Document:

Exhibit 4.1

 

NBTY,
INC.

 

$200,000,000

 

7
1/8% Senior Subordinated Notes due 2015

 

PURCHASE
AGREEMENT

 

September 16, 2005

 

J.P.
MORGAN SECURITIES INC.

As
Representative of the

several Initial Purchasers listed

in Schedule II hereto

c/o J.P. Morgan Securities Inc.

270 Park Avenue, 5th floor

New York, New York  10017

 

Ladies
and Gentlemen:

 

NBTY, Inc., a Delaware corporation (the “Company”),
proposes to issue and sell $200,000,000 aggregate principal amount of its 7 1/8%
Senior Subordinated Notes due 2015 (the “Notes”).  The Notes will be issued pursuant to an
Indenture to be dated as of September 23, 2005 (the “Indenture”) among
the Company, those Guarantors listed on Schedule I hereto (the “Guarantors”
and, together with the Company, the “Issuers”) and The Bank of New York,
as trustee (the “Trustee”).  The
Notes will be guaranteed on a senior subordinated basis by the Guarantors (the “Guarantees”
and, together with the Notes, the “Securities”); provided, however,
the Guarantees, other than the Guarantees of Solgar Holdings, Inc., Solgar,
Inc. and Solgar Mexico Holdings, LLC, which will be obligated to provide such
Guarantees after such time as the Company would not be required to file
separate financial statements for Solgar Holdings, Inc. with the Securities and
Exchange Commission, will not become effective until such time as all of the
Company’s issued and outstanding 85/8% Senior
Subordinated Notes due 2007 have been repaid in full.  The Company hereby confirms its agreement
with J.P. Morgan Securities Inc. (the “Representative”), Adams Harkness,
Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and RBC Capital
Markets Corporation (collectively, the “Initial Purchasers”) concerning
the purchase of the Securities by the Initial Purchasers.

 

The Securities will be offered and sold to the Initial
Purchasers without being registered under the Securities Act of 1933, as
amended (the “Securities Act”), in reliance upon exemptions
therefrom.  The Company has prepared a
preliminary offering memorandum

 

 

dated September 9, 2005 (the “Preliminary
Offering Memorandum”) and an offering memorandum dated the date hereof (the
“Final Offering Memorandum”) setting forth information concerning the
Company, the Guarantors, the Notes and the Exchange Notes (as defined below).  Copies of the Preliminary Offering Memorandum
have been, and copies of the Final Offering Memorandum will be, delivered by
the Company to the Initial Purchasers pursuant to the terms of this
Agreement.  Any references herein to the
Preliminary Offering Memorandum and the Final Offering Memorandum shall be
deemed to include all amendments and supplements thereto, unless otherwise
noted.  The Company hereby confirms that
it has authorized the use of the Preliminary Offering Memorandum and the Final
Offering Memorandum in connection with the offering and resale of the Notes by
the Initial Purchasers in accordance with Section 2.

 

Holders of the Securities (including the Initial
Purchasers and their respective direct and indirect transferees) will be entitled
to the benefits of a Registration Rights Agreement, substantially in the form attached
hereto as Annex B (the “Registration Rights Agreement”), pursuant
to which the Issuers will agree to file with the Securities and Exchange
Commission (the “Commission”) (i) a registration statement under the
Securities Act (the “Exchange Offer Registration Statement”) registering
an issue of senior subordinated notes of the Company (the “Exchange Notes”)
and an issue of senior subordinated guarantees by the Guarantors (the “Exchange
Guarantees” and, together with the Exchange Notes, the “Exchange
Securities”) which, together, are identical in all material respects to the
Securities (except that the Exchange Securities will not contain terms with
respect to transfer restrictions) and (ii) under certain circumstances, a shelf
registration statement with respect to the resale of the Securities pursuant to
Rule 415 under the Securities Act (the “Shelf Registration Statement”).

 

Capitalized terms used but not defined herein shall
have the meanings given to such terms in the Final Offering Memorandum.

 

1.             Representations, Warranties and Agreements of the
Issuers.  The Issuers, jointly and
severally, represent and warrant to, and agree with, each Initial Purchaser on
and as of the date hereof and the Closing Date (as defined in Section 3) that:

 

(a)           Each of the
Preliminary Offering Memorandum and the Final Offering Memorandum, as of its
respective date, did not, and on the Closing Date the Final Offering Memorandum
will not, contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided, however, that the Issuers make no
representation or warranty as to information contained in or omitted from the
Preliminary Offering Memorandum or the Final Offering Memorandum in reliance
upon and in conformity with written information relating to the Initial
Purchasers furnished to the Company by or on behalf of the Initial Purchasers
expressly for use therein (collectively, the “Initial Purchasers’ Information”).

 

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(b)           Each of the
Preliminary Offering Memorandum and the Final Offering Memorandum, as of its
respective date, contains all of the information that, if requested by a prospective
purchaser of the Securities, would be required to be provided to such prospective
purchaser pursuant to Rule 144A(d)(4) under the Securities Act.

 

(c)           Assuming the
accuracy of the representations and warranties of the Initial Purchasers
contained in Section 2 and their compliance with the agreements set forth
therein, it is not necessary, in connection with the issuance and sale of the
Securities to the Initial Purchasers and the offer, resale and delivery of the
Securities by the Initial Purchasers in the manner contemplated by this
Agreement and the Final Offering Memorandum, to register the Securities under
the Securities Act or to qualify the Indenture under the Trust Indenture Act of
1939, as amended (the “Trust Indenture Act”).

 

(d)           The Company and each
of the Subsidiaries (as defined in paragraph (e) below) have been duly
incorporated or formed, as the case may be, and are validly existing as a corporation
or limited liability company, as the case may be, in good standing under the
laws of their respective jurisdictions of incorporation or formation, are duly
qualified to do business and are in good standing as a foreign corporation or
limited liability company, as the case may be, in each jurisdiction in which
their respective ownership or lease of property or the conduct of their
respective businesses requires such qualification and have all power and authority
necessary to own or hold their respective properties and to conduct the
businesses in which they are engaged, except where the failure to so qualify or
have such power or authority would not, singularly or in the aggregate, have a
material adverse effect on the condition (financial or otherwise), results of
operations, business or prospects of the Company and the Subsidiaries, taken as
a whole (a “Material Adverse Effect”).

 

(e)           The Company has an
authorized capitalization as set forth in the Final Offering Memorandum under
the heading “Capitalization”; all of the outstanding shares of capital stock of
the Company have been duly and validly authorized and issued and are fully paid
and non-assessable.  The entities listed
on Schedule I hereto are the only subsidiaries (as defined in the “Description
of Notes” section of the Final Offering Memorandum) of the Company
(collectively, the “Subsidiaries”). 
All of the outstanding shares of capital stock or membership interests of
each Subsidiary have been duly and validly authorized and issued, are fully
paid and non-assessable and are owned directly or indirectly by the Company,
free and clear of any lien, charge, encumbrance, security interest, restriction
upon voting or transfer or any other claim of any third party (other than any
lien securing that certain Second Amended and Restated Credit Agreement, as
amended and restated on August 1, 2005, and as further amended thereafter, among
NBTY, Inc., the lenders party thereto, JPMorgan Chase Bank, N.A. and Bank of
America, N.A. (the “Senior Credit Facility”)).

 

(f)            The Issuers have
all requisite corporate or other organizational power and authority to execute
and deliver this Agreement, the Indenture, the Registration

 

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Rights Agreement and the Securities
(collectively, the “Transaction Documents”) and to perform their
respective obligations under the Transaction Documents; and all corporate or
other organizational action required to be taken by each of the Issuers for the
due and proper authorization, execution and delivery of each of the Transaction
Documents and the consummation of the transactions contemplated thereby has
been duly and validly taken.

 

(g)           This Agreement has
been duly authorized, executed and delivered by each of the Issuers and,
assuming due execution and delivery by the Initial Purchasers, constitutes a
valid and legally binding agreement enforceable against each of the Issuers in
accordance with its terms, except to the extent that such enforceability may be
limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally, (ii) general equitable principles (regardless of whether enforcement
is considered in a proceeding in equity or at law) and the availability of
equitable remedies or (iii) the enforceability of rights to
indemnification and contribution thereunder may be limited by federal or state
securities laws or regulations or the public policy underlying such laws or
regulations.

 

(h)           The Registration
Rights Agreement has been duly authorized by each of the Issuers and, when duly
executed and delivered in accordance with its terms by each of the parties
thereto, will constitute a valid and legally binding agreement of each of the
Issuers, enforceable against each of the Issuers in accordance with its terms,
except to the extent that such enforceability may be limited by (i) applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other similar laws affecting the enforcement of creditors’ rights generally,
(ii) general equitable principles (regardless of whether enforcement is considered
in a proceeding in equity or at law) and the availability of equitable remedies
or (iii) the enforceability of rights to indemnification and contribution
thereunder may be limited by federal or state securities laws or regulations or
the public policy underlying such laws or regulations.

 

(i)            The Indenture has
been duly authorized by each of the Issuers and, when duly executed and
delivered in accordance with its terms by each of the parties thereto, will
constitute a valid and legally binding agreement of each of the Issuers, enforceable
against each of the Issuers in accordance with its terms, except to the extent
that such enforceability may be limited by (i) applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other similar
laws affecting the enforcement of creditors’ rights generally or (ii) general
equitable principles (regardless of whether enforcement is considered in a
proceeding in equity or at law) and the availability of equitable
remedies.  On the Closing Date, the Indenture
will conform in all material respects to the requirements of the Trust
Indenture Act and the rules and regulations of the Commission thereunder.

 

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(j)            The Notes have been
duly authorized by the Company and, when duly executed, authenticated, issued
and delivered, as provided in the Indenture and paid for as provided herein,
will be duly and validly issued and outstanding and will constitute valid and
legally binding obligations of the Company entitled to the benefits of the
Indenture, enforceable against the Company in accordance with their terms,
except to the extent that such enforceability may be limited by (i) applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally or (ii) general
equitable principles (regardless of whether enforcement is considered in a
proceeding in equity or at law) and the availability of equitable remedies, and
the Guarantees have been duly authorized by each of the Guarantors and, when
the Guarantees have been duly executed, authenticated, issued and delivered as
provided in the Indenture and when the Notes have been executed, authenticated,
issued and delivered and paid for as provided herein, will be valid and legally
binding obligations of each of the Guarantors entitled to the benefits of the
Indenture, enforceable against each of the Guarantors in accordance with their
terms, except to the extent that such enforceability may be limited by (i) applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other similar laws affecting the enforcement of creditors’ rights generally or (ii) general
equitable principles (regardless of whether enforcement is considered in a proceeding
in equity or at law) and the availability of equitable remedies.

 

(k)           On the Closing Date,
the Exchange Securities (including the related Exchange Guarantees) will have
been duly authorized by each of the Issuers, as the case may be, and, when
executed, authenticated, issued and delivered as provided in the Indenture and
the Registration Rights Agreement, will be duly and validly issued and
outstanding and will constitute valid and legally binding obligations of each
of the Issuers entitled to the benefits of the Indenture, enforceable against
the Company, as issuer, and the Guarantors, each as a Guarantor of the Notes in
accordance with their terms, except to the extent that such enforceability may
be limited by (i) applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally or (ii) general equitable principles
(regardless of whether enforcement is considered in a proceeding in equity or
at law) and the availability of equitable remedies.

 

(l)            Each Transaction
Document conforms in all material respects to the description thereof contained
in the Final Offering Memorandum.

 

(m)          The execution,
delivery and performance by each of the Issuers of each of the Transaction
Documents to which it is a party, the issuance, authentication, sale and
delivery of the Securities and compliance by each of the Issuers with the terms
thereof and the consummation of the transactions contemplated by the
Transaction Documents will not (i) conflict with or result in a breach or
violation of any of the terms or the provisions of, or constitute a default
under, or, with notice or lapse of time or both, constitute a default under, or
result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of any of the Issuers pursuant to,

 

5

 

any
indenture, mortgage, deed of trust, loan agreement or other material agreement
or instrument to which any of the Issuers is a party or by which any of the
Issuers is bound or to which any of the property or assets of any of the
Issuers is subject, nor (ii) will such actions result in any violation of (x)
the provisions of the charter or by-laws of any of the Issuers or (y) any
statute or any judgment, order, decree, rule or regulation of any court or
arbitrator or governmental agency or body having jurisdiction over any of the
Issuers or any of their respective properties or assets, except, in all such
cases other than clause (ii)(x), to the extent as would not have, individually
or in the aggregate, a Material Adverse Effect; and no consent, approval, authorization
or order of, or filing or registration with, any such court or arbitrator or
governmental agency or body under any such statute, judgment, order, decree,
rule or regulation is required for the execution, delivery and performance by any
of the Issuers of each of the Transaction Documents to which it is a party, the
issuance, authentication, sale and delivery of the Securities and compliance by
the Issuers with the terms thereof and the consummation of the transactions
contemplated by the Transaction Documents, except for such consents, approvals,
authorizations, filings, registrations or qualifications (i) which shall have
been obtained or made prior to the Closing Date, (ii) as may be required to be
obtained or made under the Securities Act and applicable state securities laws
as provided in the Registration Rights Agreement or (iii) where the failure to obtain
such consents approvals, authorizations, filings, registrations, or
qualifications would not have, individually or in the aggregate, a Material
Adverse Effect.

 

(n)           Each of Deloitte
& Touche LLP and PricewaterhouseCoopers LLP is an independent registered
public accounting firm with respect to the Company and its consolidated
subsidiaries within the meaning of the Exchange Act and published rulings and
regulations thereunder.  The historical
financial statements (including the related notes) of the Company contained in
the Final Offering Memorandum comply, in all material respects, with the
requirements applicable to a registration statement on Form S-1 under the
Securities Act (except to the extent described in the Final Offering Memorandum);
such historical financial statements have been prepared in accordance with
United States generally accepted accounting principles consistently applied
throughout the periods covered thereby and fairly present, in all material
respects, the financial position of the entities purported to be covered thereby
at the respective dates indicated and the results of their operations and their
cash flows for the respective periods indicated, except as disclosed therein;
and the financial information contained in the Final Offering Memorandum under
the headings “Summary—Summary historical consolidated financial data,” “Capitalization,”
“Selected historical consolidated financial data,” and “Management’s discussion
and analysis of financial condition and results of operations” is derived from
the accounting records of the Company and the Subsidiaries and fairly presents,
in all material respects, the information purported to be shown thereby.  The other historical financial and
statistical information and data included in the Final Offering Memorandum
fairly presents, in all material respects, the information purported to be
shown thereby.

 

6

 

(o)           Except as disclosed
in the Final Offering Memorandum, there are no legal or governmental
proceedings (including, without limitation, before the United States Food and
Drug Administration (the “FDA”), the Federal Trade Commission (the “FTC”),
the Consumer Product Safety Commission (the “CPSC”), the United States
Department of Agriculture (the “USDA”), the Environmental Protection
Agency (the “EPA”), the U.K. Foods Standard Agency (“FSA”) and
the U.K. Department of Health pending to which the Company or any of the
Subsidiaries is a party or of which any property or assets of the Company or
any of the Subsidiaries is the subject which, singularly or in the aggregate,
if determined adversely to the Company or any of the Subsidiaries, could
reasonably be expected to have a Material Adverse Effect; and except as
disclosed in the Final Offering Memorandum, to the best knowledge of the
Company, no such proceedings are threatened or contemplated by governmental
authorities or threatened by others.

 

(p)           To the best
knowledge of the Issuers, no action has been taken and no statute, rule, regulation,
injunction or order has been enacted, adopted or issued by any governmental
agency or body which prevents the issuance of the Securities or suspends the
sale of the Securities and no injunction, restraining order or order of any
nature by any federal or state court of competent jurisdiction has been issued
with respect to the Issuers which would prevent or suspend the issuance or sale
of the Securities or the use of the Preliminary Offering Memorandum or the
Final Offering Memorandum in any jurisdiction; no action, suit or proceeding is
pending against or, to the best knowledge of the Issuers, threatened against or
affecting any Issuer before any court or arbitrator or any governmental agency,
body or official, domestic or foreign, which could reasonably be expected to
interfere with or adversely affect the issuance of the Securities or in any
manner draw into question the validity or enforceability of any of the
Transaction Documents or any action taken or to be taken pursuant to the
Transaction Documents; and the Issuers have complied with any and all requests
by any securities authority in any jurisdiction for additional information to
be included in the Preliminary Offering Memorandum and the Final Offering
Memorandum.

 

(q)           Neither the Company
nor any of the Subsidiaries is (i) in violation of its charter, by-laws or
operating agreement, (ii) in default, and no event has occurred which,
with notice or lapse of time or both, would constitute a default, in the due
performance or observance of any term, covenant or condition contained in any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument
to which the Company or any of its Subsidiaries is a party or by which the
Company or any of its Subsidiaries is bound or to which any of the Company’s or
any of its Subsidiaries’ property or assets is subject, which default,
individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect or (iii) in violation of any law (including, without limitation,
the Federal Food, Drug and Cosmetic Act and the Dietary Supplement Health and
Education Act of 1994), ordinance, governmental rule, regulation, order,
judgment or decree to which it or its property or assets may be subject, which
violation, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.

 

7

 

(r)            The Company and
each of the Subsidiaries possess all material licenses, certificates,
authorizations and permits issued by, and have made all declarations and filings
with, the appropriate federal, state, local or foreign regulatory agencies or
bodies (including, without limitation, the FDA, the FTC, the CPSC, the USDA,
the EPA, FSA, the U.K. Department of Health) which are necessary or desirable
for the ownership of their respective properties or the conduct of their respective
businesses as described in the Final Offering Memorandum, except where the
failure to possess or make the same would not, singularly or in the aggregate,
have a Material Adverse Effect, and neither the Company nor any of the Subsidiaries
has received notification of any revocation or modification of any such
license, certificate, authorization or permit or has any reason to believe that
any such license, certificate, authorization or permit will not be renewed in
the ordinary course except where the failure to renew any such license,
certificate, authorization or permit, singularly or in the aggregate, could reasonably
be expected to have a Material Adverse Effect.

 

(s)           The Company and each
of the Subsidiaries have filed all federal, state, local and foreign income and
franchise tax returns required to be filed through the date hereof and have
paid all taxes due thereon, except insofar as the failure to file such returns,
individually or in the aggregate, would not have a Material Adverse Effect; and
no tax deficiency has been determined adversely to the Company or any of the
Subsidiaries which has had (nor does the Company or any of the Subsidiaries
have any knowledge of any tax deficiency which, if determined adversely to the
Company or any of the Subsidiaries, could reasonably be expected to have) a
Material Adverse Effect.

 

(t)            Neither the Company
nor any of the Subsidiaries is (i) an “investment company” or a company “controlled
by” an “investment company” within the meaning of the Investment Company Act of
1940, as amended (the “Investment Company Act”), and the rules and
regulations of the Commission thereunder or (ii) a “holding company” or a “subsidiary
company” of a “holding company” or an “affiliate” of any thereof within the
meaning of the Public Utility Holding Company Act of 1935, as amended.

 

(u)           The Company and each
of the Subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations; (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to
maintain asset accountability; (iii) access to assets is permitted only in
accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

 

(v)           The Company and each
of the Subsidiaries have insurance covering their respective properties,
operations, personnel and businesses, which insurance is in

 

8

 

amounts
and insures against such losses and risks as are adequate in the Company’s
reasonable opinion to protect the Company and the Subsidiaries and their
respective businesses.  Neither the
Company nor any of the Subsidiaries has received notice from any insurer or
agent of such insurer that substantial capital improvements are required or
necessary to be made in order to continue such insurance.

 

(w)          The Company and each
of the Subsidiaries own or possess adequate rights to use all material patents,
patent applications, trademarks, service marks, trade names, trademark
registrations, service mark registrations, copyrights, licenses and know-how
(including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures) (collectively, the “intellectual
property”) necessary for the conduct of their respective businesses, except
where the failure to own or possess, have the right to use, or otherwise be
able to acquire such intellectual property would not, singularly or in the
aggregate, have a Material Adverse Effect; and the conduct of their respective
businesses will not conflict in any material respect with, and the Company and
the Subsidiaries have not received any notice of any claim of conflict with,
any such material rights of others, in each case which conflict, individually
or in the aggregate, would have a Material Adverse Effect.

 

(x)            The Company and
each of the Subsidiaries have good and marketable title in fee simple to, or
have valid rights to lease or otherwise use, all items of real and personal
property which are material to the business of the Company and the Subsidiaries,
in each case free and clear of all liens, encumbrances, claims and defects and
imperfections of title other than (i) liens, encumbrances and claims securing the
Senior Credit Facility or as disclosed in the Final Offering Memorandum or (ii)
liens, encumbrances, claims and defects and imperfections of title that (I) do
not materially interfere with the use made and proposed to be made of such
property or (II) could not reasonably be expected to have a Material Adverse
Effect.

 

(y)           No labor disturbance
by or dispute with the employees of the Company or any of the Subsidiaries
exists or, to the best knowledge of the Company and the Subsidiaries, is
contemplated or threatened, to the extent as could reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect; there is
no significant unfair labor practice complaint pending against the Company or
any of the Subsidiaries nor, to the best knowledge of the Company and the Subsidiaries,
threatened against any of them, before the National Labor Relations Board, any
state or local labor relations board or any foreign labor relations boards, and
no significant grievance or significant arbitration proceeding arising out of
or under any collective bargaining agreement is pending against the Company or
any or the Subsidiaries or, to the best knowledge of the Company and the
Subsidiaries, threatened against any of them, in each case, to the extent as
could not reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect.

 

(z)            No “prohibited
transaction” (as defined in Section 406 of the Employee Retirement Income
Security Act of 1974, as amended, including the regulations and

 

9

 

published
interpretations thereunder (“ERISA”), or Section 4975 of the Internal
Revenue Code of 1986, as amended from time to time (the “Code”)) or “accumulated
funding deficiency” (as defined in Section 302 of ERISA) or any of the events
set forth in Section 4043(b) of ERISA (other than events with respect to which
the 30-day notice requirement under Section 4043 of ERISA has been waived) has
occurred with respect to any employee benefit plan of the Company or any of the
Subsidiaries, or any entity that together with the Company or any Subsidiary is
treated as a single employer under Section 414 (b), (c), (m) or (e) of the
Code, which, in each case, could reasonably be expected to have a Material
Adverse Effect; each such employee benefit plan, including, without limitation,
each such pension plan that is intended to be qualified under Section 401(a) of
the Code, is in compliance in all material respects with applicable law,
including ERISA and the Code, except for instance of noncompliance which could
not reasonably be expected to have a Material Adverse Effect; the Company and
each of the Subsidiaries have not incurred and do not expect to incur liability
under Title IV of ERISA with respect to the termination of, or withdrawal from,
any pension plan for which the Company or any of the Subsidiaries would have
any liability which could reasonably be expected to have a Material Adverse
Effect.

 

(aa)         There has been no
storage, generation, transportation, handling, treatment, disposal, discharge,
emission or other release of any kind of any pollutant or contaminant, or any
toxic, hazardous or other substance, waste or constituent (“Material”)
by, due to or caused by the Company or any of the Subsidiaries (or, to the best
knowledge of the Company and the Subsidiaries, any other entity (including any
predecessor) for whose acts or omissions the Company or any of the Subsidiaries
is or could reasonably be expected to be liable) at, upon, under or from any of
the property now or previously owned, leased or operated by the Company or any
of the Subsidiaries (or any predecessor), or upon any other property, in
violation of any statute or any ordinance, rule, regulation, order, judgment,
decree or permit or which would, under any statute or any ordinance, rule
(including rule of common law), regulation, order, judgment, decree or permit,
give rise to any liability, except for any violation or liability which could
not reasonably be expected to have, singularly or in the aggregate with all
such violations and liabilities, a Material Adverse Effect; and there has been
no disposal, discharge, emission or other release of any kind onto such
property or into the environment surrounding such property of any Material with
respect to which the Company or any of the Subsidiaries has knowledge, except
for any such disposal, discharge, emission or other release of any kind which
could not reasonably be expected to have, singularly or in the aggregate with
all such discharges and other releases, a Material Adverse Effect.

 

(bb)         Neither the Company,
any of the Subsidiaries nor, to the best knowledge of the Company and the
Subsidiaries, any director, officer, agent, employee or other person associated
with or acting on behalf of the Company or any of the Subsidiaries has (i) used
any corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity; (ii) made any direct or indirect
unlawful payment to any foreign or domestic government official or employee

 

10

 

from
corporate funds; (iii) violated or is in violation of any provision of the
Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment.

 

(cc)         Prior to and
immediately after the closing of the offering of the Notes, each of (x) the Company
and (y) the Guarantors, taken as a whole, (after giving effect to the issuance
of the Securities and to the other transactions related thereto as described in
the Final Offering Memorandum) will be Solvent. 
As used in this paragraph, the term “Solvent” means, with respect to an
Issuer at a particular time, that at such time (i) the present fair market
value (or present fair saleable value) of the assets of such Issuer is not less
than the total amount required to pay the probable liabilities of such Issuer,
as the case may be, on its total existing debts and liabilities (including
contingent liabilities) as they become absolute and matured, (ii) such Issuer
is able to realize upon its assets and pay its debts and other liabilities,
contingent obligations and commitments as they mature and become due in the
normal course of business, (iii) such Issuer has not incurred and is not
incurring debts or liabilities beyond its ability to pay as such debts and
liabilities mature and (iv) such Issuer is not engaged in any business or
transaction, and does not intend to engage in any business or transaction, for
which its property would constitute unreasonably small capital.  In computing the amount of such contingent
liabilities at any time, it is intended that such liabilities will be computed
at the amount that, in the light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an
actual or matured liability.

 

(dd)         Except as described
in the Final Offering Memorandum, there are no outstanding subscriptions, rights,
warrants, calls or options to acquire, or instruments convertible into or
exchangeable for, or agreements or understandings with respect to the sale or
issuance of, any shares of capital stock of or other equity or other ownership
interest in the Company or any of the Subsidiaries.

 

(ee)         Neither the issuance,
sale and delivery of the Securities nor the application of the proceeds thereof
by the Company as described in the Final Offering Memorandum will violate
Regulation T, U or X of the Board of Governors of the Federal Reserve System or
any other regulation of such Board of Governors.

 

(ff)           No Issuer is a
party to any contract, agreement or understanding with any person (other than
the Initial Purchasers) that would give rise to a valid claim against such
Issuer or the Initial Purchasers for a brokerage commission, finder’s fee or
like payment in connection with the offering and sale of the Notes.

 

(gg)         The Securities
satisfy the eligibility requirements of Rule 144A(d)(3) under the Securities
Act.

 

(hh)         None of the Issuers nor
any of their affiliates (“Affiliates”) (as defined in Rule 501(b) of
Regulation D under the Securities Act (“Regulation D”)) has,

 

11

 

directly
or through any agent (other than the Initial Purchasers, as to which no
representation is made), sold, offered for sale, solicited offers to buy or
otherwise negotiated in respect of, any security (as such term is defined in
the Securities Act), which is or will be integrated with the sale of the
Securities in a manner that would require registration of the Securities under
the Securities Act.

 

(ii)           None of the Issuers
nor any of their respective affiliates or any other person acting on their
behalf (other than the Initial Purchasers, as to which no representation is
made) has (i) solicited offers for, or offered or sold, the Securities by means
of any form of general solicitation or general advertising within the meaning
of Rule 502(c) of Regulation D or in any manner involving a public offering
within the meaning of Section 4(2) of the Securities Act or (ii) engaged in any
directed selling efforts within the meaning of Regulation S under the
Securities Act (“Regulation S”) with respect to the Securities, and all
such persons have complied with the offering restrictions requirement of
Regulation S.

 

(jj)           There are no holders
of securities of the Issuers who, by reason of the execution by the Issuers of
any of the Transaction Documents or the consummation of the transactions
contemplated therein (except as contemplated by the Registration Rights
Agreement), have the right to request or demand that the Issuers register under
the Securities Act any securities held by them.

 

(kk)         No forward-looking
statement (within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act) contained in the Preliminary Offering Memorandum or
the Final Offering Memorandum has been made or reaffirmed without a reasonable
basis or has been disclosed other than in good faith.

 

(ll)           Since the date as
of which information is given in the Final Offering Memorandum, except as
otherwise expressly stated therein, (i) there has been no material adverse
change in the condition (financial or otherwise), or in the results of
operations, business, management or prospects of the Company and the
Subsidiaries taken as a whole, (ii) neither the Company nor any Subsidiary has
incurred any material liability or obligation, direct or contingent, other than
in the ordinary course of business, (iii) neither the Company nor any
Subsidiary has entered into any material transaction other than in the ordinary
course of business and (iv) there has not been any change in the capital stock
or long-term debt of the Company and the Subsidiaries, except in the normal
course of business, or any dividend or distribution of any kind declared, paid
or made by the Company or any of the Subsidiaries on any class of its capital
stock.

 

(mm)       There is and has been
no failure on the part of the Company or, to the Company’s knowledge, any of
the Company’s directors or officers, in their capacities as such, to comply
with any provision of the United States Sarbanes-Oxley Act of 2002 and the
rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley
Act”), including Section 402 related to loans and Sections 302 and 906

 

12

 

related
to certifications which failure could reasonably be expected to have a Material
Adverse Effect.

 

2.             Purchase and Resale of the Notes.  (a)  On
the basis of the representations, warranties and agreements contained herein,
and subject to the terms and conditions set forth herein, the Company agrees to
issue and sell to the Initial Purchasers, and each of the Initial Purchasers,
severally and not jointly, agrees to purchase from the Company, the respective
principal amount of Notes set forth opposite such Initial Purchaser’s name in
Schedule II hereto at a purchase price equal to 97.8780375% of the principal
amount thereof.  The Company shall not be
obligated to deliver any of the Securities except upon payment for all of the
Securities to be purchased as provided herein.

 

(b)           Each Initial Purchaser has advised the Issuers that it
proposes to offer the Securities for resale upon the terms and subject to the
conditions set forth herein and in the Final Offering Memorandum.  Each Initial Purchaser, severally and not
jointly, represents and warrants to, and agrees with, the Issuers that (i) it
is purchasing the Securities pursuant to a private sale exempt from registration
under the Securities Act, (ii) it has not solicited offers for, or offered or
sold, and will not solicit offers for, or offer or sell, the Securities by
means of any form of general solicitation or general advertising within the
meaning of Rule 502(c) of Regulation D under the Securities Act or in any
manner involving a public offering within the meaning of Section 4(2) of the Securities
Act and (iii)(a) it has solicited and will solicit offers for the Securities
only from, and has offered or sold and will offer, sell or deliver the
Securities, as part of its initial offering, only to, persons whom it
reasonably believes to be qualified institutional buyers (“Qualified
Institutional Buyers”) as defined in Rule 144A under the Securities Act (as
such rule may be amended from time to time, “Rule 144A”), or if any such
person is buying for one or more institutional accounts for which such person
is acting as fiduciary or agent, only when such person has represented to it
that each such account is a Qualified Institutional Buyer to whom notice has
been given that such sale or delivery is being made in reliance on Rule 144A
and, in each case, in transactions in accordance with Rule 144A or (b) in
accordance with the restrictions set forth in Annex A hereto.  Each Initial Purchaser agrees that, prior to
or simultaneously with the confirmation of sale by such Initial Purchaser to
any purchaser of any of the Securities purchased by such Initial Purchaser from
the Issuers pursuant hereto, such Initial Purchaser shall furnish to that
purchaser a copy of the Final Offering Memorandum (and any amendment or
supplement thereto that the Issuers shall have furnished to the Initial
Purchasers prior to the date of such confirmation of sale).  In addition to the foregoing, each Initial
Purchaser acknowledges and agrees that the Issuers and, for purposes of the
opinions to be delivered to the Initial Purchasers pursuant to Sections 5(d)
and (h), counsel for any of the Issuers and for the Initial Purchasers,
respectively, may rely upon the accuracy of the representations and warranties
of the Initial Purchasers and their compliance with their agreements contained
in this Section 2, and the Initial Purchasers hereby consents to such reliance.

 

(c)           The Issuers acknowledge and agree that the Initial
Purchasers may sell Securities to any of their affiliates and that any such
affiliate may sell Securities purchased by it to any Initial Purchaser.

 

13

 

(d)           Each of the Issuers acknowledges and agrees that each of the
Initial Purchasers is acting solely in the capacity of an arm’s length
contractual counterparty to each of the Issuers with respect to the offering of
Securities contemplated hereby (including in connection with determining the
terms of the offering) and not as a financial advisor or a fiduciary to, or an
agent of, any of the Issuers or any other person.  Additionally, no Initial Purchasers is
advising any Issuer or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction.  The Issuers shall consult with their own
advisors concerning such matters and shall be responsible for making their own
independent investigation and appraisal of the transactions contemplated
hereby, and none of Initial Purchasers shall have responsibility or liability
to the Company with respect thereto.  Any
review by the Initial Purchasers of the Company, the transactions contemplated
hereby or other matters relating to such transactions will be performed solely
for the benefit of the Initial Purchasers and shall not be on behalf of the
Issuers.

 

3.             Delivery
of and Payment for the Notes.  (a)  Delivery of and payment for the Notes shall
be made at the offices of Cahill Gordon & Reindel LLP, New York, New York, or at such other
place as shall be agreed upon by the Initial Purchasers and the Company, at
10:00 A.M., New York City time, on September 23, 2005, or at such other
time or date, not later than seven full business days thereafter, as shall be
agreed upon by the Initial Purchasers and the Company (such date and time of
payment and delivery being referred to herein as the “Closing Date”).

 

(b)           On the Closing Date, payment of the purchase price for the
Notes shall be made to the Company by wire or book-entry transfer of same-day
funds against delivery to the Initial Purchasers of the certificates evidencing
the Notes.  Time shall be of the essence,
and delivery at the time and place specified pursuant to this Agreement is a further
condition of the obligations of the Initial Purchasers hereunder.  Upon delivery, the Notes shall be in global
form, registered in such names and in such denominations as the Initial Purchasers
shall have requested in writing not less than two full business days prior to
the Closing Date.  The Company agrees to
make one or more global certificates evidencing the Securities available for
inspection by the Initial Purchasers in New York, New York at least 24 hours
prior to the Closing Date.

 

4.             Further Agreements of the Issuers.  Each Issuer agrees, jointly and severally, with
each Initial Purchaser:

 

(a)           to advise the Initial
Purchasers promptly and, if requested, confirm such advice in writing, of the
happening of any event which makes any statement of a material fact made in the
Final Offering Memorandum untrue or which requires the making of any additions
to or changes in the Final Offering Memorandum (as amended or supplemented from
time to time) in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; to advise the Initial
Purchasers promptly of any order preventing or suspending the use of the
Preliminary Offering Memorandum or the Final Offering Memorandum, of any
suspension of the qualification of the Securities for offering or sale in any
jurisdiction

 

14

 

and
of the initiation or threatening of any proceeding for any such purpose; and to
use its reasonable best efforts to prevent the issuance of any such order
preventing or suspending the use of the Preliminary Offering Memorandum or the
Final Offering Memorandum or suspending any such qualification and, if any such
suspension is issued, to obtain the lifting thereof at the earliest possible
time;

 

(b)           to furnish promptly
to each of the Initial Purchasers and counsel for the Initial Purchasers,
without charge, as many copies of the Preliminary Offering Memorandum and the
Final Offering Memorandum (and any amendments or supplements thereto) as may be
reasonably requested;

 

(c)           prior to making any
amendment or supplement to the Final Offering Memorandum, to furnish a copy
thereof to each of the Initial Purchasers and counsel for the Initial
Purchasers and not to effect any such amendment or supplement to which the Initial
Purchasers shall reasonably object by notice to the Company after a reasonable
period to review;

 

(d)           if, at any time
prior to completion of the resale of the Securities by the Initial Purchasers,
any event shall occur, information shall become known or condition shall exist
as a result of which it is necessary, in the reasonable opinion of counsel for
the Initial Purchasers or counsel for the Company, to amend or supplement the
Final Offering Memorandum in order that the Final Offering Memorandum will not include
an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances existing at the time it is delivered to a purchaser, not
misleading, or if it is necessary to amend or supplement the Final Offering
Memorandum to comply with applicable law, to promptly prepare (subject to
Section 4(c) above) such amendment or supplement as may be necessary to correct
such untrue statement or omission so that the Final Offering Memorandum, as so
amended or supplemented, will comply with applicable law;

 

(e)           for so long as the
Securities are outstanding and are “restricted securities” within the meaning
of Rule 144(a)(3) under the Securities Act, to furnish to holders of the Securities
and prospective purchasers of the Securities designated by such holders, upon
request of such holders or such prospective purchasers, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act,
unless the Company is then subject to and in compliance with Section 13 or
15(d) of the Exchange Act (the foregoing agreement being for the benefit of the
holders from time to time of the Securities and prospective purchasers of the
Securities designated by such holders);

 

(f)            for so long as the
Securities are outstanding, to furnish to the Initial Purchasers, unless
publicly available, copies of any reports and such other documents, reports and
information as shall be furnished by the Company to the Trustee or to the
holders of the Notes pursuant to the Indenture or the Exchange Act or any rule
or regulation of the Commission thereunder;

 

15

 

(g)           to promptly take
from time to time such actions as the Initial Purchasers may reasonably request
to qualify the Securities for offering and sale under the state securities or
Blue Sky laws of such jurisdictions as the Initial Purchasers may designate and
to continue such qualifications in effect for so long as required for the
resale of the Securities; and to arrange for the determination of the eligibility
for investment of the Securities under the laws of such jurisdictions as the Initial
Purchasers may reasonably request; provided, however, that no
Issuer shall be obligated to qualify as a foreign corporation in any
jurisdiction in which it is not so qualified or to file a general consent to
service of process in any jurisdiction;

 

(h)           to use its
reasonable best efforts to assist the Initial Purchasers in arranging for the
Securities to be designated Private Offerings, Resales and Trading through
Automated Linkages (“PORTAL”) Market securities in accordance with the
rules and regulations adopted by the National Association of Securities
Dealers, Inc. (“NASD”) relating to trading in the PORTAL Market and for
the Securities to be eligible for clearance and settlement through The
Depository Trust Company (“DTC”);

 

(i)            not to, and to
cause its Affiliates not to, sell, offer for sale or solicit offers to buy or
otherwise negotiate in respect of any security (as such term is defined in the
Securities Act) which could be integrated with the sale of the Securities in a
manner which would require registration of the sale of the Securities under the
Securities Act;

 

(j)            except following
the effectiveness of the Exchange Offer Registration Statement or the Shelf
Registration Statement, as the case may be, not to, and to use its reasonable
best efforts to cause its Affiliates not to, and not to authorize or knowingly
permit any person acting on their behalf to, solicit any offer to buy or offer
to sell the Securities by means of any form of general solicitation or general
advertising within the meaning of Regulation D or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act; not to
offer, sell, contract to sell or otherwise dispose of, directly or indirectly,
any securities under circumstances where such offer, sale, contract or
disposition would cause the exemption afforded by Section 4(2) of the
Securities Act to cease to be applicable to the offering and sale of the
Securities as contemplated by this Agreement and the Final Offering Memorandum;
and not to engage in any directed selling efforts within the meaning of
Regulation S with respect to the Securities, and all such persons will comply
with the offering restrictions requirement of Regulation S;

 

(k)           for a period of
90 days from the date of the Final Offering Memorandum, not to offer for
sale, sell, contract to sell or otherwise dispose of, directly or indirectly,
or file a registration statement for, or announce any offer, sale, contract for
sale of or other disposition of any debt securities or guaranteed by the Issuers
(other than the Securities) without the prior written consent of the Initial Purchasers;

 

16

 

(l)            without the prior
written consent of the Initial Purchasers, not to, and not permit any of its
affiliates (as defined in Rule 144 under the Securities Act) to, resell
any of the Securities that have been reacquired by them, except for Securities
purchased by the Company or any of its affiliates and resold in a transaction
registered under the Securities Act;

 

(m)          not to, for so long
as the Securities are outstanding, be or become, or be or become owned by, 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, and to not be or become, or be or become owned by, a
closed-end investment company required to be registered, but not registered
thereunder;

 

(n)           in connection with
the offering of the Securities, until the Initial Purchasers shall have
notified the Company of the completion of the resale of the Securities, not to,
and to cause its affiliated purchasers (as defined in Regulation M under the
Exchange Act) not to, either alone or with one or more other persons, bid for
or purchase, for any account in which it or any of its affiliated purchasers
has a beneficial interest, any Securities, or attempt to induce any person to
purchase any Securities; and not to, and to use its reasonable efforts to cause
its affiliated purchasers not to, make bids or purchase for the purpose of
creating actual, or apparent, active trading in or of raising the price of the
Securities;

 

(o)           in connection with
the offering of the Securities, to make its officers, employees, independent
accountants and legal counsel reasonably available upon request by the Initial
Purchasers;

 

(p)           to do and perform
all things required to be done and performed by it under this Agreement and the
Registration Rights Agreement that are within its control prior to or after the
Closing Date, and to use its reasonable best efforts to satisfy all conditions
precedent on its part to the delivery of the Securities;

 

(q)           prior to the Closing
Date, not to issue any press release or other communication directly or
indirectly or hold any press conference with respect to the Company, its
condition, financial or otherwise, or earnings, business affairs or business
prospects (except in the ordinary course of business and consistent with the
past practices of the Company and of which the Initial Purchasers are notified,
including the speech by Harvey Kamil at the CL King Best Ideas Conference),
without the consent of the Initial Purchasers, unless in the judgment of the
Company and its counsel, and after notification to the Initial Purchasers, such
press release or communication is required by law; and

 

(r)            to apply the net
proceeds from the sale of the Securities as set forth in the Final Offering
Memorandum under the heading “Use of proceeds.”

 

17

 

5.             Conditions of Initial Purchasers’ Obligations.  The obligation of each Initial Purchaser
hereunder is subject to the accuracy, on and as of the date hereof and the
Closing Date, of the representations and warranties of the Issuers contained
herein, to the accuracy of the statements of the Issuers and their respective
officers made in any certificates delivered pursuant hereto, to the performance
by the Issuers of their obligations hereunder, and to each of the following
additional terms and conditions:

 

(a)           The Final Offering
Memorandum (and any amendments or supplements thereto) shall have been printed
and copies distributed to the Initial Purchasers as promptly as practicable on
or following the date of this Agreement or at such other date and time as to
which the Initial Purchasers may agree; and no stop order suspending the sale
of the Securities in any jurisdiction shall have been issued and no proceeding
for that purpose shall have been commenced or shall be pending or threatened.

 

(b)           The Initial
Purchasers shall not have disclosed to the Company on or prior to the Closing
Date that the Final Offering Memorandum or any amendment or supplement thereto
contains an untrue statement of a fact which, in the reasonable opinion of
counsel for the Initial Purchasers, is material or omits to state any fact
which, in the reasonable opinion of such counsel, is material and is required
to be stated therein or is necessary to make the statements therein not
misleading.

 

(c)           All corporate
proceedings and other legal matters incident to the authorization, form and
validity of each of the Transaction Documents and the Final Offering
Memorandum, and all other legal matters relating to the Transaction Documents
and the transactions contemplated thereby (including any agreements or
documents executed and delivered in connection therewith), shall be reasonably satisfactory
in all material respects to the Initial Purchasers, and the Issuers shall have
furnished to the Initial Purchasers all documents and information that they or
their counsel may reasonably request to enable them to pass upon such matters.

 

(d)           Milbank, Tweed,
Hadley & McCloy LLP shall have furnished to the Initial Purchasers their
written opinion, as counsel to the Issuers, addressed to the Initial Purchasers
and dated the Closing Date, in form and substance reasonably satisfactory to
the Initial Purchasers, substantially to the effect set forth in Annex C
hereto.

 

(e)           Hyman, Phelps &
McNamara, P.C. shall have furnished to the Initial Purchasers their written
opinion, as United States regulatory counsel to the Issuers, addressed to the Initial
Purchasers and dated the Closing Date, in form and substance reasonably
satisfactory to the Initial Purchasers, substantially to the effect set forth
in Annex D hereto.

 

(f)            Squire, Sanders
& Dempsey L.L.P. shall have furnished to the Initial Purchasers their
written opinion, as special Florida counsel to Rexall Sundown, Inc., addressed
to the Initial Purchasers and dated the Closing Date, in form and substance

 

18

 

reasonably
satisfactory to the Initial Purchasers, substantially to the effect set forth
in Annex E hereto.

 

(g)           Irene Fisher, Esq. shall
have furnished to the Initial Purchasers her written opinion, as counsel to the
Issuers, addressed to the Initial Purchasers and dated the Closing Date, in
form and substance reasonably satisfactory to the Initial Purchasers,
substantially to the effect set forth in Annex F hereto.

 

(h)           The Initial
Purchasers shall have received from Cahill Gordon & Reindel LLP, counsel for the Initial
Purchasers, such opinion or opinions, dated the Closing Date, with respect to
such matters as the Initial Purchasers may reasonably require, and the Company
shall have furnished to such counsel such documents and information as they
request for the purpose of enabling them to pass upon such matters.

 

(i)            The Company shall
have furnished to the Initial Purchasers a “comfort” letter of Deloitte &
Touche LLP addressed to the Initial Purchasers and dated the date hereof, in
form and substance previously approved by the Initial Purchasers and counsel
for the Initial Purchasers.

 

(j)            The Company shall
have furnished to the Initial Purchasers a “comfort” letter of
PricewaterhouseCoopers LLP, addressed to the Initial Purchasers and dated the
date hereof, in form and substance previously approved by the Initial
Purchasers and counsel for the Initial Purchasers.

 

(k)           The Company shall
have furnished to the Initial Purchasers a “bring-down comfort letter” of Deloitte
& Touche LLP, addressed to the Initial Purchasers and dated the Closing
Date, in form and substance satisfactory to the Initial Purchasers and counsel
for the Initial Purchasers.

 

(l)            The Company shall
have furnished to the Initial Purchasers a certificate, dated the Closing Date,
of its chief executive officer and its chief financial officer stating that
(A) such officers have examined the Final Offering Memorandum, (B) in
their opinion, the Final Offering Memorandum, as of its date, did not include
any untrue statement of a material fact and did not omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, and since the date of the Final Offering Memorandum, no event has
occurred which should have been set forth in a supplement or amendment to the
Final Offering Memorandum so that the Final Offering Memorandum (as so amended
or supplemented) would not include any untrue statement of a material fact and
would not omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading and (C) as of the Closing Date, the
representations and warranties of the Company in this Agreement are true and
correct in all material respects, the Company has complied with all agreements
and satisfied all conditions on its part to be performed or satisfied

 

19

 

hereunder
on or prior to the Closing Date, and subsequent to the date of the most recent
financial statements contained in the Final Offering Memorandum, there has been
no material adverse change in the financial position or results of operations
of the Company or any of its Subsidiaries, taken as a whole, or any material
adverse change, or any development including a prospective change, in or
affecting the condition (financial or otherwise), results of operations,
business or prospects of the Company and the Subsidiaries taken as a whole,
except as expressly set forth in the Final Offering Memorandum.

 

(m)          The Initial
Purchasers shall have received on the Closing Date a counterpart of the
Registration Rights Agreement which shall have been executed and delivered by a
duly authorized officer of each of the Issuers.

 

(n)           The Indenture shall
have been duly executed and delivered on the Closing Date by each of the
Issuers and the Trustee, and the Securities shall have been duly executed and
delivered by each of the Issuers and duly authenticated by the Trustee.

 

(o)           The Securities shall
have been approved on or before the Closing Date by the NASD for trading in the
PORTAL Market.

 

(p)           If any event shall
have occurred that requires the Company under Section 4(d) to prepare an
amendment or supplement to the Final Offering Memorandum, such amendment or
supplement shall have been prepared, the Initial Purchasers shall have been
given a reasonable opportunity to comment thereon, and copies thereof shall
have been delivered to the Initial Purchasers reasonably in advance of the Closing
Date.

 

(q)           There shall not have
occurred any invalidation of Rule 144A under the Securities Act by any
court or any withdrawal or proposed withdrawal of any rule or regulation under
the Securities Act or the Exchange Act by the Commission or any amendment or
proposed amendment thereof by the Commission which in the judgment of the
Representative would materially impair the ability of the Initial Purchasers to
purchase, hold or effect resales of the Securities as contemplated hereby.

 

(r)            Subsequent to the
execution and delivery of this Agreement or, if earlier, the dates as of which
information is given in the Final Offering Memorandum (exclusive of any
amendment or supplement thereto), other than as expressly described in the
Final Offering Memorandum, there shall not have been any change in the capital
stock or long-term debt or any change, or any development involving a
prospective change, in or affecting the condition (financial or otherwise),
results of operations, business or prospects of the Company and the
Subsidiaries taken as a whole, the effect of which, in any such case described
above, is, in the reasonable judgment of the Representative, so material and
adverse as to make it impracticable or inadvisable to proceed with the offering,
sale or delivery of the Securities on the terms and in the

 

20

 

manner
contemplated in this Agreement and the Final Offering Memorandum (exclusive of
any amendment or supplement thereto).

 

(s)           No action shall have
been taken and no statute, rule, regulation or order shall have been enacted,
adopted or issued by any governmental agency or body which would, as of the
Closing Date, prevent the issuance, sale or resale of the Securities; and no
injunction, restraining order or order of any other nature by any federal or
state court of competent jurisdiction shall have been issued as of the Closing
Date which would prevent the issuance, sale or resale of the Securities.

 

(t)            Subsequent to the
execution and delivery of this Agreement (i) no downgrading shall have
occurred in the rating accorded the Securities or any other debt securities or
preferred stock of the Company by any “nationally recognized statistical rating
organization,” as such term is defined by the Commission for purposes of Rule
436(g)(2) of the rules and regulations of the Commission under the Securities
Act, and (ii) no such organization shall have publicly announced that it
has under surveillance or review (other than an announcement with positive
implications of a possible upgrading), its rating of the Securities or any of
the Company’s other debt securities or preferred stock.

 

(u)           Subsequent to the
execution and delivery of this Agreement there shall not have occurred any of
the following:  (i) trading in securities
generally shall have been suspended or materially limited on the New York Stock
Exchange or the over-the-counter market; (ii) trading of any securities issued
or guaranteed by the Company or any of the Guarantors shall have been suspended
on any exchange or in any over-the-counter market; (iii) a general moratorium
on commercial banking activities shall have been declared by federal or New
York State authorities; or (iv) there shall have occurred any outbreak or
escalation of hostilities or any change in financial markets or any calamity or
crisis, either within or outside the United States, that, in the reasonable judgment
of the Representative, is material and adverse and makes it impracticable or
inadvisable to proceed with the offering, sale or delivery of the Securities on
the terms and in the manner contemplated by this Agreement and the Final
Offering Memorandum.

 

All opinions, letters, evidence and certificates
mentioned above or elsewhere in this Agreement shall be deemed to be in compliance
with the provisions hereof only if they are in form and substance reasonably
satisfactory to counsel for the Initial Purchasers.

 

6.             Termination. 
The obligations of the Initial Purchasers hereunder may be terminated by
the Representative, in its absolute discretion, by notice given to and received
by the Company prior to delivery of and payment for the Securities if, prior to
that time, any of the events described in Section 5 (q), (r), (s), (t) or (u) shall
have occurred and be continuing.

 

21

 

7.             Reimbursement of Initial Purchasers’ Expenses.  If
(a) this Agreement shall have been terminated pursuant to Section 6, (b) the
Issuers shall fail to tender the Securities for delivery to the Initial Purchasers
for any reason permitted under this Agreement or (c) the Initial Purchasers shall
decline to purchase the Securities for any reason permitted under this
Agreement, the Company shall reimburse the Initial Purchasers for such
out-of-pocket expenses (including documented reasonable fees and disbursements
of counsel) as shall have been reasonably incurred by the Initial Purchasers in
connection with this Agreement and the proposed purchase and resale of the
Notes.

 

8.             Indemnification.  (a)  Each of the Issuers jointly and severally
agree to indemnify and hold harmless each of the Initial Purchasers, each of its
affiliates, officers, directors, employees, representatives and agents, and
each person, if any, who controls any of the Initial Purchasers within the
meaning of the Securities Act or the Exchange Act (collectively referred to for
purposes of this Section 8(a) and Section 9 as the Initial Purchasers),
from and against any loss, claim, damage or liability, joint or several, or any
action in respect thereof (including, without limitation, any loss, claim,
damage, liability or action relating to purchases and sales of the Securities),
to which the Initial Purchasers may become subject, whether commenced or
threatened, under the Securities Act, the Exchange Act, any other federal or
state statutory law or regulation, at common law or otherwise, insofar as such
loss, claim, damage, liability or action arises out of, or is based upon,
(i) any untrue statement or alleged untrue statement of a material fact
contained in the Preliminary Offering Memorandum or the Final Offering
Memorandum or in any amendment or supplement thereto or in any information
provided by the Issuers pursuant to Section 4(e) or (ii) the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, and shall
reimburse the Initial Purchasers promptly upon demand for any legal or other expenses
reasonably incurred by the Initial Purchasers in connection with investigating
or defending or preparing to defend against or appearing as a third party
witness in connection with any such loss, claim, damage, liability or action as
such expenses are incurred; provided, however, that the Issuers
shall not be liable in any such case to the extent that any such loss, claim,
damage, liability or action 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 the Initial
Purchasers’ Information; and provided, further, however,
that with respect to any such untrue statement in or omission from the
Preliminary Offering Memorandum, the indemnity agreement contained in this Section
8(a) shall not inure to the benefit of any Initial Purchaser to the extent that
the sale to the person asserting any such loss, claim, damage, liability or
action was an initial resale by any such Initial Purchaser and any such loss,
claim, damage, liability or action of or with respect to such Initial Purchaser
results from the fact that both (A) to the extent required by applicable law, a
copy of the Final Offering Memorandum was not sent or given to such person at
or prior to the written confirmation of the sale of such Securities to such
person and (B) the untrue statement in or omission from the Preliminary Offering
Memorandum was corrected in the Final Offering Memorandum and the Final
Offering Memorandum does not contain any other untrue statement or omission or
alleged untrue statement or omission of a material fact

 

22

 

unless, in either case, such
failure to deliver the Final Offering Memorandum was a result of non-compliance
by the Issuers with Section 4(b).

 

(b)           Each Initial Purchaser shall, severally and
not jointly, indemnify and hold harmless each of the Issuers, their respective
affiliates, officers, directors, employees, representatives and agents, and
each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act (collectively referred to for purposes of
this Section 8(b) and Section 9 as the Company), from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof,
to which any Issuer may become subject, whether commenced or threatened, under
the Securities Act, the Exchange Act, any other federal or state statutory law
or regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement
or alleged untrue statement of a material fact contained in the Preliminary
Offering Memorandum or the Final Offering Memorandum or in any amendment or
supplement thereto or (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with the Initial Purchasers’ Information,
and shall reimburse the Company promptly upon demand for any legal or other expenses
reasonably incurred by the Company in connection with investigating or
defending or preparing to defend against or appearing as a third party witness
in connection with any such loss, claim, damage, liability or action as such
expenses are incurred.

 

(c)           Promptly after receipt by an indemnified
party under this Section 8 of notice of any claim or the commencement of any
action, the indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party pursuant to Section 8(a) or 8(b),
notify the indemnifying party in writing of such claim or the commencement of
such action; provided, however, that the failure to notify the
indemnifying party shall not relieve it from any liability which it may have
under this Section 8 except to the extent that the indemnifying party was
otherwise unaware of such claim or the commencement of such action and it has
been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided, further, however,
that the failure to notify the indemnifying party shall not relieve it from any
liability which it may have to an indemnified party otherwise than under this
Section 8.  If any such claim or action
shall be brought against an indemnified party, and it shall notify the indemnifying
party thereof, the indemnifying party shall be entitled to participate therein
and, to the extent that it wishes, jointly with any other similarly notified
indemnifying party, to assume the defense thereof with counsel reasonably
satisfactory to the indemnified party. 
After notice from the indemnifying party to the indemnified party of its
election to assume the defense of such claim or action, the indemnifying party
shall not be liable to the indemnified party under this Section 8 for any legal
or other expenses subsequently incurred by the indemnified party in connection
with the defense thereof other than reasonable costs of investigation; provided,
however, that an indemnified party shall have the right to employ its own
counsel in any such action, but the fees, expenses and other charges of such
counsel for the indemnified party will be at the expense of such indemnified
party unless

 

23

 

(1) the employment of counsel by the
indemnified party has been authorized in writing by the indemnifying party, (2)
the indemnified party has reasonably concluded (based upon advice of counsel to
the indemnified party) that there may be legal defenses available to it or
other indemnified parties that are different from or in addition to those
available to the indemnifying party, (3) a conflict or potential conflict
exists (based upon advice of counsel to the indemnified party) between the
indemnified party and the indemnifying party (in which case the indemnifying
party will not have the right to direct the defense of such action on behalf of
the indemnified party) or (4) the indemnifying party has not in fact employed
counsel reasonably satisfactory to the indemnified party to assume the defense
of such action within a reasonable time after receiving notice of the
commencement of the action, in each of which cases the reasonable fees, disbursements
and other charges of counsel will be at the expense of the indemnifying party
or parties.  It is understood that the
indemnifying party or parties shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable
fees, disbursements and other charges of more than one separate firm of attorneys
(in addition to any local counsel) at any one time for all such indemnified
party or parties.  Each indemnified
party, as a condition of the indemnity agreements contained in Sections 8(a)
and 8(b), shall use all reasonable efforts to cooperate with the indemnifying
party in the defense of any such action or claim.  No indemnifying party shall be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with its written
consent or if there be a final judgment for the plaintiff in any such action,
the indemnifying party agrees to indemnify and hold harmless any indemnified
party from and against any loss or liability by reason of such settlement or
judgment.  Notwithstanding the
immediately preceding sentence, if at any time an indemnified party shall have
requested an indemnifying party to reimburse the indemnified party for the
fees, disbursements and other charges of counsel as contemplated by the third
sentence of this paragraph (c), the indemnifying party agrees that it shall be
liable for any settlement of any action without its written consent if (i) such
settlement is entered into more than 30 days after receipt by such indemnifying
party of the aforesaid request for reimbursement and (ii) such indemnifying
party shall not have reimbursed the indemnified party in accordance with such
request prior to the date of such settlement; provided, however,
that such indemnifying party shall not be liable for any settlement effected
without its consent pursuant to this sentence if such indemnifying party is
contesting, in good faith, the request for reimbursement.  No indemnifying party shall, without the
prior written consent of the indemnified party (which consent shall not be
unreasonably withheld), effect any settlement of any pending or threatened
proceeding 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 an unconditional release of such indemnified
party in form and substance satisfactory to such indemnified party from all
liability on claims that are the subject matter of such proceeding.

 

The obligations of the Issuers and the Initial Purchasers
in this Section 8 and in Section 9 are in addition to any other liability that
the Company or the Initial Purchasers, as the case may be, may otherwise have,
including in respect of any breaches of representations, warranties and
agreements made herein by any such party. 
In addition, the obligations of the

 

24

 

Guarantors in Sections 8, 9
and 12 shall not be effective until such time as the Guarantors’ guarantees of
the Notes are effective.

 

9.             Contribution.  If the indemnification provided for in
Section 8 is unavailable or insufficient to hold harmless an indemnified party
under Section 8(a) or 8(b), then each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable
by such indemnified party as a result of such loss, claim, damage or liability,
or action in respect thereof, (i) in such proportion as shall be appropriate
to reflect the relative benefits received by the Company on the one hand and
the Initial Purchasers on the other from the offering of the 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 Initial Purchasers on the other with
respect to the statements or omissions that resulted in such loss, claim,
damage or liability, or action in respect thereof, as well as any other
relevant equitable considerations.  The
relative benefits received by the Company on the one hand and the Initial
Purchasers on the other with respect to such offering shall be deemed to be in
the same proportion as the total net proceeds from the offering of the
Securities purchased under this Agreement (before deducting expenses) received
by or on behalf of the Company, on the one hand, and the total discounts and
commissions received by the Initial Purchasers with respect to the Securities
purchased under this Agreement, on the other, bear to the total gross proceeds
from the sale of the Securities 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 the Company or information supplied by the Company on
the one hand or to the Initial Purchasers’ Information on the other, the intent
of the parties and their relative knowledge, access to information and opportunity
to correct or prevent such untrue statement or omission.  The Company and the Initial Purchasers agree
that it would not be just and equitable if contributions pursuant to this
Section 9 were to be determined by pro rata
allocation (even if the Initial Purchasers were treated as one entity for such
purpose) or by any other method of allocation that does not take into account
the equitable considerations referred to herein.  The amount paid or payable by an indemnified
party as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this Section 9 shall be deemed to include, for
purposes of this Section 9, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending or
preparing to defend any such action or claim. 
Notwithstanding the provisions of this Section 9, any Initial Purchaser
shall not be required to contribute any amount in excess of the amount by which
the total discounts and commissions received by such Initial Purchasers with
respect to the Securities purchased by it under this Agreement exceeds the
amount of any damages which such Initial Purchaser has otherwise paid or become
liable to pay by reason of any untrue or alleged untrue statement or omission
or alleged omission.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

 

25

 

10.           Defaulting Initial Purchaser.

 

(a)           If, on the Closing Date, any Initial
Purchaser defaults on its obligation to purchase the Securities that it has
agreed to purchase hereunder, the non-defaulting Initial Purchasers may in
their discretion arrange for the purchase of such Securities by other persons
satisfactory to the Company on the terms contained in this Agreement.  If, within 36 hours after any such default by
any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for
the purchase of such Securities, then the Company shall be entitled to a
further period of 36 hours within which to procure other persons satisfactory
to the non-defaulting Initial Purchasers to purchase such Securities on such
terms.  If other persons become obligated
or agree to purchase the Securities of a defaulting Initial Purchaser, either
the non-defaulting Initial Purchasers or the Company may postpone the Closing
Date for up to five full business days in order to effect any changes that in
the opinion of counsel for the Company or counsel for the Initial Purchasers
may be necessary in the Final Offering Memorandum or in any other document or
arrangement, and the Company agrees to promptly prepare any amendment or
supplement to the Final Offering Memorandum that effects any such changes.  As used in this Agreement, the term “Initial
Purchaser” includes, for all purposes of this Agreement unless the context
otherwise requires, any person not listed in Schedule II hereto that, pursuant
to this Section 10, purchases Securities that a defaulting Initial Purchaser
agreed but failed to purchase.

 

(b)           If, after giving effect to any arrangements
for the purchase of the Securities of a defaulting Initial Purchaser or Initial
Purchasers by the non-defaulting Initial Purchasers and the Company as provided
in paragraph (a) above, the aggregate principal amount of such Securities that
remains unpurchased does not exceed one-eleventh of the aggregate principal
amount of all the Securities, then the Company shall have the right to require
each non-defaulting Initial Purchaser to purchase the principal amount of Securities
that such Initial Purchaser agreed to purchase hereunder plus such Initial
Purchaser’s pro  rata share (based on the principal amount of
Securities that such Initial Purchaser agreed to purchase hereunder) of the
Securities of such defaulting Initial Purchaser or Initial Purchasers for which
such arrangements have not been made.

 

(c)           If, after giving effect to any arrangements
for the purchase of the Securities of a defaulting Initial Purchaser or Initial
Purchasers by the non-defaulting Initial Purchasers and the Company as provided
in paragraph (a) above, the aggregate principal amount of such Securities that
remains unpurchased exceeds one-eleventh of the aggregate principal amount of
all the Securities, or if the Company shall not exercise the right described in
paragraph (b) above, then this Agreement shall terminate without liability on
the part of the non-defaulting Initial Purchasers.  Any termination of this Agreement pursuant to
this Section 10 shall be without liability on the part of the Company or the
Guarantors, except that the Company and each of the Guarantors will continue to
be liable for the payment of expenses as set forth in Section 7 hereof and
except that the provisions of Sections 8 and 9 hereof shall not terminate and
shall remain in effect.

 

(d)           Nothing contained herein shall relieve a
defaulting Initial Purchaser of any liability it may have to the Company, the
Guarantors or any non-defaulting Initial Purchaser for damages caused by its
default.

 

26

 

11.           Persons Entitled to Benefit of Agreement.  This
Agreement shall inure to the benefit of and be binding upon the Initial
Purchasers and each Issuer and their respective successors.  This Agreement and the terms and provisions
hereof are for the sole benefit of only those persons, except as provided in
Sections 8 and 9 with respect to affiliates, officers, directors, employees,
representatives, agents and controlling persons of the Company and the Initial
Purchasers and in Section 4(e) with respect to holders and prospective purchasers
of the Securities.  Nothing in this
Agreement is intended or shall be construed to give any person, other than the
persons referred to in this Section 11, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision contained herein.

 

12.           Expenses.  Whether or not the
transactions contemplated by this Agreement are consummated or this Agreement
is terminated, the Issuers agree with the Initial Purchasers to pay
(a) the costs incident to the authorization, issuance, sale, preparation
and delivery of the Securities and any taxes payable in that connection;
(b) the costs incident to the preparation, printing and distribution of
the Preliminary Offering Memorandum, the Final Offering Memorandum and any
amendments or supplements thereto; (c) the costs of reproducing and
distributing each of the Transaction Documents; (d) the costs incident to the
preparation, printing and delivery of the certificates evidencing the
Securities, including stamp duties and transfer taxes, if any, payable upon issuance
of the Securities; (e) the fees and expenses of the Issuers’ counsel and
independent accountants; (f) the reasonable fees and expenses of qualifying the
Securities under the securities laws of the several jurisdictions as provided in
Section 4(g) and of preparing, printing and distributing Blue Sky
Memoranda (including reasonable and documented related fees and expenses of
counsel for the Initial Purchasers); (g) any fees charged by rating
agencies for rating the Securities; (h) the fees and expenses of the
Trustee and any paying agent (including related fees and expenses of any
counsel to such parties); (i) all expenses and application fees incurred in connection
with the application for the inclusion of the Securities on the PORTAL Market
and the approval of the Securities for book-entry transfer by DTC; and
(j) all other costs and expenses incident to the performance of the obligations
of the Issuers under this Agreement which are not otherwise specifically
provided for in this Section 12; provided, however, that except
as provided in this Section 12 and Section 7, the Initial Purchasers shall pay
its own costs and expenses.

 

13.           Survival.  The respective indemnities,
rights of contribution, representations, warranties and agreements of the
Issuers and the Initial Purchasers contained in this Agreement or made by or on
behalf of the Issuers or the Initial Purchasers pursuant to this Agreement or
any certificate delivered pursuant hereto shall survive the delivery of and payment
for the Securities and shall remain in full force and effect, regardless of any
termination or cancellation of this Agreement or any investigation made by or
on behalf of any of them or any of their respective affiliates, officers,
directors, employees, representatives, agents or controlling persons.

 

14.           Notices, etc.  All
statements, requests, notices and agreements hereunder shall be in writing,
and:

 

27

 

(a)           if to the Initial Purchasers, shall be delivered or sent by mail or
telecopy transmission to the Representative, c/o J.P. Morgan Securities Inc.,
270 Park Avenue, New York, New York 10017, Attention: Lauren Camp (telecopier
no.: (212) 270-1063); or

 

(b)           if to the Company, shall be delivered or sent by mail or telecopy
transmission to the address of the Company set forth in the Final Offering
Memorandum, Attention:  Harvey Kamil (telecopier
no.:  (631) 567-7148).

 

15.           Definition of Terms.  For
purposes of this Agreement, (a) the term “business day” means any day on which
the New York Stock Exchange, Inc. is open for trading and (b) except where
otherwise expressly provided, the term “affiliate” has the meaning set forth in
Rule 405 under the Securities Act.

 

16.           Initial Purchasers’ Information.  The
parties hereto acknowledge and agree that for all purposes of this Agreement
(including, but not limited to, Section 1(a), Section 8 and Section 9) the Initial
Purchasers’ Information consists solely of the following information in the
Preliminary Offering Memorandum and the Final Offering Memorandum:  the statements concerning the Initial
Purchasers contained in the third paragraph, the fifth sentence of the tenth paragraph,
the twelfth paragraph and thirteenth paragraph of the section entitled “Plan of
Distribution”.

 

17.           Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York without regard to principals of conflicts of laws thereof.

 

18.           Counterparts.  This
Agreement may be executed in one or more counterparts (which may include counterparts
delivered by telecopier) and, if executed in more than one counterpart, the
executed counterparts shall each be deemed to be an original, but all such
counterparts shall together constitute one and the same instrument.

 

19.           Amendments.  No amendment or waiver of any
provision of this Agreement, nor any consent or approval to any departure
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the parties hereto.

 

20.           Headings.  The headings herein are
inserted for convenience of reference only and are not intended to be part of,
or to affect the meaning or interpretation of, this Agreement.

 

21.           Entire Agreement.  This
Agreement constitutes the entire agreement among the parties relating to the subject
matter hereof and supersedes any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof.

 

[Signature
Pages Follow]

 

28

 

If the foregoing is in accordance with your
understanding of our agreement, kindly sign and return to us a counterpart
hereof, whereupon this instrument will become a binding agreement between each
of the Issuers and the Initial Purchasers in accordance with its terms.

 

	
   

  	
  NBTY, INC.

  
	
   

  	
  By:

  	
  /s/ Michael C. Slade

  	
   

  
	
   

  	
   

  	
  Name: Michael C. Slade

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

S-1

 

	
   

  	
  ARCO PHARMACEUTICALS, INC.

  
	
   

  	
  BIOSMART DIRECT SALES, LLC

  
	
   

  	
  DE TUINEN LTD.

  
	
   

  	
  DIABETES AMERICAN RESEARCH CORP.

  
	
   

  	
  DYNAMIC ESSENTIALS (DE), INC.

  
	
   

  	
  EUROLEAN RESEARCH, LLC

  
	
   

  	
  FOOD SYSTEMS, INC.

  
	
   

  	
  HEALTHWATCHERS (DE), INC.

  
	
   

  	
  MET-RX NUTRITION, INC.

  
	
   

  	
  MET-RX SUBSTRATE TECHNOLOGY, INC.

  
	
   

  	
  MET-RX USA, INC.

  
	
   

  	
  NABARCO ADVERTISING ASSOCIATES, INC.

  
	
   

  	
  NATURAL WEALTH NUTRITION

  
	
   

  	
  CORPORATION

  
	
   

  	
  NATURESMART, LLC

  
	
   

  	
  NBTY AVIATION, LLC

  
	
   

  	
  NBTY CAM COMPANY

  
	
   

  	
  NBTY CANADA ACQUISITION, INC.

  
	
   

  	
  NBTY CHINA HOLDINGS, INC.

  
	
   

  	
  NBTY CHINA, INC.

  
	
   

  	
  NBTY DISTRIBUTION, INC.

  
	
   

  	
  NBTY FLIGHT SERVICES, LLC

  
	
   

  	
  NBTY PAH, LLC

  
	
   

  	
  NBTY TRANSPORTATION, INC.

  
	
   

  	
  NBTY UKRAINE 1, LLC

  
	
   

  	
  NBTY UKRAINE 2, LLC

  
	
   

  	
  NBTY UKRAINE, INC.

  
	
   

  	
  NUTRITION HEADQUARTERS (DE), INC.

  
	
   

  	
  OMNI VITAMIN AND NUTRITION CORP.

  
	
   

  	
  PHYSIOLOGICS, LLC

  
	
   

  	
  PRECISION ENGINEERED LIMITED (USA)

  
	
   

  	
  PURITAN’S PRIDE, INC.

  
	
   

  	
  REXALL, INC.

  
	
   

  	
  REXALL SUNDOWN, INC.

  
	
   

  	
  REXALL US DELAWARE, INC.

  
	
   

  	
  RICHARDSON LABS, INC.

  
	
   

  	
  RXSD INC.

  
	
   

  	
  SUNDOWN, INC.

  
	
   

  	
  THE NON-IRRADIATED HERBAL

  
	
   

  	
  MANUFACTURERS GROUP, LLC

  
	
   

  	
  UNITED VITAMIN MANUFACTURING CORP.

  
	
   

  	
  WORLDWIDE SPORT NUTRITIONAL

  
	
   

  	
  SUPPLEMENTS, INC.

  

 

S-1

 

	
   

  	
  By:

  	
  /s/ Harvey Kamil

  	
   

  
	
   

  	
   

  	
  Name: Harvey Kamil

  
	
   

  	
   

  	
  Title: President

  

 

S-2

 

	
   

  	
  AMERICAN HEALTH, INC.

  
	
   

  	
  ARTHRITIS RESEARCH CORP.

  
	
   

  	
  GOOD ‘N NATURAL MANUFACTURING

  CORP.

  
	
   

  	
  HOLLAND & BARRETT LTD.

  
	
   

  	
  LIFE’S FINEST, INC.

  
	
   

  	
  NATURAL WEALTH NUTRITION

  
	
   

  	
  CORPORATION

  
	
   

  	
  NATURE’S BOUNTY INC.

  
	
   

  	
  NATURE’S BOUNTY MANUFACTURING

  CORP.

  
	
   

  	
  NATURE’S BOUNTY, INC.

  
	
   

  	
  PRECISION ENGINEERED LIMITED (USA)

  
	
   

  	
  UNITED STATES NUTRITION, INC.

  
	
   

  	
  UNITED VITAMIN MANUFACTURING CORP.

  
	
   

  	
  VITAMIN WORLD (BOCA), LLC

  
	
   

  	
  VITAMIN WORLD (VI), INC.

  
	
   

  	
  VITAMIN WORLD OF GUAM LLC

  
	
   

  	
  VITAMIN WORLD ONLINE, INC.

  
	
   

  	
  VITAMIN WORLD OUTLET STORES, INC.

  
	
   

  	
  VITAMIN WORLD, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael C. Slade

  	
   

  
	
   

  	
   

  	
  Name: Michael C. Slade

  
	
   

  	
   

  	
  Title: Senior Vice
  President 

  

 

S-3

 

	
   

  	
  NBTY CAH COMPANY

  
	
   

  	
  NBTY MANUFACTURING, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dan Parkhideh

  	
   

  
	
   

  	
   

  	
  Name:
  Dan Parkhideh

  
	
   

  	
   

  	
  Title:
  Secretary

  

 

S-4

 

	
  Accepted:

  	
   

  
	
   

  	
   

  
	
  J.P.
  MORGAN SECURITIES INC.

  	
   

  
	
   

  	
   

  
	
  For
  itself and on behalf of the

  	
   

  
	
  several
  Initial Purchasers listed

  	
   

  
	
  in
  Schedule II hereto.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Lauren Camp

  	
   

  	
   

  
	
   

  	
    Authorized Signatory

  	
   

  
				

 

 

SCHEDULE I

 

Subsidiaries/Guarantors

 

DOMESTIC SUBSIDIARIES; FOREIGN SUBSIDIARIES

 

	
   

  	
  DOMESTIC
  SUBSIDIARIES

  
	
  *

  	
  AMERICAN
  HEALTH, INC.

  
	
  *

  	
  ARCO
  PHARMACEUTICALS, INC.

  
	
  *

  	
  ARTHRITIS
  RESEARCH CORP.

  
	
  *

  	
  BIOSMART
  DIRECT SALES, LLC

  
	
  *

  	
  DE
  TUINEN LTD.

  
	
  *

  	
  DIABETES
  AMERICAN RESEARCH CORP.

  
	
  *

  	
  DYNAMIC
  ESSENTIALS (DE), INC.

  
	
  *

  	
  EUROLEAN
  RESEARCH, LLC

  
	
  *

  	
  FOOD
  SYSTEMS, INC.

  
	
  *

  	
  GOOD
  ‘N NATURAL MANUFACTURING CORP.

  
	
  *

  	
  HEALTHWATCHERS
  (DE), INC.

  
	
  *

  	
  HOLLAND
  & BARRETT LTD.

  
	
  *

  	
  LIFE’S
  FINEST, INC.

  
	
  *

  	
  MET-RX NUTRITION, INC.

  
	
  *

  	
  MET-RX SUBSTRATE
  TECHNOLOGY, INC.

  
	
  *

  	
  MET-RX USA, INC.

  
	
  *

  	
  NABARCO
  ADVERTISING ASSOCIATES, INC.

  
	
  *

  	
  NATURAL
  WEALTH NUTRITION CORPORATION

  
	
  *

  	
  NATURE’S
  BOUNTY INC.

  
	
  *

  	
  NATURE’S
  BOUNTY MANUFACTURING CORP.

  
	
  *

  	
  NATURE’S
  BOUNTY, INC.

  
	
  *

  	
  NATURESMART,
  LLC

  
	
  *

  	
  NBTY
  AVIATION, LLC

  
	
  *

  	
  NBTY
  CAH COMPANY

  
	
  *

  	
  NBTY
  CAM COMPANY

  
	
  *

  	
  NBTY
  CANADA ACQUISITION, INC.

  
	
  *

  	
  NBTY
  CHINA HOLDINGS, INC.

  
	
  *

  	
  NBTY
  CHINA, INC.

  
	
  *

  	
  NBTY
  DISTRIBUTION, INC.

  
	
  *

  	
  NBTY
  FLIGHT SERVICES, LLC

  
	
  *

  	
  NBTY
  MANUFACTURING, LLC

  
	
  *

  	
  NBTY
  PAH, LLC

  
	
  *

  	
  NBTY
  TRANSPORTATION, INC.

  
	
  *

  	
  NBTY
  UKRAINE 1, LLC

  
	
  *

  	
  NBTY
  UKRAINE 2, LLC

  
	
  *

  	
  NBTY
  UKRAINE, INC.

  
	
  *

  	
  NUTRITION
  HEADQUARTERS (DE), INC.

  
	
  *

  	
  OMNI
  VITAMIN AND NUTRITION CORP.

  
	
  *

  	
  PHYSIOLOGICS,
  LLC

  
	
  *

  	
  PRECISION
  ENGINEERED LIMITED (USA)

  

 

 

	
  *

  	
  PURITAN’S
  PRIDE, INC.

  
	
  *

  	
  REXALL,
  INC.

  
	
  *

  	
  REXALL SUNDOWN, INC.

  
	
  *

  	
  REXALL US DELAWARE, INC.

  
	
  *

  	
  RICHARDSON LABS, INC.

  
	
  *

  	
  RXSD INC.

  
	
   

  	
  SOLGAR HOLDINGS, INC.(1)

  
	
   

  	
  SOLGAR MEXICO HOLDINGS,
  LLC(1)

  
	
   

  	
  SOLGAR, INC.(1)

  
	
  *

  	
  SUNDOWN, INC.

  
	
  *

  	
  THE
  NON-IRRADIATED HERBAL MANUFACTURERS GROUP, LLC

  
	
  *

  	
  UNITED
  STATES NUTRITION, INC.

  
	
  *

  	
  UNITED
  VITAMIN MANUFACTURING CORP.

  
	
  *

  	
  VITAMIN
  WORLD (BOCA), LLC

  
	
  *

  	
  VITAMIN WORLD (VI),
  INC.

  
	
  *

  	
  VITAMIN
  WORLD OF GUAM LLC

  
	
  *

  	
  VITAMIN
  WORLD ONLINE, INC.

  
	
  *

  	
  VITAMIN
  WORLD OUTLET STORES, INC.

  
	
  *

  	
  VITAMIN
  WORLD, INC.

  
	
  *

  	
  WORLDWIDE SPORT
  NUTRITIONAL SUPPLEMENTS, INC.

  
	
   

  	
   

  
	
  *

  	
    Denotes entity
  is a Guarantor of the Notes.

  

 

(1)  Solgar Holdings, Inc., Solgar, Inc. and
Solgar Mexico Holdings, LLC will become Guarantors as promptly as practicable
after such time that the Company would not be required to file separate
finan-cial statements for Solgar Holdings, Inc. with the SEC pursuant to Rule
3-10, paragraph G of Regula-tion S-X.Exhibit 4.2

 

 

INDENTURE

 

Dated as of September 23, 2005

 

Among

 

NBTY, INC., as Issuer,

 

The Guarantors from Time to Time Party Hereto

 

and

 

The Bank of New York, as Trustee

 

 

7 1/8% Senior Subordinated Notes due 2015

 

 

 

CROSS-REFERENCE TABLE

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture

  Section

  
	
  §
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.08,
  7.10.

  
	
  (b)

  	
   

  	
  7.08;
  7.10; 13.02

  
	
  (c)

  	
   

  	
  N.A.

  
	
  §
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  §
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  13.03

  
	
  (c)

  	
   

  	
  13.03

  
	
  §313(a)

  	
   

  	
  7.06

  
	
  (b)(1)

  	
   

  	
  7.06

  
	
  (b)(2)

  	
   

  	
  7.06

  
	
  (c)

  	
   

  	
  7.06;
  13.02

  
	
  (d)

  	
   

  	
  7.06

  
	
  §
  314(a)

  	
   

  	
  4.11;
  4.12; 13.02

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  13.04

  
	
  (c)(2)

  	
   

  	
  13.04

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  13.05

  
	
  (f)

  	
   

  	
  N.A.

  
	
  §
  315(a)

  	
   

  	
  7.01(b)

  
	
  (b)

  	
   

  	
  7.05;
  13.02

  
	
  (c)

  	
   

  	
  7.01(a)

  
	
  (d)

  	
   

  	
  7.01(c)

  
	
  (e)

  	
   

  	
  6.11

  
	
  §
  316(a)(last sentence)

  	
   

  	
  2.09

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.07

  
	
  (c)

  	
   

  	
  10.04

  
	
  §
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (b)

  	
   

  	
  2.04

  
	
  §
  318(a)

  	
   

  	
  13.01

  

 

N.A.
means Not Applicable.

NOTE:  This Cross-Reference Table shall not, for any
purpose, be deemed to be a part of this Indenture.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  ONE

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
   

  
	
  SECTION
  1.02.

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
   

  
	
  SECTION
  1.03.

  	
  Rules of
  Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  TWO

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Form and Dating

  	
   

  
	
  SECTION
  2.02.

  	
  Execution
  and Authentication

  	
   

  
	
  SECTION
  2.03.

  	
  Registrar
  and Paying Agent

  	
   

  
	
  SECTION
  2.04.

  	
  Paying
  Agent To Hold Assets in Trust

  	
   

  
	
  SECTION 2.05.

  	
  Holder Lists

  	
   

  
	
  SECTION
  2.06.

  	
  Transfer and
  Exchange

  	
   

  
	
  SECTION 2.07.

  	
  Replacement
  Notes

  	
   

  
	
  SECTION 2.08.

  	
  Outstanding
  Notes

  	
   

  
	
  SECTION 2.09.

  	
  Treasury Notes

  	
   

  
	
  SECTION 2.10.

  	
  Temporary Notes

  	
   

  
	
  SECTION 2.11.

  	
  Cancellation

  	
   

  
	
  SECTION 2.12.

  	
  Defaulted
  Interest

  	
   

  
	
  SECTION
  2.13.

  	
  CUSIP and
  ISIN Numbers

  	
   

  
	
  SECTION 2.14.

  	
  Deposit of
  Moneys

  	
   

  
	
  SECTION
  2.15.

  	
  Book-Entry
  Provisions for Global Notes

  	
   

  
	
  SECTION
  2.16.

  	
  Special Transfer
  and Exchange Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  THREE

  	
   

  
	
   

  	
   

  	
   

  
	
  REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Notices to
  Trustee

  	
   

  
	
  SECTION
  3.02.

  	
  Selection
  of Notes To Be Redeemed

  	
   

  
	
  SECTION 3.03.

  	
  Notice of
  Redemption

  	
   

  
	
  SECTION
  3.04.

  	
  Effect of
  Notice of Redemption

  	
   

  
	
  SECTION
  3.05.

  	
  Deposit of
  Redemption Price

  	
   

  
	
  SECTION
  3.06.

  	
  Notes
  Redeemed in Part

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  FOUR

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes

  	
   

  
	
  SECTION
  4.02.

  	
  Maintenance
  of Office or Agency

  	
   

  

 

i

 

	
  SECTION
  4.03.

  	
  Transactions
  with Affiliates

  	
   

  
	
  SECTION
  4.04.

  	
  Limitation
  on Indebtedness

  	
   

  
	
  SECTION
  4.05.

  	
  Disposition
  of Proceeds of Asset Sales

  	
   

  
	
  SECTION
  4.06.

  	
  Limitation
  on Restricted Payments

  	
   

  
	
  SECTION 4.07.

  	
  Corporate
  Existence

  	
   

  
	
  SECTION
  4.08.

  	
  [Intentionally
  Omitted]

  	
   

  
	
  SECTION 4.09.

  	
  Notice of
  Defaults

  	
   

  
	
  SECTION 4.10.

  	
  Limitation on
  Liens

  	
   

  
	
  SECTION
  4.11.

  	
  Compliance
  Certificate

  	
   

  
	
  SECTION
  4.12.

  	
  Provision
  of Financial Information

  	
   

  
	
  SECTION
  4.13.

  	
  Limitations
  on Dividend and Other Payment Restrictions Affecting Subsidiaries

  	
   

  
	
  SECTION
  4.14.

  	
  Offer to Purchase
  upon Change of Control

  	
   

  
	
  SECTION
  4.15.

  	
  Limitation
  on Other Senior Subordinated Indebtedness

  	
   

  
	
  SECTION
  4.16.

  	
  Guarantees
  by Restricted Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  FIVE

  	
   

  
	
   

  	
   

  	
   

  
	
  MERGERS;
  SUCCESSOR CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  5.01.

  	
  Merger,
  Sale of Assets, etc.

  	
   

  
	
  SECTION
  5.02.

  	
  Successor
  Corporation Substituted

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFAULT AND
  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of Default

  	
   

  
	
  SECTION 6.02.

  	
  Acceleration

  	
   

  
	
  SECTION 6.03.

  	
  Other Remedies

  	
   

  
	
  SECTION
  6.04.

  	
  Waiver of
  Past Default

  	
   

  
	
  SECTION 6.05.

  	
  Control by
  Majority

  	
   

  
	
  SECTION 6.06.

  	
  Limitation on
  Suits

  	
   

  
	
  SECTION
  6.07.

  	
  Rights of
  Holders To Receive Payment

  	
   

  
	
  SECTION
  6.08.

  	
  Collection
  Suit by Trustee

  	
   

  
	
  SECTION
  6.09.

  	
  Trustee May
  File Proofs of Claim

  	
   

  
	
  SECTION 6.10.

  	
  Priorities

  	
   

  
	
  SECTION
  6.11.

  	
  Undertaking
  for Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  SEVEN

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Duties of
  Trustee

  	
   

  
	
  SECTION 7.02.

  	
  Rights of
  Trustee

  	
   

  
	
  SECTION
  7.03.

  	
  Individual
  Rights of Trustee

  	
   

  
	
  SECTION 7.04.

  	
  Trustee’s
  Disclaimer

  	
   

  
	
  SECTION 7.05.

  	
  Notice of
  Defaults

  	
   

  
	
  SECTION
  7.06.

  	
  Reports by
  Trustee to Holders

  	
   

  
	
  SECTION
  7.07.

  	
  Compensation
  and Indemnity

  	
   

  

 

ii

 

	
  SECTION
  7.08.

  	
  Replacement
  of Trustee

  	
   

  
	
  SECTION
  7.09.

  	
  Successor
  Trustee by Merger, etc.

  	
   

  
	
  SECTION
  7.10.

  	
  Eligibility;
  Disqualification

  	
   

  
	
  SECTION
  7.11.

  	
  Preferential
  Collection of Claims Against Company

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  EIGHT

  	
   

  
	
   

  	
   

  	
   

  
	
  SUBORDINATION
  OF NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.01.

  	
  Notes Subordinated
  to Senior Indebtedness

  	
   

  
	
  SECTION 8.02.

  	
  Payment Over of Proceeds upon
  Dissolution, etc.

  	
   

  
	
  SECTION
  8.03.

  	
  No Payment
  on Notes in Certain Circumstances

  	
   

  
	
  SECTION 8.04.

  	
  Subrogation

  	
   

  
	
  SECTION
  8.05.

  	
  Obligations
  of Company Unconditional

  	
   

  
	
  SECTION 8.06.

  	
  Notice to
  Trustee

  	
   

  
	
  SECTION
  8.07.

  	
  Reliance on
  Judicial Order or Certificate of Liquidating Agent

  	
   

  
	
  SECTION
  8.08.

  	
  Trustee’s Relation
  to Senior Indebtedness

  	
   

  
	
  SECTION
  8.09.

  	
  Subordination
  Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior
  Indebtedness

  	
   

  
	
  SECTION
  8.10.

  	
  Holders
  Authorize Trustee To Effectuate Subordination of Notes

  	
   

  
	
  SECTION
  8.11.

  	
  This
  Article Not To Prevent Events of Default

  	
   

  
	
  SECTION
  8.12.

  	
  Trustee’s
  Compensation Not Prejudiced

  	
   

  
	
  SECTION
  8.13.

  	
  No Waiver
  of Subordination Provisions

  	
   

  
	
  SECTION
  8.14.

  	
  Subordination
  Provisions Not Applicable to Money Held in Trust for Holders; Payments May Be
  Paid Prior to Dissolution

  	
   

  
	
  SECTION
  8.15.

  	
  Acceleration
  of Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  NINE

  	
   

  
	
   

  	
   

  	
   

  
	
  LEGAL DEFEASANCE
  AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.01.

  	
  Option To
  Effect Legal Defeasance and Covenant Defeasance

  	
   

  
	
  SECTION
  9.02.

  	
  Conditions
  to Legal Defeasance or Covenant Defeasance

  	
   

  
	
  SECTION
  9.03.

  	
  Application
  of Trust Money; Trustee Acknowledgment and Indemnity

  	
   

  
	
  SECTION 9.04.

  	
  Repayment to
  Company

  	
   

  
	
  SECTION 9.05.

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
   

  
	
   

  	
   

  	
   

  
	
  AMENDMENTS,
  SUPPLEMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.01.

  	
  Without Consent
  of Holders

  	
   

  
	
  SECTION
  10.02.

  	
  With
  Consent of Holders

  	
   

  
	
  SECTION
  10.03.

  	
  Compliance
  with Trust Indenture Act

  	
   

  
	
  SECTION
  10.04.

  	
  Record Date
  for Consents and Effect of Consents

  	
   

  
	
  SECTION
  10.05.

  	
  Notation on
  or Exchange of Notes

  	
   

  
	
  SECTION
  10.06.

  	
  Trustee To
  Sign Amendments, etc.

  	
   

  
	
  SECTION
  10.07.

  	
  Certain
  Amendments

  	
   

  

 

iii

 

	
  ARTICLE
  ELEVEN

  	
   

  
	
   

  	
   

  	
   

  
	
  SATISFACTION
  AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.01.

  	
  Satisfaction
  and Discharge

  	
   

  
	
  SECTION
  11.02.

  	
  Application
  of Trust Money

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTEE OF
  NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01.

  	
  Note Guarantee

  	
   

  
	
  SECTION
  12.02.

  	
  Execution and
  Delivery of Note Guarantees

  	
   

  
	
  SECTION
  12.03.

  	
  Limitation
  of Note Guarantee

  	
   

  
	
  SECTION
  12.04.

  	
  Additional
  Guarantors

  	
   

  
	
  SECTION
  12.05.

  	
  Subordination
  of Note Guarantee

  	
   

  
	
  SECTION
  12.06.

  	
  Waiver of
  Subrogation

  	
   

  
	
  SECTION 12.07.

  	
  Contribution

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  THIRTEEN

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  13.01.

  	
  Trust
  Indenture Act Controls

  	
   

  
	
  SECTION 13.02.

  	
  Notices

  	
   

  
	
  SECTION
  13.03.

  	
  Communications
  by Holders with Other Holders

  	
   

  
	
  SECTION
  13.04.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
   

  
	
  SECTION
  13.05.

  	
  Statements
  Required in Certificate

  	
   

  
	
  SECTION
  13.06.

  	
  Rules by
  Trustee, Paying Agent, Registrar

  	
   

  
	
  SECTION 13.07.

  	
  Governing Law

  	
   

  
	
  SECTION
  13.08.

  	
  No Recourse
  Against Others

  	
   

  
	
  SECTION 13.09.

  	
  Successors

  	
   

  
	
  SECTION
  13.10.

  	
  Counterpart
  Originals.

  	
   

  
	
  SECTION 13.11.

  	
  Severability

  	
   

  
	
  SECTION
  13.12.

  	
  No Adverse
  Interpretation of Other Agreements

  	
   

  
	
  SECTION 13.13.

  	
  Legal Holidays

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of Legends

  	
   

  
	
  EXHIBIT B

  	
  Form of Note

  	
   

  
	
  EXHIBIT C

  	
  Form
  of Certificate To Be Delivered in Connection with Transfers to Non-QIB
  Institutional Accredited Investors

  	
   

  
	
  EXHIBIT D

  	
  Form of Certificate To be Delivered
  in Connection with Transfers Pursuant to Regulation S

  	
   

  
	
  EXHIBIT E

  	
  Form of Note Guarantee

  	
   

  
				

 

NOTE:  This Table of Contents shall not, for any
purpose, be deemed to be a part of this Indenture.

 

iv

 

INDENTURE dated as of September 23, 2005, among
NBTY, INC., a Delaware corporation (the “Company”), the Guarantors (as defined herein) from time to time
party hereto and The Bank of New York, a New York Banking Corporation, as trustee
(the “Trustee”).

 

The Company has duly authorized the creation of an
issue of 7 1/8% Senior Subordinated Notes due 2015 and, to provide
therefor, the Company has duly authorized the execution and delivery of this
Indenture.  All things necessary to make
the Notes (as defined herein), when duly issued and executed by the Company and
authenticated and delivered hereunder, the valid and binding obligations of the
Company and to make this Indenture a valid and binding agreement of the Company
have been done.

 

Each Guarantor has duly authorized the issuance of a
Note Guarantee (as defined herein) and, to provide therefor, each Guarantor has
duly authorized the execution and delivery of this Indenture.  All things necessary to make the Note Guarantees,
when duly issued and executed by the Guarantors and authenticated and delivered
hereunder, the valid and binding obligations of each such Guarantor and to make
this Indenture a valid and binding agreement of such Guarantor have been done.

 

THIS
INDENTURE WITNESSETH

 

For and in consideration of the premises and the
purchase of the Notes by the Holders thereof, the parties hereto covenant and
agree, for the equal and proportionate benefit of all Holders, as follows:

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION
1.01.                                    Definitions.

 

“Acceleration Notice”
has the meaning set forth in Section 6.02.

 

“Acquired Indebtedness”
means Indebtedness of a Person (a) assumed in connection with an Acquisition
from such Person or (b) existing at the time such Person becomes a Restricted
Subsidiary of the Company or is merged or consolidated with or into the Company
or any Restricted Subsidiary of the Company.

 

“Acquired Person” means, with respect to any specified Person, any other
Person which merges with or into or becomes a Restricted Subsidiary of such
specified Person.

 

“Acquisition” means (i) any capital contribution (by means of transfers
of cash or other property to others or payments for property or services for
the account or use of others, or otherwise) by the Company or any Restricted
Subsidiary of the Company to any other Person, or any acquisition or purchase
of Equity Interests of any other Person by the Company or any Restricted
Subsidiary of the Company, in either case pursuant to which such Person shall
become a Subsidiary of the Company or shall be consolidated with or merged into
the Company or any Subsidiary of the Company or (ii) any acquisition by the
Company or any Restricted Subsidiary of the Company of the assets of any Person
which constitute substantially all of an operating unit or line of business of
such Person or which is otherwise outside of the ordinary course of business.

 

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

 

 

“Additional
Notes” has the meaning set forth in Section 2.02.

 

“Adjusted Net Assets”
of a Guarantor at any date shall mean the lesser of (x) the amount by which the
fair value of the property of such Guarantor exceeds the total amount of
liabilities, including, without limitation, contingent liabilities (after
giving effect to all other fixed and contingent liabilities), but excluding
liabilities under the Note Guarantee of such Guarantor at such date and (y) the
amount by which the present fair salable value of the assets of such Guarantor
at such date exceeds the amount that will be required to pay the probable
liability of such Guarantor on its debts (after giving effect to all other
fixed and contingent liabilities and after giving effect to any collection from
any Subsidiary of such Guarantor in respect of the obligations of such
Subsidiary under the Note Guarantee), excluding Indebtedness in respect of the
Note Guarantee, as they become absolute and matured.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person.  For purposes of
this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by agreement or otherwise.

 

“Affiliate Transaction”
has the meaning set forth in Section 4.03(a).

 

“Agent”
means any Registrar, Paying Agent or co-registrar.

 

“Asset Sale”
means any direct or indirect sale, conveyance, transfer, lease (that has the
effect of a disposition) or other disposition (including, without limitation,
any merger, consolidation or sale-leaseback transaction) to any Person other
than the Company or any Restricted Subsidiary, in one transaction or a series
of related transactions, of

 

(i)            any Equity Interest of any Restricted Subsidiary of the
Company (other than directors’ qualifying shares, to the extent mandated by
applicable law);

 

(ii)           any assets of the Company or any Restricted Subsidiary of
the Company which constitute substantially all of an operating unit or line of
business of the Company or any Restricted Subsidiary of the Company; or

 

(iii)          any other property or asset of the Company or any
Restricted Subsidiary of the Company outside of the ordinary course of
business.

 

For the purposes of this definition, the term “Asset
Sale” shall not include:

 

(a)           any transaction consummated in compliance with Section
5.01 and the creation of any Lien not prohibited by Section 4.10;

 

(b)           sales of property, inventory or equipment that has become
worn out, obsolete or damaged or otherwise unsuitable for use in connection
with the business of the Company or any Restricted Subsidiary of the Company,
as the case may be;

 

(c)           any transaction consummated in compliance with Section
4.06;

 

(d)           any transfer or other disposition of accounts receivable
and related assets (including contract rights) of the type specified in the
definition of “Qualified Receivables Transaction”

 

2

 

or a fractional undivided
interest therein, by a Receivables Subsidiary in a Qualified Receivables Transaction;

 

 

(e)           sales, conveyances or other dispositions of accounts
receivable and related assets (including contract rights) of the type specified
in the definition of “Qualified Receivables Transaction,” to a Receivables
Subsidiary pursuant to a Qualified Receivables Transaction for the fair market
value thereof; and

 

(f)            the surrender or waiver of contractual rights or the
settlement, release or surrender of contract, tort or other claims of any kind.

 

In addition, solely for purposes of Section 4.05,
any sale, conveyance, transfer, lease or other disposition of any property or
asset, whether in one transaction or a series of related transactions, involving
assets with a Fair Market Value not in excess of $5.0 million shall be deemed
not to be an Asset Sale.

 

“Attributable Indebtedness” in respect of a Sale and Lease-Back Transaction means, as
at the time of determination, the present value (discounted according to GAAP
at the cost of indebtedness implied in the lease) of the total obligations of
the lessee for rental payments during the remaining term of the lease included
in such Sale and Lease-Back Transaction (including any period for which such
lease has been extended).

 

“Authentication Order”
has the meaning set forth in Section 2.02.

 

“Bankruptcy Law”
has the meaning set forth in Section 6.01.

 

“Board of Directors”
means the Board of Directors (or similar governing body) of the Company or of a
Guarantor, as appropriate, or any authorized committee of such Board of
Directors.

 

“Board Resolution” means, with respect to any Person, a duly adopted
resolution of the Board of Directors of such Person or any duly authorized
committee thereof.

 

“Business Day”
means each day other than a Saturday, Sunday or legal holiday on which commercial
banks in New York, New York are authorized to close.

 

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

 

“Cash Equivalents”
means:

 

(a)           U.S. dollars;

 

(b)           securities issued or directly and fully guaranteed or
insured by the U.S. government or any agency or instrumentality thereof having
maturities of not more than one year from the date of acquisition;

 

(c)           certificates of deposit and eurodollar time deposits with
maturities of one year or less from the date of acquisition, bankers’ acceptances
with maturities not exceeding one year and overnight bank deposits, in each
case with any domestic commercial bank having capital and surplus in excess of
$500 million;

 

3

 

(d)           repurchase obligations with a term of not more than 30
days for underlying securities of the types described in clauses (b) and (c)
above entered into with any financial institution meeting the qualifications
specified in clause (c) above;

 

(e)           commercial paper rated at least P-2, A-2 or the equivalent
thereof by Moody’s Investors Service, Inc. or Standard & Poor’s Ratings
Services, respectively, and in each case maturing within one year after the
date of acquisition;

 

(f)            in the case of any Subsidiary of the Company whose jurisdiction
of incorporation is not the United States or any state thereof or the District
of Columbia, Investments: (i) in direct obligations of the sovereign nation (or
any agency thereof) in which such foreign Subsidiary is organized and is
conducting business or in obligations fully and unconditionally guaranteed by
such sovereign nation (or any agency thereof) or (ii) of the type and maturity
described in clauses (a) and (b) above of foreign obligors, which Investment or
obligors (or the parents of such obligors) have ratings described in such
clauses or equivalent ratings from comparable foreign rating agencies;

 

(g)           marketable general obligations issued by any state of the
United States of America or any political subdivision of such state or any
public instrumentality thereof maturing within one year or less from the date
of acquisition and, at the time of acquisition, having a credit rating of “A”
or better from either Moody’s or S&P; and

 

(h)           interests in any investment company or money market fund
which invests primarily in instruments of the type specified in clauses (a)
through (g) above.

 

“Change of Control” means the occurrence of any of the following events
(whether or not approved by the Board of Directors of the Company):

 

(i)            any Person (as such term is used in Sections 13(d) and
14(d) of the Exchange Act, including any group acting for the purpose of
acquiring, holding or disposing of securities within the meaning of Rule
13d-5(b)(1) under the Exchange Act), other than one or more Permitted Holders,
is or becomes the “beneficial owner” (as defined in Rule 13d-3 and 13d-5 under
the Exchange Act, except that a 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, upon
the happening of an event or otherwise), directly or indirectly, of more than
35% of the total voting power of the then outstanding Voting Equity Interests
of the Company;

 

(ii)           the Company consolidates with, or merges with or into,
another Person (other than a Restricted Subsidiary) or the Company or any of
its Restricted Subsidiaries sells, assigns, conveys, transfers, leases or
otherwise disposes of all or substantially all of the assets of the Company and
its Restricted Subsidiaries (determined on a consolidated basis) to any Person
(other than the Company or any Restricted Subsidiary), other than any such
transaction where immediately after such transaction the Person or Persons that
“beneficially owned” (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act, except that a Person shall be deemed to have “beneficial ownership” of all
securities that such Person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time) immediately prior to
such transaction, directly or indirectly, a majority of the total voting power
of the then outstanding Voting Equity Interests of the Company “beneficially
own” (as so determined), directly or indirectly, a majority of the total voting
power of the then outstanding Voting Equity Interests of the surviving or
transferee Person (for purposes of this clause (ii) a Person shall be deemed to
own 

 

4

 

any Voting Equity Interests
of a specified entity held by a parent entity if such Person is the beneficial
owner, directly or indirectly, of at least 95% of the voting power of the Voting
Equity Interests of such parent entity);

 

(iii)          during any period of two consecutive years, individuals who
at the beginning of such period constituted the Board of Directors of the
Company (together with any new directors whose election by such Board of
Directors or whose nomination for election by the shareholders of the Company
was approved by a vote of a majority of the directors of the Company then still
in office who were either directors at the beginning of such period 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; or

 

(iv)          the Company is liquidated or dissolved or adopts a plan of
liquidation or dissolution other than in a transaction which complies with the
provisions of Section 5.01.

 

“Change of Control Date” has the meaning set forth in Section 4.14.

 

“Company”
means the Person named as the “Company” in the first paragraph of this
Indenture until a successor shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Company” shall mean such
successor.

 

“Company Request”
or “Company Order” means a written
request or order signed in the name of the Company by its Chairman of the
Board, its Vice Chairman of the Board, its President, a Vice President or its
Treasurer, and by an Assistant Treasurer, its Secretary or an Assistant
Secretary, and delivered to the Trustee.

 

“Consolidated EBITDA” means, for any period, the Consolidated Net Income for such
period, plus the following to the extent deducted in calculating such Consolidated
Net Income:  (i) Consolidated Income Tax
Expense for such period; (ii) Consolidated Interest Expense for such period;
and (iii) Consolidated Non-cash Charges for such period less (A) all non-cash
items increasing Consolidated Net Income for such period and (B) all cash
payments during such period relating to non-cash charges that were added back
in determining Consolidated EBITDA in any prior period.

 

“Consolidated Fixed Charge
Coverage Ratio” as of any date
of determination means the ratio of

 

(i)            the aggregate amount of Consolidated EBITDA for the four
quarter period of the most recent four consecutive fiscal quarters for which
internal financial statements are available ending prior to the date of such
determination (the “Four Quarter Period”)
to

 

(ii)           Consolidated Fixed Charges for such Four Quarter Period;

 

provided, however, that

 

(1)           if the Company or any Restricted Subsidiary of the Company
has incurred any Indebtedness since the beginning of such Four Quarter Period
that remains outstanding on such date of determination or if the transaction
giving rise to the need to calculate the Consolidated Fixed Charge Coverage
Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated
Fixed Charges for such Four Quarter Period shall be calculated after giving
effect on a pro forma basis to such Indebtedness as if such Indebtedness had
been Incurred on the first day of such Four Quarter Period and the discharge of
any other Indebtedness repaid, repurchased or

 

5

 

otherwise discharged with
the proceeds of such new Indebtedness as if such discharge had occurred on the
first day of such Four Quarter Period,

 

(2)           if since the beginning of such Four Quarter Period the
Company or any Restricted Subsidiary of the Company shall have made any Asset
Sale, the Consolidated EBITDA for such Four Quarter Period shall be reduced by
an amount equal to the Consolidated EBITDA (if positive) directly attributable
to the assets that are the subject of such Asset Sale for such Four Quarter
Period or increased by an amount equal to the Consolidated EBITDA (if negative)
directly attributable thereto for such Four Quarter Period and Consolidated
Fixed Charges for such Four Quarter Period shall be reduced by an amount equal
to the Consolidated Fixed Charges directly attributable to any Indebtedness of
the Company or any Restricted Subsidiary of the Company repaid, repurchased or
otherwise discharged with respect to the Company and its continuing Restricted
Subsidiaries in connection with such Asset Sale for such Four Quarter Period
(or, if the Equity Interests of any Restricted Subsidiary of the Company are
sold, the Consolidated Interest Expense for such Four Quarter Period directly
attributable to the Indebtedness of such Subsidiary to the extent the Company
and its continuing Restricted Subsidiaries are no longer liable for such
Indebtedness after such sale),

 

(3)           if since the beginning of such Four Quarter Period the
Company or any Restricted Subsidiary of the Company (by merger or otherwise)
shall have made an Investment in any Restricted Subsidiary of the Company (or
any Person that becomes a Restricted Subsidiary of the Company) or an
acquisition of assets, including any acquisition of assets occurring in
connection with a transaction causing a calculation to be made hereunder, which
constitutes all or substantially all of an operating unit of a business,
Consolidated EBITDA and Consolidated Fixed Charges for such Four Quarter Period
shall be calculated after giving pro forma effect thereto (including the
Incurrence of any Indebtedness) as if such Investment or acquisition occurred
on the first day of such Four Quarter Period, and

 

(4)           if since the beginning of such Four Quarter Period any
Person (that subsequently became a Restricted Subsidiary or was merged with or
into the Company or any Restricted Subsidiary of the Company since the
beginning of such Four Quarter Period) shall have made any Asset Sale or any
Investment or acquisition of assets that would have required an adjustment
pursuant to clause (2) or (3) above if made by the Company or a Restricted
Subsidiary of the Company during such Four Quarter Period, Consolidated EBITDA
and Consolidated Fixed Charges for such Four Quarter Period shall be calculated
after giving pro forma effect thereto as if such Asset Sale, Investment or
acquisition of assets occurred on, with respect to any Investment or
acquisition, the first day of such Four Quarter Period and, with respect to any
Asset Sale, the first day of such Four Quarter Period.

 

For purposes of this definition, whenever pro forma
effect is to be given to an acquisition of assets, the amount of income or
earnings relating thereto and the amount of Consolidated Fixed Charges associated
with any Indebtedness Incurred in connection therewith, the pro forma
calculations (i) shall be determined in accordance with Regulation S-X under
the Securities Act as in effect on the date of such calculation and (ii) may
also give effect to additional cost savings, provided
that either (A) such cost savings were actually implemented by the business
that was the subject of any such acquisition of assets within 12 months after
the date of such acquisition and prior to the date of determination that are supportable
and quantifiable by the underlying accounting records of such business or (B)
such cost savings are related to the business that is the subject of any such
acquisition of assets and the Company reasonably determines are probable based
on specifically identifiable actions to be taken within 12 months of such
acquisition and, in the case of each of clauses (ii)(A) and (B), are described
in an officer’s certificate to be

 

6

 

delivered to the Trustee from a financial or
accounting officer of the Company that outlines the actions taken or to be
taken, the net cost savings achieved or to be achieved from such action and
that, in the case of clause (ii)(B), such savings have been determined to be
probable.  If any Indebtedness bears a floating
rate of interest and is being given pro forma effect, the interest expense on
such Indebtedness shall be calculated as if the rate in effect on the date of
determination had been the applicable rate for the entire period (taking into
account any agreement under which Interest Rate Protection Obligations are
outstanding applicable to such Indebtedness if such agreement under which such
Interest Rate Protection Obligations are outstanding has a remaining term as at
the date of determination of not less than 12 months); provided,
however, that the Consolidated Interest
Expense of the Company attributable to interest on any Indebtedness Incurred
under a revolving credit facility computed on a pro forma basis shall be
computed based upon the average daily balance of such Indebtedness during the
Four Quarter Period.

 

“Consolidated Fixed Charges”
means, with respect to any Person for any
period, the sum, without duplication, of (i) Consolidated Interest Expense and
(ii) the product of (x) the amount of all dividend payments on any series of
Preferred Equity Interest of such Person and its consolidated subsidiaries
(other than dividends paid solely in Qualified Equity Interests) paid, accrued
or scheduled to be paid or accrued during such period times (y) a fraction, the
numerator of which is one and the denominator of which is one minus the then
current effective consolidated federal, state and local tax rate of such
Person, expressed as a decimal.

 

“Consolidated Income Tax
Expense” means, with respect
to the Company for any period, the provision for Federal, state, local and
foreign income taxes payable by the Company and its Restricted Subsidiaries for
such period as determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Interest
Expense” means, with
respect to the Company for any period, without duplication, the sum of (i) the
interest expense of the Company and its Restricted Subsidiaries for such period
as determined on a consolidated basis in accordance with GAAP, including,
without limitation, (a) any amortization of debt discount, (b) the net cost
under Interest Rate Protection Obligations (including any amortization of
discounts), (c) the interest portion of any deferred payment obligation, (d)
all commissions, discounts and other fees and charges owed with respect to
letters of credit and bankers’ acceptance financing, (e) all capitalized interest
and all accrued interest, (f) non-cash interest expense and (g) interest on
Indebtedness of another Person that is guaranteed by the Company or any Restricted
Subsidiary of the Company actually paid by the Company or any Restricted
Subsidiary of the Company and (ii) the interest component of Capital Lease
Obligations paid, accrued and/or scheduled to be paid or accrued by the Company
and its Subsidiaries during such period as determined on a consolidated basis
in accordance with GAAP.

 

“Consolidated Net Income” means, for any period, the consolidated net income (loss)
of the Company and its Restricted Subsidiaries; provided,
however, that there shall not be
included in such Consolidated Net Income: (i) any net income (loss) of any
Person if such person is not a Restricted Subsidiary of the Company, except (a)
the Company’s equity in a net loss of any such Person for such period shall be
included in determining such Consolidated Net Income and (b) solely for
purposes of Section 4.06, the Company’s equity in the net income of any such
Person for such period shall be included in determining such Consolidated Net Income
only to the extent of the amount of cash actually distributed by such Person
during such period to the Company or a Restricted Subsidiary as a dividend or
other distribution; (ii) any net income (loss) of any person acquired by the
Company or a Restricted Subsidiary of the Company in a pooling of interests
transaction for any period prior to the date of such acquisition; (iii) any net
income (but not loss) of any Restricted Subsidiary of the Company if such
Restricted Subsidiary is subject to restrictions, directly or indirectly, on
the payment of dividends or the making of distributions by such Restricted
Subsidiary, directly or indirectly, to the Company to the extent of such
restrictions;

 

7

 

provided, however, that solely for purposes of Section 4.06 that the
Company’s equity in the net income of any such Person for such period shall be
included in determining such Consolidated Net Income only to the extent of the
amount of cash actually distributed by such Person during such period to the
Company or a Restricted Subsidiary as a dividend or other distribution; (iv)
any gain or loss realized upon the sale or other disposition of any asset of
the Company or its Restricted Subsidiaries (including pursuant to any sale and lease-back
transaction) outside of the ordinary course of business including, without
limitation, on or with respect to Investments (and excluding dividends, distributions
or interest thereon); (v) any extraordinary gain or loss; (vi) the cumulative
effect of a change in accounting principles after the Issue Date; (vii) any
non-cash SFAS 133 income (or loss) related to hedging activities; (viii) any
restoration to income of any contingency reserve of an extraordinary,
non-recurring or unusual nature, except to the extent that provision for such
reserve was made out of Consolidated Net Income accrued at any time following
the Issue Date; and (ix) any non-recurring charges related to any premium or
penalty paid, write-off of deferred financing costs or other financial
recapitalization charges in connection with redeeming or retiring Indebtedness
prior to its stated maturity.

 

“Consolidated Non-cash
Charges” means, with respect
to any Person, for any period the sum of (A) depreciation, (B) amortization and
(C) other non-cash expenses of such Person and its Subsidiaries reducing
Consolidated Net Income of such Person and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP (excluding, for
purposes of clause (C) only, such charges which require an accrual of or a
reserve for cash charges for any future period).

 

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

 

“Covenant Defeasance”
has the meaning set forth in Section 9.01(c).

 

“Credit Facilities”
means one or more debt facilities (including, without limitation, the Senior
Credit Facilities) or commercial paper facilities, in each case with banks,
investment banks, insurance companies, mutual funds and/or other institutional
lenders providing for revolving credit loans, term loans, receivables or inventory
financing (including through the sale of receivables or inventory to such
lenders or to special purpose entities formed from (or sell receivables to)
such lenders against such receivables or inventory) or letters of credit, or
senior secured notes in each case, as amended, restated, modified, renewed,
refunded, replaced or supplemented in whole or in part and without limitation
to amounts, terms, conditions, covenants and other provisions, from time to
time.

 

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

 

“Custodian”
has the meaning set forth in Section 6.01.

 

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

 

“Defeasance Trust Payment”
has the meaning set forth in Section 8.02(a).

 

“Depository”
means, with respect to the Notes issued in the form of one or more Global Notes,
The Depository Trust Company or another Person designated as Depository by the
Company, which must be a clearing agency registered under the Exchange Act.

 

“Designated Senior
Indebtedness” means (a) any
Indebtedness outstanding under the Senior Credit Facilities and (b) any other
Senior Indebtedness which, at the time of determination, has an

 

8

 

aggregate principal amount outstanding, together
with any commitments to lend additional amounts, of at least $25.0 million, if
the instrument governing such Senior Indebtedness expressly states that such
Indebtedness is “Designated Senior Indebtedness” for purposes of this Indenture
and a Board Resolution setting forth such designation by the Company has been
filed with the Trustee.

 

“Disqualified Equity
Interest” means any
Equity Interest 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
thereof), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable,
at the option of the holder thereof, in whole or in part, or exchangeable into
Indebtedness on or prior to the maturity date of the Notes; provided, however, that
any Equity Interests that would not constitute Disqualified Equity Interests
but for the provisions thereof giving holders thereof the right to require such
Person to redeem or repurchase such Equity Interests upon the occurrence of any
“asset sale” or “change of control” occurring prior to the maturity date of the
Notes shall not constitute Disqualified Equity Interests if the “asset sale” or
“change of control” provisions applicable to such Equity Interests are not more
favorable to the holders of such Equity Interests than the provisions of Sections
4.05 and 4.14.

 

“Equity Interest” in any Person means any and all shares, interests, rights
to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) corporate stock or other equity participations,
including partnership interests, whether general or limited, in such Person,
including any Preferred Equity Interests.

 

“Equity Offering” means, with respect to the Company, an offering of
Qualified Equity Interests of the Company or any equity capital contribution in
respect of Qualified Equity Interests.

 

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

 

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

 

“Exchange Notes”
means the 7 1/8% Senior Subordinated Notes due 2015 to be issued in
exchange for the Initial Notes pursuant to the Registration Rights Agreement or
in exchange for Additional Notes pursuant to any other registration rights
agreement entered into in connection with an issuance of Additional Notes in a
private offering after the Issue Date.

 

“Exchange Offer”
means the offer that shall be made by the Company pursuant to the Registration
Rights Agreement to exchange Initial Notes for Exchange Notes.

 

“Expiration Date” has the meaning set forth in the definition of “Offer to
Purchase”.

 

“Fair Market Value”
means, with respect to any asset, the price (after taking into account any liabilities
relating to such asset) 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 which is under any compulsion to complete the transaction.

 

“Final Maturity Date”
means October 1, 2015.

 

“Foreign Subsidiary” means any Subsidiary which is not organized in the United
States.

 

“Foreign Subsidiary Total
Tangible Assets” means the
aggregate amount of assets of the Company’s Foreign Subsidiaries that are
Restricted Subsidiaries (less applicable reserves and other

 

9

 

properly deductible items) after deducting therefrom
(to the extent otherwise included therein) all goodwill, trade names, patents,
unamortized debt discount and expense and other like intangibles, all as set
forth on the books and records of such Foreign Subsidiaries on a consolidated
basis in accordance with GAAP.

 

“Four Quarter Period” has the meaning set forth in the definition of “Consolidated
Fixed Charge Coverage Ratio.”

 

“Funding Guarantor”
has the meaning set forth in Section 12.07.

 

“GAAP”
means, at any date of determination, generally accepted accounting principles
in effect in the United States which are applicable at the date of
determination and which are consistently applied for all applicable periods.

 

“Global Notes”
has the meaning set forth in Section 2.01.

 

“Government Securities”
means direct obligations of, and obligations guaranteed by, the United States
of America for the payment of which the full faith and credit of the United
States of America is pledged and which are not callable or redeemable at the Company’s
option.

 

“guarantee” means, as applied to any obligation, (i) a guarantee (other
than by endorsement of negotiable instruments for collection in the ordinary
course of business), direct or indirect, in any manner, of any part or all of
such obligation and (ii) an agreement, direct or indirect, contingent or
otherwise, the practical effect of which is to assure in any way the payment or
performance (or payment of damages in the event of non-performance) of all or
any part of such obligation, including, without limiting the foregoing, the payment
of amounts drawn down by letters of credit.

 

“Guarantor” means (1) each domestic Subsidiary of the Company (other
than Solgar Holdings, Inc., Solgar, Inc. and Solgar Mexico Holdings, LLC) upon
the earlier of (x) the date within three Business Days after the date of
redemption of all of the Company’s issued and outstanding 8 5/8% Notes due
September 15, 2007 and (y) the date that is 45 days after the Issue Date; (2)
Solgar Holdings, Inc., Solgar, Inc. and Solgar Mexico Holdings, LLC, which will
guarantee the Notes as promptly as practicable after such time that the Company
would not be required to file separate financial statements for Solgar Holdings,
Inc. with the SEC pursuant to Rule 3-10, paragraph G of Regulation S-X as
promulgated by the SEC, if the Company was filing a registration statement at
such time; and (3) each of the Company’s Restricted Subsidiaries that in the
future executes a supplemental indenture in which such Restricted Subsidiary
agrees to be bound by the terms of this Indenture as a Guarantor; provided that any Person constituting a Guarantor as
described above shall cease to constitute a Guarantor when its respective Note
Guarantee is released in accordance with the terms of this Indenture.

 

“Guarantor Senior
Indebtedness” means, with
respect to any Guarantor, at any date,

 

(a)           all Obligations of such Guarantor under the Senior Credit
Facilities;

 

(b)           all Interest Rate Protection Obligations of such Guarantor;

 

(c)           all Obligations of such Guarantor under standby letters of
credit; and

 

(d)           all other Indebtedness of such Guarantor for borrowed
money, including principal, premium, if any, and interest (including
Post-Petition Interest) on such Indebtedness, unless the instrument under which
such Indebtedness of the Guarantor for money borrowed is Incurred expressly
provides that such Indebtedness for money borrowed is not senior or superior in
right of

 

10

 

payment to the Note Guarantee, and all
renewals, extensions, modifications, amendments or refinancings thereof.

 

Notwithstanding the foregoing, Guarantor Senior
Indebtedness shall not include:

 

(a)           to the extent that it may constitute Indebtedness, any
Obligation for Federal, state, local or other taxes;

 

(b)           any Indebtedness among or between such Guarantor and the
Company, any Subsidiary of the Company or any Affiliate of the Company or any
of such Affiliate’s Subsidiaries;

 

(c)           to the extent that it may constitute Indebtedness, any
Obligation in respect of any trade payable Incurred for the purchase of goods
or materials, or for services obtained, in the ordinary course of business;

 

(d)           that portion of any Indebtedness that is Incurred in
violation of this Indenture;

 

(e)           Indebtedness evidenced by the Note Guarantees;

 

(f)            Indebtedness of such Guarantor that is expressly
subordinate or junior in right of payment to any other Indebtedness of the
Company;

 

(g)           to the extent that it may constitute Indebtedness, any
obligation owing under leases (other than Capital Lease Obligations) or
management agreements; and

 

(h)           any obligation that by operation of law is subordinate to
any general unsecured obligations of such Guarantor.  No Indebtedness shall be deemed to be
subordinated to other Indebtedness solely because such other Indebtedness is secured.

 

“Holders” means the registered holders of the Notes.

 

“IAI Global Note”
has the meaning set forth in Section 2.01.

 

“Incur” means, with respect to any Indebtedness or other obligation
of any Person, to create, issue, incur (including by conversion, exchange or
otherwise), assume, guarantee or otherwise become liable in respect of such
Indebtedness or other obligation or the recording, as required pursuant to GAAP
or otherwise, of any such Indebtedness or other obligation on the balance sheet
of such Person (and “Incurrence,” “Incurred” and “Incurring” shall have
meanings correlative to the foregoing). 
Indebtedness of any Acquired Person or any of its Subsidiaries existing
at the time such Acquired Person becomes a Restricted Subsidiary of the Company
(or is merged into or consolidated with the Company or any Restricted
Subsidiary of the Company), whether or not such Indebtedness was Incurred in
connection with, as a result of, or in contemplation of, such Acquired Person
becoming a Subsidiary of the Company (or being merged into or consolidated with
the Company or any Restricted Subsidiary), shall be deemed Incurred at the time
any such Acquired Person becomes a Restricted Subsidiary or merges into or
consolidates with the Company or any Restricted Subsidiary.

 

“Indebtedness” means (without duplication), with respect to any Person,
whether recourse is to all or a portion of the assets of such Person and
whether or not contingent:

 

(a)           indebtedness of such Person for money borrowed;

 

11

 

(b)           indebtedness of such Person evidenced by bonds,
debentures, notes or other similar instruments, including obligations incurred
in connection with the acquisition of property, assets or businesses;

 

(c)           every reimbursement obligation of such Person with respect
to letters of credit, bankers’ acceptances or similar facilities issued for the
account of such Person;

 

(d)           the deferred purchase price of property or services (but
excluding trade accounts payable incurred in the ordinary course of business
and payable in accordance with industry practices, or other accrued liabilities
arising in the ordinary course of business which are not overdue or which are
being contested in good faith);

 

(e)           every Capital Lease Obligation of such Person;

 

(f)            every net obligation under Interest Rate Protection
Obligations or similar agreements or Currency Agreements of such Person;

 

(g)           Attributable Indebtedness;

 

(h)           every obligation of the type referred to in clauses (a)
through (g) of another Person and all dividends of another Person the payment
of which, in either case, such Person has guaranteed or is responsible or
liable for, directly or indirectly, as obligor, guarantor or otherwise; and

 

(i)            any and all deferrals, renewals, extensions and
refundings of, or amendments, modifications or supplements to, any liability of
the kind described in any of the preceding clauses (a) through (h) above.

 

Indebtedness:

 

                   (i)          shall
not include obligations of any Person (x) 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, provided that such obligations are extinguished within five
Business Days of their incurrence, (y) resulting from the endorsement of
negotiable instruments for collection in the ordinary course of business and
consistent with past business practices and (z) under standby letters of credit
to the extent collateralized by cash or Cash Equivalents;

 

                  (ii)          which
provides that an amount less than the principal amount thereof shall be due
upon any declaration of acceleration thereof shall be deemed to be Incurred or
outstanding in an amount equal to the accreted value thereof at the date of
determination; and

 

                 (iii)          shall
not include obligations under performance bonds, performance guarantees, surety
bonds and appeal bonds, letters of credit or similar obligations, incurred in
the ordinary course of business.

 

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

 

“Independent Financial
Advisor” means a
nationally recognized accounting, appraisal, investment banking firm or consultant.

 

12

 

“Initial Global Note”
has the meaning set forth in Section 2.01.

 

 “Initial Notes” has the meaning set
forth in Section 2.02.

 

“Initial Purchasers”
means J.P. Morgan Securities Inc., Adams Harkness, Inc., BNP Paribas Securities
Corp., HSBC Securities (USA) Inc. and RBC Capital Markets Corporation.

 

“Insolvency or Liquidation
Proceeding” means, with respect to any Person, any liquidation,
dissolution or winding up of such Person, or any bankruptcy, reorganization,
insolvency, receivership or similar proceeding with respect to such Person,
whether voluntary or involuntary.

 

“Institutional Accredited Investor”
means an institution that is an “accredited investor” as that term is defined
in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

 

“interest”
means, with respect to the Notes, the sum of any cash interest and any Additional
Interest on the Notes.

 

“Interest Payment Date”
means each semiannual interest payment date on April 1 and October 1 of each
year, commencing April 1, 2006.

 

“Interest Rate Protection
Obligations” means, with respect to any Person, the Obligations
of such Person under interest rate swap agreements, interest rate cap
agreements and interest rate collar agreements, and other similar agreements or
arrangements.

 

“Interest Record Date”
for the interest payable on any Interest Payment Date (except a date for
payment of defaulted interest) means the March 15 or September 15 (whether or
not a Business Day), as the case may be, immediately preceding such Interest Payment
Date.

 

“Investment”
means, with respect to any Person, any direct or indirect loan, advance,
guarantee or other extension of credit or capital contribution to (by means of
transfers of cash or other property or assets to others or payments for
property or services for the account or use of others, or otherwise), or
purchase or acquisition of Equity Interests, bonds, notes, debentures or other
securities or evidences of Indebtedness issued by, any other Person.  For purposes of Section 4.06, the amount of
any Investment shall be the original cost of such Investment, plus the cost of
all additions thereto, but without any other adjustments for increases or
decreases in value, or write-ups, write-downs or write-offs with respect to
such Investment; reduced by the payment of dividends or distributions in
connection with such Investment or any other amounts received in respect of
such Investment; provided, however,
that no such payment of dividends or distributions or receipt of any such other
amounts shall reduce the amount of any Investment if such payment of dividends
or distributions or receipt of any such amounts would be included in
Consolidated Net Income.  In determining
the amount of any Investment involving a transfer of any property or asset
other than cash, such property shall be valued at its fair market value at the
time of such transfer, as determined in good faith by the Board of Directors
(or comparable body) of the Person making such transfer.

 

“Issue Date” means September 23, 2005.

 

“Legal Defeasance”
has the meaning set forth in Section 9.01(b).

 

“Lien” means
any lien, mortgage, charge, security interest, hypothecation, assignment for
security or encumbrance of any kind (including any conditional sale or capital
lease or other title retention agreement, any lease in the nature thereof and
any agreement to give any security interest).

 

13

 

 “Net Cash Proceeds” means the aggregate proceeds in the form of cash or Cash
Equivalents received by the Company or any Restricted Subsidiary of the Company
in respect of any Asset Sale, net of:

 

(a)           the direct costs relating to such Asset Sale (including,
without limitation, legal, accounting and investment banking fees, and sales
commissions) and any relocation expenses incurred as a result thereof;

 

(b)           taxes paid or payable as a result thereof (after taking
into account any available tax credits or deductions and any tax sharing
arrangements);

 

(c)           amounts required to be applied to the repayment of
Indebtedness secured by a Lien on the asset or assets that were the subject of
such Asset Sale;

 

(d)           amounts deemed, in good faith, appropriate by the Board of
Directors of the Company to be provided as a reserve, in accordance with GAAP,
against any liabilities associated with such assets which are the subject of
such Asset Sale; including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale, all as reflected in an officers’ certificate delivered to the
Trustee (provided that the amount of any such
reserves shall be deemed to constitute Net Cash Proceeds at the time such reserves
shall have been reversed or are not otherwise required to be retained as a
reserve); and

 

(e)           with respect to Asset Sales by Restricted Subsidiaries, the
portion of such cash payments attributable to Persons holding a minority
interest in such Restricted Subsidiary.

 

“Net
Proceeds Offer” has the meaning set forth in Section 4.05(a).

 

“Net Proceeds Utilization
Date” has the
meaning set forth in Section 4.05(a).

 

“Non-Recourse Receivables
Subsidiary Indebtedness” has the meaning specified in the
definition of “Receivables Subsidiary.”

 

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

 

“Note Guarantee”
means a guarantee of the Notes by a Guarantor.

 

“Notes”
means, collectively, the Initial Notes, the Additional Notes and the
Unrestricted Notes treated as a single class of securities, as amended or
supplemented from time to time in accordance with the terms of this Indenture.

 

“Obligations”
means any principal, interest (including, without limitation, Post-Petition
Interest), penalties, fees, indemnifications, reimbursement obligations,
damages and other liabilities payable under the documentation governing any
Indebtedness.

 

“Offer” has
the meaning set forth in the definition of “Offer to Purchase” below.

 

“Offer to Purchase”
means a written offer (the “Offer”)
sent by or on behalf of the Company by first-class mail, postage prepaid, to
each Holder at its address appearing in the register for the Notes on the date
of the Offer offering to purchase up to the principal amount of Notes specified
in such Offer at the purchase price specified in such Offer (as determined
pursuant to this Indenture).  Unless

 

14

 

otherwise required by applicable law, the Offer
shall specify an expiration date (the “Expiration Date”)
of the Offer to Purchase, which shall be not less than 20 Business Days nor
more than 60 days after the date of such Offer, and a settlement date (the “Purchase Date”) for purchase of
Notes to occur no later than five Business Days after the Expiration Date.  The Company shall notify the Trustee at least
15 Business Days (or such shorter period as is acceptable to the Trustee) prior
to the mailing of the Offer of the Company’s obligation to make an Offer to
Purchase, and the Offer shall be mailed by the Company or, at the Company’s
request, by the Trustee in the name and at the expense of the Company.  The Offer shall contain all the information
required by applicable law to be included therein.  The Offer shall also contain information, as
specified in this Indenture governing the Notes, concerning the business of the
Company and its Subsidiaries which the Company in good faith believes will
enable such Holders to make an informed decision with respect to the Offer to
Purchase (which at a minimum will include (i) the most recent annual and
quarterly financial statements and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” contained in the documents
required to be filed with the Trustee pursuant to this Indenture (which
requirements may be satisfied by delivery of such documents together with the
Offer), (ii) a description of material developments in the Company’s
business subsequent to the date of the latest of such financial statements
referred to in clause (i) (including a description of the events requiring the
Company to make the Offer to Purchase), (iii) if applicable, appropriate pro
forma financial information concerning the Offer to Purchase and the events
requiring the Company to make the Offer to Purchase and (iv) any other
information required by applicable law to be included therein).  The Offer shall contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the
Offer to Purchase. 
The Offer shall also state:

 

(1)           the Section of this Indenture pursuant to which the Offer
to Purchase is being made;

 

(2)           the Expiration Date and the Purchase Date;

 

(3)           the aggregate principal amount of the outstanding Notes
offered to be purchased by the Company pursuant to the Offer to Purchase
(including, if less than 100%, the manner by which such amount has been
determined pursuant to the Section of this Indenture requiring the Offer to
Purchase) (the “Purchase Amount”);

 

(4)           the purchase price to be paid by the Company for each
$1,000 aggregate principal amount of Notes accepted for payment (as specified
pursuant to this Indenture) (the “Purchase Price”);

 

(5)           that the Holder may tender all or any portion of the Notes
registered in the name of such Holder and that any portion of a Note tendered
must be tendered in an integral multiple of $1,000 principal amount;

 

(6)           the place or places where Notes are to be surrendered for
tender pursuant to the Offer to Purchase;

 

(7)           that interest on any Note not tendered or tendered but not
purchased by the Company pursuant to the Offer to Purchase will continue to
accrue;

 

(8)           that on the Purchase Date the Purchase Price will become
due and payable upon each Note being accepted for payment pursuant to the Offer
to Purchase and that interest thereon shall cease to accrue on and after the Purchase
Date;

 

15

 

(9)           that each Holder electing to tender all or any portion of
a Note pursuant to the Offer to Purchase will be required to surrender such Note
at the place or places specified in the Offer prior to the close of business on
the Expiration Date (such Note being, if the Company or the Trustee so
requires, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing);

 

(10)         that Holders will be entitled to withdraw all or any portion
of Notes tendered if the Company (or its Paying Agent) receives, not later than
the close of business on the fifth Business Day next preceding the Expiration
Date, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Note the Holder tendered, the
certificate number of the Note the Holder tendered and a statement that such
Holder is withdrawing all or a portion of his tender;

 

(11)         that (a) if Notes in an aggregate principal amount less than
or equal to the Purchase Amount are duly tendered and not withdrawn pursuant to
the Offer to Purchase, the Company shall purchase all such Notes and
(b) if Notes in an aggregate principal amount in excess of the Purchase
Amount are tendered and not withdrawn pursuant to the Offer to Purchase, the Company
shall purchase Notes having an aggregate principal amount equal to the Purchase
Amount on a pro rata basis (with such adjustments as
may be deemed appropriate so that only Notes in denominations of $1,000
principal amount or integral multiples thereof shall be purchased); and

 

(12)         that in the case of any Holder whose Note is purchased only
in part, the Company shall execute and the Trustee shall authenticate and deliver
to the Holder of such Note without service charge, a new Note or Notes, of any
authorized denomination as requested by such Holder, in an aggregate principal
amount equal to and in exchange for the unpurchased portion of the Note so tendered.

 

An Offer to Purchase shall be governed by and
effected in accordance with the provisions above pertaining to any Offer.

 

“Officer”
means the Chairman, any Vice Chairman, the President, any Vice President, the
Chief Financial Officer, the Treasurer, or the Secretary of the Company.

 

“Officers’ Certificate”
means a certificate signed by two Officers or by an Officer and an Assistant
Treasurer or Assistant Secretary of the Company complying with Sections 13.04
and 13.05.

 

“144A Global Note” has the meaning set forth in Section 2.01.

 

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

 

“Pari Passu Offer to
Purchase” has the meaning set forth in Section 4.05(a).

 

“Participant”
has the meaning set forth in Section 2.15(a).

 

“Paying Agent”
has the meaning set forth in Section 2.03.

 

“Permitted Holder”
means Scott Rudolph, Arthur Rudolph, Harvey Kamil, Michael Slade and members of
any of their immediate families and trusts of which such persons are the
beneficiaries.

 

16

 

“Permitted Indebtedness”
has the meaning set forth in the second paragraph of Section 4.04.

 

“Permitted Investments”
means:

 

(a)           Cash Equivalents;

 

(b)           Investments in prepaid expenses, negotiable instruments
held for collection and lease, utility and workers’ compensation, performance
and other similar deposits;

 

(c)           Interest Rate Protection Obligations and Currency
Agreements;

 

(d)           Investments received in connection with the bankruptcy or
reorganization of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers, in each case
arising in the ordinary course of business;

 

(e)           Investments in the Company and direct or indirect loans,
advances, guarantees or other extensions of credit in the ordinary course of
business to or on behalf of a Subsidiary of the Company and cash Investments in
a Person that, as a result of or in connection with such Investment, is merged
with or into or consolidated with the Company or a Restricted Subsidiary or
that will become a Restricted Subsidiary;

 

(f)            Investments in the Company by any Restricted Subsidiary
of the Company; provided that any Indebtedness evidencing
such Investment and held by a Restricted Subsidiary that is not a Guarantor is
unsecured and subordinated, pursuant to a written agreement, to the Company’s
obligations under the Notes and this Indenture;

 

(g)           Investments made by the Company or its Restricted
Subsidiaries as a result of consideration received in connection with an Asset
Sale made in compliance with Section 4.05;

 

(h)           Investments represented by guarantees that are otherwise
permitted under this Indenture;

 

(i)            Investments permitted by clauses (i), (iv) or (vi) of
Section 4.03(b);

 

(j)            Investments paid for in Equity Interests of the Company;

 

(k)           loans or advances to officers, employees or consultants of
the Company and its Subsidiaries in the ordinary course of business for bona
fide business purposes of the Company and its Subsidiaries (including travel
and moving expenses) not in excess of $5.0 million in the aggregate at any one
time outstanding;

 

(l)            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;

 

(m)          any Investment by the Company or any Restricted Subsidiary
in a Receivables Subsidiary or any Investment by a Receivables Subsidiary in
any other Person in connection with a Qualified Receivables Transaction, so
long as any Investment in a Receivables Subsidiary is in the form of a note
evidencing Purchase Money Indebtedness or an Investment in Equity Interests;

 

17

 

(n)           Investments in Permitted Joint Ventures not to exceed the
greater of (x) 5.0% of Total Tangible Assets or (y) $50.0 million at any one
time outstanding (with each such Investment being valued as of the date made
and without regard to subsequent changes in value), less the net cash proceeds
received (or Fair Market Value of property or assets received) upon disposition
of such Investment; and

 

(o)           additional Investments not to exceed $30.0 million at any
one time outstanding.

 

“Permitted Joint Venture”
means a corporation, partnership or other entity (other than a Subsidiary)
engaged in the business of the Company and its Subsidiaries as existing on the
Issue Date or in businesses reasonably related thereto in respect of which the
Company or a Restricted Subsidiary beneficially owns at least 25% of the shares
of Equity Interests of such entity.

 

“Permitted Junior
Securities” means any securities of the Company or any other
Person that are (i) equity securities without special covenants or (ii) debt
securities expressly subordinated in right of payment to all Senior
Indebtedness that may at the time be outstanding, to substantially the same
extent as, or to a greater extent than, the Notes are subordinated as provided
in this Indenture, or in any event pursuant to a court order so providing and
as to which (a) the rate of interest on such securities shall not exceed the effective
rate of interest on the Notes on the date of this Indenture, (b) such
securities shall not be entitled to the benefits of covenants or defaults materially
more beneficial to the holders of such securities than those in effect with
respect to the Notes on the date of this Indenture and (c) such securities
shall not provide for amortization (including sinking fund and mandatory prepayment
provisions) commencing prior to the date six months following the final
scheduled maturity date of the Senior Indebtedness (as modified by the plan of
reorganization of readjustment pursuant to which such securities are issued).

 

“Permitted Liens”
means:

 

(a)           Liens on property of a Person existing at the time such
Person is merged into or consolidated with the Company or any Restricted
Subsidiary of the Company; provided, however, that such Liens were in existence prior to the
contemplation of such merger or consolidation and do not secure any property or
assets of the Company or any Restricted Subsidiary of the Company other than
the property or assets subject to the Liens prior to such merger or consolidation;

 

(b)           Liens imposed by law such as carriers’, warehousemen’s and
mechanics’ Liens and other similar Liens arising in the ordinary course of
business which secure payment of obligations not more than 60 days past due or
which are being contested in good faith and by appropriate proceedings;

 

(c)           Liens existing on the Issue Date;

 

(d)           Liens securing only the Notes;

 

(e)           Liens in favor of the Company or any Subsidiary of the
Company;

 

(f)            Liens for taxes, assessments or governmental charges or
claims that are not yet delinquent or that are being contested in good faith by
appropriate proceedings promptly instituted and diligently concluded; provided, however, that
any reserve or other appropriate provision as shall be required in conformity
with GAAP shall have been made therefor;

 

18

 

(g)           easements, reservation of rights of way, restrictions and
other similar easements, licenses, restrictions on the use of properties, or
minor imperfections of title that in the aggregate are not material in amount and
do not in any case materially detract from the properties subject thereto or
interfere with the ordinary conduct of the business of the Company and its
Restricted Subsidiaries;

 

(h)           Liens resulting from the deposit of cash or notes in
connection with contracts, tenders or expropriation proceedings, or to secure
workers’ compensation, surety or appeal bonds, costs of litigation when
required by law and public and statutory obligations or obligations under
franchise arrangements entered into in the ordinary course of business;

 

(i)            any interest or title of a lessor under any Capital Lease
Obligation; provided that such Liens do not extend
to any property or asset which is not leased property subject to such Capital
Lease Obligation;

 

(j)            Liens securing Purchase Money Indebtedness incurred or in
the ordinary course of business; provided, however, that (a) such Purchase Money Indebtedness shall not
exceed the purchase price or other cost of such property or equipment and shall
not be secured by any property or equipment of the Company or any Restricted
Subsidiary of the Company other than the property and equipment so acquired and
(b) the Lien securing such Purchase Money Indebtedness shall be created within
180 days of such acquisition;

 

(k)           Liens to secure any refinancings, renewals, extensions,
modifications or replacements (collectively, “refinancings”)
(or successive refinancings), in whole or in part, of any Indebtedness secured
by Liens referred to in the clauses above so long as such Lien does not extend
to any other property (other than improvements thereto);

 

(l)            Liens securing Indebtedness permitted by clause (i) of
the second paragraph of Section 4.04;

 

(m)          judgment Liens not giving rise to an Event of Default so
long as such Lien is adequately bonded and any appropriate legal proceedings
which may have been duly initiated for the review of such judgment shall not
have been finally terminated or the period within which such proceedings may be
initiated shall not have expired;

 

(n)           Liens securing Interest Rate Protection Obligations and
Currency Agreements that are described in clauses (d) and (f) of the second
paragraph of Section 4.04;

 

(o)           Liens on assets of a Restricted Subsidiary of the Company
that is not a Guarantor to secure Indebtedness of such Restricted Subsidiary
that is otherwise permitted under this Indenture;

 

(p)           leases, subleases, licenses and sublicenses granted to
others that do not materially interfere with the ordinary course of business of
the Company and its Restricted Subsidiaries;

 

(q)           banker’s Liens, rights of setoff and similar Liens with
respect to cash and Cash Equivalents on deposit in one or more bank accounts in
the ordinary course of business;

 

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

 

19

 

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

 

(t)            Liens on the Equity Interests of a Receivables Subsidiary
and accounts receivable and related assets described in the definition of “Qualified
Receivables Transaction,” in each case, incurred in connection with a Qualified
Receivables Transaction.

 

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

 

“Physical Notes”
has the meaning set forth in Section 2.01.

 

“Post-Petition Interest”
means, with respect to any Indebtedness of any Person, all interest accrued or
accruing on such Indebtedness after the commencement of any Insolvency or
Liquidation Proceeding against such Person in accordance with and at the contract
rate (including, without limitation, any rate applicable upon default)
specified in the agreement or instrument creating, evidencing or governing such
Indebtedness, whether or not, pursuant to applicable law or otherwise, the
claim for such interest is allowed as a claim in such Insolvency or Liquidation
Proceeding.

 

“Preferred Equity Interest,”
in any Person, means an Equity Interest 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 Equity Interests of any other
class in such Person.

 

“principal”
of a debt security means the principal of the security plus, when appropriate,
the premium, if any, on the security.

 

“Private Placement Legend”
means the legend initially set forth on the Initial Notes in the form set forth
on Exhibit A hereto.

 

“Purchase Agreement”
means the Purchase Agreement dated as of September 16, 2005 by and between
the Company, the Guarantors and the Initial Purchasers.

 

“Purchase Amount”
has the meaning set forth in the definition of “Offer to Purchase” above.

 

“Purchase Date”
has the meaning set forth in the definition of “Offer to Purchase” above.

 

“Purchase Money
Indebtedness” means Indebtedness of the Company or any Restricted
Subsidiary of the Company Incurred for the purpose of financing in the ordinary
course of business all or any part of the purchase price or the cost of
construction or improvement of any property; provided,
however, that the aggregate principal
amount of such Indebtedness does not exceed the lesser of the Fair Market Value
of such property or such purchase price or cost, including any refinancing of
such Indebtedness that does not increase the aggregate principal amount (or
accreted amount, if less) thereof as of the date of refinancing.

 

“Purchase Price”
has the meaning set forth in the definition of “Offer to Purchase” above.

 

20

 

“Qualified Equity Interest”
in any Person means any Equity Interest in such Person other than any
Disqualified Equity Interest.

 

“Qualified Institutional
Buyer” or “QIB” means
a “qualified institutional buyer” as that term is defined in Rule 144A under the
Securities Act.

 

“Qualified Receivables
Transaction” means any transaction or series of transactions
entered into by the Company or any of its Restricted Subsidiaries pursuant to
which the Company or such Restricted Subsidiary sells, conveys or otherwise
transfers (including the grant of a backup security interest in the assets
purported to be transferred for any such sale, conveyance or transfer) to (a) a
Receivables Subsidiary (in the case of a transfer by the Company or any of the
Restricted Subsidiaries) or (b) any other Person (in the case of a transfer by
a Receivables Subsidiary), or grants a security interest in, any accounts
receivable (whether now existing or arising in the future) of the Company or
any of its Restricted Subsidiaries, and any assets related thereto, including,
without limitation, all collateral securing such accounts receivable, all
contracts and all guarantees or other obligations in respect of such accounts
receivable, proceeds of such accounts receivable and other assets which are
customarily transferred or in respect of which security interests are
customarily granted in connection with an accounts receivable financing
transaction; provided such transaction is on
market terms at the time the Company or such Restricted Subsidiary enters into
such transaction.

 

“Receivables Repurchase
Obligation” means any obligation of a seller of receivables in a
Qualified Receivables Transaction to repurchase receivables arising as a result
of a breach of a representation, warranty or covenant or otherwise, including
as a result of a receivable or portion thereof becoming subject to any asserted
defense, dispute, offset or counterclaim of any kind as a result of any action
taken by, any failure to take action by or any other event relating to the
seller.

 

“Receivables Subsidiary”
means a Subsidiary of the Company:

 

(1)           that is formed solely for the purpose of, and that engages
in no activities other than activities in connection with, financing accounts
receivable of the Company and/or its Restricted Subsidiaries;

 

(2)           that is designated by the Company as a Receivables
Subsidiary and that has total assets at the time of such creation and
designation with a book value of $10,000 or less;

 

(3)           no portion of the Indebtedness or any other obligation (contingent
or otherwise) of which (a) is at any time guaranteed by the Company or any
Restricted Subsidiary (excluding guarantees of obligations (other than any
guarantee of Indebtedness) pursuant to Standard Securitization Undertakings),
(b) is at any time recourse to or obligates the Company or any Restricted
Subsidiary in any way, other than pursuant to Standard Securitization
Undertakings, or (c) subjects any asset of the Company or any other Restricted
Subsidiary, directly or indirectly, contingently or otherwise, to the
satisfaction thereof, other than pursuant to Standard Securitization
Undertakings (such Indebtedness, “Non-Recourse Receivables
Subsidiary Indebtedness”);

 

(4)           with which neither the Company nor any Restricted
Subsidiary has any material contract, agreement, arrangement or understanding
other than contracts, agreements, arrangements and understandings entered into
in the ordinary course of business on terms no less favorable to the Company or
such Restricted Subsidiary than those that might be obtained at the time from Persons
that are not the Company’s Affiliates in connection with a Qualified
Receivables Transaction and fees payable in the ordinary course of business in
connection with servicing accounts receivable in connection with such a
Qualified Receivables Transaction; and

 

21

 

(5)           with respect to which neither the Company nor any
Restricted Subsidiary has any obligation (a) to subscribe for additional Equity
Interests therein or make any additional capital contribution or similar
payment or transfer thereto or (b) to maintain or preserve the solvency or any
balance sheet term, financial condition, level of income or results of operations
thereof.

 

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

 

“redemption price,”
when used with respect to any Note to be redeemed, means the price fixed for
such redemption pursuant to this Indenture as set forth in the form of Note
annexed hereto as Exhibit B.

 

“Registrar”
has the meaning set forth in Section 2.03.

 

“Registration”
means a registered exchange offer for the Notes and the Note Guarantees by the
Company or other registration of the Notes and the Note Guarantees under the
Securities Act pursuant to and in accordance with the terms of the Registration
Rights Agreement.

 

“Registration Rights
Agreement” means (i) the Exchange and Registration Rights
Agreement dated as of the Issue Date by and between the Company, the Guarantors
and the Initial Purchasers and (ii) any other registration rights agreement
entered into in connection with an issuance of Additional Notes in a private offering
after the Issue Date.

 

“Regulation S Global Note”
has the meaning set forth in Section 2.01.

 

“Replacement Assets”
has the meaning set forth in Section 4.05(a)(ii).

 

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

 

“Restricted Payments”
has the meaning set forth in Section 4.06.

 

“Restricted Security”
has the meaning set forth in Rule 144(a)(3) under the Securities Act; provided, however, that
the Trustee shall be entitled to request and conclusively rely upon an Opinion
of Counsel with respect to whether any Note is a Restricted Security.

 

“Restricted Subsidiary”
of any Person means any Subsidiary of such Person which at the time of
determination is not an Unrestricted Subsidiary.

 

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

 

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

 

“SEC” means
the Securities and Exchange Commission.

 

22

 

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

 

“Senior Credit Facilities”
means the second amended and restated credit agreement, dated as of August 1,
2005, by and among the Company, the Subsidiaries of the Company identified on
the signature pages thereof and any Subsidiary of the Company that is later
added thereto, the lenders named therein, and J.P. Morgan Chase Bank, N.A., as Administrative
Agent and Collateral Agent and Bank of America, N.A., as Syndication Agent, as
amended, including any deferrals, renewals, extensions, replacements,
refinancings or refundings thereof, or amendments, modifications or supplements
thereto and any agreement providing therefor, whether by or with the same or
any other lender, creditor, group of lenders or group of creditors, and
including related notes, guarantee and note agreements and other instruments
and agreements executed in connection therewith.

 

“Senior Indebtedness”
means, at any date,

 

(a)           all Obligations of the Company under the Senior Credit
Facilities;

 

(b)           all Interest Rate Protection Obligations of the Company;

 

(c)           all Obligations of the Company under standby letters of
credit; and

 

(d)           all other Indebtedness of the Company for borrowed money,
including principal, premium, if any, and interest (including Post-Petition
Interest) on such Indebtedness, unless the instrument under which such
Indebtedness of the Company for money borrowed is Incurred expressly provides
that such Indebtedness for money borrowed is not senior or superior in right of
payment to the Notes, and all renewals, extensions, modifications, amendments
or refinancings thereof.

 

Notwithstanding the foregoing, Senior Indebtedness
shall not include:

 

(a)           to the extent that it may constitute Indebtedness, any
Obligation for Federal, state, local or other taxes;

 

(b)           any Indebtedness among or between the Company and any
Subsidiary of the Company or any Affiliate of the Company or any of such
Affiliate’s Subsidiaries;

 

(c)           to the extent that it may constitute Indebtedness, any
Obligation in respect of any trade payable Incurred for the purchase of goods
or materials, or for services obtained, in the ordinary course of business;

 

(d)           that portion of any Indebtedness that is Incurred in
violation of this Indenture;

 

(e)           Indebtedness evidenced by the Notes;

 

(f)            Indebtedness of the Company that is expressly subordinate
or junior in right of payment to any other Indebtedness of the Company;

 

(g)           to the extent that it may constitute Indebtedness, any
obligation owing under leases (other than Capital Lease Obligations) or
management agreements; and

 

23

 

(h)           any obligation that by operation of law is subordinate to
any general unsecured obligations of the Company.  No Indebtedness shall be deemed to be subordinated
to other Indebtedness solely because such other Indebtedness is secured.

 

“Significant Subsidiary”
means any Restricted Subsidiary of the Company 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 Securitization
Undertakings” means representations, warranties, indemnities and
guarantees of performance entered into by the Company or any Restricted
Subsidiary of the Company which are reasonably customary in an accounts receivable
securitization transaction, it being understood that any Receivables Repurchase
Obligation which is customary for off-balance-sheet receivables financing shall
be deemed to be a Standard Securitization Undertaking.

 

“Stated Maturity”
means, when used with respect to any Note or any installment of interest
thereon, the date specified in such Note as the fixed date on which the
principal of such Note or such installment of interest is due and payable.

 

“Subordinated Indebtedness”
means, with respect to the Company, any Indebtedness of the Company which is expressly
subordinated in right of payment to the Notes.

 

“Subsidiary”
means, with respect to any Person, (a) any corporation of which the outstanding
Voting Equity Interests having at least a majority of the votes entitled to be
cast in the election of directors shall at the time be owned, directly or indirectly,
by such Person, or (b) any other Person of which at least a majority of Voting
Equity Interests are at the time, directly or indirectly, owned by such first
named Person.

 

“Surviving Entity”
has the meaning set forth in Section 5.01.

 

“Surviving Person”
means, with respect to any Person involved in or that makes any Disposition,
the Person formed by or surviving such Disposition or the Person to which such
Disposition is made.

 

“TIA” means
the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as amended, as
in effect on the date of this Indenture (except as provided in Section 10.03)
until such time as this Indenture is qualified under the TIA, and thereafter as
in effect on the date on which this Indenture is qualified under the TIA.

 

“Total Tangible Assets”
means the aggregate amount of assets of the Company and its Restricted
Subsidiaries (less applicable reserves and other properly deductible items)
after deducting therefrom (to the extent otherwise included therein) all goodwill,
trade names, patents, unamortized debt discount and expense and other like
intangibles, all as set forth on the books and records of the Company and its
Restricted Subsidiaries on a consolidated basis in accordance with GAAP.

 

“Trust Officer”
means any officer within the corporate trust department (or any successor group
of the Trustee) including any vice president, assistant vice president,
assistant secretary or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by the persons who
at that time shall be such officers, and also means, with respect to a
particular corporate trust matter, any other officer to whom such trust matter
is referred because of his knowledge of and familiarity with the particular subject
and who shall have direct responsibility for the administration of this
Indenture.

 

24

 

“Trustee”
means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of this Indenture and
thereafter means such successor, including, but not limited to, any corporation
resulting from or surviving any consolidation or merger to which it or its successors
may be a party as provided in Section 7.09.

 

“United States Government
Obligations” means direct non-callable obligations of the United
States of America for the payment of which the full faith and credit of the
United States is pledged.

 

“Unrestricted Notes”
means one or more Notes that do not and are not required to bear the Private
Placement Legend in the form set forth in Exhibit A hereto, including,
without limitation, the Exchange Notes and any Notes registered under the
Securities Act pursuant to and in accordance with the Registration Rights
Agreement.

 

“Unrestricted Subsidiary”
of any Person means:

 

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

 

(2)           any Subsidiary of an Unrestricted Subsidiary.

 

The Board of Directors may designate any Subsidiary
(including any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary owns any Equity Interests of, or owns 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 that:

 

(1)           the Company certifies to the Trustee that such designation
complies with Section 4.06; and

 

(2)           each Subsidiary to be so designated and each of its
Subsidiaries has not at the time of designation, and does not thereafter,
create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable with respect to any Indebtedness pursuant to which the lender
has recourse to any of the assets of the Company or any of its Restricted
Subsidiaries.

 

For purposes of making the determination of whether
any such designation of a Subsidiary as an Unrestricted Subsidiary complies
with Section 4.06, the portion of the fair market value of the net assets
of such Subsidiary of the Company at the time that such Subsidiary is
designated as an Unrestricted Subsidiary that is represented by the interest of
the Company and its Restricted Subsidiaries in such Subsidiary, in each case as
determined in good faith by the Board of Directors of the Company, shall be
deemed to be an Investment.  Such designation
will be permitted only if such Investment would be permitted at such time under
Section 4.06.

 

The Board of Directors may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary only if:

 

(1)           immediately after giving effect to such designation, the
Company is able to Incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) in compliance with Section 4.04; and

 

25

 

(2)           immediately before and immediately after giving effect to
such designation, no Default or Event of Default shall have occurred and be
continuing.

 

Any such designation by the
Board of Directors shall be evidenced to the Trustee by promptly filing with
the Trustee a copy of the Board Resolution giving effect to such designation
and an Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

 

“Unutilized Net Cash
Proceeds” has the meaning set forth in the fourth paragraph of Section 4.05(a).

 

“Voting Equity Interests”
means Equity Interests in a corporation or other Person with voting power under
ordinary circumstances entitling the holders thereof to elect the Board of
Directors or other governing body of such corporation or Person.

 

“Weighted Average Life to
Maturity” means, when applied to any Indebtedness at any date,
the number of years obtained by dividing (a) the sum of the products obtained
by multiplying (i) the amount of each then remaining installment, sinking fund,
serial maturity or other required scheduled payment of principal, including
payment of final maturity, in respect thereof, by (ii) the number of years (calculated
to the nearest one-twelfth) that will elapse between such date and the making
of such payment, by (b) the then outstanding aggregate principal amount of such
Indebtedness.

 

“Wholly Owned Restricted
Subsidiary” means any Wholly Owned Subsidiary of the Company
which at the time of determination is a Restricted Subsidiary of such Person.

 

“Wholly Owned Subsidiary”
means any Subsidiary of the Company all of the outstanding Voting Equity
Interests (other than directors’ qualifying shares) of which are owned,
directly or indirectly, by the Company and/or one or more Wholly Owned Subsidiaries.

 

SECTION
1.02.                                    Incorporation by Reference of Trust Indenture
Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture.  The following TIA terms used
in this Indenture have the following meanings:

 

“Commission”
means the SEC.

 

“indenture to be qualified”
means this Indenture.

 

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

 

“obligor” on the
Notes means the Company, the Guarantors or any other obligor on the Notes or
the Note Guarantees.

 

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 and not otherwise defined herein have the meanings assigned to them
therein.

 

26

 

SECTION
1.03.                                    Rules of Construction.

 

Unless the context otherwise requires:

 

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

 

(2)           an accounting term
not otherwise defined has the meaning assigned to it in accordance with
generally accepted accounting principles in effect from time to time, and any
other reference in this Indenture to “generally accepted accounting principles”
refers to GAAP;

 

(3)           “or” is not exclusive;

 

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

 

(5)           provisions apply to
successive events and transactions; and

 

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

 

ARTICLE
TWO

THE NOTES

 

SECTION
2.01.                                    Form and Dating.

 

The Notes and the Trustee’s
certificate of authentication thereof shall be substantially in the form of Exhibit B
hereto.  The Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage.  The Company and the Trustee shall approve the
form of the Notes and any notation, legend or endorsement on them.  Each Note shall be dated the date of its
authentication.  Each Note shall have an
executed Note Guarantee from each of the Guarantors endorsed thereon
substantially in the form of Exhibit E.

 

The terms and provisions
contained in the Notes and the Note Guarantees shall constitute, and are hereby
expressly made, a part of this Indenture and, to the extent applicable, the Company,
the Guarantors and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound
thereby.

 

Notes offered and sold in
reliance on Rule 144A shall be issued initially in the form of one or more
permanent global Notes, substantially in the form set forth in Exhibit B
hereto (the “144A Global Note”), deposited
with the Trustee, as custodian for the Depository, duly executed by the Company
(and having an executed Note Guarantee from each of the Guarantors endorsed
thereon) and authenticated by the Trustee as hereinafter provided and shall
bear the legends set forth in Exhibit A hereto

 

Notes offered and sold in
offshore transactions in reliance on Regulation S shall be issued initially in
the form of a single permanent global Note in registered form, substantially in
the form set forth in Exhibit B (the “Regulation
S Global Note”), deposited with the Trustee, as custodian for
the Depository, duly executed by the Company (and having an executed Note
Guarantee from each of the Guarantors endorsed thereon) and authenticated by
the Trustee as hereinafter provided and shall bear the legends set forth in Exhibit A.

 

27

 

The initial offer and resale of the Notes shall not
be to Institutional Accredited Investors. 
The Notes resold to Institutional Accredited Investors in connection
with the first transfer made pursuant to Section 2.16(a) shall be issued
initially in the form of a single permanent global Note in registered form,
substantially in the form set forth in Exhibit B (the “IAI Global Note” and, together with
the 144A Global Note and the Regulation S Global Note, the “Initial Global Notes”), deposited
with the Trustee, as custodian for the Depository, duly executed by the Company
(and having an executed Note Guarantee from each of the Guarantors endorsed
thereon) and authenticated by the Trustee as hereinafter provided and shall
bear the legends set forth in Exhibit A.

 

Notes issued after the Issue
Date shall be issued initially in the form of one or more global Notes in
registered form, substantially in the form set forth in Exhibit B,
deposited with the Trustee, as custodian for the Depository, duly executed by
the Company (and having an executed Note Guarantee from each of the Guarantors
endorsed thereon) and authenticated by the Trustee as hereinafter provided and
shall bear any legends required by applicable law (together with the Initial
Global Notes, the “Global Notes”).

 

The aggregate principal
amount of the Global Notes may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for the
Depository, as hereinafter provided. 
Notes issued in exchange for interests in a Global Note pursuant to
Section 2.16 may be issued in the form of permanent certificated Notes in
registered form in substantially the form set forth in Exhibit B
and shall bear the applicable legend, if any, set forth in Exhibit A
(the “Physical Notes”).

 

SECTION 2.02.                                    Execution and Authentication.

 

One Officer of the Company
(who shall have been duly authorized by all requisite corporate actions) shall
sign the Notes for the Company by manual or facsimile signature.  One Officer of each Guarantor (who shall have
been duly authorized by all requisite corporate or comparable actions) shall
sign the Note Guarantee for such Guarantor by manual or facsimile signature.

 

If an Officer whose
signature is on a Note or Note Guarantee, as the case may be, was an Officer at
the time of such execution but no longer holds that office at the time the
Trustee authenticates such Note or Note Guarantee, the Note or Note Guarantee,
as the case may be, shall be valid nevertheless.

 

A Note (and the Note
Guarantees in respect thereof) shall not be valid until an authorized signatory
of the Trustee manually signs the certificate of authentication on the Note.  The signature shall be conclusive evidence
that the Note has been authenticated under this Indenture.

 

The Trustee shall
authenticate (i) on the Issue Date, Notes for original issue in an aggregate
principal amount not to exceed $200,000,000 (the “Initial
Notes”), (ii) Additional Notes (the “Additional
Notes”) having identical terms and conditions to the Initial
Notes, except for issue date, issue price and first interest payment date, in
an unlimited amount (so long as not otherwise prohibited by the terms of this
Indenture, including, without limitation, Section 4.04), (iii) Unrestricted
Notes (x) in exchange for a like principal amount of Initial Notes or (y) in exchange
for a like principal amount of Additional Notes in each case upon a written
order of the Company in the form of a certificate of an Officer of the Company
(an “Authentication Order”).  Each such Authentication Order shall specify
the amount of Notes to be authenticated and the date on which the Notes are to
be authenticated, whether the Notes are to be Initial Notes, Unrestricted Notes
or Additional Notes and whether the Notes are to be issued as Physical Notes or
Global Notes or such other information as the Trustee may reasonably
request.  In addition, with respect to
authentication pursuant to clause (ii) or (iii) of the first sentence of this
paragraph, such Authentication Order from the Company shall be accompanied by
an Opinion of Counsel of the Company in a form reasonably satisfactory to the
Trustee.

 

28

 

Notwithstanding the
foregoing, all Notes issued under this Indenture shall vote and consent
together on all matters (as to which any of such Notes may vote or consent) as
one class and no series of Notes will have the right to vote or consent as a
separate class on any matter.

 

The Trustee may appoint an
authenticating agent reasonably acceptable to the Company to authenticate Notes.  Unless otherwise provided in the appointment,
an authenticating agent may authenticate Notes whenever the Trustee may do so
upon an Authentication Order.  Each
reference in this Indenture to authentication by the Trustee includes authentication
by such agent.  An authenticating agent
shall have the same rights as an Agent to deal with the Company and Affiliates
of the Company.

 

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

 

SECTION
2.03.                                    Registrar and Paying Agent.

 

The Company shall maintain
an office or agency, which may be in the Borough of Manhattan, The City of New
York, where (a) Notes may be presented or surrendered for registration of
transfer or for exchange (the “Registrar”),
(b) Notes may be presented or surrendered for payment (the “Paying Agent”) and (c) notices
and demands in respect of the Notes and this Indenture may be served.  The Company may also from time to time designate
one or more other offices or agencies where the Notes may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain or cause to be maintained an office or agency for
such purposes.  The Company may act as
Registrar or Paying Agent.  The Registrar
shall keep a register of the Notes and of their transfer and exchange.  The Company, upon notice to the Trustee, may
have one or more co-registrars and one or more additional paying agents
reasonably acceptable to the Trustee. 
The term “Registrar” includes any co-registrar and the term “Paying
Agent” includes any additional paying agent. 
The Company initially appoints the Trustee as Registrar and Paying Agent
until such time as the Trustee has resigned or a successor has been appointed
and the Trustee hereby agrees to so initially act.

 

The Company shall enter into
an appropriate agency agreement with any Agent not a party to this Indenture,
which agreement shall implement the provisions of this Indenture that relate to
such Agent.  The Company shall notify the
Trustee, in advance, 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.

 

SECTION
2.04.                                    Paying Agent To Hold Assets in Trust.

 

The Company shall require
each Paying Agent other than the Trustee to agree in writing that each Paying
Agent shall hold in trust for the benefit of Holders or the Trustee all assets
held by the Paying Agent for the payment of principal of, premium, if any, or
interest on the Notes, and shall notify the Trustee of any Default by the
Company in making any such payment.  The
Company at any time may require a Paying Agent to distribute all assets held by
it to the Trustee and account for any assets disbursed, and the Trustee may at
any time during the continuance of any payment Default, upon written request to
a Paying Agent, require such Paying Agent to distribute all assets held by it
to the Trustee and to account for any assets distributed.  Upon distribution to the Trustee of all
assets that shall have been delivered by the Company to the Paying Agent (if
other than the Company), the Paying Agent shall have no further liability for
such assets.  If the Company or any of
its Affiliates acts as Paying Agent, it shall, on or before each due date of
the principal of, premium, if any, or interest on the Notes, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum sufficient to
pay the principal of, premium, if any, or interest so becoming due until such
sums shall be paid to such Persons or otherwise disposed of as herein provided
and will promptly notify the Trustee of its action or failure so to act.

 

29

 

SECTION
2.05.                                    Holder Lists.

 

The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders.  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee before each Interest Record Date and at
such other times as the Trustee may request in writing all information in the
possession or control of the Company as to the names and addresses of Holders,
which list may be conclusively relied upon by the Trustee.

 

SECTION
2.06.                                    Transfer and Exchange.

 

Subject to Sections 2.15 and
2.16, when Notes are presented to the Registrar with a request to register the
transfer of such Notes or to exchange such Notes for an equal principal amount
of Notes of other authorized denominations, the Registrar shall register the
transfer or make the exchange as requested if its requirements for such
transaction are met; provided, however, that the Notes surrendered for transfer or exchange
shall be duly endorsed or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Registrar, duly executed by the Holder
thereof or his or her attorney duly authorized in writing.  To permit registrations of transfers and
exchanges, the Company shall execute and the Trustee shall authenticate Notes
at the Registrar’s request.  No service
charge shall be made for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith.

 

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

 

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

 

SECTION
2.07.                                    Replacement Notes.

 

If a mutilated Note is
surrendered to the Trustee or if the Holder of a Note claims that the Note has
been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Note if the Trustee’s requirements for
replacement of Notes are met.  If required
by the Company or the Trustee, such Holder must provide an indemnity bond or
other indemnity, sufficient in the judgment of both the Company and the
Trustee, to protect the Company, the Trustee and any Agent from any loss,
liability, cost or expense which any of them may suffer if a Note is
replaced.  The Company may charge such
Holder for its reasonable out-of-pocket expenses in replacing a Note, including
reasonable fees and expenses of counsel.

 

Every replacement Note is an
additional obligation of the Company and every replacement Note Guarantee shall
constitute an additional obligation of the Guarantor thereof.

 

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

 

30

 

SECTION
2.08.                                    Outstanding Notes.

 

Notes outstanding at any
time are all the Notes that have been authenticated by the Trustee except those
canceled by it, those delivered to it for cancellation and those described in
this Section 2.08 as not outstanding. 
Subject to Section 2.09, a Note does not cease to be outstanding because
the Company or any of its Affiliates holds the Note.

 

If a Note is replaced pursuant
to Section 2.07 (other than a mutilated Note surrendered for replacement), it
ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced Note is held by a bona fide
purchaser.  A mutilated Note ceases to be
outstanding upon surrender of such Note and replacement thereof pursuant to
Section 2.07.

 

If on a Redemption Date,
Purchase Date or the Final Maturity Date the Paying Agent holds money
sufficient to pay all of the principal, premium, if any, and interest due on
the Notes payable on that date, and is not prohibited from paying such money to
the Holders pursuant to the terms of this Indenture, then on and after that
date such Notes cease to be outstanding and interest on them ceases to accrue.

 

SECTION
2.09.                                    Treasury Notes.

 

In determining whether the
Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Company or any of its
Affiliates shall be disregarded, except that, for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Notes that a Trust Officer of the Trustee actually knows are
so owned by the Company or any of its Affiliates shall be disregarded.

 

The Company shall promptly
notify the Trustee, in writing, when it or any of its Affiliates repurchases or
otherwise acquires Notes, and of the aggregate principal amount of such Notes
so repurchased or otherwise acquired.

 

SECTION
2.10.                                    Temporary Notes.

 

Until definitive Notes are
ready for delivery, the Company may prepare and the Trustee shall authenticate
temporary (printed, typewritten or lithographed) Notes upon receipt of an Authentication
Order pursuant to Section 2.02.

 

Temporary Notes shall be
substantially in the form of definitive Notes but may have variations that the
Company considers appropriate for temporary Notes.  Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate upon receipt of an Authentication Order
pursuant to Section 2.02 definitive Notes in exchange for temporary Notes.

 

SECTION
2.11.                                    Cancellation.

 

The Company at any time may
deliver Notes to the Trustee for cancellation. 
The Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for transfer, exchange or payment.  The Trustee, or at the direction of the
Trustee, the Registrar or the Paying Agent, and no one else, shall cancel and dispose
of all Notes surrendered for transfer, exchange, payment or cancellation in its
customary manner.  Subject to Section
2.07, the Company may not issue new Notes to replace Notes that it has paid or
delivered to the Trustee for cancellation. 
If the Company shall acquire any of the Notes, such acquisition shall
not operate as a redemption or satisfaction of the Indebtedness represented

 

31

 

by such Notes unless and
until the same are surrendered to the Trustee for cancellation pursuant to this
Section 2.11.

 

SECTION
2.12.                                    Defaulted Interest.

 

The Company shall pay
interest on overdue principal from time to time on demand at the rate of
interest then borne by the Notes.  The
Company shall, to the extent lawful, pay interest on overdue installments of
premium, if any, or interest (without regard to any applicable grace periods)
from time to time on demand at the rate of interest then borne by the Notes.

 

If the Company defaults in a
payment of interest on the Notes, it shall pay the defaulted interest, plus (to
the extent lawful) any interest payable on the defaulted interest to the
Persons who are Holders on a subsequent special record date, which date shall
be the fifteenth day preceding the date fixed by the Company for the payment of
defaulted interest or the next succeeding Business Day if such date is not a
Business Day.  At least 15 days before
the subsequent special record date, the Company shall mail to each Holder, with
a copy to the Trustee, a notice that states the subsequent special record date,
the payment date and the amount of defaulted interest, and interest payable on
such defaulted interest, if any, to be paid.

 

Notwithstanding the
foregoing, any interest which is paid prior to the expiration of the 30-day
period set forth in Section 6.01(b) shall be paid to Holders as of the Interest
Record Date for the Interest Payment Date for which interest has not been paid.

 

SECTION
2.13.                                    CUSIP and ISIN Numbers.

 

The Company in issuing the
Notes may use “CUSIP” or “ISIN” numbers, and, if so, the Trustee shall use the “CUSIP”
or “ISIN” numbers in notices of redemption or exchange as a convenience to
Holders; provided, however, that any such notice
may state that no representation is made as to the correctness or accuracy of
the “CUSIP” or “ISIN” numbers printed in the notice or on the Notes, and that
reliance may be placed only on the other identification numbers printed on the
Notes.  The Company will promptly notify
the Trustee of any change in the “CUSIP” or “ISIN” numbers.

 

SECTION
2.14.                                    Deposit of Moneys.

 

Prior to 11:00 a.m. New York
City time on each Interest Payment Date, Redemption Date, Purchase Date and the
Final Maturity Date, the Company shall deposit with the Paying Agent in
immediately available funds money in U.S. legal tender sufficient to make cash
payments, if any, due on such Interest Payment Date, Redemption Date, Purchase
Date or Final Maturity Date, as the case may be, in a timely manner which
permits the Paying Agent to remit payment to the Holders on such Interest
Payment Date, Redemption Date, Purchase Date or Final Maturity Date, as the
case may be.

 

SECTION
2.15.                                    Book-Entry Provisions for Global Notes.

 

(a)           The Global Notes initially shall (i) be registered in the
name of the Depository or the nominee of such Depository, (ii) be delivered to
the Trustee as custodian for such Depository and (iii) bear legends as set
forth in Exhibit A, as applicable.

 

Members of, or participants
in, the Depository (“Participants”)
shall have no rights under this Indenture with respect to any Global Note held
on their behalf by the Depository, or the Trustee as its custodian, or under
the Global Note, and the Depository may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner of the Global
Note for all purposes whatsoever.

 

32

 

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 Participants, the operation of customary practices governing
the exercise of the rights of a Holder of any Note.

 

(b)           Transfers of Global Notes shall be limited to transfers in
whole, but not in part, to the Depository, its successors or their respective
nominees.  Interests of beneficial owners
in the Global Notes may be transferred or exchanged for Physical Notes in accordance
with the rules and procedures of the Depository and the provisions of
Section 2.16.  In addition, Physical
Notes shall be transferred to all beneficial owners in exchange for their
beneficial interests in Global Notes if (i) the Depository notifies the Company
at any time that it is unwilling or unable to act as Depository for any Global
Note and a successor Depository is not appointed by the Company within 90 days
of such notice, (ii) the Depository ceases to be registered as a clearing
agency under the Exchange Act and a successor Depository is not appointed by
the Company within 90 days of such cessation or (iii) a Default or Event of Default
has occurred and is continuing and the Registrar has received a written request
from any owner of a beneficial interest in a Global Note to issue Physical
Notes.  Upon any issuance of a Physical
Note in accordance with this Section 2.15(b) the Trustee is required to
register such Physical Note in the name of, and cause the same to be delivered
to, such person or persons (or the nominee of any thereof).  All such Physical Notes shall bear the
applicable legends, if any, set forth in Exhibit A hereto.

 

(c)           In connection with any transfer or exchange of a portion
of the beneficial interest in a Global Note to beneficial owners pursuant to
paragraph (b) of this Section 2.15, the Registrar shall (if one or more
Physical Notes are to be issued) reflect on its books and records the date and
a decrease in the principal amount of such Global Note in an amount equal to
the principal amount of the beneficial interest in the Global Note to be
transferred, and the Company shall execute, and the Trustee shall authenticate
and deliver, one or more Physical Notes of authorized denominations in an
aggregate principal amount equal to the principal amount of the beneficial
interest in the Global Note so transferred.

 

(d)           In connection with the transfer of a Global Note as an
entirety to beneficial owners pursuant to paragraph (b) of this
Section 2.15, such Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and (i) the Company shall execute, (ii) the
Guarantors shall execute notations of Note Guarantees thereon and (iii) the
Trustee shall upon written instructions from the Company authenticate and
deliver, to each beneficial owner identified by the Depository in exchange for
its beneficial interest in such Global Note, an equal aggregate principal
amount of Physical Notes of authorized denominations.

 

(e)           Any Physical Note constituting a Restricted Security
delivered in exchange for an interest in a Global Note pursuant to paragraph
(b) or (c) of this Section 2.15 shall, except as otherwise provided by Section 2.16,
bear the applicable legends, if any, set forth in Exhibit A hereto.

 

(f)            The Holder of any Global Note may grant proxies and
otherwise authorize any Person, including Participants and Persons that may
hold interests through Participants, to take any action which a Holder is
entitled to take under this Indenture or the Notes.

 

SECTION
2.16.                                    Special Transfer and Exchange Provisions.

 

(a)           Transfers to Non-QIB Institutional Accredited Investors.
 The following provisions shall apply
with respect to the registration of any proposed transfer of a Restricted
Security to any Institutional Accredited Investor which is not a QIB:

 

33

 

(1)           the Registrar shall
register the transfer of any Restricted Security, if (x) the requested transfer
is after the second anniversary of the Issue Date; provided,
however, that neither the Company nor
any Affiliate of the Company has held any beneficial interest in such Restricted
Security, or portion thereof, at any time on or prior to the second anniversary
of the Issue Date, or (y) the proposed transferee has delivered to the
Registrar a certificate substantially in the form of Exhibit C
hereto and any legal opinions and certifications as may be reasonably requested
by the Trustee and the Company;

 

(2)           if the proposed
transferee is a Participant and the Notes to be transferred consist of Physical
Notes which after transfer are to be evidenced by an interest in the IAI Global
Note, upon receipt by the Registrar of the Physical Note and (x) written
instructions given in accordance with the Depository’s and the Registrar’s
procedures and (y) the certificate, if required, referred to in clause (y) of
paragraph (i) above (and any legal opinion or other certifications), the
Registrar shall register the transfer and reflect on its books and records the
date and an increase in the principal amount of the IAI Global Note in an
amount equal to the principal amount of Physical Notes to be transferred, and
the Registrar shall cancel the Physical Notes so transferred; and

 

(3)           if the proposed
transferor is a Participant seeking to transfer an interest in a Global Note,
upon receipt by the Registrar of (x) written instructions given in accordance
with the Depository’s and the Registrar’s procedures and (y) the certificate,
if required, referred to in clause (y) of paragraph (1) above, the Registrar
shall register the transfer and reflect on its books and records the date and
(A) a decrease in the principal amount of the Global Note from which such
interests are to be transferred in an amount equal to the principal amount of
the Global Notes to be transferred and (B) an increase in the principal amount
of the IAI Global Note in an amount equal to the principal amount of the Global
Note to be transferred.

 

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

 

(1)           the Registrar shall
register the transfer of any Restricted Security, if (x) the requested transfer
is after the second anniversary of the Issue Date; provided,
however, that neither the Company nor
any Affiliate of the Company has held any beneficial interest in such Restricted
Security, or portion thereof, at any time on or prior to the second anniversary
of the Issue Date, or (y) such transfer is being made by a proposed transferor
who has advised the Company and the Registrar in writing that the sale has been
made in compliance with the provisions of Rule 144A to a transferee who
has advised the Company and the Registrar in writing that it is purchasing the
Note for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a QIB within the
meaning of Rule 144A, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as it has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon its foregoing representations in
order to claim the exemption from registration provided by Rule 144A;

 

(2)           if the proposed
transferee is a Participant and the Notes to be transferred consist of Physical
Notes which after transfer are to be evidenced by an interest in the 144A
Global Note, upon receipt by the Registrar of the Physical Note and written
instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall register the transfer and reflect on its book
and records the date and an increase in the principal amount of the 144A Global
Note in an amount equal to the principal amount of Physical Notes to be
transferred, and the Registrar shall cancel the Physical Notes so transferred;
and

 

34

 

(3)           if the proposed
transferor is a Participant seeking to transfer an interest in the IAI Global
Note or the Regulation S Global Note, upon receipt by the Registrar of written
instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall register the transfer and reflect on its books
and records the date and (A) a decrease in the principal amount of the IAI
Global Note or the Regulation S Global Note, as the case may be, in an amount
equal to the principal amount of the Notes to be transferred and (B) an
increase in the principal amount of the 144A Global Note in an amount equal to
the principal amount of the Notes to be transferred.

 

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

 

(1)           the Registrar shall
register any proposed transfer of a Restricted Security to a Non-U.S. Person
upon receipt of a certificate substantially in the form of Exhibit D
from the pro-posed transferor and such certifications, legal opinions and other
information as the Trustee or the Company may reasonably request; and

 

(2)           (a) if the proposed
transferor is a Participant holding a beneficial interest in the Rule 144A
Global Note or the IAI Global Note or the Restricted Security to be transferred
consists of Physical Notes, upon receipt by the Registrar of (x) the documents
required by paragraph (1) above and (y) instructions in accordance with the
Depository’s and the Registrar’s procedures, the Registrar shall reflect on its
books and records the date and a decrease in the principal amount of the
Rule 144A Global Note or the IAI Global Note, as the case may be, in an
amount equal to the principal amount of the beneficial interest in the
Rule 144A Global Note or the IAI Global Note, as the case may be, to be
transferred or cancel the Physical Notes to be transferred, and (b) if the proposed
transferee is a Participant, upon receipt by the Registrar of instructions
given in accordance with the Depository’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and an increase in
the principal amount of the Regulation S Global Note in an amount equal to the
principal amount of the Rule 144A Global Note, the IAI Global Note or the
Physical Notes, as the case may be, to be transferred.

 

(d)           Exchange Offer. 
Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02, the Trustee shall
authenticate one or more Global Notes not bearing the Private Placement Legend
in an aggregate principal amount equal to the principal amount of the
beneficial interests in the Initial Global Notes tendered for acceptance by
Persons that certify in the applicable letters of transmittal that (x) they are
not broker-dealers, (y) they are not participating in a distribution of the
Exchange Notes and (z) they are not affiliates (as defined in Rule 144) of
the Company, and accepted for exchange in the Exchange Offer.

 

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

 

(f)            Private Placement Legend.  Upon the transfer, exchange or replacement of
Notes not bearing the Private Placement Legend, the Registrar shall deliver
Notes that do not bear the Private Placement Legend unless otherwise required
by applicable law.  Upon the transfer,
exchange or replacement of Notes bearing the Private Placement Legend, the
Registrar shall deliver only Notes that bear the Private Placement Legend
unless (i) there is delivered to the Trustee an Opinion of Counsel reasonably 

 

35

 

satisfactory to the Company and the Trustee to the effect that neither
such legend nor the related restrictions on transfer are required in order to
maintain compliance with the provisions of the Securities Act or (ii) such Note
has been offered and sold (including pursuant to the Exchange Offer) pursuant
to an effective registration statement under the Securities Act.

 

(g)           General.  By its acceptance of any Note bearing the
Private Placement Legend, each Holder of such a Note acknowledges the
restrictions on transfer of such Note set forth in this Indenture and in the
Private Placement Legend and agrees that it will transfer such Note only as
provided in this Indenture.

 

The Registrar shall retain copies of all letters,
notices and other written communications received pursuant to Section 2.15
or this Section 2.16.  The Company
shall have the right to inspect and make copies of all such letters, notices or
other written communications at any reasonable time upon the giving of reasonable
prior written notice to the Registrar.

 

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

 

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

 

(h)           Cancellation and/or Adjustment of Global Note.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Physical Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in
part, each such Global Note shall be returned to or retained and canceled by
the Trustee in accordance with Section 2.11 hereof.  At any time prior to such cancellation, if
any beneficial interest in a Global Note is exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Physical Notes, the principal amount of Notes
represented by such Global Note shall be reduced accordingly and an endorsement
shall be made on such Global Note by the Trustee or by the Depository at the
direction of the Trustee to reflect such reduction; and if the beneficial
interest is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Note,
such other Global Note shall be increased accordingly and an endorsement shall
be made on such Global Note by the Trustee or by the Depository at the
direction of the Trustee to reflect such increase.

 

ARTICLE THREE

REDEMPTION

 

SECTION
3.01.                                    Notices to Trustee.

 

If the Company wants to redeem Notes pursuant to
paragraph 5 of the Notes at the applicable redemption price set forth thereon,
it shall notify the Trustee in writing of the Redemption Date and the principal
amount of Notes to be redeemed. The Company shall give such notice to the
Trustee at least 30 days before the Redemption Date (unless a shorter notice
shall be agreed to by the Trustee in writing), together with an Officers’
Certificate stating that such redemption will comply with the conditions contained
herein.

 

36

 

SECTION
3.02.                                    Selection of Notes To Be Redeemed.

 

If less than all of the Notes are to be redeemed
pursuant to paragraph 5(a) or 5(c) of the Notes, the Trustee shall select the Notes
to be redeemed in compliance with the requirements of the national securities
exchange, if any, on which the Notes are listed or, if the Notes are not then
listed on a national securities exchange, on a pro rata
basis, by lot or in such other manner as the Trustee in its sole discretion
shall deem fair and appropriate. 
Selection of the Notes to be redeemed pursuant to paragraph 5(b) of the Notes
shall be made by the Trustee only on a pro rata basis
or on as nearly a pro rata basis as is practicable
(subject to the procedures of the Depository) based on the aggregate principal
amount of Notes held by each Holder.  The
Trustee shall make the selection from the Notes then outstanding, subject to
redemption and not previously called for redemption.

 

The Trustee may select for redemption pursuant to
paragraph 5 of the Notes portions of the principal amount of Notes that have
denominations equal to or larger than $1,000 principal amount.  Notes and portions of them that the Trustee
so selects shall be in amounts of $1,000 principal amount or integral multiples
thereof. Provisions of this Indenture that apply to Notes called for redemption
also apply to portions of Notes called for redemption.

 

SECTION
3.03.                                    Notice of Redemption.

 

At least 30 days but not more than 60 days before a
Redemption Date, the Company shall mail a notice of redemption by first-class
mail to each Holder whose Notes are to be redeemed at such Holder’s registered
address; provided, however,
that notice of a redemption pursuant to paragraph 5(b) of the Notes shall be
mailed to each Holder whose Notes are to be redeemed no later than 60 days
after the date of the Closing of the relevant Equity Offering of the Company.

 

Each notice of redemption shall identify the Notes
to be redeemed (including the CUSIP or ISIN number thereon) and shall state:

 

(1)           the Redemption Date;

 

(2)           the redemption
price;

 

(3)           the name and address
of the Paying Agent to which the Notes are to be surrendered for redemption;

 

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

 

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

 

(6)           in the case of any
redemption pursuant to paragraph 5 of the Notes, if any Note is being redeemed
in part, the portion of the principal amount of such Note to be redeemed and
that, after the Redemption Date, upon surrender of such Note, a new Note or Notes
in principal amount equal to the unredeemed portion thereof will be issued;

 

(7)           the section of this
Indenture or the Notes pursuant to which they are being redeemed; and

 

37

 

(8)           that on the
Redemption Date the redemption price will become due and payable upon each
security, and that interest thereon shall cease to accrue from and after said
date.

 

At the Company’s written request, the Trustee shall
give the notice of redemption on behalf of the Company, in the Company’s name
and at the Company’s expense; provided that
such request by the Company to the Trustee is received by the Trustee at least
ten (10) business days prior to the date the Trustee is requested to give
notice to the Holders whose Notes are to be redeemed.

 

SECTION
3.04.                                    Effect of Notice of Redemption.

 

Once a notice of redemption is mailed, Notes called
for redemption become due and payable on the Redemption Date and at the
redemption price. Upon surrender to the Paying Agent, such Notes shall be paid
at the redemption price, plus accrued interest thereon, if any, to the Redemption
Date, but interest installments whose maturity is on or prior to such
Redemption Date shall be payable to the Holders of record at the close of business
on the relevant Interest Record Date.

 

SECTION
3.05.                                    Deposit of Redemption Price.

 

Prior to 11:00 a.m. New York City time on the
Redemption Date, the Company shall deposit with the Paying Agent (or if the
Company is its own Paying Agent, shall, on or before the Redemption Date, segregate
and hold in trust) money in U.S. legal tender sufficient to pay the redemption
price of and accrued interest and premium, if any, on all Notes to be redeemed
on that date other than Notes or portions thereof called for redemption on that
date which have been delivered by the Company to the Trustee for cancellation.

 

If any Note surrendered for redemption in the manner
provided in the Notes shall not be so paid on the Redemption Date due to the
failure of the Company to deposit with the Paying Agent money sufficient to pay
the redemption price thereof, the principal and accrued and unpaid interest, if
any, thereon shall, until paid or duly provided for, bear interest as provided
in Sections 2.12 and 4.01 with respect to any payment default.

 

SECTION
3.06.                                    Notes Redeemed in Part.

 

Upon surrender of a Note that is redeemed in part,
the Trustee shall authenticate for the Holder a new Note equal in principal
amount to the unredeemed portion of the Note surrendered.

 

ARTICLE
FOUR

COVENANTS

 

SECTION
4.01.                                    Payment of Notes.

 

The Company shall pay the principal of, premium, if
any, and interest on the Notes in the manner provided in the Notes and the
Registration Rights Agreement. An installment of principal or interest shall be
considered paid on the date due if the Trustee or Paying Agent (other than the
Company or any of its Affiliates) holds on that date money designated for and
sufficient to pay the installment in full and is not prohibited from paying
such money to the Holders of the Notes pursuant to the terms of this Indenture.

 

38

 

The Company shall pay cash interest on overdue
principal at the same rate per annum borne by the Notes. The Company shall pay
cash interest on overdue installments of interest at the same rate per annum borne by the Notes, to the extent lawful, as provided
in Section 2.12.

 

SECTION
4.02.                                    Maintenance of Office or Agency.

 

The Company shall maintain an office or agency where
Notes may be surrendered for registration of transfer or exchange or for
presentation for payment and where notices and demands to or upon the Company
in respect of the Notes and this Indenture may be served.  The Company shall give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the address of the Trustee set forth in Article Thirteen.  The Company hereby initially designates the
Trustee at its address set forth in Section 13.02 as its office or agency
in The Borough of Manhattan, The City of New York, for such purposes.

 

SECTION
4.03.                                    Transactions with Affiliates.

 

(a)           The Company shall not, and shall not cause or permit any
Restricted Subsidiary of the Company to, directly or indirectly, conduct any
business or enter into any transaction (or series of related transactions) with
or for the benefit of any of their respective Affiliates or any officer,
director or employee of the Company or any Restricted Subsidiary of the Company
(each, an “Affiliate Transaction”),
unless (i) such Affiliate Transaction is on terms which are no less favorable
to the Company or such Restricted Subsidiary, as the case may be, than would be
available in a comparable transaction with an unaffiliated third party and (ii)
if such Affiliate Transaction (or series of related Affiliate Transactions)
involves aggregate payments or other consideration having a Fair Market Value
in excess of $15.0 million, such Affiliate Transaction shall have been approved
by a majority of the disinterested members of the Board of Directors of the Company
and the Board of Directors shall have determined that such Affiliate
Transaction complies with the foregoing provisions.  In addition, any Affiliate Transaction
involving aggregate payments or other consideration having a Fair Market Value
in excess of $30.0 million will also require a written opinion from an
Independent Financial Advisor stating that the terms of such Affiliate
Transaction are fair, from a financial point of view, to the Company or its
Restricted Subsidiaries involved in such Affiliate Transaction, as the case may
be.

 

(b)           Notwithstanding the provisions of paragraph (a), the
restrictions set forth in this covenant shall not apply to

 

(i)            transactions with
or among the Company and any Restricted Subsidiary or between or among
Restricted Subsidiaries, so long as no affiliate of the Company (other than a
Restricted Subsidiary of the Company) has an ownership interest in such
Restricted Subsidiary;

 

(ii)           reasonable fees and
compensation (whether in cash, Equity Interests or otherwise) paid to, and
indemnity provided on behalf of, officers, directors, employees, consultants or
agents of the Company or any Restricted Subsidiary of the Company as determined
in good faith by the Company’s Board of Directors;

 

(iii)          loans and advances
permitted by clause (k) of the definition of “Permitted Investments”;

 

(iv)          any transaction with
the Company, a Restricted Subsidiary of the Company or joint venture or similar
entity which would constitute an Affiliate Transaction solely because the

 

39

 

Company
or a Restricted Subsidiary owns an equity interest in or otherwise controls
such Restricted Subsidiary, joint venture or similar entity;

 

(v)           any transactions
undertaken pursuant to any contractual obligations in existence on the Issue
Date (as in effect on the Issue Date) or any transaction undertaken pursuant to
an amendment or replacement of a contractual agreement in existence on the
Issue Date so long as any such amendment or replacement agreement is not more
disadvantageous to the Holders in any material respect than the original
agreement as in effect on the Issue Date;

 

(vi)          transactions
effected as part of a Qualified Receivables Transaction;

 

(vii)         any Restricted Payments
made in compliance with Section 4.06;

 

(viii)        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 or similar employee benefit plans, in the ordinary course
of business and approved by the Board of Directors of the Company; and

 

(ix)           transactions with
Unrestricted Subsidiaries, customers, clients, suppliers, joint venture
partners or purchasers or sellers of goods or services, or lessors or lessees
of property, in each case in the ordinary course of business and otherwise in
compliance with the terms of this Indenture, which are materially no less
favorable to the Company or its Restricted Subsidiaries than those that would
have been obtained in a comparable transaction by the Company or such
Restricted Subsidiary with an unrelated Person, as determined in good faith by
the Board of Directors of the Company.

 

SECTION
4.04.                                    Limitation on Indebtedness.

 

The Company shall not, and shall not cause or permit
any Restricted Subsidiary to, directly or indirectly, Incur any Indebtedness
(including Acquired Indebtedness), except for Permitted Indebtedness; provided, however, that
the Company or any of its Restricted Subsidiaries that is, or upon such
incurrence becomes, a Guarantor may Incur Indebtedness if, at the time of and
immediately after giving pro forma effect to such Incurrence of Indebtedness
and the application of the proceeds therefrom, the Consolidated Fixed Charge
Coverage Ratio would be greater than 2.0 to 1.0.

 

The limitations contained in the preceding paragraph
will not apply to the Incurrence of any of the following (collectively, “Permitted Indebtedness”), each of
which shall be given independent effect:

 

(a)           Indebtedness under the Notes (not
including any Additional Notes) and the Note Guarantees and the Exchange Notes issued
in a registered exchange offer pursuant to the Registration Rights Agreement,
and the Note Guarantees thereof;

 

(b)           Indebtedness under any Credit
Facility of the Company and its Restricted Subsidiaries that are Guarantors in
an aggregate principal amount at any one time outstanding not to exceed $550.0
million;

 

(c)           Indebtedness of any Restricted
Subsidiary of the Company owed to and held by the Company or any Restricted
Subsidiary, and Indebtedness of the Company owed to and held by any Restricted
Subsidiary that is unsecured and (if such Subsidiary is not a Guarantor)
subordinated in right of payment to the payment and performance of the Company’s
obligations under

 

40

 

any Senior Indebtedness, this Indenture and the Notes; provided, however, that
an Incurrence of Indebtedness that is not permitted by this clause (c) shall be
deemed to have occurred upon (i) any sale or other disposition of any
Indebtedness of the Company or any Restricted Subsidiary of the Company
referred to in this clause (c) to a Person (other than the Company or a
Restricted Subsidiary) or (ii) any sale or other disposition of Equity
Interests of any Restricted Subsidiary which (x) holds Indebtedness of the
Company or another Restricted Subsidiary and (y) results in such Subsidiary ceasing
to be a Restricted Subsidiary;

 

(d)           Indebtedness under Interest Rate
Protection Obligations entered into to hedge interest rate exposure and not for
speculative purposes;

 

(e)           Capital Lease Obligations and
Purchase Money Indebtedness of the Company or any Restricted Subsidiary of the
Company in an aggregate principal amount at any one time outstanding not to
exceed the greater of (x) $50.0 million and (y) 5.0% of Total Tangible Assets;

 

(f)            Indebtedness under Currency
Agreements; provided, however,
that (i) such Currency Agreements have been entered into for bona fide business
purposes and not for speculation and (ii) that in the case of Currency
Agreements which relate to Indebtedness, such Currency Agreements do not increase
the Indebtedness of the Company and its Restricted Subsidiaries outstanding
other than as a result of fluctuations in foreign currency exchange rates or by
reason of fees, indemnities and compensation payable thereunder;

 

(g)           Indebtedness to the extent
representing a replacement, renewal, refinancing or extension (collectively, a “refinancing”) of outstanding Indebtedness
Incurred under the first paragraph of this Section 4.04 or clause (a), (g) or
(n) of this paragraph; provided, however, that (i) any such refinancing shall not exceed the
sum of the principal amount (or accreted amount, if less) of the Indebtedness
being refinanced, plus the amount of accrued interest thereon, plus the amount
of any reasonably determined prepayment premium necessary to accomplish such
refinancing and such reasonable fees and expenses incurred in connection
therewith, (ii) Indebtedness representing a refinancing of Indebtedness other
than Senior Indebtedness shall have a Weighted Average Life to Maturity equal
to or greater than the Weighted Average Life to Maturity of the Indebtedness
being refinanced, and (iii) Indebtedness of the Company may only be refinanced
by Indebtedness of the Company and Indebtedness of a Subsidiary of the Company
may only be refinanced by Indebtedness of Subsidiaries or by the Company;

 

(h)           guarantees by a Restricted Subsidiary
of the Company of Indebtedness Incurred by the Company or any other Restricted
Subsidiary so long as the Incurrence of such Indebtedness is otherwise
permitted by the terms of this Indenture;

 

(i)            Indebtedness of the Company or any
of its Restricted Subsidiaries in respect of performance bonds, bankers’ acceptances,
workers’ compensation claims, surety or appeal bonds, payment obligations in
connection with self-insurance or similar obligations, and bank overdrafts (and
letters of credit in respect thereof) in the ordinary course of business;

 

(j)            Indebtedness of the Company or any
Restricted Subsidiary consisting of guarantees, indemnities or obligations in
respect of purchase price adjustments in connection with the acquisition or
disposition of assets;

 

(k)           Indebtedness of any Person that
becomes a Restricted Subsidiary after the date hereof; provided
that such Indebtedness exists at the time such Person becomes a Restricted

 

41

 

Subsidiary and is not created in contemplation of or in connection with
such Person becoming a Restricted Subsidiary;

 

(l)            Indebtedness of any Foreign
Subsidiaries that are Restricted Subsidiaries plus Indebtedness of any domestic
Restricted Subsidiaries that are not Guarantors, in an aggregate amount at any
one time outstanding not to exceed the greater of (x) $75.0 million and (y) 35%
of Foreign Subsidiary Total Tangible Assets;

 

(m)          Non-Recourse Receivables Subsidiary
Indebtedness (as defined in the definition of “Receivables Subsidiary”)
incurred by any Receivables Subsidiary in a Qualified Receivables Transaction;

 

(n)           other Indebtedness of the Company and
its Restricted Subsidiaries outstanding on the Issue Date; and

 

(o)           additional Indebtedness of the
Company and its Restricted Subsidiaries in an aggregate principal amount not to
exceed $75.0 million at any one time outstanding.

 

For purposes of determining compliance with any
dollar-denominated restriction on the incurrence of Indebtedness denominated in
a foreign currency, the dollar-equivalent principal amount of such indebtedness
incurred pursuant thereto shall be calculated based on the relevant currency
exchange rate in effect on the date that such Indebtedness was incurred.

 

For purposes of determining compliance with this
Section 4.04, in the event that an item of Indebtedness meets the criteria of
more than one of the categories of Permitted Indebtedness described in clauses
(a) through (o) above or is entitled to be incurred pursuant to the
Consolidated Fixed Charge Coverage Ratio provisions of this Section 4.04, the
Company may, in its sole discretion, divide or classify (or later redivide or reclassify)
such item of Indebtedness in any manner that complies with this Section 4.04; provided that all Indebtedness outstanding under the Senior
Credit Facilities on the Issue Date up to the maximum amount permitted under
clause (b) above shall be deemed to have been incurred pursuant to clause
(b).  Accrual of interest, accretion or
amortization of original issue discount, the payment of interest on any Indebtedness
in the form of additional Indebtedness with the same terms, and the payment of
dividends on Disqualified Equity Interests in the form of additional shares of
the same class of Disqualified Equity Interests will not be deemed to be an
incurrence of Indebtedness or an issuance of Disqualified Equity Interests for
purposes of this Section 4.04.

 

SECTION
4.05.                                    Disposition of Proceeds of Asset Sales.

 

(a)           The Company shall not, and shall not cause or permit any
Restricted Subsidiary of the Company to, directly or indirectly, make any Asset
Sale, unless:

 

(i)      the Company or such
Restricted Subsidiary, as the case may be, receives consideration (including by
way of relief from, or by any other Person or group of Persons assuming sole
responsibility for, any liabilities, contingent or otherwise, valued at the
Fair Market Value thereof) at the time of such Asset Sale at least equal to the
Fair Market Value of the assets sold or otherwise disposed of, and

 

(ii)     at least 75% of such
consideration consists of (A) cash or Cash Equivalents, (B) properties
and capital assets that replace the properties and assets that were the subject
of such Asset Sale or properties and capital assets that will be used in the
business of the Company and its Subsidiaries as existing on the Issue Date or
in businesses reasonably related thereto (as

 

42

 

determined
in good faith by the Company’s Board of Directors) (“Replacement
Assets”), (C) Equity Interests of a Person engaged in the
business of the Company and its Subsidiaries on the Issue Date, provided that such Person shall be a Restricted Subsidiary
of the Company after giving effect to such transaction, and/or (D) any
notes or other obligations that are received by the Company or such Restricted
Subsidiary from such transferee that are converted by the Company or any such Restricted
Subsidiary into cash or Cash Equivalents within 30 days of the time of such
disposition, to the extent of cash or Cash Equivalents received.

 

The
amount of any Indebtedness (other than any Subordinated Indebtedness) of the
Company or any Restricted Subsidiary of the Company that is actually assumed by
the transferee in such Asset Sale and from which the Company and its Restricted
Subsidiaries are fully and unconditionally released shall be deemed to be cash
for purposes of determining the percentage of cash consideration received by
the Company or its Restricted Subsidiaries.

 

The Company or such Restricted Subsidiary of the
Company, as the case may be, may (i) apply the Net Cash Proceeds of any Asset
Sale within 360 days of receipt thereof to repay Senior Indebtedness, or (ii)
make an Investment in Replacement Assets; provided, however, that such Investment occurs or the Company or a
Restricted Subsidiary of the Company enters into contractual commitments to
make such Investment, subject only to customary conditions (other than the
obtaining of financing), on or prior to the 360th day following the receipt of
such Net Cash Proceeds and Net Cash Proceeds contractually committed are so
applied within 450 days following the receipt of such Net Cash Proceeds.  Pending the final application of such Net
Cash Proceeds, the Company or any Restricted Subsidiary may temporarily reduce
Indebtedness or otherwise invest such Net Cash Proceeds in any manner that is
not prohibited by this Indenture.

 

To the extent all or part of the Net Cash Proceeds
of any Asset Sale are not applied as described in clause (i) or (ii) of the
immediately preceding paragraph within the time periods set forth therein (the “Net Proceeds Utilization Date”)
(such Net Cash Proceeds, the “Unutilized Net Cash
Proceeds”), the Company shall, within 20 Business Days after
such Net Proceeds Utilization Date, make an Offer to Purchase all outstanding
Notes up to a maximum principal amount (expressed as a multiple of $1,000) of
Notes equal to such Unutilized Net Cash Proceeds (a “Net
Proceeds Offer”), at a purchase price in cash equal to 100% of
the principal amount thereof, plus accrued and unpaid interest thereon, if any,
to the Purchase Date; provided, however, that the Offer to Purchase may be deferred until
there are aggregate Unutilized Net Cash Proceeds equal to or in excess of $20.0
million, at which time the entire amount of such Unutilized Net Cash Proceeds,
and not just the amount in excess of $20.0 million, shall be applied as
required pursuant to this paragraph; provided, further, however, that
the Company may, at the time that it makes any such Offer to Purchase, also
offer to purchase, at a price in cash equal to 100% of the outstanding
principal amount thereof plus accrued and unpaid interest, if any, to the
purchase date, any Indebtedness which ranks pari  passu in right of payment to the Notes (a “Pari Passu Offer to Purchase”) and
to the extent the Company so elects to make a Pari Passu Offer to Purchase,
Notes and such pari  passu
Indebtedness shall be purchased pursuant to such Offer to Purchase and Pari
Passu Offer to Purchase, respectively, on a pro  rata basis based on the aggregate principal amount of such
Notes and pari  passu
Indebtedness then outstanding.

 

(b)           To the extent that the aggregate principal amount of pari  passu
Indebtedness tendered pursuant to a Pari Passu Offer to Purchase is less than
such pari  passu
Indebtedness’s pro rata share of such Unutilized
Net Cash Proceeds, the Company shall use such remaining Unutilized Net Cash Proceeds
to purchase any Notes validly tendered and not withdrawn pursuant to such Offer
to Purchase.  If the aggregate principal
amount of Notes validly tendered and not withdrawn by Holders thereof exceeds
the Unutilized Net Cash Proceeds or to the extent the Company elects to make a
Pari Passu Offer to

 

43

 

Purchase, exceeds the Notes’ pro rata share of such Unutilized Net Cash Proceeds, then
Notes to be purchased will be selected on a pro rata
basis.  Upon completion of such Offer to
Purchase, the amount of Unutilized Net Cash Proceeds will be reset to zero and
any amount not required to be used in such Offer may be used by the Company for
any purpose not otherwise prohibited by this Indenture.

 

(c)           In the event that the Company makes an Offer to Purchase
the Notes, the Company shall comply with any applicable securities laws and
regulations, including any applicable requirements of Section 14(e) of, and
Rule 14e-1 under, the Exchange Act, and any violation of the provisions of this
Indenture relating to such Offer to Purchase occurring as a result of such compliance
shall not be deemed a Default or Event of Default.

 

(d)           Each Holder shall be entitled to tender all or any portion
of the Notes owned by such Holder pursuant to the Offer to Purchase, subject to
the requirement that any portion of a Note tendered must be tendered in an
integral multiple of $1,000 principal amount and subject to any proration among
tendering Holders as described above.

 

SECTION
4.06.                                    Limitation on Restricted Payments.

 

The Company shall not, and shall not cause or permit
any Restricted Subsidiary of the Company to, directly or indirectly,

 

(i)            declare or pay any
dividend or any other distribution on any Equity Interests of the Company or
make any payment or distribution to the direct or indirect holders (in their
capacities as such) of Equity Interests of the Company (other than any dividends,
distributions and payments payable solely in Qualified Equity Interests of the
Company or in options, warrants or other rights to purchase Qualified Equity
Interests of the Company);

 

(ii)           purchase, redeem or
otherwise acquire or retire for value any Equity Interests of the Company; or

 

(iii)          make any Investment
in any Person (other than Permitted Investments)

 

(any such payment or any
other action (other than any exception thereto) described in (i), (ii) or
(iii), a “Restricted Payment”), unless

 

(a)           no Default or Event of Default shall have occurred and be
continuing at the time or immediately after giving effect to such Restricted
Payment;

 

(b)           immediately after giving effect to such Restricted
Payment, the Company would be able to Incur $1.00 of additional Indebtedness
(other than Permitted Indebtedness) under the Consolidated Fixed Charge
Coverage Ratio of the first paragraph of Section 4.04; and

 

(c)           immediately after giving effect to such Restricted
Payment, the aggregate amount of all Restricted Payments declared or made on or
after the Issue Date does not exceed an amount equal to the sum of:

 

(1)           50% of cumulative Consolidated Net Income
determined for the period (taken as one period) from the beginning of the
fiscal quarter commencing July 1, 2005 and ending on the last day of the most
recent fiscal quarter immediately preceding the date of such Restricted Payment
for which consolidated financial information of the

 

44

 

Company is available (or if such cumulative
Consolidated Net Income shall be a loss, minus 100% of such loss), plus

 

(2)           100% of the aggregate net cash
proceeds and Fair Market Value of any property or assets received by the
Company either (x) as capital contributions to the Company after the Issue Date
or (y) from the issue and sale (other than to a Subsidiary of the Company) of
its Qualified Equity Interests after the Issue Date or warrants, options or
other rights (other than any debt security that is convertible into, or exchangeable
for, Qualified Equity Interests) to acquire Qualified Equity Interests
(excluding the net proceeds from any issuance and sale of Qualified Equity Interests
financed, directly or indirectly, using funds borrowed from the Company or any
Restricted Subsidiary of the Company until and to the extent such borrowing is
repaid), plus

 

(3)           the principal amount (or accreted
amount, if less) of any Indebtedness of the Company or any Restricted
Subsidiary of the Company Incurred after the Issue Date which has been
converted into or exchanged for Qualified Equity Interests of the Company
(minus the amount of any cash or property distributed by the Company or any
Restricted Subsidiary of the Company upon such conversion or exchange plus,
without duplication, the amount of any cash or the Fair Market Value or any
property received by the Company or any Restricted Subsidiary upon such
conversion or exchange), plus

 

(4)           in the case of the disposition or
repayment of any Investment constituting a Restricted Payment made after the
Issue Date, an amount equal to 100% of the net cash proceeds and Fair Market
Value of any property or assets thereof (or dividends, distributions or
interest payments received thereon), plus

 

(5)           the amount equal to the net reduction
in Investments in Unrestricted Subsidiaries of the Company resulting from (x)
payments of dividends, repayments of the principal of loans or advances or
other transfers of assets to the Company or any Restricted Subsidiary of the
Company from any Unrestricted Subsidiary of the Company or (y) redesignation of
an Unrestricted Subsidiary as a Restricted Subsidiary, valued at the Fair
Market Value of such Subsidiary;

 

provided, however, that
the sum of clauses (4) and (5) shall not exceed the aggregate amount of all such
Investments made subsequent to the Issue Date.

 

The foregoing provisions will not prevent:

 

(i)            the payment of any dividend or distribution on, or
redemption of, Equity Interests within 60 days after the date of declaration of
such dividend or distribution or the giving of formal notice of such
redemption, as the case may be, if at the date of such declaration or giving of
such formal notice such payment or redemption would comply with the provisions
of this Indenture;

 

(ii)           the making of any Restricted Payment out of the net cash
proceeds of the substantially concurrent issue and sale (other than to a
Restricted Subsidiary of the Company) of, Qualified Equity Interests of the
Company; provided, however,
that any such net cash proceeds and the value of any Qualified Equity Interests
issued in exchange for such retired Equity Interests are excluded from clause
(c) (2) of the preceding paragraph (and were not included therein at any time)
and are not used to redeem the Notes pursuant to paragraph 5 of the Notes;

 

45

 

(iii)          the purchase, redemption or other acquisition for value of
Equity Interests of the Company (other than Disqualified Equity Interests) or
options on such shares held by officers or employees or former officers or
employees (or their assigns, estates or beneficiaries under their estates) upon
the death, disability, retirement or termination of employment of such current
or former officers or employees pursuant to the terms of an employee benefit plan
or any other agreement pursuant to which such Equity Interests or options were
issued or pursuant to a severance, buy-sell or right of first refusal agreement
with such current or former officer or employee; provided,
however, that the aggregate cash consideration
paid, or distributions made, pursuant to this clause (iii) do not in any one
fiscal year exceed $15.0 million; provided that
the amount in any fiscal year may be increased by the cash proceeds of key man
life insurance policies received by the Company or Restricted Subsidiaries
after the Issue Date and utilized for such purpose;

 

(iv)          Restricted Payments pursuant to and in accordance with
customary stock option plans or other customary benefit plans for management or
employees of the Company and its Subsidiaries;

 

(v)           Investments constituting Restricted Payments made as a
result of the receipt of non-cash consideration from any Asset Sale received
pursuant to clause (ii) of Section 4.05(a);

 

(vi)          repurchases of Equity Interests deemed to occur upon the
exercise of stock options if such Equity Interests represent a portion of the
exercise price thereof;

 

(vii)         the distribution of Equity Interests of an Unrestricted
Subsidiary of the Company to holders of the Equity Interests of the Company;

 

(viii)        the Company or any Restricted Subsidiary
of the Company from purchasing all (but not less than all), excluding directors’
qualifying shares, of the Equity Interests of or other ownership interests in a
Subsidiary of the Company which Equity Interests or other ownership interests
were not theretofore owned by the Company or a Restricted Subsidiary of the
Company;

 

(ix)           cash payments in lieu of fractional shares in connection
with the exercise of warrants, options or other securities convertible or
exchangeable into Equity Interests of the Company; provided
that any such cash payment shall not be for the purpose of evading this Section
4.06 (as determined in good faith by the Board of Directors of the Company);
and

 

(x)            other Restricted Payments not to exceed $75.0 million in
the aggregate since the Issue Date;

 

provided however, that
in the case of each of clauses (ii) and (x) no Default or Event of Default
shall have occurred and be continuing or would arise therefrom.

 

In determining the amount of Restricted Payments
permissible under this Section 4.06, amounts expended pursuant to clauses (i),
(iii), (iv) and (v) of the immediately preceding paragraph shall be included as
Restricted Payments.  The amount of any
non-cash Restricted Payment shall be deemed to be equal to the Fair Market
Value thereof at the date of the making of such Restricted Payment.

 

SECTION
4.07.                                    Corporate Existence.

 

Subject to Article Five, the Company shall do or
shall cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence and the corporate, partnership or other
existence of each Restricted Subsidiary of the Company in accordance with the
respective

 

46

organizational documents of each such Restricted
Subsidiary of the Company and the rights (charter and statutory) and material
franchises of the Company and its Restricted Subsidiaries; provided, however, that the
Company shall not be required to preserve any such right or franchise, or the
corporate existence of any Restricted Subsidiary of the Company, if the Board
of Directors of the Company shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its
Restricted Subsidiaries, taken as a whole; provided, further,
however, that a determination of the Board of Directors of the
Company shall not be required in the event of a merger of one or more
Restricted Subsidiaries of the Company with or into another Restricted
Subsidiary of the Company or another Person, if the surviving Person is a Restricted
Subsidiary of the Company organized under the laws of the United States or a
State thereof or of the District of Columbia or, in the case of a Foreign Subsidiary
of the Company, the jurisdiction of incorporation or organization of such
Foreign Subsidiary of the Company.  This
Section 4.07 shall not prohibit the Company from taking any other action
otherwise permitted by, and made in accordance with, the provisions of this
Indenture.

 

SECTION
4.08.                                    [Intentionally Omitted].

 

SECTION
4.09.                                    Notice of Defaults.

 

(a)           In the event that any Indebtedness of the Company or any
of its Restricted Subsidiaries is declared due and payable before its maturity
because of the occurrence of any default (or any event which, with notice or
lapse of time, or both, would constitute such a default) under such Indebtedness,
the Company shall promptly give written notice to the Trustee of such
declaration, the status of such default or event and what action the Company is
taking or proposes to take with respect thereto.

 

(b)           Upon becoming aware of any Default or Event of Default,
the Company shall promptly deliver an Officers’ Certificate to the Trustee
specifying the Default or Event of Default.

 

SECTION
4.10.                                    Limitation on Liens.

 

The Company shall not, and shall not cause or permit
any Restricted Subsidiary of the Company to, directly or indirectly, Incur any
Liens of any kind against or upon any of their respective properties or assets
now owned or hereafter acquired, or any proceeds therefrom or any income or
profits therefrom, to secure any Indebtedness unless contemporaneously
therewith effective provision is made to secure the Notes and all other amounts
due under this Indenture, equally and ratably with such Indebtedness (or, in
the event that such Indebtedness is subordinated in right of payment to the
Notes, prior to such Indebtedness) with a Lien on the same properties and
assets securing such Indebtedness for so long as such Indebtedness is secured
by such Lien, except for (i) Liens securing Senior Indebtedness and (ii)
Permitted Liens.

 

SECTION
4.11.                                    Compliance Certificate.

 

The Company shall deliver to the Trustee within 120
days after the close of each fiscal year a certificate signed by the principal
executive officer, principal financial officer or principal accounting officer
stating that a review of the activities of the Company has been made under the
supervision of the signing officers with a view to determining whether the
Company is in compliance with each of its covenants and other obligations under
this Indenture and the Notes and whether a Default or Event of Default has
occurred and whether or not the signers know of any breach of covenant or other
obligation or any Default or Event of Default by the Company that occurred
during such fiscal year. If they do know of such a breach of covenant or other
obligation or any Default or Event of Default, the certificate shall describe
all such breaches of covenants, other obligations or Defaults or Events of
Default, their status and

 

47

 

the action the Company is taking or proposes to take
with respect thereto. The first certificate to be delivered by the Company pursuant
to this Section 4.11 shall be for the fiscal year ending September 30,
2006.

 

SECTION
4.12.                                    Provision of Financial Information.

 

Whether or not required by the rules and regulations
of the SEC, so long as any Notes are outstanding, the Company shall furnish the
Holders of Notes:

 

(1)           all quarterly and
annual financial information that would be required to be contained in a filing
with the SEC on Forms 10-Q and 10-K if the Company were required to file such
Forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” that describes the financial condition and results
of operations of the Company and its consolidated Subsidiaries (showing in
reasonable detail, either on the face of the financial statements or in the
footnotes thereto and in Management’s Discussion and Analysis of Financial
Condition and Results of Operations, 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, if any) and, with respect to the annual information only, a
report thereon by the Company’s certified independent accountants; and

 

(2)           all current reports
that would be required to be filed with the SEC on Form 8-K if the Company were
required to file such reports, in each case within the time periods specified
in the SEC’s rules and regulations.

 

In addition, following the consummation of the
exchange offer contemplated by the Registration Rights Agreement, whether or
not required by the rules and regulations of the SEC, the Company will file a
copy of all such information and reports with the SEC for public availability
within the time periods specified in the SEC’s rules and regulations (unless
the SEC will not accept such a filing) and make such information available to
securities analysts and prospective investors upon request.  In addition, the Company has agreed that, for
so long as any Notes remain outstanding, it will furnish to the Holders and to
securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under the Securities
Act.  The Company will be deemed to have
furnished any reports required pursuant to the terms of this Section 4.12 if it
has filed such reports with the SEC via the EDGAR filing system and such
reports are publicly available.

 

SECTION
4.13.                                    Limitations on Dividend and Other Payment
Restrictions Affecting Subsidiaries.

 

The Company shall not, and shall not cause or permit
any Restricted Subsidiary of the Company to, directly or indirectly, create or
otherwise cause or suffer to exist or become effective any consensual encumbrance
or restriction on the ability of any Restricted Subsidiary of the Company to:

 

(a)           pay dividends or make any other
distributions to the Company or any other Restricted Subsidiary of the Company
on its Equity Interests or with respect to any other interest or participation
in, or measured by, its profits, or pay any Indebtedness owed to the Company or
any other Restricted Subsidiary of the Company,

 

(b)           make loans or advances to, or
guarantee any Indebtedness or other obligations of, or make any Investment in,
the Company or any other Restricted Subsidiary of the Company,

 

(c)           transfer any of its properties or
assets to the Company or any other Restricted Subsidiary of the Company,

 

48

 

except, in each case, for
such encumbrances or restrictions existing under or by reason of:

 

(i)            the Senior Credit
Facilities, as in effect on the Issue Date, or any other agreement of the
Company or its Restricted Subsidiaries outstanding on the Issue Date as in
effect on the Issue Date and any other agreement of the Company or its Restricted
Subsidiaries outstanding from time to time governing Senior Indebtedness
provided that such encumbrances or restrictions are not more adverse to the
Company than those contained in the Senior Credit Facilities as in effect on
the Issue Date, and any amendments, restatements, renewals, replacements or
refinancings thereof; provided, however, that any such amendment, restatement, renewal,
replacement or refinancing is no more restrictive with respect to such
encumbrances or restrictions than those contained in the agreement being
amended, restated, revised, replaced or refinanced;

 

(ii)           applicable law;

 

(iii)          any instrument
governing Indebtedness or Equity Interests of an Acquired Person acquired by
the Company or any Restricted Subsidiary of the Company as in effect at the
time of such acquisition (except to the extent such Indebtedness or Acquired
Indebtedness was Incurred by such Acquired Person in connection with, as a
result of or in contemplation of such acquisition); provided,
however, that such encumbrances and
restrictions are not applicable to the Company or any Restricted Subsidiary of
the Company, or the properties or assets of the Company or any Restricted
Subsidiary of the Company, other than the Acquired Person;

 

(iv)          customary
non-assignment provisions in leases entered into in the ordinary course of
business and consistent with past practices;

 

(v)           Purchase Money
Indebtedness for property acquired in the ordinary course of business that only
imposes encumbrances and restrictions on the property so acquired;

 

(vi)          any agreement for
the sale or disposition of the Equity Interests or assets of any Subsidiary of
the Company; provided, however,
that such encumbrances and restrictions described in this clause (vi) are only
applicable to such Subsidiary or assets, as applicable, and any such sale or
disposition is made in compliance with Section 4.05 to the extent applicable
thereto;

 

(vii)         refinancing
Indebtedness permitted under clause (g) of the second paragraph of Section
4.04; provided, however,
that such encumbrances and restrictions contained in the agreements governing
such Indebtedness are no more restrictive in the aggregate than those contained
in the agreements governing the Indebtedness being refinanced immediately prior
to such refinancing;

 

(viii)        this Indenture;

 

(ix)           customary
restrictions on the transfer of assets subject to any Lien permitted under this
Indenture imposed by the holder of such Lien;

 

(x)            any encumbrance or
restriction contained in any credit facility extended to any Foreign Subsidiary
of the Company to meet such Subsidiary’s working capital needs;

 

(xi)           customary
restrictions on cash or other deposits or net worth provisions in leases and
other agreements entered into by the Company or any Restricted Subsidiary in the
ordinary course of business;

 

49

 

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

 

(xiii)         Non-Recourse
Receivables Subsidiary Indebtedness or other contractual requirements of a
Receivables Subsidiary in connection with a Qualified Receivables Transaction; provided that such restrictions apply only to such Receivables
Subsidiary or the receivables and related assets described in the definition of
“Qualified Receivables Transaction” which are subject to such Qualified
Receivables Transaction.

 

SECTION
4.14.                                    Offer to Purchase upon Change of Control.

 

(a)           Following the occurrence of a Change of Control (the date
of such occurrence being the “Change of Control Date”),
the Company shall notify the Holders of the Notes of such occurrence in the
manner prescribed by this Indenture and shall, within 30 days after the Change
of Control Date, make an Offer to Purchase all Notes then outstanding at a
purchase price in cash equal to 101% of the aggregate principal amount thereof,
plus accrued and unpaid interest thereon, if any, to the Purchase Date; provided that an Offer to Purchase may be made in advance of
a Change of Control, and conditioned upon the occurrence of such Change of
Control, if a definitive agreement is in place for a transaction that would
constitute a Change of Control at the time of making such Offer to
Purchase.  Each Holder shall be entitled
to tender all or any portion of the Notes owned by such Holder pursuant to the
Offer to Purchase, subject to the requirement that any portion of a Note tendered
must be tendered in an integral multiple of $1,000 principal amount.

 

(b)           On or prior to the Purchase Date specified in the Offer to
Purchase, the Company shall (i) accept for payment all Notes or portions
thereof validly tendered pursuant to the Offer to Purchase, (ii) deposit with
the Paying Agent or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 2.04, money sufficient to
pay the Purchase Price of all Notes or portions thereof so accepted and (iii)
deliver or cause to be delivered to the Trustee for cancellation all Notes so
accepted together with an Officers’ Certificate stating the Notes or portions
thereof accepted for payment by the Company. 
The Paying Agent (or the Company, if so acting) shall promptly mail or
deliver to Holders of Notes so accepted, payment in an amount equal to the
Purchase Price for such Notes, and the Trustee shall promptly authenticate and
mail or deliver to each Holder of Notes a new Note or Notes equal in principal
amount to any unpurchased portion of the Note surrendered as requested by the
Holder. Any Note not accepted for payment shall be promptly mailed or delivered
by the Company to the Holder thereof. The Company shall publicly announce the
results of the Offer on or as soon as practicable after the Purchase Date.

 

(c)           The Company will not be required to make an Offer to
Purchase upon the occurrence of a Change of Control if another entity makes the
Offer to Purchase, in the manner, at the time and otherwise in compliance with
the requirements set forth in this Indenture applicable to an Offer to Purchase
upon a Change of Control and purchases all Notes properly tendered and not withdrawn
pursuant to such Offer to Purchase.

 

(d)           If the Company makes an Offer to Purchase, the Company
will comply with all applicable tender offer laws and regulations, including,
to the extent applicable, Section 14(e) and Rule 14e-1 under the Exchange Act,
and any other applicable Federal or state securities laws and regulations and
any applicable requirements of any securities exchange on which the Notes are
listed, and any violation of the provisions of this Indenture relating to such
Offer to Purchase occurring as a result of such compliance shall not be deemed
a Default or an Event of Default.

 

50

 

SECTION
4.15.                                    Limitation on Other Senior Subordinated
Indebtedness.

 

The Company shall not, and shall not permit any
Restricted Subsidiary that is a Guarantor to, Incur or suffer to exist Indebtedness
that is senior in right of payment to the Notes or such Guarantor’s Note Guarantee,
as the case may be, and subordinated in right of payment to any other
Indebtedness of the Company or such Guarantor, as the case may be.  For purposes of the foregoing, no Indebtedness
will be deemed to be subordinated in right of payment to any other Indebtedness
of the Company or any Guarantor solely by virtue of such Indebtedness being
unsecured or by virtue of the fact that the holders of such Indebtedness have
entered into one or more intercreditor agreements giving one or more of such
holders priority over the other holders in the collateral held by them.

 

SECTION
4.16.                                    Guarantees by Restricted Subsidiaries.

 

(a)           The Company shall not permit any of its domestic Restricted
Subsidiaries, directly or indirectly, by way of the pledge of any intercompany
note or otherwise, to assume, guarantee or in any other manner become liable
with respect to any Indebtedness of the Company or any other Restricted
Subsidiary of the Company (other than: 
(1) Permitted Indebtedness of a Restricted Subsidiary of the Company;
(2) Indebtedness under Currency Agreements incurred in reliance on clause (f)
of the second paragraph of Section 4.04; or (3) Interest Rate Protection
Obligations incurred in reliance on clause (d) of the second paragraph of
Section 4.04), unless, in any case:

 

(1)           such Restricted
Subsidiary executes and delivers a supplemental indenture to this Indenture
providing a guarantee of payment of the Notes by such Restricted Subsidiary;
and

 

(2)           (a) if any such
assumption, guarantee or other liability of such Restricted Subsidiary is
provided in respect of Senior Indebtedness, the guarantee or other instrument
provided by such Restricted Subsidiary in respect of such Senior Indebtedness
may be superior to the Note Guarantee pursuant to subordination provisions no
less favorable to the Holders of the Notes than those contained in this
Indenture and (b) if such assumption, guarantee or other liability of such
Restricted Subsidiary is provided in respect of Indebtedness that is expressly
subordinated to the Notes, the guarantee or other instrument provided by such
Restricted Subsidiary in respect of such subordinated Indebtedness shall be
subordinated to the Note Guarantee pursuant to subordination provisions no less
favorable to the Holders of the Notes than those contained in this Indenture.

 

(b)           Solgar Holdings, Inc., Solgar, Inc. and Solgar Mexico
Holdings, LLC shall guarantee the Notes as promptly as practicable after such
time that the Company would not be required to file separate financial
statements for Solgar Holdings, Inc. with the SEC pursuant to Rule 3-10,
paragraph G of Regulation S-X as promulgated by the SEC, if the Company was
filing a registration statement at such time.

 

(c)           Notwithstanding the provisions of paragraph (a), any such
Note Guarantee by a Restricted Subsidiary of the Notes shall be automatically
and unconditionally released and discharged, without any further action
required on the part of the Trustee or any Holder, upon:

 

(1)           the unconditional
release of such Restricted Subsidiary from its liability in respect of the
Indebtedness in connection with which such Note Guarantee was executed and
delivered pursuant to the preceding paragraph, provided
that no Default or Event of Default is then outstanding;

 

51

 

(2)           any sale or other
disposition (by merger or otherwise) to any Person which is not a Restricted
Subsidiary of the Company of all of the Company’s Equity Interests in, or all
or substantially all of the assets of, such Restricted Subsidiary; provided that (a) such sale or disposition of such Equity
Interests or assets is otherwise in compliance with the terms of this Indenture
and (b) such assumption, guarantee or other liability of such Restricted
Subsidiary has been released by the holders of the other Indebtedness so guaranteed;

 

(3)           so long as no
Default or Event of Default is then in existence both before and after giving
effect to such release, such Restricted Subsidiary simultaneously not being an
obligor with respect to any Indebtedness outstanding under the first paragraph
of Section 4.04 or clause (a), (b) or (o) of the second paragraph thereof; or

 

(4)           the designation of a
Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary in
accordance with the applicable provisions of this Indenture.

 

ARTICLE FIVE

MERGERS; SUCCESSOR CORPORATION

 

SECTION
5.01.                                    Merger, Sale of Assets, etc.

 

The Company shall not, in a single transaction or
series of related transactions, consolidate or merge with or into any Person,
or sell, assign, transfer, lease, convey or otherwise dispose of (or cause or
permit any Restricted Subsidiary of the Company to sell, assign, transfer,
lease, convey or otherwise dispose of) all or substantially all of the
Company’s assets (determined on a consolidated basis for the Company and the
Company’s Restricted Subsidiaries) whether as an entirety or substantially as
an entirety to any Person unless:

 

(1)           either:

 

(a)           the Company shall be the surviving or
continuing corporation; or

 

(b)           the Person (if other than the
Company) formed by such consolidation or into which the Company is merged or
the Person which acquires by sale, assignment, transfer, lease, conveyance or
other disposition the properties and assets of the Company and of the Company’s
Restricted Subsidiaries substantially as an entirety (the “Surviving
Entity”):

 

(x)            shall be a corporation organized and
validly existing under the laws of the United States or any State thereof or
the District of Columbia; and

 

(y)           shall expressly assume, by
supplemental indenture (in form and substance reasonably satisfactory to the
Trustee), executed and delivered to the Trustee, the due and punctual payment
of the principal of, premium, if any, and interest on all of the Notes and the
performance of every covenant of the Notes, this Indenture and the Registration
Rights Agreement on the part of the Company to be performed or observed;

 

(2)           immediately after giving effect to such transaction and
the assumption contemplated by clause (1)(b)(y) above (including giving effect
to any Indebtedness incurred or anticipated to be incurred in connection with
or in respect of such transaction), the Company or such

 

52

 

Surviving
Entity, as the case may be, (a) shall be able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) pursuant to Section 4.04 or
(b) shall have a Consolidated Fixed Charge Coverage Ratio equal to or greater
than such ratio of the Company immediately prior to such transaction;

 

(3)           immediately before and immediately
after giving effect to such transaction and the assumption contemplated by
clause (1)(b)(y) above, no Default or Event of Default shall exist; and

 

(4)           the Company or the Surviving Entity
shall have delivered to the Trustee an officers’ certificate and an Opinion of Counsel,
each stating that such consolidation, merger, sale, assignment, transfer,
lease, conveyance or other disposition and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture comply
with the applicable provisions of this Indenture and that all conditions
precedent in this Indenture relating to such transaction have been satisfied.

 

For purposes of the foregoing, the transfer (by
lease, assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or
more Restricted Subsidiaries of the Company the Equity Interests of which
constitutes all or substantially all of the properties and assets of the
Company, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.

 

Notwithstanding the foregoing clauses (2) and (3),
the Company may merge with an Affiliate that is a Person that has no material
assets or liabilities and which was organized solely for the purpose of
reorganizing the Company in another jurisdiction.

 

Each Guarantor (other than any Guarantor whose Note
Guarantee is to be released in accordance with the terms of the Note Guarantee
and this Indenture in connection with any transaction complying with Section
4.05) shall not, and the Company will not cause or permit any Guarantor to, consolidate
with or merge with or into any Person other than the Company or any other
Guarantor unless:

 

(1)           the entity formed by or surviving any
such consolidation or merger (if other than the Guarantor) or to which such
sale, lease, conveyance or other disposition shall have been made is a
corporation organized and existing under the laws of the United States or any
State thereof or the District of Columbia;

 

(2)           such entity assumes by supplemental
indenture all of the obligations of the Guarantor on the Note Guarantee; and

 

(3)           immediately after giving effect to
such transaction, no Default or Event of Default shall exist.

 

Any merger or consolidation of a Guarantor with and
into the Company (with the Company being the surviving entity) or another
Guarantor that is a Restricted Subsidiary of the Company need only comply with
clause (4) of the first paragraph of this Section 5.01.

 

SECTION 5.02.                                    Successor
Corporation Substituted.

 

Upon any consolidation, combination or merger or any
transfer of all or substantially all of the assets of the Company in accordance
with Section 5.01 in which the Company is not the continuing corporation, the
successor Person formed by such consolidation or into which the Company is
merged or

 

53

 

to which such conveyance, lease or transfer is made
shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture and the Notes with the same effect
as if such surviving entity had been named as such.

 

ARTICLE
SIX

DEFAULT AND REMEDIES

 

SECTION 6.01.                                    Events
of Default.

 

Each of the following shall be an “Event of
Default” for purposes of this Indenture:

 

(a)           failure to pay
principal of (or premium, if any, on) any Note when due at maturity or
otherwise (whether or not prohibited by the provisions of Article Eight);

 

(b)           failure to pay any
interest on any Note when due, continued for 30 days or more (whether or not
prohibited by the provisions of Article Eight);

 

(c)           failure to perform
or comply with any of the provisions of Section 5.01;

 

(d)           failure to perform
any other covenant, warranty or agreement of the Company under this Indenture
or in the Notes continued for 60 days or more after written notice to the
Company by the Trustee or the Holders of at least 25% in aggregate principal
amount of the outstanding Notes;

 

(e)           default or defaults
under the terms of one or more instruments evidencing or securing Indebtedness
of the Company or any of its Restricted Subsidiaries having an outstanding
principal amount of $15.0 million or more individually or in the aggregate that
has resulted in the acceleration of the payment of such Indebtedness or failure
by the Company or any of its Restricted Subsidiaries to pay principal when due
at the stated maturity of any such Indebtedness and such default or defaults
shall have continued after any applicable grace period and shall not have been
cured or waived;

 

(f)            the rendering of a
final judgment or judgments (not subject to appeal) against the Company or any
of its Restricted Subsidiaries in an amount of $15.0 million or more (net of
any amounts covered by reputable and creditworthy insurance companies) which
remains undischarged or unstayed for a period of 60 days after the date on
which the right to appeal has expired;

 

(g)           any Note Guarantee
of a Significant Subsidiary ceases to be in full force and effect or any Note
Guarantee of a Significant Subsidiary is declared to be null and void and
unenforceable or any Note Guarantee of a Significant Subsidiary is found to be
invalid or any Guarantor that is a Significant Subsidiary denies its liability
under its Note Guarantee (in each case, other than by reason of release of a
Guarantor in accordance with the terms of this Indenture);

 

(h)           the Company or any
of its Significant Subsidiaries pursuant to or within the meaning of any
Bankruptcy Law:  (i) admits in
writing its inability to pay its debts generally as they become due;
(ii) commences a voluntary case or proceeding; (iii) consents to the
entry of an order for relief against it in an involuntary case or proceeding;
(iv) consents or acquiesces in the institution of a bankruptcy or insolvency
proceeding against it; (v) consents to the appointment of a Custodian of
it or for all or substantially all of its property; or (vi) makes a
general assignment

 

54

 

for the benefit of its creditors, or any of
them takes any action to authorize or effect any of the foregoing;

 

(i)            a court of
competent jurisdiction enters an order or decree under any Bankruptcy Law
that:  (i) is for relief against the
Company or any Significant Subsidiary of the Company in an involuntary case or
proceeding; (ii) appoints a Custodian of the Company or any Significant
Subsidiary of the Company for all or substantially all of its property; or
(iii) orders the liquidation of the Company or any Significant Subsidiary
of the Company; and in each case the order or decree remains unstayed and in
effect for 60 days; provided, however, that if the entry of such order or decree is
appealed and dismissed on appeal, then the Event of Default hereunder by reason
of the entry of such order or decree shall be deemed to have been cured.

 

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

 

SECTION 6.02.                                    Acceleration.

 

If an Event of Default (other than an Event of
Default specified in clause (h) or (i) of Section 6.01 with respect to the Company)
shall occur and be continuing, the Trustee or the Holders of at least 25% in
principal amount of outstanding Notes may declare the principal of, premium, if
any, and accrued interest on all the Notes to be due and payable by notice in
writing to the Company and the Trustee specifying the Event of Default and that
it is a “notice of acceleration” (the “Acceleration Notice”), and the same:

 

(1)           shall
become immediately due and payable (except to the extent provided in clause (2)
of this Section 6.02); or

 

(2)           if
there are any amounts outstanding under any Designated Senior Indebtedness,
shall become immediately due and payable upon the first to occur of an
acceleration under such Designated Senior Indebtedness or five business days
after receipt by the Company and the Representative under such Designated
Senior Indebtedness of such Acceleration Notice but only if such Event of
Default is then continuing.

 

If an Event of Default specified in clause (h) or
(i) of Section 6.01 with respect to the Company occurs and is continuing, then
all unpaid principal of, and premium, if any, and accrued and unpaid interest
on all of the outstanding Notes shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.

 

At any time after a declaration of acceleration with
respect to the Notes as described in the preceding paragraph of this Section
6.02, the Holders of a majority in principal amount of the Notes may rescind
and cancel such declaration and its consequences:

 

(1)           if the rescission would not conflict
with any judgment or decree;

 

(2)           if all existing Events of Default
have been cured or waived except nonpayment of principal or interest that has become
due solely because of the acceleration;

 

(3)           to the extent the payment of such
interest is lawful, interest on overdue installments of interest and overdue
principal, which has become due otherwise than by such declaration of acceleration,
has been paid;

 

55

 

(4)           if the Company has paid the Trustee
its reasonable compensation and reimbursed the Trustee for its expenses,
disbursements and advances; and

 

(5)           in the event of the cure or waiver of
an Event of Default of the type described in clause (h) of Section 6.01, the
Trustee shall have received an Officers’ Certificate and an Opinion of Counsel that
such Event of Default has been cured or waived.

 

No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

 

SECTION 6.03.                                    Other
Remedies.

 

If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy by proceeding at law or in equity to
collect the payment of principal of, premium, if any, or interest on the Notes
or to enforce the performance of any provision of the Notes or this Indenture.

 

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

 

SECTION 6.04.                                    Waiver
of Past Default.

 

Subject to Sections 2.09, 6.07 and 10.02, prior to
the declaration of acceleration of the Notes, the Holders of a majority in
principal amount of the outstanding Notes by written notice to the Trustee may
waive an existing Default or Event of Default and its consequences, except a
Default in the payment of principal of, premium, if any, or interest on any Note
as specified in clauses (a) and (b) of Section 6.01 or a Default in respect of
any term or provision of this Indenture that may not be amended or modified
without the consent of each Holder affected as provided in Section 10.02.  The Company shall deliver to the Trustee an
Officers’ Certificate stating that the requisite percentage of Holders have
consented to such waiver and attaching copies of such consents.  In case of any such waiver, the Company, the
Trustee and the Holders shall be restored to their former positions and rights
hereunder and under the Notes, respectively.  This paragraph of this Section 6.04 shall be
in lieu of § 316(a)(1)(B) of the TIA and such § 316(a)(1)(B) of the
TIA is hereby expressly excluded from this Indenture and the Notes, as permitted
by the TIA.

 

Upon any such waiver, such Default shall cease to
exist and be deemed to have been cured and not to have occurred, and any Event
of Default arising therefrom shall be deemed to have been cured and not to have
occurred for every purpose of this Indenture and the Notes, but no such waiver
shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereon.

 

SECTION 6.05.                                    Control
by Majority.

 

Subject to Section 2.09, the Holders of a majority
in principal amount of the outstanding Notes may direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on it. 
However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture that the Trustee determines may be unduly prejudicial
to the rights of another Holder, it being understood that the Trustee shall
have no duty (subject to Section 7.01) to ascertain whether or not such actions
or forebearances are unduly prejudicial to such Holders, or that may involve
the Trustee in personal liability; provided, however, that the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction. In the event the

 

56

 

Trustee takes any action or follows any direction
pursuant to this Indenture, the Trustee shall be entitled to indemnification reasonably
satisfactory to it against any loss or expense caused by taking such action or
following such direction. This Section 6.05 shall be in lieu of
§ 316(a)(1)(A) of the TIA, and such § 316(a)(1)(A) of the TIA is
hereby expressly excluded from this Indenture and the Notes, as permitted by
the TIA.

 

SECTION 6.06.                                    Limitation
on Suits.

 

A Holder may not pursue any remedy with respect to
this Indenture or the Notes unless:

 

(i)            the
Holder gives to the Trustee written notice of a continuing Event of Default;

 

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

 

(iii)          such
Holder or Holders offer and, if requested, provide to the Trustee indemnity reasonably
satisfactory to the Trustee against any loss, liability or expense;

 

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

 

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

 

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

 

SECTION 6.07.                                    Rights
of Holders To Receive Payment.

 

Notwithstanding any other provision of this
Indenture, but subject in any event to the provisions of Article Eight, the
right of any Holder to receive payment of principal of, premium, if any, or
interest on a Note, on or after the respective due dates expressed in the Note,
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 the
Holder.

 

SECTION 6.08.                                    Collection
Suit by Trustee.

 

If an Event of Default in payment of principal or
interest specified in Section 6.01(a) or (b) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company or any other obligor on the Notes for the whole amount of
principal and accrued interest remaining unpaid, together with interest overdue
on principal and to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate per annum borne by the Notes and such further amount as
shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

SECTION 6.09.                                    Trustee
May File Proofs of Claim.

 

The Trustee may file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable

 

57

 

compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company (or any other obligor upon the Notes
including the Guarantors), its creditors or its property and shall be entitled
and empowered to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same, and any Custodian in
any such judicial proceedings is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agent and counsel, and any other amounts due the
Trustee under Section 7.07. Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and may be a member of the creditors’
committee.

 

SECTION 6.10.                                    Priorities.

 

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

 

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

 

Second: subject to Article
Eight, to Holders for amounts due and unpaid on the Notes for principal and
interest, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Notes for principal and interest, respectively;
and

 

Third: to the Company or to
such party as a court of competent jurisdiction shall direct, including a
Guarantor.

 

The Trustee, upon prior written notice to the
Company, may fix a record date and payment date for any payment to the Holders
pursuant to this Section 6.10.

 

SECTION 6.11.                                    Undertaking
for Costs.

 

In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action
taken or omitted by it as Trustee, a court in its discretion may require the
filing by any party litigant in the suit of an undertaking to pay the costs of
the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees and expenses, against any party litigant
in the suit, having due regard to the merits and good faith of the claims or
defenses made by the party litigant.  This
Section 6.11 shall not apply to a suit by the Trustee, a suit by a Holder or
group of Holders of more than 10% in aggregate principal amount of the
outstanding Notes, or to any suit instituted by any Holder for the enforcement
or the payment of the principal or interest on any Notes on or after the
respective due dates expressed in the Note.

 

58

 

ARTICLE SEVEN

TRUSTEE

 

SECTION 7.01.                                    Duties
of Trustee.

 

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

 

(b)           Except during the continuance of a Default:

 

(1)           The Trustee shall
not be liable except for the performance of such duties as are specifically set
forth herein and no implied covenants or obligations shall be read into this
Indenture or the TIA against the Trustee; and

 

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

 

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

 

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

 

(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)           No provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or to take or omit
to take any action under this Indenture or take any action at the request or
direction of Holders if it shall have reasonable grounds for believing that
repayment of such funds is not assured to it or it does not receive from such
Holders an indemnity reasonably satisfactory to it against such risk,
liability, loss, fee or expense which might be incurred by it in compliance
with such request or direction.

 

(e)           Every provision of this Indenture
that in any way relates to the Trustee is subject to paragraphs (a), (b), (c)
and (d) of this Section 7.01.

 

(f)            The Trustee shall not be liable for
interest on any money received by it except as the Trustee may agree in writing
with the Company. Money held in trust by the Trustee need not be segregated
from other funds except to the extent required by law.

 

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SECTION 7.02.                                    Rights
of Trustee.

 

Subject to Section 7.01:

 

(a)           The Trustee may
conclusively rely on any document including, without limitation, any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, bond, note or coupon, 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 and/or an
Opinion of Counsel, which shall conform to the provisions of Section 13.05. The
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on such certificate or opinion.

 

(c)           The Trustee may
execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or through attorneys and agents of its selection and shall not
be responsible for the misconduct or negligence of any agent or attorney (other
than an agent who is an employee of the Trustee) 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
reasonably believes to be authorized or within its rights or powers.

 

(e)           Before the Trustee
acts or refrains from acting, it may consult with counsel and the advice or
opinion of such counsel as to matters of law shall be full and complete
authorization and protection from liability in respect of any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

 

(f)            Any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or Company Order and any resolution of the Board of Directors
may be sufficiently evidenced by a Board Resolution.

 

(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 reasonable
security or indemnity satisfactory to it against the costs, expenses and liabilities
which might be incurred by it in compliance with such request or direction.

 

(h)           The Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney; provided, however, that
if the payment within a reasonable time to the Trustee of the costs, expenses
or liabilities likely to be incurred by it in the making of such investigation
is, in the opinion of the Trustee, not reasonably assured to the Trustee by the
security afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity from the Holders against such expenses or liabilities as a
condition to so proceeding.  The
reasonable expenses of every such examination shall be paid by the Company, or,
if paid by the Trustee, shall be repaid by the Company on demand.

 

60

 

(i)            The Trustee shall
not be deemed to have notice of any Event of Default unless a Trust Officer of
the Trustee has actual knowledge thereof or unless the Trustee shall have received
written notice thereof at the Corporate Trust Office of the Trustee, and such
notice references the Notes and this Indenture. 
As used herein, the term “actual knowledge”
means the actual fact or statement of knowing, without any duty to make any
investigation with regard thereto.

 

(j)            The Trustee shall
not be required to give any bond or surety in respect of the performance of its
powers and duties hereunder.

 

(k)           The permissive
rights of the Trustee to do things enumerated in this Indenture shall not be
construed as a duty and the Trustee shall not be answerable for other than its
negligence or willful misconduct.

 

(l)            The Trustee shall
not be liable for any consequential loss or damage of any kind whatsoever
(including but not limited to lost profits), even if the Trustee had been
advised of the likelihood of such loss or damage and regardless of the form of
action, other than losses or damages resulting from the Trustee’s willful
misconduct or gross negligence.

 

(m)          The Trustee may rely
on the list of Holders provided to it by the Company and shall not be
responsible for any information contained in any notice provision provided to
the Trustee by the Company for distribution to the Holders.

 

SECTION 7.03.                                    Individual
Rights of Trustee.

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Notes and may otherwise deal with the
Company or its Affiliates with the same rights it would have if it were not Trustee,
subject to Section 7.10.  Any Agent may
do the same with like rights.  However,
the Trustee is subject to Sections 7.10 and 7.11.

 

SECTION 7.04.                                    Trustee’s
Disclaimer.

 

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

 

SECTION 7.05.                                    Notice
of Defaults.

 

If a Default or an Event of Default occurs and is
continuing and the Trustee has actual knowledge of such Default or Events of
Default, the Trustee shall mail to each Holder notice of the Default or Event
of Default within 30 days after the occurrence thereof. Except in the case of a
Default or an Event of Default in payment of principal of, premium, if any, or
interest on any Note, the Trustee may withhold the notice if and so long as its
board of directors, executive committee or a trust committee of directors
and/or responsible officers of the Trustee in good faith determines that
withholding the notice is in the interest of Holders.  This Section 7.05 shall be in lieu of the proviso
to § 315(b) of the TIA and such proviso to § 315(b) of the TIA is
hereby expressly excluded from this Indenture and the Notes, as permitted by
the TIA.

 

61

 

SECTION 7.06.                                    Reports
by Trustee to Holders.

 

If required by TIA § 313(a), within 60 days
after each May 15 beginning with the May 15 following the date of this Indenture,
the Trustee shall mail to each Holder a report dated as of such May 15 that
complies with TIA § 313(a).  The
Trustee also shall comply with TIA § 313(b), (c) and (d).

 

A copy of each such report at the time of its
mailing to Holders shall be filed with the SEC and each stock exchange, if any,
on which the Notes are listed.

 

The Company shall promptly notify the Trustee in
writing if the Notes become listed on any stock exchange or of any delisting
thereof.

 

SECTION 7.07.                                    Compensation
and Indemnity.

 

The Company shall pay to the Trustee from time to
time, and the Trustee shall be entitled to, such compensation as the Company
and the Trustee shall from time to time agree in writing for all services rendered
by it in any capacity.  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 disbursements, expenses
and advances, including all costs and expenses of collection (including
reasonable fees, disbursements and expenses of its agents and outside counsel)
incurred or made by it in addition to the compensation for its services except
any such disbursements, expenses and advances as shall have been determined to
have been caused by the Trustee’s own negligence or willful misconduct.  Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee’s agents, accountants,
experts and outside counsel and any taxes or other expenses incurred by a trust
created pursuant to Section 9.01 hereof.

 

The Company shall indemnify the Trustee (including,
for the purposes of the rest of this Section 7.07, its agents and any
authenticating agent in any capacity under this Indenture) for, and hold it
harmless against any and all loss, damage, claims, liability or expense,
including taxes (other than franchise taxes imposed on the Trustee and taxes
based upon, measured by or determined by the income of the Trustee), arising
out of or in connection with the acceptance or administration of the trust or
trusts hereunder or in any other capacity hereunder, including the costs and
expenses of defending itself against or investigating any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent that such loss, damage, claim, liability or
expense is due to its own negligence or willful misconduct.  The Trustee shall notify the Company promptly
of any claim asserted against the Trustee for which it may seek indemnity. However,
the failure by the Trustee to so notify the Company shall not relieve the
Company of its obligations hereunder.  The
Company shall defend the claim and the Trustee shall cooperate in the defense
(and may employ its own counsel) at the Company’s expense; provided, however, that the Company’s reimbursement obligation with
respect to counsel employed by the Trustee will be limited to the reasonable
fees and expenses of such counsel.

 

The Company need not pay for any settlement made
without its written consent, which consent shall not be unreasonably withheld.  The Company need not reimburse any expense or
indemnify against any loss or liability incurred by the Trustee as a result of
its own negligence or willful misconduct.

 

To secure the payment obligations of the Company and
the Guarantors in this Section 7.07, the Trustee shall have a Lien prior to the
Notes against all money or property held or collected by the Trustee, in its
capacity as Trustee, except money or property held in trust to pay principal of,
premium, if any, or interest on particular Notes or the Purchase Price or
redemption price of any Notes to be purchased pursuant to an Offer to Purchase
or redeemed.

 

62

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.01(h) or (i) occurs, the
expenses (including the reasonable fees and expenses of its agents and counsel)
and the compensation for the services shall be preferred over the status of the
Holders in a proceeding under any Bankruptcy Law and are intended to constitute
expenses of administration under any Bankruptcy Law.  The Company’s obligations under this Section
7.07 and any claim arising hereunder shall survive the resignation or removal
of any Trustee, the discharge of the Company’s obligations pursuant to Article
Nine and any rejection or termination under any Bankruptcy Law.

 

SECTION 7.08.                                    Replacement
of Trustee.

 

The Trustee may resign at any time by so notifying
the Company in writing. The Holders of a majority in principal amount of the
outstanding Notes may remove the Trustee by so notifying the Trustee and the
Company in writing and may appoint a successor Trustee with the Company’s
consent. The Company may remove the Trustee if:

 

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

 

(b)           the Trustee is
adjudged a bankrupt or an insolvent under any Bankruptcy Law;

 

(c)           a custodian or other
public officer takes charge of the Trustee or its property; or

 

(d)           the Trustee becomes
incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason (the Trustee in such event being
referred to herein as the retiring Trustee), the Company shall promptly appoint
a successor Trustee.  Within one year
after the successor Trustee takes office, the Holders of a majority in
principal amount of the Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company.  As promptly as practicable after that, the
retiring Trustee shall transfer, after payment of all sums then owing to the
Trustee pursuant to Section 7.07, all property held by it as Trustee to the
successor Trustee, subject to the Lien provided in Section 7.07, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have the rights, powers and duties of the Trustee under
this Indenture.  A successor Trustee
shall mail notice of its succession to each Holder.

 

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

 

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

 

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

 

63

 

SECTION 7.09.                                    Successor
Trustee by Merger, etc.

 

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

 

SECTION 7.10.                                    Eligibility;
Disqualification.

 

This Indenture shall always have a Trustee which
shall be eligible to act as Trustee under TIA §§ 310(a)(1), 310(a)(2) and
310(a)(5).  The Trustee shall have a
combined capital and surplus of at least $500,000,000 as set forth in its most
recent published annual report of condition. If the Trustee has or shall acquire
any “conflicting interest” within the meaning of TIA § 310(b), the Trustee
and the Company shall comply with the provisions 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. If at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 7.10, the Trustee shall
resign immediately in the manner and with the effect hereinbefore specified in
this Article Seven.

 

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 therein.

 

ARTICLE
EIGHT

SUBORDINATION OF NOTES

 

SECTION 8.01.                                    Notes
Subordinated to Senior Indebtedness.

 

The Company covenants and agrees, and the Trustee
and each Holder of the Notes by his or her acceptance thereof likewise covenants
and agrees, that all Notes shall be issued subject to the provisions of this
Article Eight; and each person holding any Note, whether upon original issue or
upon transfer, assignment or exchange thereof, accepts and agrees that all
payments of the principal of, premium, if any, and interest on the Notes by the
Company shall, to the extent and in the manner set forth in this Article Eight,
be subordinated and junior in right of payment to the prior payment in full in
cash of all amounts payable under Senior Indebtedness.

 

SECTION 8.02.                                    Payment
Over of Proceeds upon Dissolution, etc.

 

(a)           Upon any payment or distribution of
assets or securities of the Company of any kind or character, whether in cash,
property or securities (excluding any payment or distribution of Permitted
Junior Securities and excluding any payment from funds deposited in accordance
with, and held in trust for the benefit of Holders pursuant to, Article Nine (a
“Defeasance Trust Payment”)), upon
any dissolution or winding up or total liquidation or reorganization of the
Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, all Senior Indebtedness then due shall first
be paid in full in cash before the Holders of the Notes or the Trustee on
behalf of such Holders shall be entitled to receive any payment by the Company
of the principal of, premium, if any, or interest on the Notes, or any payment
by the Company to acquire any of the Notes for cash, property or securities, or
any distribution by the Company with respect to the Notes of any cash, property
or securities (excluding

 

64

 

any payment or distribution of Permitted
Junior Securities and excluding any Defeasance Trust Payment).  Before any payment may be made by, or on
behalf of, the Company of the principal of, premium, if any, or interest on the
Notes upon any such dissolution or winding up or total liquidation or reorganization,
whether voluntary or involuntary or in bankruptcy, insolvency, receivership or
other proceedings, any payment or distribution of assets or securities of the
Company of any kind or character, whether in cash, property or securities
(excluding any payment or distribution of Permitted Junior Securities and excluding
any Defeasance Trust Payment), to which the Holders of the Notes or the Trustee
on their behalf would be entitled, but for the subordination provisions of this
Indenture, shall be made by the Company or by any receiver, trustee in
bankruptcy, liquidation trustee, agent or other Person making such payment or
distribution, directly to the holders of the Senior Indebtedness (pro rata to such holders on the basis of the respective
amounts of Senior Indebtedness held by such holders) or their representatives
or to the trustee or trustees or agent or agents under any agreement or
indenture pursuant to which any of such Senior Indebtedness may have been issued,
as their respective interests may appear, to the extent necessary to pay all
such Senior Indebtedness in full in cash after giving effect to any prior or
concurrent payment, distribution or provision therefor to or for the holders of
such Senior Indebtedness.

 

(b)           In the event that, notwithstanding
the foregoing provision prohibiting such payment or distribution, any payment
or distribution of assets or securities of the Company of any kind or
character, whether in cash, property or securities (excluding any payment or
distribution of Permitted Junior Securities and excluding any Defeasance Trust
Payment), shall be paid by the Company to the Trustee or any Holder of Notes at
a time when such payment or distribution is prohibited by Section 8.02(a) and before
all obligations then due in respect of Senior Indebtedness are paid in full in
cash, such payment or distribution shall be received and held in trust for the
benefit of, and shall be paid over or delivered by the Trustee (if the Notice
required by Section 8.06 has been received by the Trustee) or the Holder to,
the holders of Senior Indebtedness (pro rata to
such holders on the basis of the respective amounts of Senior Indebtedness held
by such holders) or their respective representatives, or to the trustee or
trustees or agent or agents under any indenture pursuant to which any of such
Senior Indebtedness may have been issued, as their respective interests may appear,
for application to the payment of Senior Indebtedness remaining unpaid until
all such Senior Indebtedness has been paid in full in cash after giving effect
to any prior or concurrent payment, distribution or provision therefor to or
for the holders of such Senior Indebtedness.

 

The consolidation of the Company with, or the merger
of the Company with or into, another corporation or the liquidation or
dissolution of the Company following the conveyance or transfer of its property
as an entirety, or substantially as an entirety, to another corporation upon
the terms and conditions provided in Article Five shall not be deemed a
dissolution, winding up, liquidation or reorganization for the purposes of this
Section 8.02 if such other corporation shall, as a part of such
consolidation, merger, conveyance or transfer, comply with the conditions
stated in Article Five.

 

SECTION 8.03.                                    No
Payment on Notes in Certain Circumstances.

 

(a)           No direct or indirect payment
(excluding any payment or distribution of Permitted Junior Securities and excluding
any Defeasance Trust Payment) by or on behalf of the Company of principal of,
premium, if any, or interest on the Notes, whether pursuant to the terms of the
Notes, upon acceleration, pursuant to an Offer to Purchase or otherwise, shall
be made if, at the time of such payment, there exists a default in the payment
of all or any portion of the obligations on any Senior Indebtedness, whether at
maturity, on account of mandatory redemption or prepayment, acceleration or otherwise,
and such default shall not have been cured or waived or the benefits of this
sentence waived by or on behalf of the holders of such Senior Indebtedness. In
addition, during the continuance of any non-payment event of default with
respect to any Designated Senior Indebtedness pursuant to which the maturity
thereof may be immediately accelerated, and upon receipt by the Trustee of
written notice (a “Payment Blockage Notice”)

 

65

 

from the holder or holders of such Designated
Senior Indebtedness or the trustee or agent acting on behalf of such Designated
Senior Indebtedness, then, unless and until such non-payment event of default
has been cured or waived or has ceased to exist or such Designated Senior
Indebtedness has been discharged or repaid in full in cash or the benefits of
these provisions have been waived by the holders of such Designated Senior
Indebtedness, no direct or indirect payment (excluding any payment or distribution
of Permitted Junior Securities and excluding any Defeasance Trust Payment)
shall be made by or on behalf of the Company of principal of, premium, if any,
or interest on the Notes, whether pursuant to the terms of the Notes, upon
acceleration, pursuant to an Offer to Purchase or otherwise, to such Holders,
during a period (a “Payment Blockage Period”)
commencing on the date of receipt of such notice by the Trustee and ending 179
days thereafter.

 

Notwithstanding anything in this Article Eight or in
the Notes to the contrary, (x) in no event shall a Payment Blockage Period
extend beyond 179 days from the date the Payment Blockage Notice in respect
thereof was given, (y) there shall be a period of at least 181 consecutive days
in each 360-day period when no Payment Blockage Period is in effect and (z) not
more than one Payment Blockage Period may be commenced with respect to the Notes
during any period of 360 consecutive days. 
No event of default that existed or was continuing on the date of
commencement of any Payment Blockage Period with respect to the Designated
Senior Indebtedness initiating such Payment Blockage Period (to the extent the
holder or holders of Designated Senior Indebtedness, or trustee or agent,
giving notice commencing such Payment Blockage Period had knowledge of such
existing or continuing event of default) may be, or be made, the basis for the
commencement of any other Payment Blockage Period by the holder or holders of
such Designated Senior Indebtedness or the trustee or agent acting on behalf of
such Designated Senior Indebtedness, whether or not within a period of 360
consecutive days, unless such event of default has been cured or waived for a
period of not less than 90 consecutive days.

 

(b)           In the event that, notwithstanding
the foregoing, the Company shall have made payment to the Trustee or any Holder
when such payment is prohibited by Section 8.03(a), such payment shall be held
in trust for the benefit of, and shall be paid over or delivered by the Trustee
(if the Notice required by Section 8.06 has been received by the Trustee) or
the Holder to, the holders of Senior Indebtedness or their respective
representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Senior Indebtedness may have been issued, as their respective
interests may appear, but only to the extent that, upon notice from the Trustee
to the holders of Senior Indebtedness that such prohibited payment has been
made, the holders of the Senior Indebtedness (or their representative or
representatives or a trustee or trustees) notify the Trustee in writing of the
amounts then due and owing on the Senior Indebtedness, if any, and only the
amounts specified in such notice to the Trustee shall be paid to the holders of
Senior Indebtedness.

 

SECTION 8.04.                                    Subrogation.

 

Upon the payment in full in cash of all Senior
Indebtedness, or provision for payment, the Holders of the Notes shall be
subrogated to the rights of the holders of Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company made
on such Senior Indebtedness until the principal of, premium, if any, and
interest on the Notes shall be paid in full in cash; and, for the purposes of
such subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the Holders of the Notes
or the Trustee on their behalf would be entitled except for the provisions of
this Article Eight, and no payment over pursuant to the provisions of this
Article Eight to the holders of Senior Indebtedness by Holders of the Notes or
the Trustee on their behalf shall, as between the Company, its creditors other
than holders of Senior Indebtedness, and the Holders of the Notes, be deemed to
be a payment by the Company to or on account of the Senior Indebtedness.  It is understood that the provisions of this
Article Eight are and are intended solely for the purpose

 

66

 

of defining the relative rights of the Holders of
the Notes, on the one hand, and the holders of the Senior Indebtedness, on the
other hand.

 

If any payment or distribution to which the Holders
of the Notes would otherwise have been entitled but for the provisions of this
Article Eight shall have been applied, pursuant to the provisions of this Article
Eight, to the payment of all amounts payable under Senior Indebtedness, then
and in such case, the Holders of the Notes shall be entitled to receive from
the holders of such Senior Indebtedness any payments or distributions received
by such holders of Senior Indebtedness in excess of the amount required to make
payment in full in cash of such Senior Indebtedness.

 

SECTION 8.05.                                    Obligations
of Company Unconditional.

 

Nothing contained in this Article Eight or elsewhere
in this Indenture or in the Notes is intended to or shall impair, as among the
Company and the Holders of the Notes, the obligation of the Company, which is
absolute and unconditional, to pay to the Holders of the Notes the principal of,
premium, if any, and interest on the Notes as and when the same shall become
due and payable in accordance with their terms, or is intended to or shall
affect the relative rights of the Holders of the Notes and creditors of the
Company other than the holders of the Senior Indebtedness, nor shall anything
herein or therein prevent the Holder of any Note or the Trustee on their behalf
from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article Eight
of the holders of the Senior Indebtedness in respect of cash, property or
securities of the Company received upon the exercise of any such remedy.

 

Without limiting the generality of the foregoing,
nothing contained in this Article Eight shall restrict the right of the Trustee
or the Holders of Notes to take any action to declare the Notes to be due and
payable prior to their stated maturity pursuant to Section 6.02 or to pursue
any rights or remedies hereunder; provided, however, that all Senior Indebtedness then due and payable
shall first be paid in full in cash before the Holders of the Notes or the
Trustee are entitled to receive any direct or indirect payment from the Company
of principal of, premium, if any, or interest on the Notes.

 

SECTION 8.06.                                    Notice
to Trustee.

 

The Company shall give prompt written notice in the
form of an Officers’ Certificate to the Trustee of any fact known to the
Company which would prohibit the making of any payment to or by the Trustee in
respect of the Notes pursuant to the provisions of this Article Eight.  The Trustee shall not be charged with
knowledge of the existence of any event of default with respect to any Senior Indebtedness
or of any other facts which would prohibit the making of any payment to or by
the Trustee unless and until the Trustee shall have received notice in writing
at its Corporate Trust Office to that effect signed by an Officer of the
Company, or by a holder of Senior Indebtedness or trustee or agent therefor
(who shall have been certified by the Company or otherwise established to the
reasonable satisfaction of the Trustee to be such holder or trustee); and prior
to the receipt of any such written notice, the Trustee shall, subject to
Article Seven, be entitled to assume that no such facts exist; provided, however, that if the Trustee shall not have received
the notice provided for in this Section 8.06 at least one full Business Day
prior to the date upon which by the terms of this Indenture any moneys shall
become payable for any purpose (including, without limitation, the payment of
the principal of, premium, if any, or interest on any Note), then, regardless
of anything herein to the contrary, the Trustee shall have full power and
authority to receive any moneys from the Company and to apply the same to the
purpose for which they were received, and shall not be affected by any notice
to the contrary which may be received by it on or after such prior date. Nothing
contained in this Section 8.06 shall limit the right of the holders of Senior
Indebtedness to recover payments as contemplated by Section 8.03.  The Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself or itself
to be a holder of any Senior

 

67

 

Indebtedness (or a trustee on behalf of, or other
representative of, such holder) to establish that such notice has been given by
a holder of such Senior Indebtedness or a trustee or representative on behalf
of any such holder.

 

In the event that the Trustee determines in good
faith that any evidence is required with respect to the right of any Person as
a holder of Senior Indebtedness to participate in any payment or distribution
pursuant to this Article Eight, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Indebtedness held by such Person, the extent to which such Person is entitled
to participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article Eight, and if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial determination
as to the right of such Person to receive such payment.

 

SECTION 8.07.                                    Reliance
on Judicial Order or Certificate of Liquidating Agent.

 

Upon any payment or distribution of assets or
securities referred to in this Article Eight, the Trustee and the Holders of
the Notes shall be entitled to rely upon any order or decree made by any court
of competent jurisdiction in which bankruptcy, dissolution, winding-up,
liquidation or reorganization proceedings are pending, or upon a certificate of
the receiver, trustee in bankruptcy, liquidating trustee, agent or other person
making such payment or distribution, delivered to the Trustee or to the Holders
of the Notes for the purpose of ascertaining the persons entitled to
participate in such distribution, the holders of the Senior Indebtedness and
other indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article Eight.

 

SECTION 8.08.                                    Trustee’s
Relation to Senior Indebtedness.

 

The Trustee and any Paying Agent shall be entitled
to all the rights set forth in this Article Eight with respect to any Senior
Indebtedness which may at any time be held by it in its individual or any other
capacity to the same extent as any other holder of Senior Indebtedness, and
nothing in this Indenture shall deprive the Trustee or any Paying Agent of any
of its rights as such holder.

 

With respect to the holders of Senior Indebtedness,
the Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article Eight, and no implied
covenants or obligations with respect to the holders of Senior Indebtedness
shall be read into this Indenture against the Trustee.  The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Indebtedness (except as provided in Section
8.03(b)).  The Trustee shall not be
liable to any such holders if the Trustee shall in good faith mistakenly pay
over or distribute to Holders of Notes or to the Company or to any other person
cash, property or securities to which any holders of Senior Indebtedness shall
be entitled by virtue of this Article Eight or otherwise.

 

SECTION 8.09.                                    Subordination
Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior
Indebtedness.

 

No right of any present or future holders of any
Senior Indebtedness to enforce subordination as provided herein shall at any
time in any way be prejudiced or impaired by any act or failure to act on the
part of the Company or by any act or failure to act, in good faith, by any such
holder, or by any noncompliance by the Company with the terms of this
Indenture, regardless of any knowledge thereof which any such holder may have
or otherwise be charged with.  The
provisions of this Article Eight are intended to be for the benefit of, and
shall be enforceable directly by, the holders of Senior Indebtedness.

 

68

 

SECTION 8.10.                                    Holders
Authorize Trustee To Effectuate Subordination of Notes.

 

Each Holder of Notes by his acceptance of such Notes
authorizes and expressly directs the Trustee on his behalf to take such action
as may be necessary or appropriate to effectuate the subordination provided in
this Article Eight, and appoints the Trustee his attorney-in-fact for such
purposes, including, in the event of any dissolution, winding up, total
liquidation or reorganization of the Company (whether in bankruptcy,
insolvency, receivership, reorganization or similar proceedings or upon an assignment
for the benefit of creditors or otherwise) tending towards liquidation of the
business and assets of the Company, the filing of a claim for the unpaid
balance of its or his Notes in the form required in those proceedings.

 

SECTION 8.11.                                    This
Article Not To Prevent Events of Default.

 

The failure to make a payment or distribution for or
on account of the Notes by reason of any provision of this Article Eight shall
not be construed as preventing the occurrence of an Event of Default in respect
of the Notes.

 

SECTION 8.12.                                    Trustee’s
Compensation Not Prejudiced.

 

Nothing in this Article Eight shall apply to amounts
due to the Trustee pursuant to other sections in this Indenture.

 

SECTION 8.13.                                    No
Waiver of Subordination Provisions.

 

Without in any way limiting the generality of
Section 8.09, the holders of Senior Indebtedness may, at any time and from time
to time, without the consent of or notice to the Trustee or the Holders of the Notes,
without incurring responsibility to the Holders of the Notes and without
impairing or releasing the subordination provided in this Article Eight or the
obligations hereunder of the Holders of the Notes to the holders of Senior Indebtedness,
do any one or more of the following:  (a)
change the manner, place or terms of payment or extend the time of payment of,
or renew or alter, Senior Indebtedness or any instrument evidencing the same or
any agreement under which Senior Indebtedness is outstanding or secured; (b)
sell, exchange, release or otherwise deal with any property pledged, mortgaged
or otherwise securing Senior Indebtedness; (c) release any Person liable in any
manner for the collection of Senior Indebtedness; and (d) exercise or refrain
from exercising any rights against the Company and any other Person.

 

SECTION 8.14.            Subordination
Provisions Not Applicable to Money Held in Trust for Holders; Payments May Be
Paid Prior to Dissolution.

 

All money and United States Government Obligations
deposited in trust with the Trustee pursuant to and in accordance with Article
Nine shall be for the sole benefit of the Holders and shall not be subject to
this Article Eight.

 

Nothing contained in this Article Eight or elsewhere
in this Indenture shall prevent (i) the Company, except under the conditions described
in Sections 8.02 and 8.03, from making payments of principal of, premium, if
any, and interest on the Notes or from depositing with the Trustee any moneys
for such payments or from effecting a termination of the Company’s obligations
under the Notes and this Indenture as provided in Article Nine, or (ii) the
application by the Trustee of any moneys deposited with it for the purpose of
making such payments of principal of, premium, if any, and interest on the Notes,
to

 

69

 

the Holders entitled thereto unless at least one
full Business Day prior to the date upon which such payment becomes due and
payable, the Trustee shall have received the written notice provided for in
Section 8.02(b) or in Section 8.06. The Company shall give prompt written notice
to the Trustee of any dissolution, winding up, liquidation or reorganization of
the Company.

 

SECTION 8.15.                                    Acceleration
of Notes.

 

If payment of the Notes is accelerated because of an
Event of Default, the Company shall promptly notify holders of the Senior
Indebtedness of the acceleration.

 

ARTICLE
NINE

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION 9.01.                                    Option
To Effect Legal Defeasance and Covenant Defeasance.

 

(a)           The Company may, at its option, at
any time elect to have either paragraph (b) or (c) below applied to all outstanding
Notes, subject in either case to compliance with the conditions set forth in Section 9.02.

 

(b)           Upon the Company’s exercise under
paragraph (a) hereof of the option applicable to this paragraph (b), the Company
and the Guarantors shall, subject to the satisfaction of conditions set forth
in Section 9.02, be deemed to have paid and discharged the entire indebtedness
represented by the outstanding Notes, except for (i) the rights of Holders to
receive payments in respect of the principal of, premium, if any, and interest
on the Notes when such payments are due, (ii) the Company’s obligations with
respect to the Notes under Sections 2.02 through 2.07, inclusive, 2.10, 2.13
and 4.02, (iii) the rights, powers, trust, duties and immunities of the Trustee
under this Indenture and the Company’s obligations in connection therewith and
(iv) Article Nine of this Indenture (hereinafter, “Legal
Defeasance”).  Subject to
compliance with this Article Nine, the Company may exercise its option under
this paragraph (b) notwithstanding the prior exercise of its option under paragraph
(c) hereof.

 

(c)           Upon the Company’s exercise under
paragraph (a) hereof of the option applicable to this paragraph (c), the Company
shall, subject to the satisfaction of the conditions set forth in Section 9.02,
be released from its obligations under the covenants contained in
Sections 4.03 through 4.06, inclusive, 4.08 through 4.16, inclusive, and
Article Five with respect to the outstanding Notes (hereinafter, “Covenant Defeasance”) and thereafter
any omission to comply with such obligations shall not constitute a Default or
an Event of Default with respect to the Notes. 
In addition, upon the Company’s exercise under paragraph (a) hereof of
the option applicable to this paragraph (c), subject to the satisfaction of the
conditions set forth in Section 9.02, those events described in Section 6.01
(except those events described in Sections 6.01(a), (b), (f), (g), (h) and (i))
shall not constitute Events of Default.

 

SECTION 9.02.                                    Conditions
to Legal Defeasance or Covenant Defeasance.

 

In order to exercise either Legal Defeasance
pursuant to Section 9.01(b) or Covenant Defeasance pursuant to Section 9.01(c):

 

(a)           the Company must
irrevocably deposit with the Trustee, in trust, for the benefit of the Holders,
cash in U.S. dollars or United States Government Obligations, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally
recognized firm of independent

 

70

 

public accountants, to pay the principal of, premium,
if any, and interest on the Notes on the stated date for payment thereof or on
the applicable redemption date, as the case may be;

 

(b)           in the case of an
election under Section 9.01(b), the Company shall have delivered to the Trustee
an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that (A) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling or (B) since the date 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 Holders of the Notes will not recognize income, gain or loss
for federal income tax purposes as a result of such Legal Defeasance and will
be subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such Legal Defeasance had not occurred;

 

(c)           in the case of an
election under Section 9.01(c), the Company shall have delivered to the Trustee
an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that the Holders of the Notes will not recognize income, gain or
loss for federal income tax purposes as a result of such Covenant Defeasance
and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;

 

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

 

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

 

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

 

(g)           the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to
the Legal Defeasance or the Covenant Defeasance have been complied with; and

 

(h)           the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that the
trust funds will not be subject to any rights of holders of Senior
Indebtedness, including, without limitation, those arising under this Indenture.

 

Notwithstanding the foregoing, the Opinion of Counsel
required by clause (b) above with respect to a Legal Defeasance need not be
delivered if all Notes not theretofore delivered to the Trustee for cancellation
(1) have become due and payable or (2) will become due and payable on the
maturity date within one year under arrangements satisfactory to the Trustee
for the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company.

 

71

 

SECTION 9.03.                                    Application
of Trust Money; Trustee Acknowledgment and Indemnity.

 

The Trustee shall hold in trust money or United
States Government Obligations deposited with it pursuant to Section 9.02, and
shall apply the deposited money and the money from United States Government
Obligations in accordance with this Indenture solely to the payment of
principal of, premium, if any, and interest on the Notes.

 

After such delivery or irrevocable deposit and
delivery of an Officers’ Certificate and Opinion of Counsel, the Trustee upon
request shall acknowledge in writing the discharge of the Company’s obligations
under the Notes and this Indenture except for those surviving obligations specified
above.

 

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the United
States Government Obligations deposited pursuant to Section 9.02 or the principal
and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of outstanding Notes.

 

SECTION 9.04.                                    Repayment
to Company.

 

Subject to Sections 7.07 and 9.03, the Trustee shall
promptly pay to the Company upon written request any excess money held by it at
any time. The Trustee shall pay to the Company upon written request any money
held by it for the payment of principal or interest that remains unclaimed for
two years; provided, however, that the Trustee before being required to make any payment
may at the expense of the Company cause to be published once in a newspaper of
general circulation in The City of New York or mail to each Holder entitled to
such money notice that such money remains unclaimed and that, after a date
specified therein which shall be at least 30 days from the date of such
publication or mailing, any unclaimed balance of such money then remaining
shall be repaid by the Company. After payment to the Company,  (i) Holders entitled to money must look
solely to the Company for payment as general creditors unless an applicable abandoned
property law designates another person, and (ii) all liability of the Trustee
or Paying Agent with respect to such money shall thereupon cease.

 

SECTION 9.05.                                    Reinstatement.

 

If the Trustee is unable to apply any money or
United States Government Obligations in accordance with Section 9.01 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 obligations under this Indenture and the Notes shall
be revived and reinstated as though no deposit had occurred pursuant to Section
9.01 until such time as the Trustee is permitted to apply all such money or
United States Government Obligations in accordance with Section 9.01; provided, however, that
if the Company has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or United States Government Obligations
held by the Trustee.

 

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ARTICLE
TEN

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

SECTION 10.01.                              Without
Consent of Holders.

 

The Company and any Guarantor (with respect to a
Note Guarantee and this Indenture), when authorized by a resolution of the
Board of Directors of each of them, as applicable, and the Trustee may amend or
supplement this Indenture, a Note Guarantee or the Notes without notice to or
consent of any Holder:

 

(a)           to cure any
ambiguity, defect or inconsistency; provided, however, that such
amendment or supplement does not adversely affect the rights of any Holder;

 

(b)           to effect the
assumption by a successor Person of all obligations of the Company under the Notes
and this Indenture in connection with any transaction complying with Article
Five;

 

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

 

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

 

(e)           to make any change
that would provide any additional benefit or rights to the Holders;

 

(f)            to make any other
change that does not adversely affect the rights of any Holder under this
Indenture in any material respect;

 

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

 

(h)           to secure the Notes
pursuant to the requirements of Section 4.10 or otherwise; or

 

(i)            to provide for the
issuance of Additional Notes and Note Guarantees in accordance with the
limitations set forth in this Indenture as of the Issue Date, including Section
4.04.

 

provided, however,
that the Company has delivered to the Trustee an Opinion of Counsel stating
that such amendment or supplement complies with the provisions of this Section
10.01.

 

SECTION 10.02.                              With
Consent of Holders.

 

Subject to Section 6.07, the Company or a Guarantor
(with respect to a Note Guarantee or this Indenture), when authorized by a
resolution of the Board of Directors and the Trustee may modify, amend or supplement,
or waive compliance by the Company or any Guarantor with any provision of, this
Indenture, the Note Guarantees or the Notes with the written consent of the
Holders of at least a majority in principal amount of the outstanding Notes.  However, without the consent of each Holder
affected, no such modification, amendment, supplement or waiver, including a
waiver pursuant to Section 6.04, may:

 

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

 

73

 

(2)           reduce
the rate of or change or have the effect of changing the time for payment of
interest, including defaulted interest, on any Notes;

 

(3)           reduce
the principal of or change or have the effect of changing the fixed maturity of
any Notes, or change the date on which any Notes may be subject to redemption
or reduce the redemption price therefor;

 

(4)           make
any Notes payable in money other than that stated in the Notes;

 

(5)           make
any change in provisions of this Indenture protecting the right of each Holder
to receive payment of principal of, premium, if any, and interest on such Note
on or after the due date thereof or to bring suit to enforce such payment, or
permitting Holders of a majority in principal amount of Notes to waive Defaults
or Events of Default;

 

(6)           after
the Company’s obligation to purchase Notes arises thereunder, amend, change or
modify in any material respect the obligation of the Company to make and
consummate a Change of Control Offer in the event of a Change of Control or
make and consummate a Net Proceeds Offer with respect to any Asset Sale that
has been consummated or, after such Change of Control has occurred or such
Asset Sale has been consummated, modify any of the provisions or definitions
with respect thereto;

 

(7)           modify
or change any provision of this Indenture or the related definitions affecting
the subordination or ranking of the Notes or any Note Guarantee in a manner
which adversely affects the Holders; or

 

(8)           release
any Guarantor that is a Significant Subsidiary from any of its obligations
under its Note Guarantee or this Indenture otherwise than in accordance with
the terms of this Indenture.

 

No amendment of, or supplement or waiver to, this
Indenture shall adversely affect the rights of the holders of any Senior Indebtedness
or Guarantor Senior Indebtedness under Article Eight (including any defined
terms as used therein) without the consent of each holder of Senior
Indebtedness or Guarantor Senior Indebtedness affected thereby.

 

It shall not be necessary for the consent of the
Holders under this Section 10.02 to approve the particular form of any proposed
amendment, supplement or waiver, but it shall be sufficient if such consent
approves the substance thereof.

 

After an amendment, supplement or waiver under this
Section 10.02 becomes effective, the Company shall mail to the Holders affected
thereby a notice briefly describing the amendment, supplement or waiver. Any
failure of the Company to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such amendment, supplement
or waiver.

 

SECTION 10.03.                              Compliance
with Trust Indenture Act.

 

Every amendment to or supplement of this Indenture
or the Notes shall comply with the TIA as then in effect.

 

74

 

SECTION 10.04.                              Record
Date for Consents and Effect of Consents.

 

The Company may, but shall not be obligated to, fix
a record date for the purpose of determining the Holders of Notes entitled to
consent to any amendment, supplement or waiver. If a record date is fixed, then
those persons who were Holders of Notes at such record date (or their duly
designated proxies), and only those persons, shall be entitled to consent to
such amendment, supplement or waiver or to revoke any consent previously given,
whether or not such persons continue to be Holders of such Notes after such
record date. No such consent shall be valid or effective for more than 90 days
after such record date.  The Trustee is
entitled to rely upon any electronic instruction from beneficial owners to the
Holders of any Global Note.

 

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder, unless it makes a change described in
any of clauses (1) through (8) of Section 10.02.  In that case the amendment, supplement or
waiver shall bind each Holder of a Note who has consented to it and every
subsequent Holder of a Note or portion of a Note that evidences the same debt
as the consenting Holder’s Note.

 

SECTION 10.05.                              Notation
on or Exchange of Notes.

 

If an amendment, supplement or waiver changes the
terms of a Note, the Trustee may require the Holder of the Note to deliver it
to the Trustee.  The Trustee may place an
appropriate notation on the Note about the changed terms and return it to the
Holder.  Alternatively, if the Company or
the Trustee so determines, the Company in exchange for the Note shall issue and
the Trustee shall authenticate a new Note that reflects the changed terms.  Failure to make the appropriate notation or issue
a new Note shall not affect the validity and effect of such amendment, supplement
or waiver.

 

SECTION 10.06.                              Trustee
To Sign Amendments, etc.

 

The Trustee shall be provided with, and shall be
fully protected in relying upon, an Opinion of Counsel stating that the
execution of any amendment, supplement or waiver authorized pursuant to this
Article Ten is authorized or permitted by this Indenture and that such
amendment, supplement or waiver constitutes the legal, valid and binding
obligation of the Company, enforceable in accordance with its terms (subject to
customary exceptions).  The Trustee may,
but shall not be obligated to, execute any such amendment, supplement or waiver
which affects the Trustee’s own rights, duties or immunities under this Indenture
or otherwise.  In signing any amendment,
supplement or waiver, the Trustee shall be entitled to receive an indemnity
reasonably satisfactory to it.

 

SECTION 10.07.                              Certain
Amendments.

 

Without the consent of each holder of Senior
Indebtedness of the Company affected, no amendment, modification, supplement or
waiver may change the provisions of Article Eight in any manner adverse to such
holders of Senior Indebtedness.

 

75

 

ARTICLE
ELEVEN

SATISFACTION AND DISCHARGE

 

SECTION 11.01.                              Satisfaction
and Discharge.

 

This Indenture shall be discharged and shall
cease to be of further effect (except as to surviving rights of registration of
transfer or exchange of the Notes, as expressly provided for in this Indenture)
as to all outstanding Notes and Note Guarantees when:

 

(1)           either:

 

(a)           all the Notes theretofore
authenticated and delivered (except lost, stolen or destroyed Notes which have
been replaced or paid and Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust) have been
delivered to the Trustee for cancellation; or

 

(b)           all Notes not theretofore delivered
to the Trustee for cancellation (1) have become due and payable or (2) will
become due and payable within one year, or are to be called for redemption
within one year, under arrangements reasonably satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the expense,
of the Company, and the Company has irrevocably deposited or caused to be
deposited with the Trustee funds in an amount sufficient to pay and discharge
the entire Indebtedness on the Notes not theretofore delivered to the Trustee
for cancellation, for principal of, premium, if any, and interest on the Notes
to the date of maturity or redemption, as the case may be, together with
irrevocable instructions from the Company directing the Trustee to apply such
funds to the payment thereof at maturity or redemption, as the case may be;

 

(2)           the
Company has paid all other sums payable under this Indenture by the Company;
and

 

(3)           the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel stating that all conditions precedent under this Indenture relating to
the satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and
discharge of this Indenture, if money shall have been deposited with the Trustee
pursuant to subclause (b) of clause (1) of this Section 11.01, the provisions
of Section 11.02 and Section 9.04 shall survive such satisfaction and discharge.

 

SECTION 11.02.                              Application
of Trust Money.

 

Subject to the provisions of Section 9.04,
all cash in United States Dollars, Government Securities or a combination of
cash in United States Dollars and Government Securities deposited with the
Trustee pursuant to Section 11.01 shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium and Additional Interest, if any) and
interest for whose payment such money has been deposited with the Trustee; but
such money need not be segregated from other funds except to the extent
required by law.

 

76

 

If the Trustee or Paying Agent is unable to
apply any money or Government Securities in accordance with Section 11.01 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 any Guarantor’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 11.01 hereof; provided
that if the Company has made any payment of principal of, premium and
Additional Interest, if any, or interest on any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

ARTICLE
TWELVE

GUARANTEE OF NOTES

 

SECTION 12.01.                              Note
Guarantee.

 

Subject to the provisions of this
Article Twelve and the terms of the Note Guarantee attached hereto as Exhibit E,
each Guarantor hereby jointly and severally unconditionally guarantees to each
Holder and to the Trustee, on behalf of the Holders, (i) the due and punctual
payment of the principal of, and premium, if any, and interest on each Note,
when and as the same shall become due and payable, whether at maturity, by
acceleration or otherwise, the due and punctual payment of interest on the overdue
principal of, and premium, if any, and interest on the Notes, to the extent
lawful, and the due and punctual performance of all other Obligations of the
Company to the Holders or the Trustee all in accordance with the terms of such
Note and this Indenture, and (ii) in the case of any extension of time of payment
or renewal of any Notes or any of such other Obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, at stated maturity, by acceleration or otherwise.  Each Guarantor hereby agrees that its obligations
hereunder shall be absolute and unconditional, irrespective of, and shall be
unaffected by, any invalidity, irregularity or unenforceability of any such
Note or this Indenture, any failure to enforce the provisions of any such Note
or this Indenture, any waiver, modification or indulgence granted to the
Company with respect thereto by the Holder of such Note or the Trustee, or any
other circumstances which may otherwise constitute a legal or equitable discharge
of a surety or such Guarantor.

 

Each Guarantor hereby waives diligence,
presentment, filing of claims with a court in the event of merger or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest or notice with respect to any such Note or the Indebtedness evidenced
thereby and all demands whatsoever, and covenants that this Note Guarantee will
not be discharged as to any such Note except by payment in full of the
principal thereof, premium if any, and interest thereon and as provided in Section 11.01.  Each Guarantor further agrees that, as
between such Guarantor, on the one hand, and the Holders and the Trustee, on
the other hand, (i) the maturity of the Obligations guaranteed hereby may be
accelerated as provided in Article Six hereof for the purposes of this
Note Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Obligations guaranteed hereby,
and (ii) in the event of any declaration of acceleration of such Obligations as
provided in Article Six, such Obligations (whether or not due and payable)
shall forthwith become due and payable by each Guarantor for the purpose of
this Note Guarantee.  In addition,
without limiting the foregoing provisions, upon the effectiveness of an
acceleration under Article Six, the Trustee shall promptly make a demand
for payment on the Notes under the Note Guarantee provided for in this
Article Twelve and not discharged.

 

77

 

The Note Guarantee set forth in this
Section 12.01 shall not be valid or become obligatory for any purpose with
respect to a Note until the certificate of authentication on such Note shall
have been signed by or on behalf of the Trustee.

 

SECTION 12.02.                              Execution
and Delivery of Note Guarantees.

 

To evidence the Note Guarantee set forth in
this Article Twelve, each Guarantor hereby agrees that a notation of such
Note Guarantee shall be placed on each Note authenticated and made available
for delivery by the Trustee and that this Note Guarantee shall be executed on
behalf of each Guarantor by the manual or facsimile signature of an Officer of
each Guarantor.

 

Each Guarantor hereby agrees that the Note
Guarantee set forth in Section 12.01 shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such Note Guarantee.

 

The delivery of any Note by the Trustee,
after the authentication thereof hereunder, shall constitute due delivery of
the Note Guarantee set forth in this Indenture on behalf of each Guarantor.

 

SECTION 12.03.                              Limitation
of Note Guarantee.

 

The obligations of each Guarantor are limited
to the maximum amount as will, after giving effect to all other contingent and
fixed liabilities of such Guarantor (including, without limitation, any guarantees
of Senior Indebtedness) and after giving effect to any collections from or
payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Note Guarantee or pursuant to its
contribution obligations under this Indenture, result in the obligations of
such Guarantor under the Note Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under federal or state law.  In making any calculation relevant to determining
such maximum amount, all Senior Indebtedness shall be deemed to have been incurred
prior to the Issue Date.

 

SECTION 12.04.                              Additional
Guarantors.

 

The Company covenants and agrees that it will
cause any Restricted Subsidiary which becomes obligated to guarantee the Notes,
pursuant to the terms of this Indenture, to execute a supplemental indenture
satisfactory in form and substance to the Trustee pursuant to which such
Restricted Subsidiary shall guarantee the obligations of the Company under the
Notes and this Indenture in accordance with this Article Twelve with the
same effect and to the same extent as if such Person had been named herein as a
Guarantor.  Upon the execution of such a
supplemental indenture, the Note Guarantee of such Restricted Subsidiary shall
be deemed to be notated on each outstanding Note.  Notes delivered by the Trustee after the execution
and delivery of such supplemental indenture shall include the notation of the Note
Guarantee of such Restricted Subsidiary but the failure to include such a notation
shall not otherwise effect the validity or enforceability of such Note Guarantee.

 

SECTION 12.05.                              Subordination
of Note Guarantee.

 

The obligation of each Guarantor under its
Note Guarantee pursuant to this Article Twelve shall be junior and subordinated
to the prior payment in full of the Guarantor Senior Indebtedness of such Guarantor
in cash, Cash Equivalents or other cash equivalents reasonably acceptable to
the holders of such Guarantor Senior Indebtedness of such Guarantor on the same
basis as the Notes are junior and subordinated to Senior Indebtedness of the
Company.  For the purposes of the
foregoing sentence, the Trustee and the Holders shall have the right to receive
and/or retain payments by any of the Guarantors

 

78

 

only at such times as they may receive and/or
retain payments in respect of the Notes pursuant to this Indenture, including
Article Eight.

 

SECTION 12.06.                              Waiver
of Subrogation.

 

Each Guarantor hereby irrevocably waives any
claim or other rights which it may now or hereafter acquire against the Company
that arise from the existence, payment, performance or enforcement of such Guarantor’s
obligations under its Note Guarantee and this Indenture, including, without
limitation, any right of subrogation, reimbursement, exoneration, indemnification,
and any right to participate in any claim or remedy of any Holder of Notes
against the Company, whether or not such claim, remedy or right arises in
equity, or under contract, statute or common law, including, without
limitation, the right to take or receive from the Company, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights.  If any amount shall be paid to any to any
Guarantor in violation of the preceding sentence and the Notes shall not have
been paid in full, such amount shall have been deemed to have been paid to such
Guarantor for the benefit of, and held in trust for the benefit of, the
Holders, and shall forthwith be paid to the Trustee for the benefit of such
Holders to be credited and applied upon the Notes, whether matured or
unmatured, in accordance with the terms of this Indenture.  Each Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that the waiver set forth in this Section
12.06 is knowingly made in contemplation of such benefits.

 

SECTION 12.07.                              Contribution.

 

In order to provide for just and equitable
contribution among the Guarantors, the Guarantors agree, inter se,
that in the event any payment or distribution is made by any Guarantor (a “Funding Guarantor”) under its Note
Guarantee, such Funding Guarantor shall be entitled to contribution from all
other Guarantors in a pro rata amount
based on the Adjusted Net Assets of each Guarantor (including the Funding
Guarantor) for all payments, damages and expenses incurred by that Funding
Guarantor in discharging the Company’s obligations with respect to the Notes or
any other Guarantor’s Obligations with respect to its Note Guarantee.

 

ARTICLE THIRTEEN

 

MISCELLANEOUS

 

SECTION 13.01.                              Trust
Indenture Act Controls.

 

This Indenture is subject to the provisions of the
TIA that are required to be a part of this Indenture, and shall, to the extent
applicable, be governed by such provisions.  If any provision of this Indenture modifies
any TIA provision that may be so modified, such TIA provision shall be deemed
to apply to this Indenture as so modified.  If any provision of this Indenture excludes
any TIA provision that may be so excluded, such TIA provision shall be excluded
from this Indenture.

 

The provisions of TIA §§ 310 through 317 that impose
duties on any Person (including the provisions automatically deemed included
unless expressly excluded by this Indenture) are a part of and govern this
Indenture, whether or not physically contained herein.

 

79

 

SECTION 13.02.                              Notices.

 

Any notice or communication shall be sufficiently
given if in writing and delivered in person, by facsimile and confirmed by
overnight courier, or mailed by first-class mail addressed as follows:

 

if
to the Company:

 

NBTY,
Inc.

90 Orville Drive

Bohemia, NY 11716

 

Attention:  Chief Financial Officer

 

Facsimile:   (631) 567-7148

Telephone:  (631) 567-9500

 

with
a copy, which shall not constitute notice, to:

 

Milbank,
Tweed, Hadley & McCloy LLP

1 Chase Manhattan Plaza

New York, NY 10005

 

Attention:  Jay D. Grushkin, Esq.

 

Facsimile:   (212) 822-5346

Telephone:  (212) 530-5346

 

if
to the Trustee:

 

The Bank of New York

101 Barclay Street, Floor 8W

New York, New York 10286

 

Attention: 
Corporate Trust Administration

 

Facsimile: 
(212) 815-5707

 

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

 

Any notice or communication mailed, first-class,
postage prepaid, to a Holder including any notice delivered in connection with
TIA § 310(b), TIA § 313(c), TIA § 314(a) and TIA § 315(b), shall be mailed to
him at his address as set forth on the register for the Notes and shall be sufficiently
given to him if so mailed within the time prescribed.  To the extent required by the TIA, any notice
or communication shall also be mailed to any Person described in TIA § 313(c).

 

Failure to mail a notice or communication to a
Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.  Except for a notice to
the Trustee, which is deemed given only when received, if a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

 

80

 

SECTION 13.03.                              Communications
by Holders with Other Holders.

 

Holders may communicate pursuant to TIA § 312(b)
with other Holders with respect to their rights under this Indenture or the Notes.
 The Company, the Trustee, the Registrar
and any other person shall have the protection of TIA § 312(c) with respect to
the disclosure of any information as to the names and addresses of the Holders.  The Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under TIA
§ 312(b).

 

SECTION 13.04.                              Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company to
the Trustee to take or refrain from taking any action under this Indenture, the
Company shall furnish to the Trustee at the request of the Trustee:

 

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

 

(2)           an Opinion of
Counsel in form and substance satisfactory to the Trustee stating that, in the
opinion of such counsel, all such conditions precedent have been complied with;
provided, however, that with respect to
matters of fact an Opinion of Counsel may rely on an Officers’ Certificate or
certificates of public officials.

 

SECTION 13.05.                              Statements
Required in Certificate.

 

Each certificate with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

 

(1)           a statement that the
person making such certificate 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 contained in such certificate are based;

 

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

 

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

 

SECTION 13.06.                              Rules
by Trustee, Paying Agent, Registrar.

 

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

 

SECTION 13.07.                              Governing
Law.

 

The laws of the State of New York shall govern this
Indenture, the Note Guarantees and the Notes without regard to principles of conflicts
of law.

 

81

 

SECTION 13.08.                              No
Recourse Against Others.

 

No director, officer, employee, incorporator,
manager or stockholder of the Company, any Guarantor or any of their respective
Affiliates, as such, shall have any liability for any obligations of the
Company under the Notes or this Indenture or the Note Guarantees or for any
claim based on, in respect of, or by reason of, such obligations or their
creation.  Each holder of Notes by accepting
a Note waives and releases all such liability. 
The waiver and release are part of the consideration for issuance of the
Notes.

 

SECTION 13.09.                              Successors.

 

All agreements of the Company in this Indenture and
the Notes shall bind its successor. All agreements of the Trustee in this
Indenture shall bind its successor.

 

SECTION 13.10.                              Counterpart
Originals.

 

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

 

SECTION 13.11.                              Severability.

 

In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby, and a Holder shall have no claim therefor against any party
hereto.

 

SECTION 13.12.                              No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another
indenture, loan or debt agreement of the Company or a Subsidiary of the
Company.  Any such indenture, loan or
debt agreement may not be used to interpret this Indenture.

 

SECTION 13.13.                              Legal
Holidays.

 

If a payment date is a not a Business Day at a place
of payment, payment may be made at that place on the next succeeding Business
Day, and no interest shall accrue for the intervening period.

 

[Signature Pages Follow]

 

82

 

SIGNATURES

 

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

 

	
   

  	
  NBTY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael C. Slade

  	
   

  
	
   

  	
   

  	
  Name: Michael C. Slade

  
	
   

  	
   

  	
  Title: Senior Vice President 

  

 

S-1

 

ARCO PHARMACEUTICALS,
INC.

BIOSMART DIRECT SALES, LLC

DE TUINEN LTD.

DIABETES AMERICAN RESEARCH CORP.

DYNAMIC ESSENTIALS (DE), INC.

EUROLEAN RESEARCH, LLC

FOOD SYSTEMS, INC.

HEALTHWATCHERS (DE), INC.

MET-RX NUTRITION, INC.

MET-RX SUBSTRATE TECHNOLOGY, INC.

MET-RX USA, INC.

NABARCO ADVERTISING ASSOCIATES, INC.

NATURAL WEALTH NUTRITION CORPORATION

NATURESMART, LLC

NBTY AVIATION, LLC

NBTY CAM COMPANY

NBTY CANADA ACQUISITION, INC.

NBTY CHINA HOLDINGS, INC.

NBTY CHINA, INC.

NBTY DISTRIBUTION, INC.

NBTY FLIGHT SERVICES, LLC

NBTY PAH, LLC

NBTY TRANSPORTATION, INC.

NBTY UKRAINE 1, LLC

NBTY UKRAINE 2, LLC

NBTY UKRAINE, INC.

NUTRITION HEADQUARTERS (DE), INC.

OMNI VITAMIN AND NUTRITION CORP.

PHYSIOLOGICS, LLC

PRECISION ENGINEERED LIMITED (USA)

PURITAN’S PRIDE, INC.

REXALL, INC.

REXALL SUNDOWN, INC.

REXALL US DELAWARE, INC.

RICHARDSON LABS, INC.

RXSD INC.

SUNDOWN, INC.

THE NON-IRRADIATED HERBAL 

MANUFACTURERS GROUP, LLC

UNITED VITAMIN
MANUFACTURING CORP.

WORLDWIDE SPORT NUTRITIONAL 

SUPPLEMENTS, INC.

 

 

	
   

  	
  By:

  	
  /s/ Harvey Kamil

  	
   

  
	
   

  	
   

  	
  Name: Harvey Kamil

  
	
   

  	
   

  	
  Title: President

  

 

S-1

 

AMERICAN
HEALTH, INC.

ARTHRITIS RESEARCH CORP.

GOOD ‘N NATURAL MANUFACTURING CORP.

HOLLAND & BARRETT LTD.

LIFE’S FINEST, INC.

NATURAL WEALTH NUTRITION CORPORATION

NATURE’S BOUNTY INC.

NATURE’S BOUNTY MANUFACTURING CORP.

NATURE’S BOUNTY, INC.

PRECISION ENGINEERED LIMITED (USA)

UNITED STATES NUTRITION, INC.

UNITED VITAMIN MANUFACTURING CORP.

VITAMIN WORLD (BOCA), LLC

VITAMIN WORLD (VI), INC.

VITAMIN WORLD OF GUAM LLC

VITAMIN WORLD ONLINE, INC.

VITAMIN WORLD OUTLET STORES, INC.

VITAMIN WORLD, INC.

 

 

	
   

  	
  By:

  	
  /s/ Michael C. Slade

  	
   

  
	
   

  	
   

  	
  Name: Michael C. Slade

  
	
   

  	
   

  	
  Title: Senior Vice President 

  

 

S-2

 

	
   

  	
  NBTY CAH COMPANY

  NBTY MANUFACTURING, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dan Parkhideh

  	
   

  
	
   

  	
   

  	
  Name: Dan Parkhideh

  
	
   

  	
   

  	
  Title: Secretary

  
				

 

S-3

 

	
   

  	
  THE BANK OF NEW YORK,

  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Julie D. Salovitch-Miller

  	
   

  
	
   

  	
   

  	
  Name: Julie D. Salovitch-Miller

  
	
   

  	
   

  	
  Title: Vice President

  
				

 

S-4

 

Exhibit A

 

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

 

[PRIVATE PLACEMENT LEGEND]

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE OR JURISDICTION. NEITHER THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

 

THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE
HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR
WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY,
PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS [IN THE
CASE OF RULE 144A NOTES: TWO YEARS] [IN THE CASE OF REGULATION S NOTES: 40
DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH
THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR
ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2),
(3) OR (7) UNDER THE SECURITIES

 

(1)           This paragraph should only be added if the Security is
issued in global form.

 

A-1

 

ACT THAT IS AN INSTITUTIONAL ACCREDITED
INVESTOR ACQUIRING THE SECURITY 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, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND
THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSE (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED
UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

A-2

 

Exhibit
B

 

NBTY, INC.

7 1/8% Senior Subordinated Note

due October 1, 2015 

 

	
   

  	
  CUSIP
  No.:  [       ]

  
	
  No.
  [         ]

  	
  $[            ]

  

 

 

NBTY, INC., a Delaware corporation (the “Company”, which term includes any
successor corporation), for value received promises to pay to [      ] or registered assigns, the principal
sum of [          ] Dollars,
on October 1, 2015.

 

Interest Payment Dates:  April 1 and October 1, commencing on April 1,
2006.

 

Interest Record Dates:  March 15 and September 15.

 

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

 

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

 

	
   

  	
  NBTY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  
	
  Dated:
  September 23, 2005

  

 

B-1

 

[FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION]

 

This is one of the 7 1/8% Senior Subordinated
Notes due October 1, 2015 described in the within-mentioned Indenture.

 

Dated:
September 23, 2005

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
   as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

B-2

 

(REVERSE OF SECURITY)

 

NBTY, INC.

 

7 1/8% Senior Subordinated Note

due October 1, 2015

 

1.             Interest.

 

NBTY, INC., a Delaware corporation (the “Company”), promises to pay interest
and Additional Interest, if any, on the principal amount of this Note at the
rate per annum shown above.  Cash interest
on the Notes will accrue from and including the most recent date to which
interest has been paid or, if no interest has been paid, from the Issue
Date.  The Company will pay interest and
Additional Interest, if any, semi-annually in arrears on each Interest Payment
Date, commencing April 1, 2006, to the stated payment date.  Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

The Company shall pay interest and Additional
Interest, if any, on overdue principal from time to time on demand and on
overdue installments of interest (without regard to any applicable grace
periods) to the extent lawful from time to time on demand, in each case at the
rate borne by the Notes.

 

2.             Method of Payment.

 

The Company will pay interest on the Notes
and Additional Interest, if any, to the Persons who are registered Holders of
Notes at the close of business on the March 15 or September 15 (whether or not
a Business Day), as the case may be, next preceding the Interest Payment Date,
even if such Notes are canceled after such record date and on or before such
Interest Payment Date, except as provided in Section 2.12 of the Indenture with
respect to defaulted interest.  Payment
of interest and Additional Interest, if any, may be made by check mailed to the
Holders at their addresses set forth in the register of Holders, provided that payment by wire transfer of immediately
available funds will be required with respect to principal of and interest,
premium and Additional Interest, if any, on all Global Notes and all other
Notes the Holders of which shall have provided wire transfer instructions to
the Company or the Paying Agent.  Such
payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

 

3.             Paying Agent and Registrar.

 

Initially, The Bank of New York (the “Trustee”) will act as Paying Agent
and Registrar.  The Company may change
any Paying Agent or Registrar without notice to the Holders.  The Company or any of its Subsidiaries may act
as Registrar.

 

4.             Indenture.

 

The Company issued the Notes under an Indenture
dated as of September 23, 2005 (the “Indenture”) by
and among the Company, the Guarantors from time to time party thereto and the
Trustee.  The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939, as amended (15 U.S.
Code §§ 77aaa-77bbbb) (the “Trust Indenture Act”).  The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a statement
of such terms.

 

B-3

 

5.             Optional Redemption.

 

(a)           The
Notes shall be redeemable at the option of the Company, in whole or in part, at
any time on or after October 1, 2010, at the redemption prices (expressed as a
percentage of principal amount) set forth below, plus accrued and unpaid
interest thereon, if any, to the applicable Redemption Date, if redeemed during
the 12-month period beginning on October 1 of the years indicated below:

 

	
  

  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  103.563

  	
  %

  
	
  2011

  	
   

  	
  102.375

  	
  %

  
	
  2012

  	
   

  	
  101.188

  	
  %

  
	
  2013 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)           At
any time and from time to time on or prior to October 1, 2008, the Company may
redeem in the aggregate up to 35% of the aggregate principal amount of the
Notes (calculated after giving effect to any Additional Notes) with the net
cash proceeds of one or more Equity Offerings by the Company at a redemption
price in cash equal to 107.125% of the principal amount thereof, plus accrued
and unpaid interest thereon, if any, to the Redemption Date; provided, however,  that
at least 65% of the aggregate principal amount of the Notes (calculated after
giving effect to any Additional Notes) must remain outstanding immediately
after giving effect to each such redemption (excluding any Notes held by the
Company or any of its Affiliates). 
Notice of any such redemption shall be given within 90 days after the
date of the closing of the relevant Equity Offering of the Company.

 

(c)           The
Notes may be redeemed, in whole or in part, at any time prior to October 1,
2010 at the option of the Company upon not less than 30 nor more than 60 days’
prior notice mailed by first-class mail to each holder of Notes at its
registered address, at a redemption price equal to 100% of the principal amount
of the Notes redeemed plus the Applicable Premium as of, and accrued and
unpaid interest to, the applicable redemption date.  “Applicable Premium” means, with
respect to any Note on any applicable Redemption Date, the greater of:

 

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

 

(2)           the excess, if any, of:

 

(a)           the present value at such Redemption
Date of (i) the redemption price of such Note at October 1, 2010 (as set forth
in the table above) plus (ii) all required interest payments (excluding accrued
and unpaid interest to such redemption date) due on such Note through October 1,
2010, computed using a discount rate equal to the Treasury Rate as of such
redemption date plus 50 basis points; over

 

(b)           the principal amount of such Note.

 

“Treasury Rate” means, as of any Redemption
Date, the yield to maturity at the time of computation of United States
Treasury securities with a constant maturity (as compiled and published in the
most recent Federal Reserve Statistical Release H.15 (519) which has
become publicly available at least two Business Days prior to the redemption
date (or, if such Statistical Release is no longer published, any publicly
available source of similar market data)) most nearly equal to the period from
the redemption date to October 1, 2010; provided, however, that if the period from the applicable Redemption

 

B-4

 

Date to October 1, 2010 is not equal to the constant
maturity of a United States Treasury security for which a weekly average yield
is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields
of United States Treasury securities for which such yields are given, except
that if the period from the applicable Redemption Date to October 1, 2010
is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

 

(d)           Any
redemption pursuant to this paragraph 5 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 of the Indenture.

 

6.             Mandatory
Redemption.

 

The Company shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

 

7.             Notice of Redemption.

 

Notice of redemption will be mailed by first-class
mail at least 30 days but not more than 60 days before the Redemption Date to
each Holder of Notes to be redeemed at its registered address.  The Trustee may select for redemption
portions of the principal amount of Notes that have denominations equal to or
larger than $1,000 principal amount.  Notes
and portions of them the Trustee so selects shall be in amounts of $1,000
principal amount or integral multiples thereof.

 

If any Note is to be redeemed in part only, the
notice of redemption that relates to such Note shall state the portion of the
principal amount thereof to be redeemed. 
A new Note in a principal amount equal to the unredeemed portion thereof
will be issued in the name of the Holder thereof upon cancellation of the
original Note.  On and after the
Redemption Date, interest will cease to accrue on Notes or portions thereof
called for redemption so long as the Company has deposited with the Paying
Agent for the Notes funds in satisfaction of the redemption price pursuant to
the Indenture and the Paying Agent is not prohibited from paying such funds to
the Holders pursuant to the terms of the Indenture.

 

8.             Change of Control Offer.

 

Following the occurrence of a Change of Control (the
date of such occurrence being the “Change of Control Date”),
the Company shall, within 30 days after the Change of Control Date, make an
Offer to Purchase all Notes then outstanding at a purchase price in cash equal
to 101% of the aggregate principal amount thereof, plus accrued and unpaid
interest thereon, if any, to the Purchase Date (subject to the right of Holders
of record on the relevant Interest Record Date to receive interest due on the
relevant Interest Payment Date).

 

An Offer to Purchase may be made in advance of a
Change of Control, and conditioned upon the occurrence such Change of Control,
if a definitive agreement is in place for a transaction that would constitute a
Change of Control at the time of making such Offer to Purchase.

 

9.             Limitation on Disposition of
Assets.

 

The Company is, subject to certain conditions and
certain exceptions, obligated to make an Offer to Purchase Notes at a purchase
price equal to 100% of the principal amount thereof, plus accrued and unpaid
interest thereon, if any, to the Purchase Date (subject to the right of Holders
of record on the Interest Record Date to receive interest due on the relevant
Interest Payment Date) with the proceeds of certain asset dispositions.

 

B-5

 

10.           Denominations; Transfer; Exchange.

 

The Notes are in registered form, without coupons,
in denominations of $1,000 and integral multiples of $1,000.  A Holder shall register the transfer of or
exchange Notes in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to
pay certain transfer taxes or similar governmental charges payable in connection
therewith as permitted by the Indenture. 
The Registrar need not register the transfer of or exchange any Notes or
portions thereof selected for redemption, except the unredeemed portion of any
security being redeemed in part.

 

11.           Persons Deemed Owners.

 

The registered Holder of a Note shall be treated as
the owner of it for all purposes.

 

12.           Unclaimed Funds.

 

If funds for the payment of principal or interest
remain unclaimed for two years, the Trustee and the Paying Agent will repay the
funds to the Company at its written request. 
After that, all liability of the Trustee and such Paying Agent with
respect to such funds shall cease.

 

13.           Legal Defeasance and Covenant
Defeasance.

 

The Company may be discharged from its obligations
under the Indenture and the Notes, except for certain provisions thereof, and
may be discharged from obligations to comply with certain covenants contained
in the Indenture and the Notes, in each case upon satisfaction of certain
conditions specified in the Indenture.

 

14.           Subordination.

 

All obligations of the Company under and in respect
of the Notes are subordinated and junior in right of payment to the extent and
in the manner provided in Article Eight of the Indenture, to the prior payment
in full in cash of all amounts payable under Senior Indebtedness of the
Company.

 

15.           Amendment; Supplement; Waiver.

 

Subject to certain exceptions, the Indenture and the
Notes may be amended or supplemented with the written consent of the Holders of
at least a majority in principal amount of the Notes then outstanding, and any
existing Default or Event of Default or compliance with any provision may be
waived with the consent of the Holders of a majority in aggregate principal
amount of the Notes then outstanding. 
Without notice to or consent of any Holder, the parties thereto may
amend or supplement the Indenture and the Notes to, among other things, cure
any ambiguity, defect or inconsistency or to provide for the issuance of
Additional Notes and Note Guarantees, provide for assumption by a successor
corporation or comply with any requirements of the SEC in connection with the
qualification of the Indenture under the TIA, or make any other change that
does not adversely affect the rights of any Holder of a Note in any material
respect.

 

16.           Restrictive Covenants.

 

The Indenture contains certain covenants that, among
other things, limit the ability of the Company and its Restricted Subsidiaries
to make restricted payments, to incur indebtedness, to create liens, to sell
assets, to permit restrictions on dividends and other payments by Restricted
Subsidiaries to

 

B-6

 

the Company, to consolidate, merge or sell all or
substantially all of its assets and to engage in transactions with
affiliates.  The limitations are subject
to a number of important qualifications and exceptions.  The Company must report annually to the
Trustee on compliance with such limitations.

 

17.           Defaults and Remedies.

 

If an Event of Default (other than an Event of
Default specified in clause (h) or (i) of Section 6.01 with respect to the Company)
occurs and is continuing, the Trustee or the Holders of at least 25% in principal
amount of Notes then outstanding may declare the principal of, premium, if any,
and accrued interest on all the Notes to be due and payable immediately in the
manner and with the effect provided in the Indenture.  Holders of Notes may not enforce the
Indenture or the Notes except as provided in the Indenture.  The Trustee is not obligated to enforce the
Indenture or the Notes unless it has received indemnity reasonably satisfactory
to it.  The Indenture permits, subject to
certain limitations therein provided, Holders of a majority in principal amount
of the Notes then outstanding to direct the Trustee in its exercise of any
trust or power.  The Trustee may withhold
from Holders of Notes notice of certain continuing Defaults or Events of
Default if it determines that withholding notice is in their interest.

 

18.           Trustee Dealings with Company.

 

The Trustee under the Indenture, in its individual
or any other capacity, may become the owner or pledgee of Notes and may
otherwise deal with the Company, its Subsidiaries or their respective
Affiliates as if it were not the Trustee.

 

19.           No Recourse Against Others.

 

No director, officer, employee, incorporator,
manager or stockholder of the Company, any Guarantor, or any of their respective
Affiliates shall have any liability for any obligation of the Company or any of
its Affiliates under the Notes or the Indenture or the Note Guarantees or for
any claim based on, in respect of or by reason of, such obligations or their
creation.  Each Holder by accepting a Note
waives and releases all such liability. 
The waiver and release are part of the consideration for the issuance of
the Notes.

 

20.           Authentication.

 

This Note shall not be valid until the Trustee or
authenticating agent signs the certificate of authentication on this Note.

 

21.           Abbreviations and Defined Terms.

 

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

 

22.           CUSIP and ISIN Numbers.

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP or ISIN numbers to be printed on the Notes as a convenience to the
Holders of the Notes.  No representation
is made as to the accuracy of such numbers as printed on the Notes and reliance
may be placed only on the other identification numbers printed hereon.

 

B-7

 

23.           Registration Rights.

 

Pursuant to the Registration Rights
Agreement, the Company will be obligated upon the occurrence of certain events
to consummate an exchange offer pursuant to which the Holder of this Note shall
have the right to exchange this Note for a 7 1/8% Senior Subordinated Note
due 2015 of the Company (an “Unrestricted Security”)
which has been registered under the Securities Act, in like principal amount
and having terms identical in all material respects to the Initial Notes.  The Holders shall be entitled to receive
Additional Interest in the event such exchange offer is not consummated and
upon certain other conditions, all pursuant to and in accordance with the terms
of the Registration Rights Agreement.

 

24.           Governing Law.

 

The laws of the State of New York shall
govern the Indenture and this Note without regard to principles of conflicts of
laws.

 

B-8

 

ASSIGNMENT FORM

 

	
  I
  or we assign and transfer this Note to

  
	
   

  
	
   

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

  
	
   

  
	
   

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

  
	
   

  
	
  and
  irrevocably appoint

  	
   

  
	
  agent
  to transfer this Note on the books of the Company. The agent may substitute another
  to act for him.

  

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Signed
  exactly as name appears

  
	
   

  	
   

  	
   

  	
   

  	
  on
  the other side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  Participant
  in a recognized Signature Guarantee

  
	
   

  	
  Medallion
  Program (or other signature guarantor

  
	
   

  	
  program
  reasonably acceptable to the Trustee)

  
							

 

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 4.05 or Section 4.14 of the Indenture,
check the appropriate box:

 

Section 4.05 [      ]

Section 4.14 [      ]

 

If you want to elect to have only part of this Note
purchased by the Company pursuant to Section 4.05 or Section 4.14 of the
Indenture, state the amount:  $                

 

	
  Dated:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Signed
  exactly as name appears

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  on
  the other side of this Note)

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  Participant
  in a recognized Signature Guarantee

  
	
   

  	
  Medallion
  Program (or other signature guarantor

  
	
   

  	
  program
  reasonably acceptable to the Trustee)

  
							

 

 

Exhibit C

 

FORM OF CERTIFICATE TO BE

DELIVERED IN CONNECTION WITH

TRANSFERS TO NON-QIB INSTITUTIONAL ACCREDITED INVESTORS

 

                  ,
     

 

THE BANK OF NEW YORK

101 Barclay Street, Floor 8W

New York, New York 10286

 

 

Attention:

 

Ladies and Gentlemen:

 

In connection with our proposed purchase of 7 1/8%
Senior Subordinated Notes due 2015 (the “Notes”) of
NBTY, INC., a Delaware corporation (the “Issuer”), we confirm
that:

 

1.             We understand that any subsequent
transfer of the Notes is subject to certain restrictions and conditions set
forth in the Indenture relating to the Notes (the “Indenture”)
and the undersigned agrees to be bound by, and not to resell, pledge or
otherwise transfer the Notes except in compliance with, such restrictions and
conditions and the Securities Act of 1933, as amended (the “Securities Act”), and all applicable state securities laws.

 

2.             We understand that the offer and
sale of the Notes have not been registered under the Securities Act, and that
the Notes may not be offered, sold, pledged or otherwise transferred except as
permitted in the following sentence.  We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell, offer, pledge or otherwise
transfer any Notes, we will do so only (a) to the Issuer,
(b) pursuant to a registration statement that has been declared effective
under the Securities Act, (c) for so long as the securities are eligible
for resale pursuant to Rule 144A under the Securities Act, to a person we
reasonably believe is a “qualified institutional buyer” as defined in Rule 144A
under the Securities Act that purchases for its own account or for the account
of a qualified institutional buyer to whom notice is given that the transfer is
being made in reliance on Rule 144A, (d) pursuant to offers and sales that
occur outside the United States within the meaning of Regulation S under the
Securities Act, (e) to an institutional “accredited investor” within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is an
institutional accredited investor acquiring the security 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, or (f) pursuant to another available
exemption from the registration requirements of the Securities Act, subject to
the Issuer’s and the Trustee’s right prior to any such offer, sale or transfer
pursuant to clauses (e) or (f) to require the delivery of an opinion of
counsel, certification and/or other information satisfactory to each of them.

 

3.             We are not acquiring the Notes for
or on behalf of, and will not transfer the Notes to, any employee benefit plan
subject to Title I of the Employee Retirement Income Security Act

 

C-1

 

of 1974, as
amended (“ERISA”), any plan, individual retirement
accounts or other arrangements subject to Section 4975 of the Internal
Revenue Code of 1986, as amended (the “Code”), or
provisions under any federal, state, local, or non-U.S. or other laws or regulations
that are similar to such provisions of ERISA of the Code or any entity whose
underlying assets are considered to include “plan assets” of such plans,
accounts or arrangements, except as permitted in the sections entitled “Transfer
restrictions” of the Offering Memorandum.

 

4.             We understand that, on any proposed
resale of any Notes, we will be required to furnish to the Trustee and the
Issuer such certification, legal opinions and other information as the Trustee
and the Issuer may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. 
We further understand that the Notes purchased by us will bear a legend
to the foregoing effect.

 

5.             We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D
under the Securities Act) and 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 Notes, and we and any accounts for which we are acting are
each able to bear the economic risk of our or their investment, as the case may
be.

 

6.             We are acquiring the Notes
purchased by us for our account or for one or more accounts (each of which is
an institutional “accredited investor”) as to each of which we exercise sole
investment discretion.

 

You, as Trustee, the Issuer, counsel for the
Issuer and others are entitled to rely upon this letter and are irrevocably authorized
to produce this letter or a copy hereof to any interested party in any
administrative or legal proceeding or official inquiry with respect to the matters
covered hereby.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

C-2

 

Exhibit D

 

FORM OF CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS

PURSUANT TO REGULATION S

 

                ,
     

 

THE BANK OF NEW YORK

101 Barclay Street, Floor 8W

New York, New York 10286

 

 

Attention:

 

	
   

  	
  Re:

  	
  NBTY, Inc. (the “Issuer”)

  
	
   

  	
   

  	
  7 1/8% Senior Subordinated Notes due 2015 (the “Notes”)

  	
   

  

 

Ladies and Gentlemen:

 

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

 

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

 

(2)           either (a) at the time the buy offer
was originated, the transferee was outside the United States or we and any person
acting on our behalf reasonably believed that the transferee was outside the
United States, or (b) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither we nor any
person acting on our behalf knows that the transaction has been prearranged
with a buyer in the United States;

 

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

 

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

 

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

 

D-1

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

D-2

 

Exhibit E

 

NOTE GUARANTEE

 

 

For value received, subject to the
immediately following paragraph, the undersigned hereby unconditionally guarantees,
as principal obligor and not only as a surety, to the Holders of Notes the cash
payment in United States dollars of principal of, premium, if any, and interest
on such Note (and including additional interest payable thereon) in the amounts
and at the times when due and interest on the overdue principal, premium, if
any, and interest, if any, of such Note, if lawful, and the payment or performance
of all other Obligations of the Company under the Indenture (as defined below)
or the Notes, to the Holders of Notes and the Trustee, all in accordance with
and subject to the terms and limitations of the Notes, Article Twelve of
the Indenture and this Note Guarantee. 
This Note Guarantee will become effective in accordance with
Article Twelve of the Indenture and its terms shall be evidenced
therein.  The validity and enforceability
of this Note Guarantee shall not be affected by the fact that it is not affixed
to any particular Note.  Capitalized
terms used but not defined herein shall have the meanings ascribed to them in the
Indenture dated as of September 23, 2005, among NBTY, Inc., a Delaware
corporation (the “Company”), the Guarantors from
time to time party thereto and The Bank of New York, as trustee (the “Trustee”) (as amended or supplemented, the “Indenture”).

 

This Note Guarantee shall become effective upon the earlier of (x) the date within three
Business Days after the date of redemption of all of the Company’s issued and
outstanding 8 5/8% Notes due September 15, 2007 and (y) the date that is
45 days after the Issue Date.

 

THIS NOTE GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.  Each Guarantor hereby agrees to submit to the
jurisdiction of the courts of the State of New York or in the United States
District Court for the Southern District of New York, in any action or
proceeding arising out of or relating to this Note Guarantee.

 

 

 

This Note Guarantee is subject to release
upon the terms set forth in the Indenture.

 

AMERICAN
HEALTH, INC.

ARCO PHARMACEUTICALS, INC.

ARTHRITIS RESEARCH CORP.

BIOSMART DIRECT SALES, LLC

DE TUINEN LTD.

DIABETES AMERICAN RESEARCH CORP.

DYNAMIC ESSENTIALS (DE), INC.

EUROLEAN RESEARCH, LLC

FOOD SYSTEMS, INC.

GOOD ‘N NATURAL MANUFACTURING CORP.

HEALTHWATCHERS (DE), INC.

HOLLAND & BARRETT LTD.

LIFE’S FINEST, INC.

MET-RX NUTRITION, INC.

MET-RX SUBSTRATE TECHNOLOGY, INC.

MET-RX USA, INC.

NABARCO ADVERTISING ASSOCIATES, INC.

NATURAL WEALTH NUTRITION CORPORATION

NATURE’S BOUNTY INC.

NATURE’S BOUNTY MANUFACTURING CORP.

NATURE’S BOUNTY, INC.

NATURESMART, LLC

NBTY AVIATION, LLC

NBTY CAH COMPANY

NBTY CAM COMPANY

NBTY CANADA ACQUISITION, INC.

NBTY CHINA HOLDINGS, INC.

NBTY CHINA, INC.

NBTY DISTRIBUTION, INC.

NBTY FLIGHT SERVICES, LLC

NBTY MANUFACTURING, LLC

NBTY PAH, LLC

NBTY TRANSPORTATION, INC.

NBTY UKRAINE 1, LLC

NBTY UKRAINE 2, LLC

NBTY UKRAINE, INC.

NUTRITION HEADQUARTERS (DE), INC.

OMNI VITAMIN AND NUTRITION CORP.

PHYSIOLOGICS, LLC

PRECISION ENGINEERED LIMITED (USA)

PURITAN’S PRIDE, INC.

REXALL, INC.

REXALL SUNDOWN, INC.

REXALL US DELAWARE, INC.

RICHARDSON LABS, INC.

RXSD INC.

SUNDOWN, INC.

THE NON-IRRADIATED HERBAL 

 

 

E-2

 

MANUFACTURERS GROUP, LLC

UNITED STATES
NUTRITION, INC.

UNITED VITAMIN MANUFACTURING CORP.

VITAMIN WORLD (BOCA), LLC

VITAMIN WORLD (VI), INC.

VITAMIN WORLD OF GUAM LLC

VITAMIN WORLD ONLINE, INC.

VITAMIN WORLD OUTLET STORES, INC.

VITAMIN WORLD, INC.

WORLDWIDE SPORT NUTRITIONAL 

SUPPLEMENTS, INC.

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

E-3

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