Document:

exv4w16

 

Exhibit 4.16

EXECUTION COPY

 

 

ALION SCIENCE AND TECHNOLOGY CORPORATION

Issuer

101/4 % Senior Notes due 2015

Subsidiary Guarantors

named herein

 

INDENTURE

Dated as of February 8, 2007

 

Wilmington Trust Company

Trustee

 

 

 

 

CROSS-REFERENCE TABLE

	 	 	 
	 TIA	 	Indenture
	Section	 	Section
	310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(b)
	 	7.08; 7.10
	(c)
	 	N.A.
	311(a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	N.A.
	312(a)
	 	2.05
	(b)
	 	10.03
	(c)
	 	10.03
	313(a)
	 	7.06
	(b)(1)
	 	N.A.
	(b)(2)
	 	7.06
	(d)
	 	7.06
	314(a)
	 	4.02; 4.09; 10.02
	(b)
	 	N.A.
	(c)(1)
	 	10.04
	(c)(2)
	 	10.04
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	10.05
	(f)
	 	4.09
	315(a)
	 	7.01
	(b)
	 	7.05; 10.02
	(c)
	 	7.01
	(d)
	 	7.01
	(e)
	 	6.11
	316(a)(last sentence)
	 	10.0
	(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	N.A.
	(b)
	 	6.07
	317(a)(1)
	 	6.08
	(a)(2)
	 	6.09
	(b)
	 	2.04
	318(a)
	 	10.01

N.A. means Not Applicable.

 

i

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	Article 1
	 
	Definitions and Incorporation by Reference
	 
	 	 	 	 	 	 
	SECTION 1.01.

	 	Definitions.
	 	 	1	 
	SECTION 1.02.

	 	Other Definitions.
	 	 	27	 
	SECTION 1.03.

	 	Incorporation by Reference of Trust Indenture Act
	 	 	27	 
	SECTION 1.04.

	 	Rules of Construction
	 	 	27	 
	
Article 2
	 
	The Securities
	 
	 	 	 	 	 	 
	SECTION 2.01.

	 	Form and Dating
	 	 	28	 
	SECTION 2.02.

	 	Execution and Authentication
	 	 	29	 
	SECTION 2.03.

	 	Registrar and Paying Agent
	 	 	29	 
	SECTION 2.04.

	 	Paying Agent To Hold Money in Trust
	 	 	30	 
	SECTION 2.05.

	 	Securityholder Lists
	 	 	30	 
	SECTION 2.06.

	 	Transfer and Exchange
	 	 	30	 
	SECTION 2.07.

	 	Replacement Securities
	 	 	30	 
	SECTION 2.08.

	 	Outstanding Securities
	 	 	30	 
	SECTION 2.09.

	 	Temporary Securities
	 	 	31	 
	SECTION 2.10.

	 	Cancellation
	 	 	31	 
	SECTION 2.11.

	 	Defaulted Interest
	 	 	31	 
	SECTION 2.12.

	 	CUSIP Numbers, ISINs, etc
	 	 	31	 
	SECTION 2.13.

	 	Issuance of Additional Securities
	 	 	32	 
	
 Article 3
	 
	Redemption
	 
	 	 	 	 	 	 
	SECTION 3.01.

	 	Notices to Trustee
	 	 	32	 
	SECTION 3.02.

	 	Selection of Securities to Be Redeemed
	 	 	32	 
	SECTION 3.03.

	 	Notice of Redemption
	 	 	33	 
	SECTION 3.04.

	 	Effect of Notice of Redemption
	 	 	33	 
	SECTION 3.05.

	 	Deposit of Redemption Price
	 	 	34	 
	SECTION 3.06.

	 	Securities Redeemed in Part
	 	 	34	 
	
Article 4
	 
	Covenants
	 
	 	 	 	 	 	 
	SECTION 4.01.

	 	Payment of Securities
	 	 	34	 
	SECTION 4.02.

	 	SEC Reports
	 	 	34	 
	SECTION 4.03.

	 	Limitation on Indebtedness
	 	 	35	 

 

ii

	 	 	 	 	 	 	 
	SECTION 4.04.

	 	Limitation on Restricted Payments
	 	 	39	 
	SECTION 4.05.

	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	43	 
	SECTION 4.06.

	 	Limitation on Sales of Assets and Subsidiary Stock
	 	 	44	 
	SECTION 4.07.

	 	Limitation on Affiliate Transactions
	 	 	47	 
	SECTION 4.08.

	 	Limitation on Line of Business
	 	 	48	 
	SECTION 4.09.

	 	Change of Control
	 	 	48	 
	SECTION 4.10.

	 	Limitation on Liens
	 	 	50	 
	SECTION 4.11.

	 	Limitation on Sale/Leaseback Transactions
	 	 	50	 
	SECTION 4.12.

	 	Future Guarantors
	 	 	50	 
	SECTION 4.13.

	 	Compliance Certificate
	 	 	50	 
	SECTION 4.14.

	 	Further Instruments and Acts
	 	 	50	 
	
Article 5
	 
	Successor Company
	 
	 	 	 	 	 	 
	SECTION 5.01.

	 	When Company May Merge or Transfer Assets
	 	 	51	 
	
 Article 6
	 
	Defaults and Remedies
	 
	 	 	 	 	 	 
	SECTION 6.01.

	 	Events of Default
	 	 	52	 
	SECTION 6.02.

	 	Acceleration
	 	 	54	 
	SECTION 6.03.

	 	Other Remedies
	 	 	55	 
	SECTION 6.04.

	 	Waiver of Past Defaults
	 	 	55	 
	SECTION 6.05.

	 	Control by Majority
	 	 	55	 
	SECTION 6.06.

	 	Limitation on Suits
	 	 	55	 
	SECTION 6.07.

	 	Rights of Holders to Receive Payment
	 	 	56	 
	SECTION 6.08.

	 	Collection Suit by Trustee
	 	 	56	 
	SECTION 6.09.

	 	Trustee May File Proofs of Claim
	 	 	56	 
	SECTION 6.10.

	 	Undertaking for Costs
	 	 	57	 
	SECTION 6.11.

	 	Waiver of Stay or Extension Laws
	 	 	57	 
	
Article 7
	 
	Trustee
	 
	 	 	 	 	 	 
	SECTION 7.01.

	 	Duties of Trustee
	 	 	57	 
	SECTION 7.02.

	 	Rights of Trustee
	 	 	58	 
	SECTION 7.03.

	 	Individual Rights of Trustee
	 	 	59	 
	SECTION 7.04.

	 	Trustee’s Disclaimer
	 	 	60	 
	SECTION 7.05.

	 	Notice of Defaults
	 	 	60	 
	SECTION 7.06.

	 	Reports by Trustee to Holders
	 	 	60	 
	SECTION 7.07.

	 	Compensation and Indemnity
	 	 	60	 
	SECTION 7.08.

	 	Replacement of Trustee
	 	 	61	 

 

iii

	 	 	 	 	 	 	 
	SECTION 7.09.

	 	Successor Trustee by Merger
	 	 	62	 
	SECTION 7.10.

	 	Eligibility; Disqualification
	 	 	62	 
	SECTION 7.11.

	 	Preferential Collection of Claims Against Company
	 	 	62	 
	
Article 8
	 
	Discharge of Indenture; Defeasance
	 
	 	 	 	 	 	 
	SECTION 8.01.

	 	Discharge of Liability on Securities; Defeasance
	 	 	62	 
	SECTION 8.02.

	 	Conditions to Defeasance
	 	 	63	 
	SECTION 8.03.

	 	Application of Trust Money
	 	 	64	 
	SECTION 8.04.

	 	Repayment to Company
	 	 	65	 
	SECTION 8.05.

	 	Indemnity for Government Obligations
	 	 	65	 
	SECTION 8.06.

	 	Reinstatement
	 	 	65	 
	
Article 9
	 
	Amendments
	 
	 	 	 	 	 	 
	SECTION 9.01.

	 	Without Consent of Holders
	 	 	65	 
	SECTION 9.02.

	 	With Consent of Holders
	 	 	66	 
	SECTION 9.03.

	 	Compliance with Trust Indenture Act
	 	 	67	 
	SECTION 9.04.

	 	Revocation and Effect of Consents and Waivers
	 	 	67	 
	SECTION 9.05.

	 	Notation on or Exchange of Securities
	 	 	68	 
	SECTION 9.06.

	 	Trustee To Sign Amendments
	 	 	68	 
	SECTION 9.07.

	 	Payment for Consent
	 	 	68	 
	
Article 10
	 
	Subsidiary Guaranties
	 
	 	 	 	 	 	 
	SECTION 10.01.

	 	Guaranties
	 	 	69	 
	SECTION 10.02.

	 	Limitation on Liability
	 	 	70	 
	SECTION 10.03.

	 	Successors and Assigns
	 	 	71	 
	SECTION 10.04.

	 	No Waiver
	 	 	71	 
	SECTION 10.05.

	 	Modification
	 	 	71	 
	SECTION 10.06.

	 	Release of Subsidiary Guarantor
	 	 	71	 
	SECTION 10.07.

	 	Contribution
	 	 	72	 
	
Article 11
	 
	Miscellaneous
	 
	 	 	 	 	 	 
	SECTION 11.01.

	 	Trust Indenture Act Controls
	 	 	72	 
	SECTION 11.02.

	 	Notices
	 	 	72	 
	SECTION 11.03.

	 	Communication by Holders with Other Holders
	 	 	73	 
	SECTION 11.04.

	 	Certificate and Opinion as to Conditions Precedent
	 	 	73	 
	SECTION 11.05.

	 	Statements Required in Certificate or Opinion
	 	 	74	 

 

iv

	 	 	 	 	 	 	 
	SECTION 11.06.

	 	When Securities Disregarded
	 	 	74	 
	SECTION 11.07.

	 	Rules by Trustee, Paying Agent and Registrar
	 	 	74	 
	SECTION 11.08.

	 	Legal Holidays
	 	 	74	 
	SECTION 11.09.

	 	Governing Law
	 	 	74	 
	SECTION 11.10.

	 	No Recourse Against Others
	 	 	74	 
	SECTION 11.11.

	 	Successors
	 	 	75	 
	SECTION 11.12.

	 	Multiple Originals
	 	 	75	 
	SECTION 11.13.

	 	Table of Contents; Headings
	 	 	75	 

Rule 144A/Regulation S Appendix

	 	 	 
	Exhibit 1 —

	 	Form of Initial Security
	 
	 	 
	Exhibit A —

	 	Form of Exchange Security or Private Exchange Security

 

 

     INDENTURE dated as of February 8, 2007, among ALION SCIENCE AND
TECHNOLOGY CORPORATION, a Delaware corporation (the “Company”), the
Subsidiary Guarantors (as defined herein) and WILMINGTON TRUST COMPANY, a
Delaware banking corporation, as Trustee (the “Trustee”).

          Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Initial Securities and, if and when issued pursuant to a
registered exchange for Initial Securities, the Exchange Securities and if and when issued pursuant
to a private exchange for Initial Securities, the Private Exchange Securities:

Article 1

Definitions and Incorporation by Reference

          SECTION 1.01. Definitions.

          “Additional Assets” means (1) any property, plant or equipment used 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 another Restricted Subsidiary; or (3) Capital Stock
constituting a minority interest in any Person that at such time is a Restricted Subsidiary;
provided, however, that any such Restricted Subsidiary described in clause (2) or
(3) above is primarily engaged in a Related Business.

          “Additional Securities” means Securities issued under this Indenture after the Issue Date and
in compliance with Sections 2.13 and 4.03, it being understood that any Securities issued in
exchange for or replacement of any Initial Security issued on the Issue Date shall not be an
Additional Security, including any such Securities issued pursuant to a Registration Rights
Agreement.

          “Adjusted EBITDA” means, for any period, Consolidated Net Income for such period plus
(a) without duplication and to the extent deducted in determining such Consolidated Net Income, the
sum of (i) Consolidated Interest Expense for such period, (ii) consolidated income tax expense for
such period, (iii) all amounts attributable to depreciation and amortization for such period and
(iv) any non-cash charges or expenses (other than the write-down of current assets) for such
period, including (A) non-cash expenses associated with the recognition of the difference between
the fair market value of the Junior Warrants and the exercise price of the Junior Warrants and (B)
non-cash expenses with respect to the Junior Warrants and accretion of the Junior Warrants and
minus (b) without duplication all cash payments made during such period on account of reserves,
restructuring charges and other non-cash charges added to Consolidated Net Income pursuant to
clause (a)(iv) above in a previous period.

          “Adjusted Treasury Rate” means, with respect to any redemption date, (i) the yield, under the
heading which represents the average for the immediately

 

2

preceding week, appearing in the most recently published statistical release designated “H.15(519)” or
any successor publication which is published weekly by the Board of Governors of the Federal
Reserve System and which establishes yields on actively traded United States Treasury securities
adjusted to constant maturity under the caption “Treasury Constant Maturities”, for the maturity
corresponding to the Comparable Treasury Issue (if no maturity is within three months before or
after February 1, 2011, yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated
or extrapolated from such yields on a straight line basis, rounding to the nearest month) or (ii)
if such release (or any successor release) is not published during the week preceding the
calculation date or does not contain such yields, the rate per year equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for such redemption date, in each case
calculated on the third Business Day immediately preceding the redemption date, plus 0.50 %.

          “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. For purposes of Sections 4.04, 4.06 and
4.07 only, “Affiliate” shall also mean any beneficial owner of Capital Stock representing 5% or
more of the total voting power of the Voting Stock (on a fully diluted basis) of the Company or of
rights or warrants to purchase such Capital Stock (whether or not currently exercisable) and any
Person who would be an Affiliate of any such beneficial owner pursuant to the first sentence
hereof.

          “Applicable Premium” means with respect to a Security at any redemption date, the greater of
(1) 1.00% of the principal amount of such Security and (2) the excess, if any, of (A) an amount
equal to the present value at such redemption date of (i) the redemption price of such Security on
February 1, 2011 (such redemption price being described in the fourth paragraph of section 5 of the
Securities, exclusive of any accrued interest) plus (ii) all required remaining scheduled interest
payments due on such Security through February 1, 2011 (but excluding accrued and unpaid interest
to the redemption date), computed using a discount rate equal to the Adjusted Treasury Rate, over
(B) the principal amount of such Security on such redemption date.

          “Asset Disposition” means any sale, lease, transfer or other disposition (or series of related
sales, leases, transfers or dispositions) by the Company or any Restricted Subsidiary, including
any disposition by means of a merger, consolidation or similar transaction (each referred to for
the purposes of this definition as a “disposition”), of

     (1) any shares of Capital Stock of a Restricted Subsidiary (other than directors’
qualifying shares or shares required by applicable law to be held by a Person other than
the Company or a Restricted Subsidiary);

 

3

     (2) all or substantially all the assets of any division or line of business of the
Company or any Restricted Subsidiary; or

     (3) any other assets of the Company or any Restricted Subsidiary outside of the
ordinary course of business of the Company or such Restricted Subsidiary

other than, in the case of clauses (1), (2) and (3) above, (A) a disposition by a Restricted
Subsidiary to the Company or by the Company or a Restricted Subsidiary to a Restricted Subsidiary,
(B) for purposes of Section 4.06 only, (i) a disposition that constitutes a Restricted Payment (or
would constitute a Restricted Payment but for the exclusions from the definition thereof) and that
is not prohibited by Section 4.04 and (ii) a disposition of all or substantially all the assets of
the Company in accordance with Section 5.01, (C) a disposition of assets with a Fair Market Value
of less than $500,000, (D) a disposition of cash or Temporary Cash Investments and (E) the creation
of a Lien (but not the sale or other disposition of the property subject to such Lien).

          “Attributable Debt” in respect of a Sale/Leaseback Transaction means, as at the time of
determination, the present value (discounted at the interest rate borne by the Securities,
compounded annually) 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); provided, however, that if such Sale/Leaseback
Transaction results in a Capital Lease Obligation, the amount of Indebtedness represented thereby
will be determined in accordance with the definition of “Capital Lease Obligation”.

          “Average Life” means, as of the date of determination, with respect to any Indebtedness, 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 or redemption or
similar payment with respect to such Indebtedness multiplied by the amount of such payment by (2)
the sum of all such payments.

          “Board of Directors” with respect to a Person means the Board of Directors of such Person or
any committee thereof duly authorized to act on behalf of such Board. Unless otherwise specified,
the Board of Directors refers to the Board of Directors of the Company.

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

          “Capital Lease Obligation” means an obligation that is required to be classified and accounted
for as a capital lease for financial reporting purposes in accordance with GAAP, and the amount of
Indebtedness represented by such obligation shall be the capitalized amount of such obligation
determined in accordance with GAAP; and the Stated Maturity thereof shall be the date of the last
payment of rent or any other amount due under such lease prior to the first date upon which such
lease may be terminated by the lessee without payment of a penalty. For purposes of Section 4.10, a

 

4

Capital Lease Obligation will be deemed to be secured by a Lien on the property being leased.

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

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

     (1) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), other than the Permitted Holder, is or becomes the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act, except that such person shall be deemed to
have “beneficial ownership” of all shares that any such person 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; provided, however, that the Permitted Holder beneficially owns (as defined
in 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, in the aggregate a
lesser percentage of the total voting power of the Voting Stock of the Company than such
other person and does not have the right or ability by voting power, contract or otherwise
to elect or designate for election a majority of the Board of Directors of the Company (for
the purposes of this clause (1), such other person shall be deemed to beneficially own any
Voting Stock of a specified person held by a parent entity, if such other person is the
beneficial owner (as defined above in this clause (1)), directly or indirectly, of more
than 35% of the voting power of the Voting Stock of such parent entity and the Permitted
Holder beneficially owns (as defined in this proviso), directly or indirectly, in the
aggregate a lesser percentage of the voting power of the Voting Stock of such parent entity
and does not have the right or ability by voting power, contract or otherwise to elect or
designate for election a majority of the board of directors of such parent entity);

     (2) individuals who on the Issue Date constituted the Board of Directors of the
Company (together with any new directors whose election by such Board of Directors of the
Company or whose nomination for election by the shareholders of the Company was approved by
a vote of 66-2/3% of the directors of the Company, then still in office who were either
directors on the Issue Date or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board of Directors of the
Company then in office;

     (3) the adoption of a plan relating to the liquidation or dissolution of the Company;
and

     (4) the merger or consolidation of the Company with or into another Person or the
merger of another Person with or into the Company, or the sale of

 

5

all or substantially all the assets of the Company (determined on a consolidated
basis) to another Person other than (A) a transaction in which the survivor or transferee
is a Person that is controlled by the Permitted Holders or (B) a transaction following
which (i) in the case of a merger or consolidation transaction, holders of securities that
represented 100% of the Voting Stock of the Company immediately prior to such transaction
(or other securities into which such securities are converted as part of such merger or
consolidation transaction) own directly or indirectly at least a majority of the voting
power of the Voting Stock of the surviving Person in such merger or consolidation
transaction immediately after such transaction and in substantially the same proportion as
before the transaction and (ii) in the case of a sale of assets transaction, each
transferee becomes an obligor in respect of the Securities and a Subsidiary of the
transferor of such assets.

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

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

          “Comparable Treasury Issue” means, with respect to any redemption date, the United States
Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining
term of the Securities from such redemption date to February 1, 2011, that would be utilized, at
the time of selection and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of a maturity most nearly equal to February 1, 2011.

          “Comparable Treasury Price” means, with respect to any redemption date, if clause (ii) of the
Adjusted Treasury Rate is applicable, the average of three, or such lesser number as is obtained by
the Trustee, Reference Treasury Dealer Quotations for such redemption date.

          “Consolidated Coverage Ratio” for any period means the ratio of (a) the aggregate amount of
Adjusted EBITDA for such period to (b) Consolidated Interest Expense for such period payable in
cash.

          “Consolidated Interest Expense” means, for any period, the sum of (a) the interest expense
(excluding fees and any interest expense attributable to any accretion in the value of the Junior
Warrants but including imputed interest expense in respect of Capital Lease Obligations and
Synthetic Lease Obligations) of the Company and the Restricted Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP, plus (b) any interest accrued during
such period in respect of Indebtedness of the Company or any Restricted Subsidiary that is required
to be capitalized rather than included in consolidated interest expense for such period in
accordance with GAAP. For purposes of the foregoing, interest expense shall be determined after
giving effect to any net payments made or received by the Company or any Restricted Subsidiary with

 

6

respect to Interest Rate Agreements. Consolidated Interest Expense does not include 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.

          “Consolidated Net Income” means, for any period, the net income or loss of the Company and the
Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP;
provided that (a) there shall be excluded, in each case to the extent included in determining the
net income or loss of the Company and the Restricted Subsidiaries for such period on a consolidated
basis under GAAP, (i) the income of any Restricted Subsidiary to the extent that the declaration
or payment of dividends or similar distributions by the Restricted Subsidiary of that income is not
at the time permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, statute, rule or governmental regulation applicable to such Restricted
Subsidiary, (ii) the income or loss of any Person accrued prior to the date it becomes a Restricted
Subsidiary or is merged into or consolidated with the Company or any Restricted Subsidiary or the
date that such Person’s assets are acquired by the Company or any Restricted Subsidiary, (iii) any
gains attributable to sales of assets out of the ordinary course of business and the transaction
costs in connection with such sales and (iv) any extraordinary or non-recurring gains or other
income items and (b) there shall be added back, in each case to the extent deducted in determining
the net income or loss of the Company and the Restricted Subsidiaries for such period on a
consolidated basis under GAAP, (i) any non-cash compensation charge or expense including any such
charge or expense relating to stock appreciation rights and phantom stock plans, (ii) any non-cash
contributions to the ESOP, (iii) amortization of goodwill and other intangible assets, (iv) any
losses attributable to sales of assets out of the ordinary course of business and the transaction
costs in connection with such sales and (v) any extraordinary or non-recurring losses or charges.

          Notwithstanding the foregoing, for the purposes of Section 4.04 only, there shall be excluded
from Consolidated Net Income any repurchases, repayments or redemptions of Investments, proceeds
realized on the sale of Investments or return of capital of the Company or a Restricted Subsidiary
to the extent such repurchases, repayments, redemptions, proceeds or returns increase the amount of
Restricted Payments permitted under Section 4.04(a)(3)(D).

          “Currency Agreement” means any foreign exchange contract, currency swap agreement or other
similar agreement with respect to currency values.

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

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

 

7

     (1) matures or is mandatorily redeemable (other than redeemable only for Capital Stock
of such Person which is not itself Disqualified Stock) pursuant to a sinking fund
obligation or otherwise;

     (2) is convertible or exchangeable at the option of the holder for Indebtedness or
Disqualified Stock; or

     (3) is mandatorily redeemable or must be purchased upon the occurrence of certain
events or otherwise, in whole or in part,

in each case on or prior to the six-month anniversary of the Stated Maturity of the Securities;
provided, however, that any Capital Stock that would not constitute Disqualified
Stock but for provisions thereof giving holders thereof the right to require such Person to
purchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change of control”
occurring prior to the six-month anniversary of the Stated Maturity of the Securities shall not
constitute Disqualified Stock if (A) the “asset sale” or “change of control” provisions applicable
to such Capital Stock are not more favorable to the holders of such Capital Stock than the terms
applicable to the Securities in Sections 4.06 and 4.09 of this Indenture and (B) any such
requirement only becomes operative after compliance with such terms applicable to the Securities,
including the purchase of any Securities tendered pursuant thereto.

          The amount of any Disqualified Stock that does not have a fixed redemption, repayment or
repurchase price will be calculated in accordance with the terms of such Disqualified Stock as if
such Disqualified Stock were redeemed, repaid or repurchased on any date on which the amount of
such Disqualified Stock is to be determined pursuant to this Indenture; provided,
however, that if such Disqualified Stock could not be required to be redeemed, repaid or
repurchased at the time of such determination, the redemption, repayment or repurchase price will
be the book value of such Disqualified Stock as reflected in the most recent financial statements
of such Person.

          “Domestic Restricted Subsidiary” means any Restricted Subsidiary other than a Foreign
Subsidiary.

          “ESOP” means the employee benefit plan entitled “The Alion Science and Technology Corporation
Employee Ownership, Savings and Investment Plan” adopted and maintained by the Company and as in
effect on the Issue Date and as may be amended as required by a change in applicable law after the
Issue Date.

          “ESOP Plan Documents” means collectively, the governing agreements and other documents and
instruments of the ESOP, in each case as in effect on the Issue Date and as may be amended as
required by a change in applicable law after the Issue Date.

          “ESOT” means the trust entitled “The Alion Science and Technology Corporation Employee
Ownership, Savings and Investment Trust” and adopted and maintained by the Company pursuant to the
applicable ESOP Plan Documents, as in

 

8

effect on the Issue Date and as may be amended as required by a change in applicable law after
the Issue Date.

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

          “Exchange Securities” means the debt securities of the Company issued pursuant to this
Indenture in exchange for, and in an aggregate principal amount not to exceed, the Initial
Securities, in compliance with the terms of the Registration Rights Agreement.

          “Fair Market Value” means, with respect to any asset or property, the price which could be
negotiated in an arm’s length, free market transaction, for cash, between a willing seller and a
willing and able buyer, neither of whom is under undue pressure or compulsion to complete the
transaction. Fair Market Value will be determined in good faith by the Board of Directors, whose
determination will be conclusive and evidenced by a resolution of such Board of Directors.

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

          “Former JSC Participant” means the employees of the Company or any of its Subsidiaries that
primarily provided services under the Joint Spectrum Center (JSC) Engineering Support Services
contract and were voluntarily or involuntarily terminated during the JSC Termination Period in
connection with the Company’s failure to receive the follow-on support contract with respect to
such contract.

          “GAAP” means generally accepted accounting principles in the United States of America as in
effect as of the Issue Date, including those set forth in

     (1) the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants;

     (2) statements and pronouncements of the Financial Accounting Standards Board;

     (3) such other statements by such other entity as approved by a significant segment of
the accounting profession; and

     (4) the rules and regulations of the SEC governing the inclusion of financial
statements (including pro forma financial statements) in periodic reports
required to be filed pursuant to Section 13 of the Exchange Act, including opinions and
pronouncements in staff accounting bulletins and similar written statements from the
accounting staff of the SEC.

All ratios and computations based on GAAP contained in this Indenture shall be computed in
conformity with GAAP.

 

9

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any 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 Person (whether arising by virtue of partnership arrangements, or
by agreements 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 the purpose 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” shall not include endorsements for
collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has
a corresponding meaning. The term “Guarantor” shall mean any Person Guaranteeing any obligation.

          “Guaranty Agreement” means a supplemental indenture, in a form reasonably satisfactory to the
Trustee, pursuant to which a Subsidiary Guarantor guarantees the Company’s obligations under this
Indenture and with respect to the Securities on the terms provided for in Article 10 of this
Indenture.

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

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

          “IIT” means Illinois Institute of Technology, an Illinois not-for-profit corporation.

          “IITRI” means IIT Research Institute, a not-for-profit Illinois corporation controlled by IIT.

          “Incur” means issue, assume, Guarantee, incur or otherwise become liable for;
provided, however, that any Indebtedness of a Person existing at the time such
Person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise)
shall be deemed to be Incurred by such Person at the time it becomes a Restricted Subsidiary. The
term “Incurrence” when used as a noun shall have a correlative meaning. Solely for purposes of
determining compliance with Section 4.03:

     (1) amortization of debt discount or the accretion of principal with respect to a
non-interest bearing or other discount security;

     (2) the payment of regularly scheduled interest in the form of additional Indebtedness
of the same instrument or the payment of regularly

 

10

scheduled dividends on Capital Stock in the form of additional Capital Stock of the
same class and with the same terms; and

     (3) the obligation to pay a premium in respect of Indebtedness arising in connection
with the issuance of a notice of redemption or the making of a mandatory offer to purchase
such Indebtedness,

will not be deemed to be the Incurrence of Indebtedness.

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

     (1) the principal in respect of (A) indebtedness of such Person for money borrowed and
(B) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the
payment of which such Person is responsible or liable, including, in each case, any premium
on such indebtedness to the extent such premium has become due and payable;

     (2) all Capital Lease Obligations of such Person and all Attributable Debt in respect
of Sale/Leaseback Transactions entered into by such Person;

     (3) all obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations of such Person and all obligations of such
Person under any title retention agreement (but excluding any accounts payable or other
liability to trade creditors arising in the ordinary course of business);

     (4) all obligations of such Person for the reimbursement of any obligor on any letter
of credit, bankers’ acceptance or similar credit transaction (other than obligations with
respect to letters of credit securing obligations (other than obligations described in
clauses (1) through (3) above) entered into in the ordinary course of business of such
Person to the extent such letters of credit are not drawn upon or, if and to the extent
drawn upon, such drawing is reimbursed no later than the tenth Business Day following
payment on the letter of credit);

     (5) the amount of all obligations of such Person with respect to the redemption,
repayment or other repurchase of any Disqualified Stock of such Person or, with respect to
any Preferred Stock of any Subsidiary of such Person, the principal amount of such
Preferred Stock to be determined in accordance with this Indenture (but excluding, in each
case, any accrued dividends);

     (6) all obligations of the type referred to in clauses (1) through (5) of other
Persons and all dividends of other Persons for the payment of which, in either case, such
Person is responsible or liable, directly or indirectly, as obligor, guarantor or
otherwise, including by means of any Guarantee;

     (7) all obligations of the type referred to in clauses (1) through (6) of other
Persons secured by any Lien on any property or asset of such Person

 

11

(whether or not such obligation is assumed by such Person), the amount of such
obligation being deemed to be the lesser of the Fair Market Value of such property or
assets and the amount of the obligation so secured; and

     (8) to the extent not otherwise included in this definition, Hedging Obligations of
such Person.

Notwithstanding the foregoing, in connection with the purchase by the Company or any Restricted
Subsidiary of any business, the term “Indebtedness” will exclude post-closing payment adjustments
to which the sellers may become entitled to the extent such payment is determined by a final
closing balance sheet or such payment depends on the performance of such business after the
closing; provided, however, that, at the time of closing, the amount of any such
payment is not determinable and, to the extent such payment thereafter becomes fixed and
determined, the amount is paid within 30 days thereafter.

          The amount of Indebtedness of any Person at any date shall be the outstanding balance at such
date of all obligations as described above but without duplication or double-counting of any
Indebtedness described in two or more clauses above; provided, however, that in the
case of Indebtedness sold at a discount, the amount of such Indebtedness at any time will be the
accreted value thereof at such time. The Junior Warrants shall constitute Indebtedness of the
Company.

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

          “Independent Qualified Party” means an investment banking firm, accounting firm or appraisal
firm of national standing; provided, however, that such firm is not an Affiliate of
the Company.

          “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement
or other financial agreement or arrangement with respect to exposure to interest rates.

          “Investment” in any Person means any direct or indirect advance, loan (other than advances to
customers in the ordinary course of business that are recorded as accounts receivable on the
balance sheet of the lender) or other extensions of credit (including by way of Guarantee or
similar arrangement) 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. If the Company or any Restricted Subsidiary issues, sells or otherwise disposes of any
Capital Stock of a Person that is a Restricted Subsidiary such that, after giving effect thereto,
such Person is no longer a Restricted Subsidiary, any Investment by the Company or any Restricted
Subsidiary in such Person remaining after giving effect thereto will be deemed to be a new
Investment at such time. The acquisition by the Company or any Restricted Subsidiary of a Person
that holds an Investment in a third Person will be deemed to be an

 

12

Investment by the Company or such Restricted Subsidiary in such third Person at such time.
Except as otherwise provided for herein, the amount of an Investment shall be its Fair Market Value
at the time the Investment is made and without giving effect to subsequent changes in value.

          For purposes of the definition of “Unrestricted Subsidiary”, the definition of “Restricted
Payment” and Section 4.04, “Investment” shall include

     (1) the portion (proportionate to the Company’s equity interest in such Subsidiary) of
the Fair Market Value of the net assets of any Subsidiary of the Company at the time that
such Subsidiary is designated an Unrestricted Subsidiary; provided,
however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary,
the Company shall be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary equal to 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 of
such Subsidiary at the time of such redesignation; and

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

     “Issue Date” means February 8, 2007.

     “JSC Termination Period” means the period beginning on July 1, 2006 and ending on December 31,
2006.

     “Junior Subordinated Note” means the Company’s 6% Seller Subordinated Notes due December 20,
2010 in an outstanding aggregate principal amount on the Issue Date of approximately $39,900,000,
together with additional Seller Subordinated Notes issued in lieu of cash interest thereon in
accordance with the terms thereof.

     “Junior Warrants” means an aggregate of 1,080,437 detachable redeemable common stock warrants
issued to the holders of the Junior Subordinated Notes.

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

     “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).

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

 

 

13

          “Net Available Cash” from an Asset Disposition means cash payments received therefrom
(including any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise and proceeds from the sale or other disposition of any
securities 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 such properties or assets or received in any other non-cash form), in each
case net of

     (1) all direct costs relating to such Asset Disposition, including legal, investment
banking, accounting, title and recording tax expenses, commissions and other fees and
expenses incurred, and all Federal, state, provincial, foreign and local taxes required to
be accrued as a liability under GAAP, as a consequence of such Asset Disposition;

     (2) all payments (whether principal, interest, premium or other) made on any
Indebtedness which is secured by any assets subject to such Asset Disposition or required
to be repaid as a result of the Asset Disposition, in accordance with the terms of any Lien
upon or other security agreement of any kind with respect to such assets or other agreement
with respect to such Indebtedness, or which 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 Restricted Subsidiaries as a result of such Asset Disposition;

     (4) the deduction of appropriate amounts provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the property or other assets
disposed in such Asset Disposition and retained by the Company or any Restricted Subsidiary
after such Asset Disposition, including indemnification liabilities, purchase price
adjustments, and employee benefit plan liabilities; and

     (5) any portion of the purchase price from an Asset Disposition placed in escrow,
whether as a reserve for adjustment of the purchase price, for satisfaction of indemnities
in respect of such Asset Disposition or otherwise in connection with that Asset
Disposition; provided, however, that upon the termination of that escrow,
Net Available Cash will be increased by any portion of funds in the escrow that are
released to the Company or any Restricted Subsidiary.

          “Net Cash Proceeds”, with respect to any issuance or sale of Capital Stock or Indebtedness,
means the cash proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and
other fees actually incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.

 

14

          “Obligations” means with respect to any Indebtedness, all obligations for principal, premium,
interest, penalties, fees, indemnifications, reimbursements, and other amounts payable pursuant to
the documentation governing such Indebtedness.

          “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.

          “Officers’ Certificate” means a certificate signed by an Officer.

          “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. Any such
opinion may contain customary carveouts and assumptions, may rely upon factual information received
from the Company, the Subsidiaries and other third parties, and may be qualified as to knowledge
(as customarily defined) with respect to any conclusions or opinions that are factual in nature.

          “Permitted Acquisition” means the acquisition by the Company or any Restricted Subsidiary of
all or substantially all of the assets of a Person, a line of business or division of a Person or
not less than 100% of the Capital Stock of a Person (the “Acquired Entity”); provided that (a) such
acquisition was not preceded by an unsolicited tender offer for such Capital Stock by, or proxy
contest initiated by, the Company or any Subsidiary of the Company; (b) the Acquired Entity or the
assets, line of business or division acquired shall be in a similar line of business as that of the
Company and its Subsidiaries as conducted during the current and most recent calendar year; (c) (i)
the Acquired Entity or division is located, and substantially all of its operations are conducted,
in the United States of America or (ii) substantially all of the assets acquired are located in the
United States; (d) at the time of such transaction both before and after giving effect thereto, no
Default or Event of Default shall have occurred and be continuing; and (e) the Company shall have
delivered to the Trustee a certificate of the chief financial officer of the Company confirming
compliance with clauses (a) through (d) above, together with all relevant financial information for
the Acquired Entity, acquired line of business or division or acquired assets and reasonably
detailed calculations demonstrating satisfaction of the requirements set forth in clauses (a)
through (d) above.

          “Permitted ESOP Transactions” means the redemption or repurchase for value of any Capital
Stock of the Company as a result of distributions by the ESOT to participants in the ESOP to
satisfy diversification requirements under applicable law, including section 401(a)(28) of the
Code.

          “Permitted Holder” means the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Trust.

 

15

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

     (1) the Company, a Restricted Subsidiary or a Person that 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 Temporary Cash Investments;

     (4) receivables owing to the Company or any Restricted Subsidiary if created or
acquired in the ordinary course of business and payable or dischargeable in accordance with
customary trade terms; 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 made in the ordinary course of business consistent
with past practices of the Company or such Restricted Subsidiary;

     (7) 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;

     (8) any Person to the extent such Investment represents the non-cash portion of the
consideration received for (i) an Asset Disposition as permitted pursuant to Section 4.06
or (ii) a disposition of assets not constituting an Asset Disposition;

     (9) any Person where such Investment was acquired by the Company or any of its
Restricted Subsidiaries (a) in exchange for any other Investment or accounts receivable
held by the Company or any such Restricted Subsidiary in connection with or as a result of
a bankruptcy, workout, reorganization or recapitalization of the issuer of such other
Investment or accounts receivable or (b) as a result of a foreclosure by the Company or any
of its Restricted Subsidiaries with respect to any secured Investment or other transfer of
title with respect to any secured Investment in default;

 

16

     (10) any Person to the extent such Investments consist of prepaid expenses, negotiable
instruments held for collection and lease, utility and workers’ compensation, performance
and other similar deposits made in the ordinary course of business by the Company or any
Restricted Subsidiary;

     (11) any Person to the extent such Investments consist of Hedging Obligations
otherwise permitted under Section 4.03;

     (12) any Person to the extent such Investment exists on the Issue Date, and any
extension, modification or renewal of any such Investments existing on the Issue Date, but
only to the extent not involving additional advances, contributions or other Investments of
cash or other assets or other increases thereof (other than as a result of the accrual or
accretion of interest or original issue discount or the issuance of pay-in-kind securities,
in each case, pursuant to the terms of such Investment as in effect on the Issue Date).

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

     (1) Liens securing Indebtedness Incurred to finance the construction, purchase or
lease of, or repairs, improvements or additions to, property, plant or equipment of such
Person; provided, however, that the Lien may not extend to any other
property owned by such Person or any of its Restricted Subsidiaries at the time the Lien is
Incurred (other than assets and property affixed or appurtenant thereto), and the
Indebtedness (other than any interest thereon) secured by the Lien may not be Incurred more
than 180 days after the later of the acquisition, completion of construction, repair,
improvement, addition or commencement of full operation of the property subject to the
Lien;

     (2) Liens to secure Indebtedness to the extent the principal amount of such
Indebtedness, when added together with all other Secured Indebtedness of the Company and
its Restricted Subsidiaries then outstanding, would not cause the Secured Indebtedness
Ratio to exceed 3.5 to 1.0;

     (3) Liens existing on the Issue Date;

     (4) Liens on property or shares of Capital Stock of another Person at the time such
other Person becomes a Subsidiary of such Person; provided, however, that
the Liens may not extend to any other property owned by such Person or any of its
Restricted Subsidiaries (other than assets and property affixed or appurtenant thereto),
and the Indebtedness (other than any interest thereon) secured by the Lien may not be
Incurred more than 180 days after the time such other Person becomes a Subsidiary of such
Person;

     (5) Liens on property at the time such Person or any of its Subsidiaries acquires the
property, including any acquisition by means of a merger or consolidation with or into such
Person or a Subsidiary of such Person; provided, however, that the Liens
may not extend to any other property owned by such Person or any of its Restricted
Subsidiaries (other than assets and property affixed

 

17

or appurtenant thereto), and the Indebtedness (other than any interest thereon)
secured by the Lien may not be Incurred more than 180 days after the acquisition of the
property subject to such Lien;

     (6) Liens securing Indebtedness or other obligations of a Subsidiary of such Person
owing to such Person or a Restricted Subsidiary of such Person;

     (7) Liens securing Hedging Obligations so long as such Hedging Obligations are
permitted to be Incurred under this Indenture;

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

     (9) 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;

     (10) Liens in favor of the Company or any Subsidiary Guarantor or Liens on assets of a
Restricted Subsidiary of the Company entered that is not a guarantor in favor solely of
another Restricted Subsidiary of the Company that is not a Subsidiary Guarantor;

     (11) Liens to secure any Refinancing (or successive Refinancings) as a whole, or in
part, of any Indebtedness secured by any Lien referred to in the foregoing clause (1), (3),
(4) or (5); provided, however, that:

     (A) such new Lien shall be limited to all or part of the same property and
assets that secured or, under the written agreements pursuant to which the original
Lien arose, could secure the original Lien (plus improvements and accessions to,
such property or proceeds or distributions thereof); and

     (B) the Indebtedness secured by such Lien at such time is not increased to any
amount greater than the sum of (i) the outstanding principal amount or, if greater,
committed amount of the Indebtedness described under clause (1), (3), (4) or (5) at
the time the original Lien became a Permitted Lien and (ii) an amount necessary to
pay any fees and expenses, including premiums, related to such refinancing,
refunding, extension, renewal or replacement;

     (12) Liens securing Indebtedness of Foreign Subsidiaries permitted to be Incurred
under this Indenture, to the extent such Liens relate only to assets and properties of
Foreign Subsidiaries;

     (13) zoning restrictions, easements, rights-of-way, restrictions on use of real
property and other similar encumbrances incurred in the ordinary course of

 

18

business which, in the aggregate, do not materially detract from the value of the
property subject thereto or interfere with the ordinary conduct of the business of the
Company or any Restricted Subsidiary;

     (14) licenses, leases or subleases granted by the Company or any Restricted Subsidiary
to third persons in the ordinary course of business not interfering in any material respect
with the business of the Company or any Restricted Subsidiary;

     (15) deposits to secure the performance of bids, trade contracts (other than for
Indebtedness), leases (other than Capital Lease Obligations), statutory obligations, surety
and appeal bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

     (16) Liens arising out of judgments or awards in respect of which the Company or any
Restricted Subsidiary shall in good faith be prosecuting an appeal or proceedings for
review in respect of which there shall be secured a subsisting stay of execution pending
such appeal or proceedings; provided that the aggregate amount of all such judgments or
awards (and any cash and the fair market value of any property subject to such Liens) does
not exceed $30,000,000 at any time outstanding;

     (17) Liens for taxes not yet due or which are being contested in good faith by
appropriate proceedings and with respect to which the Company shall have set aside on its
books adequate reserves in accordance with GAAP and such contest operates to suspend
collection of the contested tax and enforcement of the applicable Lien;

     (18) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business and securing obligations that are not due
and payable or which are being contested in good faith by appropriate proceedings and with
respect to which the Company shall have set aside on its books adequate reserves in
accordance with GAAP and such contest operates to suspend collection of the contested
obligations and enforcement of the applicable Lien;

     (19) pledges and deposits made in the ordinary course of business in compliance with
workmen’s compensation, unemployment insurance and other social security laws or
regulations; and

     (20) other Liens securing obligations incurred in the ordinary course of business
which obligations, in the aggregate, do not exceed $5,000,000 at any time.

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

 

19

          “Permitted Subordinated Indebtedness” means Indebtedness of the Company or any Restricted
Subsidiary (a) that is not Secured Indebtedness, (b) that constitutes Subordinated Obligations, (c)
that is not incurred while a Default exists, (d) the incurrence of which would not result in a
Default and (e) that does not mature and does not require any payment of principal prior to the
final maturity date of the Securities.

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

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

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

          “Qualified Capital Stock” of a Person means Capital Stock of such Person other than
Disqualified Capital Stock; provided, however, that such Capital Stock shall not be
deemed Qualified Capital Stock to the extent sold to a Subsidiary of such Person or financed,
directly or indirectly, using funds (1) borrowed from such Person or any Subsidiary of such Person
or (2) contributed, extended, guaranteed or advanced by such Person or any Subsidiary of such
Person (including, in respect of any employee stock ownership or benefit plan). Unless otherwise
specified, Qualified Capital Stock refers to Qualified Capital Stock of the Company.

          “Qualified Equity Offering” means any issuance and sale of common stock by the Company.
Notwithstanding the foregoing, the term “Qualified Equity Offering” shall not include:

     (1) any issuance and sale with respect to the Company’s common stock registered on
Form S-4 or Form S-8; or

     (2) any issuance and sale to any Subsidiary of the Company.

          “Quotation Agent” means the Reference Treasury Dealer selected by the Trustee after
consultation with the Company.

          “Reference Treasury Dealer” means Credit Suisse Securities (USA) LLC and its successors and
assigns and two other nationally recognized investment banking firms selected by the Company that
are primary U.S. Government securities dealers.

 

20

          “Reference Treasury Dealer Quotations” means with respect to each Reference Treasury Dealer
and any redemption date, the average, as calculated by the Quotation Agent, of the bid and asked
prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal
amount, quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third Business Day immediately preceding such redemption date.

          “Refinance” means, in respect of any Indebtedness, to refinance, extend, renew, refund, repay,
prepay, redeem, purchase, defease or retire, or to issue other Indebtedness in exchange or
replacement for, such Indebtedness. “Refinanced” and “Refinancing” shall have correlative
meanings.

          “Refinancing Indebtedness” means Indebtedness that Refinances any Indebtedness of the Company
or any Restricted Subsidiary existing on the Issue Date or Incurred in compliance with this
Indenture, including Indebtedness that Refinances Refinancing Indebtedness; provided,
however, that:

     (1) such Refinancing Indebtedness has a Stated Maturity no earlier than the Stated
Maturity of the Indebtedness being Refinanced;

     (2) such 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 has an aggregate principal amount (or if Incurred
with original issue discount, an aggregate issue price) that is equal to or less than the
aggregate principal amount (or if Incurred with original issue discount, the aggregate
accreted value) then outstanding (plus fees and expenses, including any premium and
defeasance costs) under the Indebtedness being Refinanced; and

     (4) if the Indebtedness being Refinanced is subordinated in right of payment to the
Securities or a Subsidiary Guarantee, such Refinancing Indebtedness, (a) if Refinancing the
Junior Subordinated Note or the Junior Warrants, is subordinated in right of payment to the
Securities and (b) if Refinancing any other Indebtedness, is subordinated in right of
payment to the Securities at least to the same extent as the Indebtedness being Refinanced;

provided further, however, that Refinancing Indebtedness shall not include
(A) Indebtedness of a Subsidiary (other than a Subsidiary Guarantor) that Refinances Indebtedness
of the Company or (B) Indebtedness of the Company or a Restricted Subsidiary that Refinances
Indebtedness of an Unrestricted Subsidiary.

          “Registration Rights Agreement” means the Registration Rights Agreement dated February 8,
2007, among the Company, the Subsidiary Guarantors and Credit Suisse Securities (USA) LLC.

 

21

          “Related Business” means any business in which the Company or any of the Restricted
Subsidiaries was engaged on the Issue Date and any business reasonably related, ancillary or
complementary to such business and any business providing products or services to any government,
governmental authority or agency, department or bureau thereof.

          “Restricted Payment” with respect to any Person means:

     (1) the declaration or payment of any dividends or any other distributions of any sort
in respect of its Capital Stock (including any payment in connection with any merger or
consolidation involving such Person) or similar payment to the direct or indirect holders
of its Capital Stock (other than (A) dividends or distributions payable solely in its
Capital Stock (other than Disqualified Stock), (B) dividends or distributions payable
solely to the Company or a Restricted Subsidiary and (C) pro rata dividends or other
distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to minority
stockholders (or owners of an equivalent interest in the case of a Subsidiary that is an
entity other than a corporation));

     (2) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of any Capital Stock of the Company held by any Person (other than by
a Restricted Subsidiary) or of any Capital Stock of a Restricted Subsidiary held by any
Affiliate of the Company (other than by a Restricted Subsidiary), including in connection
with any merger or consolidation and including the exercise of any option to exchange any
Capital Stock (other than into Capital Stock of the Company that is not Disqualified
Stock);

     (3) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value, prior to scheduled maturity, scheduled repayment or scheduled sinking
fund payment of any Subordinated Obligations of the Company or any Subsidiary Guarantor
(other than (A) from the Company or a Restricted Subsidiary or (B) the purchase,
repurchase, redemption, defeasance or other acquisition or retirement of 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 such
purchase, repurchase, redemption, defeasance or other acquisition or retirement); or

     (4) the making of any Investment (other than a Permitted Investment) in any Person.

          “Restricted Subsidiary” means any Subsidiary of the Company that is not an Unrestricted
Subsidiary.

          “Sale/Leaseback Transaction” means an arrangement relating to property owned by the Company or
a Restricted Subsidiary on the Issue Date or thereafter acquired by the Company or a Restricted
Subsidiary whereby the Company or a

 

22

Restricted Subsidiary transfers such property to a Person and the Company or a Restricted
Subsidiary leases it from such Person.

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

          “Secured Indebtedness” means any Indebtedness of the Company and the Restricted Subsidiaries
secured by a Lien.

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

          “Senior Indebtedness” means with respect to any Person:

     (1) Indebtedness of such Person, whether outstanding on the Issue Date or thereafter
Incurred; and

     (2) all other Obligations of such Person (including interest accruing on or after the
filing of any petition in bankruptcy or for reorganization relating to such Person whether
or not post-filing interest is allowed in such proceeding) in respect of Indebtedness
described in clause (1) above

unless, in the case of clauses (1) and (2), in the instrument creating or evidencing the same or
pursuant to which the same is outstanding, it is provided that such Indebtedness or other
Obligations are subordinate in right of payment to the Securities or the Subsidiary Guaranty of
such Person, as the case may be; provided, however, that Senior Indebtedness shall
not include:

     (A) any obligation of such Person to the Company or any Subsidiary;

     (B) any liability for Federal, state, local or other taxes owed or owing by
such Person;

     (C) any accounts payable or other liability to trade creditors arising in the
ordinary course of business;

     (D) any Indebtedness or other Obligation of such Person which is subordinate
or junior in any respect to any other Indebtedness or other Obligation of such
Person; or

     (E) that portion of any Indebtedness which at the time of Incurrence is
Incurred in violation of this Indenture.

          “Secured Indebtedness Ratio” means, as of any date of determination, the ratio of (a) all
Secured Indebtedness of the Company and its Restricted Subsidiaries outstanding on such date,
including any Secured Indebtedness to be Incurred on such date, to (b) the aggregate amount of
Adjusted EBITDA for the period of the most recent four consecutive fiscal quarters ending at least
45 days prior to the date of such determination.

 

23

          “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.

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

          “Stated Maturity” means, with respect to any security, the date specified in such security as
the fixed date on which the final payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision (but excluding any provision providing for
the repurchase of such security at the option of the holder thereof upon the happening of any
contingency unless such contingency has occurred).

          “Subordinated Obligation” means, with respect to a Person, any Indebtedness of such Person
(whether outstanding on the Issue Date or thereafter Incurred) which is subordinate or junior in
right of payment to the Securities or a Subsidiary Guaranty of such Person, as the case may be,
pursuant to a written agreement to that effect.

          “Subsidiary” means, with respect to any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of Voting Stock is
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.

          “Subsidiary Guarantor” means each Subsidiary of the Company that executes this Indenture as a
guarantor on the Issue Date and each other Subsidiary of the Company that thereafter guarantees the
Securities pursuant to the terms of this Indenture.

          “Subsidiary Guaranty” means a Guarantee by a Subsidiary Guarantor of the Company’s obligations
under this Indenture and with respect to the Securities.

          “Synthetic Lease” means, as to any Person, any lease (including leases that may be terminated
by the lessee at any time) of any property (whether real, personal or mixed) (a) that is accounted
for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains
ownership of the property so leased for U.S. federal income tax purposes, other than any such lease
under which such Person is the lessor.

          “Synthetic Lease Obligations” shall mean, as to any Person, an amount equal to the capitalized
amount of the remaining lease payments under any Synthetic Lease that would appear on a balance
sheet of such person in accordance with GAAP if such obligations were accounted for as Capital
Lease Obligations.

 

24

          “Temporary Cash Investments” means any of the following:

     (1) any investment in direct obligations of the United States of America or any agency
thereof or obligations guaranteed by the United States of America or any agency thereof;

     (2) investments in demand and time deposit accounts, certificates of deposit and money
market deposits maturing within 180 days of the date of acquisition thereof issued by a
bank or trust company which is organized under the laws of the United States of America,
any State thereof or any foreign country recognized by the United States of America, and
which bank or trust company has capital, surplus and undivided profits aggregating in
excess of $50,000,000 (or the foreign currency equivalent thereof) and has outstanding debt
which is rated “A” (or such similar equivalent rating) or higher by at least one nationally
recognized statistical rating organization (as defined in Rule 436 under the Securities
Act) or any money-market fund sponsored by a registered broker dealer or mutual fund
distributor;

     (3) repurchase obligations with a term of not more than 30 days for underlying
securities of the types described in clause (1) above entered into with a bank meeting the
qualifications described in clause (2) above;

     (4) investments in commercial paper, maturing not more than 90 days after the date of
acquisition, issued by a corporation (other than an Affiliate of the Company) organized and
in existence under the laws of the United States of America or any foreign country
recognized by the United States of America with a rating at the time as of which any
investment therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher)
according to Standard and Poor’s;

     (5) investments in securities with maturities of six months or less from the date of
acquisition issued or fully guaranteed by any state, commonwealth or territory of the
United States of America, or by any political subdivision or taxing authority thereof, and
rated at least “A” by Standard & Poor’s or “A” by Moody’s; and

     (6) investments in money market funds that invest substantially all their assets in
securities of the types described in clauses (1) through (5) above.

          “Term B Senior Credit Facility” means the Credit Agreement, dated as of August 4, 2004, by and
among, the Company, the Subsidiaries of the Company identified therein as guarantors, the lenders
from time to time party thereto, and Credit Suisse, as Administrative Agent and collateral agent,
together with the related documents thereto (including the term loans and revolving loans
thereunder, and any letters of credit and reimbursement obligations related thereto, any guarantees
and security documents), as amended, extended, renewed, restated, refunded, replaced, refinanced,
supplemented, modified or otherwise changed (in whole or in part, and without limitation as to
amount

 

25

(including incremental term loans), terms, conditions, covenants and other provisions) from
time to time, and any one or more other agreements (and related documents) governing Indebtedness,
including indentures, incurred to Refinance, substitute, supplement or add to (including increasing
the amount available for borrowing or adding or removing any Person as a borrower or guarantor
thereunder), in whole or in part, the borrowings and commitments then outstanding or permitted to
be outstanding under such Credit Agreement or one or more successors to such Credit Agreement or
one or more new credit agreements or other agreements.

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

          “Total Assets” means the total assets of the Company and its Restricted Subsidiaries,
determined on a consolidated basis in accordance with GAAP, as shown on the most recent balance
sheet of the Company.

          “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) to be an Unrestricted Subsidiary unless such Subsidiary
or any of its Subsidiaries owns any Capital Stock or Indebtedness of, or holds any Lien on any
property of, the Company or any other Subsidiary of the Company that is not a Subsidiary of the
Subsidiary to be so designated; provided, however, that either (A) the Subsidiary
to be so designated has total assets of $1,000 or less or (B) if such Subsidiary has assets greater
than $1,000, such designation would be permitted under Section 4.04. The Board of Directors of the
Company may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided,
however, that immediately after giving effect to such designation (A) the Company could
Incur $1.00 of additional Indebtedness under Section 4.03(a) and (B) no Default shall have occurred
and be continuing. Any such designation by the Board of Directors of the Company shall be
evidenced to the Trustee by promptly filing with the Trustee a copy of the resolution of the Board
of Directors of the Company giving effect to such designation

 

26

and an Officers’ Certificate certifying that such designation complied with the foregoing
provisions.

          “U.S. Dollar Equivalent” means with respect to any monetary amount in a currency other than
U.S. dollars, at any time for determination thereof, the amount of U.S. dollars obtained by
converting such foreign currency involved in such computation into U.S. dollars at the spot rate
for the purchase of U.S. dollars with the applicable foreign currency as published in The Wall
Street Journal in the “Exchange Rates” column under the heading “Currency Trading” on the date
two Business Days prior to such determination.

          Except as described in Section 4.03, whenever it is necessary to determine whether the Company
has complied with any covenant in this Indenture or a Default has occurred and an amount is
expressed in a currency other than U.S. dollars, such amount will be treated as the U.S. Dollar
Equivalent determined as of the date such amount is initially determined in such currency.

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

          “Voting Stock” of a Person means all classes of Capital Stock of such Person then outstanding
and normally entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof.

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

 

27

          SECTION 1.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Affiliate Transaction”
	 	 	4.07	(a)
	“Bankruptcy Law”
	 	 	6.01	 
	“Change of Control Offer”
	 	 	4.09	(b)
	“covenant defeasance option”
	 	 	8.01	(b)
	“Custodian”
	 	 	6.01	 
	“Event of Default”
	 	 	6.01	 
	“Guaranteed Obligations”
	 	 	10.01	 
	“Initial Lien”
	 	 	4.10	 
	“legal defeasance option”
	 	 	8.01	(b)
	“Offer”
	 	 	4.06	(b)
	“Offer Amount”
	 	 	4.06	(c)(2)
	“Offer Period”
	 	 	4.06	(c)(2)
	“Paying Agent”
	 	 	2.03	 
	“Purchase Date”
	 	 	4.06	(c)(1)
	“Registrar”
	 	 	2.03	 
	“Successor Company”
	 	 	5.01	(a)(1)

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

          “Commission” means the SEC;

          “indenture securities” means the Securities and the Subsidiary Guaranties;

          “indenture security holder” means a Securityholder;

          “indenture to be qualified” means this Indenture;

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

          “obligor” on the indenture securities means the Company, each Subsidiary Guarantor and any
other obligor on the indenture securities.

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

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

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

 

28

     (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) secured Indebtedness shall not be deemed to be subordinate or junior to any other
secured Indebtedness merely because it has a junior priority with respect to the same
collateral;

     (8) 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;

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

     (10) all references to the date the Securities were originally issued shall refer to
the Issue Date.

Article 2

The Securities

          SECTION 2.01. Form and Dating. Provisions relating to the Initial Securities, the
Private Exchange Securities and the Exchange Securities are set forth in the Rule 144A/Regulation
S/IAI Appendix attached hereto (the “Appendix”) which is hereby incorporated in, and expressly made
part of, this Indenture. The Initial Securities and the Trustee’s certificate of authentication
shall be substantially in the form of Exhibit 1 to the Appendix which is hereby incorporated in,
and expressly made a part of, this Indenture. The Exchange Securities, the Private Exchange
Securities and the Trustee’s certificate of authentication shall be substantially in the form of
Exhibit A, which is hereby incorporated in and expressly made a part of this Indenture. The
Securities may have notations, legends or endorsements required by law, stock exchange rule,
agreements to which the Company is subject, if any, or usage (provided that any such notation,
legend or endorsement is in a form acceptable to the Company). Each Security shall be dated the
date of its authentication. The terms of the Securities set forth in the Appendix and Exhibit A
are part of the terms of this Indenture.

 

29

          SECTION 2.02. Execution and Authentication. At least 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 signs the
certificate of authentication on the Security. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

          On the Issue Date, the Trustee shall authenticate and deliver $250,000,000 of 101/4% Senior
Notes due 2015 and, at any time and from time to time thereafter, the Trustee shall authenticate
and deliver Securities for original issue in an aggregate principal amount specified in such order,
in each case upon a written order of the Company signed by at least one Officer. Such 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, in the case of an issuance of Additional Securities
pursuant to Section 2.13 after the Issue Date, shall certify that such issuance is in compliance
with Section 4.03.

          The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate the Securities. Unless limited by the terms of such appointment, an authenticating
agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture
to authentication by the Trustee includes authentication by such agent. An authenticating agent
has the same rights as any Registrar, Paying Agent or agent for service of notices and demands.

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

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

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

 

30

          SECTION 2.04. Paying Agent To Hold Money in Trust. Prior to each due date of the
principal and interest on any Security, the Company shall deposit with the Paying Agent a sum
sufficient to pay such principal and interest when so becoming due. The Company shall require each
Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust
for the benefit of Securityholders or the Trustee all money held by the Paying Agent for the
payment of principal of or interest on the Securities and shall notify the Trustee of any default
by the Company in making any such payment. 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 to pay all money held by it to the Trustee and to
account for any funds disbursed by the Paying Agent. Upon complying with this Section, the Paying
Agent shall have no further liability for the money delivered to the Trustee.

          SECTION 2.05. Securityholder Lists. The Trustee shall preserve in as current a form
as is reasonably practicable the most recent list available to it of the names and addresses of
Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in
writing at least five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders and the Company shall otherwise
comply with TIA § 312(a).

          SECTION 2.06. Transfer and Exchange. The Securities shall be issued in registered
form and shall be transferable only upon the surrender of a Security for registration of transfer.
When a Security is presented to the Registrar or a co-registrar with a request to register a
transfer, the Registrar shall register the transfer as requested if the requirements of this
Indenture and Section 8-401(a) of the Uniform Commercial Code are met. When Securities are
presented to the Registrar or a co-registrar with a request to exchange them for an equal principal
amount of Securities of other denominations, the Registrar shall make the exchange as requested if
the same requirements are met.

          SECTION 2.07. Replacement Securities. If a mutilated Security is surrendered to the
Registrar or if the Holder of a Security claims that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security
if the requirements of Section 8-405 of the Uniform Commercial Code are met 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. The Company and
the Trustee may charge the Holder for their expenses in replacing a Security.

          Every replacement Security is an additional Obligation of the Company.

          SECTION 2.08. Outstanding Securities. Securities outstanding at any time are all
Securities authenticated by the Trustee except for those canceled by it,

 

31

those delivered to it for cancellation and those described in this Section as not outstanding.
A Security does not cease to be outstanding because the Company or an Affiliate of the Company
holds the Security.

          If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a
protected purchaser (as defined in Section 8-303 of the Uniform Commercial Code).

          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, then on and after that date such Securities (or portions thereof) cease to be outstanding
and interest on them ceases to accrue.

          SECTION 2.09. Temporary Securities. Until definitive Securities are ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary Securities.
Temporary Securities shall be substantially in the form of definitive Securities but may have
variations that the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate definitive Securities and
deliver them in exchange for temporary Securities.

          SECTION 2.10. Cancellation. The Company at any time may deliver Securities to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange or payment. The Trustee and
no one else shall cancel and destroy (subject to the record retention requirements of the Exchange
Act) all Securities surrendered for registration of transfer, exchange, payment or cancellation and
deliver a certificate of such destruction to the Company unless the Company directs the Trustee to
deliver canceled Securities to the Company. The Company may not issue new Securities to replace
Securities it has redeemed, paid or delivered to the Trustee for cancellation.

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

          SECTION 2.12. CUSIP Numbers, ISINs, etc. The Company in issuing the Securities may
use “CUSIP” numbers, ISINs and “Common Code” numbers (in each case if then generally in use) and,
if so, the Trustee shall use “CUSIP” numbers, ISINs and “Common Code” numbers in notices of
redemption as a convenience to Holders; provided, however, that any such notice may
state that no representation is made

 

32

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 numbers. The Company shall advise the Trustee in writing of any change in any
“CUSIP” numbers, ISINs or “Common Code” numbers applicable to the Securities.

          SECTION 2.13. Issuance of Additional Securities. After the Issue Date, the Company
shall be entitled, subject to its compliance with Section 4.03, to issue Additional Securities
under this Indenture, which Securities shall have identical terms as the Initial Securities issued
on the Issue Date, other than with respect to the date of issuance and issue price. All the
Securities issued under this Indenture shall be treated as a single class for all purposes of this
Indenture including waivers, amendments, redemptions and offers to purchase.

          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 which shall be delivered to the
Trustee, the following information:

     (1) the aggregate principal amount of such Additional Securities to be authenticated
and delivered pursuant to this Indenture and the provision of Section 4.03 that the Company
is relying on to issue such Additional Securities;

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

     (3) whether such Additional Securities shall be Initial Securities or shall be issued
in the form of Exchange Securities as set forth in Exhibit A.

Article 3

Redemption

          SECTION 3.01. Notices to Trustee. If the Company elects to redeem Securities pursuant
to paragraph 5 of the Securities, it shall notify the Trustee in writing of the redemption date,
the principal amount of Securities to be redeemed.

          The Company shall give each notice to the Trustee provided for in this Section at least 60
days before the redemption date unless the Trustee consents to a shorter period. Such notice shall
be accompanied by an Officers’ Certificate and an Opinion of Counsel from the Company to the effect
that such redemption will comply with the conditions herein.

          SECTION 3.02. Selection of Securities to Be Redeemed. If fewer than all the
Securities are to be redeemed, the Trustee shall select the Securities to be redeemed on a pro rata
basis to the extent practicable, unless the Securities are listed on

 

33

any national securities exchange, in which case the Trustee shall select Securities for
redemption in accordance with the rules and requirements of such exchange. The Trustee shall make
the selection from outstanding Securities not previously called for redemption. The Trustee may
select for redemption portions of the principal of Securities that have denominations larger than
$2,000. Securities and portions of them the Trustee selects shall be in principal amounts of
$2,000 or a whole multiple of $1,000 in excess of $2,000. Provisions of this Indenture that apply
to Securities called for redemption also apply to portions of Securities called for redemption.
The Trustee shall notify the Company promptly of the Securities or portions of Securities to be
redeemed.

          SECTION 3.03. Notice of Redemption. At least 30 days but not more than 60 days before
a date for redemption of Securities, the Company shall mail a notice of redemption by first-class
mail to each Holder of Securities to be redeemed at such Holder’s registered address.

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

     (1) the redemption date;

     (2) the redemption price;

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

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

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

     (6) that, unless the Company defaults in making such redemption payment, interest on
Securities (or portion thereof) called for redemption ceases to accrue on and after the
redemption date;

     (7) the “CUSIP” number, ISIN or “Common Code” number, if any, printed on the
Securities being redeemed; and

     (8) that no representation is made as to the correctness or accuracy of the “CUSIP”
number, ISIN, or “Common Code” number, if any, listed in such notice or printed on the
Securities.

          At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s expense. In such event, the Company shall provide the Trustee with the
information required by this Section.

          SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is mailed,
Securities called for redemption become due and payable on the redemption date and at the
redemption price stated in the notice. Upon surrender to the Paying Agent, such Securities shall
be paid at the redemption price stated in the notice,

 

34

plus accrued interest to the redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the related interest payment date), and such
Securities shall be canceled by the Trustee. Failure to give notice or any defect in the notice to
any Holder shall not affect the validity of the notice to any other Holder.

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

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

Article 4

Covenants

          SECTION 4.01. Payment of Securities. The Company shall promptly pay the principal of
and interest on the Securities on the dates and in the manner provided in the Securities and in
this Indenture. Principal and interest shall be considered paid on the date due if on such date
the Trustee or the Paying Agent holds in accordance with this Indenture money sufficient to pay all
principal and interest then due.

          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.

          SECTION 4.02. SEC Reports. Notwithstanding that the Company may not be subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall file with the
SEC (to the extent the SEC will accept such filings) and provide the Trustee and Securityholders
with such annual and other reports as are specified in Sections 13 and 15(d) of the Exchange Act
and applicable to a U.S. corporation subject to such Sections, such reports to be so filed and
provided at the times specified for the filings of such reports under such Sections and containing
all the information, audit reports and exhibits required for such reports. If the SEC will not
accept such filings for any reason, the Company shall post the reports specified in the preceding
sentence on its website within the time periods that would apply if the Company were required to
file those reports with the SEC.

          At any time that any of the Company’s Subsidiaries are Unrestricted Subsidiaries, then the
quarterly and annual financial information required by the preceding paragraph shall include a
reasonably detailed presentation, either on the face of the financial statements or in the
footnotes thereto, and in “Management’s Discussion and

 

35

Analysis of Financial Condition and Results of Operations,” of the financial condition and
results of operations of the Company and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries of the Company.

          In addition, the Company shall furnish to the Holder of the Securities and to prospective
investors, upon the requests of such Holders, any information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act so long as the Securities are not freely transferable
under the Securities Act. The Company also shall comply with the other provisions of TIA § 314(a).

          SECTION 4.03. Limitation on Indebtedness. (a) The Company shall not, and shall not
permit any Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness;
provided, however, that the Company and the Subsidiary Guarantors shall be entitled
to Incur Indebtedness if, on the date of such Incurrence and after giving effect thereto on a
pro forma basis the Consolidated Coverage Ratio exceeds 2.0 to 1.0.

          (b) Notwithstanding Section 4.03(a), the Company and the Restricted Subsidiaries shall be
entitled to Incur any or all of the following Indebtedness:

     (1) Indebtedness Incurred by the Company pursuant to the Term B Senior Credit
Facility; provided, however, that, immediately after giving effect to any
such Incurrence, the aggregate principal amount of all Indebtedness Incurred under this
clause (1) and then outstanding does not exceed $360,000,000 less the sum of all principal
payments with respect to such Indebtedness pursuant to Section 4.06(a)(3)(A);

     (2) Indebtedness owed to and held by the Company or a Restricted Subsidiary;
provided, however, that (A) any subsequent issuance or transfer of any
Capital Stock which results in any such Restricted Subsidiary ceasing to be a Restricted
Subsidiary or any subsequent transfer of such Indebtedness (other than to the Company or a
Restricted Subsidiary) shall be deemed, in each case, to constitute the Incurrence of such
Indebtedness by the obligor thereon, (B) 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, and (C) if a Subsidiary Guarantor
is the obligor on such Indebtedness, such Indebtedness is expressly subordinated to the
prior payment in full in cash of all obligations of such Subsidiary Guarantor with respect
to its Subsidiary Guaranty;

     (3) the Securities and the Exchange Securities (but excluding any Additional
Securities);

     (4) Indebtedness outstanding on the Issue Date (other than Indebtedness described in
clause (1), (2) or (3) of this Section 4.03(b), but including the Junior Subordinated Notes
and the Junior Warrants);

 

36

     (5) Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior
to the date on which such Subsidiary was acquired by the Company (other than Indebtedness
Incurred in connection with, or to provide all or any portion of the funds or credit
support utilized to consummate, the transaction or series of related transactions pursuant
to which such Subsidiary became a Subsidiary or was acquired by the Company);
provided, however, that on the date of such acquisition and after giving
pro forma effect thereto, the Company would have been entitled to Incur at
least $1.00 of additional Indebtedness pursuant to Section 4.03(a);

     (6) Refinancing Indebtedness in respect of Indebtedness Incurred pursuant to Section
4.03(a) or pursuant to clause (3), (4) or (5) of this Section 4.03(b) or this clause (6);
provided, however, that to the extent such Refinancing Indebtedness
directly or indirectly Refinances Indebtedness of a Subsidiary Incurred pursuant to clause
(5), such Refinancing Indebtedness shall be Incurred only by such Subsidiary;

     (7) Hedging Obligations consisting of Interest Rate Agreements (and renewals thereof)
directly related to Indebtedness permitted to be Incurred by the Company and its Restricted
Subsidiaries pursuant to this Indenture;

     (8) obligations in respect of performance, bid, appeal and surety bonds and completion
guarantees provided by the Company or any Restricted Subsidiary in the ordinary course of
business;

     (9) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument drawn against insufficient funds in the ordinary
course of business; provided, however, that such Indebtedness is
extinguished within two Business Days of its Incurrence;

     (10) Indebtedness consisting of the Subsidiary Guaranty of a Subsidiary Guarantor and
any Guarantee by a Subsidiary Guarantor of Indebtedness Incurred pursuant to Section
4.03(a) or pursuant to clause (1), (2), (3) or (4) of this Section 4.03(b) or pursuant to
clause (6) of this Section 4.03(b) to the extent the Refinancing Indebtedness Incurred
thereunder directly or indirectly Refinances Indebtedness Incurred pursuant to Section
4.03(a) or pursuant to clause (3) or (4) of this Section 4.03(b);

     (11) Indebtedness of any Foreign Subsidiary to the extent Incurred for working capital
purposes;

     (12) Indebtedness of the Company or any Subsidiary Guarantor incurred to finance the
acquisition, construction or improvement of any fixed or capital assets, and extensions,
renewals and replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof; provided that (a) such Indebtedness is Incurred prior to
or within 90 days after such acquisition or the completion of such construction or
improvement and (b)

 

37

the aggregate principal amount of Indebtedness outstanding at any time pursuant to
this clause (12), when taken together with the aggregate principal amount of all Capital
Lease Obligations and Synthetic Lease Obligations outstanding at such time pursuant to the
immediately succeeding clause (13), shall not exceed the greater of $25,000,000 and 2.5% of
Total Assets;

     (13) Capital Lease Obligations and Synthetic Lease Obligations; provided that
the aggregate amount of all Capital Lease Obligations and Synthetic Lease Obligations
outstanding at any time pursuant to this clause (13), when taken together with the
aggregate principal amount of Indebtedness outstanding at such time pursuant to the
immediately preceding clause (12), shall not exceed the greater of $25,000,000 and 2.5% of
Total Assets;

     (14) Permitted Subordinated Indebtedness of the Company or any Restricted Subsidiary
Incurred to (a) finance a Permitted ESOP Transaction, (b) finance a Permitted Acquisition
or (c) refinance existing Indebtedness of a Person that becomes a wholly owned Subsidiary
of the Company as a result of a Permitted Acquisition (so long as such Indebtedness is not
Incurred in contemplation of the applicable Permitted Acquisition); provided that
the aggregate amount of all Permitted Indebtedness outstanding at any time pursuant to this
clause (14) shall not exceed $35,000,000;

     (15) Indebtedness of the Company or any Restricted Subsidiary constituting
reimbursement obligations with respect to letters of credit issued in the ordinary course
of business, including letters of credit in respect of workers’ compensation claims, or
other Indebtedness with respect to reimbursement type obligations regarding workers’
compensation claims; provided that upon the drawing of such letters of credit or
the Incurrence of such Indebtedness, such obligations are reimbursed within 30 days
following such drawing or Incurrence;

     (16) Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument inadvertently drawn against insufficient funds in
the ordinary course of business, so long as such Indebtedness is extinguished within 30
days of the applicable Incurrence;

     (17) Indebtedness arising from agreements of the Company or any Restricted Subsidiary
providing for indemnification, adjustment of purchase price, earn-outs, or similar
obligations, in each case, incurred or assumed in connection with any business acquisition
or any disposition of any business, assets or Subsidiary other than guarantees of
Indebtedness incurred by any Person acquiring all or any portion of such business, assets
or Subsidiary for the purpose of financing such acquisition; provided that (a) the
total amount of such Indebtedness which may be Incurred with respect to any such
transaction shall not exceed the gross proceeds including non-cash proceeds actually
received by the Company or any Restricted Subsidiary in connection therewith and (b) such
Indebtedness is not reflected on the balance sheet of the Company or any Restricted
Subsidiary under GAAP;

 

38

     (18) Indebtedness constituting obligations of the Company or any Restricted Subsidiary
under deferred compensation agreements entered into in the ordinary course;
provided that such obligations are satisfied within 30 days of becoming due; and

     (19) Indebtedness of the Company or any Restricted Subsidiary, including Additional
Securities, in an aggregate principal amount which, when taken together with all other
Indebtedness of the Company and its Restricted Subsidiaries outstanding on the date of such
Incurrence (other than Indebtedness permitted by clauses (1) through (18) of this Section
4.03(b) or Section 4.03(a)) does not exceed $35,000,000.

          (c) Notwithstanding the foregoing, neither the Company nor any Subsidiary Guarantor shall
incur any Indebtedness pursuant to Section 4.03(b) if the proceeds thereof are used, directly or
indirectly, to Refinance any Subordinated Obligations of the Company or any Subsidiary Guarantor
unless such Indebtedness shall be subordinated to the Securities or the applicable Subsidiary
Guaranty to at least the same extent as such Subordinated Obligations.

          (d) For purposes of determining compliance with this Section 4.03:

     (1) any Indebtedness remaining outstanding under the Term B Senior Credit Facility
after the application of the net proceeds from the sale of the Securities shall be treated
as Incurred on the Issue Date under Section 4.03(b)(1);

     (2) in the event that an item of Indebtedness (or any portion thereof) meets the
criteria of more than one of the types of Indebtedness described above, the Company, in its
sole discretion, will classify such item of Indebtedness (or any portion thereof) at the
time of Incurrence and will only be required to include the amount and type of such
Indebtedness in one of the above clauses;

     (3) the Company shall be entitled to divide and classify an item of Indebtedness in
more than one of the types of Indebtedness described above; and

     (4) any Indebtedness originally classified as Incurred pursuant to one of the clauses
in Section 4.03(b) above (other than pursuant to Section 4.03(b)(1)) may later be
reclassified by the Company such that it will be deemed as having been Incurred pursuant to
Section 4.03(a) above or another clause in Section 4.03(b), as applicable, to the extent
that such reclassified Indebtedness could be Incurred pursuant to such new clause at the
time of such reclassification.

          (e) For purposes of determining compliance with any U.S. dollar denominated restriction on the
Incurrence of Indebtedness where the Indebtedness Incurred is denominated in a different currency,
the amount of such Indebtedness will be the U.S. Dollar Equivalent determined on the date of the
Incurrence of such Indebtedness; provided, however, that if any such Indebtedness
denominated in a different currency is subject to a Currency Agreement with respect to U.S. dollars
covering all principal, premium, if any, and interest payable on such Indebtedness, the

 

39

amount of such Indebtedness expressed in U.S. dollars will be as provided in such Currency
Agreement. The principal amount of any Refinancing Indebtedness Incurred in the same currency as
the Indebtedness being Refinanced will be the U.S. Dollar Equivalent of the Indebtedness
Refinanced, except to the extent that (1) such U.S. Dollar Equivalent was determined based on a
Currency Agreement, in which case the Refinancing Indebtedness will be determined in accordance
with the preceding sentence, and (2) the principal amount of the Refinancing Indebtedness exceeds
the principal amount of the Indebtedness being Refinanced, in which case the U.S. Dollar Equivalent
of such excess will be determined on the date such Refinancing Indebtedness is Incurred.

          SECTION 4.04. Limitation on Restricted Payments. (a) The Company shall not, and
shall not permit any Restricted Subsidiary, directly or indirectly, to make a Restricted Payment if
at the time the Company or such Restricted Subsidiary makes such Restricted Payment:

     (1) a Default shall have occurred and be continuing (or would result therefrom);

     (2) the Company is not entitled to Incur an additional $1.00 of Indebtedness under
Section 4.03(a); or

     (3) the aggregate amount of such Restricted Payment and all other Restricted Payments
since the Issue Date would exceed the sum of (without duplication):

     (A) 50% of the Consolidated Net Income accrued during the period (treated as
one accounting period) from the beginning of the fiscal quarter immediately
following the fiscal quarter during which the Issue Date occurs to the end of the
most recent fiscal quarter ending at least 45 days prior to the date of such
Restricted Payment (or, in case such Consolidated Net Income shall be a deficit,
minus 100% of such deficit); plus

     (B) 100% of the aggregate Net Cash Proceeds received by the Company (x) from
the issuance or sale of its Qualified Capital Stock subsequent to the Issue Date,
(y) as a contribution in respect of the outstanding Qualified Capital Stock of the
Company by its stockholders subsequent to the Issue Date and (z) from optional
employee contributions to the ESOP; plus

     (C) the amount by which Indebtedness of the Company is reduced on the
Company’s balance sheet upon the conversion or exchange subsequent to the Issue
Date of any Indebtedness of the Company convertible or exchangeable for Capital
Stock (other than Capital Stock that constitutes Disqualified Stock) of the Company
(less the amount of any cash, or the fair value of any other property, distributed
by the Company upon such conversion or exchange); provided,
however, that the

 

40

foregoing amount shall not exceed the Net Cash Proceeds received by the
Company or any Restricted Subsidiary from the sale of such Indebtedness (excluding
Net Cash Proceeds from sales to a Subsidiary of the Company or to an employee stock
ownership plan or to a trust established by the Company or any of its Subsidiaries
for the benefit of their employees); plus

     (D) an amount equal to the sum of (i) the net reduction in the Investments
(other than Permitted Investments) made by the Company or any Restricted Subsidiary
in any Person resulting from repurchases, repayments or redemptions of such
Investments by such Person, proceeds realized on the sale of such Investment and
proceeds representing the return of capital (excluding dividends and
distributions), in each case received by the Company or any Restricted Subsidiary,
and (ii) to the extent such Person is an Unrestricted Subsidiary, the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the Fair
Market Value of the net assets of such Unrestricted Subsidiary at the time such
Unrestricted Subsidiary is designated a Restricted Subsidiary; provided,
however, that the foregoing sum shall not exceed, in the case of any such
Person or Unrestricted Subsidiary, the amount of Investments (excluding Permitted
Investments) previously made (and treated as a Restricted Payment) by the Company
or any Restricted Subsidiary in such Person or Unrestricted Subsidiary.

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

     (1) any Restricted Payment made out of the Net Cash Proceeds of the substantially
concurrent sale of, or made by exchange for, Qualified Capital Stock of the Company or a
substantially concurrent cash capital contribution received by the Company from its
shareholders; provided, however, that (A) such Restricted Payment shall be
excluded in the calculation of the amount of Restricted Payments and (B) the Net Cash
Proceeds from such sale or such cash capital contribution (to the extent so used for such
Restricted Payment) shall be excluded from the calculation of amounts under Section
4.04(a)(3)(B);

     (2) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of Subordinated Obligations of the Company or a Subsidiary Guarantor
made by exchange for, or out of the proceeds of the substantially concurrent Incurrence of,
Indebtedness of such Person which is permitted to be Incurred pursuant to Section 4.03;
provided, however, that such purchase, repurchase, redemption, defeasance
or other acquisition or retirement for value shall be excluded in the calculation of the
amount of Restricted Payments;

     (3) dividends paid within 60 days after the date of declaration thereof if at such
date of declaration such dividend would have complied with this Section 4.04;
provided, however, that at the time of payment of such dividend, no

 

41

other Default shall have occurred and be continuing (or result therefrom);
provided further, however, that such dividend shall be included in the
calculation of the amount of Restricted Payments;

     (4) the declaration and payments of dividends on Disqualified Stock issued pursuant to
Section 4.03; provided, however, that at the time of payment of such
dividend, no Default shall have occurred and be continuing (or result therefrom);
provided further, however, that such dividends shall be excluded in
the calculation of the amount of Restricted Payments;

     (5) repurchases of Capital Stock deemed to occur upon exercise of stock options or
warrants if such Capital Stock represents a portion of the exercise price of such options
or warrants; provided, however, that such Restricted Payments shall be
excluded in the calculation of the amount of Restricted Payments;

     (6) cash payments in lieu of the issuance of fractional shares in connection with the
exercise of warrants, options or other securities convertible into or exchangeable for
Capital Stock of the Company; provided, however, that any such cash payment
shall not be for the purpose of evading the limitation of this Section 4.04 (as determined
in good faith by the Board of Directors or the Compensation Committee thereof);
provided further, however, that such payments shall be excluded in the
calculation of the amount of Restricted Payments;

     (7) in the event of a Change of Control, and if no Default shall have occurred and be
continuing, the payment, purchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Company or any Subsidiary Guarantor, in each
case, at a purchase price not greater than 101% of the principal amount of such
Subordinated Obligations, plus any accrued and unpaid interest thereon; provided,
however, that prior to such payment, purchase, redemption, defeasance or other
acquisition or retirement, the Company (or a third party to the extent permitted by this
Indenture) has made a Change of Control Offer with respect to the Securities as a result of
such Change of Control and has repurchased all Securities validly tendered and not
withdrawn in connection with such Change of Control Offer; provided further,
however, that such payments, purchases, redemptions, defeasances or other
acquisitions or retirements shall be included in the calculation of the amount of
Restricted Payments;

     (8) payments of intercompany Subordinated Obligations, the Incurrence of which was
permitted under Section 4.03(b)(2); provided, however, that no Default has
occurred and is continuing or would otherwise result therefrom; provided further,
however, that such payments shall be excluded in the calculation of the amount of
Restricted Payments;

 

42

     (9) any purchase or redemption of Subordinated Obligations of the Company or a
Subsidiary Guarantor from Net Available Cash to the extent permitted under Section 4.06
after the Company (or a Restricted Subsidiary, as the case may be) has made an offer to the
Holders of the Securities to purchase the Securities pursuant to Section 4.06(a)(3)(C);
provided, however, that such purchase or redemption shall be excluded in
the calculation of the amount of Restricted Payments;

     (10) in the event of an Asset Disposition that requires the Company to offer to
repurchase Securities pursuant to Section 4.06, and if no Default shall have occurred and
be continuing, the payment, purchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Company or any Subsidiary Guarantor, in each
case, at a purchase price not greater than 100% of the principal amount (or, if such
Subordinated Obligations were issued with original issue discount, 100% of the accreted
value) of such Subordinated Obligations, plus any accrued and unpaid interest thereon;
provided, however, that (A) prior to such payment, purchase, redemption,
defeasance or other acquisition or retirement, the Company has made an offer with respect
to the Securities pursuant to the provisions of Section 4.06 and has repurchased all
Securities validly tendered and not withdrawn in connection with such offer and (B) the
aggregate amount of all such payments, purchases, redemptions, defeasances or other
acquisitions or retirements of all such Subordinated Obligations may not exceed (x) the
amount by which Net Available Cash was reduced as a result of the offer with respect to the
Securities less (y) the Net Available Cash actually used to consummate the offer of the
Securities (and any other Senior Indebtedness included in such offer); provided
further, however, that such Restricted Payments shall be included in the
calculation of the amount of Restricted Payments;

     (11) the redemption or repurchase for value of any Capital Stock of the Company as a
result of distributions by the ESOT of such Capital Stock to the Former JSC Participants
pursuant to the ESOP Plan Documents as a result of their voluntary or involuntary
termination of employment with the Company or any of its Subsidiaries during the JSC
Termination Period; provided, however, that the aggregate amount of
Restricted Payments made pursuant to this clause (11) shall not exceed $13,000,000;

     (12) Permitted ESOP Transactions or purchases, repurchases, redemptions, defeasances
or other acquisitions or retirements for value of the Junior Subordinated Note or the
Junior Warrants; provided, however, that the aggregate amount of Restricted
Payments made pursuant to this clause (12) shall not exceed $25,000,000; or

     (13) Restricted Payments in an amount which, when taken together with all Restricted
Payments made pursuant to this clause (13), does not exceed $30,000,000; provided,
however, that (A) at the time of each such Restricted Payment, no Default shall
have occurred and be continuing (or result therefrom)

 

43

and (B) the amount of Restricted Payments made pursuant to this clause (13) shall be
included in the calculation of the amount of Restricted Payments.

          SECTION 4.05. Limitation on Restrictions on Distributions from Restricted
Subsidiaries. The Company shall not, and shall not permit any Restricted Subsidiary to, create
or otherwise cause or permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to (a) pay dividends or make any other distributions on
its Capital Stock to the Company or a Restricted Subsidiary or pay any Indebtedness owed to the
Company or a Subsidiary Guarantor, (b) make any loans or advances to the Company or a Subsidiary
Guarantor or (c) transfer any of its property or assets to the Company or a Subsidiary Guarantor,
except:

     (1) with respect to clauses (a), (b) and (c),

     (A) any encumbrance or restriction pursuant to an agreement in effect at or
entered into on the Issue Date, including the Term B Senior Credit Facility in
effect on the Issue Date;

     (B) any encumbrance or restriction with respect to a Restricted Subsidiary
pursuant to an agreement relating to any Indebtedness Incurred by such Restricted
Subsidiary on or prior to the date on which such Restricted Subsidiary was acquired
by the Company (other than Indebtedness Incurred as consideration in, or to provide
all or any portion of the funds or credit support utilized to consummate, the
transaction or series of related transactions pursuant to which such Restricted
Subsidiary became a Restricted Subsidiary or was acquired by the Company) and
outstanding on such date;

     (C) any encumbrance or restriction pursuant to an agreement effecting a
Refinancing of Indebtedness Incurred pursuant to an agreement referred to in
Section 4.05(1)(A) or (B) or this clause (C) or contained in any amendment to an
agreement referred to in Section 4.05(1)(A) or (B) or this clause (C);
provided, however, that the encumbrances and restrictions with
respect to such Restricted Subsidiary contained in any such refinancing agreement
or amendment are no less favorable to the Securityholders than encumbrances and
restrictions with respect to such Restricted Subsidiary contained in such
predecessor agreements;

     (D) any encumbrance or restriction with respect to a Restricted Subsidiary
imposed pursuant to an agreement entered into for the sale or disposition of all or
substantially all the Capital Stock or assets of such Restricted Subsidiary pending
the closing of such sale or disposition;

     (E) any encumbrance or restriction pursuant to applicable law, rule,
regulation or order;

 

44

     (F) restrictions on cash, cash equivalents, Temporary Cash Investments or
other deposits or net worth imposed under contracts entered into in the ordinary
course of business, including such restrictions imposed by customers or insurance,
surety or bonding companies;

     (G) any encumbrance or restriction with respect to a Foreign Subsidiary
entered into the ordinary course of business or pursuant to the terms of
Indebtedness that was Incurred by such Foreign Subsidiary in compliance with the
terms of this Indenture;

     (H) provisions contained in any license, permit or other accreditation with a
regulatory authority entered into the ordinary course of business;

     (I) provisions in agreements or instruments which prohibit the payment or
making of dividends or other distributions other than on a pro rata basis; and

     (2) with respect to clause (c) only,

     (A) any encumbrance or restriction consisting of customary nonassignment
provisions in leases governing leasehold interests to the extent such provisions
restrict the transfer of the lease or the property leased thereunder; and

     (B) any encumbrance or restriction contained in security agreements or
mortgages securing Indebtedness of a Restricted Subsidiary to the extent such
encumbrance or restriction restricts the transfer of the property subject to such
security agreements or mortgages.

          SECTION 4.06. Limitation on Sales of Assets and Subsidiary Stock. (a) The Company
shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, consummate
any Asset Disposition unless (1) the Company or such Restricted Subsidiary receives consideration
at the time of such Asset Disposition at least equal to the Fair Market Value (including as to the
value of all non-cash consideration), as determined in good faith by the Board of Directors of the
Company, of the shares and assets subject to such Asset Disposition; (2) at least 75% of the
consideration thereof received by the Company or such Restricted Subsidiary 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 (or such Restricted Subsidiary, as the case may be) to any of
the following: (A) to prepay, repay, redeem or purchase Senior Indebtedness selected by the Company
(in each case other than Indebtedness owed to the Company or an Affiliate of the Company) within
one year from the later of the date of such Asset Disposition or the receipt of such Net Available
Cash; (B) to acquire Additional Assets within one year from the later of the date of such Asset
Disposition or the receipt of such Net Available Cash; and (C) to make an offer to the holders of
the Securities (and to holders of other Senior Indebtedness designated by the Company) to purchase
Securities

 

45

(and such other Senior Indebtedness) pursuant to and subject to the conditions contained in
this Section 4.06; provided, however, that in connection with any prepayment,
repayment or purchase of Indebtedness pursuant to clause (A) or (C) above, the Company or such
Restricted Subsidiary shall permanently retire such Indebtedness and shall cause the related loan
commitment (if any) to be permanently reduced in an amount equal to the principal amount so
prepaid, repaid or purchased. Notwithstanding the foregoing provisions of this Section 4.06, the
Company and the Restricted Subsidiaries shall not be required to apply any Net Available Cash in
accordance with this Section 4.06(a) except to the extent that the aggregate Net Available Cash
from all Asset Dispositions which is not applied in accordance with this Section 4.06(a) exceeds
$7,500,000. Pending the final application of any Net Available Cash, the Company or any of the
Restricted Subsidiaries may temporarily reduce outstanding revolving Indebtedness that is Senior
Indebtedness or otherwise invest the Net Available Cash in any manner that is not prohibited by
this Indenture.

          For the purposes of this Section 4.06(a), the following are deemed to be cash or cash
equivalents: (i) the assumption or discharge of Senior Indebtedness of the Company or any
Restricted Subsidiary (other than obligations in respect of Disqualified Stock of the Company or
Preferred Stock of 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 and
(ii) securities received by the Company or any Restricted Subsidiary from the transferee that are
promptly converted by the Company or such Restricted Subsidiary into cash, to the extent of the
cash received in that conversion.

          (b) In the event of an Asset Disposition that requires the purchase of Securities (and other
Senior Indebtedness) pursuant to Section 4.06(a)(3)(C), the Company shall purchase Securities
tendered pursuant to an offer by the Company for the Securities (and such other Senior
Indebtedness) (the “Offer”) at a purchase price of 100% of their principal amount (or, in the event
such other Senior Indebtedness was issued with significant original issue discount, 100% of the
accreted value thereof), without premium, plus accrued but unpaid interest (or, in respect of such
other Senior Indebtedness, such lesser price, if any, as may be provided for by the terms of such
Senior Indebtedness) in accordance with the procedures (including prorating in the event of
oversubscription) set forth in Section 4.06(c). If the aggregate purchase price of securities
tendered exceeds the Net Available Cash allotted to their purchase, the Company shall select the
securities to be purchased on a pro rata basis but in round denominations, which in the case of the
Securities will be denominations of $2,000 principal amount or $1,000 multiples thereof. The
Company shall not be required to make an Offer to purchase Securities (and other Senior
Indebtedness) pursuant to this Section 4.06 if the Net Available Cash available therefor is less
than $7,500,000 (which lesser amount shall be carried forward for purposes of determining whether
such an Offer is required with respect to the Net Available Cash from any subsequent Asset
Disposition). Upon completion of such an Offer, Net Available Cash shall be deemed to be reduced
by the aggregate amount of such Offer.

 

46

          (c) (1) Promptly, and in any event within 10 days after the Company becomes obligated
to make an Offer, the Company shall deliver to the Trustee and send, by first-class mail to
each Holder, a written notice stating that the Holder may elect to have his Securities
purchased by the Company either in whole or in part (subject to prorating as described in
Section 4.06(b) in the event the Offer is oversubscribed) in a minimum amount of $2,000 or
larger integral multiples of $1,000 of principal amount, at the applicable purchase price.
The notice shall specify a purchase date not less than 30 days nor more than 60 days after
the date of such notice (the “Purchase Date”) and shall contain such information concerning
the business of the Company which the Company in good faith believes will enable such
Holders to make an informed decision (which at a minimum will include (A) the most recently
filed Annual Report on Form 10-K (including audited consolidated financial statements) of
the Company, the most recent subsequently filed Quarterly Report on Form 10-Q and any
Current Report on Form 8-K of the Company filed subsequent to such Quarterly Report, other
than Current Reports describing Asset Dispositions otherwise described in the offering
materials (or corresponding successor reports), (B) a description of material developments
in the Company’s business subsequent to the date of the latest of such Reports, and (C) if
material, appropriate pro forma financial information) and all instructions
and materials necessary to tender Securities pursuant to the Offer, together with the
information contained in clause (3).

     (2) Not later than the date upon which written notice of an Offer is delivered to the
Trustee as provided above, the Company shall deliver to the Trustee an Officers’
Certificate as to (A) the amount of the Offer (the “Offer Amount”), including information
as to any other Senior Indebtedness included in the Offer, (B) the allocation of the Net
Available Cash from the Asset Dispositions pursuant to which such Offer is being made and
(C) the compliance of such allocation with the provisions of Section 4.06(a) and (b). On
such date, the Company shall also irrevocably 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)
in Temporary Cash Investments, maturing on the last day prior to the Purchase Date or on
the Purchase Date if funds are immediately available by open of business, an amount equal
to the Offer Amount to be held for payment in accordance with the provisions of this
Section. If the Offer includes other Senior Indebtedness, the deposit described in the
preceding sentence may be made with any other paying agent pursuant to arrangements
satisfactory to the Trustee. Upon the expiration of the period for which the Offer
remains open (the “Offer Period”), the Company shall deliver to the Trustee for
cancellation the Securities or portions thereof which have been properly tendered to and
are to be accepted by the Company. The Trustee shall, on the Purchase Date, mail or
deliver payment (or cause the delivery of payment) to each tendering Holder in the amount
of the purchase price. In the event that the aggregate purchase price of the Securities
delivered by the Company to the Trustee is less than the Offer Amount applicable to the
Securities, the Trustee shall deliver the excess to the Company immediately after the
expiration of the Offer Period for application in accordance with this Section 4.06.

 

47

     (3) Holders electing to have a Security purchased shall be required to surrender the
Security, with an appropriate form duly completed, to the Company at the address specified
in the notice at least three Business Days prior to the Purchase Date. Holders shall be
entitled to withdraw their election if the Trustee or the Company receives not later than
one Business Day prior to the Purchase Date, a telex, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of the Security which was
delivered for purchase by the Holder and a statement that such Holder is withdrawing his
election to have such Security purchased. Holders whose Securities are purchased only in
part shall be issued new Securities equal in principal amount to the unpurchased portion of
the Securities surrendered.

     (4) At the time the Company delivers Securities to the Trustee which are to be
accepted for purchase, the Company shall also deliver an Officers’ Certificate stating that
such Securities are to be accepted by the Company pursuant to and in accordance with the
terms of this Section. A Security shall be deemed to have been accepted for purchase at
the time the Trustee, directly or through an agent, mails or delivers payment therefor to
the surrendering Holder.

          (d) The Company shall 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 4.06. To the extent that the provisions of any securities
laws or regulations conflict with provisions of this Section 4.06, the Company shall comply with
the applicable securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.06 by virtue of its compliance with such securities laws or
regulations.

          SECTION 4.07. Limitation on Affiliate Transactions. (a) The Company shall not, and
shall not permit any Restricted Subsidiary to, enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property, employee compensation
arrangements or the rendering of any service) with, or for the benefit of, any Affiliate of the
Company (an “Affiliate Transaction”) unless: (1) the terms of the Affiliate Transaction are no less
favorable to the Company or such Restricted Subsidiary than those that could be obtained at the
time of the Affiliate Transaction in arm’s-length dealings with a Person who is not an Affiliate;
(2) if such Affiliate Transaction involves an amount in excess of $10,000,000, the terms of the
Affiliate Transaction are set forth in writing and a majority of the non-employee directors of the
Company disinterested with respect to such Affiliate Transaction have determined in good faith that
the criteria set forth in clause (1) are satisfied and have approved the relevant Affiliate
Transaction as evidenced by a resolution of the Board of Directors of the Company; and (3) if such
Affiliate Transaction involves an amount in excess of $20,000,000, the Board of Directors of the
Company shall also have received a written opinion from an Independent Qualified Party to the
effect that such Affiliate Transaction is fair, from a financial standpoint, to the Company and its
Restricted Subsidiaries or is not less favorable to the Company and its Restricted Subsidiaries
than could reasonably be expected to be obtained at the time in an arm’s-length transaction with a
Person who was not an Affiliate.

 

48

          (b) The provisions of Section 4.07(a) shall not prohibit (1) any Investment (other than a
Permitted Investment) or other Restricted Payment, in each case permitted to be made pursuant to
(but only to the extent included in the calculation of the amount of Restricted Payments made
pursuant to this Section 4.04(a)(3)); (2) any issuance of securities, or other payments, awards or
grants in cash, securities or otherwise pursuant to, or the funding of, employment arrangements,
stock options and stock ownership plans approved by the Board of Directors of the Company; (3)
loans or advances to employees in the ordinary course of business in accordance with the past
practices of the Company or its Restricted Subsidiaries, but in any event not to exceed $1,000,000
in the aggregate outstanding at any one time; (4) the payment of reasonable fees to directors of
the Company and its Restricted Subsidiaries who are not employees of the Company or its Restricted
Subsidiaries; (5) any transaction with the Company, a Restricted Subsidiary or joint venture or
similar entity which would constitute an Affiliate Transaction solely because the Company or a
Restricted Subsidiary owns an equity interest in or otherwise controls such Restricted Subsidiary,
joint venture or similar entity; (6) the issuance or sale of any Capital Stock (other than
Disqualified Stock) of the Company; (7) earn-out payments (A) made in connection with acquisitions
permitted under this Indenture and (B) negotiated prior to the consummation of the applicable
acquisition; and (8) any agreement as in effect on the Issue Date and described in the Confidential
Offering Circular of the Company dated January 26, 2007 or any renewals or extensions of any such
agreement (so long as such renewals or extensions are not less favorable to the Company or the
Restricted Subsidiaries) and the transactions evidenced thereby.

          SECTION 4.08. Limitation on Line of Business. The Company shall not, and shall not
permit any Restricted Subsidiary, to engage in any business other than a Related Business.

          SECTION 4.09. Change of Control. (a) Upon the occurrence of a Change of Control,
each Holder shall have the right to require that the Company purchase such Holder’s Securities at a
purchase price in cash equal to 101% of the principal amount thereof on the date of purchase 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 on the relevant interest payment date), in
accordance with the terms contemplated in Section 4.09(b).

          (b) Within 30 days following any Change of Control, unless the Company shall have previously
mailed a redemption notice with respect to all outstanding Securities as described under paragraph
5 of the Securities, the Company shall mail a notice to each Holder with a copy to the Trustee (the
“Change of Control Offer”) 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 thereof on the date of purchase, plus accrued and unpaid
interest, if any, to the date of purchase (subject

 

49

to the right of Holders of record on the relevant record date to receive interest on
the relevant interest payment date);

     (2) the circumstances and relevant facts regarding such Change of Control (including
information with respect to pro forma historical income, cash flow and
capitalization, in each case after giving effect to such Change of Control);

     (3) the purchase date (which shall be no earlier than 30 days nor later than 60 days
from the date such notice is mailed); and

     (4) the instructions, as determined by the Company, consistent with this Section, that
a Holder must follow in order to have its Securities purchased.

          (c) Holders electing to have a Security purchased will be required to surrender the Security,
with an appropriate form duly completed, to the Company at the address specified in the notice at
least three Business Days prior to the purchase date. Holders will be entitled to withdraw their
election if the Trustee or the Company receives not later than one Business Day prior to the
purchase date, a telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Security which was delivered for purchase by the Holder and a
statement that such Holder is withdrawing his election to have such Security purchased.

          (d) On the purchase date, all Securities purchased by the Company under this Section shall be
delivered by the Company to the Trustee for cancellation, and the Company shall pay the purchase
price plus accrued and unpaid interest, if any, to the Holders entitled thereto.

          (e) Notwithstanding the foregoing provisions of this Section 4.09, the Company shall not be
required to make a Change of Control Offer following 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 4.09 applicable to a Change of Control Offer to be made by
the Company and purchases all Securities validly tendered and not withdrawn under such Change of
Control Offer.

          (f) A Change of Control Offer may be made in advance of a Change of Control, conditioned upon
the occurrence of such Change of Control, if a definitive agreement is in place for the Change of
Control at the time of making of the Change of Control Offer.

          (g) The Company shall comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other applicable securities laws or regulations in connection with the
repurchase of Securities pursuant to this Section 4.09. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section, the Company shall comply
with the applicable securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.09 by virtue of its compliance with such securities laws or
regulations.

 

50

          SECTION 4.10. Limitation on Liens. The Company shall not, and shall not permit
any Restricted Subsidiary to, directly or indirectly, Incur or permit to exist any Lien (the
“Initial Lien”) of any nature whatsoever on any of its properties (including Capital Stock of a
Restricted Subsidiary), whether owned at the Issue Date or thereafter acquired securing any
Indebtedness, other than Permitted Liens, without effectively providing that the Securities shall
be secured equally and ratably with (or prior to) the obligations so secured for so long as such
obligations are so secured.

          Any Lien created for the benefit of the Holders of the Securities pursuant to the preceding
sentence shall provide by its terms that such Lien shall be automatically and unconditionally
released and discharged upon the release and discharge of the Initial Lien.

          SECTION 4.11. Limitation on Sale/Leaseback Transactions. The Company shall not, and
shall not permit any Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with
respect to any property unless (a) the Company or such Restricted Subsidiary would be entitled to
(1) Incur Indebtedness in an amount equal to the Attributable Debt with respect to such
Sale/Leaseback Transaction pursuant to Section 4.03 and (2) create a Lien on such property securing
such Attributable Debt without equally and ratably securing the Securities pursuant to Section
4.10, (b) the net proceeds received by the Company or any Restricted Subsidiary in connection with
such Sale/Leaseback Transaction are at least equal to the Fair Market Value (as determined by the
Board of Directors of the Company) of such property and (c) the Company applies the proceeds of
such transaction in compliance with Section 4.06.

          SECTION 4.12. Future Guarantors. The Company shall cause each Domestic Restricted
Subsidiary that Incurs any Indebtedness (other than Indebtedness permitted to be Incurred pursuant
to Section 4.03(b)(2), (7), (8) or (9)) to, and each Foreign Subsidiary that enters into a
Guarantee of any Indebtedness (other than a Foreign Subsidiary that Guarantees Indebtedness
Incurred by another Foreign Subsidiary) to, in each case, at the same time, execute and deliver to
the Trustee a Guaranty Agreement pursuant to which such Restricted Subsidiary will Guarantee
payment of the Securities on the same terms and conditions as those set forth in Article 10 of this
Indenture.

          SECTION 4.13. Compliance Certificate. The Company shall deliver to the Trustee within
120 days after the end of each fiscal year of the Company an Officers’ Certificate stating that in
the course of the performance by the signers of their duties as Officers of the Company they would
normally have knowledge of any Default and whether or not the signers know of any Default that
occurred during such period. If they do, the certificate shall describe the Default, its status
and what action the Company is taking or proposes to take with respect thereto. The Company also
shall comply with TIA § 314(a)(4).

          SECTION 4.14. 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.

 

51

Article 5

Successor Company

          SECTION 5.01. When Company May Merge or Transfer Assets. (a) The Company shall not
consolidate with or merge with or into, or convey, transfer or lease, in one transaction or a
series of transactions, directly or indirectly, all or substantially all its assets to, any Person,
unless:

     (1) the resulting, surviving or transferee Person (the “Successor Company”) shall be a
Person organized and existing under the laws of the United States of America, any State
thereof or the District of Columbia and the Successor Company (if not the Company) shall
expressly assume, by an indenture supplemental thereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, all the obligations of the Company under the
Securities and this Indenture;

     (2) immediately after giving pro forma effect to such transaction (and
treating any Indebtedness which becomes an obligation of the Successor Company or any
Subsidiary 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 shall have occurred and be
continuing;

     (3) immediately after giving pro forma effect to such transaction, the
Successor Company would be able to Incur an additional $1.00 of Indebtedness pursuant to
Section 4.03(a); and

     (4) 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;

provided, however, that clause (3) will not be applicable to (A) a Restricted
Subsidiary consolidating with, merging into or transferring all or part of its properties and
assets to the Company (so long as no Capital Stock of the Company is distributed to any Person) or
(B) the Company merging with an Affiliate of the Company solely for the purpose and with the sole
effect of reincorporating the Company in another jurisdiction.

          For purposes of this Section 5.01, 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 Successor Company shall be the successor to the Company and shall succeed to, and be
substituted for, and may exercise every right and power of, the

 

52

Company under this Indenture, and the predecessor Company in the case of a lease, shall be
released from the obligation to pay the principal of and interest on the Securities.

          (b) The Company will not permit any Subsidiary Guarantor to consolidate with or merge with or
into, or convey, transfer or lease, in one transaction or a series of transactions, all or
substantially all of its assets to any Person unless: (1) the resulting, surviving or transferee
Person (if not such Subsidiary) shall be a Person organized and existing under the laws of the
jurisdiction under which such Subsidiary was organized or under the laws of the United States of
America, or any State thereof or the District of Columbia, and such Person shall expressly assume,
by a Guaranty Agreement, in a form satisfactory to the Trustee, all the obligations of such
Subsidiary, if any, under its Subsidiary Guaranty, provided that the foregoing shall not be
required in the case of a Subsidiary Guarantor (x) that has been disposed of in its entirety to
another Person (other than to the Company or an Affiliate of the Company), whether through a
merger, consolidation or sale of Capital Stock or assets or (y) that, as a result of the
disposition of all or a portion of its Capital Stock, ceases to be a Subsidiary, in both cases, if
in connection therewith the Company provides an Officers’ Certificate to the Trustee to the effect
that the Company will comply with its obligations under Section 4.06 in respect of such
disposition; (2) immediately after giving effect to such transaction or transactions on a pro forma
basis (and treating any Indebtedness which becomes an obligation of the resulting, surviving or
transferee Person as a result of such transaction as having been issued by such Person at the time
of such transaction), no Default shall have occurred and be continuing; and (3) the Company
delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such Guaranty Agreement, if any, complies with this
Indenture.

Article 6

Defaults and Remedies

          SECTION 6.01. Events of Default. An “Event of Default” occurs if:

     (1) the Company defaults in any payment of interest on any Security when the same
becomes due and payable, and such default continues for a period of 30 days;

     (2) the Company (A) defaults in the payment of the principal of any Security when the
same becomes due and payable at its Stated Maturity, upon optional redemption, upon
declaration of acceleration or otherwise, or (B) fails to redeem or purchase Securities
when required pursuant to this Indenture or the Securities;

     (3) the Company fails to comply with Section 5.01;

     (4) the Company fails to comply with Section 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08,
4.09, 4.10, 4.11 or 4.12 (other than a failure to purchase

 

53

Securities when required under Section 4.06 or 4.09) and such failure continues for 30
days after the notice specified below;

     (5) the Company or any Subsidiary Guarantor fails to comply with any of its agreements
contained in the Securities or this Indenture (other than those referred to in clause (1),
(2), (3) or (4) above) and such failure continues for 60 days after the notice specified
below;

     (6) Indebtedness of the Company, any Subsidiary Guarantor or any Significant
Subsidiary is 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 $30,000,000, or its foreign currency equivalent
at the time;

     (7) the Company, a Subsidiary Guarantor or any Significant Subsidiary pursuant to or
within the meaning of any Bankruptcy Law:

     (A) commences a voluntary case;

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

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

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

     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, any Subsidiary Guarantor or any
Significant Subsidiary in an involuntary case;

     (B) appoints a Custodian of the Company, any Subsidiary Guarantor or any
Significant Subsidiary or for any substantial part of its property; or

     (C) orders the winding up or liquidation of the Company, any Subsidiary
Guarantor or any Significant Subsidiary;

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

     (9) any judgment or decree for the payment of money in excess of $30,000,000 or its
foreign currency equivalent at the time is entered against the Company, any Subsidiary
Guarantor or any Significant Subsidiary, remains

 

54

outstanding for a period of 60 consecutive days following the entry of such judgment
or decree and is not discharged, waived or the execution thereof stayed; or

     (10) except as permitted by this Indenture, any Subsidiary Guaranty ceases to be in
full force and effect (other than in accordance with the terms of such Subsidiary Guaranty)
or any Subsidiary Guarantor denies or disaffirms its obligations under its Subsidiary
Guaranty.

          The foregoing will 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.

          A Default under clauses (4) and (5) is not an Event of Default until the Trustee or the
holders of 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 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 Event of Default under clause (6) or (10) and
any event which with the giving of notice or the lapse of time would become an Event of Default
under clause (4), (5) or (9), its status and what action the Company is taking or proposes to take
with respect thereto.

          SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default
specified in Section 6.01(7) or (8) with respect to the Company) 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 declare the principal of and
accrued but unpaid interest on all the Securities to be due and payable. Upon such a declaration,
such principal and interest shall be due and payable immediately. If an Event of Default specified
in Section 6.01(7) or (8) with respect to the Company occurs, the principal of and interest on all
the Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Securityholders. The Holders of a
majority in principal amount of the Securities by notice to the Trustee may rescind an acceleration
and its consequences if the rescission would not conflict with any judgment or decree and if all
existing Events of Default have been cured or waived except nonpayment of principal or interest
that has become due solely because of acceleration. No such rescission shall affect any subsequent
Default or impair any right consequent thereto.

 

55

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

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

          SECTION 6.04. Waiver of Past Defaults. The Holders of a majority in principal amount
of the Securities then outstanding by notice to the Trustee may waive an existing Default and its
consequences or compliance with any provision of this Indenture except (a) a Default in the payment
of the principal of or interest on a Security (b) a Default arising from the failure to redeem or
purchase any Security when required pursuant to this Indenture or (c) a Default in respect of a
provision that under Section 9.02 cannot be amended without the consent of each Securityholder
affected. When a Default is waived, it is deemed cured, but no such waiver shall extend to any
subsequent or other Default or impair any consequent right.

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

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

     (1) the Holder gives to the Trustee written notice stating that an Event of Default is
continuing;

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

     (3) such Holder or Holders offer to the Trustee reasonable security or indemnity
against any loss, liability or expense;

 

56

     (4) the Trustee does not comply with the request within 60 days after 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 do not
give the Trustee a direction inconsistent with the request during 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. In the event that the
Definitive Securities are not issued to any beneficial owner promptly after the Registrar has
received a request from the Holder of a Global Security to issue such Definitive Securities to such
beneficial owner or its nominee, the Company expressly agrees and acknowledges, with respect to the
right of any Holder to pursue a remedy pursuant to this Indenture, the right of such beneficial
holder of Securities to pursue such remedy with respect to the portion of the Global Security that
represents such beneficial holder’s Securities as if such Definitive Securities had been issued.

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

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

          SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee and the Securityholders allowed in any judicial proceedings relative to the Company,
its creditors or its property and, unless prohibited by law or applicable regulations, may vote on
behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to
make payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and
any other amounts due the Trustee under Section 7.07.

          Priorities. If the Trustee collects any money or property pursuant to this Article 6,
it shall pay out the money or property in the following order:

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

 

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     SECOND: to Securityholders 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.

          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 6.10. 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 a Holder pursuant to
Section 6.07 or a suit by Holders of more than 10% in aggregate principal amount of the Securities.

          SECTION 6.11. Waiver of Stay or Extension Laws. The Company (to the extent it may
lawfully do so) shall not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this Indenture; and the
Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law, and shall not hinder, delay or impede the execution of any power herein granted to
the Trustee, but shall suffer and permit the execution of every such power as though no such law
had been enacted.

Article 7

Trustee

          SECTION 7.01. Duties of Trustee. (a) If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use
the same degree of care and skill in their exercise as a prudent Person would exercise or use under
the circumstances in the conduct of such Person’s own affairs.

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

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

 

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

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

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

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

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

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

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

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

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

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

          SECTION 7.02. Rights of Trustee. (a) The Trustee may conclusively rely on any
document believed by it to be genuine and to have been signed or presented by the proper person.
The Trustee need not investigate any fact or matter stated in the document.

          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel. The Trustee shall not be liable for any

 

59

           action it takes or omits to take in good faith in reliance on the Officers’ Certificate or
Opinion of Counsel.

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

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

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

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

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

          (h) The rights, privileges, protections, immunities and benefits given to the Trustee,
including its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in
each of its capacities hereunder, and each agent, custodian and other Person employed by the
Trustee to act hereunder.

          SECTION 7.03. Individual Rights of Trustee. The Trustee in its individual or any
other capacity may become the owner or pledgee of Securities and may otherwise deal with the
Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying
Agent, Registrar, co-registrar or co-paying agent may do the same with like rights. However, the
Trustee must comply with Sections 7.10 and 7.11.

 

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

          SECTION 7.05. Notice of Defaults. If a Default occurs, is continuing and is actually
known to the Trustee, the Trustee shall mail to each Securityholder notice of the Default within 90
days after it occurs. Except in the case of a Default in the payment of principal of or interest
on any Security (including payments pursuant to the mandatory redemption provisions of such
Security, if any), the Trustee may withhold the notice if and so long as it in good faith
determines that withholding the notice is not opposed to the interests of the Securityholders.

          SECTION 7.06. 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 May
15 that complies with TIA § 313(a) if and to the extent required thereby. The Trustee also shall
comply with TIA § 313(b).

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

          SECTION 7.07. Compensation and Indemnity. The Company shall pay to the Trustee from
time to time reasonable compensation for its services. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company shall reimburse
the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and advances of the Trustee’s
agents, counsel, accountants and experts. The Company and each Subsidiary Guarantor shall, jointly
and severally, indemnify the Trustee against any and all loss, liability or expense (including
reasonable attorneys’ fees) incurred by it in connection with the administration of this trust and
the performance of its duties hereunder. The Trustee shall notify the Company promptly of any
claim for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not
relieve the Company of its obligations hereunder, unless the Company is materially prejudiced by
such failure. The Company shall defend the claim and the Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel. The Company need not reimburse
any expense or indemnify against any loss, liability or expense incurred by the Trustee through the
Trustee’s own wilful misconduct, negligence or bad faith.

 

61

          To secure the Company’s payment obligations in this Section, 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 Company’s payment obligations pursuant to this Section shall survive the discharge of this
Indenture. When the Trustee incurs expenses after the occurrence of a Default specified in Section
6.01(7) or (8) with respect to the Company, the expenses are intended to constitute expenses of
administration under the Bankruptcy Law.

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

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

     (2) the Trustee is adjudged bankrupt or insolvent;

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

     (4) the Trustee otherwise becomes incapable of acting.

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

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

          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 10% in principal amount of the Securities may
petition any court of competent jurisdiction for the appointment of a successor Trustee.

          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.

 

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

          SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges
or converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Trustee, provided such corporation shall be
otherwise qualified and eligible under this Article 7, without the execution or filing of any paper
or any further act on the part of any of the other parties hereto.

          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 $50,000,000 as set forth in its most recent published annual report of condition. The
Trustee shall comply with TIA § 310(b), subject to its right to apply for a stay of its duty to
resign under the penultimate paragraph of 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.

Article 8

Discharge of Indenture; Defeasance

          SECTION 8.01. Discharge of Liability on Securities; Defeasance. (a) When (1) the
Company delivers to the Trustee all outstanding Securities (other than Securities replaced pursuant
to Section 2.07) for cancellation or (2) all outstanding Securities have become due and payable,
whether at maturity or on a redemption date as a result of the mailing of a notice of redemption
pursuant to Article 3 hereof and the

 

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Company irrevocably deposits with the Trustee funds sufficient to pay at maturity or upon
redemption all outstanding Securities, including interest thereon to maturity or such redemption
date (other than Securities replaced pursuant to Section 2.07), and if in either case the Company
pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section
8.01(c), cease to be of further effect. The Trustee shall acknowledge satisfaction and discharge
of this Indenture on demand of the Company accompanied by an Officers’ Certificate and an Opinion
of Counsel and at the cost and expense of the Company.

          (b) Subject to Sections 8.01(c) and 8.02, the Company at any time may terminate (1) all its
obligations under the Securities and this Indenture and have each Subsidiary Guarantor’s obligation
discharged with respect to its Guarantee (“legal defeasance option”) or (2) its obligations under
Sections 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11 and 4.12 and the operation of
Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case of Sections 6.01(7) and
(8), with respect only to Significant Subsidiaries and Subsidiary Guarantors) and the limitations
contained in Section 5.01(a)(3) (“covenant defeasance option”). 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, payment of the Securities may not be
accelerated because of an Event of Default with respect thereto. 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 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case of
Sections 6.01(7) and (8), with respect only to Significant Subsidiaries and Subsidiary Guarantors)
or because of the failure of the Company to comply with Section 5.01(a)(3). If the Company
exercises its legal defeasance option or its covenant defeasance option, each Subsidiary Guarantor,
if any, shall be released from all its obligations with respect to its Subsidiary Guaranty.

          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 clauses (a) and (b) above, the Company’s obligations in Sections 2.03,
2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and 7.08 and in this Article 8 shall survive until the
Securities have been paid in full. Thereafter, the Company’s obligations in Sections 7.07, 8.04
and 8.05 shall survive.

          SECTION 8.02. 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 money or U.S.
Government Obligations for the payment of principal of and interest on the Securities to
maturity or redemption, as the case may be;

 

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     (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 or redemption, as the case may be;

     (3) 123 days pass after the deposit is made and during the 123-day period no Default
specified in Sections 6.01(7) or (8) with respect to the Company occurs which is continuing
at the end of the period;

     (4) the deposit does not constitute a default under any other agreement binding on the
Company;

     (5) 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;

     (6) in the case of the legal defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel stating that (A) the Company has received from, or there
has been published by, the Internal Revenue Service a ruling, or (B) 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 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 defeasance had
not occurred;

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

     (8) 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 as contemplated by this Article 8 have been complied with.

          Before or after a deposit, the Company may make arrangements satisfactory to the Trustee for
the redemption of Securities at a future date in accordance with Article 3.

          SECTION 8.03. Application of Trust Money. The Trustee shall hold in trust money or
U.S. Government Obligations deposited with it pursuant to this

 

65

Article
 8. 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 8.04. 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 at any time
which, in the written opinion of nationally recognized firm of independent public accountants
delivered to the Trustee (which delivery shall only be required if Government Obligations have been
so deposited), are in excess of the amount thereof which would then be required to be deposited to
effect an equivalent discharge or defeasance in accordance with this Article.

          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 or interest that
remains unclaimed for two years, and, thereafter, Securityholders entitled to the money must look
to the Company for payment as general creditors.

          SECTION 8.05. Indemnity for 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 8.06. Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article 8 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s and each Subsidiary
Guarantor’s obligations under this Indenture, each Subsidiary Guaranty and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to this Article 8 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 8; provided, however, that, if the Company has made
any payment of interest on or principal of any Securities because of the reinstatement of its
obligations, the Company 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 9

Amendments

          SECTION 9.01. Without Consent of Holders. The Company, the Subsidiary Guarantors
(with respect to a Subsidiary Guaranty or any provision of this Indenture to which it is a party)
and the Trustee may amend, modify or supplement this Indenture or the Securities without notice to
or consent of any Securityholder:

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

 

66

     (2) to comply with Article 5;

     (3) to provide for uncertificated Securities in addition to or in place of
certificated Securities; provided, however, 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, including any Subsidiary
Guaranties, or to secure the Securities;

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

     (6) to comply with any requirements of the SEC in connection with qualifying, or
maintaining the qualification of, this Indenture under the TIA;

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

     (8) to make any amendment to the provisions of this Indenture relating to the transfer
and legending of Securities; provided, however, that (a) compliance with
this Indenture as so amended would not result in Securities being transferred in violation
of the Securities Act or any other applicable securities law and (b) such amendment does
not materially and adversely affect the rights of Holders to transfer Securities;

     (9) to conform the text of this Indenture, the Securities and the Subsidiary
Guaranties to any provision of the “Description of the Notes” Section of the Confidential
Offering Circular of the Company dated January 26, 2007, to the extent that such provision
in such Section was intended to be a verbatim recitation of a provision of this Indenture,
the Securities or the Subsidiary Guaranties;

     (10) to provide for the issuance of the Exchange Securities; or

     (11) to evidence and provide for the acceptance and appointment of a successor
Trustee.

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

          SECTION 9.02. With Consent of Holders. The Company, the Subsidiary Guarantors and the
Trustee may amend this Indenture or the Securities with the written consent of the Holders of at
least a majority in principal amount of the

 

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Securities then outstanding (including consents obtained in connection with a tender offer or
exchange for the Securities) and any past default or compliance with any provisions may also be
waived with the consent of the Holders of at least a majority in principal amount of the Securities
then outstanding. However, without the consent of each Securityholder affected thereby, an
amendment or waiver may not:

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

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

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

     (4) reduce the amount payable upon the redemption of any Security or change the time
at which any Security may be redeemed as described in Article 3 hereto or paragraph 5 of
the Securities;

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

     (6) make any changes in the ranking or priority of any Security that would adversely
affect the Securityholders;

     (7) make any change in Section 6.04 or 6.07 or the second sentence of this Section; or

     (8) make any change in, or release other than in accordance with the terms of this
Indenture, any Subsidiary Guaranty that would adversely affect the Securityholders.

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

          SECTION 9.04. Revocation and Effect of Consents and Waivers. A consent to an
amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder
of that Security or portion of the Security that evidences the same debt as the consenting Holder’s
Security, even if notation of the consent or waiver

 

68

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 or waiver becomes effective. After an
amendment or waiver becomes effective, it shall bind every Securityholder. An amendment or waiver
becomes effective upon the execution of such amendment or waiver by the Trustee.

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

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

          SECTION 9.06. Trustee To Sign Amendments. The Trustee shall sign any amendment
authorized pursuant to this Article 9 if the amendment does not adversely affect the rights,
duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign
it. In signing such amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Section 7.01) shall be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is
authorized or permitted by this Indenture and that such amendment, supplement or waiver is the
legal, valid and binding obligation of the Company and the Subsidiary Guarantors, enforceable
against them in accordance with its terms, subject to customary exceptions, and complies with the
provisions hereof (including Section 9.03).

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

 

69

Article 10

Subsidiary Guaranties

          SECTION 10.01. Guaranties. Each Subsidiary Guarantor hereby unconditionally and
irrevocably guarantees, jointly and severally, to each Holder and to the Trustee and its successors
and assigns (a) the full and punctual payment of principal of and interest on the Securities when
due, whether at maturity, by acceleration, by redemption or otherwise, and all other monetary
obligations of the Company under this Indenture and the Securities and (b) the full and punctual
performance within applicable grace periods of all other obligations of the Company under this
Indenture and the Securities (all the foregoing being hereinafter collectively called the
“Guaranteed Obligations”). Each Subsidiary Guarantor further agrees that the Guaranteed
Obligations may be extended or renewed, in whole or in part, without notice or further assent from
such Subsidiary Guarantor and that such Subsidiary Guarantor will remain bound under this Article
10 notwithstanding any extension or renewal of any Guaranteed Obligation.

          Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to the
Company of any of the Guaranteed Obligations and also waives notice of protest for nonpayment.
Each Subsidiary Guarantor waives notice of any default under the Securities or the Guaranteed
Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by (1)
the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or
remedy against the Company or any other Person (including any Subsidiary Guarantor) under this
Indenture, the Securities or any other agreement or otherwise; (2) any extension or renewal of any
thereof; (3) any rescission, waiver, amendment or modification of any of the terms or provisions of
this Indenture, the Securities or any other agreement; (4) the release of any security held by any
Holder or the Trustee for the Guaranteed Obligations or any of them; (5) the failure of any Holder
or the Trustee to exercise any right or remedy against any other guarantor of the Guaranteed
Obligations; or (6) any change in the ownership of such Subsidiary Guarantor (except as expressly
set forth in Section 10.06).

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

          Except as expressly set forth in Sections 8.01(b), 10.02 and 10.06, the obligations of each
Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or unenforceability of the
Guaranteed Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of each Subsidiary Guarantor herein shall not be discharged or impaired or otherwise
affected by the failure of any Holder or the Trustee to assert any claim or demand or to enforce
any remedy

 

 

70

under this Indenture, the Securities or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the obligations, or by any other act or thing or omission or delay to do any other
act or thing which may or might in any manner or to any extent vary the risk of such 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 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 Obligation is rescinded or must otherwise be restored by any Holder
or the Trustee upon the bankruptcy or reorganization of the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder or
the Trustee has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the
failure of the Company to pay the principal of or interest on any Guaranteed Obligation when and as
the same shall become due, whether at maturity, by acceleration, by redemption or otherwise, or to
perform or comply with any other Guaranteed Obligation, each 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 or the Trustee an amount equal to the sum of (A) the unpaid amount of such
Guaranteed Obligations, (B) accrued and unpaid interest on such Guaranteed Obligations (but only to
the extent not prohibited by law) and (C) all other monetary Guaranteed Obligations of the Company
to the Holders and the Trustee.

          Each Subsidiary Guarantor agrees that, as between it, on the one hand, and the Holders and the
Trustee, on the other hand, (i) the maturity of the Guaranteed Obligations hereby may be
accelerated as provided in Article 6 for the purposes of such Subsidiary Guarantor’s Subsidiary
Guaranty herein, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (ii) in the event of
any declaration of acceleration of such Guaranteed Obligations as provided in Article 6, such
Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by
such Subsidiary Guarantor for the purposes of this Section.

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

          SECTION 10.02. Limitation on Liability. Any term or provision of this Indenture to
the contrary notwithstanding, the maximum aggregate amount of the Guaranteed Obligations guaranteed
hereunder by any Subsidiary Guarantor shall not exceed the maximum amount that can be hereby
guaranteed without rendering this Indenture, as it relates to such Subsidiary Guarantor, voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally.

 

71

          SECTION 10.03. Successors and Assigns. This Article 10 shall be binding upon each
Subsidiary Guarantor and its successors and assigns and shall enure to the benefit of the
successors and assigns of the Trustee and the Holders and, in the event of any transfer or
assignment of rights by any Holder or the Trustee in accordance with this Indenture and the
Securities, the rights and privileges conferred upon that party in this Indenture and in the
Securities shall automatically extend to and be vested in such transferee or assignee, all subject
to the terms and conditions of this Indenture.

          SECTION 10.04. No Waiver. Neither a failure nor a delay on the part of either the
Trustee or the Holders in exercising any right, power or privilege under this Article 10 shall
operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise of any right, power or privilege. The rights, remedies and benefits of the
Trustee and the Holders herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article 10 at law, in equity, by
statute or otherwise.

          SECTION 10.05. Modification. No modification, amendment or waiver of any provision of
this Article 10, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in
any event be effective unless the same shall be in writing and signed by the Trustee, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which
given. No notice to or demand on any Subsidiary Guarantor in any case shall entitle such
Subsidiary Guarantor to any other or further notice or demand in the same, similar or other
circumstances.

          SECTION 10.06. Release of Subsidiary Guarantor. A Subsidiary Guarantor will be
released from its obligations under this Article 10 (other than any obligation that may have arisen
under Section 10.07)

     (1) upon the sale, disposition or other transfer (including by way of consolidation or
merger) of the Capital Stock (including any sale, disposition or other transfer following
which the applicable Subsidiary Guarantor is no longer a Restricted Subsidiary), or all or
substantially all the assets, of the applicable Subsidiary Guarantor if such sale,
disposition or other transfer is made in compliance with this Indenture, in each case other
than to the Company or a Subsidiary of the Company; provided, however, that
such Subsidiary Guarantor is released from its guarantees, if any, of, and all pledges and
security, if any, granted in connection with, the Term B Senior Credit Facility and any
other Indebtedness of the Company or of any Restricted Subsidiary of the Company,

     (2) upon the designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in
accordance with the terms of this Indenture,

     (3) upon the release or discharge of all Guarantees by such Restricted Subsidiary and
the repayment of all Indebtedness of such Restricted Subsidiary which, if Incurred by such
Restricted Subsidiary, would require such Restricted Subsidiary to Guarantee the Securities
under Section 4.12,

 

72

     (4) upon defeasance of the Securities pursuant to Article 8, or

     (5) upon the full satisfaction of the Company’s obligations under this Indenture
pursuant to Section 8.01(a) or otherwise in accordance with the terms of this Indenture;

provided, however, that in the case of clauses (1) and (2) above, (i) such
sale or other disposition is made to a Person other than the Company or a Subsidiary of the
Company, (ii) such sale or disposition is otherwise permitted by this Indenture and (iii)
the Company provides an Officers’ Certificate to the Trustee to the effect that the Company
will comply with its obligations under Section 4.06.

At the request of the Company, the Trustee shall, at the sole cost and expense of the Company and
upon receipt at the reasonable request of the Trustee of an Opinion of Counsel and Officer’s
Certificate that the provision of this Section 10.06 have been complied with, execute and deliver
an appropriate instrument evidencing such release.

          SECTION 10.07. Contribution. Each Subsidiary Guarantor that makes a payment under its
Subsidiary Guaranty shall be entitled upon payment in full of all Guaranteed Obligations under this
Indenture to a contribution from each other Subsidiary Guarantor in an amount equal to such other
Subsidiary Guarantor’s pro rata portion of such payment based on the respective net
assets of all the Subsidiary Guarantors at the time of such payment determined in accordance with
GAAP.

Article 11

Miscellaneous

          SECTION 11.01. Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies or conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.

          SECTION 11.02. Notices. Any notice or communication shall be in writing and delivered
in person or mailed by first-class mail addressed as follows:

 

73

if to the Company or any Subsidiary Guarantor:

Alion Science and Technology Corporation

1750 Tysons Boulevard

Suite 1300

McLean, VA 22102

Attention of:

James Fontana, Esq.

General Counsel

if to the Trustee:

Wilmington Trust Company

1100 North Market Street

Wilmington, DE 19890-1615

Attention of:

Corporate Trust Department

          The Company, any Subsidiary Guarantor 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.

          SECTION 11.03. 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, any Subsidiary Guarantor, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

          SECTION 11.04. Certificate and Opinion as to Conditions Precedent. Upon any request
or application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, 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 signer, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with; and

 

74

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

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

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

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

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

          SECTION 11.06. When Securities Disregarded. In determining whether the Holders of the
required principal amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Company shall be disregarded and deemed not
to be outstanding, except that, for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which the Trustee
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 11.07. Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by or a meeting of Securityholders. The Registrar and the Paying Agent
may make reasonable rules for their functions.

          SECTION 11.08. Legal Holidays. 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 11.09. Governing Law. This Indenture and the Securities shall be governed by,
and construed in accordance with, the laws of the State of New York.

          SECTION 11.10. No Recourse Against Others. A director, officer, employee,
incorporator or stockholder, as such, of the Company or any Subsidiary

 

75

Guarantor shall not have any liability for any obligations of the Company under the Securities
or this Indenture or of such Subsidiary Guarantor under its Subsidiary Guaranty, 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 11.11. Successors. All agreements of the Company in this Indenture and the
Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors.

          SECTION 11.12. 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 11.13. Table of Contents; Headings. The table of contents, cross-reference
sheet and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify
or restrict any of the terms or provisions hereof.

 

 

76

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

	 	 	 	 	 
	 	ALION SCIENCE AND TECHNOLOGY CORPORATION,

 	 
	 	By 	 /s/ John M. Hughes	 
	 	 	Name:  John M. Hughes	 
	 	 	Title:  Executive VP and CFO	 
	 
	 	HUMAN FACTORS APPLICATION, INC.,

 	 
	 	By 	 /s/ John M. Hughes	 
	 	 	Name:  John M. Hughes	 
	 	 	Title:  Treasurer	 
	 
	 	ALION — METI CORPORATION,

 	 
	 	by 	 /s/ John M. Hughes	 
	 	 	Name:  John M. Hughes	 
	 	 	Title:  Treasurer	 
	 
	 	ALION — CATI CORPORATION,

 	 
	 	by 	 /s/ John M. Hughes	 
	 	 	Name:  John M. Hughes	 
	 	 	Title:  Treasurer	 
	 
	 	ALION — JJMA CORPORATION,

 	 
	 	by 	 /s/ John M. Hughes	 
	 	 	Name:  John M. Hughes	 
	 	 	Title:  Treasurer	 

 

77

	 	 	 	 	 

	 	 	 	 	 
	 	ALION — BMH CORPORATION,

 	 
	 	by 	 /s/ John M. Hughes	 
	 	 	Name:  John M. Hughes	 
	 	 	Title:  Treasurer	 
	 
	 	WASHINGTON CONSULTING, INC.,

 	 
	 	by 	 /s/ John M. Hughes	 
	 	 	Name:  John M. Hughes	 
	 	 	Title:  Treasurer	 
	 
	 	ALION — MA&D CORPORATION,

 	 
	 	by 	 /s/ John M. Hughes	 
	 	 	Name:  John M. Hughes	 
	 	 	Title:  Treasurer	 

 

78

	 	 	 	 	 

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY,

 	 
	 	By 	 /s/ James S. McGinley	 
	 	 	Name:  James S. McGinley	 
	 	 	Title:  Authorized Signer	 
	 

 

RULE 144A/REGULATION S APPENDIX

PROVISIONS RELATING TO INITIAL SECURITIES,

PRIVATE EXCHANGE SECURITIES

AND EXCHANGE SECURITIES

     1. Definitions

     1.1 Definitions

          For the purposes of this Appendix the following terms shall have the meanings indicated below:

          “Applicable Procedures” means, with respect to any transfer or transaction involving a
Temporary Regulation S Global Security or beneficial interest therein, the rules and procedures of
the Depository for such a Temporary Regulation S Global Security, to the extent applicable to such
transaction and as in effect from time to time.

          “Definitive Security” means a certificated Initial Security or Exchange Security or Private
Exchange Security bearing, if required, the appropriate restricted securities legend set forth in
Section 2.3(e).

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

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

          “Exchange Securities” means (1) the 101/4% Senior Notes due 2015 issued pursuant to the
Indenture in connection with a Registered Exchange Offer pursuant to a Registration Rights
Agreement and (2) Additional Securities, if any, issued pursuant to a registration statement filed
with the SEC under the Securities Act.

          “IAI” means an institutional “accredited investor”, as defined in Rule 501(a)(1), (2), (3) and
(7) of Regulation D under the Securities Act.

          “Initial Purchaser” means (1) with respect to the Initial Securities issued on the Issue Date,
Credit Suisse Securities (USA) LLC, and (2) with respect to each issuance of Additional Securities,
the Persons purchasing such Additional Securities under the related Purchase Agreement.

          “Initial Securities” means (1) $250,000,000 aggregate principal amount of 101/4% Senior Notes
due 2015 issued on the Issue Date and (2) Additional Securities, if any, issued in a transaction
exempt from the registration requirements of the Securities Act.

 

2

          “Private Exchange” means the offer by the Company, pursuant to a Registration Rights
Agreement, to the Initial Purchaser to issue and deliver to the Initial Purchaser, in exchange for
the Initial Securities held by the Initial Purchaser as part of its initial distribution, a like
aggregate principal amount of Private Exchange Securities.

          “Private Exchange Securities” means any 101/4% Senior Notes due 2015 issued in connection with a
Private Exchange.

          “Purchase Agreement” means (1) with respect to the Initial Securities issued on the Issue
Date, the Purchase Agreement dated January 26, 2007, among the Company, the Subsidiary Guarantors
and the Initial Purchaser, and (2) with respect to each issuance of Additional Securities, the
purchase agreement or underwriting agreement among the Company and the Persons purchasing such
Additional Securities.

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

          “Registered Exchange Offer” means the offer by the Company, pursuant to a Registration Rights
Agreement, to certain Holders of Initial Securities, to issue and deliver to such Holders, in
exchange for the Initial Securities, a like aggregate principal amount of Exchange Securities
registered under the Securities Act.

          “Registration Rights Agreement” means (1) with respect to the Initial Securities issued on the
Issue Date, the Registration Rights Agreement dated February 8, 2007 among the Company, the
Subsidiary Guarantors and the Initial Purchaser and (2) with respect to each issuance of Additional
Securities issued in a transaction exempt from the registration requirements of the Securities Act,
the registration rights agreement, if any, among the Company and the Persons purchasing such
Additional Securities under the related Purchase Agreement.

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

          “Securities” means the Initial Securities, the Exchange Securities and the Private Exchange
Securities, treated as a single class.

          “Securities Act” means the Securities Act of 1933.

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

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

          “Transfer Restricted Securities” means Securities that bear or are required to bear the legend
relating to restrictions on transfer relating to the Securities Act set forth in Section 2.3(e)
hereto.

 

3

     1.2 Other Definitions

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section:
	“Agent Members”
	 	 	2.1	(b)
	“Global Securities”
	 	 	2.1	(a)
	“IAI Global Security”
	 	 	2.1	(a)
	“Permanent Regulation S Global Security”
	 	 	2.1	(a)
	“Regulation S”
	 	 	2.1	(a)
	“Regulation S Global Security”
	 	 	2.1	(a)
	“Rule 144A”
	 	 	2.1	(a)
	“Rule 144A Global Security”
	 	 	2.1	(a)
	“Temporary Regulation S Global Security”
	 	 	2.1	(a)

     2. The Securities.

     2.1 (a) Form and Dating. The Initial Securities will be offered and sold by the
Company pursuant to a Purchase Agreement. The Initial Securities will be resold initially only to
(i) QIBs in reliance on Rule 144A under the Securities Act (“Rule 144A”) and (ii) Persons other
than U.S. Persons (as defined in Regulation S) in reliance on Regulation S under the Securities Act
(“Regulation S”). Initial Securities may thereafter be transferred to, among others, QIBs, IAIs
and purchasers in reliance on Regulation S, subject to the restrictions on transfer set forth
herein. Initial Securities initially resold pursuant to Rule 144A shall be issued initially in the
form of one or more permanent global Securities in definitive, fully registered form (collectively,
the “Rule 144A Global Security”); Initial Securities initially resold to IAIs shall be issued
initially in the form of one or more permanent global Securities in definitive, fully registered
form (collectively, the “IAI Global Security”); and Initial Securities initially resold pursuant to
Regulation S shall be issued initially in the form of one or more temporary global Securities in
fully registered form (collectively, the “Temporary Regulation S Global Security”), in each case
without interest coupons and with the global securities legend and the applicable restricted
securities legend set forth in Exhibit 1 hereto, which shall be deposited on behalf of the
purchasers of the Initial Securities represented thereby with the Securities Custodian and
registered in the name of the Depository or a nominee of the Depository, duly executed by the
Company and authenticated by the Trustee as provided in this Indenture. Except as set forth in
this Section 2.1(a), beneficial ownership interests in the Temporary Regulation S Global Security
will not be exchangeable for interests in the Rule 144A Global Security, the IAI Global Security, a
permanent global Security (the “Permanent Regulation S Global Security”, and together with the
Temporary Regulation S Global Security, the “Regulation S Global Security”) or any other Security
prior to the expiration of the Distribution Compliance Period and then, after the expiration of the

 

4

Distribution Compliance Period, may be exchanged for interests in a Rule 144A Global Security, an
IAI Global Security or the Permanent Regulation S Global Security only upon certification in form
reasonably satisfactory to the Trustee that (i) beneficial ownership interests in such Temporary
Regulation S Global Security are owned either by non-U.S. persons or U.S. persons who purchased such interests in a transaction that did not
require registration under the Securities Act and (ii) in the case of an exchange for an IAI Global
Security, certification that the interest in the Temporary Regulation S Global Security is being
transferred to an institutional “accredited investor” under the Securities Act that is an
institutional accredited investor acquiring the securities for its own account or for the account
of an institutional accredited investor.

          Beneficial interests in Temporary Regulation S Global Securities or IAI Global Securities may
be exchanged for interests in Rule 144A Global Securities if (1) such exchange occurs in connection
with a transfer of Securities in compliance with Rule 144A and (2) the transferor of the beneficial
interest in the Temporary Regulation S Global Security or the IAI Global Security, as applicable,
first delivers to the Trustee a written certificate (in a form satisfactory to the Trustee) to the
effect that the beneficial interest in the Temporary Regulation S Global Security or the IAI Global
Security, as applicable, is being transferred to a Person (a) who the transferor reasonably
believes to be a QIB, (b) purchasing for its own account or the account of a QIB in a transaction
meeting the requirements of Rule 144A, and (c) in accordance with all applicable securities laws of
the States of the United States and other jurisdictions.

          Beneficial interests in Temporary Regulation S Global Securities and Rule 144A Global
Securities may be exchanged for an interest in IAI Global Securities if (1) such exchange occurs in
connection with a transfer of the securities in compliance with an exemption under the Securities
Act and (2) the transferor of the Regulation S Global Security or Rule 144A Global Security, as
applicable, first delivers to the trustee a written certificate (substantially in the form of
Exhibit 2) to the effect that (A) the Regulation S Global Security or Rule 144A Global Security, as
applicable, is being transferred (a) to an “accredited investor” within the meaning of
501(a)(1),(2),(3) and (7) under the Securities Act that is an institutional investor acquiring the
securities for its own account or for the account of such an institutional accredited investor, in
each case in 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 and (B) in accordance with all applicable securities laws of the States of the
United States and other jurisdictions.

          Beneficial interests in a Rule 144A Global Security or an IAI Global Security may be
transferred to a Person who takes delivery in the form of an interest in a Regulation S Global
Security, whether before or after the expiration of the Distribution Compliance Period, only if the
transferor first delivers to the Trustee a written certificate (in the form provided in the
Indenture) to the effect that such transfer is being made in accordance with Rule 903 or 904 of
Regulation S or Rule 144 (if applicable).

          The Rule 144A Global Security, the IAI Global Security, the Temporary Regulation S Global
Security and the Permanent Regulation S Global Security are

 

5

collectively referred to herein as
“Global Securities”. The aggregate principal amount of the Global Securities may from time to time
be increased or decreased by adjustments made on the records of the Trustee and the Depository or
its nominee as hereinafter provided.

          (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a Global Security
deposited with or on behalf of the Depository.

          The Company shall execute and the Trustee shall, in accordance with this Section 2.1(b),
authenticate and deliver initially one or more Global Securities that (a) shall be registered in
the name of the Depository for such Global Security or Global Securities or the nominee of such
Depository and (b) shall be delivered by the Trustee to such Depository or pursuant to such
Depository’s instructions or held by the Trustee as custodian for the Depository.

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

          (c) Definitive Securities. Except as provided in this Section 2.1 or Section 2.3 or
2.4, owners of beneficial interests in Global Securities shall not be entitled to receive physical
delivery of Definitive Securities.

     2.2 Authentication. The Trustee shall authenticate and deliver: (1) on the Issue
Date, an aggregate principal amount of $250,000,000 101/4% Senior Notes due 2015, (2) any Additional
Securities for an original issue in an aggregate principal amount specified in the written order of
the Company pursuant to Section 2.02 of the Indenture and (3) Exchange Securities or Private
Exchange Securities for issue only in a Registered Exchange Offer or a Private Exchange,
respectively, pursuant to a Registration Rights Agreement, for a like principal amount of Initial
Securities, in each case upon a written order of the Company signed by at least one Officer. Such
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, in the case of any issuance of Additional
Securities pursuant to Section 2.13 of the Indenture, shall certify that such issuance is in
compliance with Section 4.03 of the Indenture.

 

6

     2.3 Transfer and Exchange.

          (a) Transfer and Exchange of Definitive Securities. When Definitive Securities are
presented to the Registrar with a request:

	 	(x)	 	to register the transfer of such Definitive Securities; or
	 
	 	(y)	 	to exchange such Definitive Securities for an equal principal
amount of Definitive Securities of other authorized denominations,

the Registrar shall register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met; provided, however, that the Definitive
Securities surrendered for transfer or exchange:

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

     (ii) if such Definitive Securities are required to bear a restricted securities
legend, they are being transferred or exchanged pursuant to an effective registration
statement under the Securities Act, pursuant to Section 2.3(b) or pursuant to clause (A),
(B) or (C) below, and are accompanied by the following additional information and
documents, as applicable:

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

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

     (C) if such Definitive Securities are being transferred (x) pursuant to an
exemption from registration in accordance with Rule 144A, Regulation S or Rule 144
under the Securities Act; or (y) in reliance upon another exemption from the
requirements of the Securities Act: (i) a certification to that effect (in the form
set forth on the reverse of the Security) and (ii) if the Company so requests, an
opinion of counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the legend set forth in Section
2.3(e)(i).

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

 

7

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

     (ii) written instructions directing the Trustee to make, or to direct the
Securities Custodian to make, an adjustment on its books and records with respect
to such Rule 144A Global Security (in the case of a transfer pursuant to clause
(b)(i)(A)), IAI Global Security (in the case of a transfer pursuant to clause
(b)(1)(B)) or Permanent Regulation S Global Security (in the case of a transfer
pursuant to clause (b)(i)(B)) to reflect an increase in the aggregate principal
amount of the Securities represented by the Rule 144A Global Security, IAI Global
Security or Permanent Regulation S Global Security, as applicable, such
instructions to contain information regarding the Depository account to be credited
with such increase,

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

          (c) Transfer and Exchange of Global Securities.

     (i) The transfer and exchange of Global Securities or beneficial interests
therein shall be effected through the Depository, in accordance with this Indenture
(including applicable restrictions on transfer set forth herein, if any) and the
procedures of the Depository therefor. A transferor of a beneficial interest in a
Global Security shall deliver to the Registrar a written order given in accordance
with the Depository’s procedures containing information regarding the participant
account of the Depository to be credited with a beneficial interest in the

 

8

Global Security. The Registrar shall, in accordance with such instructions instruct the
Depository to credit to the account of the Person specified in such instructions a
beneficial interest in the Global Security and to debit the account of the Person
making the transfer the beneficial interest in the Global Security being
transferred.

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

     (iii) Notwithstanding any other provisions of this Appendix (other than the
provisions set forth in Section 2.4), a Global Security may not be transferred as a
whole except by the Depository to a nominee of the Depository or by a nominee of
the Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such
successor Depository.

     (iv) In the event that Global Security is exchanged for Definitive Securities
to Section 2.4 of this Appendix, prior to the consummation of a Registered Exchange
Offer or the effectiveness of a Shelf Registration Statement with respect to such
Securities, such Securities may be exchanged only in accordance with such
procedures as are substantially consistent with the provisions of this Section 2.3
(including the certification requirements set forth on the reverse of the Initial
Securities intended to ensure that such transfers comply with Rule 144A, Regulation
S or another applicable exemption under the Securities Act, as the case may be) and
such other procedures as may from time to time be adopted by the Company.

          (d) Restrictions on Transfer of Temporary Regulation S Global Securities. During the
Distribution Compliance Period, beneficial ownership interests in Temporary Regulation S Global
Securities may only be sold, pledged or transferred in accordance with the Applicable Procedures
and only (i) to the Company, (ii) in an offshore transaction in accordance with Regulation S (other
than a transaction resulting in an exchange for an interest in a Permanent Regulation S Global
Security), (iii) pursuant to an effective registration statement under the Securities Act, in each
case in accordance with any applicable securities laws of any State of the United States.

          (e) Legend.

     (i) Except as permitted by the following paragraphs (ii), (iii) and (iv), each
Security certificate evidencing the Global Securities (and all

 

9

Securities issued in exchange therefor or in substitution thereof), in the case of Securities offered
otherwise than in reliance on Regulation S shall bear a legend in substantially the
following form:

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY
NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION
FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A THEREUNDER.

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED
IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (III) TO AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF RULE 501(A)(1),(2),(3) OR (7) UNDER THE SECURITIES ACT THAT,
PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS
SECURITY (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH
TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF SECURITIES LESS
THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH
TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, (IV) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (V) PURSUANT TO EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT,
IN EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE WITH ANY

 

10

APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

     Each certificate evidencing a Security offered in reliance on Regulation S shall, in
addition to the foregoing, bear a legend in substantially the following form:

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON
EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES
LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S
UNDER THE SECURITIES ACT.

     Each Definitive Security shall also bear the following additional legend:

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

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

     (iii) After a transfer of any Initial Securities or Private Exchange
Securities pursuant to and during the period of the effectiveness of a Shelf
Registration Statement with respect to such Initial Securities or Private Exchange
Securities, as the case may be, all requirements pertaining to legends on such
Initial Security or such Private Exchange

 

11

Security will cease to apply, the requirements requiring any such Initial Security or such Private Exchange Security
issued to certain Holders be issued in global form will cease to apply, and a
certificated Initial Security or Private Exchange Security or an Initial Security
or Private Exchange Security in global form, in each case without restrictive
transfer legends, will be available to the transferee of the Holder of such Initial
Securities or Private Exchange Securities upon exchange of such transferring Holder’s
certificated Initial Security or Private Exchange Security or directions to
transfer such Holder’s interest in the Global Security, as applicable.

     (iv) Upon the consummation of a Registered Exchange Offer with respect to the
Initial Securities, all requirements pertaining to such Initial Securities that
Initial Securities issued to certain Holders be issued in global form will still
apply with respect to Holders of such Initial Securities that do not exchange their
Initial Securities, and Exchange Securities in certificated or global form, in each
case without the restricted securities legend set forth in Exhibit 1 hereto will be
available to Holders that exchange such Initial Securities in such Registered
Exchange Offer.

     (v) Upon the consummation of a Private Exchange with respect to the Initial
Securities, all requirements pertaining to such Initial Securities that Initial
Securities issued to certain Holders be issued in global form will still apply with
respect to Holders of such Initial Securities that do not exchange their Initial
Securities, and Private Exchange Securities in global form with the global
securities legend and the applicable restricted securities legend set forth in
Exhibit 1 hereto will be available to Holders that exchange such Initial Securities
in such Private Exchange.

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

          (g) 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 Depository or
other Person with respect to the accuracy of the records of the Depository or its
nominee or of any participant or member thereof, with respect to any ownership
interest in the Securities or with respect to

 

12

the delivery to any participant, member, beneficial owner or other Person (other than the Depository) of any notice
(including any notice of redemption) or the payment of any amount, 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 under the Securities shall be given
or made only to or upon the order of the registered Holders (which shall be
the Depository 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
Depository subject to the applicable rules and procedures of the Depository. The
Trustee may rely and shall be fully protected in relying upon information furnished
by the Depository 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 Depository 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.

          2.4 Definitive Securities.

          (a) A Global Security deposited with the Depository or with the Trustee as Securities
Custodian for the Depository pursuant to Section 2.1 shall be transferred to the beneficial owners
thereof in the form of Definitive Securities in an aggregate principal amount equal to the
principal amount of such Global Security, in exchange for such Global Security, only if such
transfer complies with Section 2.3 hereof and (i) the Depository notifies the Company that it is
unwilling or unable to continue as Depository for such Global Security and the Depository fails to
appoint a successor depository or if at any time such Depository ceases to be a “clearing agency”
registered under the Exchange Act, in either case, and a successor depository is not appointed by
the Company within 90 days of such notice, or (ii) an Event of Default has occurred and is
continuing or (iii) the Company, in its sole discretion, notifies the Trustee in writing that it
elects to cause the issuance of Definitive Securities under this Indenture.

          (b) Any Global Security that is transferable to the beneficial owners thereof pursuant to this
Section 2.4 shall be surrendered by the Depository to the Trustee located at its principal
corporate trust office in the Borough of Manhattan, The City of New York, to be so transferred, in
whole or from time to time in part, without charge, and the Trustee shall authenticate and deliver,
upon such transfer of each portion of such Global Security, an equal aggregate principal amount of
Definitive Securities of authorized denominations. Any portion of a Global Security transferred
pursuant to this Section 2.4 shall be executed, authenticated and delivered only in denominations
of

 

13

$2,000 principal amount and any integral multiples of $1,000 in excess of $2,000 and registered
in such names as the Depository shall direct. Any Definitive Security delivered in exchange for an
interest in the Transfer Restricted Security shall, except as otherwise provided by Section 2.3(e)
hereof, bear the applicable restricted securities legend and definitive securities legend set forth
in Exhibit 1 hereto.

          (c) Subject to the provisions of Section 2.4(b) hereof, the registered Holder of a Global
Security shall be entitled to 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.

          (d) In the event of the occurrence of one of the events specified in Section 2.4(a) hereof,
the Company shall promptly make available to the Trustee a reasonable supply of Definitive
Securities in definitive, fully registered form without interest coupons. In the event that such
Definitive Securities are not issued, the Company expressly acknowledges, with respect to the right
of any Holder to pursue a remedy pursuant to Section 6.06 of this Indenture, the right of any
beneficial owner of Securities to pursue such remedy with respect to the portion of the Global
Security that represents such beneficial owner’s Securities as if such Definitive Securities had
been issued.

 

 

14

EXHIBIT 1

to RULE 144A/REGULATION S/IAI APPENDIX

[FORM OF FACE OF INITIAL SECURITY]

[Global Securities Legend]

          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 COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS 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
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
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.

          [[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR
COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS
DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF
SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

[Restricted Securities Legend for Securities offered otherwise than in Reliance on Regulation]

          THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND
THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE
SELLER OF THIS SECURITY MAY

 

15

BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER.

          THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY
BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) WITHIN THE
UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (III) TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1),(2),(3) OR (7)
UNDER THE SECURITIES ACT THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER
CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS SECURITY (THE
FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE
PRINCIPAL AMOUNT OF SECURITIES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, (IV) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (V) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE)
OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES
(I) THROUGH (VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

[Restricted Securities Legend for Securities Offered in Reliance on Regulation S.]

          THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT
FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY
U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN
TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

[Temporary Regulation S Global Security Legend]

          EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S
GLOBAL SECURITY WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT

 

16

REGULATION S GLOBAL SECURITY OR ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE SECURITIES
REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE
EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF
REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY
SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR
U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER
THE SECURITIES ACT. DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP
INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED
(I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (III) IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT,
OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES
(I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOTIFY ANY
PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

          BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED FOR
INTERESTS IN A RULE 144A GLOBAL SECURITY, WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY
DISTRIBUTION COMPLIANCE PERIOD, ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF
THE SECURITIES IN COMPLIANCE WITH RULE 144A AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL
SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS
CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO A
PERSON WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A, (B) TO A PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, AND (C) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER
JURISDICTIONS.

          AFTER THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL INTERESTS IN THIS
TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED FOR INTERESTS IN AN IAI GLOBAL SECURITY
ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN COMPLIANCE WITH
AN EXEMPTION UNDER THE SECURITIES ACT AND (2) THE TRANSFEROR OF

 

17

THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE
FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL SECURITY IS BEING
TRANSFERRED (A) TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1),(2),(3) OR (7)
UNDER THE SECURITIES ACT THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER
CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS SECURITY (THE
FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE
PRINCIPAL AMOUNT OF SECURITIES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

          BENEFICIAL INTERESTS IN A RULE 144A GLOBAL SECURITY OR AN IAI GLOBAL SECURITY MAY BE
TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL
SECURITY, WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY
IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS
CERTIFICATE) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903 OR 904 OF
REGULATION S OR RULE 144 (IF AVAILABLE).

[Definitive Securities Legend]

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

 

18

			
	 
	No.                     
	 	$                    

101/4% Senior Notes due 2015

          Alion Science and Technology Corporation, a Delaware corporation, promises to pay to
________________________, or registered assigns, the principal sum of _____________________
Dollars on February 1, 2015.

          Interest Payment Dates: February 1 and August 1, commencing on August 1, 2007.

          Record Dates: January 15 and July 15.

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

Dated:

	 	 	 	 	 
	 	ALION SCIENCE AND TECHNOLOGY CORPORATION,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

	 	 	 	 	 
	WILMINGTON TRUST COMPANY

as Trustee, certifies

that this is one of

the Securities referred

to in the Indenture.

 	 	 
	By  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 

 

19

[FORM OF REVERSE SIDE OF INITIAL SECURITY]

101/4% SENIOR NOTE DUE 2015

1. Interest

          Alion Science and Technology Corporation, a Delaware 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; provided, however, that if a Registration Default (as defined in the
Registration Rights Agreement) occurs, additional interest will accrue on this Security (i) so long
as the Company is subject to, and complies, subject to Rule 12b-25 of the Exchange Act, with, the
periodic reporting requirements of the Exchange Act, at a rate of 0.25% per annum for the first
90-day period immediately following the occurrence of a Registration Default, and such rate will
increase by an additional 0.25% per annum with respect to each subsequent 90-day period until all
Registration Defaults have been cured, up to a maximum additional interest rate of 1.00% per annum
and (ii) otherwise, at a rate of 0.50% per annum for the first 90-day period immediately following
the occurrence of a Registration Default, and such rate will increase by an additional 0.50% per
annum with respect to each subsequent 90-day period until all Registration Defaults have been
cured, up to a maximum additional interest rate of 2.00% per annum, in each case from and including
the date on which any such Registration Default shall occur to but excluding the date on which all
Registration Defaults have been cured. The Company will pay interest semiannually in arrears on
February 1 and August 1 of each year, commencing August 1, 2007. Interest on the Securities will
accrue from the most recent date to which interest has been paid or, if no interest has been paid,
from February 8, 2007. Interest will be computed on the basis of a 360-day year of twelve 30-day
months. The Company will pay interest on overdue principal at the rate borne by this Security plus
1.00% per annum, and it will pay interest on overdue installments of interest at the same rate to
the extent lawful.

2. Method of Payment

          The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered holders of Securities at the close of business on the January 15 or July 15 next
preceding the interest payment date even if Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the United States that
at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Securities represented by a Global Security (including principal, premium and
interest) will be made by wire transfer of immediately available funds to the accounts specified by
the Depository. The Company will make all payments in respect of a certificated Security
(including principal, premium and interest) by mailing a check to the registered address of each
Holder thereof; provided, however, that payments on a certificated Security will be
made 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

 

20

written notice to the Trustee or the Paying Agent to such effect designating such account no
later than 30 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 Company, a Delaware banking corporation (the “Trustee”), will act
as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned
Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4. Indenture

          The Company issued the Securities under an Indenture dated as of February 8, 2007
(“Indenture”), among the Company, the Subsidiary Guarantors and the Trustee. The terms of the
Securities include those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) (the “Act”). Terms defined
in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to the Indenture and the
Act for a statement of those terms.

          The Securities are general unsecured obligations of the Company. The Company shall be
entitled, subject to its compliance with Section 4.03 of the Indenture, to issue Additional
Securities pursuant to Section 2.13 of the Indenture. The Initial Securities issued on the Issue
Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued
in exchange therefor will be treated as a single class for all purposes under the Indenture. The
Indenture contains certain covenants that limit the ability of the Company and its Restricted
Subsidiaries to Incur additional Indebtedness; pay dividends or distributions on, or redeem or
repurchase Capital Stock; make Investments; issue or sell Capital Stock of Restricted Subsidiaries;
engage in transactions with Affiliates; create certain Liens on assets; transfer or sell assets;
Guarantee Indebtedness; restrict dividends or other payments of Restricted Subsidiaries;
consolidate, merge or transfer all or substantially all of its assets and the assets of its
Restricted Subsidiaries; and engage in sale/ leaseback transactions. These covenants are subject
to important exceptions and qualifications.

5. Optional Redemption

          Except as set forth below, the Company shall not be entitled to redeem the Securities.

          On and after February 1, 2011, the Company shall be entitled at its option to redeem all or a
portion of the Securities upon not less than 30 nor more than 60 days’ notice, at the redemption
prices set forth below (expressed in percentages of principal amount on the redemption date), plus
accrued interest to the redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the

 

21

relevant interest payment date), if redeemed during the 12-month period commencing on February
1 of the years set forth below:

	 	 	 	 	 
	Period	 	Redemption Price
	2011
	 	 	105.125	%
	2012
	 	 	102.563	%
	2013 and thereafter
	 	 	100.000	%

          In addition, at any time prior to February 1, 2010, the Company shall be entitled at its
option on one or more occasions to redeem Securities (which includes Additional Securities, if any)
in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the
Securities (which includes Additional Securities, if any) originally issued at a redemption price
(expressed as a percentage of principal amount) of 110.25%, plus accrued and unpaid interest to
the redemption date, with the Net Cash Proceeds from one or more Qualified Equity Offerings;
provided, however, that (1) at least 65% of such aggregate principal amount of
Securities (which includes Additional Securities, if any) remains outstanding immediately after the
occurrence of each such redemption (other than Securities held, directly or indirectly, by the
Company or its Affiliates); and (2) each such redemption occurs within 90 days after the date of
the related Qualified Equity Offering.

          Prior to February 1, 2011, the Company shall be entitled at its option to redeem all, but not
less than all, of the Securities at a redemption price equal to 100% of the principal amount of the
Securities plus the Applicable Premium as of, and accrued and unpaid interest to, the redemption
date (subject to the right of Holders on the relevant record date to receive interest due on the
relevant interest payment date).

6. Notice of Redemption

          Notice of redemption will be mailed at least 30 days but not more than 60 days before the
redemption date to each Holder of Securities to be redeemed at his registered address. Securities
in denominations larger than $2,000 principal amount may be redeemed in part but only in whole
multiples of $1,000. If money sufficient to pay the redemption price of and accrued interest on
all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the
Paying Agent on or before the redemption date and certain other conditions set forth in the
Indenture are satisfied, on and after such date interest ceases to accrue on such Securities (or
such portions thereof) called for redemption.

7. Put Provisions

          Upon a Change of Control, any Holder of Securities will have the right to cause the Company to
repurchase all or any part of the Securities of such Holder at a repurchase price equal to 101% of
the principal amount of the Securities to be repurchased plus accrued interest to the date of
repurchase (subject to the right of Holders

 

22

of record on the relevant record date to receive interest due on the related interest payment
date) as provided in, and subject to the terms of, the Indenture.

8. Guaranty

          The payment by the Company of the principal of, and premium and interest on, the Securities is
fully and unconditionally guaranteed on a joint and several senior basis by each of the Subsidiary
Guarantors to the extent set forth in the Indenture.

9. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of $2,000 principal
amount and whole multiples of $1,000. A Holder may transfer or exchange Securities in accordance
with the Indenture and the restrictions set forth in the Securities. The Registrar 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 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 any Securities
for a period of 15 days before a selection of Securities to be redeemed or 15 days before an
interest payment date.

10. Persons Deemed Owners

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

11. Unclaimed Money

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its request unless applicable 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. Discharge and Defeasance

          Subject to certain conditions, the Company at any time shall be entitled to terminate some or
all of its obligations and the obligations of the Subsidiary Guarantors under the Securities and
the Indenture 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, (a) the Indenture and the Securities
may be amended with the written consent of the Holders of at least a majority in principal amount
outstanding of the Securities and (b) any default or

 

23

noncompliance with any provision may be waived with the written consent of the Holders of a
majority in principal amount outstanding of the Securities. Subject to certain exceptions set
forth in the Indenture, without the consent of any Securityholder, the Company, the Subsidiary
Guarantors and the Trustee shall be entitled to amend the Indenture or the Securities to cure any
ambiguity, omission, defect or inconsistency, or to comply with Article 5 of the Indenture, or to
provide for uncertificated Securities in addition to or in place of certificated Securities, or to
add guarantees with respect to the Securities, including Subsidiary Guaranties, or to secure the
Securities, or to add additional covenants or surrender rights and powers conferred on the Company
or the Subsidiary Guarantors, or to comply with any requirement 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 conform the text of the Indenture or the Securities to any
provision of the “Description of the Notes” Section of the Confidential Offering Circular of the
Company dated January 26, 2007, to the extent that such provision in such Section was intended to
be a verbatim recitation of a provision of the Indenture, the Securities, or the Subsidiary
Guarantees or to make amendments to provisions of the Indenture relating to the form,
authentication, transfer and legending of the Securities, or to evidence and provide for the
acceptance and appointment of a successor Trustee.

14. Defaults and Remedies

          Under the Indenture, Events of Default include (a) default for 30 days in payment of interest
on the Securities; (b) default in payment of principal on the Securities at maturity, upon
redemption pursuant to paragraph 5 of the Securities, upon acceleration or otherwise, or failure by
the Company to redeem or purchase Securities when required; (c) failure by the Company or any
Subsidiary Guarantor to comply with other agreements in the Indenture or the Securities, in certain
cases subject to notice and lapse of time; (d) certain accelerations (including failure to pay
within any grace period after final maturity) of other Indebtedness of the Company, any Subsidiary
Guarantor or any Significant Subsidiary if the amount accelerated (or so unpaid) exceeds
$30,000,000; (e) certain events of bankruptcy or insolvency with respect to the Company, the
Subsidiary Guarantors and the Significant Subsidiaries; and (f) certain judgments or decrees for
the payment of money in excess of $30,000,000. If an Event of Default occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the 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 may refuse to enforce the Indenture or the Securities unless it receives
indemnity or security satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Securityholders notice of any continuing Default (except a Default in
payment of

 

24

principal or interest) if it determines that withholding notice is in the interest of the
Holders.

15. Trustee Dealings with the Company

          Subject to certain limitations imposed by the Act, 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

          A director, officer, employee, incorporator or stockholder, as such, of the Company, any
Subsidiary Guarantor or the Trustee shall not have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder waives and releases
all such liability. The waiver and release 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) 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 entireties), JT TEN (=joint tenants with
rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift
to Minors Act).

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. Holders’ Compliance with Registration Rights Agreement.

          Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of
the Registration Rights Agreement, including the obligations of the

 

25

Holders with respect to a registration and the indemnification of the Company to the extent
provided therein.

21. 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 which has in it the text of this Security in larger type.
Requests may be made to:

Alion Science and Technology

1750 Tysons Boulevard

Suite 1300

McLean, VA 22102

Attention: James Fontana, Esq.

                  General Counsel

 

26

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:	 	 
	 

	 	 

	 	 
	 	 

	 
	 	 	 	 	 	 
	 

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

In connection with any transfer of any of the Securities evidenced by this certificate occurring
prior to the expiration of the period referred to in Rule 144(k) under the Securities Act 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 transferred in accordance with its terms:

CHECK ONE BOX BELOW

     to the Company; or

	 	(1)   o	 	pursuant to an effective registration statement under the Securities
Act of 1933; or
	 
	 	(2)   o	 	inside the United States to a “qualified institutional buyer” (as
defined in Rule 144A under the Securities Act of 1933) that purchases for its own
account or for the account of a qualified institutional buyer to whom notice is given
that such transfer is being made in reliance on Rule 144A, in each case pursuant to
and in compliance with Rule 144A under the Securities Act of 1933; or

 

27

	 	(3)   o	 	outside the United States in an offshore transaction within the
meaning of Regulation S under the Securities Act in compliance with Rule 904 under the
Securities Act of 1933; or
	 
	 	(4)   o	 	pursuant to the exemption from registration provided by Rule 144
under the Securities Act of 1933; or
	 
	 	(5)   o	 	to an institutional “accredited investor” (as defined in Rule
501(a)(1),(2),(3) or (7) under the Securities Act of 1933) that has furnished to the
Trustee a signed letter containing certain representations and agreements.

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

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Signature
	 	 
	 
	 	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Signature must be guaranteed

	 	 
	 	 

Signature
	 	 

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

 

28

TO BE COMPLETED BY PURCHASER IF (2) 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, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Dated:                                         

	 	 	 	 

Notice: To be executed by an executive officer
	 	 

 

29

[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:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal	 	 
	 	 	 	 	 	 	amount of this	 	 
	 	 	 	 	Amount of	 	Global	 	Signature of
	 	 	Amount of decrease	 	increase in	 	Security	 	authorized officer
	 	 	in Principal amount	 	Principal amount of	 	following such	 	of Trustee or
	Date of	 	of this Global	 	this Global	 	decrease or	 	Securities
	Exchange	 	Security	 	Security	 	increase)	 	Custodian
	 
	 	 	 	 	 	 	 	 

 

30

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company pursuant to Section 4.06
or 4.09 of the Indenture, check the box: o

          If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 4.06 or 4.09 of the Indenture, state the amount in principal amount: $                    

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:                                         

	 	 	 	Your Signature:	 	 	 	 
	 

	 	 	 	 	 	 

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

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

(Signature must be guaranteed)
	 	 

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

 

EXHIBIT A

[FORM OF FACE OF EXCHANGE SECURITY

OR PRIVATE EXCHANGE SECURITY]*/**/

 

			
	*/	 	[If the Security is to be issued in global form add the Global Securities Legend from
Exhibit 1 to Appendix A and the attachment from such Exhibit 1 captioned “[TO BE ATTACHED TO GLOBAL
SECURITIES] — SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY”.] [Note: Include asterisk and
this note if a 144A Offering with registration rights]
	 
	**/	 	[If the Security is a Private Exchange Security issued in a Private Exchange to an
Initial Purchaser holding an unsold portion of its initial allotment, add the Restricted Securities
Legend from Exhibit 1 to Appendix A and replace the Assignment Form included in this Exhibit A with
the Assignment Form included in such Exhibit 1.] [Note: Include asterisk and this note if a 144A
Offering with registration rights.]

 

2

			
	 
	No.           
	 	$                    

101/4% Senior Notes due 2015

          Alion Science and Technology Corporation, a Delaware corporation, promises to pay to
_________________, or registered assigns, the principal sum of __________________
Dollars on February 1, 2015.

          Interest Payment Dates: February 1 and August 1, commencing on August 1, 2007.

          Record Dates: January 15 and July 15.

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

Dated:

	 	 	 	 	 
	 	ALION SCIENCE AND TECHNOLOGY CORPORATION,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

WILMINGTON TRUST COMPANY

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

 

3

[FORM OF REVERSE SIDE OF [EXCHANGE] SECURITY

[OR PRIVATE EXCHANGE SECURITY]]

101/4% Senior Note due 2015

1. Interest

          Alion Science and Technology Corporation, a Delaware 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[; provided, however, that if a Registration Default (as defined in the
Registration Rights Agreement) occurs, additional interest will accrue on this Security (i) so long
as the Company is subject to, and complies, subject to Rule 12b-25 of the Exchange Act, with, the
periodic reporting requirements of the Exchange Act, at a rate of 0.25% per annum for the first
90-day period immediately following the occurrence of a Registration Default, and such rate will
increase by an additional 0.25% per annum with respect to each subsequent 90-day period until all
Registration Defaults have been cured, up to a maximum additional interest rate of 1.00% per annum
and (ii) otherwise, at a rate of 0.50% per annum for the first 90-day period immediately following
the occurrence of a Registration Default, and such rate will increase by an additional 0.50% per
annum with respect to each subsequent 90-day period until all Registration Defaults have been
cured, up to a maximum additional interest rate of 2.00% per annum, in each case from and including
the date on which any such Registration Default shall occur to but excluding the date on which all
Registration Defaults have been cured]. The Company will pay interest semiannually in arrears on
February 1 and August 1 of each year, commencing August 1, 2007. Interest on the Securities will
accrue from the most recent date to which interest has been paid or, if no interest has been paid,
from February 8, 2007. Interest will be computed on the basis of a 360-day year of twelve 30-day
months. The Company will pay interest on overdue principal at the rate borne by this Security plus
1.00% per annum, and it will pay interest on overdue installments of interest at the same rate to
the extent lawful.

2. Method of Payment

          The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered holders of Securities at the close of business on the January 15 or July 15 next
preceding the interest payment date even if Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the United States that
at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Securities represented by a Global Security (including principal, premium and
interest) will be made by wire transfer of immediately available funds to the accounts specified by
the Depository. The Company will make all payments in respect of a certificated Security
(including principal, premium and interest) by mailing a check to the registered

 

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address of each Holder thereof; provided, however, that payments on a
certificated Security will be made 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 30 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 Company, a Delaware banking corporation (the “Trustee”), will act
as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned
Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4. Indenture

          The Company issued the Securities under an Indenture dated as of February 8, 2007
(“Indenture”), among the Company, the Subsidiary Guarantors and the Trustee. The terms of the
Securities include those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) (the “Act”). Terms defined
in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to the Indenture and the
Act for a statement of those terms.

          The Securities are general unsecured obligations of the Company. The Company shall be
entitled, subject to its compliance with Section 4.03 of the Indenture, to issue Additional
Securities pursuant to Section 2.13 of the Indenture. The Initial Securities issued on the Issue
Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued
in exchange therefor will be treated as a single class for all purposes under the Indenture. The
Indenture contains certain covenants that limit the ability of the Company and its Restricted
Subsidiaries to Incur additional Indebtedness; pay dividends or distributions on, or redeem or
repurchase Capital Stock; make Investments; issue or sell Capital Stock of Restricted Subsidiaries;
engage in transactions with Affiliates; create certain Liens on assets; transfer or sell assets;
Guarantee Indebtedness; restrict dividends or other payments of Restricted Subsidiaries;
consolidate, merge or transfer all or substantially all of its assets and the assets of its
Restricted Subsidiaries; and engage in sale/ leaseback transactions. These covenants are subject
to important exceptions and qualifications.

5. Optional Redemption

          Except as set forth below, the Company shall not be entitled to redeem the Securities.

          On and after February 1, 2011, the Company shall be entitled at its option to redeem all or a
portion of the Securities upon not less than 30 nor more than 60 days’

 

5

notice, at the redemption prices set forth below (expressed in percentages of principal amount
on the redemption date), plus accrued interest 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), if redeemed during the 12-month period commencing on February 1 of the years set
forth below:

	 	 	 	 	 
	 	 	Redemption
	Period	 	Price
	2011
	 	 	105.125	%
	2012
	 	 	102.563	%
	2013 and thereafter
	 	 	100.000	%

          In addition, at any time prior to February 1, 2010, the Company shall be entitled at its
option on one or more occasions to redeem Securities (which includes Additional Securities, if any)
in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the
Securities (which includes Additional Securities, if any) originally issued at a redemption price
(expressed as a percentage of principal amount) of 110.25%, plus accrued and unpaid interest to
the redemption date, with the Net Cash Proceeds from one or more Qualified Equity Offerings;
provided, however, that (1) at least 65% of such aggregate principal amount of
Securities (which includes Additional Securities, if any) remains outstanding immediately after the
occurrence of each such redemption (other than Securities held, directly or indirectly, by the
Company or its Affiliates); and (2) each such redemption occurs within 90 days after the date of
the related Qualified Equity Offering.

          Prior to February 1, 2011, the Company shall be entitled at its option to redeem all, but not
less than all, of the Securities at a redemption price equal to 100% of the principal amount of the
Securities plus the Applicable Premium as of, and accrued and unpaid interest to, the redemption
date (subject to the right of Holders on the relevant record date to receive interest due on the
relevant interest payment date).

6. Notice of Redemption

          Notice of redemption will be mailed at least 30 days but not more than 60 days before the
redemption date to each Holder of Securities to be redeemed at his registered address. Securities
in denominations larger than $2,000 principal amount may be redeemed in part but only in whole
multiples of $1,000. If money sufficient to pay the redemption price of and accrued interest on
all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the
Paying Agent on or before the redemption date and certain other conditions set forth in the
Indenture are satisfied, on and after such date interest ceases to accrue on such Securities (or
such portions thereof) called for redemption.

7. Put Provisions

          Upon a Change of Control, any Holder of Securities will have the right to cause the Company to
repurchase all or any part of the Securities of such Holder at a

 

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repurchase price equal to 101% of the principal amount of the Securities to be repurchased
plus accrued interest to the date of repurchase (subject to the right of Holders of record on the
relevant record date to receive interest due on the related interest payment date) as provided in,
and subject to the terms of, the Indenture.

8. Guaranty

          The payment by the Company of the principal of, and premium and interest on, the Securities is
fully and unconditionally guaranteed on a joint and several senior basis by each of the Subsidiary
Guarantors to the extent set forth in the Indenture.

9. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of $2,000 principal
amount and whole multiples of $1,000. A Holder may transfer or exchange Securities in accordance
with the Indenture and the restrictions set forth in the Securities. The Registrar 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 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 any Securities
for a period of 15 days before a selection of Securities to be redeemed or 15 days before an
interest payment date.

10. Persons Deemed Owners

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

11. Unclaimed Money

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its request unless applicable 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. Discharge and Defeasance

          Subject to certain conditions, the Company at any time shall be entitled to terminate some or
all of its obligations and the obligations of the Subsidiary Guarantors under the Securities and
the Indenture 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.

 

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13. Amendment, Waiver

          Subject to certain exceptions set forth in the Indenture, (a) the Indenture and the Securities
may be amended with the written consent of the Holders of at least a majority in principal amount
outstanding of the Securities and (b) any default or noncompliance with any provision may be waived
with the written consent of the Holders of a majority in principal amount outstanding of the
Securities. Subject to certain exceptions set forth in the Indenture, without the consent of any
Securityholder, the Company, the Subsidiary Guarantors and the Trustee shall be entitled to amend
the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency, or to
comply with Article 5 of the Indenture, or to provide for uncertificated Securities in addition to
or in place of certificated Securities, or to add guarantees with respect to the Securities,
including Subsidiary Guaranties, or to secure the Securities, or to add additional covenants or
surrender rights and powers conferred on the Company or the Subsidiary Guarantors, or to comply
with any requirement 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 conform the
text of the Indenture or the Securities to any provision of the “Description of the Notes” Section
of the Confidential Offering Circular of the Company dated January 26, 2007, to the extent that
such provision in such Section was intended to be a verbatim recitation of a provision of the
Indenture, the Securities or the Subsidiary Guaranties or to make amendments to provisions of the
Indenture relating to the form, authentication, transfer and legending of the Securities, or to
evidence and provide for the acceptance and appointment of a successor Trustee.

14. Defaults and Remedies

          Under the Indenture, Events of Default include (a) default for 30 days in payment of interest
on the Securities; (b) default in payment of principal on the Securities at maturity, upon
redemption pursuant to paragraph 5 of the Securities, upon acceleration or otherwise, or failure by
the Company to redeem or purchase Securities when required; (c) failure by the Company or any
Subsidiary Guarantor to comply with other agreements in the Indenture or the Securities, in certain
cases subject to notice and lapse of time; (d) certain accelerations (including failure to pay
within any grace period after final maturity) of other Indebtedness of the Company, any Subsidiary
Guarantor or any Significant Subsidiary if the amount accelerated (or so unpaid) exceeds
$30,000,000; (e) certain events of bankruptcy or insolvency with respect to the Company, the
Subsidiary Guarantors and the Significant Subsidiaries; and (f) certain judgments or decrees for
the payment of money in excess of $30,000,000. If an Event of Default occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the 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 may refuse to enforce the Indenture or the

 

8

Securities unless it receives indemnity or security satisfactory to it. Subject to certain
limitations, Holders of a majority in principal amount of the Securities may direct the Trustee in
its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any
continuing Default (except a Default in payment of principal or interest) if it determines that
withholding notice is in the interest of the Holders.

15. Trustee Dealings with the Company

          Subject to certain limitations imposed by the Act, 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

          A director, officer, employee, incorporator or stockholder, as such, of the Company, any
Subsidiary Guarantor or the Trustee shall not have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder waives and releases
all such liability. The waiver and release 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) 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 entireties), JT TEN (=joint tenants with
rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift
to Minors Act).

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.

 

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20. [Holders’ Compliance with Registration Rights Agreement.

          Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of
the Registration Rights Agreement, including the obligations of the Holders with respect to a
registration and the indemnification of the Company to the extent provided therein.]1

21. 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 which has in it the text of this Security in larger type.
Requests may be made to:

Alion Science and Technology

1750 Tysons Boulevard

Suite 1300

McLean, VA 22102

Attention: James Fontana, Esq.

            
      General Counsel

 

			
	1	 	Provision may not be necessary if the Exchange
Offer is completed on a timely basis.

 

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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:	 	 
	 

	 	 

	 	 
	 	 

	 
	 	 	 	 	 	 
	 

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

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company pursuant to Section 4.06
or 4.09 of the Indenture, check the box: o

          If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 4.06 or 4.09 of the Indenture, state the amount in principal amount: $                    

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	Your Signature:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

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

	 	 	 	 
	Signature Guarantee:
	 	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

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

 

 

EXHIBIT 2 to Rule 144A/REGULATION S/IAI APPENDIX

Form of

Transferee Letter of Representation

Alion Science and Technology Corporation

1750 Tysons Boulevard

Suite 1300

McLean, VA 22102

In care of

o

o

o

Ladies and Gentlemen:

          This certificate is delivered to request a transfer of $[ ] principal amount of the 101/4%
Senior Notes due 2015 (the “Securities”) of Alion Science and Technology Corporation (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 risks 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

          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 that 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 (i) to the Company, (ii) in the United States to a person whom the seller
reasonably believes is a qualified institutional buyer in a transaction meeting the requirements of
Rule 144A, (iii) to an institutional “accredited investor” within the meaning of Rule 501(a)(1),
(2), (3) or (7) under the Securities Act that is an institutional accredited investor purchasing
for its own account or for the account of an institutional accredited investor, in each case in a
minimum principal amount of the Securities of $250,000, (iv) outside the United States in a
transaction complying with the provisions of Rule 904 under the Securities Act, (v) pursuant to an
exemption from registration under the Securities Act provided by Rule 144 (if available) or (vi)
pursuant to an effective registration statement under the Securities Act, in each of cases (i)
through (vi) subject 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. The foregoing restrictions on resale will 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 (iii) 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 the offer, sale or other transfer prior
to the Resale Restriction Termination Date of the Securities pursuant to clause (iii), (iv) or (v)
above to require the delivery of an opinion of counsel, certifications or other information
satisfactory to the Company and the Trustee.

	 	 	 	 	 	 	 	 
	 
	 	 	 	TRANSFEREE: 	 	 	,

	 	 	 	 	 	 	 	 
	 

	 	 	 	by:exv10w82

 

Exhibit 10.82

EXECUTION COPY

$250,000,000

ALION SCIENCE AND TECHNOLOGY CORPORATION

10.25% Senior Notes due 2015

PURCHASE AGREEMENT

January 26, 2007

Credit Suisse Securities (USA) LLC (“Credit Suisse”),

     Eleven Madison Avenue,

          New York, N.Y. 10010-3629

Dear Sirs:

     1. Introductory. Alion Science and Technology Corporation, a Delaware corporation (the
“Company”), proposes, subject to the terms and conditions stated herein, to issue and sell to
Credit Suisse Securities (USA) LLC (the initial “Purchaser”) U.S. $250,000,000 principal amount of
its 10.25% Senior Notes due 2015 (“Offered Securities”) to be issued under an indenture dated
February 8, 2007 (the “Indenture”), among the Company, the Guarantors (as defined below) and
Wilmington Trust Company, as Trustee. The United States Securities Act of 1933, as amended, is
herein referred to as the “Securities Act.”

     The Offered Securities will be guaranteed, on a senior and unsecured basis, jointly and
severally by those subsidiaries of the Company listed in the attached Schedule B hereto (the
“Guarantors”).

     The holders of the Offered Securities will be entitled to the benefits of a Registration
Rights Agreement of even date herewith among the Company, the Guarantors and the Purchaser (the
“Registration Rights Agreement”), pursuant to which the Company agrees to file a registration
statement with the Securities Exchange Commission (the “Commission”) registering an exchange offer
for, or, in certain circumstances, the resale of, the Offered Securities under the Securities Act.

     The Company and the Guarantors, jointly and severally, hereby agree with the Purchaser as
follows:

     2. Representations and Warranties of the Company and the Guarantors. The Company and the
Guarantors jointly and severally represent and warrant to, and agree with, the Purchaser that:

     (a) A preliminary offering circular (the “Preliminary Offering Circular”)
relating to the Offered Securities to be offered by the Purchaser and a final
offering circular (the “Final Offering Circular”) disclosing the offering price
and other final terms of the Offered Securities and dated the date of this Agreement (even
if finalized and issued subsequent to the date of this Agreement) have been or will be
prepared by the Company. “General Disclosure Package” means the Preliminary Offering
Circular, together with any Issuer Free Writing Communication (as hereinafter defined)
existing at the Applicable Time (as hereinafter defined) and the

 

 

information which is intended for general distribution to prospective investors, as evidenced by its being specified in Schedule A to this Agreement (including the term sheet listing
the final terms of the Offered Securities and their offering, included in Schedule D to
this Agreement, which is referred to as the “Terms Communication”). “Applicable Time”
means 11:55 a.m. (EDT time) on the date of this Agreement. As of the date of this
Agreement, the Final Offering Circular does not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading. At the
Applicable Time neither (i) the General Disclosure Package, nor (ii) any individual
Supplemental Marketing Material (as hereinafter defined), when considered together with
the General Disclosure Package, included any untrue statement of a material fact or
omitted to state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The preceding
two sentences do not apply to statements in or omissions from the Preliminary or Final
Offering Circular, the General Disclosure Package or any Supplemental Marketing Material
based upon written information furnished to the Company by the Purchaser specifically for
use therein, it being understood and agreed that the only such information is that
described as such in Section 8(b) hereof. Except as disclosed in the General Disclosure
Package, on the date of this Agreement, the Company’s Annual Report on Form 10-K most
recently filed with the Securities and Exchange Commission (the “Commission”) and all
subsequent reports (collectively, the “Exchange Act Reports”) which have been filed by the
Company with the Commission or sent to stockholders pursuant to the Securities Exchange
Act of 1934 (the “Exchange Act”) do not include any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading. Except as disclosed on
Schedule 2(a), such documents, when they were filed with the Commission, conformed in all
material respects to the requirements of the Exchange Act and the rules and regulations of
the Commission thereunder.

“Free Writing Communication” means a written communication (as such term is defined in Rule
405 under the Securities Act) that constitutes an offer to sell or a solicitation of an
offer to buy the Offered Securities and is made by means other than the Preliminary
Offering Circular or the Final Offering Circular. “Issuer Free Writing Communication”
means a Free Writing Communication prepared by or on behalf of the Company, used or
referred to by the Company or containing a description of the final terms of the Offered
Securities or of their offering, in the form retained in the Company’s records.
“Supplemental Marketing Material” means any Issuer Free Writing Communication other than
any Issuer Free Writing Communication specified in Schedule E to this Agreement.

     (b) The Company has been duly incorporated and is an existing corporation in good
standing under the laws of the State of Delaware, with power and authority (corporate and
other) to own its properties and conduct its business as described in the General
Disclosure Package; and the Company is duly qualified to do business as a foreign
corporation in good standing in all other material jurisdictions in which its ownership or
lease of property or the conduct of its business requires such qualification.

     (c) The entities listed on Schedule F to this Agreement are the only direct or
indirect subsidiaries and joint ventures of the Company. Schedule F sets forth the
jurisdiction of organization of each such subsidiary or joint venture. Each subsidiary of
the Company has been duly incorporated and is an existing corporation in good standing
under the laws of the jurisdiction of its incorporation, with power and authority
(corporate and other) to own its properties and conduct its business as described in the
General Disclosure Package; and each subsidiary of the Company is duly qualified to do
business as a foreign corporation in good standing in all other material jurisdictions in
which its ownership or lease of property or the conduct of its business requires such
qualification; all of the issued and outstanding capital stock

2

 

of each subsidiary of the Company has been duly authorized and validly issued and is fully paid and nonassessable; and the capital stock of each subsidiary owned by the Company,
directly or through subsidiaries, is owned free from liens, encumbrances and defects,
except for liens and encumbrances granted in connection with the Guaranty and Collateral
Agreement entered into by the Company in connection with the Company’s Term B Senior
Credit Facility (as hereinafter defined). For purposes of this Agreement, “Term B Senior
Credit Facility” means that certain credit agreement dated as of August 2, 2004, as
amended, among the Company, certain subsidiaries of the company guaranteeing the
Company’s obligations thereunder, the lenders party thereto and Credit Suisse (formerly
known as Credit Suisse First Boston), as administrative agent and as collateral agent for
such lenders. For purposes of this Agreement, “Guaranty and Collateral Agreement” means
the Guarantee and Collateral Agreement dated as of August 2, 2004, as amended, among the
Company, certain of its subsidiaries guaranteeing the Company’s obligations under the Term
B Senior Credit Facility and Credit Suisse (formerly known as Credit Suisse First Boston),
as collateral agent.

     (d) The Indenture has been duly authorized by the Company and each of the Guarantors;
the Offered Securities have been duly authorized by the Company; and when the Offered
Securities are delivered and paid for pursuant to this Agreement on the Closing Date (as
defined below), the Indenture will have been duly executed and delivered, such Offered
Securities will have been duly executed, authenticated, issued and delivered, will be
consistent with the information in the General Disclosure Package and will conform to the
description thereof contained in the Final Offering Circular and the Indenture will
constitute a valid and legally binding obligation of the Company and the Guarantors and
such Offered Securities will constitute a valid and legally binding obligation of the
Company, in each case enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity principles.

     (e) Except as disclosed in the General Disclosure Package, there are no contracts,
agreements or understandings between the Company and any person that would give rise to a
valid claim against the Company or any Purchaser for a brokerage commission, finder’s fee
or other like payment.

     (f) No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required for the consummation of the
transactions contemplated by this Agreement or the Registration Rights Agreement in
connection with the issuance and sale of the Offered Securities by the Company except for
the Exchange Offer Registration Statement, the Shelf Registration Statement, if required,
the order of the Commission declaring effective the Exchange Offer Registration Statement
or, if required, the Shelf Registration Statement (each as defined in the Registration
Rights Agreement) and any necessary state securities filings.

     (g) The execution, delivery and performance of the Indenture, this Agreement and the
Registration Rights Agreement, and the issuance and sale of the Offered Securities and
compliance with the terms and provisions thereof will not result in a breach or violation
of any of the terms and provisions of, or constitute a default under, any statute, any
rule, regulation or order of any governmental agency or body or any court, domestic or
foreign, having jurisdiction over the Company or any subsidiary of the Company or any of
their properties, or any agreement or instrument to which the Company or any such
subsidiary is a party or by which the Company or any such subsidiary is bound or to which
any of the properties of the Company or any such subsidiary is subject, or the charter or
by-laws of the Company or any such subsidiary, and the Company has full power and
authority to authorize, issue and sell the Offered Securities as contemplated by this
Agreement.

3

 

     (h) This Agreement and the Registration Rights Agreement have been duly authorized,
executed and delivered by the Company and the Guarantors.

     (i) Except as disclosed in the General Disclosure Package, the Company and its
subsidiaries have good and marketable title to all real properties and all other
properties and assets owned by them, in each case free from liens, encumbrances and
defects that would materially affect the value thereof or materially interfere with the
use made or to be made thereof by them; and except as disclosed in the General Disclosure
Package, the Company and its subsidiaries hold any leased real or personal property under
valid and enforceable leases with no exceptions that would materially interfere with the
use made or to be made thereof by them.

     (j) The Company and its subsidiaries possess adequate certificates, authorities or
permits issued by appropriate governmental agencies or bodies necessary to conduct the
business now operated by them and have not received any notice of proceedings relating to
the revocation or modification of any such certificate, authority or permit that, if
determined adversely to the Company or any of its subsidiaries, would individually or in
the aggregate have a material adverse effect on the condition (financial or other),
business, properties or results of operations of the Company and its subsidiaries taken as
a whole (“Material Adverse Effect”).

     (k) No labor dispute with the employees of the Company or any subsidiary exists or,
to the knowledge of the Company, is imminent that might have a Material Adverse Effect.

     (l) The Company and its subsidiaries own, possess or can acquire on reasonable terms,
adequate trademarks, trade names and other rights to inventions, know-how, patents,
copyrights, confidential information and other intellectual property (collectively,
“intellectual property rights”) necessary to conduct the business now operated by them, or
presently employed by them, and have not received any notice of infringement of or
conflict with asserted rights of others with respect to any intellectual property rights
that, if determined adversely to the Company or any of its subsidiaries, would
individually or in the aggregate have a Material Adverse Effect.

     (m) Except as disclosed in the General Disclosure Package, neither the Company nor
any of its subsidiaries is in violation of any statute, any rule, regulation, decision or
order of any governmental agency or body or any court, domestic or foreign, relating to
the use, disposal or release of hazardous or toxic substances or relating to the
protection or restoration of the environment or human exposure to hazardous or toxic
substances (collectively, “environmental laws”), owns or operates any real property
contaminated with any substance that is subject to any environmental laws, is liable for
any off-site disposal or contamination pursuant to any environmental laws, or is subject
to any claim relating to any environmental laws, which violation, contamination, liability
or claim would individually or in the aggregate have a Material Adverse Effect; and the
Company is not aware of any pending investigation which might lead to such a claim.

     (n) Except as disclosed in the General Disclosure Package, there are no pending
actions, suits or proceedings against or affecting the Company, any of its subsidiaries or
any of their respective properties that, if determined adversely to the Company or any of
its subsidiaries, would individually or in the aggregate have a Material Adverse Effect,
or would materially and adversely affect the ability of the Company to perform its
obligations under the Indenture, this Agreement, the Registration Rights Agreement, or
which are otherwise material in the context of the sale of the Offered Securities; and no
such actions, suits or proceedings are threatened or, to the Company’s knowledge,
contemplated.

4

 

     (o) The financial statements included in the General Disclosure Package present
fairly in all material respects the financial position of the Company and its consolidated
subsidiaries as of the dates shown and their results of operations and cash flows for the
periods shown, and, except as otherwise disclosed in the General Disclosure Package, such
financial statements have been prepared in conformity with the generally accepted
accounting principles in the United States applied on a consistent basis; and the
assumptions used in preparing the pro forma financial statements included in the General
Disclosure Package provide a reasonable basis for presenting the significant
effects directly attributable to the transactions or events described therein, the related
pro forma adjustments give appropriate effect to those assumptions, and the pro forma
columns therein reflect the proper application of those adjustments to the corresponding
historical financial statement amounts.

     (p) Except as disclosed in the General Disclosure Package, since the date of the
latest audited financial statements included in the General Disclosure Package
there has been no material adverse change, nor any development or event involving a
prospective material adverse change, in the condition (financial or other), business,
properties or results of operations of the Company and its subsidiaries taken as a whole,
and, except as disclosed in or contemplated by the General Disclosure Package, there has
been no dividend or distribution of any kind declared, paid or made by the Company on any
class of its capital stock.

     (q) The Company is subject to the reporting requirements of either Section 13 or
Section 15(d) of the Securities Exchange Act of 1934 and files reports with the Commission
on the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system.

     (r) Neither the Company nor any of the Guarantors is an open-end investment company,
unit investment trust or face-amount certificate company that is or is required to be
registered under Section 8 of the United States Investment Company Act of 1940 (the
“Investment Company Act”) ; and the Company is not and, after giving effect to the
offering and sale of the Offered Securities and the application of the proceeds thereof as
described in the General Disclosure Package, will not be an “investment company” as
defined in the Investment Company Act.

     (s) No securities of the same class (within the meaning of Rule 144A(d)(3) under the
Securities Act) as the Offered Securities are listed on any national securities exchange
registered under Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer
quotation system.

     (t) The offer and sale of the Offered Securities in the manner contemplated by this
Agreement will be exempt from the registration requirements of the Securities Act by
reason of Section 4(2) thereof and Regulation S thereunder, and it is not necessary to
qualify an indenture in respect of the Offered Securities under the United States Trust
Indenture Act of 1939, as amended (the “Trust Indenture Act”).

     (u) Neither the Company, nor any of its affiliates, nor any person acting on its or
their behalf (i) has, within the six-month period prior to the date hereof, offered or
sold in the United States or to any U.S. person (as such terms are defined in Regulation S
under the Securities Act) the Offered Securities or any security of the same class or
series as the Offered Securities or (ii) has offered or will offer or sell the Offered
Securities (A) in the United States by means of any form of general solicitation or
general advertising within the meaning of Rule 502(c) under the Securities Act or (B) with
respect to any such securities sold in reliance on Rule 903 of Regulation S (“Regulation
S”) under the Securities Act, by means of any directed selling efforts within the meaning
of Rule 902(c) of Regulation S. The Company, its affiliates and any person acting on its
or their behalf have complied and will comply with the offering restrictions

5

 

requirement of Regulation S. The Company has not entered and will not enter into any contractual arrangement with respect to the distribution of the Offered Securities
except for this Agreement, the Indenture and the Registration Rights Agreement.

     (v) The sale of the Offered Securities pursuant to Regulation S is not part of a plan
or scheme to evade the registration provisions of the Securities Act.

     (w) The Alion Science and Technology Corporation Employee Ownership, Savings and
Investment Trust (the “ESOT”) has been duly organized and is a validly existing trust.
Except as disclosed in the General Disclosure Package, each of the ESOP Plan Documents (as
defined herein) is in full force and effect and no term or condition thereof has been
amended, modified or waived from the terms and conditions contained in the ESOP Plan
Documents delivered to the Purchaser, except to the extent such amendment, modification or
waiver could not reasonably be anticipated to have a material adverse effect upon the
Purchaser or otherwise have a Material Adverse Effect. The ESOT has performed and
complied with all the material terms, provisions, agreements and conditions set forth
therein and required to be performed or complied with by the ESOT, and no unmatured
default, default or breach of any covenant by any such party exists thereunder.

     (x) The Company has provided the Purchaser with a complete and true copy of each of
the documents pursuant to which the Alion Science and Technology Corporation Employee
Ownership, Savings and Investment Plan (the “ESOP”) and the ESOT are maintained by the
Company, or which concern the Company’s obligations with respect to the ESOP and ESOT,
which are listed in the attached Schedule C hereto, and are referred to herein as the
“ESOP Plan Documents.” The Company has not subsequently amended or in any other way
modified or replaced such ESOP Plan Documents in any material manner without the prior
written consent of the Purchaser, except for any amendment, modification or replacement
required by the Internal Revenue Service or by applicable law (and the Company shall use
its best efforts to deliver a copy of any such amendment, modification or replacement to
the Purchaser prior to the execution thereof).

     (y) None of the assets of the Company constitute, for any purpose of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the
Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), assets of the
ESOP or any other “plan” as defined in Section 3(3) of ERISA or Section 4975 of the
Internal Revenue Code.

     (z) No non-exempt prohibited transaction described in Section 406 of ERISA or Section
4975 of the Internal Revenue Code has occurred with respect to the ESOP, and none of the
Offered Securities, the Indenture or this Agreement hereunder constitutes or shall
constitute or give rise to any such non-exempt prohibited transaction.

     (aa) The ESOP is qualified under Section 401(a) of the Internal Revenue Code, and the
ESOP includes two components, one of which is an employee stock ownership plan as defined
in Section 4975(e)(7) of the Internal Revenue Code, and the other is a profit sharing plan
that includes a cash or deferred compensation arrangement under Section 401(k) of the
Internal Revenue Code.

     (bb) To the Company’s knowledge, neither of the Offered Securities nor the Indenture
is (for any purpose of Section 406 of ERISA or Section 4975 of the Internal Revenue Code)
a direct or indirect loan or other transaction between the Purchaser, any such persons to
whom the Purchaser may resell the Offered Securities (“Repurchasers”) and the ESOT which,
if it is assumed that the Purchaser or Repurchasers are “parties in interest” and
“disqualified persons”

6

 

(as defined in Section 3(14) of ERISA and Section 4975 of the Internal Revenue Code), is a non-exempt prohibited transaction described in Section 406 of ERISA or Section 4975 of
the Internal Revenue Code.

     (cc) Neither the Company nor any of its subsidiaries is or shall be subject to the
tax imposed by Section 4978 of the Internal Revenue Code with respect to any “disposition”
by the ESOT of any shares of equity interests of the Company.

     (dd) There is no investigation or review by any Governmental Authority, or action,
suit, proceeding or arbitration, pending or concluded, concerning any matter with respect
to the ESOP or the ESOT relevant as to whether any representation set forth herein is
inaccurate or breached (other than in respect of (i) periodic requests to the IRS to issue
a favorable determination letter to the effect that the ESOP is and continues to be a
qualified plan and an employee stock ownership plan, (ii) Annual Reports (IRS Form 5500
Series) for the ESOP, (iii) routine claims for ESOP benefits and (iv) routine audits of
contributions to the ESOP), and neither the ESOP fiduciary nor, to the best of the
Company’s knowledge, the ESOT trustee has made any assertion with respect to the ESOP or
the ESOT contrary to or inconsistent with the accuracy of any such representation which
assertion could reasonably be expected to have a Material Adverse Effect.

     (ee) Neither the ESOP fiduciary nor the ESOT trustee has made any assertion with
respect to the ESOP or the ESOT contrary to or inconsistent with the accuracy of any
representation or warranty set forth herein that could reasonably be expected to result in
a Material Adverse Event.

     3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to the Purchaser, and the Purchaser agrees to purchase from the Company, at a
purchase price of 97.50% of the principal amount thereof plus accrued interest from February 8,
2007, to the Closing Date (as hereinafter defined), $250,000,000 principal amount of the Offered
Securities.

     The Company will deliver against payment of the purchase price the Offered Securities in the
form of one or more permanent global securities in definitive form (the “Global Securities”)
deposited with the Trustee as custodian for The Depository Trust Company (“DTC”) and registered in
the name of Cede & Co., as nominee for DTC. Interests in any permanent Global Securities will be
held only in book-entry form through DTC, except in the limited circumstances described in the
Final Offering Circular. Payment for the Offered Securities shall be made by the Purchaser in
Federal (same day) funds by official check or checks or wire transfer to an account at a bank
acceptable to the Purchaser drawn to the order of the Company at the office of Baker & McKenzie LLP
at 10:00 A.M. (New York time), on February 8, 2007, or at such other time not later than seven full
business days thereafter that the Purchaser and the Company determine, such time being herein
referred to as the “Closing Date”, against delivery to the Trustee as custodian for DTC of the
Global Securities representing all of the Securities. The Global Securities will be made available
for checking at the above office at least 24 hours prior to the Closing Date.

     4. Representations by Purchaser; Resale by Purchaser. (a) The Purchaser represents and
warrants to the Company that it is an “accredited investor” within the meaning of Regulation D
under the Securities Act.

     (b) The Purchaser acknowledges that the Offered Securities have not been registered
under the Securities Act and may not be offered or sold within the United States or to, or
for the account or benefit of, U.S. persons except in accordance with Regulation S or
pursuant to an exemption from the registration requirements of the Securities Act. The Purchaser represents

7

 

and agrees that it has offered and sold the Offered Securities, and
will offer and sell the Offered Securities (i) as part of its distribution at any time and
(ii) otherwise until 40 days after the later of the commencement of the offering and the
Closing Date, only in accordance with Rule 903 or Rule 144A under the Securities Act (“Rule 144A”). Accordingly, neither the Purchaser,
nor its affiliates, nor any persons acting on its or their behalf, have engaged or will
engage in any directed selling efforts with respect to the Offered Securities, and the
Purchaser, its affiliates and all persons acting on its or their behalf have complied and
will comply with the offering restrictions requirement of Regulation S. The Purchaser
agrees that, at or prior to confirmation of sale of the Offered Securities, other than a
sale pursuant to Rule 144A, the Purchaser will have sent to each distributor, dealer or
person receiving a selling concession, fee or other remuneration that purchases the
Offered Securities from it during the restricted period a confirmation or notice to
substantially the following effect:

“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”) and may not be
offered or sold within the United States or to, or for the account or
benefit of, U.S. persons (i) as part of their distribution at any time or
(ii) otherwise until 40 days after the later of the date of the
commencement of the offering and the closing date, except in either case
in accordance with Regulation S (or Rule 144A if available) under the
Securities Act. Terms used above have the meanings given to them by
Regulation S.”

Terms used in this subsection (b) have the meanings given to them by Regulation S.

     (c) The Purchaser agrees that it and each of its affiliates have not entered and will
not enter into any contractual arrangement with respect to the distribution of the Offered
Securities except with the prior written consent of the Company.

     (d) The Purchaser agrees that it and each of its affiliates will not offer or sell
the Offered Securities in the United States by means of any form of general solicitation
or general advertising within the meaning of Rule 502(c) under the Securities Act,
including, but not limited to (i) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast over
television or radio, or (ii) any seminar or meeting whose attendees have been invited by
any general solicitation or general advertising. The Purchaser agrees, with respect to
resales made in reliance on Rule 144A of any of the Offered Securities, to deliver either
with the confirmation of such resale or otherwise prior to settlement of such resale a
notice to the effect that the resale of such Offered Securities has been made in reliance
upon the exemption from the registration requirements of the Securities Act provided by
Rule 144A.

     (e) The Purchaser represents and agrees that (i) it has not offered or sold and prior
to the expiry of a period of six months from the closing date, will not offer or sell any
Offered Securities to persons in the United Kingdom except to persons whose ordinary
activities involve them in acquiring, holding, managing or disposing of investments (as
principal or agent) for the purposes of their businesses or otherwise in circumstances
which have not resulted and will not result in an offer to the public in the United
Kingdom within the meaning of the Public Offers of Securities Regulations 1995; (ii) it
has only communicated or caused to be communicated and will only communicate or cause to
be communicated any invitation or inducement to engage in investment activity (within the
meaning of section 21 of the Financial Services and Markets Act 2000 (the “FSMA”))
received by it in connection with the issue or sale of any Offered Securities in
circumstances in which section 21(1) of the FSMA does not apply to the Company or the
Guarantors; and (iii) it has complied and will comply with all applicable provisions of
the FSMA

8

 

with respect to anything done by it in relation to the Offered Securities in,
from or otherwise involving the United Kingdom

     5. Certain Agreements of the Company. The Company agrees with the Purchaser that:

     (a) The Company will advise the Purchaser promptly of any proposal to amend or
supplement the Preliminary or Final Offering Circular and will not effect such amendment
or supplementation without the Purchaser’s consent, such consent not to be unreasonably
withheld or delayed. If, at any time prior to the completion of the resale of the Offered
Securities by the Purchaser, there occurs an event or development as a result of which any
document included in the Preliminary or Final Offering Circular, the General Disclosure
Package or any Supplemental Marketing Material included or would include an untrue
statement of a material fact or omitted or would omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances prevailing at
such time, not misleading, or if it is necessary at any such time to amend or supplement
the Preliminary or Final Offering Circular, the General Disclosure Package or any
Supplemental Marketing Material to comply with any applicable law, the Company promptly
will notify the Purchaser of such event and promptly will prepare, at its own expense, an
amendment or supplement which will correct such statement or omission or effect such
compliance. Neither the Purchaser’s consent to, nor its delivery to offerees or investors
of, any such amendment or supplement shall constitute a waiver of any of the conditions
set forth in Section 6. The first sentence of this subsection does not apply to
statements in or omissions from any document in the Preliminary or Final Offering
Circular, the General Disclosure Package or any Supplemental Marketing Material made in
reliance upon and in conformity with written information furnished to the Company by the
Purchaser specifically for use therein, it being understood and agreed that the only such
information is that described as such in Section 8(b) hereof.

     (b) The Company will furnish to the Purchaser copies of the Preliminary Offering
Circular, each other document comprising a part of the General Disclosure Package, the
Final Offering Circular, all amendments and supplements to such documents and each item of
Supplemental Marketing Material, in each case as soon as available and in such quantities
as the Purchaser reasonably requests, and the Company will furnish to the Purchaser on the
date hereof three copies of each of the foregoing documents signed by a duly authorized
officer of the Company, one of which in the case of the Preliminary Offering Circular and
Final Offering Circular will include the independent accountants’ reports manually signed
(or signed by facsimile to be followed up with a manual signature if requested after the
Closing by Purchaser) by such independent accountants. At any time when the Company is not
subject to Section 13 or 15(d) of the Exchange Act, the Company will promptly furnish or
cause to be furnished to the Purchaser and, upon request of holders and prospective
purchasers of the Offered Securities, to such holders and purchasers, copies of the
information required to be delivered to holders and prospective purchasers of the Offered
Securities pursuant to Rule 144A(d)(4) under the Securities Act (or any successor
provision thereto) in order to permit compliance with Rule 144A in connection with resales
by such holders of the Offered Securities. The Company will pay the expenses of printing
and distributing to the Purchaser all such documents.

     (c) The Company will arrange for the qualification of the Offered Securities for sale
and the determination of their eligibility for investment under the laws of such
jurisdictions in the United States and Canada as the Purchaser designates and will
continue such qualifications in effect so long as required for the resale of the Offered
Securities by the Purchaser, provided that the Company will not be required to qualify as
a foreign corporation or to file a general consent to service of process in any such
state.

9

 

     (d) During the period of two years after the Closing Date, the Company will, upon
request, furnish to the Purchaser and any holder of Offered Securities a copy of the
restrictions on transfer applicable to the Offered Securities.

     (e) During the period of two years after the Closing Date, the Company will not, and
will not permit any of its affiliates (as defined in Rule 144 under the Securities Act)
to, resell any of the Offered Securities that have been reacquired by any of them.

     (f) During the period of two years after the Closing Date, the Company will not be or
become, an open-end investment company, unit investment trust or face-amount certificate
company that is or is required to be registered under Section 8 of the Investment Company
Act.

     (g) The Company will pay all expenses incidental to the performance of its
obligations under this Agreement, the Indenture and the Registration Rights Agreement,
including (i) the fees and expenses of the Trustee and its professional advisers; (ii) all
expenses in connection with the execution, issue, authentication, packaging and initial
delivery of the Offered Securities and, as applicable, the Exchange Securities (as defined
in the Registration Rights Agreement), the preparation and printing of this Agreement, the
Registration Rights Agreement, the Offered Securities, the Indenture, the Preliminary
Offering Circular, any other documents comprising any part of the General Disclosure
Package, the Final Offering Circular, all amendments and supplements thereto, each item of
Supplemental Marketing Material and any other document relating to the issuance, offer,
sale and delivery of the Offered Securities and as applicable, the Exchange Securities;
(iii) the cost of qualifying the Offered Securities for trading in The PORTALSM
Market (“PORTAL”) and any expenses incidental thereto; (iv) the cost of any advertising
approved by the Company in connection with the issue of the Offered Securities (v) any
expenses (including reasonable fees and disbursements of counsel) incurred in connection
with qualification of the Offered Securities or the Exchange Securities for sale under the
laws of such jurisdictions in the United States and Canada as the Purchaser designates and
the printing of memoranda relating thereto (vi) for any fees charged by investment rating
agencies for the rating of the Securities or the Exchange Securities, and (vii) for
expenses incurred in distributing the Preliminary Offering Circular, any other documents
comprising any part of the General Disclosure Package, the Final Offering Circular
(including any amendments and supplements thereto) and any Supplemental Marketing Material
to the Purchaser. The Company will also pay or reimburse the Purchaser (to the extent
incurred by them) for all travel expenses of the Purchaser and the Company’s officers and
employees and any other expenses of the Purchaser and the Company in connection with
attending or hosting meetings with prospective purchasers of the Offered Securities from
the Purchaser.

     (h) In connection with the offering, until the Purchaser shall have notified the
Company of the completion of the resale of the Offered Securities, neither the Company nor
any of its affiliates has or will, either alone or with one or more other persons, bid or
purchase for any account in which it or any of its affiliates has a beneficial interest
any Offered Securities or attempt to induce any person to purchase any Offered Securities;
and neither it nor any of its affiliates will make bids or purchases for the purpose of
creating actual, or apparent, active trading in, or of raising the price of, the Offered
Securities.

     (i) For a period of 180 days after the date of the initial offering of the Offered
Securities by the Purchaser, the Company will not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, or file with the Commission a registration
statement under the Securities Act (other than as contemplated by the Registration Rights
Agreement) relating to, any United States dollar-denominated debt securities issued or
guaranteed by the Company and having a maturity of more than one year from the date of
issue. The Company will not at any time offer, sell, contract to sell, pledge or otherwise
dispose of, directly or indirectly, any

10

 

securities under circumstances where such offer,
sale, pledge, contract or disposition would cause the exemption afforded by Section 4(2)
of the Securities Act or the safe harbor of Regulation S thereunder to cease to be
applicable to the offer and sale of the Offered Securities.

     6. Free Writing Communications. (a) The Company represents and agrees that, unless it
obtains the prior consent of the Purchaser, and the Purchaser represents and agrees that, unless it
obtains the prior consent of the Company, it has not made and will not make any offer relating to
the Offered Securities that would constitute an Issuer Free Writing Communication.

     (b) The Company consents to the use by the Purchaser of a Free Writing Communication
that (i) contains only (A) information describing the preliminary terms of the Offered
Securities or their offering or (B) information that describes the final terms of the
Offered Securities or their offering and that is included in the Terms Communication or is
included in or is subsequently included in the Final Offering Circular or (ii) does not
contain any material information about the Company or its securities that was provided by
or on behalf of the Company, it being understood and agreed that any such Free Writing
Communication referred to in clause (i) or (ii) shall not be an Issuer Free Writing
Communication for purposes of this Agreement.

     7. Conditions of the Obligation of the Purchaser. The obligation of the Purchaser to purchase
and pay for the Offered Securities will be subject to the accuracy of the representations and
warranties on the part of the Company and the Guarantors herein, to the accuracy of the statements
of officers of the Company and the Guarantors made pursuant to the provisions hereof, to the
performance by the Company and the Guarantors of their obligations hereunder and to the following
additional conditions precedent:

     (a) The Purchaser shall have received letters, dated the date of this Agreement, of
Deloitte & Touche LLP and KPMG LLP, in form and substance reasonably satisfactory to the
Purchaser concerning the financial information with respect to the Company set forth in
the General Disclosure Package and the Final Offering Circular.

     (b) Subsequent to the execution and delivery of this Agreement, there shall not have
occurred (i) any change, or any development or event involving a prospective change, in
the condition (financial or other), business, properties or results of operations of the
Company and its subsidiaries taken as one enterprise which, in the judgment of the
Purchaser, is material and adverse and makes it impractical or inadvisable to proceed with
completion of the offering or the sale of and payment for the Offered Securities; (ii) any
downgrading in the rating of any debt securities of the Company by any “nationally
recognized statistical rating organization” (as defined for purposes of Rule 436(g) under
the Securities Act), or any public announcement that any such organization has under
surveillance or review its rating of any debt securities of the Company (other than an
announcement with positive implications of a possible upgrading, and no implication of a
possible downgrading, of such rating) or any announcement that the Company has been placed
on negative outlook; (iii) any change in U.S. or international financial, political or
economic conditions or currency exchange rates or exchange controls as would, in the
reasonable judgment of the Purchaser, be likely to prejudice materially the success of the
proposed issue, sale or distribution of the Offered Securities, whether in the primary
market or in respect of dealings in the secondary market, (iv) any material suspension or
material limitation of trading in securities generally on the New York Stock Exchange, or
any setting of minimum prices for trading on such exchange; (v) any banking moratorium
declared by U.S. Federal or New York authorities; (vi) any major disruption of settlements
of securities or clearance services in the United States or (vii) any attack on, outbreak
or escalation of hostilities or act of terrorism involving the United States, any
declaration of war by Congress or any other national or international calamity or
emergency if, in the judgment of the Purchaser, the effect of any such

11

 

attack, outbreak, escalation, act, declaration, calamity or emergency makes it impractical or inadvisable to
proceed with completion of the offering or sale of and payment for the Offered
`Securities.

     (c) The Purchaser shall have received opinions, dated the Closing Date, of Baker &
McKenzie, counsel for the Company, and James Fontana, Esq., General Counsel of the
Company, in each case in form and substance reasonably satisfactory to the Purchaser.

     (d) The Purchaser shall have received from Cravath, Swaine & Moore LLP, counsel for
the Purchaser, such opinion or opinions, dated the Closing Date and with reference to same
in the Final Offering Circular, with respect to the incorporation of the Company, the
validity of the Offered Securities, the Final Offering Circular and the General Disclosure
Package, the exemption from registration for the offer and sale of the Offered Securities
by the Company to the Purchaser and the resales by the Purchaser as contemplated hereby
and other related matters as the Purchaser may require, and the Company shall have
furnished to such counsel such documents as they request for the purpose of enabling them
to pass upon such matters.

     (e) The Purchaser shall have received a certificate, dated the Closing Date, of the
President or any Vice President and a principal financial or accounting officer of the
Company in which such officers shall state that, to the best of their knowledge after
reasonable investigation, the representations and warranties of the Company and the
Guarantors in this Agreement are true and correct, that the Company has complied with all
agreements and satisfied all conditions on its part to be performed or satisfied hereunder
at or prior to the Closing Date, and that, subsequent to the respective dates of the most
recent financial statements in the General Disclosure Package, there has been
no material adverse change, nor any development or event involving a prospective material
adverse change, in the condition (financial or other), business, properties or results of
operations of the Company and its subsidiaries taken as a whole except as set forth in the
General Disclosure Package or as described in such certificate.

     (f) Each of the Company and the Guarantors shall have delivered to the Purchaser,
among other documents and certificates as the Purchaser shall reasonably request,
Secretary’s Certificates, dated the Closing Date, with respect to the Company and each of
the Guarantors: (i) certificates of incorporation (ii) by-laws, (iii) resolutions of the
Board of Directors of each entity, (iv) certificates of good standing from the
jurisdiction of incorporation of each such entity and (v) certificates of good standing
and/or qualifications to do business as a foreign corporation in such jurisdictions as the
Purchaser shall reasonably request.

     (g) The Company and each of the Guarantors shall have executed the Registration
Rights Agreement and the Indenture, and shall have provided the Purchasers with a copy of
each.

     (h) The Purchaser shall have received letters, dated the Closing Date, from each of
Deloitte & Touche LLP and KPMG LLP (to the extent applicable), each of which letters meets
the requirements of subsection (a) of this Section, to the extent applicable, except that
the specified date referred to in such subsection will be a date not more than three days
prior to the Closing Date for the purposes of this subsection.

     (i) The Term B Senior Credit Facility shall have been amended to permit the issuance
of $250,000,000 aggregate principal amount of the Offered Securities.

     The Company will furnish the Purchaser with such conformed copies of such opinions,
certificates, letters and documents as the Purchaser reasonably requests. The Purchaser may in its
sole

12

 

discretion waive compliance with any conditions to the obligations of the Purchaser hereunder,
whether in respect of the Closing Date or otherwise.

     8. Indemnification and Contribution. (a) The Company and the Guarantors will, jointly and
severally, indemnify and hold harmless the Purchaser, its officers, partners, members, directors
and its affiliates and each person, if any, who controls such Purchaser within the meaning of
Section 15 of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which
the Purchaser may become subject, under the Securities Act or the Exchange Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of any material fact contained
in the Preliminary Offering Circular or the Final Offering Circular, in each case as amended or
supplemented, or any Issuer Free Writing Communication or the Exchange Act Reports, or arise out of
or are based upon the omission or alleged omission to state therein a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading and will reimburse the Purchaser for any legal or other expenses reasonably incurred
by the Purchaser in connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the Company will not be
liable in any such case to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission
from any of such documents in reliance upon and in conformity with written information furnished to
the Company by the Purchaser specifically for use therein, it being understood and agreed that the
only such information consists of the information described as such in subsection (b) below.

     (b) The Purchaser will indemnify and hold harmless the Company and the Guarantors,
their respective directors and officers and each person, if any, who controls the Company
and the Guarantors within the meaning of Section 15 of the Securities Act, against any
losses, claims, damages or liabilities to which the Company may become subject, under the
Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Preliminary
Offering Circular or the Final Offering Circular, in each case as amended or supplemented,
or any Issuer Free Writing Communication or arise out of or are based upon the omission or
the alleged omission to state therein a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in reliance upon and
in conformity with written information furnished to the Company by the Purchaser
specifically for use therein, and will reimburse any legal or other expenses reasonably
incurred by the Company in connection with investigating or defending any such loss,
claim, damage, liability or action as such expenses are incurred, it being understood and
agreed that the only such information furnished by the Purchaser consists of the following
information in the Preliminary and Final Offering Circular: under the caption “Plan of
Distribution”, the first sentence of the third paragraph and the third sentence of the
ninth paragraph; provided, however, that the Purchaser shall not be liable for any losses,
claims, damages or liabilities arising out of or based upon the Company’s failure to
perform its obligations under Section 5(a) of this Agreement.

     (c) Promptly after receipt by an indemnified party under this Section of notice of
the commencement of any action, such indemnified party will, if a claim in respect thereof
is to be made against the indemnifying party under subsection (a) or (b) above, notify the
indemnifying party of the commencement thereof; but the failure to notify the indemnifying
party shall not relieve it from any liability that it may have under subsection (a) or (b)
above except to the extent that it has been materially prejudiced (through the forfeiture
of substantive rights or defenses) by such failure; and provided further that the failure
to notify the indemnifying party shall not relieve it from any liability that it may have
to an indemnified party otherwise than under

13

 

subsection (a) or (b) above. In case any
such action is brought against any indemnified party and it notifies the indemnifying
party of the commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other indemnifying party
similarly notified, to assume the defense thereof, with counsel satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified party, be
counsel to the indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party
will not be liable to such indemnified party under this Section for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or threatened
action in respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party unless such
settlement includes (i) an unconditional release of such indemnified party from all
liability on any claims that are the subject matter of such action and (ii) does not
include a statement as to or an admission of fault, culpability or failure to act by or on
behalf of any indemnified party.

     (d) If the indemnification provided for in this Section is unavailable or
insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then
each indemnifying party shall contribute to the amount paid or payable by such indemnified
party as a result of the losses, claims, damages or liabilities referred to in subsection
(a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits
received by the Company on the one hand and the Purchaser on the other from the offering
of the Offered Securities or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of the
Company on the one hand and the Purchaser on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities as well as any
other relevant equitable considerations. The relative benefits received by the Company on
the one hand and the Purchaser on the other shall be deemed to be in the same proportion
as the total net proceeds from the offering (before deducting expenses) received by the
Company bear to the total discounts and commissions received by the Purchaser from the
Company under this Agreement. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to information supplied
by the Company or the Purchaser and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The
amount paid by an indemnified party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this subsection (d) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the subject of
this subsection (d). Notwithstanding the provisions of this subsection (d), the Purchaser
shall not be required to contribute any amount in excess of the amount by which the total
price at which the Offered Securities purchased by it were resold exceeds the amount of
any damages which the Purchaser has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.

     (e) The obligations of the Company and the Guarantors under this Section shall be in
addition to any liability which the Company and the Guarantors may otherwise have and
shall extend, upon the same terms and conditions, to each person, if any, who controls the
Purchaser within the meaning of the Securities Act or the Exchange Act; and the
obligations of the Purchaser under this Section shall be in addition to any liability
which the Purchaser may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act.

14

 

     9. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company or its officers, the
Guarantors or their officers and of the Purchaser set forth in or made pursuant to this Agreement
will remain in full force and effect, regardless of any investigation, or statement as to the
results thereof, made by or on behalf of the Purchaser, the Company or any of their respective
representatives, officers or directors or any controlling person, and will survive delivery of and
payment for the Offered Securities. If for any reason the purchase of the Offered Securities by the
Purchaser is not consummated, the Company and the Guarantors shall remain jointly and severally responsible for the expenses to be paid or reimbursed by it
pursuant to Section 5 and the respective obligations of the Company, the Guarantors and the
Purchaser pursuant to Section 8 shall remain in effect. If the purchase of the Offered Securities
by the Purchaser is not consummated for any reason other than solely because of the occurrence of
any event specified in clause (iii), (iv), (vi), (vii) or (viii) of Section 7(b), the Company will
reimburse the Purchaser for all out-of-pocket expenses (including reasonable fees and disbursements
of counsel) reasonably incurred by it in connection with the offering of the Offered Securities.

     10. Notices. All communications hereunder will be in writing and, if sent to the Purchaser
will be mailed, delivered or telegraphed and confirmed to the Purchaser at Eleven Madison Avenue,
New York, N.Y. 10010-3629, Attention: LCD-IBD, or, if sent to the Company or the Guarantors, will
be mailed, delivered or telegraphed and confirmed to them at 1750 Tysons Boulevard, McLean,
Virginia 22102, Attention: General Counsel.

     11. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the controlling persons referred to in Section 8, and no
other person will have any right or obligation hereunder, except that holders of Offered Securities
shall be entitled to enforce the agreements for their benefit contained in the second and third
sentences of Section 5(b) hereof against the Company as if such holders were parties thereto.

     12. Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all such counterparts shall together constitute one and the
same Agreement.

     13. Absence of Fiduciary Relationship. The Company acknowledges and agrees that:

     (a) the Purchaser has been retained solely to act as initial purchaser in connection
with the initial purchase, offering and resale of the Offered Securities and that no
fiduciary, advisory or agency relationship between the Company and the Purchaser has been
created in respect of any of the transactions contemplated by this Agreement or the
Preliminary or Final Offering Circular, irrespective of whether the Purchaser has advised
or is advising the Company on other matters;

     (b) the purchase price of the Offered Securities set forth in this Agreement was
established by the Company following discussions and arms-length negotiations with the
Purchaser and the Company is capable of evaluating and understanding and understands and
accepts the terms, risks and conditions of the transactions contemplated by this
Agreement;

     (c) the Company has been advised that the Purchaser and its affiliates are engaged in
a broad range of transactions which may involve interests that differ from those of the
Company and that the Purchaser has no obligation to disclose such interests and
transactions to Company by virtue of any fiduciary, advisory or agency relationship; and

     (d) the Company waives, to the fullest extent permitted by law, any claims it may
have against the Purchaser for breach of fiduciary duty or alleged breach of fiduciary
duty and agrees that the Purchaser shall have no liability (whether direct or indirect) to
the Company in respect of

15

 

such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including stockholders,
employees or creditors of the Company.

     14. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York without regard to principles of conflicts of laws.

     The Company and each of the Guarantors hereby submit to the non-exclusive jurisdiction of the
Federal and state courts in the Borough of Manhattan in The City of New York in any suit or
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

16

 

     If the foregoing is in accordance with the Purchaser’s understanding of our agreement,
kindly sign and return to us one of the counterparts hereof, whereupon it will become a binding
agreement between the Company, the Guarantors and the Purchaser in accordance with its terms.

	 	 	 	 	 
	 	Very truly yours,

ALION SCIENCE AND TECHNOLOGY

CORPORATION

 	 
	 	By:  	 /s/ John M. Hughes	 
	 	 	Title: Executive VP and CFO	 
	 	 	 	 
	 
	 	HUMAN FACTORS APPLICATIONS, INC.,

 	 
	 	By:  	 /s/ John M. Hughes	 
	 	 	Title: Treasurer	 
	 	 	 	 
	 
	 	ALION-METI CORPORATION,

 	 
	 	By:  	 /s/ John M. Hughes	 
	 	 	Title: Treasurer	 
	 	 	 	 
	 
	 	ALION-CATI CORPORATION,

 	 
	 	By:  	 /s/ John M. Hughes	 
	 	 	Title: Treasurer	 
	 	 	 	 
	 
	 	ALION-JJMA CORPORATION,

 	 
	 	By:  	 /s/ John M. Hughes	 
	 	 	Title: Treasurer	 
	 	 	 	 
	 	

ALION-BMH CORPORATION,

 	 
	 	By:  	 /s/ John M. Hughes	 
	 	 	Title: Treasurer	 
	 	 	 	 
	 
	 	WASHINGTON CONSULTING, INC.,

 	 
	 	By:  	 /s/ John M. Hughes	 
	 	 	Title: Treasurer	 
	 	 	 	 
	 
	 	ALION-MA&D CORPORATION,

 	 
	 	By:  	 /s/ John M. Hughes	 
	 	 	Title: Treasurer	 
	 	 	 	 

 

 

	 	 	 	 	 

The foregoing Purchase Agreement

     is hereby confirmed and accepted

     as of the date first above written.

Credit Suisse Securities (USA) LLC

	 	 	 	 	 
	 
	By:  	 	 /s/ Malcolm Price	 
	 	 	Title: Managing Director	 
	 	 	 	 

18

 

	 	 	 	 	 

SCHEDULE A

General Disclosure Package

	1.	 	The Supplement dated January 26, 2007 to the Preliminary Offering Circular.
	 
	2.	 	Terms Communication.

19

 

SCHEDULE B

Subsidiary Guarantors

	 	 	 
	Human Factors Applications, Inc.

	 	Pennsylvania
	Alion — METI Corporation

	 	Virginia
	Alion — CATI Corporation

	 	California
	Alion — JJMA Corporation

	 	New York
	Alion — BMH Corporation

	 	Virginia
	Washington Consulting, Inc.

	 	Virginia
	Alion
— MA&D Corporation

	 	Colorado

20

 

SCHEDULE C

ESOP Plan Documents

	1.	 	IRS Determination Letter issued by the U.S. Internal Revenue Service, dated September
11, 2003, and related correspondence

	2.	 	IRS Determination Letter issued by the U.S. Internal Revenue Service, dated August
09, 2005, and related correspondence

	3.	 	Alion Science and Technology Corporation Employee Ownership, Savings and Investment
Plan, as amended and restated as of December 19, 2001

	4.	 	First Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	5.	 	Second Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	6.	 	Third Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	7.	 	Fourth Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	8.	 	Fifth Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	9.	 	Sixth Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	10.	 	Seventh Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	11.	 	Eighth Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	12.	 	Ninth Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	13.	 	Tenth Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	14.	 	Eleventh Amendment to the Alion Science and Technology Corporation Employee
Ownership, Savings and Investment Plan

	15.	 	Twelfth Amendment to the Alion Science and Technology Corporation Employee Ownership,
Savings and Investment Plan

	16.	 	Thirteenth Amendment to the Alion Science and Technology Corporation Employee
Ownership, Savings and Investment Plan

	17.	 	Fourteenth Amendment to the Alion Science and Technology Corporation Employee
Ownership, Savings and Investment Plan

21

 

SCHEDULE D

Terms Communication

	 	 	 
	Issuer:
	 	Alion Science and Technology Corporation
	 
	 	 
	Security Description:
	 	Senior Unsecured Notes
	 
	 	 
	Face:
	 	$250,000,000
	 
	 	 
	Gross Proceeds:
	 	$250,000,000
	 
	 	 
	Maturity:
	 	2/1/2015
	 
	 	 
	Coupon:
	 	10.25%
	 
	 	 
	Offering Price:
	 	$100.00
	 
	 	 
	Yield to Maturity:
	 	10.25%
	 
	 	 
	Spread to Treasury:
	 	537
	 
	 	 
	Benchmark:
	 	4.00% UST due 2/2015
	 
	 	 
	Ratings:
	 	B3 / CCC+
	 
	 	 
	Interest Payment Dates:
	 	February 1 and August 1
	 
	 	 
	Commencing:
	 	8/1/2007
	 
	 	 
	Equity Clawback
	 	Redeem until 2/1/2010 at 110.25% for up to 35.0%
	 
	 	 
	Optional Redemption:
	 	Callable, on or after the following dates, and at the following prices:

	 	 	 	 	 	 	 
	 	 	Date	 	Price	 	 
	 
	 	2/1/2011	 	105.125%	 	 
	 
	 	2/1/2012	 	102.563%	 	 
	 
	 	2/1/2013	 	100.000%	 	 
	 
	 	and thereafter	 	 	 	 

	 	 	 
	 
	 	 
	Trade Date:
	 	1/26/2007
	 
	 	 
	Settlement Date:
	 	2/8/2007
	 
	 	 
	CUSIP:
	 	144A: 016275AE9
	 
	 	RegS: U01426AA0
	 
	 	ISIN: USU01426AA05
	 
	 	 
	Minimum Allocations:
	 	$2,000
	 
	 	 
	Increments:
	 	$1,000
	 
	 	 
	Gross Spread:
	 	2.50%
	 
	 	 
	Book-Runner:
	 	Credit Suisse Securities (USA) LLC

22

 

SCHEDULE E

Issuer Free Writing Communications

	1.	 	The Supplement dated January 26, 2007 to the Preliminary Offering Circular.

23

 

SCHEDULE F

Subsidiary List

	 	 	 	 	 
	 	 	Name	 	Jurisdiction
	1.

	 	Human Factors Applications, Inc.
	 	Pennsylvania
	2.

	 	Alion — METI Corporation
	 	Virginia
	3.

	 	Alion — CATI Corporation
	 	California
	4.

	 	Alion — JJMA Corporation
	 	New York
	5.

	 	Alion — BMH Corporation
	 	Virginia
	6.

	 	Washington Consulting, Inc.
	 	Virginia
	7.

	 	Alion — MA&D Corporation
	 	Colorado
	8.

	 	Alion Technical Services Corporation
	 	Virginia
	9.

	 	Alion Technical Services Corporation
	 	Delaware
	10.

	 	Alion Canada (US) Corporation
	 	Delaware
	11.

	 	Alion — IPS Corporation
	 	Virginia
	12.

	 	Inovative Technologies Solutions Corporation
	 	New Mexico
	13.

	 	Alion Science and Technology (Canada) Corporation
	 	Nova Scotia

24

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