Document:

Exhibit
4.3

Execution
Copy

GUARANTEE AGREEMENT

 

by and between

 

UNIVERSAL AMERICAN
FINANCIAL CORP.

 

and

 

WILMINGTON TRUST COMPANY

 

Dated as of March 22,
2007

 

   
 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1

  	
   

  	
  Definitions and Interpretation.

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1

  	
   

  	
  Powers and Duties of the Guarantee Trustee.

  	
   

  	
  5

  
	
  Section 2.2

  	
   

  	
  Certain Rights of the Guarantee Trustee.

  	
   

  	
  6

  
	
  Section 2.3

  	
   

  	
  Not Responsible for Recitals or Issuance of
  Guarantee.

  	
   

  	
  8

  
	
  Section 2.4

  	
   

  	
  Events of Default; Waiver.

  	
   

  	
  8

  
	
  Section 2.5

  	
   

  	
  Events of Default; Notice.

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  GUARANTEE TRUSTEE

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1

  	
   

  	
  Guarantee Trustee; Eligibility.

  	
   

  	
  9

  
	
  Section 3.2

  	
   

  	
  Appointment, Removal and Resignation of the
  Guarantee Trustee.

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  GUARANTEE

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1

  	
   

  	
  Guarantee.

  	
   

  	
  10

  
	
  Section 4.2

  	
   

  	
  Waiver of Notice and Demand.

  	
   

  	
  10

  
	
  Section 4.3

  	
   

  	
  Obligations Not Affected.

  	
   

  	
  10

  
	
  Section 4.4

  	
   

  	
  Rights of Holders.

  	
   

  	
  11

  
	
  Section 4.5

  	
   

  	
  Guarantee of Payment.

  	
   

  	
  12

  
	
  Section 4.6

  	
   

  	
  Subrogation.

  	
   

  	
  12

  
	
  Section 4.7

  	
   

  	
  Independent Obligations.

  	
   

  	
  12

  
	
  Section 4.8

  	
   

  	
  Enforcement by a Beneficiary.

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  LIMITATION OF TRANSACTIONS; SUBORDINATION

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1

  	
   

  	
  Limitation of Transactions.

  	
   

  	
  13

  
	
  Section 5.2

  	
   

  	
  Ranking.

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  TERMINATION

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1

  	
   

  	
  Termination.

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  INDEMNIFICATION

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1

  	
   

  	
  Exculpation.

  	
   

  	
  15

  
	
  Section 7.2

  	
   

  	
  Indemnification.

  	
   

  	
  15

  
	
  Section 7.3

  	
   

  	
  Compensation; Reimbursement of Expenses.

  	
   

  	
  16

  

 

 i
 

 

	
  ARTICLE VIII

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1

  	
   

  	
  Successors and Assigns.

  	
   

  	
  17

  
	
  Section 8.2

  	
   

  	
  Amendments.

  	
   

  	
  17

  
	
  Section 8.3

  	
   

  	
  Notices.

  	
   

  	
  17

  
	
  Section 8.4

  	
   

  	
  Benefit.

  	
   

  	
  18

  
	
  Section 8.5

  	
   

  	
  Governing Law.

  	
   

  	
  18

  
	
  Section 8.6

  	
   

  	
  Counterparts.

  	
   

  	
  18

  
	
  Section 8.7

  	
   

  	
  Separability.

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 ii

GUARANTEE AGREEMENT

This GUARANTEE AGREEMENT
(this “Guarantee”), dated as of March 22, 2007, is executed and delivered by
Universal American Financial, a New York corporation (the “Guarantor”), and
Wilmington Trust Company, a Delaware banking corporation, as trustee (the “Guarantee
Trustee”), for the benefit of the Holders (as defined herein) from time to time
of the Capital Securities (as defined herein) of Universal American Statutory
Trust VI, a Delaware statutory trust (the “Issuer”).

WHEREAS, pursuant to an Amended and Restated
Declaration of Trust (the “Declaration”), dated as of the date hereof among
Wilmington Trust Company, not in its individual capacity but solely as
institutional trustee, the administrators of the Issuer named therein, the
Guarantor, as sponsor, and the holders from time to time of undivided
beneficial interests in the assets of the Issuer, the Issuer is issuing on the
date hereof those undivided beneficial interests, having an aggregate
liquidation amount of $50,000,000.00 (the “Capital Securities”); and

WHEREAS, as incentive for the Holders to purchase the
Capital Securities, the Guarantor desires irrevocably and unconditionally to
agree, to the extent set forth in this Guarantee, to pay to the Holders of
Capital Securities the Guarantee Payments (as defined herein) and to make
certain other payments on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the purchase by
each Holder of the Capital Securities, which purchase the Guarantor hereby
agrees shall benefit the Guarantor, the Guarantor executes and delivers this
Guarantee for the benefit of the Holders.

ARTICLE I

DEFINITIONS
AND INTERPRETATION

Section 1.1            Definitions
and Interpretation.

In this Guarantee, unless the context otherwise
requires:

(a)           capitalized terms used in this
Guarantee but not defined in the preamble above have the respective meanings
assigned to them in this Section 1.1;

(b)           a term defined anywhere in this
Guarantee has the same meaning throughout;

(c)           all references to “the Guarantee” or “this
Guarantee” are to this Guarantee as modified, supplemented or amended from time
to time;

(d)           all references in this Guarantee to “Articles”
or “Sections” are to Articles or Sections of this Guarantee, unless otherwise
specified;

(e)           terms defined in the Declaration as
at the date of execution of this Guarantee have the same meanings when used in
this Guarantee, unless otherwise defined in this Guarantee or unless the
context otherwise requires; and

(f)            a reference to the singular includes
the plural and vice versa.

“Affiliate” has the same meaning as given to
that term in Rule 405 of the Securities Act of 1933, as amended, or any
successor rule thereunder.

“Beneficiaries” means any Person to whom the
Issuer is or hereafter becomes indebted or liable.

“Capital Securities” has the meaning set forth
in the recitals to this Guarantee.

“Common Securities” means the common securities
issued by the Issuer to the Guarantor pursuant to the Declaration.

“Corporate Trust Office” means the office of
the Guarantee Trustee at which the corporate trust business of the Guarantee
Trustee shall, at any particular time, be principally administered, which
office at the date of execution of this Guarantee is located at 1100 North
Market Street, Wilmington, Delaware 19890-1600, Attention: Corporate Trust
Administration.

“Covered Person” means any Holder of Capital
Securities.

“Debentures” means the debt securities of the
Guarantor designated the Fixed/Floating Rate Junior Subordinated Deferrable
Interest Debentures due 2037 held by the Institutional Trustee (as defined in
the Declaration) of the Issuer.

“Declaration Event of Default” means an “Event
of Default” as defined in the Declaration.

“Event of Default” has the meaning set forth in
Section 2.4(a).

“Guarantee Payments” means the following
payments or distributions, without duplication, with respect to the Capital
Securities, to the extent not paid or made by the Issuer:  (i) any accrued and unpaid Distributions
(as defined in the Declaration) which are required to be paid on such
Capital Securities to the extent the Issuer shall have funds available
therefor, (ii) the Optional Redemption Price to the extent the Issuer has
funds available therefor, with respect to any Capital Securities called for
redemption by the Issuer, (iii) the Special Redemption Price to the extent
the Issuer has funds available therefor, with respect to Capital Securities
redeemed upon the occurrence of a Special Event, and (iv) upon a voluntary
or involuntary liquidation, dissolution, winding-up or termination of the
Issuer (other than in connection with the distribution of Debentures to the
Holders of the Capital Securities in exchange therefor as provided in the
Declaration), the lesser of (a) the aggregate of the liquidation amount and
all accrued and unpaid Distributions on the Capital Securities to the date of
payment, to the extent the Issuer shall have funds available therefor, and
(b) the amount of assets of the Issuer remaining available for
distribution to Holders in liquidation of the Issuer (in either case, the “Liquidation
Distribution”).

“Guarantee Trustee” means Wilmington Trust
Company, until a Successor Guarantee Trustee has been appointed and has
accepted such appointment pursuant to the terms of this Guarantee and
thereafter means each such Successor Guarantee Trustee.

 2
 

“Guarantor” means Universal American Financial
Corp. and each of its successors and assigns.

“Holder” means any holder, as registered on the
books and records of the Issuer, of any Capital Securities; provided, however,
that, in determining whether the Holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder, “Holder”
shall not include the Guarantor or any Affiliate of the Guarantor.

“Indemnified Person” means the Guarantee
Trustee, any Affiliate of the Guarantee Trustee, or any officers, directors,
shareholders, members, partners, employees, representatives, nominees,
custodians or agents of the Guarantee Trustee.

“Indenture” means the Indenture dated as of the
date hereof between the Guarantor and Wilmington Trust Company, not in its
individual capacity but solely as trustee, and any indenture supplemental
thereto pursuant to which the Debentures are to be issued to the institutional
trustee of the Issuer.

“Issuer” has the meaning set forth in the
opening paragraph to this Guarantee.

“Liquidation Distribution” has the meaning set
forth in the definition of “Guarantee Payments” herein.

“Majority in liquidation amount of the Capital
Securities” means Holder(s) of outstanding Capital Securities, voting
together as a class, but separately from the holders of Common Securities, of
more than 50% of the aggregate liquidation amount (including the stated amount
that would be paid on redemption, liquidation or otherwise, plus accrued and
unpaid Distributions to the date upon which the voting percentages are
determined) of all Capital Securities then outstanding.

“Obligations” means any costs, expenses or
liabilities (but not including liabilities related to taxes) of the Issuer
other than obligations of the Issuer to pay to holders of any Trust Securities
the amounts due such holders pursuant to the terms of the Trust Securities.

“Officer’s Certificate” means, with respect to
any Person, a certificate signed by one Authorized Officer of such Person. Any
Officer’s Certificate delivered with respect to compliance with a condition or
covenant provided for in this Guarantee shall include:

(a)           a statement that the officer signing
the Officer’s Certificate has read the covenant or condition and the
definitions relating thereto;

(b)           a brief statement of the nature and
scope of the examination or investigation undertaken by the officer in
rendering the Officer’s Certificate;

(c)           a statement that the officer has made
such examination or investigation as, in such officer’s opinion, is necessary
to enable such officer to express an informed opinion as to whether or not such
covenant or condition has been complied with; and

 3
 

(d)           a statement as to whether, in the
opinion of the officer, such condition or covenant has been complied with.

“Optional Redemption Price” has the meaning set
forth in the Indenture.

“Person” means a legal person, including any
individual, corporation, estate, partnership, joint venture, association, joint
stock company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

“Responsible Officer” means, with respect to
the Guarantee Trustee, any officer within the Corporate Trust Office of the
Guarantee Trustee including any Vice President, Assistant Vice President,
Secretary, Assistant Secretary or any other officer of the Guarantee Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of that
officer’s knowledge of and familiarity with the particular subject.

“Special Event” has the meaning set forth in
the Indenture.

“Special Redemption Price” has the meaning set
forth in the Indenture.

“Subsidiary” 
means with respect to any Person, (i) any corporation at least a
majority of the outstanding voting stock of which is owned, directly or
indirectly, by such Person or by one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries, (ii) any general partnership, joint
venture or similar entity, at least a majority of the outstanding partnership
or similar interests of which shall at the time be owned by such Person, or by
one or more of its Subsidiaries, or by such Person and one or more of its
Subsidiaries and (iii) any limited partnership of which such Person or any of
its Subsidiaries is a general partner.  For
the purposes of this definition, “voting stock” means shares, interests,
participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of a majority of
the directors (or the equivalent) of such Person, other than shares, interests,
participations or other equivalents having such power only by reason of the
occurrence of a contingency.

“Successor Guarantee Trustee” means a successor
Guarantee Trustee possessing the qualifications to act as Guarantee Trustee
under Section 3.1.

“Trust Securities” means the Common Securities
and the Capital Securities.

 4
 

ARTICLE
II

POWERS,
DUTIES AND RIGHTS OF THE

GUARANTEE TRUSTEE

Section 2.1            Powers
and Duties of the Guarantee Trustee.

(a)           This
Guarantee shall be held by the Guarantee Trustee for the benefit of the Holders
of the Capital Securities, and the Guarantee Trustee shall not transfer this
Guarantee to any Person except a Holder of Capital Securities exercising his or
her rights pursuant to Section 4.4(b) or to a Successor Guarantee Trustee on
acceptance by such Successor Guarantee Trustee of its appointment to act as
Successor Guarantee Trustee.  The right,
title and interest of the Guarantee Trustee shall automatically vest in any
Successor Guarantee Trustee, and such vesting and cessation of title shall be
effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Guarantee Trustee.

(b)           If
an Event of Default actually known to a Responsible Officer of the Guarantee
Trustee has occurred and is continuing, the Guarantee Trustee shall enforce
this Guarantee for the benefit of the Holders of the Capital Securities.

(c)           The
Guarantee Trustee, before the occurrence of any Event of Default and after the
curing or waiving of all Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this
Guarantee, and no implied covenants shall be read into this Guarantee against
the Guarantee Trustee.  In case an Event
of Default has occurred (that has not been cured or waived pursuant to
Section 2.4) and is actually known to a Responsible Officer of the
Guarantee Trustee, the Guarantee Trustee shall exercise such of the rights and
powers vested in it by this Guarantee, and use the same degree of care and
skill in its exercise thereof, as a prudent person would exercise or use under
the circumstances in the conduct of his or her own affairs.

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

(i)            prior to the
occurrence of any Event of Default and after the curing or waiving of all such
Events of Default that may have occurred:

(A)          the duties and
obligations of the Guarantee Trustee shall be determined solely by the express
provisions of this Guarantee, and the Guarantee Trustee shall not be liable
except for the performance of such duties and obligations as are specifically
set forth in this Guarantee, and no implied covenants or obligations shall be
read into this Guarantee against the Guarantee Trustee; and

(B)           in the absence of
bad faith on the part of the Guarantee Trustee, the Guarantee Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the
Guarantee Trustee and conforming to the requirements of this 

 5
 

Guarantee; but
in the case of any such certificates or opinions that by any provision hereof
are specifically required to be furnished to the Guarantee Trustee, the
Guarantee Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Guarantee;

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

(iii)          the Guarantee
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the written direction of the
Holders of not less than a Majority in liquidation amount of the Capital
Securities relating to the time, method and place of conducting any proceeding
for any remedy available to the Guarantee Trustee, or relating to the exercise
of any trust or power conferred upon the Guarantee Trustee under this
Guarantee; and

(iv)          no provision of this
Guarantee shall require the Guarantee Trustee to expend or risk its own funds
or otherwise incur personal financial liability in the performance of any of
its duties or in the exercise of any of its rights or powers, if the Guarantee
Trustee shall have reasonable grounds for believing that the repayment of such
funds is not reasonably assured to it under the terms of this Guarantee or
security and indemnity, reasonably satisfactory to the Guarantee Trustee,
against such risk or liability is not reasonably assured to it.

Section 2.2            Certain
Rights of the Guarantee Trustee.

(a)           Subject
to the provisions of Section 2.1:

(i)            The Guarantee
Trustee may conclusively rely, and shall be fully protected in acting or
refraining from acting upon, any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed, sent or presented by the
proper party or parties.

(ii)           Any direction or
act of the Guarantor contemplated by this Guarantee shall be sufficiently
evidenced by an Officer’s Certificate.

(iii)          Whenever, in the
administration of this Guarantee, the Guarantee Trustee shall deem it desirable
that a matter be proved or established before taking, suffering or omitting any
action hereunder, the Guarantee Trustee (unless other evidence is herein
specifically prescribed) may, in the absence of bad faith on its part, request
and conclusively rely upon an Officer’s Certificate of the Guarantor which,
upon receipt of such request, shall be promptly delivered by the Guarantor.

(iv)          The Guarantee
Trustee shall have no duty to see to any recording, filing or registration of
any instrument (or any re-recording, refiling or re-registration thereof).

 6
 

(v)           The Guarantee
Trustee may consult with counsel of its selection, and the advice or opinion of
such counsel with respect to legal matters shall be full and complete
authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in accordance with such advice or
opinion. Such counsel may be counsel to the Guarantor or any of its Affiliates
and may include any of its employees. 
The Guarantee Trustee shall have the right at any time to seek
instructions concerning the administration of this Guarantee from any court of
competent jurisdiction.

(vi)          The Guarantee
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Guarantee at the request or direction of any Holder,
unless such Holder shall have provided to the Guarantee Trustee such security
and indemnity, reasonably satisfactory to the Guarantee Trustee, against the
costs, expenses (including attorneys’ fees and expenses and the expenses of the
Guarantee Trustee’s agents, nominees or custodians) and liabilities that might
be incurred by it in complying with such request or direction, including such
reasonable advances as may be requested by the Guarantee Trustee; provided,
however, that nothing contained in this Section 2.2(a)(vi) shall relieve
the Guarantee Trustee, upon the occurrence of an Event of Default, of its
obligation to exercise the rights and powers vested in it by this Guarantee.

(vii)         The Guarantee
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Guarantee Trustee,
in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit.

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

(ix)           Any action taken by
the Guarantee Trustee or its agents hereunder shall bind the Holders of the
Capital Securities, and the signature of the Guarantee Trustee or its agents
alone shall be sufficient and effective to perform any such action.  No third party shall be required to inquire
as to the authority of the Guarantee Trustee to so act or as to its compliance
with any of the terms and provisions of this Guarantee, both of which shall be
conclusively evidenced by the Guarantee Trustee’s or its agent’s taking such
action.

(x)            Whenever in the
administration of this Guarantee the Guarantee Trustee shall deem it desirable
to receive instructions with respect to enforcing any remedy or right or taking
any other action hereunder, the Guarantee Trustee (i) may request
instructions from the Holders of a Majority in liquidation amount of the
Capital Securities, (ii) may refrain from enforcing such remedy or right
or taking such other action until such instructions are received, and
(iii) shall be protected in conclusively relying on or acting in
accordance with such instructions.

 7
 

(xi)           The Guarantee
Trustee shall not be liable for any action taken, suffered, or omitted to be
taken by it in good faith, without negligence, and reasonably believed by it to
be authorized or within the discretion or rights or powers conferred upon it by
this Guarantee.

(b)           No
provision of this Guarantee shall be deemed to impose any duty or obligation on
the Guarantee Trustee to perform any act or acts or exercise any right, power,
duty or obligation conferred or imposed on it, in any jurisdiction in which it
shall be illegal or in which the Guarantee Trustee shall be unqualified or
incompetent in accordance with applicable law to perform any such act or acts
or to exercise any such right, power, duty or obligation.  No permissive power or authority available to
the Guarantee Trustee shall be construed to be a duty.

Section 2.3            Not
Responsible for Recitals or Issuance of Guarantee.

The recitals contained in this Guarantee shall be
taken as the statements of the Guarantor, and the Guarantee Trustee does not
assume any responsibility for their correctness.  The Guarantee Trustee makes no representation
as to the validity or sufficiency of this Guarantee.

Section 2.4            Events
of Default; Waiver.

(a)           An
Event of Default under this Guarantee will occur upon the failure of the
Guarantor to perform any of its payment or other obligations hereunder.

(b)           The
Holders of a Majority in liquidation amount of the Capital Securities may,
voting or consenting as a class, on behalf of the Holders of all of the Capital
Securities, waive any past Event of Default and its consequences.  Upon such waiver, any such Event of Default
shall cease to exist, and shall be deemed to have been cured, for every purpose
of this Guarantee, but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon.

Section 2.5            Events
of Default; Notice.

(a)           The
Guarantee Trustee shall, within 90 days after the occurrence of an Event of
Default, transmit by mail, first class postage prepaid, to the Holders of the
Capital Securities and the Guarantor, notices of all Events of Default actually
known to a Responsible Officer of the Guarantee Trustee, unless such defaults
have been cured before the giving of such notice, provided, however,
that the Guarantee Trustee shall be protected in withholding such notice if and
so long as a Responsible Officer of the Guarantee Trustee in good faith
determines that the withholding of such notice is in the interests of the
Holders of the Capital Securities.

(b)           The
Guarantee Trustee shall not be deemed to have knowledge of any Event of Default
unless the Guarantee Trustee shall have received written notice from the
Guarantor or a Holder of the Capital Securities (except in the case of a
payment default), or a Responsible Officer of the Guarantee Trustee charged
with the administration of this Guarantee shall have obtained actual knowledge
thereof.

 8
 

ARTICLE
III

GUARANTEE
TRUSTEE

Section 3.1            Guarantee
Trustee; Eligibility.

(a)           There
shall at all times be a Guarantee Trustee which shall:

(i)            not be an Affiliate
of the Guarantor, and

(ii)           be a banking
corporation or national association organized and doing business under the laws
of the United States of America or any State or Territory thereof or of the
District of Columbia, or Person authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least fifty
million U.S. dollars ($50,000,000), and subject to supervision or examination
by Federal, State, Territorial or District of Columbia authority.  If such corporation or national association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the supervising or examining authority referred to above, then,
for the purposes of this Section 3.1(a)(ii), the combined capital and surplus
of such corporation or national association shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published.

(b)           If
at any time the Guarantee Trustee shall cease to be eligible to so act under
Section 3.1(a), the Guarantee Trustee shall immediately resign in the
manner and with the effect set forth in Section 3.2(c).

(c)           If
the Guarantee Trustee has or shall acquire any “conflicting interest” within
the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee
shall either eliminate such interest or resign to the extent and in the manner
provided by, and subject to this Guarantee.

Section 3.2            Appointment,
Removal and Resignation of the Guarantee Trustee.

(a)           Subject
to Section 3.2(b), the Guarantee Trustee may be appointed or removed without
cause at any time by the Guarantor except during an Event of Default.

(b)           The
Guarantee Trustee shall not be removed in accordance with Section 3.2(a) until
a Successor Guarantee Trustee has been appointed and has accepted such
appointment by written instrument executed by such Successor Guarantee Trustee
and delivered to the Guarantor.

(c)           The
Guarantee Trustee appointed to office shall hold office until a Successor
Guarantee Trustee shall have been appointed or until its removal or
resignation.  The Guarantee Trustee may
resign from office (without need for prior or subsequent accounting) by an
instrument in writing executed by the Guarantee Trustee and delivered to the
Guarantor, which resignation shall not take effect until a Successor Guarantee
Trustee has been appointed and has accepted such appointment by an instrument
in writing executed by such Successor Guarantee Trustee and delivered to the
Guarantor and the resigning Guarantee Trustee.

 9
 

(d)           If
no Successor Guarantee Trustee shall have been appointed and accepted
appointment as provided in this Section 3.2 within 60 days after
delivery of an instrument of removal or resignation, the Guarantee Trustee
resigning or being removed may petition any court of competent jurisdiction for
appointment of a Successor Guarantee Trustee. 
Such court may thereupon, after prescribing such notice, if any, as it
may deem proper, appoint a Successor Guarantee Trustee.

(e)           No
Guarantee Trustee shall be liable for the acts or omissions to act of any
Successor Guarantee Trustee.

(f)            Upon
termination of this Guarantee or removal or resignation of the Guarantee
Trustee pursuant to this Section 3.2, the Guarantor shall pay to the Guarantee
Trustee all amounts owing to the Guarantee Trustee under Sections 7.2 and
7.3 accrued to the date of such termination, removal or resignation.

ARTICLE
IV

GUARANTEE

Section 4.1            Guarantee.

(a)           The
Guarantor irrevocably and unconditionally agrees to pay in full to the Holders
the Guarantee Payments (without duplication of amounts theretofore paid by the
Issuer), as and when due, regardless of any defense (except the defense of
payment by the Issuer), right of set-off or counterclaim that the Issuer may
have or assert.  The Guarantor’s
obligation to make a Guarantee Payment may be satisfied by direct payment of
the required amounts by the Guarantor to the Holders or by causing the Issuer
to pay such amounts to the Holders.

(b)           The
Guarantor hereby also agrees to assume any and all Obligations of the Issuer
and in the event any such Obligation is not so assumed, subject to the terms
and conditions hereof, the Guarantor hereby irrevocably and unconditionally
guarantees to each Beneficiary the full payment, when and as due, of any and
all Obligations to such Beneficiaries. 
This Guarantee is intended to be for the benefit of, and to be
enforceable by, all such Beneficiaries, whether or not such Beneficiaries have
received notice hereof.

Section 4.2            Waiver
of Notice and Demand.

The Guarantor hereby waives notice of acceptance of
this Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.

Section 4.3            Obligations
Not Affected.

The obligations, covenants, agreements and duties of
the Guarantor under this Guarantee shall in no way be affected or impaired by
reason of the happening from time to time of any of the following:

 10
 

(a)           the
release or waiver, by operation of law or otherwise, of the performance or
observance by the Issuer of any express or implied agreement, covenant, term or
condition relating to the Capital Securities to be performed or observed by the
Issuer;

(b)           the
extension of time for the payment by the Issuer of all or any portion of the
Distributions, Optional Redemption Price, Special Redemption Price, Liquidation
Distribution or any other sums payable under the terms of the Capital
Securities or the extension of time for the performance of any other obligation
under, arising out of or in connection with, the Capital Securities (other than
an extension of time for payment of Distributions, Optional Redemption Price,
Special Redemption Price, Liquidation Distribution or other sum payable that
results from the extension of any interest payment period on the Debentures or
any extension of the maturity date of the Debentures permitted by the Indenture);

(c)           any
failure, omission, delay or lack of diligence on the part of the Holders to
enforce, assert or exercise any right, privilege, power or remedy conferred on
the Holders pursuant to the terms of the Capital Securities, or any action on
the part of the Issuer granting indulgence or extension of any kind;

(d)           the
voluntary or involuntary liquidation, dissolution, sale of any collateral,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of debt of, or other
similar proceedings affecting, the Issuer or any of the assets of the Issuer;

(e)           any
invalidity of, or defect or deficiency in, the Capital Securities;

(f)            the
settlement or compromise of any obligation guaranteed hereby or hereby
incurred; or

(g)           any
other circumstance whatsoever that might otherwise constitute a legal or
equitable discharge or defense of a guarantor, it being the intent of this
Section 4.3 that the obligations of the Guarantor hereunder shall be absolute
and unconditional under any and all circumstances.

There shall be no obligation of the Holders to give
notice to, or obtain consent of, the Guarantor with respect to the happening of
any of the foregoing.

Section 4.4            Rights
of Holders.

(a)           The
Holders of a Majority in liquidation amount of the Capital Securities have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Guarantee Trustee in respect of this Guarantee or to
direct the exercise of any trust or power conferred upon the Guarantee Trustee
under this Guarantee; provided, however, that (subject to
Section 2.1) the Guarantee Trustee shall have the right to decline to
follow any such direction if the Guarantee Trustee being advised by counsel
determines that the action or proceeding so directed may not lawfully be taken
or if the Guarantee Trustee in good faith by its board of directors or
trustees, executive committees or a trust committee of directors or trustees
and/or Responsible Officers shall determine that the action or proceedings so
directed would involve the Guarantee Trustee in personal liability.

 11

(b)           Any Holder of
Capital Securities may institute a legal proceeding directly against the
Guarantor to enforce the Guarantee Trustee’s rights under this Guarantee,
without first instituting a legal proceeding against the Issuer, the Guarantee
Trustee or any other Person.  The
Guarantor waives any right or remedy to require that any such action be brought
first against the Issuer, the Guarantee Trustee or any other Person before so
proceeding directly against the Guarantor.

Section 4.5            Guarantee
of Payment.

This Guarantee creates a guarantee of payment and not
of collection.

Section 4.6            Subrogation.

The Guarantor shall be subrogated to all (if any)
rights of the Holders of Capital Securities against the Issuer in respect of
any amounts paid to such Holders by the Guarantor under this Guarantee; provided,
however, that the Guarantor shall not (except to the extent required by
applicable provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Guarantee, if, after
giving effect to any such payment, any amounts are due and unpaid under this
Guarantee.  If any amount shall be paid
to the Guarantor in violation of the preceding sentence, the Guarantor agrees
to hold such amount in trust for the Holders and to pay over such amount to the
Holders.

Section 4.7            Independent
Obligations.

The Guarantor acknowledges that its obligations
hereunder are independent of the obligations of the Issuer with respect to the
Capital Securities and that the Guarantor shall be liable as principal and as
debtor hereunder to make Guarantee Payments pursuant to the terms of this
Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 4.3 hereof.

Section 4.8            Enforcement
by a Beneficiary.

A Beneficiary may enforce the obligations of the
Guarantor contained in Section 4.1(b) directly against the Guarantor and the
Guarantor waives any right or remedy to require that any action be brought
against the Issuer or any other person or entity before proceeding against the
Guarantor.  The Guarantor shall be
subrogated to all rights (if any) of any Beneficiary against the Issuer in
respect of any amounts paid to the Beneficiaries by the Guarantor under this
Guarantee; provided, however, that the Guarantor shall not
(except to the extent required by mandatory provisions of law) be entitled to
enforce or exercise any rights that it may acquire by way of subrogation or any
indemnity, reimbursement or other agreement, in all cases as a result of
payment under this Guarantee, if at the time of any such payment, and after
giving effect to such payment, any amounts are due and unpaid under this
Guarantee.

 12
 

ARTICLE V

LIMITATION OF TRANSACTIONS; SUBORDINATION

Section 5.1            Limitation
of Transactions.

So long as any Capital Securities remain outstanding,
if (a) there shall have occurred and be continuing an Event of Default or
a Declaration Event of Default, (b) the dollar amount of the Guarantor’s
premium volume from insurance policies in any calendar year fails to exceed 51%
of the Company’s premium volume from insurance policies in the previous
calendar year, (c) the Guarantor sells more than 51% of its rights to renew
insurance policies in any single transaction or series of related transactions,
(d) any Significant Subsidiary (as defined in Section 1-02(w) of
Regulation S-X to the Securities Act (the “Significant Subsidiaries”)) of the
Guarantor which is rated by A.M. Best Company, Inc. (x) receives a rating from
A.M. Best Guarantor Inc. of B- or lower; or (y) submits a request to withdraw
its rating by A.M Best Guarantor, Inc., (e) the Guarantor shall have
selected an Extension Period as provided in the Declaration and such period, or
any extension thereof, shall have commenced and be continuing, then the
Guarantor shall not and shall not permit any Affiliate of the Guarantor
controlled by the Guarantor to (x) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Guarantor’s or such Affiliate’s capital stock
(other than payments of dividends or distributions to the Guarantor or a
Subsidiary of the Guarantor) or make any guarantee payments with respect to the
foregoing; (y) make any payment of principal of or interest or premium, if
any, on or repay, repurchase or redeem any debt securities of the Guarantor or
any Affiliate of the Guarantor controlled by the Guarantor that rank pari passu in all respects with or junior in interest to the
Debentures; or (z) enter into any contracts with shareholders holding more than
10% of the outstanding shares of common stock of the Company (other than, with
respect to clauses (x) and (y) above, (i) repurchases, redemptions or
other acquisitions of shares of capital stock of the Guarantor or any
Subsidiary of the Guarantor in connection with any employment contract, benefit
plan or other similar arrangement with or for the benefit of one or more employees,
officers, directors or consultants, in connection with a dividend reinvestment
or stockholder stock purchase plan or in connection with the issuance of
capital stock of the Guarantor or of such Subsidiary (or securities convertible
into or exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the occurrence of the Event of Default,
Declaration Event of Default or Extension Period, as applicable, (ii) as a
result of any exchange or conversion of any class or series of the Guarantor’s
capital stock (or any capital stock of a Subsidiary of the Guarantor) for any
class or series of the Guarantor’s capital stock (or in the case of a
Subsidiary of the Guarantor, any class or series of such Subsidiary’s capital
stock) or of any class or series of the Guarantor’s indebtedness for any class
or series of the Guarantor’s capital stock (or in the case of indebtedness of a
Subsidiary of the Guarantor, of any class or series of such Subsidiary’s
indebtedness for any class or series of such Subsidiary’s capital stock),
(iii) the purchase of fractional interests in shares of the Guarantor’s
capital stock (or the capital stock of a Subsidiary of the Guarantor) pursuant
to the conversion or exchange provisions of such capital stock or the security
being converted or exchanged, (iv) any declaration of a dividend in
connection with any stockholders’ rights plan, or the issuance of rights, stock
or other property under any stockholders’ rights plan, or the redemption or repurchase
of rights pursuant thereto, (v) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the

 13
 

stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari passu with
or junior to such stock and any cash payments in lieu of fractional shares
issued in connection therewith, or (vi) payments under this Guarantee).

Section 5.2            Ranking.

This Guarantee will constitute an unsecured obligation
of the Guarantor and will rank subordinate and junior in right of payment to
all present and future Senior Indebtedness (as defined in the Indenture) of the
Guarantor.  The Guarantor’s obligations
in respect of this Guarantee shall rank pari
passu with the Guarantor’s obligations under the Guarantee Agreement
by and between (i) the Guarantor and State Street Bank and Trust Company of
Connecticut. National Association, dated as of December 4, 2002; (ii) the
Guarantor and Wells Fargo Bank, National Association, dated as of March 27,
2003; (iii) the Guarantor and Wilmington Trust Company, dated as of May 22,
2003; (iv) the Guarantor and U.S. Bank National Association, dated as of May
25, 2003; and (v) the Guarantor and U.S. Bank National Association, dated as of
October 29, 2003.  By their acceptance
thereof, each Holder of Capital Securities agrees to the foregoing provisions
of this Guarantee and the other terms set forth herein.

The right of the Guarantor to participate in any
distribution of assets of any of its Subsidiaries upon any such Subsidiary’s
liquidation or reorganization or otherwise is subject to the prior claims of
creditors of that Subsidiary, except to the extent the Guarantor may itself be
recognized as a creditor of that Subsidiary. 
Accordingly, the Guarantor’s obligations under this Guarantee will be
effectively subordinated to all existing and future liabilities of the
Guarantor’s Subsidiaries, and claimants should look only to the assets of the
Guarantor for payments hereunder.  This
Guarantee does not limit the incurrence or issuance of other secured or
unsecured debt of the Guarantor, including Senior Indebtedness of the
Guarantor, under any indenture that the Guarantor may enter into in the future
or otherwise.

ARTICLE
VI

TERMINATION

Section 6.1            Termination.

This Guarantee shall terminate as to the Capital
Securities (i) upon full payment of the Optional Redemption Price or
Special Redemption Price of all Capital Securities then outstanding,
(ii) upon the distribution of all of the Debentures to the Holders of all
of the Capital Securities or (iii) upon full payment of the amounts
payable in accordance with the Declaration upon dissolution of the Issuer.  This Guarantee will continue to be effective
or will be reinstated, as the case may be, if at any time any Holder of Capital
Securities must restore payment of any sums paid under the Capital Securities
or under this Guarantee.

 14
 

ARTICLE
VII

INDEMNIFICATION

Section 7.1            Exculpation.

(a)           No Indemnified
Person shall be liable, responsible or accountable in damages or otherwise to
the Guarantor or any Covered Person for any loss, damage or claim incurred by
reason of any act or omission performed or omitted by such Indemnified Person
in good faith in accordance with this Guarantee and in a manner that such
Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Guarantee or by law, except that
an Indemnified Person shall be liable for any such loss, damage or claim
incurred by reason of such Indemnified Person’s negligence or willful
misconduct with respect to such acts or omissions.

(b)           An Indemnified
Person shall be fully protected in relying in good faith upon the records of
the Issuer or the Guarantor and upon such information, opinions, reports or
statements presented to the Issuer or the Guarantor by any Person as to matters
the Indemnified Person reasonably believes are within such other Person’s
professional or expert competence and who, if selected by such Indemnified
Person, has been selected with reasonable care by such Indemnified Person,
including information, opinions, reports or statements as to the value and
amount of the assets, liabilities, profits, losses, or any other facts
pertinent to the existence and amount of assets from which Distributions to
Holders of Capital Securities might properly be paid.

Section 7.2            Indemnification.

(a)           The Guarantor agrees
to indemnify each Indemnified Person for, and to hold each Indemnified Person
harmless against, any and all loss, liability, damage, claim or expense
incurred without negligence or willful misconduct on the part of the
Indemnified Person, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including, but not limited to,
the costs and expenses (including reasonable legal fees and expenses) of the
Indemnified Person defending itself against, or investigating, any claim or
liability in connection with the exercise or performance of any of the Indemnified
Person’s powers or duties hereunder.  The
obligation to indemnify as set forth in this Section 7.2 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

(b)           Promptly after
receipt by an Indemnified Person under this Section 7.2 of notice of the
commencement of any action, such Indemnified Person will, if a claim in respect
thereof is to be made against the Guarantor under this Section 7.2, notify
the Guarantor in writing of the commencement thereof; but the failure so to
notify the Guarantor (i) will not relieve the Guarantor from liability
under paragraph (a) above unless and to the extent that the Guarantor did
not otherwise learn of such action and such failure results in the forfeiture
by the Guarantor of substantial rights and defenses and (ii) will not, in
any event, relieve the Guarantor from any obligations to any Indemnified Person
other than the indemnification obligation provided in paragraph (a)
above.  The Guarantor shall be entitled
to appoint counsel of the Guarantor’s 

 15
 

choice at the
Guarantor’s expense to represent the Indemnified Person in any action for which
indemnification is sought (in which case the Guarantor shall not thereafter be
responsible for the fees and expenses of any separate counsel retained by the
Indemnified Person or Persons except as set forth below); provided, however,
that such counsel shall be reasonably satisfactory to the Indemnified
Person.  Notwithstanding the Guarantor’s
election to appoint counsel to represent the Guarantor in an action, the
Indemnified Person shall have the right to employ separate counsel (including
local counsel), and the Guarantor shall bear the reasonable fees, costs and
expenses of such separate counsel if (i) the use of counsel chosen by the
Guarantor to represent the Indemnified Person would present such counsel with a
conflict of interest, (ii) the actual or potential defendants in, or
targets of, any such action include both the Indemnified Person and the
Guarantor and the Indemnified Person shall have reasonably concluded that there
may be legal defenses available to it and/or other Indemnified Person(s) which
are different from or additional to those available to the Guarantor,
(iii) the Guarantor shall not have employed counsel satisfactory to the
Indemnified Person to represent the Indemnified Person within a reasonable time
after notice of the institution of such action or (iv) the Guarantor shall
authorize the Indemnified Person to employ separate counsel at the expense of
the Guarantor.  The Guarantor will not,
without the prior written consent of the Indemnified Persons, settle or
compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which indemnification
or contribution may be sought hereunder (whether or not the Indemnified Persons
are actual or potential parties to such claim or action) unless such
settlement, compromise or consent includes an unconditional release of each
Indemnified Person from all liability arising out of such claim, action, suit
or proceeding.

Section 7.3            Compensation;
Reimbursement of Expenses.

The Guarantor agrees:

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

(b)           except as otherwise
expressly provided herein, to reimburse the Guarantee Trustee upon request for
all reasonable expenses, disbursements and advances incurred or made by it in
accordance with any provision of this Guarantee (including the reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its
negligence or willful misconduct.

The provisions of this Section 7.3 shall survive
the resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

 16
 

ARTICLE
VIII

MISCELLANEOUS

Section 8.1            Successors
and Assigns.

All guarantees and agreements contained in this
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Capital Securities then outstanding. 
Except in connection with any merger or consolidation of the Guarantor
with or into another entity or any sale, transfer or lease of the Guarantor’s
assets to another entity, in each case, to the extent permitted under the
Indenture, the Guarantor may not assign its rights or delegate its obligations
under this Guarantee without the prior approval of the Holders of at least a
Majority in liquidation amount of the Capital Securities.

Section 8.2            Amendments.

Except with respect to any changes that do not
adversely affect the rights of Holders of the Capital Securities in any
material respect (in which case no consent of Holders will be required), this
Guarantee may be amended only with the prior approval of the Holders of not
less than a Majority in liquidation amount of the Capital Securities and the
Guarantor.  The provisions of the
Declaration with respect to amendments thereof apply to the giving of such
approval.

Section 8.3            Notices.

All notices provided for in this Guarantee shall be in
writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by first class mail, as follows:

(a)           If given to the
Guarantee Trustee, at the Guarantee Trustee’s mailing address set forth below
(or such other address as the Guarantee Trustee may give notice of to the
Holders of the Capital Securities and the Guarantor):

Wilmington Trust Company

1100 North Market Street

Wilmington, Delaware 19890-1600

Attention: Corporate Trust Administration

Telecopy:  302-636-4140

(b)           If given to the
Guarantor, at the Guarantor’s mailing address set forth below (or such other
address as the Guarantor may give notice of to the Holders of the Capital
Securities and to the Guarantee Trustee):

 17
 

Universal American
Financial Corp.

6 International Drive, Suite 190

Rye Brook, New York 10573

Attention:  Robert A. Waegelein

Telecopy:  (914) 934-2949

(c)           If given to any
Holder of the Capital Securities, at the address set forth on the books and
records of the Issuer.

All such notices shall be deemed to have been given
when received in person, telecopied with receipt confirmed, or mailed by first
class mail, postage prepaid, except that if a notice or other document is
refused delivery or cannot be delivered because of a changed address of which
no notice was given, such notice or other document shall be deemed to have been
delivered on the date of such refusal or inability to deliver.

Section 8.4            Benefit.

This Guarantee is solely for the benefit of the
Beneficiaries and, subject to Section 2.1(a), is not separately transferable
from the Capital Securities.

Section 8.5            Governing
Law.

PURSUANT TO SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK, THIS GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Section 8.6            Counterparts.

This Guarantee may be executed in one or more
counterparts, each of which shall be an original, but all of which taken
together shall constitute one and the same instrument.

Section 8.7            Separability.

In case one or more of the provisions contained in
this Guarantee shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Guarantee, but this Guarantee
shall be construed as if such invalid or illegal or unenforceable provision had
never been contained herein.

Signatures appear on the following page

 18
 

THIS GUARANTEE is executed as of the day and
year first above written.

	
  

  	
   

  	
  UNIVERSAL AMERICAN FINANCIAL CORP.,

  as Guarantor

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Robert A. Waegelein

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Robert A. Waegelein

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Executive Vice President and Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILMINGTON TRUST COMPANY, as Guarantee

  Trustee

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Christopher J. Slaybaugh

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Christopher J. Slaybaugh

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Senior Financial Services Officer

  

 

 19Exhibit 4.1(b)

EXECUTION COPY

SMURFIT-STONE CONTAINER ENTERPRISES, INC.,

as Issuer

and

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

as Trustee

Indenture

Dated as of March 26, 2007

8.000% Senior Notes due 2017

CROSS-REFERENCE TABLE

 

	
  TIA Sections

  	
   

  	
  Indenture Sections

  
	
  § 310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (b)

  	
   

  	
  7.03; 7.08

  
	
  § 311

  	
  (a)

  	
   

  	
  7.03

  
	
   

  	
  (b)

  	
   

  	
  7.03

  
	
  § 312

  	
  (a)

  	
   

  	
  2.04

  
	
   

  	
  (b)

  	
   

  	
  11.02

  
	
   

  	
  (c)

  	
   

  	
  11.02

  
	
  § 313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)(2)

  	
   

  	
  7.07

  
	
   

  	
  (c)

  	
   

  	
  7.05; 7.06; 11.02

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  § 314

  	
  (a)

  	
   

  	
  7.05; 11.02

  
	
   

  	
  (a)(4)

  	
   

  	
  4.17; 11.02

  
	
   

  	
  (c)(1)

  	
   

  	
  11.03

  
	
   

  	
  (c)(2)

  	
   

  	
  11.03

  
	
   

  	
  (e)

  	
   

  	
  4.17; 11.04

  
	
  § 315

  	
  (a)

  	
   

  	
  7.02

  
	
   

  	
  (b)

  	
   

  	
  7.05; 11.02

  
	
   

  	
  (c)

  	
   

  	
  7.02

  
	
   

  	
  (d)

  	
   

  	
  7.02

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  § 316

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
   

  	
  (c)

  	
   

  	
  9.03

  
	
  § 317

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  2.05

  
	
  § 318

  	
  (a)

  	
   

  	
  11.01

  
	
   

  	
  (c)

  	
   

  	
  11.01

  

 

Note:                   The
Cross-Reference Table shall not for any purpose be deemed to be a part of the
Indenture

 i

	
  ARTICLE One

  	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01. Definitions.

  	
   

  	
  1

  
	
  SECTION 1.02.
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  25

  
	
  SECTION 1.03. Rules of
  Construction

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE Two

  	
   

  	
   

  
	
  THE NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01. Form and
  Dating

  	
   

  	
  26

  
	
  SECTION 2.02. Restrictive
  Legends

  	
   

  	
  27

  
	
  SECTION 2.03. Execution,
  Authentication and Denominations

  	
   

  	
  28

  
	
  SECTION 2.04. Registrar
  and Paying Agent

  	
   

  	
  29

  
	
  SECTION 2.05. Paying Agent
  to Hold Money in Trust

  	
   

  	
  30

  
	
  SECTION 2.06. Transfer and
  Exchange

  	
   

  	
  30

  
	
  SECTION 2.07. Book-Entry
  Provisions for Global Notes

  	
   

  	
  31

  
	
  SECTION 2.08. Special
  Transfer Provisions

  	
   

  	
  32

  
	
  SECTION 2.09. Replacement
  Notes

  	
   

  	
  35

  
	
  SECTION 2.10. Outstanding
  Notes

  	
   

  	
  36

  
	
  SECTION 2.11. Temporary
  Notes

  	
   

  	
  36

  
	
  SECTION 2.12. Cancellation

  	
   

  	
  37

  
	
  SECTION 2.13. CUSIP
  Numbers

  	
   

  	
  37

  
	
  SECTION 2.14. Defaulted
  Interest

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE Three

  	
   

  	
   

  
	
  REDEMPTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.
  Applicability

  	
   

  	
  37

  
	
  SECTION 3.02. Notices to
  Trustee

  	
   

  	
  37

  
	
  SECTION 3.03. Selection of
  Notes to Be Redeemed

  	
   

  	
  37

  
	
  SECTION 3.04. Notice of
  Redemption

  	
   

  	
  38

  
	
  SECTION 3.05. Effect of
  Notice of Redemption

  	
   

  	
  39

  
	
  SECTION 3.06. Deposit of
  Redemption Price

  	
   

  	
  39

  
	
  SECTION 3.07. Payment of
  Notes Called for Redemption

  	
   

  	
  39

  
	
  SECTION 3.08. Notes
  Redeemed in Part

  	
   

  	
  39

  
	
  SECTION 3.09. Optional
  Redemption

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE Four

  	
   

  	
   

  
	
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01. Payment of
  Notes

  	
   

  	
  40

  
	
  SECTION 4.02. Maintenance
  of Office or Agency

  	
   

  	
  41

  
	
  SECTION 4.03. Limitation
  on Indebtedness

  	
   

  	
  41

  
	
  SECTION 4.04. Limitation
  on Restricted Payments

  	
   

  	
  44

  
	
  SECTION 4.05. Limitation
  on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries

  	
   

  	
  47

  
	
  SECTION 4.06. Limitation
  on the Issuance and Sale of Capital Stock of Restricted Subsidiaries

  	
   

  	
  49

  

 

 i
 

 

	
  SECTION 4.07. Limitation
  on Issuances of Guarantees by Restricted Subsidiaries

  	
   

  	
  49

  
	
  SECTION 4.08. Limitation
  on Transactions with Stockholders and Affiliates

  	
   

  	
  50

  
	
  SECTION
  4.09. Limitation on
  Liens

  	
   

  	
  51

  
	
  SECTION 4.10. Limitation
  on Sale-Leaseback Transactions

  	
   

  	
  52

  
	
  SECTION 4.11. Limitation on
  Asset Sales

  	
   

  	
  53

  
	
  SECTION 4.12. Repurchase
  of Notes upon a Change of Control

  	
   

  	
  54

  
	
  SECTION 4.13. Existence

  	
   

  	
  55

  
	
  SECTION 4.14. Payment of
  Taxes and Other Claims

  	
   

  	
  55

  
	
  SECTION 4.15. Maintenance
  of Properties and Insurance

  	
   

  	
  55

  
	
  SECTION 4.16. Notice of
  Defaults

  	
   

  	
  56

  
	
  SECTION 4.17. Compliance
  Certificates

  	
   

  	
  56

  
	
  SECTION 4.18. Commission
  Reports and Reports to Holders

  	
   

  	
  56

  
	
  SECTION 4.19. Waiver of
  Stay, Extension or Usury Laws

  	
   

  	
  57

  
	
  SECTION 4.20.
  Intentionally Omitted

  	
   

  	
  57

  
	
  SECTION 4.21.
  Intentionally Omitted

  	
   

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE Five

  	
   

  	
   

  
	
  SUCCESSOR CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01. When Issuer
  May Merge, Etc.

  	
   

  	
  57

  
	
  SECTION 5.02. Successor
  Substituted

  	
   

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE Six

  	
   

  	
   

  
	
  DEFAULT AND REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01. Events of
  Default

  	
   

  	
  58

  
	
  SECTION 6.02. Acceleration

  	
   

  	
  60

  
	
  SECTION 6.03. Other
  Remedies

  	
   

  	
  60

  
	
  SECTION 6.04. Waiver of
  Past Defaults

  	
   

  	
  61

  
	
  SECTION 6.05. Control by
  Majority

  	
   

  	
  61

  
	
  SECTION
  6.06. Limitation on
  Suits

  	
   

  	
  61

  
	
  SECTION 6.07. Rights of
  Holders 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

  	
   

  	
  62

  
	
  SECTION 6.11. Undertaking
  for Costs

  	
   

  	
  63

  
	
  SECTION 6.12. Restoration
  of Rights and Remedies

  	
   

  	
  63

  
	
  SECTION 6.13. Rights and
  Remedies Cumulative

  	
   

  	
  63

  
	
  SECTION 6.14. Delay or
  Omission Not Waiver

  	
   

  	
  63

  
	
   

  	
   

  	
   

  
	
  ARTICLE Seven

  	
   

  	
   

  
	
  TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01. General

  	
   

  	
  64

  
	
  SECTION 7.02. Certain
  Rights of Trustee

  	
   

  	
  64

  
	
  SECTION 7.03. Individual
  Rights of Trustee

  	
   

  	
  65

  
	
  SECTION 7.04. Trustee’s
  Disclaimer

  	
   

  	
  65

  

 

 ii
 

 

	
  SECTION 7.05. Notice of
  Default

  	
   

  	
  65

  
	
  SECTION 7.06. Reports by
  Trustee to Holders

  	
   

  	
  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

  	
   

  	
  68

  
	
  SECTION 7.11. Money Held
  in Trust

  	
   

  	
  68

  
	
   

  	
   

  	
   

  
	
  ARTICLE Eight

  	
   

  	
   

  
	
  DISCHARGE OF INDENTURE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01. Termination
  of Issuer’s Obligations

  	
   

  	
  68

  
	
  SECTION 8.02. Defeasance
  and Discharge of Indenture

  	
   

  	
  69

  
	
  SECTION 8.03. Defeasance
  of Certain Obligations

  	
   

  	
  71

  
	
  SECTION 8.04. Application
  of Trust Money

  	
   

  	
  72

  
	
  SECTION 8.05. Repayment to
  Issuer

  	
   

  	
  73

  
	
  SECTION 8.06.
  Reinstatement

  	
   

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE Nine

  	
   

  	
   

  
	
  AMENDMENTS, SUPPLEMENTS AND WAIVERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01. Without
  Consent of Holders

  	
   

  	
  73

  
	
  SECTION 9.02. With Consent
  of Holders

  	
   

  	
  74

  
	
  SECTION 9.03. Revocation
  and Effect of Consent

  	
   

  	
  75

  
	
  SECTION 9.04. Notation on
  or Exchange of Notes

  	
   

  	
  75

  
	
  SECTION 9.05. Trustee to
  Sign Amendments, Etc.

  	
   

  	
  76

  
	
  SECTION 9.06. Conformity
  with Trust Indenture Act

  	
   

  	
  76

  
	
   

  	
   

  	
   

  
	
  ARTICLE Ten

  	
   

  	
   

  
	
  INTENTIONALLY OMITTED

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE Eleven

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01. Trust
  Indenture Act of 1939

  	
   

  	
  76

  
	
  SECTION 11.02. Notices

  	
   

  	
  76

  
	
  SECTION 11.03. Certificate
  and Opinion as to Conditions Precedent

  	
   

  	
  77

  
	
  SECTION 11.04. Statements
  Required in Certificate or Opinion

  	
   

  	
  78

  
	
  SECTION 11.05. Rules by
  Trustee, Paying Agent or Registrar

  	
   

  	
  78

  
	
  SECTION 11.06. Payment
  Date Other Than a Business Day

  	
   

  	
  78

  
	
  SECTION 11.07. Governing
  Law

  	
   

  	
  78

  
	
  SECTION 11.08. No Adverse
  Interpretation of Other Agreements

  	
   

  	
  78

  
	
  SECTION 11.09. No Recourse
  Against Others

  	
   

  	
  78

  
	
  SECTION 11.10. Successors

  	
   

  	
  79

  
	
  SECTION 11.11. Counterparts

  	
   

  	
  79

  
	
  SECTION 11.12. Separability

  	
   

  	
  79

  
	
  SECTION 11.13. Table of
  Contents, Headings, Etc.

  	
   

  	
  79

  

 

 iii
 

 

	
  SECTION 11.14. Waiver of
  Jury Trial

  	
   

  	
  79

  
	
  SECTION 11.15. Force
  Majeure

  	
   

  	
  79

  

 

 iv

INDENTURE, dated as of March 26, 2007, among
SMURFIT-STONE CONTAINER ENTERPRISES, INC., a Delaware corporation (the “Issuer”)
and THE BANK OF NEW YORK TRUST COMPANY, N.A., a national banking association,
as trustee (the “Trustee”).

RECITALS

The Issuer has duly authorized the execution and
delivery of this Indenture to provide for the issuance from time to time of its
unsecured notes (herein called the “Notes”) to be issued as in this
Indenture provided.  All things necessary
to make this Indenture a valid agreement of the Issuer, in accordance with its
terms, have been done.

This Indenture is subject to, and shall be governed by, the provisions
of the Trust Indenture Act of 1939, as amended, that are required to be a part
of and to govern indentures qualified under the Trust Indenture Act of 1939, as
amended.

AND THIS INDENTURE FURTHER WITNESSETH

For and in consideration of the premises and the
purchase of the Notes by the Holders thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Notes, as
follows.

ARTICLE
One

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01.  Definitions.

“Acquired Indebtedness” means Indebtedness of a Person or any of
its Restricted Subsidiaries existing at the time such Person becomes a
Restricted Subsidiary of the Issuer or at the time it merges or consolidates
with or into the Issuer or any of its Restricted Subsidiaries or is assumed in
connection with an Asset Acquisition by the Issuer or a Restricted Subsidiary
of the Issuer and in each case whether or not Incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary of the Issuer or such acquisition, merger or
consolidation (other than Indebtedness Incurred as consideration in, or to
provide all or any of the funds utilized to consummate, the transaction or
series of related transactions pursuant to which such Person became a
Restricted Subsidiary of the Issuer); provided
that Indebtedness of such Person which is redeemed, defeased, retired or
otherwise repaid at the time of or immediately upon consummation of the
transactions by which such Person becomes a Restricted Subsidiary or such Asset
Acquisition shall not be Acquired Indebtedness.

“Additional Interest” means interest payable by the Issuer to
the Holders of Notes pursuant to Section 2(d) of the Registration Rights
Agreement.

“Adjusted Consolidated Net Income” means, for any period, the
aggregate net income (or loss) of the Issuer and its Restricted Subsidiaries on
a consolidated basis for such period taken as a single accounting period
determined in conformity with GAAP; provided
that 

 1
 

the following items shall be excluded in computing
Adjusted Consolidated Net Income (without duplication):

(i)            the net income of any Person that is
not a Restricted Subsidiary, except to the extent of the amount of dividends or
other distributions actually paid to the Issuer or any of its Restricted
Subsidiaries by such Person during such period;

(ii)           the net income (or loss) of any
Person accrued prior to the date it becomes a Restricted Subsidiary or is
merged into or consolidated with the Issuer or any of its Restricted
Subsidiaries or all or substantially all of the property and assets of such
Person are acquired by the Issuer or any of its Restricted Subsidiaries;

(iii)          the net income of any Restricted
Subsidiary to the extent that the declaration or payment of dividends or
similar distributions by such Restricted Subsidiary of such net income is not
at the time permitted by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to such Restricted Subsidiary;

(iv)          any gains or losses (on an after-tax
basis) attributable to Asset Sales;

(v)           solely for purposes of calculating
the amount of Restricted Payments that may be made pursuant to clause (C)
of the first paragraph of Section 4.04, any amount paid or accrued as
dividends on preferred stock of the Issuer or SSCC owned by Persons other than
the Issuer and any of its Restricted Subsidiaries;

(vi)          all extraordinary gains and
extraordinary losses (on an after-tax basis);

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

(viii)        any non-cash compensation charges,
including any such charges arising from stock options.

“Adjusted Consolidated Net Tangible Assets” means the total
amount of assets of the Issuer and its Restricted Subsidiaries (less applicable
depreciation, amortization and other valuation reserves), except to the extent
resulting from write-ups of capital assets (excluding write-ups in connection
with accounting for acquisitions in conformity with GAAP), after deducting
therefrom (i) all current liabilities of the Issuer and its Restricted
Subsidiaries (excluding intercompany items) and (ii) all goodwill, trade
names, trademarks, patents, unamortized debt discount and expense and other
like intangibles, all as set forth on the most recent quarterly or annual
consolidated balance sheet of the Issuer and its Restricted Subsidiaries,
prepared in conformity with GAAP.

“Affiliate” means, as applied to any Person, any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person.  For
purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling,” “controlled by” and “under common control with”), as
applied to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the 

 2
 

management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

“Agent” means any Registrar, Co-Registrar, Paying Agent or
authenticating agent.

“Agent Members” has the meaning provided in Section 2.07(a).

“Asset Acquisition” means (i) an investment by the Issuer
or any of its Restricted Subsidiaries in any other Person pursuant to which
such Person shall become a Restricted Subsidiary or shall be merged into or
consolidated with the Issuer or any of its Restricted Subsidiaries; provided that such Person’s primary
business is related, ancillary or complementary to the businesses of the Issuer
and its Restricted Subsidiaries on the date of such investment, except to the
extent as would not be material to the Issuer and its Restricted Subsidiaries
taken as a whole or (ii) an acquisition by the Issuer or any of its
Restricted Subsidiaries of the property and assets of any Person other than the
Issuer or any of its Restricted Subsidiaries that constitute substantially all
of a division or line of business of such Person; provided that the property and assets acquired are related,
ancillary or complementary to the businesses of the Issuer and its Restricted
Subsidiaries on the date of such acquisition, except to the extent as would not
be material to the Issuer and its Restricted Subsidiaries taken as a whole.

“Asset Disposition” means the sale or other disposition by the
Issuer or any of its Restricted Subsidiaries (other than to the Issuer or
another Restricted Subsidiary) of (i) all or substantially all of the
Capital Stock of any Restricted Subsidiary or (ii) all or substantially
all of the assets that constitute a division or line of business of the Issuer
or any of its Restricted Subsidiaries.

“Asset Sale” means any sale, transfer or other disposition
(including by way of merger, consolidation or sale-leaseback transaction) in
one transaction or a series of related transactions by the Issuer or any of its
Restricted Subsidiaries to any Person other than the Issuer or any of its
Restricted Subsidiaries of (i) all or any of the Capital Stock of any
Restricted Subsidiary, (ii) all or substantially all of the property and
assets of an operating unit or business of the Issuer or any of its Restricted
Subsidiaries or (iii) any other property and assets (other than the
Capital Stock or other Investment in an Unrestricted Subsidiary) of the Issuer
or any of its Restricted Subsidiaries outside the ordinary course of business
of the Issuer or such Restricted Subsidiary and, in each case, that is not
governed by Section 5.01; provided
that “Asset Sale” shall not include (a) sales or other dispositions of
inventory, receivables (and related assets of the type specified in the
definition of “Qualified Securitization Transaction”) and other current assets,
(b) sales, transfers or other dispositions of assets constituting a
Restricted Payment permitted to be made under Section 4.04, the making
of a Permitted Investment or the liquidation of cash equivalents, (c) the sale,
transfer or other disposition of all or substantially all of the assets of the
Issuer as permitted under and in accordance with the provisions of Section
5.01, (d) any sale or other disposition of obsolete or worn out assets
or assets no longer used or useful in the business of the Issuer or any of its
Restricted Subsidiaries, (e) sales or other dispositions of assets for
consideration at least equal to the fair market value of the assets sold or
disposed of, to the extent that the consideration received would satisfy clause
(i)(B) of the third paragraph of 

 3
 

Section 4.11 and (f) any single
transaction or series of related transactions that involves assets having a
fair market value of less than $10.0 million.

“Attributable Indebtedness” means, when used in connection with
a sale-leaseback transaction referred to in Section 4.10, at any date of
determination, the product of (i) the net proceeds from such sale-leaseback
transaction and (ii) a fraction, the numerator of which is the number of full
years of the term of the lease relating to the property involved in such
sale-leaseback transaction (without regard to any options to renew or extend
such term) remaining at the date of the making of such computation and the
denominator of which is the number of full years of the term of such lease
(without regard to any options to renew or extend such term) measured from the
first day of such term.

“Average Life” means, at any date of determination with respect
to any debt security, the quotient obtained by dividing (i) the sum of the
products of (a) the number of years from such date of determination to the
dates of each successive scheduled principal payment of such debt security and
(b) the amount of such principal payment by (ii) the sum of all such
principal payments.

“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 such term is used in
Section 13(d)(3) of the Exchange Act), such “person” shall 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.

“Board of Directors” means, with respect to any Person, the
Board of Directors of such Person or any duly authorized committee of such
Board of Directors.  Unless otherwise
indicated, the “Board of Directors” refers to the Board of Directors of the
Issuer.

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

“Box Plant Financing” means the Issuer’s 8.45% mortgage notes
due September 1, 2007 secured by the real property and improvements comprising
certain of the Issuer’s corrugated container plants.

“Business Day” means any day except a Saturday, Sunday or other
day on which commercial banks in The City of New York, or in the city of the
Corporate Trust Office of the Trustee, are authorized by law to close.

“Capital Stock” means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) in equity of such Person, whether outstanding on
the Closing Date or issued thereafter, including, without limitation, all
common stock and preferred stock.

“Capitalized Lease” means, as applied to any Person, any lease
of any property (whether real, personal or mixed) of which the discounted
present value of the rental obligations 

 4
 

of such Person as lessee, in conformity with GAAP, is
required to be capitalized on the balance sheet of such Person.

“Capitalized Lease Obligations” means the discounted present
value of the rental obligations under a Capitalized Lease.

“Change of Control” means such time as (i) a “person” or “group”
(within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) other
than SSCC becomes the ultimate “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act) of more than 50% of the total voting power of the
Voting Stock of the Issuer on a fully diluted basis, including, without limitation,
by way of an acquisition of all or substantially all of the assets of the
Issuer; or (ii) individuals who on the Closing Date constitute the Board
of Directors of the Issuer (together with any new directors whose election by
the Board of Directors or whose nomination by the Board of Directors for
election by the Issuer’s stockholders was approved by a vote of at least a
majority of the members of the Board of Directors of the Issuer then in office
who either were members of the Board of Directors on the Closing Date or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the members of the Board of Directors of the
Issuer then in office.

“Closing Date” means the date on which the initial Notes are
originally issued under this Indenture.

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

“Committee of the Board” means a committee of the Board of
Directors of SSCC consisting of independent directors of SSCC for the purpose of
reviewing and approving certain transactions involving affiliates and other
related parties.

“Commodity Agreements” means, in respect of a Person, any
futures or forward contract, commodity swap agreement, commodity option
agreement or other similar agreement or arrangement designed to protect such
Person against fluctuations in commodity prices.

“Common Stock” means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) of such Person’s equity, other than Preferred
Stock of such Person, whether outstanding on the Closing Date or issued
thereafter, including, without limitation, all series and classes of such
common stock.

“Consolidated EBITDA” means, for any period, Adjusted
Consolidated Net Income for such period plus, to the extent such amount was
deducted in calculating such Adjusted Consolidated Net Income:  (i) Consolidated Interest Expense,
(ii) income taxes (other than income taxes (either positive or negative)
attributable to extraordinary and non-recurring gains or losses or sales of
assets), (iii) depreciation and depletion expense, (iv) amortization
expense, (v) restructuring charges, (vi) non-recurring fees and
expenses incurred in connection with the consummation of any acquisition in an
aggregate amount not to exceed 5% of the total 

 5
 

consideration for such acquisition; and (vii) all
other non-cash items reducing Adjusted Consolidated Net Income (other than
items that will require cash payments and for which an accrual or reserve is,
or is required by GAAP to be, made), less all non-cash items increasing
Adjusted Consolidated Net Income other than accrual of revenue in the ordinary
course of business, all as determined on a consolidated basis for the Issuer
and its Restricted Subsidiaries in conformity with GAAP; provided that, if any Restricted
Subsidiary is not a Wholly Owned Restricted Subsidiary, Consolidated EBITDA
shall be reduced (to the extent not otherwise reduced in accordance with GAAP)
by an amount equal to (A) the amount of the Adjusted Consolidated Net
Income attributable to such Restricted Subsidiary multiplied by (B) the
percentage ownership interest in the income of such Restricted Subsidiary not
owned on the last day of such period by the Issuer or any of its Restricted
Subsidiaries.

“Consolidated Interest Expense” means, for any period, the
aggregate amount of interest in respect of Indebtedness (including, without
limitation, amortization of original issue discount on any Indebtedness and the
interest portion of any deferred payment obligation, calculated in accordance
with the effective interest method of accounting; all commissions, discounts
and other fees and charges owed with respect to letters of credit and bankers’
acceptance financing; the net costs associated with Interest Rate Agreements
(provided that if Interest Rate Agreements result in net benefits rather than
costs, such benefits shall be credited in determining Consolidated Interest
Expense unless, pursuant to GAAP, such net benefits are otherwise reflected in
Adjusted Consolidated Net Income); and in respect of Indebtedness that is
Guaranteed or secured by the Issuer or any of its Restricted Subsidiaries) and
all but the principal component of rentals in respect of Capitalized Lease
Obligations paid, accrued or scheduled to be paid or to be accrued by the
Issuer and its Restricted Subsidiaries during such period; excluding, however, (i) any amount of such interest of any
Restricted Subsidiary if the net income of such Restricted Subsidiary is
excluded in the calculation of Adjusted Consolidated Net Income pursuant to
clause (iii) of the definition thereof (but only in the same proportion as the
net income of such Restricted Subsidiary is excluded from the calculation of
Adjusted Consolidated Net Income pursuant to clause (iii) of the definition
thereof) and (ii) any premiums, fees and expenses (and any amortization
thereof) payable in connection with the offering of the Notes, all as
determined on a consolidated basis (without taking into account Unrestricted
Subsidiaries) in conformity with GAAP.

“Consolidated Net Worth” means, with respect to the Issuer at
any date of determination, stockholder’s equity as set forth on the most
recently available quarterly or annual consolidated balance sheet of the Issuer
and its Restricted Subsidiaries (which shall be as of a date not more than 90
days prior to the date of such computation, and which shall not take into
account Unrestricted Subsidiaries), less any amounts attributable to Disqualified
Stock or any equity security convertible into or exchangeable for Indebtedness,
the cost of treasury stock and the principal amount of any promissory notes
receivable from the sale of the Capital Stock of the Issuer or any of its
Restricted Subsidiaries, each item to be determined in conformity with GAAP
(excluding the effects of foreign currency exchange adjustments under Financial
Accounting Standards Board Statement of Financial Accounting Standards
No. 52).

“Corporate Trust Office” means the office of the Trustee at
which the corporate trust business of the Trustee shall, at any particular
time, be principally administered, which 

 6
 

office is, at the date of this Indenture, located at 2
North LaSalle St., Suite 1020, Chicago, IL 60602; Attention:  Corporate Trust Administration.

“Credit Agreement” means the Credit Agreement, dated as of
November 1, 2004, by and among Smurfit-Stone Container Corporation, as
guarantor, Smurfit-Stone Container Enterprises, Inc. and Smurfit-Stone
Container Canada Inc., as borrowers, the financial institutions from time to
time party thereto, JPMorgan Chase Bank, N.A., as Senior Agent, Deposit Account
Agent and Deposit Funded Facility Facing Agent, 
Deutsche Bank Trust Company Americas, as Senior Agent, Administrative Agent,
Collateral Agent, Swingline Lender and Revolving Facility Facing Agent, and
Deutsche Bank AG, Canada Branch, as Canadian Administrative Agent and Revolving
(Canadian) Facility Facing Agent, as lenders, together with all agreements,
instruments and documents executed or delivered pursuant thereto or in
connection therewith (including, without limitation, any promissory notes,
Guarantees and security documents), as such agreements, instruments and
documents may be amended (including, without limitation, any amendment and
restatement thereof), supplemented, extended, renewed, replaced or otherwise
modified from time to time, including, without limitation, any agreement
increasing the amount of, extending the maturity of, refinancing (in whole or
in part) or otherwise restructuring (including, but not limited to, by the
inclusion of additional borrowers or guarantors thereof or by the addition of
collateral or other credit enhancement to support the obligations thereunder)
all or any portion of the Indebtedness under such agreement or any successor
agreement or agreements.

“Currency Agreement” means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement.

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

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

“Designated Noncash Consideration” means any non-cash
consideration received by the Issuer or one of its Restricted Subsidiaries in
connection with an Asset Sale that is designated as Designated Noncash
Consideration pursuant to an Officers’ Certificate executed by the principal
executive officer or the principal financial officer of the Issuer or such
Restricted Subsidiary.  Such Officers’
Certificate shall state the basis of the valuation, conducted pursuant to
clause (c) of the second paragraph of Section 4.11, which shall be a
report of a nationally recognized investment banking firm with respect to the
receipt in one or a series of related transactions of Designated Noncash
Consideration with a fair market value in excess of $50 million.  A particular item of Designated Noncash
Consideration shall no longer be considered to be outstanding when it has been
sold for cash or redeemed or paid in full in the case of non-cash consideration
in the form of promissory notes or equity.

“Disqualified Stock” means any class or series of Capital Stock
of any Person that by its terms or otherwise is (i) required to be
redeemed prior to the Stated Maturity of any outstanding Notes,
(ii) redeemable at the option of the holder of such class or series of
Capital Stock at any time prior to the Stated Maturity of any outstanding Notes
or (iii) convertible into or 

 7
 

exchangeable for Capital Stock referred to in
clause (i) or (ii) above or Indebtedness having a scheduled maturity
prior to the Stated Maturity of any outstanding Notes; provided that any Capital Stock that would
not constitute Disqualified Stock but for provisions thereof giving holders
thereof the right to require such Person to repurchase or redeem such Capital
Stock upon the occurrence of an “asset sale” or “change of control” occurring
prior to the Stated Maturity of any outstanding Notes shall not constitute
Disqualified Stock if the “asset sale” or “change of control” provisions
applicable to such Capital Stock are no more favorable to the holders of such
Capital Stock than the provisions contained in Section 4.11 and Section
4.12 and such Capital Stock specifically provides that such Person will not
repurchase or redeem any such stock pursuant to such provision prior to the
Issuer’s repurchase of such Notes as are required to be repurchased pursuant to
Section 4.11 and Section 4.12.

“Event of Default” has the meaning provided in Section 6.01.

“Excess Proceeds” has the meaning provided in Section 4.11.

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

“Exchange Notes” means, with respect to the Notes, any
securities of the Issuer containing terms identical to the Notes (except that
such Exchange Notes shall be registered under the Securities Act) that are
issued and exchanged for the Notes (without novation) pursuant to the
Registration Rights Agreement or any other registration rights agreement and this
Indenture.  The Exchange Notes, when
issued, shall evidence the same continuing indebtedness of the Issuer under the
Notes.

“Exchange Offer” means an offer that may be made by the Issuer
pursuant to the Registration Rights Agreement to exchange Notes bearing the
Private Placement Legend for the Exchange Notes.

“Existing Borrower” means any borrower under the Credit
Agreement on the Closing Date.

“Existing Guarantor” means any guarantor under the Credit
Agreement on the Closing Date.

“First Mortgage Notes” means the Issuer’s 10.75% First Mortgage
Notes that were due and paid in full in 2002 and issued pursuant to the
Indenture that was dated as of October 12, 1994, as amended, restated,
supplemented or otherwise modified from time to time.

“Foreign Subsidiary” means any Subsidiary of the Issuer
organized outside of the United States.

“GAAP” means generally accepted accounting principles as
determined by the Public Company Accounting Oversight Board, including, without
limitation, those 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 approved by
a significant segment of the accounting profession, as in effect from to
time.  All ratios and computations 

 8
 

(other than EBITDA or pro forma computations)
contained or referred to in this Indenture shall be computed in conformity with
GAAP applied on a consistent basis, except that calculations made for purposes
of determining compliance with the terms of the covenants and with other
provisions of this Indenture shall be made without giving effect to
(i) the amortization of any expenses incurred in connection with the
offering of any of the Notes, (ii) except as otherwise provided, the
amortization of any amounts required or permitted by Accounting Principles
Board Opinion Nos. 16 and 17 and (iii) the treatment of Capital Stock
pursuant to Statement of Financial Accounting Standards No. 150.

“Global Notes” has the meaning provided in Section 2.01.

“Guarantee” means any obligation, contingent or otherwise, of
any Person directly or indirectly guaranteeing any Indebtedness of any other
Person and, without limiting the generality of the foregoing, any obligation,
direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such other Person (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets,
goods, securities or services (unless such purchase arrangements are on arm’s-length
terms and are entered into in the ordinary course of business), to take-or-pay,
or to maintain financial statement conditions or otherwise) or
(ii) entered into for purposes of assuring in any other manner the obligee
of such Indebtedness of the payment thereof or to protect such obligee against
loss in respect thereof (in whole or in part); provided
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. 
The term “Guarantee” used as a verb has a corresponding meaning.

“Guaranteed Indebtedness” has the meaning provided in Section
4.07.

“Guarantor” means each direct or indirect Subsidiary of the
Issuer that has executed and delivered a Subsidiary Guarantee.

“Holder” or “Noteholder” means the registered holder of
any Note.

“Incur” means, with respect to any Indebtedness, to incur,
create, issue, assume, Guarantee or otherwise become liable for or with respect
to, or become responsible for, the payment of, contingently or otherwise, such
Indebtedness, including an “Incurrence” of Acquired Indebtedness; provided that (i) neither the accrual
of interest nor the accretion of original issue discount shall be considered an
Incurrence of Indebtedness, (ii) any amendment, restatement, supplement,
modification or waiver of any document pursuant to which Indebtedness was
previously Incurred shall only be deemed to be an Incurrence of Indebtedness if
and to the extent such amendment, restatement, supplement, modification or
waiver increases the outstanding principal amount thereof (or, with respect to
revolving lines of credit, revolving receivables purchases or other similar
arrangements, increases the amount of commitments therefor), and (iii) the
amount of Indebtedness Incurred with respect to revolving lines of credit,
revolving receivables purchases and other similar arrangements shall be the
amount of commitments therefor measured on the date of the granting of such
commitments by the lender.

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

 9
 

(i)            all indebtedness of such Person for
borrowed money;

(ii)           all obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments (other than,
in the case of the Issuer and its Restricted Subsidiaries, any non-negotiable
notes of the Issuer or its Restricted Subsidiaries issued to its insurance
carriers in lieu of maintenance of policy reserves in connection with workers’
compensation and liability insurance programs of the Issuer or its Restricted
Subsidiaries);

(iii)          all obligations of such Person in
respect of letters of credit or other similar instruments (including
reimbursement obligations with respect thereto, but excluding obligations with
respect to letters of credit (including trade letters of credit) securing
obligations (other than obligations described in (i) or (ii) above or (v) or
(vi) below) entered into in the ordinary course of business of such Person to
the extent such letters of credit are not drawn upon or, if drawn upon, to the
extent such drawing is reimbursed no later than the third Business Day following
receipt by such Person of a demand for reimbursement);

(iv)          all obligations of such Person to pay
the deferred and unpaid purchase price of property or services, which purchase
price is due more than six months after the date of placing such property in
service or taking delivery and title thereto or the completion of such
services, except Trade Payables;

(v)           all Capitalized Lease Obligations;

(vi)          all Indebtedness of other Persons
secured by a Lien on any asset of such Person, whether or not such Indebtedness
is assumed by such Person; provided
that the amount of such Indebtedness shall be the lesser of (A) the fair
market value of such asset at such date of determination and (B) the
amount of such Indebtedness;

(vii)         all Indebtedness of other Persons Guaranteed
by such Person to the extent such Indebtedness is Guaranteed by such Person;
and

(viii)        to the extent not otherwise included in
this definition, obligations under Currency Agreements and Interest Rate
Agreements.

The amount of Indebtedness of any Person at any date
shall be the outstanding balance at such date of all unconditional obligations
as described above and, with respect to contingent obligations, the maximum
liability, upon the occurrence of the contingency giving rise to the obligation,
provided (A) that the amount
outstanding at any time of any Indebtedness issued with original issue discount
is the face amount of such Indebtedness less the remaining unamortized portion
of the original issue discount of such Indebtedness as determined in conformity
with GAAP, (B) that money borrowed and set aside at the time of the
Incurrence of any Indebtedness in order to prefund the payment of the interest
on such Indebtedness shall not be deemed to be “Indebtedness”, (C) that
Indebtedness shall not include any liability for federal, state, local or other
taxes and (D) the amount of Indebtedness under any revolving line of
credit, revolving receivables purchases or other similar arrangements shall be
the amount of commitments therefor measured as of the date of incurrence of
such commitments.  

 10
 

Notwithstanding the foregoing, “Indebtedness” shall
not include unsecured indebtedness of the Issuer and its Restricted
Subsidiaries incurred to finance insurance premiums of the Issuer and its
Restricted Subsidiaries, to the extent customary in the Issuer’s industry.

“Indenture” means this Indenture as originally executed or as it
may be amended or supplemented from time to time by one or more indentures
supplemental to this Indenture entered into pursuant to the applicable
provisions of this Indenture and shall include the terms of the Notes
established as contemplated by Section 2.03; provided, however,
that, if at any time more than one Person is acting as Trustee under this
instrument, “Indenture” shall mean, with respect to the Notes for which such
Person is Trustee, this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of the Notes for which such Person is Trustee established as
contemplated by Section 2.03, exclusive, however, of any provisions or
terms which relate solely to other Notes for which such Person is not Trustee,
regardless of when such terms or provisions were adopted, and exclusive of any
provisions or terms adopted by means of one or more indentures supplemental
hereto executed and delivered after such Person had become such Trustee but to
which such Person, as such Trustee, was not a party.

“Interest Coverage Ratio” means, on any Transaction Date, the
ratio of (i) the aggregate amount of Consolidated EBITDA for the then most
recent four fiscal quarters for which financial information in respect thereof
is available immediately prior to such Transaction Date (the “Four Quarter
Period”) to (ii) the aggregate Consolidated Interest Expense during
such Four Quarter Period.  In making the
foregoing calculation, (A) pro forma
effect shall be given to any Indebtedness Incurred or repaid (including any
Indebtedness irrevocably called for redemption) during the period (the “Reference
Period”) commencing on the first day of the Four Quarter Period and ending
on the Transaction Date (other than Indebtedness Incurred or repaid under a revolving
credit or similar arrangement to the extent of the commitment thereunder or
under any predecessor revolving credit or similar arrangement) in effect on the
last day of such Four Quarter Period), in each case as if such Indebtedness had
been Incurred or repaid on the first day of such Reference Period;
(B) Consolidated Interest Expense attributable to interest on any
Indebtedness (whether existing or being Incurred) computed on a pro forma basis and bearing a
floating interest rate shall be computed as if the rate in effect on the
Transaction Date (taking into account any Interest Rate Agreement applicable to
such Indebtedness if such Interest Rate Agreement has a remaining term in
excess of 12 months or, if shorter, at least equal to the remaining term of
such Indebtedness) had been the applicable rate for the entire period;
(C) pro forma effect shall
be given to Asset Dispositions and Asset Acquisitions (including giving pro forma effect to the application
of proceeds of any Asset Disposition and to those cost savings that senior
management of the Issuer reasonably expects to realize within 12 months of the
consummation of any acquisition or disposition) that occur during such
Reference Period as if they had occurred and such proceeds had been applied on
the first day of such Reference Period; and (D) pro forma effect shall be given to asset dispositions
and asset acquisitions (including giving pro forma
effect to the application of proceeds of any asset disposition) that have been
made by any Person that has become a Restricted Subsidiary or has been merged
with or into the Issuer or any Restricted Subsidiary during such Reference
Period and that would have constituted Asset Dispositions or Asset Acquisitions
had such transactions occurred when such Person was a Restricted Subsidiary as
if such asset dispositions or asset acquisitions were Asset 

 11
 

Dispositions or Asset Acquisitions that occurred on
the first day of such Reference Period; provided
that to the extent that clause (C) or (D) of this sentence requires
that pro forma effect be
given to an Asset Acquisition or Asset Disposition, such pro forma calculation shall be based
upon the four full fiscal quarters immediately preceding the Transaction Date
of the Person, or division or line of business of the Person, that is acquired
or disposed for which financial information is available.

“Interest Payment Date”, when used with respect to any Note,
means the Stated Maturity of an installment of interest on such Note.

“Interest Rate Agreement” means any interest rate protection
agreement, interest rate future agreement, interest rate option agreement,
interest rate swap agreement, interest rate cap agreement, interest rate collar
agreement, interest rate hedge agreement, option or future contract or other similar
agreement or arrangement.

“Investment” in any Person means any direct or indirect advance,
loan or other extension of credit (including, without limitation, by way of
Guarantee or similar arrangement; but excluding advances to customers in the
ordinary course of business that are, in conformity with GAAP, recorded as
accounts receivable on the balance sheet of the Issuer or its Restricted
Subsidiaries) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the
account or use of others), or any purchase or acquisition of Capital Stock,
bonds, notes, debentures or other similar instruments issued by, such Person
and shall include (i) the designation of a Restricted Subsidiary as an
Unrestricted Subsidiary and (ii) the retention of the Capital Stock or any
other Investment by the Issuer or any of its Restricted Subsidiaries, of (or
in) any Person that has ceased to be a Subsidiary, including, without
limitation, by reason of any transaction permitted by clause (iii) of Section
4.06.  For purposes of the definition
of “Unrestricted Subsidiary” and Section 4.04,

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

(A)          the Issuer’s “Investment” in such
Subsidiary at the time of such redesignation less

(B)           the portion (proportionate to the
Issuer’s equity interest in such Subsidiary) of the fair market value of the
net assets of such Subsidiary at the time of such redesignation;

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

(3)           the amount of any Investment shall be
the original cost as of the date of determination of such Investment plus the
cost of all additional Investments by the Issuer 

 12
 

or any of its Restricted
Subsidiaries, without any adjustments for increases or decreases in value or
write-ups, write-downs or write-offs with respect to such
investments, reduced by the payment of dividends or distributions (including
tax sharing payments) in connection with such Investment, the net proceeds of
any disposition of such investment or any other amounts received in respect of
such Investment; provided, however, that no such dividends,
distributions, proceeds or receipt shall reduce the amount of any Investment if
it would be included in Adjusted Consolidated Net Income and provided further that the amount of any
Investment shall be deemed not to be less than zero.

“Issuer” means the party named as such in the first paragraph of
this Indenture until a successor replaces it in accordance with the provisions
of Article Five of this Indenture and thereafter means such successor.

“Issuer Order” means a written request or order signed in the
name of the Issuer by two Officers.

“Lien” means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including, without limitation, any
conditional sale or other title retention agreement or lease in the nature
thereof or any agreement to give any security interest).

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

“Net Cash Proceeds” means, (a) with respect to any Asset
Sale, the proceeds of such Asset Sale in the form of cash or cash equivalents,
including payments in respect of deferred payment obligations (to the extent
corresponding to the principal, but not interest, component thereof) when
received in the form of cash or cash equivalents and proceeds from the
conversion of other property received when converted to cash or cash
equivalents, net of (i) brokerage commissions and other fees and expenses
(including fees and expenses of counsel and investment bankers) related to such
Asset Sale, (ii) provisions for all taxes (whether or not such taxes will
actually be paid or are payable) as a result of such Asset Sale without regard
to the consolidated results of operations of the Issuer and its Restricted
Subsidiaries, taken as a whole, (iii) payments made to repay Indebtedness
or any other obligation outstanding at the time of such Asset Sale that either
(A) is secured by a Lien on the property or assets sold or (B) is
required to be paid as a result of such sale, (iv) all distributions and
other payments required to be made to minority interest holders in Subsidiaries
or joint ventures as a result of such Asset Sale and (v) appropriate
amounts to be provided by the Issuer or any Restricted Subsidiary as a reserve
against any liabilities associated with such Asset Sale, including, without
limitation, pension and other post-employment benefit liabilities, liabilities
related to environmental matters and liabilities under any indemnification
obligations associated with such Asset Sale, all as determined in conformity
with GAAP and (b) with respect to any issuance or sale of Capital Stock,
the proceeds of such issuance or sale in the form of cash or cash equivalents,
including payments in respect of deferred payment obligations (to the extent
corresponding to the principal, but not interest, component thereof) when
received in the form of cash or cash equivalents and proceeds from the
conversion of other property received when converted to cash or cash
equivalents, net of attorney’s fees, accountants’ fees, underwriters’ or
initial purchasers’ fees, discounts or commissions and brokerage, consultant
and other fees and expenses incurred in connection with such issuance or sale
and net of taxes paid or payable as a result thereof.

 13
 

“Non-U.S. Person” means a person who is not a “U.S. person” (as
defined in Regulation S).

“Notes” has the meaning stated in the first recital of this
Indenture and more particularly means any Notes authenticated and delivered
under this Indenture; provided, however, that if at any time there is more
than one person acting as Trustee under this Indenture “Notes” with respect to
this Indenture as to which such Person is Trustee shall have the meaning stated
in the first recital of this Indenture and shall more particularly mean Notes
authenticated and delivered under this Indenture, exclusive, however, of Notes
as to which such Person is not Trustee.

“Offer to Purchase” means an offer to purchase Notes by the
Issuer from the Holders commenced by mailing a notice to the Trustee for
distribution to each Holder stating:

(i)            the Section of this Indenture
pursuant to which the offer is being made and that all Notes validly tendered
will be accepted for payment on a pro rata basis;

(ii)           the purchase price and the date of
purchase (which shall be a Business Day no earlier than 30 days nor later than
60 days from the date such notice is mailed) (the “Payment Date”);

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

(iv)          that, unless the Issuer defaults in
the payment of the purchase price, any Note accepted for payment pursuant to
the Offer to Purchase shall cease to accrue interest on and after the Payment
Date;

(v)           that Holders electing to have a Note
purchased pursuant to the Offer to Purchase will be required to surrender the
Note, together with the form entitled “Option of the Holder to Elect Purchase”
on the reverse side of the Note completed, to the Paying Agent at the address
specified in the notice prior to the close of business on the Business Day
immediately preceding the 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 third Business Day immediately preceding the Payment Date, a
telegram, facsimile transmission or letter setting forth the name of such
Holder, the principal amount of Notes delivered for purchase and a statement
that such Holder is withdrawing his election to have such 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; provided that each Note purchased and each new Note issued
shall be in a principal amount of $1,000 or integral multiples thereof.

On the Payment Date, the Issuer shall (i) accept
for payment on a pro rata basis Notes or portions thereof tendered pursuant to
an Offer to Purchase; (ii) deposit with the Paying Agent money sufficient
to pay the purchase price of all Notes or portions thereof so accepted; 

 14
 

and (iii) deliver, or cause to be delivered, to
the Trustee all Notes or portions thereof so accepted together with an Officers’
Certificate specifying the Notes or portions thereof accepted for payment by
the Issuer.  The Paying Agent shall
promptly mail to the Holders of Notes so accepted payment in an amount equal to
the purchase price, and the Trustee shall promptly authenticate and mail to
such Holders a new Note equal in principal amount to any unpurchased portion of
the Note surrendered; provided
that each Note purchased and each new Note issued shall be in a principal
amount of $1,000 or integral multiples thereof. 
The Issuer will publicly announce the results of an Offer to Purchase as
soon as practicable after the Payment Date. 
The Trustee shall act as the Paying Agent for an Offer to Purchase.  The Issuer will comply with 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 the event that the
Issuer is required to repurchase Notes pursuant to an Offer to Purchase.

“Officer” means, with respect to the Issuer, the Chairman or
Vice Chairman of the Board, the Chief Executive Officer, the President, any
Vice President or the Chief Financial Officer, the Treasurer or any Assistant
Treasurer, or the Secretary or any Assistant Secretary.

“Officers’ Certificate” means a certificate signed by two
Officers.  Each Officers’ Certificate
(other than certificates provided pursuant to TIA Section 314(a)(4)) shall
include the statements provided for in TIA Section 314(e).

“Offshore Global Notes” has the meaning provided in Section
2.01.

“Offshore Physical Notes” has the meaning provided in Section
2.01.

“Opinion of Counsel” means a written opinion signed by legal
counsel, who may be an employee of or counsel to the Issuer, that meets the
requirements of Section 11.04. 
Each such Opinion of Counsel shall include the statements provided for
in TIA Section 314(e).

“Paying Agent” has the meaning provided in Section 2.04,
except that, for the purposes of Article Eight, the Paying Agent shall not be
the Issuer or a Subsidiary of the Issuer or an Affiliate of any of them.  The term “Paying Agent” includes any
additional Paying Agent.

“Payment Date” has the meaning provided in the definition of
Offer to Purchase.

“Permanent Offshore Global Note” has the meaning provided in Section
2.01.

“Permitted Investment” means:

(i)            an Investment in the Issuer or a
Restricted Subsidiary or a Person which will, upon the making of such
Investment, become a Restricted Subsidiary or be merged or consolidated with or
into, or transfer or convey all or substantially all its assets to, the Issuer
or a Restricted Subsidiary; provided
that such person’s primary business is related, ancillary or complementary to
the businesses of the Issuer and its Restricted Subsidiaries on the date of
such Investment, except to the extent as would not be material to the Issuer
and its Restricted Subsidiaries taken as a whole;

(ii)           Temporary Cash Investments;

 15

(iii)          payroll, travel and similar advances
or loans to cover matters that are expected at the time of such advances or
loans ultimately to be treated as expenses in accordance with GAAP;

(iv)          stock, obligations or securities
received in settlement of debts created in the ordinary course of business and
owing to the Issuer or any Restricted Subsidiary pursuant to a work-out or
similar arrangement or proceeding or in satisfaction of judgments or pursuant
to any plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of a debtor or received in settlement or resolution of litigation,
arbitration or other disputes with Persons who are not Affiliates;

(v)           an Investment in an Unrestricted
Subsidiary consisting solely of an Investment in another Unrestricted
Subsidiary;

(vi)          Interest Rate Agreements, Commodity
Agreements and Currency Agreements designed solely to protect the Issuer or its
Restricted Subsidiaries against fluctuations in interest rates, commodity
prices or foreign currency exchange rates;

(vii)         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 4.11;

(viii)        loans and advances to employees and
officers of the Issuer and its Restricted Subsidiaries in the ordinary course
of business;

(ix)           loans, guarantees of loans and
advances to directors or consultants of the Issuer or a Restricted Subsidiary
of the Issuer not to exceed $5.0 million in the aggregate outstanding at any
time;

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

(xi)           endorsements of negotiable
instruments and documents in the ordinary course of business;

(xii)          Investments of the Issuer and its
Restricted Subsidiaries in existence on the Closing Date;

(xiii)         Investments of a Person or any of its
Subsidiaries existing at the time such Person becomes a Restricted Subsidiary
of the Issuer or at the time such person merges or consolidates with the Issuer
or any of its Restricted Subsidiaries, in either case in compliance with this
Indenture, provided that such Investments were not made by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary of the Issuer or such merger or consolidation;

 16
 

(xiv)        any Investment by the Issuer or a
Restricted Subsidiary in a Receivables Subsidiary or any Investment by a
Receivables Subsidiary in any other Person in connection with a Qualified
Securitization Transaction; provided
that any Investment in a Receivables Subsidiary is in the form of a Purchase
Money Note or an equity interest; and

(xv)         Guarantees otherwise permitted by the
terms of this Indenture.

“Permitted Liens” means:

(i)            Liens for taxes, assessments,
governmental charges or claims that are being contested in good faith by
appropriate legal proceedings promptly instituted and diligently conducted and
for which a reserve or other appropriate provision, if any, as shall be
required in conformity with GAAP shall have been made;

(ii)           statutory and common law Liens of
landlords and carriers, warehousemen, mechanics, suppliers, materialmen,
repairmen or other similar Liens (including maritime Liens) arising in the
ordinary course of business and with respect to amounts not yet delinquent or
being contested in good faith by appropriate legal proceedings promptly
instituted and diligently conducted and for which a reserve or other
appropriate provision, if any, as shall be required in conformity with GAAP
shall have been made;

(iii)          Liens incurred or deposits made in the
ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security;

(iv)          Liens incurred or deposits made to
secure the performance of tenders, bids, leases, statutory or regulatory
obligations, bankers’ acceptances, surety and appeal bonds, government
contracts, performance and return-of-money bonds and other obligations of a
similar nature incurred in the ordinary course of business (exclusive of obligations
for the payment of borrowed money);

(v)           easements, rights-of-way, municipal
and zoning ordinances and similar charges, encumbrances, title defects or other
irregularities that do not materially interfere with the ordinary course of
business of the Issuer or any of its Restricted Subsidiaries;

(vi)          Liens (including extensions, renewals
and replacements thereof) upon real or personal property, including Capital
Stock, acquired after the Closing Date; provided
that (a) such Lien is created solely for the purpose of securing
Indebtedness Incurred, in accordance with Section 4.03, to finance or
refinance the purchase price (such purchase price including any Indebtedness
assumed or repaid in connection with such purchase) or the cost (including the
cost of improvement or construction) of the property or assets subject thereto
and such Lien is initially created prior to, at the time of or within six
months after the later of the acquisition, the completion of construction or
the commencement of full operation of such property or assets, (b) the
principal amount of the Indebtedness secured by such Lien does not exceed 100%
of such purchase price or cost and (c) any such Lien shall not extend to or
cover any property or assets other than such property or assets and any
improvements thereon (with current assets being treated 

 17
 

as such property
or assets, notwithstanding any replacement thereof in the ordinary course of
business of the Issuer and its Restricted Subsidiaries);

(vii)         leases or subleases granted to others
that do not materially interfere with the ordinary course of business of the
Issuer and its Restricted Subsidiaries, taken as a whole;

(viii)        Liens encumbering property or assets
under construction arising from progress or partial payments by a customer of
the Issuer or its Restricted Subsidiaries relating to such property or assets;

(ix)           any interest or title of a lessor in
the property subject to any Capitalized Lease or operating lease;

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

(xi)           Liens on property of, or on shares of
Capital Stock or Indebtedness of, any Person existing at the time such Person
becomes, or becomes a part of, any Restricted Subsidiary; provided that such Liens do not extend to
or cover any property or assets of the Issuer or any Restricted Subsidiary
other than the property or assets acquired;

(xii)          Liens in favor of the Issuer or any
Restricted Subsidiary;

(xiii)         Liens arising from the rendering of a
final judgment or order against the Issuer or any Restricted Subsidiary that
does not give rise to an Event of Default;

(xiv)        Liens securing reimbursement obligations
with respect to letters of credit that encumber documents and other property
relating to such letters of credit and the products and proceeds thereof;

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

(xvi)        Liens encumbering customary initial
deposits and margin deposits, and other Liens that are within the general
parameters customary in the industry and incurred in the ordinary course of
business, in each case, securing Indebtedness under Interest Rate Agreements,
Commodity Agreements and Currency Agreements and forward contracts, options,
future contracts, futures options or similar agreements or arrangements
designed solely to protect the Issuer or any of its Restricted Subsidiaries
from fluctuations in interest rates, currencies or the price of commodities;

(xvii)       Liens arising out of conditional sale,
title retention, consignment or similar arrangements for the sale of goods
entered into by the Issuer or any of its Restricted Subsidiaries in the
ordinary course of business;

(xviii)      Liens on shares of Capital Stock of any
Unrestricted Subsidiary to secure Indebtedness of such Unrestricted Subsidiary;

 18
 

(xix)         Liens on or sales of receivables;

(xx)          Liens on assets of a Receivables
Subsidiary incurred in connection with a Qualified Securitization Transaction;
and

(xxi)         Liens incurred in the ordinary course
of business of the Issuer or any Restricted Subsidiary of the Issuer with
respect to obligations that do not exceed $100 million at any one time
outstanding.

“Permitted Tax Distributions” means the payment of any distributions
to permit direct or indirect Beneficial Owners of shares of Capital Stock of
the Issuer to pay federal, state or local income tax liabilities arising from
income to the Issuer and attributable to them solely as a result of the Issuer
and any intermediate entity through which the holder owns such shares being a
limited liability company, partnership or similar entity for federal income tax
purposes.

“Person” means an individual, a corporation, a partnership, a
limited liability company, an association, a trust or any other entity or
organization, including a government or political subdivision or an agency or
instrumentality thereof.

“Physical Notes” has the meaning provided in Section 2.01.

“Preferred Stock” means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) of such Person’s preferred or preference equity,
whether outstanding on the Closing Date or issued thereafter, including,
without limitation, all series and classes of such preferred or preference
stock.

“Principal” of a debt security, including the Notes, means the
principal amount due on the Stated Maturity as shown on such debt security.

“Private Placement Legend” means the legend initially set forth
on the Notes in the form set forth in Section 2.02.

“Public Equity Offering” means an underwritten primary public
offering of Common Stock of the Issuer pursuant to an effective registration
statement under the Securities Act.

A “Public Market” shall be deemed to exist if (i) a Public
Equity Offering has been consummated and (ii) at least 15% of the total issued
and outstanding Common Stock of the Issuer has been distributed by means of an
effective registration statement under the Securities Act or sales pursuant to
Rule 144 under the Securities Act.

“Purchase Money Note” means a promissory note evidencing a line
of credit, which may be irrevocable, from, or evidencing other Indebtedness
owed to, the Issuer or any of its Restricted Subsidiaries in connection with a
Qualified Securitization Transaction, which note shall be repaid from cash
available to the issuer of such note, other than amounts required to be
established as reserves pursuant to agreements, amounts paid to investors in
respect of interest, 

 19
 

principal and other amounts owing to such investors
and amounts paid in connection with the purchase of newly generated
receivables.

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

“Qualified Securitization Transaction” means any transaction or
series of transactions entered into by the Issuer or any of its Restricted
Subsidiaries pursuant to which the Issuer or any of its Restricted Subsidiaries
sells, conveys or otherwise transfers to:

(1)           a Receivables Subsidiary (in the case
of a transfer by the Issuer or any of its Restricted Subsidiaries); and

(2)           any other Person (in the case of a
transfer by a Receivables Subsidiary),

or grants a security interest in, any accounts
receivable, 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 that are customarily transferred, or in
respect of which security interests are customarily granted, in connection with
securitization transactions involving accounts receivable.

“Receivables Subsidiary” means a Wholly Owned Subsidiary of the
Issuer that engages in no activities other than in connection with the
financing of accounts receivable and that is designated (provided that no such
designation shall be required for any Receivables Subsidiary in existence prior
to the Closing Date) by the Board of Directors (as provided below) as a Receivables
Subsidiary:

(i)            no portion of the Indebtedness or
any other obligations (contingent or otherwise) of which (a) is Guaranteed
by the Issuer or any Restricted Subsidiary of the Issuer (excluding Guarantees
of obligations and contingent 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 Securitization Transaction), (b) is recourse to or obligates
the Issuer or any Restricted Subsidiary of the Issuer 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
Securitization Transaction or (c) subjects any property or asset of the
Issuer or any Restricted Subsidiary of the Issuer, 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 Securitization
Transaction;

(ii)           with which neither the Issuer nor any
Restricted Subsidiary of the Issuer has any material contract, agreement,
arrangement or understanding (except in connection with a Purchase Money Note
or Qualified Securitization Transaction) other than on terms no less favorable
to the Issuer or such Restricted Subsidiary than those that might be obtained
at the time from Persons who are not Affiliates of the Issuer, other than fees
payable in the ordinary course of business in connection with servicing
accounts receivable; and

 20
 

(iii)          with which neither the Issuer nor any
Restricted Subsidiary of the Issuer has any obligation to maintain or preserve
such Restricted Subsidiary’s financial condition or cause such Restricted
Subsidiary to achieve certain levels of operating results.

Any such designation after the Closing Date by the
Board of Directors shall be evidenced to the Trustee by filing with the Trustee
a Board Resolution giving effect to such designation and an Officers’
Certificate certifying, to the knowledge and belief of such officer after
consulting with counsel that such designation complied with the foregoing
conditions.

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

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

“Registrar” has the meaning provided in Section 2.04.

“Registration” has the meaning provided in Section 4.18.

“Registration
Rights Agreement” means the Registration Rights Agreement, dated as of
March 26, 2007, among the Issuer and Deutsche Bank Securities Inc., Banc of
America Securities LLC, J.P. Morgan Securities Inc., Merrill Lynch & Co.,
Inc., Morgan Stanley & Co. Incorporated, UBS Securities LLC, BNY Capital
Markets, Inc., Goldman, Sachs & Co., Scotia Capital (USA) Inc., SG Americas
Securities, LLC, and Wachovia Capital Markets, LLC, and certain
permitted assigns specified therein, as amended, restated, supplemented or
otherwise modified from time to time.

“Registration Statement” means the Registration Statement as
defined and described in the Registration Rights Agreement or any other
registration rights agreement providing for the registration of any Notes under
the Securities Act.

“Regular Record Date” means the applicable Record Date specified
in the Notes; provided that if
any such date is not a Business Day, the Record Date shall be the first day
immediately succeeding such specified day that is a Business Day.

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

“Responsible Officer”, when used with respect to the Trustee, means
any vice president, any assistant vice president, any assistant secretary, any
assistant treasurer, any trust officer or assistant trust officer or any other
officer of the Trustee in its corporate trust department 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 or her
knowledge of and familiarity with the particular subject.

“Restricted Payments” has the meaning provided in Section
4.04.

 21
 

“Restricted Security” means a Note that constitutes a “Restricted
Security” within the meaning of Rule 144(a)(3) under the Securities Act; provided, however,
that the Trustee shall be entitled to request and conclusively rely on an
Opinion of Counsel with respect to whether any Note constitutes a Restricted
Security.

“Restricted Subsidiary” means any Subsidiary of the Issuer other
than an Unrestricted Subsidiary.

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

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

“Security Register” has the meaning provided in Section 2.04.

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

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

“Significant Subsidiary” means, at any date of determination,
any Restricted Subsidiary of the Issuer that, together with its Subsidiaries,
(i) for the most recent fiscal year of the Issuer, accounted for more than
10% of the consolidated revenues of the Issuer and its Restricted Subsidiaries
or (ii) as of the end of such fiscal year, was the owner of more than 10%
of the consolidated assets of the Issuer and its Restricted Subsidiaries, all
as set forth on the most recently available consolidated financial statements
of the Issuer for such fiscal year.

“SSCC” means Smurfit-Stone Container Corporation, a Delaware
corporation.

“SSCC Preferred Stock” means SSCC’s 7% Series A Cumulative
Exchangeable Redeemable Convertible Preferred Stock, par value $0.01 per share.

“Stated Maturity” means, (i) with respect to any debt
security, the date specified in such debt security as the fixed date on which
the final installment of principal of such debt security is due and payable and
(ii) with respect to any scheduled installment of principal of or interest
on any debt security, the date specified in such debt security as the fixed date
on which such installment is due and payable.

“Subsidiary” means, with respect to any Person, any corporation,
association or other business entity of which more than 50% of the voting power
of the outstanding Voting Stock is owned, directly or indirectly, by such
Person and/or one or more other Subsidiaries of such Person.

“Subsidiary Guarantee” has the meaning provided in Section
4.07.

“Temporary Cash Investment” means any of the following:

 22
 

(i)            direct obligations of the United
States of America or any agency thereof or obligations fully and
unconditionally guaranteed by the United States of America or the federal
government of Canada or any agency or instrumentality thereof;

(ii)           time deposit accounts, certificates
of deposit and money market deposits maturing within one year of the date of
acquisition thereof issued by a bank or trust company which bank or trust
company has capital, surplus and undivided profits aggregating in excess of
$500 million (or the foreign currency equivalent thereof) and has outstanding
debt which is rated “A” (or such similar equivalent rating) or higher by at
least one nationally recognized statistical rating organization (as used in
Rule 436 under the Securities Act) or any money-market fund sponsored by a
registered broker dealer or mutual fund distributor;

(iii)          repurchase obligations with a term of
not more than 30 days for underlying securities of the types described in
clause (i) above entered into with a bank or trust company meeting the
qualifications described in clause (ii) above;

(iv)          commercial paper, maturing not more
than 270 days after the date of acquisition, issued by a corporation (other
than an Affiliate of the Issuer) with a rating at the time as of which any
investment therein is made of “P-1” (or higher) according to Moody’s or “A-1”
(or higher) according to S&P (or equivalent rating in the case of a
Permitted Investment made by a Foreign Subsidiary);

(v)           securities with maturities of one
year or less from the date of acquisition issued or fully and unconditionally
guaranteed by any state, commonwealth or territory of the United States of
America or the federal government of Canada, or by any political subdivision or
taxing authority thereof, and rated at least “A” by S&P or Moody’s;

(vi)          demand deposits with any bank or trust
company; and

(vii)         in the case of Foreign Subsidiaries,
short term investments comparable to the foregoing.

“TIA” or “Trust Indenture Act” means the Trust Indenture
Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as in effect on the date this
Indenture was executed, except as provided in Section 9.06.

“Trade Payables” means, with respect to any Person, any accounts
payable or any other indebtedness or monetary obligation to trade creditors
created, assumed or Guaranteed by such Person or any of its Subsidiaries
arising in the ordinary course of business in connection with the acquisition
of goods or services.

“Transaction Date” means, with respect to the Incurrence of any
Indebtedness by the Issuer or any of its Restricted Subsidiaries, the date such
Indebtedness is to be Incurred and, with respect to any Restricted Payment, the
date such Restricted Payment is to be made.

 23
 

“Trustee” means the party named as such in the first paragraph
of this Indenture until a successor replaces it in accordance with the
provisions of Article Seven of this Indenture and thereafter means such
successor.

“United States Bankruptcy Code” means the Bankruptcy Reform Act
of 1978, as amended and as codified in Title 11 of the United States Code, as
amended from time to time hereafter, or any successor federal bankruptcy law.

“Unrestricted Subsidiary” means (i) any Subsidiary of the Issuer
that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors of the Issuer in the manner provided below
and (ii) any Subsidiary of an Unrestricted Subsidiary.  The Board of Directors of the Issuer may
designate any Restricted Subsidiary (including any newly acquired or newly
formed Subsidiary of the Issuer) to be an Unrestricted Subsidiary unless such
Subsidiary owns any Capital Stock of, or owns or holds any Lien on any property
of, the Issuer or any Restricted Subsidiary; provided
that (A) any Guarantee by the Issuer or any Restricted Subsidiary of
any Indebtedness of the Subsidiary being so designated shall be deemed an “Incurrence”
of such Indebtedness and an “Investment” by the Issuer or such Restricted
Subsidiary (or both, if applicable) at the time of such designation; (B) either
(I) the Subsidiary to be so designated has total assets of $1,000 or less or
(II) if such Subsidiary has assets greater than $1,000, such designation would
be permitted under Section 4.04 and (C) if applicable, the Incurrence of
Indebtedness and the Investment referred to in clause (A) of this proviso would
be permitted under Section 4.03 and Section 4.04.  The Board of Directors of the Issuer may
designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that (i) no
Default or Event of Default shall have occurred and be continuing at the time
of or after giving effect to such designation and (ii) all Liens and
Indebtedness of such Unrestricted Subsidiary outstanding immediately after such
designation would, if Incurred at such time, have been permitted to be Incurred
(and shall be deemed to have been Incurred) for all purposes of this
Indenture.  Any such designation by the
Board of Directors shall be evidenced to the Trustee by promptly filing with
the Trustee a copy of the Board Resolution giving effect to such designation
and an Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

“U.S. Global Notes” has the meaning provided in Section 2.01.

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

 24
 

“U.S. Physical Notes” has the meaning provided in Section
2.01.

“Voting Stock” means with respect to any Person, Capital Stock
of any class or kind ordinarily having the power to vote for the election of
directors, managers or other voting members of the governing body of such
Person.

“Wholly Owned” means, with respect to any Subsidiary of any
Person, the ownership of all of the outstanding Capital Stock of such
Subsidiary (other than any director’s qualifying shares or Investments by
foreign nationals mandated by applicable law) by such Person and/ or one or
more Wholly Owned Subsidiaries of such Person.

SECTION 1.02.  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 or a
Noteholder;

“indenture to be qualified” means this Indenture;

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

“obligor” on the indenture securities means the Issuer
or any other obligor on the Notes.

All other TIA terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by a
rule of the Commission and not otherwise defined herein have the meanings
assigned to them therein.

SECTION 1.03.  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 words in the plural include the singular;

(v)           provisions apply to successive events
and transactions;

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

 25
 

(vii)         all ratios and computations based on
GAAP contained in this Indenture shall be computed in accordance with the
definition of GAAP set forth in Section 1.01; and

(viii)        all references to Sections or Articles
refer to Sections or Articles of this Indenture unless otherwise indicated.

ARTICLE Two

THE NOTES

SECTION 2.01.  Form
and Dating.  The Notes and the
Trustee’s certificate of authentication shall be substantially in the form of Exhibit
A hereto.  The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage.  The Issuer shall approve the form
of the Notes and any notation, legend or endorsement on them.  Each Note shall be dated the date of its
authentication.

The terms and provisions contained in the Notes shall
constitute, and are hereby expressly made, a part of this Indenture and, to the
extent applicable, the Issuer 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 shall govern and be controlling.

Notes offered and sold in reliance on Rule 144A shall
be issued initially in the form of one or more permanent global Notes in
registered form (the “U.S. Global Notes”) registered in the name of the
nominee of the Depositary, deposited with the Trustee, as custodian for the
Depositary, duly executed by the Issuer and authenticated by the Trustee as
hereinafter provided.  The aggregate
principal amount of the U.S. Global Notes may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
the Depositary or its nominee, in accordance with the instructions given by the
Holder thereof, as hereinafter provided.

Notes issued pursuant to Section 2.07 in
exchange for interests in the U.S. Global Notes shall be in the form of permanent
certificated Notes in registered form (the “U.S. Physical Notes”).

Notes offered and sold in offshore transactions in
reliance on Regulation S shall be issued initially in the form of one or more
permanent global Notes in registered form (the “Offshore Global Notes”),
registered in the name of the nominee of the Depositary, deposited with the
Trustee, as custodian for the Depositary, duly executed by the Issuer and
authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the
Offshore Global Notes of or within a series may from time to time be increased
or decreased by adjustments made on the records of the Trustee, as custodian
for the Depositary or its nominee as hereinafter provided.

Notes issued pursuant to Section 2.07 in
exchange for interests in the Offshore Global Notes shall be in the form of
permanent certificated Notes in registered form (the “Offshore Physical
Notes”).

 26
 

The Offshore Physical Notes and U.S. Physical Notes
are sometimes collectively herein referred to as the “Physical Notes.”  The U.S. Global Notes and the Offshore Global
Notes are sometimes referred to herein as the “Global Notes.”

The definitive Notes shall be typed, printed,
lithographed or engraved or produced by any combination of these methods or may
be produced in any other manner permitted by the rules of any securities
exchange on which the Notes may be listed, all as determined by the Officers
executing such Notes, as evidenced by their execution of such Notes.

SECTION 2.02.  Restrictive
Legends.  Each Note shall bear the
following legend (the “Private Placement Legend”) on the face thereof
until after the second anniversary of the original issuance date of the Notes,
unless such legend is no longer required by Section 2.08(d) or Section
2.08(f) of this Indenture.

“THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE.  BY ITS ACQUISITION
HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A
U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE
WITH REGULATION S UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT, PRIOR
TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THESE NOTES  UNDER RULE 144(k) UNDER THE SECURITIES ACT
(OR ANY SUCCESSOR PROVISION), RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A)
TO SMURFIT-STONE CONTAINER ENTERPRISES, INC. OR ANY SUBSIDIARY THEREOF, (B)
INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (D)
PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (E) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER); AND (3) AGREES THAT IT WILL DELIVER TO
EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND.  IN CONNECTION  WITH ANY TRANSFER OF THIS NOTE PRIOR TO THE
EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS NOTE UNDER RULE
144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), THE HOLDER MUST
CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE
MANNER OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO THE TRUSTEE.  THIS LEGEND WILL BE REMOVED UPON THE EARLIER
OF THE TRANSFER OF THIS NOTE PURSUANT TO CLAUSE 2(F) ABOVE OR UPON ANY TRANSFER
OF 

 27
 

THIS NOTE UNDER RULE
144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).  AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT.

Each Global Note, whether or not an Exchange Note,
shall also bear the following legend on the face thereof:

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

TRANSFERS OF THIS GLOBAL
NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.08 OF THE INDENTURE.

SECTION 2.03.  Execution,
Authentication and Denominations. 
Subject to Article Four and applicable law, the aggregate principal
amount of Notes which may be authenticated and delivered under this Indenture
is initially limited to $675,000,000.

The Notes shall be executed by two Officers of the
Issuer.  The signature of these Officers
on the Notes may be by facsimile or manual signature in the name and on behalf
of the Issuer.

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

A Note shall not be valid until the Trustee or
authenticating agent manually signs the certificate of authentication on the
Note.  The signature shall be conclusive
evidence that the Note has been authenticated under this Indenture.

At any time and from time
to time after the execution of this Indenture, the Trustee or an authenticating
agent shall upon receipt of a Issuer Order authenticate for original issue
Notes in the aggregate principal amount specified in such Issuer Order; provided that the Trustee shall be
provided with an Officers’ Certificate and an Opinion of Counsel of the Issuer
in 

 28
 

connection with such authentication of Notes.  Such Issuer Order shall specify the amount of
Notes to be authenticated and the date on which the original issue of Notes is
to be authenticated and, in case of an issuance of Notes at any time following
the Closing Date, shall certify that such issuance is in compliance with
Article Four.  Such Opinion of Counsel
shall be to the effect that:

1.             the form of such Notes has been established by a
supplemental indenture or by or pursuant to a resolution of the Board of
Directors of the Issuer in conformity with the provisions of this Indenture;

2.             the terms of such Notes have been established in
accordance with the provisions of this Indenture;

3.             such Notes, when authenticated and delivered by the
Trustee and issued by the Issuer in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute valid and legally binding
obligations of the Issuer, enforceable in accordance with their terms, subject
to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting the enforcement of creditors’ rights and
to general equity principles; and

4.             the execution and delivery by the Issuer of such Notes
will not contravene any provisions of applicable federal or New York law.

The
Trustee shall have the right to decline to authenticate and deliver any Notes
under this Section if the Trustee, being advised by counsel, determines that
such action may not lawfully be taken or if the Trustee in good faith shall determine
that such action would expose the Trustee to personal liability to existing
Holders.

The Trustee may appoint an authenticating agent 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 authenticating
agent.  An authenticating agent has the
same rights as an Agent to deal with the Issuer or an Affiliate of the Issuer.

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

SECTION 2.04.  Registrar
and Paying Agent.  The Issuer shall
maintain an office or agency where Notes may be presented for registration of
transfer or for exchange (the “Registrar”), an office or agency where
Notes may be presented for payment (the “Paying Agent”) and an office or
agency where notices and demands to or upon the Issuer in respect of the Notes
and this Indenture may be served, which shall be in the Borough of Manhattan,
The City of New York.  The Issuer shall
cause the Registrar to keep a register of the Notes and of their transfer and
exchange (the “Security Register”). 
The Security Register shall be in written form or any other form capable
of being converted into written form within a reasonable time.  The Issuer may have one or more co-Registrars
and one or more additional Paying Agents.

 29
 

The Issuer shall enter into an appropriate agency
agreement with any Agent not a party to this Indenture.  The agreement shall implement the provisions
of this Indenture that relate to such Agent. 
The Issuer shall give prompt written notice to the Trustee of the name
and address of any such Agent and any change in the address of such Agent.  If the Issuer fails to maintain a Registrar,
Paying Agent and/or agent for service of notices and demands, the Trustee shall
act as such Registrar, Paying Agent and/or agent for service of notices and
demands.  The Issuer may remove any Agent
upon written notice to such Agent and the Trustee; provided that no such removal shall become effective until
(i) the acceptance of an appointment by a successor Agent to such Agent as
evidenced by an appropriate agency agreement entered into by the Issuer and
such successor Agent and delivered to the Trustee or (ii) notification to the
Trustee that the Trustee shall serve as such Agent until the appointment of a
successor Agent in accordance with clause (i) of this proviso.  The Issuer, any Subsidiary of the Issuer, or
any Affiliate of any of them may act as Paying Agent, Registrar or
co-Registrar, and/or agent for service of notice and demands.

The Issuer initially appoints the Trustee as
Registrar, Paying Agent, authenticating agent and agent for service of notice
and demands.  The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders and shall otherwise
comply with TIA § 312(a).  If
the Trustee is not the Registrar, the Issuer shall furnish to the Trustee as of
each Regular Record Date and at such other times as the Trustee may reasonably
request the names and addresses of Holders as they appear in the Security
Register, including the aggregate principal amount of Notes held by each
Holder.

SECTION 2.05.  Paying
Agent to Hold Money in Trust.  Not
later than 11:00 a.m. (New York City time) each due date of the principal,
premium, if any, and interest on Notes, the Issuer shall deposit with the
Paying Agent money in immediately available funds sufficient to pay such
principal, premium, if any, and interest so becoming due.  The Issuer shall require each Paying Agent
other than the Trustee to agree in writing that such Paying Agent shall hold in
trust for the benefit of the Holders or the Trustee all money held by the
Paying Agent for the payment of principal of, premium, if any, and interest on
such Notes (whether such money has been paid to it by the Issuer or any other
obligor on such Notes), and such Paying Agent shall promptly notify the Trustee
of any default by the Issuer (or any other obligor on such Notes) in making any
such payment.  The Issuer at any time may
require a Paying Agent to pay all money held by it to the Trustee and account
for any funds disbursed, and the Trustee may at any time during the continuance
of any payment default, upon written request to a Paying Agent, require such
Paying Agent to pay all money held by it to the Trustee and to account for any
funds disbursed.  Upon doing so, the
Paying Agent shall have no further liability for the money so paid over to the
Trustee.  If the Issuer or any Subsidiary
of the Issuer or any Affiliate of any of them acts as Paying Agent, it will, on
or before each due date of any principal of, premium, if any, or interest on
such Notes, segregate and hold in a separate trust fund for the benefit of the
Holders a sum of money sufficient to pay such principal, premium, if any, or
interest so becoming due until such sum of money shall be paid to such Holders
or otherwise disposed of as provided in this Indenture, and will promptly
notify the Trustee of its action or failure to act.

SECTION 2.06.  Transfer
and Exchange.  Subject to Sections
2.07 and 2.08, when Notes are presented to the Registrar with a request to
register the transfer of such Notes or to exchange such Notes for an equal
principal amount of Notes of other authorized

 30

denominations, the Registrar shall register the
transfer or make the exchange as requested if its requirements for such
transaction are met; provided, however, that the Notes surrendered for
transfer or exchange shall be duly endorsed or accompanied by a written
instrument of transfer in form satisfactory to the Issuer and the Registrar,
duly executed by the Holder thereof or his or her attorney duly authorized in
writing.  To permit registrations of
transfers and exchanges, the Issuer shall execute and the Trustee shall
authenticate Notes at the Registrar’s request. 
No service charge shall be made for any registration of transfer or
exchange, but the Issuer may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith.

Without the prior written consent of the Issuer, the Registrar shall
not be required to register the transfer of or exchange of any Note (i) during
a period beginning at the opening of business 15 days before the mailing of a notice
of redemption of Notes and ending at the close of business on the day of such
mailing, (ii) selected for redemption in whole or in part pursuant to Article
Three, except the unredeemed portion of any Note being redeemed in part, and
(iii) beginning at the opening of business on any Regular Record Date and
ending on the close of business on the related Interest Payment Date.

Any Holder of a beneficial interest in a Global Note shall, by
acceptance of such beneficial interest, agree that transfers of beneficial
interests in such Global Notes may be effected only through a book-entry system
maintained by the Holder of such Global Note (or its agent) in accordance with
the applicable legends thereon, and that ownership of a beneficial interest in
the Note shall be required to be reflected in a book-entry system.

SECTION 2.07.  Book-Entry
Provisions for Global Notes. 
(a)  The U.S. Global Notes and
Offshore Global Notes initially shall (i) be registered in the name of the
Depositary for such Global Notes or the nominee of such Depositary,
(ii) be delivered to the Trustee as custodian for such Depositary and
(iii) bear legends as set forth in Section 2.02.

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

(b)           Transfers of a
Global Note shall be limited to transfers of such Global Note in whole, but not
in part, to the Depositary, its successors or their respective nominees.  Interests of beneficial owners in Global
Notes may be transferred in accordance with the rules and procedures of the
Depositary and the provisions of Section 2.08.  In addition, U.S. Physical Notes and Offshore
Physical Notes shall be transferred to all beneficial owners in exchange for
their beneficial interests in the U.S. Global Notes or the Offshore Global
Notes, as the case may be, if (i) the Depositary notifies the Issuer that
it is unwilling or unable to continue as Depositary for the U.S. Global Notes
or the Offshore Global Notes, as the case may be, and a successor 

 31
 

depositary is
not appointed by the Issuer within 90 days of such notice, (ii) an Event
of Default has occurred and is continuing and the Registrar has received a
request from the Depositary or (iii) in accordance with the rules and
procedures of the Depositary and the provisions of Section 2.08.

(c)           Any beneficial
interest in one of the Global Notes that is transferred to a person who takes
delivery in the form of an interest in another Global Note will, upon transfer,
cease to be an interest in such Global Note and become an interest in such
other Global Note and, accordingly, will thereafter be subject to all transfer
restrictions, if any, and other procedures applicable to beneficial interests
in such other Global Note for as long as it remains such an interest.

(d)           In connection with
any transfer of a portion of the beneficial interests in a Global Note to
beneficial owners pursuant to paragraph (b) of this Section 2.07, the
Registrar shall reflect on its books and records the date and a decrease in the
principal amount of such Global Note in an amount equal to the principal
amount of the beneficial interest in such Global Note to be transferred, and
the Issuer shall execute, and the Trustee shall authenticate and deliver, one
or more U.S. Physical Notes or Offshore Physical Notes, as the case may be, of
like tenor and amount.

(e)           In connection with
the transfer of the U.S. Global Notes or the Offshore Global Notes, in whole,
to beneficial owners pursuant to paragraph (b) of this Section 2.07, the
U.S. Global Notes or Offshore Global Notes, as the case may be, shall be deemed
to be surrendered to the Trustee for cancellation, and the Issuer shall
execute, and the Trustee shall authenticate and deliver, to each beneficial
owner identified by the Depositary in exchange for its beneficial interest in
the U.S. Global Notes or Offshore Global Notes, as the case may be, an equal
aggregate principal amount of U.S. Physical Notes or Offshore Physical Notes,
as the case may be, of authorized denominations.

(f)            Any U.S. Physical
Note delivered in exchange for an interest in the U.S. Global Notes pursuant to
paragraph (b), (d) or (e) of this Section 2.07 shall, except as
otherwise provided by paragraph (d) of Section 2.08, bear the
legend regarding transfer restrictions applicable to the U.S. Physical Note set
forth in Section 2.02.

(g)           Any Offshore
Physical Note delivered in exchange for an interest in the Offshore Global
Notes pursuant to paragraph (b), (d) or (e) of this Section 2.07 shall,
except as otherwise provided by paragraph (d) of Section 2.08, bear
the legend regarding transfer restrictions applicable to Offshore Physical
Notes set forth in Section 2.02.

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

SECTION 2.08.  Special
Transfer Provisions.  Unless and
until a Note is exchanged for an Exchange Note or sold in connection with an
effective Registration Statement 

 32
 

pursuant to the Registration Rights Agreement or any
other registration rights agreement, the following provisions shall apply:

(a)           Transfers
to QIBs.  The following provisions
shall apply with respect to the registration of any proposed transfer of a
Restricted Security to a QIB:

(i)            The
Registrar shall register the transfer of any Restricted Security, whether or
not such Note bears the Private Placement Legend, if (x) the requested transfer
is after the second anniversary of the Issue Date; provided, however,
that neither the Issuer nor any Affiliate of the Issuer has held any beneficial
interest in such Note, or portion thereof, at any time on or prior to the
second anniversary of the Issue Date or (y) such transfer is being made by a
proposed transferor who has checked the box provided for on the applicable
Global Note stating, or has otherwise advised the Issuer and the Registrar in
writing, that the sale has been made in compliance with the provisions of Rule
144A to a transferee who has signed the certification provided for on the
applicable Global Note stating, or has otherwise advised the Issuer and the
Registrar in writing, that it is purchasing the 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 QIB within the meaning of Rule 144A, 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 Issuer as it 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 its foregoing
representations in order to claim the exemption from registration provided by
Rule 144A.

(ii)           If
the proposed transferee is an Agent Member and the Notes to be transferred
consist of Physical Notes which after transfer are to be evidenced by an
interest in the U.S. Global Notes, upon receipt by the Registrar of the
Physical Notes and written instructions given in accordance with the Depositary’s
and the Registrar’s procedures, the Registrar shall register the transfer and
reflect on its book and records the date and an increase in the principal
amount of the U.S. Global Note in an amount equal to the principal amount of
Physical Notes to be transferred, and the Registrar shall cancel the Physical
Notes so transferred.

(iii)          If
the proposed transferor is an Agent Member seeking to transfer an interest in
the Offshore Global Note, upon receipt by the Registrar of written instructions
given in accordance with the Depositary’s and the Registrar’s procedures, the
Registrar shall register the transfer and reflect on its books and records the
date and (A) a decrease in the principal amount of the Offshore Global Note in
an amount equal to the principal amount of the Notes to be transferred and (B)
an increase in the principal amount of the U.S. Global Note in an amount equal
to the principal amount of the Notes to be transferred

(b)           Intentionally
Omitted.

(c)           Transfers
to Non-U.S. Persons at Any Time.  The
following provisions shall apply with respect to any transfer of a Restricted
Security to a Non-U.S. Person under Regulation S:

 33
 

(i)            The Registrar shall
register any proposed transfer of a Restricted Security to a Non-U.S. Person
upon receipt of a certificate substantially in the form of Exhibit B
hereto from the proposed transferor and such certifications, legal opinions and
other information as the Trustee or the Issuer may reasonably request.

(ii)           (A)
If the proposed transferor is an Agent Member holding a beneficial interest in
the U.S. Global Note or the Note to be transferred consists of Physical Notes,
upon receipt by the Registrar of (x) the documents required by paragraph (i)
and (y) instructions in accordance with the Depositary’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and a
decrease in the principal amount of the U.S. Global Note in an amount equal to
the principal amount of the beneficial interest in the U.S. Global Note to be
transferred or cancel the Physical Notes to be transferred, and (B) if the
proposed transferee is an Agent Member, upon receipt by the Registrar of
instructions given in accordance with the Depositary’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and
an increase in the principal amount of the Offshore Global Note in an amount
equal to the principal amount of the U.S. Global Note or the Physical Notes, as
the case may be, to be transferred.

(d)           Exchange
Offer.  Upon the occurrence of an
effective registration statement relating to the Exchange Offer in accordance
with the Registration Rights Agreement, the Issuer shall issue and, upon
receipt of an Issuer Order in accordance with Section 2.03, the Trustee
shall authenticate one or more Global Notes and/or Physical Notes not bearing
the Private Placement Legend in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Global Note or Physical
Notes, as the case may be, tendered for acceptance in accordance with the
Exchange Offer and accepted for exchange in the Exchange Offer.

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

(f)            Private
Placement Legend.  Upon the transfer,
exchange or replacement of Notes not bearing the Private Placement Legend
unless otherwise required by applicable law, the Registrar shall deliver Notes
that do not bear the Private Placement Legend. 
Upon the transfer, exchange or replacement of Notes bearing the Private
Placement Legend, the Registrar shall deliver only Notes that bear the Private
Placement Legend unless (i) there is delivered to the Trustee an Opinion of
Counsel reasonably satisfactory to the Issuer and the Trustee to the effect
that neither such legend nor the related restrictions on transfer are required
in order to maintain compliance with the provisions of the Securities Act or
(ii) such Note has been offered and sold (including pursuant to the Exchange
Offer) pursuant to an effective registration statement under the Securities
Act.

(g)           General.  By its acceptance of any Note bearing the
Private Placement Legend, each Holder of such a Note acknowledges the
restrictions on transfer of such Note set 

 34
 

forth in this Indenture and in the Private Placement Legend and agrees
that it will transfer such Note only as provided in this Indenture.

The Registrar shall retain copies of all
letters, notices and other written communications received pursuant to Section
2.07 or Section 2.08.  The
Issuer shall have the right to inspect and make copies of all such letters,
notices or other written communications at any reasonable time upon the giving
of reasonable written notice to the Registrar.

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

The Trustee shall have no responsibility for
the actions or omissions of the Depositary, or the accuracy of the books and
records of the Depositary.

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

SECTION 2.09.  Replacement
Notes.  If a mutilated Note is
surrendered to the Trustee or if the Holder claims that the Note has been lost,
destroyed or wrongfully taken, then, in the absence of notice to the Issuer or
the Trustee that such Note has been acquired by a bona fide purchaser, the
Issuer shall issue and the Trustee shall authenticate a replacement Note of
like tenor and principal amount and bearing a number not contemporaneously outstanding;
provided that the requirements of
this Section 2.09 are met.  An
indemnity bond must be furnished that is sufficient in the judgment of both the
Trustee and the Issuer to protect the Issuer, the Trustee or any Agent from any
loss that any of them may suffer if a Note is replaced.  The Issuer may charge such Holder for its
expenses and the expenses of the Trustee in replacing a Note.  In case any such mutilated, lost, destroyed
or wrongfully taken Note has become or is about to become 

 35
 

due and payable, the Issuer in its discretion may pay
such Note instead of issuing a new Note in replacement thereof.

Every replacement Note is an additional obligation of
the Issuer and shall be entitled to the benefits of this Indenture.

SECTION 2.10.  Outstanding
Notes.  Notes outstanding at any time
are all Notes that have been authenticated by the Trustee except for those
cancelled by it, those paid pursuant to Section 2.09, those delivered to
it for cancellation and those described in this Section 2.10 as not
outstanding.

If a Note is replaced pursuant to Section 2.09,
it ceases to be outstanding unless and until the Trustee and the Issuer receive
proof satisfactory to them that the replaced Note is held by a bona fide purchaser.

If the Paying Agent (other than the Issuer or an
Affiliate of the Issuer) holds on the maturity date money sufficient to pay
Notes payable on that date, then on and after that date such Notes cease to be
outstanding and interest on them shall cease to accrue.

A Note does not cease to be outstanding because the
Issuer or one of its Affiliates holds such Note, provided, however,
that in determining whether the Holders of the requisite principal amount of
the outstanding Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Notes owned by the Issuer or any other
obligor upon the Notes or any Affiliate of the Issuer or of such other obligor
shall be disregarded and deemed not to be outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Notes which a Responsible Officer of the Trustee has actual knowledge to be so
owned shall be so disregarded.  Notes so
owned which have been pledged in good faith may be regarded as outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Notes and that the pledgee is not the Issuer or
any other obligor upon the Notes or any Affiliate of the Issuer or of such
other obligor.

SECTION 2.11.  Temporary
Notes.  Until definitive Notes are
ready for delivery, the Issuer may prepare and execute and the Trustee shall
authenticate temporary Notes.  Temporary
Notes shall be substantially in the form of definitive Notes but may have
insertions, substitutions, omissions and other variations determined to be
appropriate by the Officers executing the temporary Notes, as evidenced by
their execution of such temporary Notes. 
If temporary Notes are issued, the Issuer will cause definitive Notes to
be prepared without unreasonable delay. 
After the preparation of definitive Notes, the temporary Notes shall be
exchangeable for definitive Notes upon surrender of the temporary Notes at the
office or agency of the Issuer designated for such purpose pursuant to Section
4.02, without charge to the Holder. 
Upon surrender for cancellation of any one or more temporary Notes the
Issuer shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Notes of authorized
denominations.  Until so exchanged, the
temporary Notes shall be entitled to the same benefits under this Indenture as
definitive Notes.

 36
 

SECTION 2.12.  Cancellation.  The Issuer at any time may deliver to the
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any manner whatsoever, and may
deliver to the Trustee for cancellation any Notes previously authenticated hereunder
which the Issuer has not issued and sold. 
The Registrar and the Paying Agent shall forward to the Trustee any
Notes surrendered to them for transfer, exchange or payment.  The Trustee shall cancel all Notes
surrendered for transfer, exchange, payment or cancellation and shall dispose
of them in accordance with its normal procedures.

SECTION 2.13.  CUSIP
Numbers.  The Issuer in issuing the
Notes may use “CUSIP”, “CINS” or “ISIN” numbers (if then generally in use), and
the Issuer and the Trustee shall use CUSIP, CINS or ISIN numbers, as the case
may be, in notices of redemption or exchange as a convenience to Holders; provided that any such notice shall 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 redemption or exchange
and that reliance may be placed only on the other identification numbers
printed on the Notes.  The Issuer shall
promptly notify the Trustee of any change in “CUSIP”, “CINS” or “ISIN” numbers
for the Notes.

SECTION 2.14.  Defaulted
Interest.  If the Issuer defaults in
a payment of interest on the Notes, it shall pay, or shall deposit with the
Paying Agent money in immediately available funds sufficient to pay, the
defaulted interest, plus (to the extent lawful) any interest payable on the
defaulted interest, to the Persons who are Holders of the Notes on a subsequent
special record date.  A special record
date, as used in this Section 2.14 with respect to the payment of any
defaulted interest, shall mean the 15th day next preceding the date fixed by
the Issuer for the payment of defaulted interest, whether or not such day is a
Business Day.  At least 15 days before
the subsequent special record date, the Issuer shall mail to each Holder and to
the Trustee a notice that states the subsequent special record date, the
payment date and the amount of defaulted interest to be paid.

ARTICLE
Three

REDEMPTION

SECTION 3.01.  Applicability.  Notes which are redeemable before their
Stated Maturity shall be redeemable in accordance with the terms of such Notes
and (except as otherwise specified as contemplated by Section 2.03) in
accordance with this Article.

SECTION 3.02.  Notices
to Trustee.  If the Issuer elects to
redeem Notes pursuant to Section 3.01, it shall notify the Trustee in
writing of the Redemption Date and the principal amount of Notes to be redeemed
and the clause of such Note pursuant to which redemption shall occur.

The Issuer shall give each notice provided for in this
Section 3.02 at least 45 days before the Redemption Date (unless a
shorter period shall be satisfactory to the Trustee).

SECTION 3.03.  Selection
of Notes to Be Redeemed.  If less
than all of the Notes are to be redeemed at any time, the Trustee shall select
the Notes to be redeemed in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes 

 37
 

are listed or, if the Notes are not listed on a
national securities exchange or automated quotation system, on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion
shall deem fair and appropriate; provided
that no Note of $1,000 in principal amount or less shall be redeemed in part.

The Trustee shall make the selection from the Notes
outstanding and not previously called for redemption.  Notes in denominations of $1,000 in principal
amount may only be redeemed in whole. 
The Trustee may select for redemption portions (equal to $1,000 in principal
amount or any integral multiple thereof) of Notes that have denominations
larger than $1,000 in principal amount. 
Provisions of this Indenture that apply to Notes called for redemption
also apply to portions of Notes called for redemption.  The Trustee shall notify the Issuer and the
Registrar promptly in writing of the Notes or portions of Notes to be called
for redemption.

SECTION 3.04.  Notice
of Redemption.  With respect to any
redemption of Notes pursuant to Section 3.01, at least 30 days but not
more than 60 days before a Redemption Date, the Issuer shall mail, or cause to
be mailed, a notice of redemption by first-class mail to each Holder
whose Notes are to be redeemed.

The notice shall identify the Notes (including CUSIP,
CINS or  ISIN numbers) to be redeemed and
shall state:

(i)            the
Redemption Date;

(ii)           the
Redemption Price;

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

(iv)          that
Notes called for redemption must be surrendered to the Paying Agent in order to
collect the Redemption Price;

(v)           that,
unless the Issuer defaults in making the redemption payment, interest on Notes
called for redemption ceases to accrue on and after the Redemption Date and the
only remaining right of the Holders is to receive payment of the Redemption
Price plus accrued interest to the Redemption Date upon surrender of the Notes
to the Paying Agent;

(vi)          that,
if any Note is being redeemed in part, the portion of the principal amount
(equal to $1,000 in principal amount or any integral multiple thereof) of such
Note to be redeemed and that, on and after the Redemption Date, upon surrender
of such Note, a new Note or Notes in principal amount equal to the unredeemed
portion thereof will be reissued; and

(vii)         that,
if any Note contains a CUSIP, CINS or ISIN number as provided in Section 2.13,
no representation is being made as to the correctness of the CUSIP, CINS or
ISIN number either as printed on the Notes or as contained in the notice of
redemption and that reliance may be placed only on the other identification
numbers printed on the Notes.

 38
 

At the Issuer’s request (which request may be revoked
by the Issuer at any time prior to the time at which the Trustee shall have
given such notice to the Holders), made in writing to the Trustee at least
45 days (or such shorter period as shall be satisfactory to the Trustee)
before a Redemption Date, the Trustee shall give the notice of redemption in
the name and at the expense of the Issuer. 
If, however, the Issuer gives such notice to the Holders, the Issuer
shall concurrently deliver to the Trustee an Officers’ Certificate stating that
such notice has been given.

SECTION 3.05.  Effect
of Notice of Redemption.  Once notice
of redemption is mailed, Notes called for redemption become due and payable on
the Redemption Date and at the Redemption Price.  Upon surrender of any Notes to the Paying
Agent, such Notes shall be paid at the Redemption Price, plus accrued interest,
if any, to the Redemption Date.

Notice of redemption shall be deemed to be given when
mailed, whether or not the Holder receives the notice.  In any event, failure to give such notice, or
any defect therein, shall not affect the validity of the proceedings for the
redemption of Notes held by Holders to whom such notice was properly given.

SECTION 3.06.  Deposit
of Redemption Price.  On or prior to
11:00 a.m., New York City time, on any Redemption Date, the Issuer shall
deposit with the Paying Agent (or, if the Issuer is acting as its own Paying
Agent, shall segregate and hold in trust as provided in Section 2.05)
money sufficient to pay the Redemption Price of and accrued interest on all
Notes to be redeemed on that date other than Notes or portions thereof called
for redemption on that date that have been delivered by the Issuer to the
Trustee for cancellation.

SECTION 3.07.  Payment
of Notes Called for Redemption.  If
notice of redemption has been given in the manner provided above, the Notes or
portion of Notes specified in such notice to be redeemed shall become due and
payable on the Redemption Date at the Redemption Price stated therein, together
with accrued interest to such Redemption Date, and on and after such date
(unless the Issuer shall default in the payment of such Notes at the Redemption
Price and accrued interest to the Redemption Date, in which case the principal,
until paid, shall bear interest from the Redemption Date at the rate prescribed
in the Notes), such Notes shall cease to accrue interest.  Upon surrender of any Note for redemption in
accordance with a notice of redemption, such Note shall be paid and redeemed by
the Issuer at the Redemption Price, together with accrued interest, if any, to
the Redemption Date; provided
that installments of interest whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders registered as such at the close
of business on the relevant Regular Record Date.

SECTION 3.08.  Notes
Redeemed in Part.  Upon surrender of
any Note that is redeemed in part, the Issuer shall execute and the Trustee
shall authenticate and deliver to the Holder without service charge, a new Note
equal in principal amount to the unredeemed portion of such surrendered Note.

SECTION 3.09.  Optional
Redemption.  (a)      The Issuer may redeem the Notes, in whole
or in part, at any time on or after March 15, 2012 and prior to maturity, upon
not less than 30 nor more than 60 days’ prior notice mailed by first class mail
to each Holder’s last 

 39
 

address as it appears in the Security Register.  The Redemption Price for the Notes (expressed
as a percentage of principal amount) will be as follows, plus accrued and
unpaid interest to the Redemption Date, if redeemed during the 12-month period
commencing on March 15 of any year set forth below:  

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2012

  	
   

  	
  104.000

  	
  %

  
	
  2013

  	
   

  	
  102.667

  	
  %

  
	
  2014 and
  thereafter

  	
   

  	
  101.333

  	
  %

  
	
  2015 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)           In
addition, at any time prior to March 15, 2010, the Issuer may redeem up to 35%
of the principal amount of the Notes with the Net Cash Proceeds of one or more
sales of Capital Stock of the Issuer (other than Disqualified Stock) or a
capital contribution to the Issuer’s common equity made with the Net Cash
Proceeds of an offering of common stock of SSCC that are contributed to the
Issuer at any time or from time to time in part, at a Redemption Price
(expressed as a percentage of principal amount) of 108.000%, plus accrued and
unpaid interest to the Redemption Date and Additional Interest, if any (subject
to the rights of Holders of record on the relevant Regular Record Date that is
prior to the Redemption Date to receive interest due on an Interest Payment Date);
provided that at least 65% of the
aggregate principal amount of Notes originally issued remains outstanding after
each such redemption and notice of any such redemption is mailed within 60 days
of each such sale of Capital Stock.

(c)           In
the case of any partial redemption, selection of the Notes for redemption will
be made by the Trustee in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed or, if the
Notes are not listed on a national securities exchange, by lot or by such other
method as the Trustee in its sole discretion shall deem to be fair and
appropriate; provided that no
Note of $1,000 in principal amount or less shall be redeemed in part.  If any Note is to be redeemed in part only,
the notice of redemption relating to such Note shall state the portion of the
principal amount thereof to be redeemed. 
A new Note in principal amount equal to the unredeemed portion thereof
will be issued in the name of the Holder thereof upon cancellation of the
original Note.

ARTICLE
Four

COVENANTS

SECTION 4.01.  Payment
of Notes.  The Issuer shall pay the
principal of, premium, if any, and interest on the Notes on the dates and in
the manner provided in the Notes and this Indenture.  An installment of principal, premium, if any,
or interest shall be considered paid on the date due if the Trustee or Paying
Agent (other than the Issuer , a Subsidiary of the Issuer, or any Affiliate of
any of them) holds on that date money designated for and sufficient to pay the
installment.  If the Issuer or any
Subsidiary of the Issuer or any Affiliate of any of them acts as Paying Agent,
an installment of principal, premium, if any, or interest shall be considered
paid on the due date if the entity acting as Paying Agent complies with the
last sentence of 

 40
 

Section 2.05.  As provided in Section 6.09, upon
any bankruptcy or reorganization procedure relative to the Issuer, the Trustee
shall serve as the Paying Agent, if any, for the Notes.

The Issuer shall pay interest on overdue principal and
premium, if any, and interest on overdue installments of interest, to the
extent lawful, at the rate per annum specified in the Notes.

SECTION 4.02.  Maintenance
of Office or Agency.  The Issuer will
maintain in the Borough of Manhattan, The City of New York, an office or agency
where Notes may be surrendered for registration of transfer or exchange or for
presentation for payment and where notices and demands to or upon the Issuer in
respect of the Notes and this Indenture may be served.  The Issuer 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 Issuer shall
fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee
..

The Issuer 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 that no
such designation or rescission shall in any manner relieve the Issuer of its
obligation to maintain an office or agency in the Borough of Manhattan, The
City of New York, for such purposes.  The
Issuer shall give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other office or
agency.

The Issuer hereby initially designates the Corporate
Trust Office of the Trustee as such office of the Issuer in accordance with Section 2.04.

SECTION 4.03.  Limitation
on Indebtedness.  (a)  The
Issuer will not, and will not permit any of its Restricted Subsidiaries to,
Incur any Indebtedness (other than the Notes and Indebtedness existing on the
Closing Date); provided that the
Issuer may Incur Indebtedness if, after giving effect to the Incurrence of such
Indebtedness and the receipt and application of the proceeds therefrom, the
Interest Coverage Ratio would be greater than 1.75:1.

Notwithstanding the foregoing, the Issuer and any
other Restricted Subsidiary (except as specified below) may Incur each and all
of the following:

(i)            Indebtedness
of the Issuer, any Foreign Subsidiary, any Existing Borrower and any Guarantor
outstanding at any time in an aggregate principal amount (together with
refinancings thereof) not to exceed the amount of the commitments under the
Credit Agreement on the Closing Date plus
$150 million at any one time outstanding;

(ii)           Indebtedness
owed (A) to the Issuer or (B) to any Restricted Subsidiary; provided that any event which results in
any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any
subsequent transfer of such Indebtedness (other than to the Issuer or another
Restricted Subsidiary) shall be deemed, in each case, to constitute an
Incurrence of such Indebtedness not permitted by this clause (ii);

 41
 

(iii)          Indebtedness
(other than Indebtedness Incurred under clauses (xi) and (xiii) below) issued
in exchange for, or the net proceeds of which are used to refinance or refund,
then outstanding Indebtedness and any refinancings thereof in an amount not to
exceed the amount so refinanced or refunded (plus premiums, accrued interest,
fees and expenses); provided that
Indebtedness the proceeds of which are used to refinance or refund the Notes or
Indebtedness that is pari passu
with, or subordinated in right of payment to, the Notes shall only be permitted
under this clause (iii) if, in case the Indebtedness to be refinanced
is subordinated in right of payment to the Notes, such new Indebtedness, by its
terms or by the terms of any agreement or instrument pursuant to which such new
Indebtedness is issued or remains outstanding, is expressly made subordinate in
right of payment to the Notes at least to the extent that the Indebtedness to
be refinanced is subordinated to the Notes and such new Indebtedness,
determined as of the date of Incurrence of such new Indebtedness, does not
mature prior to the Stated Maturity of the Indebtedness to be refinanced or
refunded (or, if earlier, the Stated Maturity of the Notes), and the Average
Life of such new Indebtedness is at least equal to the remaining Average Life
of the Indebtedness to be refinanced or refunded (or, if less, the remaining
Average Life of the Notes); and provided
further that in no event may
Indebtedness of the Issuer be refinanced by means of any Indebtedness of any
Restricted Subsidiary of the Issuer other than any Foreign Subsidiary pursuant
to this clause (iii); and provided
further that if proceeds of revolving lines of credit are used to
repurchase, redeem or refinance any Indebtedness, the Issuer or any Restricted
Subsidiary may Incur Indebtedness otherwise meeting the requirements of this
clause (iii) to repay such revolving lines of credit;

(iv)          Indebtedness
(A) in respect of performance, surety or appeal bonds, letters of credit,
bankers acceptances provided in the ordinary course of business, (B) under
Currency Agreements, Commodity Agreements and Interest Rate Agreements; provided that such agreements (a) are
designed solely to protect the Issuer or its Restricted Subsidiaries against
fluctuations in foreign currency exchange rates or interest rates or commodity
prices and (b) do not increase the Indebtedness of the obligor outstanding
at any time other than as a result of fluctuations in foreign currency exchange
rates or interest rates or commodity prices or by reason of fees, indemnities
and compensation payable thereunder; and (C) arising from agreements
providing for indemnification, adjustment of purchase price or similar
obligations, or from Guarantees or letters of credit, surety bonds or
performance bonds securing any obligations of the Issuer or any of its Restricted
Subsidiaries pursuant to such agreements, in any case Incurred in connection
with the disposition of any business, assets or Restricted Subsidiary other
than Guarantees of Indebtedness Incurred by any Person acquiring all or any
portion of such business, assets or Restricted Subsidiary for the purpose of
financing such acquisition;

(v)           Indebtedness
of the Issuer, to the extent the net proceeds thereof are promptly (A) used to
purchase Notes tendered in an Offer to Purchase made as a result of a Change in
Control or (B) deposited to defease the Notes as set forth in Article
Eight;

(vi)          Guarantees
by the Issuer or any Restricted Subsidiary of Indebtedness of the Issuer or a
Restricted Subsidiary permitted to be incurred under this Indenture, 

 42
 

provided the Guarantee of such Indebtedness is permitted by and made in
accordance with Section 4.07;

(vii)         Indebtedness
of the Issuer and its Foreign Subsidiaries (in addition to Indebtedness
permitted under clauses (i) through (vi) above) in an aggregate principal
amount outstanding at any time (together with refinancings thereof) not to
exceed $225 million, less any amount of such Indebtedness permanently repaid as
provided under Section 4.11;

(viii)        Acquired
Indebtedness; provided that at
the time of Incurrence of such Indebtedness (1) the Issuer could Incur at
least $1.00 of Indebtedness under the first paragraph of clause (a) of this Section
4.03 or (2) the Interest Coverage Ratio, after giving effect to the
Incurrence of such Acquired Indebtedness, on a pro
forma basis, is no less than such ratio prior to giving pro forma effect to such Incurrence;

(ix)           Indebtedness
outstanding at any time in an aggregate amount (together with refinancings
thereof) equal to $100 million;

(x)            Indebtedness
Incurred by any Foreign Subsidiary; provided,
however, that, immediately after
giving effect to any such Incurrence, the aggregate principal amount of all
Indebtedness Incurred under this clause (x) and then outstanding does not
exceed the greater of (x) 60% of the book value of the inventory of such
Foreign Subsidiary and its Restricted Subsidiaries and (y) 90% of the book
value of the accounts receivable of such Foreign Subsidiary and its Restricted
Subsidiaries;

(xi)           Indebtedness
under industrial revenue bonds and letters of credit in support thereof;

(xii)          Indebtedness,
including Capitalized Lease Obligations, which the Issuer or any of its
Restricted Subsidiaries Incurs to finance the acquisition, construction or
improvement of fixed or capital assets, in an aggregate principal amount not to
exceed $250 million (together with refinancings thereof) in any calendar year
(on a pro rata basis for the
calendar year during which such transaction is consummated);

(xiii)         the
incurrence by a Receivables Subsidiary of Indebtedness in a Qualified
Securitization Transaction that is without recourse (other than pursuant to
representations, warranties, covenants and indemnities entered into in the
ordinary course of business in connection with a Qualified Securitization
Transaction) to the Issuer or to any Restricted Subsidiary of the Issuer or any
of their assets (other than such Receivables Subsidiary and its assets); and

(xiv)        Guarantees
with respect to bonds issued to support workers’ compensation and other similar
obligations incurred by the Issuer or any Restricted Subsidiary in the ordinary
course of business.

(b)           Notwithstanding
any other provision of clause (a) of this Section 4.03, the maximum
amount of Indebtedness that the Issuer or any Restricted Subsidiary of the
Issuer may Incur pursuant to this Section 4.03 shall not be deemed to be
exceeded with respect to any 

 43
 

outstanding Indebtedness due solely to the result of fluctuations in
the exchange rates of currencies.

(c)           For
purposes of determining any particular amount of Indebtedness under this Section
4.03, (1) Indebtedness Incurred under the Credit Agreement on or prior
to the Closing Date shall be treated as Incurred pursuant to clause (i) of the
second paragraph of this Section 4.03, (2) Guarantees, Liens or
obligations with respect to letters of credit supporting Indebtedness otherwise
included in the determination of such particular amount shall not be included
and (3) any Liens granted pursuant to the equal and ratable provisions
referred to in  Section 4.09 shall
not be treated as Indebtedness.  For
purposes of determining compliance with this Section 4.03, in the event
that an item of Indebtedness meets the criteria of more than one of the types
of Indebtedness described in the above clauses (other than Indebtedness
referred to in clause (1) of the preceding sentence), the Issuer, in its sole
discretion, shall classify, and from time to time may reclassify, such item of
Indebtedness and shall only be required to include the amount and type of such
Indebtedness in one of such clauses.

SECTION 4.04.  Limitation
on Restricted Payments.  The Issuer
will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, (i) declare or pay any dividend or make any distribution on or
with respect to its Capital Stock (other than (x) dividends or
distributions payable solely in shares of its Capital Stock (other than
Disqualified Stock) or in options, warrants or other rights to acquire shares
of such Capital Stock and (y) pro rata dividends or distributions on
common stock or any other equity interests (other than preferred stock) of
Restricted Subsidiaries held by minority stockholders) held by Persons other
than the Issuer or any of its Restricted Subsidiaries, (ii) purchase,
redeem, retire or otherwise acquire for value any shares of Capital Stock of
(A) the Issuer or an Unrestricted Subsidiary (including options, warrants
or other rights to acquire such shares of Capital Stock) held by any Person or
(B) a Restricted Subsidiary (including options, warrants or other rights
to acquire such shares of Capital Stock) held by any Affiliate of the Issuer
(other than a Restricted Subsidiary) or any holder (or any Affiliate of such
holder) of 5% or more of the Capital Stock of the Issuer, (iii) make any
voluntary or optional principal payment, or voluntary or optional redemption,
repurchase, defeasance, or other acquisition or retirement for value, of
Indebtedness of the Issuer that is subordinated in right of payment to the
Notes or (iv) make any Investment, other than a Permitted Investment, in
any other Person (such payments or any other actions described in
clauses (i) through (iv) above being collectively “Restricted
Payments”) if, at the time of, and after giving effect to, the proposed
Restricted Payment:

(A)          a Default or Event of
Default shall have occurred and be continuing,

(B)           the Issuer could not
Incur at least $1.00 of Indebtedness under the first paragraph of clause (a)
of  Section 4.03, or

(C)           the aggregate amount
of all Restricted Payments (the amount, if other than in cash, to be determined
in good faith by the Board of Directors, whose determination shall be
conclusive and evidenced by a Board Resolution delivered to the Trustee) made
after June 30, 2006 shall exceed the sum of

 44
 

(1)           50% of the aggregate amount of the
Adjusted Consolidated Net Income (or, if the Adjusted Consolidated Net Income
is a loss, minus 100% of the amount of such loss) (determined by excluding
income resulting from transfers of assets by the Issuer or a Restricted
Subsidiary to an Unrestricted Subsidiary) accrued on a cumulative basis during
the period (taken as one accounting period) beginning on June 30, 2006 and
ending on the last day of the last fiscal quarter preceding the Transaction
Date plus

(2)           the aggregate Net Cash Proceeds
received by the Issuer (or to the extent contributed to the Issuer, by SSCC)
after June 30, 2006 from the issuance and sale permitted by this Indenture of
its or SSCC’s Capital Stock (other than Disqualified Stock) to a Person who is
not a Subsidiary of the Issuer or SSCC, including an issuance or sale permitted
by this Indenture of Indebtedness of the Issuer or SSCC for cash subsequent to
the Closing Date upon the conversion of such Indebtedness into Capital Stock
(other than Disqualified Stock) of the Issuer or SSCC, or from the issuance to
a Person who is not a Subsidiary of the Issuer or SSCC of any options, warrants
or other rights to acquire Capital Stock of the Issuer or SSCC (in each case,
exclusive of any Disqualified Stock or any options, warrants or other rights that
are redeemable at the option of the holder, or are required to be redeemed,
prior to the Stated Maturity of the Notes) and the aggregate fair market value
(as determined in good faith by the Board of Directors) of non-cash capital
contributions to the Issuer after June 30, 2006 plus

(3)           an amount equal to the net reduction
in Investments (other than reductions in Permitted Investments) in any Person
since June 30, 2006 resulting from payments of interest on Indebtedness,
dividends, repayments of loans or advances, or other transfers of assets, in
each case to the Issuer or any Restricted Subsidiary or from the Net Cash
Proceeds from the sale of any such Investment (except, in each case, to the
extent any such payment or proceeds are included in the calculation of Adjusted
Consolidated Net Income), or from redesignations of Unrestricted Subsidiaries
as Restricted Subsidiaries (valued in each case as provided in the definition
of “Investments”), not to exceed, in each case, the amount of Investments
previously made by the Issuer or any Restricted Subsidiary in such Person or
Unrestricted Subsidiary.

The foregoing provision
shall not be violated by reason of:

(i)            the
payment of any dividend within 60 days after the date of declaration
thereof if, at said date of declaration, such payment would comply with the
foregoing paragraph;

(ii)           the
redemption, repurchase, defeasance or other acquisition or retirement for value
of Indebtedness the Issuer that is subordinated in right of payment to the
Notes (including premium, if any, and accrued and unpaid interest), as the case
may be, with the proceeds of, or in exchange for, Indebtedness Incurred under
clause (iii) of the second paragraph of part (a) of Section 4.03;

 45

(iii)          the repurchase, redemption or other
acquisition of Capital Stock of the Issuer or an Unrestricted Subsidiary (or
options, warrants or other rights to acquire such Capital Stock) in exchange
for, or out of the proceeds of a substantially concurrent offering of, shares
of Capital Stock (other than Disqualified Stock) of the Issuer (or options,
warrants or other rights to acquire such Capital Stock);

(iv)          the making of any principal payment or
the repurchase, redemption, retirement, defeasance or other acquisition for
value of Indebtedness of the Issuer which is subordinated in right of payment
to the Notes, as the case may be, in exchange for, or out of the proceeds of, a
substantially concurrent offering of, shares of the Capital Stock (other than
Disqualified Stock) of the Issuer (or options, warrants or other rights to
acquire such Capital Stock);

(v)           payments or distributions, to
dissenting stockholders pursuant to applicable law, pursuant to or in
connection with a consolidation, merger or transfer of assets that complies
with the provisions of this Indenture applicable to mergers, consolidations and
transfers of all or substantially all of the property and assets of the Issuer;

(vi)          Investments acquired as a capital
contribution or in exchange for, or Restricted Payments made out of, or
exchanged for, the proceeds of a substantially concurrent offering of, Capital
Stock (other than Disqualified Stock) of the Issuer;

(vii)         dividends, distributions or advances to
SSCC to allow SSCC to (x) declare and pay dividends on SSCC’s Preferred Stock,
or the interest on the subordinated notes into which it is convertible, in an
amount not to exceed $12 million in any calendar year and (y) redeem SSCC’s
Preferred Stock, or the subordinated notes into which it is convertible, on
February 15, 2012;

(viii)        other Restricted Payments in an
aggregate amount not to exceed $150 million;

(ix)           the making of any principal payment
or the repurchase, redemption, retirement, defeasance or other acquisition for
value of Indebtedness of the Issuer required pursuant to Section 4.11
and Section 4.12 or any similar covenants contained in any instrument or
agreement governing the Indebtedness of the Issuer, provided that the Issuer
shall first have complied with its obligations, if any, under Section 4.11
and 4.12 of this Indenture;

(x)            payment of dividends, other
distributions or other amounts by the Issuer to SSCC in amounts required for
SSCC to pay fees required to maintain its existence and provide for all other
operating costs of SSCC, including without limitation, in respect of director
fees and expenses, administrative, legal and accounting services provided by
third parties and other costs and expenses of being a public company, including
all costs and expenses with respect to filings with the SEC, of up to $5
million per fiscal year;

 46
 

(xi)           the purchase or acquisition of any
minority interests of any Subsidiary that is not Wholly Owned pursuant to
stockholder or other agreements in existence on the Closing Date;

(xii)          the making of Investments in
Unrestricted Subsidiaries and joint ventures in an aggregate amount not to
exceed in any fiscal year $50 million;

(xiii)         the repurchase of Capital Stock deemed
to occur upon exercise of stock options and warrants if Capital Stock
represents a portion of the exercise price of the options or warrants; and

(xiv)        (a) any payments pursuant to any
tax-sharing agreement between the Issuer and any other Person with which the
Issuer files a consolidated tax return or with which the Issuer is part of a
consolidated group for tax purposes or (b) in the event that, and for so long
as, the Issuer is organized as a limited liability company or partnership, the
payment of Permitted Tax Distributions,

provided
that, except in the case of clauses (i) and (iii), no Default or
Event of Default shall have occurred and be continuing or occur as a
consequence of the actions or payments set forth therein.

Each Restricted Payment permitted pursuant to the
preceding paragraph (other than the Restricted Payment referred to in clauses
(i), (ii), (vii), (x), (xi) and (xii) thereof, an exchange of Capital Stock for
Capital Stock or Indebtedness referred to in clause (iii) or (iv) thereof and
an Investment acquired as a capital contribution or in exchange for Capital
Stock referred to in clause (vi) thereof), and the Net Cash Proceeds from any
issuance of Capital Stock referred to in clauses (iii) and (iv), shall be
included in calculating whether the conditions of clause (C) of the first
paragraph of this Section 4.04 have been met with respect to any
subsequent Restricted Payments.  In the
event the proceeds of an issuance of Capital Stock of the Issuer are used for
the redemption, repurchase or other acquisition of the Notes, or Indebtedness
that is pari passu with the Notes,
then the Net Cash Proceeds of such issuance shall be included in clause (C) of
the first paragraph of this Section 4.04 only to the extent such
proceeds are not used for such redemption, repurchase or other acquisition of
Indebtedness.

Any Restricted Payments made other than in cash shall
be valued at fair market value.  The
amount of any Investment “outstanding” at any time shall be deemed to be equal
to the amount of such Investment on the date made, less the return of capital
to the Issuer and its Restricted Subsidiaries with respect to such Investment
(up to the amount of such Investment on the date made).

SECTION 4.05.  Limitation
on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.  The Issuer will not, and will not permit any
Restricted Subsidiary to, create or otherwise cause or suffer to exist or
become effective any consensual encumbrance or restriction of any kind on the
ability of any Restricted Subsidiary to (i) pay dividends or make any
other distributions permitted by applicable law on any Capital Stock of such
Restricted Subsidiary owned by the Issuer or any other Restricted Subsidiary,
(ii) pay any Indebtedness owed to the Issuer or any other Restricted
Subsidiary, (iii) make loans or advances 

 47
 

to the Issuer or any other Restricted Subsidiary or
(iv) transfer any of its property or assets to the Issuer or any other
Restricted Subsidiary.

The foregoing provisions shall not restrict any
encumbrances or restrictions:

(i)            existing on the Closing Date in the
Credit Agreement, this Indenture or any other agreements in effect on the
Closing Date, and any extensions, refinancings, renewals or replacements of any
of the foregoing; provided that
the encumbrances and restrictions in any such extensions, refinancings,
renewals or replacements are not materially less favorable taken as a whole to
the Holders than those encumbrances or restrictions that are then in effect and
that are being extended, refinanced, renewed or replaced;

(ii)           existing under or by reason of
applicable law;

(iii)          existing with respect to any Person or
the property or assets of such Person acquired by the Issuer or any Restricted
Subsidiary, existing at the time of such acquisition and not incurred in
contemplation thereof, which encumbrances or restrictions are not applicable to
any Person or the property or assets of any Person other than such Person or
the property or assets of such Person so acquired;

(iv)          in the case of clause (iv) of the
first paragraph of this Section 4.05, (A) that restrict in a customary
manner the subletting, assignment or transfer of any property or asset that is
a lease, license, conveyance or contract or similar property or asset,
(B) existing by virtue of any transfer of, agreement to transfer, option
or right with respect to, or Lien on, any property or assets of the Issuer or
any Restricted Subsidiary not otherwise prohibited by this Indenture or
(C) arising or agreed to in the ordinary course of business, not
relating to any Indebtedness, and that do not, individually or in the
aggregate, detract from the value of property or assets of the Issuer or any
Restricted Subsidiary in any manner material to the Issuer and its Restricted
Subsidiaries taken as a whole;

(v)           with respect to a Restricted
Subsidiary and imposed pursuant to an agreement that has been entered into for
the sale or disposition of all or substantially all of the Capital Stock of, or
property and assets of, such Restricted Subsidiary;

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

(vii)         any agreement or instrument governing
Indebtedness (whether or not outstanding) of any Foreign Subsidiary of the
Issuer permitted to be incurred pursuant to clause (x) under Section 4.03(a)
so long as (1) such agreement or instrument is not applicable to any
Person or the property or assets of any Person other than such Foreign Subsidiary
or the property or assets of such Foreign Subsidiary and its Foreign
Subsidiaries and (2) not more than 20% of such Foreign Subsidiary’s assets
are located in the United States; and

 48
 

(viii)        any restriction in any agreement or
instrument of a Receivables Subsidiary governing a Qualified Securitization
Transaction.

Nothing contained in this
Section 4.05 shall prevent the Issuer or any Restricted Subsidiary from
(1) creating, incurring, assuming or suffering to exist any Liens
otherwise permitted by Section 4.09 or (2) restricting the sale or
other disposition of property or assets of the Issuer or any of its Restricted
Subsidiaries that secure Indebtedness of the Issuer or any of its Restricted
Subsidiaries.

SECTION 4.06.  Limitation
on the Issuance and Sale of Capital Stock of Restricted Subsidiaries.  The Issuer will not sell, and will not permit
any Restricted Subsidiary, directly or indirectly, to issue or sell, any shares
of Capital Stock of a Restricted Subsidiary (including options, warrants or
other rights to purchase shares of such Capital Stock) except:

(i)            to the Issuer or a Wholly Owned
Restricted Subsidiary;

(ii)           issuances of director’s qualifying
shares or sales to foreign nationals of shares of Capital Stock of Foreign
Subsidiaries, to the extent required by applicable law;

(iii)          if, immediately after giving effect to
such issuance or sale, such Restricted Subsidiary would no longer constitute a
Restricted Subsidiary and any Investment in such Person remaining after giving
effect to such issuance or sale would have been permitted to be made under Section
4.04 if made on the date of such issuance or sale; or

(iv)          the sale or issuance of common stock
(other than Disqualified Stock) of Restricted Subsidiaries, if the proceeds
from such issuance and sale are applied in accordance with  Section 4.11.

SECTION 4.07.  Limitation
on Issuances of Guarantees by Restricted Subsidiaries.  The Issuer will not permit any Restricted
Subsidiary, directly or indirectly, to Guarantee any Indebtedness of the Issuer
which is pari passu with or
subordinate in right of payment to the Notes (“Guaranteed Indebtedness”),
unless (i) such Restricted Subsidiary promptly executes and delivers a
supplemental indenture to this Indenture providing for a Guarantee (a “Subsidiary
Guarantee”) of payment of the Notes by such Restricted Subsidiary and
(ii) such Restricted Subsidiary waives and will not in any manner
whatsoever claim or take the benefit or advantage of, for so long as any Notes
remain outstanding under this Indenture, any rights of reimbursement, indemnity
or subrogation or any other rights against the Issuer or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
Subsidiary Guarantee; provided
that this paragraph shall not be applicable to any Guarantee of any Restricted
Subsidiary (1) in existence on the Closing Date and any renewal, extension
refinancing or replacement thereof, (2) that existed at the time such
Person became a Restricted Subsidiary and was not Incurred in connection with,
or in contemplation of, such Person becoming a Restricted Subsidiary,
(3) of the Indebtedness Incurred under the Credit Agreement; provided that such Restricted Subsidiary
is an Existing Guarantor, a Foreign Subsidiary, a Guarantor or any other
Restricted Subsidiary other than a Significant Subsidiary, (4) any
Guarantee arising under or in connection with performance bonds, indemnity
bonds, surety bonds or letters of credit or bankers’ acceptances or
(5) any Guarantee of any Interest Rate 

 49
 

Agreements, Currency Agreement or Commodity
Agreement.  If the Guaranteed
Indebtedness is (A) pari passu
with the Notes, then the Guarantee of such Guaranteed Indebtedness shall be pari passu with, or subordinated to, the
Subsidiary Guarantee or (B) subordinated to the Notes, then the Guarantee
of such Guaranteed Indebtedness shall be subordinated to the Subsidiary
Guarantee at least to the extent that the Guaranteed Indebtedness is
subordinated to the Notes.

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

SECTION 4.08.  Limitation
on Transactions with Stockholders and Affiliates.  The Issuer will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, enter into, renew or extend
any transaction (including, without limitation, the purchase, sale, lease or
exchange of property or assets, or the rendering of any service) with any
holder (or any Affiliate of such holder) of 5% or more of any class of Capital
Stock of the Issuer or with any Affiliate of the Issuer or any Restricted
Subsidiary, except upon fair and reasonable terms no less favorable to the
Issuer or such Restricted Subsidiary than could be obtained, at the time of
such transaction or, if such transaction is pursuant to a written agreement, at
the time of the execution of the agreement providing therefor, in a comparable
arm’s-length transaction with a Person that is not such a holder or an
Affiliate.

The foregoing limitation does not limit, and shall not
apply to:

(i)            transactions (A) approved by a
majority of the Board of Directors (and, if there are disinterested directors,
a majority thereof) or (B) for which the Issuer or a Restricted Subsidiary
delivers to the Trustee a written opinion of a nationally recognized investment
banking firm or a nationally recognized accounting firm stating that the
transaction is fair or, in the case of an opinion of a nationally recognized
accounting firm, reasonable or fair to the Issuer or such Restricted Subsidiary
from a financial point of view;

(ii)           any transaction solely between the
Issuer and any of its Restricted Subsidiaries or solely between Restricted
Subsidiaries;

(iii)          the payment of reasonable and
customary regular fees to directors of the Issuer or any Restricted Subsidiary
who are not employees of the Issuer or any Restricted Subsidiary;

(iv)          any payments or other transactions
pursuant to any tax-sharing agreement between the Issuer and any other Person
with which the Issuer files a consolidated tax return or with which the Issuer
is part of a consolidated group for tax purposes;

 50
 

(v)           any sale of shares of Capital Stock
(other than Disqualified Stock) of the Issuer;

(vi)          any Restricted Payments not prohibited
by Section 4.04;

(vii)         any merger, consolidation or sale of
assets permitted by Section 5.01;

(viii)        the existence of, or performance by the
Issuer or any Restricted Subsidiary under, any agreement in existence on the
Closing Date approved by the Committee of the Board or any amendment thereto or
replacement agreement therefor so long as such amendment or replacement is not
materially less favorable taken as a whole to the Holders than the original
agreement as in effect on the Closing Date; provided
that the Issuer or any of its Restricted Subsidiaries receives reasonable
compensation therefor;

(ix)           any agreement or transaction relating
to the creation of a captive insurance subsidiary of SSCC that provides
insurance for self-insurance and any other future programs reasonably similar
thereto or to the medical liability program in existence on the Closing Date, provided that the costs borne by the
Issuer and its Restricted Subsidiaries are reasonable in relation to the
services and benefits the Issuer and its Restricted Subsidiaries receive
therefrom;

(x)            the provision of management,
financial and operational services by the Issuer and its Subsidiaries to
Affiliates of the Issuer; provided
that the Issuer or any of its Restricted Subsidiaries receives reasonable
compensation therefor;

(xi)           other transactions arising in the
ordinary course of business in accordance with the past practices of the Issuer
and its Restricted Subsidiaries prior to the Closing Date (including, without
limitation, purchase or supply contracts relating to products or raw
materials); provided that the
Issuer or any of its Restricted Subsidiaries receives reasonable compensation
therefor; and

(xii)          transactions in connection with a
Qualified Securitization Transaction.

Notwithstanding the foregoing, any transaction or
series of related transactions covered by the first paragraph of this Section
4.08 and not covered by clauses (ii) through (xii) of this paragraph,
(a) the aggregate amount of which exceeds $50 million in value, must be
approved or determined to be fair in the manner provided for in clause (i)(A)
or (B) above and (b) the aggregate amount of which exceeds $100 million in
value, must be determined to be fair in the manner provided for in clause
(i)(B) above.

SECTION 4.09.  Limitation
on Liens.  The Issuer will not, and
will not permit any Restricted Subsidiary to, create, incur, assume or suffer
to exist any Lien on any of its assets or properties of any character, or any
shares of Capital Stock or Indebtedness of any Restricted Subsidiary, without
making effective provision for all of the Notes and all other amounts due under
this Indenture to be directly secured equally and ratably with (or, if the
obligation or liability to be secured by such Lien is subordinated in right of
payment to the Notes, prior to) the obligation or liability secured by such
Lien unless, after giving effect thereto, the aggregate amount of any
Indebtedness so secured, plus the
Attributable Indebtedness for all sale-leaseback 

 51
 

transactions restricted as described in Section
4.10, does not exceed 10% of Adjusted Consolidated Net Tangible Assets.

The foregoing limitation does not apply to:

(i)            Liens securing Indebtedness
permitted pursuant to clauses (i) and (ix) of Section 4.03(a), and Liens
on assets that secure the Box Plant Financing as of or immediately prior to the
Closing Date or that secured the First Mortgage Notes as of January 25,
2001 (prior to giving effect to the repayment thereof);

(ii)           Liens existing on the Closing Date
(including Liens securing obligations under the Box Plant Financing);

(iii)          Liens granted after the Closing Date
on any assets or Capital Stock of the Issuer or its Restricted Subsidiaries
created in favor of the Holders;

(iv)          Liens with respect to the assets of a
Restricted Subsidiary granted by such Restricted Subsidiary to the Issuer or a
Wholly Owned Restricted Subsidiary to secure Indebtedness owing to the Issuer
or such other Restricted Subsidiary;

(v)           Liens securing Indebtedness which is
Incurred to refinance secured Indebtedness which is permitted to be Incurred
under clause (iii) of Section 4.03(a); provided that such Liens do not extend to or cover any
property or assets of the Issuer or any Restricted Subsidiary other than the
property or assets securing the Indebtedness being refinanced;

(vi)          Liens on any property or assets or
capital stock of a Restricted Subsidiary securing Indebtedness of such
Restricted Subsidiary permitted under Section 4.03;

(vii)         Permitted Liens;

(viii)        Liens securing Indebtedness that is
permitted to be Incurred under clause (viii) of Section 4.03(a); provided that the assets subject to such
Liens are assets of the acquired entity and its subsidiaries; and

(ix)           Liens securing Indebtedness and
related obligations, in each case that is permitted to be Incurred under
clauses (x) and (xi) of Section 4.03(a).

SECTION 4.10.  Limitation
on Sale-Leaseback Transactions.  The
Issuer will not, and will not permit any Restricted Subsidiary to, enter into
any sale-leaseback transaction involving any of its assets or properties
whether now owned or hereafter acquired, whereby the Issuer or a Restricted
Subsidiary sells or otherwise transfers such assets or properties and then or
thereafter leases such assets or properties or any part thereof or any other
assets or properties which the Issuer or such Restricted Subsidiary, as the
case may be, intends to use for substantially the same purpose or purposes as
the assets or properties sold or transferred, unless the aggregate amount of
all Attributable Indebtedness with respect to such transactions, plus all Indebtedness secured solely by
Liens permitted by the first paragraph of Section 4.09, does not exceed
10% of Adjusted Consolidated Net Tangible Assets.

 52
 

The foregoing restriction does not apply to any
sale-leaseback transaction if (i) the lease is for a period, including
renewal rights, of not in excess of three years; (ii) the sale or transfer
of property is entered into prior to, at the time of, or within 12 months after
the later of the acquisition of the property or the completion of construction
thereof; (iii) the lease secures or relates to industrial revenue or
pollution control bonds; (iv) the transaction is solely between the Issuer
and any Restricted Subsidiary or solely between Restricted Subsidiaries; or
(v) the Issuer or such Restricted Subsidiary, within 12 months after the
sale or transfer of any assets or properties is completed, applies an amount
not less than the net proceeds received from such sale in accordance with
clause (A) or (B) of Section 4.11.

SECTION 4.11.  Limitation
on Asset Sales.  The Issuer will not,
and will not permit any Restricted Subsidiary to, consummate any Asset Sale,
unless (i) the consideration received by the Issuer or such Restricted
Subsidiary is at the time of such Asset Sale, taken as a whole, at least equal
to the fair market value of the assets or Capital Stock sold or disposed of and
(ii) at least 75% of the consideration received consists of cash or
Temporary Cash Investments or the assumption of Indebtedness of the Issuer or
any Restricted Subsidiary (other than Indebtedness to the Issuer or any
Restricted Subsidiary), provided
that the Issuer or such Restricted Subsidiary is irrevocably and
unconditionally released from all liability under such Indebtedness.

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

(a)           any liabilities (as shown on the
Issuer’s or such Restricted Subsidiary’s most recent balance sheet) of the
Issuer 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; and

(b)           any securities, notes or other
obligations received by the Issuer or any such Restricted Subsidiary from such
transferee that are converted, sold or exchanged by the Issuer or such
Restricted Subsidiary into cash within 90 days of the related Asset Sale (to
the extent of the cash received in that conversion); and

(c)           any Designated Noncash Consideration
received by the Issuer or any of its Restricted Subsidiaries in such Asset Sale
having an aggregate fair market value, taken together with all other Designated
Noncash Consideration received since the date of this Indenture pursuant to
this clause (c) that is at that time outstanding, not to exceed 10% of Adjusted
Consolidated Net Tangible Assets at the time of the receipt of such Designated
Noncash Consideration (with the fair market value of each item of such
Designated Noncash Consideration being measured at the time received and
without giving effect to subsequent changes in value).

In the event and to the extent that the Net Cash
Proceeds received by the Issuer or any of its Restricted Subsidiaries from one
or more Asset Sales occurring on or after the Closing Date in any period of
12 consecutive months exceed 10% of Adjusted Consolidated Net Tangible
Assets (determined as of the date closest to the commencement of such 12-month
period for which a consolidated balance sheet of the Issuer and its Subsidiaries
has been prepared), then the Issuer shall or shall cause the relevant
Restricted Subsidiary to:

 53
 

(i)            within 12 months after the date Net
Cash Proceeds so received exceed 10% of Adjusted Consolidated Net Tangible
Assets

(A)          apply an amount equal to such excess
Net Cash Proceeds to permanently repay unsubordinated Indebtedness of the
Issuer or any Restricted Subsidiary owing to a Person other than the Issuer or
any of its Restricted Subsidiaries, or

(B)           invest an equal amount, or the amount
not so applied pursuant to clause (A) (or enter into a definitive
agreement committing to so invest within 12 months after the date of such
agreement), in property or assets (other than current assets) of a nature or
type or that are used in a business (or in a company having property and assets
of a nature or type, or engaged in a business) similar or related to the nature
or type of the property and assets of, or the business of, the Issuer and its
Restricted Subsidiaries existing on the date of such investment, and

(ii)           apply (no later than the end of the
12-month period referred to in clause (i)) such excess Net Cash Proceeds
(to the extent not applied pursuant to clause (i)) as provided in the
following paragraph of this Section 4.11.

The amount of such excess Net Cash Proceeds required
to be applied (or to be committed to be applied) during such 12-month period as
set forth in clause (i) of the preceding sentence and not applied as so
required by the end of such period shall constitute “Excess Proceeds.”

If, as of the first day of any calendar month, the
aggregate amount of Excess Proceeds not theretofore subject to an Offer to
Purchase pursuant to this Section 4.11 totals at least $50 million for
the calendar year in which such calendar month occurs, the Issuer must
commence, not later than the fifteenth Business Day of such month, an Offer to
Purchase from the Holders (and if required by the terms of any Indebtedness
that is pari passu with the Notes
(“Pari Passu Indebtedness”), from the holders of such Pari Passu
Indebtedness) on a pro rata basis an aggregate principal amount of Notes (and
Pari Passu Indebtedness) equal to the Excess Proceeds on such date, at a
purchase price equal to 100% of the principal amount thereof, plus, in each
case, accrued interest (if any) to the Payment Date; provided, however,
that, if the aggregate purchase price to be paid on or before the fifth
anniversary of the Closing Date by the Issuer to Holders that shall have
tendered Notes pursuant to an Offer to Purchase made as a result of an issuance
of common stock of a Restricted Subsidiary shall exceed 25% of the original
principal amount of the Notes (the “Notes Threshold Amount”), taking
into account all other amounts paid as a result of any prior Offers to Purchase
made as a result of issuances of common stock of Restricted Subsidiaries, then,
notwithstanding anything to the contrary in this Indenture, such Offer to
Purchase shall be limited to the Notes Threshold Amount.  If any Excess Proceeds remain after
consummation of an Offer to Purchase, the Issuer or any Restricted Subsidiary
may use such Excess Proceeds for any purpose not otherwise prohibited by this
Indenture.

SECTION 4.12.  Repurchase
of Notes upon a Change of Control. 
The Issuer shall commence, within 30 days of the occurrence of a Change
of Control, and thereafter consummate an Offer to Purchase for all Notes then
outstanding, at a purchase price equal to 101% of the principal amount thereof,
plus accrued interest, if any, to the Payment Date.

 54
 

SECTION 4.13.  Existence.  Except to the extent otherwise permitted
under any provision in Article Four or Five of this Indenture, the Issuer will
do or cause to be done all things necessary to preserve and keep in full force
and effect its existence and the existence of each of its Restricted
Subsidiaries in accordance with the respective organizational documents of the
Issuer and each Restricted Subsidiary and the material rights (whether pursuant
to charter, partnership certificate, agreement, statute or otherwise), licenses
and franchises of the Issuer and each Restricted Subsidiary; provided that the Issuer shall not be
required to preserve any such right, license or franchise, or the existence of
any Restricted Subsidiary, if the maintenance or preservation thereof is no longer
desirable in the conduct of the business of the Issuer and its Restricted
Subsidiaries taken as a whole; and provided
further that any Restricted Subsidiary may consolidate with, merge
into, or sell, convey, transfer, lease or otherwise dispose of all or part of
its property and assets (and the Issuer may take any actions to affect any of
the foregoing) to or with the Issuer or any Wholly Owned Subsidiary of the
Issuer.

SECTION 4.14.  Payment
of Taxes and Other Claims.  The
Issuer will pay or discharge and shall cause each of its Subsidiaries to pay or
discharge, or cause to be paid or discharged, before any penalty accrues
thereon (i) all material taxes, assessments and governmental charges
levied or imposed upon (a) the Issuer, any such Restricted Subsidiary or
any other Subsidiary for which the Issuer or any Restricted Subsidiary may be
liable, (b) the income or profits of any such Restricted Subsidiary which
is a corporation or (c) the property of the Issuer or any such Restricted
Subsidiary and (ii) all material lawful claims for labor, materials and
supplies that, if unpaid, might by law become a Lien upon the property of the
Issuer or any such Restricted Subsidiary; provided
that the Issuer shall not be required to pay or discharge, or cause to be paid
or discharged, any such tax, assessment, charge or claim the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and for which adequate reserves have been established.

SECTION 4.15.  Maintenance
of Properties and Insurance.  The
Issuer will cause all properties used or useful in the conduct of its business
or the business of any of its Restricted Subsidiaries material to the Issuer
and its Restricted Subsidiaries taken as a whole to be maintained and kept in
normal condition, repair and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals and
replacements thereof, all as in the judgment of the Issuer may be necessary so
that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided
that nothing in this Section 4.15 shall prevent the Issuer or any
Restricted Subsidiary from discontinuing the use, operation or maintenance of
any of such properties or disposing of any of them, if such discontinuance or
disposal is, in the judgment of the Issuer, desirable in the conduct of the
business of the Issuer or such Restricted Subsidiary.

The Issuer will provide or cause to be provided, for
itself and its Restricted Subsidiaries, insurance (including appropriate
self-insurance) against loss or damage of the kinds customarily insured against
by corporations similarly situated and owning like properties, including, but
not limited to, products liability insurance and public liability insurance,
with reputable insurers or with the government of the United States of America,
or an agency or instrumentality thereof, in such amounts, with such deductibles
and by such methods as shall be customary for corporations similarly situated
in the industry in which the Issuer or any such Restricted Subsidiary, as the
case may be, is then conducting business.

 55
 

SECTION 4.16.  Notice
of Defaults.  In the event that any
Officer becomes aware of any Default or Event of Default, the Issuer shall
promptly give written notice thereof to the Trustee.

SECTION 4.17.  Compliance
Certificates.  (a)  The Issuer shall deliver to the Trustee,
within 90 days after the end of each fiscal year, an Officers’ Certificate
stating whether or not the signers know of any Default or Event of Default by
the Issuer that occurred during such fiscal year.  Such certificate shall contain a
certification from the principal executive officer, principal financial officer
or principal accounting officer of the Issuer, as the case may be, as to his or
her knowledge of the Issuer’s compliance with all conditions and covenants
under this Indenture.  For purposes of
this Section 4.17, such compliance shall be determined without regard to
any period of grace or requirement of notice provided under this
Indenture.  If any of the officers of the
Issuer signing such certificate has knowledge of such a Default or Event of
Default, the certificate shall describe any such Default or Event of Default
and its status.  The first certificate to
be delivered pursuant to this Section 4.17(a) shall be for the first
fiscal year beginning after the execution of this Indenture.

(b)           The
Issuer shall deliver to the Trustee, within 90 days after the end of each
fiscal year, beginning with the fiscal year in which this Indenture was
executed, a certificate signed by the Issuer’s independent certified public
accountants stating (i) that their audit examination has included a review
of the terms of this Indenture and the Notes as they relate to accounting
matters, (ii) that they have read the most recent Officers’ Certificates
delivered to the Trustee pursuant to paragraph (a) of this Section 4.17
and (iii) whether, in connection with their audit examination, anything
came to their attention that caused them to believe that the Issuer was not in
compliance with any of the terms, covenants, provisions or conditions of
Article Four and Section 5.01 of this Indenture as they pertain to
accounting matters and, if any Default or Event of Default has come to their
attention, specifying the nature and period of existence thereof; provided that such independent certified
public accountants shall not be liable in respect of such statement by reason
of any failure to obtain knowledge of any such Default or Event of Default that
would not be disclosed in the course of an audit examination conducted in
accordance with generally accepted auditing standards in effect at the date of
such examination.  The Issuer shall not
be required to comply with the foregoing clause (b) with respect to any fiscal
year if such compliance would be contrary to the recommendations of the
American Institute of Certified Public Accountants or the requirements or
recommendations of the Public Company Accounting Oversight Board so long as the
Issuer delivers to the Trustee within 90 days after the end of such fiscal year
an Officer’s Certificate stating that such compliance would be so contrary and
any facts particular to the Issuer that may have caused such compliance to be
so contrary.

SECTION 4.18.  Commission
Reports and Reports to Holders. 
Whether or not the Issuer is then required to file reports with the
Commission, the Issuer shall file with the Commission all such reports and
other information as it would be required to file with the Commission by
Section 13(a) or 15(d) under the Exchange Act if it were subject thereto (provided that the Issuer need not file
such reports or other information if, and so long as, it would not be required
to do so pursuant to Rule 12h-5 under the Exchange Act).  The Issuer shall supply the Trustee with
copies of such reports and other information within 15 days after the date it
files such reports or other information with the Commission.  In addition, with respect to any Notes, at
all times prior to the earlier of the date of the registration of the Notes
pursuant to and 

 56
 

in accordance with the terms of the Registration
Rights Agreement or any other registration rights agreement (the “Registration”)
and the date that is nine months after the initial issuance date of the Notes,
the Issuer shall, at its cost, deliver to each Holder of the Notes quarterly
and annual reports substantially equivalent to those which would be required by
the Exchange Act.  In addition, at all
times prior to the Registration, upon the request of any Holder or any
prospective purchaser of the Notes designated by a Holder, the Issuer shall
supply to such Holder or such prospective purchaser the information required
under Rule 144A(d)(4) under the Securities Act. 
The Issuer also shall comply with the other provisions of TIA Section
314(a) to the extent required thereby. 
Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Issuer’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).

SECTION 4.19.  Waiver of Stay,
Extension or Usury Laws.  The Issuer
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law or any usury law or other
law that would prohibit or forgive the Issuer from paying all or any portion of
the principal of, premium, if any, or interest on the Notes as contemplated
herein or in the Notes, wherever enacted, now or at any time hereafter in
force, or that may affect the covenants or the performance of this Indenture;
and (to the extent that it may lawfully do so) the Issuer hereby expressly
waives all benefit or advantage of any such law and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

SECTION 4.20.  Intentionally
Omitted.

SECTION 4.21.  Intentionally
Omitted.

ARTICLE Five

SUCCESSOR CORPORATION

SECTION 5.01.  When
Issuer May Merge, Etc.  The Issuer
shall not consolidate with, or merge with or into any other Person (whether or
not the Issuer shall be the surviving Person), or sell, assign, transfer or lease
all or substantially all of its properties and assets as an entirety or
substantially as an entirety to any Person or group of affiliated Persons, in
one transaction or a series of related transactions, unless:

(1)           either
the Issuer shall be the continuing Person or the Person (if other than the
Issuer) formed by such consolidation or with which or into which the Issuer is
merged or the Person (or group of affiliated Persons) to which all or
substantially all the properties and assets of the Issuer are sold, assigned,
transferred or leased is a corporation (or constitutes a corporation) organized
under the laws of the United States of America or any State thereof or the
District of Columbia and expressly assumes, by an indenture supplemental to
this Indenture, all the obligations of the Issuer under the Notes and this
Indenture;

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(2)           immediately
before and after giving effect to such transaction or series of related
transactions, no Event of Default, and no Default, shall have occurred and be
continuing;

(3)           immediately
after giving effect to such transaction or series of related transactions on a
pro forma basis, the Consolidated Net Worth of the Issuer (or of the surviving,
consolidated or transferee entity if the Issuer is not continuing, treating
such entity as the Issuer for purposes of determining Consolidated Net Worth)
shall be at least equal to the Consolidated Net Worth of the Issuer immediately
before such transaction or series of related transactions; and

(4)           immediately
after giving effect to such transaction or series of related transactions on a
pro forma basis, either (A) the Issuer (or the surviving, consolidated or
transferee entity if, in the case of such consolidation, merger, sale,
assignment, transfer or lease with respect to the Issuer, the Issuer is not
continuing, but treating such entity as the Issuer for purposes of making such
determination) would be permitted to incur an additional $1.00 of Indebtedness
under the first paragraph of clause (a) of Section 4.03 or
(B) the Interest Coverage Ratio of the Issuer (or the surviving,
consolidated or transferee entity if, in the case of such consolidation,
merger, sale, assignment, transfer or lease with respect to the Issuer, the
Issuer is not continuing, treating such entity as the Issuer for purposes of
determining the Interest Coverage Ratio) shall be at least equal to the
Interest Coverage Ratio of the Issuer immediately before such transaction or
series of related transactions; provided,
however, that the foregoing
provisions of this clause (4) shall be inapplicable to such transaction or
series of related transactions if such transaction or series of related
transactions would result in the occurrence of a Change of Control.

SECTION 5.02.  Successor
Substituted.  Upon any consolidation
or merger, or any sale, conveyance, transfer, lease or other disposition of all
or substantially all of the property and assets of the Issuer in accordance
with Section 5.01 of this Indenture, the successor Person formed by such
consolidation or into which the Issuer is merged or to which such sale,
conveyance, transfer, lease or other disposition is made shall succeed to, and
be substituted for, and may exercise every right and power of, the Issuer under
this Indenture with the same effect as if such successor Person had been named
as the Issuer herein; provided
that the Issuer shall not be released from its obligation to pay the principal
of, premium, if any, or interest on the Notes in the case of a lease of all or
substantially all of its property and assets.

ARTICLE Six

DEFAULT AND REMEDIES

SECTION 6.01.  Events
of Default.  Any of the following
events shall constitute an “Event of Default” hereunder with respect to
the Notes:

(a)           default in the payment of principal
of (or premium, if any, on) any Note when the same becomes due and payable at
maturity, upon acceleration, redemption or otherwise;

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(b)           default in the payment of interest or
Additional Interest, if any, on any Note when the same becomes due and payable,
and such default continues for a period of 30 days;

(c)           default in the performance or breach
of the provisions of this Indenture applicable to mergers, consolidations and
transfers of all or substantially all of the assets of the Issuer or the
failure to make or consummate an Offer to Purchase in accordance with Section
4.11 or Section 4.12;

(d)           the Issuer defaults in the
performance of or breaches any other covenant or agreement of the Issuer in
this Indenture or under the Notes (other than a default specified in clause
(a), (b) or (c) above) and such default or breach continues for a period of 45
consecutive days after written notice by the Trustee or the Holders of 25% or
more in aggregate principal amount of the Notes;

(e)           there occurs with respect to any
issue or issues of Indebtedness of the Issuer or any Significant Subsidiary
having an outstanding principal amount of $40 million or more in the
aggregate for all such issues of all such Persons, whether such Indebtedness
now exists or shall hereafter be created, (I) an event of default that has
caused the holder thereof to declare such Indebtedness to be due and payable
prior to its Stated Maturity and such Indebtedness has not been discharged in
full or such acceleration has not been rescinded or annulled within
30 days of such acceleration and/or (II) the failure to make a principal
payment at the final (but not any interim) fixed maturity and such defaulted
payment shall not have been made, waived or extended within 30 days of such
payment default;

(f)            any final judgment or order (not
covered by insurance) for the payment of money in excess of $40 million in
the aggregate for all such final judgments or orders against all such Persons
(treating any deductibles, self-insurance or retention as not so covered) shall
be rendered against the Issuer or any Significant Subsidiary and shall not be
paid or discharged, and there shall be any period of 60 consecutive days
following entry of the final judgment or order that causes the aggregate amount
for all such final judgments or orders outstanding and not paid or discharged
against all such Persons to exceed $40 million during which a stay of
enforcement of such final judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect;

(g)           a court having jurisdiction in the
premises enters a decree or order for (A) relief in respect of the Issuer
or any Significant Subsidiary in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect,
(B) appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Issuer or any Significant Subsidiary or
for all or substantially all of the property and assets of the Issuer or any
Significant Subsidiary or (C) the winding up or liquidation of the affairs
of the Issuer or any Significant Subsidiary and, in each case, such decree or
order shall remain unstayed and in effect for a period of 60 consecutive
days; or

 59
 

(h)           the Issuer or any Significant
Subsidiary (A) commences a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consents to the
entry of an order for relief in an involuntary case under any such law,
(B) consents to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of
the Issuer or any Significant Subsidiary or for all or substantially all of the
property and assets of the Issuer or any Significant Subsidiary or
(C) effects any general assignment for the benefit of creditors.

SECTION 6.02.  Acceleration.  If an Event of Default (other than an Event
of Default specified in clause (g) or (h) of Section 6.01 that occurs
with respect to the Issuer) with respect to the Notes at the time outstanding
occurs and is continuing under this Indenture, the Trustee or the Holders of at
least 25% in aggregate principal amount of the Notes then outstanding, by
written notice to the Issuer (and to the Trustee if such notice is given by the
Holders), may, and the Trustee at the request of such Holders shall, declare
the principal of, premium, if any, and accrued interest on all of the Notes to
be immediately due and payable.  Upon a
declaration of acceleration, such principal, premium, if any, and accrued
interest shall be immediately due and payable. 
In the event of a declaration of acceleration because an Event of
Default set forth in clause (e) of Section 6.01 has occurred and is
continuing, such declaration of acceleration shall be automatically rescinded
and annulled if the event of default triggering such Event of Default pursuant
to clause (e) shall be remedied or cured by the Issuer or the relevant
Significant Subsidiary or waived by the holders of the relevant Indebtedness
within 60 days after the declaration of acceleration with respect thereto. If
an Event of Default specified in clause (g) or (h) of Section 6.01
occurs with respect to the Issuer, the principal of, premium, if any, and
accrued interest on all the Notes then outstanding shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.

At any time after such declaration of acceleration
with respect to the Notes, but before a judgment or decree for the payment of
the money due has been obtained by the Trustee, the Holders of at least a
majority in principal amount of the outstanding Notes by written notice to the
Issuer and to the Trustee, may waive all past Defaults and rescind and annul a
declaration of acceleration and its consequences if (a) the Issuer has
paid or deposited with the Trustee a sum sufficient to pay (i) all sums
paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
(ii) all overdue interest on all Notes then outstanding, (iii) the
principal of and premium, if any, on any Notes then outstanding that have
become due otherwise than by such declaration or occurrence of acceleration and
interest thereon at the rate prescribed therefor by such Notes, and
(iv) to the extent that payment of such interest is lawful, interest upon
overdue interest, if any, at the rate prescribed therefor by such Notes,
(b) all existing Events of Default with respect to Notes, other than the non-payment
of the principal of, premium, if any, and accrued interest on the Notes that
have become due solely by such declaration of acceleration, have been cured or
waived and (c) the rescission would not conflict with any judgment or
decree of a court of competent jurisdiction.

SECTION 6.03.  Other
Remedies.  If an Event of Default
with respect to Notes at the time outstanding occurs and is continuing, the
Trustee may, and at the direction of the Holders of at least a majority in
principal amount of the outstanding Notes shall, pursue any

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available remedy by proceeding at law or in equity to
collect the payment of principal of, premium, if any, or interest 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.

SECTION 6.04.  Waiver
of Past Defaults.  Subject to Sections
6.02, 6.07 and 9.02, the Holders of at least a majority in
principal amount of the outstanding Notes, by notice to the Trustee, may on
behalf of the Holders of all the Notes waive an existing Default or Event of
Default and its consequences, except a Default in the payment of principal of,
premium, if any, or interest on any Note as specified in clause (a) or (b) of Section
6.01 or in respect of a covenant or provision of this Indenture which
cannot be modified or amended without the consent of the Holder of each
outstanding Note affected.  Upon any such
waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereto.

SECTION 6.05.  Control
by Majority.  The Holders of at least
a majority in aggregate principal amount of the outstanding Notes may direct
the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee; provided that the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture, that may involve the Trustee in personal liability, or that the
Trustee determines in good faith may be unduly prejudicial to the rights of Holders
of Notes not joining in the giving of such direction; and provided further that
the Trustee may take any other action it deems proper that is not inconsistent
with any such direction received from Holders of Notes.

SECTION 6.06.  Limitation
on Suits.  A Holder of any Note may
not institute any proceeding, judicial or otherwise, with respect to this
Indenture or the Notes, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless:

(i)            the Holder has
previously given the Trustee written notice of a continuing Event of Default
with respect to the Notes;

(ii)           the Holders of at least
25% in aggregate principal amount of outstanding Notes shall have made a
written request to the Trustee to pursue such remedy;

(iii)          such Holder or Holders
offer the Trustee indemnity reasonably satisfactory to the Trustee against any
costs, liability or expense;

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

(v)           during such 60-day
period, the Holders of a majority in aggregate principal amount of the
outstanding Notes do not give the Trustee a direction that is inconsistent with
the request.

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For purposes of Section 6.05 of this Indenture
and this Section 6.06, the Trustee shall comply with TIA Section 316(a)
in making any determination of whether the Holders of the required aggregate
principal amount of outstanding Notes have concurred in any request or
direction of the Trustee to pursue any remedy available to the Trustee or the
Holders with respect to this Indenture or the Notes or otherwise under the law.

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

SECTION 6.07.  Rights
of Holders to Receive Payment. 
Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of the principal of, premium, if any, or
interest on, such Note or to bring suit for the enforcement of any such
payment, on or after the due date expressed in the Notes, shall not be impaired
or affected without the consent of such Holder.

SECTION 6.08.  Collection
Suit by Trustee.  If an Event of
Default in payment of principal, premium or interest of any Note specified in
clause (a), (b) or (c) of Section 6.01 occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Issuer or any other obligor of that Note for the whole amount of
principal, premium, if any, and accrued interest remaining unpaid, together
with interest on overdue principal, premium, if any, and, to the extent that
payment of such interest is lawful, interest on overdue installments of
interest, in each case at the rate specified in such Notes, and such further
amount as shall 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 may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim 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) and the Holders allowed in any judicial proceedings
relative to the Issuer (or any other obligor of the Notes), its creditors or
its property and shall be entitled and empowered to collect and receive any
monies, securities or other property payable or deliverable upon conversion or
exchange of the Notes or upon any such claims and to distribute the same, and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07.  Nothing herein contained shall be deemed to
empower the Trustee to authorize or consent to, or accept or adopt on behalf of
any Holder, any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

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

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First:  to the
Trustee for all amounts due under Section 7.07;

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

Third:  to the
Issuer or as a court of competent jurisdiction may direct.

The Trustee, upon prior written notice to the Issuer,
may fix a record date and payment date for any payment to Holders 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 Trustee, a court may
require any party litigant in such suit to file an undertaking to pay the costs
of the suit, and the court may assess reasonable costs, including reasonable
attorneys’ fees and expenses, 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 suit by the Trustee, a suit by a Holder pursuant to Section
6.07, or a suit by Holders of more than 10% in principal amount of the
outstanding Notes.

SECTION 6.12.  Restoration
of Rights and Remedies.  If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or abandoned
for any reason, or has been determined adversely to the Trustee or to such
Holder, then, and in every such case, subject to any determination in such
proceeding, the Issuer, the Trustee and the Holders shall be restored severally
and respectively to their former positions hereunder and thereafter all rights
and remedies of the Issuer, the Trustee and the Holders shall continue as
though no such proceeding had been instituted.

SECTION 6.13.  Rights
and Remedies Cumulative.  Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or wrongfully taken Notes in Section 2.09, no right
or remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The assertion
or employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

SECTION 6.14.  Delay
or Omission Not Waiver.  No delay or
omission of the Trustee or of any Holder to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given by
this Article Six or by law to the Trustee or to the Holders may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee or
by the Holders, as the case may be.

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ARTICLE Seven

TRUSTEE

SECTION 7.01.  General.  The duties and responsibilities of the
Trustee shall be as provided by the TIA and as set forth herein.  Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.  Whether or not herein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of this Article Seven.

SECTION 7.02.  Certain
Rights of Trustee.  Subject to TIA
Sections 315(a) through (d):

(i)            the Trustee may
conclusively rely, and shall be protected in acting or refraining from acting,
upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other evidence
of indebtedness or other paper or document believed by it to be genuine and to
have been signed or presented by the proper person, but the Trustee need not
investigate the accuracy of any mathematical calculations or other facts stated
therein;

(ii)           before the Trustee acts
or refrains from acting, it may require an Officers’ Certificate or an Opinion
of Counsel, which shall conform to Section 11.04.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such certificate
or opinion;

(iii)          the Trustee may act
through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any attorney or agent appointed with due care by it
hereunder;

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

(v)           the Trustee shall not
be liable for any action it takes or omits to take in good faith that it
believes to be authorized or within its rights or powers, provided that the
Trustee’s conduct does not constitute negligence or bad faith;

(vi)          whenever in the
administration of this Indenture the Trustee shall reasonably deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officers’
Certificate;

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

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

(ix)           the Trustee shall 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 is received by the
Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Notes and this Indenture;

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

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

SECTION 7.03.  Individual
Rights of Trustee.  The Trustee, in
its individual or any other capacity, may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or their respective Affiliates with the
same rights it would have if it were not the Trustee.  Any Agent may do the same with like
rights.  However, the Trustee is subject
to TIA Sections 310(b) and 311.

SECTION 7.04.  Trustee’s
Disclaimer.  The Trustee
(i) makes no representation as to the validity or adequacy of this
Indenture or the Notes, (ii) shall not be accountable for the Issuer’s use
or application of the proceeds from the Notes and (iii) shall not be
responsible for any statement in the Notes other than its certificate of
authentication.

SECTION 7.05.  Notice
of Default.  If any Default or any
Event of Default with respect to the Notes occurs and is continuing and if such
Default or Event of Default is known to the Trustee, the Trustee shall mail to
each Holder of Notes in the manner and to the extent provided in TIA Section 313(c)
notice of the Default or Event of Default within 60 days after it 

 65
 

occurs, unless such Default or Event of Default has
been cured; provided, however, that, except in the case of a
default in the payment of the principal of, premium, if any, or interest on any
Note, the Trustee shall be protected in withholding such notice if and so long
as the board of directors, the executive committee or a trust committee of
directors and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the interest of the Holders of Notes.

SECTION 7.06.  Reports
by Trustee to Holders.  Within 60
days after each June 30, beginning with June 30, 2007, the Trustee
shall mail to each Holder as provided in TIA Section 313(c) a brief report
dated as of such June 30, if required by TIA Section 313(a).

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

SECTION 7.07.  Compensation
and Indemnity.  The Issuer shall pay
to the Trustee such compensation as shall be agreed upon in writing for its
services hereunder.  The compensation of
the Trustee shall not be limited by any law on compensation of a trustee of an
express trust.  The Issuer shall
reimburse the Trustee upon request for all reasonable disbursements, expenses
and advances incurred or made by the Trustee without negligence or bad faith on
its part.  Such expenses shall include
the reasonable compensation and expenses of the Trustee’s agents and counsel.

The Issuer shall indemnify the Trustee for, and hold
it harmless against, any loss or liability or expense incurred by it without
negligence or bad faith on its part in connection with the acceptance or
administration of this Indenture and its duties under this Indenture and the
Notes, including the costs and expenses of defending itself against any claim
(whether asserted by the Issuer, a Holder or any other Person) or liability and
of complying with any process served upon it or any of its officers in
connection with the acceptance, exercise or performance of any of its powers or
duties under this Indenture and the Notes. 
The Trustee shall notify the Issuer promptly of any claim for which it
may seek indemnity.  Failure by the
Trustee to so notify the Issuer shall not relieve the Issuer of its obligations
hereunder, unless the Issuer is materially prejudiced thereby.  The Issuer shall defend the claim and the
Trustee shall cooperate in the defense. 
Unless otherwise set forth herein, the Trustee may have separate counsel
and the Issuer shall pay the reasonable fees and expenses of such counsel.  The Issuer need not pay for any settlement
made without its consent, which consent shall not be unreasonably
withheld.  The Issuer need not reimburse
any expense or indemnity against any loss or liability incurred by the Trustee
through negligence or bad faith.

To secure the Issuer’s payment obligations in this Section
7.07, the Trustee shall have a lien prior to the Notes on all money or
property held or collected by the Trustee, in its capacity as Trustee, except
money or property held in trust to pay principal of, premium, if any, and
interest on particular Notes.

If the Trustee incurs expenses or renders services
after the occurrence of an Event of Default specified in clause (g) or (h) of Section
6.01, the expenses and the compensation for 

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the services will be intended to constitute expenses
of administration under Title 11 of the United States Bankruptcy Code or any
applicable federal or state law for the relief of debtors.

The provisions of this Section 7.07 shall
survive the termination of this Indenture.

The Trustee shall comply with the provisions of TIA
Section 313(b)(2) to the extent applicable.

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

The Trustee may resign at any time with respect to the
Notes by so notifying the Issuer in writing and the Issuer at least
30 days prior to the date of the proposed resignation.  The Holders of a majority in principal amount
of the outstanding Notes may remove the Trustee by so notifying the Trustee in
writing and may appoint a successor Trustee with the consent of the Issuer.  The Issuer may remove the Trustee if:  (i) the Trustee is no longer eligible
under Section 7.10; (ii) the Trustee is adjudged a bankrupt or an
insolvent; (iii) a receiver or other public officer takes charge of the
Trustee or its property; or (iv) the Trustee becomes incapable of acting.

If the Trustee resigns or is removed, or if a vacancy
exists in the office of Trustee for any reason, with respect to the Notes the
Issuer shall promptly appoint a successor Trustee (it being understood that any
such successor Trustee may be appointed with respect to the Notes and at any
time there shall be only one Trustee with respect to the Notes).  Within one year after the successor Trustee
takes office, the Holders of a majority in principal amount of the outstanding
Notes may appoint a successor Trustee to replace the successor Trustee
appointed by the Issuer.  If the
successor Trustee does not deliver its written acceptance required by the next
succeeding paragraph of this Section 7.08 within 30 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Issuer or the Holders
of a majority in principal amount of the outstanding Notes may, at the expense
of the Issuer, petition any court of competent jurisdiction for the appointment
of a successor Trustee.

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Issuer.  Immediately after the delivery of such
written acceptance, subject to the lien provided in Section 7.07,
(i) the retiring Trustee shall transfer all property held by it as Trustee
to the successor Trustee, (ii) the resignation or removal of the retiring
Trustee shall become effective and (iii) the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  A successor Trustee with respect to the Notes
shall mail notice of its succession to each Holder.  No successor Trustee shall accept its
appointment unless at the time of such acceptance such successor Trustee shall
be qualified and eligible under this Article.

If the Trustee with respect to the Notes is no longer
eligible under Section 7.10 or shall fail to comply with TIA Section
310(b), any Holder of Notes who satisfies the requirements of TIA Section
310(b) may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.  If at any time the Trustee shall cease to be 

 67
 

eligible in accordance with the provisions of this Section
7.08, the Trustee shall resign immediately in the manner and with the
effect provided in this Section with respect to the Notes.

The Issuer shall give notice of any resignation and
any removal of the Trustee with respect to the Notes and each appointment of a
successor Trustee with respect to the Notes to all Holders of Notes.  Each notice shall include the name of the
successor Trustee with respect to the Notes and the address of its Corporate
Trust Office.

Notwithstanding replacement of the Trustee pursuant to
this Section 7.08, the Issuer’s obligation under Section 7.07
shall continue for the benefit of the retiring Trustee.

SECTION 7.09.  Successor
Trustee by Merger, Etc.  If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation or
national banking association, the resulting, surviving or transferee
corporation or national banking association without any further act shall be
the successor Trustee with the same effect as if the successor Trustee had been
named as the Trustee herein, provided such corporation shall be otherwise
qualified and eligible under this Article.

SECTION 7.10.  Eligibility.  This Indenture shall always have a Trustee
who satisfies the requirements of TIA Section 310(a)(1).  The Trustee shall have a combined capital and
surplus of at least $25 million as set forth in its most recent published
annual report of condition that is subject to the requirements of applicable
federal or state supervising or examining authority.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Trustee shall
resign immediately in the manner and with the effect specified in this Article.

SECTION 7.11.  Money
Held in Trust.  The Trustee shall not
be liable for interest on any money received by it except as the Trustee may
agree with the Issuer.  Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law and except for money held in trust under Article Eight
of this Indenture.

ARTICLE Eight

DISCHARGE OF INDENTURE

SECTION 8.01.  Termination
of Issuer’s Obligations.  Except as
otherwise provided in this Section 8.01, the Issuer may terminate its
obligations under the Notes if:

(i)            all Notes previously
authenticated and delivered (other than destroyed, lost or stolen Notes that
have been replaced or Notes that are paid pursuant to Section 4.01 or
the Notes for whose payment money or securities have theretofore been held in
trust and thereafter repaid to the Issuer, as provided in Section 8.05)
have been delivered to the Trustee for cancellation and the Issuer has paid all
sums payable by it hereunder; or

(ii)           (A) the Notes
mature within one year or all of them are to be called for redemption within
one year under arrangements satisfactory to the Trustee for giving the notice
of redemption, (B) the Issuer irrevocably deposits in trust with the
Trustee during such one-year period, under the terms of an irrevocable trust
agreement in form and substance satisfactory to the Trustee, as trust funds
solely for the benefit of the Holders 

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for that
purpose, money or U.S. Government Obligations sufficient (in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee), without consideration
of any reinvestment of any interest thereon, to pay principal, premium, if,
any, and interest on the Notes to maturity or redemption, as the case may be,
and to pay all other sums payable by it hereunder, (C) no Default or Event
of Default with respect to the Notes shall have occurred and be continuing on
the date of such deposit, (D) such deposit will not result in a breach or
violation of, or constitute a default under, this Indenture or any other agreement
or instrument to which the Issuer or any of its Subsidiaries is a party or by
which it is bound and (E) the Issuer has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the satisfaction and
discharge of this Indenture have been complied with.

With respect to the foregoing clause (i), the Issuer’s
obligations under Section 7.07 shall survive with respect to such
Notes.  With respect to the foregoing
clause (ii), the Issuer’s obligations in Sections 2.02, 2.03,
2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.14,
4.01, 4.02, 7.07, 7.08, 8.04, 8.05
and 8.06 with respect to such Notes shall survive until such Notes are
no longer outstanding.  Thereafter, only
the Issuer’s obligations with respect to such Notes in Sections 7.07, 8.04,
8.05 and 8.06 shall survive. 
After any such irrevocable deposit, the Trustee upon request shall
acknowledge in writing the discharge of the Issuer’s obligations under the
Notes and this Indenture with respect to such Notes except for those surviving
obligations specified above.

SECTION 8.02.  Defeasance
and Discharge of Indenture.  The
Issuer will be deemed to have paid and will be discharged from any and all
obligations in respect of Notes after the date of the deposit referred to in
clause (A) of this Section 8.02, and the provisions of this Indenture
will no longer be in effect with respect to such Notes, and the Trustee, at the
expense of the Issuer, shall execute proper instruments acknowledging the
same if:

(A)          with reference to this Section
8.02, the Issuer has irrevocably deposited or caused to be irrevocably
deposited with the Trustee (or another trustee satisfying the requirements of Section
7.10) and conveyed all right, title and interest to the Trustee for the
benefit of the Holders, under the terms of an irrevocable trust agreement in
form and substance satisfactory to the Trustee as trust funds in trust,
specifically pledged to the Trustee for the benefit of the Holders as security
for payment of the principal of, premium, if any, and interest, if any, on the
Notes, and dedicated solely to, the benefit of the Holders, in and to
(1) money in an amount, (2) U.S. Government Obligations that, through
the payment of interest, premium, if any, and principal in respect thereof in
accordance with their terms, will provide, not later than one day before the
due date of any payment referred to in this clause (A), money in an amount or
(3) a combination thereof in an amount sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay and discharge,
without consideration of the reinvestment of such interest and after payment of
all federal, state and local taxes or other charges and assessments in respect
thereof payable by the Trustee, the principal of, premium, if any, and interest
on the outstanding Notes on the Stated Maturity of such principal or interest; 

 69
 

provided
that the Trustee shall have been irrevocably instructed to apply such money or
the proceeds of such U.S. Government Obligations to the payment of such
principal, premium, if any, and interest with respect to the Notes;

(B)           the Issuer has
delivered to the Trustee (1) either (x) an Opinion of Counsel to the
effect that Holders of Notes will not recognize income, gain or loss for
federal income tax purposes as a result of the Issuer’s exercise of its option
under this Section 8.02 and will be subject to federal income tax on the
same amount and in the same manner and at the same times as would have been the
case if such option had not been exercised, which Opinion of Counsel shall be
based upon (and accompanied by a copy of) a ruling of the Internal Revenue
Service to the same effect unless there has been a change in applicable federal
income tax law after the Closing Date such that a ruling is no longer required
or (y) a ruling directed to the Trustee received from the Internal Revenue
Service to the same effect as the aforementioned Opinion of Counsel and
(2) an Opinion of Counsel to the effect that the creation of the
defeasance trust does not violate the Investment Company Act of 1940 and
following the deposit (except, with respect to any trust funds for the account
of any Holder of Notes who may be deemed to be an “insider” for purposes of the
United States Bankruptcy Code, after one year following the deposit), the trust
funds will not be subject to the effect of Section 547 of the United States
Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law in a case
commenced by or against the Issuer under either such statute, and either
(I) the trust funds will no longer remain the property of the Issuer (and
therefore will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights
generally) or (II) if a court were to rule under any such law in any case
or proceeding that the trust funds remained property of the Issuer,
(a) assuming such trust funds remained in the possession of the Trustee
prior to such court ruling to the extent not paid to the Holders of Notes, the
Trustee will hold, for the benefit of the Holders, a valid and perfected
security interest in such trust funds that is not avoidable in bankruptcy or
otherwise except for the effect of Section 552(b) of the United States
Bankruptcy Code on interest on the trust funds accruing after the commencement
of a case under such statute and (b) the Holders of Notes will be entitled
to receive adequate protection of their interests in such trust funds if such
trust funds are used in such case or proceeding;

(C)           immediately after
giving effect to such deposit, on a pro forma basis, no Default or Event of
Default shall have occurred and be continuing on the date of such deposit, and
such deposit shall not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to which the
Issuer or any of its Subsidiaries is a party or by which the Issuer or any of
its Subsidiaries is bound; and

(D)          the Issuer has delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case
stating that all conditions precedent provided for herein relating to the
defeasance contemplated by this Section 8.02 have been complied
with.

Notwithstanding the foregoing, prior to the end of the
123-day (or one year) period referred to in clause (B)(2) of this Section
8.02, none of the Issuer’s obligations under this Indenture with respect to
the Notes shall be discharged. 
Subsequent to the end of such 123-day 

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(or one year) period with respect to this Section
8.02, the Issuer’s obligations in Sections 2.02, 2.03, 2.04,
2.05, 2.06, 2.07, 2.08, 2.09, 2.14, 4.01,
4.02, 8.04, 8.05, 8.06 and the rights, powers,
trusts, duties and immunities of the Trustee hereunder with respect to the
Notes shall survive until the Notes are no longer outstanding.  Thereafter, only the Issuer’s obligations in Sections
7.07, 8.04, 8.05 and 8.06 with respect to the Notes
shall survive.  If and when a ruling from
the Internal Revenue Service or an Opinion of Counsel referred to in clause
(B)(1) of this Section 8.02 is able to be provided specifically without
regard to, and not in reliance upon, the continuance of the Issuer’s
obligations under Section 4.01, then the Issuer’s obligations under such
Section 4.01 with respect to the Notes shall cease upon delivery to the
Trustee of such ruling or Opinion of Counsel and compliance with the other
conditions precedent provided for herein relating to the defeasance
contemplated by this Section 8.02.

After any such irrevocable deposit, the Trustee upon
written request shall acknowledge in writing the discharge of the Issuer’s
obligations under the Notes and this Indenture with respect to the Notes except
for those surviving obligations in the immediately preceding paragraph.

SECTION 8.03.  Defeasance
of Certain Obligations.  The Issuer
may omit to comply with any term, provision or condition set forth in
clauses (3) and (4) of the first paragraph of Section 5.01 and
Sections 4.03 through 4.11, and clause (c) of Section
6.01 with respect to clauses (3) and (4) of Section 5.01,
clause (d) of Section 6.01 with respect to Sections 4.03 through 4.11
and clauses (e) and (f) of Section 6.01 shall be deemed not to be
Events of Default, in each case with respect to the outstanding Notes if:

(i)            with reference to this
Section 8.03, the Issuer has irrevocably deposited or caused to be
irrevocably deposited with the Trustee (or another trustee satisfying the
requirements of Section 7.10) and conveyed all right, title and interest
to the Trustee for the benefit of the Holders of Notes, under the terms of an
irrevocable trust agreement in form and substance satisfactory to the Trustee
as trust funds in trust, specifically pledged to the Trustee for the benefit of
such Holders as security for payment of the principal of, premium, if any, and
interest, if any, on the Notes, and dedicated solely to, the benefit of the
Holders, in and to (A) money in an amount, (B) U.S. Government
Obligations that, through the payment of interest, premium, if any, and
principal in respect thereof in accordance with their terms, will provide, not
later than one day before the due date of any payment referred to in this clause
(i), money in an amount or (C) a combination thereof in an amount
sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, without consideration of the reinvestment of
such interest and after payment of all federal, state and local taxes or other
charges and assessments in respect thereof payable by the Trustee, the
principal of, premium, if any, and interest on the outstanding Notes on the
Stated Maturity of such principal or interest; provided
that the Trustee shall have been irrevocably instructed to apply such money or
the proceeds of such U.S. Government Obligations to the payment of such
principal, premium, if any, and interest with respect to the Notes;

(ii)           the Issuer has
delivered to the Trustee an Opinion of Counsel to the effect that (A) the
creation of the defeasance trust does not violate the Investment Company Act 

 71
 

of 1940,
(B) after the passage of 123 days following the deposit (except, with
respect to any trust funds for the account of any Holder of Notes who may be
deemed to be an “insider” for purposes of the United States Bankruptcy Code,
after one year following the deposit), the trust funds will not be subject to
the effect of Section 547 of the United States Bankruptcy Code or Section 15 of
the New York Debtor and Creditor Law in a case commenced by or against the
Issuer under either such statute, and either (1) the trust funds will no
longer remain the property of the Issuer (and therefore will not be subject to
the effect of any applicable bankruptcy, insolvency, reorganization or similar
laws affecting creditors’ rights generally) or (2) if a court were to rule
under any such law in any case or proceeding that the trust funds remained
property of the Issuer, (x) assuming such trust funds remained in the
possession of the Trustee prior to such court ruling to the extent not paid to
the Holders, the Trustee will hold, for the benefit of the Holders of Notes, a
valid and perfected security interest in such trust funds that is not avoidable
in bankruptcy or otherwise (except for the effect of Section 552(b) of the
United States Bankruptcy Code on interest on the trust funds accruing after the
commencement of a case under such statute) and (y) the Holders of Notes
will be entitled to receive adequate protection of their interests in such
trust funds if such trust funds are used in such case or proceeding,
(C) the Holders of Notes will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit and defeasance of
certain covenants and Events of Default and will be subject to federal income
tax on the same amount and in the same manner and at the same times as would
have been the case if such deposit and defeasance had not occurred and
(D) the Trustee, for the benefit of the Holders of Notes, has a valid
first-priority security interest in the trust funds;

(iii)          immediately after giving
effect to such deposit on a pro forma basis, no Default or Event of Default
shall have occurred and be continuing on the date of such deposit or during the
period ending on the 123rd day after such date of such deposit, and such
deposit shall not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which the Issuer
or any of its Subsidiaries is a party or by which the Issuer or any of its
Subsidiaries is bound;

(iv)          if the Notes are then
listed on a national securities exchange, the Issuer has delivered to the
Trustee an Opinion of Counsel to the effect that such Notes will not be
delisted as a result of such deposit, defeasance and discharge; and

(v)           the Issuer has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in
each case stating that all conditions precedent provided for herein relating to
the defeasance contemplated by this Section 8.03 have been complied
with.

SECTION 8.04.  Application
of Trust Money.  Subject to Section
8.06, the Trustee or Paying Agent shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to Section 8.01, 8.02
or 8.03, as the case may be, and shall apply the deposited money and the
money from U.S. Government Obligations in accordance with the Notes and this
Indenture to the payment of principal of, premium, if any, and interest on such
Notes; but such money need not be segregated from other funds except to the
extent required by law.

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The
Issuer shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the U.S. Government Obligations deposited
pursuant to this Article 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 outstanding Notes.

SECTION 8.05.  Repayment
to Issuer.  Subject to Sections
7.07, 8.01, 8.02 and 8.03, the Trustee and the Paying
Agent shall promptly pay to the Issuer upon request set forth in an Officers’
Certificate any excess money held by them at any time and thereupon shall be
relieved from all liability with respect to such money.  The Trustee and the Paying Agent shall pay to
the Issuer upon request any money held by them for the payment of principal,
premium, if any, or interest that remains unclaimed for two years; provided that the Trustee or Paying Agent
before being required to make any payment may cause to be published at the
expense of the Issuer once in a newspaper of general circulation in The City of
New York or mail to each Holder entitled to such money at such Holder’s address
(as set forth in the Security Register) notice that such money remains
unclaimed and that after a date specified therein (which shall be at least 30
days from the date of such publication or mailing) any unclaimed balance of
such money then remaining will be repaid to the Issuer.  After payment to the Issuer, Holders entitled
to such money must look to the Issuer for payment as general creditors unless
an applicable law designates another Person, and all liability of the Trustee
and such Paying Agent with respect to such money shall cease.

SECTION 8.06.  Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations with respect to the Notes in
accordance with Section 8.01, 8.02 or 8.03, as the case
may be, 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 Issuer’s obligations under this Indenture
with respect to the Notes and the Notes shall be revived and reinstated as
though no deposit had occurred pursuant to Section 8.01, 8.02 or 8.03,
as the case may be, until such time as the Trustee or Paying Agent is permitted
to apply all such money or U.S. Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be; provided that, if the Issuer has made any payment of
principal of, premium, if any, or interest on any Notes because of the
reinstatement of its obligations, the Issuer shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

ARTICLE Nine

AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01.  Without
Consent of Holders.  The Issuer, when
authorized by a resolution of its Board of Directors (as evidenced by a Board
Resolution delivered to the Trustee), the Issuer and the Trustee may amend or
supplement this Indenture or the Notes without notice to or the consent of any
Holder:

(1)           to
cure any ambiguity, defect or inconsistency in this Indenture; provided that
such amendments or supplements shall not, in the good faith opinion of the
Board of Directors as evidenced by a Board Resolution delivered to the Trustee,
adversely affect the interests of the Holders in any material respect;

 73
 

(2)           to
comply with Article Five;

(3)           to
comply with any requirements of the Commission in connection with the
qualification of this Indenture under the TIA;

(4)           to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee;

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

(6)           to
add one or more Subsidiary Guarantees on the terms required by this Indenture;

(7)           to
establish the form or terms of the Notes as permitted by Section 2.03;
or

(8)           to
make any change that, in the good faith opinion of the Board of Directors as
evidenced by a Board Resolution delivered to the Trustee, does not materially
and adversely affect the rights of any Holder.

SECTION 9.02.  With
Consent of Holders.  Subject to Sections
6.04 and 6.07 and without prior notice to the Holders, the Issuer,
when authorized by its Board of Directors (as evidenced by a Board Resolution
delivered to the Trustee), the Issuer and the Trustee may amend this Indenture
and the Notes with the written consent of the Holders of a majority in
aggregate principal amount of the Notes then outstanding affected by such
amendment, and the Holders of a majority in aggregate principal amount of the
Notes then outstanding affected by written notice to the Trustee may waive
future compliance by the Issuer with any provision of this Indenture or the
Notes.

Notwithstanding the provisions of this Section 9.02,
without the consent of each Holder affected, an amendment or waiver, including
a waiver pursuant to Section 6.04, may not:

(i)            change the Stated
Maturity of the principal of, or any installment of interest on, any Note;

(ii)           reduce the principal
amount of, premium, if any, or interest on any Note;

(iii)          change any place or
currency of payment of principal of, premium, if any, or interest on, any Note;

(iv)          impair the right to
institute suit for the enforcement of any payment on or after the Stated
Maturity (or, in the case of redemption, on or after the Redemption Date) on
any Note;

(v)           reduce the percentage
in aggregate principal amount of outstanding Notes the consent of whose Holders
is necessary to modify or amend this Indenture or to waive compliance with
certain provisions of or certain Defaults under this Indenture;

 74

(vi)          waive a default in the payment of
principal of, premium, if any, or interest on, any Note; or

(vii)         modify any of the provisions of this
Section 9.02, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each outstanding Note affected thereby.

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

After an amendment, supplement or waiver under this Section
9.02 becomes effective, the Issuer shall mail to the Holders affected
thereby a notice briefly describing the amendment, supplement or waiver.  The Issuer will mail supplemental indentures
to Holders upon request.  Any failure of
the Issuer to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such supplemental indenture or
waiver.

SECTION 9.03.  Revocation
and Effect of Consent.  Until an
amendment or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the Note of the consenting
Holder, even if notation of the consent is not made on any Note.  However, any such Holder or subsequent Holder
may revoke the consent as to its Note or portion of its Note.  Such revocation shall be effective only if
the Trustee receives the notice of revocation before the date the amendment,
supplement or waiver becomes effective. 
An amendment, supplement or waiver shall become effective on receipt by
the Trustee of written consents from the Holders of the requisite percentage in
principal amount of the outstanding Notes.

The Issuer may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders entitled to consent to
any amendment, supplement or waiver.  If
a record date is fixed, then, notwithstanding the last two sentences of the
immediately preceding paragraph, those persons who were Holders at such record
date (or their duly designated proxies) and only those persons shall be
entitled to consent to such amendment, supplement or waiver or to revoke any
consent previously given, whether or not such persons continue to be Holders
after such record date.  No such consent
shall be valid or effective for more than 90 days after such record date.

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder unless it is of the type described in the
second paragraph of Section 9.02. 
In case of an amendment or waiver of the type described in the second
paragraph of Section 9.02, the amendment or waiver shall bind each
Holder who has consented to it and every subsequent Holder of a Note that
evidences the same indebtedness as the Note of the consenting Holder.

SECTION 9.04.  Notation
on or Exchange of Notes.  If an
amendment, supplement or waiver changes the terms of a Note, the Trustee may
require the Holder to deliver such Note to the Trustee.  At the Issuer’s expense, the Trustee may
place an appropriate notation on the Note about the changed terms and return it
to the Holder and the Trustee may place an 

 75
 

appropriate notation on any Note thereafter
authenticated.  Alternatively, if the
Issuer or the Trustee so determines, the Issuer in exchange for the Note shall
issue and the Trustee shall authenticate a new Note that reflects the changed
terms.  Failure to make the appropriate
notation, or issue a new Note, shall not affect the validity and effect of such
amendment, supplement or waiver.

SECTION 9.05.  Trustee
to Sign Amendments, Etc.  The Trustee
shall be entitled to receive, and shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of any amendment, supplement or
waiver authorized pursuant to this Article Nine is authorized or permitted by
this Indenture and that it will be valid and binding upon the Issuer.  Subject to the preceding sentence, the
Trustee shall sign such amendment, supplement or waiver if the same does not
adversely affect the rights, duties, liabilities or immunities of the
Trustee.  The Trustee may, but shall not
be obligated to, execute any such amendment, supplement or waiver that affects
the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

SECTION 9.06.  Conformity
with Trust Indenture Act.  Every
supplemental indenture executed pursuant to this Article Nine shall conform to
the requirements of the TIA as then in effect.

ARTICLE Ten

INTENTIONALLY OMITTED

ARTICLE Eleven

MISCELLANEOUS

SECTION 11.01.  Trust
Indenture Act of 1939.  Prior to the
effectiveness of the Registration Statement, this Indenture shall incorporate
and be governed by the provisions of the TIA that are required to be part of
and to govern indentures qualified under the TIA.  After the effectiveness of the Registration
Statement, this Indenture shall be subject to the provisions of the TIA that
are required to be a part of this Indenture and shall, to the extent
applicable, be governed by such provisions.

SECTION 11.02.  Notices.  Any notice or communication shall be
sufficiently given if in writing and delivered in person, mailed by first-class
mail or sent by telecopier transmission addressed as follows:

if to the Issuer:

Smurfit-Stone Container Enterprises, Inc.

Six CityPlace Drive

Creve Coeur, Missouri 63141

Attention:  Chief Financial
Officer

Fax:  (314)
787-6592

if to the Trustee:

 76
 

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

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attention:  Corporate Trust
Administration

Fax:  [(312)
827-8542]

The Issuer or the Trustee by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

Any notice or communication mailed to a Holder shall
be mailed to it at its address as it appears on the Security Register by first-class
mail and shall be sufficiently given to him if so mailed within the time
prescribed.  Any notice or communication
shall also be so mailed to any Person described in TIA Section 313(c), to the
extent required by the TIA.  Copies of
any such communication or notice to a Holder shall also be mailed to the
Trustee and each Agent at the same time.

Failure to mail a notice or communication to a Holder
as provided herein or any defect in any such notice or communication shall not
affect its sufficiency with respect to other Holders.  Except for a notice to the Trustee, which is
deemed given only when received, and except as otherwise provided in this
Indenture, if a notice or communication is mailed in the manner provided in
this Section 11.02, it is duly given, whether or not the addressee
receives it.

Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice.  Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

In case by reason of the suspension of regular mail
service or by reason of any other cause it shall be impracticable to give such
notice by mail, then such notification as shall be made with the approval of
the Trustee shall constitute a sufficient notification for every purpose
hereunder.

Holders may communicate pursuant to TIA Section 312(b)
with other Holders with respect to their rights under this Indenture or the
Notes.  The Issuer, the Trustee, the
Registrar and anyone else shall have the protection of TIA Section 312(c).

SECTION 11.03.  Certificate
and Opinion as to Conditions Precedent. 
Upon any request or application by the Issuer to the Trustee to take any
action under this Indenture, the Issuer shall furnish to the Trustee:

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

(ii)           an Opinion of Counsel stating that,
in the opinion of the opining counsel, all such conditions precedent have been
complied with.

 77
 

SECTION 11.04.  Statements
Required in Certificate or Opinion. 
Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

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

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

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

(iv)          a statement as to whether or not, in
the opinion of each such person, such condition or covenant has been complied
with; provided, however, that, with respect to matters of
fact, an Opinion of Counsel may rely on an Officers’ Certificate or
certificates of public officials.

SECTION 11.05.  Rules
by Trustee, Paying Agent or Registrar. 
The Trustee may make reasonable rules for action by or at a meeting of
Holders.  The Paying Agent or Registrar
may make reasonable rules for its functions.

SECTION 11.06.  Payment
Date Other Than a Business Day.  If
an Interest Payment Date, Redemption Date, Payment Date, Stated Maturity or
date of maturity of any Note shall not be a Business Day, then payment of
principal of, premium, if any, or interest on such Note, as the case may be,
need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the Interest Payment Date,
Payment Date or Redemption Date, or at the Stated Maturity or date of maturity
of such Note; provided that no
interest shall accrue for the period from and after such Interest Payment Date,
Payment Date, Redemption Date, Stated Maturity or date of maturity, as the case
may be.

SECTION 11.07.  Governing
Law.  THIS INDENTURE AND THE NOTES
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.  The Trustee, the Issuer and the Holders agree
to submit to the jurisdiction of the courts of the State of New York in any
action or proceeding arising out of or relating to this Indenture or the Notes.

SECTION 11.08.  No
Adverse Interpretation of Other Agreements. 
This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Issuer or any other Subsidiary of the Issuer.  Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

SECTION 11.09.  No
Recourse Against Others.  No recourse
for the payment of the principal of, premium, if any, or interest (including
Additional Interest, if any) on any of the Notes, or for any claim based
thereon or otherwise in respect thereof, and no recourse under or upon any
obligation, covenant or agreement of the Issuer contained in this Indenture or
in any of the Notes, or because of the creation of any Indebtedness represented
thereby, shall be had 

 78
 

against any incorporator or against any past, present
or future partner, stockholder, other equityholder, officer, director, employee
or controlling person, as such, of the Issuer or any successor Person, either
directly or through the Issuer or any successor Person, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the Notes.

SECTION 11.10.  Successors.  All agreements of the Issuer in this
Indenture and the Notes shall bind its successors.  All agreements of the Trustee in this
Indenture shall bind its successor.

SECTION 11.11.  Counterparts.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.

SECTION 11.12.  Separability.  In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

SECTION 11.13.  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 hereof and shall in no way modify or
restrict any of the terms and provisions hereof.

SECTION 11.14.  Waiver of Jury
Trial.  EACH OF THE COMPANY AND THE
TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION
CONTEMPLATED HEREBY.

SECTION 11.15.  Force Majeure.  In no event shall the Trustee be responsible
or liable for any failure or delay in the performance of its obligations
hereunder arising out of or caused by, directly or indirectly, forces beyond
its control, including, without limitation, strikes, work stoppages, accidents,
acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of
utilities, communications or computer (software and hardware) services; it
being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

[Signature page
follows]

 79

SIGNATURES

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

	
  

  	
   

  	
  SMURFIT-STONE CONTAINER ENTERPRISES, 

  INC.,

  
	
   

  	
   

  	
  as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Jeffrey S. Beyersdorfer

  	
   

  
	
   

  	
   

  	
  Name: Jeffrey S. Beyersdorfer

  
	
   

  	
   

  	
  Title:  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK TRUST 

  COMPANY, N.A.,

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ M. Callahan

  	
   

  
	
   

  	
   

  	
  Name: M. Callahan

  
	
   

  	
   

  	
  Title:  Vice President

  

 

 

Indenture

Signature Page

EXHIBIT A

[Insert the Global
Note Legend, if applicable pursuant to the provisions of this Indenture]

[Insert the Private
Placement Legend, if applicable pursuant to the provisions of this Indenture]

SMURFIT-STONE CONTAINER ENTERPRISES, INC.

8.00% Senior Notes 2017

	
  No.

  	
   

  	
  CUSIP No.

  
	
   

  	
   

  	
  [83272A AA2 (Rule
  144A)]

  
	
   

  	
   

  	
  [U8343E AA3 (Regulation
  S)]

  
	
   

  	
   

  	
  [                      
  (Registered)]

  
	
   

  	
   

  	
     $

  

 

SMURFIT-STONE CONTAINER ENTERPRISES, INC., a Delaware
corporation (the “Issuer”), for
value received, promises to pay to [CEDE & CO.] or its registered assigns,
the principal sum of [or such other amount as is provided in a schedule
attached hereto][1] on March 15, 2017.

Interest Payment Dates: March 15 and September 15,
commencing September 15, 2007.

Regular Record Dates: March 1 and September 1.

Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if
set forth at this place.

1              This
language should be included only if the Note is issued in global form.

 A-1
 

IN WITNESS WHEREOF, the Issuer has caused this Note to
be signed manually or by facsimile by its duly authorized officers.

Dated:  [     ]

	
   

  	
   

  	
  SMURFIT-STONE CONTAINER ENTERPRISES, 

  INC., as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 A-2
 

(Trustee’s Certificate of Authentication)

This is one of the 8.000% Senior Notes due 2017 referred to in the
within-mentioned Indenture.

Date:  [                    ,
        ]

	
  

  	
   

  	
  THE BANK OF NEW YORK TRUST 

  COMPANY, N.A.,

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  

 

 A-3
 

(Reverse of Note)

8.000% Senior Notes due 2017

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

SECTION 1.  Interest.  Smurfit-Stone Container Enterprises, Inc., a
Delaware corporation (the “Issuer”), promises to pay interest on the principal
amount of this Note at 8.00% per annum from March 26, 2007 until maturity.  The Issuer will pay interest semi-annually on
March 15 and September 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”),
commencing September 15, 2007.  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 the date of original issuance.  The Issuer shall pay interest (including
post-petition interest in any proceeding under the U.S. Bankruptcy Code) on
overdue principal and premium, if any, from time to time on demand to the
extent lawful at the interest rate applicable to the Notes; it shall pay
interest (including post-petition interest in any proceeding under the U.S.
Bankruptcy Code) on overdue installments of interest (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.

SECTION 2.  Method
of Payment.  The Issuer will pay
interest on the Notes to the Persons who are registered Holders of Notes at the
close of business on the March 1 or September 1 next preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or before
such Interest Payment Date, except as provided in Section 2.14 of the Indenture
with respect to defaulted interest.  The
Notes will be issued in denominations of $1,000.  The Issuer shall pay principal, premium, if
any, and interest on the Notes 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 (“U.S. Legal Tender”).  Principal, premium, if any, and interest on
the Notes will be payable at the office or agency of the Issuer maintained for
such purpose except that, at the option of the Issuer, the payment of interest
may be made by check mailed to the Holders of the Notes at their respective
addresses set forth in the register of Holders of Notes; provided that for Holders that have given
wire transfer instructions to the Issuer at least ten Business Days prior to
the applicable payment date, the Issuer will make all payments of principal,
premium and interest by wire transfer of immediately available funds to the accounts
specified by the Holders thereof.  The
office or agency of the Issuer in the Borough of Manhattan, the City of New
York (which initially will be the corporate trust agency office of the Trustee
at 2 North LaSalle St., Suite 1020, Chicago, IL 60602, Attn: Corporate Trust
Administration) will be the office of the Trustee maintained for such purpose.

SECTION 3.  Paying
Agent and Registrar.  Initially, The
Bank of New York Trust Company, N.A., the Trustee under the Indenture, will act
as Paying Agent and Registrar.  The
Issuer may change any Paying Agent or Registrar without notice to any
Holder.  Except as provided in the
Indenture, the Issuer or any of its Subsidiaries may act in any such capacity.

SECTION 4.  Indenture.  The Issuer issued the Notes under an
Indenture dated as of March 26, 2007 (the “Indenture”)
by and among the Issuer and the Trustee. 
The terms of the 

 A-4
 

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 “Trust
Indenture Act”).  The Notes
are subject to all such terms, and Holders are referred to the Indenture and
the Trust Indenture 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
shall govern and be binding.

SECTION 5.  Optional
Redemption.  (a)           The Issuer may redeem the Notes, in
whole or in part, at any time on or after March 15, 2012 and prior to maturity,
upon not less than 30 nor more than 60 days’ prior notice mailed by first class
mail to each Holder’s last address as it appears in the Security Register.  The Redemption Price for the Notes (expressed
as a percentage of principal amount) will be as follows, plus accrued and
unpaid interest to the Redemption Date, if redeemed during the 12-month period
commencing on March 15 of any year set forth below: 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2012

  	
   

  	
  104.000

  	
  %

  
	
  2013

  	
   

  	
  102.667

  	
  %

  
	
  2014 and
  thereafter

  	
   

  	
  101.333

  	
  %

  
	
  2015 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)           In
addition, at any time prior to March 15, 2010, the Issuer may redeem up to 35%
of the principal amount of the Notes with the Net Cash Proceeds of one or more
sales of Capital Stock of the Issuer (other than Disqualified Stock) or a
capital contribution to the Issuer’s common equity made with the Net Cash
Proceeds of an offering of common stock of SSCC that are contributed to the
Issuer at any time or from time to time in part, at a Redemption Price
(expressed as a percentage of principal amount) of 108.000%, plus accrued and
unpaid interest to the Redemption Date and Additional Interest, if any (subject
to the rights of Holders of record on the relevant Regular Record Date that is
prior to the Redemption Date to receive interest due on an Interest Payment
Date); provided that at least 65% of the aggregate principal amount of Notes
originally issued remains outstanding after each such redemption and notice of
any such redemption is mailed within 60 days of each such sale of Capital
Stock.

(c)           In
the case of any partial redemption, selection of the Notes for redemption will
be made by the Trustee in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed or, if the
Notes are not listed on a national securities exchange, by lot or by such other
method as the Trustee in its sole discretion shall deem to be fair and
appropriate; provided that no Note of $1,000 in principal amount or less shall
be redeemed in part.  If any Note is to
be redeemed in part only, the notice of redemption relating to such Note shall
state the portion of the principal amount thereof to be redeemed.  A new Note in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Note.

SECTION 6.  Notice
of Redemption.  Notices of redemption
will be mailed by first-class mail at least 30 days but not more than 60 days
before the Redemption Date to each 

 A-5
 

Holder of Notes 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 in
excess thereof.  If any Note is to be
redeemed in part only, the notice of redemption that relates to such Note shall
state the portion of the principal amount thereof to be redeemed.  A new Note in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Note. 
On and after the Redemption Date interest ceases to accrue on Notes or
portions thereof called for redemption.

SECTION 7.  No
Mandatory Redemption.  For the
avoidance of doubt, an offer to purchase pursuant to Section 8 hereof shall not
be deemed a redemption.  The Issuer shall
not be required to make mandatory redemption payments with respect to the
Notes.

SECTION 8.  Repurchase
at Option of Holder.  Upon the
occurrence of a Change of Control, and subject to certain conditions set forth
in the Indenture, the Issuer will be required to offer to purchase all of the
outstanding Notes at a purchase price equal to 101% of the principal amount
thereof, plus accrued and unpaid interest, if any, thereon to the date of
repurchase.

SECTION 9.  Denominations,
Transfer, Exchange.  The Notes shall
be issuable only in registered form without coupons and only in denominations
of $1,000 in principal amount and any integral multiple thereof.  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 Issuer may require a Holder to pay any taxes and fees required
by law or permitted by the Indenture. 
The Issuer and the Registrar are not required to transfer or exchange
any Note selected for redemption.  Also,
the Issuer and the Registrar are not required to transfer or exchange any Notes
for a period of 15 days before a selection of Notes to be redeemed.

SECTION 10.  Persons
Deemed Owners.  The registered Holder
of a Note may be treated as its owner for all purposes.

SECTION 11.  Amendment,
Supplement and Waiver.  Subject to
certain exceptions, the Indenture and the Notes may be amended or supplemented
with the written consent of the Holders of at least a majority in aggregate
principal amount of the Notes then outstanding, and any existing Default or
compliance with any provision may be waived with the consent of the Holders of
a majority in aggregate principal amount of the Notes then outstanding.  Without notice to or consent of any Holder,
the parties thereto may amend or supplement the Indenture and the Notes to,
among other things, cure any ambiguity, defect or inconsistency in the
Indenture, provide for uncertificated Notes in addition to certificated notes,
or comply with any requirements of the SEC in connection with the qualification
of the Indenture under the Trust Indenture Act, or make any change that in the
good faith opinion of the Board of Directors of the Issuer does not materially
adversely effect the rights of any Holder.

SECTION 12.  Defaults
and Remedies.  If an Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes generally may declare all the
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 

 A-6
 

insolvency as set forth in the Indenture, with respect
to the Issuer, all outstanding Notes will 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 (except a Default relating to the
payment of principal or interest including an accelerated payment or the
failure to make a payment on the Change of Control Payment Date or the Net
Proceeds Payment Date pursuant to a Net Proceeds Offer or a Default in
complying with the provisions of Article Five of the Indenture) if it
determines that withholding notice is in their interest.  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 and its
consequences under the Indenture except a continuing Default in the payment of
interest on, or the principal of, or the premium on, the Notes.

SECTION 13.  Restrictive
Covenants.  The Indenture contains
certain covenants that, among other things, limit the ability of the Issuer and
its Restricted Subsidiaries to make restricted payments, to incur indebtedness,
to create liens, to sell assets, to permit restrictions on dividends and other
payments by Restricted Subsidiaries of the Issuer, to consolidate, merge or
sell all or substantially all of its assets or to engage in transactions with
affiliates.  The limitations are subject
to a number of important qualifications and exceptions.  The Issuer must annually report to the
Trustee on compliance with such limitations and other provisions in the
Indenture.

SECTION 14.  No
Recourse Against Others.  No
director, officer, employee, incorporator, stockholder, member or manager of
the Issuer shall have any liability for any obligations of the Issuer under the
Notes or the Indenture.  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.

SECTION 15.  Trustee
Dealings with the Issuer.  Subject to
certain terms, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
the Issuer, its Subsidiaries or their respective Affiliates as if it were not
the Trustee.

SECTION 16.  Authentication.  This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

SECTION 17.  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 entirety), 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).

SECTION 18.  Additional
Rights of Holders of Restricted Global Notes and Restricted Definitive Notes.  Pursuant to, but subject to the exceptions
in, the Registration Rights Agreement, the Issuer will be obligated to use its
commercially reasonable efforts to consummate an exchange offer pursuant to
which the Holder of this Note shall have the right to exchange this Note for an
8.000% Senior Note due 2017 of the Issuer which shall have been registered
under the Securities Act, in like principal amount and having terms identical
in all 

 A-7
 

material respects to this Note (except that such note
shall not be entitled to Additional Interest and shall not contain terms with
respect to transfer restrictions).  The
Holders shall be entitled to receive certain Additional Interest in the event
such exchange offer is not consummated or the Notes are not offered for resale
and upon certain other conditions, all pursuant to and in accordance with the
terms of the Registration Rights Agreement.(a)

SECTION 19.  CUSIP
and ISIN Numbers.  Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer has caused CUSIP and ISIN numbers to be printed on the
Notes and the Trustee may use CUSIP or ISIN 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.

SECTION 20.  Governing
Law.  This Note shall be governed by, and construed in accordance with, the
laws of the State of New York.

The Issuer will furnish to any Holder upon written
request and without charge a copy of the Indenture.

(a)                                  This
Section not to appear on Exchange Notes or Private Exchange Notes or Additional
Notes unless required by the terms of such Additional Notes.

 A-8
 

ASSIGNMENT FORM

I or we assign and transfer this Note to

	
   

  	
   

  
	
  

  
	
   

  	
   

  
	
  (Print or type name, address and zip code of
  assignee or transferee)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Insert Social Security or other identifying number
  of assignee or transferee)

  

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as name
  appears on the other side

  of this note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
  Participant in a recognized Signature Guarantee 

  
	
   

  	
   

  	
  Medallion Program (or other signature guarantor 

  
	
   

  	
   

  	
  program reasonably acceptable to the Trustee)

  

 

In connection with any transfer of this Note occurring
prior to the date which is the date following the second anniversary of the
original issuance of this Note, the undersigned confirms that it has not
utilized any general solicitation or general advertising in connection with the
transfer and is making the transfer pursuant to one of the following:

[Check One]

	
  (1)

  	
   

  	
  o

  	
   

  	
  to the Issuer or a subsidiary thereof; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  o

  	
   

  	
  to a person who the transferor reasonably believes
  is a “qualified institutional buyer” pursuant to and in compliance with Rule
  144A under the Securities Act of 1933, as amended (the “Securities Act”); or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  o

  	
   

  	
  to an institutional “accredited investor” (as defined
  in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that has
  furnished to the Trustee a signed letter containing certain representations
  and agreements (the form of which letter can be obtained from the Trustee);
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  o

  	
   

  	
  outside the United States to a non-”U.S. person” as
  defined in Rule 902 of Regulation S under the Securities Act in compliance
  with Rule 904 of Regulation S under the Securities Act; or

  

 

 A-9
 

 

	
  (5)

  	
   

  	
  o

  	
   

  	
  pursuant to the exemption from registration provided
  by Rule 144 under the Securities Act or pursuant to another exemption
  available under the Securities Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  o

  	
   

  	
  pursuant to an effective registration statement
  under the Securities Act;

  

 

and unless the box below is checked, the undersigned
confirms that such Note is not being transferred to an “affiliate” of the
Issuer as defined in Rule 144 under the Securities Act (an “Affiliate”):

	
  

  	
   

  	
  o

  	
   

  	
  The transferee is an Affiliate of the Issuer.

  

 

Unless one of the foregoing items (1) through (6) 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 item (3), (4) or (5) is
checked, the Issuer or the Trustee may require, prior to registering any such
transfer of the Notes, in their sole discretion, such written legal opinions,
certifications (including an investment letter in the case of box (3) or (4))
and other information as the Trustee or the Issuer 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.

If none of the foregoing items (1) through (6) are checked,
the Trustee or Registrar shall not be obligated to register this Note in the
name of any person other than the Holder hereof unless and until the conditions
to any such transfer of registration set forth herein and in Section 2.16 of
the Indenture shall have been satisfied.

	
  Dated:

  	
   

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as name
  appears on the other side 

  of this note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
  Participant in a recognized Signature Guarantee 

  
	
   

  	
   

  	
  Medallion Program (or other signature guarantor 

  
	
   

  	
   

  	
  program reasonably acceptable to the Trustee)

  

 

TO BE COMPLETED BY PURCHASER IF (2) 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 Issuer as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is

 A-10
 

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-11
 

OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to have this Note purchased by
the Issuer pursuant to Section 4.11 or Section 4.12 of the Indenture, check the
appropriate box:

	
  Section 4.11
  [               ]

  	
   

  	
  Section 4.12
  [               ]

  

 

If you want to elect to
have only part of this Note purchased by the Issuer pursuant to Section 4.11 or
Section 4.12 of the Indenture, state the amount (in denominations of $1,000 in
principal amount and any integral multiple thereof):  $                           

	
  Dated:

  	
  Signed:

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
  Participant in a recognized Signature Guarantee 

  
	
   

  	
  Medallion Program (or other signature guarantor 

  
	
   

  	
  program reasonably acceptable to the Trustee)

  

 

 A-12
 

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 Physical Note, or exchanges of
a part of another Global Note or Physical 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-13

EXHIBIT B

Form of Certificate To Be Delivered in

Connection with Transfers Pursuant to Regulation S

[                      ],
[          ]

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

[2 North Lasalle Street

Suite 1020

Chicago, Illinois 60602

Attention:  Corporate Trust
Administration]

	
  Re: Smurfit-Stone Container
  Enterprises, Inc. (the “Issuer”)

  
	
  8.000% Senior
  Notes due 2017 (the “Notes”)

  

 

Dear Sirs:

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

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

(2)           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 offshore securities market and neither we nor any
person acting on our behalf knows that the transaction has been prearranged
with a buyer in the United States;

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

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

(5)           we have advised the transferee of the
transfer restrictions applicable to the Notes.

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

 B-1
 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
    Authorized Signature

  

 

 B-2

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