Document:

Exhibit 4.2

 

EXECUTION COPY

 

 

KKR FINANCIAL HOLDINGS LLC, as Company,

 

-and-

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

 

 

FIRST SUPPLEMENTAL INDENTURE

Dated as of January 15, 2010

to

INDENTURE

Dated as of January 15, 2010

 

7.50% Convertible Senior Notes due 2017

 

 

 

TABLE
OF CONTENTS

 

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  
	
  DEFINITIONS

  
	
   

  
	
  SECTION 1.01.

  	
  Scope of
  Supplemental Indenture

  	
  2

  
	
  SECTION 1.02.

  	
  Definitions

  	
  2

  
	
   

  
	
  ARTICLE 2

  
	
  ISSUE,
  DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

  
	
   

  
	
  SECTION 2.01.

  	
  Title and
  Terms; Payments

  	
  8

  
	
  SECTION 2.02.

  	
  Book-Entry
  Provisions for Global Notes

  	
  9

  
	
   

  
	
  ARTICLE 3

  
	
  REDEMPTION
  AND REPURCHASE OF NOTES

  
	
   

  
	
  SECTION 3.01.

  	
  Optional
  Redemption of Notes

  	
  9

  
	
  SECTION 3.02.

  	
  Notice of
  Optional Redemption; Selection of Notes

  	
  10

  
	
  SECTION 3.03.

  	
  Payment of
  Notes Called for Redemption by the Company

  	
  11

  
	
  SECTION 3.04.

  	
  Sinking Fund

  	
  12

  
	
  SECTION 3.05.

  	
  Repurchase at
  Option of Holders Upon a Fundamental Change

  	
  12

  
	
  SECTION 3.06.

  	
  Company
  Repurchase Notice

  	
  14

  
	
  SECTION 3.07.

  	
  Withdrawal of
  Repurchase Notice

  	
  15

  
	
  SECTION 3.08.

  	
  Deposit of
  Repurchase Price

  	
  15

  
	
  SECTION 3.09.

  	
  Notes
  Repurchased in Part

  	
  15

  
	
  SECTION 3.10.

  	
  Third Party
  Purchase

  	
  16

  
	
  SECTION 3.11.

  	
  Repayment to
  the Company

  	
  16

  
	
   

  
	
  ARTICLE 4

  
	
  DEFAULT
  AND REMEDIES

  
	
   

  
	
  SECTION 4.01.

  	
  Events of Default

  	
  16

  
	
  SECTION 4.02.

  	
  Special
  Interest Notice

  	
  19

  
	
  SECTION 4.03.

  	
  Payments of
  Notes on Default; Suit Therefor

  	
  20

  
	
  SECTION 4.04.

  	
  Application of
  Monies Collected by Trustee

  	
  21

  
	
  SECTION 4.05.

  	
  Proceedings by
  Noteholder

  	
  22

  
	
  SECTION 4.06.

  	
  Proceedings by
  Trustee

  	
  22

  
	
  SECTION 4.07.

  	
  Remedies
  Cumulative and Continuing

  	
  23

  
	
  SECTION 4.08.

  	
  Direction of
  Proceedings and Waiver of Defaults by Majority of Noteholders

  	
  23

  
	
  SECTION 4.09.

  	
  Notice of
  Defaults

  	
  23

  
	
  SECTION 4.10.

  	
  Undertaking to
  Pay Costs

  	
  24

  

 

 

	
  ARTICLE 5

  
	
  SUPPLEMENTAL
  INDENTURES

  
	
   

  
	
  SECTION 5.01.

  	
  Supplemental
  Indentures Without Consent of Noteholders

  	
  24

  
	
  SECTION 5.02.

  	
  Supplemental
  Indenture With Consent of Noteholders

  	
  25

  
	
  SECTION 5.03.

  	
  Effect of
  Supplemental Indenture

  	
  26

  
	
  SECTION 5.04.

  	
  Notation on
  Notes

  	
  27

  
	
  SECTION 5.05.

  	
  Evidence of
  Compliance of Supplemental Indenture to be Furnished to Trustee

  	
  27

  
	
   

  
	
  ARTICLE 6

  
	
  CONSOLIDATION,
  MERGER, SALE, CONVEYANCE AND LEASE

  
	
   

  
	
  SECTION 6.01.

  	
  Company
  May Consolidate on Certain Terms

  	
  27

  
	
  SECTION 6.02.

  	
  Company
  Successor to be Substituted

  	
  28

  
	
   

  
	
  ARTICLE 7

  
	
  SATISFACTION
  AND DISCHARGE

  
	
   

  
	
  SECTION 7.01.

  	
  Discharge of
  Indenture

  	
  28

  
	
  SECTION 7.02.

  	
  Deposited
  Monies to be Held in Trust by Trustee

  	
  29

  
	
  SECTION 7.03.

  	
  Paying Agent
  to Repay Monies Held

  	
  29

  
	
  SECTION 7.04.

  	
  Return of
  Unclaimed Monies

  	
  29

  
	
  SECTION 7.05.

  	
  Reinstatement

  	
  30

  
	
   

  
	
  ARTICLE 8

  
	
  CONVERSION
  OF NOTES

  
	
   

  
	
  SECTION 8.01.

  	
  Right to
  Convert

  	
  30

  
	
  SECTION 8.02.

  	
  Exercise of
  Conversion Right; No Adjustment for Interest or Dividends

  	
  30

  
	
  SECTION 8.03.

  	
  Cash Payments
  in Lieu of Fractional Shares

  	
  32

  
	
  SECTION 8.04.

  	
  Conversion
  Rate

  	
  32

  
	
  SECTION 8.05.

  	
  Adjustment of
  Conversion Rate

  	
  32

  
	
  SECTION 8.06.

  	
  Change in
  Conversion Right Upon Certain Reclassifications, Business Combinations and
  Asset Sales

  	
  38

  
	
  SECTION 8.07.

  	
  Taxes on
  Shares Issued

  	
  40

  
	
  SECTION 8.08.

  	
  Reservation of
  Shares; Shares to be Fully Paid; Compliance With Governmental Requirements

  	
  40

  
	
  SECTION 8.09.

  	
  Responsibility
  of Trustee

  	
  40

  
	
  SECTION 8.10.

  	
  Notice to
  Holders Prior to Certain Actions

  	
  41

  
	
  SECTION 8.11.

  	
  Shareholder
  Rights Plans

  	
  41

  
	
  SECTION 8.12.

  	
  Settlement Upon
  Conversion

  	
  42

  
	
  SECTION 8.13.

  	
  Make-Whole Adjustments Upon
  Certain Fundamental Changes, Early Redemptions or a Termination of Conversion
  Rights

  	
  44

  
	
  SECTION 8.14.

  	
  Ownership
  Limit; Withholding Tax

  	
  46

  
	
  SECTION 8.15.

  	
  Calculation In
  Respect of Notes

  	
  46

  

 

 

	
  SECTION 8.16.

  	
  Right to
  Terminate Conversion Rights

  	
  46

  
	
   

  
	
  ARTICLE 9

  
	
  MISCELLANEOUS
  PROVISIONS

  
	
   

  
	
  SECTION 9.01.

  	
  Addresses for
  Notices, etc.

  	
  47

  
	
  SECTION 9.02.

  	
  Governing Law

  	
  48

  
	
  SECTION 9.03.

  	
  Trust
  Indenture Act

  	
  48

  
	
  SECTION 9.04.

  	
  No Security
  Interest Created

  	
  48

  
	
  SECTION 9.05.

  	
  Execution in
  Counterparts

  	
  48

  
	
  SECTION 9.06.

  	
  Severability

  	
  48

  
	
  SECTION 9.07.

  	
  Ratification
  of Original Indenture

  	
  48

  
	
   

  
	
  EXHIBIT

  
	
   

  
	
  Exhibit A    Form of Note

  	
  A-1

  

 

 

FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of January 15, 2010,
between KKR Financial Holdings LLC, a Delaware limited liability company (the “Company”), and Wells Fargo Bank, National Association, a
banking association organized under the laws of the United States, as trustee
(the “Trustee”), to the indenture dated as of
January 15, 2010, between the Company and the Trustee (as amended or
supplemented from time to time in accordance with the terms thereof, the “Original Indenture”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company executed and delivered the Original
Indenture to the Trustee to provide, among other things, for the issuance, from
time to time, of the Company’s unsecured Securities, in an unlimited aggregate
principal amount, in one or more series to be established by the Company under,
and authenticated and delivered as provided in, the Original Indenture;

 

WHEREAS, Section 901(4) of the Original
Indenture provides for the Company and the Trustee to enter into an indenture
supplemental to the Original Indenture to establish the form and terms of
Securities of any series as contemplated by Sections 201 and 301 of the
Original Indenture;

 

WHEREAS, the Board of Directors has duly adopted
resolutions authorizing the Company to execute and deliver this Supplemental
Indenture;

 

WHEREAS, pursuant to the terms of the Original
Indenture, the Company desires to establish a new series of its Securities to
be known as its “7.50% Convertible Senior Notes due 2017” (the “Notes”), the form and substance of such
Notes and the terms, provisions and conditions thereof to be set forth as
provided in the Original Indenture and this Supplemental Indenture;

 

WHEREAS, the Form of Note, the certificate of
authentication to be borne by each Note and the Form of Conversion Notice,
Form of Company Repurchase Notice and Form of Assignment and Transfer
contemplated under the terms of the Notes are to be substantially in the forms
hereinafter provided; and

 

WHEREAS, the Company has requested that the Trustee
execute and deliver this Supplemental Indenture, and all requirements necessary
to make (i) this Supplemental Indenture a valid instrument in accordance
with its terms, and (ii) the Notes, when executed by the Company and
authenticated and delivered by the Trustee, the valid obligations of the
Company, in each case, have been performed, and the execution and delivery of
this Supplemental Indenture have been duly authorized in all respects.

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE
WITNESSETH, for and in consideration of the premises and the purchases of the
Notes by the Holders thereof, it is mutually agreed, for the benefit of the
Company and the equal and proportionate benefit of all Holders of the Notes, as
follows:

 

 

ARTICLE 1

DEFINITIONS

 

SECTION 1.01.                                         Scope
of Supplemental Indenture.  The changes, modifications and supplements to
the Original Indenture effected by this Supplemental Indenture shall be
applicable only with respect to, and shall only govern the terms of, the Notes,
which may be issued from time to time, and shall not apply to any other
Securities that may be issued under the Original Indenture unless a
supplemental indenture with respect to such other Securities specifically
incorporates such changes, modifications and supplements.  The provisions of this Supplemental Indenture
shall supersede any corresponding or conflicting provisions in the Original
Indenture.

 

SECTION 1.02.                                         Definitions.  For all purposes of the Indenture, except as
otherwise expressly provided or unless the context otherwise requires:

 

(i)                                     the terms defined in this Article 1
shall have the meanings assigned to them in this Article 1 and include the
plural as well as the singular;

 

(ii)                                  all words, terms and phrases defined in
the Original Indenture (but not otherwise defined herein) shall have the same
meanings as in the Original Indenture;

 

(iii)                               all other terms used herein that are defined in the
Trust Indenture Act, either directly or by reference therein, shall have the
meanings assigned to them in the Trust Indenture Act;

 

(iv)                              all accounting terms not otherwise
defined herein shall have the meanings assigned to them in accordance with
generally accepted accounting principles, and, except as otherwise herein
expressly provided, the term “generally accepted accounting principles” with
respect to any computation required or permitted hereunder shall mean such
accounting principles as are generally accepted at the date of this instrument;
and

 

(v)                                 the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Supplemental Indenture as a
whole and not to any particular Article, Section or other subdivision.

 

“Additional Notes”
has the meaning specified in Section 2.01.

 

“Additional Shares”
has the meaning specified in Section 8.13(a).

 

“Cash Settlement”
has the meaning specified in Section 8.12(a).

 

“Change in Control”
means the occurrence at any time any of the following events:

 

(1) consummation of any transaction or
event (whether by means of a share exchange or tender offer applicable to the
Common Shares, a liquidation, consolidation, recapitalization, reclassification,
combination or merger of the Company or a sale, lease or other transfer of all
or substantially all of the assets of the Company and its consolidated
Subsidiaries) or a series of related transactions or events pursuant to which
all of the then outstanding Common Shares are 

 

2

 

exchanged for, converted
into or constitute solely the right to receive cash, securities or other
property;

 

(2) any “person” or “group” (as such
terms are used for purposes of Sections 13(d) and 14(d) of the
Exchange Act, whether or not applicable), other than the Company or any
Subsidiary of the Company or any employee benefit plan of the Company or such
Subsidiary, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of more than 50% of the total
voting power in the aggregate of all classes of limited liability company
interests or other equity interests of the Company then outstanding entitled to
vote generally in elections of the Company’s directors; or

 

(3) during any period of 12 consecutive
months after the date of original issuance of the Notes, persons who at the
beginning of such 12-month period constituted the board of directors of the
Company, together with any new persons whose election, appointment, designation
or nomination was approved by a vote of a majority of the persons then still
comprising the board of directors of the Company who were either members of the
board of directors of the Company at the beginning of such period or whose
election, appointment, designation or nomination for election was previously so
approved, cease for any reason to constitute a majority of the board of
directors of the Company.

 

Notwithstanding the foregoing but solely for
purposes of the provisions of the Fundamental Change repurchase right set forth
in Section 3.05, even if any of the events specified in the preceding
clauses (1) through (3) have occurred, a Change in Control will not
be deemed to have occurred if at least 90% of the consideration (excluding cash
payments for fractional shares and cash payments made pursuant to dissenters’
appraisal rights) in a merger, consolidation or other transaction otherwise
constituting a Change in Control consists of shares of common stock traded on a
U.S. national securities exchange (or will be so traded immediately following
such merger, consolidation or other transaction) and as a result of the merger,
consolidation or other transaction the Notes become convertible into such
shares of common stock.

 

For the purposes of this definition, “person”
includes any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of
the Exchange Act.

 

“close of business”
means 5:00 p.m. (New York City time).

 

“Closing Sale Price,”
with respect to Common Shares or other equity securities or similar equity
interests or other publicly traded securities on any date means the closing
sale price per Common Share, equity security, equity interest or other
security, as the case may be (or, if no closing sale price is reported, the
average of the closing bid and ask prices or, if more than one in either case,
the average of the average closing bid and the average closing ask prices), on
such date as reported on the principal United States securities exchange on
which the Common Shares or such other equity securities or similar equity
interests or other securities are traded or, if the Common Shares or such other
equity securities or similar equity interests or other securities are not
listed on a United States national or regional securities exchange, as reported
by an established over-the-counter trading market in the United States. The
Closing Sale Price shall be determined without regard to after-hours trading or
extended market making. In 

 

3

 

the absence of the foregoing, the Company
shall determine the Closing Sale Price on such basis as it considers
appropriate.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Combination Settlement”
has the meaning specified in Section 8.12(a).

 

“Company” has
the meaning set forth in the first paragraph of this Supplemental Indenture.

 

“Company Repurchase Notice”
has the meaning specified in Section 3.06(a).

 

“Company Repurchase Notice
Date” means the date on which the Company provides the Company
Repurchase Notice to Holders in accordance with the provisions of Section 3.05(b).

 

“Conversion
Agent” means the conversion agent appointed by the Company to act as
set forth in Article 8, which, initially, shall be the Trustee.

 

“Conversion Date”
has the meaning specified in Section 8.02.

 

“Conversion Notice”
has the meaning specified in Section 8.02.

 

“Conversion Obligation”
has the meaning specified in Section 8.12(a).

 

“Conversion
Price” on any date of determination means $1,000 divided by the
Conversion Rate as of such date.

 

“Conversion
Rate” has the meaning specified in Section 8.04.

 

“Conversion Rights
Termination Date” has the meaning provided in Section 8.16.

 

“Custodian”
means Wells Fargo Bank, National Association, as custodian with respect to the
Notes in global form, or any successor entity thereto.

 

“Daily Conversion Value”
has the meaning provided in Section 8.12(d).

 

“Daily Measurement Value”
has the meaning provided in Section 8.12(d).

 

“Daily Settlement Amount”
has the meaning provided in Section 8.12(d).

 

“Daily VWAP” has the
meaning specified in Section 8.12(d).

 

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

 

“Depository”
mean The Depositary Trust Company or any successor thereto.

 

“Effective Date”
has the meaning specified in Section 8.13(b).

 

4

 

“Event of Default”
means any event specified in Section 4.01 as an Event of Default.

 

“Ex-Dividend
Date” means, with respect to any distribution on Common Shares, the
first date upon which a sale of Common Shares does not automatically transfer
the right to receive the relevant distribution from the seller of Common Shares
to the buyer.

 

“Form of Assignment
and Transfer” shall mean the “Form of Assignment and Transfer”
attached to the Form of Note attached hereto as Exhibit A.

 

“Form of Conversion
Notice” shall mean the “Form of Conversion Notice” attached to
the Form of Note attached hereto as Exhibit A.

 

“Form of Company
Repurchase Notice” shall mean the “Form of Company Repurchase
Notice” attached to the Form of Note attached hereto as Exhibit A.

 

“Fundamental Change” means
the occurrence of a Change in Control or a Termination of Trading.

 

“Fundamental Change
Purchase Date” has the meaning specified in Section 3.05(a).

 

“Fundamental Change
Purchase Price” has the meaning specified in Section 3.05(a).

 

“Global Note”
means any Note that is a Global Security.

 

“Indenture”
means the Original Indenture, as originally executed and as supplemented from
time to time by one or more indentures supplemental thereto, including this
Supplemental Indenture, entered into pursuant to the applicable provisions of
the Indenture, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be a part of and govern the Original Indenture and this Supplemental
Indenture.

 

“Initial Notes”
has the meaning specified in Section 2.01.

 

“interest”
means, when used with reference to the Notes, any interest payable under the
terms of the Notes, including Special Interest, if any.

 

“Interest Payment Date”
means January 15 and July 15 of each year, beginning on July 15,
2010.

 

“Issue Date”
means the first date the Notes are originally issued as set forth on the face
of such Note under this Supplemental Indenture.

 

“Make-Whole
Fundamental Change” has the meaning specified in Section 8.13.

 

“Market
Disruption Event” means the occurrence or existence for more than
one half-hour period in the aggregate on any Trading Day for the Common Shares
of any suspension or limitation imposed on trading (by reason of movements in
price exceeding limits permitted by the New York Stock Exchange or otherwise)
in the Common Shares or in any options contracts 

 

5

 

or future contracts relating
to the Common Shares, and such suspension or limitation occurs or exists at any
time before 1:00 p.m. (New York City time) on such day.

 

“Merger Event”
has the meaning specified in Section 8.06.

 

“Note”
or “Notes” has the meaning
specified in the fourth paragraph of the recitals of this Supplemental
Indenture, and shall include any Additional Notes issued pursuant to Section 2.01.

 

“Noteholder,” “Holder” or “holder” as
applied to any Note, or other similar terms (but excluding the term “beneficial
holder”), means any Person in whose name at the time a particular Note is
registered in the Security Register.

 

“Note Registrar”
has the meaning specified in Section 2.01.

 

“Observation Period”
has the meaning specified in Section 8.12(d).

 

“Officer” means
the Chairman of the Board, the Vice Chairman, the Chief Executive Officer, the
President, any Executive Vice President, any Senior Vice President, any Vice
President, the Treasurer or the Secretary or any Assistant Treasurer or
Assistant Secretary of the Company.

 

“open of business”
means 9:00 a.m. (New York City time).

 

“Operating Agreement”
means the Amended and Restated Operating Agreement of the Company, as amended
or supplemented from time to time in accordance with the terms thereof, and
including any successor thereto or, if the Company shall at any time be an
entity other than a limited liability company, the organizational or governing
documents of such other entity.

 

“Original
Indenture” has the meaning specified in the first paragraph of this
Supplemental Indenture.

 

“Physical Settlement”
has the meaning specified in Section 8.12(a).

 

“Prospectus Supplement”
means the Company’s prospectus supplement dated January 12, 2010 relating
to the Notes.

 

“Redemption Date”
means the date fixed by the Company for redemption of all or any portion of the
Notes in accordance with the provisions of Section 3.02 hereof.

 

“Redemption Notice”
has the meaning specified in Section 3.05.

 

“Redemption Price”
means the price at which the Notes may be redeemed, as set forth in Section 3.01.

 

“Reference Dividend”
has the meaning specified in Section 8.05(d).

 

“Regular
Record Date” for the interest payable on any Interest Payment Date
means the July 1 or January 1 (whether or not a Business Day) next
preceding such Interest Payment Date.

 

6

 

“REIT” means a
real estate investment trust within the meaning of Section 856(a) of
the Code.

 

“REIT Subsidiary”
means any Subsidiary of the Company that has elected, or intends to elect for
the current taxable year, to be qualified as a REIT under the Code.

 

“Repurchase Notice”
has the meaning specified in Section 3.05(c).

 

“Scheduled
Trading Day” means any day that is scheduled to be a Trading Day.

 

“Settlement Amount”
means the amount due upon Physical Settlement, Cash Settlement or Combination
Settlement of the Company’s Conversion Obligation as specified in Section 8.12(c).

 

“Settlement Method”
means, with respect to any conversion of Notes, Physical Settlement, Cash
Settlement or Combination Settlement, as elected (or deemed to have been
elected) by the Company.

 

“Settlement Notice”
has the meaning specified in Section 8.12(b).

 

“Share
Price” has the meaning specified
in Section 8.13.

 

“Special Interest”
has the meaning set forth in Section 4.01.

 

“Special Interest Notice”
has the meaning specified in Section 4.02.

 

“Specified Dollar Amount”
has the meaning specified in Section 8.12(d).

 

“Spin-Off”
has the meaning specified in Section 8.05(c).

 

“Stated Maturity” means January 15,
2017.

 

“Structured Finance
Subsidiary” means a Subsidiary the primary function of which is to
act as an issuer, depositor or special purpose entity in connection with
issuances of obligations collateralized by loans, bonds, mortgages or other
debt obligations issued by third parties.

 

“Supplemental Indenture”
has the meaning specified in the first paragraph hereof.

 

“Termination Notice”
has the meaning specified in Section 8.16.

 

“Termination of Trading”
will be deemed to have occurred if the Common Shares (or other common equity
interests into which the Notes are then convertible) are not listed on a United
States national securities exchange or cease to be traded in contemplation of a
delisting, other than as a result of a transaction described in clause (1) of
the definition of Change in Control.

 

“Trading Day”
means a day on which (i) there is no Market Disruption Event and (ii) trading
in securities generally occurs on the New York Stock Exchange or, if the Common
Shares are not then listed on the New York Stock Exchange, on the principal
other United States 

 

7

 

national or regional
securities exchange on which the Common Shares are then listed or, if the
Common Shares are not then listed on a United States national or regional
securities exchange, in the principal other market on which the Common Shares
are then traded. If the Common Shares (or other security for which a Daily VWAP
must be determined) are not so listed or quoted, “Trading Day” means a Business
Day.

 

“Underwriters”
means Citigroup Global Markets Inc., J.P. Morgan Securities Inc., BofA Merrill
Lynch and KKR Capital Markets LLC.

 

ARTICLE 2

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND
EXCHANGE OF NOTES

 

SECTION 2.01.                                         Title
and Terms; Payments.  There is
hereby established a series of Securities designated the “7.50% Convertible
Senior Notes due 2017” initially limited in aggregate principal amount to
$172.5 million, which amount shall be as set forth in a Company Order for the
authentication and delivery of Notes pursuant to Section 303 of the
Original Indenture.  The Notes shall be
issued only in fully registered form, in denominations of $2,000 and integral
multiples of $1,000 in excess thereof.

 

The principal amount of Notes then Outstanding shall
be payable at the Stated Maturity. 
Interest on the Notes shall accrue at a rate of 7.50% per annum, from
and including January 15, 2010 or from the most recent date on which
interest has been paid or duly provided for, until the principal thereof is
paid or made available for payment. 
Interest shall be payable in arrears on each Interest Payment Date,
beginning on July 15, 2010, to the Person in whose name a Note is
registered on the Security Register at the close of business on the Regular
Record Date immediately preceding the applicable Interest Payment Date.

 

The Company may, without the consent of the Holders
of the Notes, hereafter issue additional Notes (“Additional Notes”) under the Indenture with the same terms and
conditions, except for any difference in the issue price and interest accrued
prior to the issue date of the Additional Notes, and with the same CUSIP number
as the Notes issued on the date of this Supplemental Indenture (the “Initial Notes”) in an unlimited aggregate
principal amount; provided that
such Additional Notes must be part of the same issue as the Initial Notes for
U.S. federal income tax purposes.  Any
such Additional Notes shall constitute a single series together with the
Initial Notes for all purposes hereunder, including, without limitation, for purposes
of any waivers, supplements or amendments to the Indenture requiring the
approval of Holders of the Notes and any offers to purchase the Notes.

 

The Form of Note shall be substantially as set
forth in Exhibit A and the Form of Conversion Notice, the Form of
Company Repurchase Notice and the Form of Assignment and Transfer shall be
substantially as set forth in Attachments 1, 2 and 3, respectively, to Exhibit A,
each of which is incorporated into and shall be deemed a part of this
Supplemental Indenture, and in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
the Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined to be necessary or appropriate by the
Officers of the Company executing such Notes, as evidenced by their execution
of the Notes.

 

8

 

The Company shall pay the principal of and interest
on any Global Note in immediately available funds to the Depositary or its
nominee, as the case may be, as the registered Holder of such Global Note.  The Company shall pay the principal of and
interest on any certificated Notes at the office or agency designated by the
Company for that purpose by check mailed to the Holders of those Notes, unless
a Holder timely requests to have such amounts paid by wire transfer in
accordance with the final three sentences of this paragraph, in which case the
Company shall instead pay such principal of and interest on any certificated
Notes by wire transfer in accordance with the transfer instructions provided in
such request.  The Company has initially
designated the Trustee as its Paying Agent and Security Registrar in respect of
the Notes (the “Note Registrar”) and its agency in
Minneapolis, MN as a place where Notes may be presented for payment or for
registration of transfer.  The Company
may, however, change the Paying Agent or Note Registrar without prior notice to
the Holders thereof, and the Company may act as Paying Agent or Note
Registrar.  Payments on any certificated
Notes having an aggregate principal amount of more than $5,000,000 shall be
payable, if the Holder of such certificated Notes so requests in accordance
with the two immediately succeeding sentences, by wire transfer of immediately
available funds to an account specified by the Holder within the United States.
To request payment by wire transfer, the Holder must give appropriate transfer
instructions to the Trustee or other Paying Agent (if not the Trustee) at least
15 Business Days before the requested wire payment is due and, in the case of
any interest payments, the instructions must be given by the Person who is
shown in the Security Register as the Holder of the certificated Note on the
applicable Regular Record Date. All applications for payment by wire transfer
shall be made no later than the applicable Regular Record Date and shall remain
in effect unless and until new instructions are given in the manner described
in the immediately preceding sentence.

 

SECTION 2.02.                                         Book-Entry
Provisions for Global Notes. The Notes initially shall
be issued in the form of one or more Global Notes without interest coupons (i) registered
in the name of Cede & Co., as nominee of the Depositary and (ii) delivered
to the Trustee as custodian for the Depositary.

 

ARTICLE 3

REDEMPTION AND REPURCHASE OF NOTES

 

SECTION 3.01.                                         Optional
Redemption of Notes.  Solely for
the purposes of the Notes, Article Eleven of the Original Indenture shall
be deleted and shall be replaced in the entirety by this Article 3.  The Company shall have the right to redeem
the Notes on the terms set forth in this Section 3.01 in order to preserve
the status of any of its Subsidiaries as a REIT. If, at any time, the Company
determines it is necessary to redeem the Notes in order to preserve the status
of any of its Subsidiaries as a REIT, the Company may, upon the notice set
forth in Section 3.02, redeem the Notes for cash, in whole or in part, at
a Redemption Price equal to 100% of the principal amount of the Notes to be
redeemed plus unpaid interest, if any, accrued thereon to, but excluding, the
Redemption Date (the “Redemption Price”)
unless the Redemption Date falls after a Regular Record Date but on or prior to
the immediately succeeding Interest Payment Date, in which case the Company
shall instead pay the full amount of accrued and unpaid interest on any Notes
to be redeemed to the Holder of such Notes as of the close of business on such
Regular Record Date and the Redemption Price shall be 100% of the principal
amount of Notes to be redeemed; provided  that, in connection with any such redemption, the Company 

 

9

 

shall provide the Trustee
with an Officers’ Certificate evidencing that the Board of Directors has, in
good faith, made the determination that it is necessary to redeem the Notes in
order to preserve the status of one or more of the Company’s Subsidiaries as a
REIT.

 

The foregoing redemption right shall terminate if
the restrictions on ownership and transfer of the Common Shares set forth in Article 3
(or any successor provisions) of the Operating Agreement shall terminate or if
the Board of Directors shall revoke or otherwise terminate all elections by all
of the Company’s REIT Subsidiaries to qualify as a REIT pursuant to 856(g) (or
any successor thereto) of the Code or if the Company shall no longer own a REIT
Subsidiary. Other than as set forth in this Section 3.01, the Notes shall
not be subject to redemption at the option of the Company prior the Stated
Maturity thereof.

 

No Notes may be redeemed if the principal amount of
the Notes has been accelerated, and such acceleration has not been rescinded,
on or prior to the Redemption Date.  The
Redemption Date must be a Business Day.

 

SECTION 3.02.                                         Notice
of Optional Redemption; Selection of Notes.  In case the Company shall desire to exercise
the right to redeem all or, as the case may be, any part of the Notes pursuant
to Section 3.01, it shall fix a date for redemption and it or, at its
written request received by the Trustee not fewer than five (5) Business
Days prior (or such shorter period of time as may be acceptable to the Trustee)
to the date the notice of redemption is to be mailed, the Trustee in the name
of and at the expense of the Company, shall mail or cause to be mailed (or in
the case of Notes held in book-entry form, shall electronically transmit) a
notice of such redemption not fewer than thirty (30) calendar days nor more
than sixty (60) calendar days prior to the Redemption Date to each Holder of
Notes so to be redeemed in whole or in part at its last address as the same
appears on the Security Register; provided that
if the Company makes such request of the Trustee, the text of the notice shall
be prepared by the Company.  Such mailing
shall be by first class mail.  The
notice, if mailed in the manner herein provided, shall be conclusively presumed
to have been duly given, whether or not the Holder receives such notice.  In any case, failure to give such notice by
mail or any defect in the notice to the Holder of any Note designated for
redemption as a whole or in part shall not affect the validity of the proceedings
for the redemption of any other Note. 
Concurrently with the mailing of any such notice of redemption, the
Company shall issue a press release through Dow Jones & Company, Inc.,
Bloomberg Business News or PR Newswire or a substantially equivalent financial
news organization announcing such redemption, the form and content of which
press release shall be determined by the Company in its sole discretion.  The Company shall also publish that
information in a newspaper of general circulation in The City of New York, or
on its web site, or through such other public medium as it deems appropriate at
that time.  The failure to issue any such
press release to publish such information or any defect therein shall not affect
the validity of the Redemption Notice or any of the proceedings for the
redemption of any Note called for redemption.

 

Each such notice of redemption shall specify: (i) the
aggregate principal amount of Notes to be redeemed, (ii) CUSIP number or
numbers of the Notes being redeemed, (iii) the Redemption Date, (iv) the
Redemption Price at which Notes are to be redeemed, (v) the place or places of
payment and that payment will be made upon presentation and surrender of such
Notes, (iv) that interest accrued and unpaid to the Redemption Date will
be paid as specified in said notice, and that on and after said date interest
thereon or on the portion thereof to be redeemed 

 

10

 

will cease to accrue, (vii) that
the Holder has a right to convert the Notes called for redemption, (viii) the
Conversion Rate on the date of such notice and (ix) the time and date on
which the right to convert such Notes or portions thereof pursuant to this
Supplemental Indenture will expire.  If
fewer than all the Notes are to be redeemed, the notice of redemption shall
identify the Notes to be redeemed (including CUSIP numbers, if any).  In case any Note is to be redeemed in part
only, the notice of redemption shall state the portion of the principal amount
thereof to be redeemed and shall state that, on and after the Redemption Date,
upon surrender of such Note, a new Note or Notes in principal amount equal to
the unredeemed portion thereof will be issued.

 

Whenever any Notes are to be redeemed, the Company
shall give the Trustee written notice of the Redemption Date, together with an
Officers’ Certificate as to the aggregate principal amount of Notes to be
redeemed, not fewer than thirty (30) calendar days (or such shorter period of
time as may be acceptable to the Trustee) prior to the Redemption Date.

 

On or prior to the Redemption Date specified in the
notice of redemption given as provided in this Section 3.02, the Company
shall deposit with the Paying Agent (or, if the Company is acting as its own
Paying Agent, set aside, segregate and hold in trust as provided in Section 4.04)
an amount of money in immediately available funds sufficient to redeem on the
Redemption Date all the Notes (or portions thereof) so called for redemption
(other than those theretofore surrendered for exchange) at the appropriate
Redemption Price, together with accrued interest to the Redemption Date; provided that if such payment is made on the Redemption
Date, it must be received by the Paying Agent, by 11:00 a.m., New York
City time, on such date.  The Company
shall be entitled to retain any interest, yield or gain on amounts deposited
with the Paying Agent pursuant to this Section 3.02 in excess of amounts
required hereunder to pay the Redemption Price; provided,
however, that the Trustee shall be under
no liability for interest on any money received by it hereunder except as
otherwise agreed to with the Company in writing.  If any Note called for redemption is
converted pursuant hereto prior to such Redemption Date, any money deposited
with the Paying Agent or so segregated and held in trust for the redemption of
such Note shall be paid to the Company or, if then held by the Company, shall
be discharged from such trust.

 

If less than all of the Outstanding Notes are to be
redeemed, the Trustee shall select the Notes or portions thereof of the Global
Note or the Notes in certificated form to be redeemed (in principal amounts of
$2,000 or integral multiples of $1,000 in excess thereof) on a pro rata basis
or by another method the Trustee deems fair and appropriate.  If any Note selected for redemption in part
is submitted for conversion in part after such selection, the portion of such
Note submitted for conversion shall be deemed (so far as may be possible) to be
taken from the portion selected for redemption. 
The Notes (or portions thereof) so selected for redemption shall be
deemed duly selected for redemption for all purposes hereof, notwithstanding
that any such Note is submitted for conversion in part before the mailing of
the notice of redemption.

 

Upon any redemption of less than all of the
Outstanding Notes, the Company and the Trustee may (but need not), solely for
purposes of determining the pro rata allocation among such Notes that are
outstanding at the time of redemption, treat as Outstanding any Notes
surrendered for conversion during the period in which Notes are selected for
redemption.

 

SECTION 3.03.                                         Payment
of Notes Called for Redemption by the Company.  If notice of redemption has been given as
provided in Section 3.02, the Notes or portion of Notes with 

 

11

 

respect to which such notice
has been given shall, unless converted pursuant to the terms hereof, become due
and payable on the Redemption Date at the place or places stated in such notice
at the Redemption Price, and unless the Company shall default in the payment of
the amounts owing on the Notes upon such redemption, interest on the Notes or
portion of Notes so called for redemption shall cease to accrue on and after
such date and, except as provided in Section 7.05 and Section 11.02,
the Notes shall cease to be entitled to any benefit or security under this
Supplemental Indenture, and the Holders thereof shall have no right in respect
of such Notes except the right to receive the Redemption Price thereof.  On presentation and surrender of such Notes
at a place of payment in said notice specified, the said Notes or the specified
portions thereof shall be paid and redeemed by the Company at the Redemption
Price.

 

Upon presentation of any Note redeemed in part only,
the Company shall execute and the Trustee shall authenticate and make available
for delivery to the Holder thereof, at the expense of the Company, a new Note
or Notes, of authorized denominations, in principal amount equal to the
unredeemed portion of the Notes so presented.

 

Notes and portions of Notes that are to be redeemed
pursuant to this Article 3 shall be convertible by the Holder thereof
until 5:00 p.m., New York City time, on the Business Day immediately
preceding the Redemption Date, unless the Company shall fail to pay the
Redemption Price.

 

SECTION 3.04.                                         Sinking
Fund.  There shall be no sinking fund
provided for the Notes and the provisions of Article Twelve of the
Original Indenture shall not apply to the Notes.

 

SECTION 3.05.                                         Repurchase at Option of
Holders Upon a Fundamental Change.

 

(a)                                  If there shall occur a Fundamental Change
at any time prior to the Stated Maturity of the Notes, then each Noteholder
shall have the right to require the Company to repurchase its Notes for cash,
in whole or in part (in principal amounts of $2,000 and integral multiples of
$1,000 in excess thereof), on a date (the “Fundamental Change
Purchase Date”) specified by the Company (which date shall be not
earlier than fifteen (15) days and not more than thirty (30) days after the
Company Repurchase Notice Date related to such Fundamental Change) at a
purchase price equal to 100% of the principal amount of the Notes being
repurchased, plus accrued and unpaid interest to the Fundamental Change
Purchase Date (such amount, the “Fundamental Change
Purchase Price”), unless the Fundamental Change Purchase Date falls
after a Regular Record Date but on or prior to the immediately succeeding
Interest Payment Date, in which case the Company shall instead pay the full
amount of accrued and unpaid interest on any Notes to be repurchased to the
Holder of such Notes as of the close of business on such Regular Record Date
and the Fundamental Change Purchase Price shall be 100% of the principal amount
of Notes to be repurchased.

 

(b)                                 Within 20 days after the occurrence of a
Fundamental Change, the Company shall mail or cause to be mailed to all Holders
of record on the date of the Fundamental Change (and to beneficial owners as
required by applicable law) a Company Repurchase Notice as set forth in Section 3.06
with respect to such Fundamental Change. 
The Company shall also deliver a copy of the Company Repurchase Notice
to the Trustee and the Paying Agent at such time as it is mailed to
Noteholders. In addition to the mailing of such Company Repurchase Notice, the
Company shall disseminate a press release through Dow Jones & Company, Inc.,
Bloomberg 

 

12

 

Business News or PR Newswire or a substantially
similar financial news organization announcing the occurrence of such
Fundamental Change and publish such information in a newspaper of general
circulation in The City of New York or on the Company’s web site, or through
such other public medium as the Company shall deem appropriate at such
time.  The failure to issue any such
press release or publish such information or any defect therein shall not
affect the validity of the Company Repurchase Notice or any proceedings for the
repurchase of any Note that any Noteholder may elect to have the Company
repurchase as provided in this Section 3.05.

 

No failure of the Company to give the foregoing
notices and no defect therein shall limit the Noteholders’ repurchase rights or
affect the validity of the proceedings for the repurchase of the Notes pursuant
to this Section 3.05.

 

(c)                                  In order to exercise its repurchase
right, a Holder must deliver to the Paying Agent, prior to the close of
business on the third Business Day prior to the Fundamental Change Purchase
Date, a written notice of repurchase (the “Repurchase Notice”).  Such Repurchase Notice shall state:  (A) the certificate number (if the Note
is in certificated form) of the Note which the Holder will deliver to be
repurchased, (B) the portion of the principal amount of the Note which the
Holder will deliver to be repurchased, in denominations of $2,000 and integral
multiples of $1,000 in excess thereof, provided that the remaining principal
amount of such Holder’s Notes is in an authorized denomination and (C) that
such Note shall be repurchased pursuant to the terms and conditions specified
in the Note and in the Indenture.  Any
Repurchase Notice provided in respect of a beneficial interest in a Global Note
shall be required to comply with the applicable procedures of the Depositary.

 

(d)                                 The Company, if so requested, shall
repurchase from the Holder thereof, pursuant to this Section 3.05, a
portion of a Note, if the principal amount of such portion is $2,000 or an
integral multiple of $1,000 in excess thereof. 
Provisions of this Supplemental Indenture that apply to the repurchase
of all of a Note also apply to the repurchase of such portion of such Note.

 

(e)                                  Notwithstanding the foregoing, no Notes
may be repurchased by the Company pursuant to this Section 3.05 if there
has occurred and is continuing an Event of Default with respect to the Notes
(other than a default in the payment of the Fundamental Change Purchase Price
for the Notes to be repurchased).

 

(f)                                    The Paying Agent shall promptly notify
the Company of the receipt by it of any Repurchase Notice or written notice of
withdrawal thereof.  All questions as to
the validity, eligibility (including time of receipt) and acceptance of any
Note for repurchase shall be determined by the Company, whose determination shall
be final and binding absent manifest error.

 

(g)                                 Payment of the Fundamental Change
Purchase Price for a Note for which a Repurchase Notice has been delivered and
not withdrawn is conditioned upon book-entry transfer or delivery of the Note,
together with necessary endorsements, to the Paying Agent.  Such Fundamental Change Purchase Price shall
be paid to such Holder (x) on the Fundamental Change Purchase Date if the
Holder has transferred or delivered such Note or beneficial interest therein to
the Paying Agent prior to such date or (y) within two Business Days after
the transfer or delivery of such Note or beneficial interest therein to the
Paying Agent if the Holder does not 

 

13

 

transfer or deliver such Note or beneficial interest
therein to the Paying Agent prior to the Fundamental Change Purchase Date.

 

SECTION 3.06.                                         Company Repurchase
Notice.

 

(a)                                  In connection with any repurchase of
Notes, the Company shall, on the applicable Company Repurchase Notice Date,
give written notice to Holders (with a copy to the Trustee) setting forth the
information specified in this Section 3.06 (in either case, the “Company Repurchase Notice”).

 

Each Company Repurchase Notice shall include a form
of Repurchase Notice and shall specify:

 

(1)                                  the Fundamental Change
Purchase Price and the amount of interest accrued and unpaid per $1,000
principal amount of Notes to the Fundamental Change Purchase Date;

 

(2)                                  the Fundamental Change
Purchase Date;

 

(3)                                  the circumstances constituting
the Fundamental Change;

 

(4)                                  that Holders must exercise
their right to elect to repurchase prior to the close of business on the third
Business Day prior to the Fundamental Change Purchase Date;

 

(5)                                  the name and address of the
Trustee and the Paying Agent and, if the Notes are then convertible (including
in connection with a Fundamental Change), state the name and address of the
Conversion Agent;

 

(6)                                  that Notes must be
surrendered to the Paying Agent to collect the Fundamental Change Purchase
Price and accrued and unpaid interest;

 

(7)                                  that a Holder may withdraw
its Repurchase Notice at any time prior to the close of business on the third
Business Day prior to the Fundamental Change Purchase Date by delivering a
valid written notice of withdrawal in accordance with Section 3.07;

 

(8)                                  that Notes as to which a
Repurchase Notice has been given may be converted only if the Repurchase Notice
is withdrawn by the Holder in accordance with the terms of this Supplemental
Indenture;

 

(9)                                  that, unless the Company
defaults in making payment of the Fundamental Change Purchase Price, interest
on Notes in respect of which a Repurchase Notice shall have been submitted and
not withdrawn will cease to accrue on and after the Fundamental Change Purchase
Date; and

 

(10)                            the CUSIP number of the
Notes, if CUSIP numbers are then in use.

 

A Company Repurchase Notice may be given by the
Company or, at the Company’s request, the Trustee shall give such Company
Repurchase Notice in the Company’s name and at the Company’s expense; provided
that the text of the Company Repurchase Notice shall be prepared by the
Company.

 

If any of the Notes is represented by a Global Note,
then the Company will modify such notice to the extent necessary to accord with
the applicable procedures of the Depositary that apply to the repurchase of
Global Notes.

 

14

 

(b)                                 The Company will, to the extent
applicable, comply with the provisions of Rule 13e-4 and Rule 14e-1
(or any successor provision) under the Exchange Act that may be applicable at
the time of the repurchase of the Notes, file the related Schedule TO (or any
successor schedule, form or report) under the Exchange Act and comply with all
other applicable federal and state securities laws in connection with the
repurchase of the Notes.

 

SECTION 3.07.                                         Withdrawal
of Repurchase Notice.  A
Repurchase Notice may be withdrawn, in whole or in part, by means of a written
notice of withdrawal delivered to the office of the Paying Agent at any time
prior to the close of business on the third Business Day prior to a Fundamental
Change Purchase Date.  Such notice of
withdrawal must specify:

 

(a)                                  the name of the Holder;

 

(b)                                 the certificate number(s) of all
withdrawn Notes in certificated form;

 

(c)                                  the principal amount of Notes with
respect to which such notice of withdrawal is being submitted, which must be in
minimum denominations of $2,000 and integral multiples of $1,000 in excess
thereof; and

 

(d)                                 the principal amount of Notes, if any,
that remains subject to the original Repurchase Notice, which must be in
minimum denominations of $2,000 and integral multiples of $1,000 in excess
thereof.

 

Any withdrawal notice provided in respect of a
beneficial interest in a Global Note shall be required to comply with the
applicable procedures of the Depositary.

 

SECTION 3.08.                                         Deposit of Repurchase
Price.

 

(a)                                  Prior to 11:00 a.m., New York City
time, on the Fundamental Change Purchase Date, the Company shall deposit with
the Paying Agent or, if the Company is acting as the Paying Agent, shall
segregate and hold in trust as provided in Section 1003 of the Original
Indenture an amount of cash (in immediately available funds if deposited on the
Fundamental Change Purchase Date), sufficient to pay the aggregate Fundamental
Change Purchase Price of all the Notes or portions thereof that are to be
repurchased as of the Fundamental Change Purchase Date.

 

(b)                                 If on the Fundamental Change Purchase
Date the Paying Agent holds money sufficient to pay the Fundamental Change
Purchase Price of the Notes that Holders have elected to require the Company to
repurchase in accordance with Section 3.05, then on and after the
Fundamental Change Purchase Date such Notes will cease to be Outstanding,
interest will cease to accrue with respect to such Notes and all other rights
of the Holders of such Notes will terminate, other than the right to receive
the Fundamental Change Purchase Price. 
Such will be the case whether or not book-entry transfer of the Note to
the Paying Agent is made or whether or not Notes in certificated form, together
with necessary endorsements, are delivered to the Paying Agent.

 

SECTION 3.09.                                         Notes
Repurchased in Part.  Upon
presentation of any Note repurchased only in part, the Company shall execute
and the Trustee shall authenticate and make 

 

15

 

available for delivery to
the Holder thereof, at the expense of the Company, a new Note or Notes, of any
authorized denomination, in aggregate principal amount equal to the unrepurchased
portion of the Notes presented.

 

SECTION 3.10.                                         Third
Party Purchase.  The Company
may arrange for a third party to purchase Notes for which the Company has
received a valid Repurchase Notice that has not been properly withdrawn, in the
manner and otherwise in compliance with the requirements set forth herein and
in the Notes. If a third party purchases any Notes under such circumstances,
then interest will continue to accrue on the Notes and such Notes will continue
to be Outstanding after the Fundamental Change Purchase Date for all purposes
of the Indenture and will be fungible with all other Notes then Outstanding.

 

SECTION 3.11.                                         Repayment
to the Company.  Subject to Section 7.04,
the Paying Agent shall return to the Company any cash that remains unclaimed,
together with interest, if any, thereon, held by it for the payment of the
Fundamental Change Purchase Price; provided that to the extent that the
aggregate amount of cash deposited by the Company pursuant to Section 3.08
exceeds the aggregate Fundamental Change Purchase Price of the Notes or
portions thereof which the Company is obligated to repurchase as of the
Fundamental Change Purchase Date, then, unless otherwise agreed in writing with
the Company, promptly after the second Business Day following the Fundamental
Change Purchase Date, the Paying Agent shall return any such excess to the
Company, together with interest, if any, thereon.

 

ARTICLE 4

DEFAULT AND REMEDIES

 

SECTION 4.01.                                         Events
of Default.  Solely for
the purposes of the Notes, Article Five of the Original Indenture shall be
deleted and replaced in its entirety by this Article 4.  “Event of Default,”
wherever used herein, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

(a)                                  default in the payment of any principal
amount or any Redemption Price or Fundamental Change Purchase Price due with
respect to the Notes when the same shall be due and payable, whether at
maturity, upon redemption or repurchase, by acceleration or otherwise; or

 

(b)                                 default in the payment of interest under
the Notes as and when the same shall be due and payable, and continuance of
such default for a period of thirty (30) days; or

 

(c)                                  default in the delivery when due of the
amounts owing upon conversion, whether due in cash, Common Shares or a
combination thereof, on the terms set forth herein and in the Notes, upon
exercise of a Holder’s conversion right in accordance with Article 8 of
this Supplemental Indenture; or

 

(d)                                 failure by the Company to provide any
required notice of the occurrence of a Fundamental Change within the time
period required by the Indenture, which default continues for 5 days; or

 

16

 

(e)           failure on the part of the Company to comply with any
term, covenant or agreement in the Notes or in the Indenture (other than a
covenant or agreement a default in the performance or breach of which is
elsewhere in this Section 4.01 specifically dealt with) and such failure
continues for a period of sixty (60) calendar days after the date on which
written notice of such failure, requiring the Company to remedy the same, shall
have been given to the Company by the Trustee, or to the Company and a Responsible
Officer of the Trustee by the Holders of not less than twenty-five percent
(25%) in aggregate principal amount of the Notes at the time Outstanding; or

 

(f)            default after the expiration of any applicable grace
period in the payment of principal when due, or resulting in acceleration of,
other indebtedness of the Company or any of its Subsidiaries, other than a
Structured Finance Subsidiary, for borrowed money where the aggregate principal
amount with respect to which the default or acceleration has occurred exceeds
$60.0 million and such indebtedness has not been discharged, or such default in
payment or acceleration has not been cured or rescinded, prior to written
notice of acceleration of the Notes; or

 

(g)           failure by the Company or any of its Subsidiaries,
other than a Structured Finance Subsidiary, to pay final judgments entered by a
court or courts of competent jurisdiction aggregating in excess of $60.0
million, which judgments are not paid, discharged or stayed for a period of
thirty (30) days after such judgments become final and non-appealable; or

 

(h)           the Company or any of its Subsidiaries pursuant to or
under or within the meaning of any Bankruptcy Law:

 

(i)            commences a voluntary case or proceeding
seeking liquidation, reorganization or other relief with respect to it or its
debts or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any substantial part of its property; or

 

(ii)           consents to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it; or

 

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

 

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

 

provided, however, in the case of an
event specified in clause (i) or (iv) above that pertains only to a
Structured Finance Subsidiary, such event shall not constitute an Event of
Default; provided, further, in the case of an event specified
in clause (ii) or (iii) above that pertains only to a Structured
Finance Subsidiary, such event shall not constitute an Event of Default unless
such Structured Finance Subsidiary consents to the appointment referred to in
such clause with respect to all of its property; or

 

(i)            an involuntary case or other proceeding shall be
commenced against the Company or any of its Subsidiaries, other than a
Structured Finance Subsidiary, seeking liquidation, reorganization or other
relief with respect to it or its debts under any bankruptcy, insolvency or

 

17

 

other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed for
a period of sixty (60) consecutive calendar days; or

 

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

 

(i)            is for relief against the Company or any
of its Subsidiaries, other than a Structured Finance Subsidiary, in an
involuntary case or proceeding; or

 

(ii)           appoints a trustee, receiver, liquidator,
custodian or other similar official of the Company or any of its Subsidiaries.
other than a Structured Finance Subsidiary, or any substantial part of their
respective properties; or

 

(iii)          orders
the liquidation of the Company or any of its Subsidiaries, other than a
Structured Finance Subsidiary;

 

and, in each case in this clause (j), the order or
decree remains unstayed and in effect for sixty (60) calendar days.

 

If an Event of Default (other than an Event of
Default specified in Section 4.01(h), 4.01(i) and 4.01(j)) with
respect to the Company) shall occur and be continuing, unless the principal of
all of the Notes shall have already become due and payable, either the Trustee
or the Holders of at least twenty-five percent (25%) in aggregate principal
amount of the Notes then Outstanding, by notice in writing to the Company (and
to the Trustee if given by Noteholders), may declare the principal of, and
interest accrued and unpaid on, all the Notes to be immediately due and
payable, and upon any such declaration the same shall be immediately due and
payable.

 

If an Event of Default specified in Section 4.01(h),
4.01(i) or 4.01(j) occurs with respect to the Company, the principal
of, and interest accrued and unpaid on, all the Notes shall be immediately and
automatically due and payable without necessity of further action.

 

If, at any time after the principal of and interest
on the Notes shall have been so declared due and payable, and before any
judgment or decree for the payment of the monies due shall have been obtained
or entered as hereinafter provided, Holders of a majority in aggregate
principal amount of the Notes then Outstanding on behalf of the Holders of all
of the Notes then Outstanding, by written notice to the Company and to the
Trustee, may waive all defaults or Events of Default and rescind and annul such
declaration and its consequences subject to Section 4.08 if:  (a) such rescission would not conflict
with any final judgment or decree of a court of competent jurisdiction; (b) interest
on overdue installments of interest (to the extent that payment of such
interest is lawful) and on overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid; (c) the Company
has paid the Trustee its reasonable compensation and reimbursed the Trustee for
its expenses, disbursements and advances (including, without limitation, the
reasonable compensation and the expenses and disbursements of its agents and
counsel) pursuant to Section 606 of the Original Indenture; and (d) all
Events of Default, other than the nonpayment of the principal amount and any
accrued and unpaid interest that has become due solely because of such
acceleration, have been cured or

 

18

 

waived. 
No such rescission and annulment shall extend to or shall affect any
subsequent default or Event of Default, or shall impair any right consequent
thereon.  The Company shall notify in
writing a Responsible Officer of the Trustee, promptly upon becoming aware thereof,
of any Event of Default, as provided in Section 1007 of the Original
Indenture.

 

In case the Trustee shall have proceeded to enforce
any right under this Supplemental Indenture and such proceedings shall have
been discontinued or abandoned because of such waiver or rescission and
annulment or for any other reason or shall have been determined adversely to
the Trustee, then and in every such case the Company, the Holders of Notes, and
the Trustee shall be restored respectively to their several positions and
rights hereunder, and all rights, remedies and powers of the Company, the
Holders of Notes, and the Trustee shall continue as though no such proceeding
had been taken.

 

Notwithstanding the foregoing, to the extent elected
by the Company, the sole remedy for an Event of Default relating to the failure
by the Company to comply with the provisions of Section 704 of the
Original Indenture and for any failure to comply with the requirements of Section 314(a)(1) of
the Trust Indenture Act shall, for the first 365 days after the occurrence of
such an Event of Default, consist exclusively of the right to receive special
interest (“Special Interest”) on the Notes at
an annual rate equal to 1% of the principal amount of the Notes. Such Special
Interest shall be paid semi-annually in arrears, with the first semi-annual
payment due on the first Interest Payment Date following the date on which such
Special Interest began to accrue on the Notes. Special Interest shall accrue on
all Outstanding Notes from and including the date on which an Event of Default
relating to a failure to comply with the provisions of Section 704 of the
Original Indenture or the reporting provisions of the Trust Indenture Act shall
first occur to but not including the 365th day thereafter (or such earlier date
on which such Event of Default shall have been cured or waived). On such 365th
day (or earlier, if the Event of Default relating to the failure to comply with
Section 704 of the Original Indenture or the reporting provisions of the
Trust Indenture Act is cured or waived prior to such 365th day), such Special
Interest shall cease to accrue and, if the Event of Default relating to the
failure to comply with Section 704 of the Original Indenture or the
reporting provisions of the Trust Indenture Act shall not have been cured or waived
prior to such 365th day, the Notes shall be subject to acceleration as provided
in this Section 4.01. The provisions of this paragraph shall not affect
the rights of Holders in the event of the occurrence of any other Event of
Default. In the event the Company shall not elect to pay Special Interest upon
an Event of Default resulting from the failure of the Company to comply with
the provisions of Section 704 of the Original Indenture or the reporting
provisions of the Trust Indenture Act, the Notes shall be subject to
acceleration as provided above in this Section 4.01.

 

If the Company shall elect to pay Special Interest
in connection with an Event of Default relating to its failure to comply with
the requirements of Section 704 of the Original Indenture or the reporting
provisions of the Trust Indenture Act, the Company shall notify all Holders and
the Trustee and Paying Agent of such election on or before the close of
business on the date on which such Event of Default shall first occur in
accordance with the provisions of Section 4.01.

 

SECTION 4.02.              Special
Interest Notice.  In the
event that the Company has elected to pay Special Interest to Holders of Notes
pursuant to Section 4.01 of this Supplemental Indenture, the Company will
provide written notice (“Special Interest Notice”)
to the Trustee of its election to pay Special Interest no later than fifteen
(15) calendar days prior to the proposed

 

19

 

payment date for Special
Interest, and the Special Interest Notice shall set forth the amount of Special
Interest to be paid by the Company on such payment date. The Trustee shall not
at any time be under any duty or responsibility to any Holder of Notes to
determine the Special Interest, or with respect to the nature, extent or
calculation of the amount of Special Interest when made, or with respect to the
method employed in such calculation of the Special Interest.

 

SECTION 4.03.              Payments
of Notes on Default; Suit Therefor.  The Company covenants that in the case of an
Event of Default pursuant to Section 4.01(a) or 4.01(b), upon demand
of the Trustee, the Company will pay to the Trustee, for the benefit of the
Holders of the Notes, (i) the whole amount that then shall be due and
payable on all such Notes for principal or interest, as the case may be, with
interest upon the overdue principal and premium, if any, and (to the extent
that payment of such interest is enforceable under applicable law) upon the
overdue installments of accrued and unpaid interest at the rate borne by the
Notes from the required payment date and, (ii) in addition thereto, any
amounts due the Trustee under Section 606 of the Original Indenture.  Until such demand by the Trustee, the Company
may pay the principal of and interest on the Notes to the registered Holders,
whether or not the Notes are overdue.

 

In case the Company shall fail forthwith to
pay such amounts upon such demand, the Trustee, in its own name and as trustee
of an express trust, shall be entitled and empowered to institute any actions
or proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceeding to judgment or final
decree, and may enforce any such judgment or final decree against the Company
or any other obligor on the Notes and collect in the manner provided by law out
of the property of the Company or any other obligor on the Notes wherever
situated the monies adjudged or decreed to be payable.

 

In case there shall be pending proceedings
for the bankruptcy or for the reorganization of the Company or any other
obligor on the Notes under any Bankruptcy Law, or any other applicable law, or
in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Company or such other obligor, the property of the
Company or such other obligor, or in the case of any other judicial proceedings
relative to the Company or such other obligor upon the Notes, or to the
creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Notes shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand pursuant to the provisions of
this Section 4.03, shall be entitled and empowered, by intervention in
such proceedings or otherwise, to file and prove a claim or claims for the
whole amount of principal and accrued and unpaid interest in respect of the
Notes, and, in case of any judicial proceedings, to file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee and of the Noteholders allowed in such judicial proceedings
relative to the Company or any other obligor on the Notes, its or their
creditors, or its or their property, and to collect and receive any monies or
other property payable or deliverable on any such claims, and to distribute the
same after the deduction of any amounts due the Trustee under Section 7.06,
and to take any other action with respect to such claims, including
participating as a member of any official committee of creditors, as it
reasonably deems necessary or advisable, unless prohibited by law or applicable
regulations, and any receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian or similar

 

20

 

official is hereby
authorized by each of the Noteholders to make such payments to the Trustee,
and, in the event that the Trustee shall consent to the making of such payments
directly to the Noteholders, to pay to the Trustee any amount due it for
reasonable compensation, expenses, advances and disbursements, including
counsel fees and expenses incurred by it up to the date of such
distribution.  To the extent that such
payment of reasonable compensation, expenses, advances and disbursements out of
the estate in any such proceedings shall be denied for any reason, payment of
the same shall be secured by a lien on, and shall be paid out of, any and all
distributions, dividends, monies, securities and other property which the
Holders of the Notes may be entitled to receive in such proceedings, whether in
liquidation or under any plan of reorganization or arrangement or otherwise.

 

All rights of action and of asserting claims
under this Supplemental Indenture, or under any of the Notes, may be enforced
by the Trustee without the possession of any of the Notes, or the production
thereof at any trial or other proceeding relative thereto, and any such suit or
proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Notes.

 

In any proceedings brought by the Trustee
(and in any proceedings involving the interpretation of any provision of this
Supplemental Indenture to which the Trustee shall be a party), the Trustee
shall be held to represent all the Holders of the Notes, and it shall not be
necessary to make any Holders of the Notes parties to any such proceedings.

 

SECTION 4.04.              Application
of Monies Collected by Trustee.  Any monies collected by the Trustee pursuant
to this Article 4, shall be applied, in the following order, at the date
or dates fixed by the Trustee for the distribution of such monies, upon presentation
of the several Notes, and stamping thereon the payment, if only partially paid,
and upon surrender thereof, if fully paid:

 

FIRST:  To the
payment of all amounts due the Trustee under Section 606 of the Original
Indenture;

 

SECOND:  In
case the principal of the Outstanding Notes shall not have become due and be
unpaid, to the payment of accrued and unpaid interest, if any, on the Notes in
default in the order of the maturity of the installments of such interest, with
interest (to the extent that such interest has been collected by the Trustee)
as provided in Section 4.03 upon the overdue installments of interest at
the annual rate borne by the Notes, such payments to be made ratably to the
Persons entitled thereto;

 

THIRD:  In
case the principal of the Outstanding Notes shall have become due, by
declaration or otherwise, and be unpaid to the payment of the whole amount then
owing and unpaid upon the Notes for principal and interest, with interest on
the overdue principal and (to the extent that such interest has been collected
by the Trustee) upon overdue installments of accrued and unpaid interest, as
provided in Section 4.03, and in case such monies shall be insufficient to
pay in full the whole amounts so due and unpaid upon the Notes, then to the
payment of such principal and interest without preference or priority of
principal over interest, or of interest over principal, or of any installment
of interest over any other installment of interest,

 

21

 

or of any Note over any other Note, ratably
to the aggregate of such principal and accrued and unpaid interest; and

 

FOURTH:  To
the payment of the remainder, if any, to the Company or any other Person
lawfully entitled thereto.

 

SECTION 4.05.              Proceedings
by Noteholder.  No Holder
of any Note shall have any right by virtue of or by reference to any provision
of the Indenture to institute any suit, action or proceeding in equity or at
law upon or under or with respect to the Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any
other remedy hereunder, except in the case of a default in the payment of
principal of, or interest on, the Notes, unless (a) such Holder previously
shall have given to the Trustee written notice of an Event of Default and of
the continuance thereof, as hereinbefore provided, (b) the Holders of at
least twenty-five percent (25%) in aggregate principal amount of the Notes then
Outstanding shall have made written request upon the Trustee to institute such
action, suit or proceeding in its own name as Trustee hereunder and shall have
offered to the Trustee such security or indemnity satisfactory to it as it may
require against the costs, liabilities or expenses to be incurred therein or
thereby, (c) the Trustee for sixty (60) calendar days after its receipt of
such notice, request and offer of indemnity, shall have neglected or refused to
institute any such action, suit or proceeding and (d) no direction
inconsistent with such written request shall have been given to the Trustee
pursuant to Section 4.08; it being understood and intended, and being
expressly covenanted by the taker and Holder of every Note with every other
taker and Holder and the Trustee, that no one or more Holders of Notes shall
have any right in any manner whatever by virtue of or by reference to any
provision of this Supplemental Indenture to affect, disturb or prejudice the
rights of any other Holder of Notes, or to obtain or seek to obtain priority
over or preference to any other such Holder, or to enforce any right under this
Supplemental Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all Holders of Notes (except as otherwise
provided herein).  For the protection and
enforcement of this Section 4.05, each and every Noteholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

 

Notwithstanding any other provision of the Indenture
and any provision of any Note, the right of any Holder of any Note to receive
payment of the principal of (including the Redemption Price or Fundamental
Change Purchase Price upon redemption or repurchase pursuant to Article 3)
and accrued interest on such Note, on or after the respective due dates
expressed in such Note or in the event of redemption or repurchase, or to
institute suit for the enforcement of any such payment on or after such
respective dates against the Company shall not be impaired or affected without
the consent of such Holder.

 

Anything contained in this Supplemental Indenture or
the Notes to the contrary notwithstanding, the Holder of any Note, without the
consent of either the Trustee or the Holder of any other Note, in its own
behalf and for its own benefit, may enforce, and may institute and maintain any
proceeding suitable to enforce, its rights of conversion as provided herein.

 

SECTION 4.06.              Proceedings
by Trustee.  In case of
an Event of Default, the Trustee may, in its discretion, proceed to protect and
enforce the rights vested in it by this Supplemental Indenture by such
appropriate judicial proceedings as are necessary to protect and enforce any of
such rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or

 

22

 

otherwise, whether for the
specific enforcement of any covenant or agreement contained in this
Supplemental Indenture or in aid of the exercise of any power granted in this
Supplemental Indenture, or to enforce any other legal or equitable right vested
in the Trustee by this Supplemental Indenture or by law.

 

SECTION 4.07.              Remedies
Cumulative and Continuing.  All
powers and remedies given by this Article 4 to the Trustee or to the
Noteholders shall, to the extent permitted by law, be deemed cumulative and not
exclusive of any thereof or of any other powers and remedies available to the
Trustee or the Holders of the Notes, by judicial proceedings or otherwise, to
enforce the performance or observance of the covenants and agreements contained
in this Supplemental Indenture, and no delay or omission of the Trustee or of
any Holder of any of the Notes to exercise any right or power accruing upon any
default or Event of Default occurring and continuing as aforesaid shall impair
any such right or power, or shall be construed to be a waiver of any such
default or any acquiescence therein, and, subject to the provisions of Section 4.05,
every power and remedy given by this Article 4 or by law to the Trustee or
to the Noteholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Noteholders.

 

SECTION 4.08.              Direction
of Proceedings and Waiver of Defaults by Majority of Noteholders.  The Holders of not less than a majority in
aggregate principal amount of the Notes at the time Outstanding shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee; provided that (a) such direction shall not be in conflict
with any rule of law or with this Supplemental Indenture, (b) the
Trustee may take any other action which is not inconsistent with such
direction, (c) the Trustee may decline to take any action that would
benefit some Noteholder to the detriment of other Noteholders and (d) the
Trustee may decline to take any action that would involve the Trustee in
personal liability.  The Holders of a
majority in aggregate principal amount of the Notes at the time Outstanding
may, on behalf of the Holders of all of the Notes, waive any past default or
Event of Default hereunder and its consequences except (i) a default in
the payment of the principal of, or interest on, the Notes when due, (ii) a
failure by the Company to convert any Notes as required by this Supplemental
Indenture, (iii) a default in the payment of the Redemption Price on the
Redemption Date pursuant to Article 3, (iv) a default in the payment
of the Fundamental Change Purchase Price on the Fundamental Change Purchase
Date pursuant to Article 3 or (v) a default in respect of a covenant
or provisions hereof which under Article 5 cannot be modified or amended
without the consent of the Holders of each Outstanding Note affected thereby.

 

Upon any such waiver, the Company, the Trustee and
the Holders of the Notes shall be restored to their former positions and rights
hereunder; but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.  Whenever any default or Event of Default
hereunder shall have been waived as permitted by this Section 4.08, said
default or Event of Default shall for all purposes of the Notes and this
Supplemental Indenture be deemed to have been cured and to be not continuing;
but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon.

 

SECTION 4.09.              Notice
of Defaults.  The Trustee
shall, within ninety (90) calendar days after a Responsible Officer of the
Trustee has knowledge of the occurrence of a default, mail to

 

23

 

all Noteholders, as the
names and addresses of such Holders appear upon the Security Register, notice
of all defaults known to a Responsible Officer, unless such defaults shall have
been cured or waived before the giving of such notice; provided that except in
the case of default in the payment of the principal of, or interest on, any of
the Notes, the Trustee shall be protected in withholding such notice if and so long
as a trust committee of directors and/or Responsible Officers of the Trustee in
good faith determines that the withholding of such notice is in the interest of
the Noteholders.

 

SECTION 4.10.              Undertaking
to Pay Costs.  All parties
to this Supplemental Indenture agree, and each Holder of any Note by its
acceptance thereof shall be deemed to have agreed, that any court may, in its
discretion, require, in any suit for the enforcement of any right or remedy
under this Supplemental Indenture, or in any suit against the Trustee for any
action taken or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit and that such court
may in its discretion assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in such suit, having due regard
to the merits and good faith of the claims or defenses made by such party
litigant; provided that the provisions of this Section 4.10 (to the extent
permitted by law) shall not apply to any suit instituted by the Trustee, to any
suit instituted by any Noteholder , or group of Noteholders, holding in the
aggregate more than ten percent in principal amount of the Notes at the time
Outstanding determined in accordance with Section 104 of the Original
Indenture, or to any suit instituted by any Noteholder for the enforcement of
the payment of the principal of, or interest on, any Note on or after the due
date expressed in such Note or to any suit for the enforcement of the right to
convert any Note in accordance with the provisions of Article 8.

 

ARTICLE 5

SUPPLEMENTAL INDENTURES

 

SECTION 5.01.              Supplemental
Indentures Without Consent of Noteholders.  Solely for purposes of the Notes, Article Nine
of the Original Indenture shall be deleted and replaced in its entirety by this
Article 5.  The Company, when
authorized by the resolutions of the Board of Directors and the Trustee may,
from time to time, and at any time enter into an indenture or indentures
supplemental without the consent of the Holders of the Notes hereto for one or
more of the following purposes:

 

(a)           to evidence a successor to the Company and the
assumption by that successor of the obligations of the Company under the
Indenture and the Notes; or

 

(b)           to provide for conversion right of Holders of the
Notes in accordance with the terms hereof if any reclassification or change of
Common Shares or any consolidation, merger or sale of all or substantially all
of the property or assets of the Company occurs; or

 

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

 

(d)           to secure the obligations of the Company in respect of
the Notes; or

 

(e)           to add guarantees in accordance with the terms of the
Indenture; or

 

24

 

(f)            to evidence and provide the acceptance of the
appointment of a successor Trustee under the Indenture; or

 

(g)           to comply with the requirements of the Commission in
order to effect or maintain qualification of the Indenture under the Trust
Indenture Act, as contemplated by the Indenture or otherwise; or

 

(h)           to cure any ambiguity, omission, defect or
inconsistency in the Indenture or make any other provision with respect to
matters or questions arising under the Indenture which the Company may deem
necessary or desirable and which shall not be inconsistent with provisions of
the Indenture; provided that such modification or amendment does not, in the
good faith opinion of the Board of Directors, adversely affect the interests of
the Holders of the Notes in any material respect; or

 

(i)            to add or modify any provision with respect to matters
or questions arising under the Indenture which the Company and the Trustee may
deem necessary or desirable and which will not adversely affect the interests
of the Holders of the Notes in any material respect; or

 

(j)            to modify any provision of the Indenture to conform
that provision to the description thereof set forth in the Prospectus
Supplement.

 

Upon the written request of the Company, accompanied
by a copy of the resolutions of the Board of Directors certified by the Company’s
Secretary or Assistant Secretary authorizing the execution of any supplemental
indenture, the Trustee is hereby authorized to join with the Company in the
execution of any such supplemental indenture, to make any further appropriate
agreements and stipulations that may be therein contained and to accept the
conveyance, transfer and assignment of any property thereunder, but the Trustee
shall not be obligated to, but may in its discretion, enter into any
supplemental indenture that affects the Trustee’s own rights, duties or
immunities under this Supplemental Indenture or otherwise.

 

Any supplemental indenture authorized by the
provisions of this Section 5.01 may be executed by the Company and the
Trustee without the consent of the Holders of any of the Notes at the time
Outstanding, notwithstanding any of the provisions of Section 5.02.

 

SECTION 5.02.              Supplemental
Indenture With Consent of Noteholders.  With the consent (evidenced as provided in Section 104
of the Original Indenture) of the Holders of not less than a majority in
aggregate principal amount of the Notes at the time Outstanding, the Company,
when authorized by the resolutions of the Board of Directors and the Trustee
may, from time to time and at any time, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Supplemental Indenture
or any supplemental indenture or modifying in any manner the rights of the
Holders of the Notes; provided that no such supplemental indenture shall,
without the consent of the Holder of each Note so affected:

 

(a)           impair or adversely affect the manner of calculation
or rate of accrual of interest on the Notes or change the time of payment
thereof; or

 

(b)           make the Notes payable in money or securities other
than that stated in the Notes; or

 

25

 

(c)                                  change the Stated Maturity of the Notes;
or

 

(d)                                 reduce the principal amount of, or the
Redemption Price or Fundamental Change Purchase Price specified in Article 3
hereof with respect to, the Notes; or

 

(e)                                  make any change that impairs or adversely
affects the conversion rights of the Holders of the Notes; or

 

(f)                                    make any change that impairs or adversely
affects the right to require the Company to repurchase the Notes; or

 

(g)                                 impair the right to institute suit for
the enforcement of any payment with respect to the Notes or with respect to
conversion of the Notes; or

 

(h)                                 change the obligation of the Company to
redeem any Notes called for redemption on a Redemption Date in a manner adverse
to the Holders; or

 

(i)                                     change the obligation of the Company to
maintain an office or agency pursuant to Section 1002 of the Original
Indenture; or

 

(j)                                     make the Notes subordinate in right of
payment to any other indebtedness; or

 

(k)                                  reduce the percentage in aggregate
principal amount of Outstanding Notes required to modify or amend this
Supplemental Indenture; or

 

(l)                                     modify Section 4.08 or this Section 5.02.

 

Upon the written request of the Company, accompanied
by a copy of the resolutions of the Board of Directors certified by the Company’s
Secretary or Assistant Secretary authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Noteholders as aforesaid, the Trustee shall join with the Company in
the execution of such supplemental indenture unless such supplemental indenture
affects the Trustee’s own rights, duties or immunities under this Supplemental
Indenture or otherwise, in which case the Trustee may in its discretion, but
shall not be obligated to, enter into such supplemental indenture.

 

It shall not be necessary for the consent of the
Noteholders under this Section 5.02 to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.

 

SECTION 5.03.                                         Effect
of Supplemental Indenture.  Any
supplemental indenture executed pursuant to the provisions of this Article 5
shall comply with the Trust Indenture Act, as then in effect, provided that
this Section 5.03 shall not require such supplemental indenture or the
Trustee to be qualified under the Trust Indenture Act prior to the time, if
ever, such qualification is in fact required under the terms of the Trust
Indenture Act or the Indenture has been qualified under the Trust Indenture
Act, nor shall it constitute any admission or acknowledgment by any party to
such supplemental indenture that any such qualification is required prior to
the time, if ever, such qualification is in fact required under the terms of
the Trust Indenture Act or the Indenture has been qualified under the Trust
Indenture Act.  Upon the execution of any
supplemental indenture pursuant to the provisions of this Article 5, this 

 

26

 

Supplemental Indenture shall
be and be deemed to be modified and amended in accordance therewith and the
respective rights, limitation of rights, obligations, duties and immunities
under this Supplemental Indenture of the Trustee, the Company and the Holders
of Notes shall thereafter be determined, exercised and enforced hereunder,
subject in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Supplemental Indenture for any and all
purposes.

 

SECTION 5.04.                                         Notation
on Notes.  Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article 5 may bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental
indenture.  If the Company or the Trustee
shall so determine, new Notes so modified as to conform, in the opinion of the
Trustee and the Board of Directors, to any modification of this Supplemental
Indenture contained in any such supplemental indenture may, at the Company’s
expense, be prepared and executed by the Company, authenticated by the Trustee
(or an authenticating agent duly appointed by the Trustee pursuant to Section 611
of the Original Indenture) and delivered in exchange for the Notes then
Outstanding, upon surrender of such Notes then Outstanding.

 

SECTION 5.05.                                         Evidence
of Compliance of Supplemental Indenture to be Furnished to Trustee.  Prior to entering into any supplemental
indenture pursuant to this Article 5, the Trustee shall be provided with
an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that
any supplemental indenture executed pursuant hereto complies with the
requirements of this Article 5 and is otherwise authorized or permitted by
this Supplemental Indenture.

 

ARTICLE 6

CONSOLIDATION, MERGER, SALE, CONVEYANCE
AND LEASE

 

SECTION 6.01.                                         Company
May Consolidate on Certain Terms.  Solely for the purposes of the Notes, Article Eight
of the Original Indenture shall be deleted and replaced in its entirety by this
Article 6.  Subject to the
provisions of Section 6.02, the Company shall not, in a single transaction
or a series of related transactions, consolidate with, or sell, lease or convey
all or substantially all of its consolidated assets to, or merge with or into,
any other Person (whether or not affiliated with the Company), unless: (i) the
Company is the continuing entity, or the successor entity (if other than the
Company) formed by or resulting from any consolidation or merger or which shall
have received the transfer of assets shall be an entity organized and existing
under the laws of the United States of America, any state thereof or the
District of Columbia and shall expressly assume the due and punctual payment of
the principal of, and interest on, all of the Notes, and the due and punctual
performance and observance of all of the covenants and conditions in the Notes
and the Indenture to be performed or satisfied by the Company (including,
without limitations, the obligation to convert Notes in accordance with the
provisions of Article 8 hereof) by a supplemental indenture reasonably
satisfactory in form to the Trustee; (ii) if as a result of any such
consolidation, sale, lease, conveyance or merger, the Notes become convertible
into common stock or other securities issued by a Person that is other than the
Company or such successor Person, such Person shall fully and unconditionally
guarantee all obligations under the Notes and the Indenture; (iii) immediately
after giving effect to the transaction described above, no Event of Default or
event which, after notice or lapse of time, or both, would become an Event of
Default, has occurred and is continuing; and (iv) the Company 

 

27

 

has delivered to the Trustee
an Officers’ Certificate and Opinion of Counsel pursuant to Section 102 of
the Original Indenture.

 

SECTION 6.02.                                         Company
Successor to be Substituted .  In case of any such consolidation, sale,
lease, conveyance or merger in which the Company is not the continuing entity
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and reasonably satisfactory in form to
the Trustee, of the due and punctual payment of the principal of, and interest
on, all of the Notes, and the due and punctual performance and observance of
all of the covenants and conditions of the Indenture to be performed or
satisfied by the Company, such successor Person shall succeed to and be
substituted for, and may exercise every right and power of, the Company, with
the same effect as if it had been named herein as the party of this first part,
and, except in the case of a lease of all or substantially all of the Company’s
consolidated assets, the Company shall be discharged from its obligations under
the Notes and the Indenture.  Such
successor Person thereupon may cause to be signed, and may issue either in its
own name or in the name of the Company any or all of the Notes, issuable
hereunder that theretofore shall not have been signed by the Company and
delivered to the Trustee; and, upon the order of such successor Person instead
of the Company and subject to all the terms, conditions and limitations in this
Supplemental Indenture prescribed, the Trustee shall authenticate and shall
deliver, or cause to be authenticated and delivered, any Notes that previously
shall have been signed and delivered by the officers of the Company to the
Trustee for authentication, and any Notes that such successor Person thereafter
shall cause to be signed and delivered to the Trustee for that purpose.  All the Notes so issued shall in all respects
have the same legal rank and benefit under this Supplemental Indenture as the
Notes theretofore or thereafter issued in accordance with the terms of this
Supplemental Indenture as though all of such Notes had been issued at the date
of the execution hereof.  In the event of
any such consolidation, merger, sale, conveyance or transfer (but not in the
case of any such lease) upon compliance with this Article 6 the Person
named as the “Company” in the first paragraph of this Supplemental Indenture or
any successor that shall thereafter have become such in the manner prescribed
in this Article 6 may be dissolved, wound up and liquidated at any time
thereafter and such Person shall be discharged from its liabilities as obligor
and maker of the Notes and from its obligations under this Supplemental
Indenture.

 

In case of any such consolidation, sale, lease,
conveyance or merger, such changes in phraseology and form (but not in
substance) may be made in the Notes thereafter to be issued as may be
appropriate.

 

ARTICLE 7

SATISFACTION AND DISCHARGE

 

SECTION 7.01.                                         Discharge
of Indenture.  Solely for
purposes of the Notes, Article Four of the Original Indenture shall be
deleted and replaced in its entirety by this Article 7.  This 
Supplemental Indenture shall cease to be of further effect (except as to
any surviving rights of conversion, registration of transfer or exchange of
Notes herein expressly provided for and except as further provided below), and
the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this
Supplemental Indenture, when (a) either: (1) all Notes theretofore
authenticated and delivered (other than (i) Notes which have been
destroyed, lost or stolen and which have been replaced or paid as provided in Section 7.04
and (ii) Notes for whose payment money has theretofore been 

 

28

 

deposited in trust and
thereafter repaid to the Company as provided in Section 7.04) have been
delivered to the Trustee for cancellation; or (2) all such Notes not
theretofore delivered to the Trustee for cancellation have become due and
payable, whether upon the Stated Maturity of the Notes, a Redemption Date or a
Fundamental Change Purchase Date or otherwise, or have all been converted in
accordance with the provisions of Article 8 hereof, and the Company has
irrevocably deposited or caused to be irrevocably deposited with the Trustee a
Paying Agent or the Conversion Agent (other than the Company or any of its
Affiliates), as applicable, as trust funds in trust cash and, if applicable,
Common Shares in an amount sufficient to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation, for principal and interest to the date of such deposit (in the
case of Notes which have become due and payable) or for amounts owing upon
conversion; provided, however, that there shall not exist, on the date of such
deposit, a default or Event of Default; provided, further, that such deposit
shall not result in a breach or violation of, or constitute a default under,
this Supplemental Indenture; (b) the Company has paid or caused to be paid
all other sums payable hereunder by the Company; and (c) the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Supplemental Indenture have been complied
with.

 

Notwithstanding the satisfaction and discharge of
this Supplemental Indenture, the obligations of the Company to the Trustee
under Section 606 of the Original Indenture shall survive and, if money
shall have been deposited with the Trustee pursuant to subclause (2) of
clause (a) of this Section, the provisions of Sections 304, 305, 306 of
the Original Indenture, Section 3.05 hereof, Section 701 of the
Original Indenture, Article 8 and this Article 7, shall survive until
the Notes have been paid in full.

 

SECTION 7.02.                                         Deposited
Monies to be Held in Trust by Trustee.  Subject to Section 7.04, all monies
deposited with the Trustee pursuant to Section 605 of the Original
Indenture, shall be held in trust for the sole benefit of the Noteholders, and
such monies shall be applied by the Trustee to the payment, either directly or
through any Paying Agent (including the Company if acting as its own Paying
Agent), to the Holders of the particular Notes for the payment, repurchase or
redemption of which such monies have been deposited with the Trustee, of all
sums due and to become due thereon for principal, premium, if any, and
interest.  All moneys deposited with the
Trustee pursuant to Section 605 of the Original Indenture (and held by it
or any Paying Agent) for the payment of Notes subsequently converted shall be
returned to the Company upon request. 
The Trustee is not responsible to anyone for interest on any deposited
funds except as agreed in writing.

 

SECTION 7.03.                                         Paying
Agent to Repay Monies Held.  Subject to the provisions of Section 7.04,
the Trustee or a Paying Agent shall hold in trust, for the benefit of the
Noteholders, all money deposited with it pursuant to Section 7.01 and
shall apply the deposited money in accordance with this Supplemental Indenture
and the Notes to the payment of the principal of and interest on the Notes.

 

SECTION 7.04.                                         Return
of Unclaimed Monies.  The Trustee
and each Paying Agent shall pay to the Company upon written request any money
held by them for the payment of principal or interest that remains unclaimed
for two years after a right to such money has matured; provided, however, that
the Trustee or such Paying Agent, before being required to 

 

29

 

make any such payment, may,
at the expense of the Company, either publish in a newspaper of general
circulation in The City of New York, or cause to be mailed to each Holder
entitled to such money, notice that such money remains unclaimed and that after
a date specified therein, which shall be at least thirty (30) days from the
date of such mailing or publication, any unclaimed balance of such money then
remaining will be repaid to the Company. 
After payment to the Company, Holders entitled to money must look to the
Company for payment as general creditors unless an applicable abandoned
property law designates another person, and the Trustee and each Paying Agent
shall be relieved of all liability with respect to such money.

 

SECTION 7.05.                                         Reinstatement.  If the Trustee or the Paying Agent is unable
to apply any money in accordance with Section 7.02 by reason of any order
or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company’s obligations under this
Supplemental Indenture and the Notes shall be revived and reinstated as though
no deposit had occurred pursuant to Section 7.01 until such time as the
Trustee or the Paying Agent is permitted to apply all such money in accordance
with Section 7.02; provided that if the Company makes any payment of
principal of or premium, if any, or interest on any Note following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money held by the
Trustee or Paying Agent.

 

ARTICLE 8

CONVERSION OF NOTES

 

SECTION 8.01.                                         Right to Convert.

 

(a)                                  Subject to the restrictions on ownership
of Common Shares as set forth in Section 8.14(a) and upon compliance
with the provisions of this Supplemental Indenture, the Holder of any Notes may
convert its Notes, or any portion thereof that is a multiple of $1,000, into,
at the Company’s discretion, cash, Common Shares or a combination thereof (the “Settlement Amount”) by surrender of such Notes so to be
converted in whole or in part, together with any required funds, under the
circumstances and in the manner described in this Article 8. Holders may
surrender any Notes for conversion not previously redeemed or repurchased at
the applicable Conversion Rate prior to the close of business on the Business
Day immediately preceding the Stated Maturity of the Notes.  If the Company calls the Notes for redemption
or exercises its right to terminate Holders’ conversion rights pursuant to Section 8.16,
Holders may convert their Notes at any time prior to the close of business on
the Business Day immediately preceding the Redemption Date or Conversion Rights
Termination Date, as the case may be.

 

(b)                                 A Note in respect of which a Holder has
delivered a Repurchase Notice exercising such Holder’s right to require the
Company to repurchase such Note pursuant to Section 3.05 may be converted
only if such Repurchase Notice is withdrawn in accordance with Section 3.07
prior to the close of business on the third Business Day prior to the
Fundamental Change Purchase Date.

 

SECTION 8.02.                                         Exercise
of Conversion Right; No Adjustment for Interest or Dividends.  In order to exercise the conversion right
with respect to any Note in certificated form, the Company must receive at the
office or agency of the Company maintained for that purpose or, at the option
of such Holder, the Corporate Trust Office, such Note with the original 

 

30

 

or facsimile of the form
entitled “Conversion Notice” on the reverse
thereof, duly completed and manually signed, together with such Notes duly
endorsed for transfer, accompanied by the funds, if any, required by this Section 8.02.  Such notice shall also state the name or
names (with address or addresses) in which the certificate or certificates for
Common Shares, if any, which shall be issuable on such conversion shall be
issued (if other than in the name of the Holder tendering such Note for
conversion), and shall be accompanied by transfer or similar taxes, if required
pursuant to Section 8.07.

 

In order to exercise the conversion right with
respect to any interest in a Global Note, the beneficial Holder must complete,
or cause to be completed, the appropriate instruction form for conversion
pursuant to the Depositary’s book-entry conversion program; deliver, or cause
to be delivered, by book-entry delivery such interest in such Global Note;
deliver, or cause to be delivered, to the office or agency of the Company
maintained for that purpose or, at the option of such Holder, the Corporate
Trust Office, a duly completed and manually signed Conversion Notice; furnish
appropriate endorsements and transfer documents if required by the Company or
the Trustee or the Conversion Agent; and pay the funds, if any, required by
this Section 8.02 and any transfer taxes if required pursuant to Section 8.07.

 

Each conversion shall be deemed to have been
effected as to any such Note (or portion thereof) on the date on which the
requirements set forth above in this Section 8.02 have been satisfied as
to such Note (or portion thereof) (the “Conversion Date”).

 

Except as set forth in the next succeeding
paragraph, upon conversion of a Note, a Holder shall not be entitled to receive
any cash payment in respect of interest, and the Company shall not be required
to adjust the Conversion Rate to account for any accrued and unpaid
interest.  The delivery by the Company to
the Holder of cash and Common Shares, if any, upon conversion shall be deemed
to satisfy the Company’s obligation with respect to Notes tendered for
conversion. Accordingly, upon conversion of Notes, any accrued but unpaid
interest shall be deemed to be paid in full, rather than cancelled,
extinguished or forfeited.

 

Holders of Notes at the close of business on a
Regular Record Date for an interest payment shall receive payment of the
interest payable on the corresponding Interest Payment Date notwithstanding the
conversion of such Notes at any time after the close of business on the
applicable Regular Record Date and on or prior to the corresponding Interest
Payment Date.  Accordingly, any Note or
portion thereof surrendered for conversion after the close of business on the
Regular Record Date for any Interest Payment Date and on or prior to the
corresponding Interest Payment Date shall be accompanied by payment, in
immediately available funds or other funds acceptable to the Company, of an
amount equal to the interest otherwise payable on such Interest Payment Date on
the principal amount being converted; provided that
no such payment need be made (1) if the Company has specified a Redemption
Date that is after a Regular Record Date and on or prior to the corresponding
Interest Payment Date, (2) to the extent of any overdue interest, if any
overdue interest exists at the time of conversion with respect to such Notes,
or (3) in respect of any conversion that occurs after the Regular Record
Date for the interest payment due on the Stated Maturity.

 

In case any Note of a denomination greater than
$2,000 shall be surrendered for partial conversion, and subject to Section 2.04,
the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of the Note so surrendered, without charge to the Holder, a

 

31

 

new Note or Notes in
authorized denominations in an aggregate principal amount equal to the
unconverted portion of the surrendered Note.

 

Upon the conversion of an interest in a Global Note,
the Trustee (or other Conversion Agent appointed by the Company), or the
Custodian at the direction of the Trustee (or other Conversion Agent appointed
by the Company), shall make a notation on such Global Note as to the reduction
in the principal amount represented thereby. 
The Company shall notify the Trustee in writing of any conversion of
Notes effected through any Conversion Agent other than the Trustee.

 

SECTION 8.03.                                         Cash
Payments in Lieu of Fractional Shares.  No fractional Common Shares or scrip
certificates representing fractional shares shall be issued upon conversion of
Notes. If more than one Note shall be surrendered for conversion at one time by
the same Holder, the number of full shares that shall be issuable upon conversion
shall be computed on the basis of the aggregate principal amount of the Notes
(or specified portions thereof to the extent permitted hereby) so surrendered.
The Company shall deliver cash in lieu of any fractional Common Shares issuable
in connection with payment of the settlement amount determined in accordance
with the provisions of Section 8.12 based on the Daily VWAP on the
relevant Conversion Date (in the case of Physical Settlement) or based on the
Daily VWAP on the last Trading Day of the relevant Observation Period (in the
case of Combination Settlement).

 

SECTION 8.04.                                         Conversion
Rate.  The Conversion Rate for the
Notes is 122.2046 Common Shares per each $1,000 principal amount of the Notes
(herein called the “Conversion Rate”),
subject to adjustment as provided in Sections 8.05 and 8.13.

 

SECTION 8.05.                                         Adjustment
of Conversion Rate.  The Conversion Rate shall be adjusted by the
Company from time to time as follows:

 

(a)                                  If the Company
issues Common Shares as a distribution on Common Shares to all holders of
Common Shares, or if the Company effects a share split or share combination
with respect to the Common Shares, the Conversion Rate will be adjusted based
on the following formula:

 

	
  CR1 = CR0 x

  	
  OS1

  	
   

  
	
  OS0

  	
   

  

 

where

 

CR0 =                                       the Conversion Rate in effect immediately
prior to the adjustment relating to such event

 

CR1 =                                       the new Conversion Rate in effect taking such
event into account

 

OS0 =                                       the number of Common Shares outstanding
immediately prior to the open of business on the Ex-Dividend Date of such
distribution or the effective date of such share split or share combination, as
the case may be

 

OS1 =                                       the number of Common Shares outstanding
immediately after giving effect to such event.

 

32

 

Any adjustment made under
this clause (a) shall become effective immediately after the open of
business on the Ex-Dividend Date for such distribution, or immediately after
the open of business on the effective date for such share split or share
combination. If any distribution of the type described in this clause (a) is
declared but not so paid or made, or any share split or combination of the type
described in this clause (a) is announced but the outstanding Common
Shares are not split or combined, as the case may be, the Conversion Rate shall
be immediately readjusted, effective as of the date our Board of Directors
determines not to pay such distribution, or not to split or combine the
outstanding Common Shares, as the case may be, to the Conversion Rate that would
then be in effect if such distribution, share split or share combination had
not been declared or announced.

 

(b)                                 If the Company
issues to all holders of Common Shares any rights, warrants or options
entitling such holders for a period of not more than 45 days after the date of
issuance thereof to subscribe for or purchase Common Shares at an exercise
price per Common Share less than the Closing Sale Price of the Common Shares on
the Business Day immediately preceding the time of announcement of such issuance,
the Conversion Rate will be adjusted based on the following formula:

 

	
  CR1 = CR0 x

  	
  OS0 + X

  	
   

  
	
  OS0 + Y

  	
   

  

 

where

 

CR0 =                                       the Conversion Rate in
effect immediately prior to the adjustment relating to such event

 

CR1 =                                       the new Conversion Rate
taking such event into account

 

OS0 =                                       the number of Common Shares
outstanding immediately prior to the open of business on the Ex-Dividend Date
for such issuance

 

X =                                                   the total
number of Common Shares issuable pursuant to such rights, warrants or options

 

Y =                                                    the number of
Common Shares equal to the quotient of (A) the aggregate price payable to
exercise such rights, warrants or options and (B) the average of the
Closing Sale Prices of the Common Shares for the 10 consecutive Trading Days
prior to the Business Day immediately preceding the date of announcement for
the issuance of such rights, warrants or options.

 

For purposes of this clause
(b), in determining whether any rights, warrants or options entitle the Holders
to subscribe for or purchase Common Shares at less than the applicable Closing
Sale Price of the Common Shares, and in determining the aggregate exercise
price payable for such Common Shares, there shall be taken into account any
consideration received by the Company for such rights, warrants or options and any
amount payable on exercise thereof, with the value of such consideration, if
other than cash, to be determined by the Board of Directors. Any adjustment
made pursuant to this clause (b) shall become effective immediately after
the open of

 

33

 

business on the Ex-Dividend
Date for such issuance. If any right, warrant or option described in this
clause (b) is not exercised prior to the expiration of the exercisability
thereof, the new Conversion Rate shall be readjusted to the Conversion Rate
that would then be in effect if such right, warrant or option had not been so
issued.

 

(c)                                If the Company
distributes equity interests in itself, evidences of indebtedness, rights to
acquire the Company’s equity interests or indebtedness or other assets or
property of the Company to all holders of Common Shares, excluding:

 

(A)                            distributions, rights, warrants or options
referred to in clause (a) or (b) above,

 

(B)                              distributions paid exclusively in cash, and

 

(C)                              Spin-Offs described below in this clause (c),

 

then the Conversion Rate
will be adjusted based on the following formula:

 

	
  CR1 = CR0 x

  	
  SP0

  	
   

  
	
  SP0 - FMV

  	
   

  

 

where

 

CR0 =                                       the Conversion Rate in
effect immediately prior to the adjustment relating to such event

 

CR1 =                                       the new Conversion Rate
taking such event into account

 

SP0 =                                         the average of the Closing
Sale Prices of the Common Shares for the 10 consecutive Trading Days prior to
the Business Day immediately preceding the Ex-Dividend Date for such
distribution

 

FMV =                                 the fair market
value (as determined in good faith by the Board of Directors) of the equity
interests, evidences of indebtedness, rights to acquire the Company’s equity
interests or indebtedness or other assets or property distributed with respect
to each outstanding Common Share on the Ex-Dividend Date for such distribution.

 

An adjustment to the
Conversion Rate made pursuant to the immediately preceding clause shall be made
successively whenever any such distribution is made and shall become effective
immediately after the open of business on the Ex-Dividend Date for such
distribution.

 

If
the Company distributes to all holders of Common Shares capital stock of any
class or series, or similar equity interest, of or relating to a Subsidiary or
other business unit of the Company (a “Spin-Off”), the
Conversion Rate will be adjusted based on the following formula

 

	
  CR1 = CR0 x

  	
  FMV0 + MP0

  	
   

  
	
  MP0

  	
   

  

 

where

 

34

 

CR0 =                                       the Conversion Rate in
effect immediately prior to the adjustment relating to such event

 

CR1 =                                       the new Conversion Rate
taking such event into account

 

FMV0 =                            the average of the Closing
Sale Prices of the capital stock or similar equity interest distributed to
holders of Common Shares applicable to one Common Share over the first 10
consecutive Trading Days after the effective date of the Spin-Off

 

MP0 =                                    the average of the Closing
Sale Prices of the Common Shares over the first 10 consecutive Trading Days
after the effective date of the Spin-Off.

 

An adjustment to the
Conversion Rate made pursuant to the immediately preceding clause will occur on
the 10th Trading Day from and including the effective date of the Spin-Off.

 

If any such distribution
described in this clause (c) is declared but not paid or made, the new
Conversion Rate shall be readjusted to be the Conversion Rate that would then
be in effect if such distribution had not been declared.

 

(d)                                 If the Company
pays or makes any cash distribution in respect of any of its quarterly fiscal
periods (without regard to when paid) to all holders of Common Shares in an
aggregate amount that, together with other cash distributions paid or made in
respect of such quarterly fiscal period, exceeds the product of $0.05 (the “Reference Dividend”) multiplied by the number of Common
Shares outstanding on the record date for such distribution, the Conversion
Rate will be adjusted based on the following formula:

 

	
  CR1 = CR0 x

  	
  SP0

  	
   

  
	
  SP0 - C

  	
   

  

 

where

 

CR0 =                                       the Conversion Rate in
effect immediately prior to the adjustment relating to such event

 

CR1 =                                       the new Conversion Rate
taking such event into account

 

SP0 =                                         the average of Closing Sale
Prices of the Common Shares for the 10 consecutive Trading Days prior to the
Business Day immediately preceding the Ex-Dividend Date for such distribution

 

C =                                                    the amount in
cash per Common Share that the Company distributes to holders of Common Shares
in respect of such quarterly fiscal period that exceeds the Reference Dividend.

 

The Reference Dividend shall be subject to
adjustment on account of any of the events set forth in clauses (a), (b) and
(c) above and clause (e) below. 
Any such adjustment will be effected by multiplying the Reference
Dividend by a fraction, the numerator of which will equal the

 

35

 

Conversion Rate in effect immediately prior to the
adjustment on account of such event and the denominator of which will equal the
Conversion Rate as adjusted.

 

An adjustment to the
Conversion Rate made pursuant to this clause (d) shall become effective immediately
after the open of business on the Ex-Dividend Date for such distribution. If
any distribution described in this clause (d) is declared but not so paid
or made, the new Conversion Rate shall be readjusted to the Conversion Rate
that would then be in effect if such distribution had not been declared.

 

(e)                                  If the Company
or any of its Subsidiaries makes a payment in respect of a tender offer or
exchange offer for the Common Shares to the extent that the cash and value of
any other consideration included in the payment per Common Share exceeds the
Closing Sale Price of the Common Shares on the Trading Day next succeeding the
last date on which tenders or exchanges may be made pursuant to such tender or
exchange offer, the Conversion Rate will be adjusted based on the following
formula:

 

	
  CR1 = CR0 x 

  	
  AC + (SP1 x OS1)

  
	
  OS0 x SP1

  

 

where

 

CR0 =                                         the Conversion Rate in
effect immediately prior to the adjustment relating to such event

 

CR1 =                                         the new Conversion Rate
taking such event into account

 

AC =                                            the aggregate
value of all cash and any other consideration (as determined by the Board of
Directors) paid or payable for Common Shares purchased in such tender or
exchange offer

 

OS0 =                                         the number of Common Shares
outstanding immediately prior to the date such tender or exchange offer expires
(prior to giving effect to the purchase or exchange of shares pursuant to such
tender or exchange offer)

 

OS1 =                                         the number of Common Shares
outstanding immediately after such tender or exchange offer expires (after
giving effect to the purchase or exchange of shares pursuant to such tender or
exchange offer)

 

SP1 =                                           the average of
the Closing Sale Prices of the Common Shares for the 10 consecutive Trading
Days commencing on the Trading Day next succeeding the date such tender or
exchange offer expires.

 

If the application of the
foregoing formula would result in a decrease in the Conversion Rate, no
adjustment to the Conversion Rate will be made.

 

Any adjustment to the Conversion Rate made
pursuant to this clause (e) shall become effective on the date immediately
following the determination of the average of the Closing Sale Prices of the
Common Shares for purposes of SP1 above.  If the Company or one of its 

 

36

 

Subsidiaries is obligated to
purchase Common Shares pursuant to any such tender or exchange offer but is
permanently prevented by applicable law from effecting any such purchase or all
such purchases are rescinded or otherwise not consummated, the new Conversion
Rate shall be readjusted to be the Conversion Rate that would be in effect if
such tender or exchange offer had not been made.

 

Notwithstanding anything to the contrary in
this Article 8, if a Conversion Rate adjustment becomes effective on any
Ex-Dividend Date as described above, and a Holder that has converted its Notes
on or after such Ex-Dividend Date and on or prior to the related record date
would be treated as the record holder of the Common Shares to be delivered upon
conversion as of the related Conversion Date based on an adjusted Conversion
Rate for such Ex-Dividend Date, then, notwithstanding the foregoing Conversion
Rate adjustment provisions, the Conversion Rate adjustment relating to such
Ex-Dividend Date will not be made for such converting Holder. Instead, such
Holder will be treated as if such Holder were the record owner of such Common
Shares on an unadjusted basis and participate in the related dividend,
distribution or other event giving rise to such adjustment.

 

(f)                                    In addition to
the adjustments pursuant to clauses (a) through (e) above, the
Company may increase the Conversion Rate in order to avoid or diminish any
income tax to holders of Common Shares resulting from any distribution of
equity interests (or rights to acquire Common Shares) or from any event treated
as such for income tax purposes. The Company may also, from time to time, to
the extent permitted by applicable law, increase the Conversion Rate by any
amount for any period if the Company has determined that such increase would be
in the best interests of the Company. If the Company makes such determination,
it will be conclusive and the Company will mail to Holders of the Notes a
notice of the increased Conversion Rate and the period during which it will be
in effect at least fifteen (15) days prior to the date the increased Conversion
Rate takes effect in accordance with applicable law.

 

(g)                                 The Company
will not make any adjustment to the Conversion Rate if Holders of the Notes are
permitted to participate, on an as-converted basis assuming Physical
Settlement, in the transactions described above.

 

(h)                                 Notwithstanding
anything to the contrary contained herein, the applicable Conversion Rate shall
not be adjusted for: (i) the issuance of any Common Shares pursuant to any
present or future plan providing for the reinvestment of distributions or
interest payable on securities of the Company and the investment of additional
optional amounts in Common Shares under any plan; (ii) the issuance of any
Common Shares or options or rights to purchase those shares pursuant to any
present or future employee, director or consultant benefit plan, employee
agreement or arrangement or program of the Company; (iii) the issuance of
any Common Shares pursuant to any option, warrant, right or exercisable,
exchangeable or convertible security outstanding as of the date the Notes were
first issued; (iv) accumulated and unpaid dividends or distributions; (v) if
applicable, a change in the par value of the Common Shares; (vi) the
issuance of Common Shares pursuant to an underwritten offering (whether
pursuant to a registration statement that has become effective under the
Securities Act or pursuant to an applicable exemption therefrom); and (vii) as
a result of a tender offer solely to holders of fewer than 100 Common Shares.

 

37

 

(i)                                     No adjustment
in the Conversion Rate will be required unless the adjustment would require an
increase or decrease of at least 1% of the Conversion Rate. However, the
Company shall carry forward any adjustments that are less than 1% of the
Conversion Rate and make such carried-forward adjustments on each Conversion
Date and each Trading Day of any Observation Period. All required calculations
will be made to the nearest cent or 1/1,000th of a share, as the case may be.

 

(j)                                     Whenever the Conversion Rate is adjusted
as herein provided, the Company shall promptly file with the Trustee and any Conversion Agent
other than the Trustee, an Officers’ Certificate setting forth the Conversion
Rate after such adjustment and setting forth a brief statement of the facts
requiring such adjustment.  Unless and
until a Responsible Officer of the Trustee shall have received such Officers’
Certificate, the Trustee shall not be deemed to have knowledge of any
adjustment of the Conversion Rate and may assume that the last Conversion Rate
of which it has knowledge is still in effect. 
Promptly after delivery of such certificate, the Company shall prepare a
notice of such adjustment of the Conversion Rate setting forth the adjusted
Conversion Rate and the date on which each adjustment becomes effective and
shall mail such notice of such adjustment of the Conversion Rate to the Holders
of the Notes within 20 Business Days of the effective date of such adjustment.  Failure to deliver such notice shall not
affect the legality or validity of any such adjustment.

 

(k)                                  For purposes of this Section 8.05,
the number of Common Shares at any time outstanding shall not include shares held in the treasury
of the Company but shall include shares issuable in respect of scrip
certificates issued in lieu of fractions of Common Shares.

 

(l)                                     Notwithstanding anything in this Section 8.05 to
the contrary, in no event shall the Conversion Rate be adjusted so that the
Conversion Price would be less than $0.01.

 

SECTION 8.06.                                         Change in Conversion
Right Upon Certain Reclassifications, Business Combinations and Asset Sales.

 

(a)                                  If the Company is a party to a
consolidation, merger or binding share exchange (including, without limitation,
by way of a recapitalization, reclassification or change of Common Shares
(other than changes resulting from a subdivision or combination) or a sale,
lease or transfer to a third party of the Company’s and the Company’s
Subsidiaries’ consolidated assets substantially as an entirety), pursuant to
which all of the Common Shares are converted into cash, securities or other
property (any such event, a “Merger Event”),
then the Company or the successor or purchasing Person, as the case may be,
shall execute with the Trustee a supplemental indenture (which shall comply
with the Trust Indenture Act as in force at the date of execution of such
supplemental indenture if such supplemental indenture is then required to so
comply) and which shall provide that Holders shall be entitled at and after the
effective time of the Merger Event to convert their Notes into the type and
amount of cash, securities or other property (including any combination
thereof) that a holder of Common Shares immediately prior to such Merger Event
would have owned or been entitled to receive upon such Merger Event (“Reference Property”) determined in accordance with Section 8.06(c) below.

 

(b)                                 In the event the Company shall execute a
supplemental indenture pursuant to this Section 8.06, the Company shall
promptly file with the Trustee an Officers’ Certificate and an Opinion of
Counsel briefly describing the Merger Event and stating the type or amount of
cash, 

 

38

 

securities, property or other assets that will
comprise the Reference Property after any such Merger Event, any adjustment to
be made with respect thereto and that all conditions precedent to such Merger
Event under this Supplemental Indenture have been complied with.  Promptly following the effective time of any
such Merger Event, the Company shall issue a press release describing the type
or amount of cash, securities, property or other assets that will comprise the
Reference Property after any such Merger Event (and shall make the press
release available on its website.)  Any
failure to deliver such Officers’ Certificate or issue such press release shall
not affect the legality or validity of such supplemental indenture.

 

(c)                                  With respect to each $1,000 principal
amount of Notes surrendered for conversion after the effective date of any such
Merger Event in lieu of cash, Common Shares or a combination of cash and Common
Shares otherwise provided for hereunder, the Settlement Amount shall be based
on a number of units of Reference Property (each such unit comprised of the
kind and amount of cash, securities or other property (including any
combination thereof) that a holder of one Common Share immediately prior to
such Merger Event would have owned or been entitled to receive based on the Weighted
Average Consideration) equal to the Conversion Rate.

 

(i)                                     The Company will deliver cash in lieu of
fractional units of Reference Property as set forth pursuant to Section 8.03
(provided that the amount of such cash shall be
determined as if references in such Section to “the Daily VWAP” were
instead a reference to “the Daily VWAP of a unit of Reference Property”
composed of the type and amount of cash, securities or other property
(including any combination thereof) that a holder of one Common Share
immediately prior to such Merger Event would have owned or been entitled to
receive based on the Weighted Average Consideration).

 

(ii)                                  The Daily Settlement Amounts (if
applicable) and Daily Conversion Values (if applicable) shall be determined by
the Company promptly following the last day of the Observation Period based on
the value of a unit of Reference Property.

 

(iii)                               For purposes of this Section 8.06, the “Weighted Average Consideration” means the weighted average
of the types and amounts of consideration received by the holders of Common
Shares entitled to receive cash, securities or other property with respect to
or in exchange for such Common Shares in any Merger Event who affirmatively
make such an election; provided
that, if the types and amounts of consideration that holders of Common Shares
would be entitled to receive with respect to or in exchange for such Common
Shares is based in part upon any form of stockholder election, the “Weighted
Average Consideration” will be deemed to be (A) if holders of the majority
of the Common Shares affirmatively make such an election, the weighted average
of the types and amounts of consideration received by the holders of Common
Shares that affirmatively make such an election or (B) if the holders of a
majority of the Common Shares do not affirmatively make such an election, the
types and amount of consideration actually received by the holders that do not
affirmatively make such election.

 

(iv)                              The Company shall notify the Holders and
the Trustee of the Weighted Average Consideration as soon as practicable after
the Weighted Average Consideration is determined.

 

39

 

(d)                                 The above provisions of this Section 8.06
shall similarly apply to successive Merger Events.

 

SECTION 8.07.                                         Taxes
on Shares Issued.  The issue of
stock certificates, if any, on conversion of Notes shall be made without charge
to the converting Noteholder for any documentary, stamp or similar issue or
transfer tax in respect of the issue thereof. 
The Company shall not, however, be required to pay any such tax which
may be payable in respect of any transfer involved in the issue and delivery of
stock in any name other than that of the Holder of such converted Note, and the
Company shall not be required to issue or deliver any such stock certificate
unless and until the Person or Persons requesting the issue thereof shall have
paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

 

SECTION 8.08.                                         Reservation
of Shares; Shares to be Fully Paid; Compliance With Governmental Requirements.  The Company shall provide, free from
preemptive rights, out of its authorized but unissued shares or shares held in
treasury, sufficient Common Shares to provide for the conversion of the Notes
(assuming Physical Settlement) as required by this Supplemental Indenture from
time to time as such Notes are presented for conversion.

 

Before taking any action which would cause an
adjustment increasing the Conversion Rate to an amount that would cause the
Conversion Price to be reduced below the then par value, if any, of the Common
Shares issuable, if any, upon conversion of the Notes, the Company will take
all corporate action that may, in the opinion of its counsel, be necessary in
order that the Company may validly and legally issue Common Shares at such
adjusted Conversion Rate.

 

The Company covenants that all Common Shares,
if any, which may be issued upon conversion of Notes will upon issue be fully
paid and non-assessable and free from all taxes, liens and charges with respect
to the issue thereof.

 

SECTION 8.09.                                         Responsibility
of Trustee.  The Trustee
and any other Conversion Agent shall not at any time be under any duty or
responsibility to any Holder of Notes to determine the Conversion Rate or
whether any facts exist which may require any adjustment of the Conversion
Rate, or with respect to the nature or extent or calculation of any such
adjustment when made, or with respect to the method employed, or herein or in
any supplemental indenture provided to be employed, in making the same.  The Trustee and any other Conversion Agent
shall not be accountable with respect to the validity or value (or the kind or
amount) of any Common Shares, or of any capital stock, other securities or
other assets or property, that may at any time be issued or delivered upon the
conversion of any Note; and the Trustee and any other Conversion Agent make no
representations with respect thereto. 
Neither the Trustee nor any Conversion Agent shall be responsible for
any failure of the Company to issue, transfer or deliver any Common Shares or
stock certificates or other securities or property or cash upon the surrender
of any Note for the purpose of conversion or to comply with any of the duties,
responsibilities or covenants of the Company contained in this Article 8.  Without limiting the generality of the
foregoing, neither the Trustee nor any Conversion Agent shall be under any
responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 8.06 relating
either to the kind or amount of shares of capital stock or other securities or
other assets or property (including cash) receivable by Noteholders upon the
conversion of their Notes after any Merger Event or to any adjustment to 

 

40

 

be made with respect
thereto, but, subject to the provisions of Section 6.01, may accept as
conclusive evidence of the correctness of any such provisions, and shall be
protected in relying upon, the Officers’ Certificate and Opinion of Counsel
(which the Company shall be obligated to file with the Trustee prior to the
execution of any such supplemental indenture) with respect thereto.

 

SECTION 8.10.                                         Notice
to Holders Prior to Certain Actions.  In case:

 

(a)                                  the Company shall declare a dividend (or
any other distribution) on its Common Shares that would require an adjustment
in the Conversion Rate pursuant to Section 8.05; or

 

(b)                                 the Company shall authorize the granting
to the Holders of all or substantially all of its Common Shares of rights or
warrants to subscribe for or purchase any share of any class or any other
rights or warrants; or

 

(c)                                  of any reclassification or reorganization
of the Common Shares (other than a subdivision or combination of its
outstanding Common Shares, or a change in par value, or from par value to no
par value, or from no par value to par value), or of any consolidation,
combination, merger or share exchange to which the Company is a party and for
which approval of any stockholders of the Company is required, or of the sale
or transfer of all or substantially all of the assets of the Company; or

 

(d)                                 of the voluntary or involuntary
dissolution, liquidation or winding up of the Company,

 

the Company shall cause to be filed with the Trustee
and to be mailed to each Holder of Notes at its address appearing on the
Security Register provided for in the Original Indenture, as promptly as
possible but in any event at least ten (10) calendar days prior to the
applicable date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the purpose of such dividend, distribution or
rights or warrants, or, if a record is not to be taken, the date as of which
the Holders of Common Shares of record to be entitled to such dividend,
distribution or rights are to be determined, or (y) the date on which such
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up is expected to become effective or occur, and the
date as of which it is expected that Holders of Common Shares of record shall
be entitled to exchange their Common Shares for securities or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up. 
Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such dividend, distribution, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up.

 

SECTION 8.11.                                         Shareholder
Rights Plans.  If the
Company has in effect a rights plan while any Notes remain Outstanding, Holders
of Notes will receive, upon a conversion of Notes in respect of which the Company
is required to deliver Common Shares, in addition to such Common Shares, rights
under the Company’s stockholder rights agreement unless, prior to conversion,
the rights have expired, terminated or been redeemed or unless the rights have
separated from the Common Shares. If the rights provided for in the rights plan
adopted by the Company have separated from the Common Shares in accordance with
the provisions of the applicable stockholder rights agreement so that Holders
of Notes would not be entitled to receive 

 

41

 

any rights in respect of
Common Shares, if any, that the Company is required to deliver upon conversion
of Notes, the Conversion Rate will be adjusted at the time of separation as if
the Company had distributed to all holders of Common Shares equity interests,
evidences of indebtedness or other assets or property pursuant to Section 8.05(c),
subject to readjustment upon the subsequent expiration, termination or
redemption of the rights.

 

SECTION 8.12.                                         Settlement Upon
Conversion.

 

(a)                                  Upon a conversion of Notes, the Company
may elect to pay or deliver, as the case may be, (i) solely cash (“Cash Settlement”), (ii) solely Common Shares, together
with cash, if applicable, in lieu of any fractional Common Shares (“Physical Settlement”) or (iii) a combination of cash
and Common Shares (“Combination Settlement”)
in order to satisfy its obligations to converting Noteholders (the “Conversion Obligation”).

 

(b)                                 The same Settlement Method shall be used
in each of the following cases:

 

(i)                                     all conversions occurring on or after December 15,
2016;

 

(ii)                                  all conversions of Notes selected for
redemption occurring on or after the date of issuance of the related Redemption
Notice and prior to the related Redemption Date; and

 

(iii)                               all conversions occurring on the same Trading Day
prior to December 15, 2016,

 

provided however, that except as described in (i), (ii) and (iii) above,
the Company shall not have any obligation to elect the same Settlement Method
with respect to conversions occurring on different Trading Days. If the Company
elects a Settlement Method in respect of a Conversion Date, the Company shall
provide notice (the “Settlement Notice”)
to converting Holders through the Trustee of such Settlement Method no later
than the second Business Day immediately following the related Conversion Date
(or, in the case of any Conversion Date occurring on or after (x) the
date of issuance of a Redemption Notice and prior to the related Redemption
Date, in such Redemption Notice or (y) December 15, 2016, no later
than December 15, 2016).  If the Company does not
timely elect a Settlement Method in respect of a conversion of Notes, it shall
be deemed to have elected Physical Settlement in respect of the related
Conversion Obligation.

 

(c)                                  The Settlement Amount due upon conversion
of the Notes shall be computed as follows:

 

(i)                                     if the Company elects to satisfy its
Conversion Obligation by Physical Settlement, the Company shall deliver to the
converting Holder a number of Common Shares equal to the product of (x) the
aggregate principal amount of Notes to be converted, divided by $1,000 and (y) the Conversion Rate;

 

(ii)                                  if the Company elects to satisfy its
Conversion Obligation by Cash Settlement, the Company shall pay to the
converting Holder in respect of each $1,000 principal amount of Notes being
converted cash in an amount equal to the sum of the 

 

42

 

Daily Conversion
Values for each of the 20 consecutive Trading Days during the relevant
Observation Period; and

 

(iii)                               if the Company elects to satisfy its Conversion
Obligation by Combination Settlement, the Company shall pay or deliver, as the
case may be, to the converting Holder in respect of each $1,000 principal
amount of Notes being converted, an amount of cash and Common Shares equal to
the sum of the Daily Settlement Amounts for each of the 20 consecutive Trading
Days during the relevant Observation Period.

 

(d)                                 “Daily Settlement Amount”
for each of the 20 consecutive Trading Days during the relevant Observation
Period, shall consist of:

 

(i)                                     cash equal to the lesser of (i) the
Daily Measurement Value and (ii) the Daily Conversion Value, and

 

(ii)                                  if the Daily Conversion Value exceeds the
Daily Measurement Value, a number of Common Shares equal to (i) the
difference between the Daily Conversion Value and the Daily Measurement Value,
divided by (ii) the Daily VWAP for such Trading Day.

 

“Daily Measurement Value”
means the Specified Dollar Amount (if any), divided by 20.

 

“Daily Conversion Value”
means, for each of the 20 consecutive Trading Days during the Observation
Period, one-twentieth of the product of (i) the applicable Conversion Rate
and (ii) the Daily VWAP of the Common Shares on such Trading Day.

 

“Specified Dollar Amount”
means the dollar amount per $1,000 principal amount of a Note specified by the
Company in the Settlement Notice related to such Note.

 

“Daily VWAP”
means, for each of the 20 consecutive Trading Days during the Observation
Period, the per share volume-weighted average price of the Common Shares as
displayed under the heading “Bloomberg VWAP” on Bloomberg page “KFN.N
<equity> AQR” (or any successor thereto) in respect of the period from
the scheduled open of the primary exchange or market on which the Common Shares are listed or traded to the scheduled
close of such exchange or market on such Trading Day (or if such
volume-weighted average price is unavailable, the market value per Common Share
on such Trading Day determined, using a volume-weighted average method, by a
nationally recognized independent investment banking firm retained for this
purpose by the Company).

 

“Observation
Period” with respect to any Note means the 20 consecutive Trading
Day period beginning on and including the second Trading Day after the
Conversion Date relating to such Note, except that with respect to any Note
surrendered for conversion during the period beginning on December 15,
2016 and ending on the Business Day prior to the Stated Maturity, “Observation
Period” means the 20 Trading Days beginning on and including the 22nd Scheduled Trading Day prior to the Stated
Maturity.

 

(e)                                  If the Company elects Physical
Settlement, the Company shall deliver the Settlement Amount to converting
Holders on the third Trading Day following the Conversion 

 

43

 

Date, but such Holders will be deemed to be the owners
of the Common Shares included in the Settlement Amount as of the close of
business on the Conversion Date. If the Company elects Cash Settlement or
Combination Settlement, the Company will pay or deliver, as the case may be,
the Settlement Amount to converting Holders on the third Trading Day following
the final Trading Day of the relevant Observation Period and such Holders will
only be deemed to be the owners of any of the Common Shares included in the
Settlement Amount upon the delivery of such Common Shares.

 

SECTION 8.13.                                         Make-Whole Adjustments
Upon Certain Fundamental Changes, Early Redemptions or a Termination of Conversion
Rights.

 

(a)                                  If

 

(i)                                     the Effective Date of a transaction
described in clauses (1) or (2) of the definition of Change in
Control (a “Make-Whole Fundamental Change”)
occurs prior to the Stated Maturity and a Holder elects to convert its Notes in
connection with such Make-Whole Fundamental Change;

 

(ii)                                  the Company gives notice of its election
to redeem the Notes to preserve the REIT status of any of its Subsidiaries as
described in Article 3 and a Holder elects to convert its Notes in
connection with such redemption; or

 

(iii)                               the Company gives notice of its election to terminate
the conversion rights of Holders upon satisfaction of the conditions described
in Section 8.16 and a Holder elects to convert its Notes in connection
with such termination,

 

then, in each case, the
Company shall increase the applicable Conversion Rate for such Notes
surrendered for conversion by a number of additional Common Shares (the “Additional Shares”) as specified below.  A conversion of Notes shall be deemed for the
purposes of this Section 8.13 to be (A) “in connection with” such
Make-Whole Fundamental Change, if the Conversion Notice is received by the
Conversion Agent on any date from and including the Effective Date of such
Make-Whole Fundamental Change up to and including the earlier of the 30th
Business Day following the Effective Date of such Make-Whole Fundamental Change
and the Business Day immediately preceding the Stated Maturity, (B) “in
connection with” such redemption of Notes, if the Conversion Notice is received
by the Conversion Agent on or after the issuance date of the Redemption Notice
and prior to the close of business on the Business Day immediately preceding
the Redemption Date and (C) “in connection with” such termination of
conversion rights, if the Conversion Notice is received by the Conversion Agent
on or after the issuance date of the Termination Notice and prior to the close
of business on the Business Day immediately preceding the Conversion Rights
Termination Date.

 

(b)                                 The number of Additional Shares will be
determined by reference to the table in Section 8.13(e) and is based
on the date on which the Make-Whole Fundamental Change becomes effective or the
date of issuance of the Redemption Notice or Termination Notice, as the case
may be, (the “Effective Date”) and the price
paid per Common Share in the Make-Whole Fundamental Change transaction or
deemed to be paid in connection with a redemption of the Notes or termination
of conversion rights, as the case may be, (the “Share Price”).  If Holders of Common Shares receive only cash
in the Make-Whole Fundamental Change

 

44

 

 

transaction, the Share Price shall equal the cash
amount paid per Common Share in such transaction.  In all other cases, including conversions in
connection with a redemption of Notes or a termination of conversion rights,
the Share Price shall equal the average of the Closing Sale Prices of the
Common Shares on the ten (10) consecutive Trading Days up to but excluding
the Effective Date.

 

(c)                                  The Share Prices set forth in the first
row of the table in Section 8.13(e) (i.e., the column headers) shall
be adjusted as of any date on which the Conversion Rate of the Notes is
adjusted pursuant to Section 8.05. 
The adjusted Share Prices shall equal the Share Prices applicable
immediately prior to such adjustment multiplied by a fraction, (i) the
numerator of which shall be the Conversion Rate immediately prior to the
adjustment giving rise to the Share Price adjustment and (ii) the
denominator of which shall be the Conversion Rate as so adjusted.

 

(d)                                 The number of Additional Shares shall be
adjusted in the same manner and for the same events as the Conversion Rate is
adjusted pursuant to Section 8.05.

 

(e)                                  The following table sets forth the Share
Price and number of Additional Shares to be received per $1,000 principal
amount of Notes:

 

	
  Effective

  	
   

  	
  Share Price

  	
   

  
	
  Date

  	
   

  	
  $6.68

  	
   

  	
  $7.00

  	
   

  	
  $8.00

  	
   

  	
  $9.00

  	
   

  	
  $10.00

  	
   

  	
  $12.50

  	
   

  	
  $15.00

  	
   

  	
  $17.50

  	
   

  	
  $20.00

  	
   

  	
  $22.50

  	
   

  	
  $25.00

  	
   

  	
  $50.00

  	
   

  
	
  January 15, 2010

  	
   

  	
  27.4960

  	
   

  	
  25.9061

  	
   

  	
  20.5505

  	
   

  	
  16.7825

  	
   

  	
  14.0184

  	
   

  	
  9.5812

  	
   

  	
  6.9799

  	
   

  	
  5.3149

  	
   

  	
  4.1648

  	
   

  	
  3.3142

  	
   

  	
  2.6618

  	
   

  	
  1.1865

  	
   

  
	
  January 15, 2011

  	
   

  	
  27.4960

  	
   

  	
  26.1654

  	
   

  	
  20.5824

  	
   

  	
  16.7086

  	
   

  	
  13.9044

  	
   

  	
  9.4862

  	
   

  	
  6.9496

  	
   

  	
  5.3092

  	
   

  	
  4.1598

  	
   

  	
  3.3098

  	
   

  	
  2.6578

  	
   

  	
  1.1865

  	
   

  
	
  January 15, 2012

  	
   

  	
  27.4960

  	
   

  	
  26.0881

  	
   

  	
  20.2254

  	
   

  	
  16.2300

  	
   

  	
  13.4010

  	
   

  	
  9.0588

  	
   

  	
  6.6457

  	
   

  	
  5.1144

  	
   

  	
  4.0503

  	
   

  	
  3.2642

  	
   

  	
  2.6554

  	
   

  	
  1.1865

  	
   

  
	
  January 15, 2013

  	
   

  	
  27.4960

  	
   

  	
  25.6010

  	
   

  	
  19.3704

  	
   

  	
  15.2381

  	
   

  	
  12.3901

  	
   

  	
  8.2037

  	
   

  	
  5.9957

  	
   

  	
  4.6382

  	
   

  	
  3.7088

  	
   

  	
  3.0250

  	
   

  	
  2.4971

  	
   

  	
  1.1358

  	
   

  
	
  January 15, 2014

  	
   

  	
  27.4960

  	
   

  	
  24.6177

  	
   

  	
  17.8668

  	
   

  	
  13.5533

  	
   

  	
  10.7013

  	
   

  	
  6.7880

  	
   

  	
  4.8989

  	
   

  	
  3.7977

  	
   

  	
  3.0619

  	
   

  	
  2.5241

  	
   

  	
  2.1080

  	
   

  	
  0.9721

  	
   

  
	
  January 15, 2015

  	
   

  	
  27.4960

  	
   

  	
  23.1327

  	
   

  	
  15.5534

  	
   

  	
  10.9734

  	
   

  	
  8.1455

  	
   

  	
  4.7146

  	
   

  	
  3.3206

  	
   

  	
  2.5832

  	
   

  	
  2.1060

  	
   

  	
  1.7574

  	
   

  	
  1.4858

  	
   

  	
  0.6949

  	
   

  
	
  January 15, 2016

  	
   

  	
  27.4960

  	
   

  	
  20.8744

  	
   

  	
  11.6792

  	
   

  	
  6.6680

  	
   

  	
  4.0270

  	
   

  	
  1.7172

  	
   

  	
  1.1670

  	
   

  	
  0.9299

  	
   

  	
  0.7721

  	
   

  	
  0.6518

  	
   

  	
  0.5556

  	
   

  	
  0.2623

  	
   

  
	
  January 15, 2017

  	
   

  	
  27.4960

  	
   

  	
  20.6525

  	
   

  	
  2.7954

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

 

(f)                                    If the exact Share Price and Effective
Date are not set forth in the table above, then:

 

(i)                                     if the Share Price is between two Share
Price amounts in the table or the Effective Date is between two Effective Dates
in the table, the number of Additional Shares shall be determined by
straight-line interpolation between the number of Additional Shares set forth
for the higher and lower Share Price amounts and the two dates, as applicable,
based on a 365-day year;

 

(ii)                                  if the Share Price is equal to or in
excess of $50.00 per Common Share (subject to adjustment as specified in Section 8.13(c)),
no Additional Shares will be issued upon a conversion of Notes; and

 

(iii)                               if the Share Price is less than $6.68 per Common Share
(subject to adjustment as specified in Section 8.13(c)), no Additional
Shares will be issued upon a conversion of Notes.

 

45

 

(g)                                 Notwithstanding the provisions of this Section 8.13,
in no event shall the total number of Common Shares issuable upon conversion of
the Notes exceed 149.7006 shares per $1,000 principal amount of Notes, subject
to adjustment in the same manner as the Conversion Rate is subject to
adjustment as set forth in Section 8.05.

 

SECTION 8.14.                                         Ownership
Limit; Withholding Tax.

 

(a)                                  Notwithstanding any other provision of
the Indenture or the Notes, no Holder of Notes shall be entitled to convert
such Notes for Common Shares to the extent that the receipt of such Common
Shares would violate any of the limitations on ownership of Common Shares
contained in the Operating Agreement, unless such Person has been exempted from
such limits by the Board of Directors in accordance with the Operating
Agreement. Any attempted conversion of Notes that would result in the issuance
of Common Shares in excess of such ownership limit in the absence of such an
exemption shall be void to the extent of the number of Common Shares that would
cause such violation and the related Note or portion thereof shall be returned
to the Holder as promptly as practicable. The Company shall have no further
obligation to the Holder with respect to such voided conversion and such Notes
shall be treated as if they had not been submitted for conversion. A Holder of
returned Notes may resubmit such Notes for conversion at a later date subject
to compliance with the terms hereof and the ownership limits set forth in the
Operating Agreement. The Company may, however (but will not be required to), in
a case where a Holder of Notes attempts to convert Notes but is prevented from
doing so as a result of the ownership limit, pay cash to such Holder upon such
conversion as provided in Section 8.12. The foregoing limitation on the
right of Holders of Notes to receive Common Shares upon conversion of Notes
shall terminate if the restrictions on ownership and transfer of the Common
Shares set forth in Article 3 (or any successor provisions) of the
Operating Agreement shall terminate or if the Board of Directors of the Company
shall revoke or otherwise terminate the election by any REIT Subsidiary of the
Company to qualify as a REIT pursuant to Section 856(g) (or any
successor thereto) of the Code or if the Company shall no longer own a REIT
Subsidiary.

 

(b)                                 At the Stated Maturity or upon earlier
redemption or repurchase of the Notes or otherwise, and as otherwise required
by law, the Company may deduct and withhold from the amount of consideration
otherwise deliverable to the Holder the amount required to be deducted and
withheld under applicable law.

 

SECTION 8.15.                                         Calculation
In Respect of Notes.  Except as
otherwise specifically stated herein or in the Notes, all calculations to be
made in respect of the Notes shall be the obligation of the Company. All
calculations made by the Company or its agent as contemplated pursuant to the
terms hereof and of the Notes shall be made in good faith and be final and
binding on the Notes and the Holders of the Notes absent manifest error. The
Company shall provide a schedule of calculations to the Trustee, and the
Trustee shall be entitled to rely upon the accuracy of the calculations by the
Company without independent verification. 
The Trustee shall forward calculations made by the Company to any Holder
of Notes upon request.

 

SECTION 8.16.                                         Right
to Terminate Conversion Rights.

 

(a)                                  The Company may elect, in its sole
discretion, upon the notice set forth in Section 8.16(b), to terminate the
Holders’ rights to convert the Notes effective on or after January 15, 

 

46

 

2013 (such date of termination of conversion rights is
referred to herein as the “Conversion Rights
Termination Date”), if the Closing Sale Price of the Common Shares
for 20 or more Trading Days in a period of 30 consecutive Trading Days ending
on the Trading Day prior to the date the Company provides the notice of its
election to terminate the Holders’ rights to convert (the “Termination
Notice”) exceeds 150% of the Conversion Price in effect on each such
Trading Day.

 

(b)                                 If the Company elects to terminate
conversion rights pursuant to Section 8.16(a), it shall fix the Conversion
Rights Termination Date and it or, at its written request received by the
Trustee not fewer than five (5) Business Days prior (or such shorter
period of time as may be acceptable to the Trustee) to the date the Termination
Notice is to be mailed, the Trustee in the name of and at the expense of the
Company, shall mail or cause to be mailed the Termination Notice not fewer than
thirty (30) calendar days nor more than sixty (60) calendar days prior to the
Conversion Rights Termination Date to each Holder of Notes at its last address
as the same appears on the Security Register; provided
that if the Company makes such request of the Trustee, the text of the
Termination Notice shall be prepared by the Company.  Such mailing shall be by first class
mail.  The Termination Notice, if mailed
in the manner herein provided, shall be conclusively presumed to have been duly
given, whether or not the Holder receives such notice.  In any case, failure to give such notice by
mail or any defect in such notice to the Holder of any Note shall not affect
the validity of the proceedings for the termination of conversion rights of any
other Note.  Concurrently with the
mailing of any Termination Notice, the Company shall issue a press release
through Dow Jones & Company, Inc., Bloomberg Business News or PR
Newswire or a substantially equivalent financial news organization announcing
the Conversion Rights Termination Date and publish that information in a newspaper
of general circulation in The City of New York, or on the Company’s web site,
or through such other public medium as the Company deems appropriate at that
time.  The failure to issue any such
press release or any defect therein shall not affect the validity of the
Termination Notice or any of the proceedings for the termination of conversion
rights of any Note.

 

ARTICLE 9

MISCELLANEOUS PROVISIONS

 

SECTION 9.01.                                         Addresses
for Notices, etc.  Any notice
or demand which by any provision of this Supplemental Indenture is required or
permitted to be given or served by the Trustee or by the Holders of Notes on
the Company shall be in writing and shall be deemed to have been sufficiently
given or made, for all purposes, if given or served by being deposited postage
prepaid by registered or certified mail in a post office letter box, or sent by
overnight courier, or sent by telecopier transmission addressed as follows:

 

KKR Financial Holdings LLC 
 555 California Street
 San Francisco, California 94104

Telecopier No.: 415-391-3330

Attention:  General Counsel

 

Any notice, direction, request or demand hereunder
to or upon the Trustee shall be deemed to have been sufficiently given or made,
for all purposes, if given or served by being deposited, postage prepaid, by
registered or certified mail in a post office letter box, or sent by 

 

47

 

overnight courier, or sent
by telecopier transmission addressed as follows: Wells Fargo Bank, National
Association, 707 Wilshire Boulevard, 17th Floor, Los
Angeles, California 90017 Telecopier No.: 213-614-3355, Attention:  Maddy Hall, Vice President, Corporate Trust
Services.

 

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

 

Any notice or communication mailed to a
Noteholder shall be mailed by first class mail, postage prepaid, at such
Noteholder’s address as it appears on the Note Register and shall be
sufficiently given to such Noteholder if so mailed within the time prescribed.

 

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

 

SECTION 9.02.                                         Governing
Law.  This Supplemental Indenture and
the Notes shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

SECTION 9.03.                                         Trust
Indenture Act.  This Supplemental
Indenture will be subject to, and governed by, the provisions of the Trust
Indenture Act that are required to be part of this Supplemental Indenture and
shall, to the extent applicable, be governed by such provisions.

 

SECTION 9.04.                                         No
Security Interest Created.  Nothing in this Supplemental Indenture or in
the Notes, expressed or implied, shall be construed to constitute a security
interest under the Uniform Commercial Code or similar legislation, as now or
hereafter enacted and in effect, in any jurisdiction in which property of the
Company or its subsidiaries is located.

 

SECTION 9.05.                                         Execution
in Counterparts.  This
Supplemental Indenture may be executed in any number of counterparts, each of
which shall be an original, but such counterparts shall together constitute but
one and the same instrument.

 

SECTION 9.06.                                         Severability.  In case any provision in this Supplemental
Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to
the extent permitted by law) the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

 

SECTION 9.07.                                         Ratification
of Original Indenture.  The
Original Indenture, as supplemented by this Supplemental Indenture, is in all
respects ratified and confirmed, and this Supplemental Indenture shall be
deemed part of the Original Indenture in the manner and to the extent herein
and therein provided.  For the avoidance
of doubt, each of the Company and each Holder of the Notes, by its acceptance of
such Notes, acknowledges and agrees that all of the rights, privileges,
protections, immunities and benefits afforded to the Trustee under the Original
Indenture are deemed to be incorporated herein, and shall be enforceable by the
Trustee hereunder, as if set forth herein in full.

 

Wells Fargo Bank, National Association hereby
accepts the trusts in this Supplemental Indenture declared and provided, upon
the terms and conditions herein above set forth.

 

48

 

[Remainder of the page intentionally left blank]

 

49

 

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

 

 

	
   

  	
  KKR
  FINANCIAL HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael R. McFerran

  
	
   

  	
  Name:
  Michael R. McFerran

  
	
   

  	
  Title:  Chief Operating Officer

  

 

[Trustee Signature Follows]

 

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Maddy Hall

  
	
   

  	
  Name:
  Maddy Hall

  
	
   

  	
  Title:  Vice President

  

 

 

 

EXHIBIT A

 

[Include only for Global Notes]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) (THE “DEPOSITARY,” WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY
FOR THE CERTIFICATES) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY), 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.

 

 

KKR
FINANCIAL HOLDINGS LLC

7.50% CONVERTIBLE SENIOR NOTES DUE 2017

 

	
   

  	
   

  	
  CUSIP: 48248A AD0

  
	
   

  	
   

  	
  ISIN: US48248AAD00

  
	
   

  	
   

  	
   

  
	
  No.

  	
   

  	
  $[                        ]

  

 

KKR Financial Holdings LLC, a Delaware
limited liability company (herein called the “Company,” which term includes any
successor Person under the Indenture referred to on the reverse hereof), for
value received hereby promises to pay to
                  
or its registered assigns, the principal sum of [                                                         ]
[or such other principal amount as shall be set forth on Schedule I hereto](1) on
January 15, 2017 at the office or agency of the Company maintained for
that purpose in accordance with the terms of the Indenture, in such coin or
currency of the United States of America as at the time of payment shall be
legal tender for the payment of public and private debts, and to pay interest,
semi-annually, on January 15 and July 15 of each year (each, an “Interest
Payment Date”), commencing July 15, 2010, on said principal sum at said
office or agency, in like coin or currency, at the rate per annum of 7.50%,
from and including the most recent Interest Payment Date in respect of which
interest has been paid (or commencing January 15, 2010 if no interest has
been paid hereon).

 

Reference is made to the further provisions
of this Note set forth on the reverse hereof, including, without limitation,
provisions giving the Holder of this Note the right to convert this Note in the
manner specified in the Indenture.  Such
further provisions shall for all purposes have the same effect as though fully
set forth at this place.

 

This Note shall not be valid or become
obligatory for any purpose until the certificate of authentication hereon shall
have been manually signed by the Trustee or a duly authorized authenticating
agent under the Indenture.

 

(1)          For Global Notes only.

 

A-2

 

IN WITNESS WHEREOF, the Company has caused
this Note to be duly executed.

 

	
  Dated:
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KKR
  FINANCIAL HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes referred to in the
within-mentioned Indenture.

 

	
  WELLS
  FARGO BANK,

  NATIONAL ASSOCIATION, as Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

A-4

 

FORM OF REVERSE OF NOTE

 

KKR FINANCIAL HOLDINGS LLC

7.50% CONVERTIBLE SENIOR NOTES DUE 2017

 

This note is one of a duly authorized issue
of notes of the Company, designated as its “7.50% Convertible Senior Notes due
2017” (herein called the “Notes”), issued under and pursuant to an Indenture,
dated as of January 15, 2010 (the “Original Indenture”), between the
Company and Wells Fargo Bank, National Association, as trustee (herein called
the “Trustee”), as supplemented with respect to the Notes by the First
Supplemental Indenture, dated as of January 15, 2010 (the “Supplemental
Indenture,” and together with the Original Indenture, the “Indenture”), between
the Company and the Trustee, as trustee, to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Notes.  Capitalized terms used but not otherwise
defined in this Note shall have the respective meanings ascribed thereto in the
Indenture.

 

The Company shall have the right to redeem
the Notes at its option in accordance with the provisions of Article 3 of
the Indenture in order to preserve the REIT status of any of the Company’s
Subsidiaries.  If the Company determines
it is necessary to redeem the Notes in order to preserve the REIT status of any
of its Subsidiaries, the Company may redeem the Notes for cash, in whole or in
part, at the Redemption Price.  In
accordance with the provisions of the Indenture, the Company may not otherwise
redeem the Notes at its option prior to the Stated Maturity thereof.

 

Subject to the terms and conditions set forth
in the Indenture, following the occurrence of a Fundamental Change at any time
prior to the Stated Maturity of the Notes, the Notes shall be subject to repurchase
by the Company, at the option of the Holder, on the Fundamental Change Purchase
Date, at the Fundamental Change Purchase Price. 
To exercise such right, the Holder shall be required to satisfy the
conditions to such repurchase set forth in the Indenture and to deliver to the
Paying Agent the Repurchase Notice set forth on the reverse hereof prior to the
close of business on the third Business Day prior to the Fundamental Change
Purchase Date.

 

The Company may not repurchase any Notes if
there has occurred and is continuing an Event of Default with respect to the
Notes (other than a default in the payment of the Fundamental Change Purchase
Price for such Notes).

 

Holders have the right to withdraw any
Repurchase Notice by delivering to the Paying Agent a written notice of
withdrawal at any time prior to the close of business on the third Business Day
prior to the Fundamental Change Purchase Date, all as provided in the
Indenture.

 

Subject to and in compliance
with the provisions of the Indenture, Holders of Notes shall have the right to
convert each $1,000 principal amount of Notes at the applicable Conversion Rate
into the consideration specified in the Indenture, upon surrender of the Note
to be converted with the form entitled “Conversion Notice” on the reverse
hereof duly completed and manually signed, to the Company at the office or
agency of the Company maintained for that purpose in accordance with the terms
of the Indenture, together with any funds required pursuant to the 

 

A-5

 

terms of the Indenture.  The Conversion Rate shall initially be
122.2046 Common Shares per $1,000 principal amount of Notes, subject to
adjustment in the manner set forth in the Indenture.

 

Notes surrendered for
conversion at any time after the close of business on any applicable Regular
Record Date for the payment of interest and on or prior to the corresponding
Interest Payment Date must be accompanied by payment, in immediately available
funds or other funds acceptable to the Company, of an amount equal to the
interest otherwise payable on such Interest Payment Date on the principal
amount being converted; provided that
no such payment shall be required (1) if the Company has specified a
Redemption Date that is after a Regular Record Date and on or prior to the
corresponding Interest Payment Date, (2) to the extent of any overdue
interest, if any overdue interest exists at the time of conversion with respect
to such Notes, or (3) in respect of any conversion that occurs after the
Regular Record Date for the interest payment due on January 15, 2017.

 

In the event the Holder
surrenders this Note for conversion in connection with a Make-Whole Fundamental
Change, the Company shall increase the applicable Conversion Rate in accordance
with the provisions of Section 8.13 of the Supplemental Indenture.

 

In the event that Common Shares are issued
upon conversion of Notes, no fractional shares shall be issued upon such
conversion, but an adjustment and payment in cash will be made, as provided in
the Indenture, in respect of any fraction of a share which would otherwise be
issuable upon such conversion.

 

A Note in respect of which a
Holder has submitted a Repurchase Notice may be converted only if such Holder
validly withdraws such Repurchase Notice in accordance with the terms of the
Indenture.

 

If an Event of Default (other than an Event
of Default specified in Section 4.01(h), 4.01(i) and 4.01(j) of
the Supplemental Indenture) with respect to the Company) shall occur and be
continuing, the principal of, and accrued and unpaid interest on, the Notes may
be declared to be due and payable in the manner specified in the
Indenture.  If an Event of Default
specified in Section 4.01(h), 4.01(i) or 4.01(j) of the
Supplemental Indenture shall occur with respect to the Company, the principal
of, and interest accrued and unpaid on, the Notes shall be immediately and
automatically due and payable without necessity of further action. Subject to
the provisions of the Indenture, the Holders of not less than a majority in
aggregate principal amount of the Notes at the time Outstanding may, on behalf
of the Holders of all of the Notes, waive any past default or Event of Default,
subject to exceptions set forth in the Indenture.  Upon any such waiver, said default shall for
all purposes of this Note and the Indenture be deemed to have been cured and to
be not continuing, but no such waiver shall extend to any subsequent or other
default or impair any right consequent thereon.

 

The Indenture contains provisions permitting
the Company and the Trustee, with the consent of the Holders of not less than a
majority in aggregate principal amount of the Notes at the time Outstanding, to
execute supplemental indentures to modify provisions of the Indenture, subject
to exceptions permitting the modification of the Indenture without the consent
of any Holder of Notes or requiring the consent of each Holder of a Note
affected by such modification all as set forth in Article 5 of the
Supplemental Indenture.

 

A-6

 

The Notes are issuable in fully registered
form, without coupons, in denominations of $2,000 principal amount and any
multiple of $1,000 in excess thereof.  At
the office or agency of the Company referred to on the face hereof, and in the
manner and subject to the limitations provided in the Indenture, without
payment of any service charge but with payment of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection
with any registration or exchange of Notes, Notes may be exchanged for a like
aggregate principal amount of Notes of any other authorized denominations. Upon
surrender for registration of transfer of any Note to the Note Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth
in the Indenture, the Company shall execute, and the Trustee shall authenticate
and deliver, in the name of the designated transferee or transferees, one or
more new Notes of any authorized denominations and of a like aggregate
principal amount.  No service charge
shall be made to any Holder for any registration of transfer or exchange of
Notes, but the Company may require payment by the Holder of a sum sufficient to
cover any tax, assessment or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes.

 

The Company, the Trustee, any Paying Agent,
any Conversion Agent and any Note Registrar may deem the Person in whose name
this Note shall be registered upon the Security Register to be, and may treat
it as, the absolute owner of this Note (whether or not this Note shall be
overdue and notwithstanding any notation of ownership or other writing thereon
made by any Person other than the Company or any Note Registrar) for the
purpose of receiving payment of or on account of the principal of, and interest
on this Note, for conversion of this Note and for all other purposes; and
neither the Company or the Trustee nor any Paying Agent, Conversion Agent or
any Note Registrar shall be affected by any notice to the contrary.  All such payments so made to any Holder for
the time being, or upon its order, shall be valid, and, to the extent of the
sum or sums so paid, effectual to satisfy and discharge the liability for
monies payable upon any this Note.

 

No recourse for the payment of the principal
of or interest on this Note, or for any claim based hereon or otherwise in
respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any supplemental indenture or in
any Note, or because of the creation of any indebtedness represented hereby,
shall be had against any incorporator, stockholder, partner, member, manager,
employee, agent, officer, director or subsidiary, as such, past, present or
future, of the Company or any of the Company’s Subsidiaries or of any successor
thereto, either directly or through the Company or any of the Company’s
Subsidiaries or of any successor thereto, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty
or otherwise; it being expressly understood that all such liability is hereby
expressly waived and released as a condition of, and as consideration for, the
execution of the Indenture and the issue of this Note.

 

In the case of any conflict between the
provisions of this Note and the Indenture, the provisions of the Indenture
shall control. The Indenture and this Note shall be governed by, and construed
in accordance with, the laws of the State of New York.

 

A-7

 

ABBREVIATIONS

 

The following abbreviations, when used in the
inscription of the face of this Note, shall be construed as though they were
written out in full according to applicable laws or regulations.

 

	
  TEN-COM
  -

  	
   

  	
  as
  tenants in common

  	
   

  	
  UNIF
  GIFT MIN ACT -       

  Custodian         

  
	
  TEN-ENT
  -

  	
   

  	
  as
  tenant by the entireties

  	
   

  	
  (Cust)  (Minor)

  
	
  JT-TEN
  -

  	
   

  	
  as
  joint tenants with right of survivorship and not as tenants in common

  	
   

  	
  under
  Uniform Gifts to Minors Act

                                                          

  (State)

  

 

Additional abbreviations may also be used
though not in the above list.

 

A-8

 

 

Attachment 1

to Exhibit A

 

CONVERSION NOTICE

 

	
  TO:

  	
  KKR
  FINANCIAL HOLDINGS LLC

  
	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION, as Trustee

  

 

The undersigned registered owner of this Note
hereby irrevocably exercises the option to convert this Note, or the portion thereof
(which is $1,000 or a multiple thereof) below designated, in accordance with
the terms of the Indenture referred to in this Note, and directs that the
Common Shares, if any, issuable and deliverable upon such conversion, together
with any check in payment for cash, if any, payable upon conversion or for
fractional shares and any Notes representing any unconverted principal amount
hereof, be issued and delivered to the registered Holder hereof unless a
different name has been indicated below. 
Capitalized terms used herein but not defined shall have the meanings
ascribed to such terms in the Indenture. 
If shares or any portion of this Note not converted are to be issued in
the name of a person other than the undersigned, the undersigned will provide the
appropriate information below and pay all transfer taxes payable with respect
thereto.  Any amount required to be paid
by the undersigned on account of interest accompanies this Note.

 

	
   

  	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature Guarantee

  

 

A-9

 

Fill in the registration of Common Shares, if
any, if to be issued, and Notes, if to be delivered, and the person to whom
cash and payment for fractional shares is to be made, if to be made, other than
to and in the name of the registered Holder:

 

Please print name and address

 

 

(Name)

 

 

                                                            

(Street Address)

 

 

                                                            

(City, State and Zip Code) 

 

 

 

Principal amount to be converted
  (if less than all):

 

$

 

Social Security or Other
Taxpayer

 Identification Number:

 

 

 

NOTICE:  The signature on this Conversion Notice must
correspond with the name as written upon the face of the Note in every
particular without alteration or enlargement or any change whatever.

 

A-10

 

Attachment 2

to Exhibit A

 

COMPANY

REPURCHASE NOTICE

 

	
  TO:

  	
  KKR FINANCIAL HOLDINGS LLC

  
	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION

  

 

The undersigned registered owner of this Note
hereby irrevocably acknowledges receipt of a notice from KKR Financial Holdings
LLC (the “Company”) regarding the right of Holders to elect to require the
Company to repurchase the Notes and requests and instructs the Company to repay
the entire principal amount of this Note, or the portion thereof (which is
$2,000 or an integral multiple of $1,000 in excess thereof) below designated,
in cash, in accordance with the terms of the Indenture at the price of 100% of
such entire principal amount or portion thereof specified below, together with
accrued and unpaid interest to the Repurchase Date to the registered Holder
hereof.  Capitalized terms used herein
but not defined shall have the meanings ascribed to such terms in the
Indenture.  The Notes shall be repurchased
by the Company as of the Repurchase Date pursuant to the terms and conditions
specified in the Indenture.

 

NOTICE: 
The above signatures of the Holder(s) hereof must correspond with
the name as written upon the face of the Note in every particular without
alteration or enlargement or any change whatever.

 

Note Certificate Number:

 

Principal amount to be repurchased (if less
than all, must be $1,000 or whole multiples thereof):

 

Social Security or Other Taxpayer
Identification Number:

 

	
   

  	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature Guarantee

  

 

A-11

 

Attachment 3

to Exhibit A

 

ASSIGNMENT

 

For value received
                                                                                
hereby sell(s) assign(s) and transfer(s) unto
                                                                      
(Please insert social security or other Taxpayer Identification Number of
assignee) the within Note, and hereby irrevocably constitutes and appoints
                                                                            
attorney to transfer said Note on the books of the Company, with full power of
substitution in the premises.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature Guarantee

  

 

NOTICE:  The
signature on this Assignment must correspond with the name as written upon the
face of the Note in every particular without alteration or enlargement or any
change whatever.

 

A-12

 

Schedule
I

 

KKR FINANCIAL
HOLDINGS LLC

7.50% CONVERTIBLE SENIOR NOTES DUE 2017

 

	
  Date

  	
   

  	
  Principal Amount

  	
   

  	
  Notation Explaining

  Principal Amount

  Recorded

  	
   

  	
  Authorized Signature

  of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-13Exhibit 4.1

 

EXECUTION COPY

 

 

 

 

INDENTURE

Dated as of December 29, 2009

Among

TRIMAS CORPORATION,

THE GUARANTORS NAMED ON THE SIGNATURE PAGES HERETO

and

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

as Trustee and as Second Lien Agent

93⁄4% SENIOR SECURED NOTES DUE 2017

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  13.03

  
	
  (c)

  	
   

  	
  13.03

  
	
  313(a)

  	
   

  	
  7.06

  
	
  (b)(1)

  	
   

  	
  N.A.

  
	
  (b)(2)

  	
   

  	
  7.06; 7.07

  
	
  (c)

  	
   

  	
  7.06; 13.02

  
	
  (d)

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  N.A.

  
	
  (c)(2)

  	
   

  	
  N.A.

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  N.A.

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.01

  
	
  (b)

  	
   

  	
  7.05; 13.02

  
	
  (c)

  	
   

  	
  7.01

  
	
  (d)

  	
   

  	
  7.01

  
	
  (e)

  	
   

  	
  6.14

  
	
  316(a)(last
  sentence)

  	
   

  	
  2.09

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.07

  
	
  (c)

  	
   

  	
  2.12; 9.04

  
	
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.12

  
	
  (b)

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
  13.01

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)

  	
   

  	
  13.01

  

 

N.A.
means not applicable.

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1

  

  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
  1

  
	
  Section 1.02

  	
  Other Definitions

  	
  32

  
	
  Section 1.03

  	
  Incorporation by Reference
  of Trust Indenture Act

  	
  33

  
	
  Section 1.04

  	
  Rules of Construction

  	
  34

  
	
  Section 1.05

  	
  Acts of Holders

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  

  THE NOTES

  
	
   

  	
   

  
	
  Section 2.01

  	
  Form and Dating; Terms

  	
  36

  
	
  Section 2.02

  	
  Execution and
  Authentication

  	
  37

  
	
  Section 2.03

  	
  Registrar and Paying Agent

  	
  37

  
	
  Section 2.04

  	
  Paying Agent to Hold Money
  in Trust

  	
  38

  
	
  Section 2.05

  	
  Holder Lists

  	
  38

  
	
  Section 2.06

  	
  Transfer and Exchange

  	
  38

  
	
  Section 2.07

  	
  Replacement Notes

  	
  51

  
	
  Section 2.08

  	
  Outstanding Notes

  	
  52

  
	
  Section 2.09

  	
  Treasury Notes

  	
  52

  
	
  Section 2.10

  	
  Temporary Notes

  	
  52

  
	
  Section 2.11

  	
  Cancellation

  	
  52

  
	
  Section 2.12

  	
  Defaulted Interest

  	
  53

  
	
  Section 2.13

  	
  CUSIP Numbers

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  

  REDEMPTION

  
	
   

  	
   

  
	
  Section 3.01

  	
  Notices to Trustee

  	
  53

  
	
  Section 3.02

  	
  Selection of Notes to Be
  Redeemed or Purchased

  	
  54

  
	
  Section 3.03

  	
  Notice of Redemption

  	
  54

  
	
  Section 3.04

  	
  Effect of Notice of
  Redemption

  	
  55

  
	
  Section 3.05

  	
  Deposit of Redemption or
  Purchase Price

  	
  55

  
	
  Section 3.06

  	
  Notes Redeemed or
  Purchased in Part

  	
  56

  
	
  Section 3.07

  	
  Optional Redemption

  	
  56

  
	
  Section 3.08

  	
  Mandatory Redemption

  	
  57

  
	
  Section 3.09

  	
  Offers to Repurchase by
  Application of Excess Proceeds

  	
  57

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 4

  

  COVENANTS

  
	
   

  	
   

  
	
  Section 4.01

  	
  Payment of Notes

  	
  59

  
	
  Section 4.02

  	
  Maintenance of Office or
  Agency

  	
  59

  
	
  Section 4.03

  	
  Reports and Other
  Information

  	
  60

  
	
  Section 4.04

  	
  Compliance Certificate

  	
  61

  
	
  Section 4.05

  	
  Taxes

  	
  61

  
	
  Section 4.06

  	
  Stay, Extension and Usury
  Laws

  	
  61

  
	
  Section 4.07

  	
  Limitation on Restricted
  Payments

  	
  61

  
	
  Section 4.08

  	
  Dividend and Other Payment
  Restrictions Affecting Restricted Subsidiaries

  	
  66

  
	
  Section 4.09

  	
  Limitation on Incurrence
  of Indebtedness and Issuance of Disqualified Stock and Preferred Stock

  	
  68

  
	
  Section 4.10

  	
  Asset Sales

  	
  72

  
	
  Section 4.11

  	
  Transactions with
  Affiliates

  	
  75

  
	
  Section
  4.12

  	
  Liens

  	
  77

  
	
  Section
  4.13

  	
  Corporate
  Existence

  	
  78

  
	
  Section 4.14

  	
  Offer to Repurchase Upon
  Change of Control

  	
  78

  
	
  Section 4.15

  	
  Limitation on Guarantees
  of Indebtedness by Restricted Subsidiaries

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  

  SUCCESSORS

  
	
   

  
	
  Section 5.01

  	
  Merger, Consolidation or
  Sale of All or Substantially All Assets

  	
  81

  
	
  Section 5.02

  	
  Successor Corporation
  Substituted

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  

  DEFAULTS AND REMEDIES

  
	
   

  
	
  Section 6.01

  	
  Events of Default

  	
  83

  
	
  Section 6.02

  	
  Acceleration

  	
  86

  
	
  Section 6.03

  	
  Other Remedies

  	
  86

  
	
  Section 6.04

  	
  Waiver of Past Defaults

  	
  87

  
	
  Section 6.05

  	
  Control by Majority

  	
  87

  
	
  Section 6.06

  	
  Limitation on Suits

  	
  87

  
	
  Section 6.07

  	
  Rights of Holders of Notes
  to Receive Payment

  	
  88

  
	
  Section 6.08

  	
  Collection Suit by Trustee

  	
  88

  
	
  Section 6.09

  	
  Restoration of Rights and
  Remedies

  	
  88

  
	
  Section 6.10

  	
  Rights and Remedies
  Cumulative

  	
  88

  
	
  Section 6.11

  	
  Delay or Omission Not
  Waiver

  	
  88

  
	
  Section 6.12

  	
  Trustee May File Proofs of
  Claim

  	
  88

  
	
  Section 6.13

  	
  Priorities

  	
  89

  
	
  Section 6.14

  	
  Undertaking for Costs

  	
  89

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  

  TRUSTEE

  
	
   

  
	
  Section 7.01

  	
  Duties of Trustee

  	
  90

  
	
  Section 7.02

  	
  Rights of Trustee

  	
  91

  
	
  Section 7.03

  	
  Individual Rights of
  Trustee

  	
  92

  
	
  Section 7.04

  	
  Trustee’s Disclaimer

  	
  92

  
	
  Section 7.05

  	
  Notice of Defaults

  	
  92

  
	
  Section 7.06

  	
  Reports by Trustee to
  Holders of the Notes

  	
  92

  
	
  Section 7.07

  	
  Compensation and Indemnity

  	
  93

  
	
  Section 7.08

  	
  Replacement of Trustee

  	
  93

  
	
  Section 7.09

  	
  Successor Trustee by
  Merger, etc.

  	
  94

  
	
  Section 7.10

  	
  Eligibility;
  Disqualification

  	
  94

  
	
  Section 7.11

  	
  Preferential Collection of
  Claims Against Issuer

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  

  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  
	
   

  
	
  Section 8.01

  	
  Option to Effect Legal
  Defeasance or Covenant Defeasance

  	
  95

  
	
  Section 8.02

  	
  Legal Defeasance and
  Discharge

  	
  95

  
	
  Section 8.03

  	
  Covenant Defeasance

  	
  96

  
	
  Section 8.04

  	
  Conditions to Legal or
  Covenant Defeasance

  	
  96

  
	
  Section 8.05

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

  	
  97

  
	
  Section 8.06

  	
  Repayment to Issuer

  	
  98

  
	
  Section 8.07

  	
  Reinstatement

  	
  98

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  

  AMENDMENT, SUPPLEMENT AND WAIVER

  
	
   

  
	
  Section 9.01

  	
  Without Consent of Holders
  of Notes

  	
  99

  
	
  Section 9.02

  	
  With Consent of Holders of
  Notes

  	
  100

  
	
  Section 9.03

  	
  Compliance with Trust
  Indenture Act

  	
  102

  
	
  Section 9.04

  	
  Revocation and Effect of
  Consents

  	
  102

  
	
  Section 9.05

  	
  Notation on or Exchange of
  Notes

  	
  103

  
	
  Section 9.06

  	
  Trustee to Sign
  Amendments, etc.

  	
  103

  
	
  Section 9.07

  	
  Payment for Consent

  	
  103

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  

  GUARANTEES

  
	
   

  
	
  Section 10.01

  	
  Guarantee

  	
  103

  
	
  Section 10.02

  	
  Limitation on Guarantor
  Liability

  	
  105

  
	
  Section 10.03

  	
  Execution and Delivery

  	
  105

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 10.04

  	
  Subrogation

  	
  106

  
	
  Section 10.05

  	
  Benefits Acknowledged

  	
  106

  
	
  Section 10.06

  	
  Release of Guarantees

  	
  106

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  

  SATISFACTION AND DISCHARGE

  
	
   

  
	
  Section 11.01

  	
  Satisfaction and Discharge

  	
  106

  
	
  Section 11.02

  	
  Application of Trust Money

  	
  107

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  

  COLLATERAL

  
	
   

  
	
  Section 12.01

  	
  Relative Rights;
  Intercreditor Agreement

  	
  108

  
	
  Section 12.02

  	
  Security Documents

  	
  108

  
	
  Section 12.03

  	
  Release of Collateral

  	
  108

  
	
  Section 12.04

  	
  Information Regarding
  Collateral

  	
  109

  
	
  Section 12.05

  	
  After-Acquired Collateral

  	
  110

  
	
  Section 12.06

  	
  Second Lien Agent

  	
  110

  
	
  Section 12.07

  	
  Authorization of Actions
  to Be Taken

  	
  110

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  

  MISCELLANEOUS

  
	
   

  
	
  Section 13.01

  	
  Trust Indenture Act
  Controls

  	
  111

  
	
  Section 13.02

  	
  Notices

  	
  112

  
	
  Section 13.03

  	
  Communication by Holders
  of Notes with Other Holders of Notes

  	
  113

  
	
  Section 13.04

  	
  Certificate and Opinion as
  to Conditions Precedent

  	
  113

  
	
  Section 13.05

  	
  Statements Required in
  Certificate or Opinion

  	
  113

  
	
  Section 13.06

  	
  Rules by Trustee and
  Agents

  	
  113

  
	
  Section 13.07

  	
  No Personal Liability of Directors,
  Officers, Employees and Stockholders

  	
  114

  
	
  Section 13.08

  	
  Governing Law

  	
  114

  
	
  Section 13.09

  	
  Waiver of Jury Trial

  	
  114

  
	
  Section 13.10

  	
  Force Majeure

  	
  114

  
	
  Section 13.11

  	
  No Adverse Interpretation
  of Other Agreements

  	
  114

  
	
  Section 13.12

  	
  Successors

  	
  114

  
	
  Section 13.13

  	
  Severability

  	
  114

  
	
  Section 13.14

  	
  Counterpart Originals

  	
  115

  
	
  Section 13.15

  	
  Table of Contents,
  Headings, etc.

  	
  115

  
	
  Section 13.16

  	
  Qualification of Indenture

  	
  115

  

 

iv

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Form of Note

  	
   

  
	
  Exhibit B

  	
  Form of Certificate of Transfer

  	
   

  
	
  Exhibit C

  	
  Form of Certificate of Exchange

  	
   

  
	
  Exhibit
  D

  	
  Form
  of Supplemental Indenture to Be Delivered by Subsequent Guarantors

  	
   

  

 

 

INDENTURE, dated as of December 29, 2009, among
TriMas Corporation, a Delaware corporation (the “Issuer”), the Guarantors (as
defined herein) listed on the signature pages hereto and The Bank of New
York Mellon Trust Company, N.A., a national banking association, as Trustee and
as Second Lien Agent.

 

W  I  T
N  E  S  S  E  T  H

 

WHEREAS, the Issuer has duly authorized the creation
of an issue of (i) $250,000,000 aggregate principal amount of 93⁄4% Senior
Secured Notes due 2017 (the “Initial Notes”);

 

WHEREAS, each of the Issuer and each of the
Guarantors has duly authorized the execution and delivery of this Indenture.

 

NOW, THEREFORE, the Issuer, the Guarantors and the
Trustee agree as follows for the benefit of each other and for the equal and
ratable benefit of the Holders of the Notes.

 

ARTICLE
1

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.01              Definitions.

 

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

 

“Acquired Indebtedness”
means, with respect to any specified Person,

 

(1)           Indebtedness 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 Indebtedness incurred in connection with,
or in contemplation of, such other Person merging with or into or becoming a
Restricted Subsidiary of such specified Person, and

 

(2)           Indebtedness secured by a Lien encumbering any asset
acquired by such specified Person.

 

“Additional Interest”
means all additional interest then owing pursuant to the Registration Rights
Agreement.

 

“Additional Notes”
means additional Notes (other than the Initial Notes and other than Exchange
Notes issued for such Initial Notes) issued from time to time under this Indenture
in accordance with Sections 2.01 and 4.09 hereof.

 

“Affiliate” of any specified Person means any
other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.  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 direction of the management or

 

 

policies of such Person,
whether through the ownership of voting securities, by agreement or
otherwise.  No Person (other than the
Issuer or any Subsidiary of the Issuer) in whom a Receivables Subsidiary makes
an Investment in connection with a Qualified Receivables Transaction will be
deemed to be an Affiliate of the Issuer or any of its Subsidiaries solely by
reason of such Investment.

 

“Agent” means any Registrar or Paying Agent.

 

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

 

(1)           1.0% of the principal amount of such Note; and

 

(2)           the excess, if any, of (a) the present value at
such Redemption Date of (i) the redemption price of such Note at December 15,
2013 (such redemption price being set forth in Section 3.07 hereof), plus (ii) all
required interest payments due on such Note through December 15, 2013
(excluding accrued but unpaid interest to the Redemption Date), computed using
a discount rate equal to the Treasury Rate as of such Redemption Date plus 50
basis points; over (b) the principal amount of such Note.

 

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

 

“Asset Sale” means:

 

(1)           the sale, conveyance, transfer or other disposition,
whether in a single transaction or a series of related transactions, of
property or assets (including by way of a Sale and Lease-Back Transaction) of
the Issuer or any of the Restricted Subsidiaries (each referred to in this definition
as a “disposition”); or

 

(2)           the issuance or sale of Equity Interests of any
Restricted Subsidiary, whether in a single transaction or a series of related
transactions (other than Preferred Stock of Restricted Subsidiaries issued in
compliance with Section 4.09 hereof);

 

in each case, other than:

 

(a)           any disposition of Cash Equivalents or obsolete or
worn out equipment in the ordinary course of business or any disposition of
inventory or goods (or other assets) held for sale in the ordinary course of
business;

 

(b)           the disposition of all or substantially all of the
assets of the Issuer in a manner permitted pursuant to the provisions described
under Section 5.01 hereof or any disposition that constitutes a Change of
Control pursuant to this Indenture;

 

(c)           the making of any Restricted Payment that is
permitted to be made, and is made, under Section 4.07 hereof or the making
of a Permitted Investment;

 

2

 

(d)           any disposition of assets or issuance or sale of
Equity Interests of any Restricted Subsidiary in any transaction or series of
related transactions with an aggregate fair market value of less than
$2.5 million;

 

(e)           any disposition of property or assets or issuance of
securities by a Restricted Subsidiary of the Issuer to the Issuer or by the
Issuer or a Restricted Subsidiary of the Issuer to another Restricted
Subsidiary of the Issuer;

 

(f)            to the extent allowable under Section 1031 of
the Internal Revenue Code of 1986, any exchange of like property (excluding any
boot thereon) for use in a Similar Business;

 

(g)           the lease, assignment or sublease of any real or
personal property in the ordinary course of business;

 

(h)           foreclosures on assets;

 

(i)            any financing transaction with respect to property
built or acquired by the Issuer or any Restricted Subsidiary after the Issue
Date, including Sale and Lease-Back Transactions permitted by this Indenture;

 

(j)            licenses of intellectual property in the ordinary
course of business;

 

(k)           sales of accounts receivable and related assets of
the type specified in the definition of “Qualified Receivables Transaction” to
a Receivables Subsidiary;

 

(l)            the surrender or waiver of contract rights or the
settlement, release or surrender of contract, tort or other claims of any kind;
and

 

(m)          sales of accounts receivable and related assets by a
Foreign Subsidiary pursuant to customary terms whereby recourse and exposure in
respect thereof to any Foreign Subsidiary does not exceed at any time
$10.0 million.

 

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

 

“Broker-Dealer” means a broker or a dealer within
the meaning of the Exchange Act.

 

“Board of Directors” means:

 

(1)           with respect to a corporation, the board of
directors of the corporation;

 

(2)           with respect to a partnership, the board of
directors of the general partner of the partnership;

 

(3)           with respect to a limited liability company, the
managing member or members or any controlling committee of managing members
thereof; and

 

(4)           with respect to any other Person, the board or
committee of such Person serving a similar function.

 

3

 

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

 

“Capital Stock”
means:

 

(1)           in the case of a corporation, corporate stock;

 

(2)           in the case of an association or business entity,
any and all shares, interests, participations, rights or other equivalents
(however designated) of corporate stock;

 

(3)           in the case of a partnership or limited liability
company, partnership or membership interests (whether general or limited); and

 

(4)           any other interest or participation that confers on
a Person the right to receive a share of the profits and losses of, or distributions
of assets of, the issuing Person.

 

“Capitalized
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 and reflected as a liability on a
balance sheet (excluding the footnotes thereto) in accordance with GAAP.

 

“Cash Equivalents” means:

 

(1)           United States dollars;

 

(2)           (a) euro, or any national currency of any
participating member of the EMU; or

 

(b)           in the case of any Foreign Subsidiary that is a
Restricted Subsidiary, such local currencies held by them from time to time in
the ordinary course of business;

 

(3)           securities issued or directly and fully and
unconditionally guaranteed or insured by the U.S. government or any agency or
instrumentality thereof the securities of which are unconditionally guaranteed
as a full faith and credit obligation of such government with maturities of
12 months or less from the date of acquisition;

 

(4)           certificates of deposit, time deposits 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 having capital
and surplus of not less than $500.0 million in the case of U.S. banks or
$250.0 million in the case of non-U.S. banks;

 

(5)           repurchase obligations for underlying securities of
the types described in clauses (3) and (4) entered into with any
financial institution meeting the qualifications specified in clause (4) above;

 

(6)           commercial paper rated at least P-1 by Moody’s or at
least A-1 by S&P and in each case maturing within 12 months after the
date of creation thereof;

 

4

 

(7)           marketable short-term money market and similar
securities having a rating of at least P-2 or A-2 from either Moody’s or
S&P, respectively and in each case maturing within 24 months after the
date of creation thereof;

 

(8)           investment funds investing 95% of their assets in
securities of the types described in clauses (1) through (7) above;

 

(9)           readily marketable direct obligations issued by any
state, commonwealth or territory of the United States or any political
subdivision or taxing authority thereof having an Investment Grade Rating from
either Moody’s or S&P with maturities of 12 months or less from the
date of acquisition;

 

(10)         Indebtedness or Preferred Stock issued by Persons
with a rating of “A” or higher from S&P or “A2” or higher from Moody’s with
maturities of 12 months or less from the date of acquisition; and

 

(11)         Investments with average maturities of
12 months or less from the date of acquisition in money market funds rated
AAA- (or the equivalent thereof) or better by S&P or Aaa3 (or the
equivalent thereof) or better by Moody’s.

 

Notwithstanding the foregoing, Cash Equivalents
shall include amounts denominated in currencies other than those set forth in
clauses (1) and (2) above, provided that such
amounts are converted into any currency listed in clauses (1) and (2) as
promptly as practicable and in any event within ten Business Days following the
receipt of such amounts.

 

“Cash
Management Bank” means any First Lien Lender or an affiliate of a
First Lien Lender (together with its successors and assigns) providing Cash
Management Services to the Issuer or any Guarantor.

 

“Cash
Management Obligations” means all obligations owing by the Issuer or
any Guarantor to any Cash Management Bank in respect of any Cash Management
Services (including, without limitation, indemnities, fees and interest thereon
and all interest and fees that accrue on or after the commencement of any
Insolvency or Liquidation Proceeding at the rate provided for in the respective
documents governing the Cash Management Services, whether or not a claim for
post-petition interest or fees is allowed or allowable in any such Insolvency
or Liquidation Proceeding), now existing or hereafter incurred under, arising
out of or in connection with such Cash Management Services, and the due performance
and compliance by the Issuer or such Guarantor with the terms, conditions and
agreements of such Cash Management Services.

 

“Cash
Management Services” means treasury, depository, bank product and/or
cash management services or any automated clearing house transfer services.

 

“Change
of Control” means the occurrence of any of the following:

 

(1)           the sale, lease or transfer, in one or a series of
related transactions, of all or substantially all of the assets of the Issuer
and its Subsidiaries, taken as a whole, to any Person other than a Principal; provided that the consummation of a sale of a Designated
Business in accordance with the requirements set forth under Section 4.10
hereof will not constitute a sale of all or substantially all of assets of the
Issuer and its Subsidiaries, taken as a whole, for purposes of

 

5

 

this clause (1); provided,
further, that after giving pro forma
effect to such sale (including the application of the net proceeds therefrom)
the Consolidated Leverage Ratio of the Issuer would be no greater than 3.75 to
1.00;

 

(2)           any Person or group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act, or any successor provision),
including any group acting for the purpose of acquiring, holding or disposing
of securities (within the meaning of Rule 13d-5(b)(1) under the
Exchange Act), other than the Principals or a Permitted Group, is or becomes,
in a single transaction or in a related series of transactions, the beneficial
owner (within the meaning of Rule 13d-3 under the Exchange Act, or any
successor provision), directly or indirectly, of 50% or more of the total
voting power of the Voting Stock of the Issuer; or

 

(3)           the adoption by the stockholders of the Issuer of a
plan or proposal for the liquidation or dissolution of the Issuer.

 

Notwithstanding the foregoing, (i) any dividend
or other distribution of any Voting Stock of the Issuer by any Principal to the
direct or indirect equity holders and other investors of such Principal (or
further dividend or other distribution by such equity holders and other
investors to their respective direct or indirect equity holders and other
investors), in accordance with the terms of the documents (of such Principal or
such direct or indirect equity holders and other investors of such Principal)
governing such equity or other investments or as otherwise agreed by such
equity holders and other investors, shall not constitute a Change of Control,
and (ii) the existence from time to time of any “group” (as that term is
used in Section 13(d) of the Exchange Act) comprised of any such
equity holders and other investors shall not constitute a Change of Control.

 

“Clearstream” means Clearstream
Banking, Société Anonyme and its successors.

 

“Collateral”
means all of the property and assets, in each case, that are held by the Issuer
or any of the Guarantors, to the extent that such assets secure the First Lien
Obligations and to the extent that a second-priority security interest is able
to be granted or perfected therein, in each case, other than Excluded Assets.

 

“Consolidated
Depreciation and Amortization Expense” means with respect to any Person
for any period, the total amount of depreciation and amortization expense,
including the amortization of deferred financing fees of such Person and its
Restricted Subsidiaries for such period on a consolidated basis and otherwise
determined in accordance with GAAP.

 

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

 

(1)           consolidated interest expense of such Person and its
Restricted Subsidiaries for such period, to the extent such expense was
deducted (and not added back) in computing Consolidated Net Income including (a) amortization
of original issue discount resulting from the issuance of Indebtedness at less
than par, (b) all commissions, discounts and other fees and charges owed
with respect to letters of credit or bankers acceptances, (c) non-cash
interest payments (but excluding any non-cash interest expense attributable to
the movement in the mark to market valuation of Hedging Obligations or other
derivative instruments pursuant to GAAP), (d) the interest component of
Capitalized Lease Obligations, and (e) net payments, if any, pursuant to interest
rate Hedging Obligations with respect to Indebtedness, and excluding

 

6

 

(x) amortization or
one-time write-off of deferred financing fees, debt issuance costs,
commissions, fees and expenses, (y) any expensing or write-off of
commitment and other financing fees and (z) the recording of a debt
modification at fair value; plus

 

(2)           consolidated capitalized interest of such Person and
its Restricted Subsidiaries for such period, whether paid or accrued; less

 

(3)           interest income for such period.

 

For purposes of this definition, interest on
a Capitalized Lease Obligation shall be deemed to accrue at an interest rate
reasonably determined by such Person to be the rate of interest implicit in
such Capitalized Lease Obligation in accordance with GAAP.

 

“Consolidated
Leverage Ratio” means the ratio of (1) the aggregate principal
amount of Indebtedness (and without duplication the aggregate “net investment”
outstanding under any Qualified Receivables Transaction) to (2) EBITDA for
the most recently ended four fiscal quarters for which financial statements are
available immediately preceding the date of determination, with such pro forma
adjustments to EBITDA as would be required under the second paragraph of the
definition of “Fixed Charge Coverage Ratio” in performing a calculation
thereof.

 

“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, and
otherwise determined in accordance with GAAP; provided, however,
that, without duplication,

 

(1)           any after-tax effect of extraordinary gains or
losses (less all fees and expenses relating thereto) or expenses, severance,
relocation costs and curtailments or modifications to pension and
post-retirement employee benefit plans shall be excluded,

 

(2)           the cumulative effect of a change in accounting
principles during such period shall be excluded,

 

(3)           any after-tax effect of income (loss) from
discontinued operations and any net after-tax gains or losses on disposal of
disposed, abandoned or discontinued operations shall be excluded,

 

(4)           any after-tax effect of gains or losses (less all
fees and expenses relating thereto) attributable to asset dispositions other
than in the ordinary course of business, as determined in good faith by the
Issuer, shall be excluded,

 

(5)           the Net Income for such period of any Person that is
not a Subsidiary, or is an Unrestricted Subsidiary, or that is accounted for by
the equity method of accounting, shall be excluded; provided that Consolidated Net Income of the Issuer shall include
the amount of dividends or distributions or other payments that are actually
paid in cash (or to the extent converted into cash) to the referent Person or a
Restricted Subsidiary thereof in respect of such period by such Person and
shall exclude the amount of any losses that have been funded with cash from the
Issuer or a Restricted Subsidiary during such period,

 

7

 

(6)           the Net Income (but not loss) for such period of any
Restricted Subsidiary (other than any Guarantor) shall be excluded if the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of its Net Income is not at the date of determination wholly
permitted without any prior governmental approval (which has not been obtained)
or, directly or indirectly, by the 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 or similar distributions
has been legally waived; provided
that Consolidated Net Income of the Issuer shall include the amount of
dividends or other distributions or other payments actually paid in cash (or to
the extent converted into cash) to the Issuer or a Restricted Subsidiary
thereof in respect of such period, to the extent not already included therein,

 

(7)           effects of adjustments (including the effects of
such adjustments pushed down to the Issuer and its Restricted Subsidiaries) in
the property and equipment and other intangible assets, deferred revenue and
debt line items in such Person’s consolidated financial statements pursuant to
GAAP resulting from the application of purchase accounting in relation to any
consummated acquisition or the amortization or write-off of any amounts
thereof, net of taxes, shall be excluded,

 

(8)           any impairment charge or asset write-off, in each
case, pursuant to GAAP and the amortization of intangibles arising pursuant to
GAAP shall be excluded,

 

(9)           any after tax effect of income (loss) from the early
extinguishment of Indebtedness shall be excluded,

 

(10)         any non-cash compensation expense recorded from
grants of stock appreciation or similar rights, stock options, restricted stock
or other rights shall be excluded, and

 

(11)         the effects of any premium or discount arising from
the recording of a debt modification at fair value in accordance with GAAP
shall be excluded.

 

Notwithstanding the foregoing, for the purpose of Section 4.07
hereof only (other than clause (3)(d) of Section 4.07(a) hereof),
there shall be excluded from Consolidated Net Income any income arising from
any sale or other disposition of Restricted Investments made by the Issuer and
its Restricted Subsidiaries, any repurchases and redemptions of Restricted
Investments from the Issuer and its Restricted Subsidiaries, any repayments of
loans and advances which constitute Restricted Investments by the Issuer or any
of its Restricted Subsidiaries, any sale of the stock of an Unrestricted
Subsidiary or any distribution or dividend from an Unrestricted Subsidiary, in
each case only to the extent such amounts increase the amount of Restricted
Payments permitted under clause (3)(d) of Section 4.07(a) hereof.

 

“Consolidated
Secured Debt Ratio” means the ratio of (1) the aggregate
principal amount of Secured Indebtedness (and without duplication the aggregate
“net investment” outstanding under any Qualified Receivables Transaction) to (2) EBITDA
for the most recently ended four fiscal quarters for which financial statements
are available immediately preceding the date of determination, with such pro
forma adjustments to EBITDA as would be required under the second paragraph of
the definition of “Fixed Charge Coverage Ratio” in performing a calculation
thereof.

 

“Contingent
Obligations” means, with respect to any Person, any obligation of
such Person guaranteeing any leases, dividends or other obligations that do not
constitute Indebtedness 

 

8

 

(“primary obligations”) of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, including, without limitation, any obligation
of such Person, whether or not contingent,

 

(1)           to purchase any such primary obligation or any
property constituting direct or indirect security therefor,

 

(2)           to advance or supply funds

 

(a)           for the purchase or payment of any such primary
obligation, or

 

(b)           to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, or

 

(3)           to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation against loss in respect thereof.

 

“Corporate Trust Office of the Trustee” shall
be at the address of the Trustee specified in Section 13.02 hereof or such
other address as to which the Trustee may give notice to the Holders and the Issuer.

 

“Credit
Facilities” means, with respect to the Issuer or any of its
Restricted Subsidiaries, one or more debt facilities, including the Senior
Credit Facility, or other financing arrangements (including, without
limitation, commercial paper facilities or indentures) providing for revolving
credit loans, term loans, letters of credit, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or other long-term
indebtedness, including any notes, mortgages, guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any
amendments, supplements, modifications, extensions, renewals, restatements or
refundings thereof and any indentures or credit facilities or commercial paper
facilities that replace, refund or refinance any part of the loans, notes,
other credit facilities or commitments thereunder, including any such
replacement, refunding or refinancing facility or indenture that increases the
amount permitted to be borrowed thereunder or alters the maturity thereof (provided that such increase in
borrowings is permitted under Section 4.09 hereof) or adds Restricted
Subsidiaries as additional borrowers or guarantors thereunder and whether by
the same or any other agent, lender or group of lenders.

 

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

 

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

 

“Definitive Note” means a certificated Note
registered in the name of the Holder thereof and issued in accordance with Section 2.06(c) hereof,
substantially in the form of Exhibit A hereto, except that such
Note shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means, with respect to the Notes
issuable or issued in whole or in part in global form, the Person specified in Section 2.03
hereof as the Depositary with respect to the Notes, and 

 

9

 

any and all successors
thereto appointed as Depositary hereunder and having become such pursuant to
the applicable provision of this Indenture.

 

“Designated
Business” means any or all of the businesses, operations and assets
of the Issuer (including all assets used in or reasonably related to the
Designated Business) identified by the Issuer as the “Designated Business” in
an Officer’s Certificate (the “Designated Business Officer’s Certificate”) that
collectively represent less than (a) 33% of EBITDA of the Issuer for the
most recently ended four fiscal quarters for which financial statements are
available immediately preceding the date of declaration of a sale of a
Designated Business, determined on a pro
forma basis for both the Issuer and the Designated Business with the
pro forma adjustments thereto
that would be applicable under the second paragraph of the definition of “Fixed
Charge Coverage Ratio” in performing a calculation thereof, and (b) 33% of
the Total Assets of the Issuer as of the end of the most recent fiscal quarter
for which financial statements are available immediately preceding the date on
which a sale of a Designated Business is consummated, determined on a pro forma basis as if any acquisitions,
mergers, consolidations, dispositions and/or designations of Unrestricted
Subsidiaries occurring subsequent to the end of such fiscal quarter and prior
to the date on which the sale of such Designated Business had
been consummated, as of the end of such fiscal quarter; provided, however,
that at the time of a sale of a Designated Business, such Designated Business
may include Cash Equivalents reasonably required to operate such business in
the ordinary course, as determined in good faith by the Issuer (which
determination shall be conclusive), or such other cash as may represent the
proceeds of a financing that is solely recourse to the Designated Business and
entered into in connection with the sale of a Designated Business; provided
further that the Issuer may only provide one Designated Business Officer’s
Certificate.

 

“Designated
Non-cash Consideration” means the fair market value of non-cash
consideration received by the Issuer or a Restricted Subsidiary in connection
with an Asset Sale that is so designated as Designated Non-cash Consideration
pursuant to an Officers’ Certificate, setting forth the basis of such
valuation, executed by an executive vice president and the principal financial
officer of the Issuer, less the amount of cash or Cash Equivalents received in
connection with a subsequent sale of such Designated Non-cash Consideration.

 

“Discharge
of First Lien Obligations” means, subject to any reinstatement of
First Lien Obligations in accordance with the Intercreditor Agreement, (a) payment
in full in cash of the principal of and interest (including interest accruing
on or after the commencement of any Insolvency or Liquidation Proceeding at the
rate provided for in the respective First Lien Document, whether or not such
interest would be allowed in any such Insolvency or Liquidation Proceeding) and
premium, if any, on all Indebtedness under the First Lien Documents and termination
of all commitments of the First Lien Lenders to lend or otherwise extend credit
under the First Lien Documents, (b) payment in full in cash of all other
First Lien Obligations (including letter of credit reimbursement obligations)
that are due and payable or otherwise accrued and owing at or prior to the time
such principal, interest, and premium are paid (other than Cash Management
Obligations and Secured Hedge Obligations so long as arrangements satisfactory
to the applicable Cash Management Bank or Hedge Bank shall have been made), and
(c) termination or cash collateralization (in an amount and manner, and on
terms, reasonably satisfactory to the First Lien Agent) of all letters of
credit issued under the First Lien Credit Documents.

 

“Disqualified
Stock” means, with respect to any Person, any Capital Stock of such
Person which, by its terms, or by the terms of any security into which it is
convertible or for which it is putable or exchangeable, or upon the happening
of any event, matures or is mandatorily redeemable (other than solely as a
result of a change of control or asset sale) pursuant to a sinking fund
obligation or otherwise,

 

10

 

or is redeemable at the
option of the holder thereof (other than solely as a result of a change of control
or asset sale), in whole or in part, in each case prior to the date
91 days after the earlier of the maturity date of the Notes or the date
the Notes are no longer outstanding; provided,
however, that if such
Capital Stock is issued to any plan for the benefit of employees of the Issuer
or its Subsidiaries or by any such plan to such employees, such Capital Stock
shall not constitute Disqualified Stock solely because it may be required to be
repurchased by the Issuer or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations.

 

“EBITDA” means, with respect to any Person for any period,
the Consolidated Net Income of such Person for such period

 

(1)           increased (without duplication) by:

 

(a)           provision for taxes based on income or profits or
capital gains, including, without limitation, state, franchise and similar
taxes and foreign withholding taxes of such Person paid or accrued during such
period deducted (and not added back) in computing Consolidated Net Income; plus

 

(b)           Fixed Charges of such Person for such period
(including (x) net losses on Hedging Obligations or other derivative
instruments entered into for the purpose of hedging interest rate risk and (y) costs
of surety bonds in connection with financing activities) to the extent the same
was deducted (and not added back) in calculating such Consolidated Net Income; plus

 

(c)           Consolidated Depreciation and Amortization Expense
of such Person for such period to the extent the same were deducted (and not
added back) in computing Consolidated Net Income; plus

 

(d)           any expenses or charges (other than depreciation or
amortization expense) related to any Equity Offering, Investment, acquisition,
disposition, recapitalization or the incurrence of Indebtedness permitted to be
incurred by this Indenture (including a refinancing thereof) (whether or not
successful), including (i) such fees, expenses or charges related to the
offering of the Notes and the Credit Facilities and (ii) any amendment or
other modification of any debt instrument, and, in each case, deducted (and not
added back) in computing Consolidated Net Income; plus

 

(e)           the amount of any restructuring charge or reserve deducted
(and not added back) in such period in computing Consolidated Net Income,
including any one-time costs incurred in connection with acquisitions after the
Issue Date and costs related to the closure and/or consolidation of facilities;
plus

 

(f)            any other non-cash charges, including any write-offs
or write-downs, reducing Consolidated Net Income for such period (provided that if any such
non-cash charges represent an accrual or reserve for potential cash items in
any future period, the cash payment in respect thereof in such future period
shall be subtracted from EBITDA to such extent, and excluding amortization of a
prepaid cash item that was paid in a prior period); plus

 

(g)           any costs or expense reducing Consolidated Net
Income for such period incurred by the Issuer or a Restricted Subsidiary
pursuant to any management equity plan or stock option plan or any other management
or employee benefit plan or agreement or any stock subscription or 

 

11

 

shareholder agreement, to
the extent that such cost or expenses are funded with cash proceeds contributed
to the capital of the Issuer or net cash proceeds of an issuance of Equity
Interest of the Issuer (other than Disqualified Stock) solely to the extent that
such net cash proceeds are excluded from the calculation set forth in
clause (3) of Section 4.07(a) hereof;
plus

 

(h)           the amount of any non-controlling interest expense
reducing Consolidated Net Income for such period; plus

 

(i)            the amount of loss on sale of receivables and
related assets to the Receivables Subsidiary in connection with a Qualified
Receivables Transaction reducing Consolidated Net Income for such period;

 

(2)           decreased by (without duplication) non-cash gains
increasing Consolidated Net Income of such Person for such period, excluding
any non-cash gains to the extent they represent the reversal of an accrual or reserve
for a potential cash item that reduced EBITDA in any prior period, and

 

(3)           increased or decreased by (without duplication):

 

(a)           any net gain or loss resulting in such period from
Hedging Obligations and the application of Statement of Financial Accounting
Standards No.  133; plus or minus, as applicable,

 

(b)           any net gain or loss resulting in such period from
currency translation gains or losses related to currency remeasurements of
Indebtedness (including any net loss or gain resulting from Hedging Obligations
for currency exchange risk).

 

“EMU”
means the economic and monetary union as contemplated in the Treaty on European
Union.

 

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

 

“Equity Offering” means any public or private sale of common
stock or Preferred Stock of the Issuer or any of its direct or indirect parent
companies (excluding Disqualified Stock), other than:

 

(1)           public offerings with respect to the Issuer’s or any
direct or indirect parent company’s common stock registered on Form S-8;
and

 

(2)           issuances to any Subsidiary of the Issuer.

 

“euro” means the single currency of
participating member states of the EMU.

 

“Euroclear” means Euroclear S.A./N.V., as
operator of the Euroclear system.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the SEC
promulgated thereunder.

 

“Exchange Notes” means the Notes issued in
the Registered Exchange Offer pursuant to Section 2.06(f) hereof.

 

12

 

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

 

“Excluded Assets” means (a) any
asset, including, without limitation, accounts receivable and proceeds of
inventory, of any kind, to the extent that (i) such asset is sold (or
intended to be sold) to the Receivables Subsidiary pursuant to a Qualified
Receivables Transaction and (ii) such sale or intended sale is permitted
by the Senior Credit Facility, (b) any asset acquired, constructed or
improved pursuant to a capital lease or purchase money indebtedness permitted
by the Senior Credit Facility and which does not secure First Lien Obligations,
(c) certain excluded contracts, in each case as set forth in the Security
Documents, (d) leased real property, (e) owned real property that is
not subject to a mortgage to secure First Lien Obligations and (f) any
other asset that does not secure First Lien Obligations.

 

“fair
market value” means, with respect to any asset or liability, the
fair market value of such asset or liability as determined by the Issuer in
good faith; provided
that if the fair market value is equal to or exceeds $25.0 million, such
determination shall be made by the Board of Directors of the Issuer.

 

“First Lien Agent” means the administrative
agent and the collateral agent under the Senior Credit Facility.

 

“First
Lien Credit Documents”
means the Senior Credit Facility, the other Loan Documents (as defined in the
Senior Credit Facility), and each of the other agreements, documents, and instruments
providing for or evidencing any other First Lien Obligation and any other
document or instrument executed or delivered at any time in connection with any
First Lien Obligation (including any intercreditor or joinder agreement among
holders of First Lien Obligations but excluding Secured Hedge Agreements and
the documents governing the Cash Management Obligations), to the extent such
are effective at the relevant time, as each may be amended, modified, restated,
supplemented, replaced or refinanced from time to time.

 

“First
Lien Documents” means the First Lien Credit Documents, the Secured
Hedge Agreements, and any and all documents governing the Cash Management
Obligations.

 

“First
Lien Lenders” means the “Lenders” from time to time party to, and as
defined in, the Senior Credit Facility, together with their respective
successors and assigns; provided that the term “First
Lien Lender” shall in any event also include each letter of credit issuer and
swingline lender under the Senior Credit Facility, including, without
limitation, the “Issuing Bank,” the “Swingline Lender” and any “Agent” under
(and each as defined in) the Senior Credit Facility.

 

“First
Lien Obligations” means (i) all Obligations under (and as
defined in) the Senior Credit Facility of the Issuer and the Guarantors, under
any other document relating to the Senior Credit Facility and any other Credit
Facilities incurred under Section 4.09(b)(1) hereof, (ii) all
Secured Hedging Obligations and (iii) all Cash Management Obligations; provided  that the aggregate
principal amount of, without duplication, revolving credit loans, letters of
credit, term loans, other loans, notes or similar instruments (excluding, in
any event, Cash Management Obligations and Secured Hedging Obligations) provided
for under the Senior Credit Facility or any other document relating to the
Senior Credit Facility (or any refinancing thereof) in excess of the amount permitted
under Section 4.09(b)(1) hereof and any interest relating to such
excess amount, shall not constitute First Lien Obligations for purposes of this
Indenture.  “First Lien Obligations”
shall in any event include: (a) all interest accrued or accruing, or which
would accrue, absent commencement of an Insolvency or Liquidation Proceeding
(and the effect of 

 

13

 

provisions such as Section 502(b)(2) of
the United States Bankruptcy Code), on or after the commencement of an
Insolvency or Liquidation Proceeding in accordance with the rate specified in
the relevant First Lien Document, whether or not the claim for such interest is
allowed or allowable as a claim in such Insolvency or Liquidation Proceeding, (b) any
and all fees and expenses (including attorneys’ and/or financial consultants’
fees and expenses) incurred by the First Lien Agent and the First Lien Secured
Parties on or after the commencement of an Insolvency or Liquidation
Proceeding, whether or not the claim for fees and expenses is allowed or
allowable under Section 502 or 506(b) of the United States Bankruptcy
Code or any other provision of the United States Bankruptcy Code or any similar
federal, state or foreign law for the relief of debtors as a claim in such
Insolvency or Liquidation Proceeding, and (c) all obligations and liabilities
of the Issuer and each Guarantor under each First Lien Document to which it is
a party which, but for the automatic stay under Section 362(a) of the
United States Bankruptcy Code, would become due and payable.

 

“First
Lien Secured Parties” has the meaning given to the term “First-Lien
Creditors” in the Intercreditor Agreement.

 

“First
Priority Liens” means all Liens that secure the First Lien
Obligations.

 

“Fixed
Charge Coverage Ratio” means, with respect to any specified Person
for any period, the ratio of EBITDA of such Person and its Restricted
Subsidiaries for such period to the Fixed Charges of such Person and its
Restricted Subsidiaries for such period. 
In the event that the specified Person or any of its Restricted Subsidiaries
incurs, repays, repurchases, redeems, defeases or otherwise retires or
discharges or reprices the cost of any Indebtedness (other than ordinary course
working capital and revolving credit borrowings) or issues, repurchases or redeems
Preferred Stock subsequent to the commencement of the period for which the
Fixed Charge Coverage Ratio is being calculated and on or prior to the date on
which the event for which the calculation of the Fixed Charge Coverage Ratio is
made (the “Calculation Date”),
then the Fixed Charge Coverage Ratio shall be calculated giving pro forma effect
to such incurrence, repayment, repurchase, redemption, defeasance or other
retirement or discharge or repricing of Indebtedness, or such issuance,
repurchase or redemption of Preferred Stock, and the use of the proceeds
therefrom as if the same had occurred at the beginning of the applicable
four-quarter reference period.

 

In addition, for purposes of calculating the Fixed
Charge Coverage Ratio:

 

(1)           acquisitions of a business or operations (and
ownership interests therein) or an Investment in a business or operations that
have been made by the specified Person or any of its Restricted Subsidiaries,
including through mergers or consolidations and including any related financing
transactions, during the four-quarter reference period or subsequent to such
reference period and on or prior to the Calculation Date shall be given pro
forma effect as if they had occurred on the first day of the four-quarter
reference period and EBITDA for such reference period shall be calculated on a
pro forma basis determined in good faith by a responsible financial or accounting
officer of the Issuer and shall comply with Regulation S-X, except that
the pro forma calculations may also include reasonably identifiable and factually
supportable operating expense reductions for which the steps necessary for
realization have been taken or are reasonably expected to be completed within
12 months of the transaction and are set forth in an Officer’s Certificate;

 

(2)           the EBITDA attributable to operations or businesses
(and ownership interests therein) disposed of on or prior to the Calculation
Date shall be excluded;

 

14

 

(3)           the Fixed Charges attributable to operations or
businesses (and ownership interests therein) disposed of on or prior to the
Calculation Date, shall be excluded, but only to the extent that the obligations
giving rise to such Fixed Charges shall not be obligations of the specified
Person or any of its Restricted Subsidiaries following the Calculation Date;

 

(4)           any Person that is a Restricted Subsidiary on the
Calculation Date shall be deemed to have been a Restricted Subsidiary at all
times during such four-quarter period;

 

(5)           any Person that is not a Restricted Subsidiary on
the Calculation Date shall be deemed not to have been a Restricted Subsidiary
at any time during such four-quarter period; and

 

(6)           if any Indebtedness (other than ordinary course
working capital and revolving credit borrowings) bears a floating rate of
interest and is being given pro forma effect, the interest expense on such
Indebtedness will be calculated as if the rate in effect on the Calculation
Date had been the applicable rate for the entire period (taking into account
any Hedging Obligation applicable to such Indebtedness).  Interest on a Capitalized Lease Obligation
shall be deemed to accrue at an interest rate reasonably determined by a
responsible financial or accounting officer of the Issuer to be the rate of
interest implicit in such Capitalized Lease Obligation in accordance with
GAAP.  For purposes of making the
computation referred to above, interest on any Indebtedness under a revolving
credit facility computed on a pro forma basis shall be computed based upon the
average daily balance of such Indebtedness during the applicable period except
as set forth in the first paragraph of this definition.  Interest on Indebtedness that may optionally
be determined at an interest rate based upon a factor of a prime or similar
rate, a eurocurrency interbank offered rate, 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 Issuer may designate.

 

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

 

(1)           Consolidated Interest Expense of such Person for
such period;

 

(2)           all cash dividends or other distributions paid
(excluding items eliminated in consolidation) on any series of Preferred Stock
during such period; and

 

(3)           all cash dividends or other distributions paid
(excluding items eliminated in consolidation) on any series of Disqualified
Stock during such period.

 

“Foreign
Subsidiary” means, with respect to any Person, any Restricted
Subsidiary of such Person that is not organized or existing under the laws of
the United States, any state thereof or the District of Columbia and any
Restricted Subsidiary of such Foreign Subsidiary.

 

“GAAP” means generally accepted accounting
principles in the United States which are in effect on the Issue Date.  At any time after the Issue Date, the Issuer
may elect to apply IFRS accounting principles in lieu of GAAP and, upon any
such election, references herein to GAAP shall thereafter be construed to mean
IFRS (except as otherwise provided in this Indenture); provided that any
such election, once made, shall be irrevocable; provided, further
that any calculation or determination in this Indenture that requires the
application of GAAP for periods that include fiscal quarters ended prior to the
Issuer’s election to apply IFRS shall remain as previously calculated or
determined in accordance with 

 

15

 

GAAP.  The Issuer shall give notice of any such
election made in accordance with this definition to the Trustee and the Holders
of Notes.

 

“Global Note Legend” means the legend set
forth in Section 2.06(g)(ii) hereof,
which is required to be placed on all Global Notes issued under this Indenture.

 

“Global Notes” means, individually and
collectively, each of the Restricted Global Notes and the Unrestricted Global
Notes, substantially in the form of Exhibit A hereto, issued in accordance
with Section 2.01, 2.06(b), 2.06(d) or 2.06(f) hereof.

 

“Government Securities”
means securities that are:

 

(1)           direct obligations of the United States of America
for the timely payment of which its full faith and credit is pledged; or

 

(2)           obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America the
timely payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America,

 

which, in either case, are
not callable or redeemable at the option of the issuers thereof, and shall also
include a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act), as custodian with respect to any such Government
Securities or a specific payment of principal of or interest on any such
Government Securities held by such custodian for the account of the holder of
such depository receipt; provided
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the Government Securities or
the specific payment of principal of or interest on the Government Securities
evidenced by such depository receipt.

 

“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 Indebtedness or other obligations and, when
used as a verb, shall have a corresponding meaning.

 

“Guarantee” means the guarantee by any
Guarantor of the Issuer’s Obligations under this Indenture and the Notes.

 

“Guarantor”
means each Restricted Subsidiary, other than the Receivables Subsidiary, that
Guarantees the Notes in accordance with the terms of this Indenture.

 

“Heartland”
means Heartland Industrial Partners, L.P., a Delaware limited partnership,
and its successors.

 

“Heartland
Advisory Agreement” means that certain advisory services agreement between
the Issuer and Heartland, as in effect on the date of this Indenture, or any
amendment or supplement thereto that, taken in its entirety, is no less
favorable to the Issuer than such agreement as in effect on the date of this
Indenture.

 

16

 

“Hedge
Bank” means any Person that is a First Lien Lender or an affiliate
of a First Lien Lender at the time it enters into a Secured Hedge Agreement, in
its capacity as a party thereto, and such Person’s successors and assigns.

 

“Hedging Obligations”
means, with respect to any Person, the obligations of such Person under any
interest rate swap agreement, interest rate cap agreement, interest rate collar
agreement, commodity swap agreement, commodity cap agreement, commodity collar
agreement, foreign exchange contract, currency swap agreement or similar
agreement providing for the transfer or mitigation of interest rate or currency
risks either generally or under specific contingencies.

 

“Holder” means the Person in whose name a
Note is registered on the Registrar’s books.

 

“IFRS”
means the International Financial Reporting Standards as adopted by the International
Accounting Standards Board.

 

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

 

(1)           any indebtedness (including principal and premium)
of such Person, whether or not contingent:

 

(a)           in respect of borrowed money;

 

(b)           evidenced by bonds, notes, debentures or
similar instruments or letters of credit or bankers’ acceptances (or, without
duplication, reimbursement agreements in respect thereof);

 

(c)           representing the balance deferred and unpaid
of the purchase price of any property (including Capitalized Lease
Obligations), except (i) any such balance that constitutes a trade payable
or similar obligation to a trade creditor, in each case accrued in the ordinary
course of business that are not overdue by 90 days or more or are being contested
in good faith and (ii) any earn-out obligations until such obligation
becomes a liability on the balance sheet of such Person in accordance with
GAAP; or

 

(d)           representing any Hedging Obligations;

 

if
and to the extent that any of the foregoing Indebtedness (other than letters of
credit and Hedging Obligations) would appear as a liability upon a balance
sheet (excluding the footnotes thereto) of such Person prepared in accordance
with GAAP;

 

(2)           to the extent not otherwise included, any obligation
by such Person to be liable for, or to pay, as obligor, guarantor or otherwise,
on the obligations of the type referred to in clause (1) of a third
Person (whether or not such items would appear upon the balance sheet of such
obligor or guarantor), other than by endorsement of negotiable instruments for
collection in the ordinary course of business; and

 

(3)           to the extent not otherwise included, the
obligations of the type referred to in clause (1) of a third Person
secured by a Lien on any asset owned by such first Person, whether or not such
Indebtedness is assumed by such first Person;

 

17

 

provided, however, that notwithstanding the
foregoing, Indebtedness shall be deemed not to include Contingent Obligations
incurred in the ordinary course of business.

 

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

 

“Independent
Financial Advisor” means an accounting, appraisal, investment
banking firm or consultant to Persons engaged in Similar Businesses of nationally
recognized standing that is, in the good faith judgment of the Issuer,
qualified to perform the task for which it has been engaged.

 

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

 

“Initial Notes” as defined in the recitals
hereto.

 

“Initial
Purchasers” means Credit Suisse Securities (USA) LLC, Banc of
America Securities LLC, J.P.  Morgan
Securities Inc., Jefferies & Company, Inc. and KeyBanc
Capital Markets Inc.

 

“Insolvency
or Liquidation Proceeding” means (a) any voluntary or
involuntary case or proceeding under the United States Bankruptcy Code with
respect to the Issuer or any Guarantor, (b) any other voluntary or
involuntary insolvency, reorganization or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or other similar case or proceeding
with respect to the Issuer or any Guarantor or with respect to a material
portion of its respective assets, (c) any liquidation, dissolution,
reorganization or winding up of the Issuer or any Guarantor, whether voluntary
or involuntary and whether or not involving insolvency or bankruptcy, or (d) any
assignment for the benefit of creditors or any other marshalling of assets and
liabilities of the Issuer or any Guarantor.

 

“Intercreditor
Agreement” means the Intercreditor Agreement dated on or about the Issue
Date among the Second Lien Agent, the First Lien Agent, the Issuer and each
other Guarantor named therein, as such agreement may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Interest Payment Date” means June 15
and December 15 of each year to stated maturity.

 

“Investment
Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by S&P.

 

“Investments” means, with respect to any
Person, all investments by such Person in other Persons (including Affiliates)
in the form of loans (including guarantees), advances or capital contributions
(excluding accounts receivable, trade credit, advances to customers, commissions,
travel and similar advances to officers and employees, in each case made in the
ordinary course of business), purchases or other acquisitions for consideration
of Indebtedness, Equity Interests or other securities issued by any other
Person and investments that are required by GAAP to be classified on the
balance sheet (excluding the footnotes) of the Issuer in the same manner as the
other investments included in this definition to the extent such transactions
involve the transfer of cash or other property. 
For purposes of the definition of “Unrestricted Subsidiary” and Section 4.07
hereof:

 

(1)           “Investments” shall include the portion
(proportionate to the Issuer’s equity interest in such Subsidiary) of the fair
market value of the net assets of a Subsidiary of the Issuer 

 

18

 

at the time that such
Subsidiary is designated an Unrestricted Subsidiary; provided, however,
that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the
Issuer shall be deemed to continue to have a permanent “Investment” in an
Unrestricted Subsidiary in an amount (if positive) equal to:

 

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

 

(b)           the portion (proportionate
to the Issuer’s Equity Interest in such Subsidiary) of the fair market value of
the net assets of such Subsidiary at the time of such redesignation; and

 

(2)            any property
transferred to or from an Unrestricted Subsidiary shall be valued at its fair
market value at the time of such transfer.

 

“Issue Date” means December 29, 2009.

 

“Issuer” has the meaning given in the
preamble.

 

“Issuer Order” means a written request or
order signed on behalf of the Issuer by any Officer of the Issuer and delivered
to the Trustee.

 

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

 

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

 

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

 

“Lien” means, with respect to any asset, any
mortgage, lien (statutory or otherwise), pledge, hypothecation, charge,
security interest, preference, priority or encumbrance of any kind in respect
of such asset, whether or not filed, recorded or otherwise perfected under
applicable law, including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option or other agreement to
sell or give a security interest in and any filing of or agreement to give any
financing statement under the Uniform Commercial Code (or equivalent statutes)
of any jurisdiction; provided
that in no event shall an operating lease be deemed to constitute a Lien.

 

“Moody’s” means Moody’s Investors Service, Inc.
and any successor to its rating agency business.

 

“Net
Income” means, with respect to any Person, the net income (loss) of
such Person, determined on a consolidated basis in accordance with GAAP
(excluding any non-controlling interests) and before any reduction in respect
of Preferred Stock (other than Disqualified Stock) dividends.

 

19

 

“Net
Proceeds” means the aggregate cash proceeds received by the Issuer
or any of its Restricted Subsidiaries in respect of any Asset Sale, including
any cash received upon the sale or other disposition of any Designated Non-cash
Consideration received in any Asset Sale, net of the direct costs relating to
such Asset Sale and the sale or disposition of any Designated Non-cash
Consideration, including legal, accounting and investment banking fees, and
brokerage and sales commissions, any relocation expenses 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 required to be applied to the repayment of principal, premium, if any,
and interest on Secured Indebtedness required (other than required by
clause (1) of Section 4.10(b) hereof) to be paid as a
result of such transaction and any deduction of appropriate amounts to be
provided by the Issuer or any of the Restricted Subsidiaries as a reserve in
accordance with GAAP against any liabilities associated with the asset disposed
of in such transaction and retained by the Issuer or any of the Restricted
Subsidiaries 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.

 

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

 

“Notes” means the Initial Notes and more
particularly means any Note authenticated and delivered under this
Indenture.  For all purposes of this Indenture,
the term “Notes” shall also include any Additional Notes that may be issued
under a supplemental indenture.  For
purposes of this Indenture, all references to Notes to be issued or
authenticated upon transfer, replacement or exchange shall be deemed to refer
to Notes of the applicable series.

 

“Obligations” in respect of any Indebtedness
means any principal, interest (including any interest accruing subsequent to
the filing of a petition in bankruptcy, reorganization or similar proceeding at
the rate provided for in the documentation with respect thereto, whether or not
such interest is an allowed claim under applicable state, federal or foreign
law), penalties, fees, indemnifications, reimbursements (including
reimbursement obligations with respect to letters of credit and bankers’
acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities, payable under the documentation governing such Indebtedness.

 

“Offering Circular” means the offering
circular, dated December 17, 2009, relating to the sale of the Notes.

 

“Officer” means the Chairman of the Board of
Directors, the Chief Executive Officer, the Chief Financial Officer, the
President, any Executive Vice President, Senior Vice President or Vice President,
the Treasurer or the Secretary of the Issuer.

 

“Officer’s Certificate” means a certificate
signed on behalf of the Issuer by any Officer of the Issuer that meets the
requirements set forth in this Indenture.

 

“Opinion of Counsel” means a written opinion
reasonably acceptable to the Trustee from legal counsel.  The counsel may be an employee of or counsel
to the Issuer or the Trustee.

 

“Other Second Lien Obligations” means other
Indebtedness of the Issuer and its Restricted Subsidiaries that is equally and
ratably secured with the Notes and is designated by the Issuer as an Other
Second Lien Obligation.

 

20

 

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

 

“Permitted
Group” means any group of investors that is deemed to be a “person”
(as that term is used in Section 13(d)(3) of the Exchange Act) by
virtue of the Shareholders Agreement, as the same may be amended, modified or
supplemented from time to time, provided that no single
Person (other than the Principals) beneficially owns (within the meaning of Rule 13d-3
under the Exchange Act, or any successor provision) (together with its Affiliates)
more of the Voting Stock of the Issuer that is beneficially owned (within the
meaning of Rule 13d-3 under the Exchange Act, or any successor provision)
by such group of investors than is then collectively beneficially owned (within
the meaning of Rule 13d-3 under the Exchange Act, or any successor
provision) by the Principals in the aggregate.

 

“Permitted Investments” means:

 

(1)           any Investment in the Issuer
or any of its Restricted Subsidiaries;

 

(2)           any Investment in cash and
Cash Equivalents;

 

(3)           any Investment by the Issuer
or any of its Restricted Subsidiaries in a Person that is engaged in a Similar
Business if as a result of such Investment:

 

(a)           such
Person becomes a Restricted Subsidiary; or

 

(b)           such
Person, in one transaction or a series of related transactions, is merged or
consolidated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Issuer or a Restricted Subsidiary,

 

and,
in each case, any Investment held by such Person; provided, that such
Investment was not acquired by such Person in contemplation of such
acquisition, merger, consolidation or transfer;

 

(4)           any Investment in securities
or other assets not constituting cash or Cash Equivalents and received in
connection with an Asset Sale made pursuant to the provisions of Section 4.10
hereof or any other disposition of assets not constituting an Asset Sale; provided that such
securities or other assets, as well as any Designated Non-cash Consideration,
received in an Asset Sale or an exchange or swap of assets shall be pledged as
Collateral under the Security Documents to the extent the assets subject to
such Asset Sale or exchange or swap of assets constituted Collateral, with the
Lien on such Collateral securing the Notes being of the same priority with respect
to the Notes as the Lien on the assets disposed of;

 

(5)           any Investment existing on
the Issue Date;

 

(6)           any Investment acquired by
the Issuer or any of its Restricted Subsidiaries:

 

(a)           in
exchange for any other Investment or accounts receivable held by the Issuer or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such
other Investment or accounts receivable; or

 

21

 

(b)           as a
result of a foreclosure by the Issuer or any of its Restricted Subsidiaries
with respect to any secured Investment or other transfer of title with respect
to any secured Investment in default;

 

(7)           Hedging Obligations
permitted under clause (10) of Section 4.09(b) hereof;

 

(8)           Investments the payment for
which consists of Equity Interests (exclusive of Disqualified Stock) of the
Issuer, or any of its direct or indirect parent companies; provided, however, that such
Equity Interests shall not increase the amount available for Restricted
Payments under clause (3) of Section 4.07(a) hereof;

 

(9)           guarantees of Indebtedness
permitted under Section 4.09 hereof;

 

(10)         any transaction to the
extent it constitutes an Investment that is permitted and made in accordance
with the provisions of Section 4.11(b) hereof (except transactions
described in clauses (2) and (4) of Section 4.11(b) hereof);

 

(11)         additional Investments
having an aggregate fair market value, taken together with all other
Investments made pursuant to this clause (11) that are at that time outstanding
(without giving effect to the sale of an Unrestricted Subsidiary to the extent
the proceeds of such sale do not consist of cash or marketable securities), not
to exceed the greater of (x) $25.0 million and (y) 3% of Total
Assets (with the fair market value of each Investment being measured at the
time made and without giving effect to subsequent changes in value);

 

(12)         loans and advances to, or
guarantees of Indebtedness of, officers, directors and employees in an amount
not to exceed $5.0 million at any time outstanding;

 

(13)         loans and advances to
officers, directors and employees for business related travel expenses, moving
expenses and other similar expenses, in each case incurred in the ordinary
course of business consistent with past practice;

 

(14)         lease, utility and other
similar deposits in the ordinary course of business; and

 

(15)         the acquisition by a
Receivables Subsidiary in connection with a Qualified Receivables Transaction
of Equity Interests of a trust or other Person established by such Receivables
Subsidiary to effect such Qualified Receivables Transaction; and any other
Investment by the Issuer or a Subsidiary of the Issuer in a Receivables
Subsidiary or any Investment by a Receivables Subsidiary in any other Person in
connection with a Qualified Receivables Transaction.

 

“Permitted Liens” means, with respect to any
Person:

 

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

 

22

 

(2)           Liens imposed by law, such
as carriers’, warehousemen’s and mechanics’ Liens, in each case for sums not
yet overdue for a period of more than 30 days or being contested in good
faith by appropriate proceedings or other Liens arising out of judgments or
awards against such Person with respect to which such Person shall then be
proceeding with an appeal or other proceedings for review if adequate reserves
with respect thereto are maintained on the books of such Person in accordance
with GAAP;

 

(3)           Liens for taxes, assessments
or other governmental charges not yet overdue for a period of more than
30 days or payable or subject to penalties for nonpayment or which are
being contested in good faith by appropriate proceedings diligently conducted,
if adequate reserves with respect thereto are maintained on the books of such
Person in accordance with GAAP;

 

(4)           Liens in favor of issuers of
performance and surety bonds or bid bonds or with respect to other regulatory
requirements or letters of credit issued pursuant to the request of and for the
account of such Person in the ordinary course of its business;

 

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

 

(6)           Liens securing Indebtedness
permitted to be incurred pursuant to clause (4), (12) or (18) of Section 4.09(b) hereof;
provided that such Liens
securing Indebtedness incurred pursuant to clause (4) extend only to
the assets acquired and such Liens securing Indebtedness incurred pursuant to
clauses (12) and (18) extend only to the assets of Foreign Subsidiaries;

 

(7)           Liens existing on the Issue
Date (other than Liens in favor of secured parties under the Senior Credit
Facility);

 

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

 

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

 

(10)         Liens securing Indebtedness
or other obligations of a Restricted Subsidiary owing to the Issuer or a
Guarantor permitted to be incurred in accordance with Section 4.09 hereof;

 

23

 

(11)         Liens securing Hedging
Obligations;

 

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

 

(13)         leases, subleases, licenses
or sublicenses granted to others in the ordinary course of business which do
not materially interfere with the ordinary conduct of the business of the Issuer
or any of its Restricted Subsidiaries and do not secure any Indebtedness;

 

(14)         Liens arising from Uniform
Commercial Code financing statement filings regarding operating leases entered
into by the Issuer and its Restricted Subsidiaries in the ordinary course of
business;

 

(15)         Liens in favor of the Issuer
or any Guarantor;

 

(16)         Liens on equipment of the
Issuer or any of its Restricted Subsidiaries granted in the ordinary course of
business to the Issuer’s clients not related to Indebtedness;

 

(17)         Liens to secure any
refinancing, refunding, extension, renewal or replacement (or successive
refinancing, refunding, extensions, renewals or replacements) as a whole, or in
part, of any Indebtedness secured by any Lien referred to in the foregoing
clauses (7), (8) and (9); provided,
however, that (a) such
new Lien shall be limited to all or part of the same property that secured the
original Lien (plus improvements on such property), and (b) the
Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of (i) the outstanding principal amount or, if
greater, committed amount of the Indebtedness described under clauses (7), (8) and
(9) at the time the original Lien became a Permitted Lien under this
Indenture, and (ii) an amount necessary to pay any fees and expenses,
including premiums, related to such refinancing, refunding, extension, renewal
or replacement;

 

(18)         deposits made in the
ordinary course of business to secure liability to insurance carriers;

 

(19)         other Liens securing
Indebtedness and other obligations incurred in the ordinary course of business
which obligations do not exceed $10.0 million, at any one time outstanding;

 

(20)         Liens securing judgments for
the payment of money not constituting an Event of Default under clause (5) under
Section 6.01 hereof so long as such Liens are adequately bonded and any
appropriate legal proceedings that may have been duly initiated for the review
of such judgment have not been finally terminated or the period within which
such proceedings may be initiated has not expired;

 

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

 

(22)         Liens (i) of a
collection bank arising under Section 4-210 of the Uniform Commercial Code
(or any comparable or successor provision) on items in the course of 

 

24

 

collection, (ii) attaching
to commodity trading accounts or other commodity brokerage accounts incurred in
the ordinary course of business, and (iii) in favor of banking
institutions arising as a matter of law encumbering deposits (including the
right of set-off) and which are within the general parameters customary in the
banking industry;

 

(23)         Liens deemed to exist in
connection with Investments in repurchase agreements permitted under Section 4.09
hereof; provided  that
such Liens do not extend to any assets other than those that are the subject of
such repurchase agreement;

 

(24)         Liens encumbering reasonable
customary initial deposits and margin deposits and similar Liens attaching to
commodity trading accounts or other brokerage accounts incurred in the ordinary
course of business and not for speculative purposes;

 

(25)         Liens that are contractual
rights of set-off (i) relating to the establishment of depository
relations with banks not given in connection with the issuance of Indebtedness,
(ii) relating to pooled deposit or sweep accounts of the Issuer or any of
its Restricted Subsidiaries to permit satisfaction of overdraft or similar
obligations incurred in the ordinary course of business of the Issuer and its
Restricted Subsidiaries or (iii) relating to purchase orders and other
agreements entered into with customers of the Issuer or any of its Restricted
Subsidiaries in the ordinary course of business;

 

(26)         Liens on assets of the
Issuer, a Guarantor or a Receivables Subsidiary incurred in connection with a
Qualified Receivables Transaction;

 

(27)         Liens incurred to secure
Other Second Lien Obligations permitted to be incurred pursuant to Section 4.09(a) hereof
or clause (12) of Section 4.09(b) hereof; provided that, at the time of
incurrence and after giving pro forma
effect thereto, the Consolidated Secured Debt Ratio of the Issuer would be no
greater than 3.75 to 1.00; and

 

(28)         Liens on the Collateral
securing:

 

(a)           the
Notes, the Guarantees thereof and other Obligations under this Indenture and in
respect thereof and any obligations owing to the Trustee or the Second Lien
Agent under this Indenture or the Security Documents; and

 

(b)           the
First Lien Obligations.

 

For purposes of this definition, the term “Indebtedness”
shall be deemed to include interest on such Indebtedness.

 

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

 

“Preferred
Stock” means any Equity Interest with preferential rights of payment
of dividends or upon liquidation, dissolution or winding up.

 

25

 

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

 

“Principals”
means Heartland and any of its Affiliates or Related Parties.

 

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

 

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

 

“Receivables”
means receivables, chattel paper, instruments, documents or intangibles
evidencing or relating to the right to payment of money.  “Receivables” shall include the indebtedness
and payment obligations of any Person to the Issuer or a Subsidiary arising
from a sale of merchandise or services by the Issuer or such Subsidiary in the
ordinary course of its business, including any right to payment for goods sold
or for services rendered, and including the right to payment of any interest, finance
charges, returned check or late charges and other obligations of such Person
with respect thereto.  Receivables shall
also include (a) all of the Issuer’s or such Subsidiary’s interest in the
merchandise (including returned merchandise), if any, relating to the sale which
gave rise to such Receivable, (b) all other security interests or Liens
and property subject thereto from time to time purporting to secure payment of
such Receivable, whether pursuant to the contract related to such Receivable or
otherwise, together with all financing statements signed by an obligor
describing any collateral securing such Receivable, and (c) all guarantees,
insurance, letters of credit and other agreements or arrangements of whatever
character from time to time supporting or securing payment of such Receivable
whether pursuant to the contract related to such Receivable or otherwise.

 

“Receivables Fees” means
distributions or payments made directly or by means of discounts with respect
to any participation interests issued or sold in connection with, and all other
fees paid to a Person that is a Restricted Subsidiary in connection with, any
Qualified Receivables Transaction.

 

“Receivables Subsidiary” means a Subsidiary
of the Issuer which engages in no activities other than in connection with the
financing of accounts receivable and which is designated by the Board of
Directors of the Issuer (as provided below) as a Receivables Subsidiary (a) no
portion of the Indebtedness or any other Obligations (contingent or otherwise)
of which (i) is guaranteed by the Issuer or any Subsidiary of the Issuer
(excluding guarantees of Obligations (other than the principal of, and interest
on, Indebtedness) pursuant to representations, warranties, covenants and
indemnities entered into in the ordinary course of business in connection with
a Qualified Receivables Transaction), (ii) is recourse to or obligates the
Issuer or any Subsidiary of the Issuer in any way other than pursuant to
representations, warranties, covenants and indemnities entered into in the
ordinary course of business in connection with a Qualified Receivables
Transaction or (iii) subjects any property or asset of the Issuer or any
Subsidiary of 

 

26

 

the Issuer (other than
accounts receivable and related assets as provided in the definition of “Qualified
Receivables Transaction”), directly or indirectly, contingently or
otherwise, to the satisfaction thereof, other than pursuant to representations,
warranties, covenants, limited repurchase obligations and indemnities entered
into in the ordinary course of business in connection with a Qualified
Receivables Transaction, (b) with which neither the Issuer nor any
Subsidiary of the Issuer has any material contract, agreement, arrangement or
understanding other than on terms no less favorable to the Issuer or such
Subsidiary than those that might be obtained at the time from Persons who are
not Affiliates of the Issuer, other than fees payable in the ordinary course of
business in connection with servicing accounts receivable, and (c) with
which neither the Issuer nor any Subsidiary of the Issuer has any obligation 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 Issuer shall be evidenced to the Trustee by
filing with the Trustee a certified copy of the resolution of the Board of
Directors (which resolution shall be conclusive) of the Issuer giving effect to
such designation and an Officer’s Certificate certifying that such designation
complied with the foregoing conditions.

 

“Record Date” for the interest or Additional
Interest, if any, payable on any applicable Interest Payment Date means June 1
or December 1 (whether or not a Business Day) next preceding such Interest
Payment Date.

 

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

 

“Registration
Rights Agreement” means the Registration Rights Agreement with
respect to the Notes dated as of the Issue Date, among the Issuer, the
Guarantors and the Initial Purchasers.

 

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

 

“Regulation S Global Note” means a Legended
Regulation S Global Note or an Unlegended Regulation S Global Note, as
appropriate.

 

“Related
Business Assets” means assets (other than cash or Cash Equivalents)
used or useful in a Similar Business, provided
that any assets received by the Issuer or a Restricted Subsidiary in exchange
for assets transferred by the Issuer or a Restricted Subsidiary shall not be
deemed to be Related Business Assets if they consist of securities of a Person,
unless upon receipt of the securities of such Person, such Person would become
a Restricted Subsidiary.

 

“Related Party” means:

 

(1)           any controlling stockholder,
general partner or managing member of any Principal, any majority owned
Subsidiary of any Principal, or any immediate family member (in the case of an
individual) of any Principal; or

 

(2)           any trust, corporation,
partnership, limited liability company or other entity, the beneficiaries,
stockholders, partners, members, owners or Persons beneficially holding a
majority interest of which consist of any one or more Principals and/or such
other Persons referred to in the immediately preceding clause (1).

 

“Responsible 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, 

 

27

 

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.

 

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

 

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

 

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

 

“Restricted Period” means the 40-day distribution
compliance period as defined in Regulation S.

 

“Restricted Subsidiary” means, at any time,
any direct or indirect Subsidiary of the Issuer (including any Foreign
Subsidiary) that is not then an Unrestricted Subsidiary; provided, however, that upon the occurrence of an Unrestricted
Subsidiary ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be
included in the definition of “Restricted Subsidiary.”

 

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

 

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

 

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

 

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

 

“S&P” means Standard & Poor’s, a
division of The McGraw-Hill Companies, Inc., and any successor to its
rating agency business.

 

“Sale
and Lease-Back Transaction” means any arrangement providing for the
leasing by the Issuer or any of its Restricted Subsidiaries of any real or
tangible personal property, which property has been or is to be sold or
transferred by the Issuer or such Restricted Subsidiary to a third Person in contemplation
of such leasing.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Second
Lien Agent” means The Bank
of New York Mellon Trust Company, N.A., as collateral agent for the Trustee and
the Holders of the Notes.

 

“Second
Lien Obligations” means all Indebtedness and other obligations with
respect to the Notes, this Indenture, the Guarantees thereof and the Security
Documents.

 

“Second
Priority Liens” means all Liens that secure the Second Lien
Obligations.

 

“Secured
Hedge Agreements” means each agreement that governs Hedging
Obligations by and between the Issuer or any Guarantor, on the one hand, and
any Hedge Bank from time to time, but 

 

28

 

only to the extent such
agreement is permitted under the Senior Credit Facility and constitutes an “Obligation”
(as such term is defined under the Senior Credit Facility); provided, however, that such Hedging Obligations
shall not, solely by virtue of constituting an “Obligation” (as so defined),
also constitute Indebtedness under the Senior Credit Facility.

 

“Secured
Hedging Obligations” means (i) obligations (including
obligations which, but for the automatic stay under Section 362(a) of
the United States Bankruptcy Code, would become due) and liabilities, whether
now existing or hereafter arising (including, without limitation, indemnities,
fees and interest thereon and all interest and fees that accrue on or after the
commencement of any Insolvency or Liquidation Proceeding at the rate provided
for in the respective Secured Hedge Agreement, whether or not a claim for
post-petition interest or fees is allowed in any such Insolvency or Liquidation
Proceeding), of the Issuer or any Guarantor owing to any Hedge Bank, now existing
or hereafter incurred under, or arising out of or in connection with, any
Secured Hedge Agreement (including all such obligations and indebtedness under
any guarantee of any such Secured Hedge Agreement to which the Issuer or such
Guarantor is a party) and (ii) all performance and compliance obligations
by the Issuer or any Guarantor under any Secured Hedge Agreement.

 

“Secured
Indebtedness” means any Indebtedness of the Issuer or any of its Restricted
Subsidiaries secured by a Lien.

 

“Securities Act” means the Securities Act of
1933, as amended, and the rules and regulations of the SEC promulgated
thereunder.

 

“Security
Documents” means the security documents granting a security interest
in any assets of any Person to secure the Obligations under this Indenture, the
Notes and the Guarantees as each may be amended, restated, supplemented or
otherwise modified from time to time.

 

“Senior
Credit Facility” means the Credit Facility under the Amended and Restated
Credit Agreement dated as of December 16 , 2009, by and among the Issuer,
the lenders party thereto in their capacities as lenders thereunder and
JPMorgan Chase Bank, N.A., as Administrative Agent, including any guarantees,
collateral documents, instruments and agreements executed in connection
therewith, and any amendments, supplements, modifications, extensions,
renewals, restatements, refundings or refinancings thereof and any indentures
or credit facilities or commercial paper facilities with banks or other
institutional lenders or investors that replace, refund or refinance any part
of the loans, notes, other credit facilities or commitments thereunder,
including any such replacement, refunding or refinancing facility or indenture
that increases the amount borrowable thereunder or alters the maturity thereof
(provided that such increase in borrowings is permitted under
Section 4.09 hereof).

 

“Shareholders Agreement” means that certain
shareholders agreement by and among Heartland and other investors party thereto
relating to their ownership in the Issuer as in effect on the Issue Date.

 

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

 

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

 

29

 

“Similar
Business” means any business conducted or proposed to be conducted
by the Issuer and its Restricted Subsidiaries on the Issue Date or any business
that is similar, reasonably related, incidental or ancillary thereto.

 

“Subsidiary” means, with respect to any
Person:

 

(1)           any corporation,
association, or other business entity (other than a partnership, joint venture,
limited liability company or similar 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 of determination owned or controlled,
directly or indirectly, by such Person or one or more of the other Subsidiaries
of that Person or a combination thereof or is consolidated under GAAP with such
Person at such time; and

 

(2)           any partnership, joint
venture, limited liability company or similar entity of which

 

(x)            more than 50% of the capital accounts, distribution
rights, total equity and voting interests or general or limited partnership
interests, as applicable, are owned or controlled, directly or indirectly, by
such Person or one or more of the other Subsidiaries of that Person or a
combination thereof whether in the form of membership, general, special or
limited partnership or otherwise, and

 

(y)           such Person or any
Restricted Subsidiary of such Person is a controlling general partner or
otherwise controls such entity.

 

“Total
Assets” means the total assets of the Issuer and its Restricted
Subsidiaries on a consolidated basis, as shown on the most recent balance sheet
of the Issuer or such other Person as may be expressly stated.

 

“Transaction”
means the (i) issuance of the Notes, (ii) the purchase, redemption or
retirement of all of the Issuer’s outstanding 97/8% senior subordinated notes due 2012, (iii) execution and delivery
of the Senior Credit Facility and (iv) the other related transactions to
be consummated in connection with the foregoing on or shortly following the
Issue Date.

 

“Treasury
Rate” means, as of any Redemption Date, the yield to maturity as of
such Redemption Date of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) that has become publicly available at least
two Business Days prior to the Redemption Date (or, if such Statistical Release
is no longer published, any publicly available source of similar market data))
most nearly equal to the period from the Redemption Date to December 15,
2013; provided, however, that if the period from
the Redemption Date to December 15, 2013 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to
a constant maturity of one year will be used.

 

“Trust Indenture Act”  means the Trust Indenture Act of 1939, as
amended (15 U.S.C. §§ 77aaa—77bbbb).

 

30

 

 

“Trustee” means The Bank of New York Mellon
Trust Company N.A., as trustee, until a successor replaces it in accordance
with the applicable provisions of this Indenture and thereafter means the
successor serving hereunder.

 

“Unlegended Regulation S Global Note” means a
permanent Global Note in the form of Exhibit A hereto bearing the Global
Note Legend deposited with or on behalf of and registered in the name of the
Depositary or its nominee and issued upon expiration of the Restricted Period.

 

“Unrestricted Definitive Note” means one or
more Definitive Notes that do not bear and are not required to bear the Private
Placement Legend.

 

“Unrestricted Global Note” means a permanent
Global Note, substantially in the form of Exhibit A attached
hereto, that bears the Global Note Legend and that has the “Schedule of Exchanges
of Interests in the Global Note” attached thereto, and that is deposited with
or on behalf of and registered in the name of the Depositary, representing
Notes that do not bear the Private Placement Legend.

 

“Unrestricted Subsidiary” means:

 

(1)           any Subsidiary of the Issuer
which at the time of determination is an Unrestricted Subsidiary (as designated
by the Issuer, as provided below); and

 

(2)           any Subsidiary of an
Unrestricted Subsidiary.

 

The Issuer may designate any Subsidiary of the
Issuer (including any existing Subsidiary and any newly acquired or newly
formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary or
any of its Subsidiaries owns any Equity Interests or Indebtedness of, or owns
or holds any Lien on, any property of, the Issuer or any Subsidiary of the
Issuer (other than solely any Subsidiary of the Subsidiary to be so
designated); provided
that

 

(1)           any Unrestricted Subsidiary
must be an entity of which the Equity Interests entitled to cast at least a
majority of the votes that may be cast by all Equity Interests having ordinary
voting power for the election of directors or Persons performing a similar
function are owned, directly or indirectly, by the Issuer;

 

(2)           such designation complies
with Section 4.07 hereof; and

 

(3)           each of:

 

(a)           the
Subsidiary to be so designated; and

 

(b)           its
Subsidiaries

 

has
not at the time of designation, and does not thereafter, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable with
respect to any Indebtedness pursuant to which the lender has recourse to any of
the assets of the Issuer or any Restricted Subsidiary.

 

The Issuer may designate any Unrestricted Subsidiary
to be a Restricted Subsidiary; provided
that, immediately after giving effect to such designation, no Default shall
have occurred and be continuing and either:

 

31

 

(x)            the Issuer could incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test described in Section 4.09(a) hereof; or

 

(y)           the Fixed Charge Coverage
Ratio for the Issuer and its Restricted Subsidiaries would be greater than such
ratio for the Issuer and its Restricted Subsidiaries immediately prior to such
designation,

 

in each case on a pro
forma basis taking into account such designation.

 

Any such designation by the Issuer shall be notified
by the Issuer to the Trustee by promptly filing with the Trustee a copy of the
resolution of the Board of Directors of the Issuer or any committee thereof
giving effect to such designation and an Officer’s Certificate certifying that
such designation complied with the foregoing provisions.

 

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

 

“Unsecured
Indebtedness” means Indebtedness that is not Secured Indebtedness.

 

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

 

“Weighted Average Life to Maturity” means,
when applied to any Indebtedness, Disqualified Stock or Preferred Stock, as the
case may be, at any date, the quotient obtained by dividing:

 

(1)           the sum of the products of
the number of years from the date of determination to the date of each
successive scheduled principal payment of such Indebtedness or redemption or
similar payment with respect to such Disqualified Stock or Preferred Stock
multiplied by the amount of such payment; by

 

(2)           the sum of all such
payments.

 

“Wholly Owned Subsidiary” of any Person means
a Subsidiary of such Person, 100% of the outstanding Equity Interests 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

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  	
   

  
	
  “Asset Sale Offer”

  	
   

  	
  4.10

  	
   

  
	
  “Authentication Order”

  	
   

  	
  2.02

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.14

  	
   

  
	
  “Change of Control Payment”

  	
   

  	
  4.14

  	
   

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.14

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  

 

32

 

	
  Term

  	
   

  	
  Defined in 

  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  	
   

  
	
  “incur”

  	
   

  	
  4.09

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Note Register”

  	
   

  	
  2.03

  	
   

  
	
  “Offer Amount”

  	
   

  	
  3.09

  	
   

  
	
  “Offer Period”

  	
   

  	
  3.09

  	
   

  
	
  “Pari Passu Indebtedness”

  	
   

  	
  4.10

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Purchase Date”

  	
   

  	
  3.09

  	
   

  
	
  “Redemption Date”

  	
   

  	
  3.07

  	
   

  
	
  “Replacement Assets”

  	
   

  	
  4.10

  	
   

  
	
  “Refinancing Indebtedness”

  	
   

  	
  4.09

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  	
   

  
	
  “Successor Company”

  	
   

  	
  5.01

  	
   

  
	
  “Successor Person”

  	
   

  	
  5.01

  	
   

  
	
  “Treasury Capital Stock”

  	
   

  	
  4.07

  	
   

  

 

Section 1.03              Incorporation by Reference
of Trust Indenture Act.

 

Whenever this Indenture expressly refers to a
provision of the Trust Indenture Act, the provision is incorporated by reference
in and made a part of this Indenture. 
Notwithstanding anything to the contrary, the Issuer and the Guarantors
shall not be required to comply with Section 314 of the Trust Indenture
Act.

 

The following Trust Indenture Act terms used in this
Indenture have the following meanings:

 

“indenture securities” means the Notes;

 

“indenture security Holder” means a Holder of a
Note;

 

“indenture to be qualified” means this Indenture;

 

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

 

“obligor” on the Notes and the Guarantees means the Issuer and the
Guarantors, respectively, and any successor obligor upon the Notes and the
Guarantees, respectively.

 

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

 

33

 

Section 1.04              Rules of Construction.

 

Unless the context otherwise requires:

 

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

 

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

 

(c)           “or” is not exclusive;

 

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

 

(e)           “will” shall be interpreted
to express a command;

 

(f)            provisions apply to
successive events and transactions;

 

(g)           references to sections of,
or rules under, the Securities Act shall be deemed to include substitute,
replacement or successor sections or rules adopted by the SEC from time to
time;

 

(h)           unless the context otherwise
requires, any reference to an “Article,” “Section” or “clause” refers to an
Article, Section or clause, as the case may be, of this Indenture; and

 

(i)            the words “herein,” “hereof”
and “hereunder” and other words of similar import refer to this Indenture as a
whole and not any particular Article, Section, clause or other subdivision.

 

Section 1.05             Acts of Holders.

 

(a)           Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by an agent duly appointed in writing.  Except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
or record or both are delivered to the Trustee and, where it is hereby
expressly required, to the Issuer.  Proof
of execution of any such instrument or of a writing appointing any such agent,
or the holding by any Person of a Note, shall be sufficient for any purpose of
this Indenture and (subject to Section 7.01) conclusive in favor of the
Trustee and the Issuer, if made in the manner provided in this Section 1.05.

 

(b)           The fact and date of the
execution by any Person of any such instrument or writing may be proved by the
affidavit of a witness of such execution or by the certificate of any notary
public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing acknowledged
to him the execution thereof.  Where such
execution is by or on behalf of any legal entity other than an individual, such
certificate or affidavit shall also constitute proof of the authority of the
Person executing the same.  The fact and
date of the execution of any such instrument or writing, or the authority of
the Person executing the same, may also be proved in any other manner that the
Trustee deems sufficient.

 

34

 

(c)           The ownership of Notes shall
be proved by the Note Register.

 

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

 

(e)           The Issuer may, in the
circumstances permitted by the Trust Indenture Act, set a record date for
purposes of determining the identity of Holders entitled to give any request,
demand, authorization, direction, notice, consent, waiver or take any other
act, or to vote or consent to any action by vote or consent authorized or
permitted to be given or taken by Holders. 
Unless otherwise specified, if not set by the Issuer prior to the first
solicitation of a Holder made by any Person in respect of any such action, or
in the case of any such vote, prior to such vote, any such record date shall be
the later of 30 days prior to the first solicitation of such consent or the
date of the most recent list of Holders furnished to the Trustee prior to such
solicitation.

 

(f)            Without limiting the
foregoing, a Holder entitled to take any action hereunder with regard to any
particular Note may do so with regard to all or any part of the principal
amount of such Note or by one or more duly appointed agents, each of which may
do so pursuant to such appointment with regard to all or any part of such
principal amount.  Any notice given or
action taken by a Holder or its agents with regard to different parts of such
principal amount pursuant to this paragraph shall have the same effect as if
given or taken by separate Holders of each such different part.

 

(g)           Without limiting the
generality of the foregoing, a Holder, including DTC that is the Holder of a
Global Note, may make, give or take, by a proxy or proxies duly appointed in
writing, any request, demand, authorization, direction, notice, consent, waiver
or other action provided in this Indenture to be made, given or taken by
Holders, and DTC that is the Holder of a Global Note may provide its proxy or
proxies to the beneficial owners of interests in any such Global Note through
such depositary’s standing instructions and customary practices.

 

(h)           The Issuer may fix a record
date for the purpose of determining the Persons who are beneficial owners of
interests in any Global Note held by DTC entitled under the procedures of such
depositary to make, give or take, by a proxy or proxies duly appointed in
writing, any request, demand, authorization, direction, notice, consent, waiver
or other action provided in this Indenture to be made, given or taken by
Holders.  If such a record date is fixed,
the Holders on such record date or their duly appointed proxy or proxies, and
only such Persons, shall be entitled to make, give or take such request,
demand, authorization, direction, notice, consent, waiver or other action,
whether or not such Holders remain Holders after such record date.  No such request, demand, authorization,
direction, notice, consent, waiver or other action shall be valid or effective
if made, given or taken more than 90 days after such record date.

 

35

 

ARTICLE 2

 

THE NOTES

 

Section 2.01              Form and Dating; Terms.

 

(a)           General.  The Notes and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibit A hereto.  The Notes may have notations, legends or
endorsements required by law, stock exchange rules or usage.  Each Note shall be dated the date of its
authentication.  The Notes shall be in denominations
of $2,000 and integral multiples of $1,000 in excess thereof.

 

(b)           Global Notes.  Notes issued in global form shall be substantially
in the form of Exhibit A attached hereto (including the Global Note
Legend thereon and the “Schedule of Exchanges of Interests in the Global Note”
attached thereto).  Notes issued in
definitive form shall be substantially in the form of Exhibit A attached
hereto (but without the Global Note Legend thereon and without the “Schedule of
Exchanges of Interests in the Global Note” attached thereto).  Each Global Note shall represent such of the
outstanding Notes as shall be specified in the “Schedule of Exchanges of
Interests in the Global Note” attached thereto and each shall provide that it
shall represent up to the aggregate principal amount of Notes from time to time
endorsed thereon and that the aggregate principal amount of outstanding Notes
represented thereby may from time to time be reduced or increased, as
applicable, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.06 hereof.

 

(c)           Regulation S Global Notes.  Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of the Legended Regulation S
Global Note, which shall be deposited on behalf of the purchasers of the Notes
represented thereby with the Trustee, as custodian for the Depositary, and
registered in the name of the Depositary or the nominee of the Depositary for
the accounts of designated agents holding on behalf of Euroclear or
Clearstream, duly executed by the Issuer and authenticated by the Trustee as
hereinafter provided.

 

Following the termination of
the Restricted Period, beneficial interests in the Legended Regulation S Global
Note shall be exchanged for beneficial interests in the Unlegended Regulation S
Global Note pursuant to the Applicable Procedures.  Simultaneously with the authentication of the
Unlegended Regulation S Global Note, the Trustee shall cancel the Legended
Regulation S Global Note.  The aggregate
principal amount of the Regulation S Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee and
the Depositary or its nominee, as the case may be, in connection with transfers
of interest as hereinafter provided.

 

(d)           Terms.  The aggregate principal amount of Notes that
may be authenticated and delivered under this Indenture is unlimited.

 

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

 

36

 

The Notes shall be subject to repurchase by the
Issuer pursuant to an Asset Sale Offer as provided in Section 4.10 hereof
or a Change of Control Offer as provided in Section 4.14 hereof.  The Notes shall not be redeemable, other than
as provided in Article 3.

 

Additional Notes ranking pari
passu with the Initial Notes may be
created and issued from time to time by the Issuer without notice to or consent
of the Holders and shall be consolidated with and form a single class with the
Initial Notes and shall have the same terms as to status, redemption or
otherwise as the Initial Notes; provided that the Issuer’s ability to
issue Additional Notes shall be subject to the Issuer’s compliance with Section 4.09
hereof.

 

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

 

Section 2.02              Execution and Authentication.

 

At least one Officer shall execute the Notes on
behalf of the Issuer by manual or facsimile signature.

 

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

 

A Note shall not be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose until authenticated
substantially in the form of Exhibit A attached hereto by the
manual or facsimile signature of the Trustee. 
The signature shall be conclusive evidence that the Note has been duly
authenticated and delivered under this Indenture.

 

On the Issue Date, the Trustee shall, upon receipt
of an Issuer Order (an “Authentication Order”), authenticate and
deliver the Initial Notes.  In
addition, at any time, from time to time, the Trustee shall upon an Authentication
Order authenticate and deliver any Additional Notes and Exchange Notes for an
aggregate principal amount specified in such Authentication Order for such
Additional Notes or Exchange Notes issued hereunder.

 

The Trustee may appoint an authenticating agent
acceptable to the Issuer to authenticate Notes. 
An authenticating agent may authenticate Notes whenever the Trustee may
do so.  Each reference in this Indenture
to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights
as an Agent to deal with Holders or an Affiliate of the Issuer.

 

Section 2.03              Registrar and Paying Agent.

 

The Issuer shall maintain an office or agency where
Notes may be presented for registration of transfer or for exchange (“Registrar”)
in the Borough of Manhattan, City of New York, and an office or agency where
Notes may be presented for payment (“Paying Agent”) in the Borough of
Manhattan, City of New York.  The
Registrar shall keep a register of the Notes (“Note Register”) and of
their transfer and exchange.  The Issuer
may appoint one or more co-registrars and one or more additional paying
agents.  The term “Registrar” includes
any co-registrar and the term “Paying Agent” includes any additional paying
agent.  The Issuer may change any Paying
Agent or Registrar without prior notice to 

 

37

 

any Holder.  The Issuer shall notify the Trustee in
writing of the name and address of any Agent not a party to this
Indenture.  If the Issuer fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
shall act as such.  The Issuer or any of
its Subsidiaries may act as Paying Agent or Registrar.

 

The Issuer initially appoints The Depository Trust
Company (“DTC”) to act as Depositary with respect to the Global Notes.

 

The Issuer initially appoints the Trustee to act as
the Paying Agent and Registrar for the Notes and to act as Custodian with
respect to the Global Notes.

 

Section 2.04              Paying Agent to Hold Money
in Trust.

 

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

 

Section 2.05              Holder Lists.

 

The Trustee shall preserve in as current a form as
is reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with Trust Indenture Act Section 312(a).  If the Trustee is not the Registrar, the
Issuer shall furnish to the Trustee at least two Business Days before each
Interest Payment Date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of the Holders of Notes and the Issuer shall
otherwise comply with Trust Indenture Act Section 312(a).

 

Section 2.06              Transfer and Exchange.

 

(a)           Transfer and Exchange of Global
Notes.  Except as otherwise set forth
in this Section 2.06, a Global Note may be transferred, in whole and not
in part, only to another nominee of the Depositary or to a successor Depositary
or a nominee of such successor Depositary. 
A beneficial interest in a Global Note may not be exchanged for a
Definitive Note unless (i) the Depositary (x) notifies the Issuer
that it is unwilling or unable to continue as Depositary for such Global Note
and a successor is not appointed within 90 days or (y) has ceased to be
registered as a clearing agency registered under the Exchange Act and a
successor Depositary is not appointed within 90 days, (ii) the Issuer, at
its option, notifies the Trustee that it elects to cause the issuance of
Definitive Notes or (iii) there shall have occurred and be continuing a
Default with respect to the Notes.  Upon
the occurrence of any of the preceding events in (i), (ii) or (iii) above,
Definitive Notes delivered in exchange for any Global Note or beneficial
interests therein will be registered in the names, and issued in any approved
denominations, requested by or on behalf of the Depositary (in accordance with
its customary procedures).  Global Notes
also may be 

 

38

 

exchanged or replaced, in whole or in part,
as provided in Sections 2.07 and 2.10 hereof. 
Every Note authenticated and delivered in exchange for, or in lieu of, a
Global Note or any portion thereof, pursuant to this Section 2.06 or Section 2.07
or 2.10 hereof, shall be authenticated and delivered in the form of, and shall
be, a Global Note, except for Definitive Notes issued subsequent to any of the
preceding events in (i) or (ii) above and pursuant to Section 2.06(c) hereof.  A Global Note may not be exchanged for another
Note other than as provided in this Section 2.06(a); provided, however,
beneficial interests in a Global Note may be transferred and exchanged as provided
in Section 2.06(b), (c) or (f) hereof.

 

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

 

(i)            Transfer of
Beneficial Interests in the Same Global Note.  Beneficial interests in any Restricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided,
however, that prior to the expiration of the Restricted Period, transfers
of beneficial interests in the Legended Regulation S Global Note may not be
made to a U.S. Person or for the account or benefit of a U.S. Person (other
than an Initial Purchaser) unless (1) such exchange occurs in connection
with a transfer of the Global Notes pursuant to Rule 144A; and (2) the
transferor first delivers a certificate in the form of Exhibit B
hereto.  Beneficial interests in any
Unrestricted Global Note may be transferred to Persons who take delivery
thereof in the form of a beneficial interest in an Unrestricted Global
Note.  No written orders or instructions
shall be required to be delivered to the Registrar to effect the transfers
described in this Section 2.06(b)(i).

 

(ii)           All Other
Transfers and Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.06(b)(i) hereof, the transferor of such
beneficial interest must deliver to the Registrar either (A) (1) a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the Depositary
to credit or cause to be credited a beneficial interest in another Global Note
in an amount equal to the beneficial interest to be transferred or exchanged
and (2) instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase
or (B) (1) a written order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to cause to be issued a Definitive Note in
an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions
given by the Depositary to the Registrar containing information regarding the
Person in whose name such Definitive Note shall be registered to effect the
transfer or exchange referred to in (1) above; provided that in no
event shall Definitive Notes be issued upon the transfer or exchange of
beneficial interests in the Legended Regulation S Global Note prior to the
expiration of the Restricted Period. 
Upon consummation of a Registered Exchange Offer by the Issuer in
accordance with Section 2.06(f) hereof, the requirements of this Section 2.06(b)(ii) shall
be deemed to have been satisfied upon receipt by the Registrar of the
instructions contained in the Letter of Transmittal delivered by the Holder of
such beneficial interests in the 

 

39

 

Restricted
Global Notes.  Upon satisfaction of all
of the requirements for transfer or exchange of beneficial interests in Global
Notes contained in this Indenture and the Notes or otherwise applicable under
the Securities Act, the Trustee shall adjust the principal amount of the
relevant Global Note(s) pursuant to Section 2.06(h) hereof.

 

(iii)          Transfer of
Beneficial Interests to Another Restricted Global Note.  A beneficial interest in any Restricted
Global Note may be transferred to a Person who takes delivery thereof in the
form of a beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.06(b)(ii) hereof and the Registrar receives the
following:

 

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

 

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

 

(iv)          Transfer and
Exchange of Beneficial Interests in a Restricted Global Note for Beneficial
Interests in an Unrestricted Global Note.  A beneficial interest in any Restricted
Global Note may be exchanged by any holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note if
the exchange or transfer complies with the requirements of Section 2.06(b)(ii) hereof
and:

 

(A)          such exchange
or transfer is effected pursuant to the Registered Exchange Offer in accordance
with the Registration Rights Agreement and the holder of the beneficial interest
to be transferred, in the case of an exchange, or the transferee, in the case
of a transfer, certifies in the applicable Letter of Transmittal that it is not
(1) a Broker-Dealer, (2) a Person participating in the distribution
of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144)
of the Issuer;

 

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

 

(C)           such transfer
is effected by a Broker-Dealer pursuant to the Exchange Offer Registration
Statement in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar
receives the following:

 

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

 

(2)           if the holder
of such beneficial interest in a Restricted Global Note proposes to transfer
such beneficial interest to a Person who shall take delivery thereof in the
form of a beneficial interest in an Unrestricted Global 

 

40

 

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

 

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

 

If any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted Global Note has not yet been issued, the Issuer
shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in
an aggregate principal amount equal to the aggregate principal amount of beneficial
interests transferred pursuant to subparagraph (B) or (D) above.

 

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

 

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

 

(i)            Beneficial Interests in
Restricted Global Notes to Restricted Definitive Notes.  If any holder of a beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note or to transfer such beneficial interest to a Person
who takes delivery thereof in the form of a Restricted Definitive Note, then,
upon the occurrence of any of the events in paragraph (i) or (ii) of Section 2.06(a) hereof and receipt by the Registrar
of the following documentation:

 

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

 

(B)           if such beneficial interest is being transferred to
a QIB in accordance with Rule 144A, a certificate substantially in the
form of Exhibit B hereto, including the certifications in item (1) thereof;

 

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

 

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

 

41

 

(E)           if such beneficial interest is being transferred to
the Issuer or any of its Restricted Subsidiaries, a certificate substantially
in the form of Exhibit B hereto, including the certifications in
item (3)(b) thereof; or

 

(F)           if such beneficial interest is being transferred
pursuant to an effective registration statement under the Securities Act, a
certificate substantially in the form of Exhibit B hereto, including
the certifications in item (3)(c) thereof,

 

the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced accordingly
pursuant to Section 2.06(h) hereof, and the Issuer shall execute and
the Trustee shall authenticate and mail to the Person designated in the
instructions a Definitive Note in the applicable principal amount.  Any Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
mail such Definitive Notes to the Persons in whose names such Notes are so
registered.  Any Definitive Note issued
in exchange for a beneficial interest in a Restricted Global Note pursuant to
this Section 2.06(c)(i) shall bear the Private Placement Legend and
shall be subject to all restrictions on transfer contained therein.

 

(ii)     Beneficial Interests in
Legended Regulation S Global Note to Definitive Notes.  Notwithstanding Sections 2.06(c)(i)(A) and
(C) hereof, a beneficial interest in the Legended Regulation S Global Note
may not be exchanged for a Definitive Note or transferred to a Person who takes
delivery thereof in the form of a Definitive Note prior to the expiration of
the Restricted Period, except in the case of a transfer pursuant to an
exemption from the registration requirements of the Securities Act other than Rule 903
or Rule 904.

 

(iii)    Beneficial Interests in
Restricted Global Notes to Unrestricted Definitive Notes.  A holder of a beneficial interest in a
Restricted Global Note may exchange such beneficial interest for an
Unrestricted Definitive Note or may transfer such beneficial interest to a Person
who takes delivery thereof in the form of an Unrestricted Definitive Note only
upon the occurrence of any of the events in subsection (i) or (ii) of
Section 2.06(a) hereof
and if:

 

(A)          such exchange or transfer is effected pursuant to
the Registered Exchange Offer in accordance with the Registration Rights
Agreement and the holder of such beneficial interest, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a
Person who is an affiliate (as defined in Rule 144) of the Issuer;

 

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

 

(C)           such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement; or

 

42

 

(D)          the Registrar receives the following:

 

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

 

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

 

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

 

(iv)          Beneficial Interests in
Unrestricted Global Notes to Unrestricted Definitive Notes.  If any holder of a beneficial interest in an
Unrestricted Global Note proposes to exchange such beneficial interest for a
Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Definitive Note, then, upon the occurrence of
any of the events in subsection (i) or (ii) of Section 2.06(a) hereof and satisfaction of the
conditions set forth in Section 2.06(b)(ii) hereof, the Trustee shall
cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(h) hereof, and the
Issuer shall execute and the Trustee shall authenticate and mail to the Person
designated in the instructions a Definitive Note in the applicable principal
amount.  Any Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 2.06(c)(iv) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from or through the Depositary and the
Participant or Indirect Participant.  The
Trustee shall mail such Definitive Notes to the Persons in whose names such
Notes are so registered.  Any Definitive
Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(iv) shall
not bear the Private Placement Legend.

 

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

 

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

 

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

 

43

 

(B)           if such Restricted Definitive Note is being
transferred to a QIB in accordance with Rule 144A, a certificate
substantially in the form of Exhibit B hereto, including the
certifications in item (1) thereof;

 

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

 

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

 

(E)           if such Restricted Definitive Note is being
transferred to the Issuer or any of its Restricted Subsidiaries, a certificate
substantially in the form of Exhibit B hereto, including the
certifications in item (3)(b) thereof; or

 

(F)           if such Restricted Definitive Note is being
transferred pursuant to an effective registration statement under the
Securities Act, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (3)(c) thereof,

 

the Trustee shall cancel the
Restricted Definitive Note, increase or cause to be increased the aggregate
principal amount of, in the case of clause (A) above, the applicable
Restricted Global Note, in the case of clause (B) above, the applicable
144A Global Note, and in the case of clause (C) above, the applicable
Regulation S Global Note.

 

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

 

(A)          such exchange or transfer is effected pursuant to
the Registered Exchange Offer in accordance with the Registration Rights
Agreement and the Holder, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal that it
is not (1) a Broker-Dealer, (2) a Person participating in the
distribution of the Exchange Notes or (3) a Person who is an affiliate (as
defined in Rule 144) of the Issuer;

 

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

 

(C)           such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

(1)           if the Holder of such Definitive Notes proposes to
exchange such Notes for a beneficial interest in the Unrestricted Global Note,
a certificate from such Holder 

 

44

 

substantially in the form of Exhibit C hereto, including
the certifications in item (1)(c) thereof; or

 

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

 

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

 

Upon satisfaction of the conditions of any of the
subparagraphs in this Section 2.06(d)(ii), the Trustee shall cancel the
Definitive Notes and increase or cause to be increased the aggregate principal
amount of the Unrestricted Global Note.

 

(iii)          Unrestricted Definitive
Notes to Beneficial Interests in Unrestricted Global Notes.  A Holder of an Unrestricted Definitive Note
may exchange such Note for a beneficial interest in an Unrestricted Global Note
or transfer such Definitive Notes to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note at any time.  Upon receipt of a request for such an
exchange or transfer, the Trustee shall cancel the applicable Unrestricted
Definitive Note and increase or cause to be increased the aggregate principal
amount of one of the Unrestricted Global Notes.

 

If any such exchange or transfer from a Definitive
Note to a beneficial interest is effected pursuant to subparagraph (ii)(B),
(ii)(D) or (iii) above at a time when an Unrestricted Global Note has
not yet been issued, the Issuer shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee
shall authenticate one or more Unrestricted Global Notes in an aggregate principal
amount equal to the principal amount of Definitive Notes so transferred.

 

(e)           Transfer and Exchange of
Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes
and such Holder’s compliance with the provisions of this Section 2.06(e),
the Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. 
In addition, the requesting Holder shall provide any additional
certifications, documents and information, as applicable, required pursuant to
the following provisions of this Section 2.06(e):

 

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

 

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

 

45

 

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

 

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

 

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

 

(A)          such exchange
or transfer is effected pursuant to the Registered Exchange Offer in accordance
with the Registration Rights Agreement and the Holder, in the case of an exchange,
or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a
Person who is an affiliate (as defined in Rule 144) of the Issuer;

 

(B)           any such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

(C)           any such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar
receives the following:

 

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

 

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

 

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

 

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

 

46

 

the
Registrar shall register the Unrestricted Definitive Notes pursuant to the
instructions from the Holder thereof.

 

(f)            Exchange Offer. 
Upon the occurrence of the Registered Exchange Offer in accordance with
the Registration Rights Agreement, the Issuer shall issue and, upon receipt of
an Authentication Order in accordance with Section 2.02 hereof, the
Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial interests
in the Restricted Global Notes tendered for acceptance by Persons that certify
in the applicable Letters of Transmittal that (x) they are not
Broker-Dealers, (y) they are not participating in a distribution of the
Exchange Notes and (z) they are not affiliates (as defined in Rule 144)
of the Issuer, and accepted for exchange in the Registered Exchange Offer and (ii) Unrestricted
Definitive Notes in an aggregate principal amount equal to the principal amount
of the Restricted Definitive Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not
Broker-Dealers, (y) they are not participating in a distribution of the
Exchange Notes and (z) they are not affiliates (as defined in Rule 144)
of the Issuer, and accepted for exchange in the Registered Exchange Offer.  Concurrently with the issuance of such Notes,
the Trustee shall cause the aggregate principal amount of the applicable
Restricted Global Notes to be reduced accordingly, and the Issuer shall execute
and the Trustee shall authenticate and mail to the Persons designated by the
Holders of Definitive Notes so accepted Unrestricted Definitive Notes in the applicable
principal amount.  Any Notes that remain
outstanding after the consummation of the Registered Exchange Offer, and
Exchange Notes issued in connection with the Registered Exchange Offer, shall
be treated as a single class of securities under this Indenture.

 

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

 

(i)            Private
Placement Legend.

 

(A)          Except as permitted
by subparagraph (B) below, unless and until (x) a Note is exchanged
for an Exchange Note or sold in connection with an effective Shelf Registration
Statement pursuant to the Registration Rights Agreement, (y) with respect
to a Restricted Global Note, all of the beneficial interests in such Restricted
Global Note have been exchanged for beneficial interests in the Unrestricted
Global Note in accordance with clause (j) of this Section 2.06 or the
Private Placement Legend has been removed from such Restricted Global Note in
accordance with clause (b)(iv), (c)(iii), c(iv), (d)(ii), (d)(iii), (e)(ii),
(e)(iii) or (f) of this Section 2.06, or (z) the Issuer
determines and there is delivered to the Trustee an Opinion of Counsel
reasonably satisfactory to the Trustee and a letter of representation of the
Issuer reasonably satisfactory to the Trustee to the effect that the following
legend and the related restrictions on transfer are not required in order to
maintain compliance with the provisions of the Securities Act, each Global Note
and each Definitive Note (and all Notes issued in exchange therefor or
substitution thereof) shall bear a legend (the “Private Placement Legend”)
in substantially the following form:

 

THIS
NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH 

 

47

 

REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY
NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

 

THE
HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN
THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE
THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR
RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

Each
Legended Regulation S Global Note shall bear a legend (“Regulation S Global
Note Legend”) in substantially the following form:

 

THIS
NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY
EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
‘‘SECURITIES ACT’’), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO,
OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS
GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

 

Each
Global Note and each Definitive Note (and all Notes issued in exchange therefor
or substitution thereof) shall also bear a legend (“OID Legend”) in
substantially the following form:

 

THIS
NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271
ET SEQ. OF THE INTERNAL REVENUE CODE.  A
HOLDER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT,
ISSUE DATE AND YIELD TO MATURITY FOR SUCH NOTES BY SUBMITTING A REQUEST FOR
SUCH INFORMATION TO THE ISSUER AT THE FOLLOWING ADDRESS: 39400 

 

48

 

WOODWARD
AVENUE, SUITE 130, BLOOMFIELD HILLS, MICHIGAN 48304, ATTENTION: CHIEF FINANCIAL
OFFICER.

 

(B)           Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to
subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or
(f) of this Section 2.06 (and all Notes issued in exchange therefor
or substitution thereof) shall not bear the Private Placement Legend.

 

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

 

“THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE
REQUIRED PURSUANT TO SECTION 2.06(h) OF THE INDENTURE, (II) THIS
GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF
THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE
FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR
WRITTEN CONSENT OF THE ISSUER.  UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY
TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.  UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE 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.”

 

(h)           Cancellation and/or Adjustment of Global Notes.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in
part, each such Global Note shall be 

 

49

 

returned to or retained and canceled by the
Trustee in accordance with Section 2.11 hereof.  At any time prior to such cancellation, if
any beneficial interest in a Global Note is exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes
represented by such Global Note shall be reduced accordingly and an endorsement
shall be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such reduction; and if the beneficial
interest is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Note,
such other Global Note shall be increased accordingly and an endorsement shall
be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such increase.

 

(i)            General Provisions Relating to Transfers and Exchanges.

 

(i)            To permit registrations of transfers
and exchanges, the Issuer shall execute and the Trustee shall authenticate
Global Notes and Definitive Notes upon receipt of an Authentication Order in
accordance with Section 2.02 hereof or at the Registrar’s request.

 

(ii)           No service charge shall be made to a
holder of a beneficial interest in a Global Note or to a Holder of a Definitive
Note for any registration of transfer or exchange, but the Issuer may require
payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to
Sections 2.07, 2.10, 3.06, 3.09, 4.10, 4.14 and 9.05 hereof).

 

(iii)          Neither the Registrar nor the Issuer
shall be required to register the transfer of or exchange any Note selected for
redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part.

 

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

 

(v)           The Issuer shall not be required (A) to
issue, to register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of any selection of
Notes for redemption under Section 3.02 hereof and ending at the close of
business on the day of selection, (B) to register the transfer of or to
exchange any Note so selected for redemption in whole or in part, except the
unredeemed portion of any Note being redeemed in part, or tendered (and not
withdrawn) for repurchase in connection with a Change of Control Offer or an
Asset Sale Offer, or (C) to register the transfer of or to exchange a Note
between a Record Date and the next succeeding Interest Payment Date.

 

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

 

(vii)         Upon surrender for registration of
transfer of any Note at the office or agency of the Issuer designated pursuant
to Section 4.02 hereof,
the Issuer shall execute, and the Trustee shall 

 

50

 

authenticate
and mail, in the name of the designated transferee or transferees, one or more
replacement Notes of any authorized denomination or denominations of a like
aggregate principal amount.

 

(viii)        At the option of the Holder, Notes may
be exchanged for other Notes of any authorized denomination or denominations of
a like aggregate principal amount upon surrender of the Notes to be exchanged
at such office or agency.  Whenever any
Global Notes or Definitive Notes are so surrendered for exchange, the Issuer
shall execute, and the Trustee shall authenticate and mail, the replacement
Global Notes and Definitive Notes which the Holder making the exchange is
entitled to in accordance with the provisions of Section 2.02 hereof.

 

(ix)           All certifications, certificates and
Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.06
to effect a registration of transfer or exchange may be submitted by facsimile.

 

(j)            Automatic Exchange from Restricted Global
Note to Unrestricted Global Note.  Upon compliance with the following
procedures, all of the beneficial interests in a Restricted Global Note shall
be exchanged for beneficial interests in the Unrestricted Global Note.  In order to effect such exchange, the Issuer
shall provide written notice to the Trustee instructing the Trustee to (i) direct
the Depositary to transfer all of the outstanding beneficial interests in a
particular Restricted Global Note to the Unrestricted Global Note and provide
the Depositary with all such information as is necessary for the Depositary to
appropriately credit and debit the relevant Holder accounts and (ii) provide
prior written notice to all Holders of such exchange, which notice must include
the date such exchange is to occur, the CUSIP number of the relevant Restricted
Global Note and the CUSIP number of the Unrestricted Global Note into which
such Holders’ beneficial interests will be exchanged.  As a condition to any such exchange pursuant
to this Section 2.06(j), the Trustee shall be entitled to receive from the
Issuer, and rely conclusively without any liability, upon an Officers’
Certificate and an Opinion of Counsel to the Issuer, in form and in substance
reasonably satisfactory to the Trustee, to the effect that such transfer of
beneficial interests to the Unrestricted Global Note shall be effected in
compliance with the Securities Act.  Upon
such exchange of beneficial interests pursuant to this Section 2.06(j),
the Registrar shall endorse the Schedule of Transfers and Exchanges to the
relevant Notes and reflect on its books and records the date of such transfer
and a decrease and increase, respectively, in the principal amount of the
applicable Restricted Global Note(s) and the Unrestricted Global Note,
respectively, equal to the principal amount of beneficial interests
transferred.  Following any such transfer
pursuant to this Section 2.06(j), the relevant Restricted Global Note
shall be cancelled.

 

Section 2.07                                         Replacement
Notes.

 

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

 

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

 

51

 

Section 2.08                                         Outstanding
Notes.

 

The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note
effected by the Trustee in accordance with the provisions hereof, and those
described in this Section 2.08 as not outstanding.  Except as set forth in Section 2.09
hereof, a Note does not cease to be outstanding because the Issuer or an
Affiliate of the Issuer holds the Note.

 

If a Note is replaced pursuant to Section 2.07
hereof, it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Note is held by a protected purchaser.

 

If the principal amount of any Note is considered
paid under Section 4.01 hereof, it ceases to be outstanding and interest
on it ceases to accrue.

 

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

 

Section 2.09                                         Treasury Notes.

 

In determining whether the Holders of the required
principal amount of Notes have concurred in any direction, waiver or consent,
Notes owned by the Issuer, or by any Affiliate of the Issuer, shall be
considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such direction,
waiver or consent, only Notes that a Responsible Officer of the Trustee knows
are so owned shall be so disregarded. 
Notes so owned which have been pledged in good faith shall not be disregarded
if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right to deliver any such direction, waiver or consent with respect to the
Notes and that the pledgee is not the Issuer or any obligor upon the Notes or
any Affiliate of the Issuer or of such other obligor.

 

Section 2.10                                         Temporary Notes.

 

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

 

Holders and beneficial holders, as the case may be,
of temporary Notes shall be entitled to all of the benefits accorded to
Holders, or beneficial holders, respectively, of Notes under this Indenture.

 

Section 2.11                                         Cancellation.

 

The Issuer at any time may deliver Notes to the
Trustee for cancellation. The Registrar and Paying Agent shall forward to the
Trustee any Notes surrendered to them for registration of transfer, exchange or
payment.  The Trustee or, at the
direction of the Trustee, the Registrar or the Paying Agent 

 

52

 

and no one else shall cancel
all Notes surrendered for registration of transfer, exchange, payment, replacement
or cancellation and shall dispose of cancelled Notes (subject to the record
retention requirement of the Exchange Act) in its customary manner.  Certification of the disposal of all
cancelled Notes shall be delivered to the Issuer upon its request
therefor.  The Issuer may not issue new
Notes to replace Notes that it has paid or that have been delivered to the
Trustee for cancellation.

 

Section 2.12                                         Defaulted
Interest.

 

If the Issuer defaults in a payment of interest on
the Notes, it shall pay the defaulted interest in any lawful manner plus, to
the extent lawful, interest payable on the defaulted interest to the Persons
who are Holders on a subsequent special record date, in each case at the rate
provided in the Notes and in Section 4.01 hereof.  The Issuer shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note
and the date of the proposed payment, and at the same time the Issuer shall
deposit with the Trustee an amount of money equal to the aggregate amount proposed
to be paid in respect of such defaulted interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such defaulted interest as provided in this Section 2.12.  The Trustee shall fix or cause to be fixed
each such special record date and payment date; provided that no such special
record date shall be less than 10 days prior to the related payment date for
such defaulted interest.  The Trustee shall
promptly notify the Issuer of such special record date.  At least 15 days before the special record
date, the Issuer (or, upon the written request of the Issuer, the Trustee in
the name and at the expense of the Issuer) shall mail or cause to be mailed,
first-class postage prepaid, to each Holder a notice at his or her address as
it appears in the Note Register that states the special record date, the
related payment date and the amount of such interest to be paid.

 

Subject to the foregoing provisions of this Section 2.12
and for greater certainty, each Note delivered under this Indenture upon
registration of transfer of or in exchange for or in lieu of any other Note
shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Note.

 

Section 2.13                                          CUSIP Numbers.

 

The Issuer in issuing the Notes 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, that any such
notice may state that no representation is made as to the correctness of such
numbers either as printed on the Notes or as contained in any notice of
redemption and that reliance may be placed only on the other identification
numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such numbers. 
The Issuer will as promptly as practicable notify the Trustee of any
change in the CUSIP numbers.

 

ARTICLE 3

 

REDEMPTION

 

Section 3.01                                         Notices to
Trustee.

 

If the Issuer elects to redeem Notes pursuant to Section 3.07
hereof, it shall furnish to the Trustee, at least five Business Days (or such
shorter period as may be acceptable to the Trustee) before notice of redemption
is required to be mailed or caused to be mailed to Holders pursuant to Section 3.03

 

53

 

hereof but not more than 60
days before a redemption date, an Officer’s Certificate setting forth (i) the
paragraph or subparagraph of such Note and/or Section of this Indenture
pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the
principal amount of the Notes to be redeemed and (iv) the redemption
price.

 

Section 3.02                                         Selection of
Notes to Be Redeemed or Purchased.

 

If less than all of the Notes are to be redeemed or
purchased in an offer to purchase at any time, the Trustee shall select the
Notes to be redeemed or purchased (a) if the Notes are listed on any national
securities exchange, in compliance with the requirements of the principal
national securities exchange on which the Notes are listed, (b) on a pro rata basis to the extent practicable or (c) by lot
or such other similar method in accordance with the procedures of DTC.  In the event of partial redemption or
purchase by lot, the particular Notes to be redeemed or purchased shall be
selected, unless otherwise provided herein, not less than 30 nor more than 60
days prior to the redemption date by the Trustee from the outstanding Notes not
previously called for redemption or purchase.

 

The Trustee shall promptly notify the Issuer in
writing of the Notes selected for redemption or purchase and, in the case of
any Note selected for partial redemption or purchase, the principal amount
thereof to be redeemed or purchased. 
Notes and portions of Notes selected shall be in amounts of $2,000 or
whole multiples of $1,000 in excess thereof; no Notes of $2,000 or less can be
redeemed in part, except that if all of the Notes of a Holder are to be
redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000, shall be redeemed or purchased.  Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or
purchase also apply to portions of Notes called for redemption or purchase.

 

Section 3.03                                         Notice of
Redemption.

 

Subject to Section 3.09 hereof, the Issuer
shall mail or cause to be mailed by first-class mail notices of redemption at
least 30 days but not more than 60 days before the redemption date to each
Holder of Notes to be redeemed at such Holder’s registered address, except that
redemption notices may be mailed more than 60 days prior to a redemption date
if the notice is issued in connection with Article 8 or Article 11
hereof.  Except as set forth in Section 3.07(c) and
Section 3.07(d) hereof, notices of redemption may not be conditional.

 

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

 

(a)           the redemption date;

 

(b)           the redemption price;

 

(c)           if any Note is to be redeemed in part only, the portion of
the principal amount of that Note that is to be redeemed and that, after the
redemption date upon surrender of such Note, a new Note or Notes in principal
amount equal to the unredeemed portion of the original Note representing the
same indebtedness to the extent not redeemed will be issued in the name of the
Holder of the Notes upon cancellation of the original Note;

 

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

 

54

 

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

 

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

 

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

 

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

 

(i)            if in connection with a redemption pursuant to Section 3.07(c) or
3.07(d) hereof, any condition to such redemption.

 

At the Issuer’s request, the Trustee shall give the
notice of redemption in the Issuer’s name and at its expense; provided
that the Issuer shall have delivered to the Trustee, at least five Business
Days before notice of redemption is required to be mailed or caused to be
mailed to Holders pursuant to this Section 3.03 (unless a shorter notice
shall be agreed to by the Trustee), an Officer’s Certificate requesting that
the Trustee give such notice and setting forth the information to be stated in
such notice as provided in the preceding paragraph.

 

Section 3.04                                         Effect of Notice
of Redemption.

 

Once notice of redemption is mailed in accordance
with Section 3.03 hereof, Notes called for redemption become irrevocably
due and payable on the redemption date at the redemption price (except as
provided for in Section 3.07(c) and 3.07(d) hereof).  The notice, if mailed in a manner herein provided,
shall be conclusively presumed to have been given, whether or not the Holder
receives such notice.  In any case,
failure to give such notice by mail or any defect in the notice to the Holder
of any Note designated for redemption in whole or in part shall not affect the
validity of the proceedings for the redemption of any other Note.  Subject to Section 3.05 hereof, on and
after the redemption date, interest ceases to accrue on Notes or portions of
Notes called for redemption.

 

Section 3.05                                         Deposit of
Redemption or Purchase Price.

 

Prior to 10:00 a.m. (New York City time) on the
redemption or purchase date, the Issuer shall deposit with the Trustee or with
the Paying Agent money sufficient to pay the redemption or purchase price of
and accrued and unpaid interest (including Additional Interest, if any) on all
Notes to be redeemed or purchased on that date. 
The Trustee or the Paying Agent shall promptly return to the Issuer any
money deposited with the Trustee or the Paying Agent by the Issuer in excess of
the amounts necessary to pay the redemption price of, and accrued and unpaid
interest on, all Notes to be redeemed or purchased.

 

If the Issuer complies with the provisions of the
preceding paragraph, on and after the redemption or purchase date, interest
shall cease to accrue on the Notes or the portions of Notes called for
redemption or purchase.  If a Note is
redeemed or purchased on or after a Record Date but on or prior to the related
Interest Payment Date, then any accrued and unpaid interest to the redemption
or purchase date shall be paid to the Person in whose name such Note was
registered at the close of business on such Record Date.  If any Note called for redemption or purchase
shall not be so paid upon surrender for

 

55

 

redemption or purchase because
of the failure of the Issuer to comply with the preceding paragraph, interest
shall be paid on the unpaid principal, from the redemption or purchase date
until such principal is paid, and to the extent lawful on any interest accrued
to the redemption or purchase date not paid on such unpaid principal, in each
case at the rate provided in the Notes and in Section 4.01 hereof.

 

Section 3.06              Notes Redeemed or Purchased
in Part.

 

Upon surrender of a Note that is redeemed or purchased
in part, the Issuer shall issue and the Trustee shall authenticate for the
Holder at the expense of the Issuer a new Note equal in principal amount to the
unredeemed or unpurchased portion of the Note surrendered representing the same
indebtedness to the extent not redeemed or purchased; provided that each
new Note will be in a principal amount of $2,000 or an integral multiple of
$1,000 in excess thereof.  It is
understood that, notwithstanding anything in this Indenture to the contrary,
only an Authentication Order and not an Opinion of Counsel or Officer’s Certificate
is required for the Trustee to authenticate such new Note.

 

Section 3.07              Optional Redemption.

 

(a)           At any time prior to December 15, 2013, the
Issuer may redeem all or a part of the Notes, upon not less than 30 nor more
than 60 days’ prior notice mailed by first-class mail to the registered address
of each Holder of Notes, at a redemption price equal to 100% of the principal
amount of the Notes redeemed plus the Applicable Premium as of, and accrued and
unpaid interest and Additional Interest, if any, to the date of redemption (the
“Redemption Date”),
subject to the rights of Holders of Notes on the relevant Record Date to
receive interest due on the relevant Interest Payment Date.

 

(b)           Until December 15, 2012, the Issuer may, at its
option, on one or more occasions redeem up to 35% of the aggregate principal
amount of Notes at a redemption price equal to 109.750% of the aggregate
principal amount thereof, plus accrued and unpaid interest thereon and
Additional Interest, if any, to the applicable Redemption Date, subject to the
right of Holders of Notes of record on the relevant Record Date to receive
interest due on the relevant Interest Payment Date, with the net cash proceeds
of one or more Equity Offerings; provided
that at least 65% of the original aggregate principal amount of Notes issued under
this Indenture remains outstanding immediately after the occurrence of each
such redemption; provided  further that each such
redemption occurs within 90 days of the date of closing of each such Equity
Offering.  Notice of any redemption upon
any Equity Offering may be given prior to the redemption thereof, and any such
redemption or notice may, at the Issuer’s discretion, be subject to one or more
conditions precedent, including, but not limited to, completion of the related
Equity Offering.

 

Notice of any redemption upon any Equity Offering
may be given prior to the redemption thereof, and any such redemption or notice
may, at the Issuer’s discretion, be subject to one or more conditions
precedent, including, but not limited to, completion of the related Equity
Offering.

 

(c)           On and after December 15, 2013, the Issuer may
redeem the Notes, in whole or in part, upon not less than 30 nor more than 60
days’ prior notice by first-class mail, postage prepaid, with a copy to the
Trustee, to each Holder of Notes at the address of such Holder appearing in the
security register, at the redemption prices (expressed as percentages of
principal amount of the Notes to be redeemed) set forth below, plus accrued and
unpaid interest thereon and Additional Interest, if any, to the applicable
Redemption Date, subject to the right of Holders of Notes of record on the
relevant Record Date to receive interest due on the relevant Interest Payment
Date, if redeemed during the twelve-month period beginning on December 15
of each of the years indicated below:

 

56

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2013

  	
   

  	
  104.875

  	
  %

  
	
  2014

  	
   

  	
  102.438

  	
  %

  
	
  2015 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

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

 

Section 3.08              Mandatory Redemption.

 

The Issuer shall not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.

 

Section 3.09              Offers to Repurchase by
Application of Excess Proceeds.

 

(a)           In the event that, pursuant
to Section 4.10 hereof, the Issuer shall be required to commence an Asset
Sale Offer, it shall follow the procedures specified below.

 

(b)           The Asset Sale Offer shall
remain open for a period of 20 Business Days following its commencement and no
longer, except to the extent that a longer period is required by applicable law
(the “Offer Period”).  No later than
five Business Days after the termination of the Offer Period (the “Purchase
Date”), the Issuer shall apply all Excess Proceeds (the “Offer Amount”)
to the purchase of Notes and such Other Second Lien Obligations or Pari Passu
Indebtedness, as applicable, or, if less than the Offer Amount has been
tendered, all Notes and such Other Second Lien Obligations or Pari Passu
Indebtedness, as applicable, tendered in response to the Asset Sale Offer.  Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

 

(c)           If the Purchase Date is on
or after a Record Date and on or before the related Interest Payment Date, any
accrued and unpaid interest and Additional Interest, if any, up to but excluding
the Purchase Date, shall be paid to the Person in whose name a Note is
registered at the close of business on such Record Date, and no additional
interest shall be payable to Holders who tender Notes pursuant to the Asset
Sale Offer.

 

(d)           Upon the commencement of an
Asset Sale Offer, the Issuer shall send, by first-class mail, a notice to each
of the Holders, with a copy to the Trustee. The notice shall contain all instructions
and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer.  The Asset Sale Offer
shall be made to all Holders and holders of Other Second Lien Obligations or
Pari Passu Indebtedness, as applicable. 
The notice, which shall govern the terms of the Asset Sale Offer, shall
state:

 

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

 

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

 

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

 

57

 

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

 

(v)           that Holders
electing to have a Note purchased pursuant to an Asset Sale Offer may elect to
have Notes purchased only in a minimum amount of $2,000 and in integral
multiples of $1,000 in excess thereof;

 

(vi)          that Holders
electing to have a Note purchased pursuant to any Asset Sale Offer shall be
required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” attached to the Note completed, or transfer by book-entry
transfer, to the Issuer, the Depositary, if appointed by the Issuer, or a
Paying Agent at the address specified in the notice at least three days before
the Purchase Date;

 

(vii)         that Holders
shall be entitled to withdraw their election if the Issuer, the Depositary 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 Note the Holder delivered
for purchase and a statement that such Holder is withdrawing his election to
have such Note purchased;

 

(viii)        that, if the
aggregate principal amount of Notes and Other Second Lien Obligations or Pari
Passu Indebtedness, as applicable, surrendered by the holders thereof exceeds
the Offer Amount, the Trustee shall select the Notes and such Other Second Lien
Obligations or Pari Passu Indebtedness, as applicable, to be purchased on a pro rata basis based on the accreted value or principal
amount of the Notes or such Other Second Lien Obligations or Pari Passu
Indebtedness, as applicable, tendered (with such adjustments as may be deemed
appropriate by the Trustee so that only Notes in denominations of $2,000, or integral
multiples of $1,000 in excess thereof, shall be purchased); and

 

(ix)           that Holders
whose Notes were purchased only in part shall be issued new Notes equal in
principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer) representing the same indebtedness to the
extent not repurchased.

 

(e)           On or before the Purchase Date,
the Issuer shall, to the extent lawful, (1) accept for payment, on a pro rata basis to the extent necessary, the Offer Amount of
Notes or portions thereof validly tendered pursuant to the Asset Sale Offer, or
if less than the Offer Amount has been tendered, all Notes tendered and (2) deliver
or cause to be delivered to the Trustee the Notes properly accepted together
with an Officer’s Certificate stating the aggregate principal amount of Notes
or portions thereof so tendered.

 

(f)            The Issuer, the Depositary
or the Paying Agent, as the case may be, shall promptly mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes properly
tendered by such Holder and accepted by the Issuer for purchase, and the Issuer
shall promptly issue a new Note, and the Trustee, upon receipt of an
Authentication Order, shall authenticate and mail or deliver (or cause to be
transferred by book-entry) such new Note to such Holder (it being understood
that, notwithstanding anything in this Indenture to the contrary, no Opinion of
Counsel or Officer’s Certificate is required for the Trustee to authenticate
and mail or deliver such new Note) in a principal amount equal to any
unpurchased portion of the Note surrendered representing the same indebtedness
to the extent not repurchased; provided, that each such new Note shall
be in a principal amount of $2,000 or an integral multiple of $1,000 in excess
thereof.  Any Note not so accepted shall
be promptly mailed or delivered by 

 

58

 

the Issuer to the Holder thereof.  The Issuer shall publicly announce the
results of the Asset Sale Offer on or as soon as practicable after the Purchase
Date.

 

Other than as specifically provided in this Section 3.09
or Section 4.10 hereof, any purchase pursuant to this Section 3.09
shall be made pursuant to the applicable provisions of Sections 3.01 through
3.06 hereof.

 

ARTICLE
4

 

COVENANTS

 

Section 4.01              Payment of Notes.

 

The Issuer shall pay or cause to be paid the
principal of, premium, if any, Additional Interest, if any, and interest on the
Notes on the dates and in the manner provided in the Notes.  Principal, premium, if any, Additional
Interest, if any, and interest shall be considered paid on the date due if the
Paying Agent, if other than the Issuer or a Subsidiary, holds as of noon Eastern
Time on the due date money deposited by the Issuer in immediately available
funds and designated for and sufficient to pay all principal, premium, if any,
and interest then due.

 

The Issuer shall pay all Additional Interest, if
any, in the same manner on the dates and in the amounts set forth in the
Registration Rights Agreement.

 

The Issuer shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal at the rate equal to the then applicable interest rate on the Notes
to the extent lawful; it shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue installments of interest
and Additional Interest (without regard to any applicable grace period) at the
same rate to the extent lawful.

 

Section 4.02              Maintenance of Office or
Agency.

 

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

 

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

 

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

 

59

 

Section 4.03              Reports and Other
Information.

 

(a)           Regardless of whether the Issuer remains subject to
the reporting requirements of Section 13 or 15(d) of the Exchange Act
or otherwise reports on an annual and quarterly basis on forms provided for
such annual and quarterly reporting pursuant to rules and regulations
promulgated by the SEC, the Issuer shall file with the SEC (and make available
to the Trustee and Holders of the Notes (without exhibits), without cost to any
Holder, within 15 days after the Issuer files them with the SEC) from and
after the Issue Date,

 

(1)           within 90 days (or any other time period then
in effect under the rules and regulations of the Exchange Act with respect
to the filing of a Form 10-K by a non-accelerated filer) after the end of
each fiscal year, annual reports on Form 10-K, or any successor or
comparable form, containing the information required to be contained therein,
or required in such successor or comparable form;

 

(2)           within 45 days after the end of each of the
first three fiscal quarters of each fiscal year, reports on Form 10-Q
containing all quarterly information that would be required to be contained in Form 10-Q,
or any successor or comparable form;

 

(3)           promptly from time to time after the occurrence of
an event required to be therein reported, such other reports on Form 8-K,
or any successor or comparable form; and

 

(4)           any other information, documents and other reports
which the Issuer would be required to file with the SEC if it were subject to Section 13
or 15(d) of the Exchange Act;

 

in each case, in a manner that complies in
all material respects with the requirements specified in such form; provided that the Issuer shall
not be so obligated to file such reports with the SEC if the SEC does not
permit such filing, in which event the Issuer shall make available such
information to prospective purchasers of Notes, in addition to providing such information
to the Trustee and the Holders of the Notes, in each case within 15 days
after the time the Issuer would be required to file such information with the
SEC, if it were subject to Sections 13 or 15(d) of the Exchange
Act.  To the extent not satisfied by the
foregoing, the Issuer shall agree that, for so long as any Notes are
outstanding, it shall furnish to Holders and to securities analysts and
prospective investors, upon their request, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act.

 

(b)           Notwithstanding anything herein to the contrary, the
Issuer shall not be deemed to have failed to comply with any of its agreements
hereunder for purposes of Section 6.01(a)(3)(c) hereof until
120 days after the date any information or report hereunder is required to
be furnished to Holders of Notes or filed with the SEC pursuant to this covenant.

 

Delivery of such reports, information and documents
to the Trustee is for informational purposes only and the Trustee’s receipt of
such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Issuer’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officer’s Certificates).

 

60

 

Section 4.04              Compliance Certificate.

 

(a)           The Issuer and each
Guarantor (to the extent that such Guarantor is so required under the Trust
Indenture Act) shall deliver to the Trustee, within 90 days after the end of
each fiscal year ending after the Issue Date, a certificate from the principal
executive officer, principal financial officer or principal accounting officer
stating that a review of the activities of the Issuer and its Restricted Subsidiaries
during the preceding fiscal year has been made under the supervision of the
signing Officer with a view to determining whether the Issuer has kept,
observed, performed and fulfilled its obligations under this Indenture, and
further stating, as to such Officer signing such certificate, that to the best
of his or her knowledge the Issuer has kept, observed, performed and fulfilled
each and every condition and covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions,
covenants and conditions of this Indenture (or, if a Default shall have occurred,
describing all such Defaults of which he or she may have knowledge and what
action the Issuer is taking or proposes to take with respect thereto).

 

(b)           When any Default has
occurred and is continuing under this Indenture, or if the Trustee or the
holder of any other evidence of Indebtedness of the Issuer or any Subsidiary
gives any notice or takes any other action with respect to a claimed Default,
the Issuer shall promptly (which shall be no more than 10 days) deliver to
the Trustee by registered or certified mail or by facsimile transmission an
Officer’s Certificate specifying such event and what action the Issuer proposes
to take with respect thereto.

 

Section 4.05              Taxes.

 

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

 

Section 4.06              Stay, Extension and Usury
Laws.

 

The Issuer and each of the Guarantors covenant (to
the extent that they may lawfully do so) that they shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer and each of the Guarantors (to the extent that they
may lawfully do so) hereby expressly waive all benefit or advantage of any such
law, and covenant that they shall not, by resort to any such law, hinder, delay
or impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law has
been enacted.

 

Section 4.07              Limitation on Restricted
Payments.

 

(a)           The Issuer shall not, and
shall not permit any of its Restricted Subsidiaries to, directly or indirectly:

 

(I)            declare or pay any dividend or make any payment or
distribution on account of the Issuer’s or any of its Restricted Subsidiaries’
Equity Interests, including any dividend or distribution payable in connection
with any merger or consolidation, other than:

 

61

 

(A)          dividends, payments or distributions by the
Issuer payable solely in Equity Interests (other than Disqualified Stock) of
the Issuer; or

 

(B)           dividends, payments or distributions by a
Restricted Subsidiary so long as, in the case of any dividend, payment or
distribution payable on or in respect of any class or series of securities
issued by a Restricted Subsidiary that is not a Wholly Owned Subsidiary, the Issuer
or a Restricted Subsidiary receives at least its pro rata share of such
dividend, payment or distribution in accordance with its Equity Interests in
such class or series of securities;

 

(II)           purchase, redeem, defease or otherwise acquire or
retire for value any Equity Interests of the Issuer or any direct or indirect
parent of the Issuer, including in connection with any merger or consolidation;

 

(III)         make any principal payment on, or redeem,
repurchase, defease or otherwise acquire or retire for value or give any
irrevocable notice of redemption with respect thereto, in each case, prior to
any scheduled repayment, sinking fund payment or maturity, any Unsecured Indebtedness,
other than:

 

(A)          Indebtedness permitted under clauses (4),
(5), (7), (8), (18) and (19) of Section 4.09(b) hereof;

 

(B)           the purchase, repurchase or other acquisition
of Unsecured Indebtedness purchased in anticipation of satisfying a sinking
fund obligation, principal installment or final maturity, in each case due
within one year of the date of purchase, repurchase or acquisition;

 

(C)           the giving of an irrevocable notice of
redemption with respect to the transactions described in clauses (2) and (3) of
Section 4.07(b) hereof; or

 

(D)          the prepayment of obligations that are
revolving in nature to the extent not accompanied by a commitment reduction; 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 such
Restricted Payment:

 

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

 

(2)           immediately after giving effect to such transaction
on a pro forma basis, the Issuer
could incur $1.00 of additional Indebtedness under Section 4.09(a) hereof;
and

 

(3)           such Restricted Payment, together with the aggregate
amount of all other Restricted Payments made by the Issuer and its Restricted
Subsidiaries after the Issue Date (including Restricted Payments permitted by
clauses (1), (7) and (9) of Section 4.07(b) hereof, but
excluding all other Restricted Payments permitted by Section 4.07(b) hereof),
is less than the sum of (without duplication):

 

62

 

(a)           50% of the Consolidated Net Income of the
Issuer for the period (taken as one accounting period) beginning January 1,
2010 to the end of the Issuer’s most recently ended fiscal quarter for which
internal financial statements are available at the time of such Restricted
Payment, or, in the case such Consolidated Net Income for such period is a
deficit, minus 100% of such deficit; plus

 

(b)           100% of the aggregate net cash proceeds and
the fair market value of marketable securities or other property received by
the Issuer since immediately after the Issue Date from the sale of:

 

(i)            Equity
Interests of the Issuer, including Treasury Capital Stock, but excluding cash
proceeds and the fair market value of marketable securities or other property
received from the sale of Equity Interests to members of management, directors
or consultants of the Issuer, any direct or indirect parent company of the
Issuer and the Issuer’s Subsidiaries after the Issue Date to the extent such
amounts have been applied to Restricted Payments made in accordance with
clause (4) of Section 4.07(b) hereof; or

 

(ii)           debt
securities of the Issuer that have been converted into or exchanged for such
Equity Interests of the Issuer;

 

provided,
however, that this clause (b) shall not include
the proceeds from (X) Equity Interests or convertible debt securities of
the Issuer sold to a Restricted Subsidiary, as the case may be, or (Y) Disqualified
Stock or debt securities that have been converted into Disqualified Stock; plus

 

(c)           100% of the aggregate amount of cash and the
fair market value of marketable securities or other property contributed to the
capital of the Issuer following the Issue Date (other than by a Restricted
Subsidiary); plus

 

(d)           100% of the aggregate amount received in cash
and the fair market value of marketable securities or other property received
by means of:

 

(i)            the
sale or other disposition (other than to the Issuer or a Restricted Subsidiary)
of Restricted Investments made by the Issuer or its Restricted Subsidiaries and
repurchases and redemptions of such Restricted Investments from the Issuer or
its Restricted Subsidiaries and repayments of loans or advances, and releases
of guarantees, which constitute Restricted Investments by the Issuer or its
Restricted Subsidiaries, in each case after the Issue Date; or

 

(ii)           the
sale (other than to the Issuer or a Restricted Subsidiary) of the stock of an
Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary
(other than in each case to the extent the Investment in such Unrestricted
Subsidiary constituted a Permitted Investment) or a dividend from an Unrestricted
Subsidiary after the Issue Date; plus

 

(e)           in the case of the redesignation of an
Unrestricted Subsidiary as a Restricted Subsidiary after the Issue Date, the
fair market value of the Investment in such 

 

63

 

Unrestricted Subsidiary (which, if the fair
market value of such Investment may exceed $25.0 million, shall be set
forth in writing by an Independent Financial Advisor) at the time of the
redesignation of such Unrestricted Subsidiary as a Restricted Subsidiary, other
than an Unrestricted Subsidiary to the extent the Investment in such
Unrestricted Subsidiary constituted a Permitted Investment.

 

(b)           The foregoing provisions of Section 4.07(a) hereof
shall not prohibit:

 

(1)           the payment of any dividend or distribution or the
consummation of any irrevocable redemption within 60 days after the date
of declaration thereof or the giving of the irrevocable redemption notice, as
applicable, if at the date of declaration or notice such payment would have
complied with the provisions of this Indenture;

 

(2)           the redemption, repurchase, retirement or other
acquisition of any Equity Interests (“Treasury
Capital Stock”) or Unsecured Indebtedness of the Issuer in exchange
for, or out of the proceeds of the substantially concurrent sale (other than to
a Restricted Subsidiary) of, Equity Interests of the Issuer (in each case,
other than any Disqualified Stock); provided
that the amount of any such net cash proceeds that are utilized for any such
redemption, repurchase, retirement or other acquisition shall be excluded from
clause (3)(b) of Section 4.07(a) hereof;

 

(3)           the redemption, repurchase or other acquisition or
retirement of Unsecured Indebtedness of the Issuer or a Guarantor made by
exchange for, or out of the proceeds of the substantially concurrent sale of,
new Indebtedness of the Issuer or a Guarantor, as the case may be, which is
incurred in compliance with Section 4.09 hereof, so long as:

 

(a)           the principal amount (or accreted value, if
applicable) of such new Indebtedness does not exceed 105% of the principal
amount of (or accreted value, if applicable), plus any accrued and unpaid
interest on, the Unsecured Indebtedness being so redeemed, repurchased,
acquired or retired for value, plus the amount of any reasonable premium paid
(including reasonable tender premiums) and any reasonable fees and expenses
incurred in connection with the issuance of such new Indebtedness;

 

(b)           such new Indebtedness is Unsecured
Indebtedness;

 

(c)           such new Indebtedness has a final scheduled
maturity date equal to or later than the final scheduled maturity date of the
Unsecured Indebtedness being so redeemed, repurchased, acquired or retired; and

 

(d)           such new Indebtedness has a Weighted Average
Life to Maturity equal to or greater than the remaining Weighted Average Life
to Maturity of the Unsecured Indebtedness being so redeemed, repurchased, acquired
or retired;

 

(4)           a Restricted Payment to pay for the repurchase,
retirement or other acquisition or retirement for value of Equity Interests of
the Issuer held by any future, present or former employee, director or
consultant of the Issuer, any of its Subsidiaries or any of its direct or
indirect parent companies pursuant to any management equity plan or stock
option plan or any other management or employee benefit plan or agreement; provided, however, that the aggregate
Restricted Payments made under this clause (4) do not exceed
$3.0 million in any twelve-month period (with unused amounts in any
twelve-month period being carried over to the succeeding 

 

64

 

twelve-month period); provided  further that such amount in any twelve-month period may
be increased by an amount not to exceed:

 

(a)           the cash proceeds from the sale of Equity
Interests (other than Disqualified Stock) of the Issuer to members of
management, directors or consultants of the Issuer or any of its Subsidiaries
that occurs after the Issue Date, to the extent the cash proceeds from the sale
of such Equity Interests have not otherwise been applied to the payment of
Restricted Payments by virtue of clause (3) of Section 4.07(a) hereof;
plus

 

(b)           the cash proceeds of key man life insurance
policies received by the Issuer or its Restricted Subsidiaries after the Issue
Date; less

 

(c)           the amount of any Restricted Payments made in
any prior fiscal year pursuant to clauses (a) and (b) of this
clause (4);

 

(5)           the declaration and payment of dividends to holders
of any class or series of Disqualified Stock or Preferred Stock of the Issuer
or any of its Restricted Subsidiaries issued in accordance with Section 4.09
hereof to the extent such dividends are included in the definition of “Fixed
Charges”;

 

(6)           repurchases of Equity Interests deemed to occur upon
exercise of stock options or warrants if such Equity Interests represent a
portion of the exercise price of such options or warrants;

 

(7)           other Restricted Payments in an aggregate amount
taken together with all other Restricted Payments made pursuant to this
clause (7) not to exceed $20.0 million;

 

(8)           any Restricted Payment used to fund the Transaction
and the fees and expenses related thereto or owed to Affiliates, in each case
to the extent described in the Offering Circular or permitted by Section 4.11
hereof;

 

(9)           the repurchase, redemption or other acquisition or
retirement for value of any Unsecured Indebtedness required in accordance with
provisions applicable thereto similar to those described under Sections 4.10
and Section 4.14 hereof; provided
that all Notes tendered by Holders in connection with a Change of Control
Offer or Asset Sale Offer, as applicable, have been repurchased, redeemed or
acquired for value;

 

(10)         any Investment made by the exchange for, or out of
the proceeds of, a capital contribution in respect of, or the substantially
concurrent sale of, Capital Stock (other than Disqualified Stock) of the Issuer
to the extent the net cash proceeds thereof are received by the Issuer; provided that the
amount of any such net cash proceeds that are used for any such Investment shall
be excluded from clause (3)(b) of Section 4.07(a) hereof;
and

 

(11)         distributions or payments of Receivables Fees.

 

provided, however, that at the time of, and
after giving effect to, any Restricted Payment permitted under clauses (7) and
(11) of this Section 4.07(b), no Default shall have occurred and be
continuing or would occur as a consequence thereof.

 

65

 

(c)           The Issuer shall not permit
any Unrestricted Subsidiary to become a Restricted Subsidiary except pursuant
to the last sentence of the definition of “Unrestricted Subsidiary.”  For purposes of designating any Restricted
Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by the
Issuer and its Restricted Subsidiaries (except to the extent repaid) in the
Subsidiary so designated shall be deemed to be Restricted Payments in an amount
determined as set forth in the last sentence of the definition of “Investment.”  Such designation shall be permitted only if a
Restricted Payment in such amount would be permitted at such time, whether
pursuant to Section 4.07(a) hereof or under clause (7) of Section 4.07(b) hereof
or pursuant to the definition of “Permitted Investments,” and if such Subsidiary
otherwise meets the definition of an Unrestricted Subsidiary.

 

Section 4.08              Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries.

 

(a)           The Issuer shall not, and
shall not permit any of its Restricted Subsidiaries that are not Guarantors to,
directly or indirectly, create or otherwise cause to become effective any
consensual encumbrance or consensual restriction on the ability of any such Restricted
Subsidiary to:

 

(1)           (A) pay dividends or make any other
distributions to the Issuer or any of the Restricted Subsidiaries on its Capital
Stock or with respect to any other interest or participation in, or measured
by, its profits, or

 

(B)           pay any Indebtedness owed to
the Issuer or any of the Restricted Subsidiaries;

 

(2)           make loans or advances to the Issuer or any of the
Restricted Subsidiaries; or

 

(3)           sell, lease or transfer any of its properties or
assets to the Issuer or any of the Restricted Subsidiaries,

 

(b)           The restrictions in Section 4.08(a) hereof
shall not apply except (in each case) for such encumbrances or restrictions
existing under or by reason of:

 

(1)           contractual encumbrances or restrictions in effect
on the Issue Date, including pursuant to the Senior Credit Facility and the
related documentation;

 

(2)           this Indenture, the Notes and the Guarantees;

 

(3)           purchase money obligations for property acquired in
the ordinary course of business that impose restrictions of the nature
discussed in clause (3) of Section 4.08(a) hereof on the
property so acquired;

 

(4)           applicable law or any applicable rule, regulation or
order;

 

(5)           any agreement or other instrument of a Person
acquired by the Issuer or any of its Restricted Subsidiaries in existence at
the time of such acquisition (but not created in contemplation thereof), which
encumbrance or restriction is not applicable to any Person, or the properties
or assets of any Person, other than the Person and its Subsidiaries, or the
property or assets of the Person and its Subsidiaries, so acquired;

 

66

 

(6)           contracts for the sale of assets, including
customary restrictions with respect to a Subsidiary of the Issuer pursuant to
an agreement that has been entered into for the sale or disposition of all or
substantially all of the Capital Stock or assets of such Subsidiary, that
impose restrictions on the assets to be sold;

 

(7)           Secured Indebtedness otherwise permitted to be
incurred pursuant to Section 4.09 hereof and Section 4.12 hereof that
limit the right of the debtor to dispose of the assets securing such
Indebtedness;

 

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

 

(9)           other Indebtedness, Disqualified Stock or Preferred
Stock of Foreign Subsidiaries permitted to be incurred subsequent to the Issue
Date pursuant to the provisions of Section 4.09 hereof that impose
restriction solely on Foreign Subsidiaries party thereto;

 

(10)         customary provisions in joint venture agreements and
other similar agreements relating solely to such joint venture;

 

(11)         customary provisions contained in leases or licenses
of intellectual property and other agreements, in each case, entered into in
the ordinary course of business;

 

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

 

(13)         any instrument governing any Indebtedness or Capital
Stock of any Unrestricted Subsidiary as in effect on the date, if any, that such
Unrestricted Subsidiary is redesignated as a Restricted Subsidiary; provided that such encumbrance or
restriction is not applicable to any Person, or to the property or assets of
any Person, other than such redesignated Restricted Subsidiary and its Subsidiaries
(immediately prior to such redesignation) and their respective properties and assets;

 

(14)         agreements governing Indebtedness permitted to be
incurred under Section 4.09 hereof; provided that the Issuer determines in good faith (which
determination shall be conclusive) that such encumbrances and restrictions are
no more restrictive with respect to such encumbrance and other restrictions
taken as a whole than those included in agreements governing Indebtedness existing
on the Issue Date; and

 

(15)         any encumbrances or restrictions of the type
referred to in clauses (1), (2) and (3) of Section 4.08(a) hereof
imposed by any amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings of the contracts, instruments
or obligations referred to in clauses (1) through (14) of this Section 4.08(b);
provided  that such
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings are, in the good faith judgment of the
Issuer, no more restrictive with respect to such encumbrance and other
restrictions taken as a whole than those prior to such amendment, modification,
restatement, renewal, increase, supplement, refunding, replacement or
refinancing.

 

67

 

Section 4.09              Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock.

 

(a)           The Issuer shall not, and
shall not permit any of the Restricted Subsidiaries to, directly or indirectly,
create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable, contingently or otherwise (collectively, “incur” and
collectively, an “incurrence”) with respect to any Indebtedness
(including Acquired Indebtedness) and the Issuer shall not issue any shares of
Disqualified Stock and shall not permit any Restricted Subsidiary to issue any
shares of Disqualified Stock or Preferred Stock; provided, however,
that the Issuer may incur Indebtedness (including Acquired Indebtedness) or
issue shares of Disqualified Stock, and any Guarantor may incur Indebtedness
(including Acquired Indebtedness), issue shares of Disqualified Stock and issue
shares of Preferred Stock, if the Fixed Charge Coverage Ratio on a consolidated
basis for the Issuer and its Restricted Subsidiaries’ most recently ended four
fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is
incurred or such Disqualified Stock or Preferred Stock is issued would have
been at least 2.00 to 1.00, determined on a pro
forma basis (including a pro
forma application of the net proceeds therefrom), as if the
additional Indebtedness had been incurred, or the Disqualified Stock or
Preferred Stock had been issued, as the case may be, and the application of proceeds
therefrom had occurred at the beginning of such four-quarter period.

 

(b)           The provisions of Section 4.09(a) hereof
shall not apply to:

 

(1)           the incurrence of Indebtedness under Credit
Facilities by the Issuer or any of its Restricted Subsidiaries and the issuance
and creation of letters of credit and bankers’ acceptances thereunder (with
letters of credit and bankers’ acceptances being deemed to have a principal
amount equal to the face amount thereof), up to an aggregate principal amount,
taken together with any amounts outstanding to a Receivables Subsidiary in a
Qualified Receivables Transaction, of $480.0 million outstanding at any
one time, less the sum of all principal payments on Indebtedness outstanding
under this clause (1) that are either required to be paid as a result of a
sale of a Designated Business in calculating the Net Proceeds from such Asset
Sale or that are otherwise paid from the Net Proceeds of a sale of a Designated
Business pursuant to clause (1) of Section 4.10(b) hereof;

 

(2)           the incurrence by the Issuer and any Guarantor of
Indebtedness represented by the Notes (including any Guarantee) (other than any
Additional Notes);

 

(3)           Indebtedness of the Issuer and its Restricted
Subsidiaries in existence on the Issue Date (other than Indebtedness described
in clause (1) of this Section 4.09(b);

 

(4)           Indebtedness (including Capitalized Lease
Obligations), Disqualified Stock and Preferred Stock incurred by the Issuer or
any of its Restricted Subsidiaries to finance the purchase, lease or improvement
of property (real or personal) or equipment (other than software) that is used
or useful in a Similar Business, whether through the direct purchase of
assets or the Capital Stock of any Person owning such assets (“Capital Spending”)
in an aggregate principal amount not to exceed $5.0 million in any
twelve-month period (with unused amounts in any twelve-month period being
carried over to the succeeding twelve-month period) and any refinancings of
Indebtedness (including Capitalized Lease Obligations), Disqualified Stock and
Preferred Stock incurred by the Issuer or any of its Restricted Subsidiaries
pursuant to this clause (4);

 

68

 

(5)           Indebtedness incurred by the Issuer or any of its
Restricted Subsidiaries constituting reimbursement obligations with respect to
letters of credit issued in the ordinary course of business, including letters
of credit in respect of workers’ compensation claims, or other Indebtedness
with respect to reimbursement type obligations regarding workers’ compensation
claims; provided, however, that such letters of
credit are not drawn;

 

(6)           Indebtedness arising from agreements of the Issuer
or its Restricted Subsidiaries 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 Indebtedness 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, that the
maximum assumable liability in respect of all such Indebtedness shall at no
time exceed the gross proceeds including non-cash proceeds (the fair market
value of such non-cash proceeds being measured at the time received and without
giving effect to any subsequent changes in value) actually received by the
Issuer and its Restricted Subsidiaries in connection with such disposition;

 

(7)           Indebtedness of the Issuer to a Restricted
Subsidiary; provided
that any such Indebtedness owing to a Restricted Subsidiary that is not a
Guarantor is expressly subordinated in right of payment to the Notes; provided  further that any subsequent issuance or transfer of any
Capital Stock or any other event which results in any such other Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent
transfer of any such Indebtedness (except to the Issuer or another Restricted
Subsidiary or any pledge of such Indebtedness constituting a Permitted Lien)
shall be deemed, in each case, to be an incurrence of such Indebtedness not permitted
by this clause (7);

 

(8)           Indebtedness of a Restricted Subsidiary to the
Issuer or another Restricted Subsidiary; provided that if a Guarantor incurs such Indebtedness to a
Restricted Subsidiary that is not a Guarantor, such Indebtedness is expressly
subordinated in right of payment to the Guarantee of the Notes of such
Guarantor; provided  further that any subsequent
issuance or transfer of any Capital Stock or any other event which results in
any such other Restricted Subsidiary ceasing to be a Restricted Subsidiary or
any subsequent transfer of any such Indebtedness (except to the Issuer or
another Restricted Subsidiary or any pledge of such Indebtedness constituting a
Permitted Lien) shall be deemed, in each case, to be an incurrence of such
Indebtedness not permitted by this clause (8);

 

(9)           shares of Preferred Stock of a Restricted Subsidiary
issued to the Issuer or another Restricted Subsidiary; provided that any subsequent
issuance or transfer of any Capital Stock or any other event which results in
any such other Restricted Subsidiary ceasing to be a Restricted Subsidiary or
any other subsequent transfer of any such shares of Preferred Stock (except to
the Issuer or another of its Restricted Subsidiaries) shall be deemed in each
case to be an issuance of such shares of Preferred Stock not permitted by this
clause (9);

 

(10)         Hedging Obligations (excluding Hedging Obligations
entered into for speculative purposes) for the purpose of limiting interest
rate risk, exchange rate risk or commodity pricing risk;

 

69

 

(11)         obligations in respect of performance, bid, appeal
and surety bonds and completion guarantees provided by the Issuer or any of its
Restricted Subsidiaries in the ordinary course of business;

 

(12)         Indebtedness or Disqualified Stock of the Issuer and
Indebtedness, Disqualified Stock or Preferred Stock of the Issuer or any
Restricted Subsidiary not otherwise permitted hereunder in an aggregate
principal amount or liquidation preference which, when aggregated with the
principal amount and liquidation preference of all other Indebtedness,
Disqualified Stock and Preferred Stock then outstanding and incurred pursuant
to this clause (12), does not at any one time outstanding exceed
$35.0 million;

 

(13)         the incurrence by the Issuer or any Restricted
Subsidiary of the Issuer of Indebtedness, Disqualified Stock or Preferred Stock
which serves to refund or refinance any Indebtedness, Disqualified Stock or
Preferred Stock incurred as permitted under Section 4.09(a) hereof
and clauses (2) and (3) of this Section 4.09(b), this
clause (13) and clause (14) of this Section 4.09(b) or any
Indebtedness, Disqualified Stock or Preferred Stock issued to so refund or
refinance such Indebtedness, Disqualified Stock or Preferred Stock including
additional Indebtedness, Disqualified Stock or Preferred Stock incurred to pay
premiums (including reasonable tender premiums), defeasance costs
and fees in connection therewith (the “Refinancing Indebtedness”) prior
to its respective maturity; provided,
however, that such
Refinancing Indebtedness:

 

(A)          has a Weighted Average Life to Maturity at
the time such Refinancing Indebtedness is incurred which is not less than the
remaining Weighted Average Life to Maturity of the Indebtedness, Disqualified
Stock or Preferred Stock being refunded or refinanced,

 

(B)           to the extent such Refinancing Indebtedness
refinances (i) Unsecured Indebtedness or constitutes Other Second Lien
Obligations, such Refinancing Indebtedness also constitutes Unsecured
Indebtedness or constitutes Other Second Lien Obligations, as the case may be,
or (ii) Disqualified Stock or Preferred Stock, such Refinancing Indebtedness
must be Disqualified Stock or Preferred Stock, respectively, and

 

(C)           shall not include:

 

(i)            Indebtedness,
Disqualified Stock or Preferred Stock of a Subsidiary of the Issuer that is not
a Guarantor that refinances Indebtedness, Disqualified Stock or Preferred Stock
of the Issuer; or

 

(ii)           Indebtedness,
Disqualified Stock or Preferred Stock of a Subsidiary of the Issuer, that is
not a Guarantor that refinances Indebtedness, Disqualified Stock or Preferred
Stock of a Guarantor;

 

(14)         Indebtedness, Disqualified Stock or Preferred Stock
of (x) the Issuer or a Guarantor incurred to finance an acquisition or (y) Persons
that are acquired by the Issuer or any Guarantor or merged into the Issuer or a
Guarantor in accordance with the terms of this Indenture; provided that
after giving pro forma effect
to such acquisition or merger, either

 

70

 

(a)           the Issuer would be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test set forth in Section 4.09(a) hereof, or

 

(b)           the Fixed Charge Coverage Ratio of the Issuer
and the Restricted Subsidiaries is greater than immediately prior to such
acquisition or merger;

 

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

 

(16)         Indebtedness of the Issuer or any of its Restricted
Subsidiaries supported by a letter of credit issued pursuant to the Credit
Facilities, in a principal amount not in excess of the stated amount of such
letter of credit;

 

(17)         (a) any guarantee by the Issuer or a Restricted
Subsidiary of Indebtedness or other obligations of any Restricted Subsidiary so
long as the incurrence of such Indebtedness incurred by such Restricted Subsidiary
is permitted under the terms of this Indenture, or

 

(b)           any guarantee by a Restricted Subsidiary of
Indebtedness of the Issuer; provided
that such guarantee is incurred in accordance with Section 4.15 hereof;

 

(18)         Indebtedness of Foreign Subsidiaries if, at the time
of incurrence of such Indebtedness, and after giving effect thereto, the
aggregate principal amount of all Indebtedness of Foreign Subsidiaries incurred
pursuant to this clause (18) and then outstanding does not exceed the
greater of (x) $25.0 million and (y) an amount equal to the sum
of (i) 80% of the total consolidated book value of the accounts receivable
of the Foreign Subsidiaries and (ii) 60% of the consolidated book value of
the inventories of the Foreign Subsidiaries;

 

(19)         Indebtedness of the Issuer or any of its Restricted
Subsidiaries consisting of (i) the financing of insurance premiums or (ii) take-or-pay
obligations contained in supply arrangements in each case, incurred in the ordinary
course of business; and

 

(20)         the issuance and sale of Preferred Stock (a) by
a Foreign Subsidiary in lieu of the issuance of non-voting common stock if (i) the
laws of the jurisdiction of incorporation of such Subsidiary precludes the
issuance of non-voting common stock and (ii) the preferential rights afforded
to the holders of such Preferred Stock are limited to those customarily
provided for in such jurisdiction in respect of the issuance of non-voting
stock, (b) by a Restricted Subsidiary which is a joint venture with a
third party which is not an Affiliate of the Issuer or a Restricted Subsidiary,
and (c) by a Restricted Subsidiary pursuant to obligations with respect to
the issuance or sale of Preferred Stock which exist at the time such Person
becomes a Restricted Subsidiary and which were not created in connection with
or in contemplation of such Person becoming a Restricted Subsidiary.

 

(c)           For purposes of determining
compliance with this Section 4.09:

 

(1)           in the event that an item of Indebtedness,
Disqualified Stock or Preferred Stock (or any portion thereof) meets the
criteria of more than one of the categories of permitted 

 

71

 

Indebtedness, Disqualified
Stock or Preferred Stock described in clauses (1) through (20) of Section 4.09(b) hereof
or is entitled to be incurred pursuant to Section 4.09(a) hereof, the
Issuer, in its sole discretion, shall classify or reclassify such item of
Indebtedness, Disqualified Stock or Preferred Stock (or any portion thereof)
and shall only be required to include the amount and type of such Indebtedness,
Disqualified Stock or Preferred Stock in one of the above clauses; provided  that all Indebtedness
outstanding under the Credit Facilities on the Issue Date shall at all times be
deemed to be outstanding in reliance on clause (1) of Section 4.09(b) hereof;
and

 

(2)           at the time of incurrence, the Issuer shall be
entitled to divide and classify an item of Indebtedness in more than one of the
types of Indebtedness described in Sections 4.09(a) and 4.09(b) hereof.

 

Accrual of interest, the accretion of accreted value
and the payment of interest or dividends in the form of additional
Indebtedness, Disqualified Stock or Preferred Stock shall not, as applicable,
be deemed to be an incurrence of Indebtedness, Disqualified Stock or Preferred
Stock for purposes of this Section 4.09.

 

For purposes of determining compliance with any U.S.
dollar-denominated restriction on the incurrence of Indebtedness, the U.S.
dollar-equivalent principal amount of Indebtedness denominated in a foreign currency
shall be calculated based on the relevant currency exchange rate in effect on
the date such Indebtedness was incurred, in the case of term debt, or first
committed, in the case of revolving credit debt; provided that if such Indebtedness is incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing
would cause the applicable U.S. dollar-denominated restriction to be exceeded
if calculated at the relevant currency exchange rate in effect on the date of
such refinancing, such U.S. dollar-denominated restriction shall be deemed not
to have been exceeded so long as the principal amount of such refinancing
Indebtedness does not exceed the principal amount of such Indebtedness being
refinanced plus the amount of any reasonable premium (including reasonable
tender premiums), defeasance costs and any reasonable fees and expenses
incurred in connection with the issuance of such new Indebtedness.

 

The principal amount of any Indebtedness incurred to
refinance other Indebtedness, if incurred in a different currency from the
Indebtedness being refinanced, shall be calculated based on the currency
exchange rate applicable to the currencies in which such respective
Indebtedness is denominated that is in effect on the date of such refinancing.

 

Notwithstanding anything to the contrary, the Issuer
shall not, and shall not permit any Guarantor to, directly or indirectly, incur
any Indebtedness (including Acquired Indebtedness) that is subordinated or
junior in right of payment to any Indebtedness of the Issuer or such Guarantor,
as the case may be, unless such Indebtedness is expressly subordinated in right
of payment to the Notes or such Guarantor’s Guarantee to the extent and in the
same manner as such Indebtedness is subordinated to other Indebtedness of the
Issuer or such Guarantor, as the case may be. 
For the purposes of this Indenture, Indebtedness that is unsecured is
not deemed to be subordinated or junior to Secured Indebtedness merely because
it is unsecured, and senior Indebtedness is not deemed to be subordinated or junior
to any other senior Indebtedness merely because it has a junior priority with
respect to the same collateral.

 

Section 4.10              Asset Sales.

 

(a)           The Issuer shall not, and
shall not permit any of its Restricted Subsidiaries to, cause, make or suffer
to exist an Asset Sale, unless:

 

72

 

(1)           the Issuer or such 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 sold or otherwise disposed of; and

 

(2)           at least 75% of the consideration therefor received
by the Issuer or such Restricted Subsidiary, as the case may be, is in the form
of cash or Cash Equivalents; provided
that the amount of:

 

(A)          any liabilities (as shown on the Issuer’s or such
Restricted Subsidiary’s most recent balance sheet or in the footnotes thereto)
of the Issuer or such Restricted Subsidiary, other than liabilities that are by
their terms subordinated to the Notes, that are assumed by the transferee of
any such assets and for which the Issuer and all of its Restricted Subsidiaries
have been validly released by all creditors in writing,

 

(B)           any securities received by the Issuer or such
Restricted Subsidiary from such transferee that are converted by the Issuer or
such Restricted Subsidiary into cash (to the extent of the cash received)
within 90 days following the closing of such Asset Sale,

 

(C)           any stock or assets of the kind referred to in
clause (2) of Section 4.10(b) hereof,

 

(D)          the fair market value of any Replacement Assets
received (provided that (except as permitted by clause (4) of the
definition of “Permitted Investments”) to the extent that the assets disposed
of in such Asset Sale were Collateral, such Replacement Assets are pledged as
Collateral under the Security Documents substantially simultaneously with such
sale, with the Lien on such Collateral securing the Notes being of the same priority
with respect to the Notes as the Lien on the assets disposed of), and

 

(E)           any Designated Non-cash Consideration received by
the Issuer or such Restricted Subsidiary in such Asset Sale having an aggregate
fair market value, taken together with all other Designated Non-cash
Consideration received pursuant to this clause (E) that is at that
time outstanding, not to exceed 2.5% of Total Assets at the time of the receipt
of such Designated Non-cash Consideration, with the fair market value of each
item of Designated Non-cash Consideration being measured at the time received
and without giving effect to subsequent changes in value,

 

shall be deemed to be cash
for purposes of this provision and for no other purpose.

 

The 75% limitation referred
to in clause (2) above shall not apply to any Asset Sale in which the
cash or Cash Equivalents portion of the consideration received therefrom,
determined in accordance with the subclauses (A), (B), (C), (D) and (E) is
equal to or greater than what the after-tax proceeds would have been had such
Asset Sale complied with the aforementioned 75% limitation.

 

(b)           Within 365 days after the
receipt of any Net Proceeds of any Asset Sale (provided  that if during such 365-day period the Issuer (or
the applicable Restricted Subsidiary) enters into a definitive binding
agreement committing it to apply such Net Proceeds in accordance with the
requirements of clause (2) of this Section 4.10(b) after
such 365th day, such 365-day period shall be extended with respect to the
amount of Net Proceeds so committed for a period not to exceed 180 days
until such Net Proceeds are required to be applied in accordance with such
agreement (or, if earlier, until 

 

73

 

termination of such agreement)), the Issuer
or such Restricted Subsidiary, at its option, may apply the Net Proceeds from
such Asset Sale,

 

(1)           to permanently reduce:

 

(A)          First Lien Obligations and, if the Indebtedness
repaid is revolving credit Indebtedness, to correspondingly reduce commitments
with respect thereto or to reduce receivables advances and reduce commitments
in respect of a receivables facility; provided that the Issuer shall equally
and ratably (based on the aggregate principal amounts (or accreted value, as
applicable)) reduce Obligations under the Notes as provided under Section 3.07
hereof, through open-market purchases (to the extent such purchases are at or
above 100% of the principal amount thereof) or by making an offer (in
accordance with the procedures set forth under Section 4.10(c) hereof)
to all Holders to purchase their Notes at 100% of the principal amount thereof,
plus the amount of accrued but unpaid interest, if any, on the amount of Notes
that would otherwise be prepaid; or

 

(B)           Indebtedness of a Restricted Subsidiary that is not
a Guarantor, other than Indebtedness owed to the Issuer or another Restricted
Subsidiary; or

 

(2)           to make (A) an Investment in any one or more
businesses, provided
that such Investment in any business is in the form of the acquisition of
Capital Stock and results in the Issuer or another of its Restricted
Subsidiaries, as the case may be, owning an amount of the Capital Stock of such
business such that it constitutes a Restricted Subsidiary, (B) capital
expenditures or (C) acquisitions of other assets (other than assets
classified as current assets in accordance with GAAP), in each of (A), (B) and
(C), used or useful in a Similar Business, or that replace the businesses,
properties and/or assets that are the subject of such Asset Sale (“Replacement Assets”); provided that to the extent that
the assets disposed of in such Asset Sale were Collateral, such assets are
pledged as Collateral under the Security Documents with the Lien on such
Collateral securing the Notes being of the same priority with respect to the
Notes as the Lien on the assets disposed of.

 

(c)           Any Net Proceeds from the
Asset Sale that are not invested or applied as provided and within the time
period set forth in Section 4.10(b) shall be deemed to constitute “Excess Proceeds.” When the
aggregate amount of Excess Proceeds exceeds $25.0 million, the Issuer
shall make an offer to:

 

(1)           in the case of Net Proceeds from Collateral, all
Holders, and if required by the terms of any Other Second Lien Obligations,
holders of such Other Second Lien Obligations; and

 

(2)           in the case of any other Net Proceeds, all Holders
of Notes and all holders of other Indebtedness that ranks pari passu in right of payment with the
Notes containing provisions similar to those set forth in this Indenture with
respect to offers to purchase or redeem with the proceeds of sales of assets (“Pari
Passu Indebtedness”),

 

in each case, (an “Asset Sale Offer”),
to purchase the maximum aggregate principal amount (or accreted value, as
applicable) of the Notes and such Other Second Lien Obligations or Pari Passu
Indebtedness, as applicable, that is a minimum amount of $2,000 and in an
integral multiple of $1,000 in excess thereof that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of 

 

74

 

the principal amount thereof (or accreted
value, as applicable), plus accrued and unpaid interest and Additional
Interest, if any, to the date fixed for the closing of such offer, in accordance
with the procedures set forth in this Indenture.  The Issuer shall commence an Asset Sale Offer
with respect to Excess Proceeds within 30 days after the date that Excess
Proceeds exceed $25.0 million by mailing the notice required pursuant to
the terms of this Indenture, with a copy to the Trustee.

 

To the extent that the aggregate principal amount
(or accreted value, as applicable) of Notes and such Other Second Lien
Obligations or Pari Passu Indebtedness, as applicable, tendered pursuant to an
Asset Sale Offer is less than the Excess Proceeds, the Issuer may use any
remaining Excess Proceeds for general corporate purposes, subject to the other
covenants contained in this Indenture. 
If the aggregate principal amount (or accreted value, as applicable) of
Notes and Other Second Lien Obligations (in the case of Net Proceeds from
Collateral) or Notes and such Pari Passu Indebtedness (in the case of any other
Net Proceeds) surrendered by such holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such Other Second Lien
Obligations or Pari Passu Indebtedness, as applicable, to be purchased on a pro
rata basis based on the accreted value or principal amount of the Notes or such
Other Second Lien Obligations or Pari Passu Indebtedness, as applicable,
tendered.  Upon completion of any such
Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.

 

(d)           Pending the final
application of any Net Proceeds pursuant to this Section 4.10, the holder
of such Net Proceeds may apply such Net Proceeds temporarily to reduce
Indebtedness outstanding under a revolving credit facility or otherwise invest
such Net Proceeds in any manner not prohibited by this Indenture.

 

(e)           The Issuer shall comply with
the requirements of Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent such laws or regulations are
applicable in connection with the repurchase of the Notes pursuant to an Asset
Sale Offer.  To the extent that the
provisions of any securities laws or regulations conflict with the provisions
of this Indenture, the Issuer shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations
described in this Indenture by virtue thereof.

 

Section 4.11              Transactions with Affiliates.

 

(a)           The Issuer 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
transaction, contract, agreement, understanding, loan, advance or guarantee
with, or for the benefit of, any Affiliate of the Issuer (each of the
foregoing, an “Affiliate Transaction”) involving aggregate payments or
consideration in excess of $2.5 million, unless:

 

(1)           such Affiliate Transaction is on terms that are not
materially less favorable to the Issuer or its relevant Restricted Subsidiary
than those that would have been obtained in a comparable transaction by the
Issuer or such Restricted Subsidiary with an unrelated Person on an arm’s-length
basis;

 

(2)           the Issuer delivers to the Trustee with respect to
any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate payments or consideration in excess of $10.0 million, a
resolution adopted by the majority of the Board of Directors of the Issuer
approving such Affiliate Transaction and set forth in an Officer’s Certificate
certifying that such Affiliate Transaction complies with clause (1) of
this Section 4.11(a); and

 

75

 

(3)           solely to the extent the Issuer’s Capital Stock is
not then listed on either the New York Stock Exchange or the NASDAQ, the Issuer
delivers to the Trustee with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate payments or consideration in
excess of $25.0 million, an opinion as to the fairness of the Affiliate
Transaction to the Issuer or the relevant Restricted Subsidiary from a
financial point of view issued by an Independent Financial Advisor.

 

(b)           The provisions of Section 4.11(a) hereof
shall not apply to the following:

 

(1)           transactions between or among the Issuer or any of
its Restricted Subsidiaries;

 

(2)           “Permitted Investments” and any Restricted Payments
permitted by Section 4.07 hereof;

 

(3)           the payment of reasonable and customary fees paid
to, and indemnities provided on behalf of, officers, directors, employees or
consultants of Issuer, any of its direct or indirect parent companies or any of
its Restricted Subsidiaries;

 

(4)           any agreement as in effect as of the Issue Date, or
any amendment thereto (so long as any such amendment is not materially
disadvantageous to the Holders when taken as a whole as compared to the applicable
agreement as in effect on the Issue Date);

 

(5)           the existence of, or the performance by the Issuer
or any of its Restricted Subsidiaries of its obligations under the terms of,
any stockholders agreement (including any registration rights agreement or purchase
agreement related thereto) to which it is a party as of the Issue Date and any
similar agreements which it may enter into thereafter; provided, however,
that the existence of, or the performance by the Issuer or any of its
Restricted Subsidiaries of obligations under any future amendment to any
such existing agreement or under any similar agreement entered into after the
Issue Date shall only be permitted by this clause (5) to the extent
that the terms of any such amendment or new agreement are not otherwise
materially disadvantageous to the Holders when taken as a whole;

 

(6)           the Transaction and the payment of all fees and
expenses related to the Transaction, in each case as disclosed in the Offering
Circular;

 

(7)           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 Issuer and its Restricted Subsidiaries, in the reasonable
determination of the Board of Directors of the Issuer or the senior management
thereof, or are on terms at least as favorable as might reasonably have been
obtained at such time from an unaffiliated party;

 

(8)           the issuance of Equity Interests (other than
Disqualified Stock) of the Issuer to any director, officer, employee, agent,
consultant or Affiliate of the Issuer or the receipt of capital contributions
by the Issuer;

 

(9)           payments or loans (or cancellation of loans) to
directors, employees or consultants of the Issuer, any of its direct or
indirect parent companies or any of its Restricted Subsidiaries and employment
agreements, stock option plans and other similar arrangements with 

 

76

 

such employees or
consultants which, in each case, are approved by the Issuer in good faith and
payment of customary director’s fees;

 

(10)         any employment agreement, confidentiality agreement,
non-competition agreement, employee benefit plan, indemnification agreement or
arrangement for directors, officers, employees, agents and consultants, stock
option, stock repurchase agreement, consulting agreement, severance agreement,
insurance plan or any similar agreement, plan or arrangement entered into by
the Issuer or any of its Restricted Subsidiaries in the ordinary course of
business and payments pursuant thereto;

 

(11)         any issuance of securities, or other payments,
awards or grants in cash, securities or otherwise, pursuant to, or the funding
of, employment, compensation or indemnification arrangements, stock options and
stock ownership plans in the ordinary course of business to or with officers,
directors, employees, agents or consultants of the Issuer and the Restricted
Subsidiaries, or approved by the Board of Directors;

 

(12)         transactions with a Person that is an Affiliate of
the Issuer solely because the Issuer or a Restricted Subsidiary owns an Equity
Interest in, or controls, such Person;

 

(13)         transactions (in connection with a Qualified
Receivables Transaction) between or among the Issuer and/or its Restricted
Subsidiaries or transactions between a Receivables Subsidiary and any Person in
which the Receivables Subsidiary has an Investment;

 

(14)         transactions with any Person solely in its capacity
as a holder of Indebtedness or Capital Stock of the Issuer or any of the
Restricted Subsidiaries if such transaction provides for equal treatment of
such Person and all other holders, in their capacity as holders, of the same series
of such indebtedness or of the same class of such Capital Stock;

 

(15)         transactions in which the Issuer or any Restricted
Subsidiary, as the case may be, delivers to the Trustee a letter from an
Independent Financial Advisor stating that such transaction is fair to the
Issuer or such Restricted Subsidiary from a financial point of view or meets
the requirements of clause (1) of Section 4.11(a) hereof;
and

 

(16)         payments to Heartland and/or its Affiliates in
connection with (i) performing management services to the Issuer or any of
its Restricted Subsidiaries, (ii) any acquisition permitted under this
Indenture and (iii) any financial advisor, underwriter or placement
services or other investment banking activities rendered to the Issuer or any
of its Restricted Subsidiaries, in each case pursuant to the Heartland Advisory
Agreement as in effect on the date hereof; provided that with
respect to clause (ii), such payments are to be payable at the time of
each such acquisition and shall not exceed the percentage of the aggregate
consideration paid by the Issuer or any of its Restricted Subsidiaries for any
such acquisition as specified in the Heartland Advisory Agreement.

 

Section 4.12              Liens.

 

The Issuer shall not, and shall not permit any of
its Restricted Subsidiaries to, directly or indirectly, create, incur or suffer
to exist (i) any Lien on any asset or property that is not Collateral of
the Issuer or such Restricted Subsidiary securing Indebtedness unless the Notes
are equally and ratably secured with (or on a senior basis to, in the case of
obligations subordinated in right of payment to the

 

77

 

Notes) the obligations so secured until such time as
such obligations are no longer secured by a Lien or (ii) any Lien securing
any First Lien Obligation of the Issuer or any Guarantor without effectively
providing that the Notes or the applicable Guarantee, as the case may be, shall
be granted a second priority security interest (subject to Permitted Liens)
upon the assets or property constituting the collateral for such First Lien
Obligations, except as set forth under Article 12; provided, however, that if granting such second
priority security interest requires the consent of a third party, the Issuer
shall use commercially reasonable efforts to obtain such consent with respect
to the second priority security interest for the benefit of the Trustee on behalf
of the Holders of the Notes; provided,
further, however, that if such third party
does not consent to the granting of such second priority security interest
after the use of commercially reasonable efforts, the Issuer shall not be
required to provide such security interest.

 

Clause (i) of the preceding paragraph
shall not require the Issuer or any Restricted Subsidiary of the Issuer to
secure the Notes if the Lien consists of a Permitted Lien.  Any Lien which is granted to secure the Notes
or such Guarantee under clause (i) of the preceding paragraph (unless
also granted pursuant to clause (ii) of the preceding paragraph)
shall be automatically released and discharged at the same time as the release
of the Lien that gave rise to the obligation to secure the Notes or such
Guarantee under such clause (i).

 

Section 4.13                                         Corporate
Existence.

 

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

 

Section 4.14                                         Offer to
Repurchase Upon Change of Control.

 

(a)                                  If a Change of Control
occurs, unless the Issuer has previously or concurrently mailed a redemption
notice with respect to all the outstanding Notes as described under Section 3.07
hereof, the Issuer shall make an offer to purchase all of the Notes pursuant to
the offer described below (the “Change
of Control Offer”) at a price in cash (the “Change of Control Payment”) equal
to 101% of the aggregate principal amount thereof plus accrued and unpaid
interest and Additional Interest, if any, to the date of purchase, subject to
the right of Holders of the Notes of record on the relevant Record Date to
receive interest due on the relevant Interest Payment Date.  Within 30 days following any Change of Control,
the Issuer shall send notice of such Change of Control Offer by first-class
mail, with a copy to the Trustee, to each Holder of Notes to the address of
such Holder appearing in the security register, with the following information:

 

(1)                                  that a Change
of Control Offer is being made pursuant to this Section 4.14 and that all
Notes properly tendered pursuant to such Change of Control Offer will be
accepted for payment by the Issuer;

 

78

 

(2)                                  the purchase
price and the purchase date, which will be no earlier than 30 days nor later
than 60 days from the date such notice is mailed (the “Change of Control Payment Date”);

 

(3)                                  that any Note
not properly tendered will remain outstanding and continue to accrue interest;

 

(4)                                  that unless the
Issuer defaults in the payment of the Change of Control Payment, all Notes
accepted for payment pursuant to the Change of Control Offer will cease to
accrue interest on the Change of Control Payment Date;

 

(5)                                  that Holders
electing to have any Notes purchased pursuant to a Change of Control Offer will
be required to surrender such Notes, with the form entitled “Option of Holder
to Elect Purchase” on the reverse of such Notes completed, to the paying agent
specified in the notice at the address specified in the notice prior to the
close of business on the third Business Day preceding the Change of Control
Payment Date;

 

(6)                                  that Holders
shall be entitled to withdraw their tendered Notes and their election to
require the Issuer to purchase such Notes, provided that the paying agent receives, not later than the
close of business on the 30th day following the date of the Change of Control
notice, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder of the Notes, the principal amount of Notes tendered for
purchase, and a statement that such Holder is withdrawing its tendered Notes
and its election to have such Notes purchased;

 

(7)                                  that if the
Issuer is redeeming less than all of the Notes, the Holders of the remaining
Notes will be issued new Notes and such new Notes will be equal in principal
amount to the unpurchased portion of the Notes surrendered.  The unpurchased portion of the Notes must be
equal to $2,000 or an integral multiple of $1,000 in excess thereof;

 

(8)                                  if such notice
is mailed prior to the occurrence of a Change of Control, stating the Change of
Control Offer is conditional on the occurrence of such Change of Control; and

 

(9)                                  the other
instructions, as determined by the Issuer, consistent with this Section 4.14,
that a Holder must follow.

 

The notice, if mailed in a manner herein provided, shall be
conclusively presumed to have been given, whether or not the Holder receives
such notice.  If (a) the notice is
mailed in a manner herein provided and (b) any Holder fails to receive
such notice or a Holder receives such notice but it is defective, such Holder’s
failure to receive such notice or such defect shall not affect the validity of
the proceedings for the purchase of the Notes as to all other Holders that properly
received such notice without defect.  The
Issuer shall comply with the requirements of Rule 14e-1 under the Exchange
Act and any other securities laws and regulations thereunder to the extent such
laws or regulations are applicable in connection with the repurchase of Notes
pursuant to a Change of Control Offer. 
To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Section 4.14, the Issuer shall comply
with the applicable securities laws and regulations and shall not be deemed to
have breached its obligations under this Section 4.14 by virtue thereof.

 

In the event a Change of Control occurs at a time when the Issuer is
prohibited by the terms of any First Lien Obligations from purchasing Notes, then
prior to the mailing of the notice of a 

 

79

 

Change of Control to Holders of Notes but in any
event within 45 days following any Change of Control, the Issuer will (1) repay
in full all Obligations, and terminate all commitments, under the Senior Credit
Facility and all other First Lien Obligations, the terms of which require
repayment and/or termination of commitments upon a Change of Control or offer
to repay in full all Obligations, and terminate all commitments, under the
Senior Credit Facility and all other such First Lien Obligations and to repay
the Obligations owed to (and terminate all commitments of) each lender which
has accepted such offer or (2) obtain the requisite consents under the
agreements governing such First Lien Obligations to permit the repurchase of
the Notes.

 

The Issuer shall first comply with the covenant in the immediately
preceding paragraph before it shall be required to repurchase Notes pursuant to
the provisions described above.  The Issuer’s
failure to comply with the covenant described in the immediately preceding
paragraph (and any failure to send a notice of Change of Control as a result of
the prohibition in the preceding paragraph) shall (with notice and lapse of
time) constitute an Event of Default described under Section 6.01(a)(3),
but shall not constitute an Event of Default described under Section 6.01(a)(1).

 

(b)                                 On the Change of Control
Payment Date, the Issuer shall, to the extent permitted by law,

 

(1)                                  accept for payment
all Notes issued by it or portions thereof properly tendered pursuant to the
Change of Control Offer,

 

(2)                                  deposit with
the Paying Agent an amount equal to the aggregate Change of Control Payment in
respect of all Notes or portions thereof so tendered, and

 

(3)                                  deliver, or
cause to be delivered, to the Trustee for cancellation the Notes so accepted
together with an Officer’s Certificate to the Trustee stating that such Notes
or portions thereof have been tendered to and purchased by the Issuer.

 

(c)                                  The Issuer shall not be
required to make a Change of Control Offer following a Change of Control if (1) a
third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Section 4.14
applicable to a Change of Control Offer made by the Issuer and purchases all
Notes validly tendered and not withdrawn under such Change of Control Offer, (2) notice
of redemption has been given pursuant to this Indenture as described in Section 3.07
hereof, unless and until there is a default in payment of the applicable
redemption price, or (3) waived or modified with the consent of the
Holders of a majority in aggregate principal amount of Notes then
outstanding.  Notwithstanding anything to
the contrary herein, a Change of Control Offer may be made in advance of a
Change of Control, conditional upon such Change of Control, if a definitive
agreement is in place for the Change of Control at the time of making of the
Change of Control Offer.

 

(d)                                 Other than as specifically
provided in this Section 4.14, any purchase pursuant to this Section 4.14
shall be made pursuant to the provisions of Sections 3.02, 3.05 and 3.06
hereof.

 

Section 4.15                                         Limitation on
Guarantees of Indebtedness by Restricted Subsidiaries.

 

The Issuer shall not permit any of its Restricted Subsidiaries, other
than a Guarantor, to guarantee the payment of any Indebtedness of the Issuer or
any other Guarantor unless:

 

80

 

(1)                                  such Restricted
Subsidiary within 30 days executes and delivers a supplemental indenture
to this Indenture, the form of which is attached as Exhibit D hereto,
providing for a Guarantee by such Restricted Subsidiary, except if such
Indebtedness is by its express terms subordinated in right of payment to the
Notes or such Guarantor’s Guarantee, any such guarantee by such Restricted
Subsidiary with respect to such Indebtedness shall be subordinated in right of
payment to such Guarantee substantially to the same extent as such Indebtedness
is subordinated to the Notes or such Guarantor’s Guarantee;

 

(2)                                  such Restricted
Subsidiary within 30 days executes and delivers a joinder to the
applicable Security Documents or new Security Documents and take all actions
necessary to perfect the liens created thereunder (to the extent required by
such Security Documents), all of such liens to be junior to the liens in favor
of the holders of the First Lien Obligations and to be subject to the
Intercreditor Agreement; and

 

(3)                                  such Restricted
Subsidiary waives and shall not in any manner whatsoever claim or take the
benefit or advantage of, any rights of reimbursement, indemnity or subrogation
or any other rights against the Issuer or any other Restricted Subsidiary as a
result of any payment by such Restricted Subsidiary under its Guarantee;

 

provided that this Section 4.15
shall not be applicable to any guarantee of any Restricted Subsidiary that existed
at the time such Person became a Restricted Subsidiary and was not incurred in
connection with, or in contemplation of, such Person becoming a Restricted Subsidiary.

 

ARTICLE 5

 

SUCCESSORS

 

Section 5.01                                         Merger,
Consolidation or Sale of All or Substantially All Assets.

 

(a)                                  The Issuer shall not
consolidate or merge with or into or wind up into (whether or not the Issuer 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 any Person unless:

 

(1)                                  the Issuer is the surviving
corporation or the Person formed by or surviving any such consolidation or
merger (if other than the Issuer) or to which such sale, assignment, transfer,
lease, conveyance or other disposition will have been made is a corporation
organized or existing under the laws of the jurisdiction of organization of the
United States, any state thereof, the District of Columbia, or any territory
thereof (such Person, as the case may be, being herein called the “Successor
Company”);

 

(2)                                  the Successor Company, if
other than the Issuer, expressly assumes all the obligations of the Issuer
under the Notes pursuant to supplemental indentures, Security Documents or
other documents or instruments in form reasonably satisfactory to the Trustee;

 

(3)                                  immediately after such
transaction, no Default exists;

 

(4)                                  immediately after giving pro forma effect to such transaction and any related
financing transactions, as if such transactions had occurred at the beginning
of the applicable four-quarter period, the Successor Company would either (A) be
permitted to incur at

 

81

 

least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in the first
sentence of Section 4.09(a) hereof or (B) have a Fixed Charge
Coverage Ratio of not less than the Fixed Charge Coverage Ratio of the Issuer
immediately prior to such transaction;

 

(5)                                  each Guarantor, unless it is
the other party to the transactions described above, in which case Section 5.01(c)(1)(B) hereof
shall apply, shall have by supplemental indenture and Security Documents
confirmed that its Guarantee shall apply to such Person’s obligations under
this Indenture, the Notes, the Registration Rights Agreement and the Security
Documents; and

 

(6)                                  the Issuer shall have
delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel,
each stating that such consolidation, merger or transfer and such supplemental
indentures and Security Documents, if any, comply with this Indenture.

 

(b)                                 The Successor Company shall
succeed to, and be substituted for the Issuer, as the case may be, under this
Indenture, the Guarantees and the Notes, as applicable.  Notwithstanding the foregoing clauses (3) and
(4) of Section 5.01(a) hereof,

 

(1)                                  any Restricted Subsidiary
may consolidate with or merge into or transfer all or part of its properties
and assets to the Issuer, and

 

(2)                                  the Issuer may merge with an
Affiliate of the Issuer solely for the purpose of reincorporating the Issuer in
a State of the United States so long as the amount of Indebtedness of the
Issuer and its Restricted Subsidiaries is not increased thereby.

 

(c)                                  No Guarantor shall, and the
Issuer shall not permit any Guarantor to, consolidate or merge with or into or
wind up into (whether or not the Issuer or Guarantor 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 any Person unless:

 

(1)                                  (A) such Guarantor is
the surviving corporation or the Person formed by or surviving any such
consolidation or merger (if other than such Guarantor) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been
made is a corporation, partnership, limited partnership, limited liability
company or trust organized or existing under the laws of the jurisdiction of
organization of such Guarantor, as the case may be, or the laws of the United
States, any state thereof, the District of Columbia, or any territory thereof
(such Guarantor or such Person, as the case may be, being herein called the “Successor
Person”);

 

(B)                                the Successor Person, if
other than such Guarantor, expressly assumes all the obligations of such
Guarantor under this Indenture and Security Documents and such Guarantor’s
related Guarantee pursuant to supplemental indentures, Security Documents or
other documents or instruments in form reasonably satisfactory to the Trustee;

 

(C)                                immediately after such
transaction, no Default exists; and

 

(D)                               the Issuer shall have
delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel,
each stating that such consolidation, merger or transfer and such supplemental
indentures and Security Documents, if any, comply with this Indenture; or

 

82

 

(2)                                  the transaction
is made in compliance with Section 4.10 hereof.

 

(d)                                 In the case of Clause (1) of
Section 5.01(c) hereof, the Successor Person shall succeed to, and be
substituted for, such Guarantor under this Indenture, Security Documents and
such Guarantor’s Guarantee. 
Notwithstanding the foregoing, any Guarantor may merge into or transfer
all or part of its properties and assets to another Guarantor or the Issuer.

 

(e)                                  Notwithstanding anything to
the contrary, the consummation of a sale of a Designated Business in accordance
with the requirements set forth under Section 4.10 hereof shall not
constitute a sale of all or substantially all of the Issuer’s or any Guarantor’s
properties or assets for purposes of this covenant; provided that after
giving pro forma effect to such
sale (including the application of the net proceeds therefrom) the Consolidated
Leverage Ratio of the Issuer would be no greater than 3.75 to 1.00.

 

Section 5.02                                         Successor
Corporation Substituted.

 

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

 

ARTICLE 6

 

DEFAULTS AND REMEDIES

 

Section 6.01                                         Events of
Default.

 

(a)                                  An “Event of Default”
wherever used herein, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative
or governmental body):

 

(1)                                  default in
payment when due and payable, upon redemption, acceleration or otherwise, of
principal of or premium, if any, on the Notes;

 

(2)                                  default for
30 days or more in the payment when due of interest or Additional Interest
on or with respect to the Notes;

 

(3)                                  (a) failure
by the Issuer or any Guarantor to comply with its obligations under Section 5.01,
(b) failure by the Issuer or any Restricted Subsidiary to comply with its
obligations under Sections 3.09, 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12,
4.13, 4.14 or 4.15 hereof (in each 

 

83

 

case other than a failure to purchase Notes
that shall constitute an Event of Default under clause (1) above and
other than a failure to comply with its obligations that would cause a default
under clause (a)), or (c) failure by the Issuer or any Restricted
Subsidiary to comply with any of its obligations, covenants or agreements
(other than a default referred to in clauses (1), (2) and (a) and (b) above)
contained in this Indenture, Security Documents or the Notes in the case of
clause (b) for 30 days and in the case of clause (c) for
60 days, in each such case after receipt of written notice given by the
Trustee or the Holders of not less 25% in principal amount of the Notes;

 

(4)                                  default under
any mortgage, indenture or instrument under which there is issued or by which
there is secured or evidenced any Indebtedness for money borrowed by the Issuer
or any of its Restricted Subsidiaries or the payment of which is guaranteed by
the Issuer or any of its Restricted Subsidiaries, other than Indebtedness owed
to the Issuer or a Restricted Subsidiary, whether such Indebtedness or
guarantee now exists or is created after the issuance of the Notes, if both:

 

(a)                                  such default either results from the failure
to pay any principal of such Indebtedness at its stated final maturity (after
giving effect to any applicable grace periods) or relates to an obligation
other than the obligation to pay principal of any such Indebtedness at its
stated final maturity and results in the holder or holders of such Indebtedness
causing such Indebtedness to become due prior to its stated maturity; and

 

(b)                                 the principal amount of such Indebtedness,
together with the principal amount of any other such Indebtedness in default
for failure to pay principal at stated final maturity (after giving effect to
any applicable grace periods), or the maturity of which has been so accelerated,
aggregate $25.0 million or more at any one time outstanding;

 

(5)                                  failure by the
Issuer or any Significant Subsidiary (or group of Restricted Subsidiaries that
taken together would constitute a Significant Subsidiary) to pay final
judgments aggregating in excess of $25.0 million, which final judgments
remain unpaid, undischarged and unstayed for a period of more than 60 days
after such judgment becomes final, and in the event such judgment is covered by
insurance, an enforcement proceeding has been commenced by any creditor upon
such judgment or decree which is not promptly stayed;

 

(6)                                  the Issuer or
any of its Restricted Subsidiaries that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary, pursuant to or within the meaning of any Bankruptcy Law:

 

(i)                  commences
proceedings to be adjudicated bankrupt or insolvent;

 

(ii)             consents to the
institution of bankruptcy or insolvency proceedings against it, or the filing
by it of a petition or answer or consent seeking reorganization or relief under
applicable Bankruptcy law;

 

(iii)          consents to the
appointment of a receiver, liquidator, assignee, trustee, sequestrator or other
similar official of it or for all or substantially all of its property;

 

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

 

84

 

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

 

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

 

(i)                  is for relief
against the Issuer or any of its Restricted Subsidiaries that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary, in a proceeding in which the Issuer or any
such Restricted Subsidiaries, that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary, is to be adjudicated bankrupt or insolvent;

 

(ii)               appoints a
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any group of Restricted Subsidiaries that, taken together, would constitute
a Significant Subsidiary, or for all or substantially all of the property of
the Issuer or any of its Restricted Subsidiaries that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary; or

 

(iii)            orders the
liquidation of the Issuer or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken together,
would constitute a Significant Subsidiary;

 

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

 

(8)                                  the Guarantee
of any Significant Subsidiary (or group of Guarantors that taken together would
constitute a Significant Subsidiary) shall for any reason cease to be in full
force and effect or be declared null and void or any responsible officer of
such Guarantor, as the case may be, denies that it has any further liability
under its Guarantee or gives notice to such effect, other than by reason of the
termination of this Indenture or the release of any such Guarantee in accordance
with this Indenture; or

 

(9)                                  (x) with
respect to any Collateral having a fair market value in excess of
$15.0 million, individually or in the aggregate, (a) the security
interest under any Security Document, at any time, ceases to be in full force
and effect for any reason other than in accordance with the terms of this
Indenture, the Security Documents and the Intercreditor Agreement, or (b) any
security interest created thereunder or under this Indenture is declared invalid
or unenforceable by a court of competent jurisdiction or (y) the Issuer or
any Guarantor asserts, in any pleading in any court of competent jurisdiction,
that any security interest in any Collateral is invalid or unenforceable.

 

If any Event of Default (other than of a type specified in clause (6) or
(7) above with respect to the Issuer) occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then total
outstanding Notes may declare the principal, premium, if any, interest and any
other monetary obligations on all the then outstanding Notes to be due and payable
immediately.  Upon the effectiveness of
such declaration, such principal and interest shall be due and payable immediately.  Notwithstanding the foregoing, in the case of
an Event of Default arising under clause (6) or (7) of this Section 6.01(a),
all outstanding Notes shall become due and payable without further action or
notice.  The Trustee may withhold from
the Holders notice of any continuing Default, except a Default relating to the 

 

85

 

payment of principal, premium, if any, or interest,
if it determines that withholding notice is in their interest.

 

(b)                                 The Holders of a majority in
aggregate principal amount of the then outstanding Notes by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing
Default and its consequences under this Indenture except a continuing Default
in the payment of interest on, premium, if any, or the principal of any Note
held by a non-consenting Holder.  In the
event of any Event of Default specified in clause (4) of Section 6.01(a) hereof,
such Event of Default and all consequences thereof (excluding any resulting
payment default, other than as a result of acceleration of the Notes) shall be
annulled, waived and rescinded, automatically and without any action by the
Trustee or the Holders, if within 20 days after such Event of Default
arose:

 

(1)                                  the
Indebtedness or guarantee that is the basis for such Event of Default has been
discharged; or

 

(2)                                  holders thereof
have rescinded or waived the acceleration, notice or action (as the case may
be) giving rise to such Event of Default; or

 

(3)                                  the default
that is the basis for such Event of Default has been cured.

 

Section 6.02                                         Acceleration.

 

If any Event of Default (other than an Event of Default specified in
clause (6) or (7) of Section 6.01(a) hereof) occurs and is
continuing under this Indenture, the Trustee or the Holders of at least 25% in
principal amount of the then total outstanding Notes may declare the principal,
premium, if any, interest and any other monetary obligations on all the then
outstanding Notes to be due and payable immediately.  Upon the effectiveness of such declaration,
such principal and interest shall be due and payable immediately.  The Trustee shall have no obligation to
accelerate the Notes if and so long as a committee of its Responsible Officers
in good faith determines acceleration is not in the best interest of the Holders
of the Notes.

 

Notwithstanding the foregoing, in the case of an Event of Default
arising under clause (6) or (7) of Section 6.01(a) hereof, all
outstanding Notes shall be due and payable immediately without further action
or notice.

 

The Holders of a majority in aggregate principal amount of the then
outstanding Notes by written notice to the Trustee may on behalf of all of the
Holders rescind an acceleration and its consequences if the rescission would
not conflict with any judgment or decree and if all existing Events of Default
(except nonpayment of principal, interest, Additional Interest, if any, or
premium that has become due solely because of the acceleration) have been cured
or waived.

 

Section 6.03                                         Other Remedies.

 

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

 

The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any
Holder of a 

 

86

 

Note in exercising any right or remedy accruing upon
an Event of Default shall not impair the right or remedy or constitute a waiver
of or acquiescence in the Event of Default. 
All remedies are cumulative to the extent permitted by law.

 

Section 6.04                                         Waiver of Past
Defaults.

 

Holders of not less than a majority in aggregate principal amount of
the then outstanding Notes by notice to the Trustee may on behalf of the
Holders of all of the Notes waive any existing Default and its consequences
hereunder, except a continuing Default in the payment of the principal of,
premium, if any, Additional Interest, if any, or interest on, any Note held by
a non-consenting Holder (including in connection with an Asset Sale Offer or a
Change of Control Offer); provided, subject to Section 6.02 hereof,
that the Holders of a majority in aggregate principal amount of the then
outstanding Notes may rescind an acceleration and its consequences, including
any related payment default that resulted from such acceleration.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

 

Section 6.05                                         Control by
Majority.

 

Holders of a majority in principal amount of the then total outstanding
Notes 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.  The Trustee,
however, may refuse to follow any direction that conflicts with law or this
Indenture or that the Trustee determines is unduly prejudicial to the rights of
any other Holder of a Note or that would involve the Trustee in personal liability.

 

Section 6.06                                         Limitation on
Suits.

 

Subject to Section 6.07
hereof, no Holder of a Note may pursue any remedy with respect to this
Indenture or the Notes unless:

 

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

 

(2)                                  Holders of at
least 25% in principal amount of the total outstanding Notes have requested the
Trustee to pursue the remedy;

 

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

 

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

 

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

 

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

 

87

 

Section 6.07                                         Rights of
Holders of Notes to Receive Payment.

 

Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium, if any, and
Additional Interest, if any, and interest on the Note, on or after the
respective due dates expressed in the Note (including in connection with an
Asset Sale Offer or a Change of Control Offer), 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) hereof occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Issuer for the whole amount of principal of, premium,
if any, and Additional Interest, if any, and interest remaining unpaid on the
Notes and interest on overdue principal and, to the extent lawful, interest and
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

 

Section 6.09                                         Restoration of
Rights and Remedies.

 

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

 

Section 6.10                                         Rights and
Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Notes in Section 2.07 hereof, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

 

Section 6.11                                         Delay or
Omission Not Waiver.

 

No delay or omission of the Trustee or of any Holder of any Note to
exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein.  Every right and
remedy given by this Article or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders, as the case may be.

 

Section 6.12                                         Trustee May File
Proofs of Claim.

 

The Trustee is authorized to file such proofs of claim and other papers
or documents as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for the 

 

88

 

reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel) and the Holders of the Notes
allowed in any judicial proceedings relative to the Issuer (or any other obligor
upon the Notes including the Guarantors), its creditors or its property and
shall be entitled and empowered to participate as a member in any official
committee of creditors appointed in such matter and to collect, receive and
distribute any money or other property payable or deliverable on any such
claims and any custodian in any such judicial proceeding is hereby authorized
by each Holder to make such payments to the Trustee, and in the event that the
Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07 hereof.  To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07
hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid
out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or
to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.

 

Section 6.13                                         Priorities.

 

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

 

(i)                  to the Trustee, its agents
and attorneys for amounts due under Section 7.07 hereof, including payment
of all compensation, expenses and liabilities incurred, and all advances made,
by the Trustee and the costs and expenses of collection;

 

(ii)               to Holders of Notes for
amounts due and unpaid on the Notes for principal, premium, if any, and
Additional Interest, if any, and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for
principal, premium, if any, and Additional Interest, if any, and interest,
respectively; and

 

(iii)            to the Issuer or to such
party as a court of competent jurisdiction shall direct including a Guarantor,
if applicable.

 

The Trustee may fix a record date and payment date for any payment to
Holders of Notes pursuant to this Section 6.13.

 

Section 6.14                                         Undertaking for
Costs.

 

In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.  This Section 6.14 does not apply to a
suit by the Trustee, a suit by a Holder of a Note 

 

89

 

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

 

ARTICLE 7

 

TRUSTEE

 

Section 7.01                                         Duties of
Trustee.

 

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

 

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

 

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

 

(ii)               in the absence of bad faith
on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  However,
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 (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein).

 

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

 

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

 

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

 

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

 

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

 

(e)                                  The Trustee shall be under
no obligation to exercise any of its rights or powers under this Indenture at
the request or direction of any of the Holders of the Notes unless the Holders
have offered to the Trustee indemnity or security satisfactory to it against
any loss, liability or expense.

 

90

 

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

 

Section 7.02                                         Rights of
Trustee.

 

(a)                                  The Trustee may conclusively
rely upon any document believed by it to be genuine and to have been signed or
presented by the proper Person.  The
Trustee need not investigate any fact or matter stated in the document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Issuer, personally or by agent or attorney
at the sole cost of the Issuer and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.

 

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

 

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

 

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

 

(e)                                  Unless otherwise
specifically provided in this Indenture, any demand, request, direction or
notice from the Issuer shall be sufficient if signed by an Officer of the
Issuer.

 

(f)                                    None of the provisions of
this Indenture shall require the Trustee to expend or risk its own funds or
otherwise to incur any liability, financial or otherwise, in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers
if it shall have reasonable grounds for believing that repayment of such funds
or indemnity satisfactory to it against such risk or liability is not assured
to it.

 

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

 

(h)                                 In no event shall the
Trustee be responsible or liable for special, indirect, or consequential loss
or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such
loss or damage and regardless of the form of action.

 

(i)                                     The rights, privileges,
protections, immunities and benefits given to the Trustee, including, without
limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the 

 

91

 

Trustee in each of its capacities hereunder, and each agent, custodian
and other Person employed to act hereunder.

 

(j)                                     In the event the Issuer is
required to pay Additional Interest, the Issuer will provide written notice to
the Trustee of the Issuer’s obligation to pay Additional Interest no later than
15 days prior to the next Interest Payment Date, which notice shall set forth
the amount of the Additional Interest to be paid by the Issuer.  The Trustee shall not at any time be under
any duty or responsibility to any Holders to determine whether the Additional
Interest is payable and the amount thereof.

 

Section 7.03                                         Individual
Rights of Trustee.

 

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

 

Section 7.04                                         Trustee’s
Disclaimer.

 

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

 

Section 7.05                                         Notice of
Defaults.

 

If a Default occurs and is continuing and if it is known to the
Trustee, the Trustee shall mail to Holders of Notes a notice of the Default
within 90 days after it occurs.  Except
in the case of a Default relating to the payment of principal, premium, if any,
or interest on any Note, the Trustee may withhold from the Holders notice of
any continuing Default if and so long as a committee of its Responsible
Officers in good faith determines that withholding the notice is in the
interests of the Holders of the Notes. 
The Trustee shall not be deemed to know of any Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is such a Default is received by the Trustee
at the Corporate Trust Office of the Trustee.

 

Section 7.06                                         Reports by
Trustee to Holders of the Notes.

 

Within 60 days after each May 15, beginning with the May 15
following the date of this Indenture, and for so long as Notes remain
outstanding, the Trustee shall mail to the Holders of the Notes a brief report
dated as of such reporting date that complies with Trust Indenture Act Section 313(a) (but
if no event described in Trust Indenture Act Section 313(a) has
occurred within the twelve months preceding the reporting date, no report need
be transmitted).  The Trustee also shall
comply with Trust Indenture Act Section 313(b)(2).  The Trustee shall also transmit by mail all
reports as required by Trust Indenture Act Section 313(c).

 

92

 

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

 

Section 7.07                                         Compensation
and Indemnity.

 

The Issuer shall pay to the Trustee from time to time such compensation
for its acceptance of this Indenture and services hereunder as the parties
shall agree in writing from time to time. 
The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Issuer shall reimburse the Trustee promptly upon request for all
reasonable disbursements, advances and expenses incurred or made by it in
addition to the compensation for its services. 
Such expenses shall include the reasonable compensation, disbursements
and expenses of the Trustee’s agents and counsel.

 

The Issuer and the Guarantors, jointly and severally, shall indemnify
the Trustee for, and hold the Trustee harmless against, any and all loss,
damage, claims, liability or expense (including attorneys’ fees) incurred by it
in connection with the acceptance or administration of this trust and the performance
of its duties hereunder (including the costs and expenses of enforcing this
Indenture against the Issuer or any of the Guarantors (including this Section 7.07)
or defending itself against any claim whether asserted by any Holder, the
Issuer or any Guarantor, or liability in connective with the acceptance, exercise
or performance of any of its powers or duties hereunder).  The Trustee shall notify the Issuer promptly
of any claim of which a Responsible Officer has received written notice for
which it may seek indemnity.  Failure by
the Trustee to so notify the Issuer shall not relieve the Issuer of its
obligations hereunder.  The Issuer shall
defend the claim and the Trustee may have separate counsel and the Issuer shall
pay the fees and expenses of such counsel. 
The Issuer need not reimburse any expense or indemnify against any loss,
liability or expense incurred by the Trustee as caused by the Trustee’s own
willful misconduct or negligence.

 

The obligations of the Issuer under this Section 7.07 shall
survive the satisfaction and discharge of this Indenture or the earlier
resignation or removal of the Trustee.

 

To secure the payment obligations of the Issuer and the Guarantors in
this Section 7.07, the Trustee shall have a Lien prior to the Notes on all
money or property held or collected by the Trustee, except that held in trust
to pay principal and interest on particular Notes.  Such Lien shall survive the satisfaction and
discharge of this Indenture.

 

When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(a)(6) or (7) hereof occurs,
the expenses and the compensation for the services (including the fees and
expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

 

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

 

Section 7.08                                         Replacement of
Trustee.

 

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

 

93

 

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

 

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

 

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

 

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

 

(d)                                 the Trustee becomes
incapable of acting.

 

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

 

If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee (at the Issuer’s
expense), the Issuer or the Holders of at least 10% in principal amount of the
then outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

 

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

 

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

 

Section 7.09                                         Successor
Trustee by Merger, etc.

 

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

 

Section 7.10                                         Eligibility;
Disqualification.

 

There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or 

 

94

 

state authorities and that has a combined capital
and surplus of at least $50,000,000 as set forth in its most recent published
annual report of condition.

 

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

 

Section 7.11                                         Preferential
Collection of Claims Against Issuer.

 

The Trustee is subject to Trust Indenture Act Section 311(a),
excluding any creditor relationship listed in Trust Indenture Act Section 311(b).  A Trustee who has resigned or been removed
shall be subject to Trust Indenture Act Section 311(a) to the extent
indicated therein.

 

ARTICLE 8

 

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01                                         Option to Effect
Legal Defeasance or Covenant Defeasance.

 

The Issuer may, at its option and at any time, elect to have either Section 8.02
or 8.03 hereof applied to all outstanding Notes upon compliance with the
conditions set forth below in this Article 8.

 

Section 8.02                                         Legal
Defeasance and Discharge.

 

Upon the Issuer’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Issuer and the Guarantors shall,
subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be deemed to have been discharged from their obligations with respect
to all outstanding Notes and Guarantees, and with respect to this Indenture and
the Security Documents, on the date the conditions set forth below are
satisfied (“Legal Defeasance”). 
For this purpose, Legal Defeasance means that the Issuer shall be deemed
to have paid and discharged the entire Indebtedness represented by the
outstanding Notes, which shall thereafter be deemed to be “outstanding” only
for the purposes of Section 8.05 hereof and the other Sections of this
Indenture referred to in (a) and (b) below, and to have satisfied all
its other obligations under the Notes, the Guarantees, this Indenture and the
Security Documents, and shall be deemed to be permitted to cause the release of
all Liens on the Collateral granted under the Security Documents (and the
Trustee, on demand of and at the expense of the Issuer, shall execute proper
instruments acknowledging the same), except for the following provisions which
shall survive until otherwise terminated or discharged hereunder:

 

(a)                                  the rights of
Holders of Notes to receive payments in respect of the principal of, premium,
if any, and interest on the Notes when such payments are due solely out of the
trust created pursuant to this Indenture referred to in Section 8.04
hereof;

 

(b)                                 the Issuer’s
obligations with respect to Notes concerning issuing temporary Notes,
registration of such Notes, mutilated, destroyed, lost or stolen Notes and the
maintenance of an office or agency for payment and money for security payments
held in trust;

 

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

 

95

 

(d)                                 this Section 8.02.

 

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

 

Section 8.03                                         Covenant
Defeasance.

 

Upon the Issuer’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Issuer and the Guarantors shall,
subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be released from their obligations under the covenants contained in
Sections 4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14 and
4.15 hereof and clauses (4) and (5) of Section 5.01(a), Sections
5.01(c) and 5.01(d) hereof with respect to the outstanding Notes, and
from the Liens on the Collateral granted under the Security Documents, on and
after the date the conditions set forth in Section 8.04 hereof are
satisfied (“Covenant Defeasance”), and the Notes shall thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not
be deemed outstanding for accounting purposes).  For this purpose, Covenant Defeasance means
that, with respect to the outstanding Notes, the Issuer may omit to comply with
and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, or as a result of any release of the Liens on the
Collateral, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such omission
to comply shall not constitute a Default or an Event of Default under Section 6.01
hereof, but, except as specified above, the remainder of this Indenture and
such Notes shall be unaffected thereby. 
In addition, upon the Issuer’s exercise under Section 8.01 hereof
of the option applicable to this Section 8.03 hereof, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, Sections 6.01(a)(3),
6.01(a)(4), 6.01(a)(5), 6.01(a)(8) and 6.01(a)(9) hereof shall not
constitute Events of Default.

 

Section 8.04                                         Conditions to
Legal or Covenant Defeasance.

 

The following shall be the conditions to the application of either Section 8.02
or 8.03 hereof to the outstanding Notes:

 

In order to exercise either Legal Defeasance or Covenant Defeasance
with respect to the Notes:

 

(1)                                  the Issuer must
irrevocably deposit with the Trustee, in trust, for the benefit of the Holders
of the Notes, cash in U.S.  dollars,
Government Securities, or a combination thereof, in such amounts as will be
sufficient, in the opinion of a nationally recognized firm of independent
public accountants, to pay the principal of, premium, if any, and interest due
on the Notes on the stated maturity date or on the redemption date, as the case
may be, of such principal, premium, if any, or interest on such Notes and the Issuer
must specify whether such Notes are being defeased to maturity or to a
particular redemption date;

 

(2)                                  in the case of
Legal Defeasance, the Issuer shall have delivered to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions,

 

96

 

(a)                                  the Issuer has received from, or there has
been published by, the United States Internal Revenue Service a ruling, or

 

(b)                                 since the issuance of the Notes, there has
been a change in the applicable U.S. 
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 Notes will not
recognize income, gain or loss for U.S. 
federal income tax purposes, as applicable, as a result of such Legal
Defeasance and will be subject to U.S. 
federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such Legal Defeasance had not occurred;

 

(3)                                  in the case of
Covenant Defeasance, the Issuer shall have delivered to the Trustee an Opinion
of Counsel reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions, the Holders of the Notes will not
recognize income, gain or loss for U.S. 
federal income tax purposes as a result of such Covenant Defeasance and
will be subject to such tax on the same amounts, in the same manner and at the
same times as would have been the case if such Covenant Defeasance had not
occurred;

 

(4)                                  no Default
(other than that resulting from borrowing funds to be applied to make such
deposit and the granting of Liens in connection therewith) shall have occurred
and be continuing on the date of such deposit;

 

(5)                                  such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under the Senior Credit Facility or any other material
agreement or instrument (other than this Indenture) to which the Issuer or any
Guarantor is a party or by which the Issuer or any Guarantor is bound;

 

(6)                                  the Issuer
shall have delivered to the Trustee an Opinion of Counsel to the effect that,
as of the date of such opinion and subject to customary assumptions and
exclusions following the deposit, the trust funds will not be subject to the
effect of Section 547 of Title 11 of the United States Code;

 

(7)                                  the Issuer
shall have delivered to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Issuer with the intent of defeating, hindering,
delaying or defrauding any creditors of the Issuer or any Guarantor or others;
and

 

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

 

Section 8.05                                         Deposited Money
and Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

 

Subject to Section 8.06 hereof, all money and Government
Securities (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively for purposes of this Section 8.05,
the “Trustee”) pursuant to Section 8.04 hereof in respect of the outstanding
Notes shall be 

 

97

 

held in trust and applied by the Trustee, in
accordance with the provisions of such Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Issuer or a
Guarantor acting as Paying Agent) as the Trustee may determine, to the Holders
of such Notes of all sums due and to become due thereon in respect of
principal, premium and Additional Interest, if any, and interest, but such
money need not be segregated from other funds except to the extent required by
law.

 

The Issuer shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or Government Securities
deposited pursuant to Section 8.04 hereof or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the outstanding Notes.

 

Anything in this Article 8 to the contrary notwithstanding, the
Trustee shall deliver or pay to the Issuer from time to time upon the request
of the Issuer any money or Government Securities held by it as provided in Section 8.04
hereof which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the opinion delivered under Section 8.04(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 8.06                                         Repayment to
Issuer.

 

Any money deposited with the Trustee or any Paying Agent, or then held
by the Issuer, in trust for the payment of the principal of, premium and
Additional Interest, if any, or interest on any Note and remaining unclaimed
for two years after such principal, and premium and Additional Interest, if any,
or interest has become due and payable shall be paid to the Issuer on its
request or (if then held by the Issuer) shall be discharged from such trust;
and the Holder of such Note shall thereafter look only to the Issuer for
payment thereof, and all liability of the Trustee or such Paying Agent with respect
to such trust money, and all liability of the Issuer as trustee thereof, shall
thereupon cease.

 

Section 8.07                                         Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any United States
dollars or Government Securities in accordance with Section 8.02 or 8.03
hereof, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Issuer’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02
or 8.03 hereof until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance with Section 8.02 or 8.03 hereof, as
the case may be; provided that, if the Issuer makes any payment of
principal of, premium and Additional Interest, if any, or interest on any Note
following the reinstatement of its obligations, the Issuer shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money held by the Trustee or Paying Agent.

 

98

 

ARTICLE 9

 

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01                                         Without Consent
of Holders of Notes.

 

Notwithstanding Section 9.02 hereof, the Issuer, any Guarantor
(with respect to a Guarantee or this Indenture) and the Trustee may amend or
supplement this Indenture, the Security Documents, and any Guarantee or Notes
without the consent of any Holder:

 

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

 

(2)                                  to provide for
uncertificated Notes of such series in addition to or in place of certificated
Notes;

 

(3)                                  to comply with Section 5.01
hereof;

 

(4)                                  to provide the
assumption of the Issuer’s or any Guarantor’s obligations to the Holders;

 

(5)                                  to make any
change that would provide any additional rights or benefits to the Holders or
that does not adversely affect the rights under this Indenture of any such
Holder;

 

(6)                                  to add
covenants for the benefit of the Holders or to surrender any right or power
conferred upon the Issuer or any Guarantor;

 

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

 

(8)                                  to evidence and
provide for the acceptance and appointment (x) under this Indenture of a
successor Trustee thereunder pursuant to the requirements thereof or (y) under
the Security Documents of a successor Second Lien Agent thereunder pursuant to
the requirements thereof;

 

(9)                                  to add a
Guarantor under this Indenture;

 

(10)                            to conform the
text of this Indenture, the Guarantees or the Notes to any provision of the “Description
of Notes” section of the Offering Circular to the extent that such provision in
such “Description of Notes” section was intended to be a verbatim recitation of
a provision of this Indenture, Guarantee or Notes;

 

(11)                            to make any
amendment to the provisions of this Indenture relating to the transfer and
legending of Notes as permitted by this Indenture, including, without
limitation to facilitate the issuance and administration of the Notes; provided, however, that (i) compliance
with this Indenture as so amended would not result in Notes being transferred
in violation of the Securities Act or any applicable securities law and (ii) such
amendment does not materially and adversely affect the rights of Holders to
transfer Notes;

 

99

 

(12) to add security to or
for the benefit of the Notes and, in the case of the Security Documents, to or
for the benefit of the other secured parties named therein or to confirm and evidence
the release, termination or discharge of any Guarantee of or Lien securing the
Notes when such release, termination or discharge is permitted by this
Indenture and the Security Documents or as required by the Intercreditor
Agreement;

 

(13) to modify the Security
Documents and/or the Intercreditor Agreement to secure additional extensions of
credit and add additional secured creditors holding Other Second Lien Obligations
so long as such Other Second Lien Obligations are not prohibited by the
provisions of the Senior Credit Facility or this Indenture; or

 

(14) to provide for the
issuance of exchange notes or private exchange notes that are identical to
exchange notes except that they are not freely transferable.

 

Upon the request of the Issuer accompanied by a resolution of its board
of directors authorizing the execution of any such amended or supplemental
indenture, and upon receipt by the Trustee of the documents described in Section 7.02
hereof, the Trustee shall join with the Issuer and the Guarantors in the
execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.  Notwithstanding the foregoing, no Opinion of
Counsel shall be required in connection with the addition of a Guarantor under
this Indenture upon execution and delivery by such Guarantor and the Trustee of
a supplemental indenture to this Indenture, the form of which is attached as Exhibit D
hereto, and delivery of an Officer’s Certificate.

 

Section 9.02                                         With Consent of
Holders of Notes.

 

Except as provided below in this Section 9.02, the Issuer and the
Trustee may amend or supplement this Indenture, the Security Documents, any
Guarantee and the Notes with the consent of the Holders of at least a majority
in principal amount of the Notes (including Additional Notes, if any) then
outstanding voting as a single class, other than Notes beneficially owned by
the Issuer or its Affiliates (including, without limitation, consents obtained
in connection with a purchase of, or tender offer or exchange offer for the
Notes), and, subject to Sections 6.04 and 6.07 hereof, and any existing Default
or Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium and Additional Interest, if any, or interest on the
Notes, except a payment default resulting from an acceleration that has been
rescinded) or compliance with any provision of this Indenture, the Security
Documents, any Guarantee or the Notes may be waived with the consent of the Holders
of a majority in principal amount of the then outstanding Notes (including
Additional Notes, if any) voting as a single class, other than Notes
beneficially owned by the Issuer or its Affiliates (including consents obtained
in connection with a purchase of, or tender offer or exchange offer for the
Notes).  Section 2.08 hereof and Section 2.09
hereof shall determine which Notes are considered to be “outstanding” for the
purposes of this Section 9.02.

 

Upon the request of the Issuer accompanied by a resolution of its board
of directors authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt
by the Trustee of the documents described in Section 7.02 hereof, the
Trustee shall join with the Issuer in the execution of such amended or
supplemental indenture unless such amended or 

 

100

 

supplemental indenture directly affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such amended or supplemental indenture.

 

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

 

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

 

Without the consent of each affected Holder of Notes, an amendment or
waiver under this Section 9.02 may not with respect to any Notes held by a
non-consenting Holder:

 

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

 

(2)                                  reduce the
principal of or change the fixed final maturity of any such Note or alter or
waive the provisions with respect to the redemption of such Notes (other than provisions
relating to Section 3.09, Section 4.10 and Section 4.14 hereof
to the extent that any such amendment or waiver does not have the effect of
reducing the principal of or changing the fixed final maturity of any such Note
or altering or waiving the provisions with respect to the redemption of such
Notes);

 

(3)                                  reduce the rate
of or change the time for payment of interest on any Note;

 

(4)                                  waive a Default
in the payment of principal of or premium, if any, or interest on the Notes,
except a rescission of acceleration of the Notes by the Holders of at least a
majority in aggregate principal amount of the Notes and a waiver of the payment
default that resulted from such acceleration, or in respect of a covenant or
provision contained in this Indenture or any Guarantee which cannot be amended
or modified without the consent of all Holders;

 

(5)                                  make any Note
payable in money other than that stated therein;

 

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

 

(7)                                  make any change
in these amendment and waiver provisions;

 

(8)                                  impair the
right of any Holder to receive payment of principal of, or interest on such Holder’s
Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes;

 

(9)                                  make any change
to or modify the ranking of the Notes that would adversely affect the Holders;
or

 

101

 

(10)                            except as
expressly permitted by this Indenture, modify the Guarantee of any Significant
Subsidiary in any manner adverse to the Holders of the Notes.

 

In addition, any amendment to, or waiver of, the provision of the
Indenture or any Security Document that has the effect of releasing all or
substantially all of the Collateral will require consent of the holders of at
least 75% in aggregate principal amount of the Notes then outstanding
(including consents obtained in connection with a tender offer or exchange
offer for the Notes).

 

Until the Discharge of First Lien Obligations has occurred, the holders
of the First Priority Liens may change, waive, modify or vary the security
documents of such holders and, pursuant to the Intercreditor Agreement, such
changes will automatically apply to the Security Documents; provided
that any such change, waiver, modification or variance that is prejudicial to
the rights of the Second Lien Agent, the Trustee and the Holders of the Notes
and does not affect the holders of the First Priority Liens in a like or
similar manner shall not apply to the Security Documents without the consent of
the Second Lien Agent and the Trustee (acting at the direction of the Holders
of a majority of the aggregate principal amount of the Notes).  Notice of such amendment, waiver or consent
shall be given to the Trustee by the Issuer, but any failure to provide such
notice will not affect the validity or effectiveness of any such amendment, waiver
or consent.

 

No amendment of, or supplement or waiver to, the Indenture, the Notes
or the Security Documents (other than the Intercreditor Agreement) shall be
permitted to be effected which is in violation of or inconsistent with the
terms of the Intercreditor Agreement.  No
amendment of, or supplement to, the Intercreditor Agreement shall be permitted
to be effected without the consent of the First Lien Agent and the Second Lien
Agent.

 

Section 9.03                                         Compliance with
Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the Notes shall be
set forth in an amended or supplemental indenture that complies with the Trust
Indenture Act, except to the extent described herein, as then in effect.

 

Section 9.04                                         Revocation and
Effect of Consents.

 

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

 

The Issuer may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders entitled to consent to any amendment,
supplement, or waiver.  If a record date
is fixed, then, notwithstanding the preceding paragraph, those Persons who were
Holders at such record date (or their duly designated proxies), and only such
Persons, shall be entitled to consent to such amendment, supplement, or waiver
or to revoke any consent previously given, whether or not such Persons continue
to be Holders after such record date.  No
such consent shall be valid or effective for more than 120 days after such
record date unless the consent of the requisite number of Holders has been
obtained.

 

102

 

Section 9.05                                         Notation on or
Exchange of Notes.

 

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

 

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

 

Section 9.06                                         Trustee to Sign
Amendments, etc.

 

The Trustee shall sign any amendment, supplement or waiver authorized
pursuant to this Article 9 if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the
Trustee.  The Issuer may not sign an
amendment, supplement or waiver until the board of directors approves it.  In executing any amendment, supplement or
waiver, the Trustee shall be provided with and (subject to Section 7.01
hereof) shall be fully protected in relying upon, in addition to the documents
required by Section 13.04 hereof, an Officer’s Certificate and an Opinion
of Counsel stating that the execution of such amended or supplemental indenture
is authorized or permitted by this Indenture and that such amendment,
supplement or waiver is the legal, valid and binding obligation of the Issuer
and any Guarantors party thereto, enforceable against them in accordance with
its terms, subject to customary exceptions, and complies with the provisions
hereof (including Section 9.03). 
Notwithstanding the foregoing, no Opinion of Counsel will be required
for the Trustee to execute any amendment or supplement adding a new Guarantor
under this Indenture.

 

Section 9.07                                         Payment for
Consent.

 

Neither the Issuer nor any Affiliate of the Issuer 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 Notes unless such consideration is offered to all Holders and
is paid to all Holders that so consent, waive or agree to amend in the time
frame set forth in solicitation documents relating to such consent, waiver or
agreement.

 

ARTICLE 10

 

GUARANTEES

 

Section 10.01                                   Guarantee.

 

Subject to this Article 10, each of the Guarantors hereby, jointly
and severally, fully guarantees to each Holder of a Note authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, irrespective
of the validity and enforceability of this Indenture, the Notes or the
obligations of the Issuer hereunder or thereunder, that: (a) the principal
of, interest, premium, if any, and Additional Interest, if any, on the Notes
shall be promptly paid in full when due, whether at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest
on the Notes, if any, if lawful, and all other obligations of the Issuer to the
Holders or the Trustee hereunder or thereunder shall be promptly paid in full
or performed, all in accordance with the terms hereof and thereof; and (b) in
case of any extension of time of payment or renewal of any Notes or any of such
other 

 

103

 

obligations, that same shall be promptly paid in
full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise.  Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the Guarantors
shall be jointly and severally obligated to pay the same immediately.  Each Guarantor agrees that this is a guarantee
of payment and not a guarantee of collection.

 

The Guarantors hereby agree that their obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Issuer, any action
to enforce the same or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of a guarantor.  Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Issuer, any right to require a proceeding first
against the Issuer, protest, notice and all demands whatsoever and covenants
that this Guarantee shall not be discharged except by complete performance of
the obligations contained in the Notes and this Indenture.

 

Each Guarantor also agrees to pay any and all costs and expenses
(including reasonable attorneys’ fees) incurred by the Trustee or any Holder in
enforcing any rights under this Section 10.01.

 

If any Holder or the Trustee is required by any court or otherwise to
return to the Issuer, the Guarantors or any custodian, trustee, liquidator or
other similar official acting in relation to either the Issuer or the
Guarantors, any amount paid either to the Trustee or such Holder, this
Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect.

 

Each Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby.  Each Guarantor further agrees that, as
between the Guarantors, on the one hand, and the Holders and the Trustee, on
the other hand, (x) the maturity of the obligations guaranteed hereby may
be accelerated as provided in Article 6 hereof for the purposes of this
Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (y) in
the event of any declaration of acceleration of such obligations as provided in
Article 6 hereof, such obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantors for the purpose of this
Guarantee.  The Guarantors shall have the
right to seek contribution from any non-paying Guarantor so long as the
exercise of such right does not impair the rights of the Holders under the
Guarantees.

 

Each Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against the Issuer for
liquidation, reorganization, should the Issuer become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be appointed
for all or any significant part of the Issuer’s assets, and shall, to the
fullest extent permitted by law, continue to be effective or be reinstated, as
the case may be, if at any time payment and performance of the Notes are,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise
be restored or returned by any obligee on the Notes or Guarantees, whether as a
“voidable preference,” “fraudulent transfer” or otherwise, all as though such
payment or performance had not been made. 
In the event that any payment or any part thereof is rescinded, reduced,
restored or returned, the Notes shall, to the fullest extent permitted by law,
be reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

 

104

 

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

 

The Guarantee issued by any Guarantor shall be a general secured senior
obligation of such Guarantor and shall be pari
passu in right of payment with all existing and future Indebtedness
of such Guarantor that is not subordinated in right of payment to such
Guarantee.

 

Each payment to be made by a Guarantor in respect of its Guarantee
shall be made without set-off, counterclaim, reduction or diminution of any
kind or nature.

 

Section 10.02                                   Limitation on
Guarantor Liability.

 

Each Guarantor, and by its acceptance of Notes, each Holder, hereby
confirms that it is the intention of all such parties that the Guarantee of
such Guarantor not constitute a fraudulent transfer or conveyance for purposes
of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Guarantee.  To effectuate
the foregoing intention, the Trustee, the Holders and the Guarantors hereby
irrevocably agree that the obligations of each Guarantor shall be limited to
the maximum amount as will, after giving effect to such maximum amount and all
other contingent and fixed liabilities of such Guarantor that are relevant
under such laws and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article 10,
result in the obligations of such Guarantor under its Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under applicable
law.  Each Guarantor that makes a payment
under its Guarantee shall be entitled upon payment in full of all guaranteed
obligations under this Indenture to a contribution from each other Guarantor in
an amount equal to such other Guarantor’s pro rata
portion of such payment based on the respective net assets of all the
Guarantors at the time of such payment determined in accordance with GAAP.

 

Section 10.03                                   Execution and
Delivery.

 

To evidence its Guarantee set forth in Section 10.01 hereof, each Guarantor hereby agrees
that this Indenture shall be executed on behalf of such Guarantor by its
President, one of its Vice Presidents or one of its Assistant Vice Presidents.

 

Each Guarantor hereby agrees that its Guarantee set forth in Section 10.01
hereof shall remain in full
force and effect notwithstanding the absence of the endorsement of any notation
of such Guarantee on the Notes.

 

If an Officer whose signature is on this Indenture no longer holds that
office at the time the Trustee authenticates the Note, the Guarantee shall be
valid nevertheless.

 

The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Guarantee set forth in
this Indenture on behalf of the Guarantors.

 

If required by Section 4.15 hereof, the Issuer shall cause any
newly created or acquired Restricted Subsidiary to comply with the provisions
of Section 4.15 hereof and
this Article 10, to the extent applicable.

 

105

 

Section 10.04                                   Subrogation.

 

Each Guarantor shall be subrogated to all rights of Holders of Notes
against the Issuer in respect of any amounts paid by any Guarantor pursuant to
the provisions of Section 10.01
hereof; provided that, if an Event of Default has occurred and is
continuing, no Guarantor shall be entitled to enforce or receive any payments
arising out of, or based upon, such right of subrogation until all amounts then
due and payable by the Issuer under this Indenture or the Notes shall have been
paid in full.

 

Section 10.05                                   Benefits Acknowledged.

 

Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by this Indenture and
that the guarantee and waivers made by it pursuant to its Guarantee are
knowingly made in contemplation of such benefits.

 

Section 10.06                                   Release of
Guarantees.

 

A Guarantee by a Guarantor shall be automatically and unconditionally
released and discharged, and no further action by such Guarantor, the Issuer or
the Trustee is required for the release of such Guarantor’s Guarantee, upon:

 

(1)                                  (A)  any
sale, exchange or transfer (by merger or otherwise) of the Capital Stock of
such Guarantor (including any sale, exchange or transfer), after which the applicable
Guarantor is no longer a Restricted Subsidiary or all or substantially all the
assets of such Guarantor which sale, exchange or transfer is made in compliance
with the applicable provisions of this Indenture;

 

(B)                                the release or
discharge of the guarantee by such Guarantor of the Senior Credit Facility or
such other guarantee that resulted in the creation of such Guarantee, except a
discharge or release by or as a result of payment under such guarantee;

 

(C)                                the proper
designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted
Subsidiary; or

 

(D)                               the Issuer
exercising its Legal Defeasance option in accordance with Article 8 hereof
or the Issuer’s obligations under this Indenture being discharged in accordance
with the terms of this Indenture; and

 

(2)                                   the Issuer
delivering to the Trustee an Officer’s Certificate and an Opinion of Counsel,
each stating that all conditions precedent provided for in this Indenture
relating to such transaction have been complied with.

 

ARTICLE 11

 

SATISFACTION AND DISCHARGE

 

Section 11.01                                   Satisfaction and
Discharge.

 

This Indenture shall be discharged and shall cease to be of further
effect as to all Notes, when either:

 

106

 

(1)                                  all Notes
theretofore authenticated and delivered, except lost, stolen or destroyed Notes
which have been replaced or paid and Notes for whose payment money has
theretofore been deposited in trust, have been delivered to the Trustee for
cancellation; or

 

(2)                                  (A) all
Notes not theretofore delivered to the Trustee for cancellation have become due
and payable by reason of the making of a notice of redemption or otherwise,
shall become due and payable within one year or are to be called for redemption
and redeemed 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 Issuer and the Issuer or any Guarantor have irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders of the Notes, cash in U.S. dollars,
Government Securities, or a combination thereof, in such amounts as will be
sufficient without consideration of any reinvestment of interest to pay and
discharge the entire indebtedness on the Notes not theretofore delivered to the
Trustee for cancellation for principal, premium, if any, and accrued interest
to the date of maturity or redemption;

 

(B)                                no Default
(other than that resulting from borrowing funds to be applied to make such
deposit) with respect to this Indenture or the Notes shall have occurred and be
continuing on the date of such deposit or shall occur as a result of such
deposit and such deposit will not result in a breach or violation of, or
constitute a default under the Senior Credit Facility or any other material
agreement or instrument (other than this Indenture) to which the Issuer or any
Guarantor is a party or by which the Issuer or any Guarantor is bound;

 

(C)                                the Issuer has
paid or caused to be paid all sums payable by it under this Indenture; and

 

(D)                               the Issuer has
delivered irrevocable instructions to the Trustee to apply the deposited money
toward the payment of the Notes at maturity or the redemption date, as the case
may be.

 

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

 

Notwithstanding the satisfaction and discharge of this Indenture, if
money shall have been deposited with the Trustee pursuant to subclause (A) of
clause (2) of this Section 11.01, the provisions of Section 11.02
and Section 8.06 hereof shall survive such satisfaction and discharge.

 

Section 11.02                                   Application of
Trust Money.

 

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

 

If the Trustee or Paying Agent is unable to apply any money or
Government Securities in accordance with Section 11.01 hereof by reason of
any legal proceeding or by reason of any order or 

 

107

 

judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Issuer’s
and any Guarantor’s obligations under this Indenture and the Notes shall be revived
and reinstated as though no deposit had occurred pursuant to Section 11.01
hereof; provided that if the Issuer has made any payment of principal
of, premium and Additional Interest, if any, or interest on any Notes because
of the reinstatement of its obligations, the Issuer shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

ARTICLE 12

 

COLLATERAL

 

Section 12.01                                   Relative
Rights; Intercreditor Agreement.

 

The security interests securing the Notes and the Guarantees will be,
pursuant to the Intercreditor Agreement, second in priority to any and all
security interests at any time granted to secure the First Lien Obligations and
will also be subject to all other Permitted Liens.  The Intercreditor Agreement defines the
relative rights of holders of Second Priority Liens and holders of First
Priority Liens.

 

Section 12.02                                   Security
Documents.

 

The payment of the principal of and interest and premium, if any, on
the Notes when due, whether on an interest payment date, at maturity, by
acceleration, repurchase, redemption or otherwise and whether by the Issuer
pursuant to the Notes or by a Guarantor pursuant to its Guarantee, and the
payment and performance of all other Second Lien Obligations of the Issuer and
the Guarantors are secured as provided in the Security Documents (subject to
the terms of the Intercreditor Agreement) which the Issuer and the Guarantors
have entered into simultaneously with the execution of this Indenture and will
be secured as provided in Security Documents hereafter delivered as required or
permitted by this Indenture.  The Issuer
and the Guarantors shall execute any and all further documents, financing
statements, agreements and instruments, and take all further action that may be
required under applicable law, or that the Second Lien Agent may reasonably
request, in order to grant, preserve, protect and perfect the validity and
priority of the security interests and Liens created or intended to be created
by the Security Documents in the Collateral. 
In addition, from time to time, the Issuer will reasonably promptly
secure the obligations under the Indenture, Security Documents and
Intercreditor Agreement by pledging or creating, or causing to be pledged or
created, perfected security interests and Liens with respect to the
Collateral.  Such security interests and
Liens will be created under the Security Documents and other security
agreements, mortgages, deeds of trust and other instruments and documents as
may be reasonably required.

 

Section 12.03                                   Release of
Collateral.

 

(a)  The Issuer and the Guarantors are entitled to the releases of
property and other assets included in the Collateral from the Liens securing
the Notes under any one or more of the following circumstances:

 

(1)                                  upon the
Discharge of First Lien Obligations and concurrent release of all other Liens
on such property or assets securing First Lien Obligations (including all
commitments and letters of credit thereunder); provided,
however, that if the Issuer or any
Guarantor subsequently

 

108

 

incurs First Lien
Obligations that are secured by Liens on property or assets of the Issuer or
any Guarantor of the type constituting the Collateral and the related Liens are
incurred in reliance on clause (28)(b) of the definition of “Permitted
Liens,” then the Issuer and its Restricted Subsidiaries will be required to
reinstitute the security arrangements with respect to the Collateral in favor
of the Notes, which, in the case of any such subsequent First Lien Obligations,
will be Second Priority Liens on the Collateral securing such First Lien
Obligations to the same extent provided by the Security Documents and on the
terms and conditions of the security documents relating to such First Lien
Obligations, with the Second Priority Lien held either by the administrative
agent, collateral agent or other representative for such First Lien Obligations
or by a collateral agent or other representative designated by the Issuer to
hold the Second Priority Liens for the benefit of the holders of the Notes and
subject to an intercreditor agreement that provides the administrative agent or
collateral agent substantially the same rights and powers as afforded under the
Intercreditor Agreement;

 

(2)                                  to enable the Issuer or the
Guarantors to consummate the disposition of such property or assets to the
extent not prohibited by Section 4.10 hereof;

 

(3)                                  in the case of a Guarantor
that is released from its Note Guarantee with respect to the Notes, the release
of the property and assets of such Guarantor; or

 

(4)                                  as permitted by Article 9
hereof.

 

(b)  If an Event of Default under this
Indenture exists on the date of Discharge of First Lien Obligations, the Second
Priority Liens on the Collateral securing the Notes will not be released,
except to the extent the Collateral or any portion thereof was disposed of in
order to repay the First Lien Obligations secured by the Collateral, and
thereafter the Second Lien Agent (or another designated representative acting
at the direction of the holders of a majority of outstanding principal amount
of the Notes and Other Second Lien Obligations) will have the right to
foreclose upon the Collateral (but in such event, the Liens on the Collateral
securing the Notes will be released when such Event of Default and all other
Events of Default under this Indenture cease to exist).

 

The second priority security interests in all
Collateral securing the Notes also will be released upon (i) a
satisfaction and discharge of this Indenture as described under Article 11
or (ii) a legal defeasance or covenant defeasance under this Indenture as
described under Article 8.

 

Section 12.04                                   Information
Regarding Collateral.

 

(a)  The Issuer will furnish to the Second Lien
Agent, with respect to the Issuer or any Guarantor, prompt written notice of
any change in such Person’s (i) legal name, (ii) jurisdiction of
organization or formation, (iii) identity or corporate structure or (iv) Organizational
Identification Number.  The Issuer and
the Guarantors will not effect or permit any change referred to in the preceding
sentence unless all filings have been made under the Uniform Commercial Code or
otherwise that are required in order for the Second Lien Agent to continue at
all times following such change to have a valid, legal and perfected security
interest in all the Collateral.

 

(b)  Each year, at the time of delivery of the
certificate contemplated by Section 4.04(a) hereof with respect to
the preceding fiscal year, the Issuer shall deliver to the Second Lien Agent a
certificate of a financial officer setting forth the information required
pursuant to the schedules required 

 

109

 

by the Security Documents or
confirming that there has been no change in such information since the date of
delivery of such certificate in the preceding year.

 

Section 12.05                                   After-Acquired
Collateral.

 

If at any time the Issuer or
any Guarantor creates any additional security interest upon any
property or asset to secure any First Lien Obligations, it must concurrently
grant a second priority security interest (subject to Permitted Liens,
including the First Priority Liens) upon such property as security for the
Notes and have such property or asset added to the Collateral, and thereupon
all provisions of this Indenture relating to the Collateral shall be deemed to
relate to such asset or property to the same extent and with the same force and
effect; provided that if granting a security interest in such property
or asset requires the consent of a third party, the Issuer shall use commercially
reasonable efforts to obtain such consent with respect to the second
priority security interest for the benefit of the Second Lien Agent on behalf
of the Trustee and Holders of the Notes; provided  further
that if such third party does not consent to the granting of the second
priority security interest after the use of such commercially reasonable
efforts, the applicable entity will not be required to provide such security
interest.

 

Section 12.06                                   Second Lien
Agent.

 

(a)  The Second Lien Agent is authorized
and empowered to appoint one or more co-Second Lien Agents as it deems
necessary or appropriate.

 

(b)  Subject to Section 7.01
hereof, neither the Trustee nor the Second Lien Agent nor any of their
respective officers, directors, employees, attorneys or agents will be
responsible or liable for the existence, genuineness, value or protection of
any Collateral, for the legality, enforceability, effectiveness or sufficiency
of the Security Documents, for the creation, perfection, priority, sufficiency
or protection of any Second Priority Lien, or for any defect or deficiency as
to any such matters, or for any failure to demand, collect, foreclose or
realize upon or otherwise enforce any of the Second Priority Liens or Security
Documents or any delay in doing so.

 

(c)  The Second Lien Agent (subject to
the terms of the Intercreditor Agreement) will be subject to such directions as
may be given it by the Trustee from time to time (as required or permitted by
this Indenture).

 

(d)  The Second Lien Agent will be
accountable only for amounts that it actually receives as a result of the
enforcement of the Second Priority Liens or Security Documents.

 

(e)  In acting as Second Lien Agent, the
Second Lien Agent may rely upon and enforce each and all of the rights, powers,
immunities, indemnities and benefits of the Trustee under Article 7
hereof.

 

(f)  The Holders of Notes agree that the
Second Lien Agent shall be entitled to the rights, privileges, protections,
immunities, indemnities and benefits provided to the Second Lien Agent by the
Security Documents.

 

Section 12.07                                   Authorization
of Actions to Be Taken.

 

(a)  Each Holder of Notes, by its
acceptance thereof, consents and agrees to the terms of each Security Document
and the Intercreditor Agreement, as originally in effect and as amended, 

 

110

 

supplemented or replaced from time to time in accordance with its terms
or the terms of this Indenture, authorizes and directs the Trustee and the
Second Lien Agent to enter into the Security Documents to which it is a party,
authorizes and empowers the Trustee to direct the Second Lien Agent to enter
into, and the Second Lien Agent to execute and deliver, the Intercreditor
Agreement, and authorizes and empowers the Trustee and the Second Lien Agent to
bind the Holders of Notes as set forth in the Security Documents to which it is
a party and the Intercreditor Agreement and to perform its obligations and
exercise its rights and powers thereunder.

 

(b)  The Second Lien Agent and the
Trustee are authorized and empowered to receive for the benefit of the Holders
of Notes any funds collected or distributed under the Security Documents to
which the Second Lien Agent or Trustee is a party and to make further
distributions of such funds to the Holders of Securities according to the
provisions of this Indenture.

 

(c)  Subject to the provisions of the
Intercreditor Agreement, the Trustee may, in its sole discretion and without
the consent of the Holders, direct, on behalf of the Holders, the Second Lien
Agent to take all actions it deems necessary or appropriate in order to:

 

(1) foreclose
upon or otherwise enforce any or all of the Second Priority Liens;

 

(2) enforce
any of the terms of the Security Documents to which the Second Lien Agent or
Trustee is a party; or

 

(3) collect
and receive payment of any and all Second Lien Obligations.

 

(d) Subject to the provisions of the
Intercreditor Agreement, the Trustee is authorized and empowered to institute
and maintain, or direct the Second Lien Agent to institute and maintain, such
suits and proceedings as it may deem expedient to protect or enforce the Second
Priority Liens or the Security Documents to which the Second Lien Agent or
Trustee is a party or to prevent any impairment of Collateral by any acts that
may be unlawful or in violation of the Security Documents to which the Second
Lien Agent or Trustee is a party or this Indenture, and such suits and
proceedings as the Trustee or the Second Lien Agent may deem expedient to
preserve or protect its interests and the interests of the Holders of Notes in
the Collateral, including power to institute and maintain suits or proceedings
to restrain the enforcement of or compliance with any legislative or other
governmental enactment, rule or order that may be unconstitutional or
otherwise invalid if the enforcement of, or compliance with, such enactment, rule or
order would impair the security interest hereunder or be prejudicial to the
interests of Holders, the Trustee or the Second Lien Agent.

 

ARTICLE
13

MISCELLANEOUS

 

Section 13.01                                   Trust Indenture
Act Controls.

 

If any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by Trust Indenture Act Section 318(c),
the imposed duties shall control.

 

111

 

Section 13.02                                   Notices.

 

Any notice or communication by the Issuer, any
Guarantor or the Trustee to the others is duly given if in writing and
delivered in person or mailed by first-class mail (registered or certified,
return receipt requested), fax or overnight air courier guaranteeing next day
delivery, to the others’ address:

 

TriMas Corporation

39400 Woodward Avenue, Suite 130

Bloomfield Hills, Michigan 48304

Fax No.: (248) 631-5455

Attention:
Chief Financial Officer

 

With a copy to:

Cahill Gordon & Reindel

80 Pine Street, 17th Floor

New York, New York 10005

Fax No.: (212) 269-5420

Attention:
Douglas S. Horowitz, Esq.

 

If to the Trustee and Second Lien Agent:

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

2 North LaSalle Street

Chicago, Illinois 60606

Fax No.: (312) 827-8542

Attention:
Corporate Trust Administration

 

The Issuer, any Guarantor or the Trustee and Second
Lien Agent, by notice to the others, may designate additional or different
addresses for subsequent notices or communications.

 

All notices and communications (other than those
sent to Holders) shall be deemed to have been duly given: at the time delivered
by hand, if personally delivered; five calendar days after being deposited in
the mail, postage prepaid, if mailed by first-class mail; when receipt
acknowledged, if faxed; and the next Business Day after timely delivery to the
courier, if sent by overnight air courier guaranteeing next day delivery; provided
that any notice or communication delivered to the Trustee shall be deemed effective
upon actual receipt thereof.

 

Any notice or communication to a Holder shall be
mailed by first-class mail, certified or registered, return receipt requested,
or by overnight air courier guaranteeing next day delivery to its address shown
on the register kept by the Registrar. 
Any notice or communication shall also be so mailed to any Person
described in Trust Indenture Act Section 313(c), to the extent required by
the Trust Indenture Act.  Failure to mail
a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders.

 

If a notice or communication is mailed in the manner
provided above within the time prescribed, it is duly given, whether or not the
addressee receives it.

 

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

 

112

 

Section 13.03                                   Communication
by Holders of Notes with Other Holders of Notes.

 

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

 

Section 13.04                                   Certificate and
Opinion as to Conditions Precedent.

 

Upon any request or application by the Issuer
or any of the Guarantors to the Trustee to take any action under this
Indenture, the Issuer or such Guarantor, as the case may be, shall furnish to
the Trustee:

 

(a)                                  an Officer’s
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 and covenants, if
any, provided for in this Indenture relating to the proposed action have been
satisfied; and

 

(b)                                 an Opinion of
Counsel in form and substance reasonably satisfactory to the Trustee (which
shall include the statements set forth in Section 13.05 hereof) stating that, in the opinion
of such counsel, all such conditions precedent and covenants have been
satisfied.

 

Section 13.05                                   Statements
Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to Section 4.04 hereof or Trust Indenture
Act Section 314(a)(4)) shall include:

 

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

 

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

 

(c)                                  a statement
that, in the opinion of such Person, he or she has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with (and, in
the case of an Opinion of Counsel, may be limited to reliance on an Officer’s
Certificate as to matters of fact); and

 

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

 

Section 13.06                                   Rules by
Trustee and Agents.

 

The Trustee may make reasonable rules for
action by or at a meeting of Holders. 
The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

 

113

 

Section 13.07                                   No Personal
Liability of Directors, Officers, Employees and Stockholders.

 

No director, officer, employee, incorporator or
stockholder, member or limited partner of the Issuer or any Guarantor or any of
their parent companies shall have any liability for any obligations of the
Issuer or the Guarantors under the Notes, the Guarantees or this Indenture or
for any claim based on, in respect of, or by reason of such obligations or
their creation.  Each Holder by accepting
Notes waives and releases all such liability. 
The waiver and release are part of the consideration for issuance of the
Notes.

 

Section 13.08                                   Governing Law.

 

THIS INDENTURE, THE SECURITY DOCUMENTS, THE NOTES
AND ANY GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK.

 

Section 13.09                                   Waiver of Jury
Trial.

 

EACH OF THE ISSUER, THE GUARANTORS AND THE TRUSTEE
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 13.10                                   Force Majeure.

 

In no event shall the Trustee be responsible or
liable for any failure or delay in the performance of its obligations under
this Indenture arising out of or caused by, directly or indirectly, forces
beyond its reasonable control, including without limitation strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software or hardware)
services.

 

Section 13.11                                   No Adverse
Interpretation of Other Agreements.

 

This Indenture may not be used to interpret any
other indenture, loan or debt agreement of the Issuer or its Restricted
Subsidiaries or of any other Person.  Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

 

Section 13.12                                   Successors.

 

All agreements of the Issuer in this Indenture and
the Notes shall bind its successors.  All
agreements of the Trustee in this Indenture shall bind its successors.  All agreements of each Guarantor in this
Indenture shall bind its successors, except as otherwise provided in Section 10.06 hereof.

 

Section 13.13                                   Severability.

 

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

 

114

 

Section 13.14                                   Counterpart
Originals.

 

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

 

Section 13.15                                   Table of
Contents, Headings, etc.

 

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

 

Section 13.16                                   Qualification
of Indenture.

 

The Issuer and the Guarantors shall qualify this
Indenture under the Trust Indenture Act in accordance with the terms and
conditions of the Registration Rights Agreement and shall pay all reasonable
costs and expenses (including attorneys’ fees and expenses for the Issuer, the
Guarantors and the Trustee) incurred in connection therewith, including, but
not limited to, costs and expenses of qualification of this Indenture and the
Notes and printing this Indenture and the Notes.  The Trustee shall be entitled to receive from
the Issuer and the Guarantors any such Officer’s Certificates, Opinions of Counsel
or other documentation as it may reasonably request in connection with any such
qualification of this Indenture under the Trust Indenture Act.

 

[Signatures on following page]

 

115

 

	
   

  	
  TRIMAS CORPORATION,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ROBERT J. ZALUPSKI

  
	
   

  	
   

  	
  Name:

  	
  Robert
  J. Zalupski

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President Finance, Corporate Development & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TRIMAS COMPANY LLC

  
	
   

  	
   

  	
  ARROW ENGINE COMPANY

  
	
   

  	
   

  	
  CEQUENT PERFORMANCE
  PRODUCTS, INC.

  
	
   

  	
   

  	
  CEQUENT CONSUMER PRODUCTS,
  INC.

  
	
   

  	
   

  	
  COMPAC CORPORATION

  
	
   

  	
   

  	
  DEW TECHNOLOGIES, INC.

  
	
   

  	
   

  	
  HI-VOL PRODUCTS LLC

  
	
   

  	
   

  	
  KEO CUTTERS, INC.

  
	
   

  	
   

  	
  LAKE ERIE PRODUCTS
  CORPORATION

  
	
   

  	
   

  	
  MONOGRAM AEROSPACE
  FASTENERS, INC.

  
	
   

  	
   

  	
  NI INDUSTRIES, INC.

  
	
   

  	
   

  	
  NORRIS CYLINDER COMPANY

  
	
   

  	
   

  	
  RICHARDS MICRO-TOOL, INC.

  
	
   

  	
   

  	
  RIEKE CORPORATION

  
	
   

  	
   

  	
  RIEKE LEASING CO.,
  INCORPORATED

  
	
   

  	
   

  	
  RIEKE OF MEXICO, INC.

  
	
   

  	
   

  	
  THE HAMMERBLOW COMPANY,
  LLC

  
	
   

  	
   

  	
  TRIMAS
  INTERNATIONAL HOLDINGS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  ROBERT J. ZALUPSKI

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Robert J. Zalupski

  
	
   

  	
   

  	
   

  	
   

  	
  Title:   Vice President & Treasurer

  

 

[Indenture]

 

 

	
   

  	
  LAMONS GASKET COMPANY,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ HENRY GUND

  
	
   

  	
   

  	
  Name:

  	
  Henry Gund

  
	
   

  	
   

  	
  Title:

  	
  Vice President &
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TOWING HOLDING LLC,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT J. ZALUPSKI

  
	
   

  	
   

  	
  Name:

  	
  Robert J. Zalupski

  
	
   

  	
   

  	
  Title:

  	
  Treasurer

  

 

[Indenture]

 

 

	
   

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

  
	
   

  	
  as Trustee and Second Lien
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ BENITA A. VAUGHN

  
	
   

  	
   

  	
  Name:

  	
  Benita A. Vaughn

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

Signature
Page to Indenture

 

 

 

EXHIBIT A

 

[Face of Note]

 

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

 

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

 

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

 

[Insert the OID Legend
pursuant to the provisions of the Indenture]

 

A-1

 

CUSIP  [                     ]

ISIN  [                     ](1)

 

[[RULE 144A][REGULATION S]
GLOBAL NOTE

representing up to

$[                            ]

93⁄4% Senior Secured Notes due
2017

 

	
  No.          

  	
   

  	
  [$                            ]

  

 

TRIMAS CORPORATION

 

promises to pay to CEDE & CO. or
registered assigns, the principal sum [set forth on the Schedule of Exchanges
of Interests in the Global Note attached hereto] [of
                                                
United States Dollars] on December 15, 2017.

 

Interest Payment Dates:  December 15 and June 15

 

Record Dates:   December 1 and June 1

 

(1)                                Rule 144A
Note CUSIP:  896215 AE0

Rule 144A
Note ISIN:  US896215AE06

Regulation
S Note CUSIP:  U89616 AC7

Regulation
S Note ISIN:   USU89616AC73

 

A-2

 

IN WITNESS HEREOF, the Issuer has caused this
instrument to be duly executed.

 

	
  Dated:
  December 29, 2009

  	
   

  
	
   

  	
  TRIMAS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

This is one of the Notes
referred to in the within-mentioned Indenture:

 

 

	
   

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

  
	
   

  	
  as Trustee and Second Lien
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-4

 

 

[Back of Note]

 

93⁄4% Senior Secured Notes due
2017

 

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

 

1.                                       INTEREST.  TriMas Corporation, a Delaware corporation,
promises to pay interest on the principal amount of this Note at 93⁄4% per annum
from December 29, 2009 until maturity and shall pay the Additional
Interest, if any, payable pursuant to the Registration Rights Agreement referred
to below.  The Issuer shall pay interest
and Additional Interest, if any, semi-annually in arrears on June 15 and December 15
of each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each, an “Interest Payment Date”).  Interest on the Notes will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from the date of issuance; provided that the first Interest
Payment Date shall be June 15, 2010. 
The Issuer will pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand at the interest rate on the Notes; it shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest and Additional Interest, if
any, (without regard to any applicable grace periods) from time to time on
demand at the interest rate on the Notes. 
Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

2.                                       METHOD OF
PAYMENT.  The Issuer will pay interest on
the Notes and Additional Interest, if any, to the Persons who are registered
Holders of Notes at the close of business on June 1 or December 1
(whether or not a Business Day), as the case may be, next preceding the
Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest.  Payment of interest and Additional Interest,
if any, may be made by check mailed to the Holders at their addresses set forth
in the register of Holders, provided that payment by wire transfer of
immediately available funds will be required with respect to principal of and interest,
premium and Additional Interest, if any, on all Global Notes and all other
Notes the Holders of which shall have provided wire transfer instructions to
the Issuer or the Paying Agent.  Such
payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

 

3.                                       PAYING AGENT
AND REGISTRAR.  Initially, The Bank of
New York Mellon Trust Company, N.A., the Trustee and Second Lien Agent under
the Indenture, will act as Paying Agent and Registrar.  The Issuer may change any Paying Agent or
Registrar without notice to the Holders. 
The Issuer or any of its Subsidiaries may act in any such capacity.

 

4.                                       INDENTURE.  The Issuer issued the Notes under an
Indenture, dated as of December 29, 2009 (the “Indenture”), among
TriMas Corporation, the Guarantors named therein and the Trustee and Second
Lien Agent.  This Note is one of a duly
authorized issue of notes of the Issuer designated as its 93⁄4% Senior Secured
Notes due 2017.  The Issuer shall be
entitled to issue Additional Notes pursuant to Section 2.01 and 4.09 of
the Indenture.  The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”).  The Notes are
subject to all such terms, and Holders are referred to the Indenture and such
Act for a statement of such terms.  To
the extent any provision of this Note 

 

A-5

 

conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and
be controlling.

 

5.                                       OPTIONAL
REDEMPTION.

 

(a)                                  At any time prior to December 15,
2013, the Issuer may redeem all or a part of the Notes, upon not less than 30
nor more than 60 days’ prior notice mailed by first-class mail to the registered
address of each Holder of Notes, at a redemption price equal to 100% of the
principal amount of the Notes redeemed plus the Applicable Premium as of, and
accrued and unpaid interest and Additional Interest, if any, to the date of
redemption (the “Redemption Date”),
subject to the rights of Holders of Notes on the relevant Record Date to
receive interest due on the relevant Interest Payment Date.

 

(b)                                 Until December 15,
2012, the Issuer may, at its option, on one or more occasions redeem up to 35%
of the aggregate principal amount of Notes at a redemption price equal to
109.750% of the aggregate principal amount thereof, plus accrued and unpaid
interest thereon and Additional Interest, if any, to the applicable Redemption
Date, subject to the right of Holders of Notes of record on the relevant Record
Date to receive interest due on the relevant Interest Payment Date, with the
net cash proceeds of one or more Equity Offerings; provided that at least
65% of the original aggregate principal amount of Notes issued under the
Indenture remains outstanding immediately after the occurrence of each such
redemption; provided
further that each such redemption occurs within 90 days of the date of closing
of each such Equity Offering.  Notice of
any redemption upon any Equity Offering may be given prior to the redemption
thereof, and any such redemption or notice may, at the Issuer’s discretion, be
subject to one or more conditions precedent, including, but not limited to,
completion of the related Equity Offering.

 

(c)                                  On and after December 15,
2013, the Issuer may redeem the Notes, in whole or in part, upon not less than
30 nor more than 60 days’ prior notice by first-class mail, postage prepaid,
with a copy to the Trustee, to each Holder of Notes at the address of such
Holder appearing in the security register, at the redemption prices (expressed
as percentages of principal amount of the Notes to be redeemed) set forth
below, plus accrued and unpaid interest thereon and Additional Interest, if
any, to the applicable Redemption Date, subject to the right of Holders of
Notes of record on the relevant Record Date to receive interest due on the
relevant Interest Payment Date, if redeemed during the twelve-month period beginning
on December 15 of each of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2013

  	
   

  	
  104.875

  	
  %

  
	
  2014

  	
   

  	
  102.438

  	
  %

  
	
  2015 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(d)                                 Any redemption pursuant to
this paragraph 5 shall be made pursuant to the provisions of Sections 3.01
through 3.06 of the Indenture.

 

6.                                       MANDATORY
REDEMPTION.  The Issuer shall not be
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

7.                                       NOTICE OF
REDEMPTION.  Subject to Section 3.03
of the Indenture, notice of redemption will be mailed by first-class mail at
least 30 days but not more than 60 days before the 

 

A-6

 

redemption date (except that
redemption notices may be mailed more than 60 days prior to a redemption date
if the notice is issued in connection with Article 8 or Article 11 of
the Indenture) to each Holder whose Notes are to be redeemed at its registered
address.  Notes in denominations larger
than $2,000 may be redeemed in part but only in whole multiples of $1,000 in
excess thereof, unless all of the Notes held by a Holder are to be
redeemed.  On and after the redemption
date interest ceases to accrue on Notes or portions thereof called for
redemption.

 

8.                                       OFFERS TO
REPURCHASE.

 

(a)                                  Upon the occurrence of a
Change of Control, the Issuer shall make an offer (a “Change of Control
Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an
integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase
price equal to 101% of the aggregate principal amount thereof plus accrued and
unpaid interest and Additional Interest thereon, if any, to the date of purchase
(the “Change of Control Payment”). 
The Change of Control Offer shall be made in accordance with Section 4.14
of the Indenture.

 

(b)                                 At any time when the
aggregate amount of Excess Proceeds resulting from one or more Asset Sales
exceeds $25.0 million, the Issuer shall make an offer to:  (1) in the case of Net Proceeds from
Collateral, all Holders, and if required by the terms of any Other Second Lien
Obligations, holders of such Other Second Lien Obligations, and (2) in the
case of any other Net Proceeds, all Holders of Notes and all holders of other Indebtedness
that ranks pari passu in right of
payment with the Notes containing provisions similar to those set forth in the
Indenture with respect to offers to purchase or redeem with the proceeds of
sales of assets (“Pari Passu Indebtedness”), in each case (an “Asset
Sale Offer”), to purchase the maximum aggregate principal amount (or
accreted value, as applicable) of the Notes and such Other Second Lien
Obligations or Pari Passu Indebtedness, as applicable, that is a minimum amount
of $2,000 and in an integral multiple of $1,000 in excess thereof that may be
purchased out of the Excess Proceeds at an offer price in cash in an amount
equal to 100% of the principal amount thereof (or accreted value, as
applicable), plus accrued and unpaid interest and Additional Interest, if any,
to the date fixed for the closing of such offer, in accordance with the
procedures set forth in the Indenture. 
The Issuer shall commence an Asset Sale Offer with respect to Excess
Proceeds within 30 days after the date that Excess Proceeds exceed
$25.0 million by mailing the notice required pursuant to the terms of the
Indenture, with a copy to the Trustee.

 

To the extent that the aggregate principal amount
(or accreted value, as applicable) of Notes (including any Additional Notes)
and such Other Second Lien Obligations or Pari Passu Indebtedness, as
applicable, tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds,
the Issuer may use any remaining Excess Proceeds for general corporate
purposes, subject to the other covenants contained in the Indenture.  If the aggregate principal amount (or
accreted value, as applicable) of Notes and other Second Lien Obligations (in
the case of Net Proceeds from Collateral) or Notes and such Pari Passu
Indebtedness (in the case of any other Net Proceeds) surrendered by such
holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select
the Notes and such Other Second Lien Obligations or Pari Passu Indebtedness, as
applicable, to be purchased on a pro rata basis
based on the accreted value or principal amount of the Notes or such Other
Second Lien Obligations or Pari Passu Indebtedness, as applicable,
tendered.  Upon completion of any such
Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.  Holders of Notes that are the subject of an
offer to purchase will receive an Asset Sale Offer from the Issuer prior to any
related purchase date and may elect to have such Notes purchased by completing
the form entitled “Option of Holder to Elect Purchase” attached to the Notes.

 

A-7

 

9.                                       RANKING AND
COLLATERAL.  The Notes and the Guarantees
are general senior secured obligations of the Issuer and the Guarantors,
respectively, and are pari passu
in right of payment with all existing and future Indebtedness of the Issuer and
the Guarantors that is not subordinated in right of payment to the Notes or
Guarantees.  The security interests
securing the Notes and the Guarantees will be, pursuant to the Intercreditor
Agreement, second in priority to any and all security interests at any time
granted to secure the First Lien Obligations and will also be subject to all
other Permitted Liens.

 

10.                                 DENOMINATIONS, TRANSFER,
EXCHANGE.  The Notes are in registered
form without coupons in denominations of $2,000 and integral multiples of
$1,000 in excess thereof.  The transfer
of Notes may be registered and Notes may be exchanged as provided in the
Indenture.  The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Issuer may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture.  The Issuer need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part.  Also, the Issuer need not exchange or
register the transfer of any Notes for a period of 15 days before a selection
of Notes to be redeemed.

 

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

 

12.                                 AMENDMENT, SUPPLEMENT AND
WAIVER.  The Indenture, the Guarantees or
the Notes may be amended or supplemented as provided in the Indenture.

 

13.                                 DEFAULTS AND REMEDIES.  The Events of Default relating to the Notes
are defined in Section 6.01 of the Indenture.  If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare the principal, premium, if any, interest
and any other monetary obligations on all the then outstanding Notes to be due
and payable immediately.  Notwithstanding
the foregoing, in the case of an Event of Default arising from certain events
of bankruptcy or insolvency, all outstanding Notes will become due and payable
immediately without further action or notice. 
Holders may not enforce the Indenture, the Notes or the Guarantees
except as provided in the Indenture. 
Subject to certain limitations, Holders of a majority in aggregate
principal amount of the then outstanding Notes may direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Holders of the Notes notice of any continuing Default
(except a Default relating to the payment of principal, premium, if any,
Additional Interest, if any, or interest) if it determines that withholding
notice is in their interest.  The Holders
of a majority in aggregate principal amount of the Notes then outstanding by
notice to the Trustee may on behalf of the Holders of all of the Notes waive
any existing Default and/or its consequences under the Indenture except a
continuing Default in payment of the principal of, premium, if any, Additional
Interest, if any, or interest on, any of the Notes held by a non-consenting
Holder.  The Issuer and each Guarantor
(to the extent that such Guarantor is so required under the Trust Indenture
Act) is required to deliver to the Trustee annually a statement regarding
compliance with the Indenture, and the Issuer is required within 10 days
after becoming aware of any Default, to deliver to the Trustee a statement
specifying such Default and what action the Issuer proposes to take with
respect thereto.

 

14.                                 AUTHENTICATION.  This Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose until
authenticated by the manual signature of the Trustee.

 

A-8

 

15.                                 ADDITIONAL RIGHTS OF HOLDERS
OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES.  In addition to the rights provided to Holders
of Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the Registration Rights
Agreement, dated as of December 29, 2009, among TriMas Corporation and the
Guarantors named therein and the other parties named on the signature pages thereof
(the “Registration Rights Agreement”), including the right to receive
Additional Interest (as defined in the Registration Rights Agreement).

 

16.                                 GOVERNING LAW.  THE LAWS OF THE STATE OF NEW YORK SHALL
GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THE SECURITY DOCUMENTS, THE NOTES
AND THE GUARANTEES.

 

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

 

The Issuer will furnish to
any Holder upon written request and without charge a copy of the Security
Documents, Indenture and/or the Registration Rights Agreement.  Requests may be made to the Issuer at the following
address:

 

39400 Woodward Avenue, Suite 130

Bloomfield Hills, Michigan
48304

Fax. No.: (248) 631-5455

Attention: General Counsel

 

A-9

 

 

ASSIGNMENT FORM

 

	
  To assign this Note, fill in the form below:

  
	
   

  	
   

  
	
  (I) or (we) assign
  and transfer this Note to:

  	
   

  
	
   

  	
  (Insert
  assignee’ legal name)

  
	
   

  	
   

  
	
   

  
	
  (Insert assignee’s soc.
  sec. or tax I.D. no.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

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

  
	
  and irrevocably appoint

  	
   

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

  
	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name
  appears on the face of this Note)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
								

 

*
Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by
the Issuer pursuant to Section 4.10 or 4.14 of the Indenture, check the
appropriate box below:

 

o Section 4.10         o Section 4.14

 

If you want to elect to have only part of this Note
purchased by the Issuer pursuant to Section 4.10 or Section 4.14 of
the Indenture, state the amount you elect to have purchased:

 

$                    

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Tax
  Identification No.:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
							

 

*
Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-11

 

SCHEDULE OF EXCHANGES OF INTERESTS IN
THE GLOBAL NOTE*

 

The initial outstanding principal amount of this
Global Note is
$                  .  The following exchanges of a part of this
Global Note for an interest in another Global Note or for a Definitive Note, or
exchanges of a part of another Global or Definitive Note for an interest in
this Global Note, have been made:

 

	
  Date
  of

  Exchange

  	
   

  	
  Amount of

  decrease

  in Principal

  Amount

  	
   

  	
  Amount of increase

  in Principal

  Amount of this

  Global Note

  	
   

  	
  Principal Amount 

  of

  this Global Note

  following such

  decrease or

  increase

  	
   

  	
  Signature of

  authorized officer

  of Trustee or 

  Note Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*This
schedule should be included only if the Note is issued in global form.

 

A-12

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

TriMas Corporation

39400 Woodward Avenue, Suite 130

Bloomfield Hills, Michigan
48304

Fax. No.: (248) 631-5455

Attention: General Counsel

 

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

101 Barclay Street

New York, New York 10286

Fax. No.: (212) 896-7299

Attention:
Corporate Trust Administration

 

Re:  93⁄4%
Senior Secured Notes due 2017

 

Reference is hereby made to the Indenture, dated as
of December 29, 2009 (the “Indenture”), among TriMas Corporation,
the Guarantors named therein and the Trustee and the Second Lien Agent.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

(the “Transferor”)
owns and proposes to transfer the Note[s] or interest in such Note[s] specified
in Annex A hereto, in the principal amount of
$                      
in such Note[s] or interests (the “Transfer”), to
                              
(the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the Transferor
hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.             o CHECK IF TRANSFEREE WILL
TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE 144A GLOBAL NOTE OR A DEFINITIVE
NOTE PURSUANT TO RULE 144A.  The Transfer
is being effected pursuant to and in accordance with Rule 144A under the
United States Securities Act of 1933, as amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Note
for its own account, or for one or more accounts with respect to which such
Person exercises sole investment discretion, and such Person and each such
account is a “qualified institutional buyer” within the meaning of Rule 144A
in a transaction meeting the requirements of Rule 144A and such Transfer
is in compliance with any applicable blue sky securities laws of any state of
the United States.

 

2.             o CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE REGULATION S
GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO REGULATION S.  The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the
Transfer is not being made to a person in the United States and (x) at the
time the buy order was originated, the 

 

B-1

 

Transferee was outside the
United States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on
its behalf knows that the transaction was prearranged with a buyer in the
United States, (ii) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S under the Securities Act (iii) the transaction is not part of
a plan or scheme to evade the registration requirements of the Securities Act
and (iv) if the proposed transfer is being made prior to the expiration of
the Restricted Period, the transfer is not being made to a U.S. Person or for
the account or benefit of a U.S. Person (other than an Initial Purchaser).  Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on Transfer enumerated
in the Indenture and the Securities Act.

 

3.             o CHECK AND
COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
DEFINITIVE NOTE PURSUANT TO ANY PROVISION OF THE SECURITIES ACT OTHER THAN RULE
144A OR REGULATION S.  The Transfer is
being effected in compliance with the transfer restrictions applicable to
beneficial interests in Restricted Global Notes and Restricted Definitive Notes
and pursuant to and in accordance with the Securities Act and any applicable
blue sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

 

(a)           o such Transfer is being
effected pursuant to and in accordance with Rule 144 under the Securities
Act;

 

or

 

(b)           o such Transfer is being
effected to the Issuer or a subsidiary thereof;

 

or

 

(c)           o such Transfer is being
effected pursuant to an effective registration statement under the Securities
Act and in compliance with the prospectus delivery requirements of the Securities
Act.

 

4.             o CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN AN UNRESTRICTED
GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

 

(a)           o CHECK IF TRANSFER IS
PURSUANT TO RULE 144. (i) The Transfer is being effected pursuant to and
in accordance with Rule 144 under the Securities Act and in compliance
with the transfer restrictions contained in the Indenture and any applicable
blue sky securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Global Notes, on Restricted Definitive Notes and in the Indenture.

 

B-2

 

(b)           o CHECK IF TRANSFER IS
PURSUANT TO REGULATION S. (i) The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

 

(c)           o CHECK IF TRANSFER IS
PURSUANT TO OTHER EXEMPTION.  (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule 903
or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
not be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes or Restricted
Definitive Notes and in the Indenture.

 

B-3

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Issuer.

 

 

	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
					

 

B-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.             The Transferor
owns and proposes to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)           o a beneficial interest in
the:

 

(i)     o 144A Global Note (CUSIP 896215 AE0), or

 

(ii)    o Regulation S Global Note
(CUSIP U89616 AC7), or

 

(b)           o a Restricted Definitive
Note.

 

2.             After the
Transfer the Transferee will hold:

 

[CHECK ONE]

 

(a)           o a beneficial interest in
the:

 

(i)     o 144A Global Note (CUSIP 896215 AE0), or

 

(ii)    o Regulation S Global Note
(CUSIP U89616 AC7);

 

(b)           o a Restricted Definitive
Note; or

 

(c)            o an
Unrestricted Definitive Note, in accordance with the terms of the Indenture.

 

B-5

 

EXHIBIT C

 

FORM OF CERTIFICATE OF
EXCHANGE

 

TriMas Corporation

39400 Woodward Avenue, Suite 130

Bloomfield Hills, Michigan 48304

Fax No.: (248) 631-5455

Attention: General Counsel

 

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

101 Barclay Street

New York, New York 10286

Fax No.: (212) 896-7299

Attention:
Corporate Trust Administration

 

Re:  93⁄4%
Senior Secured Notes due 2017

 

Reference is hereby made to the Indenture, dated as
of December 29, 2009 (the “Indenture”), among TriMas Corporation,
the Guarantors named therein and the Trustee and the Second Lien Agent.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

                      
(the “Owner”) owns and proposes to exchange the Note[s] or interest in
such Note[s] specified herein, in the principal amount of
$                    
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

 

1)                                      EXCHANGE OF
RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL NOTE
FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN AN UNRESTRICTED
GLOBAL NOTE

 

a)                                   o CHECK IF EXCHANGE IS FROM
BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO BENEFICIAL INTEREST IN AN
UNRESTRICTED GLOBAL NOTE.  In connection
with the Exchange of the Owner’s beneficial interest in a Restricted Global
Note for a beneficial interest in an Unrestricted Global Note in an equal
principal amount, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Notes and pursuant to and in accordance with the
United States Securities Act of 1933, as amended (the “Securities Act”),
(iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the beneficial interest in an Unrestricted
Global Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

b)                                  o CHECK IF
EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
UNRESTRICTED DEFINITIVE NOTE.  In connection
with the Exchange of the Owner’s beneficial interest in a Restricted Global 

 

C-1

 

Note for an Unrestricted Definitive Note, the Owner
hereby certifies (i) the Definitive Note is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Restricted Global
Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

 

c)                                   o CHECK IF
EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL INTEREST IN AN
UNRESTRICTED GLOBAL NOTE.  In connection
with the Owner’s Exchange of a Restricted Definitive Note for a beneficial interest
in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to
and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

 

d)                                  o CHECK IF
EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO UNRESTRICTED DEFINITIVE
NOTE.  In connection with the Owner’s Exchange
of a Restricted Definitive Note for an Unrestricted Definitive Note, the Owner
hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

2)                                      EXCHANGE OF
RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES
FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL
NOTES

 

a)                                   o CHECK IF
EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO RESTRICTED
DEFINITIVE NOTE.  In connection with the
Exchange of the Owner’s beneficial interest in a Restricted Global Note for a
Restricted Definitive Note with an equal principal amount, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner’s
own account without transfer.  Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Restricted Definitive Note issued will continue to be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Definitive Note and in the Indenture and the Securities Act.

 

b)                                  o CHECK IF
EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE.  In 

 

C-2

 

connection with the Exchange of the Owner’s
Restricted Definitive Note for a beneficial interest in the [CHECK ONE] o 144A Global
Note o Regulation S
Global Note, with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and
the Securities Act.

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Issuer and are dated
                                            .

 

 

	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
					

 

C-3

 

EXHIBIT D

 

[FORM OF SUPPLEMENTAL
INDENTURE

TO BE DELIVERED BY SUBSEQUENT
GUARANTORS]

 

Supplemental Indenture (this “Supplemental
Indenture”), dated as of
                    ,
among
                                    
(the “Guaranteeing Subsidiary”), a subsidiary of TriMas Corporation, a
Delaware Corporation (the “Issuer”), and The Bank of New York Mellon
Trust Company, N.A., as Trustee and Second Lien Agent (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, each of the Issuer and the Guarantors (as
defined in the Indenture referred to below) has heretofore executed and
delivered to the Trustee an indenture (the “Indenture”), dated as of December 29,
2009, providing for the issuance of an unlimited aggregate principal amount of
93⁄4% Senior Secured Notes due 2017 (the “Notes”);

 

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

 

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

 

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

 

(1)                                  Capitalized
Terms.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

(2)                                  Agreement to
Guarantee.  The
Guaranteeing Subsidiary hereby agrees as follows:

 

(a)                                  Along with all
Guarantors named in the Indenture, to jointly and severally unconditionally
guarantee to each Holder of a Note authenticated and delivered by the Trustee
and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of the Indenture, the Notes or the obligations of the Issuer
hereunder or thereunder, that:

 

(i)                                      the principal
of and interest, premium and Additional Interest, if any, on the Notes will be
promptly paid in full when due, whether at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest
on the Notes, if any, if lawful, and all other obligations of the Issuer to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and

 

D-1

 

(ii)                                   in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity,
by acceleration or otherwise.  Failing
payment when due of any amount so guaranteed or any performance so guaranteed
for whatever reason, the Guarantors and the Guaranteeing Subsidiary shall be
jointly and severally obligated to pay the same immediately.  This is a guarantee of payment and not a
guarantee of collection.

 

(b)                                 The obligations
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or the Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder of the Notes with respect
to any provisions hereof or thereof, the recovery of any judgment against the
Issuer, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor.

 

(c)                                  The following
is hereby waived: diligence, presentment, demand of payment, filing of claims
with a court in the event of insolvency or bankruptcy of the Issuer, any right
to require a proceeding first against the Issuer, protest, notice and all
demands whatsoever.

 

(d)                                 This Guarantee
shall not be discharged except by complete performance of the obligations
contained in the Notes, the Indenture and this Supplemental Indenture, and the
Guaranteeing Subsidiary accepts all obligations of a Guarantor under the
Indenture.

 

(e)                                  If any Holder
or the Trustee is required by any court or otherwise to return to the Issuer,
the Guarantors (including the Guaranteeing Subsidiary), or any custodian,
trustee, liquidator or other similar official acting in relation to either the
Issuer or the Guarantors, any amount paid either to the Trustee or such Holder,
this Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect.

 

(f)                                    The
Guaranteeing Subsidiary shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.

 

(g)                                 As between the
Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on
the other hand, (x) the maturity of the obligations guaranteed hereby may
be accelerated as provided in Article 6 of the Indenture for the purposes
of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (y) in
the event of any declaration of acceleration of such obligations as provided in
Article 6 of the Indenture, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Guaranteeing Subsidiary for the
purpose of this Guarantee.

 

(h)                                 The
Guaranteeing Subsidiary shall have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the
rights of the Holders under this Guarantee.

 

(i)                                     Pursuant to Section 10.02
of the Indenture, after giving effect to all other contingent and fixed
liabilities that are relevant under any applicable Bankruptcy or fraudulent
conveyance laws, and after giving effect to any collections from, rights to
receive contribution 

 

D-2

 

from or payments made by or
on behalf of any other Guarantor in respect of the obligations of such other
Guarantor under Article 10 of the Indenture, this new Guarantee shall be
limited to the maximum amount permissible such that the obligations of such
Guaranteeing Subsidiary under this Guarantee will not constitute a fraudulent
transfer or conveyance.

 

(j)                                     This Guarantee
shall remain in full force and effect and continue to be effective should any
petition be filed by or against the Issuer for liquidation, reorganization,
should the Issuer become insolvent or make an assignment for the benefit of
creditors or should a receiver or trustee be appointed for all or any
significant part of the Issuer’s assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may
be, if at any time payment and performance of the Notes are, pursuant to applicable
law, rescinded or reduced in amount, or must otherwise be restored or returned
by any obligee on the Notes and Guarantee, whether as a “voidable preference”, “fraudulent
transfer” or otherwise, all as though such payment or performance had not been
made.  In the event that any payment or
any part thereof, is rescinded, reduced, restored or returned, the Note shall,
to the fullest extent permitted by law, be reinstated and deemed reduced only
by such amount paid and not so rescinded, reduced, restored or returned.

 

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

 

(l)                                     This Guarantee
shall be a general senior secured obligation of such Guaranteeing Subsidiary,
ranking pari passu with any other future
Indebtedness of the Guaranteeing Subsidiary, that is not subordinated in right
of payment to this Guarantee.

 

(m)                               Each payment to
be made by the Guaranteeing Subsidiary in respect of this Guarantee shall be
made without set-off, counterclaim, reduction or diminution of any kind or nature.

 

(3)                                  Execution and
Delivery.  The
Guaranteeing Subsidiary agrees that the Guarantee shall remain in full force
and effect notwithstanding the absence of the endorsement of any notation of
such Guarantee on the Notes.

 

(4)                                  Merger,
Consolidation or Sale of All or Substantially All Assets.

 

(a)                                  Except as
otherwise provided in Section 5.01(c) of the Indenture, the Guaranteeing
Subsidiary may not consolidate or merge with or into or wind up into (whether
or not the Issuer or Guaranteeing Subsidiary 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 any Person unless:

 

(i)                                     (A) the
Guaranteeing Subsidiary is the surviving corporation or the Person formed by or
surviving any such consolidation or merger (if other than the Guaranteeing Subsidiary)
or to which such sale, assignment, transfer, lease, conveyance or other
disposition will have been made is a corporation organized or existing under
the laws of the jurisdiction of organization of the Guaranteeing Subsidiary, as
the case may be, or the laws of the United States, any state thereof, the
District of Columbia, or any territory thereof (the Guaranteeing Subsidiary or
such Person, as the case may be, being herein called the “Successor Person”);

 

D-3

 

(B)                                the Successor
Person, if other than the Guaranteeing Subsidiary, expressly assumes all the
obligations of the Guaranteeing Subsidiary under the Indenture and the Guaranteeing
Subsidiary’s related Guarantee pursuant to supplemental indentures or other
documents or instruments in form reasonably satisfactory to the Trustee;

 

(C)                                immediately
after such transaction, no Default exists; and

 

(D)                               the Issuer
shall have delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, if any, comply with the Indenture; or

 

(ii)                                  the transaction
is made in compliance with Section 4.10 of the Indenture;

 

(b)                                 Subject to
certain limitations described in the Indenture, the Successor Person will
succeed to, and be substituted for, the Guaranteeing Subsidiary under the
Indenture and the Guaranteeing Subsidiary’s Guarantee.  Notwithstanding the foregoing, the
Guaranteeing Subsidiary may merge into or transfer all or part of its
properties and assets to another Guarantor or the Issuer.

 

(5)                                  Releases.

 

The Guarantee of the Guaranteeing Subsidiary shall
be automatically and unconditionally released and discharged, and no further
action by the Guaranteeing Subsidiary, the Issuer or the Trustee is required
for the release of the Guaranteeing Subsidiary’s Guarantee, upon:

 

(1)                                  (A)  any
sale, exchange or transfer (by merger or otherwise) of the Capital Stock of the
Guaranteeing Subsidiary (including any sale, exchange or transfer), after which
the Guaranteeing Subsidiary is no longer a Restricted Subsidiary or all or
substantially all the assets of the Guaranteeing Subsidiary which sale,
exchange or transfer is made in compliance with the applicable provisions of
the Indenture;

 

(B)                                the release or
discharge of the guarantee by the Guaranteeing Subsidiary of the Senior Credit
Facilities or the guarantee which resulted in the creation of the Guarantee, except
a discharge or release by or as a result of payment under such guarantee;

 

(C)                                the proper
designation of the Guaranteeing Subsidiary as an Unrestricted Subsidiary; or

 

(D)                               the Issuer
exercising its Legal Defeasance option or Covenant Defeasance option in
accordance with Article 8 of the Indenture or the Issuer’s obligations
under the Indenture being discharged in accordance with the terms of the
Indenture; and

 

(2)                                   the
Guaranteeing Subsidiary delivering to the Trustee an Officer’s Certificate and
an Opinion of Counsel, each stating that all conditions precedent provided for
in the Indenture relating to such transaction have been complied with.

 

(6)                                  No Recourse
Against Others.  No
director, officer, employee, incorporator or stockholder of the Guaranteeing
Subsidiary shall have any liability for any obligations of the Issuer or the
Guarantors (including the Guaranteeing Subsidiary) under the Notes, any
Guarantees, the Indenture or this Supplemental Indenture or for any claim based
on, in respect of, or by reason of, such obligations or 

 

D-4

 

their creation.  Each Holder by accepting the Notes waives and
releases all such liability.  The waiver
and release are part of the consideration for issuance of the Notes.

 

(7)                                  Governing Law.  THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

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

 

(9)                                  Effect of
Headings.  The Section headings
herein are for convenience only and shall not affect the construction hereof.

 

(10)                            The Trustee.  The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Guaranteeing Subsidiary.

 

(11)                            Subrogation.  The Guaranteeing Subsidiary shall be
subrogated to all rights of Holders of Notes against the Issuer in respect of
any amounts paid by the Guaranteeing Subsidiary pursuant to the provisions of Section 2
hereof and Section 10.01 of the Indenture; provided that, if an
Event of Default has occurred and is continuing, the Guaranteeing Subsidiary
shall not be entitled to enforce or receive any payments arising out of, or
based upon, such right of subrogation until all amounts then due and payable by
the Issuer under the Indenture or the Notes shall have been paid in full.

 

(12)                            Benefits
Acknowledged.  The
Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set
forth in the Indenture.  The Guaranteeing
Subsidiary acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by the Indenture and this Supplemental
Indenture and that the guarantee and waivers made by it pursuant to this
Guarantee are knowingly made in contemplation of such benefits.

 

(13)                            Successors.  All agreements of the Guaranteeing Subsidiary
in this Supplemental Indenture shall bind its Successors, except as otherwise
provided in Section 2(k) hereof or elsewhere in this Supplemental
Indenture.  All agreements of the Trustee
in this Supplemental Indenture shall bind its successors.

 

D-5

 

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

 

 

	
   

  	
  [GUARANTEEING SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK
  MELLON TRUST COMPANY, N.A., as Trustee and Second Lien Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

D-6

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