Document:

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                                                                     EXHIBIT 4.1

                                  JOSTENS, INC.

                   12 3/4 % Senior Subordinated Notes due 2010

                                    INDENTURE

                            Dated as of May 10, 2000

                              THE BANK OF NEW YORK

                                     Trustee
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                                TABLE OF CONTENTS

ARTICLE I  Definitions and Incorporation by Reference.........................1

      SECTION 1.01.  Definitions..............................................1
      SECTION 1.02.  Other Definitions.......................................22
      SECTION 1.03.  Incorporation by Reference of Trust Indenture Act.......23
      SECTION 1.04.  Rules of Construction...................................24

ARTICLE II  The Securities...................................................24

      SECTION 2.01.  Form and Dating.........................................24
      SECTION 2.02.  Execution and Authentication............................26
      SECTION 2.03.  Registrar and Paying Agent..............................26
      SECTION 2.04.  Paying Agent to Hold Money in Trust.....................27
      SECTION 2.05.  Securityholder Lists....................................28
      SECTION 2.06.  Transfer and Exchange...................................28
      SECTION 2.07.  Replacement Securities..................................29
      SECTION 2.08.  Outstanding Securities..................................29
      SECTION 2.09.  Temporary Securities....................................30
      SECTION 2.10.  Cancellation............................................30
      SECTION 2.11.  Defaulted Interest......................................30
      SECTION 2.12.  CUSIP Numbers...........................................30
      SECTION 2.13.  Book-Entry Provisions for Global Securities.............31
      SECTION 2.14.  Special Transfer Provisions.............................31

ARTICLE III  Redemption......................................................33

      SECTION 3.01.  Notices to Trustee......................................33
      SECTION 3.02.  Selection...............................................34
      SECTION 3.03.  Notice..................................................34
      SECTION 3.04.  Effect of Notice of Redemption..........................35
      SECTION 3.05.  Deposit of Redemption Price.............................35
      SECTION 3.06.  Securities Redeemed in Part.............................35
      SECTION 3.07.  Optional Redemption.....................................35
      SECTION 3.08.  No Sinking Fund.........................................36
      SECTION 3.09.  Repurchase Offers.......................................36

ARTICLE IV  Covenants........................................................39

      SECTION 4.01.  Payment of Securities...................................39
      SECTION 4.02.  Reports.................................................40
      SECTION 4.03.  Incurrence of Debt and Issuance of Preferred Stock......40
      SECTION 4.04.  Restricted Payments.....................................42
      SECTION 4.05.  Dividend and Other Payment Restrictions Affecting
                     Restricted Subsidiaries.................................45
      SECTION 4.06.  Asset Sales.............................................47

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      SECTION 4.07.  Transactions with Affiliates............................48
      SECTION 4.08.  Change of Control.......................................49
      SECTION 4.09.  Compliance Certificate..................................50
      SECTION 4.10.  Limitations on Designations of Unrestricted
                     Subsidiaries............................................50
      SECTION 4.11.  Liens...................................................51
      SECTION 4.12.  Additional Security Guarantees..........................51
      SECTION 4.13.  Business Activities.....................................51
      SECTION 4.14.  No Senior Subordinated Debt.............................51
      SECTION 4.15.  Corporate Existence.....................................52

ARTICLE V  Successor Company.................................................52

      SECTION 5.01.  Merger, Consolidation or Sale of All or
                     Substantially All Assets of the Company.................52
      SECTION 5.02.  Merger, Consolidation or Sale of All or
                     Substantially All Assets of a Guarantor.................53

ARTICLE VI  Defaults and Remedies............................................54

      SECTION 6.01.  Events of Default and Remedies..........................54
      SECTION 6.02.  Acceleration............................................56
      SECTION 6.03.  Other Remedies..........................................56
      SECTION 6.04.  Waiver of Past Defaults.................................56
      SECTION 6.05.  Control by Majority.....................................57
      SECTION 6.06.  Limitation on Suits.....................................57
      SECTION 6.07.  Rights of Holders to Receive Payment....................57
      SECTION 6.08.  Collection Suit by Trustee..............................57
      SECTION 6.09.  Trustee May File Proofs of Claim........................58
      SECTION 6.10.  Priorities..............................................58
      SECTION 6.11.  Undertaking for Costs...................................58
      SECTION 6.12.  Waiver of Stay or Extension Laws........................58

ARTICLE VII  Trustee.........................................................59

      SECTION 7.01.  Duties of Trustee.......................................59
      SECTION 7.02.  Rights of Trustee.......................................60
      SECTION 7.03.  Individual Rights of Trustee............................61
      SECTION 7.04.  Trustee's Disclaimer....................................61
      SECTION 7.05.  Notice of Defaults......................................61
      SECTION 7.06.  Reports by Trustee to Holders...........................62
      SECTION 7.07.  Compensation and Indemnity..............................62
      SECTION 7.08.  Replacement of Trustee..................................63
      SECTION 7.09.  Successor Trustee by Merger.............................64
      SECTION 7.10.  Eligibility; Disqualification...........................64
      SECTION 7.11.  Preferential Collection of Claims Against Company.......64

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ARTICLE VIII  Discharge of Indenture; Defeasance.............................65

      SECTION 8.01.  Legal Defeasance and Covenant Defeasance................65
      SECTION 8.02.  Conditions to Legal or Covenant Defeasance..............66
      SECTION 8.03.  Deposited Money and Government Securities to be Held
                     in Trust; Other Miscellaneous Provisions................67
      SECTION 8.04.  Repayment to Company....................................67
      SECTION 8.05.  Reinstatement...........................................68
      SECTION 8.06.  Satisfaction and Discharge of Indenture.................68

ARTICLE IX  Amendments.......................................................69

      SECTION 9.01.  Without Consent of Holders..............................69
      SECTION 9.02.  With Consent of Holders.................................70
      SECTION 9.03.  Compliance with Trust Indenture Act.....................71
      SECTION 9.04.  Revocation and Effect of Consents and Waivers...........71
      SECTION 9.05.  Notation on or Exchange of Securities...................71
      SECTION 9.06.  Trustee to Sign Amendments..............................72
      SECTION 9.07.  Payment for Consent.....................................72

ARTICLE X  Subordination.....................................................72

      SECTION 10.01.  Agreement To Subordinate...............................72
      SECTION 10.02.  Liquidation, Dissolution, Bankruptcy...................72
      SECTION 10.03.  Default on Senior Debt.................................73
      SECTION 10.04.  Acceleration of Payment of Securities..................73
      SECTION 10.05.  When Distribution Must Be Paid Over....................73
      SECTION 10.06.  Subrogation............................................73
      SECTION 10.07.  Relative Rights........................................74
      SECTION 10.08.  Subordination May Not Be Impaired by Company...........74
      SECTION 10.09.  Rights of Trustee and Paying Agent.....................74
      SECTION 10.10.  Distribution or Notice to Representative...............74
      SECTION 10.11.  Article X Not to Prevent Events of Default or Limit
                      Right to Accelerate....................................74
      SECTION 10.12.  Trust Moneys Not Subordinated..........................75
      SECTION 10.13.  Trustee Entitled To Rely...............................75
      SECTION 10.14.  Trustee To Effectuate Subordination....................75
      SECTION 10.15.  Trustee Not Fiduciary for Holders of Senior Debt.......75
      SECTION 10.16.  Reliance by Holders of Senior Debt on Subordination
                      Provisions.............................................76
      SECTION 10.17.  Trustee's Compensation Not Prejudiced..................76
      SECTION 10.18.  Payments May Be Paid Prior to Dissolution..............76

ARTICLE XI  Security Guarantees..............................................76

      SECTION 11.01.  Security Guarantees....................................76
      SECTION 11.02.  Limitation on Liability; Release.......................78
      SECTION 11.03.  Successors and Assigns.................................79

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      SECTION 11.04.  No Waiver..............................................79
      SECTION 11.05.  Modification...........................................79

ARTICLE XII  Subordination of the Security Guarantees........................79

      SECTION 12.01.  Agreement To Subordinate...............................79
      SECTION 12.02.  Liquidation, Dissolution, Bankruptcy...................79
      SECTION 12.03.  Default on Senior Debt of a Guarantor..................80
      SECTION 12.04.  Demand for Payment.....................................80
      SECTION 12.05.  When Distribution Must Be Paid Over....................80
      SECTION 12.06.  Subrogation............................................81
      SECTION 12.07.  Relative Rights........................................81
      SECTION 12.08.  Subordination May Not Be Impaired by a Guarantor.......81
      SECTION 12.09.  Rights of Trustee and Paying Agent.....................81
      SECTION 12.10.  Distribution or Notice to Representative...............82
      SECTION 12.11.  Article XII Not to Prevent Events of Default or
                      Limit Right to Accelerate..............................82
      SECTION 12.12.  Trustee Entitled To Rely...............................82
      SECTION 12.13.  Trustee To Effectuate Subordination....................82
      SECTION 12.14.  Trustee Not Fiduciary for Holders of Senior Debt of
                      a Guarantor............................................82
      SECTION 12.15.  Reliance by Holders of Senior Debt of a Guarantor
                      on Subordination Provisions............................83
      SECTION 12.16.  Payments May Be Paid Prior to Dissolution..............83

ARTICLE XIII  Miscellaneous..................................................83

      SECTION 13.01.  Trust Indenture Act Controls...........................83
      SECTION 13.02.  Notices................................................83
      SECTION 13.03.  Communication by Holders with Other Holders............84
      SECTION 13.04.  Certificate and Opinion as to Conditions Precedent.....84
      SECTION 13.05.  Statements Required in Certificate or Opinion..........85
      SECTION 13.06.  When Securities Disregarded............................85
      SECTION 13.07.  Rules by Trustee, Paying Agent and Registrar...........85
      SECTION 13.08.  Legal Holidays.........................................85
      SECTION 13.09.  GOVERNING LAW..........................................85
      SECTION 13.10.  No Recourse Against Others.............................86
      SECTION 13.11.  Successors.............................................86
      SECTION 13.12.  Multiple Originals.....................................86
      SECTION 13.13.  Table of Contents; Headings............................86
      SECTION 13.14.  Severability...........................................86
      SECTION 13.15.  No Adverse Interpretation of Other Agreements..........86

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                              CROSS-REFERENCE TABLE
                              ---------------------

    TIA Section                                              Indenture Section
    -----------                                              -----------------
    310(a)(1)..........................................................7.10
    (a)(2).............................................................7.10
    (a)(3)..............................................................N/A
    (a)(4)..............................................................N/A
    (b)..........................................................7.08; 7.10
    (c).................................................................N/A
    311(a).............................................................7.11
    (b)................................................................7.11
    (c).................................................................N/A
    312(a).............................................................2.05
    (b)...............................................................13.03
    (c)...............................................................13.03
    313(a).............................................................7.06
    (b)(1)..............................................................N/A
    (b)(2).............................................................7.06
    (c)...............................................................13.02
    (d)................................................................7.06
    314(a).......................................................4.02; 4.09
    (b).................................................................N/A
    (c)(1)............................................................13.04
    (c)(2)............................................................13.04
    (c)(3)............................................................13.04
    (d).................................................................N/A
    (e)...............................................................13.05
    (f).................................................................N/A
    315(a).............................................................7.01
    (b).........................................................7.05; 13.02
    (c)................................................................7.01
    (d)................................................................7.01
    (e)................................................................6.11
    316(a)(last sentence).............................................13.06
    (a)(1)(A)..........................................................6.05
    (a)(1)(B)..........................................................6.04
    (a)(2)..............................................................N/A
    (b)................................................................6.07
    317(a)(1)..........................................................6.08
    (a)(2).............................................................6.09
    (b)................................................................2.04
    318(a)............................................................13.01
    N/A means Not Applicable

    ----------
    Note: This Cross-Reference Table shall not, for any purpose, be deemed to be
    part of this Indenture.
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         INDENTURE dated as of May 10, 2000, among JOSTENS, INC., a Minnesota
corporation (the "Company"), AMERICAN YEARBOOK COMPANY, INC., a Kansas
corporation, as guarantor (the "Initial Guarantor"), and THE BANK OF NEW YORK, a
New York banking corporation (the "Trustee").

         Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of (i) the Company's 12 3/4 %
Senior Subordinated Notes due 2010 issued on the date hereof, (ii) any
Additional Securities (as defined herein) that may be issued on any other Issue
Date (all such Securities in clauses (i) and (ii) being referred to collectively
as the "Initial Securities"), (iii) if and when issued as provided in a
Registration Rights Agreement of the Company's 12 3/4 % Senior Subordinated
Notes due 2010 issued in a Registered Exchange Offer (as defined below) in
exchange for any Initial Securities (the "Exchange Securities") and (iv), if and
when issued as provided in a Registration Rights Agreement, the Private Exchange
Securities (as defined) issued in a Private Exchange (as defined) (the "Private
Exchange Securities," and together with the Initial Securities and any Exchange
Securities issued hereunder, the "Securities"). Except as otherwise provided
herein, the Securities will be limited to $350,000,000 in aggregate principal
amount outstanding, of which $225,000,000 in aggregate principal amount will be
initially issued on the date hereof. Subject to the conditions set forth herein,
the Company may issue up to an additional $125,000,000 aggregate principal
amount of Securities.

                                    ARTICLE I

                   Definitions and Incorporation by Reference
                   ------------------------------------------

         SECTION 1.01. Definitions.

         "Acquired Debt" means, with respect to any specified Person, (i) Debt
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person, including Debt
incurred in connection with, or in contemplation of, such other Person's merging
with or into or becoming a Restricted Subsidiary of such specified Person and
(ii) Debt secured by a Lien encumbering any asset acquired by such specified
Person.

         "Additional Securities" shall mean up to $125,000,000 in aggregate
principal amount of Initial Securities initially issued subsequent to the date
hereof pursuant to Article II and in compliance with Section 4.03.

         "Affiliate" of any specified Person means (i) any other Person,
directly or indirectly, controlling or controlled by or under direct or indirect
common control with such specified Person, (ii) any other Person that owns,
directly or indirectly, 5% or more of such specified Person's Voting Stock or
(iii) any Person who is a director or officer (a) of such Person, (b) of any
Subsidiary of such Person or (c) of any Person described in clause (i) or (ii)
above. For purposes of this definition, "control" (including, with correlative
meanings, the terms "controlling," "controlled by" and "under common control
with"), as used with respect to any Person, shall mean the possession, directly
or indirectly, of the power to direct or cause the
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direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise.

         "Applicable Premium" means, with respect to a Security at any
redemption date, the greater of (i) 1.0% of the principal amount of such
Security or (ii) the excess of (A) the present value at such time of (1) the
redemption price of such Security at May1, 2005 (such redemption price being set
forth in the tables in Section 3.07) plus (2) all required interest payments due
on such Security through May1, 2005 (excluding accrued but unpaid interest),
computed using a discount rate equal to the Treasury Rate plus 50 basis points,
over (B) the principal amount of such Security, if greater.

         "Asset Sale" means (i) the sale, lease, conveyance or other disposition
of any assets or rights (including by way of a sale and leaseback) (provided
that the sale, lease, conveyance or other disposition of all or substantially
all of the assets of the Company and its Restricted Subsidiaries taken as a
whole will be governed by Section 5.01 or 5.02 and not by Section 4.06), and
(ii) the issue or sale by the Company or any of its Restricted Subsidiaries of
Equity Interests of any of the Company's Subsidiaries (other than director's
qualifying shares), in the case of either clause (i) or (ii), whether in a
single transaction or a series of related transactions (a) that have a fair
market value in excess of 1.0% of Total Assets or (b) for Net Proceeds in excess
of 1.0% of Total Assets. Notwithstanding the foregoing, (1) the following will
not be Asset Sales: (i) a transfer of assets or an issuance of Equity Interests
by a Restricted Subsidiary to the Company or to another Restricted Subsidiary or
a transfer of assets by the Company to a Restricted Subsidiary, (ii) a
Restricted Payment or Permitted Investment that is permitted by Section 4.04
(including any formation of or contribution of assets to a Subsidiary or joint
venture), (iii) leases or subleases to third parties, of real property owned in
fee or leased by the Company or its Subsidiaries or a disposition of a lease of
real property, in each case, in the ordinary course of business, (iv) any
disposition of property or assets (including inventory, accounts receivable and
licensing agreements) of the Company or any of its Subsidiaries in the ordinary
course of business, or that in the reasonable judgment of the Company, have
become uneconomic, obsolete or worn out, (v) the disposition of Cash Equivalents
or cash, and (vi) sales of accounts or other receivables and related assets (or
a fractional undivided interest therein) for the fair market value thereof, in a
Qualified Receivables Transaction.

         "Board of Directors" means, with respect to any Person, the Board of
Directors of such Person, or (except if used in the definition of "Change of
Control") any authorized committee of the Board of Directors of such Person.

         "Borrowing Base" means, as of any date, an amount equal to the sum of
(i) 85% of the aggregate book value of all accounts receivable of the Company
and its Restricted Subsidiaries and (ii) 60% of the aggregate book value of all
inventory owned by the Company and its Restricted Subsidiaries, all calculated
on a consolidated basis and in accordance with GAAP. To the extent that
information is not available as to the amount of accounts receivable or
inventory as of a specific date, the Company shall use the most recent available
information for purposes of calculating the Borrowing Base.

         "Business Day" means a day other than a Saturday, Sunday or other day
on which banking institutions in New York State are authorized or required by
law to close.

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

         "Capital Stock" means (i) in the case of a corporation, corporate
stock, (ii) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited) and (iii) in
the case of an association or other business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
stock.

         "Cash Equivalents" means (i) securities issued or directly and fully
guaranteed or insured by the United States government or any agency or
instrumentality thereof, (ii) certificates of deposit and eurodollar time
deposits with maturities of one year or less from the date of acquisition,
bankers' acceptances with maturities not exceeding one year and overnight bank
deposits, in each case with any commercial bank or trust company having capital
and surplus in excess of $300 million, (iii) repurchase obligations with a term
of not more than seven days for underlying securities of the types described in
clauses (i) and (ii) above entered into with any financial institution meeting
the qualifications specified in clause (ii) above, (iv) commercial paper having
the highest rating obtainable from Moody's Investors Service, Inc. ("Moody's")
or Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies,
Inc. ("S&P") and in each case maturing within one year after the date of
acquisition, (v) readily marketable direct obligations issued by any state of
the United States of America or any political subdivision thereof having one of
the two highest rating categories obtainable from either Moody's or S&P, (vi)
Debt with a rating of "A" or higher from S&P or "A2" or higher from Moody's, and
(vii) investment funds investing at least 95% of their assets in securities of
the types described in clauses (i) through (iv) above.

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

                     (i) prior to the first public offering after the Closing
         Date of Voting Stock of the Company, the Initial Control Group ceases
         to be the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under
         the Exchange Act), directly or indirectly, of more than 50% of the
         total voting power of the Voting Stock of the Company, whether as a
         result of the issuance of securities of the Company, any merger,
         consolidation, liquidation or dissolution of the Company, any direct or
         indirect transfer of securities by the Initial Control Group or
         otherwise (for purposes of this clause (i) and clause (ii) below, the
         Initial Control Group shall be deemed to beneficially own any Voting
         Stock of an entity (the "specified entity") held by any other entity
         (the "parent entity") so long as the Initial Control Group beneficially
         owns (as so defined), directly or indirectly, in the aggregate a
         majority of the voting power of the Voting Stock of the parent entity);

                    (ii) following the first public offering after the Closing
         Date of Voting Stock of the Company, (A) any "person" (as such term is
         used in Sections 13(d) and 14(d) of the Exchange Act), other than one
         or more members of the Initial Control Group, is or becomes the
         beneficial owner (as defined in clause (i) above directly or
         indirectly, of more than 40% of the total voting power of the Voting
         Stock of the Company, and (B) the Initial Control Group "beneficially
         owns" (as defined in clause (i) above), directly or indirectly, in the
         aggregate a lesser percentage of the total voting

                                       3
<PAGE>

         power of the Voting Stock of the Company, than such other person and
         does not have the right or ability by voting power, contract or
         otherwise to elect or designate for election a majority of the Board of
         Directors of the Company (for purposes of this clause (ii), such other
         person shall be deemed to beneficially own any Voting Stock of a
         specified entity held by a parent entity, if such other person
         "beneficially owns" (as defined in clause (i) above), directly or
         indirectly, in the aggregate more than 40% of the voting power of the
         Voting Stock of such parent entity and the Initial Control Group
         "beneficially owns" (as defined in clause (i) above), directly or
         indirectly, in the aggregate a lesser percentage of the voting power of
         the Voting Stock of such parent entity and does not have the right or
         ability by voting power, contract or otherwise to elect or designate
         for election a majority of the Board of Directors of such parent
         entity); or

                  (iii) at any time after the first public offering of common
         stock of the Company, any person other than the Initial Control Group
         (or their designated Board of Directors), (A)(I) nominates one or more
         individuals for election to the Board of Directors of the Company and
         (II) solicits proxies, authorizations or consents in connection
         therewith and (B) such number of nominees elected to serve on the Board
         of Directors in such election and all previous elections after the
         Closing Date represents a majority of the Board of Directors of the
         Company following such election.

         "Closing Date" shall mean May 10, 2000.

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

         "Commodity Hedging Agreements" means any futures contract or other
similar agreement or arrangement designed to protect the Company or any
Restricted Subsidiary against fluctuations in commodities prices.

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

         "Consolidated Cash Flow" means, with respect to any Person for any
period, the Consolidated Net Income of such Person for such period (A) plus, to
the extent deducted in computing such Consolidated Net Income, (i) Consolidated
Interest Expense and the amortization of debt issuance costs, commissions, fees
and expenses of such Person and its Restricted Subsidiaries for such period,
(ii) provision for taxes based on income or profits (including franchise taxes)
of such Person and its Restricted Subsidiaries for such period, (iii)
depreciation and amortization expense, including amortization of inventory
write-up under APB 16, amortization of intangibles (including goodwill and the
non-cash costs of Interest Rate Agreements, Commodity Hedging Agreements or
Currency Agreements, license agreements and non-competition agreements),
amortization of management fees, non-cash amortization of Capital Lease
Obligations, and organization costs, (iv) expenses and charges related to any
equity offering or incurrence of Debt permitted to be incurred by this Indenture
(including any such expenses or charges relating to the Recapitalization), (v)
the amount of any restructuring or other type of special charge or reserve, (vi)
unrealized gains and losses from hedging, foreign currency or commodities
translations and transactions, (vii) expenses consisting of internal

                                       4
<PAGE>

software development costs that are expensed during the period but could have
been capitalized in accordance with GAAP, (viii) any write-downs, write-offs,
and other non-cash charges, items and expenses, (ix) the amount of any expense
relating to any minority interest of Restricted Subsidiaries, and (x) costs of
surety bonds in connection with financing activities, and (B) minus any cash
payment for which a reserve or charge of the kind described in clause (v),
(viii) or (ix) above was taken previously during such period.

         "Consolidated Coverage Ratio" means with respect to any Person, the
ratio of the Consolidated Cash Flow of such Person and its Restricted
Subsidiaries for the four full fiscal quarters ending on or prior to the date
the transaction giving rise to the need to calculate the Consolidate Coverage
Ratio (the "Calculation Date") for which financial statements are available to
the Consolidated Interest Expense of such Person and its Restricted Subsidiaries
for such period. In the event that the Company or any of its Restricted
Subsidiaries incurs, assumes, Guarantees or redeems any Debt (other than working
capital borrowings) or issues or redeems Preferred Stock subsequent to the
commencement of the period for which the Consolidated Coverage Ratio is being
calculated but prior to Calculation Date, then the Consolidated Coverage Ratio
shall be calculated giving pro forma effect to such incurrence, assumption,
Guarantee or redemption of Debt, or such issuance or redemption of Preferred
Stock, as if the same had occurred at the beginning of the applicable
four-quarter reference period.

         For purposes of making the computation referred to above, Investments,
acquisitions, dispositions, mergers and consolidations that have been made by
the Company or any of its Restricted Subsidiaries during the four-quarter
reference period or subsequent to such reference period and on or prior to the
Calculation Date, and discontinued operations determined in accordance with GAAP
on or prior to the Calculation Date, shall be given effect on a pro forma basis
assuming that all such Investments, acquisitions, dispositions, mergers and
consolidations or discontinued operations (and the reduction or increase of any
associated Consolidated Interest Expense, and the change in Consolidated Cash
Flow, resulting therefrom, including because of Pro Forma Cost Savings) had
occurred on the first day of the four-quarter reference period. If since the
beginning of such period any Person (that subsequently became a Restricted
Subsidiary or was merged with or into the Company or any Restricted Subsidiary
since the beginning of such period) shall have made any Investment, acquisition,
disposition, merger or consolidation or determined a discontinued operation,
that would have required adjustment pursuant to this definition, then the
Consolidated Coverage Ratio shall be calculated giving pro forma effect thereto
for such period as if such Investment, acquisition, disposition, merger or
consolidation or discontinued operations had occurred at the beginning of the
applicable four-quarter period.

         For purposes of this definition, whenever pro forma effect is to be
given to a transaction, the pro forma calculations shall be made in good faith
by a financial or accounting officer of the Company. If any Debt to which pro
forma effect is given bears interest at a floating rate, the interest expense on
such Debt shall be calculated as if the rate in effect on the Calculation Date
had been the applicable interest rate for the entire period (taking into account
any Interest Rate Agreement in effect on the Calculation Date). Interest on a
Capital Lease Obligation shall be deemed to accrue at an interest rate
reasonably determined by a responsible financial or accounting officer of the
Company to be the rate of interest implicit in such Capital Lease Obligation in
accordance with GAAP. Interest on Debt that may optionally be determined at an
interest rate based upon a factor of a prime or similar rate, a eurocurrency
interbank offered rate,

                                       5
<PAGE>

or other rate, shall be deemed to have been based upon the rate actually chosen,
or, if none, then based upon such optional rate chosen as the Company may
designate.

         "Consolidated Interest Expense" means, with respect to any Person for
any period, the sum, without duplication, of (i) the consolidated net interest
expense of such Person and its Restricted Subsidiaries for such period, whether
paid or accrued (including amortization of original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Lease
Obligations, commissions, discounts and other fees and charges incurred in
respect of letter of credit or bankers' acceptance financings or any Qualified
Receivables Transaction, and net payments (if any) pursuant to Hedging
Obligations relating to Interest Rate Agreements or Currency Agreements with
respect to Debt, excluding, however (a) amortization of debt issuance costs,
commissions, fees and expenses and (b) customary commitment, administrative and
transaction fees and charges), (ii) dividends paid in respect of any
Disqualified Stock of the Company or any Restricted Subsidiary, or cash
dividends paid in respect of any Preferred Stock of a Restricted Subsidiary of
the Company held by Persons other than the Company or a Subsidiary and (iii)
commissions, discounts and other fees and charges incurred in connection with a
Qualified Receivables Transaction of the Company or any Restricted Subsidiary,
in each case, on a consolidated basis and in accordance with GAAP.

         "Consolidated Net Income" means, with respect to any Person for any
period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, determined in accordance
with GAAP; provided that (i) the Net Income of any Person that is not a
Restricted Subsidiary or that is accounted for by the equity method of
accounting shall be included only to the extent of the amount of dividends or
distributions paid in cash to the referent Person or a Restricted Subsidiary of
such Person and the net losses of any such Person shall only be included to the
extent funded with cash or property from the Company or a Restricted Subsidiary,
(ii) the Net Income of any Restricted Subsidiary shall be excluded to the extent
that the declaration or payment of dividends or similar distributions by that
Restricted Subsidiary of that Net Income is not at the date of determination
permitted without any prior governmental approval (that has not been obtained)
or, directly or indirectly, prohibited by operation of the terms of its charter
or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Restricted Subsidiary or its
stockholders unless such restriction with respect to the payment of dividends
has been permanently waived, (iii) except for purposes of calculating the
Consolidated Coverage Ratio, the Net Income of any Person acquired in a pooling
of interests transaction for any period prior to the date of such acquisition
shall be excluded, (iv) the cumulative effect of a change in accounting
principles shall be excluded (effected either through cumulative effect
adjustment or a retroactive application, in each case, in accordance with GAAP),
(v) to the extent deducted in determining Net Income, the fees, expenses and
other costs incurred in connection with the Recapitalization, including payments
to management contemplated by the Recapitalization Agreement or in connection
with the Company's transition to new ownership, in each case, to the extent that
such fee, expense, cost or payment was disclosed in the Offering Memorandum,
shall be excluded, and (vi) with respect to periods prior to the Closing Date,
Consolidated Net Income shall include (without duplication) all adjustments
relating to reductions in costs related to employee terminations, elimination of
certain unprofitable businesses, excess rebates related to the Company's JDS
program, closing the Mexico manufacturing facility, excess labor costs

                                       6
<PAGE>

associated with the recognition segment and other items in each case of the type
reflected in the calculation of Adjusted EBITDA set forth in footnote 5 to
"Summary Consolidated Historical and Unaudited Pro Forma Financial Data" in the
Offering Memorandum. To the extent that all employee terminations referred to
above have not been completed before the Closing Date, such costs shall be added
back to Consolidated Net Income in periods after the Closing Date; provided
however, that if Consolidated Net Income is being calculated after September 30,
2000, the expected cost savings of such employee terminations with respect to
employees that have not been terminated prior to the date of such calculation
shall not be added back to Consolidated Net Income.

         "Credit Facilities" means, with respect to the Company and its
Restricted Subsidiaries, one or more unsubordinated debt facilities (including
the New Credit Facility) or commercial paper facilities with banks, insurance
companies or other institutional lenders providing for unsubordinated revolving
credit loans, unsubordinated term loans, unsubordinated notes, factoring or
other receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from or issue securities
to such lenders against such receivables) or unsubordinated letters of credit or
other unsubordinated credit facilities, in each case, as amended, restated,
modified, renewed, refunded, replaced or refinanced in whole or in part from
time to time.

         "Currency Agreement" means any foreign exchange contract, currency swap
agreement or other similar agreement or arrangement to which the Company or any
Restricted Subsidiary is a party or of which it is a beneficiary.

         "Debt" means, with respect to any Person (without duplication): (a) any
Debt of such Person, whether or not contingent, in respect of borrowed money or
evidenced by bonds, notes, debentures or similar instruments or letters of
credit (or reimbursement agreements in respect thereof) of banker's acceptances
or representing Capital Lease Obligations or the balance deferred and unpaid of
the purchase price of any property, which purchase price is due more than six
months after the date of placing such property in final service or taking final
delivery thereof, or representing any Hedging Obligations, except any such
balance that constitutes an accrued expense or trade payable, if and to the
extent any of the foregoing Debt (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of such Person
prepared in accordance with GAAP; (b) all Debt under clause (a) of other Persons
secured by a Lien on any asset of such Person (whether or not such Debt is
assumed by such Person) provided that the amount of Debt of such Person shall be
the lesser of: (a) the fair market value of such asset at such date of
determination; and (b) the amount of such Debt of such other Persons, and (c) to
the extent not otherwise included, the Guarantee by such Person of any Debt
under clause (a) of any other Person; provided, however, that the Debt shall not
include: (i) obligations and liabilities in respect of synthetic lease
facilities that are accounted for as operating leases in accordance with GAAP
(including Guarantees of loans then outstanding by the lenders under any such
facility to the lessor thereunder); (ii) obligations of the Company or any of
its Restricted Subsidiaries arising from agreements of the Company or a
Restricted Subsidiary providing for indemnification, adjustment of purchase
price or similar obligations, in each case, incurred or assumed in connection
with the disposition of any business, assets or a Subsidiary, other than
guarantees of Debt incurred by any Person acquiring all or any portion of such
business, assets or a Subsidiary for the purpose of financing such acquisition;
provided, however,

                                       7
<PAGE>

that: (A) such obligations are not reflected on the balance sheet of the Company
or any Restricted Subsidiary (contingent obligations referred to in a footnote
to financial statements and not otherwise reflected on the balance sheet will
not be deemed to be reflected on such balance sheet for purposes of this clause
(A)); and (B) the maximum assumable liability in respect of all such obligations
shall at no time exceed the gross proceeds including noncash proceeds (the fair
market value of such noncash proceeds being measured at the time received and
without giving effect to any subsequent changes in value) actually received by
the Company and its Restricted Subsidiaries in connection with such disposition;
(iii) (A) obligations under (or constituting reimbursement obligations with
respect to) letters of credit, performance bonds, surety bonds, appeal bonds,
completion guarantees or similar instruments issued in connection with the
ordinary course of a Permitted Business, including letters of credit in respect
of workers' compensation claims, security or lease deposits and self-insurance;
provided, however, that upon the drawing of such letters of credit or other
instrument, such obligations are reimbursed within 30 days following such
drawing, and (B) obligations arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument inadvertently
(except in the case of day-light overdrafts) drawn against insufficient funds in
the ordinary course of business; provided, however, that such obligations are
extinguished within three business days of incurrence; (iv) purchase price
holdbacks in connection with purchasing in the ordinary course of business of
the Company and its Restricted Subsidiaries; (v) leases of precious metals used
in the ordinary course of business of the Company and its Restricted
Subsidiaries, whether or not accounted for as operating leases under GAAP; or
(vi) customer deposits in the ordinary course of business. Except as otherwise
expressly provided in this definition, the amount of any Debt outstanding as of
any date shall be: (a) the accreted value thereof, in the case of any Debt
issued at a discount to par value; and (b) the principal amount thereof in the
case of any other Debt.

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

         "Definitive Securities" means Securities that are in the form of
Exhibit A, Exhibit B or Exhibit C attached hereto that do not include the Global
Securities Legend therein.

         "Depository" means, with respect to the Securities issuable or issued
in whole or in part in global form, the person specified in Section 2.03 as the
Depository with respect to the Securities, until a successor shall have been
appointed and become such pursuant to the applicable provisions of this
Indenture, and thereafter, "Depository" shall mean or include such successor.

         "Designated Senior Debt" means (i) any Senior Debt outstanding under
the New Credit Facility and (ii) any other Senior Debt permitted under this
Indenture the outstanding principal amount of which is $10.0 million or more and
that has been designated by the Company by notice to the Trustee as "Designated
Senior Debt."

         "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 or is
redeemable at the option of the holder of such class or series of Capital Stock
at any time on or prior to the date that is 91 days after the Stated Maturity of
the Securities; or (ii) convertible into or exchangeable at the option of the
holder thereof for Capital Stock referred to in clause (i) above or Debt having
a scheduled

                                       8
<PAGE>

maturity on or prior to the date that is 91 days after the Stated Maturity of
the Securities. Notwithstanding the preceding sentence, (A) if such Capital
Stock is issued to any plan for the benefit of employees or by any such plan to
such employees, in each case in the ordinary course of business of the Company
or its Subsidiaries, such Capital Stock shall not constitute Disqualified Stock
solely because it may be required to be repurchased by the Company in order to
satisfy applicable statutory or regulatory obligations, (B) any Capital Stock
that would constitute Disqualified Stock solely because the holders of the
Capital Stock have the right to require the Company to repurchase such Capital
Stock upon the occurrence of a Change of Control or an Asset Sale will not
constitute Disqualified Stock if the terms of such Capital Stock provide that
the Company may not repurchase or redeem any such Capital Stock pursuant to such
provisions prior to the Company's purchase of such Securities as are required to
be repurchased pursuant to Section 4.08 and (C) the Senior Preferred Stock
having the terms and conditions set forth in the Certificate of Designation for
the Senior Preferred Stock as in effect on the Closing Date shall not constitute
Disqualified Stock under the Indenture. For purposes hereof, the amount of any
Disqualified Stock shall be equal to the greater of its voluntary or involuntary
liquidation preference and its maximum fixed repurchase price, but excluding
accrued dividends, if any. The "maximum fixed repurchase price" of any
Disqualified Stock which does not have a fixed repurchase price shall be
calculated in accordance with the terms of such Disqualified Stock as if such
Disqualified Stock were purchased on any date as of which the Consolidated
Coverage Ratio shall be required to be determined pursuant to the Indenture, and
if such price is based upon, or measured by, the fair market value of such
Disqualified Stock, such fair market value shall be determined reasonably and in
good faith by the Board of Directors of the issuer of such Disqualified Stock.

         "Domestic Subsidiary" means any Restricted Subsidiary of the Company
other than a Foreign Subsidiary.

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

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

         "Existing Debt" means Debt of the Company and its Restricted
Subsidiaries (other than Debt under the New Credit Facility) in existence on the
Closing Date, until such amounts are repaid.

         "Foreign Subsidiary" means any Subsidiary of the Company formed under
the laws of any jurisdiction other than the United States or any political
subdivision thereof substantially all of the assets of which are located outside
of the United States or that conducts substantially all of its business outside
of the United States.

         "GAAP" means generally accepted accounting principles in the United
States of America as in effect from time to time, including 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 have been approved by a significant segment
of the accounting

                                       9
<PAGE>

profession. All ratios and computations based on GAAP contained in this
Indenture shall be computed in conformity with GAAP as in effect as of the
Closing Date.

         "Global Security" means a Security that is in the form of Exhibit A,
Exhibit B or Exhibit C hereto that includes the Global Securities Legend
therein.

         "Global Securities Legend" means the legend set forth in the first
paragraph of Exhibit A hereto.

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

         "Guarantee" means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including letters of credit and reimbursement
agreements in respect thereof), of all or any part of any Debt.

         "Guarantors" means (i) each of the Company's Restricted Subsidiaries on
the Closing Date other than any (a) Foreign Subsidiary and (b) Subsidiary that
is a Receivables Subsidiary; and (ii) each Restricted Subsidiary that executes
and delivers a Security Guarantee and a supplemental indenture assuming the
obligations of a Guarantor under this Indenture after the Closing Date, and
their respective successors and assigns, in each case until released from its
Security Guarantee in accordance with the terms of this Indenture.

         "Hedging Obligations" means, with respect to any Person, the
obligations of such Person under Interest Rate Agreements, Currency Agreements
or Commodity Hedging Agreements.

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

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

         "Initial Control Group" means Investcorp S.A., Deutsche Bank Securities
Inc. and their respective Affiliates, any Person acting in the capacity of an
underwriter or initial purchaser in connection with a public or private offering
of the Company's Capital Stock, or any Permitted Transferee of any of the
foregoing Persons.

         "Initial Purchasers" means Deutsche Bank Securities Inc., UBS Warburg
LLC and Goldman, Sachs & Co.

         "Interest Rate Agreement" means any interest rate swap agreement,
interest rate cap agreement, repurchase agreement, futures contract or other
financial agreement or arrangement designed to protect the Company or any
Restricted Subsidiary against fluctuations in interest rates.

         "Investments" means, with respect to any Person, all investments by
such Person in other Persons (including Affiliates) in the forms of direct or
indirect loans (but excluding Guarantees

                                       10
<PAGE>

of Debt not otherwise prohibited to be incurred under this Indenture (to the
extent that such Guarantees of Debt do not then require cash payments by the
Company and in the event that cash payments are then required, such payments
shall constitute an Investment under this Indenture only 90 days subsequent to
such payment)), advances or capital contributions (excluding commission, travel,
payroll, entertainment, relocation and similar advances to officers and
employees and profit sharing plan contributions made in the ordinary course of
business), and purchases or other acquisitions for consideration of Debt, Equity
Interests or other securities. If the Company or any Subsidiary of the Company
sells or otherwise disposes of any Equity Interests of any direct or indirect
Subsidiary of the Company such that, after giving effect to any such sale or
disposition, such Person is no longer a Subsidiary of the Company, the Company
shall be deemed to have made an Investment on the date of any such sale or
disposition equal to the fair market value of the Equity Interests of such
Subsidiary not sold or disposed of in an amount determined as provided in the
second to last paragraph of Section 4.04(b).

         "Issue Date" means the date on which any Initial Securities are
originally issued.

         "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law
(including any conditional sale or other title retention agreement or any lease
in the nature thereof); provided that in no event shall an operating lease be
deemed to constitute a Lien.

         "Liquidated Damages" shall have the meaning set forth in a Registration
Rights Agreement.

         "Net Income" means, with respect to any Person and any period, the net
income (or loss) of such Person (but not any Subsidiaries) for such period,
determined in accordance with GAAP and before any reduction in respect of
Preferred Stock dividends of such Person (but not any Subsidiaries), excluding,
however, (i) any extraordinary or non-recurring gains or losses or charges
(including non-cash charges resulting from any write-up, write-down or write-off
of amounts in connection with the Recapitalization) and gains or losses or
charges from the sale of assets outside the ordinary course of business,
together with any related provision for taxes on such gain or loss or charges
and (ii) deferred financing costs written off in connection with the early
extinguishment of Debt; provided, however, that Net Income shall be deemed to
include any increases during such period to shareholder's equity of such Person
attributable to tax benefits from net operating losses and the exercise of stock
options that are not otherwise included in Net Income for such period.

         "Net Proceeds" means the aggregate cash proceeds or Cash Equivalents
received by the Company or any of its Restricted Subsidiaries in respect of any
Asset Sale (including any cash received upon the sale or other disposition of
any non-cash consideration received in any Asset Sale), net of the direct costs
relating to such Asset Sale (including legal, accounting and investment banking
fees, and brokerage and sales commissions) and any relocation, redundancy and
closing costs incurred as a result thereof, taxes paid or payable as a result
thereof (after taking into account any available tax credits or deductions and
any tax sharing arrangements), amounts applied to the repayment of principal,
premium, if any, and interest on Debt that is not subordinated to the Securities
required (other than required by clause (a) of the third paragraph

                                       11
<PAGE>

of Section 4.06) to be paid as a result of such transaction, 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 any deduction
of appropriate amounts to be provided by the Company as a reserve in accordance
with GAAP against any liabilities associated with the asset disposed of in such
transaction and retained by the Company after such sale or other disposition
thereof, including pension and other post-employment benefit liabilities and
liabilities related to environmental matters or against any indemnification
obligations associated with such transaction.

         "New Credit Facility" means the Credit Agreement dated as of May 10,
2000, among the Company, the Subsidiaries of the Company party thereto and the
financial institutions named therein, and any related notes, collateral
documents, letters of credit and Guarantees, including any appendices, exhibits
or schedules to any of the foregoing (as the same may be in effect from time to
time), in each case, as such agreements may be amended, modified, supplemented
or restated from time to time, or refunded, refinanced, restructured, replaced,
renewed, repaid or extended from time to time (whether with the original agents
and lenders or other agents or lenders or otherwise, and whether provided under
the original credit agreement or other credit agreements or otherwise).

         "Obligations" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages, Guarantees and other liabilities
payable under the documentation governing any Debt, in each case whether now or
hereafter existing, renewed or restructured, whether or not from time to time
decreased or extinguished and later increased, created or incurred, whether or
not arising on or after the commencement of a proceeding under Title 11, U.S.
Code or any similar federal or state law for the relief of debtors (including
post-petition interest) and whether or not allowed or allowable as a claim in
any such proceeding.

         "Offering Memorandum" shall mean the offering memorandum dated May 5,
2000, relating to the sale of $225,000,000 aggregate principal amount of the
Initial Securities.

         "Officers" means any of the following: Chairman, President, Chief
Executive Officer, Treasurer, Chief Financial Officer, Executive Vice President,
Senior Vice President, Vice President, Assistant Vice President, Secretary,
Assistant Secretary or any other officer reasonably acceptable to the Trustee.

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

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

         "Pari Passu Debt" means any Debt of the Company or any Guarantor that
ranks pari passu with the Securities or the relevant Security Guarantee.

         "payment" means, for purposes of Articles X and XII and with respect to
the Securities, any payment, whether in cash or other assets or property, of
interest, principal (including redemption price and purchase price), premium,
Liquidated Damages or any other amount on, of

                                       12
<PAGE>

or in respect of the Securities, any other acquisition of Securities and any
deposit into the trust described in Article VIII. The verb "pay" has a
correlative meaning.

         "Permitted Business" means the businesses conducted by the Company and
its Subsidiaries as of the date of this Indenture and any other business
reasonably related, complementary or incidental to any of those businesses
including the provision of goods or services related to educational
institutions.

         "Permitted Investments" means (a) any Investment in the Company or in a
Restricted Subsidiary (including in any Equity Interests of a Restricted
Subsidiary); (b) any Investment in (i) cash or Cash Equivalents (ii) to the
extent determined by the Company in good faith to be necessary for local
currency working capital requirements of a Foreign Subsidiary, other cash
equivalents, provided in the case of clause (ii), the Investment is made by the
Foreign Subsidiary having such operations; (c) any Investment by the Company or
any Restricted Subsidiary of the Company in a Person, if as a result of such
Investment (i) such Person becomes a Restricted Subsidiary or (ii) such Person,
in one transaction or a series of substantially concurrent related transactions,
is merged, consolidated or amalgamated with or into, or transfers or conveys
substantially all of its assets to, or is liquidated into, the Company or a
Restricted Subsidiary; (d) any securities received or other Investments 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 4.06 or in connection with any
other disposition of assets not constituting an Asset Sale; (e) any acquisition
of assets solely in exchange for the issuance of Equity Interests (other than
Disqualified Stock) of the Company; (f) any Investments relating to a
Receivables Subsidiary; (g) loans or advances to employees (or guarantees of
third party loans to employees) in the ordinary course of business or pursuant
to a stock loan program; (h) stock, obligations or securities received in
satisfaction of judgments, foreclosure of liens or settlement of debts (whether
pursuant to a plan of reorganization or similar arrangement); (i) receivables
owing to the Company or any Restricted Subsidiary, if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with
customary trade terms (including such concessionary terms as the Company or such
Restricted Subsidiary deems reasonable); (j) any Investment existing on the
Closing Date or made pursuant to legally binding written commitments in
existence on the Closing Date which Investment is disclosed in the Offering
Memorandum; (k) Investments in Interest Rate Agreements, Currency Agreements and
Commodity Hedging Agreements not otherwise prohibited under this Indenture; (l)
any Investment in a Permitted Business having an aggregate fair market value,
taken together with all other Investments made pursuant to this clause (l) that
are at that time outstanding, not to exceed 10.0% of Total Assets at the time of
such Investment (with the fair market value of each Investment being measured at
the time made and without giving effect to subsequent changes in value); and (m)
additional Investments having an aggregate fair market value, taken together
with all other Investments made pursuant to this clause (m) that are at that
time outstanding, not to exceed 2.5% of Total Assets at the time of such
Investment (with the fair market value of each Investment being measured at the
time made and without giving effect to subsequent changes in value).

         "Permitted Junior Securities" means debt or equity securities of the
Company, any Guarantor or any successor corporation to the Company or such
Guarantor issued pursuant to a plan of reorganization or readjustment of the
Company or such Guarantor that are subordinated

                                       13
<PAGE>

to the payment of all then outstanding Senior Debt of the Company or such
Guarantor, as applicable, at least to the same extent that (i) in the case of
the Company, the Securities are subordinated to the payment of all Senior Debt
on the Closing Date and (ii) in the case of such Guarantor, that the Security
Guarantee of such Guarantor is subordinated to the payment of Senior Debt of
such Guarantor on the Closing Date, so long as (i) the effect of the use of this
defined term in Article X and XII is not to cause the Securities or the Security
Guarantee, as applicable, to be treated as part of (a) the same class of claims
as the Senior Debt of the Company or such Guarantor, as applicable, or (b) any
class of claims pari passu with, or senior to, the Senior Debt of the Company or
such Guarantor, as applicable, for any payment or distribution in any case or
proceeding or similar event relating to the liquidation, insolvency, bankruptcy,
dissolution, winding up or reorganization of the Company or such Guarantor and
(ii) to the extent that any Senior Debt of the Company or such Guarantor, as
applicable, outstanding on the date of consummation of any such plan of
reorganization or readjustment is not paid in full in cash on such date, either
(a) the holders of any such Senior Debt not so paid in full in cash have
consented to the terms of such plan of reorganization or readjustment or (b)
such holders receive securities which constitute Senior Debt of the Company or
such Guarantor, as applicable, and which have been determined by the relevant
court to constitute satisfaction in full in money or money's worth of any Senior
Debt of the Company or such Guarantor, as applicable, not paid in full in cash.

         "Permitted Liens" means (i) Liens securing Senior Debt of the Company
or Debt of a Restricted Subsidiary (in each case including related Obligations)
that was permitted by the terms of this Indenture to be incurred; (ii) Liens in
favor of the Company or any Restricted Subsidiary; (iii) Liens on property (a)
existing at the time of acquisition thereof or (b) of a Person existing at the
time such Person is merged into or consolidated with or acquired by the Company
or any Restricted Subsidiary of the Company; provided, that such Liens were in
existence prior to the contemplation of such acquisition, merger or
consolidation and do not extend to any assets other than those acquired or to
those of the Person merged into or consolidated with the Company or a Restricted
Subsidiary, as the case may be; (iv) Liens that secure Debt of a Person existing
at the time any such Person becomes a Restricted Subsidiary of the Company;
provided, that such Liens do not extend to any assets other than those of the
Person that became a Restricted Subsidiary of the Company; (v) banker's Liens,
rights of setoff and liens to secure the performance of bids, tenders, trade or
government contracts (other than for borrowed money), leases, licenses,
statutory obligations, surety or appeal bonds, performance bonds or other
obligations of a like nature incurred in the ordinary course of business; (vi)
without limitation of clause (i) above, Liens to secure Debt (including Capital
Lease Obligations) permitted by Section 4.03(b)(iv) covering only the assets
acquired, leased, constructed or improved with such Debt; (vii) Liens existing
on the Closing Date; (viii) customary Liens incurred in connection with a
Qualified Receivables Transaction; (ix) (a) carriers', warehousemen's,
mechanics', landlords', materialmen's, repairmen's or other like Liens arising
in the ordinary course of business and (b) Liens for taxes, assessments or
governmental charges or claims, in each case, that are not yet due or delinquent
or that are bonded or that are being contested in good faith and by appropriate
proceedings; provided that any reserve or other appropriate provision as shall
be required in conformity with GAAP shall have been made therefor; (x) Liens,
pledges or deposits in connection with (a) workmen's compensation, obligations
and general liability exposure of the Company and its Restricted Subsidiaries
and (b) unemployment insurance and other social security legislation; (xi) Liens
on goods (and the proceeds thereof) and documents of title and the

                                       14
<PAGE>

property covered thereby securing Debt in respect of commercial letters of
credit; (xii) (a) mortgages, Liens, security interests, restrictions,
encumbrances or any other matters of record that have been placed by any
developer, landlord or other third party on property over which the Company or
any Restricted Subsidiary of the Company has easement rights or on any real
property leased by the Company or any Restricted Subsidiary on the Closing Date
and subordination or similar agreements relating thereto and (b) any
condemnation or eminent domain proceedings affecting any real property; (xiii)
Liens arising by reason of a judgment, decree or court order, to the extent not
otherwise resulting in an Event of Default, and any Liens that are required to
protect or enforce any rights in any administrative, arbitration or other court
proceedings in the ordinary course of business; (xiv) Liens securing Hedging
Obligations entered into in the ordinary course of business; (xv) without
limitation of clause (i) above, Liens securing Refinancing Debt permitted to be
incurred under this Indenture or amendments or renewals of Liens that were
permitted to be incurred; provided, in each case, that such Liens do not extend
to any additional property or asset of the Company or a Restricted Subsidiary;
(xvi) any provision for the retention of title to an asset by the vendor or
transferor of such asset which asset is acquired by the Company or any
Restricted Subsidiary in a transaction entered into in the ordinary course of
business of the Company or such Restricted Subsidiary; (xvii) Liens that secure
Debt incurred by Foreign Subsidiaries for working capital purposes (including
acquisitions), and by the Company or any of its Restricted Subsidiaries of
Guarantees of Debt of Foreign Subsidiaries or foreign joint ventures; provided
that the aggregate principal amount of such Debt and of the Debt so Guaranteed
at any time outstanding does not exceed $30.0 million or was permitted to be
incurred pursuant to the Coverage Ratio Exception; and (xviii) Liens incurred in
the ordinary course of business of the Company or any Restricted Subsidiary of
the Company with respect to obligations that do not exceed $5.0 million at any
one time outstanding and that (a) are not incurred in connection with the
borrowing of money or the obtaining of advances or credit (other than trade
credit in the ordinary course of business) and (b) do not in the aggregate
materially detract from the value of the property or materially impair the use
thereof in the operation of business by the Company or such Restricted
Subsidiary.

         "Permitted Refinancing Debt" means any Debt of the Company or any of
its Restricted Subsidiaries issued in exchange for, or the net proceeds of which
are used to extend, refinance, renew, replace, defease or refund other Debt of
the Company or any of its Restricted Subsidiaries incurred in compliance with
this Indenture; provided that: (i) the principal amount (or accreted value, if
applicable) of such Permitted Refinancing Debt does not exceed the principal
amount of (or accreted value, if applicable), plus accrued interest on, the Debt
so extended, refinanced, renewed, replaced, defeased or refunded (plus the
amount of reasonable premium and fees and expenses incurred in connection
therewith); (ii) in the case of term Debt, principal payments required under
such Permitted Refinancing Debt have a Stated Maturity no earlier than the
earlier of (a) the Stated Maturity of those under the Debt being refinanced and
(b) the maturity date of the Securities and such Permitted Refinancing Debt has
a Weighted Average Life to Maturity equal to or greater than the lesser of the
Weighted Average Life to Maturity of the Debt being extended, refinanced,
renewed, replaced, defeased or refunded and the Weighted Average Life to
Maturity of the Securities; (iii) if the Debt being extended, refinanced,
renewed, replaced, defeased or refunded is subordinated in right of payment to
the Securities, such Permitted Refinancing Debt has a final maturity date later
than the final maturity date of, and is subordinated in right of payment to, the
Securities on terms at least as favorable to the Holders of Securities as those
contained in the documentation governing the Debt being extended,

                                       15
<PAGE>

refinanced, renewed, replaced, defeased or refunded; and (iv) such Debt is
incurred either by the Company or by the Restricted Subsidiary who is the
obligor on the Debt being extended, refinanced, renewed, replaced, defeased or
refunded or by the Company.

         The Company may incur Permitted Refinancing Debt not more than six
months prior to the application of the proceeds thereof to repay the Debt to be
refinanced; provided that upon the incurrence of such Permitted Refinancing
Debt, the Company shall provide written notice thereof to the Trustee,
specifically identifying the Debt to be refinanced with Permitted Refinancing
Debt.

         "Permitted Transferee" means, with respect to any Person, (i) any other
Person, directly or indirectly, controlling or controlled by or under direct or
indirect common control with such specified Person and (ii) any investment fund
or investment entity that is a subsidiary of such Person or a Permitted
Transferee of such Person.

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

         "Preferred Stock" means, with respect to any Person, any Capital Stock
of such Person (however designated) that is preferred as to the payment of
dividends or distributions, or as to the distribution of assets upon any
voluntary or involuntary liquidation or dissolution of such Person, over shares
of Capital Stock of any other class of such Person. With respect to the Company,
"Preferred Stock" includes the Senior Preferred Stock.

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

         "Private Exchange" shall have the meaning set forth in a Registration
Rights Agreement.

         "Private Exchange Securities" means Securities of the Company to be
delivered in a Private Exchange pursuant to a Registration Rights Agreement.

         "Pro Forma Cost Savings" means, with respect to any period ended on any
Calculation Date, the reductions in costs with respect to the applicable
four-quarter reference period that (1) are directly attributable to any
Investments, acquisitions, dispositions, mergers, consolidations or discontinued
operations and calculated on a basis that is consistent with Article 11 of
Regulation S-X under the Securities Act as in effect on the date of this
Indenture or (2) have begun to be implemented prior to the Calculation Date by,
or have been identified and approved in good faith by the Board of Directors of,
the Company, any Restricted Subsidiary or the business that was subject of any
such Investments, acquisitions, dispositions, mergers, consolidations or
discontinued operations pursuant to a formalized plan, in the case of each of
clause (1) and (2), based on a supportable, good faith estimate of the Chief
Financial Officer or other senior financial officer of the Company and
determined on a pro forma basis as if all such reductions in costs had been
effected as of the beginning of such period, decreased by any incremental
expenses (other than capitalized expenses) incurred or to be incurred during the
four-quarter reference period in order to achieve such reduction in costs.

                                       16
<PAGE>

         "Purchase Agreement" means (i) with respect to the Initial Securities
issued on the date hereof, the Purchase Agreement dated May 5, 2000, for the
purchase of $225,000,000 principal amount of Initial Securities among the
Company, the Initial Guarantor and the Initial Purchasers as such agreement may
be amended, modified or supplemented from time to time in accordance with the
terms thereof and (ii) with respect to any Additional Securities, any purchase
or underwriting agreement entered into by the Company, any Guarantors and the
initial purchasers or underwriters with respect thereto, as such agreement may
be amended, modified or supplemented from time to time in accordance with the
terms thereof.

         "Qualified Receivables Transaction" means any transaction or series of
transactions that may be entered into by the Company, any Restricted Subsidiary
or any Receivables Subsidiary pursuant to which the Company, any Restricted
Subsidiary or any Receivables Subsidiary may sell, convey or otherwise transfer
to, or grant a security interest in for the benefit of, (a) a Receivables
Subsidiary (in the case of a transfer or encumbrancing by the Company or a
Restricted Subsidiary) and (b) any other Person, accounts and other receivables
(whether now existing or arising in the future) of the Company or a Restricted
Subsidiary which arose in the ordinary course of business of the Company or a
Restricted Subsidiary, and any assets related thereto, including all collateral
securing such receivables, all contracts and all guarantees or other obligations
in respect of such receivables, proceeds of such receivables and other assets
which are customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization or factoring
transactions involving receivables.

         "Recapitalization" means the recapitalization of the Company pursuant
to which Saturn Acquisition Corporation was merged with and into the Company and
the financing transactions related thereto.

         "Recapitalization Agreement" means the Agreement and Plan of Merger
dated as of December 27, 1999 by and between the Company and Saturn Acquisition
Corporation, as amended through the Closing Date.

         "Receivables Subsidiary" means a Wholly Owned Subsidiary of the Company
which engages in no activities other than in connection with the financing of
receivables and related assets which is designated by the Board of Directors of
the Company (as provided below) as a Receivables Subsidiary (a) no portion of
any Debt or any other obligations (contingent or otherwise) of which directly or
indirectly, contingently or otherwise, (1) is guaranteed by the Company or a
Restricted Subsidiary of the Company (excluding Standard Securities
Undertakings), (2) is recourse to or obligates the Company or a Restricted
Subsidiary of the Company in any way other than pursuant to Standard
Securitization Undertakings, or (3) subjects any asset of the Company or a
Restricted Subsidiary of the Company to the satisfaction thereof, other than
Standard Securitization Undertakings, (b) with which neither the Company nor a
Restricted Subsidiary of the Company has any material contract, agreement,
arrangement or understanding other than those customarily entered into in
connection with Qualified Receivables Transactions, and (c) with which neither
the Company nor a Restricted Subsidiary of the Company has any obligation,
directly or indirectly, contingently or otherwise, to maintain or preserve such
Subsidiary's financial condition or cause such Subsidiary to achieve certain
levels of operating results. Any such designation by the Board of Directors of
the Company shall be evidenced to the Trustee by the filing with the Trustee a
certified copy of the resolution

                                       17
<PAGE>

of the Board of Directors of the Company giving effect to such designation and
an Officers' Certificate certifying that such designation complied with the
foregoing conditions.

         "Registration Rights Agreement" means (i) with respect to the Initial
Securities issued on the date hereof, the Registration Rights Agreement dated
May 10, 2000, among the Company, the Initial Guarantor and the Initial
Purchasers, as such agreement may be amended, modified, or supplemented from
time to time in accordance with the terms thereof and (ii) with respect to any
Additional Securities, any registration rights agreement entered into among the
Company, any Guarantors and the relevant initial purchasers or underwriters, as
the same may be amended, modified or supplemented from time to time in
accordance with the terms thereof.

         "Registered Exchange Offer" means an offer made by the Company pursuant
to a Registration Rights Agreement and under an effective registration statement
under the Securities Act to exchange Exchange Securities for outstanding Initial
Securities substantially identical in all material respects to such Initial
Securities (except for the differences provided for therein).

         "Representative" means any agent or representative in respect of any
Designated Senior Debt; provided that if, and for so long as, any Designated
Senior Debt lacks such a representative, then the Representative for such
Designated Senior Debt shall at all times constitute the holders of a majority
in outstanding principal amount of such Designated Senior Debt.

         "Restricted Investment" means an Investment other than a Permitted
Investment.

         "Restricted Securities Legend" means the legend set forth in the second
and third paragraphs of Exhibit A hereto.

         "Restricted Subsidiary" of a Person means any Subsidiary of the
referent Person that is not an Unrestricted Subsidiary.

         "SEC" means the Securities and Exchange Commission.

         "Secured Debt" means any Debt of the Company or any Guarantor secured
by a Lien.

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

         "Securities" has the meaning stated in the recital of this Indenture
and more particularly means any Securities authenticated and delivered under
this Indenture. For all purposes of this Indenture, the term "Securities" shall
include any Exchange Securities and any Private Exchange Securities to be issued
and exchanged for any Initial Securities pursuant to a Registration Rights
Agreement and this Indenture. From and after the issuance of any Additional
Securities (but not for purposes of determining whether such issuance is
permitted hereunder), "Securities" shall include such Additional Securities for
purposes of this Indenture and all Exchange Securities and Private Exchange
Securities from time to time issued with respect to any Initial Securities that
constitute such Additional Securities. All Securities, including any such
Additional Securities, shall vote together as one series of Securities under
this Indenture.

                                       18
<PAGE>

         "Securities Custodian" or "Custodian" means the custodian with respect
to any Global Security (as appointed by the Depository), or any successor entity
thereto covered in 2.03.

         "Security Guarantee" means the unconditional Guarantee by each
Guarantor pursuant to Article XI herein of the Company's Obligations under the
Securities.

         "Senior Debt" means (i) all Debt of the Company or any Guarantor
outstanding under the New Credit Facility and all Hedging Obligations with
respect thereto, (ii) any other Debt (including Acquired Debt) permitted to be
incurred by the Company or any Guarantor under the terms of this Indenture,
unless the instrument under which such Debt is incurred expressly provides that
it is on a parity with or subordinated in right of payment to the Securities or
the relevant Security Guarantee and (iii) all Obligations with respect to the
foregoing. Notwithstanding anything to the contrary in the foregoing, Senior
Debt will not include (v) any liability for federal, state, local or other taxes
owed or owing by the Company, (w) any Debt of the Company or any Guarantor to
any of its Subsidiaries or other Affiliates (other than Debt under any Credit
Facility to any such Affiliate), (x) any trade payables, (y) that portion of
Debt incurred in violation of Section 4.03 (but as to any such Debt under any
Credit Facility, no such violation shall be deemed to exist for purposes of this
clause (y) if the lenders have obtained a representation from a responsible
financial officer of the Company to the effect that the issuance of such Debt
does not violate such Section) or (z) any Debt or obligation of the Company or
any Guarantor which is expressly subordinated in right of payment to any other
Debt or obligation of the Company or such Guarantor, as applicable, including
any Subordinated Debt of the Company.

         "Senior Officer" means the Chief Executive Officer or the Chief
Financial Officer of the Company.

         "Significant Subsidiary" means (a) any Restricted Subsidiary that would
be a "significant subsidiary" as defined in Article I, Rule 1-02 of Regulation
S-X, promulgated pursuant to the Securities Act, as such regulation is in effect
on the Closing Date or (b) any one or more Restricted Subsidiaries of the
Company that (1) are not otherwise Significant Subsidiaries, (2) as to which any
event described in clause (6), (7), (8) or (9) of Section 6.01 herein has
occurred and is continuing and (3) would together constitute a Significant
Subsidiary under clause (a) of this definition.

         "Specified Affiliate Payments" means: (i) the direct or indirect
repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of the Company or any Restricted Subsidiary of the Company,
held by any future, present or former employee, director, officer or consultant
of the Company (or any of its Restricted Subsidiaries) pursuant to any
management equity subscription agreement, stock option agreement or plan, stock
ownership plan, put agreement, stockholder agreement or similar agreement that
may be in effect from time to time; provided that the aggregate price paid for
all such repurchased, redeemed, acquired or retired Equity Interests shall not
exceed $5.0 million in any calendar year (with unused amounts in any calendar
year being carried over to succeeding calendar years subject to a maximum amount
of repurchases, redemptions or other acquisitions or retirements pursuant to
this clause (i) (without giving effect to the immediately following proviso) of
$10.0 million in any calendar year) and no payment default on Senior Debt or the
Securities shall have occurred and

                                       19
<PAGE>

be continuing; provided further that such amount in any calendar year may be
increased by an amount not to exceed (A) the cash proceeds received by the
Company (including by way of capital contribution) since the Closing Date from
the sale of Equity Interests of the Company to employees, directors, officers or
consultants of the Company or its Subsidiaries that occurs in such calendar year
(it being understood that such cash proceeds shall be excluded from Section
4.04(a)(3)(ii)) plus (B) the cash proceeds from key man life insurance policies
received by the Company and its Restricted Subsidiaries in such calendar year
(including proceeds from the sale of such policies to the person insured
thereby); and provided further that cancellation of Debt owing to the Company
from employees, directors, officers or consultants of the Company or any of its
Subsidiaries in connection with a repurchase of Equity Interests of the Company
will not be deemed to constitute a Restricted Payment for purposes of this
Indenture; (ii) repurchases of Equity Interests deemed to occur upon exercise of
stock options or warrants as a result of the payment of all or a portion of the
exercise price of such options or warrants with Equity Interests; and (iii)
payments by the Company to shareholders or members of management of the Company
and its Subsidiaries in connection with the Recapitalization that are reflected
as adjustments to the pro forma financial statements included in the Offering
Memorandum.

         "Standard Securitization Undertakings" means representations,
warranties, covenants and indemnities entered into by the Company or a
Restricted Subsidiary which are reasonably customary in a receivables
securitization transaction.

         "Stated Maturity" means, with respect to any installment of interest or
principal of, or any other amount payable in respect of, any series of Debt, the
date on which such interest principal or other amount was scheduled to be paid
in the documentation governing such Debt, and shall not include any contingent
obligations to repay, redeem or repurchase any such interest principal or other
amount prior to the date scheduled for the payment thereof.

         "Subordinated Debt" means any Debt of the Company or any Guarantor
(whether outstanding on the Closing Date or thereafter incurred) that is
subordinate or junior in right of payment to the Securities or the applicable
Security Guarantee pursuant to written agreement.

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

         "Subsidiary Non-Guarantor" means any Subsidiary of the Company that is
not a Guarantor.

         "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. ss.ss.
77aaa-77bbbb) as in effect on the date of this Indenture, unless as stated in
Section 9.03 hereof.

                                       20
<PAGE>

         "Total Assets" means, at any time, the total consolidated assets of the
Company and its Restricted Subsidiaries at such time determined in accordance
with GAAP. For the purposes of Section 4.03(b)(iv), Total Assets shall be
determined giving pro forma effect to the lease, acquisition, construction or
improvement of the assets being leased, acquired, constructed or improved with
the proceeds of the relevant Debt.

         "Transfer Restricted Securities" means Securities that bear or are
required to bear the Restricted Securities Legend.

         "Treasury Rate" means the yield to maturity at the time of computation
of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15(519) which
has become publicly available at least two Business Days prior to the redemption
date (or, if such Statistical Release is no longer published, any publicly
available source or similar market data)) most nearly equal to the period from
the redemption date to May 1, 2005, provided, however, that if the period from
the redemption date to May 1, 2005 is not equal to the constant maturity of a
United States Treasury security for which a weekly average yield is given, the
Treasury Rate shall be obtained by linear interpolation (calculated to the
nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the period
from the redemption date to May 1, 2005 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year shall be used.

         "Trustee" means the party named as such in this Indenture until a
successor replaces it and, thereafter, means the successor.

         "Trust Officer" means, when used with respect to the Trustee, any
officer within the corporate trust department of the Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer,
trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of such person's knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

         "Uniform Commercial Code" means the New York Uniform Commercial Code as
in effect from time to time.

         "Unrestricted Subsidiary" means (1) any Subsidiary of the Company that
is designated an Unrestricted Subsidiary by the Board of Directors of the
Company in the manner provided in Section 4.10, and (2) any Subsidiary of an
Unrestricted Subsidiary; but, in each case, only to the extent permissible under
this Indenture, as described in Section 4.10.

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

         "Weighted Average Life to Maturity" means, when applied to any Debt at
any date, the number of years obtained by dividing (i) the sum of the products
obtained by multiplying (a) the amount of each then remaining installment,
sinking fund, serial maturity or other required payments of principal, including
payment at final maturity, in respect thereof, by (b) the number

                                       21
<PAGE>

of years (calculated to the nearest one-twelfth) that will elapse between such
date and the making of such payment, by (ii) the then outstanding principal
amount of such Debt.

         "Wholly Owned Restricted Subsidiary" of any Person means a Restricted
Subsidiary of such Person all of the outstanding Capital Stock or other
ownership interests of which (other than directors' qualifying shares) shall at
the time be owned by such Person or by one or more Wholly Owned Restricted
Subsidiaries of such Person.

         "Wholly Owned Subsidiary" of any Person means a Subsidiary of such
Person all of the outstanding Capital Stock or other ownership interest of which
(other than directors' qualifying shares) shall at the time be owned by such
Person or by one or more Wholly Owned Subsidiaries of such Person.

         SECTION 1.02. Other Definitions.

                            Term                        Defined in Section
     -----------------------------------------  --------------------------------
     "Accredited Investors"......................................2.01(b)
     "Affiliate Transaction".....................................4.07(a)
     "Agent Members".............................................2.13(a)
     "Asset Sale Offer"..........................................4.06
     "automatic stay"............................................8.02(f)
     "Bankruptcy Law"............................................6.01
     "Change of Control Offer"...................................3.09(a)
     "Change of Control Payment".................................4.08(a)
     "Covenant Defeasance".......................................8.01(c)
     "Coverage Ratio Exception"..................................4.03(a)
     "CUSIP".....................................................2.12
     "Custodian".................................................6.01
     "Designation"...............................................4.10(a)
     "DTC".......................................................2.03
     "estate"....................................................8.02(f)
     "Event of Default"..........................................6.01
     "Excess Proceeds"...........................................4.06
     "Excess Proceeds Offer".....................................3.09(a)
     "Guaranteed Obligations"...................................11.01
     "Guarantor payment default"................................12.03
     "Guarantor non-payment default"............................12.03
     "Guarantor Payment Blockage Notice"........................12.03
     "IAIs"......................................................2.01(b)
     "IAI Global Security".......................................2.01(b)
     "incur".....................................................4.03(a)
     "Indemnified Party".........................................7.07
     "Legal Defeasance"..........................................8.01(b)
     "Legal Holiday"............................................13.08
     "Material Adverse Effect"...................................4.15

                                       22
<PAGE>

     "non-payment default"......................................10.03
     "Notice of Default".........................................6.01
     "Offer Amount"..............................................3.09(a)
     "Offer Period"..............................................3.09(a)
     "Option of Holder to Elect Purchase"........................3.09
     "outstanding"...............................................8.01(b)
     "Paying Agent"..............................................2.03
     "Payment Blockage Notice"..................................10.03
     "payment default"..........................................10.03
     "Permanent Regulation S Global Security"....................2.01
     "Permitted Debt"............................................4.03(b)
     "Physical Securities".......................................2.01(c)
     "protected purchaser".......................................2.07
     "Purchase Date".............................................3.09(a)
     "QIBs"......................................................2.01(b)
     "QIB Global Security".......................................2.01(b)
     "qualified institutional buyers"............................2.01(b)
     "Registrar".................................................2.03
     "Regulation S"..............................................2.01(b)
     "Regulation S Global Security"..............................2.01(b)
     "Repurchase Offer"..........................................3.09(a)
     "Restricted Payments".......................................4.04(a)
     "Restricted Payments Basket"................................4.04(a)(3)
     "Revocation"................................................4.10(b)
     "Rule 144A".................................................2.01(b)
     "Senior Preferred Stock"....................................4.04(b)(vii)
     "Temporary Regulation S Global Security"....................2.01(b)
     "Trustee"...................................................8.03
     "U.S. Global Securities"....................................2.01(b)

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

         "Commission" means the SEC.

         "indenture securities" means the Securities.

         "indenture security holder" means a Security Holder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Trustee.

         "obligor" on the indenture securities means the Company and any other
obligor on the indenture securities.

                                       23
<PAGE>

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

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

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

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

                  (3) "or" is not exclusive;

                  (4) "including" means including without limitation;

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

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

                  (7) the principal amount of any noninterest bearing or other
         discount security at any date shall be the principal amount thereof
         that would be shown on a balance sheet of the Company dated such date
         prepared in accordance with GAAP and accretion of principal on such
         security shall not be deemed to be the incurrence of Debt; and

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

                                   ARTICLE II

                                 The Securities
                                 --------------

         SECTION 2.01. Form and Dating. (a) The Initial Securities issued on the
date hereof and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A, which is hereby incorporated in and
expressly made a part of this Indenture, and as otherwise provided in this
Article II. Any Exchange Securities or Permanent Regulation S Global Securities
and the Trustee's certificate of authentication shall be substantially in the
form of Exhibit B, which is hereby incorporated in and expressly made a part of
this Indenture, and as otherwise provided in this Article II. Any Private
Exchange Securities and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit C, which is hereby incorporated in and
expressly made a part of this Indenture, and as otherwise provided in this
Article II. Any Additional Securities shall be issued in the form of either (i)
Exhibit A, if such Security is a Transfer Restricted Security, or (ii) Exhibit
B, if such Security is not a Transfer Restricted Security. The Securities may
have notations, legends or endorsements required by law, stock exchange rule,
agreements to which the Company or any Guarantor is subject, if any,

                                       24
<PAGE>

or usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Company). Each Security shall be dated the date of its
authentication. The terms of the Securities set forth in Exhibit A, Exhibit B
and Exhibit C are part of the terms of this Indenture. The Securities shall be
issuable only in registered form without coupons and only in denominations of
$1,000 and integral multiples thereof.

         (b) The Initial Securities issued on the date hereof are being offered
and sold by the Company pursuant to the Purchase Agreement. The Initial
Securities will be offered and sold by the Initial Purchasers only (i) to
"qualified institutional buyers" (as defined in Rule 144A under the Securities
Act ("Rule 144A")) ("QIBs") and (ii) in reliance on Regulation S under the
Securities Act ("Regulation S"). Initial Securities in the form of Additional
Securities may be issued and sold as provided in the related Purchase Agreement.
After such initial offers and sales, Initial Securities that are Transfer
Restricted Securities may be transferred to, among others, QIBS, in reliance on
Regulation S and to institutional "Accredited Investors" (within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act) ("IAIs") in accordance
with certain transfer restrictions. Initial Securities that are offered and sold
in reliance on Rule 144A shall be issued initially in the form of one or more
permanent Global Securities substantially in the form set forth in Exhibit A
(collectively, the "QIB Global Security") deposited with the Trustee, as
Securities Custodian, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. Initial Securities that are offered and sold in
offshore transactions in reliance on Regulation S shall be issued initially in
the form of one or more temporary Global Securities substantially in the form
set forth in Exhibit A (collectively, the "Temporary Regulation S Global
Security") deposited with the Trustee, as Securities Custodian, duly executed by
the Company and authenticated by the Trustee as hereinafter provided. At any
time on or after June 19, 2000, upon receipt by the Trustee and the Company of a
certificate substantially in the form of Exhibit G hereto, one or more permanent
Global Securities substantially in the form set forth in Exhibit B
(collectively, the "Permanent Regulation S Global Security"; and together with
the Temporary Regulation S Global Security, the "Regulation S Global Security")
duly executed by the Company and authenticated by the Trustee as hereinafter
provided, shall be deposited with the Trustee, as Securities Custodian. Initial
Securities resold or otherwise transferred to IAIs shall be issued substantially
in the form set forth in Exhibit A (collectively, the "IAI Global Security" and,
together with the QIB Global Security, the "U.S. Global Securities"). The QIB
Global Security, the Regulation S Security and the IAI Global Security shall
each be issued with separate CUSIP numbers. The aggregate principal amount of
each Global Security may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as Securities Custodian.
Transfers of Initial Securities between QIBs and IAIs and to or by purchasers
pursuant to Regulation S shall be represented by appropriate increases and
decreases to the respective amounts of the appropriate Global Securities, as
more fully provided in Section 2.14.

         (c) Except as otherwise provided in the related Purchase Agreement,
Initial Securities offered and sold other than as described in the preceding two
paragraphs, if any, shall be issued in the form of permanent certificated
Securities in registered form in substantially the form set forth in Exhibit A
attached hereto without the Global Securities Legend (the "Physical
Securities").

                                       25
<PAGE>

         SECTION 2.02. Execution and Authentication. One or more Officers of the
Company shall sign the Securities by manual or facsimile signature.

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

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

         The Trustee shall authenticate and make available for delivery upon a
written order of the Company signed by two of its Officers (1) Initial
Securities for original issue on the date hereof in an aggregate principal
amount of $225,000,000, (2) subject to Section 4.03, Additional Securities in an
aggregate principal amount of up to $125,000,000 and (3) (A) Exchange Securities
for issue only in a Registered Exchange Offer, and (B) Private Exchange
Securities for issue only in a Private Exchange, in the case of each of (A) and
(B) pursuant to a Registration Rights Agreement and for Initial Securities for a
like principal amount of Initial Securities exchanged pursuant thereto. Such
order shall specify the amount of the Securities to be authenticated, the date
on which the original issue of Securities is to be authenticated and whether the
Securities are to be Initial Securities, Additional Securities, Exchange
Securities or Private Exchange Securities. The aggregate principal amount of
Securities outstanding at any time may not exceed $350,000,000 except as
provided in Section 2.07.

         The Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate the Securities. Any such appointment shall be
evidenced by an instrument signed by a Trust Officer of the Trustee, a copy of
which shall be furnished to the Company. Unless limited by the terms of such
appointment, an authenticating agent may authenticate Securities whenever the
Trustee may do so. After any such appointment, each reference in this Indenture
to authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Registrar, Paying Agent or agent
for service of notices and demands.

         SECTION 2.03. Registrar and Paying Agent. The Company shall maintain an
office or agency where Securities may be presented for registration of transfer
or for exchange (the "Registrar") and an office or agency where Securities may
be presented for payment (the "Paying Agent"). The Registrar shall keep a
register of the Securities and of their transfer and exchange. The Company may
have one or more co-registrars and one or more additional paying agents. The
term "Paying Agent" includes any additional paying agent.

         The Company shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the
Trustee set forth in Section 13.02.

         The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations. The
Company will give prompt notice to the Trustee of

                                       26
<PAGE>

any such designation or rescission and of any change in the location of any such
other office or agency.

         The Company initially designates the Corporate Trust Office of the
Trustee specified in Section 13.02 as such office of the Company in accordance
with this Section 2.03.

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

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

         The Company initially appoints The Depository Trust Company ("DTC") to
act as Depository with respect to the Global Securities, and the Trustee shall
initially be the Securities Custodian with respect to the Global Securities.

         The Company may remove any Registrar or Paying Agent upon written
notice to such Registrar or Paying Agent and to the Trustee, provided that no
such removal shall become effective until (1) acceptance of an appointment by a
successor as evidenced by an appropriate agreement entered into by the Company
and such successor Registrar or Paying Agent, as the case may be, and delivered
to the Trustee or (2) notification to the Trustee that the Trustee shall serve
as Registrar or Paying Agent until the appointment of a successor in accordance
with clause (1) above. The Registrar or Paying Agent may resign at any time upon
not less than three Business Days' prior written notice to the Company;
provided, however, that the Trustee may resign as Paying Agent or Registrar only
if the Trustee also resigns as Trustee in accordance with Section 7.08.

         SECTION 2.04. Paying Agent to Hold Money in Trust. Prior to 10:00 a.m.
on each due date of the principal and interest on any Security, the Company
shall deposit with the Paying Agent (or if the Company or a permitted Wholly
Owned Restricted Subsidiary is acting as Paying Agent, segregate and hold in
trust for the benefit of the Persons entitled thereto) a sum sufficient to pay
such principal and interest when so becoming due. The Company shall require each
Paying Agent (other than the Trustee) to agree in writing that the Paying Agent
shall hold in trust for the benefit of Securityholders or the Trustee all money
held by the Paying Agent for the payment of principal of or interest on the
Securities and shall notify the Trustee in writing of any default by the Company
in making any such payment within one Business Day thereof. If the Company or a
permitted Wholly Owned Restricted Subsidiary acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund. The Company at any time may require a Paying Agent to pay all money held
by it to the Trustee and to account for any funds disbursed by the Paying Agent.
Upon complying with this Section, the Paying Agent shall have no further
liability for the money delivered to the Trustee.

                                       27
<PAGE>

         Any money deposited with any Paying Agent, or then held by the Company
or a permitted Wholly Owned Restricted Subsidiary in trust for the payment of
principal or interest on any Security and remaining unclaimed for two years
after such principal and interest has become due and payable shall be paid to
the Company at its request, or, if then held by the Company or a permitted
Wholly Owned Restricted Subsidiary, shall be discharged from such trust; and the
Securityholders shall thereafter, as general unsecured creditors, look only to
the Company for payment thereof, and all liability of the Paying Agent with
respect to such money, and all liability of the Company or such permitted Wholly
Owned Restricted Subsidiary as trustee thereof, shall thereupon cease.

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

         SECTION 2.06. Transfer and Exchange. The Securities shall be issued in
registered form and shall be transferable only upon the surrender of a Security
for registration of transfer. When a Security is presented to the Registrar or a
co-registrar with a request to register a transfer, the Registrar shall register
the transfer as requested if the requirements of Section 8-401 of the Uniform
Commercial Code are met. When Securities are presented to the Registrar or a
co-registrar with a request to exchange them for an equal principal amount of
Securities of other denominations, the Registrar shall make the exchange as
requested if the same requirements are met. To permit registration of transfers
and exchanges, the Company shall execute and the Trustee shall authenticate
Securities at the Registrar's or co-registrar's request. The Company may require
payment of a sum sufficient to pay all taxes, assessments or other governmental
charges in connection with any transfer or exchange pursuant to this Section.
The Company shall not be required to make, and the Registrar need not register,
transfers or exchanges of Securities selected for redemption (except, in the
case of Securities to be redeemed in part, the portion thereof not to be
redeemed) or transfers or exchanges of any Securities for a period of 15 days
before a selection of Securities to be redeemed.

         Prior to the due presentation for registration of transfer of any
Security, the Company, the Guarantors, the Trustee, the Paying Agent, the
Registrar or any co-registrar may deem and treat the Person in whose name a
Security is registered as the absolute owner of such Security for the purpose of
receiving payment of principal of and accrued and unpaid interest and Liquidated
Damages, if any, on such Security and for all other purposes whatsoever, whether
or not such Security is overdue, and none of the Company, the Trustee, the
Paying Agent, the Registrar or any co-registrar shall be affected by notice to
the contrary.

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

                                       28
<PAGE>

         All Securities issued upon any transfer or exchange pursuant to this
Section 2.06 will evidence the same debt and will be entitled to the same
benefits under this Indenture as the Securities surrendered upon such transfer
or exchange.

         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 Security (including any transfers between or among Persons who have
accounts with the Depository or beneficial owners of interests in any Global
Security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and when
expressly required by the terms of, this Indenture, and to examine the same to
determine substantial compliance as to form with the express requirements
hereof.

         SECTION 2.07. Replacement Securities. If a mutilated Security is
surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met, such that the Holder (i)
satisfies the Company or the Trustee within a reasonable time after he has
notice of such loss, destruction or wrongful taking and the Registrar does not
register a transfer prior to receiving such notification, (ii) makes such
request to the Company or the Trustee prior to the Security being acquired by a
protected purchaser as defined in Section 8-303 of the Uniform Commercial Code
(a "protected purchaser") and (iii) satisfies any other reasonable requirements
of the Trustee and the Company including evidence of the destruction, loss or
theft of the Security. Such Holder shall furnish an indemnity bond sufficient in
the judgment of the Trustee to protect the Company, the Trustee, the Paying
Agent, the Registrar and any co-registrar from any loss that any of them may
suffer if a Security is replaced. The Company and the Trustee may charge the
Holder for their expenses in replacing a Security including the payment of a sum
sufficient to cover any tax or other governmental charge that may be required.
In the event any such mutilated, lost, destroyed or wrongfully taken Security
has become or is about to become due and payable, the Company in its discretion
may pay such Security instead of issuing a new Security in replacement thereof.

         Every replacement Security is an additional obligation of the Company.

         The provisions of this Section 2.07 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, lost, destroyed or wrongfully taken
Securities.

         SECTION 2.08. Outstanding Securities. Securities outstanding at any
time are all Securities authenticated by the Trustee except for those canceled
by it, those delivered to it for cancellation and those described in this
Section as not outstanding. A Security does not cease to be outstanding because
the Company or an Affiliate of the Company holds the Security.

         If a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee and the Company receive proof satisfactory to
them that the replaced Security is held by a protected purchaser.

                                       29
<PAGE>

         If the Paying Agent segregates and holds in trust, in accordance with
this Indenture, on a redemption date or maturity date money sufficient to pay
all principal and interest payable on that date with respect to the Securities
(or portions thereof) to be redeemed or maturing, as the case may be, and the
Paying Agent is not prohibited from paying such money to the Securityholders on
that date pursuant to the terms of this Indenture, then on and after that date
such Securities (or portions thereof) cease to be outstanding and interest on
them ceases to accrue.

         SECTION 2.09. Temporary Securities. Until Definitive Securities and
Global Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Securities. Temporary Securities shall be
substantially in the form of Definitive Securities but may have variations that
the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate Definitive
Securities and deliver them in exchange for temporary Securities upon surrender
of such temporary Securities at the office or agency of the Company, without
charge to the Holder.

         SECTION 2.10. Cancellation. The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the Paying Agent
shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel all
Securities surrendered for registration of transfer, exchange, payment or
cancellation and deliver canceled Securities to the Company in accordance with
the Trustee's customary procedures. The Company may not issue new Securities to
replace Securities they have redeemed, paid or delivered to the Trustee for
cancellation. The Trustee shall not authenticate Securities in place of canceled
Securities other than pursuant to the terms of this Indenture.

         SECTION 2.11. Defaulted Interest. If the Company defaults in a payment
of interest on the Securities, the Company shall pay the defaulted interest
(plus interest on such defaulted interest to the extent lawful) in any lawful
manner. The Company may pay the defaulted interest to the persons who are
Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee and shall promptly mail or cause to be
mailed to each Securityholder a notice that states the special record date, the
payment date and the amount of defaulted interest to be paid.

         The Company may make payment of any defaulted interest in any other
lawful manner not inconsistent with the requirements (if applicable) of any
securities exchange on which the Securities may be listed, and upon such notice
as may be required by such exchange, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this paragraph, such manner of
payment shall be deemed practicable by the Trustee.

         SECTION 2.12. CUSIP Numbers. The Company in issuing the Securities may
use "CUSIP" numbers (if then generally in use) and, if so, the Trustee shall use
"CUSIP" numbers in notices of redemption as a convenience to Holders; provided,
however, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be

                                       30
<PAGE>

affected by any defect in or omission of such numbers. The Company will promptly
notify the Trustee of any change in "CUSIP" numbers.

         SECTION 2.13. Book-Entry Provisions for Global Securities.

         (a) Each Global Security initially shall (i) be registered in the name
of the Depository for such Global Security or the nominee of such Depository and
(ii) be delivered to the Trustee as the initial Securities Custodian for such
Depository. Beneficial interests in Global Securities may be held indirectly
through members of or participants in ("Agent Members") the Depository
(including Clearstream Banking and Euroclear in the case of the Regulation S
Global Security).

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

         (b) Transfers of a Global Security shall be limited to transfers of
such Global Security in whole, but not in part, to the Depository, its
successors or their respective nominees. Interests of beneficial owners in a
Global Security may be transferred in accordance with the rules and procedures
of the Depository (and Agent Member, if applicable) and the provisions of
Section 2.14. The Trustee shall register the transfer of Physical Securities to
all beneficial owners in exchange for their beneficial interests in a Global
Security if (i) the Depository notifies the Company that it is unwilling or
unable to continue as Depository for such Global Security or the Depository
ceases to be a clearing agency registered under the Exchange Act, at a time when
the Depository is required to be so registered in order to act as Depository,
and in each case a successor Depository is not appointed by the Company within
90 days of such notice or, (ii) the Company executes and delivers to the Trustee
and Registrar an Officers' Certificate stating that such Global Security shall
be so exchangeable or (iii) an Event of Default has occurred and is continuing
and the Registrar has received a request from the Depository to permit such
transfers.

         Notwithstanding the previous sentence, in no event shall Physical
Securities be delivered to investors who purchased Securities in reliance on
Regulation S prior to the day that is forty days after the Issue Date with
respect to such Securities.

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

         SECTION 2.14. Special Transfer Provisions. Unless and until a Transfer
Restricted Security is transferred or exchanged under an effective registration
statement under the Securities Act, the following provisions shall apply:

                                       31
<PAGE>

         (a) Transfers to Non-QIB IAIs. The following provisions shall apply
with respect to the registration of any proposed transfer of a Transfer
Restricted Security to any IAI that is not a QIB (other than pursuant to
Regulation S):

                  (i) The Registrar shall register the transfer of any Transfer
         Restricted Security by a Holder if (x) the requested transfer is (I) at
         least two years after the later of (A) the Issue Date with respect to
         such Transfer Restricted Security and (B) the date such Transfer
         Restricted Security was acquired from an affiliate of the Company and
         (II) at least three months after the last date such Holder was an
         affiliate of the Company or (y) the proposed transferee has delivered
         to the Registrar a letter substantially in the form set forth in
         Exhibit D hereto.

                  (ii) If the proposed transferee is an Agent Member and the
         Transfer Restricted Security to be transferred consists of a beneficial
         interest in the QIB Global Security or the Regulation S Global
         Security, upon receipt by the Registrar of (x) the letter, if any,
         required by paragraph (i) above and (y) instructions given in
         accordance with the Depository's and the Registrar's procedures
         therefor, the Registrar shall reflect on its books and records the date
         and an increase in the principal amount of the IAI Global Security in
         an amount equal to the principal amount of the beneficial interest in
         the QIB Global Security or the Regulation S Global Security to be so
         transferred and the Registrar shall reflect on its books and records
         the date and an appropriate decrease in the principal amount of such
         QIB Global Security or Regulation S Global Security.

         (b) Transfers to QIBs. The following provisions shall apply with
respect to the registration of any proposed transfer of a Transfer Restricted
Security to a QIB (other than pursuant to Regulation S):

                  (i) The Registrar shall register the transfer of a Transfer
         Restricted Security by a Holder if (x) the requested transfer is (I) at
         least two years after the later of (A) the Issue Date with respect to
         such Transfer Restricted Security and (B) the date such Transfer
         Restricted Security was acquired from an affiliate of the Company and
         (II) at least three months after the last date such Holder was an
         affiliate of the Company or (y) such transfer is being made by a
         proposed transferor who has provided the Registrar with a letter
         substantially in the form set forth in Exhibit E hereto.

                  (ii) If the proposed transferee is an Agent Member and the
         Transfer Restricted Security to be transferred consists of an interest
         in the IAI Global Security or the Regulation S Global Security, upon
         receipt by the Registrar of (x) the letter, if any, required by
         paragraph (i) above and (y) instructions given in accordance with the
         Depositary's and the Registrar's procedures therefor, the Registrar
         shall reflect on its books and records the date and an increase in the
         principal amount of the QIB Global Security in an amount equal to the
         principal amount of the beneficial interest in the IAI Global Security
         or the Regulation S Global Security to be so transferred, and the
         Registrar shall reflect on its books and records the date and an
         appropriate decrease in the principal amount of such IAI Global
         Security or Regulation S Global Security.

                                       32
<PAGE>

         (c) Transfers Pursuant to Regulation S. The Registrar shall register
the transfer of any Permanent Regulation S Global Security without requiring any
additional certification. The following provisions shall apply with respect to
registration of any proposed transfer of a Transfer Restricted Security pursuant
to Regulation S:

                  (i) The Registrar shall register any proposed transfer of a
         Transfer Restricted Security by a Holder if (x) the requested transfer
         is at least two years after the Issue Date with respect to such
         Transfer Restricted Security and at least three months after the last
         date such Holder was an affiliate of the Company or (y) upon receipt of
         a letter substantially in the form set forth in Exhibit F hereto from
         the proposed transferor.

                  (ii) If the proposed transferor is an Agent Member holding a
         beneficial interest in a U.S. Global Security, upon receipt by the
         Registrar of (x) the letter, if any, required by paragraph (i) above
         and (y) instructions in accordance with the Depositary's and the
         Registrar's procedures therefor, the Registrar shall reflect on its
         books and records the date and an increase in the principal amount of
         the Regulation S Global Security in an amount equal to the principal
         amount of the beneficial interest in such U.S. Global Security to be
         transferred, and the Registrar shall reflect on its books and records
         the date and an appropriate decrease in the principal amount of the
         applicable U.S. Global Security.

         (d) Restricted Securities Legend. Upon the transfer, exchange or
replacement of Securities not bearing the Restricted Securities Legend, the
Registrar shall deliver Securities that do not bear the Restricted Securities
Legend. Upon the transfer, exchange or replacement of Securities bearing the
Restricted Securities Legend, the Registrar shall deliver only Securities that
bear the Restricted Securities Legend unless either (i) the circumstances
contemplated by paragraph (a)(i)(x), (b)(i)(x) or (c)(i)(x) of this Section
exist or (ii) there is delivered to the Registrar an Opinion of Counsel
reasonably satisfactory to the Company and the Trustee to the effect that
neither such legend nor the related restrictions on transfer are required in
order to maintain compliance with the provisions of the Securities Act.

         (e) General. By its acceptance of any Security bearing the Restricted
Securities Legend, each Holder of such a Security acknowledges the restrictions
on transfer of such Security set forth in this Indenture and in the Restricted
Securities Legend and agrees that it shall transfer such Security only as
provided in this Indenture.

         The Registrar shall retain copies of all letters, notices and other
written communications received pursuant to this Section 2.14. The Company shall
have the right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable
written notice to the Registrar.

                                   ARTICLE III

                                   Redemption
                                   ----------

         SECTION 3.01. Notices to Trustee. If the Company elects to redeem
Securities pursuant to Section 3.07, it shall notify the Trustee in writing of
the redemption date, the principal amount

                                       33
<PAGE>

of Securities to be redeemed and the paragraph of the Securities pursuant to
which the redemption will occur.

         The Company shall give each notice to the Trustee provided for in this
Section at least 60 days before the redemption date unless the Trustee consents
to a shorter period. Such notice shall be accompanied by an Officers'
Certificate and an Opinion of Counsel from the Company to the effect that such
redemption will comply with the conditions herein. If fewer than all the
Securities are to be redeemed, the record date relating to such redemption shall
be selected by the Company and given to the Trustee, which record date shall be
not fewer than 15 days after the date of notice to the Trustee. Any such notice
may be canceled at any time prior to notice of such redemption being mailed to
any Holder and shall thereby be void and of no effect.

         SECTION 3.02. Selection. If less than all of the Securities are to be
redeemed at any time, selection of Securities for redemption will be made by the
Trustee in compliance with the requirements of the principal national securities
exchange, if any, on which the Securities are listed, or, if the Securities are
not so listed, on a pro rata basis, by lot or by such method as the Trustee
shall deem fair and appropriate; provided that no Securities of $1,000 or less
shall be redeemed in part; provided further, however, that if a partial
redemption is made with the proceeds of a public offering of common stock,
selection of the Securities or portions thereof for redemption shall be made by
the Trustee on a pro rata basis only or on as nearly a pro rata basis as is
practicable (subject to DTC procedures), unless such method is otherwise
prohibited. If any Security is to be redeemed in part only, the notice of
redemption that relates to such Security shall state the portion of the
principal amount thereof to be redeemed. On and after the redemption date,
interest ceases to accrue on Securities or portions of them called for
redemption.

         SECTION 3.03. Notice. Notices of redemption shall be mailed by first
class mail at least 30 but not more than 60 days before the redemption date to
each Holder of Securities to be redeemed at its registered address. Notices of
redemption may not be conditional. The Trustee shall notify the Company promptly
of the Securities or portions of Securities to be redeemed.

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

                  (1) the redemption date;

                  (2) the redemption price;

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

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

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

                  (6) that, unless the Company defaults in making such
         redemption payment or the Paying Agent is prohibited from making such
         payment pursuant to the terms of this

                                       34
<PAGE>

         Indenture, interest on Securities (or portion thereof) called for
         redemption ceases to accrue on and after the redemption date;

                  (7) the paragraph of the Securities pursuant to which the
         Securities called for redemption are being redeemed;

                  (8) the CUSIP number, if any, printed on the Securities being
         redeemed; and

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

         At the Company's request (which may be revoked at any time in writing
prior to the time at which the Trustee shall have given such notice to the
Holders), the Trustee shall give the notice of redemption in the Company's name
and at the Company's expense. In such event, the Company shall provide the
Trustee with the information required by this Section.

         SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption
is mailed, Securities called for redemption become due and payable on the
redemption date and at the redemption price stated in the notice. Upon surrender
to the Paying Agent, such Securities shall be paid at the redemption price
stated in the notice, plus accrued interest and Liquidated Damages, if any, to
the redemption date; provided that if the redemption date is after a regular
record date and on or prior to the interest payment date, the accrued interest
shall be payable to the Securityholder of the redeemed Securities registered on
the relevant record date. If mailed in the manner herein, the notice shall be
conclusively presumed to have been given whether or not the Holder receives such
notice. Failure to give notice or any defect in the notice to any Holder shall
not affect the validity of the notice to any other Holder.

         SECTION 3.05. Deposit of Redemption Price. Prior to 10:00 a.m. on the
redemption date, the Company shall deposit with the Paying Agent (or, if the
Company or a Wholly Owned Restricted Subsidiary is the Paying Agent, shall
segregate and hold in trust) money sufficient to pay the redemption price of and
accrued interest and Liquidated Damages, if any, on all Securities to be
redeemed on the redemption date other than Securities or portions of Securities
called for redemption that have been delivered by the Company to the Trustee for
cancellation.

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

         SECTION 3.07. Optional Redemption.

         (a) Except as set forth in Section 3.07(b) or (c), the Securities may
not be redeemed prior to May 1, 2005. Thereafter, the Securities will be subject
to redemption at any time at the option of the Company, in whole or in part, at
the redemption prices (expressed as percentages of principal amount) set forth
below plus accrued and unpaid interest and Liquidated Damages thereon, if any,
to the applicable redemption date, (subject to the right of Holders on the
relevant

                                       35
<PAGE>

record date to receive interest due on the relevant interest payment date), if
redeemed during the twelve-month period beginning on May 1 of the years
indicated below:

               Period                                Price
               ------                                -----

               2005                                  106.375%

               2006                                  104.250%

               2007                                  102.125%

               2008 and thereafter                   100.000%

         (b) In addition, at any time and from time to time, prior to May 1,
2003, the Company may redeem up to 35% of the aggregate principal amount of
Securities under this Indenture at a redemption price of 112.75% of the
principal amount thereof, plus accrued and unpaid interest and Liquidated
Damages thereon, if any, to the redemption date, (subject to the right of
Holders on the relevant record date to receive interest due on the relevant
interest payment date), with the net cash proceeds of a public offering of
common stock of the Company; provided that at least 65% of the aggregate
principal amount of Securities issued under this Indenture remains outstanding
immediately after the occurrence of such redemption; and provided further that
such redemption shall occur within 90 days of the date of the closing of such
public offering.

         (c) At any time on or prior to May 1, 2005, the Securities may be
redeemed as a whole but not in part at the option of the Company upon the
occurrence of a Change of Control (but in no event may any such redemption occur
more than 120 days after the occurrence of such Change of Control) at a
redemption price equal to 100% of the principal amount thereof plus the
Applicable Premium as of, and accrued but unpaid interest and Liquidated
Damages, if any, to, the redemption date, subject to the right of Holders on the
relevant record date to receive interest due on the relevant interest payment
date.

         SECTION 3.08. No Sinking Fund. There shall be no sinking fund for the
payment of principal on the Securities to the Securityholders.

         SECTION 3.09. Repurchase Offers.

         (a) In the event that the Company shall be required to commence an
offer to all Holders to purchase Securities (a "Repurchase Offer") pursuant to
Section 4.06 hereof (an "Excess Proceeds Offer") or pursuant to Section 4.08
hereof (a "Change of Control Offer") the Company shall follow the procedures
specified in this Section 3.09:

                  (i) Within 30 days after (A) a Change of Control (unless (1)
         the Company is not required to make such offer pursuant to Section
         4.08(b) or (2) all Securities have been called for redemption pursuant
         to Section 3.07(c)) or (B) the Company is required to make an Asset
         Sale Offer pursuant to Section 4.06, the Company shall (x) commence a
         Repurchase Offer, which shall remain open for a period of at least 20
         Business Days

                                       36
<PAGE>

         following its commencement (the "Offer Period") and (y) send, by first
         class mail, a notice to the Trustee and each of the Holders which shall
         contain all instructions and materials necessary to enable such Holders
         to tender Securities pursuant to such Repurchase Offer. The notice,
         which shall govern the terms of the Repurchase Offer, shall describe
         the transaction or transactions that constitute the Change of Control
         or Asset Sale requiring an Asset Sale Offer, as the case may be, and
         shall state:

                           (A) that the Repurchase Offer is being made pursuant
                  to this Section 3.09 and Section 4.06 or 4.08, as the case may
                  be, as applicable;

                           (B) the principal amount of Securities required to be
                  purchased pursuant to Section 4.06, in case of an Excess
                  Proceeds Offer, or that the Company is required to offer to
                  purchase all of the outstanding principal amount of
                  Securities, in the case of a Change of Control Offer (such
                  amount, the "Offer Amount"), the purchase price and, that on
                  the date specified in such notice (the "Purchase Date"), which
                  date shall be no earlier than 30 days and no later than 60
                  days from the date such notice is mailed, the Company shall
                  repurchase all Securities validly tendered and not withdrawn
                  pursuant to this Section 3.09 and Section 4.06 or 4.08, as
                  applicable;

                           (C) that any Security not tendered or accepted for
                  payment shall continue to accrue interest;

                           (D) that, unless the Company defaults in making such
                  payment, Securities accepted for payment pursuant to the
                  Repurchase Offer shall cease to accrue interest after the
                  Purchase Date;

                           (E) that Holders electing to have a Security
                  purchased pursuant to a Repurchase Offer may elect to have all
                  or any portion of such Security purchased;

                           (F) that Holders electing to have a Security
                  purchased pursuant to any Repurchase Offer shall be required
                  to surrender the Security, with the form entitled "Option of
                  Holder to Elect Purchase" on the reverse of the Security, or
                  such other customary documents of surrender and transfer as
                  the Company may reasonably request, duly completed, or
                  transfer by book-entry transfer, to the Company, the
                  Depository, or the Paying Agent at the address specified in
                  the notice prior to the Purchase Date;

                           (G) that Holders shall be entitled to withdraw their
                  election if the Company, the Depository or the Paying Agent,
                  as the case may be, receives, not later than the expiration of
                  the Offer Period, a telegram, facsimile transmission or letter
                  setting forth the name of the Holder, the principal amount of
                  the Security the Holder delivered for purchase and a statement
                  that such Holder is withdrawing its election to have such
                  Security purchased;

                           (H) that, in the case of an Excess Proceeds Offer, if
                  the aggregate principal amount of Securities surrendered by
                  Holders thereof exceeds the Offer Amount, the Trustee shall
                  select the Securities to be purchased on a pro rata basis

                                       37
<PAGE>

                  (based upon the outstanding principal amount thereof), with
                  such adjustments as may be deemed appropriate by the Company
                  so that only Securities in denominations of $1,000, or
                  integral multiples thereof, shall be purchased;

                           (I) that Holders whose Securities are purchased only
                  in part shall be issued new Securities equal in principal
                  amount to the unpurchased portion of the Securities
                  surrendered (or transferred by book-entry transfer); and

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

                  (ii) On (or at the Company's election, before) the Purchase
         Date, the Company shall, (A) to the extent lawful, accept for payment,
         on a pro rata basis to the extent necessary in the case of an Excess
         Proceeds Offer, the Securities or portions thereof tendered pursuant to
         the Repurchase Offer and not theretofore withdrawn, or if Securities
         aggregating less than the Offer Amount have been tendered, all
         Securities tendered, and shall deliver to the Trustee an Officers'
         Certificate stating that such Securities or portions thereof were
         accepted for payment by the Company in accordance with the terms of
         this Section 3.09, (B) deposit with the Paying Agent an amount equal to
         the payment required in respect of all Securities or portions thereof
         so tendered and (C) deliver or cause to be delivered to the Trustee the
         Securities so accepted together with an Officers' Certificate stating
         the aggregate principal amount of Securities or portions thereof being
         purchased by the Company. The Company, the Depository or the Paying
         Agent, as the case may be, shall promptly (but in any case not later
         than five days after the Purchase Date) mail or deliver to each
         tendering Holder an amount equal to the Change of Control Payment or
         the payment due to each respective Holder in respect of the Excess
         Proceeds Offer, as applicable, with respect to the Securities tendered
         by such Holder and accepted by the Company for purchase, and the
         Company shall promptly issue a new Security, and the Trustee, upon
         written request from the Company, shall authenticate and mail or
         deliver such new Security to such Holder, in a principal amount equal
         to any unpurchased portion of the Securities so surrendered, provided
         that each such new Security shall be in a principal amount of $1,000 or
         an integral multiple thereof. Any Security not so accepted shall be
         promptly mailed or delivered by the Company to the Holder thereof. On
         the Purchase Date, all Securities purchased by the Company shall be
         delivered to the Trustee for cancellation. All Securities or portions
         thereof purchased pursuant to the Repurchase Offer will be canceled by
         the Trustee. The Company shall publicly announce the results of the
         Repurchase Offer on or as soon as practicable after the Purchase Date,
         but in no case more than five Business Days thereafter.

         If the Company complies with the provisions of the preceding paragraph,
on and after the Purchase Date interest shall cease to accrue on the Securities
or the portions of Securities repurchased. If a Security is repurchased on or
after an interest record date but on or prior to the related interest payment
date, then any accrued and unpaid interest shall be paid to the Person in whose
name such Security was registered at the close of business on such record date.
If any Security called is not repurchased upon surrender because of the failure
of the Company to

                                       38
<PAGE>

comply with the preceding paragraph, interest shall be paid on the unpaid
principal, from the Purchase Date until such principal is paid, and to the
extent lawful on any interest not paid on such unpaid principal, in each case at
the rate provided in the Securities and in Section 4.01 hereof.

         (b) The Company shall comply with the requirements of Rule 14e-1 under
the Exchange Act and any other securities laws and regulations to the extent
such laws and regulations are applicable in connection with the Repurchase
Offer. To the extent that the provisions of any applicable securities laws or
regulations conflict with this Section 3.09, the Company shall comply with such
securities laws and regulations and shall not be deemed to have breached its
obligations under this Section by virtue thereof.

         (c) Prior to complying with the provisions of this Section 3.09, but in
any event within 90 days following a Change of Control Offer or Asset Sale
Offer, as applicable, the Company shall either repay all outstanding Senior Debt
of the Company or obtain the requisite consents, if any, under all agreements
governing outstanding Senior Debt of the Company to permit the repurchase of
Securities required by this Section 3.09 and Section 4.06 or 4.08, as
applicable.

         (d) Once notice of repurchase is mailed in accordance with this Section
3.09, all Securities validly tendered and not withdrawn (or, in the case of an
Excess Proceeds Offer, if the Company is not required to repurchase all of such
Securities then the pro rata portion of such Securities that the Company may be
required to purchase pursuant to Section 3.02 and/or 4.06 hereof, as applicable)
become irrevocably due and payable on the Purchase Date at the purchase price
specified herein. A notice of repurchase may not be conditional.

         (e) Other than as specifically provided in this Section 3.09 or Section
4.06 or 4.08, as applicable, any purchase pursuant to this Section 3.09 shall be
made pursuant to Sections 3.02 and 3.06 hereof.

                                   ARTICLE IV

                                    Covenants
                                    ---------

         SECTION 4.01. Payment of Securities. The Company shall promptly pay the
principal of and interest on the Securities on the dates and in the manner
provided in the Securities and in this Indenture. Principal and interest shall
be considered paid on the date due if on such date the Trustee or the Paying
Agent (but only if other than the Company or a Wholly Owned Restricted
Subsidiary) holds by 11:00 a.m., New York City time, in accordance with this
Indenture available funds sufficient to pay all principal and interest then due
and the Trustee or the Paying Agent, as the case may be, is not prohibited from
paying such money to the Securityholders on that date pursuant to the terms of
this Indenture.

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

                                       39
<PAGE>

         SECTION 4.02. Reports. Notwithstanding that the Company may not be
required to remain subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act, to the extent permitted by the Exchange Act, the Company
shall file with the SEC, and provide, within 15 days after the Company is
required to file the same with the SEC, the Trustee and the Holders with the
annual reports and the information, documents and other reports that are
specified in Sections 13 and 15(d) of the Exchange Act. In the event the Company
is not permitted to file such reports, documents and information with the SEC,
the Company will provide substantially similar information to the Trustee and
the Holders, as if the Company were subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act. The Company also shall comply with the
other provisions of TIA ss. 314(a).

         SECTION 4.03. Incurrence of Debt and Issuance of Preferred Stock.

         (a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable, contingently or otherwise,
with respect to (collectively, "incur") any Debt (including Acquired Debt) or
issue any Disqualified Stock and the Company shall not permit any of its
Restricted Subsidiaries to issue any shares of Preferred Stock; provided,
however, that if no Default or Event of Default shall have occurred and be
continuing at the time of or as a consequence of the incurrence or issuance of
any such Debt, the Company or any Guarantor or Foreign Subsidiary of the Company
may incur Debt (including Acquired Debt) or issue shares of Disqualified Stock,
and Guarantors may issue Preferred Stock, if, in any such case, the Consolidated
Coverage Ratio for the Company's most recently ended four full fiscal quarters
for which internal financial statements are available immediately preceding the
date on which such additional Debt is incurred or such Disqualified Stock or
other Preferred Stock is issued would have been at least 2.00 to 1.00 if such
incurrence or issuance is on or before May 1, 2002 or at least 2.25 to 1.00 if
such incurrence or issuance is thereafter, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if the
additional Debt had been incurred, or the Disqualified Stock or Preferred Stock
had been issued, as the case may be, at the beginning of such four-quarter
period (the "Coverage Ratio Exception").

         (b) The provisions of Section 4.03(a) will not apply to the incurrence
of any of the following items of Debt (collectively, "Permitted Debt"):

                  (i) the incurrence by the Company or any of its Restricted
         Subsidiaries of term and revolving Debt and letters of credit (with
         letters of credit being deemed to have a principal amount equal to the
         undrawn face amount thereof) under Credit Facilities (including
         Guarantees of such Debt by the Company or any of its Subsidiaries);
         provided that the aggregate principal amount of such Debt outstanding
         pursuant to this clause (i) without duplication, does not exceed an
         amount equal to the sum of (a) $500.0 million and (b) the greater of
         $170.0 million and the Borrowing Base at the time such Debt is
         incurred;

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

                                       40
<PAGE>

                  (iii) the incurrence by the Company of Debt represented by the
         Securities issued on the Closing Date and by the Guarantors of Debt
         represented by the Security Guarantees;

                  (iv) the incurrence by the Company or any of its Restricted
         Subsidiaries of (a) Acquired Debt or (b) Debt (including Capital Lease
         Obligations) for the purpose of financing or refinancing all or any
         part of the lease, purchase price or cost of construction or
         improvement of any property (real or personal) or other assets that are
         used or useful in the business of the Company or such Restricted
         Subsidiary (whether through the direct purchase of assets or the
         Capital Stock of any Person owning such assets and whether such Debt is
         owed to the seller or Person carrying out such construction or
         improvement or to any third party), in an aggregate principal amount at
         the date of such incurrence (including all Permitted Refinancing Debt
         incurred to refund, refinance or replace any other Debt incurred
         pursuant to this clause (iv)) not to exceed an amount equal to $35.0
         million; provided that such Debt exists at the date of such purchase or
         transaction, or is created within 180 days thereafter;

                  (v) the incurrence by the Company or any of its Restricted
         Subsidiaries of Permitted Refinancing Debt in exchange for, or the net
         proceeds of which are used to refund, refinance or replace Debt (other
         than intercompany Debt) incurred pursuant to the Coverage Ratio
         Exception, or pursuant to clause (ii), (iii) or (iv) of this Section
         4.03(b);

                  (vi) the incurrence by the Company or any of its Restricted
         Subsidiaries of intercompany Debt or Preferred Stock owed or issued to
         and held by the Company and any of its Restricted Subsidiaries
         including any Indebtedness arising in connection with a Qualified
         Receivables Transaction, provided, however, that (a) any such Debt of
         the Company shall be subordinated and junior in right of payment to the
         Securities and (b)(I) any subsequent issuance or transfer of Equity
         Interests or other action that results in any such Debt or Preferred
         Stock being held by a Person other than the Company or a Restricted
         Subsidiary and (II) any sale or other transfer of any such Debt or
         Preferred Stock to a Person that is not either the Company or a
         Restricted Subsidiary shall be deemed, in each case, to constitute an
         incurrence of such Debt or issuance of such Preferred Stock by the
         Company or such Restricted Subsidiary, as the case may be, that was not
         permitted by this clause (vi);

                  (vii) the incurrence by the Company or any of its Restricted
         Subsidiaries of Hedging Obligations that are incurred (a) for the
         purpose of fixing or hedging interest rate risk with respect to any
         floating rate Debt that is permitted by the terms of this Indenture to
         be outstanding in a notional amount not exceeding the amount of such
         Debt or (b) for the purpose of fixing or hedging currency exchange rate
         risk or commodity price risk incurred in the ordinary course of
         business, and in each case, not for speculative purposes;

                  (viii) the guarantee by the Company or any Guarantor of Debt
         of the Company or a Restricted Subsidiary of the Company or by any
         Restricted Subsidiary of Debt of any other Restricted Subsidiary that
         is not a Guarantor, in each case, that was permitted to be incurred by
         another provision of this Section 4.03;

                                       41
<PAGE>

                  (ix) the incurrence by Foreign Subsidiaries of Debt for
         working capital purposes (including acquisitions), and by the Company
         or any of its Restricted Subsidiaries of Guarantees of Debt of Foreign
         Subsidiaries or foreign joint ventures, provided that the aggregate
         principal amount of such Debt and of the Debt so Guaranteed at any time
         outstanding does not exceed $30.0 million; and

                  (x) the incurrence by the Company or any of its Restricted
         Subsidiaries of additional Debt (which may comprise Debt under the New
         Credit Facility) in an aggregate principal amount (or accreted value,
         as applicable) at any time outstanding, pursuant to this clause (x) not
         to exceed an amount equal to $50.0 million.

         Notwithstanding any other provision in this Section 4.03, the maximum
amount of Debt that the Company or any Restricted Subsidiary may incur pursuant
to this Section 4.03 shall not be deemed to be exceeded as a result of
fluctuations in the exchange rates of currencies. For purposes of determining
compliance with this Section 4.03: (a) the outstanding principal amount of any
particular Debt shall be counted only once and any obligation arising under any
guarantee, Lien, letter of credit or similar instrument supporting such Debt
shall be disregarded; (b) in the event that an item of Debt meets the criteria
of more than one of the categories of Permitted Debt described in clauses (i)
through (x) above or is entitled to be incurred pursuant to Section 4.03(a), the
Company shall, in its sole discretion, classify such item of Debt in any manner
that complies with this Section 4.03 and such item of Debt will be treated as
having been incurred pursuant to only one of such clauses or pursuant to Section
4.03(a); provided that all outstanding Debt under the New Credit Facility
immediately following the Recapitalization shall be deemed to have been incurred
pursuant to Section 4.03(b)(i); and (c) accrual of interest and the accretion of
accreted value will not be deemed to be an incurrence of Debt.

         SECTION 4.04. Restricted Payments.

         (a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, (i) declare or pay any dividend or make
any other distribution (including any payment by the Company or any Restricted
Subsidiary in connection with any merger or consolidation involving the Company
or any of its Restricted Subsidiaries) on account of the Company's or any of its
Restricted Subsidiaries' Equity Interests (other than dividends or distributions
payable in Equity Interests (other than Disqualified Stock) and dividends
payable to the Company or any Restricted Subsidiary), (ii) purchase, redeem or
otherwise acquire or retire for value (including any acquisition or retirement
by the Company or any Restricted Subsidiary in connection with any merger or
consolidation) any Equity Interests of the Company, (iii) make any payment on or
with respect to, or purchase, redeem, defease or otherwise acquire or retire for
value, any Subordinated Debt of the Company or any Guarantor, except (A) a
payment of interest, principal or other related Obligations at Stated Maturity
and (B) the purchase, repurchase or other acquisition or retirement of
Subordinated Debt of the Company or such Guarantor in anticipation of satisfying
a sinking fund obligation, principal installment or final maturity, in each case
due within one year of the date of purchase, repurchase or other acquisition or
retirement or (iv) make any Restricted Investment, (all such payments and other
actions set forth in clauses (i) through (iv) above being collectively referred
to as "Restricted Payments"), unless, at the time of and after giving effect to
such Restricted Payment:

                                       42
<PAGE>

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

                  (2) the Company would, at the time of such Restricted Payment
         and after giving pro forma effect thereto as if such Restricted Payment
         had been made at the beginning of the applicable four-quarter period,
         have been permitted to incur at least $1.00 of additional Debt pursuant
         to Section 4.03(a); and

                  (3) such Restricted Payment, together with (without
         duplication) the aggregate amount of all other Restricted Payments made
         by the Company and its Restricted Subsidiaries after the Closing Date,
         is less than the sum (without duplication) (the "Restricted Payments
         Basket") of:

                           (i) 50% of the Consolidated Net Income of the Company
                  for the period (taken as one accounting period) from the
                  beginning of the fiscal quarter during which the Closing Date
                  occurs to the end of the Company's most recently ended fiscal
                  quarter for which internal financial statements are available
                  at the time of such Restricted Payment (or, if such
                  Consolidated Net Income for such period is negative, 100% of
                  such negative amount); plus

                           (ii) 100% of the aggregate net cash proceeds, and the
                  fair market value of any property other than cash, received by
                  the Company from the issue or sale (other than to a
                  Subsidiary) of, or from capital contributions with respect to,
                  Equity Interests of the Company (other than Disqualified Stock
                  and all warrants, options or other rights to acquire
                  Disqualified Stock (but excluding any debt security that is
                  convertible into, or exchangeable for, Disqualified Stock)),
                  in either case after the Closing Date; plus

                           (iii) the amount by which the aggregate principal
                  amount (or accreted value, if less) of Debt or Disqualified
                  Stock of the Company or any Restricted Subsidiary is reduced
                  on the Company's consolidated balance sheet upon the
                  conversion or exchange after the Closing Date of any Debt
                  convertible into or exchangeable for Equity Interests (other
                  than Disqualified Stock) of the Company, together with the net
                  cash proceeds received by the Company at the time of such
                  conversion; plus

                           (iv) 100% of the aggregate net cash proceeds received
                  by the Company or a Restricted Subsidiary of the Company since
                  the Closing Date (to the extent not included in Consolidated
                  Net Income of the Company) from (A) Restricted Investments,
                  whether through interest payments, principal payments,
                  dividends or other distributions and payments, or the sale or
                  other disposition (other than to the Company or a Restricted
                  Subsidiary) thereof made by the Company and its Restricted
                  Subsidiaries (less the cost of such sale or disposition, if
                  any) and (B) a cash dividend from, or the sale (other than to
                  the Company or a Restricted Subsidiary) of the stock of, an
                  Unrestricted Subsidiary; plus

                                       43
<PAGE>

                           (v) upon the redesignation as a Restricted Subsidiary
                  of any Subsidiary that was designated an Unrestricted
                  Subsidiary after the Closing Date, the fair market value of
                  the Restricted Investments of the Company and its Restricted
                  Subsidiaries (other than such Subsidiary) in such Subsidiary.

         (b) The provisions of Section 4.04(a) shall not prohibit:

                  (i) the payment of any dividend within 60 days after the date
         of declaration thereof, if at said date of declaration such payment
         would have complied with the provisions of this Section 4.04;

                  (ii) the redemption, repurchase, retirement, defeasance or
         other acquisition of Equity Interests or Subordinated Debt of the
         Company, in exchange for, or out of the net cash proceeds of the
         substantially concurrent sale (other than to a Restricted Subsidiary of
         the Company) of, other Equity Interests (other than any Disqualified
         Stock) of, or a capital contribution to, the Company; provided, that
         the amount of any such net cash proceeds that are utilized for any such
         redemption, repurchase, retirement, defeasance or other acquisition
         shall not increase the Restricted Payments Basket;

                  (iii) the redemption, repurchase, retirement, defeasance or
         other acquisition of Subordinated Debt of the Company (a) made by an
         exchange for, or with the net cash proceeds from a substantially
         concurrent incurrence of, Permitted Refinancing Debt or (b) upon a
         Change of Control or Asset Sale to the extent required by the agreement
         governing such Subordinated Debt but only if the Company shall have
         complied with Section 4.06 or Section 4.08 herein, as the case may be,
         and purchased all Securities validly tendered pursuant to the relevant
         offer prior to purchasing or repaying such Subordinated Debt;

                  (iv) the payment of any dividend by a Restricted Subsidiary of
         the Company to the holders of its common Equity Interests on a pro rata
         basis;

                  (v) to the extent constituting Restricted Payments, the
         Specified Affiliate Payments;

                  (vi) Restricted Payments in an aggregate amount not to exceed
         $15.0 million; and

                  (vii) without limitation of the parenthetical at the end of
         Section 4.04(a)(i) above the payment of any dividends in respect of the
         14% Senior Redeemable Payment-In-Kind Preferred Stock of the Company
         (the "Senior Preferred Stock") in the form of additional shares of
         Senior Preferred Stock having the terms and conditions set forth in the
         Certificate of Designation relating to the Senior Preferred Stock as in
         effect on the Closing Date.

         In determining the aggregate amount of Restricted Payments made after
the Closing Date in accordance with Section 4.04(a)(3), amounts expended
pursuant to clauses (i) (without duplication) and (iv) (but not amounts under
clauses (ii), (iii), (v), (vi) or (vii)) shall be included in such calculation;
provided that any amounts expended pursuant to such clause (iv) relating to

                                       44
<PAGE>

dividends paid to the Company or one of its Restricted Subsidiaries shall not be
included in such calculation.

         The amount of all Restricted Payments (other than cash) shall be the
fair market value on the date of the Restricted Payment of the asset(s) or
securities proposed to be transferred or issued by the Company or such
Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.
The fair market value of any non-cash Restricted Payment or any property other
than cash that increases the Restricted Payments Basket shall be determined in
good faith by the Board of Directors of the Company.

         In making the computations required by this Section 4.04: (a) the
Company or the relevant Restricted Subsidiary shall use audited financial
statements for the portions of the relevant period for which audited financial
statements are available on the date of determination and unaudited financial
statements and other current financial data based on the books and records of
the Company for the remaining portion of such period; and (b) the Company or the
relevant Restricted Subsidiary will be permitted to rely in good faith on the
financial statements and other financial data derived from the books and records
of the Company and the Restricted Subsidiary that are available on the date of
determination.

         If the Company makes a Restricted Payment that, at the time of the
making of such Restricted Payment, would in the good faith determination of the
Company or any Restricted Subsidiary be permitted under the requirements of this
Indenture, such Restricted Payment will be deemed to have been made in
compliance with this Indenture notwithstanding any subsequent adjustments made
in good faith to the Company's or any Restricted Subsidiary's financial
statements, affecting Consolidated Net Income of the Company for any period. For
the avoidance of doubt, it is expressly agreed that no payment or other
transaction permitted by subclauses (i), (iv), (vi), (vii) and (viii) of Section
4.07(b) and no payment contemplated by or otherwise arising pursuant to the
Recapitalization, shall be considered a Restricted Payment for purposes of, or
otherwise restricted by, this Indenture.

         SECTION 4.05. Dividend and Other Payment Restrictions Affecting
Restricted Subsidiaries. The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any consensual encumbrance or restriction on
the ability of any Restricted Subsidiary to (i)(a) pay dividends or make any
other distributions to the Company or any of its Restricted Subsidiaries (1) on
its Capital Stock or (2) with respect to any other interest or participation in,
or measured by, its profits, or (b) pay any Debt owed to the Company or any of
its Restricted Subsidiaries, (ii) make loans or advances to the Company or any
of its Restricted Subsidiaries or (iii) transfer any of its properties or assets
to the Company or any of its Restricted Subsidiaries, except for such
encumbrances or restrictions existing under or by reason of:

                  (1) contracts in effect on the Closing Date as in effect on
         the Closing Date, including the New Credit Facility and other Existing
         Debt and the related documentation;

                  (2) this Indenture, the Securities, the Security Guarantees
         and any other agreement entered into after the Closing Date, provided
         that the encumbrances or

                                       45
<PAGE>

         restrictions in such agreements are not materially more restrictive
         than those contained in the foregoing agreements;

                  (3) any agreement or other instrument of a Person acquired by
         the Company or any of its Restricted Subsidiaries as in effect at the
         time of such acquisition (but not created in connection with or in
         contemplation of such acquisition), which encumbrance or restriction is
         not applicable to any Person, or the properties or assets of any
         Person, other than the Person, or the property or assets of the Person,
         so acquired;

                  (4) purchase money obligations (including Capital Lease
         Obligations) for property acquired in the ordinary course of business
         that impose restrictions of the nature described in subclause (iii)
         above on the property so acquired;

                  (5) Debt or other contractual requirements in connection with
         a Qualified Receivables Transaction that, in the good faith
         determination of the Board of Directors or senior management of the
         Company, are necessary or advisable to effect such Qualified
         Receivables Transaction;

                  (6) in the case of subclause (iii) above, any encumbrance or
         restriction (i) that restricts in a customary manner the subletting,
         assignment, or transfer of any property or asset that is subject to a
         lease, license or similar contract or (ii) contained in security
         agreements or mortgages securing Debt to the extent such encumbrance or
         restriction restricts the transfer of the property subject to such
         security agreements or mortgages;

                  (7) in the case of subclause (iii) above, any Lien on property
         or assets of the Company or any Restricted Subsidiary not otherwise
         prohibited by this Indenture;

                  (8) any restriction under an agreement (including an option or
         right) to sell property or assets of, or Equity Interests in, the
         Company or any Restricted Subsidiary pending the closing of such sale,
         which sale is permitted under this Indenture;

                  (9) restrictions on cash or other deposits or net worth
         imposed by leases or other agreements entered into in the ordinary
         course of business;

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

                  (11) any encumbrances or restrictions created with respect to
         (i) Debt or Preferred Stock of Guarantors permitted to be incurred or
         issued subsequent to the Closing Date pursuant to Section 4.03 and (ii)
         Debt or Preferred Stock of Subsidiary Non-Guarantors permitted to be
         incurred or issued subsequent to the Closing Date pursuant to Section
         4.03, provided that in the case of this clause (ii) the Board of
         Directors of the Company determines (as evidenced by a resolution of
         the Board of Directors) in good faith at the time such encumbrances or
         restrictions are created that such encumbrances or restrictions would
         not reasonably be expected to impair the ability

                                       46
<PAGE>

         of the Company to make payments of interest and scheduled payments of
         principal on the Securities in each case as and when due;

                  (12) any encumbrances or restrictions required by any
         governmental, local or regulatory authority having jurisdiction over
         the Company or any of its Restricted Subsidiaries or any of their
         businesses in connection with any development grant made or other
         assistance provided to the Company or any of its Restricted
         Subsidiaries by such governmental authority; or

                  (13) any amendments, modifications, restatements, renewals,
         increases, supplements, refundings, replacements or refinancings of the
         contracts, instruments or obligations referred to in clauses (1)
         through (l2) above, provided that such amendments, modifications,
         restatements, renewals, increases, supplements, refundings,
         replacements or refinancings, taken as a whole, are, in the good faith
         judgment of the Company, not materially more restrictive with respect
         to such encumbrances or restrictions than those contained in the
         contracts, instruments or obligations prior to such amendment,
         modification, restatement, renewal, increase, supplement, refunding,
         replacement or refinancing.

         SECTION 4.06. Asset Sales. The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, consummate an Asset Sale unless (i) the
Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of such Asset Sale at least equal to the fair market
value of the assets or Equity Interests issued or sold or otherwise disposed of
and (ii) at least 75% of the consideration therefor received by the Company or
such Restricted Subsidiary is in the form of cash or Cash Equivalents and/or
property or assets that will be used or useful in a Permitted Business of the
Company or any of its Restricted Subsidiaries; provided that this clause (ii)
shall not apply to any sale of Equity Interests of or other Investments in
Unrestricted Subsidiaries.

         For purposes of this Section 4.06, each of the following shall be
deemed to be cash: (a) any liabilities (as shown on the Company's or such
Restricted Subsidiary's most recent balance sheet), of the Company or any
Restricted Subsidiary (other than liabilities that are by their terms
subordinated to the Securities or, in the case of liabilities of a Guarantor,
the Security Guarantee of such Guarantor) that are assumed by the transferee of
any such assets, or from which the Company and its Restricted Subsidiaries are
released; and (b) any notes or other obligations received by the Company or any
such Restricted Subsidiary from such transferee that are converted by the
Company or such Restricted Subsidiary into cash (to the extent of the cash
received) within 90 days after receipt.

         Within 360 days after the receipt of any Net Proceeds from an Asset
Sale, the Company may apply such Net Proceeds, at its option (a) to repay Senior
Debt or to repay Debt of any Restricted Subsidiary, (b) to make capital
expenditures or to acquire properties and assets that will be used or useful in
the business of the Company or any of its Subsidiaries or (c) to the acquisition
of a controlling interest in another entity engaged in a Permitted Business;
provided that if during such 360-day period the Company or a Restricted
Subsidiary enters into a definitive agreement committing it to apply such Net
Proceeds in accordance with the requirements of clause (b) or (c) or if the
application of such Net Proceeds is part of a project

                                       47
<PAGE>

authorized by the Board of Directors in good faith that will take longer than
360 days to complete and such project has begun, such 360 day period will be
extended with respect to the amount of Net Proceeds so committed until required
to be paid in accordance with such agreement (or, if earlier, until termination
of such agreement) or, until completion of such project, as the case may be.
Pending the final application of any Net Proceeds, the Company or any Restricted
Subsidiary may temporarily reduce borrowings under a Credit Facility or
otherwise invest such Net Proceeds in any manner that is not prohibited by this
Indenture. Any Net Proceeds from Asset Sales that are not applied or invested as
provided in the first sentence of this paragraph will be deemed to constitute
"Excess Proceeds." When the aggregate amount of Excess Proceeds exceeds $20.0
million, the Company shall (i) make an offer to all Holders of Securities, and
(ii) prepay, purchase or redeem (or make an offer to do so) any Pari Passu Debt
of the Company in accordance with provisions governing such Debt requiring the
Company to prepay, purchase or redeem such Debt with the proceeds from any Asset
Sales (or offer to do so), pro rata in proportion to the respective principal
amounts of the Securities and such other Debt required to be prepaid, purchased
or redeemed or tendered for, in the case of the Securities pursuant to such
offer (an "Asset Sale Offer") to purchase the maximum principal amount of
Securities that may be purchased out of such pro rata portion of the Excess
Proceeds, at an offer price in cash in an amount equal to 100% of their
principal amount plus accrued and unpaid interest and Liquidated Damages (if
any) to the date of purchase, in accordance with the procedures set forth in
Section 3.09. To the extent that the aggregate principal amount of Securities
and Pari Passu Debt tendered pursuant to an Asset Sale Offer or other offer is
less than the Excess Proceeds, the Company may use any remaining Excess Proceeds
for any purpose not otherwise prohibited by this Indenture. If the aggregate
principal amount of Securities surrendered by holders thereof exceeds the pro
rata portion of such Excess Proceeds to be used to purchase Securities, the
Trustee shall select the Securities to be purchased on a pro rata basis. Upon
completion of such offer to purchase, the amount of Excess Proceeds shall be
reset at zero. Notwithstanding anything to the contrary in the foregoing, the
Company may commence an Asset Sale Offer prior to the expiration of 360 days
after the occurrence of an Asset Sale.

         SECTION 4.07. Transactions with Affiliates.

         (a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any contract, agreement,
understanding, loan, advance or guarantee or other transaction with, or for the
benefit of, any Affiliate of the Company (each of the foregoing, an "Affiliate
Transaction"), unless (i) such Affiliate Transaction is on terms that, taken as
a whole, are no less favorable to the Company or the relevant Restricted
Subsidiary than those that would have been obtained in a comparable transaction
by the Company or such Restricted Subsidiary with an unrelated Person and (ii)
the Company delivers to the Trustee (a) with respect to any Affiliate
Transaction entered into after the Closing Date involving aggregate
consideration in excess of $4.0 million, a resolution of the Board of Directors
set forth in an Officers' Certificate certifying that such Affiliate Transaction
complies with clause (i) above and that such Affiliate Transaction has been
approved by a majority of the members of the Board of Directors and (b) with
respect to any Affiliate Transaction involving aggregate consideration in excess
of $10.0 million, an opinion as to the fairness to the Company or such
Restricted Subsidiary of such Affiliate Transaction from a

                                       48
<PAGE>

financial point of view issued by an investment banking, appraisal or accounting
firm of national standing.

         (b) The provisions of Section 4.07(a) shall not prohibit (and the
following shall not be deemed to be Affiliate Transactions): (i) any employment
agreements, non-competition agreements, stock purchase or option agreements,
collective bargaining agreements, employee benefit plans or arrangements
(including vacation plans, health and life insurance plans, deferred
compensation plans, stock loan programs, long-term incentive plans, directors'
and officers' indemnification agreements and retirement, savings or similar
plans), related trust agreements or any similar arrangements, in each case in
respect of employees, officers or directors and entered into in the ordinary
course of business, any payments or other transactions contemplated by any of
the foregoing and any other payments of compensation to employees, officers,
directors or consultants in the ordinary course of business or in connection
with the Company's transition to new ownership; (ii) transactions between or
among (A) the Company and/or its Restricted Subsidiaries or (B) the Company
and/or one or more of its Restricted Subsidiaries and any joint venture;
provided no Affiliate of the Company (other than a Restricted Subsidiary) owns
Capital Stock of any such joint venture; (iii) Permitted Investments and
Restricted Payments that are permitted by Section 4.04; (iv) loans or advances
to employees (or guarantees of third party loans to employees) in the ordinary
course of business or pursuant to a stock loan program; (v) transactions among
the Company and/or one or more of its Subsidiaries effected as part of a
Qualified Receivables Transaction; (vi) payments to Investcorp and its
Affiliates (whether or not such Persons are Affiliates of the Company) for
annual management, consulting and advisory fees and related expenses, which fees
shall not exceed $1.5 million per year; provided, however, that such fees with
respect to the first five years after the Closing Date shall be paid on the
Closing Date; (vii) any agreement as in effect on the Closing Date (including
the Recapitalization Agreement) or any amendment thereto (so long as any such
amendment is not disadvantageous to the holders of the Securities in any
material respect) or any transaction pursuant thereto (including the payment of
all fees and expenses related to the Recapitalization); (viii) transactions with
customers, clients, suppliers, or purchasers or sellers of goods or services, in
each case in the ordinary course of business and otherwise in compliance with
the terms of this Indenture which are fair to the Company or its Restricted
Subsidiaries, or are on terms at least as favorable as might reasonably have
been obtained at such time from an unaffiliated party, in each case in the
reasonable determination of the Board of Directors of the Company or the senior
management thereof; (ix) Debt permitted by Section 4.03(b)(x) on terms that,
taken as a whole, are no less favorable to the Company or the relevant
Restricted Subsidiary than those that would have been obtained in a comparable
transaction with an unrelated Person, or, if there is no comparable transaction,
have been negotiated in good faith by the parties thereto and, if any member of
management is then a member of the Board of Directors of the Company or the
relevant Restricted Subsidiary, also approved by such member; (x) any
transaction on arm's length terms with non-affiliates that become Affiliates as
a result of such transaction; and (xi) the issuance of common stock of the
Company.

         SECTION 4.08. Change of Control.

         (a) Upon the occurrence of a Change of Control, unless all Securities
have been called for redemption pursuant to Section 3.07, each Holder of
Securities shall have the right to require the Company to repurchase all or any
part (equal to $1,000 or an integral multiple

                                       49
<PAGE>

thereof) of such Holder's Securities pursuant to a Change of Control Offer made
pursuant to Section 3.09 at an offer price in cash (the "Change of Control
Payment") equal to 101% of the aggregate principal amount thereof plus accrued
and unpaid interest and Liquidated Damages thereon, if any, to the date of
purchase.

         (b) The Company shall not be required to make a Change of Control Offer
upon a Change of Control if a third party makes the Change of Control Offer in
the manner, at the times and otherwise in compliance with the requirements set
forth in Section 3.09 applicable to a Change of Control Offer made by the
Company and purchases all Securities validly tendered and not withdrawn under
such Change of Control Offer.

         SECTION 4.09. Compliance Certificate. The Company shall deliver to the
Trustee within 120 days after the end of each fiscal year of the Company an
Officers' Certificate stating that in the course of the performance by the
signers of their duties as Officers of the Company they would normally have
knowledge of any Default and whether or not the signers know of any Default that
occurred during such period. If they do have such knowledge, the certificate
shall describe the Default, its status and what action the Company is taking or
proposes to take with respect thereto. The Company also shall comply with
Section 314(a)(4) of the TIA.

         The Company shall deliver to the Trustee, as soon as possible and in
any event within five days after the Company becomes aware of the occurrence of
any Event of Default or an event which, with notice or the lapse of time or
both, would constitute an Event of Default, an Officers' Certificate setting
forth the details of such Event of Default or Default and the action which the
Company proposes to take with respect thereto.

         SECTION 4.10. Limitation on Designations of Unrestricted Subsidiaries

         (a) The Board of Directors may designate (a "Designation") any
Restricted Subsidiary (including any newly acquired or newly formed Subsidiary
of the Company) to be an Unrestricted Subsidiary unless such Subsidiary owns any
Capital Stock of, or owns or holds any Lien on any property of, the Company or
any Restricted Subsidiary, so long as such Designation would not cause a
Default; provided that (i) any then existing Guarantee by the Company or any
Restricted Subsidiary of any Debt of the Subsidiary being so designated shall be
deemed an "incurrence" of such Debt at the time of such Designation and (ii)
either (A) the Subsidiary to be so designated has total assets of $1.0 million
or less or (B) if such Subsidiary has assets greater than $1.0 million, the
"incurrence" of Debt referred to in clause (1) of this provision would be
permitted under Section 4.03.

         For purposes of making the determination of whether such Designation
would cause a Default, the portion of the fair market value of the net assets of
any Subsidiary of the Company at the time that such Subsidiary is designated an
Unrestricted Subsidiary that is represented by the interest of the Company and
its Restricted Subsidiaries (excluding Permitted Investments) in such
Subsidiary, in each case as determined in good faith by the Board of Directors
of the Company, shall be deemed to be a Restricted Payment. Such Designation
will only be permitted if such Restricted Payment would be permitted at such
time.

                                       50
<PAGE>

         (b) The Board of Directors may revoke any Designation of a Subsidiary
as an Unrestricted Subsidiary (a "Revocation"); 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 Revocation and (ii) all Liens and Debt of such
Unrestricted Subsidiary outstanding immediately after such Revocation 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.

         (c) Any such Designation or Revocation by the Board of Directors after
the Closing Date shall be evidenced to the Trustee by promptly filing with the
Trustee a copy of the resolution of the Board of Directors giving effect to such
Designation or Revocation and an Officers' Certificate certifying that such
Designation or Revocation complied with the foregoing provisions.

         SECTION 4.11. Liens. The Company shall not, and shall not permit any of
its Restricted Subsidiaries to, create, incur, assume or otherwise cause or
suffer to exist or become effective any Lien of any kind securing Debt or trade
payables (other than Permitted Liens) upon any of their property or assets, now
owned or hereafter acquired, unless all payments due under this Indenture and
the Securities are secured on an equal and ratable basis with the obligations so
secured until such time as such obligations are no longer secured by a Lien,
provided that (i) if such other Debt constitutes Subordinated Debt or is
otherwise subordinate or junior in right of payment to the Obligations under
this Indenture, the Securities or the relevant Security Guarantee, as the case
may be, such Lien is expressly made prior and senior in priority to the Lien
securing such other Debt or (ii) in any other case, such Lien ranks equally and
ratably with the Lien securing the other Debt or obligations so secured.

         SECTION 4.12. Additional Security Guarantees. All current and future
Subsidiaries of the Company other than Foreign Subsidiaries, Receivables
Subsidiaries and Subsidiaries that have been properly designated as Unrestricted
Subsidiaries in accordance with this Indenture for so long as they continue to
constitute Unrestricted Subsidiaries, will be Guarantors in accordance with the
terms of this Indenture to the extent such Subsidiaries are guarantors or are
otherwise obligors under any Credit Facility incurred under Section 4.03(b)(i).
Notwithstanding the foregoing, if any Foreign Subsidiary that is a Restricted
Subsidiary shall Guarantee any Debt of the Company or any Domestic Subsidiary
while the Securities are outstanding, then such Foreign Subsidiary shall become
a Guarantor under this Indenture and shall execute a Security Guarantee in
accordance with Article XI herein.

         SECTION 4.13. Business Activities. The Company shall not, and shall not
permit any Restricted Subsidiary to, engage in any business other than Permitted
Businesses, except to such extent as is not material to the Company and its
Restricted Subsidiaries taken as a whole.

         SECTION 4.14. No Senior Subordinated Debt. The Company shall not incur
any Debt that is expressly subordinate in right of payment to any Senior Debt
and senior in any respect in right of payment to the Securities. No Guarantor
shall incur any Debt that is expressly subordinate in right of payment to any
Senior Debt and senior in any respect in right of payment to the Security
Guarantee of such Guarantor.

                                       51
<PAGE>

         SECTION 4.15. Corporate Existence. Except as otherwise permitted by
Article V, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the
corporate, partnership or other existence of each of its Restricted Subsidiaries
in accordance with the respective organizational documents of each such
Restricted Subsidiary and the rights (charter and statutory) and material
franchises of each of its Restricted Subsidiaries; provided, however, that the
Company shall not be required to preserve any such right, franchise or corporate
existence with respect to each such Restricted Subsidiary if the Board of
Directors of the Company shall determine that the loss thereof would not,
individually or in the aggregate, have a material adverse effect on the
business, financial condition or results of operations of the Company and its
Restricted Subsidiaries taken as a whole.

                                    ARTICLE V

                                Successor Company
                                -----------------

         SECTION 5.01. Merger, Consolidation or Sale of All or Substantially All
Assets of the Company. The Company shall not consolidate or merge with or into
(whether or not the Company is the surviving corporation), or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions, to another Person
unless:

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

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

                  (iii) immediately before and immediately after giving effect
         to such transaction (including giving effect to any Debt being incurred
         in connection in with the transaction) no Default or Event of Default
         exists; and

                  (iv) except in the case of a merger of the Company with or
         into a Wholly Owned Restricted Subsidiary of the Company, the Company
         or the Person formed by or surviving any such consolidation or merger
         (if other than the Company), or to which such sale, assignment,
         transfer, lease, conveyance or other disposition shall have been made
         will, at the time of such transaction and after giving pro forma effect
         thereto as if such transaction had occurred at the beginning of the
         applicable four-quarter period, either (x) be permitted to incur at
         least $1.00 of additional Debt pursuant to the Coverage Ratio Exception
         or (y) have a Consolidated Coverage Ratio at least equal to the
         Consolidated Coverage Ratio of the Company for such four-quarter
         reference period.

                                       52
<PAGE>

         Notwithstanding clauses (iii) and (iv) above, (a) any Restricted
Subsidiary may consolidate with, merge into or transfer all or part of its
properties and assets to the Company, and (b) the Company may merge with an
Affiliate incorporated solely for the purpose of reincorporating the Company in
another jurisdiction.

         For purposes of the foregoing, the transfer (by lease, assignment, sale
or otherwise, in a single transaction or series of related transactions) of all
or substantially all of the properties and assets of one or more Restricted
Subsidiaries of the Company, the Capital Stock of which constitutes all or
substantially all of the assets and properties of the Company (determined on a
consolidated basis for the Company and its Subsidiaries), shall be deemed to be
the transfer of all or substantially all of the properties and assets of the
Company.

         Upon any consolidation or merger in which the Company is not the
continuing corporation, or any transfer of all or substantially all of the
assets of the Company in each case in accordance with the foregoing, the
surviving corporation or the Person formed by or surviving any such
consolidation or merger shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under the Notes, this Indenture
and the Registration Rights Agreement with the same effect as if such surviving
corporation or the Person formed by or surviving any such merger or
consolidation had been named as such.

         This Section 5.01 shall not apply to the merger of Saturn Acquisition
Corporation with and into the Company on the Closing Date.

         SECTION 5.02. Merger, Consolidation or Sale of All or Substantially All
Assets of a Guarantor. No Guarantor may consolidate with or merge with or into
(whether or not such Guarantor is the surviving Person) another Person (other
than the Company or another Guarantor) unless:

                  (i) subject to the provisions of the following paragraph, the
         Person formed by or surviving any such consolidation or merger (if
         other than such Guarantor) assumes all the obligations of such
         Guarantor under the Security Guarantee of such Guarantor, the Indenture
         and any Registration Rights Agreement pursuant to a supplemental
         indenture reasonably satisfactory to the Trustee; and

                  (ii) immediately after giving effect to such transaction, no
         Default or Event of Default exists.

         Notwithstanding the foregoing clause (ii) above, (a) any Restricted
Subsidiary may consolidate with, merge into or transfer all or part of its
properties and assets to any Guarantor and (b) any Guarantor may merge with an
Affiliate incorporated solely for the purpose of reincorporating such Guarantor
in another jurisdiction.

         Upon any consolidation or merger in which a Guarantor is not the
continuing corporation in accordance with the foregoing, the surviving
corporation or the Person formed by or surviving any such consolidation or
merger (if other than such Guarantor) shall succeed to, and be substituted for,
and may exercise every right and power of, such Guarantor under its Guarantee,
this Indenture and the Registration Rights Agreement with the same effect as if
such surviving

                                       53
<PAGE>

corporation or the Person formed by or surviving any such consolidation or
merger (if other than such Guarantor) had been named as such.

                                   ARTICLE VI

                              Defaults and Remedies
                              ---------------------

         SECTION 6.01. Events of Default and Remedies.

         (a) An "Event of Default" occurs if:

                  (1) default for 30 days in the payment when due of interest
         on, or Liquidated Damages with respect to, the Securities (whether or
         not prohibited by Article X herein);

                  (2) default in payment when due of the principal of or
         premium, if any, on the Securities (including the failure to make a
         payment to purchase Securities tendered pursuant to a Change of Control
         Offer or an Asset Sale Offer) (whether or not prohibited by Article X
         herein);

                  (3) failure by the Company for 30 days after receipt of notice
         from the Trustee or the holders of at least 25% in principal amount of
         the then outstanding Securities to comply with Section 4.03, 4.04,
         4.06, 4.08 or 5.01;

                  (4) failure by the Company for 60 days after receipt of notice
         from the Trustee or the holders of at least 25% in principal amount of
         the then outstanding Securities specifying such failure to comply with
         any of its other agreements in this Indenture or the Securities;

                  (5) the failure by the Company or any Restricted Subsidiary
         that is a Significant Subsidiary to pay any Debt within any applicable
         grace period after final maturity or acceleration by the holders
         thereof because of a default if the total amount of all such Debt
         unpaid or accelerated at the time exceeds $25.0 million;

                  (6) any judgment or decree for the payment of money in excess
         of $25.0 million (net of any insurance or indemnity payments actually
         received in respect thereof prior to or within 60 days from the entry
         thereof, or to be received in respect thereof in the event any appeal
         thereof shall be unsuccessful) is entered against the Company or any
         Significant Subsidiary that is a Restricted Subsidiary and is not
         discharged, waived or stayed and either (A) an enforcement proceeding
         has been commenced by any creditor upon such judgment or decree or (B)
         there is a period of 60 days following the entry of such judgment or
         decree during which such judgment or decree is not discharged, waived
         or the execution thereof stayed;

                  (7) any Security Guarantee by a Guarantor that is a
         Significant Subsidiary shall be held in any judicial proceeding to be
         unenforceable or invalid or, except as permitted by this Indenture,
         shall cease for any reason to be in full force and effect or any

                                       54
<PAGE>

         Guarantor, or any Person acting on behalf of any Guarantor, shall deny
         or disaffirm its obligations under its Security Guarantee;

                  (8) the Company or any Restricted Subsidiary that is a
         Significant Subsidiary pursuant to or within the meaning of any
         Bankruptcy Law:

                           (A) commences a voluntary case;

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

                           (C) consents to the appointment of a Custodian of it
                  or for any substantial part of its property;

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

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

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

                           (A) is for relief against the Company or any
                  Restricted Subsidiary that is a Significant Subsidiary in an
                  involuntary case;

                           (B) appoints a Custodian of the Company or any
                  Restricted Subsidiary that is a Significant Subsidiary or for
                  any substantial part of its property; or

                           (C) orders the winding up or liquidation of the
                  Company or any Restricted Subsidiary that is a Significant
                  Subsidiary;

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

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

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

         A Default under clause (3) or (4) is not an Event of Default until the
Trustee or the Holders of at least 25% in aggregate principal amount of the
outstanding Securities notify the Company in writing by registered or certified
mail, return receipt requested, of the Default and the Company does not cure
such Default within the time specified in clauses (3) and (4) after

                                       55
<PAGE>

receipt of such notice. Such notice must specify the Default, demand that it be
remedied and state that such notice is a "Notice of Default."

         SECTION 6.02. Acceleration.

         (a) If an Event of Default (other than an Event of Default specified in
Section 6.01(a)(8) or (9) with respect to the Company) occurs and is continuing,
the Trustee by notice to the Company in writing, or the Holders of at least 25%
in aggregate principal amount of the outstanding Securities by notice in writing
to the Company, may declare the principal of and accrued but unpaid interest on
all the Securities to be due and payable. Upon such a declaration, such
principal and interest shall be due and payable immediately. Notwithstanding the
foregoing, if an Event of Default specified in Section 6.01(a)(8) or (9) occurs,
the principal of and interest on all the Securities shall ipso facto become and
be immediately due and payable without any declaration or other act on the part
of the Trustee or any Securityholders.

         (b) At any time after a declaration of acceleration with respect to the
Securities as described in Section 6.02(a), the Holders of a majority in
aggregate principal amount of the Securities may rescind and cancel such
declaration and its consequences: (i) if the rescission would not conflict with
any judgment or decree; (ii) if all existing Events of Default have been cured
or waived except nonpayment of principal or interest that has become due solely
because of the acceleration; (iii) to the extent the payment of such interest is
lawful, interest on overdue installments of interest and overdue principal,
which has become due otherwise than by such declaration of acceleration, has
been paid; and (iv) if the Company has paid the Trustee its reasonable
compensation and reimbursed the Trustee for its expenses, disbursements and
advances. No such rescission shall affect any subsequent Default or impair any
right consequent thereto.

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

         The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Securityholder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative (to the
extent permitted by law).

         SECTION 6.04. Waiver of Past Defaults. The Holders of a majority in
aggregate principal amount of the Securities then outstanding by written notice
to the Trustee may on behalf of the Holders of all of the Securities waive any
existing Default or Event of Default and its consequences under this Indenture
except a continuing Default or Event of Default in the payment of interest on,
or the principal of or premium on, the Securities. When a Default is waived, it
is deemed cured and ceases to exist and any Event of Default arising therefrom
shall be deemed to have been cured and waived for every purpose under this
Indenture, but no such waiver shall extend to any subsequent or other Default or
Event of Default or impair any consequent right.

                                       56
<PAGE>

         SECTION 6.05. Control by Majority. The Holders of a majority in
aggregate principal amount of the Securities may direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee by this Indenture.
However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture or, subject to Section 7.01, that the Trustee determines is
unduly prejudicial to the rights of other Securityholders or would involve the
Trustee in personal liability; provided, however, that the Trustee may take any
other action deemed proper by the Trustee that is not inconsistent with such
direction. Prior to taking any action hereunder, the Trustee shall be entitled
to indemnification satisfactory to it in its sole discretion against all losses
and expenses caused by taking or not taking such action.

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

                  (1) such Holder has previously given the Trustee notice that
         an Event of Default is continuing;

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

                  (3) such Holders have offered the Trustee security or
         indemnity reasonably satisfactory to it against any loss, liability or
         expense;

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

                  (5) the Holders of a majority in aggregate principal amount of
         the outstanding Securities have not given the Trustee a direction
         inconsistent with such request within such 60-day period.

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

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

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

                                       57
<PAGE>

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

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

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

                  SECOND: to the holders of Senior Debt to the extent required
         by Article X;

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

                  FOURTH: to the Company.

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

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

         SECTION 6.12. Waiver of Stay or Extension Laws. Neither the Company nor
any Guarantor (to the extent they may lawfully do so) shall at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this
Indenture; and the Company and each Guarantor (to the extent that they may
lawfully do so) hereby expressly waive all benefit or advantage of any such law,
and shall not

                                       58
<PAGE>

hinder, delay or impede the execution of any power herein granted to the
Trustee, but shall suffer and permit the execution of every such power as though
no such law had been enacted.

                                   ARTICLE VII

                                     Trustee
                                     -------

         SECTION 7.01. Duties of Trustee.

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

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

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

                  (2) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, in the case of any such certificates or
         opinions which by any provision hereof are specifically required to be
         furnished to the Trustee, the Trustee shall examine the certificates
         and opinions to determine whether or not they conform to the
         requirements of this Indenture.

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

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

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

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

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

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

                                       59
<PAGE>

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

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

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

         SECTION 7.02. Rights of Trustee. Subject to Section 7.01:

         (a) The Trustee may conclusively rely, and shall be protected in acting
or refraining from acting, upon any document believed by it to be genuine and to
have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in any such document.

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

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

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

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

         (f) 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, consent, order, approval, bond, debenture,
note or other paper or document unless requested in writing to do so by the
Holders of not less than a majority in principal amount of the Securities at the
time outstanding, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney at the sole cost of the Company and shall
incur no liability or additional liability of any kind by reason of such inquiry
or investigation.

                                       60
<PAGE>

         (g) The Trustee shall not be required to give any note, bond or surety
in respect of the execution of the trusts and powers under this Indenture.

         (h) The permissive rights of the Trustee to take any action enumerated
in this Indenture shall not be construed as a duty to take such action.

         (i) The Trustee shall not be deemed to have notice of any Default or
Event of Default unless a Trust Officer has actual knowledge thereof or unless a
Trust Officer receives written notice thereof at its Corporate Trust Office
specified in Section 13.02, from the Company or a Holder that such Default or
Event of Default has occurred, and such notice references the Securities and
this Indenture.

         (j) The rights, privileges, protections, immunities and benefits given
to the Trustee, including 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.

         (k) The Trustee may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers' Certificate may be signed by any 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 Securities
and may otherwise deal with the Company or its Affiliates with the same rights
it would have if it were not Trustee. Any Paying Agent, Registrar, co-registrar
or co-paying agent may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11.

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

         SECTION 7.05. Notice of Defaults. If a Default occurs and is continuing
and is known to the Trustee, the Trustee shall mail to each Holder notice of the
Default within the earlier of 90 days after it occurs or 30 days after it is
known to a Trust Officer or written notice of it is received by the Trustee.
Except in the case of a Default in the payment of principal of, premium, if any,
interest or Liquidated Damages on any Security, the Trustee may withhold notice
if and so long as a committee of its trust officers in good faith determines
that withholding notice is in the interests of Securityholders. If a Default
occurs and is continuing and a Senior Officer of the Company has actual
knowledge of such Default, the Company shall deliver to the Trustee written
notice of such Default, which notice shall include the status of such Default
and any action being taken or proposed to be taken by the Company with respect
thereto. Notwithstanding anything to the contrary expressed in this Indenture,
the Trustee shall not be

                                       61
<PAGE>

deemed to have knowledge of any Default or Event of Default hereunder, except in
the case of an Event of Default under Section 6.01(a)(1) or (2) hereof (provided
that the Trustee is Paying Agent), unless and until a Trust Officer receives
written notice thereof at its Corporate Trust Office specified in Section 13.02,
from the Company or a Holder that such Default or Event of Default has occurred.

         SECTION 7.06. Reports by Trustee to Holders. The Trustee shall transmit
to the Holders such reports concerning the Trustee and its actions under this
Indenture as may be required pursuant to the TIA at the times and in the manner
provided pursuant thereto. To the extent that any such report is required by the
TIA with respect to any 12-month period, such report shall cover the 12-month
period ending May 15 and shall be transmitted by the next succeeding July 15.

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

         SECTION 7.07. Compensation and Indemnity. The Company shall pay to the
Trustee from time to time such compensation as is agreed to in writing by the
Trustee and Company for the Trustee's services hereunder. The Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket disbursements, advances and expenses incurred or made
by it, including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and
experts. The Company and each Guarantor, jointly but not severally, shall
indemnify the Trustee and its officers, directors, shareholders, agents and
employees (each, an "Indemnified Party") for and hold each Indemnified Party
harmless against any and all loss, damage, claims, liability or expense
(including reasonable attorneys' fees and expenses) including taxes (other than
taxes based upon, measured by or determined by the income of the Trustee)
incurred by them without negligence or bad faith on their part arising out of or
in connection with the acceptance or administration of this Indenture or the
Securities and the performance of their duties hereunder, including the cost and
expense of enforcing this Indenture against the Company (including this Section
7.07), and defending itself against any claim (whether asserted by a Holder or
any other person) The Trustee and its officers, directors, shareholders, agents
and employees in its capacity as Paying Agent, Registrar, Custodian and agent
for service of notice and demands shall have the full benefit of the foregoing
indemnity as well as all other benefits, rights and privileges accorded to the
Trustee in this Indenture when acting in such other capacity. The Trustee shall
notify the Company of any claim for which it may seek indemnity promptly upon
obtaining actual knowledge thereof; provided that any failure so to notify the
Company shall not relieve the Company or any Guarantor of its indemnity
obligations hereunder. The Company shall defend the claim and the Indemnified
Party shall provide reasonable cooperation at the Company's expense in the
defense. Such Indemnified Parties may have separate counsel and the Company
shall pay the fees and expenses of such counsel; provided that the Company shall
not be required to pay such fees and expenses if it assumes such Indemnified
Parties' defense and, in such Indemnified Parties' reasonable judgment, there is
no conflict of interest between the Company and such parties in

                                       62
<PAGE>

connection with such defense. The Company need not reimburse any expense or
indemnify against any loss, liability or expense incurred by an Indemnified
Party through such party's own willful misconduct, negligence or bad faith. The
Company need not pay any settlement made without its consent (which consent
shall not be unreasonably withheld).

         To secure the Company's payment obligations in this Section and all
other obligations to the Trustee pursuant to this Indenture, including all fees,
expenses, and rights to indemnification, the Trustee shall have a lien on all
money or property held or collected by the Trustee other than money or property
held in trust to pay principal of and interest and any Liquidated Damages on
particular Securities. Such lien shall survive the satisfaction and discharge of
this Indenture and the resignation or removal of the Trustee. The Trustee's
right to receive payment of any amounts due under this Indenture shall not be
subordinated to any other Debt of the Company and the Securities shall be
subordinate to the Trustee's rights to receive such payment.

         The Company's payment obligations pursuant to this Section shall
survive the satisfaction or discharge of this Indenture, any rejection or
termination of this Indenture under any Bankruptcy Law or the resignation or
removal of the Trustee. When the Trustee incurs expenses after the occurrence of
a Default specified in Section 6.01(a)(8) or (9) with respect to the Company,
the expenses are intended to constitute expenses of administration under the
Bankruptcy Law.

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

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

                  (2) the Trustee is adjudged bankrupt or insolvent;

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

                  (4) the Trustee otherwise becomes incapable of acting.

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

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

                                       63
<PAGE>

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

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

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

         SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee, provided, that such Person shall be
qualified and eligible under this Article VII.

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

         SECTION 7.10. Eligibility; Disqualification. The Trustee shall at all
times satisfy the requirements of TIA ss. 310(a). The Trustee shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
ss. 310(b); provided, however, that there shall be excluded from the operation
of TIA ss. 310(b)(1) any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Company are
outstanding if the requirements for such exclusion set forth in TIA ss.
310(b)(1) are met.

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

                                       64
<PAGE>

                                  ARTICLE VIII

                       Discharge of Indenture; Defeasance
                       ----------------------------------

         SECTION 8.01. Legal Defeasance and Covenant Defeasance.

         (a) The Company may, at the option of its Board of Directors evidenced
by a resolution set forth in an Officers' Certificate, at any time, elect to
have either Section 8.01(b) or 8.01(c) hereof be applied to all outstanding
Securities upon compliance with the conditions set forth below in this Article
VIII.

         (b) Upon the Company's exercise under Section 8.01(a) hereof of the
option applicable to this Section 8.01(b), the Company and each Guarantor shall,
subject to the satisfaction of the conditions set forth in Section 8.02 hereof,
be deemed to have been discharged from their obligations with respect to all
outstanding Securities and any Security Guarantee on the date the conditions set
forth below are satisfied (hereinafter, "Legal Defeasance"). For this purpose,
Legal Defeasance means that the Company and each Guarantor shall be deemed to
have paid and discharged the entire Debt represented by the outstanding
Securities and any Security Guarantee, which Securities and Security Guarantees
shall thereafter be deemed to be "outstanding" only for the purposes of Section
8.03 hereof and the other Sections of this Indenture referred to in (i) and (ii)
below, and to have satisfied all their other obligations under such Securities
and this Indenture (and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following provisions which shall survive until otherwise terminated or
discharged hereunder: (i) the rights of Holders of outstanding Securities to
receive solely from the trust fund described in Article VIII hereof, as more
fully set forth in such Article, payments in respect of the principal of,
premium, if any, and interest and Liquidated Damages, if any, on such Securities
when such payments are due, (ii) the Company's obligations with respect to the
Securities under Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.09, 7.07 and 7.08,
which shall survive until the Securities have been paid in full (thereafter, the
Company's obligations in Section 7.07 shall survive), and (iii) this Article
VIII. Subject to compliance with this Article VIII, the Company may exercise its
option under this Section 8.01(b) notwithstanding the prior exercise of its
option under Section 8.01(c) hereof.

         (c) Upon the Company's exercise under Section 8.01(a) hereof of the
option applicable to this Section 8.01(c), the Company and each Guarantor shall,
subject to the satisfaction of the conditions set forth in Section 8.02 hereof,
be released from their obligations under Sections 4.02, 4.03, 4.04, 4.05, 4.06,
4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15 (with respect to Restricted
Subsidiaries only) and 5.01(iv) hereof with respect to the outstanding
Securities on and after the date the conditions set forth below are satisfied
(hereinafter, "Covenant Defeasance"), and the Securities shall thereafter be
deemed not "outstanding" for the purposes of any direction, waiver, consent or
declaration of act of Holders (and the consequences of any thereof) in
connection with such Sections, but shall continue to be deemed "outstanding" for
all the other purposes hereunder (it being understood that such Securities and
the related Security Guarantees shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect of any
term, condition or limitation set forth in any such Section, whether directly or
indirectly, by reason of any reference elsewhere herein to

                                       65
<PAGE>

any such Section or by reason of any reference in any such Section to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 6.01 hereof, but,
except as specified above, the remainder of this Indenture and such Securities
shall be unaffected thereby. In addition, upon the Company's exercise under
Section 8.01(a) hereof of the option applicable to this Section 8.01(c) hereof,
subject to the satisfaction of the conditions set forth in Section 8.02,
Sections 6.01(3), 6.01(4) (with respect to compliance with Sections 4.02, 4.05,
4.07, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14 and 4.15 (with respect to Restricted
Subsidiaries only)), 6.01(5), 6.01(6), 6.01(7), 6.01(8) (with respect to
Subsidiaries of the Company only) or Section 6.01(9) (with respect to the
Subsidiaries of the Company only) shall not constitute Events of Default.

         SECTION 8.02. Conditions to Legal or Covenant Defeasance. The following
shall be the conditions to the application of either Section 8.01(b) or 8.01(c)
hereof to the outstanding Securities:

         In order to exercise either Legal Defeasance or Covenant Defeasance:

         (a) the Company must irrevocably deposit with the Trustee, in trust,
for the benefit of the Holders, cash in United States dollars, Government Notes,
or a combination thereof, in such amounts as will be sufficient (without
reinvestment), in the opinion of a nationally recognized firm of independent
public accountants, to pay the principal of, premium, if any, and interest and
Liquidated Damages on the outstanding Securities on the Stated Maturity or on
the applicable redemption date, as the case may be, and the Company must specify
whether the Securities are being defeased to maturity or to a particular
redemption date;

         (b) in the case of an election under Section 8.01(b) hereof, the
Company shall have delivered to the Trustee an Opinion of Counsel in the United
States reasonably acceptable to the Trustee confirming that (A) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling or (B) since the date hereof, there has been a change in the applicable
federal income tax law, in either case to the effect that, and based thereon
such Opinion of Counsel shall confirm that, subject to customary assumptions and
exclusions, the Holders of the outstanding Securities will not recognize income,
gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

         (c) in the case of an election under Section 8.01(c) hereof, the
Company shall have delivered to the Trustee an Opinion of Counsel in the United
States, reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions, the Holders of the outstanding Securities
will not recognize income, gain or loss for federal income tax purposes as a
result of such Covenant Defeasance and will be subject to federal income tax on
the same amounts, in the same manner and at the same times as would have been
the case if such Covenant Defeasance had not occurred;

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

                                       66
<PAGE>

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

         (f) the Company shall have delivered to the Trustee an Opinion of
Counsel, subject to customary assumptions and exclusions, to the effect that
after the 91st day following the deposit pursuant to Section 8.02(a), the trust
funds will not be part of any "estate" formed by the bankruptcy or
reorganization of the Company or subject to the "automatic stay" under the
Bankruptcy Law, or in the case of a Covenant Defeasance, will be subject to a
first priority Lien in favor of the Trustee for the benefit of the Holders;

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

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

         SECTION 8.03. Deposited Money and Government Securities to be Held in
Trust; Other Miscellaneous Provisions. Subject to Section 8.04 hereof, all money
and Government Notes (including the proceeds thereof) deposited with the Trustee
(or other qualifying trustee, collectively for purposes of this Section 8.03,
the "Trustee") pursuant to Section 8.02 hereof in respect of the outstanding
Securities shall be held in trust and applied by the Trustee, in accordance with
the provisions of such Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as Paying
Agent) as the Trustee may determine, to the Holders of such Securities of all
sums due and to become due thereon in respect of principal, premium, if any, and
interest, but such money need not be segregated from other funds except to the
extent required by law.

         Anything in this Article VIII to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon the request
of the Company any money or Government Notes held by it as provided in Section
8.02 hereof which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 8.02(a) hereof), are
in excess of the amount thereof that would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance.

         SECTION 8.04. Repayment to Company. Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium and Liquidated Damages, if any, or interest
on any Security and remaining unclaimed for two years after such principal,
premium and Liquidated Damages, if any, or interest has become due and payable
shall be paid to the Company on its request or (if then held by the

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<PAGE>

Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company, cause to be published once, in the New York Times
(national edition) and the Wall Street Journal (national edition), notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such notification or
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

         SECTION 8.05. Reinstatement. If the Trustee or Paying Agent is unable
to apply any United States dollars or Government Notes in accordance with this
Article VIII by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then
the Company's obligations under this Indenture and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to this
Article VIII until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance with this Article VIII; provided, however,
that, if the Company or any Guarantor makes any payment of principal of, premium
and Liquidated Damages, if any, or interest on any Security following the
reinstatement of its obligations, the Company or any Guarantor, as the case may
be, shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the money held by the Trustee or Paying Agent.

         SECTION 8.06. Satisfaction and Discharge of Indenture. Upon the request
of the Company, this Indenture will cease to be of further effect (except as to
surviving rights of registration of transfer or exchange of the Securities, as
expressly provided for herein or pursuant hereto), the Company and the
Guarantors will be discharged from their obligations under the Securities and
the Security Guarantees, and the Trustee, at the expense of the Company, will
execute proper instruments acknowledging satisfaction and discharge of the
Indenture, the Security Guarantees, any Registration Rights Agreement and the
Securities when:

         (a) either (i) all the Securities theretofore authenticated and
delivered (other than mutilated, destroyed, lost or stolen Securities that have
been replaced or paid and Securities that have been subject to defeasance under
this Article VIII) have been delivered to the Trustee for cancellation or (ii)
all Securities not theretofore delivered to the Trustee for cancellation (A)
have become due and payable, (B) will become due and payable at maturity within
one year or (C) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company, and the Company,
in the case of (A), (B) or (C) above, has irrevocably deposited or caused to be
deposited with the Trustee funds in trust for such purpose in an amount
sufficient to pay and discharge the entire Debt on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and
premium, if any, on) and interest on the Securities to the date of such deposit
(in the case of Securities that have become due and payable) or to the Stated
Maturity or redemption date, as the case may be;

         (b) the Company has paid or caused to be paid all sums payable under
this Indenture by the Company; and

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<PAGE>

         (c) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent provided
in this Indenture relating to the satisfaction and discharge of this Indenture,
the Security Guarantees, the security agreements relating thereto and the
Securities have been complied with.

         Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.07 and, if money shall
have been deposited with the Trustee pursuant to clause (a)(ii) of this Section,
the obligations of the Trustee under Section 8.03 and Section 2.04 shall
survive.

                                   ARTICLE IX

                                   Amendments
                                   ----------

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

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

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

                  (3) to provide for the assumption of the Company's or any
         Guarantor's obligations to Holders of Securities in the case of a
         merger, consolidation or sale of assets;

                  (4) to release any Security Guarantee in accordance with the
         provisions of this Indenture;

                  (5) to provide for additional Guarantors;

                  (6) to make any change that would provide any additional
         rights or benefits to the Holders of Securities or that, as determined
         by the Board of Directors of the Company in good faith, does not
         adversely affect the legal rights of any such Holder under this
         Indenture, the Securities or the Security Guarantees;

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

                  (8) to make any change to Article II, Section 4.01 or the
         Exhibits hereto that applies only to Additional Securities (other than
         a change relating to other provisions of this Indenture incorporated or
         referenced in Article II, Section 4.01 or any such Exhibit).

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<PAGE>

         An amendment under this Section may not make any change that adversely
affects the rights under Article X of any holder of Senior Debt then outstanding
unless the holders of such Senior Debt (or any group or representative thereof
authorized to give a consent) consent to such change.

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

         SECTION 9.02. With Consent of Holders. The Company, the Guarantors and
the Trustee may amend or supplement this Indenture, the Securities or the
Security Guarantees without notice to any Securityholder but with the written
consent of the Holders of at least a majority in principal amount of the
Securities then outstanding (including consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Securities), and any
existing default or compliance with any provisions of this Indenture, the
Securities or the Security Guarantees may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Securities
(including consents obtained in connection with a tender offer or exchange offer
for Securities. Notwithstanding the foregoing, without the consent of each
Securityholder affected, an amendment or waiver may not (with respect to any
Securities held by a non-consenting Holder):

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

                  (ii) reduce the principal of or change the fixed maturity of
         any Security, reduce any premium payable upon optional redemption of
         the Securities or otherwise alter the provisions with respect to the
         redemption of the Securities (other than provisions relating to
         Sections 4.06, 4.08 and 3.09);

                  (iii) reduce the rate of or change the time for payment of
         interest on any Security;

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

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

                  (vi) impair the rights of Holders of Securities to receive
         payments of principal of or premium, if any, or interest or Liquidated
         Damages on the Securities;

                  (vii) modify or change any provision of this Indenture, or the
         related definitions, affecting the subordination or ranking of the
         Securities or the Security Guarantees in a manner which adversely
         affect the Holders of Securities;

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<PAGE>

                  (viii) make any change in the foregoing amendment or waiver
         provisions; or

                  (ix) except as permitted by this Indenture, release any
         Security Guarantee.

         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, but it
shall be sufficient if such consent approves the substance thereof.

         An amendment under this Section may not make any change that adversely
affects the rights under Article X of any holder of Senior Debt then outstanding
unless the holders of such Senior Debt (or any group or representative thereof
authorized to give a consent) consent to such change.

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

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

         SECTION 9.04. Revocation and Effect of Consents and Waivers. A consent
to an amendment or a waiver by a Holder of a Security shall bind the Holder and
every subsequent Holder of that Security or portion of the Security that
evidences the same debt as the consenting Holder's Security, even if notation of
the consent or waiver is not made on the Security. However, any such Holder or
subsequent Holder may revoke the consent or waiver as to such Holder's Security
or portion of the Security if the Trustee receives written notice of revocation
before the date the amendment or waiver becomes effective. After an amendment or
waiver becomes effective, it shall bind every Securityholder. Except if
otherwise specified in such amendment or waiver, an amendment or waiver becomes
effective once the requisite number of consents are received by the Company or
the Trustee.

         The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Securityholders entitled to give their consent or
take any other action described above or required or permitted to be taken
pursuant to this Indenture. If a record date is fixed, then notwithstanding the
immediately preceding paragraph, those Persons who were Securityholders at such
record date (or their duly designated proxies), and only those Persons, shall be
entitled to give such consent or to revoke any consent previously given or to
take any such action, whether or not such Persons continue to be Holders after
such record date.

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

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<PAGE>

         SECTION 9.06. Trustee to Sign Amendments. The Trustee shall sign any
amendment authorized pursuant to this Article IX if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may but need not sign it. In signing such amendment the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it and
to receive, and (subject to Section 7.01) shall be fully protected in relying
upon, an Officers' Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture that such amendment is
the legal, valid and binding obligation of the Company and the Guarantors
enforceable against them in accordance with its terms, subject to customary
exceptions, and complies with the provisions hereof (including Section 9.03).

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

                                    ARTICLE X

                                  Subordination
                                  -------------

         SECTION 10.01. Agreement To Subordinate. The Company agrees, and each
Securityholder by accepting a Security agrees, that the Debt evidenced by the
Securities is subordinated in right of payment, to the extent and in the manner
provided in this Article X, to the prior payment in full in cash or Cash
Equivalents of all existing and future Senior Debt of the Company and that the
subordination is for the benefit of and enforceable by the holders of Senior
Debt of the Company. The Securities shall in all respects rank pari passu with
all other Pari Passu Debt of the Company and only Debt of the Company that is
Senior Debt shall rank senior to the Securities in accordance with the
provisions set forth herein. For purposes of these subordination provisions, the
Debt evidenced by the Securities is deemed to include the Liquidated Damages
payable pursuant to the provisions set forth in the Securities and the
applicable Registration Rights Agreement. All provisions of this Article X shall
be subject to Section 10.12.

         SECTION 10.02. Liquidation, Dissolution, Bankruptcy. Upon any payment
or distribution to creditors of the Company in a liquidation or dissolution of
the Company or in a bankruptcy, reorganization, insolvency, receivership or
similar proceeding relating to the Company or its property, an assignment for
the benefit of creditors or any marshaling of the Company's assets and
liabilities, the holders of Senior Debt of the Company shall be entitled to
receive payment in full, in cash or Cash Equivalents, of all Obligations due in
respect of such Senior Debt (including interest after the commencement of any
such proceeding at the rate specified in the applicable Senior Debt, whether or
not allowed or allowable in such proceeding) before the Holders of Securities
will be entitled to receive any payment with respect to the Securities, and
until all Obligations with respect to such Senior Debt are paid in full, in cash
or Cash Equivalents, any payment or distribution to which the Holders of
Securities would be entitled shall be made to the holders of such Senior Debt
(except that Holders of Securities may

                                       72
<PAGE>

receive and retain (i) Permitted Junior Securities and (ii) payments made from
the trust described in Article VIII so long as, on the date or dates the
respective amounts were paid into the trust, such payments were made with
respect to the Securities without violating this Article X).

         SECTION 10.03. Default on Senior Debt. The Company shall not make any
payment or distribution upon or in respect of the Securities (except from the
trust described in Article VIII) if (i) a default in the payment of any
Designated Senior Debt of the Company occurs and is continuing beyond any
applicable grace period (a "payment default") or any other default on Designated
Senior Debt of the Company occurs and the maturity of such Designated Senior
Debt is accelerated in accordance with its terms or (ii) a default, other than a
payment default, occurs and is continuing with respect to Designated Senior Debt
of the Company that permits holders of the Designated Senior Debt of the Company
as to which such default relates to accelerate its maturity (a "non-payment
default") and, in the case of this clause (ii) only, the Trustee receives a
notice of such default (a "Payment Blockage Notice") from the Company, a
Representative for, or the holders of a majority of the outstanding principal
amount of, any such issue of Designated Senior Debt of the Company. Payments on
the Securities may and shall be resumed (a) in the case of a payment default,
upon the date on which such default is cured or waived and, in the case of
Designated Senior Debt of the Company that has been accelerated, such
acceleration has been rescinded, and (b) in case of a non-payment default, the
earlier of (I) the date on which such non-payment default is cured or waived,
(II) 179 days after the date on which the applicable Payment Blockage Notice is
received or (III) the date on which the Trustee receives notice from the
Representative for such Designated Senior Debt of the Company rescinding the
Payment Blockage Notice, unless the maturity of any Designated Senior Debt of
the Company has been accelerated. No new period of payment blockage may be
commenced on account of any non-payment default unless and until 360 days have
elapsed since the initial effectiveness of the immediately prior Payment
Blockage Notice. No non-payment default that existed or was continuing on the
date of delivery of any Payment Blockage Notice to the Trustee shall be, or be
made, the basis for a subsequent Payment Blockage Notice unless such default
shall have been cured or waived for a period of not less than 90 days.

         SECTION 10.04. Acceleration of Payment of Securities. If payment of the
Securities is accelerated because of an Event of Default, the Company shall
promptly notify the Representative of the lenders under the New Credit Facility
of the acceleration. If any Debt under the New Credit Facility is outstanding,
the Company may not make any payment on account of such accelerated Securities
until five Business Days after such holders of such Debt receive notice of such
acceleration and, thereafter, may pay the Securities only if this Article X
otherwise permits payment at that time.

         SECTION 10.05. When Distribution Must Be Paid Over. If a distribution
is made to Securityholders that because of this Article X should not have been
made to them, the Securityholders who receive such distribution shall hold it in
trust for holders of Senior Debt of the Company and pay it over to them as their
interests may appear.

         SECTION 10.06. Subrogation. After all Senior Debt of the Company is
paid in full and until the Securities are paid in full, Securityholders shall be
subrogated to the rights of holders of Senior Debt of the Company to receive
distributions applicable to Senior Debt of the Company. A distribution made
under this Article X to holders of Senior Debt of the Company which

                                       73
<PAGE>

otherwise would have been made to Securityholders is not, as between the Company
and Securityholders, a payment by the Company on Senior Debt of the Company.

         SECTION 10.07. Relative Rights. This Article X defines the relative
rights of Securityholders and holders of Senior Debt of the Company. Nothing in
this Indenture shall:

                  (1) impair, as between the Company and Security holders, the
         obligation of the Company, which is absolute and unconditional, to pay
         principal of and interest on the Securities in accordance with their
         terms; or

                  (2) prevent the Trustee or any Securityholder from exercising
         its available remedies upon a Default, subject to the rights of holders
         of Senior Debt of the Company to receive distributions otherwise
         payable to Securityholders.

         SECTION 10.08. Subordination May Not Be Impaired by Company. No right
of any holder of Senior Debt of the Company to enforce the subordination of the
Debt evidenced by the Securities shall be impaired by any act or failure to act
by the Company or by its failure to comply with this Indenture.

         SECTION 10.09. Rights of Trustee and Paying Agent. Notwithstanding
Section 10.03, the Trustee or Paying Agent may continue to make payments on the
Securities and shall not be charged with knowledge of the existence of facts
that would prohibit the making of any such payments unless, not less than three
Business Days prior to the date of such payment, a Trust Officer of the Trustee
receives written notice satisfactory to it that payments may not be made under
this Article X. The Company, the Registrar or co-registrar, the Paying Agent, a
Representative or a holder of Senior Debt of the Company may give the notice;
provided, however, that, if an issue of Senior Debt of the Company has a
Representative, only the Representative may give the notice. The Trustee shall
be entitled to rely on the delivery to it of a written notice by a Person
representing himself or itself to be a holder of any Senior Debt of the Company
(or a Representative of such holder) to establish that such notice has been
given by a holder of such Senior Debt of the Company or Representative thereof.

         The Trustee (or any authenticating agent hereunder) in its individual
or any other capacity may hold Senior Debt of the Company with the same rights
it would have if it were not Trustee (or authenticating agent hereunder). The
Registrar and co-registrar and the Paying Agent may do the same with like
rights. The Trustee (and any authenticating agent hereunder) shall be entitled
to all the rights set forth in this Article X with respect to any Senior Debt of
the Company which may at any time be held by it, to the same extent as any other
holder of Senior Debt of the Company; and nothing in Article VII shall deprive
the Trustee (or any authenticating agent hereunder) of any of its rights as such
holder. Nothing in this Article X shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 7.07.

         SECTION 10.10. Distribution or Notice to Representative. Whenever a
distribution is to be made or a notice given to holders of Senior Debt of the
Company, the distribution may be made and the notice given to their
Representative (if any).

         SECTION 10.11. Article X Not to Prevent Events of Default or Limit
Right to Accelerate. The failure to make a payment pursuant to the Securities by
reason of any provision

                                       74
<PAGE>

in this Article X shall not be construed as preventing the occurrence of a
Default. Nothing in this Article X shall have any effect on the right of the
Securityholders or the Trustee to accelerate the maturity of the Securities.

         SECTION 10.12. Trust Moneys Not Subordinated. Notwithstanding anything
contained herein to the contrary, payments from money or the proceeds of
Government Notes held in trust under Article VIII by the Trustee for the payment
of principal of and interest on the Securities shall not be subordinated to the
prior payment of any Senior Debt or subject to the restrictions set forth in
this Article X, and none of the Securityholders shall be obligated to pay over
any such amount to the Company or any holder of Senior Debt of the Company or
any other creditor of the Company.

         SECTION 10.13. Trustee Entitled To Rely. Upon any payment or
distribution pursuant to this Article X, the Trustee and the Securityholders
shall be entitled to rely (i) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 10.02
are pending, (ii) upon a certificate of the liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or to the
Security holders or (iii) upon the Representative for the holders of Senior Debt
of the Company for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of the Senior Debt of
the Company and other Debt of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article X. In the event that the Trustee
determines, in good faith, that evidence is required with respect to the right
of any Person as a holder of Senior Debt of the Company to participate in any
payment or distribution pursuant to this Article X, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Senior Debt of the Company held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution and
other facts pertinent to the rights of such Person under this Article X, and, if
such evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment. Sections 7.01 and 7.02 shall be applicable to all actions or omissions
of actions by the Trustee pursuant to this Article X.

         SECTION 10.14. Trustee To Effectuate Subordination. Each Securityholder
by accepting a Security authorizes and directs the Trustee on his behalf to take
such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Securityholders and the holders of Senior Debt of the
Company as provided in this Article X and appoints the Trustee as
attorney-in-fact for any and all such purposes.

         SECTION 10.15. Trustee Not Fiduciary for Holders of Senior Debt. With
respect to the holders of Senior Debt of the Company, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article X. The Trustee shall not be deemed to owe
any fiduciary or other duty to the holders of Senior Debt of the Company and
shall not be liable to any such holders if it shall mistakenly pay over or
distribute to Securityholders or the Company or any other Person, money or
assets to which any holders of Senior Debt of the Company shall be entitled by
virtue of this Article X or otherwise.

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<PAGE>

         SECTION 10.16. Reliance by Holders of Senior Debt on Subordination
Provisions. Each Securityholder by accepting a Security acknowledges and agrees
that the foregoing subordination provisions are, and are intended to be, an
inducement and a consideration to each holder of any Senior Debt of the Company,
whether such Senior Debt was created or acquired before or after the issuance of
the Securities, to acquire and continue to hold, or to continue to hold, such
Senior Debt and such holder of Senior Debt shall be deemed conclusively to have
relied on such subordination provisions in acquiring and continuing to hold, or
in continuing to hold, such Senior Debt.

         SECTION 10.17. Trustee's Compensation Not Prejudiced. Nothing in this
Article shall apply to amounts due to the Trustee pursuant to other sections of
this Indenture.

         SECTION 10.18. Payments May Be Paid Prior to Dissolution. Nothing
contained in this Article X or elsewhere in this Indenture shall prevent (i) the
Company, except under the conditions described in Sections 10.02 and 10.03, from
making payments at any time for the purpose of making payments of principal of
and interest on the Securities, or from depositing with the Trustee any moneys
for such payments, or (ii) in the absence of actual knowledge by the Trustee
that a given payment would be prohibited by Section 10.02 or 10.03, the
application by the Trustee of any moneys deposited with it for the purpose of
making payments of principal of, and interest on, the Securities to the Holders
entitled thereto unless at least three Business Days prior to the date upon
which such payment would otherwise become due and payable a Trust Officer of the
Trustee shall have received a Payment Blockage Notice provided for in Section
10.03(ii) (provided, that notwithstanding the foregoing, the Holders receiving
any payments made in contravention of Section 10.02 and/or 10.03 (and the
respective payments) shall otherwise be subject to the provisions of Sections
10.02 and 10.03). The Company shall give prompt written notice to the Trustee of
any dissolution, winding-up, liquidation or reorganization of the Company,
although any delay or failure to give any such notice shall have no effect on
the subordination provisions contained herein.

                                   ARTICLE XI

                               Security Guarantees
                               -------------------

         SECTION 11.01. Security Guarantees. Each Guarantor hereby jointly and
severally unconditionally and irrevocably guarantees as a primary obligor and
not merely as a surety, to each Holder and to the Trustee and its successors and
assigns (a) the full and punctual payment of principal of, premium, if any, and
interest and Liquidated Damages, if any, on the Securities when due, whether at
maturity, by acceleration, by redemption or otherwise, subject to any applicable
grace period, and all other monetary obligations of the Company under this
Indenture (including obligations to the Trustee) and the Securities and (b) the
full and punctual performance within applicable grace periods of all other
obligations of the Company whether for expenses, indemnification or otherwise
under this Indenture and the Securities (all of the foregoing being hereinafter
collectively called the "Guaranteed Obligations"). Each Guarantor further agrees
that the Guaranteed Obligations may be extended or renewed, in whole or in part,
without notice or further assent from each such Guarantor, and that each such
Guarantor shall remain bound under this Article XI notwithstanding any extension
or renewal of any Guaranteed Obligation.

                                       76
<PAGE>

         Each Guarantor waives presentation to, demand of, payment from and
protest to the Company of any of the Guaranteed Obligations and also waives
notice of protest for nonpayment. Each Guarantor waives notice of any default
under the Securities or the Guaranteed Obligations. The obligations of each
Guarantor hereunder shall not be affected by (a) the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any right or remedy
against the Company or any other Person under this Indenture, the Securities or
any other agreement or otherwise; (b) any extension or renewal of any Guaranteed
Obligations; (c) any rescission, waiver, amendment or modification of any of the
terms or provisions of this Indenture, the Securities or any other agreement;
(d) the release of any security held by any Holder or the Trustee for the
Guaranteed Obligations or any of them; (e) the failure of any Holder or Trustee
to exercise any right or remedy against any other guarantor of the Guaranteed
Obligations; or (f) any change in the ownership of such Guarantor, except as
provided in Section 11.02(b).

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

         The obligations of each Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of the
Guaranteed Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of each Guarantor herein shall not be discharged or
impaired or otherwise affected by the failure of any Holder or the Trustee to
assert any claim or demand or to enforce any remedy under this Indenture, the
Securities or any other agreement, by any waiver or modification of any thereof,
by any default, failure or delay, willful or otherwise, in the performance of
the Guaranteed Obligations, or by any other act or thing or omission or delay to
do any other act or thing which may or might in any manner or to any extent vary
the risk of any Guarantor or would otherwise operate as a discharge of any
Guarantor as a matter of law or equity.

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

         In furtherance of the foregoing and not in limitation of any other
right which any Holder or the Trustee has at law or in equity against any
Guarantor by virtue hereof, upon the failure of the Company to pay the principal
of or interest, premium or Liquidated Damages, if any, on any Guaranteed
Obligation when and as the same shall become due, whether at maturity, by
acceleration, by redemption or otherwise, or to perform or comply with any other
Guaranteed Obligation, each Guarantor hereby promises to and shall, upon receipt
of written demand by the Trustee, forthwith pay, or cause to be paid, in cash,
to the Holders or the Trustee an amount equal to the sum of (i) the unpaid
principal amount of such Guaranteed Obligations, (ii) accrued

                                       77
<PAGE>

and unpaid interest, premium and Liquidated Damages, if any, on such Guaranteed
Obligations (but only to the extent not prohibited by law) and (iii) all other
monetary Guaranteed Obligations of the Company to the Holders and the Trustee.

         Each Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any Guaranteed Obligations
guaranteed hereby until payment in full of all Guaranteed Obligations. Each
Guarantor further agrees that, as between it, on the one hand, and the Holders
and the Trustee, on the other hand, (x) the maturity of the Guaranteed
Obligations guaranteed hereby may be accelerated as provided in Article VI for
the purposes of any Security Guarantee herein, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Guaranteed Obligations guaranteed hereby, and (y) in the event of any
declaration of acceleration of such Guaranteed Obligations as provided in
Article VI, such Guaranteed Obligations (whether or not due and payable) shall
forthwith become due and payable by such Guarantor for the purposes of this
Section.

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

         SECTION 11.02. Limitation on Liability; Release.

         (a) Any term or provision of this Indenture to the contrary
notwithstanding, the maximum, aggregate amount of the obligations guaranteed
hereunder by any Guarantor shall not exceed the maximum amount that can be
guaranteed (after giving effect to all its Guarantees of Debt under the New
Credit Facility) without rendering this Indenture, as it relates to any
Guarantor, voidable under applicable law relating to fraudulent conveyance or
fraudulent transfer or similar laws affecting the rights of creditors generally.

         (b) This Guarantee as to any Subsidiary Guarantor shall terminate and
be of no further force or effect, and any such Subsidiary Guarantor shall be
released and relieved of any obligations under its Security Guarantee and this
Indenture, upon (i) the designation (in accordance with the provisions of this
Indenture) of such Subsidiary Guarantor as an Unrestricted Subsidiary or (ii)
the sale or other disposition of all of the assets of such Subsidiary Guarantor
in accordance with the terms of this Indenture, by way of merger, consolidation
or otherwise, or a sale or other disposition of all of the Capital Stock of any
Subsidiary Guarantor then held by the Company and its Restricted Subsidiaries;
provided that the Net Proceeds of such sale or other disposition are applied in
accordance with Section 4.06, to the extent such Section is applicable to such
disposition, (iii) the sale or other disposition of Capital Stock of any
Subsidiary Guarantor if (A) as a result of such disposition, such Person ceases
to be a Subsidiary of the Company and (B) the Net Proceeds of such sale are
applied in accordance with Section 4.06, to the extent such Section is
applicable to such disposition, or (iv) the release of such Subsidiary Guarantor
from its guarantee and all other obligations under all Credit Facilities
incurred under Section 4.03(b)(i). If the Security Guarantee of any Subsidiary
Guarantor terminates pursuant to the foregoing provisions, such Person shall
cease to be a Subsidiary, a Guarantor or otherwise a party to this Indenture
and, upon request by the Company, the Trustee shall execute appropriate
instruments acknowledging such termination and the release of such Person from
its obligations hereunder.

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<PAGE>

         SECTION 11.03. Successors and Assigns. This Article XI shall be binding
upon each Guarantor and its successors and assigns and shall enure to the
benefit of the successors and assigns of the Trustee and the Holders and, in the
event of any transfer or assignment of rights by any Holder or the Trustee, the
rights and privileges conferred upon that party in this Indenture and in the
Securities shall automatically extend to and be vested in such transferee or
assignee, all subject to the terms and conditions of this Indenture.

         SECTION 11.04. No Waiver. Neither a failure nor a delay on the part of
either the Trustee or the Holders in exercising any right, power or privilege
under this Article XI shall operate as a waiver thereof, nor shall a single or
partial exercise thereof preclude any other or further exercise of any right,
power or privilege. The rights, remedies and benefits of the Trustee and the
Holders herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article XI at law,
in equity, by statute or otherwise.

         SECTION 11.05. Modification. No modification, amendment or waiver of
any provision of this Article XI, nor the consent to any departure by any
Guarantor therefrom, shall in any event be effective unless the same shall be in
writing and signed by the Trustee, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No
notice to or demand on any Guarantor in any case shall entitle such Guarantor to
any other or further notice or demand in the same, similar or other
circumstances.

                                   ARTICLE XII

                    Subordination of the Security Guarantees
                    ----------------------------------------

         SECTION 12.01. Agreement To Subordinate. Each Guarantor agrees, and
each Securityholder by accepting a Security agrees, that such Guarantor's
obligations under its Security Guarantee are subordinated in right of payment,
to the extent and in the manner provided in this Article XII, to the prior
payment in full in cash or Cash Equivalents of all existing and future Senior
Debt of such Guarantor and that the subordination is for the benefit of and
enforceable by the holders of Senior Debt of such Guarantor. The obligations of
a Guarantor under this Article XII shall in all respects rank pari passu with
all other Pari Passu Debt of such Guarantor, and only Debt of such Guarantor
that is Senior Debt shall rank senior to the obligations of such Guarantor in
this Article XII in accordance with the provisions set forth herein.

         SECTION 12.02. Liquidation, Dissolution, Bankruptcy. Upon any payment
or distribution to creditors of any Guarantor in a liquidation or dissolution of
such Guarantor or in a bankruptcy, reorganization, insolvency, receivership or
similar proceeding relating to such Guarantor or its property, an assignment for
the benefit of creditors or any marshaling of such Guarantor's assets and
liabilities, the holders of Senior Debt of such Guarantor shall be entitled to
receive payment in full, in cash or Cash Equivalents, of all Obligations due in
respect of such Senior Debt (including interest after the commencement of any
such proceeding at the rate specified in the applicable Senior Debt, whether or
not allowed or allowable in such proceeding) before the Holders of Securities
will be entitled to receive any payment with respect to the Securities, and
until all Obligations with respect to such Senior Debt are paid in full, in cash
or

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<PAGE>

Cash Equivalents, any payment or distribution to which the Holders of Securities
would be entitled shall be made to the holders of such Senior Debt (except that
Holders of Securities may receive and retain (i) Permitted Junior Securities and
(ii) payments made from the trust described in Article VIII so long as, on the
date or dates the respective amounts were paid into the trust, such payments
were made with respect to the Securities without violating this Article XII).

         SECTION 12.03. Default on Senior Debt of a Guarantor. A Guarantor shall
not make any payment or distribution upon or in respect of its Security
Guarantee if (i) a default in the payment of any Designated Senior Debt of such
Guarantor occurs and is continuing beyond any applicable grace period (a
"Guarantor payment default") or any other default on Designated Senior Debt of
such Guarantor occurs and the maturity of such Designated Senior Debt is
accelerated in accordance with its terms or (ii) a default, other than a
Guarantor payment default, occurs and is continuing with respect to Designated
Senior Debt of such Guarantor that permits holders of the Designated Senior Debt
of such Guarantor as to which such default relates to accelerate its maturity (a
"Guarantor non-payment default") and, in the case of this clause (ii) only, the
Trustee receives a notice of such default (a "Guarantor Payment Blockage
Notice") from the Company, a Representative for, or the holders of a majority of
the outstanding principal amount of, any such issue of Designated Senior Debt of
such Guarantor. Payments on the Security Guarantee of such Guarantor may and
shall be resumed (a) in the case of a Guarantor payment default, upon the date
on which such default is cured or waived and, in the case of Designated Senior
Debt of such Guarantor that has been accelerated, such acceleration has been
rescinded, and (b) in case of a Guarantor non-payment default, the earlier of
(I) the date on which such Guarantor non-payment default is cured or waived,
(II) 179 days after the date on which the applicable Guarantor Payment Blockage
Notice is received or (III) the date on which the Trustee receives notice from
the Representative for such Designated Senior Debt rescinding the Guarantor
Payment Blockage Notice, unless the maturity of any Designated Senior Debt of
such Guarantor has been accelerated. No new period of payment blockage may be
commenced on account of any Guarantor non-payment default unless and until 360
days have elapsed since the initial effectiveness of the immediately prior
Guarantor Payment Blockage Notice. No Guarantor non-payment default that existed
or was continuing on the date of delivery of any Guarantor Payment Blockage
Notice to the Trustee shall be, or be made, the basis for a subsequent Guarantor
Payment Blockage Notice unless such default shall have been cured or waived for
a period of not less than 90 days.

         SECTION 12.04. Demand for Payment. If payment of the Securities is
accelerated because of an Event of Default and a demand for payment is made on a
Guarantor pursuant to Article XI, the Trustee shall promptly notify the Company,
and the Company shall promptly (and in no event more than five Business Days
after receipt of such notice) notify the Representative of the lenders under the
New Credit Facility of the acceleration. If any Debt under the New Credit
Facility is outstanding, such Guarantor may not pay its Obligations under its
Security Guarantee until five Business Days after the holders of such Debt
receive notice of such demand and, thereafter, may pay its Obligations under its
Security Guarantee only if this Article XII otherwise permits payment at that
time.

         SECTION 12.05. When Distribution Must Be Paid Over. If a distribution
is made to Securityholders that because of this Article XII should not have been
made to them, the

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<PAGE>

Securityholders who receive the distribution shall hold it in trust for holders
of Senior Debt of the relevant Guarantor and pay it over to them as their
interests may appear.

         SECTION 12.06. Subrogation. After all Senior Debt of a Guarantor is
paid in full and until the Securities are paid in full, Securityholders shall be
subrogated to the rights of holders of Senior Debt of such Guarantor to receive
distributions applicable to Senior Debt of such Guarantor. A distribution made
under this Article XII to holders of Senior Debt of such Guarantor which
otherwise would have been made to Securityholders is not, as between such
Guarantor and Securityholders, a payment by such Guarantor on Senior Debt of
such Guarantor.

         SECTION 12.07. Relative Rights. This Article XII defines the relative
rights of Securityholders and holders of Senior Debt of a Guarantor. Nothing in
this Indenture shall:

                  (1) impair, as between a Guarantor and Security holders, the
         obligation of a Guarantor which is absolute and unconditional, to pay
         its Obligations under its Security Guarantee to the extent set forth in
         Article XI; or

                  (2) prevent the Trustee or any Securityholder from exercising
         its available remedies upon a default by a Guarantor under its
         Obligations under its Security Guarantee, subject to the rights of
         holders of Senior Debt of such Guarantor to receive distributions
         otherwise payable to Securityholders.

         SECTION 12.08. Subordination May Not Be Impaired by a Guarantor. No
right of any holder of Senior Debt of a Guarantor to enforce the subordination
of the Obligations under the Security Guarantee of such Guarantor shall be
impaired by any act or failure to act by such Guarantor or by its failure to
comply with this Indenture.

         With respect to the holders of Senior Debt, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article XII, and no implied covenants or
obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt.

         SECTION 12.09. Rights of Trustee and Paying Agent. Notwithstanding
Section 12.03, the Trustee or Paying Agent may continue to make payments on the
Securities and shall not be charged with knowledge of the existence of facts
that would prohibit the making of any such payments unless, not less than two
Business Days prior to the date of such payment, a Trust Officer of the Trustee
receives notice satisfactory to it that payments may not be made under this
Article XII. A Guarantor, the Registrar or co-registrar, the Paying Agent, a
Representative or a holder of Senior Debt of a Guarantor may give the notice;
provided, however, that, if an issue of Senior Debt of a Guarantor has a
Representative, only the Representative may give the notice. The Trustee shall
be entitled to rely on the delivery to it of a written notice by a Person
representing himself or itself to be a holder of any Senior Debt of a Guarantor
(or a Representative of such holder) to establish that such notice has been
given by a holder of such Senior Debt or Representative thereof.

         The Trustee in its individual or any other capacity may hold Senior
Debt of a Guarantor with the same rights it would have if it were not Trustee.
The Registrar and co-registrar and the

                                       81
<PAGE>

Paying Agent may do the same with like rights. The Trustee shall be entitled to
all the rights set forth in this Article XII with respect to any Senior Debt of
a Guarantor which may at any time be held by it, to the same extent as any other
holder of Senior Debt of such Guarantor; and nothing in Article VII shall
deprive the Trustee of any of its rights as such holder. Nothing in this Article
XII shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 7.07.

         SECTION 12.10. Distribution or Notice to Representative. Whenever a
distribution is to be made or a notice given to holders of Senior Debt of a
Guarantor, the distribution may be made and the notice given to their
Representative (if any).

         SECTION 12.11. Article XII Not to Prevent Events of Default or Limit
Right to Accelerate. The failure of a Guarantor to make a payment on any of its
Obligations under its Security Guarantee by reason of any provision in this
Article XII shall not be construed as preventing the occurrence of a default by
such Guarantor under its Security Guarantee. Nothing in this Article XII shall
have any effect on the right of the Securityholders or the Trustee to make a
demand for payment on a Guarantor pursuant to this Article XII.

         SECTION 12.12. Trustee Entitled To Rely. Upon any payment or
distribution pursuant to this Article XII, the Trustee and the Securityholders
shall be entitled to rely (i) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 12.02
are pending, (ii) upon a certificate of the liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or to the
Securityholders or (iii) upon the Representatives for the holders of Senior Debt
of a Guarantor for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of the Senior Debt of a
Guarantor and other Debt of a Guarantor, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article XII. In the event that the Trustee determines, in
good faith, that evidence is required with respect to the right of any Person as
a holder of Senior Debt of a Guarantor to participate in any payment or
distribution pursuant to this Article XII, the Trustee may request such Person
to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of Senior Debt of such Guarantor held by such Person, the extent to which
such Person is entitled to participate in such payment or distribution and other
facts pertinent to the rights of such Person under this Article XII, and, if
such evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment. Sections 7.01 and 7.02 shall be applicable to all actions or omissions
of actions by the Trustee pursuant to this Article XI.

         SECTION 12.13. Trustee To Effectuate Subordination. Each Securityholder
by accepting a Security authorizes and directs the Trustee on his behalf to take
such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Securityholders and the holders of Senior Debt of each
of the Guarantors as provided in this Article XII and appoints the Trustee as
attorney-in-fact for any and all such purposes.

         SECTION 12.14. Trustee Not Fiduciary for Holders of Senior Debt of a
Guarantor. The Trustee shall not be deemed to owe any fiduciary or other duty to
the holders of Senior Debt of a Guarantor and shall not be liable to any such
holders if it shall mistakenly pay over or distribute

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<PAGE>

to Securityholders or the relevant Guarantor or any other Person, money or
assets to which any holders of Senior Debt of such Guarantor shall be entitled
by virtue of this Article XII or otherwise.

         SECTION 12.15. Reliance by Holders of Senior Debt of a Guarantor on
Subordination Provisions. Each Securityholder by accepting a Security
acknowledges and agrees that the foregoing subordination provisions are, and are
intended to be, an inducement and a consideration to each holder of any Senior
Debt of a Guarantor, whether such Senior Debt was created or acquired before or
after the issuance of the Securities, to acquire and continue to hold, or to
continue to hold, such Senior Debt and such holder of Senior Debt shall be
deemed conclusively to have relied on such subordination provisions in acquiring
and continuing to hold, or in continuing to hold, such Senior Debt.

         SECTION 12.16. Payments May Be Paid Prior to Dissolution. Nothing
contained in this Article XII or elsewhere in this Indenture shall prevent (i)
any Guarantor, except under the conditions described in Section 12.02 and 12.03,
from making any payment or distribution upon or in respect of its Security
Guarantee at any time or from depositing with the Trustee any moneys for any
such payment or distribution, or (ii) in the absence of actual knowledge by the
Trustee that a given payment or distribution would be prohibited by Section
12.02 or 12.03, the application by the Trustee of any moneys deposited with it
for the purpose of making any such payment or distribution to the Holders
entitled thereto unless at least three Business Days prior to the date upon
which such payment or distribution would otherwise become due and payable, a
Trust Officer of the Trustee shall have received a Guarantor Payment Blockage
Notice provided for in Section 12.03 (provided, that notwithstanding the
foregoing, the Holders receiving any payment or distribution made in
contravention of Section 12.02 and/or 12.03 (and the respective payment or
distribution) shall otherwise be subject to the provisions of Sections 12.02 and
12.03). Each Guarantor shall give prompt written notice to the Trustee of any
dissolution, winding-up, liquidation or reorganization of such Guarantor,
although any delay or failure to give any such notice shall have no effect on
the subordination provisions contained herein.

                                  ARTICLE XIII

                                  Miscellaneous
                                  -------------

         SECTION 13.01. Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

         SECTION 13.02. Notices. Any notice or communication shall be in writing
and delivered in person or mailed by first-class mail addressed as follows:

                  if to the Company:

                  Jostens, Inc.
                  5501 Norman Center Drive
                  Minneapolis, MN  55437

                  Attention of:  General Counsel, with copies to:

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<PAGE>

                  David Tayeh
                  Investcorp International Inc.
                  280 Park Avenue, 37 West
                  New York, NY 10017

                  Gibson, Dunn & Crutcher, LLP
                  200 Park Avenue
                  New York, NY 10166
                  Attention: Joerg H. Esdorn, Esq.

                  if to the Trustee:

                  The Bank of New York
                  101 Barclay Street, 21st Floor West
                  New York, New York  10286
                  telecopier no.:  (212) 815-5915

                  Attention of:  Corporate Trust Trustee Administration

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

         Any notice or communication mailed to a Securityholder shall be made in
compliance with Section 313(c) of the TIA and mailed to the Securityholder at
the Securityholder's address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time
prescribed.

         Failure to mail a notice or communication to a Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

         SECTION 13.03. Communication by Holders with Other Holders.
Securityholders may communicate pursuant to TIA ss. 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Guarantors, the Trustee, the Registrar and anyone
else shall have the protection of TIA ss. 312(c).

         SECTION 13.04. Certificate and Opinion as to Conditions Precedent. Upon
any request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, at the request of the Trustee the
Company shall furnish to the Trustee:

                  (1) an Officers' Certificate in form and substance reasonably
         satisfactory to the Trustee (which shall include the statements set
         forth in Section 13.05 hereof) stating that, in the opinion of the
         signers, all conditions precedent, if any, provided for in this
         Indenture relating to the proposed action have been complied with; and

                  (2) an Opinion of Counsel in form and substance reasonably
         satisfactory to the Trustee (which shall include the statements set
         forth in Section 13.05 hereof)

                                       84
<PAGE>

         stating that, in the opinion of such counsel, all such conditions
         precedent have been complied with.

         To the extent applicable, the Company shall comply with Section
314(c)(3) of the TIA.

         SECTION 13.05. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

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

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

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

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

         SECTION 13.06. When Securities Disregarded. In determining whether the
Holders of the required principal amount of Securities have concurred in any
direction, waiver or consent, Securities owned by the Company or by any Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company shall be disregarded and deemed not to be
outstanding, except that, for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities which the Trustee actually knows are so owned shall be so
disregarded. Also, subject to the foregoing, only Securities outstanding at the
time shall be considered in any such determination.

         SECTION 13.07. Rules by Trustee, Paying Agent and Registrar. The
Trustee may make reasonable rules for action by or a meeting of Securityholders.
The Registrar and the Paying Agent may make reasonable rules for their
functions.

         SECTION 13.08. Legal Holidays. A "Legal Holiday" is a Saturday, a
Sunday or a day on which banking institutions are not required to be open in the
State of New York. If a payment date is a Legal Holiday, payment shall be made
on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period. If a regular record date is a Legal Holiday,
the record date shall not be affected.

         SECTION 13.09. GOVERNING LAW. THIS INDENTURE AND THE SECURITIES SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

                                       85
<PAGE>

         SECTION 13.10. No Recourse Against Others. A director, officer,
incorporator, employee, stockholder or Affiliate as such, of the Company or any
Guarantor shall not have any liability for any obligations of the Company or any
Guarantor under the Securities or this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a
Security, each Securityholder waives and releases all such liability. The waiver
and release shall be part of the consideration for the issue of the Securities.

         SECTION 13.11. Successors. All agreements of the Company and each
Guarantor in this Indenture and the Securities shall bind their successors. All
agreements of the Trustee in this Indenture shall bind its successors.

         SECTION 13.12. Multiple Originals. The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement. One signed copy is enough to prove this
Indenture.

         SECTION 13.13. Table of Contents; Headings. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not intended
to be considered a part hereof and shall not modify or restrict any of the terms
or provisions hereof.

         SECTION 13.14. Severability. In case any one or more of the provisions
in this Indenture, in the Securities or in the Guarantees shall be held invalid,
illegal or unenforceable, in any respect for any reason, the validity, legality
and enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it
being intended that all of the provisions hereof shall be enforceable to the
full extent permitted by law.

         SECTION 13.15. No Adverse Interpretation of Other Agreements. This
Indenture may not be used to interpret another indenture, loan or debt agreement
of the Company or any of its Subsidiaries. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

                                       86
<PAGE>

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

                                          JOSTENS, INC.,

                                          by:  /s/ Robert C. Buhrmaster
                                              ---------------------------
                                              Name:  Robert C. Buhrmaster
                                              Title: Chairman of the Board,
                                                     President and Chief
                                                     Executive Officer

                                          AMERICAN YEARBOOK COMPANY, INC.

                                          by: /s/ Robert C. Buhrmaster
                                              ---------------------------
                                              Name:  Robert C. Buhrmaster
                                              Title: President

                                          THE BANK OF NEW YORK

                                          by:  /s/ Terence Rawlins
                                              ---------------------------
                                              Name:  Terence Rawlins
                                              Title: Asst. Vice President

                                       87
<PAGE>

                                                                       Exhibit A

                       [FORM OF FACE OF INITIAL SECURITY]

                           [GLOBAL SECURITIES LEGEND]

         UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO
THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

                         [RESTRICTED SECURITIES LEGEND]

         THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER
THE SECURITIES ACT OR (C) IT IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE
501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN "ACCREDITED INVESTOR"),
(2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS
SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO JOSTENS, 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)
INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER,
FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH
LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS SECURITY), (D) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF

                                    Exhibit A
                                    ---------
                                        i
<PAGE>

AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF
JOSTENS, INC. SO REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH
PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO
YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE PROPOSED TRANSFEREE
IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO
THE TRUSTEE AND JOSTENS, INC. SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN,
THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE
MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

                                  JOSTENS, INC.

                    12 3/4% SENIOR SUBORDINATED NOTE DUE 2010

         No. ___                                            CUSIP No.

                                                          $
                                                           ----------

         JOSTENS, INC., a Minnesota corporation (the "Company"), promises to pay
to _______________, or its registered assigns, the principal sum of ___________
in U.S. Dollars on May 1, 2010.

         Interest Payment Dates:                May 1 and November 1

         Record Dates:                          April 15 and October 15

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

                                          JOSTENS, INC.,

                                          by ______________________________
                                             Name:
                                             Title:

                                    Exhibit A
                                    ---------
                                       ii
<PAGE>

Dated:

TRUSTEE'S CERTIFICATE OF
    AUTHENTICATION

THE BANK OF NEW YORK
as Trustee, certifies that
this is one of the Securities            [Seal]
referred to in the Indenture,
  by
      -----------------------------
           Authorized Signatory

                                    Exhibit A
                                    ---------
                                       iii
<PAGE>

                   [FORM OF REVERSE SIDE OF INITIAL SECURITY]

                   12 3/4 % Senior Subordinated Note due 2010

1.       Interest
         --------

         JOSTENS, INC., a Minnesota corporation (the "Company"), promises to pay
interest on the principal amount of this Security at the rate per annum shown
above and shall pay Liquidated Damages, if any, payable pursuant to the relevant
Registration Rights Agreement.

         The Company will pay interest and Liquidated Damages, if any,
semi-annually in arrears on May 1 and November 1 of each year commencing on
November 1, 2000. Interest on the Securities will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from the
Issue Date with respect to this Security. Interest will be computed on the basis
of a 360-day year comprised of twelve 30-day months. The Company shall pay
interest on overdue principal at the rate borne by the Securities, and it shall
pay interest on overdue installments of interest at the same rate to the extent
lawful.

2.       Method of Payment
         -----------------

         The Company will pay interest (except defaulted interest) on and
Liquidated Damages, if any, in respect of the Securities to the Persons who are
registered holders of Securities at the close of business on the 15th of April
or the 15th of October immediately preceding the interest payment date even if
Securities are canceled after the record date and on or before the interest
payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts. However, the Company may pay principal and interest by check
payable in such money or by wire transfer of federal funds.

3.       Paying Agent and Registrar
         --------------------------

         Initially, THE BANK OF NEW YORK (the "Trustee") will act as Paying
Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice to the Holders. The Company or any
domestically organized Wholly Owned Restricted Subsidiary may act as Paying
Agent, Registrar or co-registrar.

4.       Indenture
         ---------

         The Company issued the Securities under an Indenture dated as of May
10, 2000 (the "Indenture"), among the Company, the Initial Guarantor and the
Trustee. The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the TIA. Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Securities are subject to all such terms, and Securityholders are
referred to the Indenture and the TIA for a statement of those terms.

         The Securities are unsecured senior subordinated obligations of the
Company and are limited to $350,000,000 in aggregate principal amount
outstanding, of which $225,000,000

                                    Exhibit A
                                    ---------
                                       iv
<PAGE>

in aggregate principal amount will be initially issued on the Closing Date.
Subject to the conditions set forth in the Indenture, the Company may issue up
to an additional $125,000,000 aggregate principal amount of Additional
Securities. This Security is one of the Initial Securities referred to in the
Indenture. The Securities include the Initial Securities, the Additional
Securities and any Exchange Securities and Private Exchange Securities issued in
exchange for the Initial Securities pursuant to the Indenture. The Initial
Securities, the Additional Securities, the Exchange Securities and the Private
Exchange Securities are treated as a single class of securities under the
Indenture. The Indenture imposes certain limitations on the incurrence of Debt
by the Company and its Restricted Subsidiaries; the payment of dividends and
other payments by the Company and its Restricted Subsidiaries; Investments;
sales of assets of the Company and Restricted Subsidiaries; certain transactions
with Affiliates; the lines of business in which the Company and its Restricted
Subsidiaries may operate; Liens; and consolidations, mergers and transfers of
all or substantially all of the Company's or a Guarantor's assets. In addition,
the Indenture prohibits certain restrictions on distributions from Restricted
Subsidiaries.

5.       Optional Redemption
         -------------------

         Except as set forth in the next two paragraphs, the Securities may not
be redeemed at the Company's option prior to May 1, 2005. Thereafter, the
Securities will be subject to redemption at any time at the option of the
Company, in whole or in part, upon not less than 30 nor more than 60 days'
notice, at the redemption prices (expressed as percentages of principal amount)
set forth below plus accrued and unpaid interest and Liquidated Damages thereon,
if any, to the applicable redemption date (subject to the right of Holders on
the relevant record date to receive interest due on the relevant interest
payment date), if redeemed during the twelve-month period beginning on May 1 of
the years indicated below:

                                                Redemption
         Period                                   Price
         ------                                  --------
         2005                                    106.375%
         2006                                    104.250%
         2007                                    102.125%
         2008 and thereafter                     100.000%

         In addition, at any time and from time to time, prior to May 1, 2003,
the Company may redeem up to 35% of the aggregate principal amount of Securities
issued under the Indenture at a redemption price of 112.75% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages thereon,
if any, to the redemption date (subject to the right of Holders on the relevant
record date to receive interest due on the relevant interest payment date), with
the net cash proceeds of an underwritten registered public offering of common
stock of the Company; provided that at least 65% of the aggregate principal
amount of Securities issued under the Indenture remains outstanding immediately
after the occurrence of any such redemption; and provided further, that such
redemption shall occur within 90 days of the date of the closing of such public
offering.

         At any time on or prior to May 1, 2005, the Securities may be redeemed
as a whole but not in part at the option of the Company upon the occurrence of a
Change of Control, upon not less than 30 nor more than 60 days' prior notice
(but in no event may any such redemption occur

                                    Exhibit A
                                    ---------
                                        v
<PAGE>

more than 120 days after the occurrence of such Change of Control) mailed by
first-class mail to each Holder's registered address, at a redemption price
equal to 100% of the principal amount thereof plus the Applicable Premium as of,
and accrued but unpaid interest and Liquidated Damages, if any, to, the
redemption date, subject to the right of Holders on the relevant record date to
receive interest due on the relevant interest payment date.

6.       Notices of Redemption
         ---------------------

         Notices of redemption shall be mailed by first-class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Securities to be redeemed at its registered address all in accordance with the
Indenture. If less than all of the Securities are to be redeemed at any time,
selection of Securities for redemption will be made by the Trustee in compliance
with the requirements of the principal national securities exchange, if any, on
which the Securities are listed, or, if the Securities are not so listed, on a
pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate; provided that no Securities of $1,000 or less shall be redeemed in
part; provided further, however, that if a partial redemption is made with the
proceeds of a public offering of common stock, selection of the Securities or
portions thereof for redemption shall be made by the Trustee on a pro rata basis
only or on as nearly a pro rata basis as is practicable (subject to DTC
procedures), unless such method is otherwise prohibited. If any Security is to
be redeemed in part only, the notice of redemption that relates to such Security
shall state the portion of the principal amount thereof to be redeemed. On and
after the redemption date, interest ceases to accrue on Securities or portions
of them called for redemption.

7.       Repurchase at the Option of the Holder
         --------------------------------------

         Upon a Change of Control, any Holder of Securities will have the right,
subject to certain conditions set forth in the Indenture, to require the Company
to repurchase all or any part (equal to $1,000 or an integral multiple thereof)
of the Securities of such Holder at a purchase price equal to 101% of the
aggregate principal amount of the Securities to be repurchased plus accrued and
unpaid interest and Liquidated Damages thereon, if any, to the date of
repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date that is on or
prior to the date of repurchase) as provided in, and subject to the terms of,
the Indenture.

8.       Subordination
         -------------

         The Securities are subordinated to Senior Debt of the Company, as
defined in the Indenture. To the extent provided in the Indenture, Senior Debt
of the Company must be paid before the Securities may be paid. The Company
agrees, and each Securityholder by accepting a Security agrees, to the
subordination provisions contained in the Indenture and authorizes the Trustee
to give it effect and appoints the Trustee as attorney-in-fact for such purpose.

9.       Denominations; Transfer; Exchange
         ---------------------------------

         The Securities are in registered form without coupons in denominations
of $1,000 and whole multiples of $1,000. A Holder may transfer or exchange
Securities in accordance with the Indenture. Upon any transfer or exchange, the
Registrar and the Trustee may require a Holder,

                                    Exhibit A
                                    ---------
                                       vi
<PAGE>

among other things, to furnish appropriate endorsements or transfer documents
and to pay any taxes required by law or permitted by the Indenture. The
Registrar need not register the transfer of or exchange any Securities selected
for redemption (except, in the case of a Security to be redeemed in part, the
portion of the Security not to be redeemed) or transfer or exchange any
Securities for a period of 15 days prior to a selection of Securities to be
redeemed or 15 days before an interest payment date.

10.      Persons Deemed Owners
         ---------------------

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

11.      Unclaimed Money
         ---------------

         If money for the payment of principal or interest remains unclaimed for
two years, the Paying Agent shall pay the money back to the Company at its
request, or if then held by the Company or a Wholly Owned Restricted Subsidiary,
shall be discharged from such trust (unless an abandoned property law designates
another Person for payment thereof). After any such payment, Holders entitled to
the money must look only to the Company for payment thereof, and all liability
of the Paying Agent with respect to such money, and all liability of the Company
or such permitted Wholly Owned Restricted Subsidiary as trustee thereof, shall
thereupon cease.

12.      Discharge and Defeasance
         ------------------------

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

13.      Amendment, Waiver
         -----------------

         Subject to certain exceptions set forth in the Indenture, (i) the
Indenture, the Securities or the Security Guarantees may be amended or
supplemented with the written consent of the Holders of at least a majority in
principal amount outstanding of the Securities and (ii) any existing default or
noncompliance with any provision of the Indenture, the Securities or the
Security Guarantees (other than payment of principal, premium, if any,
Liquidated Damages, if any, and interest) may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Securities.
Subject to certain exceptions set forth in the Indenture, without the consent of
any Securityholder, the Company and the Trustee may amend the Indenture or the
Securities to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Securities in addition to or in place of certificated Securities
(provided that the uncertificated Securities are issued in registered form for
purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f)(2)(B) of the Code), to
provide for the assumption of the Company's or any Guarantor's obligations to
Holders of Securities in the case of a merger, consolidation or sale of assets,
to release any Security Guarantee in accordance with the provisions of the
Indenture, to provide for additional Guarantors, to make any change that would
provide any additional rights or benefits to the Holders of Securities or that,
as determined by the Board of Directors of the Company in good

                                    Exhibit A
                                    ---------
                                       vii
<PAGE>

faith, does not adversely affect the legal rights of any such Holder under the
Indenture, the Securities or the Security Guarantees, to comply with
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA or to provide for the issuance of Additional Securities
in compliance with Article II and Section 4.03 of the Indenture.

14.      Defaults and Remedies
         ---------------------

         Under the Indenture, an Event of Default occurs if there is: (i)
default for 30 days in the payment when due of interest on, or Liquidated
Damages with respect to, the Securities (whether or not prohibited by Article X
in the Indenture); (ii) default in payment when due of the principal of or
premium, if any, on the Securities (including the failure to make a payment to
purchase Securities tendered pursuant to a Change of Control Offer or an Asset
Sale Offer) (whether or not prohibited by Article X in the Indenture); (iii)
failure by the Company for 30 days after receipt of notice from the Trustee or
the Holders of at least 25% in principal amount of the then outstanding
Securities to comply with Section 4.03, 4.04, 4.06, 4.08 or 5.01 of the
Indenture; (iv) failure by the Company for 60 days after receipt of notice from
the Trustee or the Holders of at least 25% in principal amount of the then
outstanding Securities specifying such failure to comply with any of its other
agreements in the Indenture or the Securities; (v) the failure by the Company or
any Restricted Subsidiary that is a Significant Subsidiary to pay any Debt
within any applicable grace period after final maturity or acceleration by the
holders thereof because of a default if the total amount of all such Debt unpaid
or accelerated at the time exceeds $25.0 million; (vi) any judgment or decree
for the payment of money in excess of $25.0 million (net of any insurance or
indemnity payments actually received in respect thereof prior to or within 60
days from the entry thereof, or to be received in respect thereof in the event
any appeal thereof shall be unsuccessful) is entered against the Company or any
Significant Subsidiary that is a Restricted Subsidiary and is not discharged,
waived or stayed and either (A) an enforcement proceeding has been commenced by
any creditor upon such judgment or decree or (B) there is a period of 60 days
following the entry of such judgment or decree during which such judgment or
decree is not discharged, waived or the execution thereof stayed; (vii) any
Security Guarantee by a Guarantor that is a Significant Subsidiary shall be held
in any judicial proceeding to be unenforceable or invalid or, except as
permitted by the Indenture, shall cease for any reason to be in full force and
effect or any Guarantor, or any Person acting on behalf of any Guarantor, shall
deny or disaffirm its obligations under its Security Guarantee; or (viii)
certain events of bankruptcy or insolvency with respect to the Company or any of
its Restricted Subsidiaries that is a Significant Subsidiary.

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

                                    Exhibit A
                                    ---------
                                      viii
<PAGE>

15.      Trustee Dealings with the Company
         ---------------------------------

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

16.      No Personal Liability of Directors, Officers, Employees and
         -----------------------------------------------------------
         Stockholders
         ------------

         No past, present or future director, officer, employee, incorporator,
agent or stockholder or Affiliate of the Company, as such, shall have any
liability for any obligations of the Company under the Securities, the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. No past, present or future director, officer, employee,
incorporator, agent or stockholder or Affiliate of any of the Guarantors, as
such, shall have any liability for any obligations of the Guarantors under the
Security Guarantees, the Indenture or for any claim based on, in respect of, or
by reason of, such obligations or their creation. Each holder of Securities and
Security Guarantees by accepting a Security and a Security Guarantee waives and
releases all such liabilities. The waiver and release are part of the
consideration for issuance of the Securities and the Security Guarantees. Such
waiver may not be effective to waive liabilities under the federal securities
laws and it is the view of the SEC that such a waiver is against public policy.

17.      Governing Law
         -------------

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

18.      Authentication
         --------------

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

19.      Abbreviations
         -------------

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

20.      CUSIP Numbers
         -------------

         Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Company has caused CUSIP numbers to be
printed on the

                                    Exhibit A
                                    ---------
                                       ix
<PAGE>

Securities and has directed the Trustee to use CUSIP numbers in notices of
redemption as a convenience to Securityholders. No representation is made as to
the accuracy of such numbers either as printed on the Securities or as contained
in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

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

                                  JOSTENS, INC.
                            5501 Norman Center Drive
                          Minneapolis, Minnesota 55437

                             Attention of Secretary

                                    Exhibit A
                                    ---------
                                        x
<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

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

---------------------------------------
   (Insert assignee's soc. sec. or tax I.D. No.)

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

Date:  ________________ Your Signature:  _____________________

Signature Guarantee:_______________________________________
                    (Signature must be guaranteed by a
                    participant in a recognized signature
                    guarantee medallion program)

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

                                    Exhibit A
                                    ---------
                                       xi
<PAGE>

          CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OF
                         TRANSFER RESTRICTED SECURITIES

Reference is hereby made to that certain Indenture dated May 10, 2000 (the
"Indenture") between Jostens, Inc., as Issuer (the "Company"), the Initial
Guarantor (as defined therein) and The Bank of New York, as trustee (the
"Trustee"). Capitalized terms used but not defined herein shall have the
meanings set forth in the Indenture.

This certificate relates to $_________ principal amount of Securities held in
(check applicable space) ____ book-entry or _____ definitive form by the
undersigned.

The undersigned (check one box below):

*        has requested the Trustee by written order to deliver in exchange for
         its beneficial interest in the Global Security held by the Depository a
         Security or Securities in definitive, registered form of authorized
         denominations and an aggregate principal amount equal to its beneficial
         interest in such Global Security (or the portion thereof indicated
         above);

*        has requested the Trustee by written order to exchange or register the
         transfer of a Security or Securities.
         In connection with any transfer of any of the Securities evidenced by
         this certificate occurring prior to the expiration of the periods
         referred to in Rule 144(k) under the Securities Act of 1933, as
         amended, the undersigned confirms that such Securities are being
         transferred in accordance with its terms:

CHECK ONE BOX BELOW:

         (1)      * to the Company or any of its subsidiaries; or

         (2)      * pursuant to an effective registration statement under the
                  Securities Act of 1933, as amended; or

         (3)      * inside the United States to a "qualified institutional
                  buyer" (as defined in Rule 144A under the Securities Act of
                  1933, as amended) that purchases for its own account or for
                  the account of a qualified institutional buyer to whom notice
                  is given that such transfer is being made in reliance on Rule
                  144A under the Securities Act of 1933, as amended, in each
                  case pursuant to and in compliance with Rule 144A thereunder;
                  or

         (4)      * outside the United States in an offshore transaction within
                  the meaning of Regulation S under the Securities Act of 1933,
                  as amended, in compliance with Rule 904 thereunder; or

         (5)      * inside the United States to an institutional "accredited
                  investor" (as defined in Rule 501(a)(1), (2), (3) or (7) under
                  the Securities Act of 1933, as amended) that has furnished to
                  the Trustee a signed letter containing certain

                                    Exhibit A
                                    ---------
                                       xii
<PAGE>

                  representations and agreements (the form of which letter is
                  attached to the Indenture as Exhibit D and which may be
                  obtained from the Trustee); or

         (6)      * pursuant to another available exemption from registration
                  provided by Rule 144 under the Securities Act of 1933, as
                  amended; or

         (7)      * in accordance with another exemption from the registration
                  requirements of the Securities Act of 1933, as amended.

         Unless one of the boxes is checked, the Trustee will refuse to register
         any of the Securities evidenced by this certificate in the name of any
         person other than the registered holder thereof; provided, however,
         that if box (4), (5) or (6) is checked, the Trustee may require, prior
         to registering any such transfer of the Securities, such legal
         opinions, certifications and other information as the Company has
         reasonably requested to confirm that such transfer is being made
         pursuant to an exemption from, or in a transaction not subject to, the
         registration requirements of the Securities Act of 1933, as amended,
         such as the exemption provided by Rule 144 thereunder.

                                                        ------------------------
                                                               Signature

Signature Guarantee:________________
         (Signature must be guaranteed by a
         participant in a recognized signature
         guarantee medallion program)

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

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

Dated:  ________________                         ______________________________
                                                 NOTICE:  To be executed by
                                                          an executive officer

                                    Exhibit A
                                    ---------
                                      xiii
<PAGE>

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

         The following increases or decreases in this Global Security have been
made:

<TABLE>
<CAPTION>

<S>                      <C>                    <C>                    <C>                    <C>
Date of                  Amount of decrease     Amount of increase     Principal amount of    Signature of
Exchange                 in Principal Amount    in Principal Amount    this Global Security   authorized signatory
                         of this Global         of this Global         following such         of Trustee or
                         Security               Security               decrease or increase   Securities Custodian

</TABLE>

                                    Exhibit A
                                    ---------
                                       xiv
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06 or 4.08 of the Indenture, check the box:

         *  4.06 Asset Sale  *  4.08 Change of Control

         If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.06 or 4.08 of the Indenture, state the amount:
$_____.

Date:  ____________________Your Signature:  _________________________
                            (Sign exactly as your name appears
                            on the other side of the Security)

                                                   ------------------
                                                   Tax I.D. number

Signature Guarantee:_______________________________________
                    (Signature must be guaranteed by a
                    participant in a recognized signature
                    guarantee medallion program)

                                    Exhibit A
                                    ---------
                                       xv
<PAGE>

                                                                       Exhibit B

          [FORM OF FACE OF EXCHANGE OR PERMANENT REGULATION S SECURITY]

                           [Global Securities Legend]

         UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO
THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN. 1

                                  JOSTENS, INC.

                    12 3/4% SENIOR SUBORDINATED NOTE DUE 2010
       No. __..........................................CUSIP No. _________
                                                                         $

         JOSTENS, INC., a Minnesota corporation (the "Company"), promises to pay
to _____________, or its registered assigns, the principal sum of $__________ in
U.S. Dollars on May 1, 2010.

              Interest Payment Dates:          May 1 and November 1
              Record Dates:                    April 15 and October 15

----------
1  This paragraph should only be added if the Security is issued in global form

                                    Exhibit B
                                    ---------
                                        i
<PAGE>

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

                                           JOSTENS, INC.,

                                           by  ____________________________
                                               Name:
                                               Title:

Dated:

TRUSTEE'S CERTIFICATE OF
    AUTHENTICATION
THE BANK OF NEW YORK, as Trustee,
certifies that this is  [Seal]
one of the Securities
referred to in the
Indenture,
  by
       -------------------------
          Authorized Signatory

                                    Exhibit B
                                    ---------
                                       ii
<PAGE>

                   [FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

                   12 3/4 % Senior Subordinated Note due 2010

1.       Interest
         --------

         JOSTENS, INC., a Minnesota corporation (the "Company"), promises to pay
interest on the principal amount of this Security at the rate per annum shown
above and shall pay Liquidated Damages, if any, payable pursuant to the relevant
Registration Rights Agreement.

         The Company will pay interest and Liquidated Damages, if any,
semi-annually in arrears on May 1 and November 1 of each year commencing on
November 1, 2000. Interest on the Securities will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from the
Issue Date with respect to this Security. Interest will be computed on the basis
of a 360-day year comprised of twelve 30-day months. The Company shall pay
interest on overdue principal at the rate borne by the Securities, and it shall
pay interest on overdue installments of interest at the same rate to the extent
lawful.

2.       Method of Payment
         -----------------

         The Company will pay interest (except defaulted interest) on and
Liquidated Damages, if any, in respect of the Securities to the Persons who are
registered holders of Securities at the close of business on the 15th of April
and the 15th of October immediately preceding the interest payment date even if
Securities are canceled after the record date and on or before the interest
payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts. However, the Company may pay principal and interest by check
payable in such money or by wire transfer of federal funds.

3.       Paying Agent and Registrar
         --------------------------

         Initially, THE BANK OF NEW YORK (the "Trustee") will act as Paying
Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice to the Holders. The Company or any
domestically organized Wholly Owned Restricted Subsidiary may act as Paying
Agent, Registrar or co-registrar.

4.       Indenture
         ---------

         The Company issued the Securities under an Indenture dated as of May
10, 2000 (the "Indenture"), among the Company, the Initial Guarantor and the
Trustee. The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the TIA. Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Securities are subject to all such terms, and Securityholders are
referred to the Indenture and the TIA for a statement of those terms.

                                    Exhibit B
                                    ---------
                                       iii
<PAGE>

         The Securities are unsecured senior subordinated obligations of the
Company and are limited to $350,000,000 in aggregate principal amount
outstanding, of which $225,000,000 in aggregate principal amount will be
initially issued on the Closing Date. Subject to the conditions set forth in the
Indenture, the Company may issue up to an additional $125,000,000 aggregate
principal amount of Additional Securities. This Security is one of the Initial
Securities referred to in the Indenture. The Securities include the Initial
Securities, the Additional Securities and any Exchange Securities and Private
Exchange Securities issued in exchange for the Initial Securities pursuant to
the Indenture. The Initial Securities, the Additional Securities, the Exchange
Securities and the Private Exchange Securities are treated as a single class of
securities under the Indenture. The Indenture imposes certain limitations on the
incurrence of Debt by the Company and its Restricted Subsidiaries; the payment
of dividends and other payments by the Company and its Restricted Subsidiaries;
Investments; sales of assets of the Company and Restricted Subsidiaries; certain
transactions with Affiliates; the lines of business in which the Company and its
Restricted Subsidiaries may operate; Liens; and consolidations, mergers and
transfers of all or substantially all of the Company's or a Guarantor's assets.
In addition, the Indenture prohibits certain restrictions on distributions from
Restricted Subsidiaries.

5.       Optional Redemption
         -------------------

         Except as set forth in the next two paragraphs, the Securities may not
be redeemed at the Company's option prior to May 1, 2005. Thereafter, the
Securities will be subject to redemption at any time at the option of the
Company, in whole or in part, upon not less than 30 nor more than 60 days'
notice, at the redemption prices (expressed as percentages of principal amount)
set forth below plus accrued and unpaid interest and Liquidated Damages thereon,
if any, to the applicable redemption date (subject to the right of Holders on
the relevant record date to receive interest due on the relevant interest
payment date), if redeemed during the twelve-month period beginning on May 1 of
the years indicated below:

                                                 Redemption
         Period                                     Price
         ------                                  ---------
         2005                                     106.375%
         2006                                     104.250%
         2007                                     102.125%
         2008 and thereafter                      100.000%

         In addition, at any time and from time to time, prior to May 1, 2003,
the Company may redeem up to 35% of the aggregate principal amount of Securities
issued under the Indenture at a redemption price of 112.75% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages thereon,
if any, to the redemption date (subject to the right of Holders on the relevant
record date to receive interest due on the relevant interest payment date), with
the net cash proceeds of an underwritten registered public offering of common
stock of the Company; provided that at least 65% of the aggregate principal
amount of Securities issued under the Indenture remains outstanding immediately
after the occurrence of any such redemption; and provided further, that such
redemption shall occur within 90 days of the date of the closing of such public
offering.

                                    Exhibit B
                                    ---------
                                       iv
<PAGE>

         At any time on or prior to May 1, 2005, the Securities may be redeemed
as a whole but not in part at the option of the Company upon the occurrence of a
Change of Control, upon not less than 30 nor more than 60 days' prior notice
(but in no event may any such redemption occur more than 120 days after the
occurrence of such Change of Control) mailed by first-class mail to each
Holder's registered address, at a redemption price equal to 100% of the
principal amount thereof plus the Applicable Premium as of, and accrued but
unpaid interest and Liquidated Damages, if any, to, the redemption date, subject
to the right of Holders on the relevant record date to receive interest due on
the relevant interest payment date.

6.       Notices of Redemption
         ---------------------

         Notices of redemption shall be mailed by first-class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Securities to be redeemed at its registered address all in accordance with the
Indenture. If less than all of the Securities are to be redeemed at any time,
selection of Securities for redemption will be made by the Trustee in compliance
with the requirements of the principal national securities exchange, if any, on
which the Securities are listed, or, if the Securities are not so listed, on a
pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate; provided that no Securities of $1,000 or less shall be redeemed in
part; provided further, however, that if a partial redemption is made with the
proceeds of a public offering of common stock, selection of the Securities or
portions thereof for redemption shall be made by the Trustee on a pro rata basis
only or on as nearly a pro rata basis as is practicable (subject to DTC
procedures), unless such method is otherwise prohibited. If any Security is to
be redeemed in part only, the notice of redemption that relates to such Security
shall state the portion of the principal amount thereof to be redeemed. On and
after the redemption date, interest ceases to accrue on Securities or portions
of them called for redemption.

7.       Repurchase at the Option of the Holder
         --------------------------------------

         Upon a Change of Control, any Holder of Securities will have the right,
subject to certain conditions set forth in the Indenture, to require the Company
to repurchase all or any part (equal to $1,000 or an integral multiple thereof)
of the Securities of such Holder at a purchase price equal to 101% of the
aggregate principal amount of the Securities to be repurchased plus accrued and
unpaid interest and Liquidated Damages thereon, if any, to the date of
repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date that is on or
prior to the date of repurchase) as provided in, and subject to the terms of,
the Indenture.

8.       Subordination
         -------------

         The Securities are subordinated to Senior Debt of the Company, as
defined in the Indenture. To the extent provided in the Indenture, Senior Debt
of the Company must be paid before the Securities may be paid. The Company
agrees, and each Securityholder by accepting a Security agrees, to the
subordination provisions contained in the Indenture and authorizes the Trustee
to give it effect and appoints the Trustee as attorney-in-fact for such purpose.

                                    Exhibit B
                                    ---------
                                        v
<PAGE>

9.       Denominations; Transfer; Exchange
         ---------------------------------

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

10.      Persons Deemed Owners
         ---------------------

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

11.      Unclaimed Money
         ---------------

         If money for the payment of principal or interest remains unclaimed for
two years, the Paying Agent shall pay the money back to the Company at its
request, or if then held by the Company or a Wholly Owned Restricted Subsidiary,
shall be discharged from such trust (unless an abandoned property law designates
another Person for payment thereof). After any such payment, Holders entitled to
the money must look only to the Company for payment thereof, and all liability
of the Paying Agent with respect to such money, and all liability of the Company
or such permitted Wholly Owned Restricted Subsidiary as trustee thereof, shall
thereupon cease.

12.      Discharge and Defeasance
         ------------------------

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

13.      Amendment, Waiver
         -----------------

         Subject to certain exceptions set forth in the Indenture, (i) the
Indenture, the Securities or the Security Guarantees may be amended or
supplemented with the written consent of the Holders of at least a majority in
principal amount outstanding of the Securities and (ii) any existing default or
noncompliance with any provision of the Indenture, the Securities or the
Security Guarantees (other than payment of principal, premium, if any,
Liquidated Damages, if any, and interest) may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Securities.
Subject to certain exceptions set forth in the Indenture, without the consent of
any Securityholder, the Company and the Trustee may amend the Indenture or the
Securities to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Securities in addition to or in place of certificated Securities
(provided that the uncertificated Securities are issued in registered form for
purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f)(2)(B) of the

                                    Exhibit B
                                    ---------
                                       vi
<PAGE>

Code), to provide for the assumption of the Company's or any Guarantor's
obligations to Holders of Securities in the case of a merger, consolidation or
sale of assets, to release any Security Guarantee in accordance with the
provisions of the Indenture, to provide for additional Guarantors, to make any
change that would provide any additional rights or benefits to the Holders of
Securities or that, as determined by the Board of Directors of the Company in
good faith, does not adversely affect the legal rights of any such Holder under
the Indenture, the Securities or the Security Guarantees, to comply with
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA or to provide for the issuance of Additional Securities
in compliance with Article II and Section 4.03 of the Indenture.

14.      Defaults and Remedies
         ---------------------

         Under the Indenture, an Event of Default occurs if there is: (i)
default for 30 days in the payment when due of interest on, or Liquidated
Damages with respect to, the Securities (whether or not prohibited by Article X
in the Indenture); (ii) default in payment when due of the principal of or
premium, if any, on the Securities (including the failure to make a payment to
purchase Securities tendered pursuant to a Change of Control Offer or an Asset
Sale Offer) (whether or not prohibited by Article X in the Indenture); (iii)
failure by the Company for 30 days after receipt of notice from the Trustee or
the Holders of at least 25% in principal amount of the then outstanding
Securities to comply with Section 4.03, 4.04, 4.06, 4.08 or 5.01 of the
Indenture; (iv) failure by the Company for 60 days after receipt of notice from
the Trustee or the Holders of at least 25% in principal amount of the then
outstanding Securities specifying such failure to comply with any of its other
agreements in the Indenture or the Securities; (v) the failure by the Company or
any Restricted Subsidiary that is a Significant Subsidiary to pay any Debt
within any applicable grace period after final maturity or acceleration by the
holders thereof because of a default if the total amount of all such Debt unpaid
or accelerated at the time exceeds $25.0 million; (vi) any judgment or decree
for the payment of money in excess of $25.0 million (net of any insurance or
indemnity payments actually received in respect thereof prior to or within 60
days from the entry thereof, or to be received in respect thereof in the event
any appeal thereof shall be unsuccessful) is entered against the Company or any
Significant Subsidiary that is a Restricted Subsidiary and is not discharged,
waived or stayed and either (A) an enforcement proceeding has been commenced by
any creditor upon such judgment or decree or (B) there is a period of 60 days
following the entry of such judgment or decree during which such judgment or
decree is not discharged, waived or the execution thereof stayed; (vii) any
Security Guarantee by a Guarantor that is a Significant Subsidiary shall be held
in any judicial proceeding to be unenforceable or invalid or, except as
permitted by the Indenture, shall cease for any reason to be in full force and
effect or any Guarantor, or any Person acting on behalf of any Guarantor, shall
deny or disaffirm its obligations under its Security Guarantee; or (viii)
certain events of bankruptcy or insolvency with respect to the Company or any of
its Restricted Subsidiaries that is a Significant Subsidiary.

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

                                    Exhibit B
                                    ---------
                                       vii
<PAGE>

committee of its Trust Officers in good faith determines that withholding notice
is in the interest of the Holders.

15.      Trustee Dealings with the Company
         ---------------------------------

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

16.      No Personal Liability of Directors, Officers, Employees and
         -----------------------------------------------------------
         Stockholders
         ------------

         No past, present or future director, officer, employee, incorporator,
agent or stockholder or Affiliate of the Company, as such, shall have any
liability for any obligations of the Company under the Securities, the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. No past, present or future director, officer, employee,
incorporator, agent or stockholder or Affiliate of any of the Guarantors, as
such, shall have any liability for any obligations of the Guarantors under the
Security Guarantees, the Indenture or for any claim based on, in respect of, or
by reason of, such obligations or their creation. Each holder of Securities and
Security Guarantees by accepting a Security and a Security Guarantee waives and
releases all such liabilities. The waiver and release are part of the
consideration for issuance of the Securities and the Security Guarantees. Such
waiver may not be effective to waive liabilities under the federal securities
laws and it is the view of the SEC that such a waiver is against public policy.

17.      Governing Law
         -------------

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

18.      Authentication
         --------------

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

19.      Abbreviations
         -------------

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

                                    Exhibit B
                                    ---------
                                      viii
<PAGE>

20.      CUSIP Numbers
         -------------

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

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

                                  JOSTENS, INC.
                            5501 Norman Center Drive
                          Minneapolis, Minnesota 55437

                             Attention of Secretary

                                    Exhibit B
                                    ---------
                                       ix
<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

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

---------------------------------------
   (Insert assignee's soc. sec. or tax I.D. No.)

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

Date:  ________________ Your Signature:  _____________________

Signature Guarantee:_______________________________________
                     (Signature must be guaranteed by a
                     participant in a recognized signature
                     guarantee medallion program)

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

                                    Exhibit B
                                    ---------
                                        x
<PAGE>

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

         The following increases or decreases in this Global Security have been
made:

<TABLE>
<CAPTION>

<S>                      <C>                    <C>                    <C>                    <C>
Date of                  Amount of decrease     Amount of increase     Principal amount of    Signature of
Exchange                 in Principal Amount    in Principal Amount    this Global Security   authorized signatory
                         of this Global         of this Global         following such         of Trustee or
                         Security               Security               decrease or increase   Securities Custodian

</TABLE>

                                    Exhibit B
                                    ---------
                                       xi
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06 or 4.08 of the Indenture, check the box:

         *  4.06 Asset Sale  *  4.08 Change of Control

         If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.06 or 4.08 of the Indenture, state the amount:
$ _____.

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

                                            ------------------
                                            Tax I.D. number

Signature Guarantee:_______________________________________
                    (Signature must be guaranteed by a
                    participant in a recognized signature
                    guarantee medallion program)

                                    Exhibit B
                                    ---------
                                       xii
<PAGE>

                                                                       Exhibit C

                   [FORM OF FACE OF PRIVATE EXCHANGE SECURITY]

                           [GLOBAL SECURITIES LEGEND]

         UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO
THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN. 2

                         [RESTRICTED SECURITIES LEGEND]

         THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER
THE SECURITIES ACT OR (C) IT IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE
501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN "ACCREDITED INVESTOR"),
(2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS
SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO JOSTENS, 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)
INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER,
FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON

----------
2  This paragraph should only be added if the security is issued in global form

                                    Exhibit C
                                    ---------
                                        i
<PAGE>

TRANSFER OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE
TRUSTEE FOR THIS SECURITY), (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT (IF AVAILABLE),
(E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF
COUNSEL IF JOSTENS, INC. SO REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE
TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY
WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE PROPOSED
TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER,
FURNISH TO THE TRUSTEE AND JOSTENS, INC. SUCH CERTIFICATIONS, LEGAL OPINIONS OR
OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN,
THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE
MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

                                  JOSTENS, INC.

                    12 3/4% SENIOR SUBORDINATED NOTE DUE 2010

         No. ___                                                     CUSIP No.
                                                                    $_________

         JOSTENS, INC., a Minnesota corporation (the "Company"), promises to pay
to _______________, or its registered assigns, the principal sum of ___________
in U.S. Dollars on May 1, 2010.

         Interest Payment Dates:              May 1 and November 1

         Record Dates:                        April 15 and October 15

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

                                           JOSTENS, INC.,

                                           by _______________________________
                                              Name:
                                              Title:

                                    Exhibit C
                                    ---------
                                       ii
<PAGE>

Dated:

TRUSTEE'S CERTIFICATE OF
    AUTHENTICATION
THE BANK OF NEW YORK
as Trustee, certifies that
this is one of the Securities              [Seal]
referred to in the Indenture,
  by
    -------------------------
       Authorized Signatory

                                    Exhibit C
                                    ---------
                                       iii
<PAGE>

                   [FORM OF REVERSE SIDE OF INITIAL SECURITY]

                   12 3/4 % Senior Subordinated Note due 2010

1.       Interest
         --------

         JOSTENS, INC., a Minnesota corporation (the "Company"), promises to pay
interest on the principal amount of this Security at the rate per annum shown
above and shall pay Liquidated Damages, if any, payable pursuant to the relevant
Registration Rights Agreement.

         The Company will pay interest and Liquidated Damages, if any,
semi-annually in arrears on May 1 and November 1 of each year commencing on
November 1, 2000. Interest on the Securities will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from the
Issue Date with respect to this Security. Interest will be computed on the basis
of a 360-day year comprised of twelve 30-day months. The Company shall pay
interest on overdue principal at the rate borne by the Securities, and it shall
pay interest on overdue installments of interest at the same rate to the extent
lawful.

2.       Method of Payment
         -----------------

         The Company will pay interest (except defaulted interest) on and
Liquidated Damages, if any, in respect of the Securities to the Persons who are
registered holders of Securities at the close of business on the 15th of April
or the 15th of October immediately preceding the interest payment date even if
Securities are canceled after the record date and on or before the interest
payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts. However, the Company may pay principal and interest by check
payable in such money or by wire transfer of federal funds.

3.       Paying Agent and Registrar
         --------------------------

         Initially, THE BANK OF NEW YORK (the "Trustee") will act as Paying
Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice to the Holders. The Company or any
domestically organized Wholly Owned Restricted Subsidiary may act as Paying
Agent, Registrar or co-registrar.

4.       Indenture
         ---------

         The Company issued the Securities under an Indenture dated as of May
10, 2000 (the "Indenture"), among the Company, the Initial Guarantor and the
Trustee. The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the TIA. Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Securities are subject to all such terms, and Securityholders are
referred to the Indenture and the TIA for a statement of those terms.

                                    Exhibit C
                                    ---------
                                       iv
<PAGE>

         The Securities are unsecured senior subordinated obligations of the
Company and are limited to $350,000,000 in aggregate principal amount
outstanding, of which $225,000,000 in aggregate principal amount will be
initially issued on the Closing Date. Subject to the conditions set forth in the
Indenture, the Company may issue up to an additional $125,000,000 aggregate
principal amount of Additional Securities. This Security is one of the Initial
Securities referred to in the Indenture. The Securities include the Initial
Securities, the Additional Securities and any Exchange Securities and Private
Exchange Securities issued in exchange for the Initial Securities pursuant to
the Indenture. The Initial Securities, the Additional Securities, the Exchange
Securities and the Private Exchange Securities are treated as a single class of
securities under the Indenture. The Indenture imposes certain limitations on the
incurrence of Debt by the Company and its Restricted Subsidiaries; the payment
of dividends and other payments by the Company and its Restricted Subsidiaries;
Investments; sales of assets of the Company and Restricted Subsidiaries; certain
transactions with Affiliates; the lines of business in which the Company and its
Restricted Subsidiaries may operate; Liens; and consolidations, mergers and
transfers of all or substantially all of the Company's or a Guarantor's assets.
In addition, the Indenture prohibits certain restrictions on distributions from
Restricted Subsidiaries.

5.       Optional Redemption
         -------------------

         Except as set forth in the next two paragraphs, the Securities may not
be redeemed at the Company's option prior to May 1, 2005. Thereafter, the
Securities will be subject to redemption at any time at the option of the
Company, in whole or in part, upon not less than 30 nor more than 60 days'
notice, at the redemption prices (expressed as percentages of principal amount)
set forth below plus accrued and unpaid interest and Liquidated Damages thereon,
if any, to the applicable redemption date (subject to the right of Holders on
the relevant record date to receive interest due on the relevant interest
payment date), if redeemed during the twelve-month period beginning on May 1 of
the years indicated below:

                                               Redemption
         Period                                  Price
         ------                                ---------
         2005                                   106.375%
         2006                                   104.250%
         2007                                   102.125%
         2008 and thereafter                    100.000%

         In addition, at any time and from time to time, prior to May 1, 2003,
the Company may redeem up to 35% of the aggregate principal amount of Securities
issued under the Indenture at a redemption price of 112.75% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages thereon,
if any, to the redemption date (subject to the right of Holders on the relevant
record date to receive interest due on the relevant interest payment date), with
the net cash proceeds of an underwritten registered public offering of common
stock of the Company; provided that at least 65% of the aggregate principal
amount of Securities issued under the Indenture remains outstanding immediately
after the occurrence of any such redemption; and provided further, that such
redemption shall occur within 90 days of the date of the closing of such public
offering.

                                    Exhibit C
                                    ---------
                                        v
<PAGE>

         At any time on or prior to May 1, 2005, the Securities may be redeemed
as a whole but not in part at the option of the Company upon the occurrence of a
Change of Control, upon not less than 30 nor more than 60 days' prior notice
(but in no event may any such redemption occur more than 120 days after the
occurrence of such Change of Control) mailed by first-class mail to each
Holder's registered address, at a redemption price equal to 100% of the
principal amount thereof plus the Applicable Premium as of, and accrued but
unpaid interest and Liquidated Damages, if any, to, the redemption date, subject
to the right of Holders on the relevant record date to receive interest due on
the relevant interest payment date.

6.       Notices of Redemption
         ---------------------

         Notices of redemption shall be mailed by first-class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Securities to be redeemed at its registered address all in accordance with the
Indenture. If less than all of the Securities are to be redeemed at any time,
selection of Securities for redemption will be made by the Trustee in compliance
with the requirements of the principal national securities exchange, if any, on
which the Securities are listed, or, if the Securities are not so listed, on a
pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate; provided that no Securities of $1,000 or less shall be redeemed in
part; provided further, however, that if a partial redemption is made with the
proceeds of a public offering of common stock, selection of the Securities or
portions thereof for redemption shall be made by the Trustee on a pro rata basis
only or on as nearly a pro rata basis as is practicable (subject to DTC
procedures), unless such method is otherwise prohibited. If any Security is to
be redeemed in part only, the notice of redemption that relates to such Security
shall state the portion of the principal amount thereof to be redeemed. On and
after the redemption date, interest ceases to accrue on Securities or portions
of them called for redemption.

7.       Repurchase at the Option of the Holder
         --------------------------------------

         Upon a Change of Control, any Holder of Securities will have the right,
subject to certain conditions set forth in the Indenture, to require the Company
to repurchase all or any part (equal to $1,000 or an integral multiple thereof)
of the Securities of such Holder at a purchase price equal to 101% of the
aggregate principal amount of the Securities to be repurchased plus accrued and
unpaid interest and Liquidated Damages thereon, if any, to the date of
repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date that is on or
prior to the date of repurchase) as provided in, and subject to the terms of,
the Indenture.

8.       Subordination
         -------------

         The Securities are subordinated to Senior Debt of the Company, as
defined in the Indenture. To the extent provided in the Indenture, Senior Debt
of the Company must be paid before the Securities may be paid. The Company
agrees, and each Securityholder by accepting a Security agrees, to the
subordination provisions contained in the Indenture and authorizes the Trustee
to give it effect and appoints the Trustee as attorney-in-fact for such purpose.

                                    Exhibit C
                                    ---------
                                       vi
<PAGE>

9.       Denominations; Transfer; Exchange
         ---------------------------------

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

10.      Persons Deemed Owners
         ---------------------

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

11.      Unclaimed Money
         ---------------

         If money for the payment of principal or interest remains unclaimed for
two years, the Paying Agent shall pay the money back to the Company at its
request, or if then held by the Company or a Wholly Owned Restricted Subsidiary,
shall be discharged from such trust (unless an abandoned property law designates
another Person for payment thereof). After any such payment, Holders entitled to
the money must look only to the Company for payment thereof, and all liability
of the Paying Agent with respect to such money, and all liability of the Company
or such permitted Wholly Owned Restricted Subsidiary as trustee thereof, shall
thereupon cease.

12.      Discharge and Defeasance
         ------------------------

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

13.      Amendment, Waiver
         -----------------

         Subject to certain exceptions set forth in the Indenture, (i) the
Indenture, the Securities or the Security Guarantees may be amended or
supplemented with the written consent of the Holders of at least a majority in
principal amount outstanding of the Securities and (ii) any existing default or
noncompliance with any provision of the Indenture, the Securities or the
Security Guarantees (other than payment of principal, premium, if any,
Liquidated Damages, if any, and interest) may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Securities.
Subject to certain exceptions set forth in the Indenture, without the consent of
any Securityholder, the Company and the Trustee may amend the Indenture or the
Securities to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Securities in addition to or in place of certificated Securities
(provided that the uncertificated Securities are issued in registered form for
purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f)(2)(B) of the

                                    Exhibit C
                                    ---------
                                       vii
<PAGE>

Code), to provide for the assumption of the Company's or any Guarantor's
obligations to Holders of Securities in the case of a merger, consolidation or
sale of assets, to release any Security Guarantee in accordance with the
provisions of the Indenture, to provide for additional Guarantors, to make any
change that would provide any additional rights or benefits to the Holders of
Securities or that, as determined by the Board of Directors of the Company in
good faith, does not adversely affect the legal rights of any such Holder under
the Indenture, the Securities or the Security Guarantees, to comply with
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA or to provide for the issuance of Additional Securities
in compliance with Article II and Section 4.03 of the Indenture.

14.      Defaults and Remedies
         ---------------------

         Under the Indenture, an Event of Default occurs if there is: (i)
default for 30 days in the payment when due of interest on, or Liquidated
Damages with respect to, the Securities (whether or not prohibited by Article X
in the Indenture); (ii) default in payment when due of the principal of or
premium, if any, on the Securities (including the failure to make a payment to
purchase Securities tendered pursuant to a Change of Control Offer or an Asset
Sale Offer) (whether or not prohibited by Article X in the Indenture); (iii)
failure by the Company for 30 days after receipt of notice from the Trustee or
the Holders of at least 25% in principal amount of the then outstanding
Securities to comply with Section 4.03, 4.04, 4.06, 4.08 or 5.01 of the
Indenture; (iv) failure by the Company for 60 days after receipt of notice from
the Trustee or the Holders of at least 25% in principal amount of the then
outstanding Securities specifying such failure to comply with any of its other
agreements in the Indenture or the Securities; (v) the failure by the Company or
any Restricted Subsidiary that is a Significant Subsidiary to pay any Debt
within any applicable grace period after final maturity or acceleration by the
holders thereof because of a default if the total amount of all such Debt unpaid
or accelerated at the time exceeds $25.0 million; (vi) any judgment or decree
for the payment of money in excess of $25.0 million (net of any insurance or
indemnity payments actually received in respect thereof prior to or within 60
days from the entry thereof, or to be received in respect thereof in the event
any appeal thereof shall be unsuccessful) is entered against the Company or any
Significant Subsidiary that is a Restricted Subsidiary and is not discharged,
waived or stayed and either (A) an enforcement proceeding has been commenced by
any creditor upon such judgment or decree or (B) there is a period of 60 days
following the entry of such judgment or decree during which such judgment or
decree is not discharged, waived or the execution thereof stayed; (vii) any
Security Guarantee by a Guarantor that is a Significant Subsidiary shall be held
in any judicial proceeding to be unenforceable or invalid or, except as
permitted by the Indenture, shall cease for any reason to be in full force and
effect or any Guarantor, or any Person acting on behalf of any Guarantor, shall
deny or disaffirm its obligations under its Security Guarantee; or (viii)
certain events of bankruptcy or insolvency with respect to the Company or any of
its Restricted Subsidiaries that is a Significant Subsidiary.

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

                                    Exhibit C
                                    ---------
                                      viii
<PAGE>

committee of its Trust Officers in good faith determines that withholding notice
is in the interest of the Holders.

15.      Trustee Dealings with the Company
         ---------------------------------

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

16.      No Personal Liability of Directors, Officers, Employees and
         -----------------------------------------------------------
         Stockholders
         ------------

         No past, present or future director, officer, employee, incorporator,
agent or stockholder or Affiliate of the Company, as such, shall have any
liability for any obligations of the Company under the Securities, the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. No past, present or future director, officer, employee,
incorporator, agent or stockholder or Affiliate of any of the Guarantors, as
such, shall have any liability for any obligations of the Guarantors under the
Security Guarantees, the Indenture or for any claim based on, in respect of, or
by reason of, such obligations or their creation. Each holder of Securities and
Security Guarantees by accepting a Security and a Security Guarantee waives and
releases all such liabilities. The waiver and release are part of the
consideration for issuance of the Securities and the Security Guarantees. Such
waiver may not be effective to waive liabilities under the federal securities
laws and it is the view of the SEC that such a waiver is against public policy.

17.      Governing Law
         -------------

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

18.      Authentication
         --------------

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

19.      Abbreviations
         -------------

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

                                    Exhibit C
                                    ---------
                                       ix
<PAGE>

20.      CUSIP Numbers
         -------------

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

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

                                  JOSTENS, INC.
                            5501 Norman Center Drive
                          Minneapolis, Minnesota 55437

                             Attention of Secretary

                                    Exhibit C
                                    ---------
                                        x
<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

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

--------------------------------------
   (Insert assignee's soc. sec. or tax I.D. No.)

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

Date:  ________________ Your Signature:  _____________________

Signature Guarantee:_______________________________________
                    (Signature must be guaranteed by a
                    participant in a recognized signature
                    guarantee medallion program)

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

                                    Exhibit C
                                    ---------
                                       xi
<PAGE>

          CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OF
                         TRANSFER RESTRICTED SECURITIES

Reference is hereby made to that certain Indenture dated May 10, 2000 (the
"Indenture") between Jostens, Inc., as Issuer (the "Company"), the Initial
Guarantor (as defined therein) and The Bank of New York, as trustee (the
"Trustee"). Capitalized terms used but not defined herein shall have the
meanings set forth in the Indenture.

This certificate relates to $_________ principal amount of Securities held in
(check applicable space) ____ book-entry or _____ definitive form by the
undersigned.

The undersigned (check one box below):

*        has requested the Trustee by written order to deliver in exchange for
         its beneficial interest in the Global Security held by the Depository a
         Security or Securities in definitive, registered form of authorized
         denominations and an aggregate principal amount equal to its beneficial
         interest in such Global Security (or the portion thereof indicated
         above);

*        has requested the Trustee by written order to exchange or register the
         transfer of a Security or Securities. In connection with any transfer
         of any of the Securities evidenced by this certificate occurring prior
         to the expiration of the periods referred to in Rule 144(k) under the
         Securities Act of 1933, as amended, the undersigned confirms that such
         Securities are being transferred in accordance with its terms:

CHECK ONE BOX BELOW:

         (1)      * to the Company or any of its subsidiaries; or

         (2)      * pursuant to an effective registration statement under the
                  Securities Act of 1933, as amended; or

         (3)      * inside the United States to a "qualified institutional
                  buyer" (as defined in Rule 144A under the Securities Act of
                  1933, as amended) that purchases for its own account or for
                  the account of a qualified institutional buyer to whom notice
                  is given that such transfer is being made in reliance on Rule
                  144A under the Securities Act of 1933, as amended, in each
                  case pursuant to and in compliance with Rule 144A thereunder;
                  or

         (4)      * outside the United States in an offshore transaction within
                  the meaning of Regulation S under the Securities Act of 1933,
                  as amended, in compliance with Rule 904 thereunder; or

         (5)      * inside the United States to an institutional "accredited
                  investor" (as defined in Rule 501(a)(1), (2), (3) or (7) under
                  the Securities Act of 1933, as amended) that has furnished to
                  the Trustee a signed letter containing certain

                                    Exhibit C
                                    ---------
                                       xii
<PAGE>

                  representations and agreements (the form of which letter is
                  attached to the Indenture as Exhibit D and which may be
                  obtained from the Trustee); or

         (6)      * pursuant to another available exemption from registration
                  provided by Rule 144 under the Securities Act of 1933, as
                  amended; or

         (7)      * in accordance with another exemption from the registration
                  requirements of the Securities Act of 1933, as amended.

Unless one of the boxes is checked, the Trustee will refuse to register any of
the Securities evidenced by this certificate in the name of any person other
than the registered holder thereof; provided, however, that if box (4), (5) or
(6) is checked, the Trustee may require, prior to registering any such transfer
of the Securities, such legal opinions, certifications and other information as
the Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, as amended, such as the
exemption provided by Rule 144 thereunder.

                                                       ------------------------
                                                              Signature

Signature Guarantee:________________
         (Signature must be guaranteed by a
         participant in a recognized signature
         guarantee medallion program)

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

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

Dated:  ________________                       ______________________________
                                               NOTICE:  To be executed by
                                                        an executive officer

                                    Exhibit C
                                    ---------
                                      xiii
<PAGE>

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

         The following increases or decreases in this Global Security have been
made:

<TABLE>
<CAPTION>

<S>                      <C>                    <C>                    <C>                    <C>
Date of                  Amount of decrease     Amount of increase     Principal amount of    Signature of
Exchange                 in Principal Amount    in Principal Amount    this Global Security   authorized signatory
                         of this Global         of this Global         following such         of Trustee or
                         Security               Security               decrease or increase   Securities Custodian

</TABLE>

                                    Exhibit C
                                    ---------
                                       xiv
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06 or 4.08 of the Indenture, check the box:

         *  4.06 Asset Sale  *  4.08 Change of Control

         If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.06 or 4.08 of the Indenture, state the amount:
$ _____.

Date:  ____________________ Your Signature:  __________________
                            (Sign exactly as your name appears
                            on the other side of the Security)

                                             ------------------
                                             Tax I.D. number

Signature Guarantee:_______________________________________
                    (Signature must be guaranteed by a
                    participant in a recognized signature
                    guarantee medallion program)

                                    Exhibit C
                                    ---------
                                       xv
<PAGE>

                                                                       Exhibit D

               [FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION
              WITH TRANSFER TO INSTITUTIONAL ACCREDITED INVESTORS]

Jostens, Inc.
The Bank of New York
101 Barclay Street, 21st Floor West
New York, NY 10286
Attention:  Corporate Trust Trustee Administration
Dear Ladies and Gentlemen:

         This certificate is delivered to request a transfer of $______
principal amount of the 12 3/4% Senior Subordinated Notes due 2010 (the
"Securities") of Jostens, Inc. (the "Company").

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

         Name:  ___________________________________

         Address:  ________________________________

         Taxpayer ID Number:  _____________________

         The undersigned represents and warrants to you that:

         1. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the
"Securities Act")), and we are acquiring the Securities not with a view to, or
for offer or sale in connection with, any distribution in violation of the
Securities Act. We have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risk of our investment in
the Securities and invest in or purchase securities similar to the Securities in
the normal course of our business. We and any accounts for which we are acting
are each able to bear the economic risk of our or its investment.

         2. We understand that the Securities have not been registered under the
Securities Act and, unless so registered, may not be sold except as permitted in
the following sentence. We agree on our own behalf and on behalf of any investor
account for which we are purchasing Securities to offer, sell or otherwise
transfer such Securities prior to the later of the date which is two years after
(X) the later of (A) the date of original issue or (B) the date on which this
Security was acquired from an affiliate of the Company or (Y) the date that is
three months after the last date on which the Company or any affiliate of the
Company was the owner of such Securities (or any predecessor thereto) only (a)
to Jostens, 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) inside the United States to an Accredited Investor that, prior to such
transfer, furnishes (or has furnished on its behalf by a U.S. Broker-Dealer) to
the Trustee a signed letter containing certain representations and agreements
relating to the restrictions on transfer of this security (the form of which
letter can be obtained from the Trustee for this

                                    Exhibit D
                                    ---------
                                        i
<PAGE>

Security), (d) outside the United States in an offshore transactions in
compliance with Rule 904 under the Securities Act (if available), (e) pursuant
to the exemption from registration provided by Rule 144 under the Securities Act
(if available), (f) in accordance with another exemption from the registration
requirements of the Securities Act (and based upon an opinion of counsel if
Jostens, Inc. so requests), or (g) pursuant to an effective registration
statement under the Securities Act, subject in each of the foregoing cases to
any requirement of law that the disposition of our property or the property of
such investor account or accounts be at all times within our or their control
and in compliance with any applicable state securities laws. In connection with
any transfer of this security prior to the later of the date which is two years
after (X) the later of (A) the date of original issue or (B) the date on which
this Security was acquired from an affiliate of the Company or (Y) the date that
is three months after the last date on which the Company or any affiliate of the
Company was the owner of such Securities (or any predecessor thereto), pursuant
to clause (c), (d) or (f) above if the holder must, prior to such transfer,
furnish to the Trustee and Jostens, Inc. such certifications, legal opinions or
other information as either of them may reasonably require to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act. As used herein,
the terms "offshore transaction, " "United States" and "U.S. person" have the
meaning given to them by Regulation S under the Securities Act.

                                         TRANSFEREE:____________________________

                                         BY_____________________________________

                                    Exhibit D
                                    ---------
                                       ii
<PAGE>

                                                                       Exhibit E

                      [FORM OF CERTIFICATE TO BE DELIVERED
               IN CONNECTION WITH TRANSFERS PURSUANT TO RULE 144A]

Jostens, Inc.
The Bank of New York
101 Barclay Street, 21st Floor West
New York, New York 10286
Attention:  Corporate Trust Trustee Administration

         Re:  Jostens, Inc. (the "Company")
              12 3/4% Senior Subordinated Notes due 2010 (the "Securities").

Ladies and Gentlemen:

         In connection with our proposed sale of $________ aggregate principal
amount at maturity of the Securities, we hereby certify that such transfer is
being effected pursuant to and in accordance with Rule 144A ("Rule 144A") under
the United States Securities Act of 1933, as amended (the "Securities Act"),
and, accordingly, we hereby further certify that the Securities are being
transferred to a person that we reasonably believe is purchasing the Securities
for its own account, or for one or more accounts with respect to which such
person exercises sole investment discretion, and such person and each such
account is a "qualified institutional buyer" within the meaning of Rule 144A in
a transaction meeting the requirements of Rule 144A and such Securities are
being transferred in compliance with any applicable blue sky securities laws of
any state of the United States.

         You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                            Very truly yours,

                                            ------------------------------------
                                                     [Name of Transferor]

                                            By:
                                               ---------------------------------
                                                     Authorized Signature

                                    Exhibit E
                                    ---------
                                        i
<PAGE>

                                                                       Exhibit F

                      [FORM OF CERTIFICATE TO BE DELIVERED
                          IN CONNECTION WITH TRANSFERS
                            PURSUANT TO REGULATION S]

Jostens, Inc.
The Bank of New York
101 Barclay Street, 21st Floor West
New York, New York 10286
Attention:  Corporate Trust Trustee Administration

         Re:  Jostens, Inc. (the "Company")
              12 3/4% Senior Subordinated Notes due 2010 (the "Securities").

Ladies and Gentlemen:

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

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

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

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

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

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

         The Company and you 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.

                                    Exhibit F
                                    ---------
                                        i
<PAGE>

                                            Very truly yours,

                                            ------------------------------------
                                                     [Name of Transferor]

                                            by
                                               ---------------------------------
                                                     Authorized Signatory

                                    Exhibit F
                                    ---------
                                       ii
<PAGE>

                                                                       Exhibit G

               [FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION
                    WITH TRANSFERS PURSUANT TO REGULATION S]

Jostens, Inc.
The Bank of New York
101 Barclay Street, 21st Floor West
New York, NY 10286

Attention:  Corporate Trust Trustee Administration

         Re:  Jostens, Inc. (the "Company")
              12 3/4 % Senior Subordinated Notes due 2010 (the "Securities")

Dear Ladies and Gentlemen:

         This letter relates to U.S. $_______________ principal amount of
Securities represented by a Security (the "Legended Security") which bears a
legend outlining restrictions upon transfer of such Legended Security. Pursuant
to Section 2.01 of the Indenture dated as of May 10, 2000 (the "Indenture")
relating to the Securities, we hereby certify that we are (or we will hold such
securities on behalf of) a person outside the United States to whom the
Securities could be transferred in accordance with Rule 904 of Regulation S
promulgated under the U.S. Securities Act of 1933. Accordingly, you are hereby
requested to exchange the legended certificate for an unlegended certificate
representing an identical principal amount at maturity of Securities, all in the
manner provided for in the Indenture.

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

                                         Very truly yours,

                                         --------------------------------
                                         [Name of Holder]

                                         By:
                                            -----------------------------
                                               Authorized Signature

                                    Exhibit G
                                    ---------
                                        i<PAGE>

                                                                     EXHIBIT 4.2

--------------------------------------------------------------------------------

                          REGISTRATION RIGHTS AGREEMENT

                            Dated as of May 10, 2000

                                      Among

                                  JOSTENS, INC.

                                       and

                           THE GUARANTOR NAMED HEREIN

                                   as Issuers,

                                       and

                         DEUTSCHE BANK SECURITIES INC.,
                                 UBS WARBURG LLC
                                       and
                              GOLDMAN, SACHS & CO.
                              as Initial Purchasers

                   12 3/4% Senior Subordinated Notes due 2010

--------------------------------------------------------------------------------
<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is dated as of
May 10, 2000, among JOSTENS, INC., a Minnesota corporation (the "Company"),
AMERICAN YEARBOOK COMPANY, INC., a Kansas corporation (collectively with any
entity that in the future executes a supplemental indenture pursuant to which
such entity agrees to guarantee the Notes (as hereinafter defined), the
"Guarantors" and, together with the Company, the "Issuers"), and DEUTSCHE BANK
SECURITIES INC., UBS WARBURG LLC and GOLDMAN, SACHS & CO., as initial purchasers
(the "Initial Purchasers").

         This Agreement is entered into in connection with the Purchase
Agreement by and among the Issuers and the Initial Purchasers, dated as of May
10, 2000 (the "Purchase Agreement"), which provides for, among other things, the
sale by the Company to the Initial Purchasers of 225,000 units consisting in the
aggregate of $225,000,000 aggregate principal amount of the Company's 12 3/4%
Senior Subordinated Notes due 2010 (the "Notes"), guaranteed by the Guarantors
(the "Guarantees") and Warrants to purchase 425,060 shares of the Company's
Class E Common Stock. The Notes and the Guarantees are collectively referenced
to herein as the "Securities". In order to induce the Initial Purchasers to
enter into the Purchase Agreement, the Issuers have agreed to provide the
registration rights set forth in this Agreement for the benefit of the Initial
Purchasers and any subsequent holder or holders of the Securities. The execution
and delivery of this Agreement is a condition to the Initial Purchasers'
obligation to purchase the Securities under the Purchase Agreement.

         The parties hereby agree as follows:

1.       Definitions

         As used in this Agreement, the following terms shall have the following
meanings:

         Advice: See the last paragraph of Section 5 hereof.

         Agreement: See the introductory paragraphs hereto.

         Applicable Period: See Section 2(b) hereof.

         Business Day: Any day that is not a Saturday, Sunday or a day on which
banking institutions in New York are authorized or required by law to be closed.

         Closing Date: The Closing Date as defined in the Purchase Agreement.

         Company: See the introductory paragraphs hereto.
<PAGE>

                                      -2-

         Effectiveness Date: The 180th day after the Issue Date; provided,
however, that with respect to any Shelf Registration, the Effectiveness Date
shall be the 135th day after the delivery of a Shelf Notice as required pursuant
to Section 2(c) hereof; provided further, however, that if the Effectiveness
Date would otherwise fall on a day that is not a Business Day, then the
Effectiveness Date shall be the next succeeding Business Day.

         Effectiveness Period: See Section 3 hereof.

         Event Date: See Section 4 hereof.

         Exchange Act: The Securities Exchange Act of 1934, and the rules and
regulations of the SEC promulgated thereunder.

         Exchange Notes: See Section 2(a) hereof.

         Exchange Offer: See Section 2(a) hereof.

         Exchange Offer Registration Statement: See Section 2(a) hereof.

         Exchanging Dealer: See Section 2(b) hereof.

         Filing Date: (A) With respect to an Exchange Offer Registration
Statement, the 120th day after the Issue Date; and (B) with respect to a Shelf
Registration Statement, the 90th day after the delivery of a Shelf Notice as
required pursuant to Section 2(c) hereof; provided further, however, that if the
Effectiveness Date would otherwise fall on a day that is not a Business Day,
then the Effectiveness Date shall be the next succeeding Business Day.

         Guarantees: See the introductory paragraphs hereto.

         Guarantors: See the introductory paragraphs hereto.

         Holder: Any holder of a Registrable Note or Registrable Notes and any
Initial Purchaser holding any Notes, Exchange Notes or Private Exchange Notes
during the Market-Making Period.

         Indemnified Person: See Section 7(c) hereof.

         Indemnifying Persons: See Section 7(c) hereof.

         Indenture: The Indenture, dated as of May 10, 2000, by and among the
Issuers and The Bank of New York, as Trustee, pursuant to which the Notes are
being issued, as amended or supplemented from time to time in accordance with
the terms thereof.

         Information: See Section 5(o) hereof.
<PAGE>

                                      -3-

         Initial Purchasers: See the introductory paragraphs hereto.

         Inspectors: See Section 5(o) hereof.

         Issue Date: May 10, 2000, the date of original issuance of the Notes.

         Issuers: See the introductory paragraphs hereto.

         Liquidated Damages: See Section 4 hereof.

         Market-Making Period: See Section 3(a) hereof.

         NASD: See Section 5(s) hereof.

         Notes: See the introductory paragraphs hereto.

         Participant: See Section 7(a) hereof.

         Person: An individual, trustee, corporation, partnership, limited
liability company, joint stock company, trust, unincorporated association,
union, business association, firm or other legal entity.

         Private Exchange: See Section 2(b) hereof.

         Private Exchange Notes: See Section 2(b) hereof.

         Prospectus: The prospectus included in any Registration Statement
(including, without limitation, any prospectus subject to completion and a
prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
under the Securities Act and any term sheet filed pursuant to Rule 434 under the
Securities Act), as amended or supplemented by any prospectus supplement, and
all other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

         Purchase Agreement: See the introductory paragraphs hereof.

         Records: See Section 5(o) hereof.

         Registrable Notes: Each Note (and the related Guarantees) upon its
original issuance and at all times subsequent thereto, each Exchange Note (and
the related Guarantees) as to which Section 2(c)(iii)(B) hereof is applicable
upon original issuance and at all times subsequent thereto and each Private
Exchange Note (and the related Guarantees) upon original issuance thereof and at
all times subsequent thereto, until, in each case, the earliest to
<PAGE>

                                      -4-

occur of (i) a Registration Statement (other than, with respect to any Exchange
Note as to which Section 2(c)(iii)(B) hereof is applicable, the Exchange Offer
Registration Statement) covering such Note, Exchange Note or Private Exchange
Note has been declared effective by the SEC and such Note, Exchange Note or such
Private Exchange Note (and the related Guarantees), as the case may be, has been
disposed of in accordance with such effective Registration Statement, (ii) such
Note has been exchanged pursuant to the Exchange Offer for an Exchange Note or
Exchange Notes (and the related Guarantees) that may be resold without
restriction under state and federal securities laws, (iii) such Note, Exchange
Note or Private Exchange Note (and the related Guarantees), as the case may be,
ceases to be outstanding for purposes of the Indenture, (iv) such Note, Exchange
Note or Private Exchange Note (and the related Guarantees), as the case may be,
in the reasonable opinion of the Company, may be resold without restriction
pursuant to Rule 144(k) (as amended or replaced) under the Securities Act or (v)
following the exchange by an Exchanging Dealer in the Exchange Offer of a Note
for an Exchange Note, the date on which such Exchange Note is sold to a
purchaser who receives from such Exchanging Dealer on or prior to the date of
such sale a copy of the Prospectus contained in the Exchange Offer Registration
Statement; provided, however, that each Note, Exchange Note and Private Exchange
Note shall be considered a Registrable Note from the time that any Initial
Purchaser shall give notice to the Company pursuant to Section 2(c)(iii)(D)(y)
hereof until the end of the Market-Making Period.

         Registration Default: See Section 4(a) hereof.

         Registration Statement: Any registration statement of the Issuers that
covers any of the Notes, the Exchange Notes or the Private Exchange Notes (and
the related Guarantees) filed with the SEC under the Securities Act, including
the Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits, and all material incorporated
by reference or deemed to be incorporated by reference in such registration
statement.

         Restricted Holder: See Section 2(c) hereof.

         Rule 144: Rule 144 under the Securities Act.

         Rule 144A: Rule 144A under the Securities Act.

         Rule 405: Rule 405 under the Securities Act.

         Rule 415: Rule 415 under the Securities Act.

         Rule 424: Rule 424 under the Securities Act.

         SEC: The U.S. Securities and Exchange Commission.
<PAGE>

                                      -5-

         Securities: See the introductory paragraphs hereto.

         Securities Act: The Securities Act of 1933, and the rules and
regulations of the SEC promulgated thereunder.

         Shelf Notice: See Section 2(c) hereof.

         Shelf Registration: See Section 3(a) hereof.

         TIA: The Trust Indenture Act of 1939, as amended.

         Trustee: The trustee under the Indenture and the trustee (if any) under
any indenture governing the Exchange Notes and Private Exchange Notes (and the
related Guarantees).

         Underwritten registration or underwritten offering: A registration in
which securities of one or more of the Issuers are sold to an underwriter for
reoffering to the public.

         Except as otherwise specifically provided, all references in this
Agreement to acts, laws, statutes, rules, regulations, releases, forms,
no-action letters and other regulatory requirements (collectively, "Regulatory
Requirements") shall be deemed to refer also to any amendments thereto and all
subsequent Regulatory Requirements adopted as a replacement thereto having
substantially the same effect therewith; provided that Rule 144 shall not be
deemed to amend or replace Rule 144A.

2.       Exchange Offer

         (a) Unless (1) the Exchange Offer would violate applicable law or any
applicable interpretation of the staff of the SEC or (2) each Holder of
Registrable Notes shall have delivered notice to the Company prior to the Filing
Date that it is a Restricted Holder, the Issuers shall file with the SEC, no
later than the Filing Date, a Registration Statement (the "Exchange Offer
Registration Statement") on an appropriate registration form with respect to a
registered offer (the "Exchange Offer") to exchange any and all of the
Registrable Notes for a like aggregate principal amount of debt securities of
the Company, guaranteed by the Guarantors, that are identical in all material
respects to the Securities, except that (i) the Exchange Notes shall contain no
restrictive legend thereon (the "Exchange Notes") and (ii) interest thereon
shall accrue from the last date on which interest was paid on the Notes or, if
no such interest has been paid, from the Issue Date, and which are entitled to
the benefits of the Indenture or a trust indenture which is identical in all
material respects to the Indenture (other than such changes to the Indenture or
any such identical trust indenture as are necessary to comply with the TIA) and
which, in either case, has been qualified under the TIA. The Exchange Offer
shall comply with all applicable tender offer rules and regulations under the
Exchange Act and other applicable laws. Subject to clauses (a)(1) and (2) above,
the Issuers
<PAGE>

                                      -6-

shall use their reasonable best efforts to (x) cause the Exchange Offer
Registration Statement to be declared effective under the Securities Act on or
before the Effectiveness Date; (y) keep the Exchange Offer open for at least 20
Business Days (or longer if required by applicable law) after the date that
notice of the Exchange Offer is mailed to Holders; and (z) consummate the
Exchange Offer on or prior to the 30th day following the date on which the
Exchange Offer Registration Statement was declared effective by the SEC and in
no event later than the 210th day following the Issue Date.

         Each Holder (including, without limitation, each Exchanging Dealer) who
participates in the Exchange Offer will be required to represent to the Issuers
in writing (which may be contained in the applicable letter of transmittal)
that: (i) any Exchange Notes acquired in exchange for Registrable Notes tendered
is being acquired in the ordinary course of business of the Person receiving
such Exchange Notes, whether or not such recipient is such Holder itself; (ii)
neither such Holder nor, to the actual knowledge of such Holder, any other
Person receiving Exchange Notes from such Holder is engaging in or intends to
engage in a distribution of the Exchange Notes; (iii) at the time of the
consummation of the Exchange Offer neither such Holder nor, to the actual
knowledge of such Holder, any other Person receiving Exchange Notes from such
Holder has an arrangement or understanding with any Person to participate in the
distribution of the Exchange Notes in violation of the provisions of the
Securities Act; (iv) neither the Holder nor, to the actual knowledge of such
Holder, any other Person is an "affiliate" (as defined in Rule 405) of the
Company or, if it is an affiliate of the Company, it will comply with the
registration and prospectus delivery requirements of the Securities Act to the
extent applicable and will provide information to be included in the Shelf
Registration Statement in accordance with Section 5 hereof in order to have
their Notes included in the Shelf Registration Statement and benefit from the
provisions regarding Liquidated Damages in Section 4 hereof; and (v) if such
Holder is an Exchanging Dealer, such Holder has acquired the Registrable Notes
as a result of market-making activities or other trading activities and that it
will comply with the applicable provisions of the Securities Act (including, but
not limited to, the prospectus delivery requirements thereunder).

         Upon consummation of the Exchange Offer in accordance with this Section
2, the provisions of this Agreement shall continue to apply, mutatis mutandis,
solely with respect to Registrable Notes that are Private Exchange Notes,
Exchange Notes as to which Section 2(c)(iii)(B) is applicable and Exchange Notes
held by Exchanging Dealers, and the Issuers shall have no further obligation to
register Registrable Notes (other than Private Exchange Notes and Exchange Notes
as to which clause 2(c)(iii)(B) hereof applies) pursuant to Section 3 hereof.

         No securities other than the Exchange Notes shall be included in the
Exchange Offer Registration Statement.
<PAGE>

                                      -7-

         (b) The Issuers shall include within the Prospectus contained in the
Exchange Offer Registration Statement a section entitled "Plan of Distribution,"
reasonably acceptable to the Initial Purchasers, which shall contain a summary
statement of the positions taken or policies made by the staff of the SEC with
respect to the potential "underwriter" status of any broker-dealer that is the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) of Exchange
Notes received by such broker-dealer in the Exchange Offer (an "Exchanging
Dealer"), whether such positions or policies have been publicly disseminated by
the staff of the SEC or such positions or policies represent the prevailing
views of the staff of the SEC. Such "Plan of Distribution" section shall also
expressly permit, to the extent permitted by applicable policies and regulations
of the SEC, the use of the Prospectus by all Persons subject to the prospectus
delivery requirements of the Securities Act, including, to the extent permitted
by applicable policies and regulations of the SEC, all Exchanging Dealers, and
include a statement describing the means by which Exchanging Dealers may resell
the Exchange Notes in compliance with the Securities Act.

         Subject to Section 3(d), the Issuers shall use their reasonable best
efforts to keep the Exchange Offer Registration Statement effective and to amend
and supplement the Prospectus contained therein in order to permit such
Prospectus to be lawfully delivered by all Persons subject to the prospectus
delivery requirements of the Securities Act for such period of time as is
necessary to comply with applicable law in connection with any resale of the
Exchange Notes; provided, however, that such period shall not be required to
exceed 90 days or such longer period if extended pursuant to the last paragraph
of Section 5 hereof (the "Applicable Period").

         If, prior to consummation of the Exchange Offer, the Initial Purchasers
hold any Notes acquired by them that have the status of an unsold allotment in
the initial distribution, the Issuers upon the request of the Initial Purchasers
shall simultaneously with the delivery of the Exchange Notes issue and deliver
to the Initial Purchasers, in exchange (the "Private Exchange") for such Notes
held by any such Holder, a like principal amount of notes (the "Private Exchange
Notes") of the Issuers, guaranteed by the Guarantors, that are identical in all
material respects to the Exchange Notes except for the placement of a
restrictive legend on such Private Exchange Notes. The Private Exchange Notes
shall be issued pursuant to the same indenture as the Exchange Notes and bear
the same CUSIP number as the Exchange Notes.

         In connection with the Exchange Offer, the Issuers shall:

                  (1) mail, or cause to be mailed, to each Holder of record
         entitled to participate in the Exchange Offer a copy of the Prospectus
         forming part of the Exchange Offer Registration Statement, together
         with an appropriate letter of transmittal and related documents;
<PAGE>

                                      -8-

                  (2) use their reasonable best efforts to keep the Exchange
         Offer open for not less than 20 Business Days after the date that
         notice of the Exchange Offer is mailed to Holders (or longer if
         required by applicable law);

                  (3) utilize the services of a depositary for the Exchange
         Offer with an address in the Borough of Manhattan, The City of New
         York;

                  (4) permit Holders to withdraw tendered Securities at any time
         prior to the close of business, New York time, on the last Business Day
         on which the Exchange Offer remains open; and

                  (5) otherwise comply in all material respects with all
         applicable laws, rules and regulations.

         As soon as practicable after the close of the Exchange Offer and the
Private Exchange, if any, the Issuers shall:

                  (1) accept for exchange all Registrable Notes validly tendered
         and not validly withdrawn pursuant to the Exchange Offer and the
         Private Exchange, if any;

                  (2) deliver to the Trustee for cancellation all Registrable
         Notes so accepted for exchange; and

                  (3) cause the Trustee to authenticate and deliver promptly to
         each Holder of Securities, Exchange Notes or Private Exchange Notes, as
         the case may be, equal in principal amount to the Securities of such
         Holder so accepted for exchange; provided that, in the case of any
         Securities held in global form by a depositary, authentication and
         delivery to such depositary of one or more replacement Securities in
         global form in an equivalent principal amount thereto for the account
         of such Holders in accordance with the Indenture shall satisfy such
         authentication and delivery requirement.

         The Exchange Offer and the Private Exchange shall not be subject to any
conditions, other than that (i) the Exchange Offer or Private Exchange, as the
case may be, does not violate applicable law or any applicable interpretation of
the staff of the SEC; (ii) no action or proceeding shall have been instituted or
threatened in any court or by any governmental agency which might materially
impair the ability of the Issuers to proceed with the Exchange Offer or the
Private Exchange, and no material adverse development shall have occurred in any
existing action or proceeding with respect to the Issuers; (iii) all
governmental approvals shall have been obtained, which approvals the Issuers
deem necessary for the consummation of the Exchange Offer or Private Exchange;
(iv) each Holder of Registrable Notes shall not have delivered notice to the
Company prior to the Filing Date with respect to
<PAGE>

                                      -9-

the Exchange Offer Registration Statement that it is a Restricted Holder and (v)
the conditions precedent to the Issuers' obligations under this Agreement shall
have been fulfilled.

         The Exchange Notes and the Private Exchange Notes shall be issued under
(i) the Indenture or (ii) an indenture identical in all material respects to the
Indenture and which, in either case, has been qualified under the TIA or is
exempt from such qualification and shall provide that the Exchange Notes shall
not be subject to the transfer restrictions set forth in the Indenture. The
Indenture or such indenture shall provide that the Exchange Notes, the Private
Exchange Notes and the Securities shall vote and consent together on all matters
as one class and that none of the Exchange Notes, the Private Exchange Notes or
the Securities will have the right to vote or consent as a separate class on any
matter.

         (c) If (i) the Issuers are not required to file the Exchange Offer
Registration Statement or not permitted to consummate the Exchange Offer, (ii)
any Notes validly tendered pursuant to the Exchange Offer are not exchanged for
Exchange Notes within 30 days after the Effectiveness Date of the Exchange Offer
Registration Statement, or (iii) any Holder (a "Restricted Holder") of
Registrable Notes notifies the Company prior to the 20th day following
consummation of the Exchange Offer that: (A) it is prohibited by law or SEC
policy from participating in the Exchange Offer, (B) it may not resell the
Exchange Notes acquired by it in the Exchange Offer to the public without
delivering a prospectus and the Prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales, (C) it
is an Initial Purchasers and that such Notes are not eligible to be exchanged
for Exchange Notes or (D) it is (x) a broker-dealer and owns Notes acquired
directly from the Company or (y) an affiliate of the Issuer, then in the case of
each of clauses (i), (ii) and (iii) of this sentence, the Issuers shall promptly
deliver to the Holders and the Trustee written notice thereof (the "Shelf
Notice") and shall file a Shelf Registration pursuant to Section 3 hereof.
Deutsche Bank Securities Inc., an Initial Purchaser, hereby gives notice,
effective June 9, 2000, to the Company pursuant to clause (iii)(D)(y) above that
it is an affiliate of the Issuer.

3.       Shelf Registration

         If at any time a Shelf Notice is delivered as contemplated by Section
2(c) hereof, then:

         (a) Shelf Registration. The Issuers shall as promptly as practicable
file with the SEC a Registration Statement for an offering to be made on a
continuous basis pursuant to Rule 415 covering all of the Registrable Notes (the
"Shelf Registration"). If the Issuers shall not have yet filed an Exchange Offer
Registration Statement, the Issuers shall use their reasonable best efforts to
file with the SEC the Shelf Registration on or prior to the Filing Date. The
Shelf Registration shall be on Form S-1 or another appropriate form permitting
registration of such Registrable Notes for resale by Holders in the manner or
manners designated by them (including, without limitation, one or more
underwritten offerings). The
<PAGE>

                                      -10-

Issuers shall not permit any securities other than the Registrable Notes and the
Guarantees to be included in the Shelf Registration.

         Subject to Section 3(d), the Issuers shall use their best efforts to
cause the Shelf Registration to be declared effective under the Securities Act
on or prior to the Effectiveness Date and to keep the Shelf Registration
continuously effective under the Securities Act until the date that is two years
from the Issue Date or such shorter period ending when all Registrable Notes
covered by the Shelf Registration (i) have been sold in the manner set forth and
as contemplated in the Shelf Registration or (ii) have been distributed to the
public pursuant to Rule 144 or are saleable pursuant to Rule 144(k) under the
Securities Act (the "Effectiveness Period"); provided, however, that upon notice
from any Initial Purchaser pursuant to Section 2(c)(iii)(D)(y) hereof, the
Effectiveness Period shall be extended for a period not beyond the second
anniversary of the date on which the Shelf Registration Statement became
effective (as extended by any Blackout Period) solely for the purpose of
facilitating resales of Registrable Notes by any Initial Purchaser until such
time as each Initial Purchaser shall have notified the Company that neither such
Initial Purchaser nor any of its affiliates is required by applicable law or SEC
policy to deliver a prospectus in connection with any resales of Notes, Exchange
Notes or Private Exchange Notes (such extended period, the "Market-Making
Period").

         (b) Withdrawal of Stop Orders. If the Shelf Registration ceases to be
effective for any reason at any time during the Effectiveness Period (other than
because of the sale of all of the securities registered thereunder), the Issuers
shall use their reasonable best efforts to obtain the prompt withdrawal of any
order suspending the effectiveness thereof.

         (c) Supplements and Amendments. Subject to Section 3(d), the Issuers
shall promptly supplement and amend the Shelf Registration if required by the
rules, regulations or instructions applicable to the registration form used for
such Shelf Registration, if required by the Securities Act, or if reasonably
requested by the Holders of a majority in aggregate principal amount of the
Registrable Notes (or their counsel) covered by such Registration Statement with
respect to the information included thereon with respect to one or more of such
Holders, or by any underwriter of such Registrable Notes with respect to the
information included thereon with respect to such underwriter.

         (d) Blackout Period. Notwithstanding anything to the contrary in this
Agreement, the Company, upon advising the Initial Purchasers, may suspend the
use of the prospectus included in any Registration Statement in the event that
and for a period of time (the "Blackout Period") not to exceed an aggregate of
sixty days in any twelve-month period if (1) the Board of Directors of the
Company determines that the disclosure of an event at such time would have a
material adverse effect on the business, operations or prospects of the Company
or (2) the disclosure otherwise relates to a material business transaction which
has not been publicly disclosed and the Board of Directors of the Company
determines that any
<PAGE>

                                      -11-

such disclosure would jeopardize the success of such transaction; provided,
that, upon the termination of such Blackout Period, the Company promptly shall
advise the Initial Purchasers that such Blackout Period has been terminated.

4.       Liquidated Damages

         (a) The Issuers and the Initial Purchasers agree that the Holders will
suffer damages if the Issuers fail to fulfill their obligations under Section 2
or Section 3 hereof and that it would not be feasible to ascertain the extent of
such damages with precision. Accordingly, the Issuers agree to pay liquidated
damages ("Liquidated Damages") to each Holder of Notes who provides the
representations and warranties set forth in the second paragraph of Section 2(a)
under the circumstances and to the extent set forth below:

                  (i) if (A) neither the Exchange Offer Registration Statement
         nor the Shelf Registration has been filed on or prior to the applicable
         Filing Date or (B) notwithstanding that the Issuers have consummated or
         will consummate the Exchange Offer, the Issuers are required to file a
         Shelf Registration and such Shelf Registration is not filed on or prior
         to the Filing Date applicable thereto, then, commencing on the day
         after any such Filing Date, Liquidated Damages shall accrue on the
         principal amount of the Securities at a rate of $0.05 per week per
         $1,000 principal amount of Notes for the first 90 days immediately
         following each such Filing Date, and such Liquidated Damages shall
         increase by an additional $0.05 per week per $1,000 principal amount of
         Notes at the beginning of each subsequent 90-day period; or

                  (ii) if (A) neither the Exchange Offer Registration Statement
         nor the Shelf Registration is declared effective by the SEC on or prior
         to the relevant Effectiveness Date or (B) notwithstanding that the
         Issuers have consummated or will consummate the Exchange Offer, the
         Issuers are required to file a Shelf Registration and such Shelf
         Registration is not declared effective by the SEC on or prior to the
         Effectiveness Date in respect of such Shelf Registration, then,
         commencing on the day after such Effectiveness Date, Liquidated Damages
         shall accrue on the principal amount of the Securities at a rate of
         $0.05 per week per $1,000 principal amount of Notes for the first 90
         days immediately following the day after such Effectiveness Date, and
         such Liquidated Damages shall increase by an additional $0.05 per week
         per $1,000 principal amount of Notes at the beginning of each
         subsequent 90-day period; or

                  (iii) if (A) the Issuers have not exchanged Exchange Notes for
         all Securities validly tendered in accordance with the terms of the
         Exchange Offer on or prior to the 210th day after the Issue Date or (B)
         if applicable, a Shelf Registration has been declared effective and
         such Shelf Registration ceases to be effective at any time during the
         Effectiveness Period (other than during any Market-Making Period),
         except in the case of a Blackout Period relating to such Shelf
         Registration, then Liquidated
<PAGE>

                                      -12-

         Damages shall accrue on the principal amount of the Securities at a
         rate of $0.05 per week per $1,000 principal amount of Notes for the
         first 90 days commencing on (x) the 210th day after the Issue Date, in
         the case of (A) above, or (y) the day such Shelf Registration ceases to
         be effective in the case of (B) above, and such Liquidated Damages
         shall increase by an additional $0.05 per week per $1,000 principal
         amount of Notes at the beginning of each such subsequent 90-day period;

provided, however, that (1) the Liquidated Damages on the Notes may not accrue
under more than one of the foregoing clauses (i)-(iii) (each such event, a
"Registration Default") at any one time and may not exceed at any one time in
the aggregate $0.20 per week per $1,000 principal amount of Notes, (2) a Holder
of Notes or Exchange Notes who is not entitled to the benefits of the Shelf
Registration Statement shall not be entitled to Liquidated Damages with respect
to a Registration Default that pertains to the Shelf Registration Statement, and
(3) a Holder of Notes constituting an unsold allotment from the original sale of
the Notes or who otherwise is not entitled to participate in the Exchange Offer
shall not be entitled to Liquidated Damages by reason of a Registration Default
that pertains to the Exchange Offer; provided, further, that if a Registration
Statement ceases to be effective in the case of clause (iii) above on account of
a Blackout Period, Liquidated Damages will cease to accrue during such Blackout
Period; provided, further, however, that (1) upon the filing of the applicable
Exchange Offer Registration Statement or the Shelf Registration as required
hereunder (in the case of clause (i) above of this Section 4(a)), (2) upon the
effectiveness of the Exchange Offer Registration Statement or the Shelf
Registration Statement as required hereunder (in the case of clause (ii) of this
Section 4), or (3) upon the exchange of the applicable Exchange Notes for all
Securities tendered (in the case of clause (iii)(A) of this Section 4), or upon
the effectiveness of the Shelf Registration Statement which had ceased to remain
effective (in the case of clause (iii)(B) of this Section 4), Liquidated Damages
on the Notes in respect of which such events relate as a result of such clause
(or the relevant subclause thereof), as the case may be, shall cease to accrue.
A confidential submission to the SEC shall qualify as a filing for purposes of
the filing deadlines above.

         (b) The Issuers shall notify the Trustee within two Business Days after
each and every date on which an event occurs in respect of which Liquidated
Damages is required to be paid (an "Event Date"). Any amounts of Liquidated
Damages due pursuant to (a)(i), (a)(ii) or (a)(iii) of this Section 4 will be
payable in cash semiannually on each May 1 and November 1 (to the holders of
record on the April 15 and October 15 immediately preceding such dates),
commencing with the first such date occurring after any such Liquidated Damages
commences to accrue. The amount of Liquidated Damages will be determined by
multiplying the applicable Liquidated Damages rate by the principal amount of
the Registrable Notes, multiplied by a fraction, the numerator of which is the
number of days such Liquidated Damages rate was applicable during such period,
and the denominator of which is seven.
<PAGE>

                                      -13-

         (c) The parties hereto agree that the Liquidated Damages provided for
in this Section 4 constitute the sole damages that will be suffered by Holders
of Registrable Notes by reason of the occurrence of any of the events described
in Section 4(a)(i) - (iii) hereof.

5.       Registration Procedures

         In connection with the filing of any Registration Statement pursuant to
Section 2 or 3 hereof, the Issuers shall effect such registrations to permit the
sale of the securities covered thereby in accordance with the intended method or
methods of disposition thereof, and pursuant thereto and in connection with any
Registration Statement filed by the Issuers hereunder each of the Issuers shall:

                  (a) Prepare and file with the SEC prior to the Filing Date a
         Registration Statement or Registration Statements as prescribed by
         Section 2 or 3 hereof, and use its reasonable best efforts to cause
         each such Registration Statement to become effective and remain
         effective as provided herein; provided, however, that if (1) such
         filing is pursuant to Section 3 hereof, or (2) a Prospectus contained
         in the Exchange Offer Registration Statement filed pursuant to Section
         2 hereof is required to be delivered under the Securities Act by any
         Exchanging Dealer who seeks to sell Exchange Notes during the
         Applicable Period relating thereto from whom any Issuer has received
         written notice that it will be an Exchanging Dealer in the Exchange
         Offer, before filing any Registration Statement or Prospectus or any
         amendments or supplements thereto, the Issuers shall furnish to and
         afford the Holders of the Registrable Notes included in such
         Registration Statement (with respect to a Registration Statement filed
         pursuant to Section 3 hereof) or each such Exchanging Dealer (with
         respect to any such Registration Statement), as the case may be, their
         counsel and the managing underwriters, if any, a reasonable opportunity
         to review copies of all such documents (including copies of any
         documents to be incorporated by reference therein and all exhibits
         thereto) proposed to be filed (in each case at least five business days
         prior to such filing). The Issuers shall not file any Registration
         Statement or Prospectus or any amendments or supplements thereto if the
         Holders of a majority in aggregate principal amount of the Registrable
         Notes included in such Registration Statement, their counsel, or the
         managing underwriters, if any, shall reasonably object on a timely
         basis.

                  (b) Prepare and file with the SEC such amendments and
         post-effective amendments to each Shelf Registration Statement or
         Exchange Offer Registration Statement, as the case may be, as may be
         necessary to keep such Shelf Registration Statement or Exchange Offer
         Registration Statement continuously effective for the Effectiveness
         Period, the Market-Making Period or the Applicable Period,
         respectively; cause the related Prospectus to be supplemented by any
         Prospectus supplement required by applicable law, and as so
         supplemented to be filed pursuant to
<PAGE>

                                      -14-

         Rule 424; and comply with the provisions of the Securities Act and the
         Exchange Act applicable to each of them with respect to the disposition
         of all securities covered by such Registration Statement as so amended
         or in such Prospectus as so supplemented and with respect to the
         subsequent resale of any securities being sold by an Exchanging Dealer
         covered by any such Prospectus; provided that none of the foregoing
         shall be required during any Blackout Period. Other than during any
         Blackout Period, the Issuers shall be deemed not to have used their
         reasonable best efforts to keep a Registration Statement effective
         during the Effectiveness Period or the Applicable Period, as the case
         may be, relating thereto if any Issuer voluntarily takes any action
         that would result in selling Holders of the Registrable Notes covered
         thereby or Exchanging Dealers seeking to sell Exchange Notes not being
         able to sell such Registrable Notes or such Exchange Notes during that
         period unless such action is required by applicable law or permitted by
         this Agreement.

                  (c) If (1) a Shelf Registration is filed pursuant to Section 3
         hereof, or (2) a Prospectus contained in the Exchange Offer
         Registration Statement filed pursuant to Section 2 hereof is required
         to be delivered under the Securities Act by any Exchanging Dealer who
         seeks to sell Exchange Notes during the Applicable Period relating
         thereto from whom any Issuer has received written notice that it will
         be an Exchanging Dealer in the Exchange Offer, notify the selling
         Holders of Registrable Notes (with respect to a Registration Statement
         filed pursuant to Section 3 hereof), or each such Exchanging Dealer
         (with respect to any such Registration Statement), as the case may be,
         their counsel and the managing underwriters, if any, promptly (but in
         any event within one business day), and confirm such notice in writing,
         (i) when a Prospectus or any Prospectus supplement or post-effective
         amendment has been filed, and, with respect to a Registration Statement
         or any post-effective amendment, when the same has become effective
         under the Securities Act (including in such notice a written statement
         that any Holder may, upon request, obtain, at the sole expense of the
         Issuers, one conformed copy of such Registration Statement or
         post-effective amendment including financial statements and schedules,
         documents incorporated or deemed to be incorporated by reference and
         exhibits), (ii) of the issuance by the SEC of any stop order suspending
         the effectiveness of a Registration Statement or of any order
         preventing or suspending the use of any preliminary prospectus or the
         initiation of any proceedings for that purpose, (iii) if at any time
         when a prospectus is required by the Securities Act to be delivered in
         connection with sales of the Registrable Notes or resales of Exchange
         Notes by Exchanging Dealers the representations and warranties of the
         Issuers contained in any agreement (including any underwriting
         agreement) contemplated by Section 5(n) hereof cease to be true and
         correct, (iv) of the receipt by any Issuer of any notification with
         respect to the suspension of the qualification or exemption from
         qualification of a Registration Statement or any of the Registrable
         Notes or the Exchange Notes to be sold by any Exchanging Dealer for
         offer or sale in any jurisdiction, or the initiation or threatening of
         any proceeding for
<PAGE>

                                      -15-

         such purpose, (v) of the happening of any event, the existence of any
         condition or any information becoming known that makes any statement
         made in such Registration Statement or related Prospectus or any
         document incorporated or deemed to be incorporated therein by reference
         untrue in any material respect or that requires the making of any
         changes in or amendments or supplements to such Registration Statement,
         Prospectus or documents so that, in the case of the Registration
         Statement, it will not contain any untrue statement of a material fact
         or omit to state any material fact required to be stated therein or
         necessary to make the statements therein not misleading, and that in
         the case of the Prospectus, it will not contain any untrue statement of
         a material fact or omit to state any material fact required to be
         stated therein or necessary to make the statements therein, in light of
         the circumstances under which they were made, not misleading, and (vi)
         of the Issuers' determination that a post-effective amendment to a
         Registration Statement would be appropriate.

                  (d) Use its reasonable best efforts to prevent the issuance of
         any order suspending the effectiveness of a Registration Statement or
         of any order preventing or suspending the use of a Prospectus or
         suspending the qualification (or exemption from qualification) of any
         of the Registrable Notes or the Exchange Notes to be sold by any
         Exchanging Dealer, for sale in any jurisdiction, and, if any such order
         is issued, to use its reasonable best efforts to obtain the withdrawal
         of any such order at the earliest practicable moment.

                  (e) Subject to Section 3(d), if a Shelf Registration is filed
         pursuant to Section 3 and if requested during the Effectiveness Period
         by the managing underwriter or underwriters (if any), the Holders of a
         majority in aggregate principal amount of the Registrable Notes being
         sold in connection with an underwritten offering or any Exchanging
         Dealer, (i) as promptly as practicable incorporate in a prospectus
         supplement or post-effective amendment such information as the managing
         underwriter or underwriters (if any), such Holders, any Exchanging
         Dealer or counsel for any of them reasonably request to be included
         therein, (ii) make all required filings of such prospectus supplement
         or such post-effective amendment as soon as practicable after the
         Company has received notification of the matters to be incorporated in
         such prospectus supplement or post-effective amendment, and (iii)
         supplement or make amendments to such Registration Statement.

                  (f) If (1) a Shelf Registration is filed pursuant to Section 3
         hereof, or (2) a Prospectus contained in the Exchange Offer
         Registration Statement filed pursuant to Section 2 hereof is required
         to be delivered under the Securities Act by any Exchanging Dealer who
         seeks to sell Exchange Notes during the Applicable Period, furnish to
         each selling Holder of Registrable Notes (with respect to a
         Registration Statement filed pursuant to Section 3 hereof) and to each
         such Exchanging Dealer who so requests (with respect to any such
         Registration Statement) and to their respective
<PAGE>

                                      -16-

         counsel and each managing underwriter, if any, at the sole expense of
         the Issuers, one conformed copy of the Registration Statement or
         Registration Statements and each post-effective amendment thereto,
         including financial statements and schedules, and, if requested, all
         documents incorporated or deemed to be incorporated therein by
         reference and all exhibits.

                  (g) If (1) a Shelf Registration is filed pursuant to Section 3
         hereof, or (2) a Prospectus contained in the Exchange Offer
         Registration Statement filed pursuant to Section 2 hereof is required
         to be delivered under the Securities Act by any Exchanging Dealer who
         seeks to sell Exchange Notes during the Applicable Period, deliver to
         each selling Holder of Registrable Notes (with respect to a
         Registration Statement filed pursuant to Section 3 hereof), or each
         such Exchanging Dealer (with respect to any such Registration
         Statement), as the case may be, their respective counsel, and the
         underwriters, if any, at the sole expense of the Issuers, as many
         copies of the Prospectus or Prospectuses (including each form of
         preliminary prospectus) and each amendment or supplement thereto and
         any documents incorporated by reference therein as such Persons may
         reasonably request; and, subject to the last paragraph of this Section
         5, the Issuers hereby consent to the use of such Prospectus and each
         amendment or supplement thereto by each of the selling Holders of
         Registrable Notes or each such Exchanging Dealer, as the case may be,
         and the underwriters or agents, if any, and dealers, if any, in
         connection with the offering and sale of the Registrable Notes covered
         by, or the sale by Exchanging Dealers of the Exchange Notes pursuant
         to, such Prospectus and any amendment or supplement thereto.

                  (h) Prior to any public offering of Registrable Notes or
         Exchange Notes or any delivery of a Prospectus contained in the
         Exchange Offer Registration Statement by any Exchanging Dealer who
         seeks to sell Exchange Notes during the Applicable Period, use its
         reasonable best efforts to register or qualify, and to cooperate with
         the selling Holders of Registrable Notes or each such Exchanging
         Dealer, as the case may be, the managing underwriter or underwriters,
         if any, and their respective counsel in connection with the
         registration or qualification (or exemption from such registration or
         qualification) of such Registrable Notes for offer and sale under the
         securities or Blue Sky laws of such jurisdictions within the United
         States as any selling Holder, Exchanging Dealer, or the managing
         underwriter or underwriters reasonably request in writing; provided,
         however, that where Exchange Notes held by Exchanging Dealers or
         Registrable Notes are offered other than through an underwritten
         offering, the Issuers agree to cause their counsel to perform Blue Sky
         investigations and file registrations and qualifications required to be
         filed pursuant to this Section 5(h), keep each such registration or
         qualification (or exemption therefrom) effective during the period such
         Registration Statement is required to be kept effective and do any and
         all other acts or things necessary or advisable to enable the
         disposition in such jurisdictions of the Exchange Notes held by
         Exchanging Dealers or the Registrable
<PAGE>

                                      -17-

         Notes covered by the applicable Registration Statement; provided,
         however, that no Issuer shall be required to (A) qualify generally to
         do business in any jurisdiction where it is not then so qualified, (B)
         take any action that would subject it to general service of process in
         any such jurisdiction where it is not then so subject, or (C) subject
         itself to taxation in excess of a nominal dollar amount in any such
         jurisdiction where it is not then so subject.

                  (i) If a Shelf Registration is filed pursuant to Section 3
         hereof, cooperate with the selling Holders of Registrable Notes and the
         managing underwriter or underwriters, if any, to facilitate the timely
         preparation and delivery of certificates representing Registrable Notes
         to be sold, which certificates shall not bear any restrictive legends
         and shall be in a form eligible for deposit with The Depository Trust
         Company; and enable such Registrable Notes to be in such denominations
         (subject to applicable requirements contained in the Indenture) and
         registered in such names as the managing underwriter or underwriters,
         if any, or Holders may request.

                  (j) Use their reasonable best efforts to cause the Registrable
         Notes covered by the Registration Statement to be registered with or
         approved by such other governmental agencies or authorities as may be
         necessary to enable the seller or sellers thereof or the underwriter or
         underwriters, if any, to consummate the disposition of such Registrable
         Notes, except as may be required solely as a consequence of the nature
         of such selling Holder's business, in which case the Issuers will
         cooperate in all respects with the filing of such Registration
         Statement and the granting of such approvals.

                  (k) If (1) a Shelf Registration is filed pursuant to Section 3
         hereof, or (2) a Prospectus contained in the Exchange Offer
         Registration Statement filed pursuant to Section 2 hereof is required
         to be delivered under the Securities Act by any Exchanging Dealer who
         seeks to sell Exchange Notes during the Applicable Period, upon the
         occurrence of any event contemplated by paragraph 5(c)(v) or 5(c)(vi)
         hereof, as promptly as practicable (except, in the case of a Blackout
         Period) prepare and (subject to Section 5(a) hereof) file with the SEC,
         at the sole expense of the Issuers, a supplement or post-effective
         amendment to the Registration Statement or a supplement to the related
         Prospectus or any document incorporated or deemed to be incorporated
         therein by reference, or file any other required document so that, as
         thereafter delivered to the purchasers of the Registrable Notes being
         sold thereunder (with respect to a Registration Statement filed
         pursuant to Section 3 hereof) or to the purchasers of the Exchange
         Notes to whom such Prospectus will be delivered by an Exchanging Dealer
         (with respect to any such Registration Statement), any such Prospectus
         will not contain an untrue statement of a material fact or omit to
         state a material fact required to be stated therein or necessary to
         make the statements therein, in light of the circumstances under which
         they were made, not misleading.
<PAGE>

                                      -18-

                  (l) Use its reasonable best efforts to cause the Registrable
         Notes covered by a Registration Statement or the Exchange Notes, as the
         case may be, to be rated with the appropriate rating agencies, if so
         requested by the Holders of a majority in aggregate principal amount of
         Registrable Notes covered by such Registration Statement or the
         Exchange Notes, as the case may be, or the managing underwriter or
         underwriters, if any.

                  (m) Prior to the effective date of the first Registration
         Statement relating to the Registrable Notes, (i) provide the Trustee
         with certificates for the Registrable Notes in a form eligible for
         deposit with The Depository Trust Company and (ii) provide a CUSIP
         number for the Registrable Notes.

                  (n) In connection with any underwritten offering of
         Registrable Notes pursuant to a Shelf Registration, enter into an
         underwriting agreement as is customary in underwritten offerings of
         debt securities similar to the Securities, and take all such other
         actions as are reasonably requested by the managing underwriter or
         underwriters in order to expedite or facilitate the registration or the
         disposition of such Registrable Notes and, in such connection, (i) make
         such representations and warranties to, and covenants with, the
         underwriters with respect to the business of the Issuers (including any
         acquired business, properties or entity, if applicable), and the
         Registration Statement, Prospectus and documents, if any, incorporated
         or deemed to be incorporated by reference therein, in each case, as are
         customarily made by issuers to underwriters in underwritten offerings
         of debt securities similar to the Securities, and confirm the same in
         writing if and when requested; (ii) obtain the written opinions of
         counsel to the Issuers, and written updates thereof in form, scope and
         substance reasonably satisfactory to the managing underwriter or
         underwriters, addressed to the underwriters covering the matters
         customarily covered in opinions reasonably requested in underwritten
         offerings; (iii) obtain "cold comfort" letters and updates thereof in
         form, scope and substance reasonably satisfactory to the managing
         underwriter or underwriters from the independent certified public
         accountants of the Issuers (and, if necessary, any other independent
         certified public accountants of the Issuers, or of any business
         acquired by the Issuers, for which financial statements and financial
         data are, or are required to be, included or incorporated by reference
         in the Registration Statement), addressed to each of the underwriters,
         such letters to be in customary form and covering matters of the type
         customarily covered in "cold comfort" letters in connection with
         underwritten offerings of debt securities similar to the Securities;
         and (iv) if an underwriting agreement is entered into, the same shall
         contain indemnification provisions and procedures no less favorable to
         the sellers and underwriters, if any, than those set forth in Section 7
         hereof (or such other provisions and procedures reasonably acceptable
         to Holders of a majority in aggregate principal amount of Registrable
         Notes covered by such Registration Statement and the managing
         underwriter or underwriters or agents, if any). The above shall be done
         at
<PAGE>

                                      -19-

         each closing under such underwriting agreement, or as and to the extent
         required thereunder.

                  (o) If (1) a Shelf Registration is filed pursuant to Section 3
         hereof, or (2) a Prospectus contained in the Exchange Offer
         Registration Statement filed pursuant to Section 2 hereof is required
         to be delivered under the Securities Act by any Exchanging Dealer who
         seeks to sell Exchange Notes during the Applicable Period, make
         available for inspection by any Initial Purchaser, any selling Holder
         of such Registrable Notes being sold (with respect to a Registration
         Statement filed pursuant to Section 3 hereof), or each such Exchanging
         Dealer, as the case may be, any underwriter participating in any such
         disposition of Registrable Notes, if any, and any attorney, accountant
         or other agent retained by any such selling Holder or each such
         Exchanging Dealer (with respect to any such Registration Statement), as
         the case may be, or underwriter (any such Initial Purchasers, Holders,
         Exchanging Dealers, underwriters, attorneys, accountants or agents,
         collectively, the "Inspectors"), upon written request, at the offices
         where normally kept, during reasonable business hours, all pertinent
         financial and other records, pertinent corporate documents and
         instruments of the Issuers and subsidiaries of the Issuers
         (collectively, the "Records"), as shall be reasonably necessary to
         enable them to exercise any applicable due diligence responsibilities,
         and cause the officers, directors and employees of the Issuers and any
         of their respective subsidiaries to supply all information
         ("Information") reasonably requested by any such Inspector in
         connection with such due diligence responsibilities. Each Inspector
         shall agree in writing that it will keep the Records and Information
         confidential and that it will not disclose any of the Records that any
         Issuer determines, in good faith, to be confidential and notifies the
         Inspectors in writing are confidential unless (i) the disclosure of
         such Records or Information is necessary to avoid or correct a
         misstatement or omission in such Registration Statement or Prospectus,
         (ii) the release of such Records or Information is ordered pursuant to
         a subpoena or other order from a court of competent jurisdiction, or
         (iii) the information in such Records or Information has been made
         generally available to the public other than by an Inspector or an
         "affiliate" (as defined in Rule 405) thereof; provided, however, that
         prior notice shall be provided as soon as practicable to any Issuer of
         the potential disclosure of any information by such Inspector pursuant
         to clauses (i) or (ii) of this sentence to permit the Issuers to obtain
         a protective order (or waive the provisions of this paragraph (o)) and
         that such Inspector shall take such actions as are reasonably necessary
         to protect the confidentiality of such information (if practicable) to
         the extent such action is otherwise not inconsistent with, an
         impairment of or in derogation of the rights and interests of the
         Holder or any Inspector.

                  (p) Provide an indenture trustee for the Registrable Notes or
         the Exchange Notes, as the case may be, and cause the Indenture or the
         trust indenture provided for
<PAGE>

                                      -20-

         in Section 2(a) hereof, as the case may be, to be qualified under the
         TIA not later than the effective date of the first Registration
         Statement relating to the Registrable Notes; and in connection
         therewith, cooperate with the trustee under any such indenture and the
         Holders of the Registrable Notes, to effect such changes (if any) to
         such indenture as may be required for such indenture to be so qualified
         in accordance with the terms of the TIA; and execute, and use their
         best efforts to cause such trustee to execute, all documents as may be
         required to effect such changes, and all other forms and documents
         required to be filed with the SEC to enable such indenture to be so
         qualified in a timely manner.

                  (q) Comply with all applicable rules and regulations of the
         SEC and make generally available to its securityholders with regard to
         any applicable Registration Statement, a consolidated earnings
         statement satisfying the provisions of Section 11(a) of the Securities
         Act and Rule 158 thereunder (or any similar rule promulgated under the
         Securities Act) no later than 45 days after the end of any fiscal
         quarter (or 90 days after the end of any 12-month period if such period
         is a fiscal year) (i) commencing at the end of any fiscal quarter in
         which Registrable Notes are sold to underwriters in a firm commitment
         or best efforts underwritten offering and (ii) if not sold to
         underwriters in such an offering, commencing on the first day of the
         first fiscal quarter of the Company, after the effective date of a
         Registration Statement, which statements shall cover said 12-month
         periods.

                  (r) Upon consummation of the Exchange Offer or a Private
         Exchange, obtain an opinion of counsel to the Issuers, in a form
         customary for underwritten transactions, addressed to the Trustee for
         the benefit of all Holders of Registrable Notes participating in the
         Exchange Offer or the Private Exchange, as the case may be, that the
         Exchange Notes or Private Exchange Notes, as the case may be, the
         related Guarantee and the related indenture constitute legal, valid and
         binding obligations of the Issuers, enforceable against the Issuers in
         accordance with their respective terms, subject to customary exceptions
         and qualifications. If the Exchange Offer or a Private Exchange is to
         be consummated, upon delivery of the Registrable Notes by Holders to
         the Company (or to such other Person as directed by the Issuers), in
         exchange for the Exchange Notes or the Private Exchange Notes, as the
         case may be, the Issuers shall mark, or cause to be marked, on such
         Registrable Notes that such Registrable Notes are being cancelled in
         exchange for the Exchange Notes or the Private Exchange Notes, as the
         case may be; in no event shall such Registrable Notes be marked as paid
         or otherwise satisfied.

                  (s) Cooperate with each seller of Registrable Notes covered by
         any Registration Statement and each underwriter, if any, participating
         in the disposition of such Registrable Notes and their respective
         counsel in connection with any filings
<PAGE>

                                      -21-

         required to be made with the National Association of Securities
         Dealers, Inc. (the "NASD").

                  (t) Use its reasonable best efforts to take all other steps
         necessary to effect the registration of the Exchange Notes and/or
         Registrable Notes covered by a Registration Statement contemplated
         hereby.

         The Issuers may require each seller of Registrable Notes as to which
any registration is being effected to furnish to the Issuers such information
regarding such seller and the distribution of such Registrable Notes as the
Issuers may, from time to time, reasonably request. The Issuers may exclude from
such registration the Registrable Notes of any seller so long as such seller
fails to furnish such information within a reasonable time after receiving such
request. Each seller as to which any Shelf Registration is being effected agrees
to furnish promptly to the Issuers all information required to be disclosed in
order to make the information previously furnished to the Issuers by such seller
not materially misleading.

         If any such Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance reasonably satisfactory to such Holder, to the effect that the holding
by such Holder of such securities is not to be construed as a recommendation by
such Holder of the investment quality of the securities covered thereby and that
such holding does not imply that such Holder will assist in meeting any future
financial requirements of the Company, or (ii) in the event that such reference
to such Holder by name or otherwise is not required by the Securities Act or any
similar federal statute then in force, the deletion of the reference to such
Holder in any amendment or supplement to the Registration Statement filed or
prepared subsequent to the time that such reference ceases to be required.

         Each Holder of Registrable Notes and each Exchanging Dealer agrees by
its acquisition of such Registrable Notes or Exchange Notes to be sold by such
Exchanging Dealer, as the case may be, that, upon actual receipt of any notice
from the Company of the happening of any event of the kind described in Section
5(c)(ii), 5(c)(iv), 5(c)(v), or 5(c)(vi) hereof, such Holder will forthwith
discontinue disposition of such Registrable Notes covered by such Registration
Statement or Prospectus or Exchange Notes to be sold by such Holder or
Exchanging Dealer, as the case may be, until such Holder's or Exchanging
Dealer's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(k) hereof, or until it is advised in writing (the
"Advice") by the Issuers that the use of the applicable Prospectus may be
resumed, and has received copies of any amendments or supplements thereto. In
the event that the Issuers shall give any such notice, each of the Applicable
Period, the Market-Making Period and the Effectiveness Period shall be extended
by the number of days during such periods from and including the date of the
giving of such notice to and
<PAGE>

                                      -22-

including the date when each seller of Registrable Notes covered by such
Registration Statement or Exchange Notes to be sold by such Exchanging Dealer,
as the case may be, shall have received (x) the copies of the supplemented or
amended Prospectus contemplated by Section 5(k) hereof or (y) the Advice.

6.       Registration Expenses

         All fees and expenses incident to the performance of or compliance with
this Agreement by the Issuers (other than any underwriting discounts or
commissions) shall be borne by the Issuers, whether or not the Exchange Offer
Registration Statement or any Shelf Registration is filed or becomes effective
or the Exchange Offer is consummated, including, without limitation, (i) all
registration and filing fees (including, without limitation, (A) fees with
respect to filings required to be made with the NASD in connection with an
underwritten offering and (B) reasonable fees and expenses of compliance with
state securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel in connection with Blue Sky qualifications of the
Registrable Notes or Exchange Notes and determination of the eligibility of the
Registrable Notes or Exchange Notes for investment under the laws of such
jurisdictions (x) where the holders of Registrable Notes are located, in the
case of the Exchange Notes, or (y) as provided in Section 5(h) hereof, in the
case of Registrable Notes or Exchange Notes to be sold by an Exchanging Dealer
during the Applicable Period)), (ii) printing expenses, including, without
limitation, expenses of printing certificates for Registrable Notes or Exchange
Notes in a form eligible for deposit with The Depository Trust Company and of
printing prospectuses if the printing of prospectuses is requested by the
managing underwriter or underwriters, if any, by the Holders of a majority in
aggregate principal amount of the Registrable Notes included in any Registration
Statement or in respect of Registrable Notes or Exchange Notes to be sold by any
Exchanging Dealer during the Applicable Period, as the case may be, (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Issuers and, in case of a Shelf Registration, reasonable fees
and disbursements of one special counsel for all of the sellers of Registrable
Notes (exclusive of any counsel retained pursuant to Section 7 hereof), (v) fees
and disbursements of all independent certified public accountants referred to in
Section 5(n)(iii) hereof (including, without limitation, the expenses of any
"cold comfort" letters required by or incident to such performance), (vi)
Securities Act liability insurance, if the Issuers desire such insurance, (vii)
fees and expenses of all other Persons retained by the Issuers, (viii) internal
expenses of the Issuers (including, without limitation, all salaries and
expenses of officers and employees of the Issuers performing legal or accounting
duties), (ix) the expense of any annual audit, (x) any fees and expenses
incurred in connection with the listing of the securities to be registered on
any securities exchange, and the obtaining of a rating of the securities, in
each case, if applicable, and (xi) the expenses relating to printing, word
processing and distributing all Registration Statements, underwriting
agreements, indentures and any other documents necessary in order to comply with
this Agreement.
<PAGE>

                                      -23-

         7. Indemnification and Contribution. (a) Each of the Issuers agree,
jointly and severally, to indemnify and hold harmless each Holder of Registrable
Notes and each Exchanging Dealer selling Exchange Notes during the Applicable
Period, and each Person, if any, who controls such Person or its affiliates
within the meaning of Section 15 of the Act or Section 20 of the Exchange Act
(each, a "Participant") against any losses, claims, damages or liabilities to
which any Participant or such controlling person may become subject under the
Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon:

                  (i) any untrue statement or alleged untrue statement made by
         any Issuer contained in any application or any other document or any
         amendment or supplement thereto executed by any Issuer based upon
         written information furnished by or on behalf of any Issuer filed in
         any jurisdiction in order to qualify the Notes under the securities or
         "Blue Sky" laws thereof or filed with the SEC or any securities
         association or securities exchange (each, an "Application");

                  (ii) any untrue statement or alleged untrue statement of any
         material fact contained in any Registration Statement (or any amendment
         thereto) or Prospectus (as amended or supplemented if any of the
         Issuers shall have furnished any amendments or supplements thereto) or
         any preliminary prospectus; or

                  (iii) the omission or alleged omission to state, in any
         Registration Statement (or any amendment thereto) or Prospectus (as
         amended or supplemented if any of the Issuers shall have furnished any
         amendments or supplements thereto) or any preliminary prospectus or any
         Application or any other document or any amendment or supplement
         thereto, a material fact required to be stated therein or necessary to
         make the statements therein not misleading;

and will reimburse, as incurred, the Participant and each such controlling
person for any legal or other expenses incurred by the Participant or such
controlling person in connection with investigating, defending against or
appearing as a third-party witness in connection with any such loss, claim,
damage, liability or action; provided, however, (i) the Issuers will not be
liable in any such case to the extent that any such loss, claim, damage, or
liability arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in any Registration Statement (or
any amendment thereto) or Prospectus (as amended or supplemented if any of the
Issuers shall have furnished any amendments or supplements thereto) or any
preliminary prospectus or Application or any amendment or supplement thereto in
reliance upon and in conformity with information relating to any Participant
furnished to the Issuers by such Participant specifically for use therein, and
(ii) the Issuers shall not be liable to any Participant under the indemnity
agreement in this subsection (a) with respect to the preliminary prospectus to
the extent that any such loss, claim, damage, liability or expense of such
Participant results from the fact that such Participant sold Notes to
<PAGE>

                                      -24-

a person as to whom it shall be established that there was not sent or given, at
or prior to the written confirmation of such sale, a copy of the Prospectus (or
the Prospectus as then amended or supplemented if the Issuers shall have
furnished such Participant with such amendment or supplement thereto on a timely
basis), in any case where such delivery is required by applicable law and the
loss, claim, damage, liability or expense of such Participant results from an
untrue statement or omission of a material fact contained in the preliminary
prospectus which was corrected in the Prospectus (or in the Prospectus as then
amended or supplemented if the Issuers shall have furnished such Participant
with such amendment or supplement thereto on a timely basis). The indemnity
provided for in this Section 7 will be in addition to any liability that the
Issuers may otherwise have to the indemnified parties. The Issuers shall not be
liable under this Section 7 for any settlement of any claim or action effected
without its prior written consent, which shall not be unreasonably withheld.

         (b) Each Participant, severally and not jointly, agrees to indemnify
and hold harmless the Issuers, their directors, their officers and each person,
if any, who controls the Issuers within the meaning of Section 15 of the Act or
Section 20 of the Exchange Act against any losses, claims, damages or
liabilities to which the Issuers or any such director, officer or controlling
person may become subject under the Act, the Exchange Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement or
Prospectus, any amendment or supplement thereto, or any preliminary prospectus,
or (ii) the omission or the alleged omission to state therein a material fact
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information concerning such Participant, furnished to
the Issuers by the Participant, specifically for use therein; and subject to the
limitation set forth immediately preceding this clause, will reimburse, as
incurred, any legal or other expenses incurred by the Issuers or any such
director, officer or controlling person in connection with investigating or
defending against or appearing as a third party witness in connection with any
such loss, claim, damage, liability or action in respect thereof. The indemnity
provided for in this Section 7 will be in addition to any liability that the
Participants may otherwise have to the indemnified parties. The Participants
shall not be liable under this Section 7 for any settlement of any claim or
action effected without their consent, which shall not be unreasonably withheld.
The Issuers shall not, without the prior written consent of such Participant,
effect any settlement or compromise of any pending or threatened proceeding in
respect of which any Participant is or could have been a party, or indemnity
could have been sought hereunder by any Participant, unless such settlement (A)
includes an unconditional written release of the Participants, in form and
substance reasonably satisfactory to the Participants, from all liability on
claims that are the subject matter of such proceeding and (B) does not include
any statement as to an admission of fault, culpability or failure to act by or
on behalf of any Participant.
<PAGE>

                                      -25-

         (c) Promptly after receipt by an indemnified party under this Section 7
of notice of the commencement of any action for which such indemnified party is
entitled to indemnification under this Section 7, such indemnified party will,
if a claim in respect thereof is to be made against the indemnifying party under
this Section 7, notify the indemnifying party of the commencement thereof in
writing; but the omission to so notify the indemnifying party (i) will not
relieve it from any liability under paragraph (a) or (b) above unless and to the
extent such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraphs (a) and (b) above. In case any
such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party;
provided, however, that if (i) the use of counsel chosen by the indemnifying
party to represent the indemnified party would present such counsel with a
conflict of interest, (ii) the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have been advised by counsel that there may be one or more legal defenses
available to it and/or other indemnified parties that are different from or
additional to those available to the indemnifying party, or (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
the indemnified party to represent the indemnified party within a reasonable
time after receipt by the indemnifying party of notice of the institution of
such action, then, in each such case, the indemnifying party shall not have the
right to direct the defense of such action on behalf of such indemnified party
or parties and such indemnified party or parties shall have the right to select
separate counsel to defend such action on behalf of such indemnified party or
parties. After notice from the indemnifying party to such indemnified party of
its election so to assume the defense thereof and approval by such indemnified
party of counsel appointed to defend such action, the indemnifying party will
not be liable to such indemnified party under this Section 7 for any legal or
other expenses, other than reasonable costs of investigation, subsequently
incurred by such indemnified party in connection with the defense thereof,
unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the immediately preceding sentence (it being
understood, however, that in connection with such action the indemnifying party
shall not be liable for the expenses of more than one separate counsel (in
addition to local counsel) in any one action or separate but substantially
similar actions in the same jurisdiction arising out of the same general
allegations or circumstances, designated by Participants who sold a majority in
interest of the Registrable Notes and Exchange Notes sold by all such
Participants in the case of paragraph (a) of this Section 7 or the Issuers in
the case of paragraph (b) of this Section 7, representing the indemnified
parties under such paragraph (a) or paragraph (b), as the case may be, who are
parties to such action or actions) or (ii) the indemnifying party has authorized
in writing the employment of counsel for the indemnified party at the expense of
the indemnifying party. All fees and expenses reimbursed pursuant to this
paragraph (c) shall be reimbursed as they
<PAGE>

                                      -26-

are incurred. After such notice from the indemnifying party to such indemnified
party, the indemnifying party will not be liable for the costs and expenses of
any settlement of such action effected by such indemnified party without the
prior written consent of the indemnifying party (which consent shall not be
unreasonably withheld), unless such indemnified party waived in writing its
rights under this Section 7, in which case the indemnified party may effect such
a settlement without such consent.

         (d) In circumstances in which the indemnity agreement provided for in
the preceding paragraphs of this Section 7 is unavailable to, or insufficient to
hold harmless, an indemnified party in respect of any losses, claims, damages or
liabilities (or actions in respect thereof), each indemnifying party, in order
to provide for just and equitable contribution, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect (i) the relative benefits received by the indemnifying
party or parties on the one hand and the indemnified party on the other from the
offering of the Notes or (ii) if the allocation provided by the foregoing clause
(i) is not permitted by applicable law, not only such relative benefits but also
the relative fault of the indemnifying party or parties on the one hand and the
indemnified party on the other in connection with the statements or omissions or
alleged statements or omissions that resulted in such losses, claims, damages or
liabilities (or actions in respect thereof). The relative benefits received by
the Issuers on the one hand and such Participant on the other shall be deemed to
be in the same proportion as the total proceeds from the offering (before
deducting expenses) of the Notes received by the Issuers bear to the total net
profit received by such Participant in connection with the sale of the Notes.
The relative fault of the parties shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Issuers on the one hand, or the Participants on the
other, the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission or alleged
statement or omission, and any other equitable considerations appropriate in the
circumstances. The parties agree that it would not be equitable if the amount of
such contribution were determined by pro rata or per capita allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the first sentence of this paragraph (d).
Notwithstanding any other provision of this paragraph (d), no Participant shall
be obligated to make contributions hereunder that in the aggregate exceed the
total net profit received by such Participant in connection with the sale of the
Notes, less the aggregate amount of any damages that such Participant has
otherwise been required to pay by reason of the untrue or alleged untrue
statements or the omissions or alleged omissions to state a material fact, and
no person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this paragraph (d),
each person, if any, who controls a Participant within the meaning of Section 15
of the Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Participants, and each
<PAGE>

                                      -27-

director of any Issuer, each officer of any Issuer and each person, if any, who
controls any Issuer within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act, shall have the same rights to contribution as the Issuers.

8.       Rules 144 and 144A

         Each of the Issuers covenants and agrees that it will file the reports
required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the SEC thereunder in a timely manner in
accordance with the requirements of the Securities Act and the Exchange Act and,
if at any time such Issuer is not required to file such reports, such Issuer
will, upon the request of any Holder or beneficial owner of Registrable Notes,
make available such information necessary to permit sales pursuant to Rule 144A.
Each of the Issuers further covenants and agrees, for so long as any Registrable
Notes remain outstanding that it will take such further action as any Holder of
Registrable Notes may reasonably request, all to the extent required from time
to time to enable such holder to sell Registrable Notes without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144(k) under the Securities Act and Rule 144A.

9.       Underwritten Registrations

         If any of the Registrable Notes covered by any Shelf Registration are
to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Holders of a majority in aggregate principal amount of such Registrable
Notes included in such offering and shall be reasonably acceptable to the
Issuers.

         No Holder of Registrable Notes may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

10.      Miscellaneous

         (a) No Inconsistent Agreements. The Issuers have not, as of the date
hereof, and the Issuers shall not, after the date of this Agreement, enter into
any agreement with respect to any of its securities that is inconsistent with
the rights granted to the Holders of Registrable Notes in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Issuers' other issued and outstanding
securities under any such agreements. The Issuers will not enter into any
agreement with
<PAGE>

                                      -28-

respect to any of their securities which will grant to any Person piggy-back
registration rights with respect to any Registration Statement.

         (b) Adjustments Affecting Registrable Notes. The Issuers shall not,
directly or indirectly, take any action with respect to the Registrable Notes as
a class that would adversely affect the ability of the Holders of Registrable
Notes to include such Registrable Notes in a registration undertaken pursuant to
this Agreement.

         (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, otherwise than with the prior written
consent of (I) the Company, and (II)(A) the Holders of not less than a majority
in aggregate principal amount of the then outstanding Registrable Notes and (B)
in circumstances that would adversely affect the Exchanging Dealers, the
Exchanging Dealers holding not less than a majority in aggregate principal
amount of the Exchange Notes held by all Exchanging Dealers; provided, however,
that Section 7 and this Section 10(c) may not be amended, modified or
supplemented without the prior written consent of each Holder and each
Exchanging Dealer (including any person who was a Holder or Exchanging Dealer of
Registrable Notes or Exchange Notes, as the case may be, disposed of pursuant to
any Registration Statement) affected by any such amendment, modification or
supplement. Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders of Registrable Notes whose securities are being sold pursuant
to a Registration Statement and that does not directly or indirectly affect,
impair, limit or compromise the rights of other Holders of Registrable Notes may
be given by Holders of at least a majority in aggregate principal amount of the
Registrable Notes being sold pursuant to such Registration Statement.

         (d) Notices. All notices and other communications (including, without
limitation, any notices or other communications to the Trustee) provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, next-day air courier or facsimile:

                  (i) if to a Holder of the Registrable Notes or any Exchanging
         Dealer, at the most current address of such Holder or Exchanging
         Dealer, as the case may be, set forth on the records of the registrar
         under the Indenture.

                  (ii) if to the Issuers, at the address as follows:

                              c/o    Jostens, Inc.
                                     5501 Norman Center Drive
                                     Minneapolis, Minnesota  55437
                                     Attention:  General Counsel
<PAGE>

                                      -29-

                              with a copy to:

                                     Gibson, Dunn & Crutcher LLP
                                     200 Park Avenue
                                     New York, New York  10166
                                     Attention:  Joerg H. Esdorn, Esq.

         All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; one Business Day after
being timely delivered to a next-day air courier; and when receipt is
acknowledged by the addressee, if sent by facsimile.

         Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address and in the manner specified in such Indenture.

         (e) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors and assigns of each of the parties hereto,
the Holders and the Exchanging Dealers; provided, however, that nothing herein
shall be deemed to permit any assignment, transfer or other disposition of
Registrable Notes in violation of the terms of the Purchase Agreement or the
Indenture.

         (f) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         (g) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW THAT WOULD REQUIRE THE APPLICATION OF ANY OTHER
LAW.

         (i) Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their best efforts to find and employ an alternative
<PAGE>

                                      -30-

means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and
declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable.

         (j) Securities Held by the Issuers or Their Respective Affiliates.
Whenever the consent or approval of Holders of a specified percentage of
Registrable Notes is required hereunder, Registrable Notes held by the Issuers
or their respective affiliates (as such term is defined in Rule 405 under the
Securities Act) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

         (k) Third-Party Beneficiaries. Holders of Registrable Notes and
Exchanging Dealers are intended third-party beneficiaries of this Agreement, and
this Agreement may be enforced by such Persons.

         (l) Entire Agreement. This Agreement, together with the Purchase
Agreement and the Indenture, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein and therein and any and all prior oral or
written agreements, representations, or warranties, contracts, understandings,
correspondence, conversations and memoranda between the Holders on the one hand
and the Issuers on the other, or between or among any agents, representatives,
parents, subsidiaries, affiliates, predecessors in interest or successors in
interest with respect to the subject matter hereof and thereof are merged herein
and replaced hereby.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                              JOSTENS, INC.

                                              By:  /s/ Robert C. Buhrmaster
                                                 ------------------------------
                                                  Name:  Robert C. Buhrmaster
                                                  Title: Chairman of the Board,
                                                         President and Chief
                                                         Executive Officer

                                              AMERICAN YEARBOOK COMPANY, INC.,
                                                 as Guarantor

                                              By:  /s/ Robert C. Buhrmaster
                                                 ------------------------------
                                                  Name:  Robert C. Buhrmaster
                                                  Title: President
<PAGE>

                                      -31-

The foregoing Agreement is hereby
confirmed and accepted as of the date
first above written.

DEUTSCHE BANK SECURITIES INC.

By:  /s/ Matthew Headington
    ----------------------------------
    Name:  Matthew Headington
    Title: Vice President

UBS WARBURG LLC

By:  /s/ Robert Parsons
    ----------------------------------
    Name:  Robert Parsons
    Title: Managing Director
           Leveraged Finance

By:  /s/ P. Whitridge Williams
    ----------------------------------
    Name:  P. Whitridge Williams
    Title: Director
           Leveraged Finance

GOLDMAN, SACHS & CO.

 /s/ GOLDMAN, SACHS & CO.
----------------------------------

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