15 or 5.01 hereof;

 

(iv)                              the Company or any of its Restricted
Subsidiaries for 30 days after notice fails to comply with any of the
provisions of Section 4.07 or 4.09 hereof,

 

(v)                                 the Company or any of its Restricted
Subsidiaries fails to observe or perform any other covenant or other agreement
in this Indenture or the Notes for 60 days after notice to the Company by the
Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding;

 

(vi)                              a default occurs under any mortgage,
indenture or instrument under which there may be issued or by which there may
be secured or evidenced any Indebtedness for money borrowed by the Company or
any of its Restricted Subsidiaries (or the payment of which is guaranteed by
the Company or any of its Restricted Subsidiaries), whether such Indebtedness
or guarantee now exists, or is created after the Issue Date, which default:

 

(A)                              is caused by a failure to pay
principal of such Indebtedness prior to the expiration of the grace period
provided in such Indebtedness on the date of such default (a “Payment
Default”) or

 

(B)                                results in the acceleration of such
Indebtedness prior to its Stated Maturity,

 

and the amount of such Payment Default or the
amount of the Indebtedness being so accelerated, in either case aggregates $25,000,000
or more;

 

(vii)                           the Company or any of its Restricted
Subsidiaries is subject to final judgments aggregating in excess of
$25,000,000, which judgments are not paid, discharged or stayed for a period of
60 days;

 

(viii)                        except as permitted by this Indenture,
any Subsidiary Guarantee is held in any judicial proceeding to be unenforceable
or invalid or ceases for any reason to be in full force and effect;

 

(ix)                                the Company or any of its Restricted
Subsidiaries or any group of Restricted Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary pursuant to or within the meaning of
Bankruptcy Law:

 

(A)                              commences a voluntary case,

 

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

 

59

 

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

 

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

 

(E)                                 generally is not paying its debts as
they become due; or

 

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

 

(A)                              is for relief against the Company or
any of its Significant Subsidiaries or any group of Restricted Subsidiaries
that, taken as a whole, would constitute a Significant Subsidiary in an
involuntary case;

 

(B)                                appoints a custodian of the Company
or any of its Significant Subsidiaries or any group of Restricted Subsidiaries
that, taken as a whole, would constitute a Significant Subsidiary or for all or
substantially all of the property of the Company or any of its Significant
Subsidiaries or any group of Restricted Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary; or

 

(C)                                orders the liquidation of the
Company or any of its Significant Subsidiaries or any group of Restricted
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary;

 

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

 

Section 6.02                            Acceleration.

 

In the case of an Event of Default specified
in clause (ix) or (x) of Section 6.01 hereof, with respect to the Company
or any of its Restricted Subsidiaries that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary, all outstanding Notes will become due and payable
immediately without further action or notice. 
If any other Event of Default occurs and is continuing, the Trustee or
the Holders of at least 25% in principal amount of the then outstanding Notes
may declare all the Notes to be due and payable immediately.

 

However, a Default under clause (iv) or (v)
above will not constitute an Event of Default until the trustee or the Holders
of 25% in aggregate principal amount of the outstanding notes notify the
Company of the Default and the Company does not cure such Default within the
time specified after receipt of such notice.

 

In the case of any Event of Default occurring
by reason of any willful action or inaction taken or not taken by or on behalf
of the Company with the intention of avoiding payment of the premium that the
Company would have had to pay if the Company then had elected to redeem the
notes pursuant to Section 3.07 hereof, an equivalent premium will also
become and be immediately due and payable to the extent permitted by law upon
the acceleration of the Notes.  If an
Event of Default occurs prior to July 15, 2007 by reason of any willful
action (or inaction) taken (or not taken) by or on behalf of the Company with
the

 

60

 

intention of avoiding the prohibition on redemption of the Notes prior
to that date, then the premium specified in this Indenture with respect to the
first year that the Notes may be redeemed at the Company’s option will also
become immediately due and payable to the extent permitted by law upon the
acceleration of the Notes.

 

Section 6.03                            Other Remedies.

 

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

 

The Trustee may maintain a proceeding even if
it does not possess any of the Notes or does not produce any of them in the
proceeding.  A delay or omission by the
Trustee or any Holder of a Note in exercising any right or remedy accruing upon
an Event of Default will 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 6.04                            Waiver of Past Defaults.

 

Holders of not less than a majority in
aggregate principal amount of the then outstanding Notes by notice to the
Trustee may on behalf of the Holders of all of the Notes waive an existing
Default or Event of Default and its consequences hereunder, except a continuing
Default or Event of Default in the payment of the principal, premium, interest
or Liquidated Damages, if any, on the Notes, including in connection with an
offer to purchase; provided that the Holders of a majority in
aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that
resulted from such acceleration, if the rescission would not conflict with any
judgment or decree and if all existing Events of Default have been cured or
waived.  Upon any such waiver, such
Default will cease to exist, and any Event of Default arising therefrom will be
deemed to have been cured for every purpose of this Indenture; but no such
waiver will extend to any subsequent or other Default or impair any right
consequent thereon.

 

In the event an Event of Default described
under (vi)(a) of Section 6.01 hereof has occurred and is continuing, such
Event of Default shall be automatically annulled if the Payment Default
triggering such Event of Default under (vi) of Section 6.01 (a) hereof
will be remedied or cured by the Company or a Restricted Subsidiary of the Company
or waived by the holders of the relevant Indebtedness within 60 days of its
occurrence and all other Events of Default, if any, under this Indenture have
been cured and waived.

 

Section 6.05                            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 law or this Indenture or that the Trustee determines may be unduly
prejudicial to the rights of other Holders of Notes or that may involve the
Trustee in personal liability.

 

61

 

Section 6.06                            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 of a Note or Holders of Notes offer and,
if requested, provide to the Trustee 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 6.07                            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,
premium, interest and Liquidated Damages, if any, and interest on the Note, on
or after the respective due dates expressed in the Note (including in
connection with an offer to purchase), or to bring suit for the enforcement of
any such payment on or after such respective dates, will not be impaired or
affected without the consent of such Holder.

 

Section 6.08                            Collection Suit by Trustee.

 

If an Event of Default specified in
Section 6.01(i) or (ii) 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, interest and
Liquidated Damages, if any, remaining unpaid on the Notes and interest on
overdue principal and, to the extent lawful, interest and such further amount
as will be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

 

Section 6.09                            Trustee May File Proofs of
Claim.

 

The Trustee 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

 

62

 

any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents 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 will 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 consents 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 7.07
hereof.  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 7.07
hereof out of the estate in any such proceeding, is denied for any reason,
payment of the same will be secured by a Lien on, and will 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 will 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.

 

If the Trustee collects any money pursuant to
this Article 6, it will pay out the money in the following order:

 

First: 
to the Trustee, its agents and attorneys for amounts due under
Section 7.07 hereof, 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, premium, interest and Liquidated Damages, if any, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Notes for principal, premium, interest and Liquidated Damages, if any,
respectively; and

 

Third: 
to the Company or to such party as a court of competent jurisdiction
directs.

 

The Trustee may fix a 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 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 6.11 does not apply to a

 

63

 

suit by the Trustee, a suit by
a Holder of a Note pursuant to Section 6.07 hereof or a suit by Holders of
more than 10% in principal amount of the then outstanding Notes.

 

ARTICLE 7.

TRUSTEE

 

Section 7.01                            Duties of Trustee.

 

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

 

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

 

(i)                                     the duties of the Trustee will be
determined solely by the express provisions of this Indenture and the Trustee
need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations will be read
into this Indenture against the Trustee; and

 

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

 

(c)                                  The Trustee may not be relieved from
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 Section 7.01(b) hereof;

 

(ii)                                  the Trustee will 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; and

 

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

 

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

 

(e)                                  No provision of this Indenture will
require the Trustee to expend or risk its own funds or incur any
liability.  The Trustee will be under no
obligation to exercise any of its rights and powers under this Indenture at the
request of any Holders, unless such Holder has offered to the Trustee security
and indemnity satisfactory to it against any loss, liability or expense.

 

64

 

(f)                                    The Trustee will 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 7.02                            Rights of Trustee.

 

(a)                                  The Trustee may conclusively rely
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 such 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 will 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 advice of such counsel or
any Opinion of Counsel will 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 may act through its
attorneys and agents and will not be responsible for the misconduct or
negligence of any agent appointed with due care.

 

(d)                                 The Trustee will 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 in this Indenture, any demand, request, direction or notice from the
Company will be sufficient if signed by an Officer of the Company.

 

(f)                                    The Trustee will be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders unless such Holders
will have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities that might be incurred by it in compliance with
such request or direction.

 

(g)                                 The Trustee will not be deemed to
have notice of any Default or Event of Default unless a Responsible Officer of
the Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a Default or Event of Default is received by the Trustee
at the Corporate Trust Office of the Trustee and such notice references the
Notes and this Indenture.

 

(h)                                 In the event the Trustee receives
inconsistent or conflicting requests and indemnity from two or more groups of
Holders of Notes, each representing less than a majority in aggregate principal
amount of the Notes outstanding, pursuant to the provisions of this Indenture,
the Trustee, in its sole discretion, may determine what action, if any, will be
taken.

 

(i)                                     The rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
its right to be indemnified, are extended to, and will be enforceable by, the
Trustee in connection with the performance of its duties under this Indenture,
and to each agent, custodian and other Person employed to act hereunder.

 

65

 

Section 7.03                            Individual Rights of
Trustee.

 

The Trustee or any Affiliate of 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, it must eliminate such conflict within 90
days, apply to the SEC for permission to continue as trustee or resign.  Any Agent may do the same with like rights
and duties.  The Trustee is also subject
to Sections 7.10 and 7.11 hereof.

 

Section 7.04                            Trustee’s Disclaimers.

 

The Trustee will not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Notes, it will 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, it will not be responsible for the use
or application of any money received by any Paying Agent other than the Trustee
and it will 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 7.05                            Notice of Defaults.

 

If a Default or Event of Default occurs and
is continuing and if it is known to the Trustee, the Trustee will 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 or Event of Default in payment of principal of, premium, interest or
Liquidated Damages, if any, on any Note, the Trustee may 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.

 

Section 7.06                            Reports by Trustee to
Holders of the Notes.

 

(a)                                  Within 60 days after each May 15
beginning with the May 15 following the Issue Date, and for so long as Notes
remain outstanding, the Trustee will 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 12
months preceding the reporting date, no report need be transmitted).  The Trustee also will comply with TIA
§ 313(b)(2).  The Trustee will also
transmit by mail all reports as required by TIA § 313(c).

 

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

 

Section 7.07                            Compensation and Indemnity.

 

(a)                                  The Company will pay to the Trustee
from time to time such compensation as the Company and the Trustee from time to
time have agreed in writing for its acceptance of this Indenture and services
hereunder.  The Trustee’s compensation
will not be

 

66

 

limited by any law on
compensation of a trustee of an express trust. 
The Company will reimburse the Trustee promptly upon request for all
reasonable disbursements, advances and expenses incurred or made by it in
addition to the compensation for its services. 
Such expenses will include the reasonable compensation, disbursements
and expenses of the Trustee’s agents and counsel.

 

(b)                                 The Company will indemnify the
Trustee or any predecessor Trustee against any and all losses, liabilities or
expenses, including taxes (except for taxes based upon the income of the
Trustee), incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, including the costs and
expenses of enforcing this Indenture against the Company and the Guarantors
(including this Section 7.07) and defending itself against any claim
(whether asserted by the Company, the Guarantors, 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 gross negligence or bad faith.  The Trustee will notify the Company promptly
of any claim for which it may seek indemnity. 
Failure by the Trustee to so notify the Company will not relieve the
Company or any of its Guarantors of its obligations hereunder.  The Company or such Guarantor will defend
the claim and the Trustee will cooperate in the defense.  The Trustee may have separate counsel and
the Company will pay the reasonable fees and expenses of such counsel.  The Company or any of the Guarantors need
not pay for any settlement made without their consent, which consent will not
be unreasonably withheld.

 

(c)                                  The obligations of the Company and
the Guarantors under this Section 7.07 will survive the satisfaction and
discharge of this Indenture and the resignation or removal of the Trustee.

 

(d)                                 To secure the Company’s payment
obligations in this Section 7.07, the Trustee will 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 and interest on particular Notes.  Such Lien will survive the satisfaction and
discharge of this Indenture.

 

(e)                                  When the Trustee incurs expenses or
renders services after an Event of Default specified in Section 6.01(ix)
or (x) hereof occurs, the expenses and the compensation for such services
(including the fees and expenses of its agents and counsel) are intended to
constitute expenses of administration under any Bankruptcy Law.

 

(f)                                    The Trustee will comply with the
provisions of TIA § 313(b)(2) to the extent applicable.

 

Section 7.08                            Replacement of Trustee.

 

(a)                                  A resignation or removal of the
Trustee and appointment of a successor Trustee will become effective only upon
the successor Trustee’s acceptance of appointment as provided in this
Section 7.08.

 

(b)                                 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 a majority in
principal

 

67

 

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:

 

(i)                                     the Trustee fails to comply with
Section 7.10 hereof;

 

(ii)                                  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;

 

(iii)                               a custodian or public officer takes
charge of the Trustee or its property; or

 

(iv)                              the Trustee becomes incapable of
acting.

 

(c)                                  If the Trustee resigns or is removed
or if a vacancy exists in the office of Trustee for any reason, the Company
will promptly appoint a successor Trustee. 
Within one year after 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.

 

(d)                                 If a successor Trustee does not take
office within 30 days after the retiring Trustee resigns or is removed, the
retiring Trustee (at the Company’s expense), the Company, or the Holders 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.

 

(e)                                  If the Trustee, after written
request by any Holder of a Note who has been a Holder for at least six months,
fails to comply with Section 7.10 hereof, such Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

(f)                                    A successor Trustee will deliver a
written acceptance of its appointment to the retiring Trustee and to the Company.  Thereupon, the resignation or removal of the
retiring Trustee will become effective, and the successor Trustee will have all
the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee will mail a notice of
its succession to Holders of the Notes. 
The retiring Trustee will promptly transfer all property held by it as
Trustee to the successor Trustee, provided that all sums owing to the
Trustee hereunder have been paid and subject to the Lien provided for in
Section 7.07 hereof. 
Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Company’s obligations under Section 7.07 hereof
will continue for the benefit of the retiring Trustee.

 

Section 7.09                            Successor Trustee by
Merger, etc.

 

If the Trustee consolidates, merges or
converts into, or transfers all or substantially all of its corporate trust
business to, another corporation, the successor corporation without any further
act will be the successor Trustee.

 

Section 7.10                            Eligibility;
Disqualification.

 

There will at all times be a Trustee
hereunder that is a corporation organized and doing business under the laws of
the United States of America or of any state thereof that is

 

68

 

authorized under such laws to
exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of
at least $50,000,000 as set forth in its most recent published annual report of
condition.

 

This Indenture will 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
will be subject to TIA § 311 (a) to the extent indicated therein.

 

ARTICLE 8.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01                            Option to Effect Legal
Defeasance or Covenant Defeasance.

 

The Company may, at the option of its Board
of Directors of the Company evidenced by a resolution set forth in an Officers’
Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof
be applied to all outstanding Notes upon compliance with the conditions set
forth below in this Article 8.

 

Section 8.02                            Legal Defeasance and
Discharge.

 

Upon the Company’s exercise under
Section 8.01 hereof of the option applicable to this Section 8.02,
the Company and each of the Guarantors will, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes
(including the Subsidiary Guarantees) 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 will be deemed to have paid and discharged
the entire Indebtedness represented by the outstanding Notes (including the
Subsidiary Guarantees), which will thereafter be deemed to be “outstanding”
only for the purposes of Section 8.05 hereof and the other
Sections of this Indenture referred to in clauses (i) and (ii) below, and
to have satisfied all its other obligations under such Notes, the Subsidiary
Guarantees and this Indenture (and the Trustee, on demand of and at the expense
of the Company, will execute proper instruments acknowledging the same), except
for the following provisions which will survive until otherwise terminated or
discharged hereunder:

 

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

 

(ii)                                  the Company’s obligations with
respect to such Notes under Sections 2.06, 2.07, 2.10 and 4.02 hereof;

 

69

 

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

 

(iv)                              this Section 8.02.

 

Subject to compliance with this
Article 8, the Company may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof.

 

Section 8.03                            Covenant Defeasance.

 

Upon the Company’s exercise under
Section 8.01 hereof of the option applicable to this Section 8.03,
the Company and each of the Guarantors will, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be released from its
obligations under Sections 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13,
4.15, 4.16, 4.18 and 4.19 and Article 5 hereof with respect to the
outstanding Notes on and after the date the conditions set forth below are
satisfied (hereinafter, “Covenant Defeasance”), and the Notes will
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 will continue to be deemed
“outstanding” for all other purposes hereunder (it being understood that such
Notes will not be deemed outstanding for accounting purposes).  For this purpose, Covenant Defeasance means
that, with respect to the outstanding Notes and Subsidiary Guarantees, the
Company and the Guarantors may omit to comply with and will 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
will not constitute a Default or an Event of Default under Section 6.01
hereof, but, except as specified above, the remainder of this Indenture and
such Notes and Subsidiary Guarantees will be unaffected thereby.  In addition, upon the Company’s exercise
under Section 8.01 hereof of the option applicable to this
Section 8.03 hereof, subject to the satisfaction of the conditions set
forth in Section 8.04 hereof, Sections 6.01 (iii) through 6.01 (vii)
hereof will not constitute Events of Default.

 

Section 8.04                            Conditions to Legal or
Covenant Defeasance.

 

In order to exercise either Legal Defeasance
or Covenant Defeasance under either Section 8.02 or 8.03 hereof

 

(i)                                     the Company must irrevocably deposit
with the Trustee, in trust, for the benefit of the Holders, cash in United
States dollars, non-callable Government Securities, or a combination thereof,
in such amounts as will be sufficient, in the opinion of a nationally
recognized investment bank or firm of independent public accountants, to pay the
principal of, premium, interest and Liquidated Damages, if any, on the
outstanding Notes on the Stated Maturity or on the applicable redemption date,
as the case may be, and the Company must specify whether the Notes are being
defeased to maturity or to a particular redemption date;

 

(ii)                                  in the case of an election under
Section 8.02 hereof, the Company will deliver to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee

 

70

 

confirming that (A)
the Company has received from, or there has been published by, the Internal
Revenue Service a ruling or (B) since the Issue Date, 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 will confirm that, the Holders of the
outstanding Notes 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;

 

(iii)                               in the case of an election under
Section 8.03 hereof, the Company has delivered to the Trustee an Opinion
of Counsel reasonably acceptable to the Trustee confirming that the Holders of
the outstanding Notes 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;

 

(iv)                              no Default or Event of Default has
occurred and is continuing on the date of such deposit (other than a Default or
Event of Default resulting from the borrowing of funds to be applied to such
deposit);

 

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

 

(vi)                              the Company must deliver to the
Trustee an Opinion of Counsel to the effect that, assuming, among other things,
no intervening bankruptcy of the Company between the date of deposit and the 91st
day following the deposit, and assuming that no Holder is an “insider” of the
Company under applicable bankruptcy law, after the 91st day
following the deposit, the trust funds will not be subject to the effect of any
applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally;

 

(vii)                           the Company must deliver 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; and

 

(viii)                        the Company must deliver to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for or relating to Legal Defeasance or
Covenant Defeasance have been complied with.

 

However, the Opinion of Counsel required by
clause (ii) hereof will not be required if all Notes not theretofore delivered
to the Trustee for cancellation have become due and payable, will become due
and payable on their maturity date within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the

 

71

 

giving of notice of redemption
by the Trustee in the Company’s name, and at the Company’s expense.

 

Section 8.05                            Deposited Money and
Government Securities to be held in Trust; Other Miscellaneous Provisions.

 

Subject to Section 8.06 hereof, all
money and non-callable Government Securities (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04
hereof in respect of the outstanding Notes will be held in trust and applied by
the Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Notes of all sums due and to become due thereon in respect
of principal, premium interest and Liquidated Damages, if any, but such money
need not be segregated from other funds except to the extent required by law.

 

The Company will pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the
cash or non-callable Government Securities deposited pursuant to
Section 8.04 hereof 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.

 

Notwithstanding anything in this
Article 8 to the contrary, the Trustee will deliver or pay to the Company
from time to time upon the request of the Company any money or noncallable
Government Securities held by it as provided in Section 8.04 hereof 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 8.04(i) hereof),
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 8.06                            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 of, premium and Liquidated Damages, if any, or interest on any Note
and remaining unclaimed for two years after such principal, premium and
Additional Amounts, if any, or interest has become due and payable will be paid
to the Company on its request or (if then held by the Company) will be
discharged from such trust; and the Holder of such Note will thereafter look
only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, will thereupon cease; provided, however, that the Trustee or such Paying
Agent, before being required to make any such repayment, may at the expense of
the Company cause to be published once, in The New York Times and The Wall
Street Journal (national edition), notice that such money remains unclaimed and
that, after a date specified therein, which will not be less than 30 days from
the date of such notification or publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

 

72

 

Section 8.07                            Reinstatement.

 

If the Trustee or Paying Agent is unable to
apply any United States dollars or noncallable Government Securities in
accordance with Section 8.02 or 8.03 hereof, 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 Company’s and
the Guarantors’ obligations under this Indenture, the Notes and the Subsidiary
Guarantees shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with
Section 8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company makes any
payment of principal of, premium and Liquidated Damages, if any, or interest on
any Note following the reinstatement of its obligations, the Company will 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 9.

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01                            Without Consent of Holders
of Notes.

 

Notwithstanding Section 9.02 hereof, the
Company, the Guarantors and the Trustee may amend or supplement this Indenture
or the Notes without the consent of any Holder of a Note:

 

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

 

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

 

(iii)                               to provide for the assumption of the
Company’s obligations to the Holders of the Notes in the case of a merger or
consolidation or sale of all or substantially all of the Company’s assets
pursuant to Article 5 hereof,

 

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

 

(v)                                 to comply with requirements of the
SEC in order to effect or maintain the qualification of this Indenture under
the TIA;

 

(vi)                              to comply with the rules of any
applicable securities depository;

 

(vii)                           to comply with the covenant
contained in Article 5 hereof;

 

(viii)                        to add Guarantees with respect to
the Notes or to secure the Notes;

 

73

 

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

 

(x)                                   to evidence and provide for the
acceptance and appointment under this Indenture of a successor Trustee pursuant
to the requirements thereof.

 

The consent of the Holders is not necessary
under this Indenture to approve the particular form of any proposed
amendment.  It is sufficient if such
consent approves the substance of the proposed amendment.

 

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

 

Upon (x) the request of the Company
accompanied by a resolution of its Board of Directors authorizing the execution
of any such amended or supplemental Indenture and (y) receipt by the Trustee of
the documents described in Section 7.02 hereof, the Trustee will 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 will 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 9.02                            With Consent of Holders of
Notes.

 

Except as provided below in this
Section 9.02, the Company and the Trustee may amend or supplement this
Indenture (including, without limitation, Sections 3.09, 4.10 and 4.15
hereof), the Subsidiary Guarantees and the Notes with the consent of the
Holders of at least a majority in principal amount of the Notes then
outstanding (including consents obtained in connection with a purchase of, or
tender offer or exchange offer for, the Notes), and, subject to Sections 6.04
and 6.07 hereof, any existing Default or Event of Default (other than a Default
or Event of Default in the payment of the principal of, premium or Liquidated
Damages, if any, or interest on the Notes, except a payment default resulting
from an acceleration that has been rescinded) or compliance with any provision
of this Indenture, the Subsidiary Guarantees 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 purchase
of, or tender offer or exchange offer for, the Notes).

 

Upon (x) the request of the Company
accompanied by a resolution of the Board of Directors of the Company
authorizing the execution of any such amended or supplemental Indenture, (y)
the filing with the Trustee of evidence satisfactory to the Trustee of the
consent of the Holders of Notes as aforesaid and (z) receipt by the Trustee of
the documents described in Section 7.02 hereof, the Trustee will 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

 

74

 

may in its discretion, but will
not be obligated to, enter into such amended or supplemental Indenture.

 

The Company may, but will not be obligated
to, fix a record date for the purpose of determining the Persons entitled to
consent to any indenture supplemental hereto. 
If a record date is fixed, the Holders of Notes on such record date, or
their duly designated proxies, and only such Persons, will be entitled to
consent to such supplemental indenture, whether or not such Holders remain Holders
after such record date; provided, that unless such consent will
have become effective by virtue of the requisite percentage having been
obtained prior to the date which is 180 days after such record date; any such
consent previously given will automatically and without further action by any
Holder be canceled and of no further effect.

 

It will not be necessary for the consent of
the Holders of Notes under this Section 9.02 to approve the particular
form of any proposed amendment or waiver, but it will be sufficient if such
consent approves the substance thereof.

 

After an amendment, supplement or waiver
under this Section 9.02 becomes effective, the Company will 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, will not, however, in
any way impair or affect the validity of any such amended or supplemental
Indenture or waiver.  Subject to
Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate
principal amount of the Notes then outstanding may waive compliance in a
particular instance by the Company with any provision of this Indenture or the
Notes.  However, without the consent of
each Holder affected, an amendment or waiver may not (with respect to any Notes
held by a non-consenting Holder):

 

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

 

(ii)                                  reduce the principal of or change
the fixed maturity of any Note or alter the provisions with respect to the
redemption of the Notes except as provided above with respect to
Sections 3.09, 4.10 and 4.15 hereof;

 

(iii)                               reduce the rate of or change the
time for payment of interest, including default interest, on any Note;

 

(iv)                              waive a Default or Event of Default
in the payment of principal of, premium, interest or Liquidated Damages, if
any, on the Notes (except a rescission of acceleration of the Notes by the
Holders of at least a majority in aggregate principal amount of the then
outstanding Notes and a waiver of the payment default that resulted from such
acceleration);

 

(v)                                 make any Note payable in currency
other than that stated in the Notes;

 

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

 

75

 

(vii)                           waive a redemption payment with
respect to any Note (other than a payment required by Sections 3.09, 4.10
and 4.15 hereof); or

 

(viii)                        make any change in Section 6.04
or 6.07 hereof or in the foregoing amendment and waiver provisions.

 

Section 9.03                            Compliance with Trust
Indenture Act.

 

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

 

Section 9.04                            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 thereafter binds every Holder.

 

Section 9.05                            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 will authenticate new Notes that
reflect the amendment, supplement or waiver.

 

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

 

Section 9.06                            Trustee to Sign
Amendments, etc.

 

The Trustee will sign any amended or
supplemental Indenture authorized pursuant to this Article 9 if the
amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
The Company may not sign an amendment or supplemental indenture until
the Board of Directors approves it.  In
executing any amended or supplemental indenture, the Trustee will be entitled
to receive, and (subject to Section 7.01 hereof) will be fully protected
in relying upon, an Officers’ Certificate and an Opinion of Counsel stating
that the execution of such amended or supplemental indenture is authorized or
permitted by this Indenture.

 

76

 

ARTICLE 10.

SUBSIDIARY GUARANTEES

 

Section 10.01                     Agreement to Guarantee.

 

(a)                                  Each of the Guarantors, jointly and
severally with all other Guarantors, unconditionally guarantees to each Holder
of a Note authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, regardless of the validity and enforceability of this
Indenture, the Notes or the Obligations of the Company under this Indenture or
the Notes, that:

 

(i)                                     the principal of, premium, interest
and Liquidated Damages, if any, on the Notes will be promptly paid in full when
due, whether at maturity, by acceleration, redemption or otherwise, and
interest on the overdue principal of, premium and Liquidated Damages, if any,
and interest on the Notes, to the extent lawful, and all other Obligations of
the Company to the Holders or the Trustee under this Indenture or the Notes
will be promptly paid in full, all in accordance with the terms hereof or
thereof; and

 

(ii)                                  in case of any extension of time for
payment or renewal of any Notes or any of such other Obligations, that the same
will be promptly paid in full when due in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise.

 

(b)                                 Notwithstanding the foregoing, in
the event that this Guarantee would constitute or result in a violation of any
applicable fraudulent conveyance or similar law of any relevant jurisdiction,
the liability of the Guarantors under this Indenture will be reduced to the
maximum amount permissible under such fraudulent conveyance or similar law.

 

(c)                                  Failing payment when due of any
amount so guaranteed or any performance so guaranteed for whatever reason, the
Guarantors will be jointly and severally obligated to pay the same
immediately.  Each Guarantor agrees that
this is a guarantee of payment and not a guarantee of collection.

 

Section 10.02                     Execution and Delivery of
Subsidiary Guarantees.

 

(a)                                  To evidence its Subsidiary Guarantee
set forth in this Indenture, each Guarantor hereby agrees that a notation of
such Guarantee substantially in the form attached as Exhibit C to this
Indenture will be endorsed by an Officer of such Guarantor on each Note
authenticated and delivered by the Trustee on or after the date hereof.

 

(b)                                 Notwithstanding the foregoing, each
Guarantor hereby agrees that its Guarantee set forth herein will remain in full
force and effect notwithstanding any failure to endorse on each Note a notation
of such Guarantee.

 

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

 

77

 

(d)                                 The delivery of any Note by the
Trustee, after the authentication thereof under this Indenture, will constitute
due delivery of the Subsidiary Guarantee set forth in this Indenture on behalf
of each Guarantor.

 

(e)                                  Each Guarantor hereby agrees that
its obligations hereunder will be unconditional, regardless of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor.

 

(f)                                    Each Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency of bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever
and covenants that its Subsidiary Guarantee made pursuant to this Indenture
will not be discharged except by complete performance of the obligations
contained in the Notes and this Indenture.

 

(g)                                 If any Holder or the Trustee is
required by any court or otherwise to return to the Company or any Guarantor,
or any custodian, Trustee, liquidator or other similar official acting in
relation to either the Company or such Guarantor, any amount paid by either to
the Trustee or such Holder, the Subsidiary Guarantee made pursuant to this
Indenture, to the extent theretofore discharged, will be reinstated in full
force and effect.

 

(h)                                 Each Guarantor agrees that it will
not be entitled to any right of subrogation in relation to the Holders in
respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby.  Each
Guarantor further agrees that, as between such Guarantor, on the one hand, and
the Holders and the Trustee, on the other hand:

 

(i)                                     the maturity of the Obligations guaranteed
hereby may be accelerated as provided in Article 6 hereof for the purposes
of the Subsidiary Guarantee made pursuant to this Indenture, notwithstanding
any stay, injunction or other prohibition preventing such acceleration in
respect of the Obligations guaranteed hereby; and

 

(ii)                                  in the event of any declaration of
acceleration of such Obligations as provided in Article 6 hereof, such
Obligations (whether or not due and payable) will forthwith become due and
payable by such Guarantor for the purpose of the Subsidiary Guarantee made
pursuant to this Indenture.

 

(i)                                     Each Guarantor will have the right
to seek contribution from any other non-paying Guarantor so long as the
exercise of such right does not impair the rights of the Holders or the Trustee
under the Subsidiary Guarantee made pursuant to this Indenture.

 

Section 10.03                     Guarantors May Consolidate,
etc. on Certain Terms.

 

(a)                                  Except as set forth in Articles 4
and 5 hereof, and notwithstanding Sections 10.03(b) and (c) hereof,
nothing contained in this Indenture or in the Notes will prevent any
consolidation or merger of any Guarantor with or into the Company or any other
Guarantor

 

78

 

or will prevent any
transfer, sale or conveyance of the property of any Guarantor as an entirety or
substantially as an entirety to the Company or any other Guarantor.

 

(b)                                 Except as set forth in
Section 10.04 hereof, no Guarantor may sell or otherwise dispose of all or
substantially all of its assets to, or consolidate with or merge with or into
(whether or not such Guarantor is the surviving Person), another Person, other
than the Company or another Guarantor, unless:

 

(i)                                     immediately after giving effect to
that transaction, no Default or Event of Default exists; and

 

(ii)                                  either:

 

(A)                              subject to Section 10.04
hereof, the Person acquiring the property in any such sale or disposition or
the Person formed by or surviving any such consolidation or merger assumes all
the obligations of that Guarantor under this Indenture, the Notes, its
Subsidiary Guarantee and the Registration Rights Agreement pursuant to a
supplemental indenture satisfactory to the Trustee; or

 

(B)                                the Net Proceeds of such sale or
other disposition are applied in a manner not in violation of the applicable provisions
of this Indenture, including without limitation, Section 4.10 hereof.

 

(c)                                  In case of any such consolidation,
merger, sale or conveyance and upon the assumption by the successor Person, by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the Subsidiary Guarantee made pursuant to this
Indenture and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by such Guarantor, such successor
Person will succeed to and be substituted for such Guarantor with the same
effect as if it had been named herein as one of the Guarantors.  Such successor Person thereupon may cause to
be signed any or all of the Subsidiary Guarantees to be endorsed upon the Notes
issuable under this Indenture which theretofore have not been signed by the
Company and delivered to the Trustee. 
All the Subsidiary Guarantees so issued will in all respects have the
same legal rank and benefit under this Indenture as the Subsidiary Guarantees
theretofore and thereafter issued in accordance with the terms of this
Indenture as though all of such Subsidiary Guarantees had been issued at the
date of the execution hereof.

 

Section 10.04                     Releases.

 

(a)                                  In the event of any sale or other
disposition of all or substantially all of the assets of any Guarantor, by way
of merger, consolidation or otherwise, or a sale or other disposition of all of
the Capital Stock of any Guarantor, in each case to a Person that is not
(either before or after giving effect to such transactions) a Subsidiary of the
Company, then such Guarantor (in the event of a sale or other disposition, by
way of merger, consolidation or otherwise, of all of the Capital Stock of such
Guarantor) or the Person acquiring the property (in the event of a sale or
other disposition of all or substantially all of the assets of such Guarantor)
will be released and relieved of any obligations under its Subsidiary
Guarantee; provided
that the Net Proceeds of such sale or other disposition are applied
in accordance with the applicable

 

79

 

provisions of this
Indenture, including without limitation Section 4.10 hereof and is not in
violation of any other provisions under this Indenture.  Upon delivery by the Company to the Trustee
of an Officers’ Certificate and an Opinion of Counsel to the effect that such
sale or other disposition was made by the Company in accordance with the
provisions of this Indenture, including without limitation Section 4.10
hereof, the Trustee will execute any documents reasonably required in order to
evidence the release of any Guarantor from its obligations under its Subsidiary
Guarantee.

 

Any Guarantor not released from its
obligations under its Subsidiary Guarantee will remain liable for the full
amount of principal of and interest on the Notes and for the other obligations
of any Guarantor under this Indenture as provided in this Article 10.

 

(b)                                 Upon the designation of a Guarantor
as an Unrestricted Subsidiary in accordance with the terms of this Indenture,
such Guarantor will be released and relieved of its obligations under this
Indenture.  Upon delivery by the Company
to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the
effect that such designation of such Guarantor as an Unrestricted Subsidiary
was made by the Company in accordance with the provisions of this Indenture,
including without limitation Section 4.07 hereof, the Trustee will execute
any documents reasonably required in order to evidence the release of such
Guarantor from its obligations under its Subsidiary Guarantee.  Any Guarantor not released from its
obligations under its Subsidiary Guarantee will remain liable for the full
amount of principal of and interest on the Notes and for the other obligations
of any Guarantor under this Indenture as provided in this Article 10.

 

(c)                                  Each Guarantor shall be released and
relieved of its obligations under this Indenture in accordance with, and
subject to, Article 8 hereof.

 

ARTICLE 11.

SATISFACTION AND DISCHARGE

 

Section 11.01                     Satisfaction and Discharge.

 

This Indenture will be discharged and will
cease to be of further effect as to all Notes issued thereunder, when:

 

(i)                                     either:

 

(A)                              all Notes that have been
authenticated, except lost, stolen or destroyed Notes that have been replaced
or paid and Notes for whose payment money has been deposited in trust and
thereafter repaid to the Company, have been delivered to the Trustee for
cancellation; or

 

(B)                                all Notes that have not been
delivered to the Trustee for cancellation have become due and payable or will
become due and payable within one year by reason of the mailing of a notice of
redemption or otherwise and the Company or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as funds in trust solely
for the benefit of the Holders, cash in U.S. dollars, non-callable Government
Securities or a combination of cash in U.S.

 

80

 

dollars
and non-callable Government Securities, in amounts as will be sufficient
without consideration of any reinvestment of interest, to pay and discharge the
entire indebtedness on the Notes not delivered to the Trustee for cancellation
for principal, premium and Liquidated Damages, if any, and accrued interest to
the date of maturity or redemption;

 

(ii)                                  no Default or Event of Default has
occurred and is continuing on the date of the deposit or will occur as a result
of the deposit and the deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which the Company or any
Guarantor is a party or by which the Company or any Guarantor is bound;

 

(iii)                               the Company or any Guarantor has
paid or caused to be paid all sums payable by it under this Indenture; and

 

(iv)                              the Company has delivered
irrevocable instructions to the Trustee under this Indenture to apply the
deposited money toward the payment of the Notes at maturity or the redemption
date, as the case may be.

 

In addition, the Company must deliver an
Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all
conditions precedent to satisfaction and discharge have been satisfied.

 

Notwithstanding the satisfaction and
discharge of this Indenture, if money has been deposited with the Trustee
pursuant to Section 11.01(i)(B) hereof, the provisions of
Section 11.02 hereof and Section 8.06 hereof will survive.  In addition, nothing in this
Section 11.01 hereof will be deemed to discharge those provisions of
Section 7.07 hereof, that, by their terms,, survive the satisfaction and
discharge of this Indenture.

 

Section 11.02                     Application of Trust Money.

 

Subject to the provisions of
Section 8.06 hereof, all money deposited with the Trustee pursuant to
Section 11.01 hereof will be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium, if any) and interest for whose payment
such money has been deposited with the Trustee; but such money need not be
segregated from other funds except to the extent required by law.

 

If the Trustee or Paying Agent is unable to
apply any money or Government Securities in accordance with Section 11.01
hereof by reason of any legal proceeding or by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s and any Guarantor’s obligations
under this Indenture and the Notes will be revived and reinstated as though no
deposit had occurred pursuant to Section 11.01 hereof, provided
that if the Company has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations, the
Company will be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or Government Securities held by the Trustee
or Paying Agent.

 

81

 

ARTICLE 12.

MISCELLANEOUS

 

Section 12.01                     Trust Indenture Act
Controls.

 

If any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by TIA § 318(c), the imposed
duties will control.

 

Section 12.02                     Notices.

 

Any notice or communication by the Company or
the Trustee to the other is duly given if in writing and delivered in Person or
mailed by first class mail (registered or certified, return receipt requested),
telecopier or overnight air courier guaranteeing next day delivery, to the
other’s address:

 

If to the Company or any Guarantor:

 

Vought
Aircraft Industries, Inc. 

9314 West Jefferson Boulevard 

M/S 2-01

Dallas, Texas 75211 

Attention:  Investor Relations

 

With a copy to:

 

Latham &
Watkins LLP

885 Third Avenue 

New York, New York 10022

Attention:  Gregory Ezring (Fax:  212-751-4864)

 

If to the Trustee:

 

Wells Fargo
Bank Minnesota, National Association 

213 Court Street, Suite 703

Middletown, Connecticut 06457

Attention:  Corporate Trust Administration (Fax:  860-704-6219)

 

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) will 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; 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.

 

Any notice or communication to a Holder will
be mailed by first class mail, certified or registered, return receipt
requested, or by overnight air courier guaranteeing next day

 

82

 

delivery to its address shown
on the register kept by the Registrar. 
Any notice or communication will 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 will 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 addressee receives it.

 

If the Company mails a notice or
communication to Holders, it will mail a copy to the Trustee and each Agent at
the same time.

 

Section 12.03                     Communications 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 will have the protection of TIA
§ 312(c).

 

Section 12.04                     Certificate and Opinion as
to Conditions Precedent.

 

Upon any request or application by the
Company to the Trustee to take any action under this Indenture, the Company
will furnish to the Trustee:

 

(a)          an Officers’ Certificate in form and substance
reasonably satisfactory to the Trustee (which will include the statements set
forth in Section 12.05 hereof) stating that, in the opinion of the
signers, all conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been satisfied; and

 

(b)         an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which will include the statements set forth in
Section 12.05 hereof) stating that, in the opinion of such counsel, all
such conditions precedent and covenants have been satisfied.

 

Section 12.05                     Statements Required in
Certificate or Opinion.

 

Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (other
than a certificate provided pursuant to TIA § 314(a)(4)) will comply with
the provisions of TIA § 314(e) and will 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 or
her to express an informed opinion as to whether or not such covenant or
condition has been satisfied; and

 

83

 

(d)         a statement as to whether or not, in the opinion of
such Person, such condition or covenant has been satisfied.

 

Section 12.06                     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 12.07                     No Personal Liability of
Directors, Officers, Employees and Stockholders.

 

No director, officer, employee, incorporator
or stockholder of the Company or any Guarantor, as such, will have any
liability for any obligations of the Company or any Guarantor under the Notes,
the Subsidiary Guarantees 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 by accepting a Note
waives and releases all such liability. 
The waiver and release are part of the consideration for issuance of the
Notes.  Such waiver may not be effective
to waive liabilities under the federal securities laws and it is the view of
the SEC that such a waiver is against public policy.

 

Section 12.08                     Governing Law.

 

THIS INDENTURE, THE NOTES AND THE SUBSIDIARY
GUARANTEES WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

Section 12.09                     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 12.10                     Successors.

 

All agreements of the Company in this
Indenture and the Notes will bind its successors.  All agreements of the Trustee in this Indenture will bind its
successors.

 

Section 12.11                     Severability.

 

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

 

Section 12.12                     Counterpart Originals.

 

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

 

84

 

Section 12.13                     Table of
Contents, Headings, etc.

 

The table of contents, cross-reference table
and headings of the Articles and Sections of this Indenture have been
inserted for convenience of reference only, are not to be considered a part of
this Indenture and will in no way modify or restrict any of the terms or
provisions hereof.

 

[Signatures on
following pages]

 

85

 

SIGNATURES

 

	
  Dated as of July 2, 2003

  	
   

  
	
   

  	
   

  
	
   

  	
  VOUGHT AIRCRAFT INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C.
  Glasener Jr.

  	
   

  
	
   

  	
   

  	
  Name:  Cletus
  Glasener

  
	
   

  	
   

  	
  Title:    Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  Guarantors:

  	
   

  
	
   

  	
   

  
	
  VAC INDUSTRIES, INC.,

  	
   

  
	
  as a
  Guarantor

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ C. Glasener Jr.

  	
   

  
	
   

  	
  Name:  Cletus
  Glasener

  	
   

  
	
   

  	
  Title:    Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  VOUGHT COMMERCIAL AIRCRAFT COMPANY,

  	
   

  
	
  as a
  Guarantor

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ C. Glasener Jr.

  	
   

  
	
   

  	
  Name:  Cletus
  Glasener

  	
   

  
	
   

  	
  Title:    Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE AEROSTRUCTURES CORPORATION,

  	
   

  
	
  as a
  Guarantor

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ C. Glasener Jr.

  	
   

  
	
   

  	
  Name:  Cletus
  Glasener

  	
   

  
	
   

  	
  Title:     Treasurer

  	
   

  
											

 

Indenture

 

 

	
  WELLS FARGO BANK MINNESOTA,

  	
   

  
	
  NATIONAL ASSOCIATION, as Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Joseph P. O'Donnell

  	
   

  
	
   

  	
  Name:

  	
  Joseph P. O'Donnell

  
	
   

  	
  Title:

  	
  Coprorate Trust Officer

  
					

 

 

EXHIBIT A

[FORM OF FACE OF NOTE]

 

[Global Note Legend]

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY
(AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR
THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE
INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART
PURSUANT TO SECTION 2.06(c) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY
BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF
THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

[Private
Placement Legend]

 

THE NOTES EVIDENCED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES
ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)
(1) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN
OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER
THE SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO AN
INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, (5) IN ACCORDANCE WITH ANOTHER EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (BASED UPON AN OPINION
OF COUNSEL IF THE COMPANY SO REQUESTS) OR (6) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL
APPLICABLE BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.

 

[Temporary
Regulation S Global Note Legend]

 

EXCEPT AS SET FORTH BELOW, BENEFICIAL
OWNERSHIP INTERESTS IN THE TEMPORARY REGULATION S GLOBAL NOTE WILL NOT BE
EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL NOTE OR ANY
OTHER NOTE REPRESENTING AN INTEREST IN THE NOTES REPRESENTED HEREBY WHICH DO
NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION
OF THE “40-DAY

 

A-1

 

 

DISTRIBUTION COMPLIANCE PERIOD”
(WITHIN THE MEANING OF RULE 903(B)(2) OF REGULATIONS UNDER THE SECURITIES ACT)
AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE
THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S.
PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT. DURING SUCH 40-DAY DISTRIBUTION
COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP IN THIS TEMPORARY REGULATION S GLOBAL
NOTE MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED THROUGH EUROCLEAR SYSTEM AND
CLEARSTREAM BANKING, S.A. AND ONLY (1) TO THE COMPANY, (2) WITHIN THE UNITED
STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (3) OUTSIDE THE UNITED STATES
IN A TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT OR (4)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (1) THROUGH (4) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES AND OTHER JURISDICTIONS.  HOLDERS OF INTERESTS IN THIS TEMPORARY
REGULATIONS S GLOBAL NOTE WILL NOTIFY ANY PURCHASER OF THIS NOTE OF THE RESALE
RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

 

BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S
GLOBAL NOTE MAY BE EXCHANGED FOR INTERESTS IN A RULE 144A GLOBAL NOTE ONLY IF
(1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN
COMPLIANCE WITH RULE 144A, AND (2) THE TRANSFEROR OF THE REGULATION S
GLOBAL NOTE FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM
ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL NOTE
IS BEING TRANSFERRED (A) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES TO
BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A, (B) TO A
PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A AND
(C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS.

 

BENEFICIAL INTERESTS IN A RULE 144A GLOBAL
NOTE MAY BE TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN
INTEREST IN THE REGULATION S GLOBAL NOTE, WHETHER BEFORE OR AFTER THE
EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR
FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO
THIS CERTIFICATE) TO THE EFFECT THAT IF SUCH TRANSFER IS BEING MADE IN
ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S OR RULE 144 (IF AVAILABLE)
AND THAT, IF SUCH TRANSFER OCCURS PRIOR TO THE EXPIRATION OF THE 40-DAY
DISTRIBUTION COMPLIANCE PERIOD, THE INTEREST TRANSFERRED WILL BE HELD
IMMEDIATELY THEREAFTER THROUGH EUROCLEAR SYSTEM OR CLEARSTREAM BANKING, S.A.

 

A-2

 

[Definitive
Securities Legend]

 

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

 

A-3

 

	
   

  	
  CUSIP NO.

  	
   

  
	
   

  	
  ISIN

  	
   

  
	
   

  	
   

  
	
  No. 

  	
   

  	
  $

  
				

 

8% Senior
Notes Due 2011

 

Vought Aircraft Industries, Inc., a Delaware
corporation, promises to pay to Cede & Co., or registered assigns, the
principal sum of
              
Dollars on July 15, 2011.

 

 

	
  Interest Payment Dates:

  	
  January 15

  and July 15.

  
	
   

  	
   

  
	
  Record Dates:

  	
  January 1

  and July 1.

  

 

A-4

 

 

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

 

	
  Dated: 
  July 2, 2003

  	
   

  
	
   

  	
   

  
	
   

  	
  VOUGHT AIRCRAFT INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  TRUSTEE’S CERTIFICATE OF

  	
   

  
	
  AUTHENTICATION

  	
   

  
	
   

  
	
   

  
	
  WELLS FARGO BANK MINNESOTA, 

  	
   

  
	
  NATIONAL ASSOCIATION

  	
   

  
			

 

 

as Trustee, certifies that this

is one of the Notes referred to in the Indenture.

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

A-5

 

[FORM OF
REVERSE SIDE OF NOTE]

 

8% Senior Note
due 2011

 

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

 

 

1.                     INTEREST. 
Vought Aircraft Industries, Inc., a Delaware corporation (the “Company”), promises to pay interest on the
principal amount of this Note at 8% per annum from July 2, 2003 until
maturity and will pay the Liquidated Damages payable pursuant to Section 5
of the Registration Rights Agreement referred to below.  The Company will pay interest and Liquidated
Damages, if any, semi-annually on January 15 and July 15 of each
year, or if any such day is not a Business Day, on the next succeeding Business
Day (each an “Interest Payment Date”),
with the same force and effect as if made on the date for such payment.  Interest on the Notes will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from July 2, 2003; 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 will accrue from such next
succeeding Interest Payment Date; provided, further, that the first Interest Payment Date will be January 15,
2004.  The Company will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue principal and premium, if any, from time to time on demand at a rate
that is 1% per annum in excess of the rate then in effect; it will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest and Liquidated Damages (without regard to
any applicable grace periods) from time to time on demand at the same rate to
the extent lawful.  Interest will be
computed on the basis of a 360-day year of twelve 30-day months.

 

2.                     METHOD OF PAYMENT.  The Company will pay interest on the Notes
(except defaulted interest) and Liquidated Damages, if any, to the Persons who
are registered Holders of Notes at the close of business on the January 1
or July 1 next (whether or not a Business Day) preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date, except as provided in Section 2.12 of the
Indenture with respect to defaulted interest. 
The Notes will be payable as to principal, premium and Liquidated
Damages, if any, and interest at the office or agency of the Company maintained
for such purpose within The City and State of New York, or, at the option of
the Company, payment of interest and Liquidated Damages, if any, may be made by
check mailed to the Holders at their respective 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 of and interest, premium and Liquidated Damages, if any,
on, all Global Notes and all other Notes the Holders of which have provided
wire transfer instructions to the Company or the Paying Agent if such Holders
are registered Holders of at least $250,000 in principal amount of the
Notes.  Such payment will 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, Wells Fargo Bank Minnesota,
National Association, the Trustee under the Indenture, will act as Paying Agent
and Registrar.  The

 

A-6

 

Company may change any Paying
Agent or Registrar without notice to any Holder.  The Company or any of its Restricted Subsidiaries may act in any
such capacity.

 

4.                     INDENTURE.  The Company issued the Notes under an Indenture dated as of
July 2, 2003 (“Indenture”)
among the Company, the Guarantors named therein and the Trustee.  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of
this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture will govern and be controlling.

 

5.                     OPTIONAL REDEMPTION.

 

(a)  Except as set forth in clause (b) of this
paragraph 5, the Notes will not be redeemable at the Company’s option prior to
July 15, 2007.  Thereafter, the
Company may redeem all or a part of the Notes upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and
Liquidated Damages thereon, if any, to the applicable redemption date, if
redeemed during the twelve-month period beginning on July 15 of the years
indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2007

  	
   

  	
  104.000

  	
  %

  
	
  2008

  	
   

  	
  102.000

  	
  %

  
	
  2009 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b) 
Notwithstanding the foregoing, (i) at any time prior to July 15,
2007, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of the Notes issued under the Indenture at a
redemption price of 108.000% of the principal amount thereof, plus accrued and
unpaid interest and Liquidated Damages thereon, if any, to the redemption date,
with the net cash proceeds of one or more Equity Offerings by the Company or
from the cash contribution of equity capital (other than Disqualified Stock) to
the Company; provided that at
least 65% of the aggregate principal amount of Notes issued under the Indenture
remains outstanding immediately after the occurrence of each such redemption
(excluding Notes held by the Company and its Subsidiaries); and provided, further, that any such
redemption occurs within 120 days of the date of the closing of such Equity
Offering and (ii) at any time prior to July 15, 2007, the Company may also
redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’
notice, at a redemption price equal to 100% of the principal amount of Notes
redeemed plus the Applicable Premium as of, and accrued and unpaid interest and
Liquidated Damages, if any, to the date of redemption.

 

6.                     MANDATORY REDEMPTION.

 

The Company is not required to
make mandatory redemption payments with respect to the Notes.

 

A-7

 

7.                     REPURCHASE AT OPTION OF HOLDER.

 

(a)  If there is a Change of Control, the Company
shall be required to make an offer (a “Change
of Control Offer”) to repurchase all or any part (equal to $1,000 or
an integral multiple thereof) of each Holder’s Notes at a purchase price equal
to 101% of aggregate principal amount thereof plus accrued and unpaid interest
and Liquidated Damages, if any, to the date of purchase (the “Change of Control Payment”).  Within 30 days following any Change of
Control, the Company shall mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and offering
to repurchase Notes on the Change of Control Payment Date specified in the notice,
which date shall be no earlier than 30 days and no later than 60 days from the
date such notice is mailed, pursuant to the procedures required by the
Indenture and described in such notice.

 

(b)  If the Company or a Restricted Subsidiary
consummates an Asset Sale, within five Business Days of each date on which the
aggregate amount of Excess Proceeds exceeds $10,000,000, the Company shall
commence an offer to all Holders of Notes and all holders of other Indebtedness
that is pari passu with the Notes
containing provisions similar to those set forth in the Indenture with respect
to offers to purchase or redeem with the proceeds of sales of assets (an “Asset Sale Offer”) pursuant to
Section 3.09 of the Indenture to purchase the maximum principal amount of
Notes and such other pari passu
Indebtedness that may be purchased out of the Excess Proceeds, at an offer
price in cash in an amount equal to 100% of the principal amount thereof plus
accrued and unpaid interest and Liquidated Damages, if any, to the date of
purchase.  If any Excess Proceeds remain
after consummation of an Asset Sale Offer, the Company may use such Excess
Proceeds for any purpose not otherwise prohibited by the Indenture.  If the aggregate principal amount of Notes
and other pari passu Indebtedness
tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the
Trustee shall select the Notes and such other pari
passu Indebtedness to be purchased on a pro rata basis. 
Holders of Notes that are the subject of an offer to purchase shall
receive an Asset Sale Offer from the Company prior to any related purchase date
and may elect to have such Notes purchased by completing the form entitled
“Option of Holder to Elect Purchase” on the reverse of the Notes.

 

8.                     NOTICE OF REDEMPTION.  Notice of redemption shall be mailed at
least 30 days but not more than 60 days before the redemption date to each
Holder whose Notes are to be redeemed at its registered address.  Notes in denominations larger than $1,000
may be redeemed in part but only in whole multiples of $1,000, unless all of
the Notes held by a Holder are to be redeemed. 
On and after the redemption date, interest ceases to accrue on Notes or
portions thereof called for redemption.

 

 

9.                     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.  The Company
need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being
redeemed in part.  Also, it need not
exchange or register the transfer of any Notes for

 

A-8

 

a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date
and the corresponding Interest Payment Date.

 

10.               PERSONS DEEMED OWNERS.  The registered Holder of a Note may be
treated as its owner for all purposes.

 

11.               AMENDMENT, SUPPLEMENT AND WAIVER.  Subject
to certain exceptions, the Indenture, the Notes or the Subsidiary Guarantees
may be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the then outstanding Notes, and any existing
default or compliance with any provision of the Indenture, the Notes or the
Subsidiary Guarantees may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes.  Without the consent of any Holder of a Note,
the Indenture, the Notes or the Subsidiary Guarantees may be amended or
supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company’s or any Guarantor’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, to make any change that would
provide any additional rights or benefits to the Holders of the Notes or that
does not adversely affect the legal rights under the Indenture of any such
Holder, to comply with the rules of any applicable securities depository, to
comply with the requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act, to comply with
Section 5.01 of the Indenture, to add Guarantees with respect to the Notes
or to secure the Notes, to add to the covenants of the Company or any Guarantor
for the benefit of the Holders of the Notes or surrender any right or power
conferred upon the Company or any Guarantor or to evidence and provide for the
acceptance and appointment under the Indenture of a successor Trustee pursuant
to the procedures set forth in the Indenture.

 

12.               DEFAULTS AND REMEDIES.  An “Event
of Default” Occurs if:  (i)
default for 30 days in the payment when due of interest on, or Liquidated
Damages with respect to, the Notes; (ii) default in payment when due of the
principal of, or premium, if any, on the Notes; (iii) failure by the Company or
any of its Restricted Subsidiaries to comply with the covenants contained in
Sections 4.10, 4.15 or 5.01 of the Indenture; (iv) failure by the Company
or any of its Restricted Subsidiaries for 30 days after notice to comply with
Sections 4.07 and 4.09 of the Indenture; (v) failure by the Company or any
of its Restricted Subsidiaries for 60 days after notice to comply with any of
its other agreements in the Indenture or the Notes; (vi) default under any
mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is
guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee now exists, or is created after the date of the
Indenture, which default is caused by a failure to pay principal of such
Indebtedness prior to the expiration of the grace period provided in such Indebtedness
on the date of such default (a “Payment
Default”) or results in the acceleration of such Indebtedness prior
to its Stated Maturity and the amount of such Payment Default or the amount of
the Indebtedness being accelerated in either case aggregates $25,000,000 or
more; (vii) failure by the Company or any of its Subsidiaries to pay final
judgments aggregating in excess of $25,000,000, which judgments are not paid,
discharged or stayed for a period of 60 days; (viii) except as permitted by the
Indenture, any Subsidiary Guarantee is held in any judicial proceeding to be
unenforceable or

 

A-9

 

invalid or ceases for any
reason to be in full force and effect; or (ix) certain events of bankruptcy or
insolvency with respect to the Company or any of its Significant Subsidiaries
or any group of Restricted Subsidiaries that, taken as a whole, would
constitute a Significant Subsidiary.

 

If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all outstanding Notes to be due and
payable immediately.  Notwithstanding
the foregoing, in the case of an Event of Default arising from certain events
of bankruptcy or insolvency, with respect to the Company or any Significant
Subsidiary or any group of Restricted Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary, all outstanding Notes shall become
due and payable without further action or notice.  Holders of the Notes may not enforce the Indenture or the Notes
except as provided in the Indenture. 
Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding Notes may direct the Trustee in its exercise of
any trust or power.  The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of
Default (except a Default or Event of Default relating to the payment of
principal or interest) if it determines that withholding notice is in their interest,
except with respect to a Default or Event of Default relating to the payment of
principal of, or interest or premium of Liquidated Damages, if any, on, the
Notes.  Certain Events of Defaults
relating to Payment Defaults described in clause (vi) of the proceeding
paragraph may be annulled if remedied, cured or waived as set forth in the
Indenture.

 

In the case of any Event of Default occurring
by reason of any willful action (or inaction) taken (or not taken) by or on
behalf of the Company with the intention of avoiding payment of the premium
that the Company would have had to pay if the Company then had elected to
redeem the Notes pursuant to the optional redemption provisions of the
Indenture, an equivalent premium shall also become and be immediately due and
payable to the extent permitted by law upon the acceleration of the Notes.  If an Event of Default occurs prior to
July 15, 2007 by reason of any willful action (or inaction) taken (or not
taken) by or on behalf of the Company with the intention of avoiding the
prohibition on redemption of the Notes prior to that date, then the premium
specified in the Indenture shall also become immediately due and payable to the
extent permitted by law upon the acceleration of the Notes.

 

The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may, on
behalf of the Holders of all of the Notes, waive any existing Default or Event
of Default and its consequences under the Indenture, except a continuing Default
or Event of Default in the payment of principal, premium, interest or
Liquidated Damages, if any, on, the Notes; provided
that the Holders of a majority in aggregate principal amount of the then
outstanding Notes may rescind an acceleration and its consequences, if the
rescission would not conflict with any judgment or decree or if all existing
Events of Default have been cured or waived.

 

13.               TRUSTEE DEALINGS WITH COMPANY.  The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not the Trustee.

 

A-10

 

14.               NO RECOURSE AGAINST OTHERS.  A director, officer, employee, incorporator
or stockholder, of the Company or any Guarantor, as such, shall not have any
liability for any obligations of the Company or any Guarantor under the Notes,
the Indenture or the Subsidiary Guarantees 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.

 

15.               AUTHENTICATION.  This Note will not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

 

16.               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).

 

17.               ADDITIONAL RIGHTS OF HOLDERS OF TRANSFER RESTRICTED
SECURITIES.  In addition to
the rights provided to Holders of Notes under the Indenture, Holders of
Transferred Restricted Securities will have all the rights set forth in the
Registration Rights Agreement dated as of July 2, 2003, between the
Company and the parties named on the signature pages thereof, or, with respect
to any Additional Notes, Holders of Transfer Restricted Securities will have
all the rights set forth in one or more registration rights agreements between
the Company and the other parties thereto, relating to rights given by the
Company to the purchasers of Additional Notes (collectively, the “Registration Rights Agreement”).

 

18.               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 accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon.

 

19.               GOVERNING LAW.  This Note will be governed by, and construed in accordance with,
the laws of the State of New York.

 

The Company will furnish to any
Holder upon written request and without charge a copy of the Indenture and/or
the Registration Rights Agreement. 
Requests may be made to:

 

Vought
Aircraft Industries, Inc. 

9314 West Jefferson Boulevard 

M/S 2-01

Dallas, Texas 75211 

Attention:  Investor Relations

 

A-11

 

ASSIGNMENT
FORM

 

To assign this Note, fill in the form
below:  (I) or (we) assign and transfer
this Note to

 

	
   

  
	
  (Insert assignee’s social security or tax
  identification number)

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  

 

and irrevocably appoint

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)

  

 

In connection with any transfer of any of the
Notes evidenced by this certificate occurring prior to the expiration of the
period referred to in Rule 144(k) under the Securities Act of 1933, as amended
(the “Securities Act”), after the later of the date of original issuance of
such Notes and the last date, if any, on which such Notes were owned by the
Company or any Affiliate of the Company, the undersigned confirms that such
Notes are being transferred in accordance with its terms:

 

CHECK ONE BOX BELOW

 

(1)                        o                            to the
Company; or

 

(2)                        o                            pursuant
to an effective registration statement under the Securities Act; or

 

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

 

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

 

A-12

 

(5)                        o                            pursuant
to the exemption from registration provided by Rule 144 under the Securities
Act.

 

If such transfer is being made pursuant to an
offshore transaction in accordance with Rule 904 under the Securities Act, the
undersigned further certifies that:

 

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

 

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

 

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

 

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

 

(v)                we have advised
the transferee of the transfer restrictions applicable to the Notes; and

 

(vi)             if the circumstances
set forth in Rule 904(b) under the Securities Act are applicable, we have
complied with the additional conditions therein, including (if applicable)
sending a confirmation or other notice stating that the Notes may be offered
and sold during the distribution compliance period specified in Rule 903 of
Regulation S, pursuant to registration of the Notes under the Securities Act or
pursuant to an available exemption from the registration requirements under the
Securities Act.

 

Unless one of the boxes is checked, the
Trustee will refuse to register any of the Notes evidenced by this certificate
in the name of any person other than the registered holder thereof; provided, however,
that if box (4) or (5) is checked, the Trustee will be entitled to require,
prior to registering any such transfer of the Notes, such legal opinions,
certifications and other information as the Company has reasonably requested to
confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities
Act, such as the exemption provided by Rule 144 under the Securities Act.

 

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

A-13

 

	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature must be guaranteed

  	
  Signature

  
			

 

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

 

TO BE
COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:  To be executed by

  an executive officer

  

 

A-14

 

Option of
Holder to Elect Purchase

 

If you want to elect to have this Note
purchased by the Company pursuant to Section 4.10 or 4.15 of the
Indenture, check the box below:

 

o  Section 4.10              o  Section 4.15

 

If you want to elect to have only part of the
Note purchased by the Company pursuant to Section 4.10 or Section 4.15
of the Indenture, state the amount you elect to have purchased: 
$                          

 

	
  Dated:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the
  Note)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  	
   

  
						

 

 

	
  Signature Guarantee.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature must be guaranteed

  	
   

  
			

 

 

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

 

A-15

 

Schedule of
Exchanges of Interests in the Global Note

 

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 Note

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-16

 

EXHIBIT B

 

FORM OF
SUPPLEMENTAL INDENTURE TO BE DELIVERED 

BY SUBSIDIARY GUARANTOR

 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of
                                   ,
among 
                                   
(the “Subsidiary Guarantors”),
each a direct or indirect subsidiary of Vought Aircraft Industries, Inc. (or
its permitted successor), a Delaware corporation (the “Company”), the Company and Wells Fargo
Bank Minnesota, National Association, as trustee under the indenture referred
to below (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the Company and certain of its
Subsidiaries have heretofore executed and delivered to the Trustee an indenture
(the “Indenture”), dated as of
June 20, 2003 providing for the issuance of an unlimited amount of 8%
Senior Notes due 2011 (the “Notes”);

 

WHEREAS, the Indenture provides that under
certain circumstances the Subsidiary Guarantors will execute and deliver to the
Trustee a supplemental indenture pursuant to which the Subsidiary Guarantors
will unconditionally guarantee all of the Company’s Obligations (as defined in
the Indenture) under the Notes and the Indenture on the terms and conditions
set forth herein (the “Subsidiary Guarantee”);
and

 

WHEREAS, pursuant to Section 9.01 of the
Indenture, the Trustee is authorized to execute and deliver this Supplemental
Indenture.

 

NOW THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the Subsidiary Guarantors and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the
Notes as follows:

 

1.                                       CAPITALIZED
TERMS.  Capitalized terms used herein
without definition will have the meanings assigned to them in the Indenture.

 

2.                                       AGREEMENT TO
GUARANTEE.  Each Subsidiary Guarantor
hereby agrees as follows:

 

(a)                                  Such Subsidiary
Guarantor, jointly and severally with all other current and future guarantors
of the Notes (collectively, the “Guarantors” and each, a “Guarantor”),
unconditionally guarantees to each Holder of a Note authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, regardless of
the validity and enforceability of the Indenture, the Notes or the Obligations
of the Company under the Indenture or the Notes, that:

 

(i)                                     the principal of,
premium, interest and Liquidated Damages, if any, on the Notes will be promptly
paid in full when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on

 

B-1

 

the overdue principal of,
premium, interest and Liquidated Damages, if any, on the Notes, to the extent
lawful, and all other Obligations of the Company to the Holders or the Trustee
thereunder or under the Indenture will be promptly paid in full, all in
accordance with the terms thereof; and

 

(ii)                                  in case of any
extension of time for payment or renewal of any Notes or any of such other
Obligations, that the same will be promptly paid in full when due in accordance
with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

 

(b)                                 Notwithstanding the
foregoing, in the event that this Subsidiary Guarantee would constitute or
result in a violation of any applicable fraudulent conveyance or similar law of
any relevant jurisdiction, the liability of such Subsidiary Guarantor under
this Supplemental Indenture and its Subsidiary Guarantee shall be reduced to
the maximum amount permissible under such fraudulent conveyance or similar law.

 

3.                                       EXECUTION AND
DELIVERY OF SUBSIDIARY GUARANTEES.

 

(a)                                  To evidence its
Subsidiary Guarantee set forth in this Supplemental Indenture, such Subsidiary
Guarantor hereby agrees that a notation of such Subsidiary Guarantee
substantially in the form of Exhibit C to the Indenture will be endorsed
by an officer of such Subsidiary Guarantor on each Note authenticated and
delivered by the Trustee after the date hereof.

 

(b)                                 Notwithstanding the
foregoing, such Subsidiary Guarantor hereby agrees that its Subsidiary
Guarantee set forth herein will remain in full force and effect notwithstanding
any failure to endorse on each Note a notation of such Subsidiary Guarantee.

 

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

 

(d)                                 The delivery of any
Note by the Trustee, after the authentication thereof under the Indenture, will
constitute due delivery of the Subsidiary Guarantee set forth in this
Supplemental Indenture on behalf of each Subsidiary Guarantor.

 

(e)                                  Each Subsidiary
Guarantor hereby agrees that its Obligations hereunder will be unconditional,
regardless of the validity, regularity or enforceability of the Notes or the
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Company, any action to enforce the
same or any other 

 

B-2

 

circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor.

 

(f)                                    Each Subsidiary
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 its Subsidiary Guarantee made
pursuant to this Supplemental Indenture will not be discharged except by
complete performance of the Obligations contained in the Notes and the
Indenture.

 

(g)                                 If any Holder or the
Trustee is required by any court or otherwise to return to the Company or any
Subsidiary Guarantor, or any custodian, Trustee, liquidator or other similar
official acting in relation to either the Company or such Subsidiary Guarantor,
any amount paid by either to the Trustee or such Holder, the Subsidiary
Guarantee made pursuant to this Supplemental Indenture, to the extent
theretofore discharged, will be reinstated in full force and effect.

 

(h)                                 Each Subsidiary
Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any Obligations guaranteed hereby until
payment in full of all Obligations guaranteed hereby.  Each Subsidiary Guarantor further agrees that, as between such
Subsidiary Guarantor, on the one hand, and the Holders and the Trustee, on the
other hand:

 

(i)                                     the maturity of
the Obligations guaranteed hereby may be accelerated as provided in
Article 6 of the Indenture for the purposes of the Subsidiary Guarantee
made pursuant to this Supplemental Indenture, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Obligations guaranteed hereby; and

 

(ii)                                  in the event of any
declaration of acceleration of such Obligations as provided in Article 6
of the Indenture, such Obligations (whether or not due and payable) will
forthwith become due and payable by such Subsidiary Guarantor for the purpose
of the Subsidiary Guarantee made pursuant to this Supplemental Indenture.

 

(i)                                     Each Subsidiary
Guarantor will have the right to seek contribution from any other non-paying
Subsidiary Guarantor so long as the exercise of such right does not impair the
rights of the Holders or the Trustee under the Subsidiary Guarantee made
pursuant to this Supplemental Indenture.

 

B-3

 

4.                                       SUBSIDIARY
GUARANTOR MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

 

(a)                                  Except as set forth
in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this
Supplemental Indenture or in the Notes will prevent any consolidation or merger
of any Subsidiary Guarantor with or into the Company or any other Guarantor or
will prevent any transfer, sale or conveyance of the property of any Subsidiary
Guarantor as an entirety or substantially as an entirety to the Company or any
other Guarantor.

 

(b)                                 Except as set forth in
Section 10.04 of the Indenture, no Subsidiary Guarantor may sell or
otherwise dispose of all or substantially all of its assets to, or consolidate
with or merge with or into (whether or not such Subsidiary Guarantor is the
surviving Person), another Person, other than the Company or another Guarantor,
unless:  (i) immediately after giving
effect to such transaction, no Default or Event of Default exists and (ii)
either (A) subject to Section 10.04 of the Indenture, the Person acquiring
the property in any such sale or disposition or the Person formed by or
surviving any such consolidation or merger unconditionally assumes all the
obligations of that Subsidiary Guarantor, pursuant to a supplemental indenture
in form and substance reasonably satisfactory to the Trustee, under the
Indenture and the Subsidiary Guarantee on the terms set forth in the Indenture
or such Subsidiary Guarantee, as the case may be, and (B) the Net Proceeds of
such sale or other disposition are applied in accordance with the applicable
provisions of the Indenture, including without limitation, Section 4.10
thereof.

 

(c)                                  In case of any such
consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee
made pursuant to this Supplemental Indenture and the due and punctual
performance of all of the covenants and conditions of the Indenture and this
Supplemental Indenture to be performed by such Subsidiary Guarantor, such
successor Person will succeed to and be substituted for such Subsidiary
Guarantor with the same effect as if it had been named herein as the Subsidiary
Guarantor.  Such successor Person
thereupon may cause to be signed any or all of the Subsidiary Guarantees to be
endorsed upon the Notes issuable under the Indenture which theretofore have not
been signed by the Company and delivered to the Trustee.  All the Subsidiary Guarantees so issued will
in all respects have the same legal rank and benefit under the Indenture and
this Supplemental Indenture as the Subsidiary Guarantees theretofore and
thereafter issued in accordance with the terms of the Indenture and this
Supplemental Indenture as though all of such Subsidiary Guarantees had been
issued at the date of the execution hereof.

 

B-4

 

5.                                       RELEASES.

 

(a)                                  In the event of any
sale or other disposition of all or substantially all of the assets of any
Subsidiary Guarantor, by way of merger, consolidation or otherwise, or a sale
or other disposition of all of the Capital Stock of any Subsidiary Guarantor,
in each case to a Person that is not (either before or after giving effect to
such transactions) a Subsidiary of the Company, then such Subsidiary Guarantor
(in the event of a sale or other disposition, by way of merger, consolidation
or otherwise, of all of the Capital Stock of such Subsidiary Guarantor) or the
Person acquiring the property (in the event of a sale or other disposition of
all or substantially all of the assets of such Subsidiary Guarantor) will be
released and relieved of any obligations under its Subsidiary Guarantee; provided that the Net Proceeds of such
sale or other disposition are applied in accordance with the applicable
provisions of the Indenture, including without limitation Section 4.10
thereof.  Upon delivery by the Company
to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the
effect that such sale or other disposition was made by the Company in
accordance with the provisions of the Indenture, including without limitation
Section 4.10 thereof, the Trustee will execute any documents reasonably
required in order to evidence the release of any Subsidiary Guarantor from its
obligations under its Subsidiary Guarantee. 
Any Subsidiary Guarantor not released from its obligations under its
Subsidiary Guarantee will remain liable for the full amount of principal of and
interest on the Notes and for the other obligations of any Guarantor under the
Indenture as provided in Article 10 thereof.

 

(b)                                 Upon the designation
of a Subsidiary Guarantor as an Unrestricted Subsidiary in accordance with the
terms of the Indenture, such Subsidiary Guarantor will be released and relieved
of its Obligations under its Subsidiary Guarantee and this Supplemental
Indenture.  Upon delivery by the Company
to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the
effect that such designation of such Subsidiary Guarantor as an Unrestricted
Subsidiary was made by the Company in accordance with the provisions of the
Indenture, including without limitation Section 4.07 of the Indenture, the
Trustee will execute any documents reasonably required in order to evidence the
release of such Subsidiary Guarantor from its Obligations under its Subsidiary
Guarantee.  Any Subsidiary Guarantor not
released from its Obligations under its Subsidiary Guarantee will remain liable
for the full amount of principal of and interest on the Notes and for the other
Obligations of any Guarantor under the Indenture as provided in Article 10
thereof.

 

(c)                                  Each Subsidiary Guarantor
will be released and relieved of its obligations under this Supplemental
Indenture in accordance with, and subject to, Article 8 of the Indenture.

 

B-5

 

6.                                       NO RECOURSE
AGAINST OTHERS.  No past, present or
future director, officer, employee, incorporator, stockholder or agent of any
Subsidiary Guarantor, as such, will have any liability for any Obligations of
the Company or any Subsidiary Guarantor under the Notes, any Subsidiary
Guarantees, the Indenture or this Supplemental Indenture or for any claim based
on, in respect of, or by reason of, such Obligations or their creation.  Each Holder of the Notes by accepting a Note
waives and releases all such liability. 
The waiver and release are part of the consideration for issuance of the
Notes.  Such waiver may not be effective
to waive liabilities under the federal securities laws and it is the view of
the SEC that such a waiver is against public policy.

 

7.                                       NEW YORK LAW TO
GOVERN.  THIS SUPPLEMENTAL INDENTURE
WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

 

8.                                       COUNTERPARTS.  The parties may sign any number of copies of
this Supplemental Indenture.  Each
signed copy will be an original, but all of them together represent the same
agreement.

 

9.                                       EFFECT OF
HEADINGS.  The Section headings
herein are for convenience only and will not affect the construction hereof.

 

10.                                 THE TRUSTEE.  The Trustee will not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Subsidiary Guarantors and the
Company.

 

B-6

 

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

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VOUGHT AIRCRAFT INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Subsidiary Guarantors:

  	
   

  
	
   

  	
   

  
	
  [EXISTING GUARANTORS]

  	
   

  
	
  [ADDITIONAL GUARANTORS]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WELLS FARGO BANK MINNESOTA,

  	
   

  
	
  NATIONAL
  ASSOCIATION, as Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

B-7

 

EXHIBIT C

 

FORM OF
NOTATION ON SENIOR NOTE RELATING TO SUBSIDIARY GUARANTEE

 

Pursuant to the Indenture (the “Indenture”) dated as of July 2, 2003
among Vought Aircraft Industries, Inc., the Guarantors party thereto (each a
“Guarantor” and collectively the “Guarantors”) and Wells Fargo Bank Minnesota,
National Association, as trustee (the “Trustee”),
each Guarantor (i) has jointly and severally unconditionally guaranteed (a) the
due and punctual payment of the principal of, and premium, interest and
Liquidated Damages on the Notes, whether at maturity or on an interest payment
date, by acceleration, call for redemption or otherwise, (b) the due and
punctual payment of interest on the overdue principal and premium of and
interest and Liquidated Damages on the Notes and (c) in case of any extension
of time of payment or renewal of any Notes or any of such other Obligations,
the same will be promptly paid in full when due in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration or otherwise
and (ii) has agreed to pay any and all costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights
under the Subsidiary Guarantee (as defined in the Supplemental Indenture).

 

Notwithstanding the foregoing, in the event
that the Subsidiary Guarantee of any Guarantor would constitute or result in a
violation of any applicable fraudulent conveyance or similar law of any
relevant jurisdiction, the liability of such Guarantor under its Subsidiary
Guarantee will be reduced to the maximum amount permissible under such
fraudulent conveyance or similar law.

 

The Subsidiary Guarantee will be binding upon
each Guarantor and its successors and assigns and will inure to the benefit of
the successors and assigns of the Trustee and the Holders and, in the event of
any transfer or assignment of rights by any Holder or the Trustee, the rights
and privileges herein conferred upon that party will automatically extend to
and be vested in such transferee or assignee, all subject to the terms and
conditions hereof.

 

The Subsidiary Guarantee will not be valid or
obligatory for any purpose until the certificate of authentication on the Note
upon which the Subsidiary Guarantee is noted has been executed by the Trustee under
the Indenture by the manual or facsimile signature of one of its authorized
officers.  Capitalized terms used herein
have the meaning assigned to them in the Indenture.

 

	
  *By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

* Please add signature lines for guarantors as required.

 

C-1

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