Document:

exv4w1

Exhibit 4.1

 

 

NEBRASKA BOOK COMPANY, INC.,

THE SUBSIDIARY GUARANTORS PARTIES HERETO,

AND

WILMINGTON TRUST FSB

as Trustee and Collateral Agent

10.0% Senior Secured Notes due 2011

 

INDENTURE

Dated as of October 2, 2009

 

 

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 	 	 	 
	TIA	 	 	 	Indenture	 
	Section	 	 	 	Section	 
	310 	(a)(1)	 	 
	 	 	7.10	 
	 	(a)(2)	 	 
	 	 	7.10	 
	 	(a)(3)	 	 
	 	 	N.A.	 
	 	(a)(4)	 	 
	 	 	N.A.	 
	 	(a)(5)	 	 
	 	 	7.10	 
	 	(b)	 	 
	 	 	7.8; 7.10	 
	 	(c)	 	 
	 	 	N.A.	 
	311 	(a)	 	 
	 	 	7.11	 
	 	(b)	 	 
	 	 	7.11	 
	 	(c)	 	 
	 	 	N.A.	 
	312 	(a)	 	 
	 	 	2.5	 
	 	(b)	 	 
	 	 	13.3	 
	 	(c)	 	 
	 	 	13.3	 
	313 	(a)	 	 
	 	 	7.6	 
	 	(b)(1)	 	 
	 	 	7.6	 
	 	(b)(2)	 	 
	 	 	7.6	 
	 	(c)	 	 
	 	 	7.6	 
	 	(d)	 	 
	 	 	7.6	 
	314 	(a)	 	 
	 	 	3.2; 3.17; 13.2	 
	 	(b)	 	 
	 	 	N.A.	 
	 	(c)(1)	 	 
	 	 	13.4	 
	 	(c)(2)	 	 
	 	 	13.4	 
	 	(c)(3)	 	 
	 	 	N.A.	 
	 	(d)	 	 
	 	 	N.A.	 
		(e)	 	 
	 	 	13.5	 
	315 	(a)	 	 
	 	 	7.1	 
	 	(b)	 	 
	 	 	7.5; 13.2	 
	 	(c)	 	 
	 	 	7.1	 
	 	(d)	 	 
	 	 	7.1	 
	 	(e)	 	 
	 	 	6.11	 
	316	 (a)(last sentence)	 	 
	 	 	13.6	 
	 	(a)(1)(a)	 	 
	 	 	6.5	 
	 	(a)(1)(b)	 	 
	 	 	6.4	 
	 	(a)(2)	 	 
	 	 	N.A.	 
	 	(b)	 	 
	 	 	6.7	 
	 	(c)	 	 
	 	 	9.4	 
	317 	(a)(1)	 	 
	 	 	6.8	 
	 	(a)(2)	 	 
	 	 	6.9	 
	 	(b)	 	 
	 	 	2.4	 
	318 	(a)	 	 
	 	 	13.1	 
	 
	N.A. means Not Applicable.	 	 	 

 

 

 3

	 	 	 
	Note:	 	This Cross-Reference Table shall not, for any
purpose, be deemed to be part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I

	 
	 	 	 	 	 	 
	Definitions and Incorporation by Reference 

	 
	 	 	 	 	 	 
	SECTION 1.1.

	 	Definitions
	 	 	1	 
	SECTION 1.2.

	 	Other Definitions
	 	 	29	 
	SECTION 1.3.

	 	Incorporation by Reference of Trust Indenture Act
	 	 	30	 
	SECTION 1.4.

	 	Rules of Construction
	 	 	31	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 
	 	 	 	 	 	 
	The Securities

	 
	 	 	 	 	 	 
	SECTION 2.1.

	 	Form, Dating and Terms
	 	 	32	 
	SECTION 2.2.

	 	Execution and Authentication
	 	 	39	 
	SECTION 2.3.

	 	Registrar and Paying Agent
	 	 	40	 
	SECTION 2.4.

	 	Paying Agent To Hold Money in Trust
	 	 	41	 
	SECTION 2.5.

	 	Securityholder Lists
	 	 	41	 
	SECTION 2.6.

	 	Transfer and Exchange
	 	 	41	 
	SECTION 2.7.

	 	Form of Certificate to be Delivered in Connection with Transfers to Institutional Accredited Investors
	 	 	44	 
	SECTION 2.8.

	 	Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S
	 	 	46	 
	SECTION 2.9.

	 	Mutilated, Destroyed, Lost or Stolen Securities
	 	 	47	 
	SECTION 2.10.

	 	Outstanding Securities
	 	 	48	 
	SECTION 2.11.

	 	Temporary Securities
	 	 	48	 
	SECTION 2.12.

	 	Cancellation
	 	 	49	 
	SECTION 2.13.

	 	Payment of Interest; Defaulted Interest
	 	 	49	 
	SECTION 2.14.

	 	Computation of Interest
	 	 	50	 
	SECTION 2.15.

	 	CUSIP Numbers
	 	 	50	 
	SECTION 2.16.

	 	Issuance of Additional Securities
	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE III 

	 
	 	 	 	 	 	 
	Covenants

	 
	 	 	 	 	 	 
	SECTION 3.1.

	 	Payment of Securities
	 	 	51	 
	SECTION 3.2.

	 	SEC Reports and Available Information
	 	 	51	 
	SECTION 3.3.

	 	Limitation on Indebtedness
	 	 	52	 
	SECTION 3.4.

	 	[Reserved]
	 	 	55	 
	SECTION 3.5.

	 	Limitation on Restricted Payments
	 	 	55	 
	SECTION 3.6.

	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	59	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	SECTION 3.7.

	 	Limitation on Sales of Assets and Subsidiary Stock
	 	 	60	 
	SECTION 3.8.

	 	Limitation on Affiliate Transactions
	 	 	63	 
	SECTION 3.9.

	 	Change of Control
	 	 	64	 
	SECTION 3.10.

	 	Limitation on Sale of Capital Stock of Restricted Subsidiaries
	 	 	65	 
	SECTION 3.11.

	 	Limitation on Liens
	 	 	66	 
	SECTION 3.12.

	 	Future Subsidiary Guarantors
	 	 	66	 
	SECTION 3.13.

	 	Limitation on Lines of Business
	 	 	67	 
	SECTION 3.14.

	 	Maintenance of Office or Agency
	 	 	67	 
	SECTION 3.15.

	 	Corporate Existence
	 	 	67	 
	SECTION 3.16.

	 	[Reserved]
	 	 	68	 
	SECTION 3.17.

	 	Compliance Certificate
	 	 	68	 
	SECTION 3.18.

	 	Further Instruments and Acts
	 	 	68	 
	SECTION 3.19.

	 	Payments for Consent
	 	 	68	 
	SECTION 3.20.

	 	Statement by Officers as to Default
	 	 	68	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 	 	 
	Successor Company 

	 
	 	 	 	 	 	 
	SECTION 4.1.

	 	Merger and Consolidation
	 	 	68	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 
	 	 	 	 	 	 
	Redemption of Securities

	 
	 	 	 	 	 	 
	SECTION 5.1.

	 	Optional Redemption
	 	 	71	 
	SECTION 5.2.

	 	Applicability of Article
	 	 	71	 
	SECTION 5.3.

	 	Election to Redeem; Notice to Trustee
	 	 	71	 
	SECTION 5.4.

	 	Selection by Trustee of Securities to Be Redeemed
	 	 	71	 
	SECTION 5.5.

	 	Notice of Redemption
	 	 	71	 
	SECTION 5.6.

	 	Deposit of Redemption Price
	 	 	72	 
	SECTION 5.7.

	 	Securities Payable on Redemption Date
	 	 	73	 
	SECTION 5.8.

	 	Securities Redeemed in Part
	 	 	73	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 	 	 
	Defaults and Remedies

	 
	 	 	 	 	 	 
	SECTION 6.1.

	 	Events of Default
	 	 	73	 
	SECTION 6.2.

	 	Acceleration
	 	 	76	 
	SECTION 6.3.

	 	Other Remedies
	 	 	77	 
	SECTION 6.4.

	 	Waiver of Past Defaults
	 	 	77	 
	SECTION 6.5.

	 	Control by Majority
	 	 	77	 
	SECTION 6.6.

	 	Limitation on Suits
	 	 	78	 
	SECTION 6.7.

	 	Rights of Holders to Receive Payment
	 	 	78	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	SECTION 6.8.

	 	Collection Suit by Trustee
	 	 	78	 
	SECTION 6.9.

	 	Trustee May File Proofs of Claim
	 	 	78	 
	SECTION 6.10.

	 	Priorities
	 	 	79	 
	SECTION 6.11.

	 	Undertaking for Costs
	 	 	79	 
	 
	 	 	 	 	 	 
	ARTICLE VII 

	 
	 	 	 	 	 	 
	Trustee

	 
	 	 	 	 	 	 
	SECTION 7.1.

	 	Duties of Trustee
	 	 	80	 
	SECTION 7.2.

	 	Rights of Trustee
	 	 	81	 
	SECTION 7.3.

	 	Individual Rights of Trustee
	 	 	83	 
	SECTION 7.4.

	 	Trustee’s Disclaimer
	 	 	83	 
	SECTION 7.5.

	 	Notice of Defaults
	 	 	83	 
	SECTION 7.6.

	 	Reports by Trustee to Holders
	 	 	83	 
	SECTION 7.7.

	 	Compensation and Indemnity
	 	 	84	 
	SECTION 7.8.

	 	Replacement of Trustee
	 	 	85	 
	SECTION 7.9.

	 	Successor Trustee by Merger
	 	 	86	 
	SECTION 7.10.

	 	Eligibility; Disqualification
	 	 	86	 
	SECTION 7.11.

	 	Preferential Collection of Claims Against Company
	 	 	86	 
	SECTION 7.12.

	 	Limitation on Duty of Trustee and Collateral Agent in Respect of Collateral; Indemnification
	 	 	86	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 	 	 
	Discharge of Indenture; Defeasance

	 
	 	 	 	 	 	 
	SECTION 8.1.

	 	Discharge of Liability on Securities; Defeasance
	 	 	87	 
	SECTION 8.2.

	 	Conditions to Defeasance
	 	 	88	 
	SECTION 8.3.

	 	Application of Trust Money
	 	 	90	 
	SECTION 8.4.

	 	Repayment to Company
	 	 	90	 
	SECTION 8.5.

	 	Indemnity for U.S. Government Obligations
	 	 	90	 
	SECTION 8.6.

	 	Reinstatement
	 	 	90	 
	 
	 	 	 	 	 	 
	ARTICLE IX 

	 
	 	 	 	 	 	 
	Amendments

	 
	 	 	 	 	 	 
	SECTION 9.1.

	 	Without Consent of Holders
	 	 	90	 
	SECTION 9.2.

	 	With Consent of Holders
	 	 	93	 
	SECTION 9.3.

	 	Compliance with Trust Indenture Act
	 	 	94	 
	SECTION 9.4.

	 	Revocation and Effect of Consents and Waivers
	 	 	94	 
	SECTION 9.5.

	 	Notation on or Exchange of Securities
	 	 	95	 
	SECTION 9.6.

	 	Trustee To Sign Amendments
	 	 	95	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE X 

	 
	 	 	 	 	 	 
	Collateral and Security

	 
	 	 	 	 	 	 
	SECTION 10.1.

	 	The Collateral
	 	 	95	 
	SECTION 10.2.

	 	Further Assurances
	 	 	96	 
	SECTION 10.3.

	 	Impairment of Security Interest
	 	 	97	 
	SECTION 10.4.

	 	After-Acquired Property
	 	 	97	 
	SECTION 10.5.

	 	Real Estate Mortgages and Filings
	 	 	98	 
	SECTION 10.6.

	 	Leasehold Interests
	 	 	99	 
	SECTION 10.7.

	 	Release of Liens on the Collateral
	 	 	99	 
	SECTION 10.8.

	 	Authorization of Actions to be Taken by the Trustee or the Collateral Agent Under the Collateral Documents
	 	 	100	 
	SECTION 10.9.

	 	Collateral Accounts
	 	 	102	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 	 	 
	SECTION 11.1.

	 	Subsidiary Guarantee
	 	 	103	 
	SECTION 11.2.

	 	Limitation on Liability; Termination, Release and Discharge
	 	 	106	 
	SECTION 11.3.

	 	Right of Contribution
	 	 	107	 
	SECTION 11.4.

	 	No Subrogation
	 	 	108	 
	 
	 	 	 	 	 	 
	ARTICLE XII

	 
	 	 	 	 	 	 
	ARTICLE XIII

	 
	 	 	 	 	 	 
	Miscellaneous

	 
	 	 	 	 	 	 
	SECTION 13.1.

	 	Trust Indenture Act Controls
	 	 	108	 
	SECTION 13.2.

	 	Notices
	 	 	108	 
	SECTION 13.3.

	 	Communication by Holders with other Holders
	 	 	109	 
	SECTION 13.4.

	 	Certificate and Opinion as to Conditions Precedent
	 	 	109	 
	SECTION 13.5.

	 	Statements Required in Certificate or Opinion
	 	 	110	 
	SECTION 13.6.

	 	When Securities Disregarded
	 	 	110	 
	SECTION 13.7.

	 	Rules by Trustee, Paying Agent and Registrar
	 	 	110	 
	SECTION 13.8.

	 	[Legal Holidays
	 	 	110	 
	SECTION 13.9.

	 	GOVERNING LAW
	 	 	110	 
	SECTION 13.10.

	 	No Recourse Against Others
	 	 	111	 
	SECTION 13.11.

	 	Successors
	 	 	111	 
	SECTION 13.12.

	 	Multiple Originals
	 	 	111	 
	SECTION 13.13.

	 	Variable Provisions
	 	 	111	 
	SECTION 13.14.

	 	Qualification of Indenture
	 	 	111	 
	SECTION 13.15.

	 	Table of Contents; Headings
	 	 	111	 
	SECTION 13.16.

	 	Intercreditor Agreement Control
	 	 	111	 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	SECTION 13.17

	 	Direction by Holders to Enter into Collateral Documents and
Intercreditor Agreement
	 	 	112	 
	SECTION 13.18

	 	Force Majeure
	 	 	112	 

	 	 	 	 	 	 	 
	SCHEDULE 1
	 	Premises	 	 	A-1	 
	EXHIBIT A
	 	Form of the Initial Security	 	 	B-1	 
	EXHIBIT B
	 	Form of the Exchange Security	 	 	C-1	 
	EXHIBIT C
	 	Form of Indenture Supplement to Add Subsidiary Guarantors	 	 	D-1	 
	EXHIBIT D
	 	Form of Intercreditor Agreement	 	 	E-1	 

v

 

          INDENTURE dated as of October 2, 2009, among NEBRASKA BOOK COMPANY, INC., a Kansas corporation
(the “Company”), THE SUBSIDIARY GUARANTORS (as defined herein) and WILMINGTON TRUST FSB, a
federal savings bank (in such capacity, the “Trustee”) and as collateral agent (in such
capacity, the “Collateral Agent”).

          Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of (i) the Company’s 10.0% Senior Secured Notes due 2011 issued on
the date hereof (the “Initial Securities”), (ii) if and when issued an unlimited principal
amount of additional 10.0% Senior Secured Notes due 2011 that may be offered from time to time
subsequent to the Issue Date (the “Additional Securities”), (iii) in exchange for Initial
Securities or any Additional Securities as provided in the Registration Rights Agreement or a
similar agreement relating to Initial Securities or Additional Securities, the Company’s 10.0%
Senior Secured Notes due 2011 (the “Exchange Securities” and, together with the Initial
Securities and any Additional Securities, the “Securities”).

ARTICLE I

Definitions and Incorporation by Reference

          SECTION 1.1.    Definitions.

          “Acquired Indebtedness” means Indebtedness (i) of a Person or any of its Subsidiaries existing
at the time such Person becomes a Restricted Subsidiary or (ii) assumed in connection with the
acquisition of assets from or merger with such Person, in each case whether or not Incurred by such
Person in connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary or such merger or acquisition, and Indebtedness secured by a Lien encumbering
any asset acquired by such Person. Acquired Indebtedness shall be deemed to have been Incurred,
with respect to clause (i) of the preceding sentence, on the date such Person becomes a Restricted
Subsidiary and, with respect to clause (ii) of the preceding sentence, on the date of consummation
of such merger or acquisition of assets.

          “Additional Assets” means:

     (1)   any property or assets (other than Indebtedness and Capital Stock) to be used by
the Company or a Restricted Subsidiary in a Related Business;

     (2)   the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of
the acquisition of such Capital Stock by the Company or a Restricted Subsidiary; or

     (3)   Capital Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary;

          provided, however, that, in the case of clauses (2) and (3), such Restricted Subsidiary is
primarily engaged in a Related Business.

 

2

          “Additional Securities” has the meaning ascribed to it in the second introductory paragraph of
this Indenture.

          “Administrative Agent” means the administrative agent under the Credit Agreement.

          “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 the purposes of this definition, “control” when used with respect to any Person means the power
to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing; provided that beneficial ownership of 10%
or more of the Voting Stock of a Person shall be deemed to be control.

          “Applicable Premium” means, with respect to a Security on any date of redemption, the greater
of:

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

          (2)   the excess, if any, of (a) the present value as of such date of redemption of (i) the
redemption price of such Security on December 1, 2011, plus (ii) all required interest payments due
on such Security through December 1, 2011 (excluding accrued but unpaid interest on the date of
redemption), computed using a discount rate equal to the Treasury Rate as of such date of
redemption plus 50 basis points, over (b) the then-outstanding principal amount of such Security,
in each case as calculated by the Company or on behalf of the Company by such Person as the Company
shall designate; provided that such calculation shall not be a duty or obligation of the Trustee.

          “Asset Disposition” means any direct or indirect sale, lease (other than an operating lease
entered into in the ordinary course of business), transfer, issuance or other disposition, or a
series of related sales, leases, transfers, issuances or dispositions that are part of a common
plan, of shares of Capital Stock of a Subsidiary (other than directors’ qualifying shares),
property or other assets (each referred to for the purposes of this definition as a “disposition”)
by the Company or any of its Restricted Subsidiaries, including any disposition by means of a
merger, consolidation or similar transaction.

          Notwithstanding the preceding, the following items shall not be deemed to be Asset
Dispositions:

     (1)   a disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Restricted Subsidiary; provided that in the case of a sale by a
Restricted Subsidiary to another Restricted Subsidiary, the Company directly or indirectly
owns an equal or greater percentage of the Common Stock of the transferee than of the
transferor; provided, further, that in the case of a transfer of Collateral, the transferee
shall cause such amendments, supplements or other instruments to be executed, filed and
recorded in such

 

3

 jurisdictions as may be required by applicable law to preserve and protect
the Lien on the Collateral pledged by or transferred to the
transferee, together with such financing statements or comparable documents as may be
required to perfect any security interests in such Collateral which may be perfected by the
filing of a financing statement or a similar document under the Uniform Commercial Code or
other similar statute or regulation of the relevant states or jurisdictions;

     (2)   the sale of Cash Equivalents in the ordinary course of business;

     (3)   a disposition of inventory in the ordinary course of business;

     (4)   a disposition of obsolete or worn out equipment or equipment that is no longer
useful in the conduct of the business of the Company and its Restricted Subsidiaries and
that is disposed of in each case in the ordinary course of business;

     (5)   transactions permitted under Section 4.1 of this Indenture;

     (6)   an issuance of Capital Stock by a Restricted Subsidiary to the Company or to a
Wholly-Owned Subsidiary;

     (7)   for purposes of Section 3.7 of this Indenture only, the making of a
Permitted Investment or a disposition subject to Section 3.5 of this Indenture;

     (8)   dispositions in connection with Permitted Liens;

     (9)   dispositions of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy or similar
proceedings and exclusive of factoring or similar arrangements;

     (10)   the licensing or sublicensing of intellectual property or other general
intangibles and licenses, leases or subleases of other property, in each case in the
ordinary course of business; and

     (11)   disposition of assets acquired in foreclosures.

          “Attributable Indebtedness” in respect of a Sale/Leaseback Transaction means, as at the time
of determination, the present value of the total obligations of the lessee for rental payments
during the remaining term of the lease included in such Sale/Leaseback Transaction (including any
period for which such lease has been extended). Such present value shall be calculated using a
discount rate equal to the rate of interest implicit in such transaction, determined in accordance
with GAAP.

          “Average Life” means, as of the date of determination, with respect to any Indebtedness or
Preferred Stock, the quotient obtained by dividing (1) the sum of the products of the numbers of
years from the date of determination to the dates of each successive scheduled principal payment of
such Indebtedness or redemption or similar payment with respect to such Preferred Stock multiplied
by the amount of such payment by (2) the sum of all such payments.

 

4

          “Board of Directors” means, as to any Person, the board of directors of such Person or any
duly authorized committee thereof, or, in the case of a limited liability company, the board of
managers or other similar body.

          “Business Day” means each day that is not a Saturday, Sunday or other day on which banking
institutions in New York, New York are authorized or required by law to close.

          “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participation or other equivalents of or interests in (however designated)
equity of such Person, including any Preferred Stock, but excluding any debt securities convertible
into such equity.

          “Capitalized Lease Obligations” means an obligation that is required to be classified and
accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP, and
the amount of Indebtedness represented by such obligation will be the capitalized amount of such
obligation at the time any determination thereof is to be made as determined in accordance with
GAAP, and the Stated Maturity thereof will be the date of the last payment of rent or any other
amount due under such lease prior to the first date such lease may be terminated without penalty.

          “Cash Equivalents” means:

     (1)   securities issued or directly and fully guaranteed or insured by the United States
Government or any agency or instrumentality of the United States (provided that the full
faith and credit of the United States is pledged in support thereof), having maturities of
not more than one year from the date of acquisition;

     (2)   marketable general obligations issued by any state of the United States of America
or any political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition of the United States (provided that
the full faith and credit of the United States is pledged in support thereof) and, at the
time of acquisition, having a credit rating of “A” or better from either Standard & Poor’s
Ratings Group, Inc. or Moody’s Investors Service, Inc.;

     (3)   certificates of deposit, time deposits, eurodollar time deposits, overnight bank
deposits or bankers’ acceptances having maturities of not more than one year from the date
of acquisition thereof issued by any commercial bank the long-term debt of which is rated at
the time of acquisition thereof at least “A” or the equivalent thereof by Standard & Poor’s
Ratings Group, Inc., or “A” or the equivalent thereof by Moody’s Investors Service, Inc.,
and having combined capital and surplus in excess of $500.0 million;

     (4)   repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (1), (2) and (3) entered into with any bank
meeting the qualifications specified in clause (3) above;

 

5

     (5)   commercial paper rated at the time of acquisition thereof at least “A-2” or the
equivalent thereof by Standard & Poor’s Ratings Group, Inc. or “P-2” or the equivalent
thereof by Moody’s Investors Service, Inc., or carrying an equivalent rating by a nationally
recognized rating agency, if both of the two named rating agencies cease publishing ratings
of investments, and in any case maturing within one year after the date of acquisition
thereof; and

     (6)   interests in any investment company or money market fund which invests 95% or more
of its assets in instruments of the type specified in clauses (1) through (5) above.

          “Change of Control” means:

     (1)   any “person” or “group” of related persons (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, is or
becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
except that such person or group shall be deemed to have “beneficial ownership” of all shares that any such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or indirectly, of more
than 35% of the total voting power of the Voting Stock of the Company or Holdings (or its
successor by merger, consolidation or purchase of all or substantially all of its assets)
(for the purposes of this clause, such person or group shall be deemed to beneficially own
any Voting Stock of the Company or Holdings held by a parent entity, if such person or group
“beneficially owns” (as defined above), directly or indirectly, more than 35% of the voting
power of the Voting Stock of such parent entity); and (B) the Permitted Holders
“beneficially own” (as defined in Rules 13d-3 and 13d-5 of the Exchange Act), directly or
indirectly, in the aggregate a lesser percentage of the total voting power of the Voting
Stock of the Company or Holdings, as the case may be, (or its successor by merger,
consolidation or purchase of all or substantially all of its assets) than such other person
or group and do not have the right or ability by voting power, contract or otherwise to
elect or designate for election a majority of the board of directors of the Company or such
successor (for the purposes of this clause, such other person or group shall be deemed to
beneficially own any Voting Stock of a specified entity held by a parent entity, if such
other person or group “beneficially owns” directly or indirectly, more than 35% of the
voting power of the Voting Stock of such parent entity and the Permitted Holders
“beneficially own” directly or indirectly, in the aggregate a lesser percentage of the
voting power of the Voting Stock of such parent entity and do not have the right or ability
by voting power, contract or otherwise to elect or designate for election a majority of the
board of directors of such parent entity); or

     (2)   the first day on which a majority of the members of the Board of Directors of the
Company or Holdings are not Continuing Directors; or

     (3)   the sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Restricted Subsidiaries taken as a
whole to any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) other than a Permitted Holder; or

 

6

     (4)   the adoption by the stockholders of the Company of a plan or proposal for the
liquidation or dissolution of the Company.

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

          “Collateral” means all property and assets of the Company and the Subsidiary Guarantors,
whether now owned or hereafter acquired, in which Liens are, from time to time, purported to be
granted to secure the Securities and the Subsidiary Guarantees pursuant to the Collateral
Documents.

          “Collateral Accounts” means any segregated account under the sole control of the Collateral
Agent that is free from all other Liens, and includes all cash and Cash Equivalents received by the
Trustee or the Collateral Agent from Asset Dispositions of Collateral, Recovery Events,
foreclosures on or sales of Collateral or any other awards or proceeds pursuant to the Collateral
Documents, including earnings, revenues, rents, issues, profits and income from the Collateral
received pursuant to the Collateral Documents, and interest earned thereon.

          “Collateral Agent” means Wilmington Trust FSB, acting in its capacity as collateral agent
hereunder and under the Collateral Documents, or as successor thereto.

          “Collateral Documents” means the mortgages, deeds of trust, deeds to secure debt, security
agreements, pledge agreements, agency agreements and other instruments and documents executed and
delivered pursuant to this Indenture or any of the foregoing (including the Pledge and Security
Agreement dated as of October 2, 2009 by and among the Company and the Subsidiary Guarantors in
favor of the Trustee, as Collateral Agent), as the same may be amended, supplemented or otherwise
modified from time to time and pursuant to which Collateral is pledged, assigned or granted to or
on behalf of the Collateral Agent for the ratable benefit of the holders and the Trustee or notice
of such pledge, assignment or grant is given.

          “Common Stock” means with respect to any Person, any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting or nonvoting) of
such Person’s common stock whether or not outstanding on the Issue Date, and includes, without
limitation, all series and classes of such common stock.

          “Company” means Nebraska Book Company, Inc. or a successor.

          “Consolidated Coverage Ratio” means as of any date of determination, with respect to any
Person, the ratio of (x) the aggregate amount of Consolidated EBITDA of such Person for the period
of the most recent four consecutive fiscal quarters ending prior to the date of such determination
for which financial statements are in existence to (y) Consolidated Interest Expense for such four
fiscal quarters, provided, however, that:

          (1)   if the Company or any Restricted Subsidiary:

 

7

     (a)   has Incurred any Indebtedness since the beginning of such period that
remains outstanding on such date of determination or if the transaction giving rise
to the need to calculate the Consolidated Coverage Ratio is an Incurrence of
Indebtedness, Consolidated EBITDA and Consolidated Interest Expense for such period
will be calculated after giving effect on a pro forma basis to such Indebtedness as
if such Indebtedness had been Incurred on the first day of such period (except that
in making such computation, the amount of Indebtedness under any revolving credit
facility outstanding on the date of such calculation will be deemed to be (i) the
average daily balance of such Indebtedness during such four fiscal quarters or such
shorter period for which such facility was outstanding or (ii) if such facility was
created after the end of such four fiscal quarters, the average daily balance of
such Indebtedness during the period from the date of creation of such facility to
the date of such calculation) and the discharge of any other Indebtedness repaid,
repurchased, defeased or otherwise discharged with the proceeds of such new
Indebtedness as if such discharge had occurred on the first day of such period; or

     (b)   has repaid, repurchased, defeased or otherwise discharged any Indebtedness
since the beginning of the period that is no longer outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio involves a discharge of Indebtedness (in each case other
than Indebtedness Incurred under any revolving credit facility unless such
Indebtedness has been permanently repaid and the related commitment terminated),
Consolidated EBITDA and Consolidated Interest Expense for such period will be
calculated after giving effect on a pro forma basis to such discharge of such
Indebtedness, including with the proceeds of such new Indebtedness, as if such
discharge had occurred on the first day of such period;

     (2)   if since the beginning of such period the Company or any Restricted Subsidiary will
have made any Asset Disposition or disposed of any company, division, operating unit,
segment, business, group of related assets or line of business or if the transaction giving
rise to the need to calculate the Consolidated Coverage Ratio is such an Asset Disposition
or disposition:

     (a)   the Consolidated EBITDA for such period will be reduced by an amount equal to
the Consolidated EBITDA (if positive) directly attributable to the assets that are the
subject of such Asset Disposition or disposition for such period or increased by an
amount equal to the Consolidated EBITDA (if negative) directly attributable thereto
for such period; and

     (b)   Consolidated Interest Expense for such period will be reduced by an amount
equal to the Consolidated Interest Expense directly attributable to any Indebtedness
of the Company or any Restricted Subsidiary repaid, repurchased, defeased or otherwise
discharged with respect to the Company and its continuing Restricted Subsidiaries in
connection with such Asset Disposition or disposition for such period (or, if the
Capital Stock of any Restricted Subsidiary is sold, the Consolidated Interest Expense
for such period directly

 

8

attributable to the
Indebtedness of such Restricted Subsidiary to the extent the Company and its
continuing Restricted Subsidiaries are no longer liable for such Indebtedness after
such sale);

     (3)   if since the beginning of such period the Company or any Restricted Subsidiary (by
merger or otherwise) will have made an Investment in any Restricted Subsidiary (or any
Person that becomes a Restricted Subsidiary or is merged with or into the Company) or an
acquisition of assets, including any acquisition of assets occurring in connection with a
transaction causing a calculation to be made hereunder, which constitutes all or
substantially all of a company, division, operating unit, segment, business or line of
business, Consolidated EBITDA and Consolidated Interest Expense for such period will be
calculated after giving pro forma effect thereto (including the Incurrence of any
Indebtedness) as if such Investment or acquisition occurred on the first day of such period;
and

     (4)   if since the beginning of such period any Person (that subsequently became a
Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary
since the beginning of such period) will have Incurred any Indebtedness or discharged any
Indebtedness, made any Asset Disposition or any Investment or acquisition of assets that
would have required an adjustment pursuant to clause (2) or (3) above if made by the Company
or a Restricted Subsidiary during such period, Consolidated EBITDA and Consolidated Interest
Expense for such period will be calculated after giving pro forma effect thereto as if such
transaction occurred on the first day of such period.

For purposes of this definition, whenever pro forma effect is to be given to any calculation under
this definition, the pro forma calculations will be determined in good faith by a responsible
financial or accounting officer of the Company (including pro forma expense and cost reductions
calculated on a basis consistent with Regulation S-X under the Securities Act). If any
Indebtedness 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 date of
determination had been the applicable rate for the entire period (taking into account any Interest
Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement has a remaining term
in excess of 12 months). If any Indebtedness that is being given pro forma effect bears an
interest rate at the option of the Company, the interest rate shall be calculated by applying such
optional rate chosen by the Company.

          “Consolidated EBITDA” for any period means, without duplication, the Consolidated Net Income
for such period, plus the following to the extent deducted in calculating such Consolidated Net
Income:

     (1)   Consolidated Interest Expense;

     (2)   Consolidated Income Taxes;

 

9

     (3)   consolidated depreciation expense;

     (4)   consolidated amortization expense or impairment charges recorded in connection with
the application of Financial Accounting Standard No. 142, “Goodwill and Other Intangibles;”
and

     (5)   other non-cash charges reducing Consolidated Net Income (excluding any such
non-cash charge to the extent it represents an accrual of or reserve for cash charges in any
future period or amortization of a prepaid cash expense that was paid in a prior period not
included in the calculation).

          Notwithstanding the preceding sentence, clauses (2) through (5) relating to amounts of a
Restricted Subsidiary of a Person will be added to Consolidated Net Income to compute Consolidated
EBITDA of such Person only to the extent (and in the same proportion) that the net income (loss) of
such Restricted Subsidiary was included in calculating the Consolidated Net Income of such Person
and, to the extent the amounts set forth in clauses (2) through (5) are in excess of those
necessary to offset a net loss of such Restricted Subsidiary or if such Restricted Subsidiary has
net income for such period included in Consolidated Net Income, only if a corresponding amount
would be permitted at the date of determination to be dividended to the Company by such Restricted
Subsidiary without prior approval (that has not been obtained), pursuant to the terms of its
charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to that Restricted Subsidiary or its stockholders.

          “Consolidated Income Taxes” means, with respect to any Person for any period, taxes imposed
upon such Person or other payments required to be made by such Person by any governmental authority
which taxes or other payments are calculated by reference to the income or profits of such Person
or such Person and its Restricted Subsidiaries (to the extent such income or profits were included
in computing Consolidated Net Income for such period), regardless of whether such taxes or payments
are required to be remitted to any governmental authority.

          “Consolidated Interest Expense” means, for any period, the total interest expense of the
Company and its consolidated Restricted Subsidiaries, whether paid or accrued, plus, to the extent
not included in such interest expense:

     (1)   interest expense attributable to Capitalized Lease Obligations and the interest
portion of rent expense associated with Attributable Indebtedness in respect of the relevant
lease giving rise thereto, determined as if such lease were a capitalized lease in
accordance with GAAP and the interest component of any deferred payment obligations;

     (2)   amortization of debt discount and debt issuance cost (other than such discounts and
costs incurred in connection with the Refinancing) (provided that any amortization of bond
premium will be credited to reduce Consolidated Interest Expense unless, pursuant to GAAP,
such amortization of bond premium has otherwise reduced Consolidated Interest Expense);

 

10

     (3)   non-cash interest expense;

     (4)   commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptance financing;

     (5)   interest actually paid by the Company or any such Restricted Subsidiary under any
Guarantee of Indebtedness or other obligation of any other Person;

     (6)   costs associated with Hedging Obligations (including amortization of fees)
provided, however, that if Hedging Obligations result in net benefits rather than costs,
such benefits shall be credited to reduce Consolidated Interest Expense unless, pursuant to
GAAP, such net benefits are otherwise reflected in Consolidated Net Income;

     (7)   the consolidated interest expense of such Person and its Restricted Subsidiaries
that was capitalized during such period;

     (8)   the product of (a) all dividends paid or payable, in cash, Cash Equivalents or
Indebtedness or accrued during such period on any series of Disqualified Stock of such
Person or on Preferred Stock of its Restricted Subsidiaries payable to a party other than
the Company or a Wholly-Owned Subsidiary, times (b) a fraction, the numerator of which is
one and the denominator of which is one minus the then current combined federal, state,
provincial and local statutory tax rate of such Person, expressed as a decimal, in each
case, on a consolidated basis and in accordance with GAAP; and

     (9)   the cash contributions to any employee stock ownership plan or similar trust to the
extent such contributions are used by such plan or trust to pay interest or fees to any
Person (other than the Company) in connection with Indebtedness Incurred by such plan or
trust.

          For the purpose of calculating the Consolidated Coverage Ratio in connection with the
Incurrence of any Indebtedness described in the final paragraph of the definition of
“Indebtedness,” the calculation of Consolidated Interest Expense shall include all interest expense
(including any amounts described in clauses (1) through (9) above) relating to any Indebtedness of
the Company or any Restricted Subsidiary described in the final paragraph of the definition of
“Indebtedness.”

          For purposes of the foregoing, total interest expense will be determined (i) after giving
effect to any net payments made or received by the Company and its Subsidiaries with respect to
Interest Rate Agreements and (ii) exclusive of amounts classified as other comprehensive income in
the balance sheet of the Company. Notwithstanding anything to the contrary contained herein,
commissions, discounts, yield and other fees and charges Incurred in connection with any
transaction pursuant to which the Company or its Restricted Subsidiaries
may sell, convey or
otherwise transfer or grant a security interest in any accounts receivable or related assets shall
be included in Consolidated Interest Expense.

 

11

          “Consolidated Net Income” means, for any period, the net income (loss) of the Company and its
consolidated Restricted Subsidiaries determined in accordance with GAAP; provided, however, that
there will not be included in such Consolidated Net Income:

     (1)   any net income (loss) of any Person if such Person is not a Restricted Subsidiary,
except that:

     (a)   subject to the limitations contained in clauses (3), (4) and (5) below, the
Company’s equity in the net income of any such Person for such period will be
included in such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a Restricted
Subsidiary as a dividend or other distribution (subject, in the case of a dividend
or other distribution to a Restricted Subsidiary, to the limitations contained in
clause (2) below); and

     (b)   the Company’s equity in a net loss of any such Person (other than an
Unrestricted Subsidiary) for such period will be included in determining such
Consolidated Net Income to the extent such loss has been funded with cash from the
Company or a Restricted Subsidiary;

     (2)   any net income (but not loss) of any Restricted Subsidiary if such Subsidiary is
subject to restrictions, directly or indirectly, on the payment of dividends or the making
of distributions by such Restricted Subsidiary, directly or indirectly, to the Company,
except that:

     (a)   subject to the limitations contained in clauses (3), (4) and (5) below, the
Company’s equity in the net income of any such Restricted Subsidiary for such period
will be included in such Consolidated Net Income up to the aggregate amount of cash
that could have been distributed by such Restricted Subsidiary during such period to
the Company or another Restricted Subsidiary as a dividend (subject, in the case of
a dividend to another Restricted Subsidiary, to the limitation contained in this
clause); and

     (b)   the Company’s equity in a net loss of any such Restricted Subsidiary for
such period will be included in determining such Consolidated Net Income;

     (3)   any gain (loss) realized upon the sale or other disposition of any property, plant
or equipment of the Company or its consolidated Restricted Subsidiaries (including pursuant
to any Sale/Leaseback Transaction) which is not sold or otherwise disposed of in the
ordinary course of business and any gain (loss) realized upon the sale or other disposition
of any Capital Stock of any Person;

 

12

     (4)   any extraordinary gain or loss; and

     (5)   the cumulative effect of a change in accounting principles.

          “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company or Holdings, as the case may be, who: (1) was a member of such Board of
Directors on the day immediately following the Issue Date; or (2) was nominated for election or
elected to such Board of Directors with the approval of a majority of
the Continuing Directors who were members of such the relevant Board at the time of such
nomination or election.

          “Credit Agreement” means one or more debt facilities (including, without limitation, the
Amended and Restated Credit Agreement, dated as of October 2, 2009, among the Company, Holdings,
New Holdings and the several banks and other financial institutions or entities from time to time
parties thereto) or commercial paper facilities to which the Company is a party with banks or other
institutional lenders providing for revolving credit loans, term loans, 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 letters of credit or issuances of debt
securities evidenced by notes, debentures, bonds or similar instruments, in each case, as amended,
restated, supplemented, modified, renewed, refunded, replaced or refinanced (including by means of
sales of debt securities to institutional investors) in whole or in part from time to time (and
whether or not with the original trustee, administrative agent, holders and lenders or another
trustee, administrative agent or agents or other holders or lenders and whether provided under this
Indenture, Credit Agreement or any other original credit agreement or other agreement or
indenture).

          “Credit Agreement Obligations” means Indebtedness outstanding under the Credit Agreement that
is secured by a Permitted Lien described under clause (1) of the definition thereof, and all other
Obligations of the Company or any Subsidiary Guarantor under the Credit Agreement or any related
agreement, including hedging obligations and cash management obligations with lenders and their
affiliates.

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

          “Defaulted Interest” shall have the meaning set forth in Section 2.13.

          “Depositary” means The Depository Trust Company, its nominees and their respective successors
and assigns, or such other depository institution hereinafter appointed by the Company.

          “Disqualified Stock” means, with respect to any Person, any Capital Stock of such Person that
by its terms (or by the terms of any security into which it is convertible or for which it is
exchangeable) or upon the happening of any event:

 

13

     (1)   matures or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;

     (2)   is convertible into or exchangeable for Indebtedness or Disqualified Stock
(excluding Capital Stock which is convertible or exchangeable solely at the option of the
Company or a Restricted Subsidiary); or

          (3)   is redeemable at the option of the holder of the Capital Stock in whole or in part,

in each case on or prior to the date that is 91 days after the earlier of the date (a) of the
Stated Maturity of the Securities or (b) on which there are no Securities outstanding, provided
that only the portion of Capital Stock which so matures or is mandatorily redeemable, is so
convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such
date will be deemed to be Disqualified Stock; provided, further that any Capital Stock that would
constitute Disqualified Stock solely because the holders thereof have the right to require the
Company to repurchase such Capital Stock upon the occurrence of a change of control or asset sale
(each defined in a substantially identical manner to the corresponding definitions in this
Indenture) shall not constitute Disqualified Stock if the terms of such Capital Stock (and all such
securities into which it is convertible or for which it is ratable or exchangeable) provide that
the Company may not repurchase or redeem any such Capital Stock (and all such securities into which
it is convertible or for which it is ratable or exchangeable) pursuant to such provision prior to
compliance by the Company with the provisions of Section 3.9 and Section 3.7 of
this Indenture and such repurchase or redemption complies with Section 3.5 of this
Indenture.

          “8 5/8% Notes” means the senior subordinated notes of the Company due 2012.

          “Equity Offering” means an offering or issuance for cash by either of the Company or Holdings
or New Holdings of its respective common stock, Preferred Stock (other than any Disqualified Stock)
or options, warrants or rights with respect to its common stock or Preferred Stock (other than any
Disqualified Stock).

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

          “Exchange Securities” has the meaning ascribed to it in the second introductory paragraph of
this Indenture.

          “Foreign Subsidiary” means any Restricted Subsidiary that is not organized under the laws of
the United States of America or any state thereof or the District of Columbia and any Subsidiary of
such Restricted Subsidiary.

          “GAAP” means generally accepted accounting principles in the United States of America as in
effect as of the date of this Indenture, including those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board
or in such other statements by such other

 

14

entity as approved by a significant segment of the accounting
profession. All ratios and computations based on GAAP contained in this Indenture will be computed
in conformity with GAAP.

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or
indirect, contingent or otherwise, of such Person:

     (1)   to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or
by agreement to keep-well, to purchase assets, goods,
securities or services, to take or pay, or to maintain financial statement conditions
or otherwise); or

     (2)   entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part); provided, however, that the term “Guarantee” will not include
endorsements for collection or deposit in the ordinary course of business. The term
“Guarantee” used as a verb has a corresponding meaning.

          “Guarantor Obligations” has the meaning ascribed to it in Section 11.1.

          “Guarantor Subordinated Obligation” means, with respect to a Subsidiary Guarantor, any
Indebtedness of such Subsidiary Guarantor (whether outstanding on the Issue Date or thereafter
Incurred) that is expressly subordinate in right of payment to the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee pursuant to a written agreement.

          “Hedging Obligations” of any Person means the obligations of such Person pursuant to any
Interest Rate Agreement.

          “Holder”, “holder” or “Securityholder” means the Person in whose name a Security is registered
in the Note Register.

          “Holdings” means NBC Acquisition Corp., a Delaware corporation.

          “Holdings Senior Discount Notes” means the 11% senior discount notes due 2013 issued by
Holdings on March 4, 2004.

          “Incur” means issue, create, assume, Guarantee, incur or otherwise become liable for;
provided, however, that any Indebtedness or Capital Stock of a Person existing at the time such
person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise)
will be deemed to be Incurred by such Restricted Subsidiary at the time it becomes a Restricted
Subsidiary; and the terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.
Any Indebtedness issued at a discount (including Indebtedness on which interest is payable through
the issuance of additional Indebtedness) shall be deemed incurred at the time of original issuance
of the Indebtedness at the initial accreted amount thereof.

 

15

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

     (1)   the principal of and premium (if any) in respect of indebtedness of such Person for
borrowed money;

     (2)   the principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;

     (3)   the principal component of all obligations of such Person in respect of letters of
credit, bankers’ acceptances or other similar instruments (including reimbursement
obligations with respect thereto except to the extent such reimbursement
obligation relates to a trade payable and such obligation is satisfied within 30 days
of Incurrence);

     (4)   the principal component of all obligations of such Person to pay the deferred and
unpaid purchase price of property (except trade payables), which purchase price is due more
than six months after the date of placing such property in service or taking delivery and
title thereto;

     (5)   Capitalized Lease Obligations and all Attributable Indebtedness of such Person;

     (6)   the principal component or liquidation preference of all obligations of such Person
with respect to the redemption, repayment or other repurchase of any Disqualified Stock or,
with respect to any Subsidiary that is not a Subsidiary Guarantor, any Preferred Stock (but
excluding, in each case, any accrued dividends);

     (7)   the principal component of all Indebtedness of other Persons secured by a Lien on
any asset of such Person, whether or not such Indebtedness is assumed by such Person;
provided, however, that the amount of such Indebtedness will be the lesser of (a) the fair
market value of such asset at such date of determination and (b) the amount of such
Indebtedness of such other Persons;

     (8)   the principal component of Indebtedness of other Persons to the extent Guaranteed
by such Person; and

     (9)   to the extent not otherwise included in this definition, net obligations of such
Person under Interest Rate Agreements (the amount of any such obligations to be equal at any
time to the termination value of such agreement or arrangement giving rise to such
obligation that would be payable by such Person at such time).

The amount of Indebtedness of any Person at any date will be the outstanding balance at such date
of all unconditional obligations as described above and the maximum liability, upon the occurrence
of the contingency giving rise to the obligation, of any contingent obligations at such date.

 

16

          In addition, “Indebtedness” of any Person shall include Indebtedness described in the
preceding paragraph that would not appear as a liability on the balance sheet of such Person if:

     (1)   such Indebtedness is the obligation of a partnership or joint venture that is not a
Restricted Subsidiary (a “Joint Venture”);

     (2)   such Person or a Restricted Subsidiary of such Person is a general partner of the
Joint Venture (a “General Partner”); and

     (3)   there is recourse, by contract or operation of law, with respect to the payment of
such Indebtedness to property or assets of such Person or a Restricted
Subsidiary of such Person; and then such Indebtedness shall be included in an amount
not to exceed:

     (a)   the lesser of (i) the net assets of the General Partner and (ii) the amount
of such obligations to the extent that there is recourse, by contract or operation
of law, to the property or assets of such Person or a Restricted Subsidiary of such
Person; or

     (b)   if less than the amount determined pursuant to clause (a) immediately
above, the actual amount of such Indebtedness that is recourse to such Person or a
Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a writing
and is for a determinable amount and the related interest expense shall be included
in Consolidated Interest Expense to the extent actually paid by the Company or its
Restricted Subsidiaries.

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

          “Initial Securities” has the meaning ascribed to it in the second introductory paragraph of
this Indenture.

          “Intercreditor Agreement” means the Intercreditor Agreement to be entered into among the
Company, the Subsidiary Guarantors, the Trustee, the Collateral Agent, on behalf of itself and the
holders and the Administrative Agent, on behalf of itself and the lenders and certain other parties
under the Credit Agreement, as the same may be amended, supplemented or otherwise modified from
time to time.

          “Interest Rate Agreement” means with respect to any Person any interest rate protection
agreement, interest rate future agreement, interest rate option agreement, interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge
agreement or other similar agreement or arrangement as to which such Person is party or a
beneficiary.

          “Investment” means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of any direct or indirect advance, loan (other than
advances or extensions of credit to customers in the ordinary course of business) or other

 

17

extensions of credit (including by way of Guarantee or similar arrangement, but excluding any debt
or extension of credit represented by a bank deposit other than a time deposit) or capital
contribution to (by means of any transfer of cash or other property to others or any payment for
property or services for the account or use of others), or any purchase or acquisition of Capital
Stock, Indebtedness or other similar instruments issued by, such Person and all other items that
are or would be classified as investments on a balance sheet prepared in accordance with GAAP;
provided that none of the following will be deemed to be an Investment:

     (1)   Hedging Obligations entered into in the ordinary course of business and in
compliance with this Indenture;

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

     (3)   an acquisition of assets, Capital Stock or other securities by the Company or a
Subsidiary for consideration to the extent such consideration consists of Common Stock or
Preferred Stock (other than Disqualified Stock) of the Company.

          For purposes of Section 3.5 of this Indenture,

     (1)   “Investment” will include the portion (proportionate to the Company’s equity
interest in a Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of the
fair market value of the net assets of such Restricted Subsidiary at the time that such
Restricted Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon
a redesignation of such Subsidiary as a Restricted Subsidiary, the Company will be deemed to
continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if
positive) equal to (a) the Company’s “Investment” in such Subsidiary at the time of such
redesignation less (b) the portion (proportionate to the Company’s equity interest in such
Subsidiary) of the fair market value of the net assets (as conclusively determined by the
Board of Directors of the Company in good faith) of such Subsidiary at the time that such
Subsidiary is so re-designated a Restricted Subsidiary; and

     (2)   any property transferred to or from an Unrestricted Subsidiary will be valued at
its fair market value at the time of such transfer, in each case as determined in good faith
by the Board of Directors of the Company.

          “Issue Date” means the date on which the Initial Securities are originally issued.

          “Junior Lien Collateral Indebtedness” means any Indebtedness of the Company or any Subsidiary
Guarantor which (x) is or will be secured by a Lien on the Collateral on a basis that is junior to
the Securities and the Subsidiary Guarantees and (y) has a Stated Maturity date after the Stated
Maturity of the Securities.

          “Legal Holiday” has the meaning ascribed to it in Section 13.8 of this Indenture.

 

18

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

          “Mortgages” means the mortgages, deeds of trust, deeds to secure Indebtedness or other similar
documents securing Liens on the Premises, as well as the other Collateral secured by and described
in the mortgages, deeds of trust, deeds to secure Indebtedness or other similar documents.

          “Net Available Cash” from an Asset Disposition means cash payments received (including any
cash payments received by way of deferred payment of principal pursuant to a note or installment
receivable or otherwise and net proceeds from the sale or other disposition of any securities or
other assets received as consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring Person of Indebtedness or other
obligations relating to the properties or assets that are the subject of such Asset Disposition or
received in any other non-cash form) therefrom, in each case net of:

     (1)   all brokerage, legal, accounting, investment banking, title and recording tax
expenses, commissions and other fees and expenses Incurred, and all Federal, state,
provincial, foreign and local taxes required to be paid or accrued as a liability under GAAP
(after taking into account any tax credits or deductions and any tax sharing agreements
available as a direct result of such Asset Disposition), as a consequence of such Asset
Disposition;

     (2)   all payments made on any Indebtedness that is secured by any assets subject to such
Asset Disposition, in accordance with the terms of any Lien upon such assets, or that must
by its terms, or in order to obtain a necessary consent to such Asset Disposition, or by
applicable law be repaid out of the proceeds from such Asset Disposition;

     (3)   all distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures as a result of such Asset Disposition; and

     (4)   the deduction of appropriate amounts to be provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the assets disposed of in such
Asset Disposition and retained by the Company or any Restricted Subsidiary after such Asset
Disposition (including, but not limited to, those in respect of indemnification
obligations).

provided, however, that any amounts deposited into escrow or otherwise held back shall not be
deemed to be Net Available Cash unless and until such amounts are released to the Company or a
Restricted Subsidiary without restriction.

          “Net Cash Proceeds,” with respect to any issuance or sale of Capital Stock, means the cash
proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or
placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and
other fees and charges actually Incurred in connection with such issuance or sale and net of taxes paid
or payable as a result of such issuance or sale (after taking into account any available tax credit
or deductions and any tax sharing arrangements).

 

19

          “New Holdings” means NBC Holdings Corp., a Delaware corporation.

          “Non-Guarantor Subsidiary” means any Restricted Subsidiary that is not a Subsidiary Guarantor.

          “Non U.S. Person” means a person who is not a U.S. person, as described in Regulation S.

          “Note Register” means the register of Securities, maintained by the Trustee, pursuant to
Section 2.3.

          “Obligations” 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 foregoing law), penalties, fees, indemnifications,
reimbursements (including, without limitation, reimbursement obligations with respect to
letters of credit and bankers’ acceptances), damages and other liabilities, and guarantees of
payment of such principal, interest, penalties, feels, indemnifications, reimbursements, damages
and other liabilities, payable under the documentation governing any Indebtedness; provided that
Obligations with respect to the Securities shall not include fees or indemnifications in favor of
the Trustee and other third parties other than the Securityholders.

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Financial Officer, any Vice President, the Treasurer or the Secretary of the Company.
Officer of any Subsidiary Guarantor has a correlative meaning.

          “Officers’ Certificate” means a certificate signed by two Officers or by an Officer and either
an Assistant Treasurer or an Assistant Secretary of the Company.

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

          “Pari Passu Indebtedness” means Indebtedness that ranks equally in right of payment to the
Securities (without giving effect to collateral arrangements).

          “Pari Passu Lien Indebtedness” means Indebtedness that ranks equally in right of payment to
the Securities after giving effect to collateral arrangements.

          “Permitted Holders” means each of (i) Weston Presidio Capital III, L.P., Weston Presidio
Capital IV, L.P., WPC Entrepreneur Fund II, L.P. and WPC Entrepreneur Fund II, L.P. (collectively,
the “WP Funds”) and any of their respective Affiliates or limited partners, to the extent such
limited partners received Capital Stock of Holdings or New Holdings in a general distribution by a
WP Fund of such Capital Stock to its

 

20

 limited partners; (ii) any officer or other member of
management or employee employed by Holdings or any Subsidiary as of the date of this Indenture;
(iii) family members or relatives of the persons described in clause (ii); and (iv) in the event of
the incompetence or death of any of the persons described in clauses (ii), such person’s estate,
executor, administrator, committee or other personal representatives or beneficiaries.

          “Permitted Investment” means an Investment by the Company or any Restricted Subsidiary in:

     (1)   a Restricted Subsidiary or a Person which will, upon the making of such Investment,
become a Restricted Subsidiary; provided, however, that the primary business of such
Restricted Subsidiary is a Related Business;

     (2)   another Person if as a result of such Investment such other Person is merged or
consolidated with or into, or transfers or conveys all or substantially all its assets to,
the Company or a Restricted Subsidiary; provided, however, that such Person’s primary
business is a Related Business;

     (3)   cash and Cash Equivalents;

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

     (5)   payroll, travel and similar advances to cover matters that are expected at the time
of such advances ultimately to be treated as expenses for accounting purposes and that are
made in the ordinary course of business;

     (6)   loans or advances to employees (other than executive officers) made in the ordinary
course of business consistent with past practices of the Company or such Restricted
Subsidiary;

     (7)   Capital Stock, obligations or securities received in settlement of debts created in
the ordinary course of business and owing to the Company or any Restricted Subsidiary or in
satisfaction of judgments or pursuant to any plan of reorganization or similar arrangement
upon the bankruptcy or insolvency of a debtor;

     (8)   Investments made as a result of the receipt of non-cash consideration from an Asset
Disposition that was made pursuant to and in compliance with Section 3.7 of this
Indenture;

     (9)   Investments in existence on the Issue Date;

 

21

     (10)   Interest Rate Agreements and related Hedging Obligations, which transactions or
obligations are Incurred in compliance with Section 3.3 of this Indenture;

     (11)   Investments by the Company or any of its Restricted Subsidiaries, together with
all other Investments pursuant to this clause (11), in an aggregate amount at the time of
such Investment not to exceed $5.0 million outstanding at any one time (with the fair market
value of such Investment being measured at the time made and without giving effect to
subsequent changes in value); and

     (12)   Guarantees issued in accordance with Section 3.3 of this Indenture.

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

     (1)   Liens securing Indebtedness and related Obligations Incurred pursuant to Section
3.3(b)(1); provided that any such Liens of the Company or any Restricted Subsidiary secure
the Securities and the Subsidiary Guarantees on at least a second-priority basis (other than
Excluded Collateral);

     (2)   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 United States government bonds to secure surety or appeal
bonds to which such Person is a party, or deposits as security for contested taxes or
import or customs duties or for the payment of rent, in each case Incurred in the ordinary
course of business;

     (3)   Liens imposed by law, including carriers’, warehousemen’s and mechanics’ Liens, in
each case for sums not yet due or being contested in good faith by appropriate proceedings
if a reserve or other appropriate provisions, if any, as shall be required by GAAP shall
have been made in respect thereof;

     (4)   Liens for taxes, assessments or other governmental charges not yet subject to
penalties for non-payment or that are being contested in good faith by appropriate
proceedings provided appropriate reserves required pursuant to GAAP have been made in
respect thereof;

     (5)   Liens in favor of issuers of surety or performance bonds or letters of credit or
bankers’ acceptances issued pursuant to the request of and for the account of such Person in
the ordinary course of its business; provided, however, that such letters of credit do not
constitute Indebtedness;

     (6)   encumbrances, ground leases, 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, building codes or other restrictions (including, without
limitation, minor defects or irregularities in title and similar encumbrances) as to the use
of real properties or liens incidental to the conduct of the business

 

22

of such Person or to
the ownership of its properties that do not in the aggregate materially adversely affect the
value of said properties or materially impair their use in the operation of the business of
such Person;

     (7)   Liens securing Hedging Obligations so long as the related Indebtedness is, and is
permitted to be under this Indenture, secured by a Lien on the same property securing such
Hedging Obligation;

     (8)   leases, licenses, subleases and sublicenses of assets (including, without
limitation, real property and intellectual property rights) which do not materially
interfere with the ordinary conduct of the business of the Company or any of its Restricted
Subsidiaries;

     (9)   judgment Liens not giving rise to an Event of Default so long as such Lien is
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;

     (10)   Liens for the purpose of securing the payment of all or a part of the purchase
price of, or Capitalized Lease Obligations, purchase money obligations or other payments
Incurred to finance the acquisition, improvement or construction of, assets or property
acquired or constructed in the ordinary course of business; provided that:

     (a)   the aggregate principal amount of Indebtedness secured by such Liens is
otherwise permitted to be Incurred under this Indenture and does not exceed the cost
of the assets or property so acquired or constructed; and

     (b)   such Liens are created within 180 days of construction or acquisition of such
assets or property and do not encumber any other assets or property of the Company or
any Restricted Subsidiary other than such assets or property and assets affixed or
appurtenant thereto;

     (11)   Liens arising solely by virtue of any statutory or common law provisions relating
to banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts
or other funds maintained with a depositary institution; provided that:

     (a)   such deposit account is not a dedicated cash collateral account and is not
subject to restrictions against access by the Company in excess of those set forth
by regulations promulgated by the Federal Reserve Board; and

     (b)   such deposit account is not intended by the Company or any Restricted
Subsidiary to provide collateral to the depository institution;

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

 

23

     (13)   Liens existing on the Issue Date;

     (14)   Liens on property or shares of stock of a Person at the time such Person becomes a
Restricted Subsidiary; provided, however, that such Liens are not created, Incurred or
assumed in connection with, or in contemplation of, such other Person becoming a Restricted
Subsidiary; provided further, however, that any such Lien may not extend to any other
property owned by the Company or any Restricted Subsidiary;

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

     (16)   Liens securing Indebtedness or other obligations of a Restricted Subsidiary owing
to the Company or a Restricted Subsidiary;

     (17)   Liens securing the Securities and Subsidiary Guarantees and any obligations owing
to the Trustee or the Collateral Agent under this Indenture, the Collateral Documents or the
Intercreditor Agreement;

     (18)   Liens securing Refinancing Indebtedness Incurred to refinance Indebtedness that
was previously so secured, provided that any such Lien is limited to all
or part of the same property or assets (plus improvements, accessions, proceeds or
dividends or distributions in respect thereof) that secured (or, under the written
arrangements under which the original Lien arose, could secure) the Indebtedness being
refinanced or is in respect of property that is the security for a Permitted Lien hereunder;
and

     (19)   Liens securing Indebtedness incurred after the Issue Date and any Refinancing
Indebtedness relating thereto (excluding any Liens securing any other Indebtedness Incurred
after the Issue Date permitted under other clauses hereof) in an aggregate principal amount
at any one time outstanding not to exceed $10.0 million; provided that (1) any such Liens
shall rank equal to or junior in priority to the Liens on the Collateral securing the
Securities and (2) the holder of such Lien either (x) is subject to an intercreditor
agreement consistent with the Intercreditor Agreement or (y) is or agrees to become bound by
the terms of the Intercreditor Agreement on the same basis as the holders of the Securities;
provided, further that any such Liens may rank equal to the Liens on the Collateral securing
the Securities only so long as Liens securing Indebtedness outstanding under Section
3.3(b)(1) do not exceed $75.0 million in the aggregate.

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

 

24

          “Preferred Stock,” as applied to the Capital Stock of any corporation, means Capital Stock of
any class or classes (however designated) which is preferred as to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such corporation.

          “Premises” means the real property interests owned by the Company or a Subsidiary Guarantor on
the Issue Date, as listed on Schedule I attached hereto, or any fee interest in any real property
acquired by the Company or a Subsidiary Guarantor after the Issue Date that forms part of the
Collateral.

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

          “Refinancing” shall have the meaning set forth in the Offering Memorandum, dated September 23,
2009, relating to the Securities.

          “Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance, replace,
exchange, renew, repay or extend (including pursuant to any defeasance or discharge mechanism)
(collectively, “refinance,” “refinances,” and “refinanced” shall have a correlative meaning) any
Indebtedness existing on the date of this Indenture or Incurred in compliance with this Indenture
(including Indebtedness of the Company that refinances Indebtedness of any Restricted Subsidiary
and Indebtedness of any Restricted Subsidiary that
refinances Indebtedness of another Restricted Subsidiary) including Indebtedness that
refinances Refinancing Indebtedness, provided, however, that:

     (1)   (a) if the Stated Maturity of the Indebtedness being refinanced is earlier than
the Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated Maturity no
earlier than the Stated Maturity of the Indebtedness being refinanced or (b) if the Stated
Maturity of the Indebtedness being refinanced is later than the Stated Maturity of the
Securities, the Refinancing Indebtedness has a Stated Maturity later than the Stated
Maturity of the Securities;

     (2)   the Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the
Indebtedness being refinanced;

     (3)   such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if
issued with original issue discount, an aggregate issue price) that is equal to or less than
the sum of the aggregate principal amount (or if issued with original issue discount, the
aggregate accreted value) then outstanding of the Indebtedness being refinanced (plus,
without duplication, any additional Indebtedness Incurred to pay interest or premiums
required by the instruments governing such existing Indebtedness and fees Incurred in
connection therewith); and

 

25

     (4)   if the Indebtedness being refinanced is subordinated in right of payment to the
Securities or the Subsidiary Guarantee, such Refinancing Indebtedness is subordinated in
right of payment to the Securities or the Subsidiary Guarantee on terms at least as
favorable to the Holders as those contained in the documentation governing the Indebtedness
being extended, refinanced, renewed, replaced, defeased or refunded.

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

          “Registration Rights Agreement” means that certain registration rights agreement dated as of
the date of this Indenture by and among the Company, the Subsidiary Guarantors and the initial
purchasers set forth therein, and with respect to any Additional Securities, one or more
substantially similar registration rights agreements among the Company and the other parties
thereto, as such agreement(s) may be amended, from to time.

          “Related Business” means any business which is the same as or related, ancillary or
complementary to any of the businesses of the Company and its Restricted Subsidiaries on the Issue
Date.

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

          “Restricted Period” means the 40 consecutive days beginning on and including the later of (A)
the day on which the Initial Securities are offered to persons other than distributors (as defined
in Regulation S under the Securities Act) and (B) the Issue Date or the date on which any
Additional Securities are originally issued in the form of Initial Securities as the case may be.

          “Restricted Securities Legend” means the Private Placement Legend set forth in clause (A) of
Section 2.1(c) or the Regulation S Legend set forth in clause (B) of Section
2.1(c), as applicable.

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

          “Sale/Leaseback Transaction” means an arrangement relating to property now owned or hereafter
acquired whereby the Company or a Restricted Subsidiary transfers such property to a Person (other
than the Company or any of its Restricted Subsidiaries) and the Company or a Restricted Subsidiary
leases it from such Person.

          “SEC” means the United States Securities and Exchange Commission.

          “Securities” means the collective reference to the Initial Securities, Additional Securities
and Exchange Securities.

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

 

26

          “Securities Custodian” means the custodian with respect to the Global Security (as appointed
by the Depositary), or any successor Person thereto and shall initially be the Trustee.

          “Senior Unsecured Pari Passu Indebtedness” means:

     (1)   with respect to the Company, any Indebtedness that ranks pari passu in right of
payment to the Securities but is unsecured with a Stated Maturity date subsequent to the
Stated Maturity of the Securities; and

     (2)
  with respect to any Subsidiary Guarantor, any Indebtedness that ranks pari passu in
right of payment to such Subsidiary Guarantor’s Subsidiary Guarantee but is unsecured with a
Stated Maturity date subsequent to the Stated Maturity of the Securities.

          “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant
Subsidiary” of the Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the
SEC.

          “Stated Maturity” means, with respect to any security, the date specified in such security as
the fixed date on which the payment of principal amount of such security is due and payable,
including pursuant to any mandatory redemption provision, but shall not include any contingent
obligations to repay, redeem or repurchase any such principal prior to the date originally
scheduled for the payment thereof.

          “Subordinated Obligation” means any Indebtedness of the Company (whether outstanding on the
Issue Date or thereafter Incurred) which is subordinate or junior in right of payment to the
Securities pursuant to a written agreement.

          “Subsidiary” of any Person means (a) 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 ordinary 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 (or persons performing similar functions) or (b) any partnership, joint venture,
limited liability company or similar entity of which more than 50% of the capital accounts,
distribution rights, total equity and voting interests or general or limited partnership interests,
as applicable, is, in the case of clauses (a) and (b), at the time owned or controlled, directly or
indirectly, by (1) such Person, (2) such Person and one or more Subsidiaries of such Person or (3)
one or more Subsidiaries of such Person. Unless otherwise specified herein, each reference to a
Subsidiary will refer to a Subsidiary of the Company.

          “Subsidiary Guarantee” means, individually, any Guarantee of payment of the Securities and
Exchange Securities issued in a registered exchange offer pursuant to the Registration Rights
Agreement by a Subsidiary Guarantor pursuant to the terms of this Indenture and any supplemental
indenture thereto, and, collectively, all such Guarantees. Each such Subsidiary Guarantee will be
in the form prescribed by this Indenture.

 

27

          “Subsidiary Guarantor” means each Restricted Subsidiary in existence on the Issue Date that
provides a Subsidiary Guarantee on the Issue Date (and any other Restricted Subsidiary that
provides a Subsidiary Guarantee in accordance with the Indenture); provided that upon release or
discharge of such Restricted Subsidiary from its Subsidiary Guarantee in accordance with this
Indenture, such Restricted Subsidiary ceases to be a Subsidiary Guarantor.

          “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb), as in effect on the date of this Indenture.

          “Treasury Rate” means the yield to maturity at the time of computation of United states
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15 (519) 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 or similar market data)) most nearly equal to the period from the
Redemption Date to December 1, 2011; provided, however, that if the period from the Redemption Date
to December 1, 2011 is not equal to the constant maturity of a United States Treasury security for
which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the period from the Redemption
Date to December 1, 2011 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be used.

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

          “Trust Officer” means the Chairman of the Board, the President or any other officer or
assistant officer of the Trustee assigned by the Trustee to administer its corporate trust matters.

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

          “Unrestricted Subsidiary” means:

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

     (2)   any Subsidiary of an Unrestricted Subsidiary.

          The Board of Directors of the Company may designate any Subsidiary of the Company (including
any newly acquired or newly formed Subsidiary or a Person becoming a Subsidiary through merger or
consolidation or Investment therein) to be an Unrestricted Subsidiary only if:

 

28

     (1)   such Subsidiary or any of its Subsidiaries does not own any Capital Stock or
Indebtedness of or have any Investment in, or own or hold any Lien on any property of, any
other Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so
designated or otherwise an Unrestricted Subsidiary;

     (2)   such designation and the Investment of the Company in such Subsidiary complies with
Section 3.5 of this Indenture;

     (3)   such Subsidiary, either alone or in the aggregate with all other Unrestricted
Subsidiaries, does not operate, directly or indirectly, all or substantially all of the
business of the Company and its Subsidiaries;

     (4)   such Subsidiary is a Person with respect to which neither the Company nor any of
its Restricted Subsidiaries has any direct or indirect obligation:

     (a)   to subscribe for additional Capital Stock of such Person; or

     (b)   to maintain or preserve such Person’s financial condition or to cause such
Person to achieve any specified levels of operating results; and

     (5)   on the date such Subsidiary is designated an Unrestricted Subsidiary, such
Subsidiary is not a party to any agreement, contract, arrangement or understanding with the
Company or any Restricted Subsidiary with terms substantially less favorable to the Company
than those that might have been obtained from Persons who are not Affiliates of the Company.

          Any such designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a resolution of the Board of Directors of the Company giving
effect to such designation and an Officers’ Certificate certifying that such designation complies
with the foregoing conditions. If, at any time, any Unrestricted Subsidiary would fail to meet the
foregoing requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary
shall be deemed to be Incurred as of such date.

          The Board of Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that immediately after giving effect to such designation, no
Default or Event of Default shall have occurred and be continuing or would occur as a consequence
thereof and the Company could Incur at least $1.00 of additional Indebtedness under Section
3.3(a) of this Indenture on a pro forma basis taking into account such designation.

          “U.S. Government Obligations” means securities that are (a) direct obligations of the United
States of America for the timely payment of which its full faith and credit is pledged or (b)
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 of the United States of America, which,
in either case, are not callable or redeemable at the option of the issuer thereof, and shall also
include a

 

29

depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities
Act), as custodian with respect to any such U.S. Government Obligations or a specific payment of
principal of or interest on any such U.S. Government Obligations held by such custodian for the
account of the holder of such depositary 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
depositary receipt from any amount received by the custodian in respect of the U.S. Government
Obligations or the specific payment of principal of or interest on the U.S. Government Obligations
evidenced by such depositary receipt.

          “Voting Stock” of a corporation means all classes of Capital Stock of such corporation then
outstanding and normally entitled to vote in the election of directors.

          “Wholly-Owned Subsidiary” means a Restricted Subsidiary, all of the Capital Stock of which
(other than directors’ qualifying shares) is owned by the Company or another Wholly-Owned
Subsidiary.

          SECTION 1.2.    Other Definitions

	 	 	 	 	 
	 	 	Defined in
	Term
	 	Section
	“Affiliate Transaction”
	 	 	3.8	 
	“Agent Member”
	 	 	2.1	(d)
	“Asset Disposition Offer”
	 	 	3.7	(b)
	“Asset Disposition Offer Amount”
	 	 	3.7	(c)
	“Asset Disposition Offer Period”
	 	 	3.7	(c)
	“Asset Disposition Purchase Date”
	 	 	3.7	(c)
	“Authenticating Agent”
	 	 	2.2	 
	“Bankruptcy Law”
	 	 	6.1	 
	“Blockage Notice”
	 	 	10.3	 
	“Change of Control Offer”
	 	 	3.9	 
	“Change of Control Payment”
	 	 	3.9	 
	“Change of Control Payment Date”
	 	 	3.9	 
	“Company Order”
	 	 	2.2	 
	“covenant defeasance option”
	 	 	8.1	(b)
	“cross acceleration provision”
	 	 	6.1	 
	“Custodian”
	 	 	6.1	 
	“Definitive Securities”
	 	 	2.1	(e)
	“Event of Default”
	 	 	6.1	 
	“Excess Proceeds”
	 	 	3.6	(b)
	“Excluded Collateral”
	 	 	10.1	(a)
	“Exchange Global Note”
	 	 	2.1	 
	“Global Securities”
	 	 	2.1	(a)
	“IAI”
	 	 	2.1	(a)
	“Institutional Accredited Investor Global Note”
	 	 	2.1	 
	“Institutional Accredited Investor Note”
	 	 	2.1	 

 

30

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“legal defeasance option”
	 	 	8.1	(b)
	“Notice of Default”
	 	 	6.1	 
	“Offer”
	 	 	3.7	 
	“Offer Amount”
	 	 	3.7	 
	“Offer Period”
	 	 	3.7	 
	“Offer Proceeds”
	 	 	3.7	 
	“Pari Passu Notes”
	 	 	3.7	(b)
	“pay the Securities”
	 	 	10.3	 
	“Paying Agent”
	 	 	2.3	 
	“Payment Blockage Period”
	 	 	10.3	 
	“Payment Default”
	 	 	6.1	 
	“Private Placement Legend”
	 	 	2.1	(c)
	“Purchase Date”
	 	 	3.7	 
	“Registrar”
	 	 	2.3	 
	“Regulation S”
	 	 	2.1	 
	“Regulation S Certificate”
	 	 	2.1	 
	“Regulation S Global Note”
	 	 	2.1	 
	“Regulation S Legend”
	 	 	2.1	 
	“Regulation S Note”
	 	 	2.1	 
	“Regulation S Permanent Global Note”
	 	 	2.1	 
	“Regulation S Temporary Global Note”
	 	 	2.1	 
	“Release Date”
	 	 	2.1	 
	“Resale Restriction Termination Date”
	 	 	2.6	 
	“Restricted Payment”
	 	 	3.5	 
	“Rule 144A”
	 	 	2.1	 
	“Rule 144A Global Note”
	 	 	2.1	 
	“Rule 144A Note”
	 	 	2.1	 
	“Special Interest Payment Date”
	 	 	2.13	 
	“Special Record Date”
	 	 	2.13	 
	“Successor Company”
	 	 	4.1	 

          SECTION 1.3.    Incorporation by Reference of Trust Indenture Act. This Indenture is
subject to the mandatory provisions of the TIA which are incorporated by reference in and made a
part of this Indenture. The following TIA terms have the following meanings:

          “Commission” means the SEC.

          “indenture securities” means the Securities.

          “indenture security holder” means a Securityholder.

          “indenture to be qualified” means this Indenture.

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

 

31

          “obligor” on the indenture securities means the Company and any other obligor on the indenture
securities.

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

          SECTION 1.4.    Rules of Construction. Unless the context otherwise requires:

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

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

          (3)   “or” is not exclusive;

          (4)   “including” means including without limitation;

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

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

          (7)   the principal amount of any noninterest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance sheet of the
issuer dated such date prepared in accordance with GAAP;

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

          (9)   all references to (a) Initial Securities shall refer also to any Additional
Securities issued in the form of Initial Securities and (b) Exchange Securities shall refer
also to any Additional Securities issued in the form of Exchange Securities, in each case,
pursuant to Section 2.16; and

          (10)   all references to the date the Securities were originally issued shall refer to
the Issue Date or the date any Additional Securities were originally issued, as the case may
be.

 

32

ARTICLE II

The Securities

          SECTION 2.1.    Form, Dating and Terms. (a)   The Initial Securities are being offered
and sold by the Company pursuant to a Purchase Agreement, dated September 23, 2009, among the
Company, the Subsidiary Guarantors and J.P. Morgan Securities Inc., as representative of the
several initial purchasers listed in Schedule 1 thereto. The Initial Securities shall be resold
initially only to (A) qualified institutional buyers (as defined in Rule 144A under the Securities
Act (“Rule 144A”)) in reliance on Rule 144A (“QIBs”) and (B) Persons other than
U.S. Persons (as defined in Regulation S under the Securities Act (“Regulation S”)) in
reliance on Regulation S. Such Initial Securities may thereafter be transferred to among others,
QIBs, purchasers in reliance on Regulation S and to institutional “accredited investors”, as
defined in Rule 501(a)(1), (2), (3) and (7) of Regulation D under the Securities Act who are not
QIBs (“IAIs”) in accordance with Rule 501 of the Securities Act in accordance with the procedures
described herein.

          Initial Securities offered and sold to QIBs in the United States of America (the “Rule
144A Note”) shall be issued on the Issue Date in the form of a permanent global Security,
without interest coupons, substantially in the form of Exhibit A, which is hereby
incorporated by reference and made a part of this Indenture, together with appropriate legends as
set forth in Section 2.1(c) (the “Rule 144A Global Note”), deposited with the
Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. The Rule 144A Global Note may be represented by more than one
certificate, if so required by the Depositary’s rules regarding the maximum principal amount to be
represented by a single certificate. The aggregate principal amount of the Rule 144A Global Note
may from time to time be increased or decreased by adjustments made on the records of the Trustee,
as custodian for the Depositary or its nominee, as hereinafter provided.

          Initial Securities offered and sold outside the United States of America (“Regulation S
Note”) in reliance on Regulation S shall be issued on the Issue Date in the form of a temporary
global Security, without interest coupons, substantially in the form set forth in Exhibits A
and B, which are hereby incorporated by reference and made a part of this Indenture, together
with appropriate legends as set forth in Section 2.1(c) (a “Regulation S Temporary
Global Note”). Beneficial interests in a Regulation S Temporary Global Note shall be
exchangeable for beneficial interests in a single permanent global security (the “Regulation S
Permanent Global Note”, together with the Regulation S Temporary Global Note, the
“Regulation S Global Note”) on or after the expiration of the Restricted Period (the
“Release Date”) upon the receipt by the Trustee or its agent of a certificate certifying
that the Holder of the beneficial interest in the Regulation S Temporary Global Note is a
non-United States Person within the meaning of Regulation S (a “Regulation S Certificate”),
substantially in the form set forth in Section 2.8. Upon receipt by the Trustee or Paying
Agent of a Regulation S Certificate, (i) with respect to the first such Regulation S Certificate,
the Company shall execute and upon receipt of a Company Order for authentication, the
Authenticating Agent (as defined in Section 2.2) shall authenticate and deliver to the
custodian, the applicable Regulation S Permanent Global Note and (ii) with respect to the first and
all subsequent Regulation S

 

33

Certificates,
the custodian shall exchange on behalf of the applicable beneficial owners the portion of the
applicable Regulation S Temporary Global Note covered by such Regulation S Certificates for a
comparable portion of the applicable Regulation S Permanent Global Note. Upon any exchange of a
portion of a Regulation S Temporary Global Note for a comparable portion of a Regulation S
Permanent Global Note, the custodian shall endorse on the schedules affixed to each of such
Regulation S Global Note (or on continuations of such schedules affixed to each of such Regulation
S Global Note and made parts thereof) appropriate notations evidencing the date of transfer and (x)
with respect to the applicable Regulation S Temporary Global Note, a decrease in the principal
amount thereof equal to the amount covered by the applicable certification and (y) with respect to
the applicable Regulation S Permanent Global Note, an increase in the principal amount thereof
equal to the principal amount of the decrease in the applicable Regulation S Temporary Global Note
pursuant to clause (x) above. The Regulation S Global Note shall be deposited with the Trustee, as
custodian for the Depositary, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The Regulation S Global Note may be represented by more than one
certificate, if so required by the Depositary’s rules regarding the maximum principal amount to be
represented by a single certificate. The aggregate principal amount of the Regulation S Global Note
may from time to time be increased or decreased by adjustments made on the records of the Trustee,
as custodian for the Depositary or its nominee, as hereinafter provided.

          Initial Securities resold to institutional “accredited investors” (as defined in Rule
501(a)(1), (2), (3) and (7) under the Securities Act) in the United States of America (the
“Institutional Accredited Investor Note”) shall be issued in the form of a permanent global
Security substantially in the form set forth in Exhibit A hereto, which is hereby
incorporated by reference and made a part of this Indenture, together with appropriate legends as
set forth in Section 2.1(c) (the “Institutional Accredited Investor Global Note”)
deposited with the Trustee, as custodian for the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The Institutional Accredited Investor Global
Note may be represented by more than one certificate, if so required by the Depositary’s rules
regarding the maximum principal amount to be represented by a single certificate. The aggregate
principal amount of the Institutional Accredited Investor Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as custodian for the
Depositary or its nominee, as hereinafter provided.

          Exchange Securities exchanged for interests in the Rule 144A Note, the Regulation S Note and
the Institutional Accredited Investor Note shall be issued in the form of a permanent global
Security substantially in the form set forth in Exhibit B hereto, which is hereby
incorporated by reference and made a part of this Indenture, deposited with the Trustee as
hereinafter provided, with the appropriate legend set forth in Section 2.1(c) hereof (the
“Exchange Global Note”). The Exchange Global Note may be represented by more than one
certificate, if so required by the Depositary’s rules regarding the maximum principal amount to be
represented by a single certificate.

          The Rule 144A Global Note, the Regulation S Global Note, the Exchange Global Note and the
Institutional Accredited Investor Global Note are sometimes collectively herein referred to as the
“Global Securities.”

 

34

          The principal of (and premium, if any) and interest on the Securities shall be payable at the
office or agency of the Company maintained for such purpose at such office or agency of the Company
as may be maintained for such purpose pursuant to Section 2.3; provided, however, that, at
the option of the Company, each installment of interest may be paid by (i) check mailed to
addresses of the Persons entitled thereto as such addresses shall appear on the Note Register or
(ii) wire transfer to an account located in the United States maintained by the payee. Payments in
respect to Securities represented by a Global Security (including principal, premium, if any, and
interest) shall be made by wire transfer of immediately available funds to the accounts specified
by the Depositary.

          The Securities may have notations, legends or endorsements required by law, stock exchange
rule or usage, in addition to those set forth on Exhibit A and Exhibit B and
Section 2.1(c). The Company shall approve the forms of the Securities and any notation,
endorsement or legend on them. Each Security shall be dated the date of its authentication. The
terms of the Securities set forth in Exhibit A and Exhibit B are part of the terms
of this Indenture and, to the extent applicable, the Company, the Subsidiary Guarantors and the
Trustee, by their execution and delivery of this Indenture, expressly agree to be bound by such
terms.

          (b)   Denominations. The Securities shall be issuable only in fully registered form,
without coupons, and only in denominations of $2,000 and any integral multiple of $1,000 in excess
thereof.

          (c)   Restrictive Legends. Unless and until (i) an Initial Security is sold under an
effective registration statement or (ii) an Initial Security is exchanged for an Exchange Security
in connection with an effective registration statement, in each case pursuant to the Registration
Rights Agreement or a similar agreement,

          (A)   such Rule 144A Global Note and the Institutional Accredited Investor Global Note shall
bear the following legend (the “Private Placement Legend”) on the face thereof:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER OR ANY SUBSIDIARY
THEREOF,

 

35

(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO
NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING
OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS NOT A QUALIFIED
INSTITUTIONAL BUYER AND THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER
INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A TRANSACTION INVOLVING A MINIMUM
PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES
ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE.”; and

          (B)   the
 Regulation S Global Note shall bear the following legend (the “Regulation S
Legend”) on the face thereof:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE
OWNER  OF THIS

 

36

 SECURITY
(OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B)
PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO
NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING
OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS NOT A QUALIFIED
INSTITUTIONAL BUYER AND THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER
INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A TRANSACTION INVOLVING A MINIMUM
PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES
ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE. BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A
U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES
ACT.

          (C)   The Global Securities, whether or not an Initial Security, shall bear the following legend
on the face thereof:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED

 

37

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.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.”

          (D)   The Regulation S Temporary Global Note shall also bear the following legend on the face
thereof:

THIS GLOBAL NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). NEITHER THIS TEMPORARY GLOBAL
NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER
THE INDENTURE REFERRED TO BELOW.

NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT
TO THE TERMS OF THE INDENTURE.

          (E)   Each Security issued hereunder, whether or not an Initial Security, shall bear a
legend in substantially the following form:

“THIS NOTE HAS BEEN ISSUED WITH “ORIGINAL ISSUE DISCOUNT” (WITHIN THE MEANING OF SECTION
1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED). UPON WRITTEN REQUEST, THE COMPANY
WILL PROMPTLY MAKE AVAILABLE TO ANY HOLDER OF THIS NOTE THE FOLLOWING INFORMATION: (1) THE
ISSUE PRICE AND DATE OF THE NOTE, (2) THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THE NOTE AND
(3) THE YIELD TO MATURITY OF THE NOTE. HOLDERS SHOULD CONTACT THE CHIEF FINANCIAL OFFICER AT
4700 SOUTH 19TH STREET, LINCOLN, NE 68501-0529.”

          (d)   Book-Entry Provisions. (i)   This Section 2.1(d) shall apply only to
Global Securities deposited with the Trustee, as custodian for the Depositary.

          (ii)   Each Global Security initially shall (x) be registered in the name of the Depositary for
such Global Security or the nominee of such Depositary, (y) be delivered to the Trustee as
custodian for such Depositary and (z) bear legends as set forth in Section 2.1(c).

 

38

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

          (iv)   In connection with any transfer of a portion of the beneficial interest in a Global
Security pursuant to Section 2.1(e) to beneficial owners who are required to hold
Definitive Securities, the Security Trustee shall reflect on its books and records the date and a
decrease in the principal amount of such Global Security in an amount equal to the principal amount
of the beneficial interest in the Global Security to be transferred, and the Company shall execute,
and the Trustee shall authenticate and deliver, one or more Definitive Securities of like tenor and
amount.

          (v)   In connection with the transfer of an entire Global Security to beneficial owners pursuant
to Section 2.1(e), such Global Security shall be deemed to be surrendered to the Trustee
for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to
each beneficial owner identified by the Depositary in exchange for its beneficial interest in such
Global Security, an equal aggregate principal amount of Definitive Securities of authorized
denominations.

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

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

          (e)   Definitive Securities. Except as provided below, owners of beneficial interests
in Global Securities shall not be entitled to receive certificated Securities (“Definitive
Securities”). If required to do so pursuant to any applicable law or regulation, beneficial
owners may obtain Definitive Securities in exchange for their beneficial interests in a Global
Security upon written request in accordance with the Depositary’s and the Registrar’s procedures.
In addition, Definitive Securities shall be transferred to all beneficial owners in exchange for
their beneficial interests in a Global Security if (i) the Depositary notifies the Company that it
is unwilling or unable to continue as depositary for such Global
Security or the Depositary ceases to be a clearing agency registered
under the Exchange Act, at a time when the Depositary is required to be

 

39

 so registered in order to act as depositary, and in each case a successor depositary
is not appointed by the Company within 90 days of such notice or, (ii) the Company executes and
delivers to the Trustee and Registrar an Officers’ Certificate stating that such Global Security
shall be so exchangeable or (iii) an Event of Default has occurred and is continuing and the
Registrar has received a request from the Depositary.

          (f)   Any Definitive Security delivered in exchange for an interest in a Global Security
pursuant to Section 2.1(d)(iv) or (v) shall, except as otherwise provided by Section
2.6(c), bear the applicable legend regarding transfer restrictions applicable to the Definitive
Security set forth in Section 2.1(c).

          (g)   In connection with the exchange of a portion of a Definitive Security for a beneficial
interest in a Global Security, the Trustee shall cancel such Definitive Security, and the Company
shall execute, and the Trustee shall authenticate and deliver, to the transferring Holder a new
Definitive Security representing the principal amount not so transferred.

          SECTION 2.2.    Execution and Authentication. One Officer shall sign the Securities for
the Company by manual or facsimile signature. If an Officer whose signature is on a Security no
longer holds that office at the time the Trustee authenticates the Security, the Security shall be
valid nevertheless.

          A Security shall not be valid until an authorized signatory of the Trustee manually
authenticates the Security. The signature of the Trustee on a Security shall be conclusive
evidence that such Security has been duly and validly authenticated and issued under this
Indenture. A Security shall be dated the date of its authentication.

          At any time and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery: (1) Initial Securities for original
issue on the Issue Date in an aggregate principal amount of $200.0 million, (2) any Additional
Securities for original issue from time to time after the Issue Date in such principal amounts as
set forth in Section 2.16 and (3) Exchange Securities for issue only in a Registered
Exchange Offer pursuant to the Registration Rights Agreement, and only in exchange for Initial
Securities of an equal principal amount, in each case upon a written order of the Company signed by
two Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of the
Company (the “Company Order”). Such Company Order shall specify the amount of the
Securities to be authenticated and the date on which the original issue of Securities is to be
authenticated and whether the Securities are to be Initial Securities or Exchange Securities. The
aggregate principal amount of Initial Securities which may be authenticated and delivered under
this Indenture is limited to $200.0 million outstanding. Additionally, the Company may from time
to time, without notice to or consent of the Holders, issue such additional principal amounts of
Additional Securities as may be issued and authenticated by the Trustee (upon Company order)
pursuant to clause (2) of this paragraph, and Securities authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of, other Securities of the same class
pursuant to Section 2.6, Section 2.9, Section 2.11, Section 5.8,
Section 9.5 and except for transactions similar to the Registered Exchange Offer. All
Securities issued on the Issue Date shall be identical in all respects other than issue

 

40

 dates, the
date from which interest accrues and any changes relating thereto. Notwithstanding anything to
the contrary contained in this Indenture, all Securities issued under this Indenture shall vote and
consent together on all matters as one class and no series of Securities shall have the right to
vote or consent as a separate class on any matter.

          The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to
the Company to authenticate the Securities. Unless limited by the terms of such appointment, any
such Authenticating Agent may authenticate Securities whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by the
Authenticating Agent.

          In case the Company or any Subsidiary Guarantor, pursuant to Article IV, shall be
consolidated or merged with or into any other Person or shall convey, transfer, lease or otherwise
dispose of its properties and assets substantially as an entirety to any Person, and the successor
Person resulting from such consolidation, or surviving such merger, or into which the Company or
any Subsidiary Guarantor shall have been merged, or the Person which shall have received a
conveyance, transfer, lease or other disposition as aforesaid, shall have executed an indenture
supplemental hereto with the Trustee pursuant to Article IV, any of the Securities
authenticated or delivered prior to such consolidation, merger, conveyance, transfer, lease or
other disposition may, from time to time, at the request of the successor Person, be exchanged for
other Securities executed in the name of the successor Person with such changes in phraseology and
form as may be appropriate, but otherwise in substance of like tenor as the Securities surrendered
for such exchange and of like principal amount; and the Trustee, upon Company Order of the
successor Person, shall authenticate and deliver Securities as specified in such order for the
purpose of such exchange. If Securities shall at any time be authenticated and delivered in any
new name of a successor Person pursuant to this Section 2.2 in exchange or substitution for
or upon registration of transfer of any Securities, such successor Person, at the option of the
Holders but without expense to them, shall provide for the exchange of all Securities at the time
outstanding for Securities authenticated and delivered in such new name.

          SECTION 2.3.    Registrar and Paying Agent. The Company shall maintain an office or
agency where Securities may be presented for registration of transfer or for exchange (the
“Registrar”) and an office or agency where Securities may be presented for payment (the
“Paying Agent”). The Company shall cause each of the Registrar and the Paying Agent to
maintain an office or agency. The Registrar shall keep a register of the Securities and of their
transfer and exchange (the “Note Register”). The Company may have one or more
co-registrars and one or more additional paying agents. The term “Paying Agent” includes any
additional paying agent.

          The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent
or co-registrar not a party to this Indenture, which shall incorporate the terms of the TIA. The
agreement shall implement the provisions of this Indenture that relate to such agent. The Company
shall notify the Trustee of the name and address of each such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.7. The Company or
any of its
Restricted Subsidiaries may act as Paying Agent, Registrar, co-registrar or transfer agent.

 

41

          The Company initially appoints the Trustee as Registrar and Paying Agent for the Securities.

          SECTION 2.4.    Paying Agent To Hold Money in Trust. By at least 10:00 a.m (New York
City time) on the date on which any principal of or interest on any Security is due and payable,
the Company shall deposit with the Paying Agent a sum sufficient to pay such principal or interest
when due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing
that such Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all
money held by such Paying Agent for the payment of principal of or interest on the Securities and
shall notify the Trustee of any default by the Company or any Subsidiary Guarantor in making any
such payment, subject to Articles X and XII. If the Company or a Subsidiary acts
as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate
trust fund. The Company at any time may require a Paying Agent (other than the Trustee) to pay all
money held by it to the Trustee and to account for any funds disbursed by such Paying Agent. Upon
complying with this Section, the Paying Agent (if other than the Company or a Subsidiary) shall
have no further liability for the money delivered to the Trustee. Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee shall serve as Paying
Agent for the Securities.

          SECTION 2.5.    Securityholder Lists. The Trustee shall preserve in as current a form as
is reasonably practicable the most recent list available to it of the names and addresses of
Securityholders. If the Trustee is not the Registrar, or to the extent otherwise required under
the TIA, the Company shall furnish to the Trustee, in writing at least seven Business Days before
each interest payment date and at such other times as the Trustee may request in writing, a list in
such form and as of such date as the Trustee may reasonably require of the names and addresses of
Securityholders.

          SECTION 2.6.    Transfer and Exchange.

          (a)   The following provisions shall apply with respect to any proposed transfer of a Rule 144A
Note or an Institutional Accredited Investor Note prior to the date which is one year after the
later of the date of original issue and the last date on which the Company or any affiliate of the
Company was the owner of such Securities (or any predecessor thereto) (the “Resale Restriction
Termination Date”):

     (i)  
a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a QIB shall be made upon the representation of the transferee
that it is purchasing the Security for its own account or an account with respect to which
it exercises sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A, and is aware that the sale to it is
being made in reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is
relying upon its foregoing representations in order to claim the exemption from registration
provided by Rule 144A;

 

42

     (ii)   a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to an IAI shall be made upon receipt by the Trustee or its agent
of a certificate substantially in the form set forth in Section 2.7 hereof from the
proposed transferee and, if requested by the Company or the Trustee, the delivery of an
opinion of counsel, certification and/or other information satisfactory to each of them; and

     (iii)   a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a Non-U.S. Person shall be made upon receipt by the Trustee
or its agent of a certificate substantially in the form set forth in Section 2.8
hereof from the proposed transferee and, if requested by the Company or the Trustee, the
delivery of an opinion of counsel, certification and/or other information satisfactory to
each of them.

          (b)   The following provisions shall apply with respect to any proposed transfer of a Regulation
S Note prior to the expiration of the Restricted Period:

     (i)   a transfer of a Regulation S Note or a beneficial interest therein to a QIB shall
be made upon the representation of the transferee that it is purchasing the Security for its
own account or an account with respect to which it exercises sole investment discretion and
that it and any such account is a “qualified institutional buyer” within the meaning of Rule
144A, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned
has requested pursuant to Rule 144A or has determined not to request such information and
that it is aware that the transferor is relying upon its foregoing representations in order
to claim the exemption from registration provided by Rule 144A;

     (ii)   a transfer of a Regulation S Note or a beneficial interest therein to an IAI shall
be made upon receipt by the Trustee or its agent of a certificate substantially in the form
set forth in Section 2.7 hereof from the proposed transferee and, if requested by
the Company or the Trustee, the delivery of an opinion of counsel, certification and/or
other information satisfactory to each of them; and

     (iii)   a transfer of a Regulation S Note or a beneficial interest therein to a Non-U.S.
Person shall be made upon receipt by the Trustee or its agent of a certificate substantially
in the form set forth in Section 2.8 hereof from the proposed transferee and, if
requested by the Company or the Trustee, receipt by the Trustee or its agent of an opinion
of counsel, certification and/or other information satisfactory to each of them.

          Prior to the expiration of the Restricted Period, a registration of transfer of a Regulation S
Note or a beneficial interest therein shall only be made to a Non-U.S. Person and shall be made
upon receipt by the Trustee or its agent of a certificate substantially in the form set
forth in
Section 2.8 hereof from the proposed transferee and, if requested by the Company, receipt
by the Trustee or its agent of an opinion of counsel, certification and/or other information
satisfactory to the Company.

 

43

          After the expiration of the Restricted Period, interests in the Regulation S Note may be
transferred in accordance with applicable law without requiring the certification set forth in
Section 2.8 or any additional certification.

          (c)   Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities not bearing a Restricted Securities Legend, the Registrar shall deliver Securities that
do not bear a Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities bearing a Restricted Securities Legend, the Registrar shall deliver only Securities that
bear a Restricted Securities Legend unless there is delivered to the Registrar an Opinion of
Counsel to the effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with the provisions of the Securities Act.

          (d)   The Company shall deliver to the Trustee an Officer’s Certificate setting forth the Resale
Restriction Termination Date and the Restricted Period.

          The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.1 or this Section 2.6. The Company shall have the
right to inspect and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the Registrar.

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

     (i)   To permit registrations of transfers and exchanges, the Company shall, subject to
the other terms and conditions of this Article II, execute and the Trustee shall
authenticate Definitive Securities and Global Securities at the Registrar’s or
co-registrar’s request.

     (ii)   No service charge shall be made to a Holder for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any transfer tax,
assessments, or similar governmental charge payable in connection therewith (other than any
such transfer taxes, assessments or similar governmental charges payable upon exchange or
transfer pursuant to Sections 3.7, 3.9 or 9.5).

     (iii)   The Registrar or co-registrar shall not be required to register the transfer of
or exchange of any Security for a period beginning (1) 15 days before the mailing of a
notice of an offer to repurchase or redeem Securities and ending at the close of business on
the day of such mailing or (2) 15 days before an interest payment date and ending on such
interest payment date.

     (iv)   Prior to the due presentation for registration of transfer of any Security, the
Company, the Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat
the person in whose name a Security is registered as the absolute
owner of such  Security for
the

 

44

purpose of receiving payment of principal of and interest on such Security and for all
other purposes whatsoever, whether or not such Security is overdue, and none of the Company,
the Trustee, the Paying Agent, the Registrar or any co-registrar shall be affected by notice
to the contrary.

     (v)   Any Definitive Security delivered in exchange for an interest in a Global Security
pursuant to Section 2.1(d) shall, except as otherwise provided by Section
2.6(c), bear the applicable legend regarding transfer restrictions applicable to the
Definitive Security set forth in Section 2.1(c).

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

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

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

          SECTION 2.7.    Form of Certificate to be Delivered in Connection with Transfers to
Institutional Accredited Investors.

[Date]

Wilmington Trust FSB

[ADDRESS]

 

45

Attention: Corporate Trust Administration

Ladies and Gentlemen:

          This certificate is delivered to request a transfer of $                     principal amount of the 10.0%
Senior Secured Notes due 2011 (the “Securities”) of Nebraska Book Company, Inc. (the
“Company”).

          Upon transfer, the Securities would be registered in the name of the new beneficial owner as
follows:

          Name:

          Address:

          Taxpayer ID Number:

          The undersigned represents and warrants to you that:

          1.   We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act of 1933, as amended (the “Securities Act”)) purchasing for our
own account or for the account of such an institutional “accredited investor” at least $250,000
principal amount of the Securities, and we are acquiring the Securities not with a view to, or for
offer or sale in connection with, any distribution in violation of the Securities Act. We have
such knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risk of our investment in the Securities and we invest in or purchase securities similar
to the Securities in the normal course of our business. We and any accounts for which we are
acting are each able to bear the economic risk of our or its investment.

          2.   We understand that the Securities have not been registered under the Securities Act and,
unless so registered, may not be sold except as permitted in the following sentence. We agree on
our own behalf and on behalf of any investor account for which we are purchasing Securities to
offer, sell or otherwise transfer such Securities prior to the date which is two years after the
later of the date of original issue and the last date on which the Company or any affiliate of the
Company was the owner of such Securities (or any predecessor thereto) (the “Resale Restriction
Termination Date”) only (a) to the Company, (b) pursuant to a registration statement which has
been declared effective under the Securities Act, (c) in a transaction complying with the
requirements of Rule 144A under the Securities Act, to a person we reasonably believe is a
qualified institutional buyer under Rule 144A (a “QIB”) that purchases for its own account or for
the account of a QIB and to whom notice is given that the transfer is being made in reliance on
Rule 144A, (d) pursuant to offers and sales that occur outside the United States within the meaning
of Regulation S under the Securities Act, (e) to an institutional “accredited investor” within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is purchasing for its own
account or for the account of such an institutional “accredited investor,” in each case in a
minimum principal amount of Securities of $250,000 or (f) pursuant to any other available exemption
from the registration requirements of the Securities Act, subject in each of the foregoing cases to
any requirement of law that the disposition of our property or the property of such investor
account or accounts be at all times within our or their control and in compliance with any
applicable state securities laws.

 

46

 The foregoing restrictions on resale shall not apply subsequent
to the Resale Restriction Termination Date. If any resale or other transfer of the Securities is
proposed to be made pursuant to clause (e) above prior to the Resale
Restriction Termination Date, the transferor shall deliver a letter from the transferee
substantially in the form of this letter to the Company and the Trustee, which shall provide, among
other things, that the transferee is an institutional “accredited investor” (within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and that it is acquiring such Securities
for investment purposes and not for distribution in violation of the Securities Act. Each
purchaser acknowledges that the Company and the Trustee reserve the right prior to any offer, sale
or other transfer prior to the Resale Termination Date of the Securities pursuant to clauses (d),
(e) or (f) above to require the delivery of an opinion of counsel, certifications and/or other
information satisfactory to the Company and the Trustee.

 TRANSFEREE:
                  
                                        
           

	 	 	 	 	 
	 	 	 
	 	BY  	                                                                             
 	 
	 	 	 	 
	 	 	 	 
	 

          SECTION 2.8.    Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S.

[Date]

Wilmington Trust FSB

[ADDRESS]

Attention: Corporate Trust Administration

	 	 	Re: 	 	Nebraska Book Company, Inc.

10.0% Senior Secured Notes due 2011 (the “Securities”)

Ladies and Gentlemen:

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

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

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

 

47

     (c)   no directed selling efforts have been made in the United States in contravention of
the requirements of Rule 903(a)(2) or Rule 904(a)(2) of Regulation S, as applicable; and

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

          In addition, if the sale is made during a restricted period and the provisions of Rule
903(b)(2) or Rule 904(b)(1) of Regulation S are applicable thereto, we confirm that such sale has
been made in accordance with the applicable provisions of Rule 903(b)(2) or Rule 904(b)(1), as the
case may be.

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

	 	 	 	 	 	 
	 	Very truly yours,	 	 
	 
	 	 	 	 
	 	[Name of Transferor]	 	 
	 
	 	 	 	 
	 	By:
	 	 	 	 
	 	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 
	 	 

Authorized Signature
	 	 

          SECTION 2.9.    Mutilated, Destroyed, Lost or Stolen Securities. If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the Security has been
lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met
and the Holder satisfies any other reasonable requirements of the Trustee. If required by the
Trustee or the Company, such Holder shall furnish an indemnity bond sufficient in the judgment of
the Company and the Trustee to protect the Company, the Trustee, the Paying Agent, the Registrar
and any co-registrar from any loss which any of them may suffer if a Security is replaced, then, in
the absence of notice to the Company, any Subsidiary Guarantor or the Trustee that such Security
has been acquired by a bona fide purchaser, the Company shall execute and upon Company Order the
Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of
any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount,
bearing a number not contemporaneously outstanding.

          In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

 

48

          Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) in connection
therewith.

          Every new Security issued pursuant to this Section in lieu of any mutilated, destroyed, lost
or stolen Security shall constitute an original additional contractual obligation of the Company,
any Subsidiary Guarantor (if applicable) and any other obligor upon the Securities, whether or not
the mutilated, destroyed, lost or stolen Security shall be at any time enforceable by anyone, and
shall be entitled to all benefits of this Indenture equally and proportionately with any and all
other Securities duly issued hereunder.

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

          SECTION 2.10.    Outstanding Securities. Securities outstanding at any time are all
Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section as not outstanding. A Security ceases to be
outstanding in the event the Company or an Affiliate of the Company holds the Security.

          If a Security is replaced pursuant to Section 2.9 (other than a mutilated Security
surrendered for replacement, it ceases to be outstanding unless the Trustee and the Company receive
proof satisfactory to them that the replaced Security is held by a bona fide purchaser.

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

          SECTION 2.11.    Temporary Securities. Until Definitive Securities are ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary Securities.
Temporary Securities shall be substantially in the form of Definitive Securities but may have
variations that the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate Definitive Securities. After
the preparation of Definitive Securities, the temporary Securities shall be exchangeable for
Definitive Securities upon surrender of the temporary Securities at any office or agency maintained
by the Company for that purpose and such exchange shall be without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities, the Company shall execute, and
the Trustee shall authenticate and make available for delivery in exchange therefor, one or more
Definitive Securities representing an equal principal amount of Securities. Until so exchanged,
the Holder of temporary Securities shall in all respects be entitled to the same benefits under
this Indenture as a holder of Definitive Securities.

 

49

          SECTION 2.12.    Cancellation. The Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee and no one else shall cancel all
Securities surrendered for registration of transfer, exchange, payment or cancellation and deliver
a certificate of such cancellation to the Company. The Company may not issue new Securities to
replace Securities it has paid or delivered to the Trustee for cancellation.

          SECTION 2.13.    Payment of Interest; Defaulted Interest. Interest on any Security which
is payable, and is punctually paid or duly provided for, on any interest payment date shall be paid
to the Person in whose name such Security (or one or more predecessor Securities) is registered at
the close of business on the regular record date for such interest at the office or agency of the
Company maintained for such purpose pursuant to Section 2.3.

          Any interest on any Security which is payable, but is not paid when the same becomes due and
payable and such nonpayment continues for a period of 30 days shall forthwith cease to be payable
to the Holder on the regular record date by virtue of having been such Holder, and such defaulted
interest and (to the extent lawful) interest on such defaulted interest at the rate borne by the
Securities (such defaulted interest and interest thereon herein collectively called “Defaulted
Interest”) shall be paid by the Company, at its election in each case, as provided in clause
(a) or (b) below:

     (a)
  The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective predecessor Securities) are registered at
the close of business on a Special Record Date (as defined below) for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security and the date (not less than 30 days after such notice) of the proposed payment (the
“Special Interest Payment Date”), and at the same time the Company 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 in this
clause provided. Thereupon the Trustee shall fix a record date (the “Special Record
Date”) for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the Special Interest Payment Date and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date, and in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date and Special Interest Payment Date therefor to be given
in the manner provided for in Section 13.2, not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date and Special Interest Payment Date therefor having been so given, such
Defaulted Interest shall be paid on the Special Interest Payment Date to the Persons in
whose names the Securities
(or their respective predecessor Securities) are registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the following clause
(b).

 

50

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

          Notwithstanding the foregoing, if any such interest payment date (other than an interest
payment date at maturity) would otherwise be a day that is not a Business Day, then the interest
payment shall be postponed to the next succeeding Business Day (except if that Business Day falls
in the next succeeding calendar month, then interest shall be paid on the immediately preceding
Business Day). If the maturity date of the Securities is a day that is not a Business Day, all
payments to be made on such day shall be made on the next succeeding Business Day, with the same
force and effect as if made on the maturity date. In either of such cases, no additional interest
shall be payable as a result of such delay in payment.

          Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

          SECTION 2.14.    Computation of Interest. Interest on the Securities shall be computed
on the basis of a 360-day year composed of twelve 30-day months.

          SECTION 2.15.    CUSIP Numbers. The Company in issuing the Securities may use “CUSIP”
numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall not be affected by
any defect in or omission of such CUSIP numbers.

          SECTION 2.16.    Issuance of Additional Securities. The Company shall be entitled to
issue, from time to time, Additional Securities under this Indenture which shall have identical
terms as the Initial Securities issued on the Issue Date or the Exchange Securities exchanged
therefor (in each case, other than with respect to the date of issuance, issue price and amount of
interest payable on the first payment date applicable thereto), as the case may be. The Initial
Securities issued on the Issue Date, any Additional Securities and all Exchange Securities issued
in exchange therefor shall be treated as a single class for all purposes under this Indenture.

          With respect to any Additional Securities, the Company shall set forth in a resolution of the
Board of Directors and an Officers’ Certificate, a copy of each shall be delivered to the Trustee,
the following information:

 

51

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

          (ii)   the issue price, the issue date and the “CUSIP” and “ISIN” number of any such Additional
Securities and the amount of interest payable on the first payment date applicable thereto;

          (iii)   whether such Additional Securities shall be transfer restricted securities and issued
in the form of Initial Securities as set forth in Exhibit A to this Indenture or shall be issued in
the form of Exchange Securities as set forth in Exhibit B to this Indenture; and

          (iv)   if applicable, the Restricted Period for such Additional Securities.

ARTICLE III

Covenants

          SECTION 3.1.    Payment of Securities. The Company shall promptly pay the principal of and interest on the Securities on the dates
and in the manner provided in the Securities and in this Indenture. Principal and interest shall
be considered paid on the date due if on such date the Trustee or the Paying Agent holds in
accordance with this Indenture money sufficient to pay all principal and interest then due and the
Trustee or the Paying Agent, as the case may be, is not prohibited from paying such money to the
Securityholders on that date pursuant to the terms of this Indenture.

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

          Notwithstanding anything to the contrary contained in this Indenture, the Company may, to the
extent it is required to do so by law, deduct or withhold income or other similar taxes imposed by
the United States of America from principal or interest payments hereunder.

          SECTION 3.2.    SEC Reports and Available Information

          (a)   Notwithstanding that the Company may not be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, to the extent permitted by the Exchange Act, the Company
will file with the SEC, and make available to the Trustee and the Holders of the Securities, the
annual reports and the information, documents and other reports (or copies of such portions of any
of the foregoing as the SEC may by rules and regulations prescribe) that are specified in Sections
13 and 15(d) of the Exchange Act within the time periods specified therein. In the event that the
Company is not permitted to file such reports, documents and information with the SEC pursuant to
the Exchange Act, the Company will nevertheless make available such Exchange Act information to the
Trustee and the holders of the
Securities as if the Company were subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act within the time periods specified therein. The Company shall also comply
with the other provisions of TIA § 314(a).

 

52

          (b)   If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries that,
alone or taken together, represent 10% or more of the Consolidated EBITDA of the Company for the
most recent four consecutive fiscal quarters presented in a particular report or other document
filed with the SEC, then the quarterly and annual financial information required by Section
3.2(a) shall include a reasonably detailed presentation, either on the face of the financial
statements or in the footnotes to the financial statements and in Management’s Discussion and
Analysis of Results of Operations and Financial Condition, of the financial condition and results
of operations of the Company and its Restricted Subsidiaries (excluding any such Unrestricted
Subsidiaries).

          SECTION 3.3.    Limitation on Indebtedness. (a)   The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
Incur any Indebtedness (including Acquired Indebtedness); provided, however, that the Company and
the Subsidiary Guarantors may Incur Indebtedness if on the date of the Incurrence: (1) the
Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is at least 2.00 to
1.00; and (2) no Default or Event of Default will have occurred or be continuing or would occur as
a consequence of Incurring the Indebtedness or transactions relating to such Incurrence.

          (b)   Section 3.3(a) shall not prohibit the Incurrence of the following Indebtedness:
(1) Indebtedness of the Company Incurred pursuant to the Credit Agreement and Guarantees of
Restricted Subsidiaries in respect of the Indebtedness and other Obligations Incurred pursuant to a
Credit Agreement; provided, however, that the aggregate principal amount of all Indebtedness
Incurred by the Company pursuant to this Section 3.3(b)(1) does not exceed $85.0 million at
any time outstanding, less the aggregate principal amount of all Net Cash Proceeds from Asset
Dispositions applied to permanently reduce the commitments with respect to such Indebtedness
pursuant to this Section 3.3 described under Section 3.7; (2) Guarantees by the
Subsidiary Guarantors of Indebtedness Incurred in accordance with this Indenture; provided that in
the event such Indebtedness that is being Guaranteed is a Subordinated Obligation or a Guarantor
Subordinated Obligation, then the related Guarantee shall be subordinated in right of payment to
the Subsidiary Guarantee; (3) Indebtedness of the Company owing to and held by any Restricted
Subsidiary or Indebtedness of a Restricted Subsidiary owing to and held by the Company or any other
Restricted Subsidiary; provided, however, (a) if the Company is the obligor on such Indebtedness,
such Indebtedness is expressly subordinated to the prior payment in full in cash of all obligations
with respect to the Securities; (b) if a Subsidiary Guarantor is the obligor on such Indebtedness
and the Company or a Subsidiary Guarantor is not the obligee, such Indebtedness is subordinated in
right of payment to the Subsidiary Guarantees of such Subsidiary Guarantor; and (c) (i) any
subsequent issuance or transfer of Capital Stock or any other event that results in any such
Indebtedness being beneficially held by a Person other than the Company or a Restricted Subsidiary
of the Company; and (ii) any sale or other transfer of any such Indebtedness to a Person other than
the Company or a Restricted Subsidiary of the Company; shall be deemed, in each case, to
constitute the Incurrence of such Indebtedness by the Company or such Subsidiary, as the case may
be; (4) Indebtedness represented by (a) the

 

53

Securities issued on the Issue Date, the Subsidiary Guarantees and the Exchange Securities and
exchange guarantees issued in a registered exchange offer pursuant to the Registration Rights
Agreement, (b) any Indebtedness (other than the Indebtedness described in clauses (1), (2), (3),
(6), (8), (9) and (10) of this Section 3.3(b)) outstanding on the Issue Date and (c) any
Refinancing Indebtedness Incurred in respect of any Indebtedness described in this Section
3.3(b)(4) or Section 3.3(b)(5) or Incurred pursuant to Section 3.3(a); (5)
Indebtedness of a Restricted Subsidiary Incurred and outstanding on the date on which such
Restricted Subsidiary was acquired by the Company (other than Indebtedness Incurred (a) to provide
all or any portion of the funds utilized to consummate the transaction or series of related
transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was
otherwise acquired by the Company or (b) otherwise in connection with, or in contemplation of, such
acquisition); provided, however, that at the time such Restricted Subsidiary is acquired by the
Company, the Company would have been able to Incur $1.00 of additional Indebtedness pursuant to
Section 3.3(a) after giving effect to the Incurrence of such Indebtedness pursuant to this
Section 3.3(b)(5); (6) Indebtedness under Interest Rate Agreements; provided, that in the
case of such Interest Rate Agreements are entered into for bona fide hedging purposes of the
Company or its Restricted Subsidiaries (as determined in good faith by the Board of Directors or
senior management of the Company) and substantially correspond in terms of notional amount,
duration, currencies and interest rates, as applicable, to Indebtedness of the Company or its
Restricted Subsidiaries Incurred without violation of this Indenture; (7) the Incurrence by the
Company or any of its Restricted Subsidiaries of Indebtedness represented by Capitalized Lease
Obligations, mortgage financings or purchase money obligations with respect to assets other than
Capital Stock or other Investments, in each case Incurred for the purpose of financing all or any
part of the purchase price or cost of construction or improvements of property used in the business
of the Company or such Restricted Subsidiary, in an aggregate principal amount not to exceed $10.0
million at any time outstanding; (8) Indebtedness Incurred in respect of workers’ compensation
claims, self-insurance obligations, performance, surety and similar bonds and completion guarantees
provided by the Company or a Restricted Subsidiary in the ordinary course of business; (9)
Indebtedness arising from agreements of the Company or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each case, Incurred or
assumed in connection with the disposition of any business, assets or Capital Stock of a Restricted
Subsidiary, provided that the maximum aggregate liability in respect of all such Indebtedness shall
at no time exceed the gross proceeds actually received by the Company and its Restricted
Subsidiaries in connection with such disposition; (10) Indebtedness arising from the honoring by a
bank or other financial institution of a check, draft or similar instrument (except in the case of
daylight overdrafts) drawn against insufficient funds in the ordinary course of business, provided,
however, that such Indebtedness is extinguished within five Business Days of Incurrence; and (11)
in addition to the items referred to in clauses (1) through (10) of this Section 3.3(b),
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate outstanding principal
amount which, when taken together with the principal amount of all other Indebtedness Incurred
pursuant to this Section 3.3(b)(11) and then outstanding, will not exceed $20.0 million at
any time outstanding (which may be Indebtedness Incurred under or in respect of the Credit
Agreement).

 

54

          (c)   The Company shall not Incur any Indebtedness under Section 3.3(b) if the proceeds
thereof are used, directly or indirectly, to refinance any Subordinated Obligations of the Company
unless such Indebtedness shall be subordinated to the Securities to at least the same
extent as such Subordinated Obligations. No Subsidiary Guarantor shall Incur any indebtedness
if the proceeds thereof are used, directly or indirectly, to refinance any Guarantor Subordinated
Obligations of such Subsidiary Guarantor unless such Indebtedness shall be subordinated to the
obligations of such Subsidiary Guarantor under its Subsidiary Guarantee to at least the same extent
as such Guarantor Subordinated Obligations. No Restricted Subsidiary may Incur any Indebtedness if
the proceeds are used to refinance Indebtedness of the Company.

          (d)   For purposes of determining compliance with, and the outstanding principal amount of any
particular Indebtedness Incurred pursuant to and in compliance with, this Section 3.3: (1)
in the event that Indebtedness meets the criteria of more than one of the types of Indebtedness
described in Section 3.3(a) or (b), the Company, in its sole discretion, will classify such
item of Indebtedness on the date of Incurrence and only be required to include the amount and type
of such Indebtedness in one of such clauses; (2) all Indebtedness outstanding on the date of this
Indenture under the Credit Agreement shall be deemed initially Incurred on the Issue Date under
clause (1) of Section 3.3(b) and not Section 3.3(a) or clause (4) of Section
3.3(b); (3) Guarantees of, or obligations in respect of letters of credit relating to,
Indebtedness that is otherwise included in the determination of a particular amount of Indebtedness
shall not be included; (4) if obligations in respect of letters of credit are Incurred pursuant to
a Credit Agreement and are being treated as Incurred pursuant to clause (1) of Section 3.3(b)
and the letters of credit relate to other Indebtedness, then such other Indebtedness shall not
be included; (5) the principal amount of any Disqualified Stock of the Company or a Restricted
Subsidiary, or Preferred Stock of a Restricted Subsidiary that is not a Subsidiary Guarantor, will
be equal to the greater of the maximum mandatory redemption or repurchase price (not including, in
either case, any redemption or repurchase premium) or the liquidation preference thereof; (6)
Indebtedness permitted by this Section 3.3 need not be permitted solely by reference to one
provision permitting such Indebtedness but may be permitted in part by one such provision and in
part by one or more other provisions of this Section 3.3 permitting such Indebtedness; and
(7) the amount of Indebtedness issued at a price that is less than the principal amount thereof
will be equal to the amount of the liability in respect thereof determined in accordance with GAAP.
Accrual of interest, accrual of dividends, the accretion of accreted value, the payment of
interest in the form of additional Indebtedness and the payment of dividends in the form of
additional shares of Preferred Stock or Disqualified Stock shall not be deemed to be an Incurrence
of Indebtedness for purposes of this Section 3.3. The amount of any Indebtedness
outstanding as of any date shall be (i) the accreted value thereof in the case of any Indebtedness
issued with original issue discount and (ii) the principal amount or liquidation preference
thereof, together with any interest thereon that is more than 30 days past due, in the case of any
other Indebtedness. 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
Indebtedness, or first committed, in the case of revolving credit Indebtedness; 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

 

55

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. Notwithstanding any other provision of this Section 3.3, the maximum amount
of Indebtedness that the Company may Incur pursuant to this Section 3.3 shall not be deemed to be exceeded solely as a result of fluctuations in
the exchange rate of currencies. 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
Refinancing Indebtedness is denominated that is in effect on the date of such refinancing.

          (e)   If at any time an Unrestricted Subsidiary becomes a Restricted Subsidiary, any
Indebtedness of such Subsidiary shall be deemed to be Incurred by a Restricted Subsidiary as of
such date (and, if such Indebtedness is not permitted to be Incurred as of such date under this
Section 3.3, the Company shall be in Default of this Section 3.3).

          SECTION 3.4.    [Reserved].

          SECTION 3.5.    Limitation on Restricted Payments. (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries,
directly or indirectly, to (1) declare or pay any dividend or make any distribution (whether made
in cash, securities or other property) on or in respect of its Capital Stock (including any payment
in connection with any merger or consolidation involving the Company or any of its Restricted
Subsidiaries) except: (A) dividends or distributions payable in Capital Stock of the Company
(other than Disqualified Stock) or in options, warrants or other rights to purchase such Capital
Stock of the Company; and (B) dividends or distributions payable to the Company or a Restricted
Subsidiary (and if such Restricted Subsidiary is not a Wholly-Owned Subsidiary, to its other
holders of common Capital Stock on a pro rata basis); (2) purchase, redeem, retire or otherwise
acquire for value any Capital Stock of the Company or any direct or indirect parent of the Company
held by Persons other than the Company or a Restricted Subsidiary (other than in exchange for
Capital Stock of the Company (other than Disqualified Stock)); (3) purchase, repurchase, redeem,
defease or otherwise acquire or retire for value, prior to scheduled maturity, scheduled repayment
or scheduled sinking fund payment, any Junior Lien Collateral Indebtedness, Senior Unsecured Pari
Passu Indebtedness, Subordinated Obligations or Guarantor Subordinated Obligations (other than the
purchase, repurchase, redemption, defeasance or other acquisition or retirement of Junior Lien
Collateral Indebtedness, Senior Unsecured Pari Passu Indebtedness, Subordinated Obligations or
Guarantor Subordinated Obligations 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, redemption, defeasance or other acquisition or retirement); or (4) make
any Restricted Investment in any Person; (any such dividend, distribution, purchase, redemption,
repurchase, defeasance, other acquisition, retirement or Restricted Investment referred to in
clauses (1) through (4) of this Section 3.5(a) shall be referred to herein as a
“Restricted Payment”), if at the time the Company or such Restricted Subsidiary makes such
Restricted Payment: (a) a Default shall have occurred and be continuing (or would result
therefrom); or (b) the Company is not able to Incur an
additional $1.00 of Indebtedness pursuant to Section 3.3(a)

 

56

after giving effect, on a pro forma basis, to such Restricted Payment; or
(c) the aggregate amount of such Restricted Payment and all other Restricted Payments declared or
made subsequent to March 4, 2004 would exceed the sum of: (i) 50% of Consolidated Net Income for the period
(treated as one accounting period) from the first day of the quarter in which March 4, 2004 occurs
to the end of the most recent fiscal quarter ending prior to the date of such Restricted Payment
for which financial statements are in existence (or, in case such Consolidated Net Income is a
deficit, minus 100% of such deficit); (ii) 100% of the aggregate Net Cash Proceeds received by the
Company from the issue or sale of its Capital Stock (other than Disqualified Stock) or other
capital contributions subsequent to March 4, 2004 (other than Net Cash Proceeds received from an
issuance or sale of such Capital Stock to a Subsidiary of the Company or to an employee stock
ownership plan, option plan or similar trust to the extent such sale to an employee stock ownership
plan or similar trust is financed by loans from or Guaranteed by the Company or any Restricted
Subsidiary unless such loans have been repaid with cash on or prior to the date of determination);
(iii) the amount by which Indebtedness of the Company or its Restricted Subsidiaries is reduced on
the Company’s balance sheet upon the conversion or exchange (other than by a Subsidiary of the
Company) subsequent to March 4, 2004 of any Indebtedness of the Company or its Restricted
Subsidiaries convertible or exchangeable for Capital Stock (other than Disqualified Stock) of the
Company (less the amount of any cash, or the fair market value of any other property, distributed
by the Company upon such conversion or exchange); and (iv) the amount equal to the net reduction in
Restricted Investments made by the Company or any of its Restricted Subsidiaries in any Person
resulting from: (A) repurchases or redemptions of such Restricted Investments by such Person,
proceeds realized upon the sale of such Restricted Investment to an unaffiliated purchaser,
repayments of loans or advances or other transfers of assets (including by way of dividend or
distribution) by such Person to the Company or any Restricted Subsidiary, or (B) the redesignation
of Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case as provided in the
definition of “Investment”) not to exceed, in the case of any Unrestricted Subsidiary, the amount
of Investments previously made by the Company or any Restricted Subsidiary in such Unrestricted
Subsidiary, which amount in each case under this clause (iv) was included in the calculation of the
amount of Restricted Payments; provided, however, that no amount will be included under this
clause (iv) to the extent it is already included in Consolidated Net Income.

The provisions of Section 3.5(a) shall not prohibit: (1) any purchase, repurchase,
redemption, defeasance or other acquisition or retirement of Capital Stock, Disqualified Stock,
Junior Lien Collateral Indebtedness, Senior Unsecured Pari Passu Indebtedness, Subordinated
Obligations of the Company or Guarantor Subordinated Obligations of any Subsidiary Guarantor made
by exchange for, or out of the proceeds of the substantially concurrent sale of, Capital Stock of
the Company (other than Disqualified Stock and other than Capital Stock issued or sold to a
Subsidiary or an employee stock ownership plan or similar trust to the extent such sale to an
employee stock ownership plan or similar trust is financed by loans from or Guaranteed by the
Company or any Restricted Subsidiary unless such loans have been repaid with cash on or prior to
the date of determination); provided, however, that (a) such purchase, repurchase, redemption,
defeasance, acquisition or retirement will be excluded in subsequent calculations of the amount of
Restricted Payments and (b) the Net Cash Proceeds from such sale of Capital Stock will be excluded
from Section 3.5(a)(4)(c)(ii); (2) (A) any purchase,
repurchase, redemption, defeasance or other acquisition or retirement of

 

57

Junior Lien Collateral Indebtedness, Senior Unsecured Pari Passu
Indebtedness, Subordinated Obligations of the Company or Guarantor Subordinated Obligations of any
Subsidiary Guarantor made by exchange for, or out of the proceeds of the substantially concurrent
sale of, Subordinated Obligations of the Company or (B) any purchase, repurchase, redemption, defeasance or other acquisition or retirement of Guarantor Subordinated
Obligations or (C) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Junior Lien Collateral Indebtedness of the Company made by exchange for, or out of
the proceeds of the substantially concurrent sale of Junior Lien Collateral Indebtedness of the
Company or Senior Unsecured Pari Passu Indebtedness of the Company or (D) any purchase, repurchase,
redemption, defeasance or other acquisition or retirement of Junior Lien Collateral Indebtedness of
a Subsidiary Guarantor made by exchange for or out of the proceeds of the substantially concurrent
sale of Junior Lien Collateral Indebtedness or Senior Unsecured Pari Passu Indebtedness of the
Company or such Subsidiary Guarantor or Guarantor Subordinated Obligations of such Subsidiary
Guarantor or (E) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Senior Unsecured Pari Passu Indebtedness of the Company made by exchange for, or out
of the proceeds of the substantially concurrent sale of Senior Unsecured Pari Passu Indebtedness of
the Company or (F) any purchase, defeasance or redemption of Senior Unsecured Pari Passu Indebtedness of a Subsidiary Guarantor made by exchange
for, or out of the proceeds of the substantially concurrent sale of Senior Unsecured Pari Passu
Indebtedness of the Company or such Subsidiary Guarantor or Guarantor Subordinated Obligations of
such Subsidiary Guarantor that, in each case, is permitted to be Incurred pursuant to Section 3.3
and that in each case constitutes Refinancing Indebtedness; provided, however, that such purchase,
repurchase, redemption, defeasance, acquisition or retirement will be excluded in subsequent
calculations of the amount of Restricted Payments; (3) any purchase, repurchase, redemption,
defeasance or other acquisition or retirement of Disqualified Stock of the Company or a Restricted
Subsidiary made by exchange for or out of the proceeds of the substantially concurrent sale of
Disqualified Stock of
 the Company or such Restricted Subsidiary, as the case may be, that, in each
case, is permitted to be Incurred pursuant to Section 3.3 and that in each case constitutes
Refinancing Indebtedness; provided, however, that such purchase, repurchase, redemption,
defeasance, acquisition or retirement will be excluded in subsequent calculations of the amount of
Restricted Payments; (4) so long as no Default or Event of Default has occurred and is continuing,
any purchase or redemption of Junior Lien Collateral Indebtedness, Senior Unsecured Pari Passu
Indebtedness, Subordinated Obligations or Guarantor Subordinated Obligations of a Subsidiary
Guarantor from Net Available Cash to the extent permitted under Section 3.7; provided,
however, that such purchase or redemption will be excluded in subsequent calculations of the amount
of Restricted Payments; (5) dividends paid within 60 days after the date of declaration if at such
date of declaration such dividend would have complied with this Section 3.5; provided,
however, that such dividends will be included in subsequent calculations of the amount of
Restricted Payments; (6) so long as no Default or Event of Default has occurred and is continuing,
dividends to Holdings or New Holdings for the purpose of, and in the amounts equal to, amounts
required to permit Holdings or New Holdings: (a) to redeem or repurchase Capital Stock of Holdings
or New Holdings held by any existing or former employees or management of the Company or any
Subsidiary of the Company or their assigns, estates or heirs, in each case in connection with the
repurchase provisions under employee stock option or stock purchase agreements or other agreements
to compensate management employees; provided that such redemptions or repurchases pursuant to this
Section 3.5(b)(6)(a) will not exceed

 

58

$4.0 million in the aggregate for all such redemptions
and repurchases; provided, however, that the amount of any such repurchase or redemption will be
included in subsequent calculations of the amount of Restricted Payments; and (b) to make loans or
advances to employees or directors of the Company or any Subsidiary of the Company the
proceeds of which are used to purchase Capital Stock of Holdings or New Holdings, in an aggregate
amount not in excess of $1.5 million at any one time outstanding; provided, however, that the
amount of such loans and advances will be included in subsequent calculations of the amount of
Restricted Payments; (7) so long as no Default or Event of Default has occurred and is continuing,
the declaration and payment of dividends to holders of any class or series of Disqualified Stock of
the Company issued in accordance with the terms of this Indenture to the extent such dividends are
included in the definition of “Consolidated Interest Expense”; provided that the payment of such
dividends will be excluded from the calculation of Restricted Payments; (8) repurchases of Capital
Stock deemed to occur upon the exercise of stock options, warrants or other convertible securities
if such Capital Stock represents a portion of the exercise price thereof; provided, however, that
such repurchases will be excluded from subsequent calculations of the amount of Restricted
Payments; (9) so long as (a) no Default or Event of Default shall have occurred and be continuing
and (b) immediately before and immediately after giving effect thereto, the Company would have been
permitted to Incur at least $1.00 of additional Indebtedness pursuant to Section 3.3(a),
payments of cash dividends to Holdings in an amount sufficient to enable Holdings to make payments
of cash interest required to be made in respect of the Holdings Senior Discount Notes in accordance
with the terms thereof in effect on the date of this Indenture, provided Holdings is otherwise
unable to pay such interest and such dividends are applied directly to the payment of such
interest; and provided, further, that such payments will be excluded from the calculation of the
amount of Restricted Payments; (10) cash dividends or loans to Holdings or New Holdings in amounts
equal to: (a) the amounts required for Holdings or New Holdings to pay any Federal, state or local
income taxes to the extent that such income taxes are directly attributable to the income of the
Company and its Restricted Subsidiaries; (b) the amounts required for Holdings and New Holdings to
pay franchise taxes and other fees required to maintain their legal existence; (c) an amount not to
exceed $500,000 in any fiscal year to permit Holdings and New Holdings to pay their corporate
overhead expenses Incurred in the ordinary course of business, and to pay salaries or other
compensation of employees who perform services for the Company and one or more of Holdings or New
Holdings; (d) so long as no Default or Event of Default shall have occurred and be continuing, an
amount not to exceed $100,000 in the aggregate, to enable Holdings or New Holdings to make payments
to holders of its Capital Stock in lieu of issuance of fractional shares of its Capital Stock; and
(e) the amounts payable by Holdings or New Holdings in connection with the Refinancing; provided,
that such dividends or loans will be excluded from subsequent calculations of the amount of
Restricted Payments; (11) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of any Junior Lien Collateral Indebtedness, Senior Unsecured Pari Passu
Indebtedness, Subordinated Obligation or Guarantor Subordinated Obligation (i) at a purchase price
not greater than 101% of the principal amount of such Junior Lien Collateral Indebtedness, Senior
Unsecured Pari Passu Indebtedness, Subordinated Obligation or Guarantor Subordinated Obligation in
the event of a Change of Control in accordance with provisions similar to Section 3.9 or
(ii) at a purchase price not greater than 100% of the principal amount thereof in
accordance with provisions similar to Section 3.7; provided that, prior

 

59

to or simultaneously with such
purchase, repurchase, redemption, defeasance or other acquisition or retirement, the Company has
made the Change of Control Offer or Asset Disposition Offer, as applicable, as provided in
Section 3.7 or Section 3.9 with respect to the Securities and has completed the
repurchase or redemption of all Securities validly tendered for payment in connection with such
Change of Control Offer or Asset Disposition Offer; and (12) other Restricted Payments in an
amount not to exceed $10.0 million; provided that the amount of such Restricted Payments will be
included in the calculation of the amount of Restricted Payments.

          The amount of all Restricted Payments (other than cash) shall be the fair market value on the
date of such Restricted Payment of the asset(s) or securities proposed to be paid, transferred or
issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to such
Restricted Payment. The fair market value of any cash Restricted Payment shall be its face amount
and any non-cash Restricted Payment shall be determined conclusively by the Board of Directors of
the Company acting in good faith whose resolution with respect thereto shall be delivered to the
Trustee, such determination to be based upon an opinion or appraisal issued by an accounting,
appraisal or investment banking firm of national standing if such fair market value is estimated in
good faith by the Board of Directors of the Company to exceed $5.0 million. Not later than the date
of making any Restricted Payment, the Company shall deliver to the Trustee an Officers’ Certificate
stating that such Restricted Payment is permitted and setting forth the basis upon which the
calculations required by this Section 3.5 were computed, together with a copy of any
fairness opinion or appraisal required by this Indenture.

          SECTION 3.6.    Limitation on Restrictions on Distributions from Restricted Subsidiaries. (a)   The Company will not, and will not permit any Restricted Subsidiary to, create or
otherwise cause or permit to exist or become effective any consensual encumbrance or consensual
restriction on the ability of any Restricted Subsidiary to: (1) pay dividends or make any other
distributions on its Capital Stock or pay any Indebtedness or other obligations owed to the Company
or any Restricted Subsidiary (it being understood that the priority of any Preferred Stock in
receiving dividends or liquidating distributions prior to dividends or liquidating distributions
being paid on Common Stock shall not be deemed a restriction on the ability to make distributions
on Capital Stock); (2) make any loans or advances to the Company or any Restricted Subsidiary (it
being understood that the subordination of loans or advances made to the Company or any Restricted
Subsidiary to other Indebtedness Incurred by the Company or any Restricted Subsidiary shall not be
deemed a restriction on the ability to make loans or advances); or (3) transfer any of its property
or assets to the Company or any Restricted Subsidiary.

          (b)   The provisions of Section 3.6(a) will not prohibit: (i) any encumbrance or
restriction pursuant to an agreement in effect at or entered into on the date of this Indenture,
including, without limitation, this Indenture, the indenture for the 8 5/8% Notes, the Subsidiary
Guarantee, the Collateral Documents, the Intercreditor Agreement and the Credit Agreement (and
related documentation); (ii) any encumbrance or restriction with respect to a Restricted Subsidiary
pursuant to an agreement relating to any Capital Stock or Indebtedness Incurred by a Restricted
Subsidiary on or before the date on which such Restricted Subsidiary was acquired by the Company
(other than Capital Stock or Indebtedness Incurred as consideration
in, or to provide all or any portion of the funds utilized to consummate, the transaction
or series of

 

60

related transactions
pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the
Company or in contemplation of the transaction) and outstanding on such date provided, that any
such encumbrance or restriction shall not extend to any assets or property of the Company or any
other Restricted Subsidiary other than the assets and property so acquired; (iii) any encumbrance
or restriction with respect to a Restricted Subsidiary pursuant to an agreement effecting a refunding,
replacement or refinancing of Indebtedness Incurred pursuant
to an agreement referred to in Section 3.6(b)(i) or (b)(ii) or this Section
3.6(b)(iii) or contained in any amendment to an agreement referred to in Section 3.6(b)(i)
or (b)(ii) or this Section 3.6(b)(iii); provided, however, that the encumbrances and
restrictions with respect to such Restricted Subsidiary contained in any such agreement are no less
favorable in any material respect to the Holders of the Securities than the encumbrances and
restrictions contained in such agreements referred to in Section 3.6(b)(i) or (b)(ii) on
the Issue Date or the date such Restricted Subsidiary became a Restricted Subsidiary, whichever is
applicable; (iv) in the case of Section 3.6(b)(iii), any encumbrance or restriction (a)
that restricts in a customary manner the subletting, assignment or transfer of any property or
asset that is subject to a lease, license or similar contract, or the assignment or transfer of any
such lease, license or other contract; (b) contained in mortgages, pledges or other security
agreements permitted under the Indenture securing Indebtedness of the Company or a Restricted
Subsidiary to the extent such encumbrances or restrictions restrict the transfer of the property
subject to such mortgages, pledges or other security agreements; or (c) pursuant to customary
provisions restricting dispositions of real property interests set forth in any reciprocal easement
agreements of the Company or any Restricted Subsidiary; (v) (a) purchase money obligations for
property acquired in the ordinary course of business and (b) Capitalized Lease Obligations
permitted under this Indenture, in each case, that impose encumbrances or restrictions of the
nature described in clause (3) of Section 3.6(a) on the property so acquired; (vi) any
restriction with respect to a Restricted Subsidiary (or any of its property or assets) imposed
pursuant to an agreement entered into for the direct or indirect sale or disposition of all or
substantially all the Capital Stock or assets of such Restricted Subsidiary (or the property or
assets that are subject to such restriction) pending the closing of such sale or disposition; (vii)
net worth provisions in leases and other agreements entered into by the Company or any Restricted
Subsidiary in the ordinary course of business; and (viii) encumbrances or restrictions arising or
existing by reason of applicable law or any applicable rule, regulation or order.

          SECTION 3.7.    Limitation on Sales of Assets and Subsidiary Stock. (a)   The Company will not, and will not permit any of its Restricted Subsidiaries to, make
any Asset Disposition unless: (1) in the case of any Asset Disposition involving shares or assets
having a value equal to or in excess of $1.0 million, the Company or such Restricted Subsidiary, as
the case may be, receives consideration at least equal to the fair market value (such fair market
value to be determined on the date of contractually agreeing to such Asset Disposition), as
determined in good faith by the Board of Directors (including the value of all non-cash
consideration), of the shares and assets subject to such Asset Disposition; (2) in the case of any
Asset Disposition involving shares or assets having a value equal to or in excess of $1.0 million,
at least 75% of the consideration from such Asset Disposition received by the Company or such
Restricted Subsidiary, as the case may be, is in the form of cash or
Cash Equivalents; and (3) an amount equal to 100% of the Net Available Cash from such Asset Disposition is applied by the
Company

 

61

or such Restricted Subsidiary, as the case may be: (a) to prepay, repay or purchase secured
Indebtedness of the Company (other than any Disqualified Stock or Subordinated Obligations) or
secured Indebtedness of a Restricted Subsidiary (other than any Disqualified Stock or Guarantor
Subordinated Obligations of a Restricted Subsidiary that is a Subsidiary Guarantor) (in each case
other than Indebtedness owed to the Company or an Affiliate of the Company) within 360 days from
the later of the date of such Asset Disposition or the receipt of such Net Available Cash; provided, however, that, in connection with any
prepayment, repayment or purchase of Indebtedness pursuant to this clause (a), the Company or such
Restricted Subsidiary will retire such Indebtedness and will cause the related commitment (if any)
to be permanently reduced in an amount equal to the principal amount so prepaid, repaid or
purchased; or (b) to invest in Additional Assets within 360 days from the later of the date of such
Asset Disposition or the receipt of such Net Available Cash; provided that pending the final
application of any such Net Available Cash in accordance with Section 3.7(a)(3)(a) or
Section 3.7(a)(3)(b) above, the Company and its Restricted Subsidiaries may temporarily
reduce Indebtedness or otherwise invest such Net Available Cash in any manner not prohibited by
this Indenture; provided, further, that in the case of an Asset Disposition of Collateral, any cash
will be deposited in accordance with the Intercreditor Agreement.

          (b)   Any Net Available Cash from Asset Dispositions that are not applied or invested as
provided in Section 3.7(a)(3) will be deemed to constitute “Excess Proceeds.” On
the 361st day after an Asset Disposition, if the aggregate amount of Excess Proceeds exceeds $5.0
million, the Company will be required to make an offer (“Asset Disposition Offer”) to all
Holders of Securities and to the extent required by the terms of Pari Passu Lien Indebtedness, to
all holders of Pari Passu Lien Indebtedness outstanding with similar provisions requiring the
Company to make an offer to purchase such Pari Passu Lien Indebtedness with the proceeds from any
Asset Disposition (“Pari Passu Notes”), to purchase the maximum principal amount of
Securities and any such Pari Passu Notes to which the Asset Disposition Offer applies 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 of the Securities and Pari Passu Notes plus accrued and unpaid interest to the
date of purchase, in accordance with the procedures set forth in this Indenture or the agreements
governing the Pari Passu Notes, as applicable, in each case in denominations of $2,000 principal
amount and integral multiples of $1,000 in excess thereof. To the extent that the aggregate amount
of Securities and Pari Passu Notes so validly tendered and not properly withdrawn pursuant to an
Asset Disposition Offer is less than the Excess Proceeds, the Company may use any remaining Excess
Proceeds for general corporate purposes, subject to other covenants contained in this Indenture;
provided that to the extent that the assets disposed of in such Asset Sale constitutes Collateral,
any assets purchased with such Excess Proceeds shall be pledged as Collateral pursuant to the
Collateral Documents. If the aggregate principal amount of Securities surrendered by holders
thereof and other Pari Passu Notes surrendered by holders or lenders, collectively, exceeds the
amount of Excess Proceeds, the Trustee shall select the Securities and the Company or agent for the
Pari Passu Notes shall select Pari Passu Notes to be purchased on a pro rata basis on the basis in
authorized denominations of the aggregate principal amount of tendered Securities and Pari Passu
Notes. Upon completion of such Asset Disposition Offer, the amount of Excess Proceeds shall be
reset at zero.

 

62

          (c) (1)   The Asset Disposition Offer shall remain open for a period of 20 Business Days
following its commencement, except to the extent that a longer period is required by applicable law
(the “Asset Disposition Offer Period”). No later than five Business Days after the
termination of the Asset Disposition Offer Period (the “Asset Disposition Purchase Date”),
the Company will purchase the principal amount of Securities and Pari Passu Notes required to be
purchased pursuant to this Section 3.7 (the “Asset Disposition Offer Amount”) or,
if less than the Asset Disposition Offer Amount has been so validly tendered, all Securities and
Pari Passu Notes validly tendered in response to the Asset Disposition Offer.

          If the Asset Disposition Purchase Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid interest will be paid to the Person in
whose name a Security is registered at the close of business on such record date, and no additional
interest will be payable to Holders who tender Securities pursuant to the Asset Disposition Offer.

          On or before the Asset Disposition Purchase Date, the Company will, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer Amount
of Securities and Pari Passu Notes or portions of Securities and Pari Passu Notes so validly
tendered and not properly withdrawn pursuant to the Asset Disposition Offer, or if less than the
Asset Disposition Offer Amount has been validly tendered and not properly withdrawn, all Securities
and Pari Passu Notes so validly tendered and not properly withdrawn, in each case in denominations
of $2,000 and integral multiples of $1,000 in excess thereof. The Company will deliver to the
Trustee an Officers’ Certificate stating that such Securities or portions thereof were accepted for
payment by the Company in accordance with the terms of this Section 3.7 and, in addition,
the Company will deliver all certificates and notes required, if any, by the agreements governing
the Pari Passu Notes. The Company or the Paying Agent, as the case may be, will promptly (but in
any case not later than five Business Days after termination of the Asset Disposition Offer Period)
mail or deliver to each tendering Holder of Securities or holder or lender of Pari Passu Notes, as
the case may be, an amount equal to the purchase price of the Securities or Pari Passu Notes so
validly tendered and not properly withdrawn by such Holder or lender, as the case may be, and
accepted by the Company for purchase, and the Company will promptly issue a new Security, and the
Trustee, upon delivery of an Officers’ Certificate from the Company, will authenticate and mail or
deliver such new Security to such Holder, in a principal amount equal to any unpurchased portion of
the Security surrendered; provided that each such new Security will be in a principal amount of
$2,000 or an integral multiple of $1,000 in excess thereof. In addition, the Company will take any
and all other actions required by the agreements governing the Pari Passu Notes. Any Security not
so accepted will be promptly mailed or delivered by the Company to the Holder thereof. The Company
will publicly announce the results of the Asset Disposition Offer on the Asset Disposition Purchase
Date. The Trustee or the Paying Agent shall not have any obligation to take any action with
respect to the Pari Passu Notes.

          For the purposes of this Section 3.7, the following will be deemed to be cash:

	 	(1)	 	the assumption by the transferee of Indebtedness (other than
Subordinated Obligations or Disqualified Stock) of the Company or

 

63

	 	 	 	Indebtedness
of a Restricted Subsidiary (other than Guarantor Subordinated Indebtedness,
Guarantor Subordinated Obligations or Disqualified Stock of any Wholly-Owned
Subsidiary that is a Subsidiary Guarantor) and the release of the Company or
such Restricted Subsidiary from all liability on such Indebtedness in
connection with such Asset Disposition (in which case the Company will, without
further action, be deemed to have applied such deemed cash to Indebtedness in
accordance with Section 3.7(a)(3)(a)); and
	 
	 	(2)	 	securities, notes or other obligations received by the Company
or any Restricted Subsidiary from the transferee that are promptly converted by
the Company or such Restricted Subsidiary into cash.

          (d)   The Company will comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection with the repurchase
of Securities pursuant to this Indenture. To the extent that the provisions of any securities laws
or regulations conflict with provisions of this Section 3.7, the Company will comply with
the applicable securities laws and regulations and will not be deemed to have breached its
obligations under this Indenture by virtue thereof.

          SECTION 3.8.    Limitation on Affiliate Transactions. (a)   The Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or conduct any transaction (including the purchase, sale, lease
or exchange of any property or the rendering of any service) with any Affiliate of the Company (an
“Affiliate Transaction”) unless: (1) the terms of such Affiliate Transaction are no less
favorable to the Company or such Restricted Subsidiary, as the case may be, than those that could
be obtained in a comparable transaction at the time of such transaction in arm’s-length dealings
with a Person who is not such an Affiliate; (2) in the event such Affiliate Transaction involves an
aggregate consideration in excess of $1.0 million, the terms of such transaction have been approved
by a majority of the members of the Board of Directors of the Company and by a majority of the
members of such Board of Directors having no personal stake in such transaction, if any (and such
majority or majorities, as the case may be, determines that such Affiliate Transaction satisfies
the criteria in Section 3.8(a)(1)); and (3) in the event such Affiliate Transaction
involves an aggregate consideration in excess of $5.0 million, the Company has received a written
opinion from an independent investment banking, accounting or appraisal firm of nationally
recognized standing that such Affiliate Transaction is not materially less favorable than those
that might reasonably have been obtained in a comparable transaction at such time on an
arm’s-length basis from a Person that is not an Affiliate.

          (b)   Section 3.8(a) shall not apply to: (1) any Restricted Payment (other than a
Restricted Investment) permitted to be made pursuant to Section 3.5; (2) any issuance of
securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or
the funding of, employment agreements and other compensation arrangements, options to purchase
Capital Stock of the Company, restricted stock plans, long-term incentive plans, stock appreciation
rights plans, participation plans or similar employee benefits plans and/or indemnity provided on
behalf of officers and employees approved by the Board of Directors;
(3) loans or advances to employees, officers or directors in the ordinary

 

64

course of business of the Company or any of its
Restricted Subsidiaries but in any event not to exceed $1.5 million in the aggregate outstanding at
any one time with respect to all loans or advances made since the Issue Date; (4) any transaction
between the Company and a Restricted Subsidiary or between Restricted Subsidiaries and Guarantees
issued by the Company or a Restricted Subsidiary for the benefit of the Company or a Restricted
Subsidiary, as the case may be, in accordance with Section 3.3; (5) the payment of
reasonable and customary fees paid to, and indemnity provided on behalf of, directors of the
Company or any Restricted Subsidiary; (6) the fees payable by the Company in connection with the
Refinancing; (7) the performance of obligations of the Company or any of its Restricted Subsidiaries
under the terms of any agreement to which the Company or any of
its Restricted Subsidiaries is a party as of or on the Issue Date and identified on a schedule to
this Indenture on the Issue Date, as these agreements may be amended, modified, supplemented,
extended or renewed from time to time; provided, however, that any future amendment, modification,
supplement, extension or renewal entered into after the Issue Date will be permitted to the extent
that its terms are not more disadvantageous to the holders of the Securities than the terms of the
agreements in effect on the Issue Date; (8) the issuance of Capital Stock (other than Disqualified
Stock) of the Company to any Affiliate; and (9) entrance into and performance of any employment
agreement entered into by the Company or any of its Restricted Subsidiaries in the ordinary course
of business or approved by the Board of Directors in good faith.

          SECTION 3.9.    Change of Control. Upon the occurrence of a Change of Control, unless the Company has exercised its right to
redeem all of the Securities in accordance with Article V, each Holder will have the right
to require the Company to repurchase all or any part (equal to $2,000 of principal amount or
integral multiples of $1,000 thereof) of such Holder’s Securities at a purchase price in cash equal
to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of
purchase (subject to the right of Holders 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 unless the Company has exercised its right to
redeem Securities under Section 5.1, the Company will mail a notice (the “Change of
Control Offer”) to each Holder, with a copy to the Trustee, stating:

          (1)   that a Change of Control has occurred and that such Holder has the right to require the
Company to purchase such holder’s Securities at a purchase price in cash equal to 101% of the
principal amount of such Securities plus accrued and unpaid interest, if any, to the date of
purchase (subject to the right of Holders of record on the relevant record date to receive interest
due on the relevant interest payment date) (the “Change of Control Payment”);

          (2)   the repurchase date (which shall be no earlier than 30 days nor later than 60 days from
the date such notice is mailed) (the “Change of Control Payment Date”); and

          (3)   the procedures determined by the Company, consistent with this Indenture, that a holder
must follow in order to have its Securities repurchased.

 

65

          On the Change of Control Payment Date, the Company will, to the extent lawful: (1) accept for
payment all Securities or portions of Securities (equal to $2,000 of principal amount or integral
multiples of $1,000 thereof) properly tendered pursuant to the Change of Control Offer; (2) deposit
with the paying agent an amount equal to the Change of Control Payment in respect of all Securities
or portions of Securities so tendered; and (3) deliver or cause to be delivered to the Trustee the
Securities so accepted together with an Officers’ Certificate stating the aggregate principal
amount of Securities or portions of Securities being purchased by the Company.

          The paying agent will promptly mail or deliver to each holder of Securities so tendered the
Change of Control Payment for such Securities, and the Trustee will promptly authenticate and mail
(or cause to be transferred by book entry) to each holder a new Security equal in principal amount
to any unpurchased portion of the Securities surrendered, if any; provided that each such new
Security will be in a principal amount of $2,000 or integral multiples of $1,000 thereof.

          If the Change of Control Payment Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid interest, if any, will be paid to the
Person in whose name a Security is registered at the close of business on such record date, and no
additional interest will be payable to holders who tender pursuant to the Change of Control Offer.

          The Company will not be required to make a Change of Control Offer upon a Change of Control if
a third party makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Section 3.9 applicable to a Change of
Control Offer made by the Company and purchases all Securities validly tendered and not withdrawn
under such Change of Control Offer.

          The Company will comply, to the extent applicable, with the requirements of Section 14(e) of
the Exchange Act and any other securities laws or regulations in connection with the repurchase of
Securities pursuant to this Section 3.9. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Indenture, the Company will comply
with the applicable securities laws and regulations and will not be deemed to have breached its
obligations described in this Indenture by virtue of the conflict.

          SECTION 3.10.    Limitation on Sale of Capital Stock of Restricted Subsidiaries. The Company will not, and will not permit any Restricted Subsidiary to, transfer, convey,
sell, lease or otherwise dispose of any Voting Stock of any Restricted Subsidiary or, with respect
to a Restricted Subsidiary, to issue any of its Voting Stock (other than, if necessary, shares of
its Voting Stock constituting directors’ qualifying shares) to any Person except: (1) to the
Company or a Wholly-Owned Subsidiary; or (2) in compliance with Section 3.7 and
immediately after giving effect to such issuance or sale, such Restricted Subsidiary would continue
to be a Restricted Subsidiary.

          Notwithstanding the preceding paragraph, the Company or any Restricted Subsidiary may sell all
the Voting Stock of a Restricted Subsidiary as long as the Company or any Restricted Subsidiary
complies with the terms of Section 3.7.

 

66

          SECTION 3.11.    Limitation on Liens. The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, Incur or suffer to exist any Lien (other than Permitted Liens) that secures
obligations under any Indebtedness on any asset or property of the Company or such Restricted
Subsidiary, including any Guarantee of such Restricted Subsidiary, or any income or profits
therefrom, or assign or convey any right to receive income therefrom. In addition, if the Company
or any Subsidiary Guarantor, directly or indirectly, shall create, incur, or suffer to exist any
Lien securing Credit Agreement Obligations, the Company or such Subsidiary Guarantor, as
the case may be, must concurrently grant at least a second-priority Lien, subject to Permitted
Liens, upon such property as security for the Securities and the Subsidiary Guarantees.

          SECTION 3.12.    Future Subsidiary Guarantors. After the Issue Date, the Company will cause each Restricted Subsidiary that Guarantees any
Indebtedness of the Company or any Subsidiary Guarantor to execute and deliver to the Trustee a
supplemental indenture, substantially in the form of Exhibit C hereto, pursuant to which such
Restricted Subsidiary shall unconditionally Guarantee, on a joint and several basis, the full and
prompt payment of the principal of, premium, if any, and interest in respect of the Securities on a
senior secured basis and all other obligations of the Company under this Indenture.
Notwithstanding the foregoing, in the event (a) a Subsidiary Guarantor is released and discharged
in full from all of its obligations under its Guarantees of (1) the Credit Agreement and (2) all
other Indebtedness of the Company and its Restricted Subsidiaries and (b) such Subsidiary Guarantor
has not Incurred any Indebtedness in reliance on its status as a Subsidiary Guarantor under
Section 3.3 or such Subsidiary Guarantor’s obligations under such Indebtedness are
satisfied in full and discharged or are otherwise permitted to be Incurred by a Restricted
Subsidiary (other than a Subsidiary Guarantor) under Section 3.3(b), then the Subsidiary
Guarantee of such Subsidiary Guarantor shall be automatically and unconditionally released and
discharged.

          The obligations of each Subsidiary Guarantor shall be limited to the maximum amount as shall,
after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor
(including, without limitation, any Guarantees under the Credit Agreement) and after giving effect
to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in
respect of the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee or
pursuant to its contribution obligations under this Indenture, result in the obligations of such
Subsidiary Guarantor under its Subsidiary Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under federal or state law.

          Each Subsidiary Guarantee shall only be released in accordance with Article XI.

          Each Restricted Subsidiary that becomes a Subsidiary Guarantor on or after the Issue Date
shall also become a party to the applicable Collateral Documents and the Intercreditor Agreement
and shall as promptly as practicable execute and deliver such security instruments, financing
statements, mortgages, deeds of trust (in substantially the same form as those executed and
delivered with respect to the Collateral) and certificates and opinions of counsel (to the extent,
and substantially in the form, delivered on the Issue Date (but in no greater scope)) as may be
necessary to vest in the Collateral Agent a perfected second priority
security interest (subject to Permitted Liens) in properties and

 

67

 assets that constitute Collateral as security for the Securities
or the Subsidiary Guarantees and as may be necessary to have such property or asset added to the
applicable Collateral as required under the Collateral Documents and this Indenture, and thereupon
all provisions of this Indenture relating to the Collateral shall be deemed to relate to such
properties and assets to the same extent and with the same force and effect; provided, however,
that if granting such second priority security interest in any such property or asset requires the
consent of a third party, the Company shall use commercially reasonable efforts to obtain such consent;
provided, further, however, that if after the use of commercially
reasonable efforts, such third party does not consent to the second priority security interest on
an asset or property that would constitute as immaterial portion of the Collateral, Subsidiary
Guarantor shall not be required to provide such security interest.

          SECTION 3.13.    Limitation on Lines of Business. The Company shall not, and shall not permit any Restricted Subsidiary to, engage in any
business other than a Related Business.

          SECTION 3.14.    Maintenance of Office or Agency.

          The Company shall maintain an office or agency where the Securities may be presented or
surrendered for payment, where, if applicable, the Securities may be surrendered for registration
of transfer or exchange and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. The corporate trust office of the Trustee shall be
such office or agency of the Company, unless the Company shall designate and maintain some other
office or agency for one or more of such purposes. The Company shall give prompt written notice to
the Trustee of any change in the location of any such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made at the
corporate trust office of the Trustee, and the Company hereby appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands.

          The Company may also from time to time designate one or more other offices or agencies (in or
outside of The City of New York) where the Securities may be presented or surrendered for any or
all such purposes and may from time to time rescind any such designation. The Company shall give
prompt written notice to the Trustee of any such designation or rescission and any change in the
location of any such other office or agency.

          SECTION 3.15.    Corporate Existence.

          Subject to Article IV and Section 11.2, the Company will do or cause to be
done all things necessary to preserve and keep in full force and effect its corporate existence and
that of each Restricted Subsidiary and the corporate rights (charter and statutory) licenses and
franchises of the Company and each Restricted Subsidiary; provided, however, that the Company shall
not be required to preserve any such existence (except the Company), right, license or franchise if
the Board of Directors of the Company shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and each of
its Restricted Subsidiaries, taken as a whole, and that the loss

 

68

thereof is not, and will not be, disadvantageous in any
material respect to the Holders; and provided, further, the Company may merge in accordance with
Section 4.1 and Section 11.2.

          SECTION 3.16.    [Reserved].

          SECTION 3.17.    Compliance Certificate. The Company shall deliver to the Trustee within 120 days after the end of each fiscal year
of the Company an Officers’ Certificate stating that in the course of the performance by the
signers of their duties as Officers of the Company they would normally have knowledge of any
Default or Event of Default and whether or not the signers know of any Default or Event of Default
that occurred during such previous fiscal year. If they do, the certificate shall describe the
Default or Event of Default, its status and what action the Company is taking or proposes to take
with respect thereto. The Company also shall comply with TIA § 314(a)(4).

          SECTION 3.18.    Further Instruments and Acts. Upon request of the Trustee, the Company will execute and deliver such further instruments
and do such further acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

          SECTION 3.19.    Payments for Consent

          Neither the Company nor any of its Restricted Subsidiaries will, directly or indirectly, pay
or cause to be paid any consideration, whether by way of interest, fees or otherwise, to any Holder
of any Securities for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Securities unless such consideration is offered to be paid
or is paid to all Holders of the Securities that consent, waive or agree to amend in the time frame
set forth in the solicitation documents relating to such consent, waiver or amendment.

          SECTION 3.20.    Statement by Officers as to Default

          The Company shall deliver to the Trustee, as soon as possible and in any event within 30 days
after the Company becomes aware of the occurrence of any Event of Default or an event which, with
notice or the lapse of time or both, would constitute an Event of Default, an Officers’ Certificate
setting forth the details of such Event of Default or Default, its status and the actions which the
Company is taking or proposes to take with respect thereto.

ARTICLE IV

Successor Company 

          SECTION 4.1.    Merger and Consolidation. The Company shall not consolidate with or merge with or into, or convey, transfer or lease
all or substantially all its assets to, any Person, unless:

 

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     (1)   the resulting, surviving or transferee Person (the “Successor Company”)
will be a corporation or limited liability company organized or formed, as the case may be,
and existing under the laws of the United States of America, any State of the United States
or the District of Columbia and the Successor Company (if not the Company) will expressly
assume, by supplemental indenture or other documentation or instruments, executed and
delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the
Company under the Securities, this Indenture, the Collateral Documents (as applicable) and
the Intercreditor Agreement and shall cause such amendments, supplements or other
instruments to be executed, filed and recorded in such jurisdictions as may be required by
applicable law to preserve and protect the Lien on the Collateral owned by or transferred to
the Successor Company, together with such financing statements or comparable documents as
may be required to perfect any security interests in such Collateral which may be perfected
by the filing of a financing statement or a similar document under the Uniform Commercial
Code or other similar statute or regulation of the relevant states or jurisdictions;

     (2)   immediately after giving effect to such transaction (and treating any Indebtedness
that becomes an obligation of the Successor Company or any Subsidiary of the Successor
Company as a result of such transaction as having been Incurred by the Successor Company or
such Subsidiary at the time of such transaction), no Default or Event of Default shall have
occurred and be continuing;

     (3)   immediately after giving effect to such transaction, the Successor Company would be
able to Incur at least an additional $1.00 of Indebtedness pursuant to Section
3.3(a);

     (4)   unless the Company is the Successor Company, each Subsidiary Guarantor (unless it
is the other party to the transactions above, in which case clause (1) and Section 11.2
shall apply) shall have by supplemental indenture confirmed that its Subsidiary Guarantee
shall apply to such Person’s obligations in respect of this Indenture and the Securities and
its obligations under the Registration Rights Agreement, Collateral Documents and the
Intercreditor Agreement shall continue to be in effect and shall cause such amendments,
supplements or other instruments to be executed, filed, and recorded in such jurisdictions
as may be required by applicable law to preserve and protect the Lien on the Collateral
owned by such Subsidiary Guarantor, together with such financing statements or comparable
documents as may be required to perfect any security interests in such Collateral which may
be perfected by the filing of a financing statement or a similar document under the Uniform
Commercial Code or other similar statute or regulation of the relevant states or
jurisdictions; and

     (5)   the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture (if any) comply with this Indenture and, if any supplement to any
Collateral Document is required in connection with such transaction, such supplement shall
comply with the applicable provisions of this Indenture.

 

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          For purposes of this Section 4.1, the sale, lease, conveyance, assignment, transfer or
other disposition of all or substantially all of the properties and assets of one or more
Subsidiaries of the Company, which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and assets of the Company
on a consolidated basis, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.

          The predecessor Company (if not the Successor Company) shall be released from its obligations
under, and the Successor Company will succeed to, be substituted for, and may exercise every right
and power of the Company under this Indenture, the Collateral Documents (as applicable) and the
Intercreditor Agreement, but, in the case of a lease of all or substantially all of its assets, the
predecessor Company shall not be released from the obligation to pay the principal of and interest
on the Securities and a Subsidiary Guarantor will not be released from its obligations under its
Subsidiary Guarantee. The Successor Company shall cause such amendments, supplements or other
instruments to be executed, filed and recorded in such jurisdictions as may be required by
applicable law to preserve and protect the Lien on the Collateral owned by or transferred to the
Successor Company, together with such financing statements or comparable documents as may be
required to perfect any security interests in such Collateral which may be perfected by the filing
of a financing statement or a similar document under the Uniform Commercial Code or other similar
statute or regulation of the relevant states or jurisdictions, provided that in the case of a lease
of all or substantially all its assets, the predecessor Company will not be released from the
obligation to pay the principal of and interest on the Securities.

          The Successor Company will succeed to, and be substituted for, and may exercise every right
and power of, the Company under the Indenture, the Collateral Documents (as applicable) and the
Intercreditor Agreement, but the predecessor Company in the case of a conveyance, transfer or lease
of all or substantially all its assets will not be released from the obligation to pay the
principal of and interest on the Securities. Solely for the purpose of computing amounts described
in sections 3.5(c)(i), (c)(ii), (c)(iii) and (c)(iv), the Successor Company shall only be deemed to
have succeeded and be substituted for the Company with respect to periods subsequent to the
effective time of such merger, consolidation, combination or transfer of assets.

          Notwithstanding the preceding clause (3), (x) any Restricted Subsidiary may consolidate with,
merge into or transfer all or part of its properties and assets to the Company and (y) the Company
may merge with an Affiliate incorporated solely for the purpose of reincorporating the Company in
another jurisdiction to realize tax benefits; provided that, in the case of a Restricted Subsidiary
that merges into the Company, the Company will not be required to comply with the preceding clause
(5).

 

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ARTICLE V

Redemption of Securities

          SECTION 5.1.    Optional Redemption. The Securities may or shall, as the case may be, be redeemed, as a whole or from time to
time in part, subject to the conditions and at the Redemption Prices specified in the form of
Securities set forth in Exhibits A and B hereto, which are hereby incorporated by reference
and made a part of this Indenture, together with accrued and unpaid interest to the Redemption
Date.

          SECTION 5.2.    Applicability of Article. Redemption of Securities at the election of the Company or otherwise, as permitted or
required by any provision of this Indenture, shall be made in accordance with such provision and
this Article.

          SECTION 5.3.    Election to Redeem; Notice to Trustee. The election of the Company to redeem any Securities pursuant to Section 5.1 shall
be evidenced by a Board Resolution. In case of any redemption at the election of the Company, the
Company shall, upon not less than 30 and not more than 60 days prior to the Redemption Date fixed
by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee
of such Redemption Date and of the principal amount of Securities to be redeemed and shall deliver
to the Trustee such documentation and records as shall enable the Trustee to select the Securities
to be redeemed pursuant to Section 5.4.

          SECTION 5.4.    Selection by Trustee of Securities to Be Redeemed. If less than all the Securities are to be redeemed at any time pursuant to an optional
redemption, the particular Securities to be redeemed shall be selected not more than 90 days prior
to the Redemption Date by the Trustee, from the outstanding Securities not previously called for
redemption, in compliance with the requirements of the principal securities exchange, if any, on
which such Securities are listed, or, if such Securities are not so listed, on a pro rata basis, by
lot or by such other method as the Trustee in its sole discretion shall deem fair and appropriate
(and in such manner as complies with applicable legal requirements) and which may provide for the
selection for redemption of portions of the principal of the Securities; provided, however, that no
such partial redemption shall reduce the portion of the principal amount of a Security not redeemed
to less than $1,000.

          The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to redemption of Securities shall relate, in the case of any Security redeemed or to be
redeemed only in part, to the portion of the principal amount of such Security which has been or is
to be redeemed.

 

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          SECTION 5.5.    Notice of Redemption. Notice of redemption shall be given in the manner provided for in Section 13.2 not
less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed. The Trustee shall give notice of redemption in the Company’s name
and at the Company’s expense; provided, however, that the Company shall deliver to the Trustee, at
least 45 days prior to the Redemption Date, an Officers’ Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice as provided in the
following items.

          All notices of redemption shall state:

     (1)   the Redemption Date,

     (2)   the Redemption Price and the amount of accrued interest to the Redemption Date
payable as provided in Section 5.7, if any,

     (3)   if less than all outstanding Securities are to be redeemed, the identification of
the particular Securities (or portion thereof) to be redeemed, as well as the aggregate
principal amount of Securities to be redeemed and the aggregate principal amount of
Securities to be Outstanding after such partial redemption,

     (4)   in case any Security is to be redeemed in part only, the notice which relates to
such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the Holder will receive, without charge, a new Security or Securities of
authorized denominations for the principal amount thereof remaining unredeemed,

     (5)   that on the Redemption Date the Redemption Price (and accrued interest, if any, to
the Redemption Date payable as provided in Section 5.7) will become due and payable
upon each such Security, or the portion thereof, to be redeemed, and, unless the Company
defaults in making the redemption payment, that interest on Securities called for redemption
(or the portion thereof) will cease to accrue on and after said date,

     (6)   the place or places where such Securities are to be surrendered for payment of the
Redemption Price and accrued interest, if any,

     (7)   the name and address of the Paying Agent,

     (8)   that Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price,

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

     (10)   the paragraph of the Securities pursuant to which the Securities are to be
redeemed.

          SECTION 5.6.    Deposit of Redemption Price. Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust
as provided in Section 2.4) an amount
of money sufficient to pay the Redemption Price of, and accrued interest on, all the Securities which are to be redeemed on that date.

 

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          SECTION 5.7.    Securities Payable on Redemption Date. Notice of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price therein specified
(together with accrued interest, if any, to the Redemption Date), and from and after such date
(unless the Company shall default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security for redemption in
accordance with said notice, such Security shall be paid by the Company at the Redemption Price,
together with accrued interest, if any, to the Redemption Date (subject to the rights of Holders of
record on the relevant record date to receive interest due on the relevant interest payment date).

          If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate borne by the Securities.

          SECTION 5.8.    Securities Redeemed in Part.

          Any Security which is to be redeemed only in part (pursuant to the provisions of this Article)
shall be surrendered at the office or agency of the Company maintained for such purpose pursuant to
Section 3.14 (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Company shall
execute, and the Trustee shall authenticate and deliver to the Holder of such Security at the
expense of the Company, a new Security or Securities, of any authorized denomination as requested
by such Holder, in an aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered, provided, that each such new Security will
be in a principal amount of $2,000 or integral multiples of $1,000 in excess thereof.

ARTICLE VI

Defaults and Remedies

          SECTION 6.1.    Events of Default. An “Event of Default” occurs if:

     (1)   the Company defaults in any payment of interest or additional interest (as required
by the Registration Rights Agreement) on any Security when due, continued for 30 days,
whether or not such payment is otherwise prohibited by this Indenture;

     (2)   the Company defaults in the payment of principal of or premium, if any, on any
Security when due at its Stated Maturity, upon optional redemption, upon required
repurchase, upon declaration or otherwise, whether or not such payment shall be otherwise
prohibited by this Indenture;

 

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     (3)   the Company or any Subsidiary Guarantor fails to comply with Article IV or
Section 11.2 of this Indenture;

     (4)   the Company fails to comply with Section 3.2, 3.3, 3.5,
3.6, 3.7, 3.8, 3.9, 3.10, 3.11,
3.12, 3.13, 3.14, 3.15, 3.17, 3.18 and
3.19 (in each case other than a failure to repurchase Securities when required
pursuant to Sections 3.7 or 3.9 of this Indenture, which failure shall
constitute an Event of Default under Section 6.1(2) and other than a failure to
comply with Article IV or Section 11.2 which failure shall constitute an
Event of Default under Section 6.1(3)) and such failure continues for 30 days after
the notice specified below;

     (5)   the Company or any Subsidiary Guarantor defaults in the performance of or a breach
by the Company of any other covenant or agreement in this Indenture, the Collateral
Documents, the Intercreditor Agreement or under the Securities (other than those referred to
in (1), (2), (3) or (4) above) and such default continues for 60 days after the notice
specified below;

     (6)   there is a default under any mortgage, indenture or instrument under which there
may be issued or by which there may be secured or evidenced any Indebtedness for money
borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is
guaranteed by the Company or any of its Restricted Subsidiaries), other than Indebtedness
owed to the Company or a Restricted Subsidiary, whether such Indebtedness or guarantee now
exists, or is created after the date of this Indenture, which default (a) is caused by a
failure to pay principal of, or interest or premium, if any, on such Indebtedness prior to
the expiration of the grace period provided in such Indebtedness (“Payment Default”)
or (b) results in the acceleration of such Indebtedness prior to its maturity (the
“cross acceleration provision”) and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness under which
there has been a Payment Default or the maturity of which has been so accelerated,
aggregates $15.0 million or more or its foreign currency equivalent at the time;

     (7)   the Company or a Significant Subsidiary or a group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for the Company
and its Restricted Subsidiaries), would constitute a Significant Subsidiary, pursuant to or
within the meaning of any Bankruptcy Law (as defined below):

     (A)   commences a voluntary case;

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

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

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

 

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

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

     (A)   is for relief against the Company or any Significant Subsidiary or
any group of Restricted Subsidiaries that, taken together (as of the latest
audited consolidated financial statements for the Company and its Restricted
Subsidiaries) would constitute a Significant Subsidiary in an involuntary
case;

     (B)   appoints a Custodian of the Company or any Significant Subsidiary
or any group of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries) would constitute a Significant Subsidiary or for
any substantial part of its property; or

     (C)   orders the winding up or liquidation of the Company or any
Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together (as of the latest audited consolidated financial statements for the
Company and its Restricted Subsidiaries) would constitute a Significant
Subsidiary;

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

     (9)   the Company or any Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for the Company
and its Restricted Subsidiaries) would constitute a Significant Subsidiary fails to pay
final, non-appealable judgments aggregating in excess of $15.0 million or its foreign
currency equivalent at the time (net of any amounts that a reputable and creditworthy
insurance company has acknowledged liability for in writing), which judgments are not paid,
discharged or stayed for a period of 60 days;

     (10)   any Subsidiary Guarantee, Collateral Document or obligation under the
Intercreditor Agreement of a Subsidiary Guarantor ceases to be in full force and effect
(except as contemplated by the terms hereof and under by the terms of the Subsidiary
Guarantees) or is declared null and void in a judicial proceeding or any Subsidiary
Guarantor denies or disaffirms its obligations under this Indenture, its Subsidiary
Guarantee, any Collateral Document or the Intercreditor Agreement and the Company fails to
cause such Subsidiary Guarantor to rescind such denials or disaffirmations within 30 days;
or

     (11)   with respect to any Collateral having a fair market value in excess of $5.0
million, individually or in the aggregate, (A) the failure of the security interest with
respect to such Collateral under the Collateral Documents, at any time, to be in full force
and effect for any

 

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reason other than in accordance with their terms and the terms of this
Indenture or the Intercreditor Agreement and other than the satisfaction in full of all
obligations under the Indenture and discharge of this Indenture if such Default continues
for 60 days or (B) the assertion by the Company or any Subsidiary Guarantor, in any pleading
in any court of competent jurisdiction, that any such security interest is invalid or
unenforceable.

          The foregoing shall constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is 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.

          The term “Bankruptcy Law” means Title 11, United States Code, or any similar
Federal or state law for the relief of debtors. The term “Custodian” means any receiver,
trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

          However, a Default under clause (4), (5) or 11(A) or (B) of this Section 6.1 shall not
constitute an Event of Default until the Trustee or the Holders of at least 25% in principal amount
of the outstanding Securities notify the Company of the Default and the Company does not cure such
Default within the time specified in said clause (4), (5) or 11(A) or (B) after receipt of such
notice. Such notice must specify the Default, demand that it be remedied and state that such
notice is a “Notice of Default”.

          The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written
notice in the form of an Officers’ Certificate of any Default or Event of Default under clauses
(3), (4), (5), (6), (7), (8), (9), (10) or (11) of this Section 6.1, which such notice
shall contain the status thereof and a description of the action being taken or proposed to be
taken by the Company in respect thereof.

          SECTION 6.2.    Acceleration. If an Event of Default (other than an Event of Default specified in Section 6.1(7)
or (8)) occurs and is continuing, the Trustee by notice to the Company, or the Holders of
at least 25% in principal amount of the outstanding Securities by notice to the Company and the
Trustee, may, and the Trustee at the request of such Holders shall, declare the principal of,
premium, if any, and accrued and unpaid interest, if any, on all the Securities to be due and
payable. Upon such a declaration, such principal, premium and accrued and unpaid interest shall,
subject to Section 10.4 of this Indenture, be immediately due and payable. In the event of
a declaration of acceleration of the Securities because an Event of Default set forth in
Section 6.1(6) above has occurred and is continuing, such declaration of acceleration shall
be automatically rescinded and annulled if the event of default or payment default triggering such
Event of Default pursuant to Section 6.1(6) shall be remedied or cured by the Company or a
Restricted Subsidiary or waived by the Holders of the relevant Indebtedness within 20 days after
the declaration of acceleration with respect thereto and if (1) the annulment of the acceleration
of the Securities would not conflict with any judgment or decree of a court of competent
jurisdiction and (2) all existing Events of Default, other than the nonpayment of principal,
premium or interest on the Securities that has become due solely because of such acceleration, have
been cured or waived.

 

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If an Event of Default specified in Section 6.1(7) or (8) with respect to the Company occurs and is continuing, the principal of, premium, if any, and
accrued and unpaid interest on all the Securities will become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holders. No such rescission
shall affect any subsequent Default or Event of Default or impair any right consequent thereto.

          SECTION 6.3.    Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities, this Indenture, the Subsidiary Guarantees, the
Collateral Documents or the Intercreditor Agreement.

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

          SECTION 6.4.    Waiver of Past Defaults. The Holders of a majority in principal amount of the outstanding (including without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for, notes) Securities by notice to the Trustee may (a) waive an existing Default or Event of
Default and its consequences except a Default or Event of Default in the payment of the principal
of, or premium, if any, or interest on a Security and (b) rescind any such acceleration with
respect to the Securities and its consequences if (1) rescission would not conflict with any
judgment or decree of a court of competent jurisdiction and (2) all existing Events of Default,
other than the nonpayment of the principal of, premium, if any, and interest on the Securities that
have become due solely by such declaration of acceleration, have been cured or waived. When a
Default or Event of Default is waived, it is deemed cured, but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any consequent right.

          SECTION 6.5.    Control by Majority. The Holders of a majority in principal amount of the then outstanding Securities may direct
the time, method and place of conducting any proceeding for exercising any remedy available to the
Trustee or the Collateral Agent or of exercising any trust or power conferred on the Trustee or the
Collateral Agent. However, the Trustee or the Collateral Agent, as the case may be, may refuse to
follow any direction that conflicts with law or this Indenture, the Securities, the Subsidiary
Guarantees, the Collateral Documents or the Intercreditor Agreement or, subject to Sections
7.1 and 7.2, that the Trustee or the Collateral Agent determines is unduly
prejudicial to the rights of other Securityholders or would involve the Trustee or the
Collateral Agent in personal liability; provided, however, that the Trustee or the Collateral Agent
may take any other action deemed proper by the Trustee or the Collateral Agent that is not
inconsistent with such direction. Prior to taking any action hereunder, the Trustee or the
Collateral Agent shall be entitled to indemnification satisfactory to it in its sole discretion
against all losses and expenses caused by taking or not taking such action.

 

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          SECTION 6.6.    Limitation on Suits. Subject to the provisions of this Indenture relating to the duties of the Trustee or the
Collateral Agent, if an Event of Default occurs and is continuing, the Trustee or the Collateral
Agent will be under no obligation to exercise any of the rights or powers under this Indenture, the
Securities, the Subsidiary Guarantees, the Collateral Documents and the Intercreditor Agreement at
the request or direction of any of the Holders unless such Holders have offered to the Trustee or
the Collateral Agent reasonable indemnity or security against any loss, liability or expense.
Except to enforce the right to receive payment of principal, premium, if any, or interest when due,
no Holder may pursue any remedy with respect to this Indenture or the Securities (subject to the
Intercreditor Agreement) 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 outstanding Securities have
requested the Trustee to pursue the remedy;

     (3)   such Holders have offered the Trustee reasonable security or indemnity against any
loss, liability or expense;

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

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

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

          SECTION 6.7.    Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture (including, without limitation,
Section 6.6), the right of any Holder to receive payment of principal of, premium (if any)
or interest on the Securities held by such Holder, on or after the respective due dates expressed
in the Securities, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such Holder.

          SECTION 6.8.    Collection Suit by Trustee. If an Event of Default specified in Section 6.1(1) or (2) occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount then due and owing (together with interest on any unpaid
interest to the extent lawful) and the amounts provided for in Section 7.7.

          SECTION 6.9.    Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee and the Securityholders allowed in any
judicial proceedings relative to the

 

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Company, its Subsidiaries or their respective creditors or properties and, unless
prohibited by law or applicable regulations, may vote on behalf of the
Holders in any election of a trustee in bankruptcy or other Person performing similar functions,
and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make
payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and
any other amounts due the Trustee under Section 7.7.

          SECTION 6.10.    Priorities. The Trustee shall pay out any money or property received by it from the Collateral Agent,
whether pursuant to the foreclosure or other remedial provisions contained in the Collateral
Documents or the Intercreditor Agreement (including any money or property deposited into one or
more accounts under the control of the Administrative Agent) or otherwise, in the following order:

     FIRST: to the Trustee for amounts due under Section 7.7 and to the Collateral
Agent for fees and expenses incurred under the Collateral Documents or the Intercreditor
Agreement;

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

     THIRD: to the Company or, to the extent the Trustee receives any amount for any
Subsidiary Guarantor, to such Subsidiary Guarantor;

provided, however, that the payments set forth above shall be made subject to the Intercreditor
Agreement.

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

          SECTION 6.11.    Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a suit by the
Trustee, a suit by the Company, a suit by a Holder pursuant to Section 6.7 or a suit by
Holders of more than 10% in outstanding principal amount of the Securities.

 

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ARTICLE VII

Trustee

          SECTION 7.1.    Duties of Trustee. (a)   If an Event of Default has occurred and is continuing, the Trustee or the Collateral
Agent shall exercise the rights and powers vested in it by this Indenture and the Trustee shall use
the same degree of care and skill in their exercise as a prudent Person would exercise or use under
the circumstances in the conduct of such Person’s own affairs.

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

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

     (2)   in the absence of bad faith on its part, the Trustee and Collateral Agent 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 Collateral
Agent and conforming to the requirements of this Indenture, the Securities, the Subsidiary
Guarantees, the Collateral Documents or the Intercreditor Agreement, as applicable.
However, in the case of any such certificates or opinions which by any provisions hereof are
specifically required to be furnished to the Trustee and Collateral Agent, the Trustee and
Collateral Agent shall examine such certificates and opinions to determine whether or not
they conform to the requirements of this Indenture, the Securities, the Subsidiary
Guarantees, the Collateral Documents or the Intercreditor Agreement, as the case may be.

          (c)   The Trustee and Collateral Agent may not be relieved from liability for its own negligent
action, its own negligent failure to act (or grossly negligent action or grossly negligent failure
to act in the case of the Collateral Agent) or its own willful misconduct, except that:

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

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

     (3)   the Trustee and Collateral Agent shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction received by it pursuant
to Section 6.5.

 

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

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

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

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

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

          (i)   Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

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

          SECTION 7.2.    Rights of Trustee. (a)   Subject to Section 7.1, the Trustee and Collateral Agent may rely on any
document believed by it to be genuine and to have been signed or presented by the proper person.
The Trustee and Collateral Agent need not investigate any fact or matter stated in the document.

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

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

 

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

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

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

          (g)   Any request or direction of the Company mentioned herein shall be sufficiently evidenced
by Company Order, as the case may be.

          (h)   The Trustee and Collateral Agent shall not be liable for the actions or omissions of the
Company, Subsidiary Guarantors, or any other Person and without limiting the foregoing, the Trustee
and Collateral Agent shall not be under any obligation to monitor, evaluate or verify compliance by
the Company, Subsidiary Guarantor with the terms hereof, the Intercreditor Agreement or the
Collateral Documents, or to verify or independently determine the accuracy of information received
by the Trustee or Collateral Agent from the Company (or from any selling institution, agent bank,
trustee or similar source) with respect to the Collateral.

          (i)   Any permissive right of the Trustee and Collateral Agent to take or refrain from taking
actions enumerated in this Indenture, the Intercreditor Agreement or the Collateral Documents shall
not be construed as a duty.

          (j)   To the extent permitted by applicable law, the Trustee and Collateral Agent shall not be
required to give any bond or surety in respect of the execution of this Indenture or otherwise.

          (k)   The Trustee and Collateral Agent shall not be deemed to have notice or knowledge of any
matter unless a Trust Officer has actual knowledge thereof or unless written notice thereof is
received by the Trustee and Collateral Agent at the corporate trust office and such notice
references the Securities generally, the Company or this Indenture. Whenever reference is made in this Indenture to a Default or an Event of Default such reference shall,
insofar as determining any liability on the part of the Trustee is concerned, be construed to refer
only to a Default or an Event of Default of which the Trustee is deemed to have knowledge in
accordance with this paragraph.

          (l)   The Trustee and Collateral Agent shall not be responsible for delays or failures in
performance resulting from acts beyond its control.

 

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          (m)   To help fight the funding of terrorism and money laundering activities, the Trustee and
Collateral Agent will obtain, verify, and record information that identifies individuals or
entities that establish a relationship or open an account with the Trustee and Collateral Agent.
The Trustee and Collateral Agent will ask for the name, address, tax identification number and
other information that will allow the Trustee and Collateral Agent to identify the individual or
entity who is establishing the relationship or opening the account. The Trustee and Collateral
Agent may also ask for formation documents such as articles of incorporation, an offering
memorandum, or other identifying documents to be provided.

          (n)   To the extent not inconsistent herewith, the rights, protections, immunities and
indemnities afforded to the Trustee pursuant to this Indenture also shall be afforded to the
Collateral Agent.

          (o)   In no event will the Trustee or Collateral Agent be liable to any Person for any special,
punitive, indirect, consequential or incidental loss or damage of any kind whatsoever (including
but not limited to lost profits), even if the Trustee or Collateral Agent has been advised of the
likelihood of such loss or damage.

          SECTION 7.3.    Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company, the Subsidiary Guarantors or their Affiliates
with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the Trustee must comply
with Sections 7.10 and 7.11.

          SECTION 7.4.    Trustee’s Disclaimer. The Trustee and Collateral Agent shall not be responsible for and makes no representation
as to the validity or adequacy of this Indenture, the Securities, the Subsidiary Guarantees, the
Collateral Documents or the Intercreditor Agreement, it shall not be accountable for the Company’s
use of the Securities or the proceeds from the Securities, and it shall not be responsible for any
statement of the Company in this Indenture or in any document issued in connection with the sale of
the Securities or in the Securities other than the Trustee’s certificate of authentication.

          SECTION 7.5.    Notice of Defaults. If a Default or Event of Default occurs and is continuing and if a Trust Officer has actual
knowledge thereof, the Trustee shall mail to each Securityholder notice of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or Event
of Default in payment of principal of, premium (if any), or interest on any Security (including
payments pursuant to the optional redemption or required repurchase provisions of such Security, if
any), the Trustee may withhold the notice if and so long as its board of directors, a committee of
its board of directors or a committee of its Trust Officers in good faith determines that
withholding the notice is in the interests of Securityholders.

 

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          SECTION 7.6.    Reports by Trustee to Holders. As promptly as practicable after each May 15 beginning with the May 15 following the date
of this Indenture, and in any event prior to July 15 in each year, the Trustee shall mail to each
Securityholder a brief report dated as of such May 15 that complies with TIA § 313(a). The Trustee also shall comply with TIA § 313(b). The Trustee shall also transmit by mail all reports required
by TIA § 313(c).

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

          SECTION 7.7.    Compensation and Indemnity. The Company and the Subsidiary Guarantors shall pay to the Trustee from time to time
reasonable compensation for its acceptance of this Indenture and services hereunder. The Company
and the Subsidiary Guarantors shall pay to the Collateral Agent from time to time reasonable
compensation for its services hereunder and under the Collateral Documents. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee and Collateral Agent upon request for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, costs of preparing
and reviewing reports, certificates and other documents, costs of preparation and mailing of
notices to Securityholders and reasonable costs of counsel retained by the Trustee and Collateral
Agent in connection with the delivery of an Opinion of Counsel or otherwise, in addition to the
compensation for its services. Such expenses shall include the reasonable compensation and
expenses, disbursements and advances of the Trustee’s and Collateral Agent’s agents, counsel,
accountants and experts. The Company shall indemnify the Collateral Agent, any predecessor
Collateral Agent, the Trustee or any predecessor Trustee in each of its capacities hereunder and
each of their officers, directors, employers, counsel and agents against any and all loss,
liability or expense (including, but not limited to, reasonable attorneys’ fees and expenses)
incurred by it without negligence (or gross negligence in the case of the Collateral Agent) or bad
faith on its part in connection with the administration of this trust and the performance of its
duties hereunder and under the Securities, the Subsidiary Guarantees, the Collateral Documents and
the Intercreditor Agreements, including the costs and expenses of enforcing this Indenture
(including this Section 7.7), the Securities, the Subsidiary Guarantees, the Collateral
Documents and the Intercreditor Agreement and of defending itself against any claims (whether
asserted by any Securityholder, the Company or otherwise). The Collateral Agent and the Trustee
shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the
Collateral Agent and the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder. The Company shall defend the claim and the Collateral Agent and the
Trustee may have separate counsel and the Company shall pay the fees and expenses of such counsel
provided that the Company shall not be required to pay such fees and expenses if it assumes the
Collateral Agent’s or Trustee’s defense, as the case may be, and, in the reasonable judgment of
outside counsel to the Trustee or the Collateral Agent, as the case may be, there is no conflict of
interest between the Company and the Trustee or Collateral Agent, as the case may be, in connection
with such defense. The Company need not reimburse any expense or indemnify against any loss,
liability or expense incurred by the Collateral Agent and the Trustee through their own willful
misconduct, negligence (or gross negligence in the case of the Collateral Agent) or bad faith.

 

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          To secure the Company’s payment obligations hereunder, the Collateral Agent and the Trustee
shall have a lien prior to the Securities on all money or property held or collected by the Trustee
other than money or property held in trust to pay principal of and interest on particular
Securities. The right of the Collateral Agent and the Trustee to receive payment of any amounts
due under this Section 7.7 shall not be subordinate to any other liability or Indebtedness
of the Company.

          The Company’s payment obligations pursuant to this Section and any lien arising hereunder
shall survive the discharge of this Indenture and the resignation or removal of the Trustee. When
the Trustee incurs expenses after the occurrence of a Default specified in Section 6.1(7)
or (8) with respect to the Company, the expenses are intended to constitute expenses of
administration under any Bankruptcy Law.

          SECTION 7.8.    Replacement of Trustee. The Trustee may resign at any time by so notifying the Company. The Holders of a majority
in principal amount of the Securities may remove the Trustee by so notifying the Company and the
Trustee in writing and may appoint a successor Trustee. The Company shall remove the Trustee if:

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

     (2)   the Trustee is adjudged bankrupt or insolvent;

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

     (4)   the Trustee otherwise becomes incapable of acting as trustee hereunder.

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

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers
and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its
succession to Securityholders. The retiring Trustee shall promptly transfer all property held by
it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.7.

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

 

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

          Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s
obligations under Section 7.7 shall continue for the benefit of the retiring Trustee.

          SECTION 7.9.    Successor Trustee by Merger. If the Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any further act shall be
the successor Trustee.

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

          SECTION 7.10.    Eligibility; Disqualification. The Trustee shall at all times satisfy the requirements of TIA § 310(a). The Trustee shall
have a combined capital and surplus of at least $100 million as set forth in its most recent
published annual report of condition. The Trustee shall comply with TIA § 310(b); provided,
however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
indentures under which other securities or certificates of interest or participation in other
securities of the Company are outstanding if the requirements for such exclusion set forth in TIA §
310(b)(1) are met.

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

          SECTION 7.12.    Limitation on Duty of Trustee and Collateral Agent in Respect of Collateral;
Indemnification. (a)   Beyond the exercise of reasonable care in the custody thereof, neither the Trustee nor
the Collateral Agent shall have any duty as to any Collateral in their possession or control or in
the possession or control of any agent or bailee or any income thereon or as to preservation of
rights against prior parties or any other rights pertaining thereto and neither the Trustee nor the
Collateral Agent shall be responsible for filing any financing or continuation statements or
recording any documents or instruments in any public office at any time or times or otherwise
perfecting or maintaining the perfection of any security interest in the Collateral. The Trustee
and the Collateral Agent shall be deemed to have exercised reasonable care in the custody of the
Collateral in their possession if the Collateral is accorded treatment substantially equal to that
which they accord their own property and shall not be liable or
responsible for any loss or diminution in the value of any of the Collateral, by reason of the act or omission of any carrier,
forwarding agency or other agent or bailee selected by the Trustee or the Collateral Agent in good
faith.

 

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          (b)   Neither the Trustee nor the Collateral Agent shall have any duty to ascertain or inquire
as to the performance or observance of any of the terms of this Indenture, the Securities, the
Subsidiary Guarantees, the Collateral Documents or the Intercreditor Agreement by the Company, the
Subsidiary Guarantors, the Administrative Agent or any other Person.

ARTICLE VIII

Discharge of Indenture; Defeasance

          SECTION 8.1.    Discharge of Liability on Securities; Defeasance. (a)   Subject to Section 8.1(c), when (i)(x) the Company delivers to the Trustee all
outstanding Securities (other than Securities replaced pursuant to Section 2.9) for
cancellation or (y) all outstanding Securities not theretofore delivered for cancellation have
become due and payable, whether at maturity or upon redemption or will become due and payable
within one year or are to be called for redemption within one year under arrangements satisfactory
to the Trustee for the giving of notice of redemption by the Trustee in the name and at the expense
of the Company and the Company or any Subsidiary Guarantor irrevocably deposits or causes to be
deposited with the Trustee as trust funds in trust solely for the benefit of the Holders money in
U.S. dollars, non-callable U.S. Government Obligations, or a combination thereof, in such amounts
as shall be sufficient without consideration of any reinvestment of interest to pay and discharge
the entire indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation for principal, premium, if any, and accrued interest to the date of maturity or
redemption, (ii) no Default or Event of Default 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 Credit Agreement or any other material
instrument (other than this Indenture) to which the Company or any Subsidiary Guarantor is a
party or by which the Company or any Subsidiary Guarantor is bound; (iii) the Company or any
Subsidiary Guarantor has paid or caused to be paid all sums payable to the Trustee under this
Indenture and the Securities; and (iv) the Company has delivered irrevocable instructions to the
Trustee under this Indenture to apply the deposited money toward the payment of such Securities at
maturity or the Redemption Date, as the case may be, then the Trustee shall acknowledge
satisfaction and discharge of this Indenture and release of all Liens on the Collateral with
respect to the Securities on demand of the Company (accompanied by an Officers’ Certificate and an
Opinion of Counsel stating that all conditions precedent specified herein relating to the
satisfaction and discharge of this Indenture have been complied with) and at the cost and expense
of the Company.

          (b)   Subject to Sections 8.1(c) and 8.2, the Company at its option and at any
time may terminate (i) all the obligations of the Company and any Subsidiary Guarantor under the
Securities, this Indenture, the Collateral Documents and the Intercreditor Agreement, and cause the
release of all Liens on the Collateral granted under the Collateral Documents (“legal
defeasance option”) or (ii) the obligations of the Company and any Subsidiary Guarantor under
Sections 3.2, 3.3, 3.5, 3.6, 3.7, 3.8, 3.9,
3.10, 3.11, 3.12, 3.13, 3.19, and 4.1(3) and the
Company and the

 

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 Subsidiary Guarantors 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 provision, whether
directly or indirectly, by reason of any reference elsewhere herein to any such covenant or
provision 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 with such covenants or provisions shall not
constitute a Default or an Event of Default under Section 6.1(3) and 6.1(4) and the
operation of Sections 6.1(6), 6.1(7) (but only with respect to a Significant
Subsidiary), 6.1(8) (but only with respect to a Significant Subsidiary), 6.1(9) and
6.1(10), and the events specified in such Sections shall no longer constitute an Event of
Default (clauses (ii) being referred to as the “covenant defeasance option”), but except as
specified above, the remainder of this Indenture, the Securities, the Collateral Documents and the
Intercreditor Agreement shall be unaffected thereby. The Company may exercise its legal defeasance
option notwithstanding its prior exercise of its covenant defeasance option. If the Company
exercises its legal defeasance option or covenant defeasance option, the Subsidiary Guarantees in
effect at such time shall terminate and the Liens on Collateral shall terminate and shall be
released with respect to the Securities.

          If the Company exercises its legal defeasance option, payment of the Securities may not be
accelerated because of an Event of Default. If the Company exercises its covenant defeasance
option, payment of the Securities may not be accelerated because of an Event of Default specified
in Sections 6.1(4), 6.1(5), 6.1(6), 6.1(7) (but only with respect to a
Significant Subsidiary), 6.1(8) (but only with respect to a Significant Subsidiary),
6.1(9), 6.1(10) or 6.1(11) or because of the failure of the Company to
comply with Section 4.1(3).

          Upon satisfaction of the conditions set forth herein and upon request of the Company, the
Trustee shall acknowledge in writing the discharge of those obligations that the Company
terminates.

          (c)   Notwithstanding the provisions of Sections 8.1(a) and (b), the Company’s
obligations in Sections 2.3, 2.4, 2.5, 2.6, 2.7,
2.9, 2.10, 2.11, 2.12, 3.1, 3.14, 3.15, 3.17, 3.18, 6.7, 7.7, 7.8, and in this Article
VIII shall survive until the Securities have been paid in full. Thereafter, the Company’s
obligations in Sections 7.7, 8.4 and 8.5 shall survive.

          SECTION 8.2.    Conditions to Defeasance. The Company may exercise its legal defeasance option or its covenant defeasance option only
if:

     (1)   the Company irrevocably deposits in trust with the Trustee (i) for the benefit of
the Holders money in U.S. dollars or U.S. Government Obligations or a combination thereof
for the payment of principal of and interest on the Securities to maturity or redemption, as
the case may be and (ii) all accrued and unpaid amounts owing to the Trustee and the
Collateral Agent;

     (2)   the Company delivers to the Trustee a certificate from a nationally recognized firm
of independent accountants expressing their opinion that the payments of principal and
interest when due and without reinvestment on the deposited U.S. Government Obligations plus
any deposited money without investment will provide cash
at such times and in such amounts as will be sufficient to pay principal and interest when due on all the Securities to maturity;

 

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     (3)   no Default or Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default with respect to this Indenture
resulting from the incurrence of Indebtedness, all or a portion of which will be used to
defease the Securities concurrently with such incurrence);

     (4)   such legal defeasance or covenant defeasance shall not result in a breach or
violation of or constitute a default under any material agreement or instrument (other than
this Indenture) to which the Company or any of its Restricted Subsidiaries is a party or by
which the Company or any of its Restricted Subsidiaries is bound;

     (5)   the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that (A) the Securities and (B) assuming no intervening bankruptcy of the Company between
the date of deposit and the 91st day following the deposit and that no Holder of the
Securities is an insider of the Company, after 91st day following the deposit, the trust
funds will not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ right generally;

     (6)   the deposit does not constitute a default under any other agreement binding on the
Company and is not otherwise prohibited by this Indenture;

     (7)   the Company delivers to the Trustee an Opinion of Counsel to the effect that the
trust resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940;

     (8)   in the case of the legal defeasance option, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling, or (ii) since the date of this Indenture there has been a change in the applicable Federal income tax
law, in either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Securityholders will not recognize income, gain or loss for Federal income
tax purposes as a result of such deposit and defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same times as would have been
the case if such deposit and legal defeasance had not occurred;

     (9)   in the case of the covenant defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States to the effect that the
Securityholders will not recognize income, gain or loss for Federal income tax purposes as a
result of such deposit and covenant defeasance and will be subject to Federal income tax on
the same amounts, in the same manner and at the same times as would have been the case if
such deposit and covenant defeasance had not occurred; and

     (10)   the Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance and
discharge of the Securities and this Indenture as contemplated by this Article VIII have been complied with.

 

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          SECTION 8.3.    Application of Trust Money. The Trustee shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to this Article VIII. It shall apply the deposited money and the money from U.S.
Government Obligations through the Paying Agent and in accordance with this Indenture to the
payment of principal of and interest on the Securities.

          SECTION 8.4.    Repayment to Company. The Trustee and the Paying Agent shall promptly turn over to the Company upon request any
excess money or securities held by them upon payment of all the obligations under this Indenture.

          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of principal of or interest on
the Securities that remains unclaimed for two years, and, thereafter, Securityholders entitled to
the money must look to the Company for payment as general creditors.

          SECTION 8.5.    Indemnity for U.S. Government Obligations. The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Obligations or the principal and interest
received on such U.S. Government Obligations.

          SECTION 8.6.    Reinstatement. If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations
in accordance with this Article VIII by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the obligations of the Company and each
Subsidiary Guarantor under this Indenture, the Securities, the Subsidiary Guarantees, the
Collateral Documents and the Intercreditor Agreement shall be revived and reinstated as though no
deposit had occurred pursuant to this Article VIII until such time as the Trustee or Paying
Agent is permitted to apply all such money or U.S. Government Obligations in accordance with this
Article VIII; provided, however, that, if the Company or the Subsidiary Guarantors has made
any payment of interest on or principal of any Securities because of the reinstatement of its
obligations, the Company or the Subsidiary Guarantors, as the case may be, shall be subrogated to
the rights of the Holders of such Securities to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

ARTICLE IX

Amendments

          SECTION 9.1.    Without Consent of Holders. The Company, the Subsidiary Guarantors and the Trustee may amend this Indenture, the
Securities, the Subsidiary Guarantees, the Collateral Documents and the Intercreditor Agreement
without notice to or consent of any Securityholder:

 

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

     (2)   to comply with (i) Article IV in respect of the assumption by a Successor
Company of an obligation of the Company under this Indenture, the Securities, the Collateral
Documents and the Intercreditor Agreement and (ii) Article IV and Article XI
in respect of the assumption by a Person of the obligations of a Subsidiary Guarantor under
its Subsidiary Guarantee, this Indenture, the Collateral Documents and the Intercreditor
Agreement;

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

     (4)   to add Guarantees with respect to the Securities or to release a Subsidiary
Guarantor upon its designation as an Unrestricted Subsidiary; provided, however, that the
designation is in accordance with the applicable provisions of this Indenture;

     (5)   to add additional assets as Collateral to secure the Securities and Subsidiary
Guarantees;

     (6)   to add to the covenants of the Company for the benefit of the Holders or to
surrender any right or power herein conferred upon the Company;

     (7)   to make any change that does not adversely affect the rights of any Securityholder;

     (8)   to comply with any requirements of the SEC in connection with qualifying this
Indenture under the TIA;

     (9)   to provide for the issuance of the Exchange Securities, which will have terms
substantially identical in all respects to the Initial Securities (except that the transfer
restrictions contained in the Initial Securities will be modified or eliminated, as
appropriate), and which will be treated, together with any outstanding Initial Securities,
as a single issue of securities;

     (10)   to release Liens in favor of the Collateral Agent in the Collateral as provided
under Section 10.6 or otherwise in accordance with the terms of this Indenture, Collateral
Documents or the Intercreditor Agreement;

     (11)   provide for the appointment of a successor trustee; provided that the successor
trustee is otherwise qualified and eligible to act as such under the terms of this
Indenture; or

     (12)   conform the text of this Indenture, the Securities or the Subsidiary Guarantees to
any provision of the “Description of notes” section of the Company’s Offering Memorandum,
dated September 23, 2009, relating to the initial offering of
the Securities, to the

 

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 extent that such provision in the “Description of notes” is intended to be a verbatim recitation of
a provision of the Indenture, the Securities or the Subsidiary Guarantees.

          After an amendment under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity of an amendment
under this Section. A consent to any amendment, supplement or waiver under the Indenture by any
Securityholder given in connection with a tender of such Securityholder’s Security shall not be
rendered invalid by such tender.

          Holders shall be deemed to have consented for purposes of the Collateral Documents and the
Intercreditor Agreement to any of the following amendments, waivers and other modifications to the
Collateral Documents and the Intercreditor Agreement:

     (i)   (A)   to add other parties (or any authorized agent thereof or trustee therefor)
holding Pari Passu Lien Indebtedness that is Incurred in compliance with the Credit
Agreement, this Indenture and the Collateral Documents, and (B) to establish that the Liens
on any Collateral securing such Pari Passu Lien Indebtedness shall be pari passu under the
Intercreditor Agreement with the Liens on such Collateral securing the Obligations under
this Indenture and the Securities and junior and subordinated to the Liens on such
Collateral securing any Obligations under the Credit Agreement and other first priority
obligations described under the Intercreditor Agreement, all on the terms provided for in
the Intercreditor Agreement as in effect immediately prior to such amendment;

     (ii)   (A)   to add other parties (or any authorized agent thereof or trustee therefor)
holding Indebtedness that is incurred in compliance with the Credit Agreement and this Indenture and the Collateral Documents and (B) to establish that the Liens on any Collateral
securing such Indebtedness shall be pari passu under the Intercreditor Agreement with the
Liens on such Collateral securing the obligations under the Credit Agreement and senior to
the Liens on such Collateral securing any obligations under this Indenture and the
Securities, all on the terms provided for in the Intercreditor Agreement in effect
immediately prior to such amendment;

     (iii)   to effectuate the release of assets included in the Collateral from the Liens
securing the Securities (x) if all other Liens on those assets securing the Obligations
(including all commitments thereunder) under the Credit Agreement and other Indebtedness are
released (other than in connection with a cancellation or termination of the Credit
Agreement without a replacement thereof) or (y) if those assets are owned by a Subsidiary
that is a Subsidiary Guarantor and that Subsidiary Guarantor is released from its Guarantee
in accordance with the terms of this Indenture;

     (iv)   to establish that the Liens on any Credit Agreement securing any Indebtedness
replacing the Credit Agreement permitted to be incurred under Section 3.3(b)(i) and other
first priority obligations described under the Intercreditor
Agreement shall be senior to the

 

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Liens on such Credit Agreement securing any obligations under this Indenture, the
Securities and the Subsidiary Guarantees, and any obligations under this Indenture, the
Securities and the Subsidiary Guarantees shall continue to be secured on a second-priority
basis on the Collateral; and

     (v)   upon any cancellation or termination of the Credit Agreement without a replacement
thereof, to establish that the Collateral shall become first-priority Collateral.

Any such additional party and the Administrative Agent, Trustee and the Collateral Agent
shall be entitled to conclusively rely upon an Officer’s Certificate certifying that such
Pari Passu Lien Indebtedness or Indebtedness, as the case may be, was issued or borrowed in
compliance with the Credit Agreement, this Indenture and the Collateral Documents.

          SECTION 9.2.   With Consent of Holders. The Company and the Trustee may amend or supplement this Indenture, the Securities, the
Subsidiary Guarantees, the Collateral Documents and the Intercreditor Agreement with the written
consent of the Holders of at least a majority in principal amount of the Securities then
outstanding (including, without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Securities). Subject to clause (a)(vi) of Section 10.6, any
past default or compliance with the provisions of this Indenture, the Securities, the Subsidiary
Guarantees, the Collateral Documents or the Intercreditor Agreement (other than a Default or Event
of Default in the payment of the principal of, premium, if any, or interest on a Security (except
in accordance with Section 6.4)) may be waived with the written consent of the Holders of at least
a majority in principal amount of the Securities then outstanding (including, without limitation,
consents obtained in connection with a purchase of, or tender offer or exchange offer for,
Securities). However, without the consent of each Securityholder of an outstanding Security
affected, an amendment, supplement or waiver may not:

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

     (2)   reduce the stated rate of or extend the time for payment of interest on any
Security;

     (3)   reduce the principal of or extend the Stated Maturity of any Security;

     (4)   reduce the premium payable upon the redemption of any Security or change the time
at which any Security may be redeemed in accordance with this Indenture;

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

     (6)   impair the right of any Holder to receive payment of principal of, premium, if any,
and interest on such Holder’s Securities 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 Securities;

 

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     (7)   make any change to the amendment provisions which require each Holder’s consent or
to the waiver provisions; or

     (8)   modify the Subsidiary Guarantees in any manner adverse to the Holders of the
Securities; and

     (9)   release any Subsidiary Guarantor from any of its obligations under its Subsidiary
Guarantee or this Indenture, except in compliance with the terms thereof.

          In addition, without the consent of the Securityholders of at least 75% in principal amount of
Securities then outstanding, no amendment, supplement or waiver may (1) modify any Collateral
Document or the provisions in this Indenture dealing with Collateral Documents or application of
trust moneys in any manner, taken as a whole, materially adverse to the Securityholders or
otherwise release any Collateral other than in accordance with this Indenture, the Collateral
Documents and the Intercreditor Agreement or (2) modify the Intercreditor Agreement in any manner
adverse to the Securityholders in any material respect other than in accordance with the terms of
this Indenture, the Collateral Documents and the Intercreditor Agreement.

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

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

          SECTION 9.3.   Compliance with Trust Indenture Act. Every amendment to this Indenture or the Securities shall comply with the TIA as then in
effect.

          SECTION 9.4.   Revocation and Effect of Consents and Waivers. A consent to an amendment, supplement or a waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of that Security or portion of the Security that evidences the
same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not
made on the Security. However, any such Holder or subsequent Holder may revoke the consent or
waiver as to such Holder’s Security or portion of the Security if the Trustee receives the notice
of revocation before the date the amendment, supplement or waiver becomes effective. After an
amendment or waiver becomes effective, it shall bind every Securityholder unless it makes a change
described in clauses (1) through (9) of Section 9.2, in which case the amendment,
supplement or waiver or other action shall bind each Securityholder who has consented to it and
every subsequent Securityholder that evidences the same debt as the
consenting Securityholder’s Securities. An amendment or waiver made pursuant to Section 9.2 shall become effective

upon receipt by the Trustee of the requisite number of written consents.

 

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          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Securityholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed,
then notwithstanding the immediately preceding paragraph, those Persons who were Securityholders at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to
give such consent or to revoke any consent previously given or to take any such action, whether or
not such Persons continue to be Holders after such record date. No such consent shall become valid
or effective more than 120 days after such record date.

          SECTION 9.5.    Notation on or Exchange of Securities. If an amendment changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the
Security regarding the changed terms and return it to the Holder. Alternatively, if the Company or
the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee
shall authenticate a new Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such amendment.

          SECTION 9.6.    Trustee To Sign Amendments. The Trustee shall sign any amendment, supplement or waiver authorized pursuant to this
Article IX if the amendment, supplement or waiver does not adversely affect the rights,
duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign
it. In signing any amendment, supplement or waiver pursuant to this Article IX, the Trustee shall
be entitled to receive indemnity reasonably satisfactory to it and to receive, and (subject to
Sections 7.1 and 7.2) shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel stating that (i) such amendment, supplement or waiver is
authorized or permitted by this Indenture, (ii) all conditions precedent thereto have been complied
with and (iii) to the extent applicable, a statement that such supplemental indenture does not
adversely affect the rights of any Securityholder. Notwithstanding the foregoing, no Opinion of Counsel
will be required for the Trustee to execute any amendment or supplement adding a new Subsidiary
Guarantor under this Indenture.

ARTICLE X

Collateral and Security

          SECTION 10.1.    The Collateral. (a) The due and punctual payment of the principal of,
premium, if any, and interest on the Securities and the Subsidiary Guarantees thereof when and as
the same shall be due and payable, whether on an interest payment date, at maturity, by
acceleration, repurchase, redemption or otherwise, interest on the overdue principal of and
interest (to the extent lawful), if any, on the Securities and the Subsidiary Guarantees thereof
and performance of all other obligations under this Indenture, including, without limitation, the
obligations of the Company set forth in Section 7.7 and Section 8.6 herein, and the Securities and
the Subsidiary Guarantees thereof and the Collateral Documents, shall be secured by second-priority
Liens and security interests, subject to Permitted Liens, as provided in the

 

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Collateral Documents which the Company and the Subsidiary Guarantors, as the case may be, have
entered into simultaneously with the execution of this Indenture and shall be secured by all
Collateral Documents hereafter delivered as required or permitted by this Indenture, the Collateral
Documents and the Intercreditor Agreement; provided that the Collateral shall exclude certain items
of property, as provided in the Collateral Documents (collectively, the “Excluded Collateral”).

          (b)   The Company and the Subsidiary Guarantors hereby agree that the Collateral Agent shall
hold the Collateral in trust for the benefit of all of the Holders and the Trustee, in each case
pursuant to the terms of the Collateral Documents and the Intercreditor Agreement and the
Collateral Agent is hereby authorized and directed to execute and deliver the Collateral Documents
and the Intercreditor Agreement.

          (c)   Each Holder, by its acceptance of any Securities and the Subsidiary Guarantees thereof,
consents and agrees to the terms of the Collateral Documents and the Intercreditor Agreement
(including, without limitation, the provisions providing for foreclosure) as the same may be in
effect or as may be amended from time to time in accordance with their terms and authorizes and
directs the Collateral Agent to enter into and perform its obligations and exercise its rights
under the Collateral Documents and the Intercreditor Agreement in accordance therewith.

          (d)   The Trustee and each Holder, by accepting the Securities and the Subsidiary Guarantees
thereof, acknowledges that, as more fully set forth in the Collateral Documents and the
Intercreditor Agreement, the Collateral as now or hereafter constituted shall be held for the
benefit of all the Holders, the Collateral Agent and the Trustee, and that the Lien of this
Indenture and the Collateral Documents in respect of the Trustee and the Holders is subject to and
qualified and limited in all respects by the Collateral Documents and the Intercreditor Agreement
and actions that may be taken thereunder. In the event of conflict between the Intercreditor
Agreement and this Indenture, the Intercreditor Agreement shall control.

          (e)   In connection with exercising any right, power or discretionary duty hereunder or under
the Intercreditor Agreement, or under the Collateral Documents (for purposes of this clause, the
“Agreements”), unless otherwise expressly provided under the Agreements, the Collateral
Agent and Trustee shall be entitled to rely upon the direction of a majority of the
Securityholders. The Collateral Agent and Trustee shall not have any liability for taking any
action at the direction of such majority, or for any failure or delay of any such parties to
provide timely direction to the Collateral Agent or Trustee. Notwithstanding any other provision
of the Agreements, (i) any such direction shall not conflict with any rule of law or with the
Agreements and (ii) the Collateral Agent or Trustee shall not be required to take any action that
it determines might involve it in liability (unless the Collateral Agent or Trustee has received
satisfactory indemnity against such liability).

          SECTION 10.2.    Further Assurances.

 

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          (a)   The Company shall, and shall cause each Subsidiary Guarantor to, at their sole
expense, do or cause to be done all acts which may be reasonably necessary, whether or not
requested by the Collateral Agent, to confirm that the Collateral Agent holds, for the
benefit of the Holders and the Trustee, duly created, enforceable and perfected second
priority Liens and security interests in the Collateral (subject to Permitted Liens) to the
extent required by this Indenture, the Collateral Documents and the Intercreditor Agreement.

          (b)   As necessary, or upon request of the Collateral Agent or the Trustee, the Company and
the Subsidiary Guarantors shall, at their sole expense, execute, acknowledge and deliver such
documents and instruments and take such other actions, which may be necessary, or as the
Collateral Agent or the Trustee may reasonably request, to assure, perfect, transfer and confirm
the property and rights and priority of Liens created or intended to be created by the Collateral
Documents, including with respect to after-acquired Collateral, to the extent required
thereunder. If the Company or such Subsidiary fails to do so, the Collateral Agent is hereby
irrevocably authorized and empowered, with full power of substitution, to execute, acknowledge
and deliver such Collateral Documents, the Intercreditor Agreement, instruments, certificates,
notices and other documents and, subject to the provisions of the Collateral Documents and the
Intercreditor Agreement, take such other actions in the name, place and stead of the Company or
such Subsidiary, but the Collateral Agent shall have no obligation to do so and no liability for
any action taken or omitted by it in good faith in connection therewith.

          SECTION 10.3.   Impairment of Security Interest. Neither the Company nor any of its
Restricted Subsidiaries shall take or omit to take any action which would materially adversely
affect or impair the Liens in favor of the Collateral Agent and the Holders with respect to the
Collateral. Neither the Company nor any of its Restricted Subsidiaries shall grant to any Person,
or permit any Person to retain (other than the Collateral Agent), any interest whatsoever in the
Collateral, other than Permitted Liens. Neither the Company nor any of its Restricted Subsidiaries
shall enter into any agreement that requires the proceeds received from any sale of Collateral to
be applied to repay, redeem, defease or otherwise acquire or retire any Indebtedness of any Person,
other than as permitted by this Indenture, the Securities, the Subsidiary Guarantees, the
Collateral Documents and the Intercreditor Agreement. The Company shall, and shall cause each
Subsidiary Guarantor to, at its sole cost and expense, execute and deliver all such agreements and
instruments as necessary, or as the Trustee reasonably requests, to more fully or accurately
describe the assets and property intended to be Collateral or the obligations intended to be
secured by the Collateral Documents.

          SECTION 10.4.   After-Acquired Property. Subject to Permitted Liens and the terms of
the Collateral Documents, upon the acquisition by the Company or any Subsidiary Guarantor after the
Issue Date of (1) any after-acquired real property which qualifies as Collateral or any equipment
or fixtures which constitute accretions, additions or technological upgrades to the equipment or
fixtures that form part of the Collateral, (2) any material Additional Assets that are required to
become Collateral pursuant to Section 3.7, or (3) with regard to any real property that
qualifies as Collateral (other than Excluded Collateral) that has a fair market value of at least
$1.0 million, the Company or such Subsidiary Guarantor shall execute and deliver (i) with regard to
any real property, the items described under Section 10.5 within 60

 

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days of the date of acquisition and (ii) to the extent required by the Collateral Documents, any
information, documentation or other certificates as may be necessary to vest in the Collateral
Agent a perfected security interest, subjected only to Permitted Liens, in such after-acquired
property (other than Excluded Collateral) and to have such after-acquired property added to the
Collateral, and thereupon all provisions of this Indenture, the Securities, the Collateral
Documents and the Intercreditor Agreement relating to the Collateral shall be deemed to
relate to such after-acquired property to the same extent and with the same force and effect.

          Upon the acquisition by the Company or any Subsidiary Guarantor of any after-acquired assets
that would constitute Collateral after the Issue Date, the Company or such Subsidiary Guarantor
shall execute and deliver any information, documentation or other instruments, and shall take such
further actions (including the filing and recording of financing statements, fixture filings,
mortgages, deeds of trust and other documents) as may be necessary to vest in the Collateral Agent
a perfected security interest, subject to Permitted Liens, in such after-acquired property in
substantially the same form, to the same extent and substantially concurrently as the
Administrative Agent, except that the Collateral Agent shall have a second-priority lien in such
Collateral.

          SECTION 10.5.   Real Estate Mortgages and Filings. With respect to any fee interest in
certain real property interests identified in a schedule to the Indenture (individually and
collectively, the “Premises”) owned by the Company or a Subsidiary Guarantor on the Issue Date or
acquired by the Company or a Subsidiary Guarantor after the Issue Date that forms part of the
Collateral:

          (1)   the Company shall deliver to the Collateral Agent, as mortgagee or beneficiary, as
applicable, fully executed counterparts of Mortgages, each dated as of the Issue Date or, if later,
the date such property is pledged to secure the Obligations, in accordance with the requirements of
the Indenture and/or the Collateral Documents, duly executed by the Company or the applicable
Subsidiary Guarantor, together with evidence of the completion (or satisfactory arrangements for
the completion) of all recordings and filings of such Mortgage (and payment of any taxes or fees in
connection therewith) as may be necessary to create a valid, perfected at least second-priority
Lien (subject to Permitted Liens) against the properties purported to be covered thereby;

          (2)   the Collateral Agent shall have received mortgagee’s title insurance policies in favor of
the Collateral Agent, as mortgagee for the ratable benefit of itself and the Trustee, the holders
of the Securities and holders of any Pari Passu Notes, in the form necessary, with respect to the
property purported to be covered by such Mortgage, to insure that the interests created by the
Mortgage constitute valid and at least second-priority Liens on such property free and clear of all
Liens, defects and encumbrances (other than Permitted Liens), each such title insurance policy to
be in an amount reasonably satisfactory to the Collateral Agent and such policies shall also
include such endorsements and affirmative coverages as shall be reasonably requested by the
Collateral Agent and shall be accompanied by evidence of the payment in full of all premiums
thereon; and

 

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          (3)   the Issuer shall cause each Subsidiary Guarantor to, deliver to the Collateral Agent, with
respect to each of the covered Premises, such filings, surveys (or any updates or affidavits that
the title company may reasonably require as necessary to issue the title insurance policies), local
counsel opinions, landlord agreements and fixture filings, along with such other documents,
instruments, certificates and agreements, as the Collateral Agent and its counsel shall reasonably
require to create, evidence or perfect a valid and at least second-priority Lien on the property
subject to each such Mortgage (subject to Permitted Liens).

          SECTION 10.6.   Leasehold Interests. With respect to any leasehold interest and other
occupancy interests in certain real property (individually and collectively, the “Leased Premises”)
leased or otherwise occupied by the Company or a Subsidiary Guarantor on the Issue Date or leased
or otherwise occupied by the Company or a Subsidiary Guarantor after the Issue Date, the Company
shall use its reasonable efforts to obtain, or shall cause each Subsidiary Guarantor to use its
reasonable efforts to obtain and deliver to the Collateral Agent, with respect to each of the
covered Leased Premises, any landlord waiver, collateral access agreement or other agreement from
the landlord, warehouseman or other party controlling such Leased Premises, if, and to the extent
that, any such agreement has been delivered to the Administrative Agent with respect to such Leased
Premises pursuant to the Credit Agreement, in form and substance satisfactory to the Collateral
Agent, between such Collateral Agent and (i) any other person in possession of any Collateral and
(ii) any landlord of the Company or any Subsidiary Guarantor where any Collateral is located.

          
SECTION 10.7.   Release of Liens on the Collateral. (a) The Liens on the Collateral
shall be released with respect to the Securities and the Subsidiary Guarantees, as applicable:

          (1)   in whole, upon payment in full of the principal of, together with accrued and unpaid
interest and premium, if any, on the Securities;

          (2)   in whole, upon satisfaction and discharge of this Indenture;

          (3)   in whole, upon a legal defeasance as set forth in Section 8.1(b) hereof;

          (4)   in part, as to any property constituting Collateral (A) that is sold or otherwise disposed
of by the Company or any of the Subsidiary Guarantors in a transaction permitted by Section
3.7 and by the Collateral Documents (to the extent of the interest sold or disposed of) or
otherwise permitted by this Indenture and the Collateral Documents; (B) that is cash or Net
Available Cash withdrawn from the Collateral Account for any one or more purposes permitted by
Section 3.7(a) or for any other expenditures not prohibited by the Indenture; (C) upon any
release, sale or disposition (other than in connection with a cancellation or termination of the
Credit Agreement without a replacement thereof) of such Collateral pursuant to the terms of the
Credit Agreement resulting in the release of the Lien on such Collateral securing the Credit
Agreement; or (D) otherwise in accordance with, and as expressly provided for under, the Indenture
or the Intercreditor Agreement;

 

100

          (5)   in whole as to all Collateral that is owned by a Subsidiary Guarantor that is released
from its Subsidiary Guarantee in accordance with this Indenture; and

          (6)   with the consent of holders of seventy-five percent (75%) in aggregate principal amount of
the Securities (including, without limitation, consents obtained in connection with a tender offer
or exchange offer for, or purchase of Securities);

provided, that, in the case of any release in whole pursuant clauses (1) through (3) above, all
amounts owing to the Trustee under this Indenture, the Securities, the Subsidiary Guarantees, the
Collateral Documents and the Intercreditor Agreement have been paid.

          (b)   To the extent required herein, the Company and each Subsidiary Guarantor shall furnish to
the Trustee, prior to each proposed release of such Collateral pursuant to the Collateral Documents
and the Indenture, an Officers’ Certificate and an Opinion of Counsel as required under Section
13.4 (i) requesting such release and (ii) to the effect that all conditions precedent provided
for in this Indenture and the Collateral Documents to such release have been complied with.

          (c)   Upon compliance by the Company or the Subsidiary Guarantors, as the case may be, with the
conditions precedent set forth above, the Trustee or the Collateral Agent shall promptly cause to
be released and reconveyed to the Company, or its Subsidiary Guarantors, as the case may be, the
released Collateral in accordance with the directions of the Company, or its Subsidiary Guarantor,
as the case may be.

          (d)   The release of any Collateral from the terms of the Collateral Documents shall not be
deemed to impair the security under this Indenture in contravention of the provisions hereof or
affect the Lien of this Indenture or the Collateral Documents if and to the extent the Collateral
is released pursuant to this Indenture, the Collateral Documents or the Intercreditor Agreement or
upon the termination of this Indenture.

          (e)   Notwithstanding any provision to the contrary herein, as and when requested by the
Company, the Trustee shall instruct the Collateral Agent to execute and deliver Uniform Commercial
Code financing statement amendments or releases (which shall be prepared by the Company) solely to
the extent necessary to delete Excluded Collateral from the description of assets in any previously
filed financing statements. If requested in writing by the Company, the Trustee shall instruct the
Collateral Agent to execute and deliver such documents, instruments or statements (which shall be
prepared by the Company) and to take such other action as the Company may request to evidence or
confirm that Excluded Collateral described in the immediately preceding sentence has been released
from the Liens of each of the Collateral Agreements. The Collateral Agent shall execute and deliver
such documents, instruments and statements and shall take all such actions promptly upon receipt of
such instructions from the Trustee.

          SECTION 10.8.   Authorization of Actions to be Taken by the Trustee or the Collateral Agent
Under the Collateral Documents.

 

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          (a)   Subject to the provisions of the Collateral Documents and the Intercreditor Agreement
and unless otherwise expressly provided herein or therein, each of the Trustee or the Collateral
Agent may, in its sole discretion and without the consent of the Holders, on behalf of the
Holders, and shall, at the direction of a majority of the Holders, take all actions it deems
necessary or appropriate in order to (i) enforce any of its rights or any of the rights of the
Holders under the Collateral Documents and the Intercreditor Agreement and (ii) collect and
receive any and all amounts payable in respect of the Collateral in respect of the obligations of
the Company and the Subsidiaries hereunder and thereunder. Subject to the provisions of the
Collateral Documents and the Intercreditor Agreement, the Trustee or the Collateral Agent shall
have the power to institute and to maintain such suits and proceedings as it may deem expedient
to prevent any impairment of the Collateral by any acts that may be unlawful or in violation of
the Collateral Documents, the Intercreditor Agreement or this Indenture, and such suits and
proceedings as the Trustee or the Collateral Agent may deem expedient to preserve or protect its
interest and the interests of the Holders 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 the Holders or the Trustee).

          (b)   The Trustee or the Collateral Agent shall not be responsible for the existence,
genuineness or value of any of the Collateral or for the validity, perfection, priority or
enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by
reason of any action or omission to act on its part hereunder, except to the extent such action
or omission constitutes negligence (or gross negligence in the case of the Collateral Agent), bad
faith or willful misconduct on the part of the Trustee or the Collateral Agent, for the validity
or sufficiency of the Collateral or any agreement or assignment contained therein, for the
validity of the title of the Company to the Collateral, for insuring the Collateral or for the
payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the
maintenance of the Collateral. Notwithstanding the foregoing, the Trustee or the Collateral
Agent shall have no responsibility for recording, filing, re-recording or refiling any financing
statement, continuation statement, document, instrument or other notice in any public office at
any time or times or to otherwise take any action to perfect or maintain the perfection of any
security interest granted to it under the Collateral Documents or otherwise.

          (c)   Where any provision of this Indenture requires that additional property or assets be
added to the Collateral, the Company and each Subsidiary Guarantor shall deliver to the Trustee
or the Collateral Agent the following:

          (i)   a request from the Company that such Collateral be added;

          (ii)   the form of instrument adding such Collateral, which, based on the type and
location of the property subject thereto, shall be in substantially the form of the
applicable Collateral Documents entered into on the date of this Indenture, with such
changes thereto as the Company shall consider appropriate, or in such
other form as the Company shall deem proper; provided that
any  such changes or such

 

102

form are administratively
satisfactory to the Trustee or the Collateral Agent;

          (iii)   an Officers’ Certificate to the effect that the Collateral being added is in the
form, consists of the assets and is in the amount or otherwise has the fair market value
required by this Indenture; and

          (iv)   an Officers’ Certificate and Opinion of Counsel to the effect that all conditions
precedent provided for in this Indenture to the addition of such Collateral have been
complied with, which Opinion of Counsel shall also opine as to the creation and perfection
of the Collateral Agent’s Lien on such Collateral and as to the due authorization, execution
and delivery, validity and enforceability of the Collateral Document being entered into; and

          (v)   such financing statements, if any, as the Company shall deem necessary to perfect
the Collateral Agent’s security interest in such Collateral.

          (d)   The Trustee or the Collateral Agent, in giving any consent or approval under the
Collateral Documents or the Intercreditor Agreement, shall be entitled to receive, as a condition
to such consent or approval, an Officers’ Certificate to the effect that the action or omission
for which consent or approval is to be given does not violate this Indenture, the Collateral
Documents or the Intercreditor Agreement, and the Trustee or the Collateral Agent shall be fully
protected in giving such consent or approval on the basis of such Officers’ Certificate.

          SECTION 10.9.   Collateral Accounts.

          (a)   The Trustee and Collateral Agent, as applicable, are authorized to receive any funds for
the benefit of the Holders distributed under, and in accordance with, the Collateral Documents,
and to make further distributions of such funds to the Holders according to the provisions of
this Indenture, the Collateral Documents and the Intercreditor Agreement.

          (b)   The Collateral Agent shall establish the Collateral Accounts when and as needed. Such
Collateral Accounts shall at all times thereafter until this Indenture shall have terminated, be
maintained with, and under the sole control of, the Collateral Agent, subject to the
Intercreditor Agreement. The Collateral Accounts shall be trust accounts and shall be
established and maintained by the Collateral Agent at one of its corporate trust offices and all
Collateral shall be credited thereto. All cash and Cash Equivalents received by the Trustee
and/or Collateral Agent from awards or proceeds pursuant to the Collateral Documents, including
earnings, revenues, rents, issues, profits and income from the Collateral received pursuant to
the Collateral Documents, shall be deposited in the Collateral Account, and thereafter shall be
held, applied and/or disbursed by the Trustee or the Collateral Agent, as applicable, in
accordance with the terms of this Indenture (including, without limitation, Sections 3.7,
6.10 and 10.9(a)) and the Intercreditor Agreement. In connection with any and
all deposits to be made into the Collateral Accounts under this
Indenture, the Collateral Documents or the Intercreditor Agreement,
the Trustee and/or the Collateral Agent,

 

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 as
applicable, shall receive an Officers’ Certificate identifying which Collateral Account
shall receive such deposit and directing the Trustee and/or the Collateral Agent to make such
deposit.

          (c)   Pending the distribution of funds in the Collateral Accounts in accordance with the
provisions hereof and provided that no Event of Default shall have occurred and be continuing,
the Company may direct the Trustee and/or the Collateral Agent to invest such funds in Cash
Equivalents specified in such direction, such investments to mature by the times such funds are
needed hereunder and such direction to certify that such funds constitute Cash Equivalents and
that no Event of Default shall have occurred and be continuing. So long as no Event of Default
shall have occurred and be continuing, the Company may direct the Trustee and/or the Collateral
Agent to sell, liquidate or cause the redemption of any such investments, such direction to
certify that no Event of Default shall have occurred and be continuing. Any gain or income on any
investment of funds in the Collateral Accounts shall be credited to such Collateral Account.
Neither the Trustee nor the Collateral Agent shall have any liability for any loss incurred in
connection with any investment or any sale, liquidation or redemption thereof made in accordance
with the provisions of this Section 10.9(c).

ARTICLE XI

Subsidiary Guarantee

          
SECTION 11.1. Subsidiary Guarantee

          Subject to the provisions of this Article XI, each Subsidiary Guarantor hereby fully,
unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, jointly
and severally with each other Subsidiary Guarantor, to each Holder of the Securities, to the extent
lawful, and the Trustee the full and punctual payment when due, whether at maturity, by
acceleration, by redemption or otherwise, of the principal of, premium, if any, and 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
foregoing law), penalties, fees, indemnifications, reimbursements (including, without limitation,
reimbursement obligations with respect to letters of credit and bankers’ acceptances), damages and
other liabilities on the Securities and all other obligations of the Company under this Indenture,
the Collateral Documents and the Intercreditor Agreement (all the foregoing being hereinafter
collectively called the “Guarantor Obligations”). Each Subsidiary Guarantor agrees that
the Guarantor Obligations shall rank equally in right of payment with other Indebtedness of such
Subsidiary Guarantor, except to the extent such other Indebtedness is expressly subordinated to the
Guarantor Obligations, in which case the Guarantor Obligations shall rank senior in right of
payment to such other Indebtedness. Each Subsidiary Guarantor further agrees (to the extent
permitted by law) that the Guarantor Obligations may be extended or renewed, in whole or in part,
without notice or further assent from it, and that it shall remain bound under this Article
XI notwithstanding any extension or renewal of any Guarantor Obligation.

 

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

          Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a
Guarantee of payment when due (and not a Guarantee of collection) and waives any right to require
that any resort be had by any Holder to any security held for payment of the Guarantor Obligations.

          Except as set forth in Section 3.12, Section 11.2 and Article VIII,
the obligations of each Subsidiary Guarantor hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason (other than payment of the Guarantor
Obligations in full), including any claim of waiver, release, surrender, alteration or compromise,
and shall not (to the extent lawful) be subject to any defense of setoff, counterclaim, recoupment
or termination whatsoever or by reason of the invalidity, illegality or unenforceability of the
Guarantor Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of each Subsidiary Guarantor herein shall not (to the extent lawful) be discharged or
impaired or otherwise affected by (a) the failure of any Holder to assert any claim or demand or to
enforce any right or remedy against the Company or any other person under this Indenture, the
Securities, the Collateral Documents, the Intercreditor Agreement or any other agreement or
otherwise; (b) any extension or renewal of any thereof; (c) any rescission, waiver, amendment or
modification of any of the terms or provisions of this Indenture, the Securities, the Collateral
Documents, the Intercreditor Agreement or any other agreement; (d) the release of any security held
by any Holder or the Collateral Agent for the Guarantor Obligations or any of them; (e) the failure
of any Holder to exercise any right or remedy against any other Subsidiary Guarantor; (f) any
change in the ownership of the Company; (g) any default, failure or delay, willful or otherwise, in
the performance of the Guarantor Obligations, or (h) any other act or thing or omission or delay to
do any other act or thing which may or might in any manner or to any extent vary the risk of any
Subsidiary Guarantor or would otherwise operate as a discharge of such Subsidiary Guarantor as a
matter of law or equity.

          Each Subsidiary Guarantor agrees that its Subsidiary Guarantee herein shall remain in full
force and effect until payment in full of all the Guarantor Obligations or such Subsidiary
Guarantor is released from its Subsidiary Guarantee in compliance with Section 3.12,
Section 11.2 and Article VIII. Each Subsidiary Guarantor further agrees that
its Subsidiary Guarantee herein shall continue to be effective or be reinstated, as the case may
be, if at any time payment, or any part thereof, of principal of or interest on any of the
Guarantor Obligations is rescinded or

 

105

 must otherwise be restored by any Holder upon the bankruptcy or reorganization of
the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder has
at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Guarantor Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, each Subsidiary Guarantor hereby promises to
and shall, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in
cash, to the Holders an amount equal to the sum of (i) the unpaid amount of such Guarantor
Obligations then due and owing and (ii) accrued and unpaid interest on such Guarantor Obligations
then due and owing (but only to the extent not prohibited by law) (including interest accruing
after the filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Company or any Subsidiary Guarantor whether or
not a claim for post-filing or post-petition interest is allowed in such proceeding).

          Each Subsidiary Guarantor further agrees that, as between such Subsidiary Guarantor, on the
one hand, and the Holders, on the other hand, (x) the maturity of the Guarantor Obligations
guaranteed hereby may be accelerated as provided in this Indenture for the purposes of its
Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guarantor Obligations guaranteed hereby and (y) in the event of
any such declaration of acceleration of such Guarantor Obligations, such Guarantor Obligations
(whether or not due and payable) shall forthwith become due and payable by the Subsidiary Guarantor
for the purposes of this Subsidiary Guarantee.

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

          The Company shall not permit any Subsidiary Guarantor to consolidate with or merge with or
into any Person (other than the Company or another Subsidiary Guarantor) and shall not permit the
conveyance, transfer or lease of substantially all of the assets of any Subsidiary Guarantor
unless: (1) if such entity remains a Subsidiary Guarantor, (a) the resulting, surviving or
transferee Person (the “Successor Guarantor”) shall be a corporation, partnership, trust or limited
liability company organized and existing under the laws of the United States of America, any State
of the United States or the District of Columbia; (b) the Successor Guarantor, if other than such
Subsidiary Guarantor, expressly assumes in writing by supplemental indenture (and other applicable
documents), executed and delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of such Subsidiary Guarantor under the Subsidiary Guarantee, the Indenture, the
Collateral Documents (as applicable) and the Intercreditor Agreement and shall cause such
amendments, supplements or other instruments to be executed, filed, and recorded in such
jurisdictions as may be required by applicable law to preserve and protect the Lien on the
Collateral owned by or transferred to the Successor Guarantor, together with such financing
statements or comparable documents as may be required to perfect any security interests in such
Collateral which may be perfected by the filing of a financing statement or a similar document
under the Uniform Commercial Code or other similar statute or
regulation of the relevant states or jurisdictions;
(c) immediately after giving effect to such

 

106

  transaction (and treating any
Indebtedness that becomes an obligation of the Successor Guarantor or any Restricted Subsidiary as
a result of such transaction as having been Incurred by the Successor Guarantor or such Restricted
Subsidiary at the time of such transaction), no Default or Event of Default shall have occurred and
be continuing; and (d) the Company shall have delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture, if any, comply with this Indenture; and (2) the transaction is made in
compliance with Section 3.7 of this Indenture.

          Notwithstanding the foregoing, any Subsidiary Guarantor may merge with or into or transfer all
or part of its properties and assets to another Subsidiary Guarantor or the Company or merge with a
Restricted Subsidiary of the Company solely for the purpose of reincorporating the Subsidiary
Guarantor in a State of the United States or the District of Columbia, as long as the amount of
Indebtedness of such Subsidiary Guarantor and its Restricted Subsidiaries is not increased thereby.

          SECTION 11.2. Limitation on Liability; Termination, Release and Discharge.

          The obligations of each Subsidiary Guarantor hereunder shall be limited to the maximum amount
as shall, after giving effect to all other contingent and fixed liabilities of such Subsidiary
Guarantor (including, without limitation, any guarantees under the Credit Agreement) and after
giving effect to any collections from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of the obligations of such other Subsidiary Guarantor under its Subsidiary
Guarantee or pursuant to its contribution obligations under this Indenture or as set forth below,
result in the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under applicable federal or state law
and not otherwise being void or voidable under any similar laws affecting the rights of creditors
generally.

          (a)   A Subsidiary Guarantee by a Subsidiary Guarantor will be automatically and unconditionally
released and discharged, and each Subsidiary Guarantor and its obligations under the Subsidiary
Guarantee, this Indenture, the Collateral Documents and the Intercreditor Agreement will be
released and discharged, upon any sale, exchange, transfer or disposition of (whether by merger,
consolidation or the sale of) the Capital Stock of such Subsidiary Guarantor after which the
applicable Subsidiary Guarantor is no longer a Restricted Subsidiary or the sale of all or
substantially all the assets (other than by lease) of such Subsidiary Guarantor, whether or not
such Subsidiary Guarantor is the surviving corporation in such transaction to a Person which is not
the Company or a Restricted Subsidiary; provided that (x) such sale, exchange, transfer or
disposition is made in compliance with this Indenture, including Section 3.7 (it being
understood that only such portion, if any, of the Net Available Cash as is required to be applied
on or before the date of such release in accordance with the terms of this Indenture needs to be
applied in accordance therewith at such time) and Article IV and (y) all the obligations of
such Subsidiary Guarantor under all Indebtedness of the Company or its Restricted Subsidiaries
terminate upon consummation of such transaction.

 

107

          (b)   Each Subsidiary Guarantor shall be deemed released from all its obligations under this
Indenture, its Subsidiary Guarantee, the Collateral Documents to which it is a party and the
Intercreditor Agreement, and such Subsidiary Guarantee shall terminate, upon the legal defeasance
or covenant defeasance of the Securities or upon satisfaction and discharge of this Indenture, in
each case pursuant to the provisions of Article VIII hereof.

          (c)   A Subsidiary Guarantee of a Subsidiary Guarantor shall be automatically and
unconditionally released and discharged, and the Subsidiary Guarantor and its obligations under
this Indenture, the Collateral Documents to which it is a party and the Intercreditor Agreement
shall be released and discharged, in the event that such Subsidiary Guarantor is released and
discharged from its Guarantee of Indebtedness of the Company and the Subsidiary Guarantors under
the Credit Agreement (including by reason of the termination of the Credit Agreement), all other
Indebtedness of the Company and its Restricted Subsidiaries and/or the Guarantee that resulted in
the obligation of such Subsidiary Guarantor to guarantee the Securities, if such Subsidiary
Guarantor would not then otherwise be required to guarantee the Securities pursuant to this
Indenture (and treating any Guarantees of such Subsidiary Guarantor that remain outstanding as
Incurred at least 30 days prior to such release or discharge), except a discharge or release by or
as a result of payment under such Guarantee, this Indenture, the Collateral Documents and the
Intercreditor Agreement; provided, that if such Person has Incurred any Indebtedness or issued any
Preferred Stock or Disqualified Stock in reliance on its status as a Subsidiary Guarantor under
Section 3.3, such Subsidiary Guarantor’s obligations under such Indebtedness, Disqualified
Stock or Preferred Stock, as the case may be, so Incurred are satisfied in full and discharged or
are otherwise permitted to be Incurred by a Restricted Subsidiary (other than a Subsidiary
Guarantor) under Section 3.3(b).

          (d)   Each Subsidiary Guarantor shall be released from its obligations under this Indenture, its
Subsidiary Guarantee, the Collateral Documents to which it is a party and the Intercreditor
Agreement if the Company designates such Subsidiary Guarantor as an Unrestricted Subsidiary and
such designation complies with the other applicable provisions of this Indenture.

          (e)   In the case of paragraph (b) above, such Subsidiary Guarantor shall deliver to the Trustee
an Officers’ 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.

          (f)   The release of a Subsidiary Guarantor from its Subsidiary Guarantee, and its obligations
under this Indenture, the Collateral Documents to which it is a party and the Intercreditor
Agreement in accordance with the provisions of this Section 11.2 shall not preclude the
future applications of Section 3.12 to such Person.

          SECTION 11.3.    Right of Contribution

          Each Subsidiary Guarantor hereby agrees that to the extent that any Subsidiary Guarantor shall
have paid more than its proportionate share of any payment made on the obligations under the
Subsidiary Guarantees, such Subsidiary Guarantor shall be entitled to seek and receive contribution
from and against the Company or any other Subsidiary Guarantor who has not paid its proportionate
share of such payment. Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and conditions of Section 3.6. The
provisions of this Section 11.3

 

108

 shall in no respect limit the obligations and liabilities
of each Subsidiary Guarantor to the Trustee, Collateral Agent and the Holders and each Subsidiary
Guarantor shall remain liable to the Trustee, Collateral Agent and the Holders for the full amount
guaranteed by such Subsidiary Guarantor hereunder.

          SECTION 11.4.    No Subrogation

          Notwithstanding any payment or payments made by each Subsidiary Guarantor hereunder, no
Subsidiary Guarantor shall be entitled to be subrogated to any of the rights of the Trustee,
Collateral Agent or any Holder against the Company or any other Subsidiary Guarantor or any
collateral security or guarantee or right of offset held by the Trustee, Collateral Agent or any
Holder for the payment of the Guarantor Obligations, nor shall any Subsidiary Guarantor seek or be
entitled to seek any contribution or reimbursement from the Company or any other Subsidiary
Guarantor in respect of payments made by such Subsidiary Guarantor hereunder, until all amounts
owing to the Trustee, Collateral Agent and the Holders by the Company on account of the Guarantor
Obligations are paid in full. If any amount shall be paid to any Subsidiary Guarantor on account
of such subrogation rights at any time when all of the Guarantor Obligations shall not have been
paid in full, such amount shall be held by such Subsidiary Guarantor in trust for the Trustee,
Collateral Agent and the Holders, segregated from other funds of such Subsidiary Guarantor, and
shall, forthwith upon receipt by such Subsidiary Guarantor, be turned over to the Trustee in the
exact form received by such Subsidiary Guarantor (duly indorsed by such Subsidiary Guarantor to the
Trustee, if required), to be applied against the Guarantor Obligations.

ARTICLE XII

[Reserved]

ARTICLE XIII

Miscellaneous

          SECTION 13.1.    Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies or conflicts with another provision
which is required to be included in this Indenture by the TIA, the provision required by the TIA
shall control.

          SECTION 13.2.    Notices. Any notice or communication shall be in writing and delivered in person or mailed by
first-class mail addressed as follows:

if to the Company:

Nebraska Book Company, Inc.

4700 South 19th Street

Lincoln, NE 68501

Attention: Mark W. Oppegard

 

109

With a copy to:

Bingham McCutchen LLP

One Federal Street

Boston, MA 02110

Attention: Johan V. Brigham, Esq.

if to the Trustee:

Wilmington Trust FSB

[ADDRESS]

Attention: Corporate Trust Administration

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

          Any notice or communication mailed to a Securityholder shall be mailed to the Securityholder
at the Securityholder’s address as it appears on the registration books of the Registrar and shall
be sufficiently given if so mailed within the time prescribed.

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

          Notwithstanding any other provision of this Indenture or any Security, where this Indenture or
any Security provides for notice of any event (including any notice of redemption) to a Holder of a
Global Security (whether by mail or otherwise), such notice shall be sufficiently given to the
Depositary for such Security (or its designee), pursuant to the customary procedures of such
Depositary.

          SECTION 13.3.    Communication by Holders with other Holders. Securityholders may communicate pursuant to TIA § 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

          SECTION 13.4.    Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, the Collateral Documents or the Intercreditor Agreement
(except in connection with the original issuance of Securities on the date hereof), the Company
shall furnish to the Trustee:

     (1)   an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture, the applicable Collateral Documents and the Intercreditor
Agreement relating to the proposed action have been complied with; and

 

110

     (2)   an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent have been
complied with.

          SECTION 13.5.    Statements Required in Certificate or Opinion. Each certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

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

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

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

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

          In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officer’s
Certificate or on certificates of public officials.

          SECTION 13.6.    When Securities Disregarded. In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company, any Subsidiary
Guarantor or by any Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company shall be disregarded and deemed not to be outstanding,
except that, for the purpose of determining whether the Trustee shall be protected in relying on
any such direction, waiver or consent, only Securities which the Trustee knows are so owned shall
be so disregarded. Also, subject to the foregoing, only Securities outstanding at the time shall
be considered in any such determination.

          SECTION 13.7.    Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable rules for action by, or a meeting of, Securityholders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

          SECTION 13.8.    Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or other day on which commercial banking
institutions are authorized or required to be closed in New York City. If a payment date is a
Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period. If a regular record date is a Legal Holiday, the
record date shall not be affected.

          SECTION
13.9.   GOVERNING LAW. THIS INDENTURE, THE SECURITIES AND THE SUBSIDIARY GUARANTEES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

111

THE COLLATERAL DOCUMENTS (OTHER
THAN THE MORTGAGES) AND THE INTERCREDITOR AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. THE MORTGAGES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATES IN WHICH THE APPLICABLE PREMISES ARE LOCATED.

          SECTION 13.10.    No Recourse Against Others. An incorporator, director, officer, employee, stockholder or controlling person, as such,
of the Company or any Subsidiary Guarantor shall not have any liability for any obligations of the
Company or any Subsidiary Guarantor under the Securities, the Subsidiary Guarantees, the Collateral
Documents, the Intercreditor Agreement or this Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation. By accepting a Security, each Securityholder
shall waive and release all such liability. The waiver and release shall be part of the
consideration for the issue of the Securities.

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

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

          SECTION 13.13.    Variable Provisions. The Company initially appoints the Trustee as Paying Agent and Registrar and custodian with
respect to any Global Securities.

          SECTION 13.14.    Qualification of Indenture. The Company shall qualify this Indenture under the TIA in accordance with the terms and
conditions of the Registration Rights Agreement and shall pay all reasonable costs and expenses
(including attorneys’ fees and expenses for the Company, the Trustee and the Holders) incurred in
connection therewith, including, but not limited to, costs and expenses of qualification of this
Indenture and the Securities and printing this Indenture and the Securities. The Trustee shall be
entitled to receive from the Company any such Officers’ Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such qualification of this
Indenture under the TIA.

          SECTION 13.15.    Table of Contents; Headings. The table of contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not intended to be
considered a part hereof and shall not modify or restrict any of the terms or provisions hereof.

          SECTION 13.16.    Intercreditor Agreement Control. Notwithstanding any contrary provision in this Indenture, this Indenture is subject to the
provisions of the Intercreditor Agreement. The Company, the Subsidiary Guarantors and the Trustee
(to the extent its interests

 

112

are affected thereby) and the Holders, by their acceptance of the
Securities, acknowledge and agree to be bound by the provisions of the Intercreditor Agreement.

          SECTION 13.17    Direction by Holders to Enter into Collateral Documents and Intercreditor
Agreement. By accepting a Security, each Holder is deemed to have authorized and directed the Trustee
and the Collateral Agent, as applicable, to enter into the Collateral Documents and the
Intercreditor Agreement.

          SECTION 13.18    Force Majeure. In no event shall the Trustee or the Collateral Agent be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Trustee and the
Collateral Agent shall use reasonable efforts which are consistent with accepted practices in the
banking industry to resume performance as soon as practicable under the circumstances.

 

 

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

	 	 	 	 	 
	 	NEBRASKA BOOK COMPANY, INC.

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	SPECIALTY BOOKS, INC.

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President 	 
	 
	 	NBC TEXTBOOKS LLC

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	COLLEGE BOOKSTORES OF AMERICA, INC.

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	NET TEXTSTORE LLC

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	CAMPUS AUTHENTIC LLC

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 

 

 

	 	 	 	 	 
	 	WILMINGTON TRUST FSB

as Trustee and Collateral Agent

 	 
	 	By:  	Timothy P. Mowdy
 	 
	 	 	Name:  	Tim Mowdy 	 
	 	 	Title:  	Vice President 	 
	 

 

SCHEDULE 1

Mortgaged Property

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Name of Owner	 	 	Name of Property	 	 	Street	 	 	City	 	 	County	 	 	State	 
	 	Nebraska Book Company, Inc.
 

	 	 	3003 Forest Avenue
	 	 	3003 Forest Avenue
	 	 	Des Moines
	 	 	Polk
	 	 	IA	 
	 	Nebraska Book Company, Inc.
 

	 	 	1300 Q Street
	 	 	1300 Q Street
	 	 	Lincoln
	 	 	Lancaster
	 	 	NE	 
	 	Nebraska Book Company, Inc.
 

	 	 	4700 S. 19th Street
	 	 	4700 S. 19th Street
	 	 	Lincoln
	 	 	Lancaster
	 	 	NE	 
	 	Nebraska Book Company, Inc.
 

	 	 	5240 S. 19th Street
	 	 	5240 S. 19th Street
	 	 	Lincoln
	 	 	Lancaster
	 	 	NE	 
	 	Nebraska Book Company, Inc.
 

	 	 	1314 W. Hickory
	 	 	1314 W. Hickory
	 	 	Denton
	 	 	Denton
	 	 	TX	 
	 

S-1

 

EXHIBIT A

[FORM OF FACE OF INITIAL SECURITY]

[Applicable Restricted Securities Legend]

[Depository Legend, if applicable]

			
	 	 	 
	No. [___]
	 	Principal Amount $[_________], as 
 revised by the Schedule
of Increases and 
 Decreases in Global Security attached hereto
	 
	 	
CUSIP NO.                     
	 
	 	ISIN:                     

10.0% Senior Secured Notes due 2011

          Nebraska Book Company, Inc., a Kansas corporation, promises to pay to CEDE & CO., or
registered assigns, the principal sum of [______________] Dollars, as revised by the Schedule
of Increases and Decreases in Global Security attached hereto, on December 1, 2011.

          Interest Payment Dates: June 1 and December 1.

          Record Dates: May 15 and November 15.

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

	 	 	 	 	 
	Dated: 	NEBRASKA BOOK COMPANY, INC.

 	 
	 	By:  	                                                                        

 	 
	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

WILMINGTON TRUST FSB,

as Trustee, certifies that this is one of the Securities referred to in the Indenture.

 	 	 
	By  	 	 	 
	 	Authorized Signatory           	 	October 2, 2009 
	 	 	 	 

A-1

 

	 	 	 	 	 

[FORM OF REVERSE SIDE OF INITIAL SECURITY]

10.0% Senior Secured Note due 2011

1. Interest

          Nebraska Book Company, Inc., a Kansas corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at the rate per annum shown above.

          The Company will pay interest in cash semiannually in arrears on June 1 and December 1 of each
year commencing December 1, 2009. Interest on the Securities will accrue from the most recent date
to which interest has been paid on the Securities or, if no interest has been paid, from October 2,
2009. The Company shall pay interest on overdue principal or premium, if any (plus interest on
such interest to the extent lawful), at the rate borne by the Securities to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

2. Method of Payment

          By at least 10:00 a.m. (New York City time) on the date on which any principal of or interest
on any Security is due and payable, the Company shall irrevocably deposit with the Trustee or the
Paying Agent money sufficient to pay such principal, premium, if any, and/or interest. The Company
will pay interest (except Defaulted Interest) to the Persons who are registered Holders of
Securities at the close of business on the May 15 or November 15 next preceding the interest
payment date even if Securities are cancelled, repurchased or redeemed after the record date and on
or before the interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and private debts.
Payments in respect of Securities represented by a Global Security (including principal, premium,
if any, and interest) will be made by the transfer of immediately available funds to the accounts
specified by The Depository Trust Company or any successor depository. The Company will make all
payments in respect of a Definitive Security (including principal, premium, if any, and interest)
by mailing a check to the registered address of each Holder thereof; provided, however, that
payments on the Securities may also be made, in the case of a Holder of at least $1,000,000
aggregate principal amount of Securities, by wire transfer to a U.S. dollar account maintained by
the payee with a bank in the United States if such Holder elects payment by wire transfer by giving
written notice to the Trustee or the Paying Agent to such effect designating such account no later
than 15 days immediately preceding the relevant due date for payment (or such other date as the
Trustee may accept in its discretion).

3. Paying Agent and Registrar

          Initially, Wilmington Trust FSB, a federal savings bank (the “Trustee”), will act as Trustee,
Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice to any Securityholder. The Company or any of its
domestically incorporated Wholly-Owned Subsidiaries may act as Paying Agent, Registrar or
co-registrar.

A-2

 

4. Indenture

          The Company issued the Securities under an Indenture dated as of October 2, 2009 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the “Indenture”),
among the Company, the Subsidiary Guarantors and the Trustee and Collateral Agent. The terms of
the Securities include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on
the date of the Indenture (the “Act”). Capitalized terms used herein and not defined herein have
the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of those terms. In the
event of any conflict between the terms of this Security and the Indenture, the terms of the
Indenture shall govern and be controlling.

          The Securities are senior secured obligations of the Company. This is one of the Initial
Securities referred to in the Indenture. The Securities include the Initial Securities issued on
the Issue Date, any Additional Securities issued in accordance with Section 2.16 of the
Indenture and the Exchange Securities. The Initial Securities, Additional Securities and the
Exchange Securities are treated as a single class of securities under the Indenture. The Indenture
imposes certain limitations on, among other things: the Incurrence of Indebtedness by the Company
and its Restricted Subsidiaries, the payment of dividends and other distributions on the Capital
Stock of the Company and its Restricted Subsidiaries, the purchase or redemption of Capital Stock
of the Company and Capital Stock of such Restricted Subsidiaries, certain purchases or redemptions
of Subordinated Obligations or Guarantor Subordinated Obligations, the Incurrence of Liens by the
Company or its Restricted Subsidiaries, the sale or transfer of assets and Capital Stock of
Subsidiaries, certain Sale/Leaseback Transactions involving the Company or any Restricted
Subsidiary, the issuance or sale of Capital Stock of Restricted Subsidiaries, future Subsidiary
Guarantors, the business activities and investments of the Company and its Subsidiaries, and
transactions with Affiliates. In addition, the Indenture limits the ability of the Company and its
Restricted Subsidiaries to enter into agreements that restrict distributions and dividends from
Restricted Subsidiaries.

          To guarantee the due and punctual payment of the principal, premium, if any, and interest on
the Securities and all other amounts payable by the Company under the Indenture, the Securities,
the Collateral Documents and the Intercreditor Agreement when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the terms of the
Securities and the Indenture, the Subsidiary Guarantors have unconditionally guaranteed (and future
guarantors, together with the Subsidiary Guarantors, shall unconditionally Guarantee), jointly and
severally, such obligations on a senior secured basis pursuant to the terms of the Indenture.

5. Security. The Initial Securities and Additional Securities are treated as a single class
of securities under the Indenture and shall be secured by second-priority Liens and security
interests, subject to Permitted Liens, in the Collateral on the terms and conditions set forth in
the Indenture,

A-3

 

the Intercreditor Agreement and the Collateral Documents. The Collateral Agent
holds the Collateral in trust for the benefit of the Trustee, Collateral Agent and the Holders, in
each case pursuant to the Collateral Documents and the Intercreditor Agreement. Each Holder, by
accepting this Security, consents and agrees to the terms of the Collateral Documents (including
the provisions providing for the foreclosure and release of Collateral) and the Intercreditor
Agreement as the same may be in effect or may be amended from time to time in accordance with their
terms and the Indenture and authorizes and directs the Collateral Agent to enter into the
Collateral Documents and the Intercreditor Agreement, and to perform its obligations and exercise
its rights thereunder in accordance therewith.

6. Redemption

          Except as set forth below, the Securities are not redeemable.

          Prior to December 1, 2011, the Company may redeem in the aggregate up to 35% of the original
principal amount of the Securities with the net proceeds of one or more Equity Offerings at a
redemption price (expressed as a percentage of principal amount) of 110.0% plus accrued and unpaid
interest, if any, to the redemption date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date); provided, however, that
at least 65% of the original principal amount of the Securities must remain outstanding after each
such redemption and the redemption occurs within 90 days after the closing of such Equity Offering.

          If the optional redemption date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest, if any, will be paid to the Person
in whose name the Security is registered at the close of business, on such record date, and no
additional interest will be payable to holders whose Securities will be subject to redemption by
the Company.

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

          In addition, at any time prior to December 1, 2011, upon not less than 30 nor more than 60
days’ prior notice mailed by first-class mail to each holder’s registered address, the Company may
redeem the Securities, in whole but not in part, at a redemption price equal to 100% of the
principal amount thereof plus the Applicable Premium, plus accrued and unpaid interest, if any, to
the redemption date (the “Redemption Date”) (subject to the right of holders of record on the
relevant record date to receive interest due on the relevant interest payment date).

A-4

 

          “Applicable Premium” means, with respect to a Security on any date of redemption, the greater
of:

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

          (2)   the excess, if any, of (a) the present value as of such date of redemption of (i) the
redemption price of such Security on December 1, 2011, plus (ii) all required interest payments due
on such Security through December 1, 2011 (excluding accrued but unpaid interest on the date of
redemption), computed using a discount rate equal to the Treasury Rate as of such date of
redemption plus 50 basis points, over (b) the then-outstanding principal amount of such Security,
in each case as calculated by the Company or on behalf of the Company by such Person as the Company
shall designate; provided that such calculation shall not be a duty or obligation of the Trustee.

          “Treasury Rate” means the yield to maturity at the time of computation of United states
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15 (519) 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 or similar market data)) most nearly equal to the period from the
Redemption Date to December 1, 2011; provided, however, that if the period from the Redemption Date
to December 1, 2011 is not equal to the constant maturity of a United States Treasury security for
which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the period from the Redemption
Date to December 1, 2011 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be used.

7. Repurchase Provisions

          (a)   Upon the occurrence of a Change of Control, any Holder of Securities shall have the right
to cause the Company to repurchase all or any part of the Securities of such Holder at a purchase
price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if
any, to the date of repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date) as provided in, and subject to
the terms of, the Indenture.

          (b)   If the Company or a Restricted Subsidiary consummates an Asset Disposition that requires
the purchase of Securities pursuant to Section 3.7 of the Indenture, the Company may be
required to make an offer to all Holders of Securities and, to the extent required by the terms
thereof, to the holders of Pari Passu Lien Indebtedness outstanding with similar provisions
requiring the Company to make an offer to purchase such Pari Passu Lien Indebtedness with the
proceeds from any Asset Disposition (“Pari Passu Notes”), as the case may be, to purchase pro rata
up to a maximum principal amount equal to such Offer Proceeds of all outstanding Securities and any
such Pari Passu Notes to which the Asset Disposition Offer applies that may be purchased out of
Offer Proceeds, at an offer price in cash in an amount equal
to 100% of the principal 

A-5

 

amount of the
Securities and Pari Passu Notes plus accrued and unpaid interest thereon, if any, to the date of
purchase, in accordance with the procedures set forth in the Indenture or the agreements governing
the Pari Passu Notes, as applicable (expressed denominations of $2,000 principal amount and
integral multiples of $1,000 in excess thereof).

8. [Reserved]

9. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of principal amount of
$2,000 and integral multiples of $1,000 in excess thereof. A Holder may transfer or exchange
Securities in accordance with the Indenture. The Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes
and fees required by law or permitted by the Indenture. The Registrar need not register the
transfer of or exchange (i) any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed) for a period
beginning 15 days before a selection of Securities to be redeemed and ending on the date of such
selection or (ii) any Securities for a period beginning 15 days before an interest payment date and
ending on such interest payment date.

10. Persons Deemed Owners

     The registered holder of this Security will be treated as the owner of it for all purposes.

11. Unclaimed Money

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its request unless an abandoned property
law designates another Person. After any such payment, Holders entitled to the money must look
only to the Company and not to the Trustee for payment.

12. Defeasance

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

13. Amendment, Waiver

          Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities,
the Subsidiary Guarantees, the Collateral Documents and the Intercreditor Agreement may be amended
with the written consent of the Holders of at least a majority in principal amount of the then
outstanding Securities (including without limitation, consents obtained in connection with a
purchase of, or tender offer or exchange offer for Securities) and (ii) any
default (other than (x)
with respect to nonpayment or (y) in respect of a provision that cannot be amended

A-6

 

without the
written consent of each Securityholder affected or (z) with respect to Section 10.6(a)(6) of the
Indenture) or noncompliance with any provision may be waived with the written consent of the
Holders of a majority in principal amount of the then outstanding Securities (including without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for Securities). Subject to certain exceptions set forth in the
Indenture, without the consent of any Securityholder, the Company, the Subsidiary Guarantors
and the Trustee may amend the Indenture, the Securities, the Subsidiary Guarantees, the Collateral
Documents and the Intercreditor Agreement to cure any ambiguity, omission, defect or inconsistency,
or to comply with Article IV or Article XI of the Indenture in respect of the
assumption by a Successor Company of an obligation of the Company under the Indenture or by a
Successor Guarantor of obligations under a Subsidiary Guarantee, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, or to add Guarantees with respect
to the Securities, or to secure the Securities, or to release a Subsidiary Guarantor upon its
designation as an Unrestricted Subsidiary or otherwise in accordance with the Indenture, to release
Liens in favor of the Collateral Agent in the Collateral as provided under the collateral release
provisions, or to add additional covenants, or surrender rights and powers conferred on the Company
and the Subsidiary Guarantors, or to comply with any request of the SEC in connection with
qualifying the Indenture under the Act, or to make any change that does not adversely affect the
rights of any Securityholder, or to provide for the issuance of Exchange Securities, or to make any
change that does not adversely affect the rights of any Securityholder in any material respect or
to conform the text of the Indenture, the Securities or the Subsidiary Guarantees to the
“Description of notes” section of the Offering Memorandum dated September 23, 2009 in certain
cases.

14. Defaults and Remedies

Under the Indenture, Events of Default include, without limitation, (i) default for 30 days in
payment of interest when due on the Securities; (ii) default in payment of principal or premium, if
any, on the Securities at maturity, upon optional redemption, upon required repurchase, upon
declaration or otherwise; (iii) the failure by the Company to comply with its obligations under
Article IV or Section 11.2 of the Indenture, (iv) failure by the Company or any
Subsidiary Guarantor to comply for 30 days after notice with any of its obligations under the
covenants described under Section 3.9 of the Indenture or under other covenants specified
in the Indenture (in each case, other than a failure to purchase Securities which shall constitute
an Event of Default under clause (ii) above and other than a failure to comply with Section
3.9 which is covered by clause (iii) above), (v) the failure by the Company or any Subsidiary
Guarantor to comply for 60 days after notice with its other agreements contained in the Indenture,
the Collateral Documents or the Intercreditor Agreement, (vi) Indebtedness of the Company or any
Restricted Subsidiary not paid within any applicable grace period after final maturity or is
accelerated by the holders thereof because of a default and the total amount of such Indebtedness
unpaid or accelerated exceeds $15.0 million (the “cross acceleration provision”), (vii) certain
events of bankruptcy, insolvency or reorganization of the Company or a Significant Subsidiary (the
“bankruptcy provisions”), (viii) any judgment or decree for the payment of money in excess of $15.0
million is rendered against the Company or a Significant Subsidiary and such judgment
or decree
shall remain undischarged or unstayed for a period of 60 days after such judgment becomes final and
non-appealable (the

A-7

 

“judgment default provision”), (ix) any Subsidiary Guarantee, Collateral
Document or obligation under the Intercreditor Agreement of a Subsidiary Guarantor ceases to be in
full force and effect (except as contemplated by the terms of the Indenture and the Subsidiary
Guarantees) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor
denies or disaffirms its obligations under the Indenture, its Subsidiary Guarantee, any Collateral
Document or the Intercreditor Agreement and the Company fails to cause such Subsidiary Guarantor to
rescind such denials or disaffirmations within 30 days or (x)
with respect to any Collateral having a fair market value in excess of $5.0 million, individually
or in the aggregate, (A) the failure of the security interest with respect to such Collateral under
the Collateral Documents, at any time, to be in full force and effect for any reason other than in
accordance with their terms and the terms of the Indenture or the Intercreditor Agreement and other
than the satisfaction in full of all obligations under the Indenture and discharge of the Indenture
if such Default continues for 60 days or (B) the assertion by the Company or any Subsidiary
Guarantor, in any pleading in any court of competent jurisdiction,
that any such security interest is invalid or unenforceable. However, a default under clauses (iv), (v) or (x)(A)
or (B) will not constitute an Event of Default until the Trustee or the holders of more than 25% in
principal amount of the outstanding Securities notify the Company of the default and the Company
does not cure such default within the time specified in clauses (iv), (v) or (x)(A) or (B) hereof
after receipt of such notice.

          If an Event of Default occurs and is continuing (other than an Event of Default described in
clause (vii) above), the Trustee or the Holders of at least 25% in principal amount of the
outstanding Securities may declare all the Securities to be due and payable immediately. Certain
events of bankruptcy or insolvency are Events of Default which will result in the Securities being
due and payable immediately upon the occurrence of such Events of Default.

          Securityholders may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee and the Collateral Agent may refuse to enforce the Indenture or the
Securities unless each receives reasonable indemnity or security. Subject to certain limitations,
Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise
of any trust or power. The Trustee may withhold from Securityholders notice of any continuing
Default or Event of Default (except a Default or Event of Default in payment of principal or
interest) if it determines that withholding notice is in their interest.

15. Trustee Dealings with the Company

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

A-8

 

16. No Recourse Against Others

          An incorporator, director, officer, employee, stockholder or controlling person, as such, of
the Company or any of the Subsidiary Guarantors shall not have any liability for any obligations of
the Company or any of the Subsidiary Guarantors under the Securities, the Indenture, the Subsidiary
Guarantees, the Collateral Documents, the Intercreditor Agreement or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a Security, each
Securityholder waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.

17. Authentication

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

18. Abbreviations

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

19. CUSIP Numbers

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

20. Governing Law

          This Security shall be governed by, and construed in accordance with, the laws of the State of
New York.

          The Company will furnish to any Securityholder upon written request and without charge to the
Securityholder a copy of the Indenture. Requests may be made to:

Nebraska Book Company, Inc.

4700 South 19th Street

Lincoln, NE 68501

Attention of: Chief Financial Officer

A-9

 

ASSIGNMENT FORM

          To assign this Security, fill in the form below:

          I or we assign and transfer this Security to

 

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

 

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

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

 

	 	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 
	 	 
	 	Your Signature:
	 	 
	 	 

Signature Guarantee:
                                                                    

(Signature must be guaranteed)

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

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to S.E.C. Rule 17Ad-15.

In connection with any transfer or exchange of any of the Securities evidenced by this certificate
occurring prior to the date that is two years after the later of the date of original issuance of
such Securities and the last date, if any, on which such Securities were owned by the Company or
any Affiliate of the Company, the undersigned confirms that such Securities are being:

CHECK ONE BOX BELOW:

	 	 	 
	1 o
	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	 
	2 o
	 	transferred to the Company; or
	 
	 	 
	3 o
	 	transferred pursuant to and in compliance with Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”); or
	 
	 	 
	4 o
	 	transferred pursuant to an effective registration statement under the
Securities Act; or
	 
	 	 
	5 o
	 	transferred pursuant to and in compliance with Regulation S under

A-10

 

	 	 	 
	 

	 	the Securities Act; or
	 
	 	 
	6 o

	 	transferred to an institutional “accredited investor” (as defined in
Rule 501(a)(1), (2), (3) or (7) under the Securities Act), that has
furnished to the Trustee a signed letter containing certain
representations and agreements (the form of which letter appears as
Section 2.7  of the Indenture); or
	 
	 	 
	7 o

	 	transferred pursuant to another available exemption from the
registration requirements of the Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the registered holder thereof;
provided, however, that if box (5), (6) or (7) is checked, the Trustee or the Company may require,
prior to registering any such transfer of the Securities, in their sole discretion, such legal
opinions, certifications and other information as the Trustee or the Company may reasonably request
to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933, such as the exemption
provided by Rule 144 under such Act.

	 	 	 
	 
	 

	 	Signature
	Signature Guarantee:
 
	 	 
	 
	 	 
	(Signature must be guaranteed)

	 	Signature

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to S.E.C. Rule 17Ad-15.

TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

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

 

Dated:

A-11

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	 	 	 	 	Principal Amount of	 	authorized
	 	 	Amount of decrease	 	Amount of increase	 	this Global	 	signatory of
	 	 	in Principal Amount	 	in Principal Amount	 	Security following	 	Trustee or
	Date of	 	of this Global	 	of this Global	 	such decrease or	 	Securities
	increase/decrease	 	Security	 	Security	 	increase	 	Custodian
	 	 	 	 	 	 	 	 	 

A-12

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company pursuant to Section
3.7 or 3.9 of the Indenture, check the box:

	 	 	 	 	 
	 

	 	o
	 	o
	 
	 	 	 	 
	 

	 	3.7
	 	3.9

          If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.7 or 3.9 of the Indenture, state the amount in principal amount (must be
integral multiple of $1,000): $

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 
	 	Your Signature
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

(Sign exactly as your name appears on the other side of the Security)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to S.E.C. Rule 17Ad-15.

A-13

 

SUBSIDIARY GUARANTEE

          Pursuant to the Indenture (the “Indenture”) dated as of October 2, 2009 among Nebraska Book
Company, Inc., the Subsidiary Guarantors party thereto (each a “Subsidiary Guarantor” and
collectively the “Subsidiary Guarantors”), Wilmington Trust FSB as trustee (the “Trustee”) and as
collateral agent, each Subsidiary Guarantor, subject to the provisions of Article XI of the
Indenture, hereby fully, unconditionally and irrevocably guarantees, as primary obligor and not
merely as surety, jointly and severally with each other Subsidiary Guarantor, to each Holder of the
Securities, to the extent lawful, the Collateral Agent and the Trustee the full and punctual
payment when due, whether at maturity, by acceleration, by redemption or otherwise, of the
principal of, premium, if any, and interest on the Securities and all other obligations and
liabilities of the Company under the Indenture (including without limitation interest accruing
after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Company or any Subsidiary Guarantor whether or
not a claim for post-filing or post-petition interest is allowed in such proceeding and the
obligations under Section 7.7 of the Indenture), the Collateral Documents and the
Intercreditor Agreement (all the foregoing being hereinafter collectively called the “Guarantor
Obligations”). Each Subsidiary Guarantor agrees that the Guarantor Obligations shall rank equally
in right of payment with other Indebtedness of such Subsidiary Guarantor, except to the extent such
other Indebtedness is subordinate to the Guarantor Obligations. Each Subsidiary Guarantor further
agrees (to the extent lawful) that the Guarantor Obligations may be extended or renewed, in whole
or in part, without notice or further assent from it, and that it shall remain bound under this
Subsidiary Guarantee notwithstanding any extension or renewal of any Obligation.

          Each Subsidiary Guarantor waives (to the extent lawful) presentation to, demand of payment
from and protest to the Company of any of the Guarantor Obligations and also waives (to the extent
lawful) notice of protest for nonpayment. Each Subsidiary Guarantor waives notice of any default
under the Securities or the Guarantor Obligations. The Subsidiary Guarantee herein is subject to
the limits of Section 11.2 of the Indenture.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a
Guarantee of payment when due (and not a Guarantee of collection) and waives any right to require
that any resort be had by any Holder to any security held for payment of the Guarantor Obligations.

          Except as set forth in Section 3.12, Section 11.2 and Article VIII of
the Indenture, the obligations of each Subsidiary Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason (other than payment of the
Guarantor Obligations in full), including any claim of waiver, release, surrender, alteration or
compromise, and shall not (to the extent lawful) be subject to any defense of setoff, counterclaim,
recoupment or termination whatsoever or by reason of the invalidity, illegality or unenforceability
of the Guarantor Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of each Subsidiary Guarantor herein shall not (to the extent lawful) be discharged or
impaired or otherwise affected by (a) the failure of any Holder to assert any claim or demand or to
enforce any right or remedy against the Company or any other person under the Indenture, the
Securities or any other agreement or otherwise; (b) any extension or renewal of any thereof; (c)
any rescission, waiver, amendment or modification of any of the terms or provisions of the

A-14

 

Indenture, the Securities or any other agreement; (d) the release of any security held by any
Holder or the Collateral Agent for the Guarantor Obligations or any of them; (e) the failure of any
Holder to exercise any right or remedy against any other Subsidiary Guarantor; (f) any change in
the ownership of the Company; (g) any default, failure or delay, willful or otherwise, in the
performance of the Guarantor Obligations, or (h) any other act or thing or omission or delay to do
any other act or thing which may or might in any manner or to any extent vary the risk of any
Subsidiary Guarantor or would otherwise operate as a discharge of such Subsidiary Guarantor as a
matter of law or equity.

          Each Subsidiary Guarantor agrees that its Subsidiary Guarantee herein shall remain in full
force and effect until payment in full of all the Guarantor Obligations or such Subsidiary
Guarantor is released from its Subsidiary Guarantee in compliance with Section 3.12,
Section 11.2 and Article VIII of the Indenture. Each Subsidiary Guarantor further
agrees that its Subsidiary Guarantee herein shall continue to be effective or be reinstated, as the
case may be, if at any time payment, or any part thereof, of principal of, premium, if any, or
interest on any of the Guarantor Obligations is rescinded or must otherwise be restored by any
Holder upon the bankruptcy or reorganization of the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder has
at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Guarantor Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, each Subsidiary Guarantor hereby promises to
and shall, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in
cash, to the Trustee or the Trustee on behalf of the Holders an amount equal to the sum of (i) the
unpaid amount of such Guarantor Obligations then due and owing and (ii) accrued and unpaid interest
on such Guarantor Obligations then due and owing (but only to the extent not prohibited by law).

          Each Subsidiary Guarantor further agrees that, as between such Subsidiary Guarantor, on the
one hand, and the Holders, on the other hand, (x) the maturity of the Guarantor Obligations
guaranteed hereby may be accelerated as provided in the Indenture for the purposes of its
Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guarantor Obligations guaranteed hereby and (y) in the event of
any such declaration of acceleration of such Guarantor Obligations, such Guarantor Obligations
(whether or not due and payable) shall forthwith become due and payable by the Subsidiary Guarantor
for the purposes of this Subsidiary Guarantee.

          Each Subsidiary Guarantor also agrees to pay any and all reasonable costs and expenses
(including reasonable attorneys’ fees) incurred by the Collateral Agent, Trustee or the Holders in
enforcing any rights under this Subsidiary Guarantee.

A-15

 

	 	 	 	 	 
	 	SPECIALTY BOOKS, INC.

as a Subsidiary Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NBC TEXTBOOKS LLC

as a Subsidiary Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COLLEGE BOOKSTORES OF AMERICA, INC.

as a Subsidiary Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NET TEXTSTORE LLC

as a Subsidiary Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CAMPUS AUTHENTIC LLC

as a Subsidiary Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-16

 

EXHIBIT B

[FORM OF FACE OF EXCHANGE SECURITY]

[Depository Legend, if applicable]

			
	 	 	 
	No. [______]
	 	Principal Amount $[____________], as revised

by the Schedule of Increases and Decreases in Global

Security attached hereto
	 
	 	
CUSIP NO.                     

ISIN:                     

10.0% Senior Secured Notes due 2011

          Nebraska Book Company, Inc., a Kansas corporation, promises to pay to CEDE & CO., or
registered assigns, the principal sum of [____________] Dollars, as revised by the Schedule of
Increases and Decreases in Global Security attached hereto, on December 1, 2011.

          Interest Payment Dates: June 1 and December 1.

          Record Dates: May 15 and November 15.

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

	 	 	 	 	 
	 	NEBRASKA BOOK COMPANY, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 
	

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

WILMINGTON TRUST FSB,

as Trustee, certifies

that this is one of

the Securities referred

to in the Indenture.

 	 	 
	By:  	 	 	 
	 	Authorized Signatory                               	 	 Date: 
	 	 	 	 

B-1

 

	 	 	 	 	 

[FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

10.0% Senior Secured Note due 2011

1. Interest

          Nebraska Book Company, Inc., a Kansas corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at the rate per annum shown above.

          The Company will pay interest in cash semiannually in arrears on June 1 and December 1 of each
year commencing December 1, 2009. Interest on the Securities will accrue from the most recent date
to which interest has been paid on the Securities or, if no interest has been paid, from October 2,
2009. The Company shall pay interest on overdue principal or premium, if any (plus interest on
such interest to the extent lawful), at the rate borne by the Securities to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

2. Method of Payment

          By at least 10:00 a.m. (New York City time) on the date on which any principal of or interest
on any Security is due and payable, the Company shall irrevocably deposit with the Trustee or the
Paying Agent money sufficient to pay such principal, premium, if any, and/or interest. The Company
will pay interest (except Defaulted Interest) to the Persons who are registered Holders of
Securities at the close of business on the May 15 or November 15 next preceding the interest
payment date even if Securities are cancelled, repurchased or redeemed after the record date and on
or before the interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and private debts.
Payments in respect of Securities represented by a Global Security (including principal, premium,
if any, and interest) will be made by the transfer of immediately available funds to the accounts
specified by The Depository Trust Company or any successor depository. The Company will make all
payments in respect of a Definitive Security (including principal, premium, if any, and interest)
by mailing a check to the registered address of each Holder thereof; provided, however, that
payments on the Securities may also be made, in the case of a Holder of at least $1,000,000
aggregate principal amount of Securities, by wire transfer to a U.S. dollar account maintained by
the payee with a bank in the United States if such Holder elects payment by wire transfer by giving
written notice to the Trustee or the Paying Agent to such effect designating such account no later
than 15 days immediately preceding the relevant due date for payment (or such other date as the
Trustee may accept in its discretion).

3. Paying Agent and Registrar

          Initially, Wilmington Trust FSB, a federal savings bank (the “Trustee”), will act as Trustee,
Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice to any Securityholder. The Company or any of its

B-2

 

domestically incorporated Wholly-Owned Subsidiaries may act as Paying Agent, Registrar or
co-registrar.

4. Security. 

The Securities are treated as a single class of securities under the Indenture and shall be secured
by second-priority Liens and security interests, subject to Permitted Liens, in the Collateral on
the terms and conditions set forth in the Indenture, the Intercreditor Agreement and the Collateral
Documents. The Collateral Agent holds the Collateral in trust for the benefit of the Trustee and
the Holders, in each case pursuant to the Collateral Documents and the Intercreditor Agreement.
Each Holder, by accepting this Security, consents and agrees to the terms of the Collateral
Documents (including the provisions providing for the foreclosure and release of Collateral) and
the Intercreditor Agreement as the same may be in effect or may be amended from time to time in
accordance with their terms and the Indenture and authorizes and directs the Collateral Agent to
enter into the Collateral Documents and the Intercreditor Agreement, and to perform its obligations
and exercise its rights thereunder in accordance therewith.

5. Indenture

          The Company issued the Securities under an Indenture dated as of October 2, 2009 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the “Indenture”),
among the Company, the Subsidiary Guarantors and the Trustee and Collateral Agent. The terms of
the Securities include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on
the date of the Indenture (the “Act”). Capitalized terms used herein and not defined herein have
the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of those terms. In the
event of any conflict between this Security and the Indenture, the terms of the Indenture shall
control.

          The Securities are senior secured obligations of the Company. This is one of the Initial
Securities referred to in the Indenture. The Securities include the Initial Securities issued on
the Issue Date, any Additional Securities issued in accordance with Section 2.16 of the
Indenture and the Exchange Securities. The Initial Securities, Additional Securities and the
Exchange Securities are treated as a single class of securities under the Indenture. The Indenture
imposes certain limitations on, among other things: the Incurrence of Indebtedness by the Company
and its Restricted Subsidiaries, the payment of dividends and other distributions on the Capital
Stock of the Company and its Restricted Subsidiaries, the purchase or redemption of Capital Stock
of the Company and Capital Stock of such Restricted Subsidiaries, certain purchases or redemptions
of Subordinated Obligations or Guarantor Subordinated Obligations, the Incurrence of Liens by the
Company or its Restricted Subsidiaries, the sale or transfer of assets and Capital Stock of
Subsidiaries, certain Sale/Leaseback Transactions involving the Company or any Restricted
Subsidiary, the issuance or sale of Capital Stock of Restricted Subsidiaries, future Subsidiary
Guarantors, the business activities and investments of the Company and its Subsidiaries, and
transactions with Affiliates. In addition, the Indenture limits the ability of the Company and its
Restricted Subsidiaries to enter into agreements that restrict distributions and dividends from
Restricted Subsidiaries.

B-3

 

          To guarantee the due and punctual payment of the principal, premium, if any, and interest on
the Securities and all other amounts payable by the Company under the Indenture, the Securities,
the Collateral Documents and the Intercreditor Agreement when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the terms of the
Securities and the Indenture, the Subsidiary Guarantors have unconditionally guaranteed (and future
guarantors, together with the Subsidiary Guarantors, shall unconditionally Guarantee), jointly and
severally, such obligations on a senior secured basis pursuant to the terms of the Indenture.

6. Optional Redemption

          Except as set forth below, the Securities are not redeemable.

          Prior to December 1, 2011, the Company may redeem in the aggregate up to 35% of the original
principal amount of the Securities with the net proceeds of one or more Equity Offerings at a
redemption price (expressed as a percentage of principal amount) of 110.0% plus accrued and unpaid
interest, if any, to the redemption date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date); provided, however, that
at least 65% of the original principal amount of the Securities must remain outstanding after each
such redemption and the redemption occurs within 90 days after the closing of such Equity Offering.

          If the optional redemption date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest, if any, will be paid to the Person
in whose name the Security is registered at the close of business, on such record date, and no
additional interest will be payable to holders whose Securities will be subject to redemption by
the Company.

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

          In addition, at any time prior to December 1, 2011, upon not less than 30 nor more than 60
days’ prior notice mailed by first-class mail to each holder’s registered address, the Company may
redeem the Securities, in whole but not in part, at a redemption price equal to 100% of the
principal amount thereof plus the Applicable Premium, plus accrued and unpaid interest, if any, to
the redemption date (the “Redemption Date”) (subject to the right of holders of record on the
relevant record date to receive interest due on the relevant interest payment date).

          “Applicable Premium” means, with respect to a Security on any date of redemption, the greater
of:

B-4

 

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

          (2) the excess, if any, of (a) the present value as of such date of redemption of (i) the
redemption price of such Security on December 1, 2011, plus (ii) all required interest payments due
on such Security through December 1 (excluding accrued but unpaid interest on the date of
redemption), computed using a discount rate equal to the Treasury Rate as of such date of
redemption plus 50 basis points, over (b) the then-outstanding principal amount of such Security,
in each case as calculated by the Company or on behalf of the Company by such Person as the Company
shall designate; provided that such calculation shall not be a duty or obligation of the Trustee.

          “Treasury Rate” means the yield to maturity at the time of computation of United states
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15 (519) 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 or similar market data)) most nearly equal to the period from the
Redemption Date to December 1, 2011; provided, however, that if the period from the Redemption Date
to December 1, 2011 is not equal to the constant maturity of a United States Treasury security for
which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the period from the Redemption
Date to December 1, 2011 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be used.

7. Repurchase Provisions

          (c) Upon the occurrence of a Change of Control, any Holder of Securities shall have the right
to cause the Company to repurchase all or any part of the Securities of such Holder at a purchase
price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if
any, to the date of repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date) as provided in, and subject to
the terms of, the Indenture.

          (d) If the Company or a Restricted Subsidiary consummates an Asset Disposition that requires
the purchase of Securities pursuant to Section 3.7 of the Indenture, the Company may be
required to make an offer to all Holders of Securities and, to the extent required by the terms
thereof, to the holders of Pari Passu Lien Indebtedness outstanding with similar provisions
requiring the Company to make an offer to purchase such Pari Passu Lien Indebtedness with the
proceeds from any Asset Disposition (“Pari Passu Notes”), as the case may be, to purchase pro rata
up to a maximum principal amount equal to such Offer Proceeds of all outstanding Securities and any
such Pari Passu Notes to which the Asset Disposition Offer applies that may be purchased out of
Offer Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount of the
Securities and Pari Passu Notes plus accrued and unpaid interest thereon, if any, to the date of
purchase, in accordance with the procedures set forth in the Indenture or the agreements governing
the Pari Passu Notes, as applicable (expressed denominations of $2,000 principal amount and
integral multiples of $1,000 in excess thereof).

B-5

 

8. [Reserved]

9. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of principal amount of
$2,000 and integral multiples of $1,000 in excess thereof. A Holder may transfer or exchange
Securities in accordance with the Indenture. The Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes
and fees required by law or permitted by the Indenture. The Registrar need not register the
transfer of or exchange (i) any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed) or for a period
beginning 15 days before a selection of Securities to be redeemed and ending on the date of
selection or (ii) any Securities for a period beginning 15 days before an interest payment date and
ending on such interest payment date.

10. Persons Deemed Owners

          The registered holder of this Security will be treated as the owner of it for all purposes.

11. Unclaimed Money

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its request unless an abandoned property
law designates another Person. After any such payment, Holders entitled to the money must look
only to the Company and not to the Trustee for payment.

12. Defeasance

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

13. Amendment, Waiver

          Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities,
the Subsidiary Guarantees, the Collateral Documents and the Intercreditor Agreement may be amended
with the written consent of the Holders of at least a majority in principal amount of the then
outstanding Securities (including without limitation, consents obtained in conenction with a
purchase of, or tender offer or exchange offer for Securities) and (ii) any default (other than (x)
with respect to nonpayment or (y) in respect of a provision that cannot be amended without the
written consent of each Securityholder affected or (z) with respect to Section 10.6(a)(6) of the
Indenture) or noncompliance with any provision may be waived with the written consent of the
Holders of a majority in principal amount of the then outstanding Securities (including without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for Securities). Subject to certain exceptions set forth in the
Indenture, without the consent of any Securityholder, the Company, the Subsidiary Guarantors
and the

B-6

 

Trustee may amend the Indenture, the Securities, the Subsidiary Guarantees, the Collateral
Documents and the Intercreditor Agreement to cure any ambiguity, omission, defect or inconsistency,
or to comply with Article IV or Article XI of the Indenture in respect of the
assumption by a Successor Company of an obligation of the Company under the Indenture or by a
Successor Guarantor of obligations under a Subsidiary Guarantee, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, or to add Guarantees with respect
to the Securities, or to secure the Securities, or to release a Subsidiary Guarantor upon its
designation as an Unrestricted Subsidiary or otherwise in accordance with the Indenture, to release
Liens in favor of the Collateral Agent in the Collateral as provided under the collateral release
provisions, or to add additional covenants, or surrender rights and powers conferred on the Company
and the Subsidiary Guarantors, or to comply with any request of the SEC in connection with
qualifying the Indenture under the Act, or to make any change that does not adversely affect the
rights of any Securityholder, or to provide for the issuance of Exchange Securities, or to make any
change that does not adversely affect the rights of any Securityholder in any material respect or
to conform the text of the Indenture, the Securities or the Subsidiary Guarantees to the
“Description of notes” section of the Offering Memorandum dated September 23, 2009 in certain
cases.

14. Defaults and Remedies

Under the Indenture, Events of Default include (i) default for 30 days in payment of interest when
due on the Securities; (ii) default in payment of principal or premium, if any, on the Securities
at maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise;
(iii) the failure by the Company to comply with its obligations under Article IV or
Section 11.2 of the Indenture, (iv) failure by the Company or any Subsidiary Guarantor to
comply for 30 days after notice with any of its obligations under the covenants described under
Section 3.9 of the Indenture or under other covenants specified in the Indenture (in each
case, other than a failure to purchase Securities which shall constitute an Event of Default under
clause (ii) above and other than a failure to comply with Section 3.9 which is covered by
clause (iii) above), (v) the failure by the Company or any Subsidiary Guarantor to comply for 60
days after notice with its other agreements contained in the Indenture, the Collateral Documents or
the Intercreditor Agreement, (vi) Indebtedness of the Company or any Restricted Subsidiary not paid
within any applicable grace period after final maturity or is accelerated by the holders thereof
because of a default and the total amount of such Indebtedness unpaid or accelerated exceeds $15.0
million (the “cross acceleration provision”), (vii) certain events of bankruptcy, insolvency or
reorganization of the Company or a Significant Subsidiary (the “bankruptcy provisions”), (viii) any
judgment or decree for the payment of money in excess of $15.0 million is rendered against the
Company or a Significant Subsidiary and such judgment or decree shall remain undischarged or
unstayed for a period of 60 days after such judgment becomes final and non-appealable (the
“judgment default provision”), (ix) any Subsidiary Guarantee, Collateral Document or obligation
under the Intercreditor Agreement of a Subsidiary Guarantor ceases to be in full force and effect
(except as contemplated by the terms of the Indenture and the Subsidiary Guarantees) or is declared
null and void in a judicial proceeding or any Subsidiary Guarantor denies or disaffirms its
obligations under the Indenture, its Subsidiary Guarantee, any Collateral Document or the
Intercreditor Agreement and the Company fails to cause such Subsidiary Guarantor to rescind such
denials or disaffirmations within 30 days or (x) with
respect to any Collateral having a fair market value in excess of $5.0 million, individually or in
the

B-7

 

aggregate, (A) the failure of the security interest with respect to such Collateral under the
Collateral Documents, at any time, to be in full force and effect for any reason other than in
accordance with their terms and the terms of the Indenture or the Intercreditor Agreement and other
than the satisfaction in full of all obligations under the Indenture and discharge of the Indenture
if such Default continues for 60 days or (B) the assertion by the Company or any Subsidiary
Guarantor, in any pleading in any court of competent jurisdiction, that any such security interest is invalid or unenforceable. However, a default under clauses (iv), (v) or (x)(A)
or (B) will not constitute an Event of Default until the Trustee or the holders of more than 25% in
principal amount of the outstanding Securities notify the Company of the default and the Company
does not cure such default within the time specified in clauses (iv), (v) or (x)(A) or (B) hereof
after receipt of such notice.

          If an Event of Default occurs and is continuing (other than an Event of Default described in
clause (vii) above), the Trustee or the Holders of at least 25% in principal amount of the
outstanding Securities may declare all the Securities to be due and payable immediately. Certain
events of bankruptcy or insolvency are Events of Default which will result in the Securities being
due and payable immediately upon the occurrence of such Events of Default.

          Securityholders may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee and the Collateral Agent may refuse to enforce the Indenture or the
Securities unless each receives reasonable indemnity or security. Subject to certain limitations,
Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise
of any trust or power. The Trustee may withhold from Securityholders notice of any continuing
Default or Event of Default (except a Default or Event of Default in payment of principal or
interest) if it determines that withholding notice is in their interest.

15. Trustee Dealings with the Company

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

16. No Recourse Against Others

          An incorporator, director, officer, employee, stockholder or controlling person, as such, of
the Company or any of the Subsidiary Guarantors shall not have any liability for any obligations of
the Company or any of the Subsidiary Guarantors under the Securities, the Indenture, the Subsidiary
Guarantees, the Collateral Documents, the Intercreditor Agreement or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a Security, each
Securityholder waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.

B-8

 

17. Authentication

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

18. Abbreviations

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

19. CUSIP Numbers

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

20. Governing Law

          This Security shall be governed by, and construed in accordance with, the laws of the State of
New York.

          The Company will furnish to any Securityholder upon written request and without charge to the
Securityholder a copy of the Indenture. Requests may be made to:

Nebraska Book Company, Inc.

4700 South 19th Street

Lincoln, NE 68501

Attention of: Chief Financial Officer

B-9

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

 

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

 

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

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

 

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 
	 	Your Signature
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

 

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

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to S.E.C. Rule 17Ad-15.

B-10

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	 	 	 	 	Principal Amount of	 	authorized
	 	 	Amount of decrease	 	Amount of increase	 	this Global	 	signatory of
	 	 	in Principal Amount	 	in Principal Amount	 	Security following	 	Trustee or
	Date of	 	of this Global	 	of this Global	 	such decrease or	 	Securities
	increase/decrease	 	Security	 	Security	 	increase	 	Custodian

B-11

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Security purchased by the Company pursuant to Section
3.7 or 3.9 of the Indenture, check the box:

	 	 	 	 	 
	 

	 	o
	 	o
	 
	 	 	 	 
	 

	 	3.7
	 	3.9

          If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.7 or 3.9 of the Indenture, state the amount in principal amount (must be
integral multiple of $1,000): $

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 
	 	 
	 	Your Signature
	 	 
	 	 

(Sign exactly as your name appears on the other side of the Security)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to S.E.C. Rule 17Ad-15.

B-12

 

SUBSIDIARY GUARANTEE

          Pursuant to the Indenture (the “Indenture”) dated as of October 2, 2009 among Nebraska Book
Company, Inc., the Subsidiary Guarantors party thereto (each a “Subsidiary Guarantor” and
collectively the “Subsidiary Guarantors”), Wilmington Trust FSB as trustee (the “Trustee”) and as
collateral agent, each Subsidiary Guarantor, subject to the provisions of Article XI of the
Indenture, hereby fully, unconditionally and irrevocably guarantees, as primary obligor and not
merely as surety, jointly and severally with each other Subsidiary Guarantor, to each Holder of the
Securities, to the extent lawful, the Collateral Agent and the Trustee the full and punctual
payment when due, whether at maturity, by acceleration, by redemption or otherwise, of the
principal of, premium, if any, and interest on the Securities and all other obligations and
liabilities of the Company under the Indenture (including without limitation interest accruing
after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Company or any Subsidiary Guarantor whether or
not a claim for post-filing or post-petition interest is allowed in such proceeding and the
obligations under Section 7.7 of the Indenture), the Collateral Documents and the
Intercreditor Agreement (all the foregoing being hereinafter collectively called the “Guarantor
Obligations”). Each Subsidiary Guarantor agrees that the Guarantor Obligations shall rank equally
in right of payment with other Indebtedness of such Subsidiary Guarantor, except to the extent such
other Indebtedness is subordinate to the Guarantor Obligations. Each Subsidiary Guarantor further
agrees (to the extent lawful) that the Guarantor Obligations may be extended or renewed, in whole
or in part, without notice or further assent from it, and that it shall remain bound under this
Subsidiary Guarantee notwithstanding any extension or renewal of any Obligation.

          Each Subsidiary Guarantor waives (to the extent lawful) presentation to, demand of payment
from and protest to the Company of any of the Guarantor Obligations and also waives (to the extent
lawful) notice of protest for nonpayment. Each Subsidiary Guarantor waives notice of any default
under the Securities or the Guarantor Obligations. The Subsidiary Guarantee herein is subject to
the limits of Section 11.2 of the Indenture.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a
Guarantee of payment when due (and not a Guarantee of collection) and waives any right to require
that any resort be had by any Holder to any security held for payment of the Guarantor Obligations.

          Except as set forth in Section 3.12, Section 11.2 and Article VIII of
the Indenture, the obligations of each Subsidiary Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason (other than payment of the
Guarantor Obligations in full), including any claim of waiver, release, surrender, alteration or
compromise, and shall not (to the extent lawful) be subject to any defense of setoff, counterclaim,
recoupment or termination whatsoever or by reason of the invalidity, illegality or unenforceability
of the Guarantor Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of each Subsidiary Guarantor herein shall not (to the extent lawful) be discharged or
impaired or otherwise affected by (a) the failure of any Holder to assert any claim or demand or to
enforce any right or remedy against the Company or any other person under the Indenture, the
Securities or any other agreement or otherwise; (b) any extension or renewal of any thereof; (c)
any rescission, waiver, amendment or modification of any of the terms or provisions of the

B-13

 

Indenture, the Securities or any other agreement; (d) the release of any security held by any
Holder or the Collateral Agent for the Guarantor Obligations or any of them; (e) the failure of any
Holder to exercise any right or remedy against any other Subsidiary Guarantor; (f) any change in
the ownership of the Company; (g) any default, failure or delay, willful or otherwise, in the
performance of the Guarantor Obligations, or (h) any other act or thing or omission or delay to do
any other act or thing which may or might in any manner or to any extent vary the risk of any
Subsidiary Guarantor or would otherwise operate as a discharge of such Subsidiary Guarantor as a
matter of law or equity.

          Each Subsidiary Guarantor agrees that its Subsidiary Guarantee herein shall remain in full
force and effect until payment in full of all the Guarantor Obligations or such Subsidiary
Guarantor is released from its Subsidiary Guarantee in compliance with Section 3.12,
Section 11.2 and Article VIII of the Indenture. Each Subsidiary Guarantor further
agrees that its Subsidiary Guarantee herein shall continue to be effective or be reinstated, as the
case may be, if at any time payment, or any part thereof, of principal of, premium, if any, or
interest on any of the Guarantor Obligations is rescinded or must otherwise be restored by any
Holder upon the bankruptcy or reorganization of the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder has
at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Guarantor Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, each Subsidiary Guarantor hereby promises to
and shall, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in
cash, to the Trustee or the Trustee on behalf of the Holders an amount equal to the sum of (i) the
unpaid amount of such Guarantor Obligations then due and owing and (ii) accrued and unpaid interest
on such Guarantor Obligations then due and owing (but only to the extent not prohibited by law).

          Each Subsidiary Guarantor further agrees that, as between such Subsidiary Guarantor, on the
one hand, and the Holders, on the other hand, (x) the maturity of the Guarantor Obligations
guaranteed hereby may be accelerated as provided in the Indenture for the purposes of its
Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guarantor Obligations guaranteed hereby and (y) in the event of
any such declaration of acceleration of such Guarantor Obligations, such Guarantor Obligations
(whether or not due and payable) shall forthwith become due and payable by the Subsidiary Guarantor
for the purposes of this Subsidiary Guarantee.

          Each Subsidiary Guarantor also agrees to pay any and all reasonable costs and expenses
(including reasonable attorneys’ fees) incurred by the Collateral Agent, Trustee or the Holders in
enforcing any rights under this Subsidiary Guarantee.

B-14

 

	 	 	 	 	 
	 	[SUBSIDIARY GUARANTORS]

as Subsidiary Guarantors

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-15

 

EXHIBIT C

FORM OF INDENTURE SUPPLEMENT TO ADD SUBSIDIARY GUARANTORS TO

GUARANTEE NOTES

          This Supplemental Indenture and Subsidiary Guarantee, dated as of [                    ] (this
“Supplemental Indenture” or “Guarantee”), among [name of future Subsidiary Guarantor] (the
“Guarantor”), Nebraska Book Company, Inc. (together with its successors and assigns, the
“Company”), each other then existing Subsidiary Guarantor under the Indenture referred to below,
and Wilmington Trust FSB, as Trustee and as Collateral Agent under the Indenture referred to below.

W
I T N E S S E
T H:

          WHEREAS, the Company, the Subsidiary Guarantors and the Trustee have heretofore executed and
delivered an Indenture, dated as of October 2, 2009 (as amended, supplemented, waived or otherwise
modified, the “Indenture”), providing for the initial issuance of an aggregate principal amount of
$200.0 million of 10.0% Senior Secured Notes due 2011 of the Company (the “Securities”);

          WHEREAS, Section 3.12 of the Indenture provides that the Company is required to cause each
Restricted Subsidiary that Guarantees, on the Issue Date or any time thereafter, any Indebtedness
of the Company or any Subsidiary Guarantor to execute and deliver to the Trustee a Subsidiary
Guarantee, in the form of a supplemental indenture pursuant to which such Restricted Subsidiary
shall unconditionally Guarantee, on a joint and several basis, the full and prompt payment of the
principal of, premium, if any and interest in respect of the Securities on a senior secured basis
and all other obligations under the Indenture; and

          WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee and the Company are authorized
to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of
any Securityholder;

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

ARTICLE I

Definitions

          SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, terms defined in
the Indenture or in the preamble or recital hereto are used herein as therein defined, except that
the term “Holders” in this Supplemental Indenture shall refer to the term “Holders” as defined in
the Indenture and the Trustee acting on behalf or for the benefit of such holders. The words
“herein,” “hereof” and “hereby” and other words of similar import used in this
Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any
particular section hereof.

C-1

 

ARTICLE II

Agreement to be Bound; Guarantee

          SECTION 2.1 Agreement to be Bound The Guarantor hereby becomes a party to the
Indenture as a Subsidiary Guarantor and as such shall have all of the rights and be subject to all
of the obligations and agreements of a Subsidiary Guarantor under the Indenture. The Guarantor
agrees to be bound by all of the provisions of the Indenture, the Collateral Documents and the
Intercreditor Agreement applicable to a Subsidiary Guarantor and to perform all of the obligations
and agreements of a Subsidiary Guarantor under the Indenture, the Collateral Documents and the
Intercreditor Agreement.

          SECTION 2.2 Guarantee. Each Subsidiary Guarantor hereby fully, unconditionally and
irrevocably guarantees, as primary obligor and not merely as surety, jointly and severally with
each other Subsidiary Guarantor, to each Holder of the Securities, to the extent lawful, the
Collateral Agent and the Trustee, the full and punctual payment when due, whether at maturity, by
acceleration, by redemption or otherwise, of the principal of, premium, if any, and interest on the
Securities and all other obligations and liabilities of the Company under this Indenture (including
without limitation interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to the Company or any
Subsidiary Guarantor whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding), the Collateral Documents and the Intercreditor Agreement (all the foregoing being
hereinafter collectively called the “Guarantor Obligations”). Each Subsidiary Guarantor agrees
that the Guarantor Obligations shall rank equally in right of payment with other Indebtedness of
such Subsidiary Guarantor, except to the extent such other Indebtedness is expressly subordinated
to the Guarantor Obligations, in which case the Guarantor Obligations shall rank senior in right of
payment to such other Indebtedness. Each Subsidiary Guarantor further agrees (to the extent lawful)
that the Guarantor Obligations may be extended or renewed, in whole or in part, without notice or
further assent from it, and that it shall remain bound under this Supplemental Indenture
notwithstanding any extension or renewal of any Guarantor Obligation. 

          Each Subsidiary Guarantor waives (to the extent lawful) presentation to, demand of payment
from and protest to the Company of any of the Guarantor Obligations and also waives (to the extent
lawful) notice of protest for nonpayment. Each Subsidiary Guarantor waives notice of any default
under the Securities, the Guarantor Obligations or the Indenture. The obligations of each
Subsidiary Guarantor herein shall not (to the extent lawful) be discharged or impaired or otherwise
affected by (a) the failure of any Holder to assert any claim or demand or to enforce any right or
remedy against the Company, any Subsidiary Guarantor or any other person under this Indenture, the
Securities or any other agreement or otherwise; (b) any extension or renewal of any thereof; (c)
any rescission, waiver, amendment or modification of any of the terms or provisions of this
Indenture, any Subsidiary Guarantee, the Securities or any other agreement; (d) the release of any
security held by any Holder or the Collateral Agent for the Guarantor Obligations or any of them; (e) the failure of any Holder to exercise any right
or remedy

C-2

 

against any other Subsidiary Guarantor; (f) any change in the ownership of the Company;
(g) any default, failure or delay, willful or otherwise, in the performance of the Guarantor
Obligations; or (h) any other act or thing or omission or delay to do any other act or thing which
may or might in any manner or to any extent vary the risk of any Subsidiary Guarantor or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law or equity.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a
Guarantee of payment when due (and not a Guarantee of collection) and waives any right to require
that any resort be had by any Holder to any security held for payment of the Guarantor Obligations.

          Except as set forth in Section 3.12, Section 11.2 and Article VIII of
the Indenture, the obligations of each Subsidiary Guarantor hereunder (to the extent lawful) shall
not be subject to any reduction, limitation, impairment or termination for any reason (other than
payment of the Guarantor Obligations in full), including any claim of waiver, release, surrender,
alteration or compromise, and (to the extent lawful) shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Guarantor Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of each Subsidiary Guarantor herein shall not (to the extent lawful) be
discharged or impaired or otherwise affected by (a) the failure of any Holder to assert any claim
or demand or to enforce any right or remedy against the Company or any other person under this
Indenture, the Securities or any other agreement or otherwise; (b) any extension or renewal of any
thereof; (c) any rescission, waiver, amendment or modification of any of the terms or provisions of
this Indenture, the Securities or any other agreement; (d) the release of any security held by any
Holder or the Collateral Agent for the Guarantor Obligations or any of them; (e) the failure of any
Holder to exercise any right or remedy against any other Subsidiary Guarantor; (f) any change in
the ownership of the Company; (g) any default, failure or delay, willful or otherwise, in the
performance of the Guarantor Obligations, or (h) any other act or thing or omission or delay to do
any other act or thing which may or might in any manner or to any extent vary the risk of any
Subsidiary Guarantor or would otherwise operate as a discharge of such Subsidiary Guarantor as a
matter of law or equity.

          Each Subsidiary Guarantor agrees that its Subsidiary Guarantee herein shall remain in full
force and effect until payment in full of all the Guarantor Obligations or such Subsidiary
Guarantor is released from its Subsidiary Guarantee in compliance with Section 3.12,
Section 11.2 and Article VIII. Each Subsidiary Guarantor further agrees that its
Subsidiary Guarantee herein shall continue to be effective or be reinstated, as the case may be, if
at any time payment, or any part thereof, of principal of or interest on any of the Guarantor
Obligations is rescinded or must otherwise be restored by any Holder upon the bankruptcy or
reorganization of the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder has
at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Guarantor Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, each Subsidiary Guarantor hereby promises to and shall, upon receipt of

C-3

 

written demand by the Trustee,
forthwith pay, or cause to be paid, in cash, to the Trustee or the Trustee on behalf of the Holders
an amount equal to the sum of (i) the unpaid amount of such Guarantor Obligations then due and
owing and (ii) accrued and unpaid interest on such Guarantor Obligations then due and owing (but
only to the extent not prohibited by law)(including interest accruing after the filing of any
petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding
relating to the Company or any Subsidiary Guarantor whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding).

          Each Subsidiary Guarantor further agrees that, as between such Subsidiary Guarantor, on the
one hand, and the Holders, on the other hand, (x) the maturity of the Guarantor Obligations
guaranteed hereby may be accelerated as provided in this Indenture for the purposes of its
Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guarantor Obligations guaranteed hereby and (y) in the event of
any such declaration of acceleration of such Guarantor Obligations, such Guarantor Obligations
(whether or not due and payable) shall forthwith become due and payable by the Subsidiary Guarantor
for the purposes of this Subsidiary Guarantee.

          Each Subsidiary Guarantor also agrees to pay any and all reasonable costs and expenses
(including reasonable attorneys’ fees) incurred by the Collateral Agent, Trustee or the Holders in
enforcing any rights under this Section.

          Neither the Company nor the Subsidiary Guarantors shall be required to make a notation on the
Securities to reflect any Subsidiary Guarantee or any release, termination or discharge thereof and
any such notation shall not be a condition to the validity of any Subsidiary Guarantee.

          SECTION 2.3 Limitation on Liability. Any term or provision of the Indenture to the
contrary notwithstanding, the obligations of each Subsidiary Guarantor hereunder shall be limited
to the maximum amount as shall, after giving effect to all other contingent and fixed liabilities
of such Subsidiary Guarantor (including, without limitation, any guarantees under the Credit
Agreement) and after giving effect to any collections from or payments made by or on behalf of any
other Subsidiary Guarantor in respect of the obligations of such other Subsidiary Guarantor under
its Subsidiary Guarantee or pursuant to its contribution obligations under this Indenture or
applicable law, result in the obligations of such Subsidiary Guarantor under its Subsidiary
Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal or state
law and not otherwise being void or voidable under any similar laws affecting the rights of
creditors generally.

          SECTION 2.4 Release and Discharge.

          [(a) Any term or provision of the Indenture to the contrary notwithstanding, the obligations
of each Subsidiary Guarantor hereunder shall be limited to the maximum amount as shall, after
giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor
(including, without limitation, any guarantees under all Debt Facilities) and after giving effect
to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in
respect of the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee or

C-4

 

pursuant to its contribution obligations under the Indenture, result in the obligations of
such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a fraudulent conveyance
or fraudulent transfer under federal or state law and not otherwise being void or voidable under
any similar laws affecting the rights of creditors generally.] [Reserved]

          (b)   A Subsidiary Guarantee by a Subsidiary Guarantor will be automatically and
unconditionally released and discharged, and each Subsidiary Guarantor and its obligations under
the Subsidiary Guarantee, the Indenture, the Collateral Documents and the Intercreditor Agreement
will be released and discharged, upon any sale, exchange, transfer or disposition of (whether by
merger, consolidation or the sale of) the Capital Stock of such Subsidiary Guarantor after which
the applicable Subsidiary Guarantor is no longer a Restricted Subsidiary or the sale of all or
substantially all the assets (other than by lease) of such Subsidiary Guarantor, whether or not
such Subsidiary Guarantor is the surviving corporation in such transaction to a Person which is not
the Company or a Restricted Subsidiary; provided that (x) such sale, exchange, transfer or
disposition is made in compliance with the Indenture, including Section 3.7 of the Indenture (it
being understood that only such portion, if any, of the Net Available Cash as is required to be
applied on or before the date of such release in accordance with the terms of the Indenture needs
to be applied in accordance therewith at such time) and Article IV of the Indenture and (y) all the
obligations of such Subsidiary Guarantor under all Indebtedness of the Company or its Restricted
Subsidiaries terminate upon consummation of such transaction.

          (c)   Each Subsidiary Guarantor shall be deemed released from all its obligations under the
Indenture, its Subsidiary Guarantee, the Collateral Documents to which it is a party and the
Intercreditor Agreement, and such Subsidiary Guarantee shall terminate, upon the legal defeasance
or covenant defeasance of the Securities or upon satisfaction and discharge of the Indenture, in
each case pursuant to the provisions of Article VIII of the Indenture.

          (d)   A Subsidiary Guarantee of a Subsidiary Guarantor shall be automatically and
unconditionally released and discharged, and the Subsidiary Guarantor and its obligations under the
Indenture, the Collateral Documents to which it is a party and the Intercreditor Agreement shall be
released and discharged in the event that such Subsidiary Guarantor is released and discharged from
its Guarantee of Indebtedness of the Company and the Subsidiary Guarantors under the Credit
Agreement (including by reason of the termination of the Credit Agreement), all other Indebtedness
of the Company and its Restricted Subsidiaries and/or the Guarantee that resulted in the obligation
of such Subsidiary Guarantor to guarantee the Securities, if such Subsidiary Guarantor would not
then otherwise be required to guarantee the Securities pursuant to the Indenture (and treating any
Guarantees of such Subsidiary Guarantor that remain outstanding as Incurred at least 30 days prior
to such release or discharge), except a discharge or release by or as a result of payment under
such Guarantee, the Indenture, the Collateral Documents and the Intercreditor Agreement; provided,
that if such Person has Incurred any Indebtedness or issued any Preferred Stock or Disqualified
Stock in reliance on its status as a Subsidiary Guarantor under Section 3.3 of the Indenture, such
Subsidiary Guarantor’s obligations under such Indebtedness, Disqualified Stock or Preferred Stock,
as the case may be, so Incurred are satisfied in full and discharged or are otherwise permitted to
be Incurred by a Restricted Subsidiary (other than a Subsidiary Guarantor) under Section 3.3(b) of
the Indenture.

C-5

 

          (e)   Each Subsidiary Guarantor shall be released from its obligations under the Indenture, its
Subsidiary Guarantee, the Collateral Documents to which it is a party and the Intercreditor
Agreement if the Company designates such Subsidiary Guarantor as an Unrestricted Subsidiary and
such designation complies with the other applicable provisions of the Indenture. 

          (f)   In the case of paragraph (b) above, such Subsidiary Guarantor shall deliver to the
Trustee an Officers’ 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.

          (g)   The release of a Subsidiary Guarantor from its Subsidiary Guarantee, and its obligations
under the Indenture, the Collateral Documents to which it is a party and the Intercreditor
Agreement in accordance with the provisions of this Section 2.4 shall not preclude the future
applications of Section 3.12 of the Indenture to such Person.

ARTICLE II

Miscellaneous

          SECTION 3.1 Notices. All notices and other communications pertaining to this
Supplemental Indenture or any Security shall be in writing and shall be deemed to have been duly
given upon the receipt thereof. Such notices shall be delivered by hand, or mailed, certified or
registered mail with postage prepaid (a) if to the Guarantor, at its address set forth below, with
a copy to the Company as provided in the Indenture for notices to the Company, and (b) if to the
Holders or the Trustee, as provided in the Indenture. The Guarantor by notice to the Trustee may
designate additional or different addresses for subsequent notices to or communications with the
Guarantor.

          SECTION 3.2 Parties. Nothing expressed or mentioned in this Supplemental Indenture
is intended or shall be construed to give any Person, firm or corporation, other than the Holders
and the Trustee, any legal or equitable right, remedy or claim under or in respect of this
Supplemental Indenture or the Indenture or any provision herein or therein contained.

          SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 3.4 Severability Clause. In case any provision in this Supplemental
Indenture 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 and such provision
shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

          SECTION 3.5 Entire Agreement. This Supplemental Indenture is intended by the parties
to be a final expression of their agreement in respect of the subject matter contained herein and,
together with the Indenture, supersedes all prior agreements and understandings between the parties
with respect to such subject matter.

          SECTION 3.6 Ratification of Indenture; Supplemental Indentures Part of Indenture.
Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and effect. This

C-6

 

Supplemental Indenture shall form a part of the Indenture for all purposes, and
every holder of Securities heretofore or hereafter authenticated and delivered shall be bound
hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this
Supplemental Indenture.

          SECTION 3.7 Counterparts. The parties hereto may sign one or more copies of this
Supplemental Indenture in counterparts, all of which together shall constitute one and the same
agreement.

          SECTION 3.8 Headings. The headings of the Articles and the sections in this
Supplemental Indenture are for convenience of reference only and shall not be deemed to alter or
affect the meaning or interpretation of any provisions hereof.

          SECTION 3.9 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 and the Company.

C-7

 

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

	 	 	 	 	 
	 	NEBRASKA BOOK COMPANY, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SPECIALTY BOOKS, INC.

as a Subsidiary Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NBC TEXTBOOKS LLC

as a Subsidiary Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COLLEGE BOOKSTORES OF AMERICA, INC.

as a Subsidiary Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NET TEXTSTORE LLC

as a Subsidiary Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

C-8

 

	 	 	 	 	 

	 	 	 	 	 
	 	CAMPUS AUTHENTIC LLC

as a Subsidiary Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WILMINGTON TRUST FSB

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

C-9

 

EXHIBIT D

Form of Intercreditor Agreement

D-1exv4w3

Exhibit 4.3

 

 

PLEDGE
AND SECURITY AGREEMENT

made by

NEBRASKA BOOK COMPANY, INC.

and

CERTAIN OF THEIR SUBSIDIARIES

in favor of

WILMINGTON TRUST FSB,

as Collateral Agent

Dated as of October 2, 2009

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	SECTION 1. DEFINED TERMS	 	 	1	 
	1.1
	 	Definitions	 	 	1	 
	1.2
	 	Other Definitional Provisions	 	 	5	 
	 
	 	 	 	 	 	 
	SECTION 2. GRANT OF SECURITY INTEREST	 	 	5	 
	 
	 	 	 	 	 	 
	SECTION 3. REPRESENTATIONS AND WARRANTIES	 	 	7	 
	3.1
	 	Title; No Other Liens	 	 	7	 
	3.2
	 	Perfected First Priority Liens	 	 	7	 
	3.3
	 	Jurisdiction of Organization; Chief Executive Office	 	 	8	 
	3.4
	 	Collateral Locations	 	 	8	 
	3.5
	 	Farm Products	 	 	8	 
	3.6
	 	Investment Property	 	 	8	 
	3.7
	 	Intellectual Property	 	 	8	 
	3.8
	 	Deposit Accounts	 	 	9	 
	3.9
	 	Letter-of-Credit Rights and Chattel Paper	 	 	9	 
	3.10
	 	Commercial Tort Claims	 	 	9	 
	3.11
	 	Vehicles	 	 	9	 
	 
	 	 	 	 	 	 
	SECTION 4. COVENANTS	 	 	9	 
	4.1
	 	Delivery of Instruments, Certificated Securities and Chattel Paper	 	 	10	 
	4.2
	 	Maintenance of Perfected Security Interest; Further Documentation	 	 	10	 
	4.3
	 	Changes in Locations, Name, etc.	 	 	10	 
	4.4
	 	Notices	 	 	10	 
	4.5
	 	Investment Property	 	 	11	 
	4.6
	 	Electronic Chattel Paper	 	 	12	 
	4.7
	 	Intellectual Property	 	 	12	 
	4.8
	 	Insurance	 	 	13	 
	4.9
	 	Commercial Tort Claims	 	 	13	 
	4.10
	 	Letter-of-Credit Rights	 	 	14	 
	4.11
	 	Collateral Access Agreements	 	 	14	 
	4.12
	 	Vehicles	 	 	14	 
	 
	 	 	 	 	 	 
	SECTION 5. COLLECTION AND APPLICATION OF COLLATERAL PROCEEDS; DEPOSIT ACCOUNTS	 	 	14	 
	5.1
	 	Collection of Receivables	 	 	14	 
	5.2
	 	Covenant Regarding New Deposit Accounts	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 6. REMEDIAL PROVISIONS	 	 	15	 
	6.1
	 	Certain Matters Relating to Receivables	 	 	15	 
	6.2
	 	Communications with Obligors; Grantors Remain Liable	 	 	16	 
	6.3
	 	Pledged Stock	 	 	16	 
	6.4
	 	Proceeds to be Turned Over To Collateral Agent	 	 	17	 

 

 

ii

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	6.5
	 	Application of Proceeds	 	 	18	 
	6.6
	 	Code and Other Remedies	 	 	18	 
	6.7
	 	Registration Rights	 	 	19	 
	6.8
	 	Grantor’s Obligations Upon Default	 	 	20	 
	6.9
	 	Grant of Intellectual Property License	 	 	20	 
	6.10
	 	Subordination	 	 	21	 
	6.11
	 	Deficiency	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 7. THE COLLATERAL AGENT	 	 	21	 
	7.1
	 	Collateral Agent’s Appointment as Attorney-in-Fact, etc.	 	 	21	 
	7.2
	 	Duty of Collateral Agent	 	 	23	 
	7.3
	 	Execution of Financing Statements and Other Documents	 	 	24	 
	7.4
	 	Secured Party Performance of Debtor Obligations	 	 	25	 
	7.5
	 	Specific Performance of Certain Covenants	 	 	25	 
	7.6
	 	Authority of Collateral Agent	 	 	25	 
	 
	 	 	 	 	 	 
	SECTION 8. MISCELLANEOUS	 	 	26	 
	8.1
	 	Amendments in Writing	 	 	26	 
	8.2
	 	Notices	 	 	27	 
	8.3
	 	Waivers	 	 	27	 
	8.4
	 	No Waiver by Course of Conduct; Cumulative Remedies	 	 	27	 
	8.5
	 	Enforcement Expenses; Indemnification	 	 	27	 
	8.6
	 	Successors and Assigns	 	 	28	 
	8.7
	 	Counterparts	 	 	28	 
	8.8
	 	Severability	 	 	28	 
	8.9
	 	Section Headings	 	 	28	 
	8.10
	 	Integration	 	 	28	 
	8.11
	 	Reinstatement	 	 	28	 
	8.12
	 	GOVERNING LAW	 	 	29	 
	8.13
	 	Submission To Jurisdiction; Waivers	 	 	29	 
	8.14
	 	Acknowledgements	 	 	29	 
	8.15
	 	WAIVER OF JURY TRIAL	 	 	30	 
	8.16
	 	Additional Grantors	 	 	30	 
	8.17
	 	Releases	 	 	30	 
	8.18
	 	Intercreditor Agreement	 	 	30	 

 

SCHEDULES

	 	 	 
	Schedule 2

	 	Investment Property
	Schedule 3

	 	Perfection Matters
	Schedule 4

	 	Jurisdictions of Organization and Chief Executive Offices
	Schedule 5

	 	Inventory and Equipment Locations
	Schedule 6

	 	Intellectual Property
	Schedule 7

	 	Existing Prior Liens
	Schedule 8

	 	Vehicles
	Schedule 9

	 	Commercial Tort Claims
	Schedule 10

	 	Deposit Accounts; Lock Boxes
	Schedule 11

	 	Letter-of-Credit Rights; Chattel Paper
	 
	 	 
	ANNEXES
	 	 
	 
	 	 
	Annex 1

	 	Assumption Agreement

 

 

 

          PLEDGE AND SECURITY AGREEMENT, dated as of October 2, 2009, made by each of the signatories
hereto (together with any other entity that may become a party hereto as provided herein, the
“Grantors”), in favor of WILMINGTON TRUST FSB, as collateral agent (in such capacity, the
“Collateral Agent”) for the Secured Parties referred to below.

W I T N E S S E T H :

          WHEREAS, pursuant to the Indenture dated as of the date hereof (as it may be amended or
modified from time to time, the “Indenture”), Nebraska Book Company, Inc. (the
“Company”) has issued its 10% Senior Secured Notes due 2011 (the “Notes”);

          WHEREAS, the Company is a member of an affiliated group of companies that includes each other
Grantor;

          WHEREAS, the Company and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the issuance of the Notes; and

          WHEREAS, it is a condition precedent to the purchase of the Notes and the entry into the
Indenture that the Grantors shall have executed and delivered this Agreement to the Collateral
Agent for the ratable benefit of the Secured Parties;

          NOW, THEREFORE, in consideration of the premises, each Grantor hereby agrees with the
Collateral Agent, for the ratable benefit of the Secured Parties, as follows:

SECTION 1.    DEFINED TERMS

          1.1   Definitions. (a) Unless otherwise defined herein, terms defined in the Indenture and used herein shall
have the meanings given to them in the Indenture, and the following terms which are defined in the
Uniform Commercial Code in effect in the State of New York from time to time are used herein as so
defined: Accounts, Certificated Security, Chattel Paper, Commercial Tort Claim, Documents,
Equipment, Farm Products, Fixtures, General Intangibles, Goods, Instruments, Inventory,
Letter-of-Credit Rights, Security, and Supporting Obligations.

          (b) The following terms shall have the following meanings:

     “Account Debtor”: any obligor with respect to an Account.

     “Agreement”: this Pledge and Security Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

     “Company Obligations”: any principal, interest, penalties, fees, premiums (if
any), indemnifications, reimbursements, guarantees and other liabilities payable under the
Notes, the Indenture and the Collateral Documents, in each case, whether now or hereafter
existing, renewed or restructured, whether or not from time to time decreased or
extinguished and later increased, created or incurred, whether or not arising after the
filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, (including post-filing and
post-petition interest, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding).

 

2

     “Collateral”: as defined in Section 2.

     “Collateral Deposit Account”: as defined in Section 5.1(a).

     “Contingent Obligations”: any contingent indemnification obligations for which
no claim has been made, it being understood the principal, interest, penalties, fees,
premiums (if any), reimbursements, guarantees, other liabilities and similar obligations
relating to the Secured Obligations shall not constitute Contingent Obligations.

     “Control”: has the meaning set forth in Article 8 of the UCC or, if
applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the UCC.

     “Copyrights”: (i) all copyrights arising under the laws of the United States,
any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished (including, without limitation, those listed in
Schedule 6), all registrations and recordings thereof, and all applications in
connection therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to obtain all
renewals thereof.

     “Copyright Licenses”: all agreements, whether written or oral, naming any
Grantor as licensor or licensee (including, without limitation, those listed in Schedule
6), granting any right under any Copyright, including, without limitation (a) the grant
of rights to manufacture, distribute, exploit and sell materials derived from any Copyright,
(b) all rights to income, royalties, Proceeds, damages, claims, and payments now or
hereafter due or payable under and with respect thereto, including, without limitation,
damages and payments for past, present and future breaches thereof, and (c) all rights to
sue for past, present, and future breaches thereof.

     “Credit Agreement Obligations”: with respect to any Subsidiary Guarantor, all
obligations of such Subsidiary Guarantor which may arise under, out of, or in connection
with the Credit Agreement (“Credit Agreement”), dated as of February 13, 1998, as
amended and restated as of December 10, 2003, as further amended and restated as of March 4,
2004 and as of October 2, 2009 (as further amended, supplemented or otherwise modified from
time to time), among NBC Holdings Corp., NBC Acquisition Corp., the Company, JPMorgan Chase
Bank, N.A. and the banks and other financial institutions party thereto.

     “DDA”: each checking, savings or other Deposit Account maintained by any of
the Grantors. All funds in each DDA shall be presumed to be Collateral and proceeds of
Collateral, and the Collateral Agent and the other Secured Parties shall have no duty to
inquire as to the source of the amounts on deposit in any DDA.

     “Deposit Account”: as defined in the UCC and, in any event, including without
limitation, any demand, time, savings, passbook or like account maintained with a depository
institution.

 

3

     “Deposit Account Control Agreement”: an agreement, in form and substance
reasonably satisfactory to the Collateral Agent, among any Grantor, a banking institution
holding such Grantor’s funds, and the Collateral Agent with respect to collection and
control of all deposits and balances held in a deposit account maintained by any Grantor
with such banking institution.

     “Excluded Property”: as defined in Section 2.

     “Guarantor Obligations”: with respect to any Subsidiary Guarantor, all
obligations of such Subsidiary Guarantor which may arise under, out of, or in connection
with this Agreement, and the guarantee by each Guarantor of the Notes, in each case whether
on account of guarantee obligations, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements of counsel
to the Collateral Agent or any Secured Party that are required to be paid by such Subsidiary
Guarantor pursuant to the terms of this Agreement, the Notes or the Indenture).

     “Intellectual Property”: the collective reference to all rights, priorities
and privileges relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including, without limitation, the Copyrights,
the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark
Licenses, trade secrets, confidential or proprietary technical and business information,
know-how, show-how or other data or information and all related documentation, and all
rights to sue at law or in equity for any infringement or other impairment thereof,
including the right to receive all proceeds and damages therefrom.

     “Intercompany Note”: any promissory note evidencing loans made by any Grantor
to NBC Holdings Corp., a Delaware corporation, or any of its Subsidiaries.

     “Investment Property”: the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(a)(49) of the New York UCC and (ii)
whether or not constituting “investment property” as so defined, all Pledged Notes and all
Pledged Stock.

     “Issuers”: the collective reference to each issuer of a Pledged Stock.

     “Local Blocked Account Agreement”: with respect to an account established by a
Grantor, an agreement, in form and substance reasonably satisfactory to the Collateral
Agent, establishing Control of such account by the Collateral Agent and whereby the bank
maintaining such account agrees, during any Trigger Period, to comply only with the
instructions originated by the Collateral Agent without the further consent of any Grantor.

     “Local Blocked Account Bank”: each bank with whom Deposit Accounts are
maintained in which any funds of any of the Grantors from one or more DDAs are concentrated
and with whom a Local Blocked Account Agreement has been, or is required to be, executed in
accordance with the terms hereof.

 

4

     “Local Blocked Accounts”: as defined in Section 5.3.

     “New York UCC”: the Uniform Commercial Code as from time to time in effect in
the State of New York.

     “Patents”: (i) all letters patent of the United States, any other country or
any political subdivision thereof, all reissues and extensions thereof and all goodwill
associated therewith, including, without limitation, any of the foregoing referred to in
Schedule 6, (ii) all applications for letters patent of the United States or any
other country and all divisions, continuations and continuations-in-part thereof, including,
without limitation, any of the foregoing referred to in Schedule 6, and (iii) all
rights to obtain any reissues or extensions of the foregoing.

     “Patent License”: (a) all agreements, whether written or oral, providing for
the grant by or to any Grantor of any right to manufacture, use or sell any invention
covered in whole or in part by a Patent, including, without limitation, any of the foregoing
referred to in Schedule 6, (b) all income, royalties, Proceeds, damages, claims, and
payments now or hereafter due or payable under and with respect thereto, including, without
limitation, damages and payments for past, present and future breaches thereof, and (c) all
rights to sue for past, present, and future breaches thereof.

     “Pledged Notes”: all promissory notes listed on Schedule 2, all
Intercompany Notes at any time issued to any Grantor and all other promissory notes issued
to or held by any Grantor (other than promissory notes issued in connection with extensions
of trade credit by any Grantor in the ordinary course of business).

     “Pledged Stock”: the shares of Capital Stock listed on Schedule 2,
together with any other shares, stock certificates, options or rights of any nature
whatsoever in respect of the Capital Stock of any Person that may be issued or granted to,
or held by, any Grantor while this Agreement is in effect.

     “Proceeds”: all “proceeds” as such term is defined in Section 9-102(a)(64) of
the Uniform Commercial Code in effect in the State of New York and, in any event, shall
include, without limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

     “Receivable”: any Account, Chattel Paper, Document, Instrument or other right
to payment for goods sold or leased or for services rendered, whether or not such right is
evidenced by an Instrument or Chattel Paper and whether or not it has been earned by
performance (including, without limitation, any Account).

     “Secured Obligations”: (i) in the case of the Company, the Company
Obligations, and (ii) in the case of each Guarantor, its Guarantor Obligations.

     “Secured Parties”: the collective reference to (i) the Collateral Agent, (ii)
the Trustee and (iii) the Holders.

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

 

5

     “Trademarks”: (i) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos, domain names
and other source or business identifiers, and all goodwill associated therewith, now
existing or hereafter adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any State thereof or any
other country or any political subdivision thereof, or otherwise, and all common law rights
related thereto, including, without limitation, any of the foregoing referred to in
Schedule 6, and (ii) the right to obtain all renewals thereof.

     “Trademark License”: (a) any agreement, whether written or oral, providing for
the grant by or to any Grantor of any right to use any Trademark, including, without
limitation, any of the foregoing referred to in Schedule 6, (b) all income,
royalties, Proceeds, damages, claims, and payments now or hereafter due or payable under and
with respect thereto, including, without limitation, damages and payments for past, present
and future breaches thereof, and (c) all rights to sue for past, present, and future
breaches thereof.

     “Trigger Event”: the occurrence and continuance of an Event of Default under
the Credit Agreement Obligations.

     “UCC”: the Uniform Commercial Code, as in effect from time to time, of the
State of New York or of any other state the laws of which are required as a result thereof
to be applied in connection with the attachment, perfection or priority of, or remedies with
respect to, Collateral Agent’s Lien on any Collateral.

     “Vehicles”: all cars, trucks, trailers, construction and earth moving
equipment and other vehicles covered by a certificate of title law of any state and, in any
event including, without limitation, the vehicles listed on Schedule 8 and all tires and
other appurtenances to any of the foregoing.

          1.2   Other Definitional Provisions. (a) The words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.

          (b) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          (c) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part
thereof.

 

6

SECTION 2.    GRANT OF SECURITY INTEREST

          Each Grantor hereby assigns and transfers to the Collateral Agent, and hereby grants to the
Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in, all of
the following property now owned or at any time hereafter acquired by such Grantor or in
which such Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
such Grantor’s Secured Obligations:

          (a)   all Accounts;

          (b)   all Chattel Paper;

          (c)   all Commercial Tort Claims with respect to matters listed on Schedule 8;

          (d)   all Deposit Accounts (including all cash and other items deposited therein or credited
thereto);

          (e)   all Documents;

          (f)   all Equipment;

          (g)   all Fixtures;

          (h)   all General Intangibles;

          (i)   all Goods;

          (j)   all Instruments;

          (k)   all Intellectual Property;

          (l)   all Inventory;

          (m)   all Investment Property;

          (n)   all letters of credit, Letter-of-Credit Rights and Supporting Obligations;

          (o)   all Pledged Collateral;

          (p)   all Vehicles and title documents with respect to Vehicles, which shall be delivered in
accordance with Section 4.12 herein;

          (q)   all cash or cash equivalents;

          (r)   all other property not otherwise described above;

          (s)   all books and records, customer lists, credit files, computer files, programs, printouts
and other computer materials and records related thereto pertaining to the Collateral; and

 

7

          (t)   to the extent not otherwise included, all accessions to, substitutions for and
replacements, Proceeds and products of any and all of the foregoing and all collateral security and
guarantees given by any Person with respect to any of the foregoing;

          provided, however, that notwithstanding any of the other provisions set forth
in this Section 2, this Agreement shall not constitute a grant of a security interest in (a) any
property to the extent that such grant of a security interest (i) is prohibited by any Requirements
of Law of a Governmental Authority, (ii) requires a consent not obtained of any Governmental
Authority pursuant to such Requirement of Law or (iii) is prohibited by, or constitutes a breach or
default under or results in the termination of or requires any consent not obtained under, any
contract, license, agreement, instrument or other document evidencing or giving rise to such
property or, in the case of any Investment Property, Pledged Stock or Pledged Note, any applicable
shareholder or similar agreement, except to the extent that such Requirement of Law or the term in
such contract, license, agreement, instrument or other document or shareholder or similar agreement
providing for such prohibition, breach, default or termination or requiring such consent is
ineffective under applicable law and (b) more than 65% of the voting Capital Stock of any Foreign
Subsidiary directly owned by any Grantor (any property described in this proviso clause being
referred to herein as “Excluded Property”); provided that Excluded Property shall not
include Proceeds, substitutions or replacements of any Excluded Property (unless such Proceeds,
substitutions or replacements would constitute Excluded Property).

SECTION 3.    REPRESENTATIONS AND WARRANTIES

          To induce the Collateral Agent and certain of the other Secured Parties to enter into the
Indenture and to induce the Holders to make their respective extensions of credit to the Company
thereunder, each Grantor hereby represents and warrants to the Collateral Agent and each other
Secured Party that:

          3.1   Title; No Other Liens. Except for the security interest granted to the Collateral Agent for the ratable benefit of
the Secured Parties pursuant to this Agreement and the other Liens permitted to exist on the
Collateral by the Indenture, such Grantor owns each item of the Collateral free and clear of any
and all Liens or claims of others. No financing statement or other public notice with respect to
all or any part of the Collateral is on file or of record in any public office, except such as have
been filed in favor of the Collateral Agent, for the ratable benefit of the Secured Parties,
pursuant to this Agreement or as are permitted by the Indenture.

          3.2   Perfected Second Priority Liens. The security interests granted pursuant to this Agreement upon completion of the filings
and other actions specified on Schedule 3 (which, in the case of all filings and other
documents referred to on said schedule, have been delivered to the Collateral Agent in
completed and, where applicable, duly executed form) constitute valid perfected security interests
in all of the Collateral (excluding items from sections 2(d) (until the agreements set forth in
Section 5.1(a) are satisfied), 2(p) (until the agreements set forth in Section 4.12 are satisfied)
and 2(r)) in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, as
collateral security for such Grantor’s Secured Obligations, enforceable in accordance with the
terms hereof against all creditors of such Grantor and any Persons purporting to purchase any
Collateral from such Grantor and are prior to all other Liens on the Collateral in existence on
the date hereof except for (i) unrecorded Liens permitted by the Indenture which have priority over
the Liens on the Collateral by operation of law, (ii) Liens securing the Credit Agreement
Obligations and (iii) Liens described on Schedule 7.

 

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          3.3   Jurisdiction of Organization; Chief Executive Office. On the date hereof, such Grantor’s jurisdiction of organization, identification number from
the jurisdiction of organization (if any), federal employer identification number and the location
and mailing address of such Grantor’s chief executive office or sole place of business or principal
residence, as the case may be, are specified on Schedule 4. Such Grantor has furnished to
the Collateral Agent a certified charter, certificate of incorporation or other organization
document and long form good standing certificate as of a date which is recent to the date hereof.
The name in which it has executed this Agreement is the exact name as it appears in such Grantor’s
organizational documents, as amended, as filed with such Grantor’s jurisdiction of organization.
Such Grantor has not, during the past year, (i) except as described on Schedule 4, been a
party to any acquisition, merger or consolidation or (ii) other than as set forth in Schedule
4, had any other legal name.

          3.4   Collateral Locations. On the date hereof, the Inventory, the Equipment (other than mobile goods) and all other
material Collateral are kept at the locations listed on Schedule 5. All of said locations are
owned by such Grantor except for locations (i) which are leased by the Grantor as lessee and
designated as such in Schedule 5 and (ii) at which Inventory is held in a public warehouse or is
otherwise held by a bailee or on consignment as designated as such in Schedule 5.

          3.5   Farm Products. None of the Collateral constitutes, or is the Proceeds of, Farm Products.

          3.6   Investment Property. (a) The shares of Pledged Stock pledged by such Grantor hereunder constitute all the
issued and outstanding shares of all classes of the Capital Stock of each Issuer owned by such
Grantor.

          (a)   All the shares of the Pledged Stock have been duly and validly issued and are fully paid
and nonassessable.

          (b)   Each of the Pledged Notes constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing.

          (c)   Such Grantor is the record and beneficial owner of, and has good and marketable title to,
the Investment Property pledged by it hereunder, free of any and all Liens or options in favor of,
or claims of, any other Person, except the security interest created by this Agreement and the
Liens securing the Credit Agreement Obligations.

          3.7   Intellectual Property. (a) Schedule 6 lists all applications for federal registration and federally
registered Intellectual Property owned by such Grantor in its own name on the date hereof.

 

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          (b)   On the date hereof, all material Intellectual Property is valid, subsisting, unexpired and
enforceable, has not been abandoned and does not infringe the intellectual property rights of any
other Person.

          (c)   Except as set forth in Schedule 6, on the date hereof, none of the Intellectual
Property is the subject of any licensing or franchise agreement pursuant to which such Grantor is
the licensor or franchisor.

          (d)   No holding, decision or judgment has been rendered by any Governmental Authority which
would limit, cancel or question the validity of, or such Grantor’s rights in, any Intellectual
Property in any respect that could reasonably be expected to have a Material Adverse Effect.

          (e)   No action or proceeding is pending, or, to the knowledge of such Grantor, threatened, on
the date hereof (i) seeking to limit, cancel or question the validity of any Intellectual Property
or such Grantor’s ownership interest therein, or (ii) which, if adversely determined, would have a
material adverse effect on the value of any Intellectual Property.

          3.8   Deposit Accounts. On the date hereof, all of such Grantor’s Deposit Accounts are listed on Schedule
10.

          3.9   Letter-of-Credit Rights and Chattel Paper. On the date hereof, Schedule 11 lists all Letter-of-Credit Rights and Chattel Paper
of such Grantor. All action by such Grantor necessary to protect and perfect the Collateral
Agent’s Lien under the laws of the United States on each item listed on Schedule 11 has
been or, promptly following the Closing Date shall be, duly taken (including the delivery of all
originals and the placement of a legend on all Chattel Paper as required hereunder).

          3.10   Commercial Tort Claims (a) On the date hereof, except to the extent listed in Schedule 9, no Grantor has
rights in any Commercial Tort Claim with potential value in excess of $100,000.

          (b)   Upon the filing of a financing statement covering any Commercial Tort Claim referred to in
paragraph (a) above and Section 4.9 hereof against such Grantor in the jurisdiction specified in
Schedule 3 hereto, the security interest granted in such Commercial Tort Claim will constitute a
valid perfected security interest in favor of the Collateral Agent, for the ratable benefit of the
Secured Parties, as collateral security for such Grantor’s Obligations, enforceable in accordance
with the terms hereof against all creditors of such Grantor and any Persons purporting to purchase
such Collateral from Grantor, which security interest shall be prior to all other Liens on such
Collateral except for unrecorded liens permitted by the Indenture which have priority over the
Liens on such Collateral by operation of law and Liens securing the Credit Agreement Obligations.

          3.11   Vehicles. Schedule 8 is a complete and correct list of all Vehicles owned by such Grantor on the
date hereof.

 

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SECTION 4.    COVENANTS

          Each Grantor covenants and agrees with the Collateral Agent and the other Secured Parties
that, from and after the date of this Agreement until the Secured Obligations (other than the
Contingent Obligations) shall have been paid in full:

          4.1   Delivery of Instruments, Certificated Securities and Chattel Paper.
If any amount payable under or in connection with any of the Collateral shall be or become
evidenced by any Instrument, Certificated Security or Chattel Paper, such Instrument, Certificated
Security or Chattel Paper shall be immediately delivered to the Collateral Agent, duly indorsed in
a manner satisfactory to the Collateral Agent, to be held as Collateral pursuant to this Agreement.

          4.2   Maintenance of Perfected Security Interest; Further Documentation.
(a) Such Grantor shall maintain the security interest created by this Agreement as a
perfected security interest having at least the priority described in Section 3.2 and shall defend
such security interest against the claims and demands of all Persons whomsoever.

          (b)   Without limiting such Grantor’s obligations under Section 4.2(a), at any time and from
time to time, upon the written request of the Collateral Agent, and at the sole expense of such
Grantor, such Grantor will promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Collateral Agent may reasonably
request for the purpose of obtaining or preserving the full benefits of this Agreement and of the
rights and powers herein granted, including, without limitation, (i) filing any financing or
continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with respect to the security interests created hereby and
(ii) in the case of Investment Property, Letter-of-Credit Rights and any other relevant Collateral,
taking any actions necessary to enable the Collateral Agent to obtain Control with respect thereto.

          4.3   Changes in Locations, Name, etc.
Such Grantor will not, except upon 15 days’ prior written notice to the Collateral Agent and
delivery to the Collateral Agent of all additional executed financing statements and other
documents, if any, necessary to maintain the validity, perfection and priority of the security
interests provided for herein:

     (i)   change its jurisdiction of organization or the location of its chief executive
office or sole place of business or principal residence, as the case may be, or mailing
address from that referred to in Section 3.3; or

     (ii)   change its name or organization identification number issued by its state of
organization or type of entity or federal employer identification number.

          4.4   Notices.
Such Grantor will advise the Collateral Agent and the other Secured Parties promptly, in
reasonable written detail, of:

          (a)   any Lien (other than security interests created hereby or Liens permitted under the
Indenture) on any of the Collateral which would adversely affect the ability of the Collateral
Agent to exercise any of its remedies hereunder; and

          (b)   of the occurrence of any other event which could reasonably be expected to have a material
adverse effect on the aggregate value of the Collateral or on the security interests created
hereby.

 

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          4.5   Investment Property. (a) If such Grantor shall become entitled to receive or shall receive any certificate
(including, without limitation, any certificate representing a dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Capital Stock of any
Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any
shares of the Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the same as
the agent of the Collateral Agent and the other Secured Parties, hold the same in trust for the
Collateral Agent and the other Secured Parties and deliver the same forthwith to the Collateral
Agent in the exact form received, duly indorsed by such Grantor to the Collateral Agent, if
required, together with an undated stock power covering such certificate duly executed in blank by
such Grantor and with, if the Collateral Agent so requests, signature guaranteed, to be held by the
Collateral Agent, subject to the terms hereof, as additional collateral security for the
Obligations. Any sums paid upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall be paid over to the Collateral Agent to be held by it hereunder as
additional collateral security for the Obligations, and in case any distribution of capital shall
be made on or in respect of the Investment Property or any property shall be distributed upon
or with respect to the Investment Property pursuant to the recapitalization or reclassification of
the capital of any Issuer or pursuant to the reorganization thereof, the property so distributed
shall, unless otherwise subject to a perfected security interest in favor of the Collateral Agent,
be delivered to the Collateral Agent to be held by it hereunder as additional collateral security
for the Obligations. If any sums of money or property so paid or distributed in respect of the
Investment Property shall be received by such Grantor, such Grantor shall, until such money or
property is paid or delivered to the Collateral Agent, hold such money or property in trust for the
Collateral Agent and the other Secured Parties, segregated from other funds of such Grantor, as
additional collateral security for the Obligations.

          (b)   Without the prior written consent of the Collateral Agent (except pursuant to a
transaction expressly permitted by the Indenture), such Grantor will not (i) vote to enable, or
take any other action to permit, any Issuer to issue any Capital Stock of any nature or to issue
any other securities convertible into or granting the right to purchase or exchange for any Capital
Stock of any nature of any Issuer, (ii) sell, assign, transfer, exchange, or otherwise dispose of,
or grant any option with respect to, the Investment Property or Proceeds thereof, (iii) create,
incur or permit to exist any Lien or option in favor of, or any claim of any Person with respect
to, any of the Investment Property or Proceeds thereof, or any interest therein, except for the
security interests created by this Agreement and Liens securing the Credit Agreement Obligations or
(iv) enter into any agreement or undertaking restricting the right or ability of such Grantor or
the Collateral Agent to sell, assign or transfer any of the Investment Property or Proceeds
thereof.

     (i)   In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will
be bound by the terms of this Agreement relating to the Investment Property issued by it and
will comply with such terms insofar as such terms are applicable to it, (ii) it will notify
the Collateral Agent promptly in writing of the occurrence of any of the events described in
Section 4.5(a) with respect to the Investment Property issued by it and (iii) the terms of
Sections 6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all actions
that may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the Investment
Property issued by it.

 

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          4.6   Electronic Chattel Paper. In the event such Grantor is or becomes the owner of
any electronic chattel paper such Grantor shall promptly notify the Collateral Agent and, if
requested by the Collateral Agent, shall use commercially reasonable efforts to grant the
Collateral Agent Control of such electronic chattel paper in accordance with the UCC.

          4.7   Intellectual Property.
(a) Such Grantor (either itself or through licensees) will (i) continue to use each
material Trademark on each and every trademark class of goods applicable to its current line as
reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in
full force free from any claim of abandonment for non-use, (ii) maintain as in the past the quality
of products and services offered under such Trademark, (iii) use such Trademark with the
appropriate notice of registration and all other notices and legends required by applicable
Requirements of Law, (iv) not adopt or use any mark which is confusingly similar or a colorable
imitation of such Trademark unless the Collateral Agent, for the ratable benefit of the Secured
Parties, shall obtain a perfected security interest in such mark pursuant to this Agreement,
and (v) not (and use commercially reasonable efforts to not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby such Trademark may become
invalidated or impaired in any way.

          (b)   Such Grantor (either itself or through licensees) will not do any act, or omit to do any
act, whereby any material Patent may become prematurely invalidated, forfeited, abandoned or
dedicated to the public.

          (c)   Such Grantor (either itself or through licensees) (i) will employ each material Copyright
and (ii) will, for each work covered by a material copyright, use copyright notices as required
under applicable copyright laws. Such Grantor will not (either itself or through licensees) do any
act whereby any material portion of the Copyrights may fall into the public domain.

          (d)   Such Grantor (either itself or through licensees) will not do any act that knowingly
infringes the intellectual property rights of any other Person.

          (e)   Such Grantor will notify the Collateral Agent in writing immediately if it knows, or has
reason to know, that any application or registration relating to any material Intellectual Property
may become forfeited, abandoned or dedicated to the public, or of any adverse determination or
development (including, without limitation, the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office, the United States
Copyright Office or any court or tribunal in any country) regarding such Grantor’s ownership of, or
the validity of, any material Intellectual Property or such Grantor’s right to register the same or
to own and maintain the same.

          (f)   Whenever such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for the registration of any Intellectual Property with the
United States Patent and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, such Grantor shall report such
filing to the Collateral Agent within five Business Days after the last day of the fiscal quarter
in which such filing occurs. Such Grantor shall execute and deliver, and have recorded, any and
all agreements, instruments, documents, and papers as is necessary to evidence the
Collateral Agent’s and the other Secured Parties’ security interest in any Copyright, Patent or Trademark and
the goodwill and general intangibles of such Grantor relating thereto or represented thereby.

 

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          (g)   Such Grantor will take all reasonable and necessary steps, including, without limitation,
in any proceeding before the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency in any other country or any political subdivision thereof,
to maintain and pursue each application (and to obtain the relevant registration) and to maintain
each registration of the material Intellectual Property, including, without limitation, filing of
applications for renewal, affidavits of use and affidavits of incontestability and payment of
maintenance fees.

          (h)   In the event that any material Intellectual Property is infringed, misappropriated or
diluted by a third party, such Grantor shall (i) take such actions as such Grantor shall reasonably
deem appropriate under the circumstances to protect such Intellectual Property and (ii) if such
Intellectual Property is of material economic value, promptly notify the Collateral Agent after it
learns thereof and sue for infringement, misappropriation or dilution, to seek injunctive relief
where appropriate and to recover any and all damages for such infringement, misappropriation or
dilution.

          (i)   Upon the occurrence and during the continuance of an Event of Default, upon the written
request of the Collateral Agent, each Grantor will use its commercially reasonable efforts to
obtain all consents and approvals necessary for the assignment to the Collateral Agent or its
designee of any license held by such Grantor and to enable the Collateral Agent or its designee to
enforce the security interests granted hereunder.

          4.8   Insurance. (a) All insurance policies required hereunder and under Section 10.5 of the Indenture in
respect of property or casualty shall name the Collateral Agent (for the benefit of the Secured
Parties) as an additional insured or as loss payee, as applicable, and shall contain loss payable
clauses or mortgagee clauses, through endorsements in form and substance reasonably satisfactory to
the Collateral Agent (i) all proceeds thereunder with respect to any Collateral shall be applied in
accordance with the Indenture; (ii) providing that no such insurance shall be affected by any act
or neglect of the insured or owner of the property described in such policy; and (iii) such policy
and loss payable or mortgagee clauses may be canceled, amended, or terminated only upon at least
thirty days prior written notice given to the Collateral Agent.

          (b)   All premiums on any such insurance shall be paid when due by such Grantor, and, if
reasonably requested by the Collateral Agent, copies of the policies shall be delivered to the
Collateral Agent. If such Grantor fails to obtain any insurance as required by this Section, the
Collateral Agent may obtain such insurance at such Grantor’s expense. By purchasing such
insurance, the Collateral Agent shall not be deemed to have waived any Default arising from the
Grantor’s failure to maintain such insurance or pay any premiums therefor. If such Grantor fails
to obtain any insurance as required by this Section, the Collateral Agent may obtain such insurance
at the applicable Grantor’s expense.

          4.9   Commercial Tort Claims. Such Grantor shall promptly notify the Collateral Agent of any Commercial Tort Claim with
potential value in excess of $100,000 acquired by it
and, unless the Collateral Agent otherwise
consents, such Grantor shall within 30 days of obtaining such interest sign and deliver
documentation reasonably acceptable to the Collateral Agent granting to the Collateral Agent a
first priority security interest in such Commercial Tort Claim (subject to the Liens permitted
under the Indenture).

 

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          4.10   Letter-of-Credit Rights. If such Grantor is or becomes the beneficiary of a letter of credit with a value in excess
of $250,000, it shall promptly after becoming a beneficiary notify the Collateral Agent
thereof and, at the request of the Collateral Agent (a) use commercially reasonable efforts to
cause the issuer and/or confirmation bank to consent to the assignment of any Letter-of-Credit
Rights in connection with such letter of credit to the Collateral Agent and (b) agree to direct all
payment thereunder to a Deposit Account (which payments shall then be applied as required by the
Indenture).

          4.11   Collateral Access Agreements
Such Grantor shall use commercially reasonable efforts to obtain a Collateral Access Agreement
from the lessor of each leased property, mortgagee of owned property or bailee or consignee with
respect to any warehouse, processor or converter facility or other location where Collateral is
stored or located or which is the location of the Company’s principal place of business, which
agreement or letter shall provide access rights, contain a waiver or subordination of all Liens or
claims that the landlord, mortgagee, bailee or consignee may assert against the Collateral at that
location, and shall otherwise be reasonably satisfactory in form and substance to the Collateral
Agent. Such Grantor shall timely and fully pay and perform its obligations in all material
respects under all leases and other agreements with respect to each leased location or third party
warehouse where any Collateral is or may be located.

          4.12   Vehicles.
To the extent the aggregate value of the Vehicles of the Grantors at such time exceeds
$100,000, such Grantor will give the Collateral Agent notice of its acquisition of any Vehicle and
deliver to the Collateral Agent the original of any vehicle title certificate and provide and/or
file all other documents or instruments necessary to have the Lien of the Collateral Agent noted on
any such certificate or with the appropriate state office, provided that this Section 4.12
shall only apply if delivery of such title certificate, documents or other instruments is required
to satisfy such Grantor’s Credit Agreement Obligations. Notwithstanding any other provisions of
this Agreement and the Indenture, the Grantors’ shall not be required to cause Vehicles to be
pledged as Collateral if the aggregate value of the Vehicles of the Grantors is less than $100,000
unless a Default or Event of Default has occurred.

SECTION 5.    COLLECTION AND APPLICATION OF COLLATERAL PROCEEDS; DEPOSIT ACCOUNTS

          5.1   Collection of Receivables. On or before the 90th day after the Closing Date (or such later date as agreed by the agent
under the Credit Agreement in its sole discretion), each Grantor shall execute and deliver to the
Collateral Agent Deposit Account Control Agreements for each Deposit Account (other than (i) each
Deposit Account, the funds in which are used, in the ordinary course of business, solely for the
payment of salaries and wages, worker’s compensation, pension benefits and similar expenses or
taxes related thereto, (ii) each Deposit Account used, in the ordinary course of business, solely
for daily accounts payable and that has an ending daily balance of zero; provided that the
aggregate balance excluded in this clause (ii)
shall not exceed $1,000,000 in the aggregate and
(iii) each Deposit Account used in the ordinary course of business for local store accounts)
maintained by such Grantor into which all cash, checks or other similar payments
relating to or constituting payments made in respect of Receivables will be deposited (a
“Collateral Deposit Account”), which Collateral Deposit Accounts as of the Closing Date are
identified as such on Schedule 10. After the Closing Date, each Grantor will comply with
the terms of Section 5.2.

 

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          5.2   Covenant Regarding New Deposit Accounts. Before opening or replacing any Collateral Deposit Account or other Deposit Account (other
than (i) each Deposit Account, the funds in which are used, in the ordinary course of business,
solely for the payment of salaries and wages, worker’s compensation, pension benefits and similar
expenses or taxes related thereto, (ii) each Deposit Account used, in the ordinary course of
business, solely for daily accounts payable and that has an ending daily balance of zero;
provided that the aggregate balance excluded in this clause (ii) shall not exceed
$1,000,000 and (iii) each Deposit Account used in the ordinary course of business for local store
accounts), each Grantor shall cause each bank or financial institution in which it seeks to open a
Deposit Account, to enter into a Deposit Account Control Agreement with the Collateral Agent in
order to give the Collateral Agent Control of such Collateral Deposit Account.

          5.3   Local Store Accounts. The Grantors hereby acknowledge and agree to establish concentration accounts (each, a
“Concentration Account”) and to deposit amounts into the Concentration Account pursuant to
its Credit Agreement Obligations. The Grantors further acknowledge and agree that (i) the Grantors
have no right of withdrawal from the Concentration Account, (ii) the funds on deposit in the
Concentration Account shall at all times be collateral security for all of the Secured Obligations
and (iii) the funds on deposit in the Concentration Account shall be applied pursuant to each
Grantor’s respective Credit Agreement Obligations. In the event that, notwithstanding the
provisions of this Section 5.3, any Grantor receives or otherwise has dominion and control
of any such proceeds or collections, such proceeds and collections shall be held in trust in
accordance with Grantor’s Credit Agreement Obligations, shall not be commingled with any of such
Grantor’s other funds or deposited in any account of such Grantor and shall, not later than the
Business Day after receipt thereof, be deposited into the Concentration Account or dealt with in
such other fashion satisfactory to such Grantor’s Credit Agreement Obligations. Upon payment in
full of any outstanding Secured Obligations, any remaining amounts will be released and transferred
to a deposit account of the Grantors as the Grantors shall direct.

SECTION 6.    REMEDIAL PROVISIONS

          6.1   Certain Matters Relating to Receivables. The Collateral Agent hereby authorizes each Grantor to collect such Grantor’s Receivables,
subject to the Collateral Agent’s direction and control, and the Collateral Agent may curtail or
terminate said authority at any time after the occurrence and during the continuance of an Event of
Default. If required by the Collateral Agent at any time after the occurrence and during the
continuance of an Event of Default, any payments of Receivables, when collected by any Grantor, (i)
shall be forthwith (and, in any event, within two Business Days) deposited by
such Grantor in the exact form received, duly indorsed by such Grantor to the Collateral Agent
if required, in a Collateral Deposit Account maintained under the sole dominion and control of the
Collateral Agent, subject to withdrawal by the Collateral Agent for the account of the Secured
Parties only as provided in Section 6.5, and (ii) until so turned over, shall be held by such
Grantor in trust for the Collateral Agent and the other Secured Parties, segregated from other
funds of such Grantor.

 

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Each such deposit of Proceeds of Receivables shall be accompanied by a
report identifying in reasonable detail the nature and source of the payments included in the
deposit. The Grantors and the Collateral Agent recognize that setoffs, counterclaims, defenses and
other claims may be asserted by obligors with respect to certain of the Receivables, that certain
of the Receivables may be or become uncollectible in whole or in part and that the expense and
probability of success in litigating a disputed Receivable may exceed the amount that reasonably
may be expected to be recovered with respect to a Receivable. In view of the foregoing, each
Grantor agrees that the Collateral Agent may at any time and from time to time, if an Event of
Default has occurred and is continuing, compromise with the obligor on any Receivable, accept in
full payment of any Receivable such amount as the Collateral Agent in its sole discretion shall
determine or abandon any Receivable, and any such action by the Collateral Agent may be
commercially reasonable so long as the Collateral Agent acts in good faith based on information
known to it at the time it takes any such action.

          6.2   Communications with Obligors; Grantors Remain Liable.
(a) The Collateral Agent in its own name or in the name of others may at any time after
the occurrence and during the continuance of an Event of Default communicate (by mail, telephone,
facsimile, email or otherwise) with obligors under the Receivables to verify with them to the
Collateral Agent’s satisfaction the existence, amount and terms of any Receivables.

          (b)   Upon the request of the Collateral Agent at any time after the occurrence and during the
continuance of an Event of Default, each Grantor shall notify obligors on the Receivables that the
Receivables have been assigned to the Collateral Agent for the ratable benefit of the Secured
Parties and that payments in respect thereof shall be made directly to the Collateral Agent.

          (c)   Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Receivables to observe and perform all the conditions and obligations to be observed
and performed by it thereunder, all in accordance with the terms of any agreement giving rise
thereto. Neither the Collateral Agent nor any other Secured Party shall have any obligation or
liability under any Receivable (or any agreement giving rise thereto) by reason of or arising out
of this Agreement or the receipt by the Collateral Agent or any other Secured Party of any payment
relating thereto, nor shall the Collateral Agent or any other Secured Party be obligated in any
manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any
agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the
sufficiency of any payment received by it or as to the sufficiency of any performance by any party
thereunder, to present or file any claim, to take any action to enforce any performance or to
collect the payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

          6.3   Pledged Stock. (a) Unless an Event of Default shall have occurred and be continuing and the Collateral
Agent shall have given notice to the relevant Grantor of the Collateral Agent’s intent to exercise
its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to receive all
cash dividends paid in respect of the Pledged Stock and
all payments made in respect of the Pledged
Notes, in each case paid in the normal course of business of the relevant Issuer and consistent
with past practice, to the extent permitted in the Indenture, and to exercise all voting and
corporate or other organizational rights with respect to the Investment Property; provided,
however, that no vote shall be cast or corporate or other organizational right exercised or other
action taken which, in the Collateral Agent’s reasonable judgment, would impair the Collateral or
which would be inconsistent with or result in any violation of any provision of the Indenture, this
Agreement or any other Loan Document.

 

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          (b)   If an Event of Default shall occur and be continuing and the Collateral Agent shall give
notice of its intent to exercise such rights to the relevant Grantor or Grantors, (i) the
Collateral Agent shall have the right to receive any and all cash dividends, payments or other
Proceeds paid in respect of the Investment Property and make application thereof to the Obligations
in the order set forth in the Indenture, and (ii) any or all of the Investment Property shall be
registered in the name of the Collateral Agent or its nominee, and the Collateral Agent or its
nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to such
Investment Property at any meeting of shareholders of the relevant Issuer or Issuers or otherwise
and (y) any and all rights of conversion, exchange and subscription and any other rights,
privileges or options pertaining to such Investment Property as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization, recapitalization or other
fundamental change in the corporate or other organizational structure of any Issuer, or upon the
exercise by any Grantor or the Collateral Agent of any right, privilege or option pertaining to
such Investment Property, and in connection therewith, the right to deposit and deliver any and all
of the Investment Property with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Collateral Agent may determine), all
without liability except to account for property actually received by it, but the Collateral Agent
shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

          (c)   Each Grantor hereby authorizes and instructs each Issuer of any Investment Property
pledged by such Grantor hereunder to (i) comply with any instruction received by it from the
Collateral Agent in writing that (x) states that an Event of Default has occurred and is continuing
and (y) is otherwise in accordance with the terms of this Agreement, without any other or further
instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected
in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other
payments with respect to the Investment Property directly to the Collateral Agent.

          6.4   Proceeds to be Turned Over To Collateral Agent.
In addition to the rights of the Collateral Agent and the other Secured Parties specified
in Section 6.1 with respect to payments of Receivables, if an Event of Default shall occur and be
continuing, all Proceeds received by any Grantor consisting of cash, checks and
other near-cash items shall be held by such Grantor in trust for the Collateral Agent and the
other Secured Parties, segregated from other funds of such Grantor, and shall, forthwith upon
receipt by such Grantor, be turned over to the Collateral Agent in the exact form received by such
Grantor (duly indorsed by such Grantor to the Collateral Agent, if required). All Proceeds while
held by the Collateral Agent (or by such Grantor in trust for the Collateral Agent and the other
Secured Parties) shall continue to be held
as collateral security for all the Obligations and shall
not constitute payment thereof until applied as provided in Section 6.5.

 

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          6.5   Application of Proceeds.
If an Event of Default shall have occurred and be continuing, the Collateral Agent shall
apply all or any part of Proceeds constituting Collateral held by it, whether or not held in any
Collateral Deposit Account, in payment of the Secured Obligations in the order set forth in Section
6.10 of the Indenture.

          6.6   Code and Other Remedies.
If an Event of Default shall occur and be continuing, the Collateral Agent, on behalf of
the Secured Parties, may exercise, in addition to all other rights and remedies granted to them in
this Agreement and in any other instrument or agreement securing, evidencing or relating to the
Secured Obligations, all rights and remedies of a secured party under the New York UCC or any other
applicable law. Without limiting the generality of the foregoing, the Collateral Agent, without
demand of performance or other demand, presentment, protest, advertisement or notice of any kind
(except any notice required by law referred to below) to or upon any Grantor or any other Person
(all and each of which demands, defenses, advertisements and notices are hereby waived), may in
such circumstances (a) forthwith collect, receive, appropriate and realize upon the Collateral, or
any part thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or
otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the
foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s
board or office of the Collateral Agent or any other Secured Party or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit
or for future delivery without assumption of any credit risk, (b) give notice of sole control or
any other instruction under any Deposit Account Control Agreement or other control agreement with
any securities intermediary and take any action therein with respect to such Collateral, (c) with
respect to any Collateral consisting of Intellectual Property, on demand, to cause the security
interest granted herein to become an assignment, transfer and conveyance of any of or all such
Collateral by the applicable Grantors to the Collateral Agent or to license or sublicense, whether
general, special or otherwise, and whether on an exclusive or a nonexclusive basis, any such
Collateral throughout the world on such terms and conditions and in such manner as the Collateral
Agent shall reasonably determine (other than in violation of any then-existing licensing
arrangements to the extent that waivers thereunder cannot be obtained), and (d) concurrently with
written notice to the applicable Grantor, transfer and register in its name or in the name of its
nominee the whole or any part of the Investment Property, to exchange certificates or instruments
representing or evidencing Investment Property for certificates or instruments of smaller or larger
denominations, and subject to the notice requirements of Section 6.3, to exercise the voting and
all other rights as a holder with respect thereto, to collect and receive all cash dividends,
interest, principal and other
distributions made thereon and to otherwise act with respect to the Investment Property as
though the Collateral Agent was the outright owner thereof. The Collateral Agent or any other
Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted
by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby
waived and released. Each Grantor further agrees, at the Collateral Agent’s request, to assemble
the Collateral and make it available to the Collateral Agent at places which the Collateral Agent
shall reasonably select, whether at such Grantor’s premises or elsewhere.

 

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The Collateral Agent
shall apply the net proceeds of any action taken by it pursuant to this Section 6.6, after
deducting all reasonable costs and expenses of every kind incurred in connection therewith or
incidental to the care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of the Collateral Agent and the other Secured Parties hereunder,
including, without limitation, reasonable attorneys’ fees and disbursements, to the payment in
whole or in part of the Secured Obligations, in accordance with the provisions of the Indenture,
and only after such application and after the payment by the Collateral Agent of any other amount
required by any provision of law, including, without limitation, Section 9-615(a)(3) of the New
York UCC, need the Collateral Agent account for the surplus, if any, to any Grantor. To the extent
permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire
against the Collateral Agent or any other Secured Party arising out of the exercise by them of any
rights hereunder. If any notice of a proposed sale or other disposition of Collateral shall be
required by law, such notice shall be deemed reasonable and proper in every case if given at least
10 days before such sale or other disposition (it being understood that a shorter period may also
be reasonable given the circumstances). Until the Collateral Agent is able to effect a sale,
lease, or other disposition of Collateral, the Collateral Agent shall have the right to hold or use
Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of
preserving Collateral or its value or for any other purpose deemed appropriate by the Collateral
Agent. The Collateral Agent may, if it so elects, seek the appointment of a receiver or keeper to
take possession of Collateral and to enforce any of the Collateral Agent’s remedies (for the
benefit of the Collateral Agent and the Secured Parties), with respect to such appointment without
prior notice or hearing as to such appointment. Notwithstanding the foregoing, neither the
Collateral Agent nor any of the Secured Parties shall be required to (i) make any demand upon, or
pursue or exhaust any of their rights or remedies against, any Grantor, any other obligor,
guarantor, pledgor or any other Person with respect to the payment of the Secured Obligations or to
pursue or exhaust any of their rights or remedies with respect to any Collateral therefor or any
direct or indirect guarantee thereof, (ii) marshal the Collateral or any guarantee of the Secured
Obligations or to resort to the Collateral or any such guarantee in any particular order, or (iii)
effect a public sale of any Collateral.

          6.7
  Registration Rights.
(a) If the Collateral Agent shall determine to exercise its right to sell any or all of
the Pledged Stock pursuant to Section 6.6, and if in the opinion of the Collateral Agent it is
necessary or advisable to have the Pledged Stock, or that portion thereof to be sold, registered
under the provisions of the Securities Act, the relevant Grantor will cause the Issuer thereof to
(i) execute and deliver, and cause the directors and officers of such Issuer to execute and
deliver, all such instruments and documents, and do or cause to be done all such other acts as may
be, in the opinion of the Collateral Agent, necessary or advisable to register the Pledged Stock,
or that portion thereof to be sold, under the provisions of the Securities Act, (ii) use its best
efforts to cause the registration statement relating thereto to become effective and to remain
effective for a period of one year from the date of the first public offering of the Pledged Stock,
or that portion thereof to be sold, and (iii) make all amendments thereto and/or to the related
prospectus which, in the opinion of the Collateral Agent, are necessary or advisable, all in
conformity with the requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto. Each Grantor agrees to cause such Issuer to
comply with the provisions of the securities or “Blue Sky” laws of any and all jurisdictions which
the Collateral Agent shall designate and to make available to its security
holders, as soon as
practicable, an earnings statement (which need not be audited) which will satisfy the provisions of
Section 11(a) of the Securities Act.

 

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          (b)   Each Grantor recognizes that the Collateral Agent may be unable to, or may determine in
its absolute discretion not to, effect a registration of any or all the Pledged Stock, and may
determine to conduct one or more sales thereof to purchasers that would otherwise satisfy the
requirements of the Securities Act (for the purposes of this section, such sale a “Private Sale”).
Each Grantor acknowledges and agrees that any such Private Sale may result in prices and other
terms less favorable than if such sale were of Pledged Stock registered under the provisions of the
Securities Actand, notwithstanding such circumstances or any other circumstances, agrees that no
such Private Sale shall be deemed to have been made in a commercially unreasonable manner solely
because the Pledged Stock had not been registered under the provisions of the Securities Act. In no
circumstances shall the Collateral Agent shall be under any obligation to register Pledged Stock
under the provisions of the Securities Act, even if such Issuer would agree to do so.

          (c)   Each Grantor agrees to use its best efforts to do or cause to be done all such other acts
as may be necessary to make such sale or sales of all or any portion of the Pledged Stock pursuant
to this Section 6.7 valid and binding and in compliance with any and all other applicable
Requirements of Law. Each Grantor further agrees that a breach of any of the covenants contained
in this Section 6.7 will cause irreparable injury to the Collateral Agent and the other Secured
Parties, that the Collateral Agent and the other Secured Parties have no adequate remedy at law in
respect of such breach and, as a consequence, that each and every covenant contained in this
Section 6.7 shall be specifically enforceable against such Grantor, and such Grantor hereby waives
and agrees not to assert any defenses against an action for specific performance of such covenants
except for a defense that no Event of Default has occurred under the Indenture.

          6.8   Grantor’s Obligations Upon Default.
Upon the request of the Collateral Agent after the occurrence and during the continuance of
an Event of Default, each Grantor will:

          (a)   assemble and make available to the Collateral Agent the Collateral and all books and
records relating thereto at any place or places specified by the Collateral Agent, whether at a
Grantor’s premises or elsewhere; and

          (b)   subject in all cases to any lease or sub-lease agreements and any collateral access
agreements, permit the Collateral Agent, by the Collateral Agent’s representatives and agents, to
enter, occupy and use any premises where all or any part of the Collateral, or the books and
records relating thereto, or both, are located, to take possession of all or any part of the
Collateral or the books and records relating thereto, or both, to remove all or any part of the
Collateral or the books and records relating thereto, or both, and to conduct sales of the
Collateral, without any obligation to pay the Grantor for such use and occupancy.

 

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          6.9   Grant of Intellectual Property License.
For the purpose of enabling the Collateral Agent to exercise the rights and remedies under
this Agreement at such time as the Collateral Agent shall be lawfully entitled to exercise such
rights and remedies, each Grantor hereby (a) grants to the Collateral Agent, for the benefit of the
Collateral Agent and the Secured
Parties, an irrevocable, nonexclusive license (exercisable without
payment of royalty or other compensation to any Grantor) to use, license or sublicense, on such
terms and conditions as the Collateral Agent shall reasonably determine, any Intellectual Property
rights now owned or hereafter acquired by such Grantor, and wherever the same may be located, and
including in such license access to all media in which any of the licensed items may be recorded or
stored and to all computer software and programs used for the compilation or printout thereof, the
right to prosecute and maintain all Intellectual Property and the right to sue for past
infringement of the Intellectual Property and (b) irrevocably agrees that, at any time and from
time to time following the occurrence and during the continuance of an Event of Default, the
Collateral Agent may sell any of such Grantor’s Inventory directly to any person, including without
limitation persons who have previously purchased the Grantor’s Inventory from such Grantor and in
connection with any such sale or other enforcement of the Collateral Agent’s rights under this
Agreement, may (subject to any restrictions contained in applicable third-party licenses entered
into by a Grantor) sell Inventory which bears any Trademark owned by or licensed to such Grantor
and any Inventory that is covered by any Copyright owned by or licensed to such Grantor and the
Collateral Agent may finish any work in process and affix any Trademark owned by or licensed to
such Grantor and sell such Inventory as provided herein. The use of the license granted pursuant
to clause (a) of the preceding sentence to the Collateral Agent may be exercised only upon the
occurrence and, at the option of the Collateral Agent, during the continuance of an Event of
Default; provided, however, that any license, sublicense or other transaction
entered into by the Collateral Agent in accordance herewith shall be binding upon each Grantor
notwithstanding any subsequent cure of an Event of Default.

          6.10   Subordination
Each Grantor hereby agrees that, upon the occurrence and during the continuance of an Event of
Default, unless otherwise agreed by the Collateral Agent, all Indebtedness owing by it to any
Subsidiary of the Company shall be fully subordinated to the indefeasible payment in full in cash
of such Grantor’s Secured Obligations.

          6.11   Deficiency.
Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay its Secured Obligations and the fees and
disbursements of any attorneys employed by the Collateral Agent or any other Secured Party to
collect such deficiency.

SECTION 7.    THE COLLATERAL AGENT

          7.1   Collateral Agent’s Appointment as Attorney-in-Fact, etc.
(a) Each Grantor hereby irrevocably constitutes and appoints the Collateral Agent and any
officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to
take any and all appropriate action and to execute any and all documents and instruments which may
be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the
generality of the foregoing, each Grantor hereby gives the Collateral Agent the power and right, on
behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the
following:

 

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     (i)   in the name of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Receivable with respect to any other Collateral and file any
claim or take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Collateral Agent for the purpose of collecting any and all such
moneys due under any Receivable or with respect to any other Collateral whenever payable;

     (ii)   in the case of any Intellectual Property, execute and deliver, and have recorded,
any and all agreements, instruments, documents and papers as the Collateral Agent may
request to evidence the Collateral Agent’s and the other Secured Parties’ security interest
in such Intellectual Property and the goodwill and general intangibles of such Grantor
relating thereto or represented thereby;

     (iii)   pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or any insurance called for by the terms of this Agreement
and pay all or any part of the premiums therefor and the costs thereof;

     (iv)   execute, in connection with any sale provided for in Section 6.6 or 6.7, any
indorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral;

     (v)   direct any party liable for any payment under any of the Collateral to make payment
of any and all moneys due or to become due thereunder directly to the Collateral Agent or as
the Collateral Agent shall direct; ask or demand for, collect, and receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due at any time
in respect of or arising out of any Collateral; sign and indorse any invoices, freight or
express bills, bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in connection
with any of the Collateral; commence and prosecute any suits, actions or proceedings
at law or in equity in any court of competent jurisdiction to collect the Collateral or any
portion thereof and to enforce any other right in respect of any Collateral; defend any
suit, action or proceeding brought against such Grantor with respect to any Collateral;
settle, compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such discharges or releases as the Collateral Agent may deem appropriate;
assign any Copyright, Patent or Trademark (along with the goodwill of the business to which
any such Copyright, Patent or Trademark pertains), throughout the world for such term or
terms, on such conditions, and in such manner, as the Collateral Agent shall in its sole
discretion determine; and generally, sell, transfer, pledge and make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely as though
the Collateral Agent were the absolute owner thereof for all purposes, and do, at the
Collateral Agent’s option and such Grantor’s expense, at any time, or from time to time, all
acts and things which the Collateral Agent deems necessary to protect, preserve or realize
upon the Collateral and the Collateral Agent’s and the other Secured Parties’ security
interests therein and to effect the intent of this Agreement, all as fully and effectively
as such Grantor might do; and

 

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     (vi)   TO ACT AS ITS PROXY AND ATTORNEY-IN-FACT (AS SET FORTH IN SECTION 7.1 ABOVE) WITH
RESPECT TO ITS INVESTMENT PROPERTY, INCLUDING THE RIGHT TO VOTE SUCH INVESTMENT PROPERTY,
WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH
INVESTMENT PROPERTY, THE APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT
SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO
WHICH A HOLDER OF SUCH INVESTMENT PROPERTY WOULD BE ENTITLED (INCLUDING GIVING OR
WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND
VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE
NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH INVESTMENT PROPERTY ON THE
RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH INVESTMENT
PROPERTY OR ANY OFFICER OR AGENT THEREOF), ONLY UPON THE OCCURRENCE AND DURING THE
CONTINUANCE OF AN EVENT OF A DEFAULT AND UPON PRIOR WRITTEN NOTICE TO THE GRANTORS.

     Anything in this Section 7.1(a) to the contrary notwithstanding, the Collateral Agent agrees
that it will not exercise any rights under the power of attorney provided for in this Section
7.1(a) unless an Event of Default shall have occurred and be continuing.

          (b)   If any Grantor fails to perform or comply with any of its agreements contained herein, the
Collateral Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

          (c)   The expenses of the Collateral Agent incurred in connection with actions undertaken as
provided in this Section 7.1, together with interest thereon at a rate per annum
equal to the rate per annum at which interest would then be payable on the Notes, from the
date of payment by the Collateral Agent to the date reimbursed by the relevant Grantor, shall be
payable by such Grantor to the Collateral Agent on demand, or directly out of proceeds from any
relevant Collateral, at the Collateral Agent’s discretion.

          (d)   Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.

          7.2   Duty of Collateral Agent.
The Collateral Agent’s sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession, under Section 9.207 of the New York UCC or
otherwise, shall be to deal with it in the same manner as the Collateral Agent deals with similar
property for its own account. Neither the Collateral Agent, any other Secured Party nor any of
their respective officers, directors, employees or agents shall be liable for failure to demand,
collect or realize upon any of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any
other Person or to take any other action whatsoever with regard to the Collateral or any part
thereof.

 

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 The powers, rights and discretionary duties conferred on the Collateral Agent and the
other Secured Parties hereunder are solely to protect the Collateral Agent’s and the other Secured
Parties’ interests in the Collateral and shall not impose any duty upon the Collateral Agent or any
other Secured Party to exercise any such powers. The Collateral Agent and the other Secured
Parties shall be accountable only for amounts that they actually receive as a result of the
exercise of such powers, and neither they nor any of their officers, directors, employees or agents
shall be responsible to any Grantor for any act or failure to act hereunder, except for their own
gross negligence or willful misconduct. To the extent that applicable law imposes duties on the
Collateral Agent to exercise remedies in a commercially reasonable manner, each Grantor
acknowledges and agrees that it may be commercially reasonable for the Collateral Agent (i) to fail
to incur expenses deemed significant by the Collateral Agent to prepare Collateral for disposition
or otherwise to transform raw material or work in process into finished goods or other finished
products for disposition, (ii) to fail to obtain third party consents for access to Collateral to
be disposed of, or to obtain or, if not required by applicable law, to fail to obtain governmental
or third party consents for the collection or disposition of Collateral to be collected or disposed
of, (iii) to fail to exercise collection remedies against Account Debtors or other Persons
obligated on Collateral or to remove Liens on or any adverse claims against Collateral, (iv) to
exercise collection remedies against Account Debtors and other Persons obligated on Collateral
directly or through the use of collection agencies and other collection specialists, (v) to
advertise dispositions of Collateral through publications or media of general circulation, whether
or not the Collateral is of a specialized nature, (vi) to contact other Persons, whether or not in
the same business as such Grantor, for expressions of interest in acquiring all or any portion of
such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of
Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of
Collateral by utilizing internet sites that provide for the auction of assets of the types included
in the Collateral or that have the reasonable capacity of doing so, or that match buyers and
sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to
disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi) to
purchase insurance or credit enhancements to insure the Collateral Agent against risks of loss,
collection or disposition of Collateral or to provide to the Collateral Agent a guaranteed return
from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by the
Collateral Agent, to obtain the services of other brokers, investment bankers, consultants and
other professionals to assist the Collateral Agent in the collection or disposition of any of the
Collateral. Each Grantor acknowledges that the purpose of this Section 7.1 is to provide
non-exhaustive indications of what actions or omissions by the Collateral Agent may be commercially
reasonable in the Collateral Agent’s exercise of remedies against the Collateral and that other
actions or omissions by the Collateral Agent shall not be deemed commercially unreasonable solely
on account of not being indicated in this Section 7.1. Without limitation upon the foregoing,
nothing contained in this Section 7.1 shall be construed to grant any rights to any Grantor or to
impose any duties on the Collateral Agent that would not have been granted or imposed by this
Agreement or by applicable law in the
absence of this Section 7.1.

          7.3   Execution of Financing Statements and Other Documents.
Pursuant to any applicable law, each Grantor authorizes the Collateral Agent to file or
record financing statements and other filing or recording documents or instruments with respect to
the Collateral without the signature of such Grantor in such form and in such offices as the
Collateral Agent reasonably determines appropriate to perfect the security interests of the
Collateral Agent under this Agreement and, if applicable, to maintain Control of Collateral.

 

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 Each
Grantor authorizes the Collateral Agent to use the collateral description “all personal property”
in any such financing statements. Each Grantor hereby ratifies and authorizes the filing by the
Collateral Agent of any financing statement with respect to the Collateral made prior to the date
hereof; provided that such authorization will not impose any such duty upon the Collateral Agent.

          7.4   Secured Party Performance of Debtor Obligations.
Without having any obligation to do so, the Collateral Agent may, after the occurrence and
during the continuance of an Event of Default, perform or pay any obligation which any Grantor has
agreed to perform or pay in this Agreement and the Grantors shall reimburse the Collateral Agent
for any amounts paid by the Collateral Agent pursuant to this Section 7.4. The Grantors’
obligation to reimburse the Collateral Agent pursuant to the preceding sentence shall be a Secured
Obligation payable on demand, or directly out of proceeds from any relevant Collateral, at the
Collateral Agent’s discretion.

          7.5   Specific Performance of Certain Covenants.
Each Grantor acknowledges and agrees that a breach of any of the covenants contained in
Sections 4, 5, 6.1, 6.2, 6.3 and 6.4 will cause irreparable injury to the Collateral Agent and the
Holders, that the Collateral Agent and Holders have no adequate remedy at law in respect of such
breaches and therefore agrees, without limiting the right of the Collateral Agent or the Lenders to
seek and obtain specific performance of other obligations of the Grantors contained in this
Agreement, that the covenants of the Grantors contained in the Sections
referred to in this Section 7.5 shall, to the extent permitted under applicable law, be
specifically enforceable against the Grantors.

          7.6   Authority of Collateral Agent.
Each Grantor acknowledges that the rights and responsibilities of the Collateral Agent
under this Agreement with respect to any action taken by the Collateral Agent or the exercise or
non-exercise by the Collateral Agent of any option, voting right, request, judgment, discretionary
duty or other right or remedy provided for herein or resulting or arising out of this Agreement
shall, as between the Collateral Agent and the other Secured Parties, be governed by the Indenture
and by such other agreements with respect thereto as may exist from time to time among them, but,
as between the Collateral Agent and the Grantors, the Collateral Agent shall be conclusively
presumed to be acting as agent for the Secured Parties with full and valid authority so to act or
refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any
inquiry respecting such authority.

          7.7   Protections of Collateral Agent.
(a) For all purposes of this Agreement, the Collateral Agent shall not be deemed to have
notice or knowledge of any Event of Default or matter hereunder unless written notice of such event
is received by the Collateral Agent or an officer of the Collateral Agent responsible for the
administration of this Agreement has actual knowledge thereof.

          (b)   Except for action expressly required hereunder (excluding circumstances in which the
Collateral Agent has the ability but not an affirmative duty to act), nothing in this Agreement,
the Indenture or any Collateral Document shall be interpreted as giving the Collateral Agent
responsibility for or any duty concerning the validity, perfection, priority or enforceability of
any Lien or security interest in any Collateral or giving the Collateral Agent any
obligation to take any action to procure or maintain such validity, perfection, priority or enforceability.

 

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          (c)   Neither the Collateral Agent nor any of its affiliates, directors, officers, agents or
employees shall be liable for any action taken or not taken by it in connection herewith (i) with
the consent or at the request of a Person authorized hereunder, the Intercreditor Agreement or
under the Indenture or (ii) in the absence of its own gross negligence or willful misconduct.
Neither the Collateral Agent nor any of its affiliates, directors, officers, agents or employees
shall be responsible for or have any duty to ascertain, inquire into or verify (i) any statement,
warranty or representation made in connection with this Agreement; (ii) the performance or
observance of any of the covenants or agreements of a Grantor; (iii) the receipt of items required
to be delivered to the Collateral Agent; or (iv) the validity, effectiveness or genuineness of this
Agreement, the other Collateral Documents or any other instrument or writing furnished in
connection herewith. The Collateral Agent shall not incur any liability by acting in reliance upon
any notice, consent, certificate, statement, or other writing (which may be a bank wire, telex or
similar writing) reasonably believed by it to be genuine or to be signed by the proper party or
parties. The Collateral Agent shall in all cases be fully protected in acting, or in refraining
from acting, under this Agreement or any other Collateral Document or any other
document furnished in connection herewith or therewith in accordance with a written direction
or a request of an authorized Person pursuant to the terms of this Agreement or the Indenture.

          (d)   Any Person into which the Collateral Agent may be converted or merged, or with which it
may be consolidated, or to which it may sell or transfer its corporate trust assets as a whole or
substantially as a whole, or any Person resulting from any such conversion, merger, consolidation,
sale or transfer to which the Collateral Agent is a party, shall (provided it is otherwise
qualified to serve as the Collateral Agent hereunder) be and become a successor Collateral Agent
hereunder and be vested with all of the title to the Collateral and all of the trusts, powers,
discretions, immunities, privileges, estates, properties, rights, duties and obligations as was its
predecessor without the execution or filing of any instrument or any further act, deed or
conveyance on the part of any of the parties hereto or any other Person, anything herein to the
contrary notwithstanding.

          (e)   In entering into this Agreement, and in taking (or refraining from) any actions under or
pursuant to this Agreement, the Collateral Agent shall be protected by and shall enjoy all of the
rights, immunities, protections and indemnities granted to it or the Trustee under the
Intercreditor Agreement, the Indenture or the Collateral Documents.

SECTION 8.    MISCELLANEOUS

          8.1   Amendments in Writing.
None of the terms or provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except in accordance with Article IX of the Indenture.

 

27

          8.2   Notices.
All notices, requests and demands to or upon the Collateral Agent or any Grantor hereunder
shall be effected in the manner provided for in Section 13.2 of the Indenture.

          8.3   Waivers.
To the extent permitted under applicable law, each Grantor hereby waives notice of the time
and place of any public sale or the time after which any private sale or other disposition of all
or any part of the Collateral may be made. To the extent such notice may not be waived under
applicable law, any notice made shall be deemed reasonable if sent to the Grantors, addressed as
set forth in Section 8.2, at least ten days prior (or such shorter period as may be commercially
reasonable) to (i) the date of any such public sale or (ii) the time after which any such private
sale or other disposition may be made. To the maximum extent permitted by applicable law, each
Grantor waives all claims, damages, and demands against the Collateral Agent or any Secured Party
arising out of the repossession, retention or sale of the Collateral, except such as arise out of
the gross negligence or willful misconduct of the Collateral Agent or such Secured Party as finally
determined by a court of competent jurisdiction. To the extent it may lawfully do so, each Grantor
absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not
to assert against the Collateral Agent or any
Secured Party, any valuation, stay, appraisal, extension, moratorium, redemption or similar
laws and any and all rights or defenses it may have as a surety now or hereafter existing which,
but for this provision, might be applicable to the sale of any Collateral made under the judgment,
order or decree of any court, or privately under the power of sale conferred by this Agreement, or
otherwise. Except as otherwise specifically provided herein, each Grantor hereby waives
presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of
any kind in connection with this Agreement or any Collateral.

          8.4   No Waiver by Course of Conduct; Cumulative Remedies.
Neither the Collateral Agent nor any other Secured Party shall by any act (except by a
written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to
have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default.
No failure to exercise, nor any delay in exercising, on the part of the Collateral Agent or any
other Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No
single or partial exercise of any right, power or privilege hereunder shall preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. A waiver by the
Collateral Agent or any other Secured Party of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Collateral Agent or such other
Secured Party would otherwise have on any future occasion. The rights and remedies herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights
or remedies provided by law.

          8.5   Enforcement Expenses; Indemnification.
(a) Each Grantor agrees to pay or reimburse the Collateral Agent for all its reasonable
out-of-pocket costs and expenses incurred in enforcing or preserving any rights under this
Agreement and the other Collateral Documents to which such Guarantor is a party, including, without
limitation, the reasonable fees and disbursements of counsel to the Collateral Agent.

          (b)   Each Grantor agrees to pay, and to indemnify and save the Collateral Agent and the other
Secured Parties harmless from, any and all liabilities with respect to, or
resulting from any delay
in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be
payable with respect to any of the Collateral or in connection with any of the transactions
contemplated by this Agreement.

 

28

          (c)   Each Grantor agrees to pay, and to indemnify and save the Collateral Agent and the other
Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration of this Agreement
to the same extent the Company would be required to do so pursuant to Section 7.7 of the Indenture.

          (d)   The agreements in this Section 8.5 shall survive repayment of the Secured Obligations and
all other amounts payable under the Indenture and the Collateral Documents.

          8.6   Successors and Assigns.
This Agreement shall be binding upon the successors and assigns of each Grantor and shall
inure to the benefit of the Collateral Agent and the other Secured Parties and their successors and
assigns; provided that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the Collateral Agent.

          8.7   Counterparts.
This Agreement may be executed by one or more of the parties to this Agreement on any
number of separate counterparts (including by telecopy or other electronic transmission), and all
of said counterparts taken together shall be deemed to constitute one and the same instrument.

          8.8   Severability.
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

          8.9   Section Headings.
The Section headings used in this Agreement are for convenience of reference only and are
not to affect the construction hereof or be taken into consideration in the interpretation hereof.

          8.10   Integration.
This Agreement, the Indenture and the other Collateral Documents represent the agreement of
the Grantors, the Collateral Agent and the other Secured Parties with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or warranties by the
Collateral Agent or any other Secured Party relative to subject matter hereof and thereof not
expressly set forth or referred to herein or in the Indenture and the other Collateral Documents.

          8.11   Reinstatement.
This Agreement shall remain in full force and effect and continue to be effective should
any petition be filed by or against any Grantor for liquidation or reorganization, should any
Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or
should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets,
and shall continue to be effective or be reinstated, as the case may be, if at any time payment and
performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the
Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all
as though such payment or performance had not been made.

 

29

 In the event that any payment, or any
part thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be
reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

          8.12   GOVERNING LAW.
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.

          8.13   Submission To Jurisdiction; Waivers.
Each Grantor hereby irrevocably and unconditionally:

          (a)   submits for itself and its property in any legal action or proceeding relating to this
Agreement and the other Collateral Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the
Courts of the State of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof;

          (b)   consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

          (c)   agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Grantor at its address referred to in Section 8.2 or at such other address of
which the Collateral Agent shall have been notified pursuant thereto;

          (d)   agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

          (e)   waives, to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

          8.14   Acknowledgements.
Each Grantor hereby acknowledges that:

          (a)   it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Collateral Documents to which it is a party;

          (b)   neither the Collateral Agent nor any other Secured Party has any fiduciary relationship
with or duty to any Grantor arising out of or in connection with this Agreement or any of the other
Collateral Documents, and the relationship between the Grantors, on the one hand, and the
Collateral Agent and other Secured Parties, on the other hand, in connection herewith or therewith
is solely that of debtor and creditor; and

 

30

          (c)   no joint venture is created hereby or by the other Collateral Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Secured Parties or among the
Grantors and the Secured Parties.

          8.15   WAIVER OF JURY TRIAL.
EACH OF THE GRANTORS AND THE COLLATERAL AGENT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

          8.16   Additional Grantors.
Each Subsidiary of the Company that is required to become a party to this Agreement
pursuant to Section 3.12 of the Indenture shall become a Grantor for all purposes of this Agreement
upon execution and delivery by such Subsidiary of an Assumption Agreement in the form of Annex 1
hereto.

          8.17   Releases.
Collateral shall be released from the Lien created by this Agreement to the extent
provided in Section 10.7 of the Indenture.

          8.18   Intercreditor Agreement.
Notwithstanding anything to the contrary contained in this Agreement, the Liens,
security interests and rights granted pursuant to this Agreement or any other Collateral Document
with respect to the Collateral shall be as set forth in, and subject to the terms and conditions of
(and the exercise of any right or remedy by the Collateral Agent and the other Secured Parties
hereunder or thereunder shall be subject to the terms and conditions of), the Intercreditor
Agreement. In the event of any conflict between this Agreement, any other Collateral Document or
the Indenture and the Intercreditor Agreement, the Intercreditor Agreement shall control, and no
right, power, or remedy granted to the Collateral Agent or the other Secured Parties hereunder or
under the Indenture or any other Collateral Document shall be exercised by the Collateral Agent or
any other Secured Party, and no direction shall be given by the Collateral Agent or any other
Secured Party in contravention of the Intercreditor Agreement. Without limiting the generality of
the foregoing, and notwithstanding anything herein to the contrary, all rights and remedies of the
Collateral Agent (and the Secured Parties) shall be subject to the terms of the Intercreditor
Agreement, and, with respect to the Collateral, until the First Priority Obligations Payment Date
(as such term is defined in the Intercreditor Agreement), any obligation of the Company and any
other Grantor hereunder or under the Indenture or any other Collateral Document with respect to the
delivery or control of any Collateral, the notation of any lien on any certificate of title, bill
of lading or other document, the giving of any notice to any bailee or other Person, the provision
of voting rights or the obtaining of any consent of any Person shall be deemed to be satisfied if
the Company or such Grantor, as applicable, complies with the requirements of the similar provision
of the applicable First Priority Document (as such term is defined in the Intercreditor Agreement).
Until the First Priority Obligations Payment Date, the delivery of any Collateral to, or the
Control of any Collateral by, the First Priority
Representative (as such term is defined in the Intercreditor Agreement) pursuant to the First
Priority Documents shall satisfy any delivery or Control requirement hereunder or under any other
Collateral Document.

 

31

     IN WITNESS WHEREOF, each of the undersigned has caused this Pledge and Security Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	NEBRASKA BOOK COMPANY, INC.

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	SPECIALTY BOOKS, INC.

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President 	 
	 
	 	NBC TEXTBOOKS LLC

 	 
	 	By:  	/s/  Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	COLLEGE BOOKSTORES OF AMERICA, INC.

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	NET TEXTSTORE LLC

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	CAMPUS AUTHENTIC LLC

 	 
	 	By:  	/s/ Barry S. Major
 	 
	 	 	Name:  	Barry S. Major 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	WILMINGTON TRUST FSB,

as Collateral Agent

 	 
	 	By:  	/s/ Timothy P. Mowdy
 	 
	 	 	Name:  	Tim Mowdy 	 
	 	 	Title:  	Vice President 	 
	 

 

32

Schedule 2

DESCRIPTION OF INVESTMENT PROPERTY

Pledged Stock:

	 	 	 	 	 	 	 
	Issuer	 	Class of Stock	 	Stock Certificate No.	 	No. of Shares
	 	 	 	 	 	 	 

Pledged Notes:

	 	 	 	 	 
	Issuer	 	Payee	 	Principal Amount
	 	 	 	 	 

 

33

Schedule 3

FILINGS AND OTHER ACTIONS REQUIRED TO PERFECT SECURITY INTERESTS

 

34

Schedule 4

LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE

	 	 	 	 	 	 	 
	 	Grantor	 	 	 	Location	 
	 	 	 	 	 	 	 

 

35

Schedule 5

LOCATION OF INVENTORY AND EQUIPMENT

	 	 	 	 	 	 	 
	 	Grantor	 	 	 	Locations	 
	 	 	 	 	 	 	 

 

36

Schedule 6

COPYRIGHTS AND COPYRIGHT LICENSES

PATENTS AND PATENT LICENSES

TRADEMARKS AND TRADEMARK LICENSES

 

37

Schedule 7

EXISTING PRIOR LIENS

 

38

Schedule 8

VEHICLES

 

39

Schedule 9

COMMERCIAL TORT CLAIMS

 

40

Schedule 10

DEPOSIT ACCOUNTS; LOCK BOXES

 

41

Schedule 11

LETTER-OF-CREDIT RIGHTS; CHATTEL PAPER

 

42

Schedule 12

Local Store Accounts

 

ACKNOWLEDGEMENT AND CONSENT1

     The undersigned hereby acknowledges receipt of a copy of the Pledge and Security Agreement,
dated as of October 2, 2009 (the “Agreement”, capitalized terms defined in the Agreement
and used herein shall have the meanings given to them in the Agreement), made by the Grantors
parties thereto for the benefit of Wilmington Trust FSB, as Collateral Agent. The undersigned
agrees for the benefit of the Collateral Agent and the other Secured Parties as follows:

     1. The undersigned will be bound by the terms of the Agreement and will comply with such
terms insofar as such terms are applicable to the undersigned.

     2. The undersigned will notify the Collateral Agent promptly in writing of the occurrence of
any of the events described in Section 4.5(a) of the Agreement.

     3. The terms
of Sections 6.3(a) and 6.7 of the Agreement shall apply to it, mutatis mutandis,
with respect to all actions that may be required of it pursuant to Section 6.3(a) or 6.7 of the
Agreement.

	 	 	 	 	 
	 	[NAME OF ISSUER]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 	Address for Notices:

Attention:

Fax:

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

			
	1	 	This consent is necessary only with respect to any
Issuer which is not also a Grantor. This consent may be modified or eliminated
with respect to any Issuer that is not controlled by a Grantor. If a consent
is required, its execution and delivery should be included among the conditions
to the initial borrowing specified in the Indenture.

 

 

Annex 1 to

Pledge and Security Agreement

          ASSUMPTION AGREEMENT,
dated as of ____________, 20___, made by _____________________, a
____________ ____________ (the “Additional Grantor”), in favor of WILMINGTON TRUST FSB, as
Collateral Agent (in such capacity, the “Collateral Agent”) for the Secured Parties. All
capitalized terms not defined herein shall have the meaning ascribed to them in the Indenture
referred to below.

          W I T N E S S E T H :

          WHEREAS, , pursuant to the Indenture dated as of October 2, 2009 (as it may be amended or
modified from time to time, the “Indenture”), Nebraska Book Company, Inc. (the
“Company”) has issued its 10% Senior Secured Notes due 2011 (the “Notes”);

          WHEREAS, in connection with the Indenture, the Company and certain of its Affiliates (other
than the Additional Grantor) have entered into the Pledge and Security Agreement, dated as of
_________, 2009 (as further amended, supplemented or otherwise modified from time to time,
the “Security Agreement”) in favor of the Collateral Agent for the benefit of the Secured
Parties;

          WHEREAS, the Indenture requires the Additional Grantor to become a party to the Security
Agreement; and

          WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in
order to become a party to the Security Agreement;

          NOW, THEREFORE, IT IS AGREED:

          1. Pledge and Security Agreement. By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 8.16 of the Security Agreement, hereby
becomes a party to the Security Agreement as a Grantor thereunder with the same force and effect as
if originally named therein as a Grantor and, without limiting the generality of the foregoing,
hereby expressly assumes all obligations and liabilities of a Grantor thereunder. The information
set forth in Annex 1-A hereto is hereby added to the information set forth in Schedules
_________1 to the Security Agreement. The Additional Grantor hereby represents and
warrants that each of the representations and warranties contained in Section 3 of the Security
Agreement is true and correct on and as the date hereof (after giving effect to this Assumption
Agreement) as if made on and as of such date.

          2. Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed
and delivered as of the date first above written.

 

			
	1	 	Refer to each Schedule which needs to be supplemented.

 

 

	 	 	 	 	 
	 	[ADDITIONAL GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

EXHIBIT A

DDA Notification

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]