Document:

Exhibit
10.1

AMENDMENT NO. 3 TO LOAN
AGREEMENT

This Amendment No. 3 to Loan Agreement dated as
of October 6, 2006 (this “Amendment”) is entered into with reference to
the Loan Agreement dated as of September 5, 2003, as amended by that
certain Amendment No. 1 to Loan Agreement dated as of February 18,
2004 and that certain Amendment No. 2 to Loan Agreement dated as of
December 10, 2004 (as so amended, the “Loan Agreement”), among Bally
Technologies Inc. (formerly known as Alliance Gaming Corporation), the Lenders,
the Syndication Agent, the Documentation Agent, Banc of America Securities LLC
and CIBC World Markets Corp., as Joint Lead Arrangers and Joint Book Managers,
and Bank of America, N.A., as Administrative Agent.  Capitalized terms used in this Amendment and
not otherwise defined herein are used with the meanings set forth for those
terms in the Loan Agreement.

1.             Amendments. 
The Borrower and the Administrative Agent (acting with the consent of
the Requisite Lenders) hereby agree to amend the Loan Agreement as follows:

(a)           Clause (d) of the definition of
the term “EBITDA” in Section 1.1 of the Loan Agreement is hereby amended
by inserting the parenthetical phrase “(plus interest income in respect of
trade receivables that is deducted from interest expense in determining such
Interest Charges)” after the words “Interest Charges”.

(b)           The definition of the term “EBITDA”
in Section 1.1 of the Loan Agreement is hereby further amended by adding the
following clause immediately prior to the end thereof:

“; provided, further,
that for any period commencing on or after April 1, 2006 and ending on or
before September 30, 2007, the figure “$5,000,000” referenced in clause (g)
above shall be increased to “$10,000,000”

(c)           Section 7.1(b) of the Loan Agreement
is hereby amended by inserting the following parenthetical phrase after the
words “Fiscal Year” in the second line thereof:

“(other  than the Fiscal Year ending on
June 30, 2006)”

(d)           Section 7.1(b) of the Loan Agreement
is hereby further amended by adding the following clause immediately prior to
the end thereof:

“; provided that
all such information, reports and certificates for the Fiscal Year ending on
June 30, 2006, together with the Borrower’s annual report on Form 10-K for such
Fiscal Year, shall be delivered on or before December 31, 2006;”

(e)           Section 7.1(f) of the Loan Agreement
is hereby further amended by adding the following clause immediately prior to
the end thereof:

“; provided,
however, that in no event shall the Borrower’s quarterly reports on Form 10-Q
for the Fiscal Quarters ending on September 30,

 

2005, December 31,
2005 and March 31, 2006 be delivered later than December 31, 2006;”

(f)            Section 7.2 of the Loan Agreement is
hereby amended by adding the following sentence to the end thereof:

“For the avoidance of
doubt, it is understood and agreed that the definitive Compliance Certificate
for the Fiscal Quarters ending on September 30, 2005, December 31, 2005 and
March 31, 2006 shall be delivered when the Borrower files its quarterly report
on Form 10-Q for such Fiscal Quarter and the Compliance Certificate for the
Fiscal Year ending on June 30, 2006 shall be delivered with the financial
statements required under Section 7.1(b), but in each such case no event
later than December 31, 2006.”

(g)           Section 9.1(c) of the Loan Agreement
is hereby amended by adding the following immediately prior to the end thereof:

“the Borrower fails to
deliver on or before December 31, 2006 any financial information and
certificates required by Sections 7.1(b), 7.1(f) and 7.2 hereof for the Fiscal
Quarters ending on September 30, 2005, December 31, 2005 and March 31, 2006 and
the Fiscal Year ending on June 30, 2006; or”

2.             Condition Precedent.  The effectiveness of this Amendment shall be
conditioned upon the receipt by the Administrative Agent of
(a) counterparts of this Amendment executed by the Borrower,
(b) written consents hereto executed by the Requisite Lenders in
substantially the form of Exhibit A attached hereto, (c) written
consents hereto executed by each of the Guarantors, (d) an amendment fee
in an amount equal to 0.25% of the aggregate Commitments of those Lenders that
shall have executed and returned consents in the form of Exhibit A to the
Administrative Agent on or before 5:00 p.m., pacific time, on October 16,
2006, which fee shall be distributed by the Administrative Agent to such
consenting Lenders and (e) the reasonable fees, costs and expenses of the
Administrative Agent and BAS in connection with this Amendment.

3.             Representations and Warranties.  The Borrower represents and warrants to the
Administrative Agent and the Lenders that, as of the date of this Amendment,
(i) after giving effect to this Amendment, no Default or Event of Default has
occurred and remains continuing, and (ii) the representations and warranties
contained in Article IV of the Loan Agreement and in each other Loan
Document (except (A) for representations and warranties which expressly speak
as of a particular date or are no longer true and correct as a result of a
change which is permitted by the Loan Agreement or applicable Loan Document,
(B) as disclosed by the Borrower and approved in writing by the Requisite
Lenders, or (C) for the representations and warranties set forth in
Sections 4.4(a), 4.6 (first sentence), 4.11 and 4.18 of the Loan
Agreement) are true and correct as if made on the date hereof.

 2
 

 

4.             Confirmation. In all other respects, the terms of
the Loan Agreement and the other Loan Documents are hereby confirmed.

 3
 

 

IN WITNESS WHEREOF, the
Borrower and the Administrative Agent have executed this Amendment as of the
date first written above by their duly authorized representatives.

	
  

  	
  BALLY
  TECHNOLOGIES INC. (formerly known

  as Alliance Gaming Corporation)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA,
  N.A., as Administrative

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

 4

[Exhibit A to
Amendment]

CONSENT OF LENDER

This Consent of Lender is delivered by the undersigned
Lender to Bank of America, N.A., as Administrative Agent, with reference to the
Loan Agreement dated as of September 5, 2003 (the “Loan Agreement”), among
Bally Technologies Inc., the Lenders, Syndication Agent, Documentation Agent
and Joint Lead Arrangers and Joint Book Managers referred to therein, and Bank
of America, N.A., as Administrative Agent. 
Capitalized terms used herein are used with the meanings set forth for
those terms in the Loan Agreement.

The undersigned is a party to the Loan Agreement and
hereby consents to the execution and delivery of the proposed Amendment
No. 3 to Loan Agreement by the Administrative Agent on behalf of the
Lenders party to the Loan Agreement, substantially in the form of the draft
presented to the undersigned.

 

	
  

  	
   

  	
   

  
	
  [Name of Lender]

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
					

 

 A-1

[Exhibit B to
Amendment]

CONSENT OF
GUARANTORS

This Consent of Guarantors is delivered by the
undersigned with reference to the Loan Agreement dated as of September 5,
2003 (the “Loan Agreement”), among Bally Technologies Inc., the Lenders,
Syndication Agent, Documentation Agent and Joint Lead Arrangers and Joint Book
Managers referred to therein, and Bank of America, N.A., as Administrative
Agent.  Capitalized terms used herein are
used with the meanings set forth for those terms in the Loan Agreement.

The undersigned hereby (a) consent to the
execution and delivery of the proposed Amendment No. 3 to Loan Agreement
by the Borrower and the Administrative Agent, substantially in the form of the
draft presented to the undersigned and (b) represent and warrant to the
Administrative Agent and the Lenders that each of the Guaranties and the
Collateral Documents executed by the undersigned remain in full force and
effect in accordance with their respective terms.

	
  

  	
  “Guarantor”

  
	
   

  	
   

  
	
   

  	
  BALLY GAMING, INC.

  
	
   

  	
  (d/b/a Bally Gaming
  and Systems),

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALLIANCE HOLDING
  COMPANY,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BALLY GAMING
  INTERNATIONAL, INC.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 B-1
 

 

 

	
  

  	
  APT GAMES, INC.,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOREIGN GAMING
  VENTURES, INC.,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LOUISIANA
  VENTURES, INC.,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNITED GAMING
  RAINBOW,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ACSC
  ACQUISITIONS INC.,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADVANCED CASINO
  SYSTEMS

  CORPORATION, a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 B-2
 

 

 

	
  

  	
  CMP ACQUISITIONS
  INC.,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CASINO
  MARKETPLACE DEVELOPMENT CORPORATION, a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DATA CONCEPTS
  INTERNATIONAL, INC.,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CMS, LLC,

  
	
   

  	
  a Mississippi
  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

 B-3Exhibit
4.1

EXECUTION COPY

 

 

INDALEX HOLDING CORP.

 11-1/2 %
Second-Priority Senior Secured Notes due 2014

INDENTURE

Dated as of February 2, 2006

U.S. Bank National Association,

as
Trustee

 

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  Section

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  7.08; 7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  12.03

  
	
   

  	
  (c)

  	
   

  	
  12.03

  
	
  313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)(1)

  	
   

  	
  7.06

  
	
   

  	
  (b)(2)

  	
   

  	
  7.06

  
	
   

  	
  (c)

  	
   

  	
  12.02

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  314

  	
  (a)

  	
   

  	
  4.02; 4.09;
  12.02

  
	
   

  	
  (b)

  	
   

  	
  11.02

  
	
   

  	
  (c)(1)

  	
   

  	
  12.04

  
	
   

  	
  (c)(2)

  	
   

  	
  12.04

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  11.04

  
	
   

  	
  (e)

  	
   

  	
  12.05

  
	
   

  	
  (f)

  	
   

  	
  4.09

  
	
  315

  	
  (a)

  	
   

  	
  7.01

  
	
   

  	
  (b)

  	
   

  	
  7.05; 12.02

  
	
   

  	
  (c)

  	
   

  	
  7.01

  
	
   

  	
  (d)

  	
   

  	
  7.01

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a)(last sentence)

  	
   

  	
  12.06

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  2.04

  
	
  318

  	
  (a)

  	
   

  	
  12.01

  

 

N.A. means Not
Applicable

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

 

 

TABLE OF CONTENTS

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 1

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Definitions and
  Incorporation by Reference

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
   

  	
  Definitions.

  	
   

  	
  1

  
	
  SECTION 1.02.

  	
   

  	
  Other Definitions.

  	
   

  	
  40

  
	
  SECTION 1.03.

  	
   

  	
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  40

  
	
  SECTION 1.04.

  	
   

  	
  Rules of Construction

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 2

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Securities

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  Form and Dating

  	
   

  	
  42

  
	
  SECTION 2.02.

  	
   

  	
  Execution and Authentication

  	
   

  	
  42

  
	
  SECTION 2.03.

  	
   

  	
  Registrar and Paying Agent

  	
   

  	
  43

  
	
  SECTION 2.04.

  	
   

  	
  Paying Agent To Hold Money in Trust

  	
   

  	
  43

  
	
  SECTION 2.05.

  	
   

  	
  Securityholder Lists

  	
   

  	
  43

  
	
  SECTION 2.06.

  	
   

  	
  Transfer and Exchange

  	
   

  	
  44

  
	
  SECTION 2.07.

  	
   

  	
  Replacement Securities

  	
   

  	
  44

  
	
  SECTION 2.08.

  	
   

  	
  Outstanding Securities

  	
   

  	
  44

  
	
  SECTION 2.09.

  	
   

  	
  Temporary Securities

  	
   

  	
  44

  
	
  SECTION 2.10.

  	
   

  	
  Cancellation

  	
   

  	
  45

  
	
  SECTION 2.11.

  	
   

  	
  Defaulted Interest

  	
   

  	
  45

  
	
  SECTION 2.12.

  	
   

  	
  CUSIP Numbers, ISINs, etc

  	
   

  	
  45

  
	
  SECTION 2.13.

  	
   

  	
  Issuance of Additional Securities

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 3

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Redemption

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
   

  	
  Notices to Trustee

  	
   

  	
  46

  
	
  SECTION 3.02.

  	
   

  	
  Selection of Securities to Be Redeemed

  	
   

  	
  46

  
	
  SECTION 3.03.

  	
   

  	
  Notice of Redemption

  	
   

  	
  46

  
	
  SECTION 3.04.

  	
   

  	
  Effect of Notice of Redemption

  	
   

  	
  47

  
	
  SECTION 3.05.

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  47

  
	
  SECTION 3.06.

  	
   

  	
  Securities Redeemed in Part

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 4

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Covenants

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  Payment of Securities

  	
   

  	
  48

  
	
  SECTION 4.02.

  	
   

  	
  SEC Reports

  	
   

  	
  48

  

 

 i
 

 

 

	
  SECTION 4.03.

  	
   

  	
  Limitation on Indebtedness

  	
   

  	
  49

  
	
  SECTION 4.04.

  	
   

  	
  Limitation on Restricted Payments

  	
   

  	
  54

  
	
  SECTION 4.05.

  	
   

  	
  Limitation on Restrictions on Distributions from
  Restricted Subsidiaries

  	
   

  	
  60

  
	
  SECTION 4.06.

  	
   

  	
  Limitation on Sales of Assets and Subsidiary Stock

  	
   

  	
  62

  
	
  SECTION 4.07.

  	
   

  	
  Limitation on Affiliate Transactions

  	
   

  	
  67

  
	
  SECTION 4.08.

  	
   

  	
  Limitation on Line of Business

  	
   

  	
  69

  
	
  SECTION 4.09.

  	
   

  	
  Change of Control

  	
   

  	
  69

  
	
  SECTION 4.10.

  	
   

  	
  Limitation on Liens

  	
   

  	
  71

  
	
  SECTION 4.11.

  	
   

  	
  Limitation on Sale/Leaseback Transactions

  	
   

  	
  71

  
	
  SECTION 4.12.

  	
   

  	
  Future Guarantors

  	
   

  	
  72

  
	
  SECTION 4.13.

  	
   

  	
  Compliance Certificate

  	
   

  	
  72

  
	
  SECTION 4.14.

  	
   

  	
  Further Instruments and Acts

  	
   

  	
  72

  
	
  SECTION 4.15.

  	
   

  	
  Excess Cash Flow Offer

  	
   

  	
  72

  
	
  SECTION 4.16.

  	
   

  	
  Impairment of Security Interest

  	
   

  	
  74

  
	
  SECTION 4.17.

  	
   

  	
  After-Acquired Property

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 5

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Successor
  Company

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  Merger or Transfer of Assets

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 6

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Defaults and
  Remedies

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  Events of Default

  	
   

  	
  77

  
	
  SECTION 6.02.

  	
   

  	
  Acceleration

  	
   

  	
  79

  
	
  SECTION 6.03.

  	
   

  	
  Other Remedies

  	
   

  	
  79

  
	
  SECTION 6.04.

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  80

  
	
  SECTION 6.05.

  	
   

  	
  Control by Majority

  	
   

  	
  80

  
	
  SECTION 6.06.

  	
   

  	
  Limitation on Suits

  	
   

  	
  80

  
	
  SECTION 6.07.

  	
   

  	
  Rights of Holders to Receive Payment

  	
   

  	
  81

  
	
  SECTION 6.08.

  	
   

  	
  Collection Suit by Trustee

  	
   

  	
  81

  
	
  SECTION 6.09.

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
  81

  
	
  SECTION 6.10.

  	
   

  	
  Priorities

  	
   

  	
  81

  
	
  SECTION 6.11.

  	
   

  	
  Undertaking for Costs

  	
   

  	
  82

  
	
  SECTION 6.12.

  	
   

  	
  Waiver of Stay or Extension Laws

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 7

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  Duties of Trustee

  	
   

  	
  82

  
	
  SECTION 7.02.

  	
   

  	
  Rights of Trustee

  	
   

  	
  83

  
	
  SECTION 7.03.

  	
   

  	
  Individual Rights of Trustee

  	
   

  	
  84

  

 

 ii
 

 

 

	
  SECTION 7.04.

  	
   

  	
  Trustee’s Disclaimer

  	
   

  	
  84

  
	
  SECTION 7.05.

  	
   

  	
  Notice of Defaults

  	
   

  	
  85

  
	
  SECTION 7.06.

  	
   

  	
  Reports by Trustee to Holders

  	
   

  	
  85

  
	
  SECTION 7.07.

  	
   

  	
  Compensation and Indemnity

  	
   

  	
  85

  
	
  SECTION 7.08.

  	
   

  	
  Replacement of Trustee

  	
   

  	
  86

  
	
  SECTION 7.09.

  	
   

  	
  Successor Trustee by Merger

  	
   

  	
  86

  
	
  SECTION 7.10.

  	
   

  	
  Eligibility; Disqualification

  	
   

  	
  87

  
	
  SECTION 7.11.

  	
   

  	
  Preferential Collection of Claims
  Against Company

  	
   

  	
  87

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 8

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discharge of
  Indenture; Defeasance

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
   

  	
  Discharge of Liability on
  Securities; Defeasance

  	
   

  	
  87

  
	
  SECTION 8.02.

  	
   

  	
  Conditions to Defeasance

  	
   

  	
  88

  
	
  SECTION 8.03.

  	
   

  	
  Application of Trust Money

  	
   

  	
  89

  
	
  SECTION 8.04.

  	
   

  	
  Repayment to Company

  	
   

  	
  89

  
	
  SECTION 8.05.

  	
   

  	
  Indemnity for Government Obligations

  	
   

  	
  90

  
	
  SECTION 8.06.

  	
   

  	
  Reinstatement

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 9

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amendments

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
   

  	
  Without Consent of Holders

  	
   

  	
  90

  
	
  SECTION 9.02.

  	
   

  	
  With Consent of Holders

  	
   

  	
  91

  
	
  SECTION 9.03.

  	
   

  	
  Compliance with Trust Indenture Act

  	
   

  	
  93

  
	
  SECTION 9.04.

  	
   

  	
  Revocation and Effect of Consents and Waivers

  	
   

  	
  93

  
	
  SECTION 9.05.

  	
   

  	
  Notation on or Exchange of Securities

  	
   

  	
  93

  
	
  SECTION 9.06.

  	
   

  	
  Trustee to Sign Amendments

  	
   

  	
  93

  
	
  SECTION 9.07.

  	
   

  	
  Payment for Consent

  	
   

  	
  94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 10

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Note Guaranties

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
   

  	
  Guaranties

  	
   

  	
  94

  
	
  SECTION 10.02.

  	
   

  	
  Limitation on Liability

  	
   

  	
  96

  
	
  SECTION 10.03.

  	
   

  	
  Successors and Assigns

  	
   

  	
  96

  
	
  SECTION 10.04.

  	
   

  	
  No Waiver

  	
   

  	
  96

  
	
  SECTION 10.05.

  	
   

  	
  Modification

  	
   

  	
  96

  
	
  SECTION 10.06.

  	
   

  	
  Release of Subsidiary Guarantors

  	
   

  	
  96

  
	
  SECTION 10.07.

  	
   

  	
  Contribution

  	
   

  	
  97

  

 

 iii
 

 

 

	
  Article 11

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Security
  Documents

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
   

  	
  Collateral and Security Documents

  	
   

  	
  97

  
	
  SECTION 11.02.

  	
   

  	
  Recordings and Opinions

  	
   

  	
  99

  
	
  SECTION 11.03.

  	
   

  	
  Release of Collateral

  	
   

  	
  99

  
	
  SECTION 11.04.

  	
   

  	
  Permitted Releases Not to Impair Lien; Trust
  Indenture Act Requirements

  	
   

  	
  101

  
	
  SECTION 11.05.

  	
   

  	
  Certificates of the Trustee

  	
   

  	
  102

  
	
  SECTION 11.06.

  	
   

  	
  Suits to Protect the Collateral

  	
   

  	
  102

  
	
  SECTION 11.07.

  	
   

  	
  Authorization of Receipt of Funds by the Trustee
  Under the Security Documents

  	
   

  	
  102

  
	
  SECTION 11.08.

  	
   

  	
  Purchaser Protected

  	
   

  	
  102

  
	
  SECTION 11.09.

  	
   

  	
  Powers Exercisable by Receiver or Trustee

  	
   

  	
  103

  
	
  SECTION 11.10.

  	
   

  	
  Release Upon Termination of the Company’s
  Obligations

  	
   

  	
  103

  
	
  SECTION 11.11.

  	
   

  	
  Trustee and Collateral Agent

  	
   

  	
  103

  
	
  SECTION 11.12.

  	
   

  	
  Designations

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 12

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Miscellaneous

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.01.

  	
   

  	
  Trust Indenture Act Controls

  	
   

  	
  104

  
	
  SECTION 12.02.

  	
   

  	
  Notices

  	
   

  	
  104

  
	
  SECTION 12.03.

  	
   

  	
  Communication by Holders with Other Holders

  	
   

  	
  105

  
	
  SECTION 12.04.

  	
   

  	
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  105

  
	
  SECTION 12.05.

  	
   

  	
  Statements Required in Certificate or Opinion

  	
   

  	
  106

  
	
  SECTION 12.06.

  	
   

  	
  When Securities Disregarded

  	
   

  	
  106

  
	
  SECTION 12.07.

  	
   

  	
  Rules by Trustee, Paying Agent and Registrar

  	
   

  	
  106

  
	
  SECTION 12.08.

  	
   

  	
  Legal Holidays

  	
   

  	
  106

  
	
  SECTION 12.09.

  	
   

  	
  Governing Law

  	
   

  	
  107

  
	
  SECTION 12.10.

  	
   

  	
  No Recourse Against Others

  	
   

  	
  107

  
	
  SECTION 12.11.

  	
   

  	
  Successors

  	
   

  	
  107

  
	
  SECTION 12.12.

  	
   

  	
  Multiple Originals

  	
   

  	
  107

  
	
  SECTION 12.13.

  	
   

  	
  Table of Contents; Headings

  	
   

  	
  107

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rule 144A/Regulation S Appendix

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit 1 to Appendix –

  	
   

  	
  Form of Initial Security

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A –

  	
   

  	
  Form of Exchange Security

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B –

  	
   

  	
  Form of Transferee Letter of Representation

  	
   

  	
   

  
							

 

 iv

 

INDENTURE dated as
of February 2, 2006, among Indalex Holding Corp., a Delaware corporation (the “Company”),
each Note Guarantor from time to time party hereto and U.S. Bank National
Association, a national banking association, as trustee (the “Trustee”).

Each party agrees as
follows for the benefit of the other parties and for the equal and ratable
benefit of the Holders of the Securities issued under this Indenture:

Article 1

Definitions and
Incorporation by Reference

SECTION 1.01.             Definitions.

“AAG” means Asia Aluminum Group Limited.

“AAG Entity” means any Wholly Owned Subsidiary of the Company
that owns no material assets other than the AAG Investment.

“AAG Investment” means the Capital Stock of AAG owned directly or
indirectly by the Company or its Restricted Subsidiaries on the Issue Date.

“AAG Offer” means an offer to purchase the Securities at a
purchase price (expressed as a percentage of principal amount) equal to 105%,
plus accrued and unpaid interest, if any, to the date of purchase, in accordance
with the procedures (including prorating in the event of oversubscription) set
forth in Section 4.06(d).  If the
aggregate purchase price of the Securities tendered exceeds the AAG Proceeds
allotted to their purchase, the Company shall select the Securities to be
purchased on a pro  rata basis but in denominations of $1,000
principal amount or multiples thereof.

“AAG Proceeds” means the Net Available Cash from sales or other
dispositions of the AAG Investment or the Capital Stock of any AAG Entity.

“AAG Shareholders Agreement” means the Shareholders Agreement
relating to AAG dated June 8, 2001 among AAH, AAG Indalex UK Limited and
Indalex, Inc. as in effect on the date hereof.

“AAH” means Asia Aluminum Holdings Limited.

“Acquisition” means,
pursuant to the stock purchase agreement dated September 16, 2005, the
acquisition by Indalex Holdings Finance, Inc. of all the outstanding capital
stock of Indalex Inc. and Indalex Limited.

“Additional Assets”
means:

 

 

(1)           any assets (other than working
capital assets) used in a Related Business;

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

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

provided,
however, that any such Restricted Subsidiary described in
clause (2) or (3) above is primarily engaged in a Related Business.

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

“Affiliate” of any
specified Person means any other Person, directly or indirectly, controlling or
controlled by or under direct or indirect common control with such specified
Person. For the purposes of this definition, “control” when used with respect
to any Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing. For purposes of Sections 4.04, 4.06
and 4.07 only, “Affiliate” shall also mean any beneficial owner of Capital
Stock representing 10% or more of the total voting power of the Voting Stock
(on a fully diluted basis) of the Company or of rights or warrants to purchase
such Capital Stock (whether or not currently exercisable) and any Person who
would be an Affiliate of any such beneficial owner pursuant to the first
sentence hereof.

“Applicable Indebtedness”
means:

(1)           in respect of any asset that is the
subject of an Asset Disposition at a time when such asset is included in the
Collateral, any First-Priority Lien Obligation that is secured at such time by
such asset; or

(2)           in respect of any asset that is the
subject of an Asset Disposition at a time when such asset is owned, directly or
indirectly, by a Restricted Subsidiary that is not a Subsidiary Guarantor but
the Capital Stock of which is included in the Collateral, (A) any First-Priority
Lien Obligation that is secured at such time by such Capital Stock,
(B) any Indebtedness of such Restricted Subsidiary (other than any
Disqualified Stock) or (C) any Indebtedness (other than any Disqualified
Stock) of any other Restricted Subsidiary that is a Wholly Owned Subsidiary but
is not a Subsidiary Guarantor (in each case under clause (B) or (C), other
than Indebtedness owed to the Company or an Affiliate of the Company); or

 2
 

 

 

(3)           in respect of any other asset
(including any asset previously constituting Collateral that has been released
from the Liens securing the Securities and Note Guaranties), Senior
Indebtedness of the Company or Senior Indebtedness (other than Disqualified
Stock), of a Wholly Owned Subsidiary (in each case, other than indebtedness
owed to the Company or an Affiliate of the Company).

“Applicable Senior
Indebtedness” means:

(1)           in respect of any asset that is the
subject of an Asset Disposition at a time when such asset is included in the
Collateral, Senior Indebtedness of the Company that is secured at such time by
such asset; or

(2)           in respect of any asset that is the
subject of an Asset Disposition at a time when such asset is owned, directly or
indirectly, by a Restricted Subsidiary that is not a Subsidiary Guarantor but
the Capital Stock of which is included in the Collateral, any First-Priority
Lien Obligation of the Company; or

(3)           in respect of any other asset
(including any asset previously constituting Collateral that has been released
from the Liens securing the Securities and Note Guaranties), Senior
Indebtedness of the Company.

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

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

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

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

other than, in the case
of clauses (1), (2) and (3) above,

(A)          a disposition by a Restricted
Subsidiary to the Company or by the Company or a Restricted Subsidiary to a
Restricted Subsidiary;

(B)           for purposes of Section 4.06 only,
(i) a disposition that constitutes a Restricted Payment (or would constitute a
Restricted Payment but for the exclusions from the definition thereof) and that
is not prohibited by Section 4.04 and (ii) a disposition of all or
substantially all the assets of the Company in accordance with Section 5.01;

 3
 

 

 

(C)           a disposition of assets (including
Capital Stock) with a fair market value of less than $2.0 million;

(D)          a disposition of cash or Temporary
Cash Investments;

(E)           the creation of a Lien (but not the
sale or other disposition of the property subject to such Lien);

(F)           a disposition of assets that are worn
out, obsolete or damaged or no longer used or useful in the business of the
Company or any Restricted Subsidiary, as the case may be, in the ordinary
course of business;

(G)           the sale of the Capital Stock of an
Unrestricted Subsidiary;

(H)          the sale of accounts receivable in the
ordinary course of business; and

(I)            a transfer or sale of Receivables
and Related Assets of the type specified in the definition of “Qualified
Receivables Transaction” to a Receivables Entity or to any other Person in
connection with a Qualified Receivables Transaction or the creation of a Lien
on any such Receivables or Related Assets in connection with a Qualified
Receivables Transaction.

“Attributable Debt” in
respect of a Sale/Leaseback Transaction means, as at the time of determination,
the present value (discounted at the interest rate borne by the Securities,
compounded annually) of the total obligations of the lessee for rental payments
during the remaining term of the lease included in such Sale/Leaseback
Transaction (including any period for which such lease has been extended); provided,
however, that if such Sale/Leaseback Transaction results in a Capital
Lease Obligation, the amount of Indebtedness represented thereby shall be
determined in accordance with the definition of “Capital Lease Obligation”.

“Average Life” means, as
of the date of determination, with respect to any Indebtedness, the quotient
obtained by dividing:

(1)           the sum of the products of the
numbers of years from the date of determination to the dates of each successive
scheduled principal payment of or redemption or similar payment with respect to
such Indebtedness multiplied by the amount of such payment by

(2)           the sum of all such payments.

“Board of Directors” with
respect to a Person means the Board of Directors of such Person or any committee
thereof duly authorized to act on behalf of such Board.

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

 4
 

 

 

“Canadian Borrower” means
Indalex Limited, a wholly owned subsidiary of the Company.

“Capital Expenditures” means, for any period, expenditures
(including the aggregate amount of Capital Lease Obligations incurred during
such period) made by the Company or any of its Restricted Subsidiaries to
acquire or construct fixed assets, plant and equipment (including renewals,
improvements and replacements, but excluding repairs unless such repairs are
required to be capitalized in accordance with GAAP) during such period computed
in accordance with GAAP; provided,
however, that Capital
Expenditures shall not include any expenditure classified as a Permitted
Investment.

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

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

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

(1)           prior to the earlier to occur of
(A) the first public offering of common stock of Parent or (B) the
first public offering of common stock of the Company, (i) any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) other than
one or more Permitted Holders is or becomes the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act, except that such person shall
be deemed to have “beneficial ownership” of all shares that any such person has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of more than 35% of the
total voting power of the Voting Stock of Parent or the Company, and (ii) the
Permitted Holders “beneficially own” (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act), directly or indirectly, in the aggregate a lesser percentage
of the total voting power of the Voting Stock of Parent or the Company, as
applicable, than such other person and do not have the right or ability by
voting power, contract or otherwise to elect or designate for election a
majority of the Board of Directors of Parent or the Company, as applicable (for
the purposes of this clause (1), such other person shall be deemed to
beneficially own any Voting Stock of a person (“the specified entity”) held by
any other person (“the parent entity”), if such other person is the beneficial
owner (as

 5
 

 

 

defined in clause (i) above),
directly or indirectly, of a majority of the voting power of the Voting Stock
of such parent entity);

(2)           any “person” (as defined in clause
(1)(i) above), other than one or more Permitted Holders, is or becomes the
beneficial owner (as defined in clause (1)(i) above), directly or
indirectly, of a majority of the total voting power of the Voting Stock of
Parent or the Company (for the purposes of this clause (2), such person shall
be deemed to beneficially own any Voting Stock of a specified entity held by a
parent entity, if such other person is the beneficial owner, directly or
indirectly, of a majority of the voting power of the Voting Stock of such
parent entity);

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

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

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

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

“Collateral” means all
the collateral described in the Security Documents.

“Collateral Agent” means
the Trustee, in its capacity as the collateral agent under the Security
Documents, and any successor thereto in such capacity.

 6
 

 

 

“Commodity Agreement”
means any forward contract, swap, option, hedge or other similar financial
instrument or arrangement designed to protect against fluctuations in commodity
prices and not entered into for speculative purposes.

“Consolidated Coverage
Ratio” as of any date of determination means the ratio of (a) the
aggregate amount of EBITDA for the period of the most recent four consecutive
fiscal quarters for which internal financial statements are available to
(b) Consolidated Interest Expense for such four fiscal quarters; provided,
however, that:

(1)           if the Company or any Restricted
Subsidiary has Incurred any Indebtedness since the beginning of such period
that remains outstanding or if the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, or
both, EBITDA and Consolidated Interest Expense for such 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 period;

(2)           if the Company or any Restricted
Subsidiary has repaid, repurchased, defeased or otherwise discharged any
Indebtedness since the beginning of such period or if any Indebtedness is to be
repaid, repurchased, defeased or otherwise discharged (in each case other than
Indebtedness Incurred under any revolving credit facility unless such
Indebtedness has been permanently repaid and has not been replaced) on the date
of the transaction giving rise to the need to calculate the Consolidated
Coverage Ratio, EBITDA and Consolidated Interest Expense for such period shall
be calculated on a pro forma basis as if
such discharge had occurred on the first day of such period and as if the
Company or such Restricted Subsidiary had not earned the interest income
actually earned during such period in respect of cash or Temporary Cash
Investments used to repay, repurchase, defease or otherwise discharge such
Indebtedness;

(3)           if since the beginning of such period
the Company or any Restricted Subsidiary shall have made any Asset Disposition,
EBITDA for such period shall be reduced by an amount equal to EBITDA (if
positive) directly attributable to the assets which are the subject of such
Asset Disposition for such period, or increased by an amount equal to EBITDA
(if negative), directly attributable thereto for such period and Consolidated
Interest Expense for such period shall be reduced by an amount equal to the
Consolidated Interest Expense directly attributable to any Indebtedness of the
Company or any Restricted Subsidiary repaid, repurchased, defeased or otherwise
discharged with respect to the Company and its continuing Restricted
Subsidiaries in connection with such Asset Disposition for such period (or, if
the Capital Stock of any Restricted Subsidiary is sold, the Consolidated
Interest Expense for such period directly attributable to the Indebtedness of
such Restricted Subsidiary to the extent the Company and its continuing Restricted
Subsidiaries are no longer liable for such Indebtedness after such sale);

 7
 

 

 

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

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

(6)           if since the beginning of such period
any Person was designated as an Unrestricted Subsidiary or redesignated as or
otherwise became a Restricted Subsidiary, EBITDA and Consolidated Interest
Expense shall be calculated as if such event had occurred on the first day of
such period;

(7)           the EBITDA and Consolidated Interest
Expense of discontinued operations recorded on or after the date such
operations are classified as discontinued in accordance with GAAP shall be
excluded; and

(8)           for any four-quarter reference period
that includes any period of time prior to the Transactions, pro  forma
effect shall be given for such period (i) 
to the Transactions, (ii) to the other adjustments added to pro forma
EBITDA to calculate pro forma Adjusted EBITDA as set forth in the Offering
Memorandum in footnote (14) under “Summary―Summary historical and
unaudited pro forma condensed combined financial data” and (iii) the “non-Indalex
items” set forth in sub-footnote (f) to such footnote (14) (in each case,
without duplication of amounts otherwise included in the calculation of
EBITDA).

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 Interest Expense associated with any
Indebtedness Incurred in connection therewith, the pro forma calculations shall be determined in good faith by a
responsible financial or accounting Officer of the Company and, except for the
purpose of any calculation of the Consolidated Coverage Ratio made pursuant to
Section 4.04(a)(2), may include Pro Forma Cost Savings. If any Indebtedness
bears a floating rate of interest and is being given pro forma effect, the interest 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

 8
 

 

 

period (taking into
account any Interest Rate Agreement applicable to such Indebtedness if such
Interest Rate Agreement has a remaining term in excess of 12 months).

If any Indebtedness is
Incurred under a revolving credit facility and is being given pro forma effect, the interest on such
Indebtedness shall be calculated based on the average daily balance of such
Indebtedness for the four fiscal quarters subject to the pro forma calculation to the extent that such Indebtedness was
incurred solely for working capital purposes.

“Consolidated Current
Liabilities” as of the date of determination means the aggregate amount of
liabilities of the Company and its consolidated Restricted Subsidiaries which
may properly be classified as current liabilities (including taxes accrued as
estimated), on a consolidated basis, after eliminating:

(1)           all intercompany items between the
Company and any Restricted Subsidiary; and

(2)           all current maturities of long-term
Indebtedness, all as determined in accordance with GAAP consistently applied.

“Consolidated Interest
Expense” means, for any period, the total interest expense of the Company and
its consolidated Restricted Subsidiaries, plus, to the extent not included in
such total interest expense, and to the extent Incurred by the Company or its
Restricted Subsidiaries, without duplication:

(1)           interest expense attributable to
Capital Lease Obligations;

(2)           amortization of debt discount and
debt issuance cost;

(3)           capitalized interest;

(4)           non-cash interest expense;

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

(6)           net payments pursuant to Interest
Rate Agreements;

(7)           dividends accrued in respect of all
Disqualified Stock of the Company and all Preferred Stock of any Restricted
Subsidiary, in each case held by Persons other than the Company or a Restricted
Subsidiary (other than dividends payable solely in Capital Stock (other than
Disqualified Stock) of the Company or a Restricted Subsidiary); provided,
however, that such dividends shall be multiplied by a fraction the
numerator of which is one and the denominator of which is one minus the
effective combined tax rate of the issuer of such Preferred Stock (expressed as
a decimal) for such period (as estimated by the chief financial officer of the
Company in good faith);

 9
 

 

 

(8)           interest Incurred in connection with
Investments in discontinued operations;

(9)           interest accruing on any Indebtedness
of any Person (other than the Company and its Restricted Subsidiaries) to the
extent such Indebtedness is Guaranteed by (or secured by the assets of) the
Company or any Restricted Subsidiary; and

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

“Consolidated Net Income”
means, for any period, the net income of the Company and its consolidated
Subsidiaries; provided, however, that there shall not be included
in such Consolidated Net Income:

(1)           any net income of any Person (other
than the Company) if such Person is not a Restricted Subsidiary, except that
subject to the exclusion contained in clause (3) below, the Company’s
equity in the net income of any such Person for such period shall be included
in such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a Restricted
Subsidiary as a dividend or other distribution (subject, in the case of a
dividend or other distribution paid to a Restricted Subsidiary, to the
limitations contained in clause (2) below);

(2)           any net income of any Restricted
Subsidiary 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, except
that:

(A)          subject to the
exclusion contained in clause (3) below, the Company’s equity in the net
income of any such Restricted Subsidiary for such period shall be included in
such Consolidated Net Income to the extent that the net income of such
Restricted Subsidiary would be permitted at the date of determination to be
dividended to the Company without any prior approval or waiver (that has not
been obtained) pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules or governmental
regulations applicable to that Restricted Subsidiary or its stockholders
(subject, in the case of a dividend or other distribution paid to another
Restricted Subsidiary, to the limitation contained in this clause); and

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

 10

 

 

(3)           any gain (or loss) realized upon the
sale or other disposition of any assets of the Company, its consolidated
Subsidiaries or any other Person (including pursuant to any sale-and-leaseback
arrangement) which is not sold or otherwise disposed of in the ordinary course
of business and any gain (or loss) realized upon the sale or other disposition
of any Capital Stock of any Person;

(4)           extraordinary gains or losses;

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

(6)           any non-recurring costs and expenses
incurred in connection with the Transactions;

(7)           any non-cash compensation charges,
including any such charges arising from grants of stock options or restricted
stock grants or other equity-incentive programs for the benefit of officers and
directors;

(8)           any increase in amortization,
depreciation or cost of goods sold or other non-cash charges resulting from the
application of purchase accounting in relation to the Transactions or the
Honeywell Acquisition;

(9)           any non-cash goodwill impairment
charges resulting from the application of Statement of Financial Accounting
Standards No. 142;

(10)         any unrealized Statement of Financial
Accounting Standards No. 133 gain or loss in respect of Hedging Obligations;
and

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

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

“Consolidated Net
Tangible Assets” as of any date of determination, means the total amount of
assets (less accumulated depreciation and amortization, allowances for doubtful
receivables, other applicable reserves and other properly deductible items)
which would appear on a consolidated balance sheet of the Company and its
consolidated Restricted Subsidiaries, determined on a consolidated basis in
accordance with GAAP, and after giving effect to purchase accounting and after
deducting therefrom Consolidated Current Liabilities and, to the extent
otherwise included, the amounts of:

 11
 

 

 

(1)           minority interests in consolidated
Subsidiaries held by Persons other than the Company or a Restricted Subsidiary;

(2)           excess of cost over fair value of
assets of businesses acquired, as determined in good faith by the Board of
Directors of the Company;

(3)           any revaluation or other write-up in
book value of assets subsequent to the Issue Date as a result of a change in
the method of valuation in accordance with GAAP consistently applied;

(4)           unamortized debt discount and
expenses and other unamortized deferred charges, goodwill, patents, trademarks,
service marks, trade names, copyrights, licenses, organization or developmental
expenses and other intangible items;

(5)           treasury stock;

(6)           cash set apart and held in a sinking
or other analogous fund established for the purpose of redemption or other
retirement of Capital Stock to the extent such obligation is not reflected in
Consolidated Current Liabilities; and

(7)           Investments in and assets of
Unrestricted Subsidiaries.

“Consolidated Secured
Debt Ratio” means, as of any date of determination, the ratio of (a) the
sum of First-Priority Lien Obligations, Pari Passu Lien Obligations and the
outstanding principal amount of the Securities, in each case, as of such date
to (b) the aggregate amount of EBITDA for the period of the most recent
four consecutive fiscal quarters for which internal financial statements are
available, in each case with such pro forma adjustments as are consistent with
the pro forma adjustment provisions set forth in the definition of Consolidated
Coverage Ratio.

“Consolidated Total Debt
Ratio” means, as of any date of determination, the ratio of (a) the
Consolidated Total Indebtedness as of such date to (b) the aggregate
amount of EBITDA for the most recently completed fiscal year, in each case with
such pro forma adjustments as are consistent with the pro forma adjustment
provisions set forth in the definition of Consolidated Coverage Ratio.

“Consolidated Total
Indebtedness” means, as of any date of determination, an amount equal to the
sum of the aggregate amount of all outstanding Indebtedness of the Company and
its Restricted Subsidiaries (excluding any undrawn letters of credit issued in
the ordinary course of business), determined on a consolidated basis in
accordance with GAAP.

“Credit Agreement” means
the Credit Agreement, dated as of the Issue Date, by and among Parent, the
Company, certain of its Subsidiaries, the lenders referred to therein, JPMorgan
Chase Bank, N.A., as Administrative Agent, together with the related documents
thereto (including any term loans and revolving loans thereunder, any
guarantees and security documents), as amended, extended, renewed, restated,

 12
 

 

 

supplemented or
otherwise modified (in whole or in part, and without limitation as to amount,
terms, conditions, covenants and other provisions) from time to time, and any
agreement (and related document) governing Indebtedness Incurred to Refinance
(including one or more debt facilities, receivables financing facilities or
commercial paper facilities or indentures with banks or other institutional
lenders or a trustee providing for revolving credit loans, term loans,
receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders
against such receivables) or letters of credit or issuance of debt securities
to institutional investors), in whole or in part, the borrowings and
commitments then outstanding or permitted to be outstanding under such Credit
Agreement or a successor Credit Agreement, whether by the same or any other
lender or group of lenders.

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

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

“Designated Non-cash
Consideration” means the fair market value of non-cash consideration received
by the Company or any Restricted Subsidiary in connection with an Asset
Disposition that is so designated as Designated Non-cash Consideration pursuant
to an Officer’s Certificate, setting forth the basis of such valuation.

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

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

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

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

in each case on or prior
to the six month anniversary of the Stated Maturity of the Securities; provided,
however, that any Capital Stock that would not constitute Disqualified
Stock but for provisions thereof giving holders thereof the right to require
such Person to purchase or redeem such Capital Stock upon the occurrence of an “asset
sale” or “change of control” occurring prior to the six month anniversary of
the Stated Maturity of the Securities shall not constitute Disqualified Stock
if:

(1)           the “asset sale” or “change of
control” provisions applicable to such Capital Stock are not more favorable to
the holders of such Capital Stock than the terms applicable to the Securities
and described under Sections 4.06 and 4.09; and

 13
 

 

 

(2)           any such requirement only becomes operative
after compliance with such terms applicable to the Securities, including the
purchase of any Securities tendered pursuant thereto.

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

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

(1)           all income tax expense of the Company
and its consolidated Restricted Subsidiaries;

(2)           Consolidated Interest Expense;

(3)           depreciation and amortization expense
of the Company and its consolidated Restricted Subsidiaries (excluding
amortization expense attributable to a prepaid expenditure that was paid in
cash in a prior period);

(4)           any management, consulting or
advisory fees and reasonable out-of-pocket costs and expenses paid (or accrued
in respect of payment) to Sun Capital Partners Management III, LP or any of its
Affiliates in such period permitted pursuant to Section 4.07(b)(7), such
management, consulting or advisory fees (but not reasonable out-of-pocket costs
and expenses) not to exceed in any fiscal year an amount equal to the greater
of (i) $1.0 million and (ii) two percent (2.00%) of EBITDA for the immediately
preceding fiscal year;

(5)           all other non-cash charges of the
Company and its consolidated Restricted Subsidiaries (excluding any such
non-cash charge to the extent that it represents an accrual of or reserve for
cash expenditures in any future period) less all non-cash items of income of
the Company and its consolidated Restricted Subsidiaries (other than accruals
of revenue by the Company and its consolidated Restricted Subsidiaries in the
ordinary course of business);

(6)           non-recurring losses less any
non-recurring gains;

(7)           the amount of any restructuring
charges or reserves (which, for the avoidance of doubt shall include severance
contract termination costs, including future lease commitments, costs to
consolidate facilities and costs to relocate employees);

 14
 

 

 

(8)           all amounts charged to cost of sales
as a result of any inventory of the Company being accounted for under the LIFO
inventory valuation method in excess of the amount that would be charged if
such inventory was accounted for under the FIFO inventory valuation method; and

(9)           any non-recurring costs and expenses
related to any Equity Offering, Permitted Investment, acquisition,
recapitalization or Indebtedness permitted to be Incurred under this Indenture;

in each case for such
period. Notwithstanding the foregoing, the provision for taxes based on the
income or profits of, and the depreciation and amortization and non-cash
charges of, a Restricted Subsidiary shall be added to Consolidated Net Income
to compute EBITDA only to the extent (and in the same proportion, including by
reason of minority interests) that the net income or loss of such Restricted
Subsidiary was included in calculating Consolidated Net Income and only if a
corresponding amount would be permitted at the date of determination to be
dividended to the Company by such Restricted Subsidiary without prior approval
(that has not been obtained), pursuant to the terms of its charter and all
agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to such Restricted Subsidiary or its
stockholders.

“Equity Offering” means a
public or private primary offering of Capital Stock (other than Disqualified
Stock) of the Company or Parent, the proceeds of which are contributed to the
equity capital of the Company, other than (i) any public offering
registered on Form S-8, (ii) issuances upon the exercise of options
by the holders thereof and (iii) issuances to the Company or any
Subsidiary of the Company.

“Excess Cash Flow” means,
for any fiscal year, EBITDA for such year, minus each of the following (without
duplication):

(a)  to the
extent reducing Consolidated Net Income for such year, the provision for taxes
paid in cash based on income or profits or utilized in computing net loss;

(b)  to the
extent reducing Consolidated Net Income for such year, Consolidated Interest
Expense paid in cash;

(c)  Capital
Expenditures made during such year; and

(d)  any
reduction in the principal amount of Indebtedness resulting from principal
payments made on Indebtedness (other than (i) repayment of revolving extensions
of credit, except to the extent that any repayment of such Indebtedness is
accompanied by a permanent reduction in related loan commitments, (ii)
repayment of Securities tendered for in an AAG Offer during such fiscal year
and (iii) other repurchases or redemptions of Securities made during such
fiscal year) otherwise incurred in accordance with the Indenture measured from
the last day of the fiscal year preceding such fiscal year to the last day of
such fiscal year to the extent such

 15
 

 

 

payments were required by the Indenture or pursuant to
the terms of such Indebtedness.

“Excess Cash Flow Amount”
means, for any fiscal year, 75% of the Excess Cash Flow for such year.

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

“Excluded Contributions”
means the net cash proceeds received by the Company after the Issue Date from
(i) contributions to its common equity capital (other than from any of its
Subsidiaries) and (ii) the sale (other than to any Subsidiary of the
Company or any management equity plan or stock option plan or any other
management or employee benefit plan or agreement of the Company or any
Subsidiary) of Capital Stock (other than Disqualified Stock) of the Company in
each case designated as Excluded Contributions pursuant to an Officer’s
Certificate.

“Financing Transactions”
means (1) the issuance of the Securities and (2) the entrance into
the Credit Agreement by the Company and certain of its Subsidiaries and the
funding of the senior secured credit facilities thereunder on the Issue Date.

“First-Priority
After-Acquired Property” means any property (other than the initial collateral)
of Parent, the Company or any Subsidiary Guarantor that secures any
First-Priority Lien Obligations.

“First-Priority Lien
Obligations” means (i) all Indebtedness of Parent, the Company and the
Subsidiary Guarantors Incurred under Section 4.03(b)(1), (ii) all other
Obligations (not constituting Indebtedness) of Parent, the Company and the
Subsidiary Guarantors under the Credit Agreement and (iii) all other
Obligations of Parent, the Company and the Subsidiary Guarantors in respect of
Hedging Obligations or Obligations in respect of cash management services in connection
with Indebtedness described in clause (i) or Obligations described in
clause (ii).

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

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

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

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

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

 16
 

 

 

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

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

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

(2)           entered into for the purpose of
assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part);

provided,
however, that the term “Guarantee” shall not include endorsements for
collection or deposit in the ordinary course of business. The term “Guarantee”
used as a verb has a corresponding meaning. The term “Guarantor” shall mean any
Person Guaranteeing any obligation.

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

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

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

“Honeywell Acquisition” means the acquisition on March 31, 2005
of all the outstanding capital stock of Novar plc by Honeywell International,
Inc.

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

 17
 

 

 

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

(2)           the payment of regularly scheduled
interest in the form of additional Indebtedness of the same instrument or the
payment of regularly scheduled dividends on Capital Stock in the form of
additional Capital Stock of the same class and with the same terms; and

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

shall not be deemed to be
the Incurrence of Indebtedness.

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

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

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

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

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

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

(6)           all obligations of the type referred
to in clauses (1) through (5) of other Persons and all dividends of other
Persons for the payment of which, in

 18
 

 

 

either case, such Person
is responsible or liable, directly or indirectly, as obligor, guarantor or
otherwise, including by means of any Guarantee;

(7)           all obligations of the type referred
to in clauses (1) through (6) of other Persons secured by any Lien on any
property or asset of such Person (whether or not such obligation is assumed by
such Person), the amount of such obligation being deemed to be the lesser of
the fair market value of such property or assets and the amount of the
obligation so secured; and

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

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

The amount of
Indebtedness of any Person at any date shall be the outstanding balance at such
date of all unconditional obligations as described above; provided, however,
that in the case of Indebtedness sold at a discount, the amount of such
Indebtedness at any time shall be the accreted value thereof at such time.

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

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

“Initial Purchasers”
means J.P. Morgan Securities Inc., Harris Nesbitt Corp., Credit Suisse
Securities (USA) LLC, Morgan Joseph & Co., Inc. and Piper Jaffray & Co.

“Intercreditor Agent”
means the administrative agent under the Credit Agreement, and any successor
thereto in such capacity (including, if there shall be more than one Credit
Agreement, such agent, trustee or representative as shall be designated “Intercreditor
Agent” by holders of First-Priority Lien Obligations holding a majority of the
aggregate amount of the First-Priority Lien Obligations then outstanding).

“Intercreditor Agreement”
means the Intercreditor Agreement, dated as of the Issue Date, by and among the
Company, the Note Guarantors party thereto from time to time, the Trustee, as
Collateral Agent for the holders of the Securities, and the Intercreditor
Agent, substantially in the form attached to this Indenture, as amended,
supplemented or otherwise modified from time to time as permitted by this
Indenture.

 19
 

 

 

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

“Investment” in any
Person means any direct or indirect advance, loan (other than advances to
customers in the ordinary course of business that are recorded as accounts
receivable on the balance sheet of the lender) or other extensions of credit
(including by way of Guarantee or similar arrangement) or capital contribution
to (by means of any transfer of cash or other property to others or any payment
for property or services for the account or use of others), or any purchase or
acquisition of Capital Stock, Indebtedness or other similar instruments issued
by such Person. If the Company or any Restricted Subsidiary issues, sells or
otherwise disposes of any Capital Stock of a Person that is a Restricted
Subsidiary such that, after giving effect thereto, such Person is no longer a
Restricted Subsidiary, any Investment by the Company or any Restricted
Subsidiary in such Person remaining after giving effect thereto shall be deemed
to be a new Investment at such time.  The
acquisition by the Company or any Restricted Subsidiary of a Person that holds
an Investment in a third Person shall be deemed to be an Investment by the
Company or such Restricted Subsidiary in such third Person at such time. Except
as otherwise provided for herein, the amount of an Investment shall be its fair
market value at the time the Investment is made and without giving effect to
subsequent changes in value.

For purposes of the
definition of “Unrestricted Subsidiary”, the definition of “Restricted Payment”
and Section 4.04:

(1)           “Investment” shall include the
portion (proportionate to the Company’s equity interest in such Subsidiary) of
the fair market value of the net assets of any Subsidiary of the Company at the
time that such Subsidiary is designated an Unrestricted Subsidiary; provided,
however, that upon a redesignation of such Subsidiary as a Restricted
Subsidiary, the Company shall be deemed to continue to have a permanent “Investment”
in an Unrestricted Subsidiary equal to an amount (if positive) equal to (A) the
Company’s “Investment” in such Subsidiary at the time of such redesignation
less (B) the portion (proportionate to the Company’s equity interest in such
Subsidiary) of the fair market value of the net assets of such Subsidiary at
the time of such redesignation; and

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

“Issue Date” means
February 2, 2006.

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

 20

 

 

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

“Make-Whole Amount” means
in connection with any optional redemption of any Security, the greater of
(1) 1.0% of the principal amount of such Security and (2) the excess,
if any, of (A) the aggregate present value as of the date of such
redemption of the redemption price of such Security on February 1, 2010 and the
amount of interest (exclusive of interest accrued to the redemption date) that
would have been payable in respect of such Security through February 1, 2010 if
such redemption had not been made, determined by discounting, on a semiannual
basis, such redemption price and interest at the Treasury Rate (determined on
the Business Day preceding the date of such redemption) plus 0.5%, from the
respective dates on which such redemption price and interest would have been
payable if such redemption had not been made, over (B) the principal
amount of the Security being redeemed.

“Management Investors”
means those executive officers and employees of the Company acquiring any
Capital Stock in any direct or indirect parent company of the Company prior to,
on or within 90 calendar days following the Issue Date in connection with the
Transactions; provided that with respect to employees who are not
executive officers, such employees shall only be “Management Investors” to the
extent all such employees own in the aggregate less than 5.0% of the Capital
Stock on a fully diluted basis in any direct or indirect parent company of the
Company.

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

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

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

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

 21
 

 

 

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

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

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

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

“Net Fair Market Value,”
with respect to any non-cash property received by the Company in respect of the
issuance or sale of its Capital Stock, means the fair market value of such
property, determined as provided in Section 4.04(a), net of attorneys’
fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or
commissions and brokerage, consultant and other fees actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof.

“Note Guarantors” means
the Parent and the Subsidiary Guarantors, collectively.

“Note Guaranty” means the
Parent Guaranty or any Subsidiary Guaranty, as the context may require.

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

“Offering Memorandum”
means the final offering memorandum dated as of January 30, 2006 and used in
connection with the offering of the Securities.

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

“Officers’ Certificate”
means a certificate signed by two Officers.

 22
 

 

 

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

“Parent” means Indalex
Holdings Finance, Inc., a Delaware corporation and its successors, and not any
of its Subsidiaries.

“Parent Guarantor” means
Parent, in its capacity as guarantor of the Securities.

“Parent Guaranty” means
the Guarantee by Parent of the Company’s obligations with respect to the
Securities.

“Pari Passu Lien
Obligation” means any Indebtedness of the Company and the Restricted
Subsidiaries (including any Additional Securities) that is equally and ratably
secured with the Securities and is designated by the Company as Pari Passu Lien
Obligation.

“Permitted Asset Swap”
means any transfer of properties or assets by the Company or a Restricted
Subsidiary in which at least 90% of the consideration received by the
transferor consists of properties or assets (other than cash) that will be used
in a Related Business; provided, that (i) the aggregate fair market
value of the property or assets being transferred (as determined in good faith
by the Board of Directors of the Company) by the Company or a Restricted
Subsidiary is not greater than the aggregate fair market value of the property
or assets received (as determined in good faith by the Board of Directors of
the Company) by the Company or such Restricted Subsidiary in such exchange and
(ii) the aggregate fair market value of all property or assets transferred
by the Company and its Restricted Subsidiaries in any such transfer, together
with the aggregate fair market value of property or assets transferred in all
prior Permitted Asset Swaps, shall not exceed 10.0% of Consolidated Net
Tangible Assets.

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

(1)           Liens on the Collateral to secure
First-Priority Lien Obligations:

(2)           (A) Liens on the Collateral
securing the Securities outstanding on the Issue Date, the Exchange Securities
issued in exchange therefor and the Subsidiary Guarantees relating thereto; and
(B) Liens on the Collateral securing Pari Passu Lien Obligations
(including, without limitation, Additional Securities), provided that at
the time of Incurrence thereof and after giving pro forma effect thereto, the
Consolidated Secured Debt Ratio would be no greater than 4.50 to 1.00;

(3)           Liens existing on the Issue Date on
the Collateral (other than Liens specified in clauses (1) and (2) above);
and

(4)           Liens on the Collateral described in
clauses (1) through (6), (9), (10), (12), (13) (substituting the reference
therein to clause (8) thereof with a

 23
 

 

 

reference to
clause (3) above), (14), (16) and (17) through (26) of the definition of “Permitted
Liens.”

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

“Permitted Holders”
means (i) Sun Capital Partners IV, LP, a Delaware limited partnership, Sun
Capital Partners III, LP, a Delaware limited partnership, and Sun Capital
Partners III QP, LP, (ii) the Management Investors, (iii) any Related Party of
a Person referred to in clauses (i) and (ii), and (iv) solely with respect to
clauses (1) and (2) of the definition of “Change of control”, any party to the Stockholders Agreement; provided
in the case of this clause (iv) that Sun Capital Partners IV, LP, Sun Capital
Partners III, LP, Sun Capital Partners III QP, LP or any Related Party of such
persons is also a party to the Stockholders Agreement and any such other party
to the Stockholders Agreement is not the beneficial owner (giving effect to any
Voting Stock that may be deemed to be beneficially owned by any Person pursuant
to Rules 13d-3 or 13d-5 under the Exchange Act) of more of the total voting
power of the Voting Stock of Parent or the Company than Sun Capital Partners
IV, LP, Sun Capital Partners III, LP or Sun Capital Partners III QP, LP and
their Related Parties (in each case without giving effect to any Voting Stock
that may be deemed to be beneficially owned by any Person pursuant to Rules
13d-3 or 13d-5 under the Exchange Act as a result of the terms of the
Stockholders Agreement).  Except for a
Permitted Holder specifically identified by name, in determining whether Voting
Stock is owned by a Permitted Holder, only Voting Stock acquired by a Permitted
Holder in its described capacity shall be treated as “beneficially owned” by such Permitted Holder.

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

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

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

(3)           cash and Temporary Cash Investments;

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

 24
 

 

 

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

(6)           loans, Guarantees of loans, advances
or other extensions of credit to employees made in the ordinary course of
business of the Company or such Restricted Subsidiary not to exceed $2.0
million in the aggregate outstanding at any time;

(7)           stock, obligations or securities
received in settlement of debts created in the ordinary course of business and
owing to the Company or any Restricted Subsidiary or in satisfaction of judgments;

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

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

(10)         any Person to the extent such
Investments consist of prepaid expenses, negotiable instruments held for
collection and lease, utility and pledges or deposits by such Person under
workers’ compensation laws, unemployment insurance laws or similar legislation
or good faith deposits in connection with bids, tenders, contracts or leases to
which such person is a party, or deposits to secure performance and other
similar deposits made in the ordinary course of business by the Company or any
Restricted Subsidiary;

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

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

(13)         Persons to the extent such Investments,
when taken together with all other Investments made pursuant to this
clause (13) and outstanding on the

 25
 

 

 

date such Investment is
made, do not exceed $15.0 million, plus,
if an Investment pursuant to this clause (13) is made in any Person that is not
a Restricted Subsidiary of the Company at the date of the making of the
Investment and such person becomes a Restricted Subsidiary after such date, the
lesser of (x) the amount of such Investment (valued at the date of the making
of such Investment) in such Person made pursuant to this clause (13) and (y)
the aggregate fair market value (valued at the date such Person becomes a
Restricted Subsidiary) of the Investment in such Person made pursuant to this
clause (13);

(14)         Investments resulting from the
acquisition of a Person that at the time of such acquisition held instruments
constituting Investments that were not acquired in contemplation of the
acquisition of such Person;

(15)         any Investment acquired solely in
exchange for the issuance of Capital Stock (other than Disqualified Stock) of
the Company;

(16)         an Investment in any Person where such
Investment was acquired by the Company or any Restricted Subsidiary (A) in
exchange for any other Investment or accounts receivable held by the Company or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such
other Investment or accounts receivable, (B) as a result of a foreclosure by
the Company or any Restricted Subsidiary with respect to any secured Investment
or other transfer of title with respect to any secured Investment in default or
(C) in settlement, compromise or resolution of litigation, arbitration or other
disputes;

(17)         an Investment in a Receivables Entity
or any Investment by a Receivables Entity in any other Person in connection
with a Qualified Receivables Transaction, including Investments of funds held
in accounts permitted or required by the arrangements governing such Qualified
Receivables Transaction or any related Indebtedness; and

(18)         Guarantees of Indebtedness permitted
under Section 4.03.

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

(1)           pledges or deposits by such Person
under workers’ compensation laws, unemployment insurance laws or similar legislation,
or good faith deposits in connection with bids, tenders, contracts (other than
for the payment of Indebtedness), leases to which such Person is a party or
self-insurance or reinsurance obligations or deposits to secure public or
statutory obligations of such Person or deposits of cash or United States
government bonds to secure surety or appeal bonds to which such Person is a
party, or deposits as security for contested taxes or import or customs duties
or for the payment of rent or other obligations of a like nature, in each case
Incurred in the ordinary course of business;

 26
 

 

 

(2)           Liens imposed by law, such as
carriers’, warehousemen’s and mechanics’ Liens, in each case for sums not yet
due or being contested in good faith by appropriate proceedings or other Liens
arising out of judgments or awards against such Person with respect to which
such Person shall then be proceeding with an appeal or other proceedings for
review and Liens arising solely by virtue of any statutory or common law
provision relating to banker’s Liens, rights of set-off or similar rights and
remedies as to deposit accounts or other funds maintained with a creditor
depository institution; provided, however, that (A) such
deposit account is not a dedicated cash collateral account and is not subject
to restrictions against access by the Company in excess of those set forth by
regulations promulgated by the Federal Reserve Board and (B) such deposit
account is not intended by the Company or any Restricted Subsidiary to provide collateral
to the depository institution;

(3)           Liens for taxes, assessments or other
governmental charges not yet subject to penalties for non-payment or which are
being contested in good faith by appropriate proceedings;

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

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

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

(7)           Liens to secure Indebtedness permitted
under Section 4.03(b)(1);

(8)           Liens existing on the Issue Date
(other than (i) Permitted Collateral Liens and (ii) Liens referred to
in clause (7) above);

 27
 

 

 

(9)           Liens on property or shares of
Capital Stock of another Person at the time such other Person becomes a
Subsidiary of such Person; provided, however, that the Liens may
not extend to any other property owned by such Person or any of its Restricted
Subsidiaries (other than assets and property affixed or appurtenant thereto);

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

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

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

(13)         Liens to secure any Refinancing (or
successive Refinancings) as a whole, or in part, of any Indebtedness secured by
any Lien referred to in the foregoing clause (6), (8), (9) or (10); provided,
however, that:

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

(B)           the Indebtedness secured by such Lien
at such time is not increased to any amount greater than the sum of (i) the
outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clause (6), (8), (9) or (10) at the time the
original Lien became a Permitted Lien and (ii) an amount necessary to pay any
fees and expenses, including premiums, related to such refinancing, refunding,
extension, renewal or replacement.

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

(15)         Liens on the assets of a Foreign
Subsidiary securing Indebtedness of such Foreign Subsidiary Incurred pursuant
to Section 4.03(b)(15);

(16)         Liens imposed pursuant to licenses,
sublicenses, leases and subleases (including, but not limited to, landlords’
Liens) which do not materially

 28
 

 

 

interfere with the
ordinary conduct of the business of the Company or any of its Restricted
Subsidiaries;

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

(18)         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;

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

(20)         Liens arising out of conditional sale,
title retention, consignment or similar arrangements for the sale of goods
entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business;

(21)         Liens incurred to secure cash
management services in the ordinary course of business;

(22)         Liens on Receivables and Related Assets
of the type specified in the definition of “Qualified Receivables Transaction”
Incurred in connection with a Qualified Receivables Transaction;

(23)         Liens of a collecting bank arising in
the ordinary course of business under Section 4-208 of the Uniform Commercial
Code in effect in the relevant jurisdiction covering only the items being
collected upon;

(24)         Liens arising by operation of law or
contract on insurance policies and the proceeds thereof to secure premiums
thereunder;

(25)         Liens attaching solely to cash earnest
money deposits in connection with fully collateralized repurchase agreements
that constitute temporary cash investments; and

(26)         Liens arising out of Sale/Leaseback
Transactions permitted by the terms of this Indenture.

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

“Person” means any
individual, corporation, partnership, limited liability company, joint venture,
association, joint-stock company, trust, unincorporated

 29
 

 

 

organization,
government or any agency or political subdivision thereof or any other entity.

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

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

“Pro Forma Cost Savings”
means cost savings that the Company reasonably determines are probable based
upon specifically identified actions to be taken within six months of the date
of the acquisition (net of any reduction in EBITDA as a result of such cost
savings that the Company reasonably determines are probable); provided
that the Company’s chief financial officer shall have certified in an Officer’s
Certificate delivered to the Trustee the specific actions to be taken, the cost
savings to be achieved from each such action, that such savings have been
determined to be probable and the amount, if any, of any reduction in EBITDA in
connection therewith. Where specifically provided by this Indenture, the
Company shall give pro forma effect to such
Pro Forma Cost Savings as if they had been effected as of the beginning of the
applicable period.

“Purchase Money
Indebtedness” means Indebtedness (including Capital Lease Obligations)
(1) consisting of the deferred purchase price of property, conditional
sale obligations, obligations under any title retention agreement, other
purchase money obligations and obligations in respect of industrial revenue
bonds or similar Indebtedness, in each case where the maturity of such
Indebtedness does not exceed the anticipated useful life of the asset being
financed, and (2) Incurred to finance the acquisition, installation or
construction by the Company or a Restricted Subsidiary of such asset, including
additions and improvements; provided, however, that any Lien
arising in connection with any such Indebtedness shall be limited to the
specific asset being financed or, in the case of real property or fixtures,
including additions and improvements, the real property on which such asset is
attached;  provided  further,
however, that such Indebtedness is Incurred within 180 days after
such acquisition of such assets.

“Purchase Price Reduction
Amounts” means any cash amounts received by the Company or any Restricted
Subsidiary from Honeywell International Inc. after the Issue Date in respect of
a working capital adjustment to the purchase price pursuant to section 2.3
of the Stock Purchase Agreement dated September 16, 2005, by and among the
Company, Novar USA Holdings Inc., Novar Overseas Holdings B.V., and Honeywell
International Inc.

 30

 

 

“Qualified
Receivables Transaction” means any transaction or series of transactions that
may be entered into by the Company or any Restricted Subsidiary pursuant to
which the Company or any Restricted Subsidiary may sell, convey, contribute to
capital or otherwise transfer to a Receivables Entity, or may grant a security
interest in and/or pledge, any Receivables or interests therein and any assets
related thereto, including, without limitation, all collateral securing such
Receivables, all contracts and contract rights, purchase orders, security
interests, financing statements or other documentation in respect of such
Receivables, any Guarantees, indemnities, warranties or other obligations in
respect of such Receivables, any other assets that are customarily transferred
or in respect of which security interests are customarily granted in connection
with asset securitization transactions involving receivables similar to such
Receivables and any collections or proceeds of any of the foregoing
(collectively, the “Related Assets”), which transfer, grant of security
interest or pledge is funded in whole or in part, directly or indirectly, by
the Incurrence or issuance by the transferee or any successor transferee of
Indebtedness, fractional undivided interests, or other securities that are to
receive payments from, or that represent interests in, the cash flow derived
from such Receivables and Related Assets or interests in Receivables and
Related Assets, it being understood that a Qualified Receivables Transaction
may involve:

(1)           one or more sequential transfers or
pledges of the same Receivables and Related Assets, or interests therein, and

(2)           periodic transfers or pledges of
Receivables and/or revolving transactions in which new Receivables and Related
Assets, or interests therein, are transferred or pledged upon collection of
previously transferred or pledged Receivables and Related Assets, or interests
therein, and provided that:

(A)          the Board of Directors of the Company
or any Restricted Subsidiary which is party to such Qualified Receivables
Transaction shall have determined in good faith that such Qualified Receivables
Transaction is economically fair and reasonable to the Company or such
Restricted Subsidiary as applicable, and the Receivables Entity, and

(B)           the financing terms, covenants,
termination events and other provisions thereof shall be market terms (as
determined in good faith by the Board of Directors of the Company or any
Restricted Subsidiary which is party to such Qualified Receivables Transaction).

The grant of a
security interest in any accounts receivable of the Company or of any
Restricted Subsidiary to secure Indebtedness pursuant to the Credit Agreement
shall not be deemed a Qualified Receivables Transaction.

“Receivables”
means accounts receivable (including all rights to payment created by or
arising from the sale of goods or the rendition of services, no matter how
evidenced (including in the form of chattel paper) and whether or not earned by
performance) of the Company or any Restricted Subsidiary, whether now existing
or arising in the future.

 31
 

 

“Receivables
Entity” means any Person formed for the purposes of engaging in a Qualified
Receivables Transaction with the Company or a Restricted Subsidiary which
engages in no activities other than in connection with the financing of
Receivables of the Company and its Restricted Subsidiaries, all proceeds
thereof and all rights (contractual or other), collateral and other assets
relating thereto, and any business or activities incidental or related to such
business, and which is designated by the Board of Directors of the Restricted
Subsidiary that is the direct parent company of such Receivables Entity, or, if
the Receivables Entity is not a Subsidiary of the Company, by the Board of
Directors of any Restricted Subsidiary participating in such Qualified
Receivables Transaction, (in each case as provided below), as a Receivables
Entity and:

(1)           no portion of the Indebtedness or any
other obligations (contingent or otherwise) of which:

(A)          is Guaranteed by the Company or any
Restricted Subsidiary other than a Receivables Entity (excluding any Guarantees
(other than Guarantees of the principal of, and interest on, Indebtedness and
Guarantees of collection on Receivables) pursuant to Standard Securitization
Undertakings),

(B)           is recourse to or obligates the
Company or any Restricted Subsidiary (other than a Receivables Entity) in any
way other than pursuant to Standard Securitization Undertakings; or

(C)           subjects any property or asset of the
Company or any Restricted Subsidiary other than a Receivables Entity, directly
or indirectly, contingently or otherwise, to the satisfaction thereof, other
than pursuant to Standard Securitization Undertakings;

(2)           with which neither the Company nor
any Restricted Subsidiary other than a Receivables Entity has any material
contract, agreement, arrangement or understanding other than on terms which the
Company reasonably believes to be no less favorable to the Company or such
Restricted Subsidiary than those that might be obtained at the time from
Persons that are not Affiliates of the Company; and

(3)           to which neither the Company nor any
Restricted Subsidiary has any obligation to maintain or preserve such entity’s
financial condition or cause such entity to achieve certain levels of operating
results (other than pursuant to Standard Securitization Undertakings).

Any such
designation by the Board of Directors of the applicable Restricted Subsidiary
shall be evidenced to the Trustee by filing with the Trustee a certified copy
of the resolution of such Board of Directors giving effect to such designation
and an Officer’s Certificate certifying that such designation complied with the
foregoing conditions.

“Receivables
Financing” means any transaction (including, without limitation, any Qualified
Receivables Transaction) pursuant to which the Company or 

 32
 

 

any Restricted
Subsidiary may sell, convey or otherwise transfer or grant a security interest
in any Receivables or Related Assets of the type specified in the definition of
“Qualified Receivables Transaction”.

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

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

(1)           (a) if the Stated Maturity of the
Indebtedness being Refinanced has a Stated Maturity earlier than the Stated
Maturity of the Securities, such Refinancing Indebtedness has a Stated Maturity
no earlier than the Stated Maturity of the Indebtedness being Refinanced or (b)
if the Stated Maturity of the Indebtedness being refinanced is later than the
Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated
Maturity at least 123 days later than the Stated Maturity of the Securities;

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

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

(4)           if the Indebtedness being Refinanced
is subordinated in right of payment to the Securities, such Refinancing
Indebtedness is subordinated in right of payment to the Securities at least to
the same extent as the Indebtedness being Refinanced;

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

“Related
Business” means any business in which the Company or any of the Restricted
Subsidiaries was engaged on the Issue Date and any business related, ancillary
or complementary to such business.

 33
 

 

“Related
Party” means (a) with respect to Sun Capital Partners IV, LP, Sun Capital Partners
III, LP and Sun Capital Partners III QP, LP (i) any investment fund
controlled by or under common control with any of the foregoing persons, any
officer or director of any of the foregoing persons, and any entity controlled
by any of the foregoing persons that holds no material assets other than
Investments in the Company or Parent and (ii) any spouse or lineal descendant
(including by adoption and stepchildren) of the officers and directors referred
to in clause (a)(i) above; and (b) with respect to any officer or employee of
the Company or its Subsidiaries, (i) any spouse or lineal descendant (including
by adoption and stepchildren) of the officer or employee and (ii) any trust,
corporation, partnership or other entity, of which an 80% or more controlling
interest is held by beneficiaries, stockholders, partners or owners who are the
officer or employee, any of the persons described in clause (b)(i) above or any
combination of these identified relationships.

“Representative
Amount” means a principal amount of not less than $1,000,000 for a single
transaction in the relevant market at the relevant time.

“Restricted
Payment” with respect to any Person means:

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

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

(3)           the purchase, repurchase, redemption,
defeasance or other acquisition or retirement for value, prior to scheduled
maturity, scheduled repayment or scheduled sinking fund payment of any
Subordinated Obligations of the Company or any Subsidiary Guarantor (other than
(A) from the Company or a Restricted Subsidiary or (B) the purchase,
repurchase, redemption, defeasance or other acquisition or retirement of
Subordinated Obligations purchased in anticipation of satisfying a sinking fund
obligation, principal installment or final maturity, in each case due within
one year of the date of such purchase, repurchase, redemption, defeasance or
other acquisition or retirement); or

 34
 

 

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

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

“Sale/Leaseback
Transaction” means an arrangement relating to property owned by the Company or
a Restricted Subsidiary on the Issue Date or thereafter acquired by the Company
or a Restricted Subsidiary whereby the Company or a Restricted Subsidiary
transfers such property to a Person and the Company or a Restricted Subsidiary
leases it from such Person.

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

“Security
Agreement” means the Security Agreement, dated as of the Issue Date, by and
among the Company, the Note Guarantors and the Collateral Agent.

“Secured
Obligations” has the meaning assigned to such term in the Security Agreement.

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

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

“Security
Documents” means the Security Agreement and all other security agreements,
pledge agreements, collateral assignments, mortgages, deeds of trust, control
agreements or other grants or transfers of security, creating (or purporting to
create) a Lien upon the Collateral as contemplated by this Indenture, in each
case, as amended, supplemented, restated, renewed, replaced or otherwise
modified, in whole or in part, from time to time, in accordance with its terms,
this Indenture and the terms of the Intercreditor Agreement.

“Senior
Indebtedness” means with respect to any Person:

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

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

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

 35
 

 

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

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

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

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

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

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

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

“Standard
Securitization Undertakings” means all representations, warranties, covenants,
indemnities, performance Guarantees and servicing obligations entered into by
the Company or any Subsidiary of the Company (other than a Receivables Entity)
which are customary in connection with any Qualified Receivables Transaction.

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

“Statistical
Release” means the statistical release “H.15(519)” or any successor publication
which is published weekly by the Federal Reserve System and which establishes
yields on actively traded U.S. government securities adjusted to constant
maturities or, if such statistical release is not published at the time of any
determination, then such other reasonably comparable index which shall be
designated by the Trustee.

“Stockholders
Agreement” means the Stockholders Agreement among the holders of the Capital
Stock of Parent as described in the Offering Memorandum under the caption “Certain
relationships and related transactions”, as in effect on the Issue Date and
giving effect to any amendment thereto (including an amendment to add
additional parties) that is not materially less favorable to the Holders.

 36
 

 

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

“Subsidiary”
means, with respect to any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of
shares of Voting Stock is at the time owned or controlled, directly or
indirectly, by:

(1)           such Person;

(2)           such Person and one or more
Subsidiaries of such Person; or

(3)           one or more Subsidiaries of such
Person.

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

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

“Temporary
Cash Investments” means any of the following:

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

(2)           investments in demand and time
deposit accounts, certificates of deposit and money market deposits maturing
within 365 days of the date of acquisition thereof issued by a bank or trust
company which is organized under the laws of the United States of America, any
State thereof or any foreign country recognized by the United States of
America, and which bank or trust company has capital, surplus and undivided
profits aggregating in excess of $500.0 million (or the foreign currency
equivalent thereof) and has outstanding debt which is rated “A” (or such
similar equivalent rating) or higher by at least one nationally recognized
statistical rating organization (as defined in Rule 436 under the Securities
Act) or any money-market fund sponsored by a registered broker dealer or mutual
fund distributor;

(3)           repurchase obligations for underlying
securities of the types described in clause (1) above entered into with a bank
meeting the qualifications described in clause (2) above;

(4)           investments in commercial paper,
maturing not more than 365 days after the date of acquisition, issued by a
corporation (other than an Affiliate of the 

 37
 

 

Company) organized and in existence under the laws of
the United States of America or any foreign country recognized by the United
States of America with a rating at the time as of which any investment therein
is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher)
according to Standard & Poor’s;

(5)           investments in securities with
maturities of 365 days or less from the date of acquisition issued or fully
guaranteed by any state, commonwealth or territory of the United States of
America, or by any political subdivision or taxing authority thereof, and rated
at least “A” by Standard & Poor’s or “A” by Moody’s;

(6)           Indebtedness issued by Persons (other
than Sun Capital Partners IV, LLC or any of its Affiliates) with a rating of “A”
or higher by Standard & Poor’s or “A-2” or higher by Moody’s with
maturities not exceeding two years from the date of acquisition; and

(7)           investments in money market funds
that invest at least 95% of their assets in securities of the types described
in clauses (1) through (6) above.

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

“Transactions”
means the Acquisition, the Financing Transactions and the payment of related
fees and expenses, in each case as described in the Offering Memorandum.

“Treasury
Rate” means, in connection with the calculation of any Make-Whole Amount with
respect to any Security, the yield to maturity at the time of computation of
United States Treasury securities with a constant maturity, as compiled by and
published in the most recent Statistical Release that has become publicly
available at least two Business Days prior to the redemption date, equal to the
period from the redemption date to February 1, 2010.  If no maturity exactly corresponds to such
period, yields for the published maturities occurring prior to and after such
maturity most closely corresponding to such maturity shall be calculated
pursuant to the immediately preceding sentence and the Treasury Rate shall be
interpolated or extrapolated from such yields on a straight-line basis,
rounding in each of such relevant periods to the nearest month.

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

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

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

 38
 

 

“Unrestricted
Subsidiary” means:

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

(2)           any Subsidiary of an Unrestricted
Subsidiary.

The Boards of
Directors of the Company may designate any Subsidiary of the Company (including
any newly acquired or newly formed Subsidiary), to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Capital
Stock or Indebtedness of, or holds any Lien on any property of, the Company or
any other Subsidiary of the Company that is not a Subsidiary of the Subsidiary
to be so designated; provided, however, that either (A) the
Subsidiary to be so designated has total assets of $1,000 or less or
(B) if such Subsidiary has assets greater than $1,000, such designation
would be permitted under Section 4.04.

The Boards of
Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided, however, that immediately after
giving effect to such designation (A) the Company could Incur $1.00 of
additional Indebtedness under Section 4.03(a) and (B) no Default shall
have occurred and be continuing. Any such designation by the Board of Directors
of the Company shall be evidenced to the Trustee by promptly filing with the
Trustee a copy of the resolution of the Board of Directors of the Company
giving effect to such designation and an Officers’ Certificate certifying that
such designation complied with the foregoing provisions.

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

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

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

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

 39
 

 

 

SECTION 1.02.             Other
Definitions.

	
  Term

  	
   

  	
  Defined in 

  Section

  
	
   

  	
   

  	
   

  
	
  “AAG Offer
  Amount”

  	
   

  	
  4.06(d)(2)

  
	
  “AAG Offer
  Period”

  	
   

  	
  4.06(d)(2)

  
	
  “AAG Purchase
  Date”

  	
   

  	
  4.06(d)(1)

  
	
  “Affiliate
  Transaction”

  	
   

  	
  4.07(a)

  
	
  “Appendix”

  	
   

  	
  2.01

  
	
  “Available Cash”

  	
   

  	
  4.15(a)

  
	
  “Available
  Credit Commitments”

  	
   

  	
  4.15(a)

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01

  
	
  “Change of
  Control Offer”

  	
   

  	
  4.09(b)

  
	
  “Company”

  	
   

  	
  Preamble

  
	
  “covenant
  defeasance option”

  	
   

  	
  8.01(b)

  
	
  “Credit
  Agreement Repayment”

  	
   

  	
  4.15(a)

  
	
  “Custodian”

  	
   

  	
  6.01

  
	
  “Event of
  Default”

  	
   

  	
  6.01

  
	
  “Excess Cash
  Flow Offer”

  	
   

  	
  4.15(a)

  
	
  “Excess Cash
  Flow Offer Date”

  	
   

  	
  4.15(b)

  
	
  “Guaranteed
  Obligations”

  	
   

  	
  10.01

  
	
  “Indalex Holding
  Corp.”

  	
   

  	
  Preamble

  
	
  “legal
  defeasance option”

  	
   

  	
  8.01(b)

  
	
  “Offer”

  	
   

  	
  4.06(b)

  
	
  “Offer Amount”

  	
   

  	
  4.06(c)(2)

  
	
  “Offer Period”

  	
   

  	
  4.06(c)(2)

  
	
  “Offered
  Remaining Excess Cash Flow Amount”

  	
   

  	
  4.15(a)

  
	
  “parent entity”

  	
   

  	
  Change of Control definition

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Purchase Date”

  	
   

  	
  4.06(c)(1)

  
	
  “Refinancing
  Disqualified Stock”

  	
   

  	
  4.04(b)(16)

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Registration
  Date”

  	
   

  	
  4.02

  
	
  “Rejected
  Amount”

  	
   

  	
  4.15(c)

  
	
  “Remaining
  Excess Cash Flow Amount”

  	
   

  	
  4.15(a)

  
	
  “specified
  entity”

  	
   

  	
  Change of Control definition

  
	
  “Unapplied
  Remaining Excess Cash Flow Amount”

  	
   

  	
  4.15(a)

  

 

Other terms used
in this Indenture are defined in Appendix A hereto.

SECTION 1.03.             Incorporation by Reference of
Trust Indenture Act.  This Indenture
is subject to the mandatory provisions of the TIA which are incorporated

 40

 

by
reference in and made a part of this Indenture. 
The following TIA terms have the following meanings:

“Commission”
means the SEC;

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

“indenture
security holder” means a Securityholder;

“indenture
to be qualified” means this Indenture;

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

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

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

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

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

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

(3)           “or” is not exclusive;

(4)           “including” means including without
limitation;

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

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

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

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

(9)           the principal amount of any Preferred
Stock shall be (A) the maximum liquidation value of such Preferred Stock
or (B) the maximum 

 41
 

 

mandatory redemption or
mandatory repurchase price with respect to such Preferred Stock, whichever is
greater;

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

(11)         all references to interest shall also
include any additional interest payable pursuant to a Registration Rights
Agreement or otherwise due in accordance with the terms of this Indenture.

Article
2

The
Securities

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

SECTION 2.02.             Execution
and Authentication.  One Officer
shall sign the Securities for the Company by manual or facsimile signature.

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

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

On the
Issue Date, the Trustee shall authenticate and deliver $270,000,000 million of
11-1/2% Second-Priority Senior Secured Notes due 2014 and, at any time and from
time to time thereafter, the Trustee shall authenticate and deliver Securities
for original issue in an aggregate principal amount specified in a written
order of the Company signed by an Officer of the Company.  Such order shall specify the amount of the
Securities to be authenticated and the date on which the original issue of
Securities is to be authenticated, the name of the registered holders thereof
and delivery instructions and, in the case of an issuance of Additional
Securities pursuant to Section 2.13 after the Issue Date, shall certify that
such issuance is in compliance with Section 4.03.

 42
 

 

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

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

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

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

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

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

 43
 

 

Trustee may request in writing, a list in such form and as of such date
as the Trustee may reasonably require of the names and addresses of
Securityholders.

SECTION 2.06.             Transfer
and Exchange.  The Securities shall
be issued in registered form and shall be transferable only upon the surrender
of a Security for registration of transfer. 
When a Security is presented to the Registrar or a co-registrar with a
request to register a transfer, the Registrar shall register the transfer as
requested if the requirements of this Indenture and Section 8-401(1) of
the Uniform Commercial Code are met. 
When Securities are presented to the Registrar or a co-registrar with a
request to exchange them for an equal principal amount of Securities of other
denominations, the Registrar shall make the exchange as requested if the same
requirements are met.

SECTION 2.07.             Replacement
Securities.  If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements
of Section 8-405 of the Uniform Commercial Code are met and the Holder
satisfies any other reasonable requirements of the Trustee.  If required by the Trustee or the Company,
such Holder shall furnish an indemnity bond sufficient in the judgment of the
Company and the Trustee to protect the Company, the Trustee, the Paying Agent, the
Registrar and any co-registrar from any loss which any of them may suffer if a
Security is replaced.  The Company and
the Trustee may charge the Holder for their expenses in replacing a Security.

Every
replacement Security is an additional Obligation of the Company.

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

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

If the
Paying Agent segregates and holds in trust, in accordance with this Indenture,
on a redemption date or maturity date money sufficient to pay all principal and
interest payable on that date with respect to the Securities (or portions
thereof) to be redeemed or maturing, as the case may be, then on and after that date such
Securities (or portions thereof) cease to be outstanding and interest on them
ceases to accrue.

SECTION 2.09.             Temporary
Securities.  Until definitive
Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. 
Temporary Securities shall be substantially in the form of definitive
Securities but may have variations that the Company considers appropriate for 

 44
 

 

temporary Securities.  Without
unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Securities and deliver them in exchange for temporary
Securities.

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

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

SECTION 2.12.             CUSIP
Numbers, ISINs, etc.  The Company in
issuing the Securities may use “CUSIP” numbers, ISINs and “Common Code” numbers
(in each case if then generally in use) and, if so, the Trustee shall use “CUSIP”
numbers, ISINs and “Common Code” numbers in notices of redemption as a
convenience to Holders; provided, however, that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.  The Company shall advise the Trustee in
writing of any change in any “CUSIP” numbers, ISINs or “Common Code” numbers
applicable to the Securities.

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

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

 45
 

 

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

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

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

Article
3

Redemption

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

The
Company shall give each notice to the Trustee provided for in this Section at
least 35 days before the redemption date unless the Trustee consents to a
shorter period.  Such notice shall be
accompanied by an Officers’ Certificate and an Opinion of Counsel from the Company
to the effect that such redemption will comply with the conditions herein.

SECTION 3.02.             Selection
of Securities to Be Redeemed.  If
fewer than all the Securities are to be redeemed, the Trustee shall select the
Securities to be redeemed pro  rata to the extent
practicable.  The Trustee shall make the
selection from outstanding Securities not previously called for
redemption.  The Trustee may select for
redemption portions of the principal of Securities that have denominations
larger than $1,000.  Securities and
portions of them the Trustee selects shall be in principal amounts of $1,000 or
a whole multiple of $1,000.  Provisions
of this Indenture that apply to Securities called for redemption also apply to
portions of Securities called for redemption. 
The Trustee shall notify the Company promptly of the Securities or
portions of Securities to be redeemed.

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

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

(1)           the redemption date;

(2)           the redemption price;

 46
 

 

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

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

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

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

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

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

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

At the
Company’s written request delivered at least thirty-five (35) days prior to the
redemption date, the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s expense.  In
such event, the Company shall provide in such request the Trustee with the
information required by this Section.

SECTION 3.04.             Effect
of Notice of Redemption.  Once notice
of redemption is mailed, Securities called for redemption become due and
payable on the redemption date and at the redemption price stated in the
notice.  Upon surrender to the Paying
Agent, such Securities shall be paid at the redemption price stated in the
notice, plus accrued interest to the redemption date (subject to the right of
Holders of record on the relevant record date to receive interest due on the
related interest payment date), and such Securities shall be canceled by the
Trustee.  Failure to give notice or any
defect in the notice to any Holder shall not affect the validity of the notice
to any other Holder.

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

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

 47
 

 

Trustee or the Paying Agent by the Company in excess of the amounts
necessary to pay the redemption price for, and accrued interest on, all
Securities to be redeemed.

If the
Company complies with the provisions of the preceding paragraph and the other
applicable provisions of this Article 3, on and after the redemption date,
interest shall cease to accrue on the Securities or the portion of the
Securities called for redemption.  If a
Security is redeemed on or after an interest record date but on or prior to the
related interest payment date, then any accrued and unpaid interest shall be
paid to the Person in whose name such Security was registered at the close of
business on such record date.

Article
4

Covenants

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

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

SECTION 4.02.             SEC
Reports.  Notwithstanding that the
Company may not be subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act, the Company shall furnish to the Trustee and Holders and,
after the earliest of (a) the date an exchange offer is consummated with
respect to the Initial Securities issued on the Issue Date and (b) the date a
shelf registration statement is declared effective in respect of the Initial
Securities issued on the Issue Date (the “Registration Date”), shall file with
the SEC (to the extent the SEC will accept such filings) such annual reports
and such information, documents and other reports as are specified in Section
13 and 15(d) of the Exchange Act and applicable to a U.S. corporation subject
to such Sections; provided that, prior to the
Registration Date, (i) the information, documents and other reports furnished
to the Trustee and the Holders need only be substantially equivalent to the
requirements of Section 13 or 15(d) of the Exchange Act and (ii) the failure to
include in such annual reports, information, documents or other reports the
financial statements of any entity required by Rule 3-16 of Regulation S-X
as a result of its securities being pledged to secure the Securities, the
financial statements of AAG or any footnote required by Regulation S-X to be
included in the financial statements of the Company relating to guarantor and
non-guarantor information shall not be deemed a violation of this covenant; provided
further,
however, that in the event that (i) the financial
statements of AAG are not included in such annual reports or such information,
documents or other reports, information with respect to AAG consistent to that
which was included in the Offering Memorandum shall be included and (ii) any
footnote required by Regulation S-X to be included in the financial statements
of the Company relating to guarantor and 

 48
 

 

non-guarantor information are not included in such annual reports or
such information, documents or other reports, guarantor and non-guarantor
information shall be included to the same extent such information was disclosed
in the Offering Memorandum.  Such annual
reports, information, documents and other reports shall be filed or furnished,
as applicable, no later than the fifth calendar day following the prescribed
due dates specified for the filings of such information, documents and reports
under such Sections; provided, however, that the Company shall not be required to
furnish to the Trustee or the Holders any such reports until the later of 45
days following the issuance of the Securities and the date any such report
would be required to be filed if the Company were subject to Section 13 or
15(d) of the Exchange Act, provided, further, that such requirements shall be deemed
satisfied prior to the commencement of the exchange offer or the effectiveness
of the shelf registration statement by the filing with the SEC of the exchange
offer registration statement and/or shelf registration statement, to the extent
that any such registration statement contains substantially the same
information as would be required to be filed by the Company if it was subject
to the reporting requirements of Section 13 or 15(d) of the Exchange Act, and
by providing the Trustee and the Holders with such registration statement (and
any amendments thereto) promptly following the filing thereof; provided,
further, if the Company is exempt from the requirements of Section 13(a)
or 15(d) of the Exchange Act under Section 12h-5 of the Exchange Act, the
Company shall not be required to file such reports and documents with the SEC
under Section 13(a) or 15(d) of the Exchange Act (or any successor provisions
thereto) or provide such annual reports and such information, documents and
other reports to the Trustee and the Holders so long as (A) Parent files such
annual reports and such information, documents and other reports with the SEC,
(B) Parent, the Company and each Subsidiary Guarantor are in compliance with
the requirements set forth in Rule 3-10 of Regulation S-X under the Exchange
Act and (C) the Company provides the Trustee and Holders with such annual
reports and such information, documents and other reports.  At any time that any of the Company’s
Subsidiaries are Unrestricted Subsidiaries, then the quarterly and annual
financial information required by the preceding paragraph shall include a
reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto, and in “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”, of the financial
condition and results of operations of the Company and its Restricted
Subsidiaries separate from the financial condition and results of operations of
the Unrestricted Subsidiaries of the Company.

In
addition, the Company shall furnish to the Holders of the Securities and to
prospective investors, upon the requests of such Holders, any information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities
Act so long as the Securities are not freely transferable under the Securities
Act.

The
Company also shall comply with the other provisions of TIA § 314(a).

SECTION 4.03.             Limitation
on Indebtedness.  (a)  The
Company shall not, and shall not permit any Restricted Subsidiary to, Incur,
directly or indirectly, any Indebtedness; provided, however, that
the Company and the Subsidiary Guarantors 

 49
 

 

shall be entitled to Incur Indebtedness if, on the date of such
Incurrence and after giving effect thereto on a pro forma basis the
Consolidated Coverage Ratio exceeds 2.0 to 1.

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

(1)           Indebtedness Incurred by the Company,
the Subsidiary Guarantors and the Canadian Borrower pursuant to the Credit
Agreement; provided, however,
that, after giving effect to any such Incurrence, the aggregate principal
amount of all Indebtedness Incurred under this clause (1) and then outstanding
does not exceed the greater of (A) $225.0 million less the sum of all
permanent repayments of principal with respect to such Indebtedness pursuant to
Section 4.06(a)(3)(A) and (B) the sum of (i) 80% of the book value of the
inventory of the Company and its Restricted Subsidiaries, (ii) 85% of the book
value of the accounts receivable of the Company and its Restricted Subsidiaries
and (iii) $30.0 million, less in the case of each of clauses (A) or (B),
the aggregate principal amount of Indebtedness Incurred under clause (13)
of this paragraph (b) then outstanding;

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

(3)           the Securities (other than any
Additional Securities) and the Exchange Securities;

(4)           Indebtedness outstanding on the Issue
Date (other than Indebtedness described in clause (1), (2) or (3) of this
Section 4.03(b));

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

 50

 

Consolidated Coverage Ratio
for the Company would be greater than the Consolidated Coverage Ratio
immediately prior to such acquisition;

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

(7)           Hedging Obligations that are Incurred
for bona fide hedging purposes of the Company and its Restricted Subsidiaries; provided
that such obligations are entered into to hedge or mitigate risks to which the
Company or any of its Restricted Subsidiaries are exposed in the conduct of
their business or the management of their liabilities (as determined by the
Company’s or such Restricted Subsidiary’s principal financial officer in the
exercise of his or her good faith business judgment);

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

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

(10)         Indebtedness consisting of the
Subsidiary Guaranty of a Subsidiary 
Guarantor (including any Subsidiary Guaranty with respect to the
Exchange Securities) and any Guarantee by the Company or a Subsidiary Guarantor
of Indebtedness (other than any Indebtedness Incurred by a Restricted
Subsidiary that is not a Subsidiary Guarantor pursuant to
Section 4.03(b)(6) (to the extent the Refinancing Indebtedness Incurred
thereunder directly or indirectly Refinances Indebtedness Incurred by a
Subsidiary that is not a Subsidiary Guarantor) and Section 4.03(b)(13)) of the
Company or any Restricted Subsidiary so long as the Incurrence of such
Indebtedness Incurred by the Company or such Restricted Subsidiary is permitted
under the terms of this Indenture; provided that if such Indebtedness is
by its express terms subordinated in right of payment to the Senior
Indebtedness of the borrower then any such Guarantee with respect to such
Indebtedness shall be subordinated in right of payment to the Senior
Indebtedness of the Person guaranteeing such Indebtedness;

(11)         Purchase Money Indebtedness, Capital
Lease Obligations and Attributable Debt in respect of Sales/Leaseback
Transactions and any Refinancing Indebtedness Incurred to Refinance such
Indebtedness, in an aggregate principal 

 51
 

 

amount which, when added
together with the amount of Indebtedness Incurred pursuant to this clause (11)
and then outstanding, does not exceed the greater of (i) $15.0 million and (ii)
4.0% of Consolidated Net Tangible Assets at the date of determination;

(12)         Indebtedness arising from agreements of
the Company or a Restricted Subsidiary providing for indemnification,
adjustment of purchase price, earnout or similar obligations, in each case,
Incurred or assumed in connection with the acquisition or disposition of any
business, assets or a Subsidiary, other than Guarantees of Indebtedness
Incurred by any Person acquiring all or any portion of such business, assets or
a Subsidiary for the purpose of financing such acquisition; provided, however,
that (a) such Indebtedness is not reflected on the balance sheet of the Company
or any Restricted Subsidiary (contingent obligations referred to in a footnote
to financial statements and not otherwise reflected on the balance sheet shall
not be deemed to be reflected on such balance sheet for purposes of this clause
(a)) and (b) in the case of a disposition, the maximum assumable liability in
respect of all such Indebtedness shall at no time exceed the gross proceeds,
including non-cash proceeds (the fair market value of such non-cash proceeds
being measured at the time received and without giving effect to any subsequent
changes in value) actually received by the Company and the Restricted
Subsidiaries in connection with such disposition;

(13)         Indebtedness Incurred by a Receivables
Entity in a Qualified Receivables Transaction that is not recourse to the
Company or any Restricted Subsidiary (except for Standard Securitization
Undertakings); provided, however, that, after giving effect to
any such Incurrence and the application of the net proceeds therefrom, the
aggregate principal amount of all such Indebtedness Incurred shall not exceed
an amount that, if added to the amount of Indebtedness outstanding under clause
(1) of this paragraph (b), would exceed the aggregate amount of Indebtedness
that could then be Incurred under such clause (1);

(14)         Indebtedness Incurred by a Foreign
Subsidiary (a) in an aggregate principal amount which, when added together with
the amount of Indebtedness Incurred pursuant to this clause (14)(a) and then
outstanding, does not exceed $15.0 million and (b) consisting of Guarantees of
Indebtedness Incurred by the Canadian Borrower under clause (1) of this
paragraph (b);

(15)         Indebtedness of the Company or any
Subsidiary Guarantor in an aggregate principal amount which, when added
together with the amount of Indebtedness Incurred pursuant to this clause (15)
and then outstanding, does not exceed $15.0 million less the principal amount
of any Indebtedness of AAG or any of AAG’s Subsidiaries Guaranteed by a
Restricted Subsidiary pursuant to clause (16) below and then outstanding; and

(16)         Guarantees by a Restricted Subsidiary
of Indebtedness of AAG or any of its Subsidiaries to the extent required by the
terms of the AAG Shareholders Agreement.

 52
 

 

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

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

(1)           any Indebtedness Incurred under the
Credit Agreement on the Issue Date shall be treated as Incurred on the Issue
Date under clause (1) of paragraph (b) above and any Indebtedness Incurred by a
Receivables Entity in a Qualified Receivables Transaction that is outstanding
on the Issue Date shall be treated as Incurred under clause (13) of paragraph
(b) above;

(2)           in the event that an item of
Indebtedness (or any portion thereof) meets the criteria of more than one of
the types of Indebtedness described above, the Company, in its sole discretion,
shall classify such item of Indebtedness (or any portion thereof) at the time
of Incurrence, and may later reclassify such item of Indebtedness or any
portion thereof (other than as set forth in clause (d)(1) above), and shall
only be required to include the amount and type of such Indebtedness in one of
the above clauses; and

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

(e)           For purposes of
determining compliance with any U.S. dollar denominated restriction on the
Incurrence of Indebtedness where the Indebtedness Incurred is denominated in a
different currency, the amount of such Indebtedness shall be the U.S. Dollar
Equivalent determined on the date of the Incurrence of such Indebtedness; provided,
however, that if any such Indebtedness denominated in a different
currency is subject to a Currency Agreement with respect to the U.S. dollars
covering all principal, premium, if any, and interest payable on such
Indebtedness, the amount of such Indebtedness expressed in U.S. dollars shall
be as provided in such Currency Agreement. The principal amount of any
Refinancing Indebtedness Incurred in the same currency as the Indebtedness
being Refinanced shall be the U.S. Dollar Equivalent of the Indebtedness
Refinanced, except to the extent that (1) such U.S. Dollar Equivalent was determined
based on a Currency Agreement, in which case the Refinancing Indebtedness shall
be determined in accordance with the preceding sentence, and (2) the principal
amount of the Refinancing Indebtedness exceeds the principal amount of the
Indebtedness being Refinanced, in which case the U.S. Dollar Equivalent of such
excess shall be determined on the date such Refinancing Indebtedness is
Incurred.

(f)            For purposes of
determining any particular amount of Indebtedness under this Section 4.03,
Guarantees, Liens or letter of credit obligations supporting Indebtedness
otherwise included in the determination of such particular amount shall not 

 53
 

 

be
included so long as Incurred by a Person that could have Incurred such
Indebtedness pursuant to this Section 4.03.

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

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

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

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

(A)          50% of the Consolidated Net Income
accrued during the period (treated as one accounting period) from January 1,
2006 to the end of the most recent fiscal quarter ending prior to the date of
such Restricted Payment for which internal financial statements are available
(or, in case such Consolidated Net Income shall be a deficit, minus 100% of
such deficit); plus

(B)           100% of the aggregate Net Cash Proceeds,
and 100% of the aggregate Net Fair Market Value of property other than cash, in
each case received by the Company from the issuance or sale of its Capital
Stock (other than Disqualified Stock) subsequent to the Issue Date (other than
(i) Excluded Contributions, (ii) an issuance or sale to a Subsidiary of the
Company and (iii) an issuance or sale to an employee stock ownership plan or to
a trust established by the Company or any of its Subsidiaries for the benefit
of their employees) and 100% of any cash capital contribution (other than
Excluded Contributions), and 100% of the fair market value of a capital
contribution of property other than cash, in each case received by the Company
from its shareholders subsequent to the Issue Date; plus

(C)           the amount by which Indebtedness of
the Company is reduced on the Company’s balance sheet upon the conversion or
exchange subsequent to the Issue Date of any Indebtedness of the Company for
Capital Stock (other than Disqualified Stock) of the Company (less the amount
of any cash, or the fair market value of any other property, distributed by the
Company upon such conversion or exchange); provided, however,
that the foregoing amount shall not exceed the Net Cash Proceeds received by
the Company or any Restricted Subsidiary from the sale of such Indebtedness
(excluding Net Cash Proceeds from sales to a Subsidiary of the Company or to an
employee stock ownership plan or to a 

 54
 

 

trust established by the
Company or any of its Subsidiaries for the benefit of their employees); plus

(D)          an amount equal to the sum of (i) the
net reduction in the Investments (other than Permitted Investments) made by the
Company or any Restricted Subsidiary in any Person resulting from repurchases,
repayments or redemptions of such Investments by such Person, proceeds realized
on the sale of such Investment and proceeds representing the return of capital
(excluding dividends and distributions), in each case received by the Company
or any Restricted Subsidiary, and (ii) to the extent such Person is an
Unrestricted Subsidiary, the fair market value of the Investment of the Company
or any Restricted Subsidiary in such Unrestricted Subsidiary at the time such
Unrestricted Subsidiary is designated a Restricted Subsidiary or is merged or
consolidated with or into the Company or a Restricted Subsidiary or the fair
market value of any assets of any Unrestricted Subsidiary transferred to the
Company or a Restricted Subsidiary; provided, however, that the
foregoing sum shall not exceed, in the case of any such Person or Unrestricted
Subsidiary, the amount of Investments (excluding Permitted Investments)
previously made (and treated as a Restricted Payment) by the Company or any
Restricted Subsidiary in such Person or Unrestricted Subsidiary; minus

(E)           an amount equal to the sum of all
Unapplied Remaining Excess Cash Flow Amounts since the Issue Date.

The
Net Fair Market Value and the fair market value of property other than cash
covered by clauses 3(B) and (C) above shall be determined in good faith by
the Company and

(i)            in the event of property with a fair
market value in excess of $2.0 million, shall be set forth in an Officers’
Certificate; and

(ii)           in the event of property with a fair
market value of in excess of $5.0 million, shall be set forth in a resolution
approved by at least a majority of the Board of Directors of the Company.

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

(1)           any Restricted Payment made out of
the Net Cash Proceeds of the substantially concurrent sale of, or made by exchange
for, Capital Stock of the Company (other than Disqualified Stock and other than
Capital Stock issued or sold to a Subsidiary of the Company or an employee
stock ownership plan or to a trust established by the Company or any of its
Subsidiaries for the benefit of their employees) or a substantially concurrent
cash capital contribution received by the Company from its shareholders; provided,
however, that (A) such Restricted Payment shall be excluded in the
calculation of the amount of Restricted Payments and (B) the Net Cash
Proceeds from such sale or such cash capital 

 55
 

 

contribution (to the extent
so used for such Restricted Payment) shall be excluded from the calculation of
amounts under Section 4.04(a)(3)(B) and shall not constitute Excluded
Contributions;

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

(3)           the payment of any dividends within
60 days after the date of declaration thereof if at such date of declaration
such dividend would have complied with this Section 4.04; provided,
however, that at the time of payment of such dividend, no other Default
shall have occurred and be continuing (or result therefrom); provided  further,
however, that such dividend shall be included in the calculation of the
amount of Restricted Payments;

(4)           so long as no Default has occurred
and is continuing, the purchase, redemption or other acquisition of shares of
Capital Stock of Parent, the Company or any of its Subsidiaries from employees,
former employees, directors, former directors, consultants or former
consultants of Parent, the Company or any of its Subsidiaries (or permitted
transferees of such employees, former employees, directors, former directors,
consultants or former consultants), pursuant to the terms of the agreements
(including employment agreements) or plans (or amendments thereto) approved by
the Board of Directors of the Company under which such individuals purchase or
sell or are granted the option to purchase or sell, shares of such Capital
Stock; provided, however, that the aggregate amount of such
purchases, redemptions or other acquisitions (excluding amounts representing
cancelation of Indebtedness) shall not exceed $3.0 million in any calendar
year; provided  further that (a) the Company may carry forward and
make in a subsequent calendar year, in addition to the amounts permitted for
such calendar year, the amount of such purchases, redemptions or other
acquisitions permitted to have been made but not made in any preceding calendar
year up to a maximum of $7.0 million in any calendar year pursuant to this
clause (4) and (b)  such amount in any
calendar year may be increased by (i) the cash proceeds of key man life
insurance policies received by the Company and its Restricted Subsidiaries
after the Issue Date and (ii) the aggregate cash proceeds received by the
Company (or any direct or indirect parent of the Company to the extent the
proceeds are contributed to the common equity capital of the Company) during
the calendar year from any re-issuance of Capital Stock (other than
Disqualified Stock) by the Company (or any direct or indirect parent of the
Company) to employees, officers, directors or consultants of the Company and
its Restricted Subsidiaries (provided that such aggregate cash proceeds
received upon re-issuance shall be excluded for purposes of making Restricted
Payments under 

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Section 4.04(a)(3)(B)
and clause (1) of this Section 4.04(b) and shall not constitute
Excluded Contributions) less any amount previously applied to purchases,
redemptions or other acquisitions of Capital Stock of Parent, the Company or
any of its Subsidiaries pursuant to this clause (4); provided  further,
however, that such purchases, redemptions and other acquisitions shall
be excluded in the calculation of the amount of Restricted Payments;

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

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

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

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

(9)           payments of intercompany subordinated
Indebtedness, the Incurrence of which was permitted under Section 4.03(b)(2); provided,
however, 

 57
 

 

that no Default has occurred
and is continuing or would otherwise result therefrom; provided  further,
however, that such payments shall be excluded in the calculation of the
amount of Restricted Payments;

(10)         dividends to any parent company of the
Company solely to pay its franchise taxes and other fees required to maintain
its corporate existence and to pay for general corporate and overhead expenses
and other operating costs of such parent company (including salaries and other
compensation of the employees) incurred by such parent company in the ordinary
course of its business, provided, however, that such dividends
shall not exceed $4.0 million in any calendar year plus any expense reimbursement or indemnification claims
made by directors or officers of the parent company attributable to the
ownership or operation of the Company and its Restricted Subsidiaries; provided further, however, that such dividends shall
be excluded in the calculation of the amount of Restricted Payments;

(11)         Restricted Payments in an amount which,
when taken together with all Restricted Payments made pursuant to this clause
(11), do not exceed $15.0 million; provided, however, that (A) at
the time of each such Restricted Payment, no Default shall have occurred and be
continuing (or result therefrom) and (B) such payments shall be included in the
calculation of the amount of Restricted Payments;

(12)         any payments made by the Company in
connection with the Transactions and described in the Offering Memorandum under
the caption “Use of proceeds” (including any post-closing purchase price
increases); provided, however,
that such payments shall be excluded in the calculation of the amount of
Restricted Payments;

(13)         Restricted Payments made with Excluded
Contributions; provided, however, that such payments shall be
excluded in the calculation of the amount of Restricted Payments;

(14)         so long as no Default shall have
occurred and be continuing, the payment, purchase, redemption, defeasance or
other acquisition or retirement of Subordinated Obligations of the Company or
any Subsidiary Guarantor, in each case, at a purchase price not greater than
101% of the principal amount of such Subordinated Obligations, plus any accrued
and unpaid interest thereon, with any excess Net Available Cash from Asset
Dispositions to the extent such excess Net Available Cash is permitted to be
used for general corporate purposes pursuant to Section 4.06; provided, however,
that prior to such payment, purchase, redemption, defeasance or other
acquisition or retirement, the Company shall have made an offer to purchase and
have repurchased all Securities validly tendered and not withdrawn in
connection with such offer; provided  further, however,
that such payments, purchases, redemptions, defeasances or other acquisitions
or retirements shall be included in the calculation of the amount of Restricted
Payments;

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(15)         so long as no Default shall have
occurred and be continuing, Restricted Payments made from (and within one year
of the receipt of) AAG Proceeds from sales or other dispositions of the AAG
Investment or the Capital Stock of any AAG Entity to the extent permitted under
and pursuant to clause (ii)(C) and (D) of the second paragraph of Section
4.06(a); provided, however, that such Restricted Payments shall
be (x) in the case of Restricted Payments permitted pursuant to clause (ii)(C)
of the second paragraph of Section 4.06(a), excluded in the calculation of the
amount of Restricted Payments and (y) in the case of Restricted Payments
permitted pursuant to clause (ii)(D) of the second paragraph of Section
4.06(a), included in the calculation of the amount of Restricted Payments;

(16)         the acquisition or retirement of
Disqualified Stock of the Company (other than from any of its Subsidiaries),
either:

(A)          solely in exchange for shares of
Disqualified Stock of such Person; or

(B)           through the application of net
proceeds of a substantially concurrent sale of shares of Disqualified Stock of
such Person (other than Disqualified Stock issued or sold to the Company or any
of its Subsidiaries, or an employee stock ownership plan or a trust established
by the Company or any of its Subsidiaries for the benefit of its employees or
other Person to the extent such sale is financed by loans to such Person from
or guaranteed by the Company or any of its Subsidiaries unless such loans have
been repaid with cash on or prior to the date of determination) (“Refinancing
Disqualified Stock”); provided that:

(i)            the Refinancing Disqualified Stock
does not mature or become mandatorily redeemable or subject to purchase
pursuant to a sinking fund obligation, upon the occurrence of certain events or
otherwise, earlier than the Disqualified Stock being acquired;

(ii)           the amount of all obligations with
respect to the redemption, repayment or other repurchase of such Refinancing
Disqualified Stock does not exceed the amount of all obligations with respect
to the redemption, repayment or other repurchase of the Disqualified Stock
being acquired (calculated in each case in accordance with the definition of “Indebtedness”);
and

(iii)          if the Disqualified Stock being
acquired or retired is issued by a Restricted Subsidiary, such Refinancing
Disqualified Stock shall be issued only by such Restricted Subsidiary;

and provided, further,
that such Restricted Payments shall be excluded in the calculation of the
amount of Restricted Payments;

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(17)         so long as no Default or Event of
Default shall have occurred and be continuing, Restricted Payments made with
and in an amount not to exceed 25% of any Purchase Price Reduction Amounts
received by the Company or any Restricted Subsidiary; provided, that the
other 75% of any Purchase Price Reduction Amounts received by the Company or
any Restricted Subsidiary shall have been or will be substantially concurrently
used to repay Indebtedness Incurred pursuant to the Credit Agreement to the
extent of the borrowings thereunder (but no permanent retirement of such
Indebtedness or permanent reduction in commitments shall be required hereunder)
and provided, further, that such Restricted Payments shall be
excluded in the calculation of the amount of Restricted Payments; and

(18)         dividends or the making of loans to any
direct or indirect parent company of the Company (x) in amounts required for
any direct or indirect parent company of the Company to pay federal, state,
provincial and local income taxes to the extent such income taxes are directly
attributable to the income of the Company and its Restricted Subsidiaries and
(y) to the extent of the amount actually received from its Unrestricted
Subsidiaries, in amounts required to pay such income taxes to the extent
attributable to the income of such Unrestricted Subsidiaries; provided
that (i) the amount of such dividends or loans made pursuant to clause (x) of
this clause (18) shall not exceed the amount that the Company and its
Restricted Subsidiaries would be required to pay in respect of federal, state,
provincial and local income taxes for such fiscal year if the Company and its
Restricted Subsidiaries were to pay such income taxes (on a consolidated basis)
separately from any such parent entity, (ii) the amount of all dividends made
to any parent company of the Company pursuant to this clause (18) shall be used
by such parent company for the purposes specified herein within five Business
Days and (iii) such dividends shall be (a) excluded in the calculation of the
amount of Restricted Payments to the extent that the federal, state, provincial
or local income taxes to which the dividends relate are deducted in calculating
Consolidated Net Income and (b) included in the calculation of the amount of
Restricted Payments to the extent such income taxes are not so deducted.

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

(1)           any encumbrance or
restriction pursuant to an agreement in effect at or entered into on the Issue
Date (including the Credit Agreement, this

 60

 

 

Indenture, the Securities, the Security Documents and the Intercreditor
Agreement);

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

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

(4)           any
encumbrance or restriction arising by reason of applicable law, rule,
regulation or order;

(5)           restrictions
on cash or other deposits or net worth imposed by customers, suppliers or
landlords under contracts entered into in the ordinary course of business;

(6)           customary
provisions in partnership agreements, limited liability company organizational
governance documents, joint venture agreements and other similar agreements
entered into in the ordinary course of business that restrict the transfer of
ownership interests in such partnership, limited liability company, joint
venture or similar Person;

(7)           encumbrances
or restrictions contained in any Indebtedness Incurred by a Foreign Subsidiary
that apply only to such Foreign Subsidiary;

(8)           any
encumbrance or restriction existing under or by reason of Indebtedness or other
contractual requirements of a Receivables Entity or any Standard Securitization
Undertaking, in each case in connection with a Qualified Receivables
Transaction; provided that such restrictions apply only to such
Receivables Entity and Receivables and Related Assets;

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

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

 61
 

 

 

(11)         any
encumbrance or restriction pursuant to Purchase Money Indebtedness or Capital
Lease Obligations Incurred in compliance with clause (11) of
Section 4.03(b) to the extent such encumbrance or restriction imposes
restrictions on the transfer of the property subject to or relating to such
Purchase Money Indebtedness or Capital Lease Obligation; and

(12)         any
encumbrances or restrictions of the type referred to in clauses (a), (b)
and (c) above imposed by any amendments or refinancings of the contracts,
instruments or obligations referred to in clauses (1) through (11) above; provided
that such amendments or refinancings are, in the good faith judgment of the
Company’s Board of Directors, no more restrictive with respect to such dividend
and other restrictions than those contained in the dividend or other
restrictions prior to such amendment or refinancing.

SECTION 4.06.             Limitation on
Sales of Assets and Subsidiary Stock.  (a)  The Company shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly,
consummate any Asset Disposition unless:

(1)           the
Company or such Restricted Subsidiary receives consideration at the time of
such Asset Disposition at least equal to the fair market value (including as to
the value of all non-cash consideration) of the shares and assets subject to
such Asset Disposition, (i) if such fair market value exceeds $3.0
million, as determined in good faith by the Board of Directors of the Company
or (ii) if such fair market value is equal to or less than $3.0 million, as
determined in good faith by an Officer of the Company;

(2)           in
the case of Asset Dispositions that are not Permitted Asset Swaps, at least 75%
of the consideration thereof received by the Company or such Restricted
Subsidiary is in the form of cash or cash equivalents;

(3)           an
amount equal to 100% of the Net Available Cash from such Asset Disposition is
applied by the Company (or such Restricted Subsidiary, as the case may be)
either:

(A)          to
the extent the Company elects (or is required by the terms of any Applicable
Indebtedness), to prepay, repay, redeem or purchase Applicable Indebtedness
within one year from the later of the date of such Asset Disposition or the
receipt of such Net Available Cash; or

(B)           to
the extent the Company elects, to acquire Additional Assets within one year
from the later of the date of such Asset Disposition or the receipt of such Net
Available Cash, provided, however, that, in the case of an Asset
Disposition of any Collateral, such Additional Assets are added, substantially
concurrently with the acquisition thereof, to the Collateral securing the
Securities and Note Guaranties, with the same priority as the properties or
assets disposed of; or

 62
 

 

 

(C)           some
combination of the foregoing; and

(D)          to
the extent of the balance of such Net Available Cash after application in
accordance with clauses (A), (B) and (C), to make an offer to the Holders
of the Securities (and to holders of other Applicable Senior Indebtedness
designated by the Company) to purchase Securities (and such other Applicable
Senior Indebtedness) pursuant to and subject to the conditions contained in
this Indenture;

provided,
however, that in connection with any prepayment, repayment or purchase
of Indebtedness pursuant to clause (A), (C) or (D) above, the Company or
such Restricted Subsidiary shall permanently retire such Indebtedness and shall
cause the related loan commitment (if any) to be permanently reduced in an
amount equal to the principal amount so prepaid, repaid or purchased; and

(4)           any
properties or assets received by the Company or any Restricted Subsidiary as
consideration for any Asset Disposition (including in any Permitted Asset Swap)
of any Collateral are added, substantially concurrently with the acquisition
thereof, to the Collateral securing the Securities and the Note Guaranties,
with the same priority as the properties or assets disposed of.

Notwithstanding the
foregoing provisions of this Section 4.06, (i) the Company and the
Restricted Subsidiaries shall not be required to apply any Net Available Cash
in accordance with this Section 4.06 except to the extent that the
aggregate Net Available Cash from all Asset Dispositions which is not applied
in accordance with this Section 4.06 exceeds $15.0 million and
(ii) in the case of sales or other dispositions of the AAG Investment or
Capital Stock of any AAG Entity, (A) the first $50.0 million of AAG
Proceeds received (taken together with all other AAG Proceeds received) shall be
used to make an AAG Offer, (B) at least 25% of the AAG Proceeds received
(taken together with all other AAG Proceeds received) in excess of
$50.0 million shall be used to make an AAG Offer, (C) an amount up to
the remaining 75% of such excess may be used to make Restricted Payments
pursuant to Section 4.04(b)(15) in lieu of application pursuant to
Section 4.06(a)(3) and (D) to the extent that the AAG Proceeds received
and required to be applied to make an AAG Offer exceeds the aggregate amount of
Securities tendered pursuant to an AAG Offer made pursuant to clauses (A) and
(B) of clause (ii) of this paragraph, (x) 50% of such excess AAG Proceeds
shall be applied pursuant to this Section 4.06(a)(3) and (y) an amount up to
the remaining 50% of such excess AAG Proceeds may be used to make Restricted
Payments pursuant to Section 4.04(b)(15) in lieu of application pursuant to
this Section 4.06(a)(3).

Pending application of
Net Available Cash pursuant to this Section 4.06, such Net Available Cash
shall be invested in Temporary Cash Investments or applied to temporarily
reduce revolving credit indebtedness.

For the purposes of this
Section 4.06(a), the following are deemed to be cash or cash equivalents:

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(1)           the
assumption or discharge of Applicable Indebtedness of the Company (other than
obligations in respect of Disqualified Stock of the Company) or any Restricted
Subsidiary (other than obligations in respect of Disqualified Stock or
Preferred Stock of a Subsidiary Guarantor) and the release of the Company or
such Restricted Subsidiary from all liability on such Indebtedness in
connection with such Asset Disposition;

(2)           securities
received by the Company or any Restricted Subsidiary from the transferee that
are promptly converted by the Company or such Restricted Subsidiary into cash,
to the extent of cash received in that conversion; and

(3)           any
Designated Non-cash Consideration received by the Company or any Restricted
Subsidiary in an Asset Disposition having an aggregate fair market value, taken
together with all other Designated Non-cash Consideration received pursuant to
this clause (3) (unless such Designated Non-cash Consideration has been
converted into cash, which cash shall be treated after such conversion as Net
Available Cash), not to exceed $5.0 million at the time of the receipt of such
Designated Non-cash Consideration (with the fair market value of each item of
Designated Non-cash Consideration being measured at the time received and
without giving effect to subsequent changes in value).

(b)           In the event of an Asset Disposition
that requires the purchase of Securities (and other Applicable Senior
Indebtedness) pursuant to Section 4.06(a)(3)(D), the Company shall
purchase Securities tendered pursuant to an offer by the Company for the
Securities (and such other Applicable Senior Indebtedness) (the “Offer”) at a
purchase price of 100% of their principal amount (or, in the event such other
Applicable Senior Indebtedness was issued with significant original issue
discount, 100% of the accreted value thereof) without premium, plus accrued but
unpaid interest (or, in respect of such other Applicable Senior Indebtedness,
such lesser price, if any, as may be provided for by the terms of such
Applicable Senior Indebtedness) in accordance with the procedures (including
prorating in the event of oversubscription) set forth in
Section 4.06(c).  If the aggregate
purchase price of the securities tendered exceeds the Net Available Cash
allotted to their purchase, the Company shall select the securities to be
purchased on a pro  rata basis but in round denominations, which
in the case of the Securities shall be denominations of $1,000 principal amount
or multiples thereof.  The Company shall
not be required to make such an offer to purchase Securities (and other
Applicable Senior Indebtedness) pursuant to this Section 4.06 if the Net
Available Cash available therefor is less than $15.0 million (which lesser
amount shall be carried forward for purposes of determining whether such an
Offer is required with respect to the Net Available Cash from any subsequent
Asset Disposition).  Upon completion of
such an offer to purchase, Net Available Cash shall be deemed to be reduced by
the aggregate amount of such offer (regardless of the amount of Securities
tendered in such offer).

(c)           (1)  Promptly, and in any
event within 10 days after the Company becomes obligated to make an Offer,
the Company shall deliver to the Trustee and send, by first-class mail to each
Holder, a written notice stating that the Holder may elect to

 64
 

 

 

have his Securities purchased by the Company either in
whole or in part (subject to prorating as described in Section 4.06(b) in the
event the Offer is oversubscribed) in integral multiples of $1,000 of principal
amount, at the applicable purchase price. 
The notice shall specify a purchase date not less than 30 days nor more
than 60 days after the date of such notice (the “Purchase Date”) and shall
contain such information concerning the business of the Company which the
Company in good faith believes will enable such Holders to make an informed
decision and all instructions and materials necessary to tender Securities
pursuant to the Offer, together with the information contained in clause (3).

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

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

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(4)           At
the time the Company delivers Securities to the Trustee which are to be
accepted for purchase, the Company shall also deliver an Officers’ Certificate
stating that such Securities are to be accepted by the Company pursuant to and
in accordance with the terms of this Section 4.06.  A Security shall be deemed to have been
accepted for purchase at the time the Trustee, directly or through an agent,
mails or delivers payment therefor to the surrendering Holder.

(d)           (1)  Promptly, and in any
event within 10 days after the Company becomes obligated to make an AAG
Offer, the Company shall deliver to the Trustee and send, by first-class mail
to each Holder, a written notice stating that the Holder may elect to have his
Securities purchased by the Company either in whole or in part (subject to
prorating as described in the definition of “AAG Offer” in the event the AAG
Offer is oversubscribed) in integral multiples of $1,000 of principal amount,
at the applicable purchase price.  The
notice shall specify a purchase date not less than 30 days nor more than 60
days after the date of such notice (the “AAG Offer Purchase Date”) and shall
contain such information concerning the business of the Company which the
Company in good faith believes will enable such Holders to make an informed
decision and all instructions and materials necessary to tender Securities
pursuant to the AAG Offer, together with the information contained in clause
(3).

(2)           Not
later than the date upon which written notice of an AAG Offer is delivered to
the Trustee as provided below, the Company shall deliver to the Trustee an
Officers’ Certificate as to (A) the amount of the AAG Offer (the “AAG
Offer Amount”), (B) the allocation of the Net Available Cash from the
Asset Dispositions pursuant to which such AAG Offer is being made and
(C) the compliance of such allocation with the provisions of the second
paragraph of Section 4.06(a).  On
such date, the Company shall also irrevocably deposit with the Trustee or with
a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust) in Temporary Cash Investments, maturing on the last day
prior to the AAG Offer Purchase Date or on the AAG Offer Purchase Date if funds
are immediately available by open of business, an amount equal to the AAG Offer
Amount to be held for payment in accordance with the provisions of this
Section.  Upon the expiration of the
period for which the AAG Offer remains open (the “AAG Offer Period”), the
Company shall deliver to the Trustee for cancellation the Securities or
portions thereof which have been properly tendered to and are to be accepted by
the Company.  The Trustee shall, on the
AAG Offer Purchase Date, mail or deliver payment (or cause the delivery of
payment) to each tendering Holder in the amount of the purchase price.  In the event that the aggregate purchase
price of the Securities delivered by the Company to the Trustee is less than
the AAG Offer Amount applicable to the Securities, the Trustee shall deliver
the excess to the Company immediately after the expiration of the AAG Offer
Period for application in accordance with the second paragraph of Section
4.06(a).

(3)           Holders
electing to have a Security purchased shall be required to surrender the
Security, with an appropriate form duly completed, to the Company

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

(4)           At
the time the Company delivers Securities to the Trustee which are to be
accepted for purchase, the Company shall also deliver an Officers’ Certificate
stating that such Securities are to be accepted by the Company pursuant to and
in accordance with the terms of this Section 4.06.  A Security shall be deemed to have been
accepted for purchase at the time the Trustee, directly or through an agent,
mails or delivers payment therefor to the surrendering Holder.

(e)           The Company shall comply, to the
extent applicable, with the requirements of Section 14(e) of the Exchange
Act and any other securities laws or regulations in connection with the
repurchase of Securities pursuant to this Section 4.06.  To the extent that the provisions of any
securities laws or regulations conflict with provisions of this
Section 4.06, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.06 by virtue of its compliance with such securities laws or
regulations.

SECTION 4.07.             Limitation on
Affiliate Transactions.  (a)  The Company shall not, and
shall not permit any Restricted Subsidiary to, enter into or permit to exist
any transaction (including the purchase, sale, lease or exchange of any
property, employee compensation arrangements or the rendering of any service)
with, or for the benefit of, any Affiliate of the Company (an “Affiliate
Transaction”) unless:

(1)           the
terms of the Affiliate Transaction are no less favorable to the Company or such
Restricted Subsidiary than those that could be obtained at the time of the
Affiliate Transaction in arm’s-length dealings with a Person who is not an
Affiliate;

(2)           if
such Affiliate Transaction involves an amount in excess of $3.0 million,
the terms of the Affiliate Transaction are set forth in writing and a majority
of the directors of the Company (and, if there are any directors disinterested
with respect to such Affiliate Transaction, a majority thereof), have
determined in good faith that the criteria set forth in clause (1) are
satisfied and have approved the relevant Affiliate Transaction as evidenced by
a resolution of the Board of Directors; and

(3)           if
such Affiliate Transaction involves an amount in excess of $15.0 million,
the Board of Directors of the Company shall also have received a

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written opinion from an Independent Qualified Party to the effect that
such Affiliate Transaction is fair, from a financial standpoint, to the Company
and its Restricted Subsidiaries or is not less favorable to the Company and its
Restricted Subsidiaries than could reasonably be expected to be obtained at the
time in an arm’s-length transaction with a Person who was not an Affiliate.

(b)           The provisions of
Section 4.07(a) shall not prohibit:

(1)           any
Permitted Investment or Restricted Payment, in each case permitted to be made
pursuant to Section 4.04;

(2)           any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the Board of Directors of the
Company;

(3)           the
payment of reasonable fees to directors of Parent, the Company and its
Restricted Subsidiaries who are not employees of Parent, the Company or its
Restricted Subsidiaries and customary payments for indemnification to directors
and officers of Parent, the Company and its Restricted Subsidiaries;

(4)           any
transaction with the Company,  a
Restricted Subsidiary or joint venture or similar entity which would constitute
an Affiliate Transaction solely because the Company or a Restricted Subsidiary
owns an equity interest in or otherwise controls such Restricted Subsidiary,
joint venture or similar entity;

(5)           the
issuance or sale of any Capital Stock (other than Disqualified Stock) of the
Company;

(6)           any
agreement as in effect on the Issue Date and described in the Offering
Memorandum under the heading “Certain relationships and related transactions”
or any renewals, amendments or extensions of any such agreement (so long as
such renewals, amendments or extensions are not materially less favorable to
the Holders taken as a whole as determined in good faith by the Board of
Directors of the Company) and the transactions evidenced thereby;

(7)           (A)
so long as no Event of Default has occurred and is continuing, the payment of
management, consulting and advisory fees to Sun Capital Partners Management
III, LP or any of its Affiliates in an amount not to exceed, in any fiscal
year, the greater of (i) $1.0 million and (ii) 2.00% of EBITDA for the
immediately preceding fiscal year, and (B) the reimbursement of reasonable
out-of-pocket costs and expenses of Sun Capital Partners Management III, LP or
any of its Affiliates incurred in connection with management, consulting and
advisory services, provided that, to the extent that any of the fees and
expenses referenced in clause (A) are not permitted to be paid at any time as a
result of an Event of Default, such fees and expenses may be accrued and paid
at such time no Event of Default is continuing;

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(8)           so
long as no Default or Event of Default has occurred and is continuing, the
payment of customary transaction, management, consulting and advisory fees and
related expenses to Sun Capital Partners Management III, LP and its Affiliates
made pursuant to financial advisory, financing or underwriting agreements or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures, in each case, which payments
are (a) reasonably related to the services performed, (b) approved by a
majority of the members of the Board of Directors of the Company not affiliated
with Sun Capital Partners IV, LP, Sun Capital Partners III, LP and Sun Capital
Partners III QP, LP acting in good faith and (c) do not exceed $1.0 million in
any fiscal year; provided, however, that the Company may carry
forward, and make in any subsequent fiscal year, the unused amount of such
payments from any preceding fiscal year;

(9)           transactions
with customers, clients, suppliers or purchasers or sellers of goods or
services, in each case in the ordinary course of business and otherwise in
compliance with the terms of this Indenture that are on terms no less favorable
than those that would have been obtained in a comparable transaction with an
unrelated party;

(10)         loans
or advances to employees in the ordinary course of business, but in any event
not to exceed $2.0 million in the aggregate outstanding at any one time; and

(11)         any
transaction effected as part of a Qualified Receivables Transaction.

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

SECTION 4.09.             Change of Control.  (a)  Upon the occurrence of a
Change of Control, each Holder shall have the right to require the Company to
repurchase such Holder’s Securities at a purchase price in cash equal to 101%
of the principal amount thereof on the date of purchase plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
interest payment date), in accordance with the terms contemplated in
Section 4.09(b).

(b)           Within 30 days following any
Change of Control, the Company shall mail a notice to each Holder with a copy
to the Trustee (the “Change of Control Offer”) stating:

(1)           that
a Change of Control has occurred and that such Holder has the right to require
the Company to purchase such Holder’s Securities at a purchase price in cash
equal to 101% of the principal amount thereof on the date of purchase, plus
accrued and unpaid interest, if any, to the date of purchase (subject

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

(2)           the
circumstances and relevant facts regarding such Change of Control;

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

(4)           the
instructions, as determined by the Company, consistent with this
Section 4.09, that a Holder must follow in order to have its Securities
purchased.

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

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

(e)           Notwithstanding the foregoing
provisions of this Section, the Company shall not be required to make a Change
of Control Offer with respect to the Securities following a Change of Control
if (1) a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in this
Section applicable to a Change of Control Offer made by the Company and
purchases all Securities validly tendered and not withdrawn under such Change
of Control Offer or (2) a notice of redemption of all the Securities has
been given pursuant to this Indenture in accordance with paragraph 5 of
the Securities, unless and until there has been a default in payment of the
applicable redemption price.  A Change of
Control Offer may be made in advance of a Change of Control, conditional upon
the Change of Control, if a definitive agreement is a place for the Change of
Control at the time of making of the Change of Control Offer.

If the terms of the
Credit Agreement prohibit the Company from making a Change of Control Offer or
from purchasing the Securities pursuant thereto, prior to the mailing of the
notice to Securityholders described in Section 4.09(b), but in any event within
30 days following any Change of Control, the Company shall:

(1)           repay
in full all Indebtedness outstanding under the Credit Agreement or offer to
repay in full all such Indebtedness and repay the indebtedness of each lender
who has accepted such offer; or

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(2)           obtain
the requisite consent under the Credit Agreement to permit the purchase of the
Securities as described above.

The Company must first
comply with the first sentence of this Section 4.09(e) before it shall be
required to purchase Securities in the event of a Change of Control; provided,
however, that the Company’s failure to comply with the first sentence of
this Section 4.09(e) or to make a Change of Control Offer because of any
such failure shall constitute a default described in Section 6.01(4) (and
not under Section 6.01(2)).

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

SECTION 4.10.      Limitation on Liens.  The
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, Incur or permit to exist any Lien of any nature whatsoever on
any of its properties (including Capital Stock of a Restricted Subsidiary),
whether owned at the Issue Date or thereafter acquired, securing any
Indebtedness, other than:

(1)           in
the case of any property that does not constitute Collateral (including any
property previously constituting Collateral that has been released from the
Liens securing the Securities and Note Guaranties), Permitted Liens; provided,
however, that any Lien on such property shall be permitted
notwithstanding that it is not a Permitted Lien if all Obligations under this
Indenture, the Securities and the Subsidiary Guaranties are secured on an equal
and ratable basis with (or, in the case of any such Indebtedness that is a
Subordinated Obligation, on a prior basis to) the obligations so secured until
such time as such obligations are no longer secured by a Lien on such property;
and

(2)           in
the case of any property that constitutes Collateral, Permitted Collateral
Liens.

SECTION 4.11.      Limitation on
Sale/Leaseback Transactions.  The Company shall not, and shall not permit
any of Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with
respect to any property unless:

(1)           the
Company or such Restricted Subsidiary would be entitled to (A) Incur
Indebtedness in an amount equal to the Attributable Debt with respect to such
Sale/Leaseback Transaction pursuant to Section 4.03 and (B) create a
Lien on such property securing such Attributable Debt without equally and
ratably securing the Securities and the Subsidiary Guaranties pursuant to
Section 4.10;

(2)           the
net proceeds received by the Company or any Restricted Subsidiary in connection
with such Sale/Leaseback Transaction are at least equal

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to the fair market value
(as determined by the Board of Directors of the Company) of such property; and

(3)           the
Company applies the proceeds of such transaction in compliance with
Section 4.06.

SECTION 4.12.      Future Guarantors.  The Company shall cause each domestic
Restricted Subsidiary that Incurs any Indebtedness (other than Indebtedness
permitted to be Incurred pursuant to Section 4.03(b)(2), (7), (8), (9), (12) or
(13) to, and each Foreign Subsidiary that enters into a Guarantee of any Senior
Indebtedness (other than a Foreign Subsidiary that Guarantees Senior
Indebtedness Incurred by another Foreign Subsidiary or AAG or any of AAG’s
Subsidiaries) to, in each case, within 20 calendar days, execute and deliver to
the Trustee a Guaranty Agreement pursuant to which such Restricted Subsidiary shall
Guarantee payment of the Securities on the same terms and conditions as those
set forth in this Indenture.  The Company
shall cause each Restricted Subsidiary that becomes a Subsidiary Guarantor to
execute and deliver to the Collateral Agent the applicable Security Documents
pursuant to which its assets (of the same type as the assets of the Company and
the other Subsidiary Guarantors constituting Collateral) shall become part of
the Collateral and shall secure the Securities and Note Guaranties in the
manner specified in this Indenture and the Security Documents.

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

SECTION 4.14.      Further Instruments and Acts.  Upon request of the Trustee, the Company
shall execute and deliver such further instruments and do such further acts as
may be reasonably necessary or proper to carry out more effectively the purpose
of this Indenture.

SECTION 4.15.      Excess Cash Flow Offer.  (a) Within 105 days after the end of each
fiscal year of the Company, commencing with the fiscal year 2006, if the
Consolidated Total Debt Ratio as of the end of such year exceeded 4.00 to 1.00,
the Company shall apply an amount equal to the Excess Cash Flow Amount for such
year as follows:

(1)           in
the event that on the Excess Cash Flow Offer Date (as defined below), the
unused and available loan commitments under the Credit Agreement (the “Available
Credit Commitments”) shall be less than $75.0 million, prepay or repay
Indebtedness under the Credit Agreement (without the requirement of a
concurrent permanent reduction in loan commitments thereunder) in an amount
equal to the lowest of (i) the amount of such Excess Cash Flow Amount, (ii) the

 72
 

 

 

amount by which $75.0 million exceeds such Available Credit
Commitments, (iii) amounts then outstanding under the Credit Agreement and (iv)
Available Cash (as defined below) (such repayment or prepayment being referred
to as the “Credit Agreement Repayment”); and

(2)           if,
after giving effect to the Credit Agreement Repayment made pursuant to clause
(1) above (but only to the extent of the aggregate amount of cash and cash
equivalents reflected on the Company’s consolidated balance sheet as of the end
of such fiscal year), the Consolidated Total Debt Ratio as of the end of such
fiscal year would exceed 4.00 to 1.00, then to the extent of the balance of
such Excess Cash Flow Amount after application in accordance with
clause (1) above (such balance, less the principal amount of (i)
Securities tendered for in an AAG Offer during such fiscal year and (ii)
Securities otherwise repurchased or redeemed during such fiscal year, the “Remaining
Excess Cash Flow Amount”), make an offer to the Holders of the Securities to
purchase Securities pursuant to an Excess Cash Flow Offer (as defined below); provided,
however, that if such Remaining Excess Cash Flow Amount exceeds the
aggregate amount of cash and cash equivalents held by the Company and its
Restricted Subsidiaries on the applicable Excess Cash Flow Offer Date (the
amount of such cash and cash equivalents being referred to as the “Available
Cash”), then the Company shall be required to apply the Remaining Excess Cash
Flow Amount in accordance with this clause (2) only to the extent of the
sum of (x) the Available Cash and (y) the amount by which the Available Credit
Commitments on the applicable Excess Cash Flow Offer Date exceed $75.0 million
(the portion of the Remaining Excess Cash Flow Amount that is required to be so
applied being referred to as the “Offered Remaining Excess Cash Flow Amount”;
and the portion of the Remaining Excess Cash Flow Amount that is not required
to be so applied, less the Rejected Amount (as defined below), if any, being
referred to as the “Unapplied Remaining Excess Cash Flow Amount”).

(b)           Each offer to purchase Securities
pursuant to this covenant (each, an “Excess Cash Flow Offer”) shall be made to
each Holder of Securities outstanding at the time of such offer, shall offer to
purchase Securities at a purchase price of 101% of the principal amount thereof
on the date of purchase, plus accrued and unpaid interest, if any, to the date
of purchase  (subject to the right of
Holders of record on the relevant date to receive interest on the relevant
interest payment date) and shall remain open for a period of not less than
30 days (or any longer period as is required by law).

(c)           Notwithstanding the foregoing
provisions of this covenant, the Company shall not be required to make an
Excess Cash Flow Offer for any fiscal year unless the Offered Remaining Excess
Cash Flow Amount for such year exceeds $2.0 million.  Furthermore, the Company shall no longer be
subject to the provisions of this covenant commencing with respect to the first
fiscal year of the Company after the Issue Date as of the end of which the
Consolidated Total Debt Ratio was 4.00 to 1.00 or less.

(d)           If the Company is required to make an
Excess Cash Flow Offer pursuant to this covenant, no later than 105 days
after the end of the applicable fiscal year

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of the Company, the Company shall mail a notice (the
date on which such notice is mailed being referred to as the “Excess Cash Flow
Offer Date”) of such Excess Cash Flow Offer to each Holder with a copy to the
Trustee stating:

(1)           that
the Company is offering to purchase Securities in an amount equal to the
Offered Remaining Excess Cash Flow Offer Amount at a purchase price in cash
equal to 101% of the principal amount thereof on the date of purchase, plus
accrued and unpaid interest, if any, to the date of purchase (subject to the
right of Holders of record on the relevant date to receive interest on the
relevant interest payment date);

(2)           the
purchase date (which shall be no earlier than 30 days nor later than
60 days from the Excess Cash Flow Offer Date); and

(3)           the
instructions, as determined by the Company, consistent with the covenant
described hereunder, that a Holder must follow in order to tender its
Securities.

(e)           If the aggregate purchase price of
the Securities tendered exceeds the Offered Remaining Excess Cash Flow Amount
allotted to their purchase, the Company shall select the Securities to be
purchased on a pro rata basis but in round denominations of
$1,000 principal amount or multiples thereof. 
If the aggregate purchase price of the Securities tendered in connection
with any Excess Cash Flow Offer is less than the Offered Remaining Excess Cash
Flow Amount allotted to their purchase (the amount of such shortfall being
referred to as the “Rejected Amount”), the Company shall be permitted to use
the portion of the Offered Remaining Excess Cash Flow Amount that is not
applied to the purchase of Securities in connection with such Excess Cash Flow
Offer for general corporate purposes.

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

SECTION 4.16.      Impairment of Security Interest.  Subject to the rights of the holders of
Permitted Collateral Liens and Section 11.04, Parent and the Company shall not,
and shall not permit any of the Restricted Subsidiaries to, take or knowingly
or negligently omit to take, any action which action or omission would or could
reasonably be expected to have the result of materially impairing the security
interest with respect to the Collateral for the benefit of the Collateral Agent
and the Holders of the Securities, except with respect to actions permitted
under this Indenture.  The Company shall
not amend, modify or supplement, or permit or consent to any amendment,
modification or supplement of, the Security Documents in any way that

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would be adverse to the Holders of the Securities in
any material respect, except as set forth in Article 11 or as permitted under
Article 9 or under the Intercreditor Agreement.

SECTION 4.17.      After-Acquired Property.  Upon the acquisition by Parent, the Company
or any Subsidiary Guarantor of any First-Priority After-Acquired Property,
Parent, the Company or such Subsidiary Guarantor shall execute and deliver such
mortgages, deeds of trust, security instruments, financing statements and
certificates and opinions of counsel as shall be reasonably necessary to vest
in the Collateral Agent a perfected security interest, subject only to
Permitted Collateral Liens, in such First-Priority After-Acquired Property and
to have such First-Priority After-Acquired Property (but subject to the
limitations set forth in Article 11 of this Indenture) added to the Collateral,
and thereupon all provisions of this Indenture relating to the Collateral shall
be deemed to relate to such First-Priority After-Acquired Property to the same
extent and with the same force and effect.

Article 5

Successor Company

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

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

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

(3)           immediately
after giving pro forma effect to such
transaction, either (A) the Successor Company would be able to Incur an
additional $1.00 of Indebtedness pursuant to Section 4.03(a) or (B) the
Consolidated Coverage Ratio of the Successor Company would be greater than the
Consolidated Coverage Ratio of the Company immediately prior to such
transaction; and

(4)           the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation,

 75
 

 

 

merger or transfer and such supplemental indenture (if any) comply with
this Indenture;

provided,
however, that clause (3) shall not be applicable to (A) any
consolidation, merger or transfer between the Company and any Wholly Owned
Subsidiary that is a Subsidiary Guarantor or (B) the Company merging with
an Affiliate of the Company solely for the purpose and with the sole effect of
reincorporating the Company in another jurisdiction.

For purposes of this
Section 5.01, the sale, lease, conveyance, assignment, transfer or other
disposition of all or substantially all of the properties and assets of one or
more Subsidiaries of the Company, which properties and assets, if held by the
Company instead of such Subsidiaries, would constitute all or substantially all
of the properties and assets of the Company determined on a consolidated basis,
shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.

The Successor Company
shall be the successor to the Company and shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture, and the predecessor Company, except in the case of a lease, shall be
automatically released from the obligation to pay the principal of and interest
on the Securities.

(b)           The Company shall not permit any
Subsidiary Guarantor to consolidate with or merge with or into, or convey,
transfer or lease, in one transaction or a series of transactions, all or
substantially all of its assets to any Person unless:

(1)           except
in the case of a Subsidiary Guarantor (x) that has been disposed of in its
entirety to another Person (other than to the Company or an Affiliate of the
Company), whether through a merger, consolidation or sale of Capital Stock or
assets or (y) that, as a result of the disposition of all or a portion of
its Capital Stock, ceases to be a Subsidiary, in both cases, if in connection
therewith the Company provides an Officers’ Certificate to the Trustee to the
effect that the Company shall comply with its obligations under
Section 4.06 in respect of such disposition, the resulting, surviving or
transferee Person (if not such Subsidiary) shall be a Person organized and
existing under the laws of the jurisdiction under which such Subsidiary was
organized or under the laws of the United States of America, or any State
thereof or the District of Columbia, and such Person shall expressly assume, by
a Guaranty Agreement, in a form satisfactory to the Trustee, all the
obligations of such Subsidiary, if any, under its Subsidiary Guaranty;

(2)           immediately
after giving effect to such transaction or transactions on a pro forma basis (and treating any Indebtedness
which becomes an obligation of the resulting, surviving or transferee Person as
a result of such transaction as having been issued by such Person at the time
of such transaction), no Default shall have occurred and be continuing; and

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(3)           the
Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
Guaranty Agreement, if any, complies with this Indenture;

provided,
however, that this Section 5.01 shall not be applicable to any
Subsidiary Guarantor consolidating with, merging into or transferring all or
part of its properties and assets to the Company or another Subsidiary
Guarantor where the Company or the Subsidiary Guarantor is the surviving
Person.

Article 6

Defaults and Remedies

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

(1)           the
Company defaults in the payment of interest on the Securities when due and such
default continues for 30 days;

(2)           the
Company defaults in the payment of the principal of any Security when due at
its Stated Maturity, upon optional redemption, upon required purchase, upon
declaration of acceleration or otherwise;

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

(4)           the
Company fails to comply for 30 days after the notice specified below with
any of its obligations under Section 4.09 (other than a failure to
purchase the Securities);

(5)           the
Company or any Subsidiary Guarantor fails to comply for 60 days after the
notice specified below with its other agreements contained in this Indenture,
the Securities or the Security Documents;

(6)           Indebtedness
of the Company, any Subsidiary Guarantor or any Significant Subsidiary is not
paid within any applicable grace period after final maturity or is accelerated
by the holders thereof because of a default and the total amount of such
Indebtedness unpaid or accelerated exceeds $10.0 million (or its foreign
currency equivalent at the time);

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

(A)          commences
a voluntary case;

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

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

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

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

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

(A)          is
for relief against the Company, any Subsidiary Guarantor or any Significant
Subsidiary in an involuntary case;

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

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

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

(9)           any
judgment or decree for the payment of money in excess of $10.0 million (or
its foreign currency equivalent at the time) is entered against the Company, a
Subsidiary Guarantor or any Significant Subsidiary, remains outstanding for a
period of 60 consecutive days following such judgment or decree and is not
discharged, waived or the execution thereof stayed;

(10)         any
Note Guaranty of Parent or any Significant Subsidiary ceases to be in full
force and effect (other than in accordance with the terms of such Note
Guaranty) or any Note Guarantor denies or disaffirms its obligations under its
Note Guaranty; or

(11)         (A)
the repudiation or disaffirmation by Parent, the Company or any Subsidiary
Guarantor of its obligations under any of the Security Documents, (B) the
determination in a judicial proceeding that any of the Security Documents is
unenforceable or invalid against Parent, the Company or any Subsidiary
Guarantor for any reason with respect to any material portion of the Collateral
or (C) any Security Document shall cease to be in full force and effect (other
than in accordance with the terms of the applicable Security Document and the
Indenture), or cease to be effective to grant the Collateral Agent a perfected
Lien on the Collateral to the extent required thereby and with the priority
purported to be created thereby, in each case under this clause (11)(C), with
respect to any material portion of the Collateral.

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

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

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

The Company shall deliver
to the Trustee, within 30 days after the occurrence thereof, written
notice in the form of an Officers’ Certificate of any Event of Default under
clause (6),
(9), (10) or (11) and any event which with the giving of notice or the
lapse of time would become an Event of Default under clause (4), (5) or
(9), its status and what action the Company is taking or proposes to take with
respect thereto.

SECTION 6.02.      Acceleration.  If an Event of Default (other than an Event
of Default specified in Section 6.01(7) or (8) with respect to the
Company) occurs and is continuing, the Trustee, by notice to the Company, or
the Holders of at least 25% in principal amount of the outstanding Securities,
by notice to the Company and the Trustee, may declare the principal of and
accrued but unpaid interest on all the Securities to be due and payable.  Upon such a declaration of acceleration, such
principal and interest shall be due and payable immediately.  If an Event of Default specified in Section 6.01(7)
or (8) with respect to the Company occurs, the principal of and interest on all
the Securities shall ipso  facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holders of the Securities.  The Holders
of a majority in principal amount of the Securities by notice to the Trustee
may rescind an acceleration and its consequences if the rescission would not
conflict with any judgment or decree and if all existing Events of Default have
been cured or waived except nonpayment of principal or interest that has become
due solely because of acceleration.  No
such rescission shall affect any subsequent Default or impair any right
consequent thereto.

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

The Trustee may maintain
a proceeding even if it does not possess any of the Securities or does not
produce any of them in the proceeding.  A
delay or omission by

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the Trustee or any Securityholder in exercising any
right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default.  No remedy is exclusive of any other
remedy.  All available remedies are
cumulative.

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

SECTION 6.05.      Control by
Majority.  The
Holders of a majority in principal amount of the Securities may direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or of exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture or, subject to Section
7.01, that the Trustee determines is unduly prejudicial to the rights of other
Securityholders or would involve the Trustee in personal loss, expense or
liability; provided,
however,
that the Trustee may take any other action deemed proper by the Trustee that is
not inconsistent with such direction. 
Prior to taking any action under this Article 6, the Trustee shall
be entitled to indemnification satisfactory to it in its sole discretion
against all losses, expenses and liability caused by taking or not taking such
action.

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

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

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

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

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

(5)           Holders
of a majority in principal amount of the outstanding Securities do not give the
Trustee a direction inconsistent with such request during such 60-day period.

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A Securityholder may not
use this Indenture to prejudice the rights of another Securityholder or to
obtain a preference or priority over another Securityholder.  In the event that the Definitive Securities
are not issued to any beneficial owner promptly after the Registrar has
received a request from the Holder of a Global Security to issue such
Definitive Securities to such beneficial owner or its nominee, the Company
expressly agrees and acknowledges, with respect to the right of any Holder to
pursue a remedy pursuant to this Indenture, the right of such beneficial holder
of Securities to pursue such remedy with respect to the portion of the Global
Security that represents such beneficial holder’s Securities as if such
Definitive Securities had been issued.

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

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

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

SECTION 6.10.             Priorities.  Subject to the terms of the Intercreditor
Agreement, if the Trustee collects any money or property pursuant to this
Article 6, it shall pay out the money or property in the following order:

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

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

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THIRD:            to the Company.

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

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

SECTION 6.12.             Waiver of Stay or Extension Laws.  The Company (to the extent it may lawfully do
so) shall not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any
such law, and shall not hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of
every such power as though no such law had been enacted.

Article 7

Trustee

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

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

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

(2)           in the absence of
bad faith on its part, the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  However,
the Trustee shall

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examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

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

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

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

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

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

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

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

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

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

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

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

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

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(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; provided, however, that the Trustee’s conduct does not
constitute wilful misconduct or negligence. 
The Trustee shall not be required to give any bond or surety in respect
of the performance of its powers and duties hereunder.

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

(f)            The
Trustee shall have no duty to inquire as to the performance of the covenants in
Article 4 hereof.  In addition, the
Trustee shall not be deemed to have knowledge or any Default or Event of
Default hereunder except (i) any Event of Default occurring pursuant to
Section 6.01(1) or 6.01(2) or (ii) any Default or Event of Default of
which the Trustee shall have received notification or obtained knowledge.  In the absence of such actual knowledge or
notice, the Trustee may conclusively assume that no Default has occurred and is
continuing under this Indenture. 
Delivery of reports, information and documents to the Trustee under
Section 4.02 is for information purposes only and the Trustee’s receipt of
the foregoing shall not constitute constructive notice of any information
contained therein, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely exclusively on an
Officers’ Certificate provided pursuant to Section 4.13).

(g)           The
permissive rights of the Trustee to do things enumerated in this Indenture
shall not be constructed as a duty unless so specified herein.

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

SECTION 7.04.             Trustee’s Disclaimer.  The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture, the
Securities or the Security Documents, it shall not be accountable for the
Company’s use of the proceeds from the Securities, and it shall not be
responsible for any statement of the Company in this Indenture or in any
document issued in connection with the sale of the Securities or in the
Securities other than the Trustee’s certificate of authentication. The Trustee
shall have no responsibility or liability with respect to any information,
statement or recital in any offering memorandum or other disclosure material
prepared or distributed with respect to the issuance of the Securities. The
Company shall not be deemed agents of the Trustee, Registrar or Paying Agent
for any purpose, and the Trustee, Registrar and Paying Agent shall not be
responsible for the

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compliance of any of them with their respective duties
hereunder in connection with the transactions contemplated herein.

SECTION 7.05.             Notice of
Defaults.  If a
Default occurs, is continuing and is known to the Trustee, the Trustee shall
mail to each Securityholder notice of the Default within 90 days after it
occurs.  Except in the case of a Default
in the payment of principal of or interest on any Security, the Trustee may
withhold the notice if and so long as a committee of its Trust Officers in good
faith determines that withholding the notice is not opposed to the interests of
the Securityholders.

SECTION 7.06.             Reports by Trustee to Holders.  As promptly as practicable after
each February 1 beginning with the February 1 following the date of
this Indenture, and in any event prior to April 1 in each year, the Trustee
shall mail to each Securityholder a brief report dated as of February 1
that complies with TIA § 313(a).  The
Trustee also shall comply with TIA § 313(b).

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

SECTION 7.07.             Compensation
and Indemnity. 
The Company shall pay to the Trustee from time to time reasonable
compensation for its services.  The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The Company
shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred or made by it, including costs of collection, in addition to the
compensation for its services.  Such
expenses shall include the reasonable compensation and expenses, disbursements
and advances of the Trustee’s agents, counsel, accountants and experts.  The Company shall indemnify the Trustee
against any and all loss, liability or expense (including attorneys’ fees)
incurred by it in connection with the administration of this trust and the
performance of its duties hereunder.  The
Trustee shall notify the Company promptly of any claim for which it may seek
indemnity.  Failure by the Trustee to so
notify the Company shall not relieve the Company of its obligations
hereunder.  The Company shall defend the
claim and the Trustee may have separate counsel and the Company shall pay the
fees and expenses of such counsel.  The
Company need not pay for any settlement made without its consent, which consent
shall not be unreasonably withheld.  The
Company need not reimburse any expense or indemnify against any loss, liability
or expense incurred by the Trustee through the Trustee’s own willful
misconduct, negligence or bad faith.

To secure the Company’s
payment obligations in this Section, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of and interest on particular
Securities.

The Company’s payment
obligations pursuant to this Section shall survive the discharge of this
Indenture.  When the Trustee incurs expenses
after the occurrence of

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a Default specified in Section 6.01(7) or (8)
with respect to the Company, the expenses are intended to constitute expenses
of administration under the Bankruptcy Law.

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

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

(2)           the Trustee is
adjudged bankrupt or insolvent;

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

(4)           the Trustee
otherwise becomes incapable of acting.

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

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

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

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

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

SECTION 7.09.             Successor
Trustee by Merger. 
If the Trustee consolidates with, merges or converts into, or transfers
all or substantially all its corporate trust business or assets to, another corporation
or banking association, the

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resulting, surviving or transferee corporation without
any further act shall be the successor Trustee.

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

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

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

Article 8

Discharge of Indenture; Defeasance

SECTION 8.01.      Discharge of
Liability on Securities; Defeasance.  (a)  When (1) the Company
delivers to the Trustee all outstanding Securities (other than Securities
replaced pursuant to Section 2.07) for cancellation or (2) all outstanding
Securities have become due and payable, whether at maturity or on a redemption
date as a result of the mailing of a notice of redemption pursuant to
Article 3 hereof, and, in the case of clause (2), the Company
irrevocably deposits with the Trustee funds sufficient to pay at maturity or
upon redemption all outstanding Securities, including interest thereon to
maturity or such redemption date (other than Securities replaced pursuant to
Section 2.07), and if in either case the Company pays all other sums
payable hereunder by the Company, then this Indenture shall, subject to
Section 8.01(c), cease to be of further effect.  The Trustee shall acknowledge satisfaction
and discharge of this Indenture on demand of the Company accompanied by an
Officers’ Certificate and an Opinion of Counsel and at the cost and expense of
the Company.

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(b)           Subject
to Sections 8.01(c) and 8.02, the Company at any time may terminate
(1) all its obligations under the Securities and this Indenture (“legal
defeasance option”) or (2) its obligations under Sections 4.02, 4.03,
4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.12, 4.13 and 4.15 and the operation of
Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case
of Sections 6.01(7) and (8), with respect only to Significant Subsidiaries
and Subsidiary Guarantors)
and the limitations contained in Section 5.01(a)(3) (“covenant defeasance
option”).  The Company may exercise its
legal defeasance option notwithstanding its prior exercise of its covenant
defeasance option.

If the Company exercises
its legal defeasance option, payment of the Securities may not be accelerated
because of an Event of Default with respect thereto.  If the Company exercises its covenant
defeasance option, payment of the Securities may not be accelerated because of
an Event of Default specified in Sections 6.01(4), 6.01(6), 6.01(7),
6.01(8), 6.01(9) or 6.01(11) (but, in the case of Sections 6.01(7) and
(8), with respect only to Significant Subsidiaries and Subsidiary Guarantors) or because of the failure of the Company to comply with
Section 5.01(a)(3).  If the Company
exercises
its legal defeasance option or its covenant defeasance option, each Note
Guarantor, if any, shall be released from all its obligations with respect to
its Note Guaranty and the Security Documents.

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

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

SECTION 8.02.      Conditions to
Defeasance.  The
Company may exercise its legal defeasance option or its covenant defeasance
option only if:

(1)           the Company
irrevocably deposits in trust with the Trustee money or U.S. Government
Obligations for the payment of principal of and interest on the Securities to
maturity or redemption, as the case may be;

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

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

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

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

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

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

(8)           the
Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance and
discharge of the Securities as contemplated by this Article 8 have been
complied with.

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

SECTION 8.03.      Application of
Trust Money. 
The Trustee shall hold in trust money or U.S. Government
Obligations deposited with it pursuant to this Article 8.  It shall apply the deposited money and the
money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and interest on
the Securities.

SECTION 8.04.      Repayment to
Company.  The
Trustee and the Paying Agent shall promptly turn over to the Company upon
request any excess money or securities held by them at any time.

Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal or
interest that remains unclaimed for two years, and, thereafter,

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Securityholders entitled to the money must look to the
Company for payment as general creditors.

SECTION 8.05.             Indemnity for
Government Obligations.  The Company shall pay and shall indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against
deposited U.S. Government Obligations or the principal and interest
received on such U.S. Government Obligations.

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

Article 9

Amendments

SECTION 9.01.             Without Consent
of Holders.  The
Company, the Note Guarantors, the Trustee and, with
respect to the Security Documents and the Intercreditor Agreement, the
Collateral Agent may amend this Indenture, the Securities, any Security
Document or the Intercreditor Agreement without notice to or consent of any
Holder:

(1)           to cure any ambiguity,
omission, defect or inconsistency (including conforming this Indenture to the
description contained in the Offering Memorandum under the heading “Description
of the notes”);

(2)           to provide for the
assumption by a successor corporation of the obligations of the Company, Parent
or any Subsidiary Guarantor under this Indenture to comply with Article 5;

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

(4)           to add Guarantees
with respect to the Securities, including any Subsidiary Guaranties, or to
secure the Securities;

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

(6)           to
make any change that does not adversely affect the rights of any Holder of the
Securities;

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

(8)           to
make any amendment to the provisions of this Indenture relating to the transfer
and legending of Securities;

(9)           to
provide additional assets as Collateral;

(10)         to
release Collateral from the Liens pursuant to the Indenture, the Security
Documents and the Intercreditor Agreement when permitted or required by the
Indenture, the Intercreditor Agreement or the Security Documents;

(11)         in
the case of the Intercreditor Agreement, to add as parties thereto Persons (or
any agent, representative or trustee therefor) holding a new series of First-Priority
Lien Obligations or any Pari Passu Lien Obligations or Refinancing Noteholder
Claims (as defined in the Intercreditor Agreement), in each case, to the extent
such Indebtedness or other Obligations are not prohibited by this Indenture and
the Credit Agreement, and to provide for the related modifications to the
Intercreditor Agreement expressly contemplated by Section 8.3 of the
Intercreditor Agreement; or

(12)         in
the case of the Security Documents, as expressly provided in Section 11.01(b)
hereof;

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

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

SECTION 9.02.             With Consent of
Holders.  The
Company, the Note Guarantors, the Trustee and, with respect to the Security
Documents and the Intercreditor Agreement, the Collateral Agent may amend this
Indenture, the Security Documents, the Intercreditor Agreement or the
Securities with the written consent of the Holders of a majority in principal
amount of the Securities then outstanding (including consents obtained in
connection with a tender offer or exchange for such Securities) and any past
default or compliance with any provisions may also be waived with the consent
of the

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Holders of a majority in principal amount of the
Securities then outstanding.  However, without
the consent of each Holder affected thereby, an amendment or waiver may not:

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

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

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

(4)           change
the provisions applicable to the redemption of any Security as described under
Article 3 hereof or paragraph 5 of the Securities;

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

(6)           impair
the right of any Holder to receive payment of principal of and interest on such
Holder’s Securities on or after the due dates therefor or to institute suit for
the enforcement of any payment on or with respect to such Holder’s Securities;

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

(8)           make
any change in the ranking or priority of any Security that would adversely
affect the Holders;

(9)           make
any change in, or release other than in accordance with this Indenture, any
Note Guaranty that would adversely affect the Holders; or

(10)         make
any change in the Intercreditor Agreement (except any change referred to in
Section 9.01(11) or the provisions of the Indenture or any Security Document
dealing with the application of proceeds of the Collateral, in each case, that
would adversely affect the Holders.

Except as provided in
Section 9.01(10) hereof, without the consent of the Holders of at least
two-thirds in aggregate principal amount of the Securities then outstanding, no
amendment or waiver may release from the Liens of the Indenture and the
Security Documents all or substantially all of the Collateral.

Notwithstanding the
foregoing, in accordance with Section 5.3(b) of the Intercreditor
Agreement, certain amendments, waivers and consents in respect of any of the
Senior Collateral Documents (as defined in the Intercreditor Agreement) will
apply automatically to any comparable provision of the Security Documents
without the consent of the Trustee, the Collateral Agent or any Securityholder.

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

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

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

SECTION 9.04.             Revocation and
Effect of Consents and Waivers.  (a) A consent to an amendment or a
waiver by a Holder of a Security shall bind the Holder and every subsequent
Holder of that Security or portion of the Security that evidences the same debt
as the consenting Holder’s Security, even if notation of the consent or waiver
is not made on the Security.  However,
any such Holder or subsequent Holder may revoke the consent or waiver as to
such Holder’s Security or portion of the Security if the Trustee receives the
notice of revocation before the date the amendment or waiver becomes
effective.  After an amendment or waiver
becomes effective, it shall bind every Securityholder.  An amendment or waiver becomes effective upon
the execution of such amendment or waiver by the Trustee.

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

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

SECTION 9.06.             Trustee to Sign Amendments.  The Trustee shall sign any amendment
authorized pursuant to this Article 9 if the amendment does not adversely
affect the rights, duties, liabilities or immunities of the Trustee.  If it does, the Trustee may but need not sign
it.  In signing such amendment the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it
and to receive, and (subject to Section 7.01)

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shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel stating that such amendment is authorized
or permitted by this Indenture.

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

Article 10

Note Guaranties

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

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

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

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(c)           Except as expressly set forth in
Sections 8.01(b), 10.02 and 10.06, the obligations of each Note Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Guaranteed Obligations or
otherwise.  Without limiting the
generality of the foregoing, the obligations of each Note Guarantor herein
shall not be discharged or impaired or otherwise affected by the failure of any
Holder or the Trustee to assert any claim or demand or to enforce any remedy
under this Indenture, the Securities or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the Guaranteed Obligations, or by any other
act or thing or omission or delay to do any other act or thing which may or
might in any manner or to any extent vary the risk of such Note Guarantor or
would otherwise operate as a discharge of such Note Guarantor as a matter of
law or equity.

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

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

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

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

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

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

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

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

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

(1)           upon
the sale or other disposition (including by way of consolidation or merger and
any sale pursuant to any foreclosure of any pledge or security interest, or
other exercise of remedies, by a holder of Indebtedness of the Company or such
Subsidiary Guarantor) of a Subsidiary Guarantor, including the sale or
disposition of Capital Stock of a Subsidiary Guarantor following which such
Subsidiary Guarantor is no longer a Subsidiary; or

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(2)           the
sale or disposition of all or substantially all the assets of a Subsidiary
Guarantor;

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

(1)           upon
the designation of such Subsidiary Guarantor as an Unrestricted Subsidiary;

(2)           at
such time as such Subsidiary Guarantor does not have any Indebtedness
outstanding that would have required such Subsidiary Guarantor to enter into a
Guaranty Agreement pursuant to Section 4.12;

(3)           if
the Company exercises its legal defeasance option or its covenant defeasance
option under Section 8.01, or if its obligations under this Indenture are
discharged in accordance with the terms of this Indenture; or

(4)           upon
such Subsidiary Guarantor ceasing to be a Subsidiary as a result of any
foreclosure of any pledge or security interest in favor of First-Priority Lien
Obligations, subject to, in each case, the application of the proceeds of such
foreclosure in the manner set forth in Section 4.06.

At the request of
the Company, the Trustee shall execute and deliver an appropriate instrument
evidencing such release.

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

Article 11

Security Documents

SECTION 11.01.           Collateral and Security Documents.  (a)  On and after the Issue Date,
the full and punctual payment of principal of and interest on the Securities
when due, whether on an interest payment date, at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest
on the Securities and payment and performance of all other Secured Obligations
shall be secured as provided in the Security Documents, which define the terms
of the Liens that secure the Secured Obligations, subject to the terms of the
Intercreditor Agreement.  The Trustee,
the Company and the Note Guarantors each hereby acknowledge and agree that

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the Collateral Agent holds the Collateral in trust for
the benefit of the Trustee and the Holders, in each case pursuant to the terms
of the Security Documents and the Intercreditor Agreement.  Each Holder, by accepting a Security,
consents and agrees to the terms of the Security Documents and the
Intercreditor Agreement (including the provisions providing for foreclosure and
release of Collateral), as the same may be in effect or may be amended from
time to time in accordance with their terms and this Indenture.  The Company shall deliver to the Trustee (if
it is not itself then the Collateral Agent) copies of all documents delivered
to the Collateral Agent pursuant to the Security Documents, and will do or
cause to be done all such acts and things as may be reasonably required by the
next sentence of this Section 11.01 to assure and confirm to the Trustee
and the Collateral Agent the security interest in the Collateral contemplated
hereby, by the Security Documents or any part thereof, as from time to time
constituted, so as to render the same available for the security and benefit of
this Indenture and of the Securities secured hereby, according to the intent
and purposes herein expressed.  Parent
and the Company shall take, and shall cause the Subsidiary Guarantors to take,
any and all actions reasonably required to cause the Security Documents to
create and maintain, as security for the Secured Obligations a valid and
enforceable perfected Lien and security interest in and on all of the
Collateral (subject to the terms of the Intercreditor Agreement), in favor of
the Collateral Agent for the benefit of the Trustee and the Holders, second in
priority to any and all Liens and security interests at any time granted in the
Collateral to secure the First-Priority Lien Obligations.  The Company and the Note Guarantors will from
time to time promptly pay and discharge all recording or filing fees, charges
and taxes relating to the filing or registration of this Indenture and the
Security Documents, any amendments thereto and any other instruments of further
assurance.

(b)           Notwithstanding the foregoing, the
Capital Stock and other securities of the Company or any Subsidiary of Parent
or the Company will constitute Collateral securing the Securities and the
related Note Guaranties only to the extent that such Capital Stock and
securities can secure such Securities and Note Guaranties without
Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”)
(or any other law, rule or regulation) requiring separate financial statements
of the Company or such Subsidiary to be filed with the SEC (or any other
governmental agency);

(i)            in the event that Rule 3-16
requires or is amended, modified or interpreted by the SEC to require (or is
replaced with another rule or regulation, or any other law, rule or regulation
is adopted, which would require) the filing with the SEC (or any other
governmental agency) of separate financial statements of the Company or any Subsidiary
due to the fact that the Company’s or such Subsidiary’s Capital Stock or other
securities secure the Securities and the related Note Guaranties, then such
Capital Stock or other securities shall automatically be deemed not to be part
of the Collateral securing the Securities and Note Guaranties (but only to the
extent necessary to not be subject to such requirement) and, in such event, the
Security Documents may be amended or modified, without the consent of any
Holder of the Securities, to the extent necessary to release the
second-priority security interests on the shares of Capital Stock and

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other securities that are
so deemed to no longer constitute part of the Collateral; and

(ii)           in the event that Rule 3-16 is
amended, modified or interpreted by the SEC to permit (or is replaced with
another rule or regulation, or any other law, rule or regulation is adopted,
which would permit) the Company’s or such Subsidiary’s Capital Stock and other
securities to secure the Securities and the related Note Guaranties in excess
of the amount then pledged without the filing with the SEC (or any other
governmental agency) of separate financial statements of the Company or such
Subsidiary, then the Capital Stock and other securities of the Company or such
Subsidiary shall automatically be deemed to be a part of the Collateral
securing the Securities and Note Guaranties (but only to the extent the Company
or such Subsidiary would not be subject to any such financial statement
requirement) and, in such event, the Security Documents may be amended or
modified, without the consent of any Holder of the Securities, to the extent
necessary to subject to the Liens under the Security Documents such additional
Capital Stock and other securities.

SECTION 11.02.           Recordings and Opinions.  (a)  To the extent required by TIA
§ 314(b), the Company and the Note Guarantors shall furnish to the
Collateral Agent and the Trustee (if the Trustee is not then the Collateral
Agent), on or before the time when Company is required to provide annual
reports pursuant to Section 4.02 with respect to the preceding fiscal
year, an Opinion of Counsel:

(1)           stating
substantially to the effect that, in the opinion of such counsel, such action
has been taken with respect to the recordings, registerings, filings,
re-recordings, re-registerings and re-filings of this Indenture, the Security
Documents and all financing statements, continuation statements or other
instruments of further assurance as is necessary to maintain the Liens of this
Indenture or any Security Documents in the Collateral and reciting with respect
to the security interests in such Collateral the details of such action or
referencing to prior Opinions of Counsel in which such details are given; or

(2)           to
the effect that, in the opinion of such counsel, no such action is necessary to
maintain such Lien under this Indenture and the Security Documents.

SECTION 11.03.           Release of Collateral.  (a) Subject to subsections (b) and (c)
of this Section 11.03, Collateral may be released from the Liens and
security interests created by the Security Documents at any time or from time
to time in accordance with the provisions of the Security Documents, the
Intercreditor Agreement or as provided hereby. 
Upon the request of the Company pursuant to an Officers’ Certificate
certifying that all conditions precedent hereunder have been met, and without
the consent of any Holder, the Company and the Note Guarantors will be entitled
to a release of property and other assets included in the Collateral from the
Liens securing the Secured Obligations, and the Collateral Agent and the Trustee
(if the Trustee is not then

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the Collateral Agent) shall release the same from such
Liens at the Company’s sole cost and expense, under any one or more of the
following circumstances:

(1)           if
all other Liens (other than Permitted Collateral Liens described in
clause (4) of the definition thereof) on such property or assets securing
First-Priority Lien Obligations and Pari Passu Lien Obligations (including, in
each case, all commitments and letters of credit thereunder) are released,
whether as a result of repayment in full and termination of all such
obligations or otherwise; provided, however, that (i) in the
case of any such release other than in connection with a repayment in full and
termination of all such obligations, if the Company or any Note Guarantor
subsequently Incurs or permits to exist any Lien (other than Permitted
Collateral Liens described in clause (4) of the definition thereof) on
such property or assets securing First-Priority Lien Obligations or Pari Passu
Lien Obligations, the Liens securing the Secured Obligations on such property
or assets shall be reinstated to the full extent such Liens existed prior to
the release thereof and (ii) in the case of any such release in connection
with such repayment in full and termination, if the Company or any Note
Guarantor subsequently Incurs any First-Priority Lien Obligations or Pari Passu
Lien Obligations that are secured by Liens (other than Permitted Collateral Liens
described in clause (4) of the definition thereof) on property or assets
of the Company or any Note Guarantor of the type constituting the Collateral,
then the Company and the Note Guarantors will be required to reinstitute the
security arrangements with respect to the Collateral in favor of the Secured
Obligations, which, in the case of any such subsequent First-Priority Lien
Obligations, will be second-priority Liens on the Collateral securing such
First-Priority Lien Obligations to the same extent provided by the Security
Documents and on the terms and conditions of the security documents relating to
such First-Priority Lien Obligations, with the second-priority Lien held by a
collateral agent or other representative designated by the Company to hold the
second-priority Liens for the benefit of the Holders of the Securities and
subject to an intercreditor agreement that provides the administrative agent or
collateral agent for such First-Priority Lien Obligations substantially the
same rights and powers as afforded under the Intercreditor Agreement;

(2)           to
enable the Company or any Subsidiary Guarantor to consummate the disposition of
such property or assets (including any sale pursuant to any foreclosure of any
pledge or security interest, or other exercise of remedies, by a holder of
Indebtedness of the Company or such Subsidiary Guarantor) to the extent not
prohibited under Section 4.06;

(3)           in
the case of a Note Guarantor that is released from its Note Guarantee, the
release of the property and assets of such Note Guarantor;

(4)           pursuant
to an amendment or waiver in accordance with Article 9 of this Indenture;
or

(5)           if
the Securities have been defeased pursuant to Section 8.01(b).

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Notwithstanding the
foregoing, if an Event of Default under the Indenture exists on the date on
which all First-Priority Lien Obligations and Pari Passu Lien Obligations are
repaid in full and terminated (including, in each case, all commitments and
letters of credit thereunder), the Liens on the Collateral securing the Secured
Obligations will not be released, except to the extent the Collateral or any
portion thereof was disposed of in order to repay the First-Priority Lien
Obligations secured by the Collateral, and thereafter the Trustee (acting at
the direction of the holders of a majority of outstanding principal amount of
the Securities) will have the right to direct the Collateral Agent to foreclose
upon the Collateral (but in such event, the Liens on the Collateral securing
the Secured Obligations will be released when such Event of Default and all
other Events of Default under the Indenture cease to exist).

Upon receipt of such
Officers’ Certificate and any necessary or proper instruments of termination,
satisfaction or release prepared by the Company, the Collateral Agent shall, at
the Company’s expense, execute, deliver or acknowledge such instruments or
releases to evidence the release of any Collateral permitted to be released
pursuant to this Indenture,  the Security
Documents or the Intercreditor Agreement.

(b)           Except as otherwise provided in the
Intercreditor Agreement, no Collateral may be released from the Lien and
security interest created by the Security Documents unless the Officers’ Certificate
required by this Section 11.03, dated not more than five days prior to the
date of the application for such release, has been delivered to the Collateral
Agent and the Trustee (if the Trustee is not then the Collateral Agent).

(c)           At any time when an Event of Default
has occurred and is continuing and the maturity of the Securities has been
accelerated (whether by declaration or otherwise) and the Trustee (if not then
the Collateral Agent) has delivered a notice of acceleration to the Collateral
Agent, no release of Collateral pursuant to the provisions of this Indenture or
the Security Documents will be effective as against the Holders, except as
otherwise provided in the Intercreditor Agreement.

SECTION 11.04.           Permitted Releases Not to Impair
Lien; Trust Indenture Act Requirements. 
The release of any Collateral from the terms hereof and of the Security
Documents or the release of, in whole or in part, the Liens created by the
Security Documents, will not be deemed to impair the security under this Indenture
in contravention of the provisions hereof if and to the extent the Collateral
or Liens are released pursuant to (x) the applicable Security Documents
and the terms of this Article 11 or (y) the Intercreditor Agreement.  The Trustee and each of the Holders
acknowledge that a release of Collateral or a Lien strictly in accordance with
the terms of the Security Documents and the Intercreditor Agreement and of this
Article 11 will not be deemed for any purpose to be an impairment of the
Lien on the Collateral in contravention of the terms of this Indenture.  To the extent applicable, the Company and
each obligor on the Securities shall cause TIA § 313(b), relating to
reports, and TIA § 314(d), relating to the release of property or
securities from the Lien hereof and of the Security Documents, to be complied
with.  Any certificate or opinion
required by § 314(d) of the TIA may be made by an Officer of the Company,
except in cases where § 314(d) of the TIA requires that such certificate
or opinion be made by an independent

 101
 

 

 

Person, which Person shall be an independent engineer,
appraiser or other expert selected or approved by the Trustee in the exercise
of reasonable care.

SECTION 11.05.           Certificates of the Trustee.  In the event that the Company wishes to
release Collateral in accordance with this Indenture, the Security Documents
and the Intercreditor Agreement at a time when the Trustee is not itself also
the Collateral Agent and the Company has delivered the certificates and
documents required by the Security Documents, the Intercreditor Agreement and
Section 11.03 hereof, the Trustee will determine whether it has received
all documentation required by TIA §314(d) in connection with such release and,
based on such determination, will deliver a certificate to the Collateral Agent
setting forth such determination.

SECTION 11.06.           Suits to Protect the Collateral.  Subject to the provisions of Article 7
hereof and the Intercreditor Agreement, the Trustee in its sole discretion and
without the consent of the Holders, on behalf of the Holders, may or may direct
the Collateral Agent to take all actions it deems necessary or appropriate in
order to:

(a)           enforce any of the terms of the
Security Documents; and

(b)           collect and receive any and all
amounts payable in respect of the Guaranteed Obligations of the Company
hereunder.

Subject to the provisions
of the Security Documents and the Intercreditor Agreement, the Trustee shall
have power to institute and to maintain such suits and proceedings as it may
deem expedient to prevent any impairment of the Collateral by any acts which
may be unlawful or in violation of any of the Security Documents or this
Indenture, and such suits and proceedings as the Trustee, in its sole
discretion, may deem expedient to preserve or protect its interests and the
interests of the Holders in the Collateral (including power to institute and
maintain suits or proceedings to restrain the enforcement of or compliance with
any legislative or other governmental enactment, rule or order that may be
unconstitutional or otherwise invalid if the enforcement of, or compliance
with, such enactment, rule or order would impair the Liens on the Collateral or
be prejudicial to the interests of the Holders or the Trustee).

SECTION 11.07.           Authorization of Receipt of Funds
by the Trustee Under the Security Documents.  Subject to the provisions of the
Intercreditor Agreement, the Trustee is authorized to receive any funds for the
benefit of the Holders distributed under the Security Documents, and to make
further distributions of such funds to the Holders according to the provisions
of this Indenture.

SECTION 11.08.           Purchaser Protected.  In no event shall any purchaser in good faith
of any property purported to be released hereunder be bound to ascertain the authority
of the Collateral Agent or the Trustee to execute the release or to inquire as
to the satisfaction of any conditions required by the provisions hereof for the
exercise of such authority or to see to the application of any consideration
given by such purchaser or other transferee; nor shall any purchaser or other
transferee of any property

 102
 

 

 

or rights permitted by this Article 11 to be sold
be under any obligation to ascertain or inquire into the authority of the
Company or the applicable Note Guarantor to make any such sale or other
transfer.

SECTION 11.09.           Powers Exercisable by Receiver or
Trustee.  In case the Collateral
shall be in the possession of a receiver or trustee, lawfully appointed, the
powers conferred in this Article 11 upon the Company or a Note Guarantor
with respect to the release, sale or other disposition of such property may be
exercised by such receiver or trustee, and an instrument signed by such
receiver or trustee shall be deemed the equivalent of any similar instrument of
the Company or a Note Guarantor or of any officer or officers thereof required
by the provisions of this Article 11; and if the Trustee shall be in the
possession of the Collateral under any provision of this Indenture, then such
powers may be exercised by the Trustee.

SECTION 11.10.           Release Upon Termination of the
Company’s Obligations.  In the event
that the Company delivers to the Trustee, in form and substance acceptable to
the Trustee, an Officers’ Certificate certifying that all the obligations under
this Indenture, the Securities and the Security Documents have been satisfied
and discharged by complying with the provisions of Article 8 and
Section 7.07 or by the payment in full of the Company’s obligations under
the Securities, this Indenture and the Security Documents, and all such
obligations have been so satisfied, the Trustee (if not then the Collateral
Agent) shall deliver to the Company and the Collateral Agent a notice stating
that the Trustee, on behalf of the Holders, disclaims and gives up any and all
rights it has in or to the Collateral (other than with respect to funds held by
the Trustee pursuant to Article 8), and any rights it has under the
Security Documents, and upon receipt by the Collateral Agent of such notice,
the Collateral Agent shall be deemed not to hold a Lien in the Collateral on
behalf of the Trustee and shall do or cause to be done all acts reasonably
necessary to release such Lien as soon as is reasonably practicable.

SECTION 11.11.           Trustee and Collateral Agent.  (a)  The Trustee shall initially
act as Collateral Agent and shall be authorized to appoint co-Collateral Agents
as necessary in its sole discretion. In the event the Trustee and the
Collateral Agent shall at any time not be the same Person, the Collateral Agent
shall take such actions under the Security Documents and the Intercreditor
Agreement as are requested by the Trustee and as are not inconsistent with or
contrary to the provisions of any Security Document or the Intercreditor
Agreement.  Except as otherwise explicitly
provided herein or in the Security Documents or the Intercreditor Agreement,
neither the Collateral Agent nor any of its respective officers, directors,
employees or agents shall be liable for failure to demand, collect or realize
upon any of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
any other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof.  The
Collateral Agent shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and neither the Collateral
Agent nor any of its officers, directors, employees or agents shall be
responsible for any act or failure to act hereunder, except for its own willful
misconduct, gross negligence or bad faith.

 103
 

 

 

(b)           Each of the Trustee and the
Collateral Agent is authorized and directed to (i) enter into the Security
Documents, (ii) enter into the Intercreditor Agreement, (iii) bind
the Holders on the terms as set forth in the Security Documents and the
Intercreditor Agreement and (iv) perform and observe its obligations under the
Security Documents and the Intercreditor Agreement; provided, however,
that if any of the provisions of the Security Documents limit, qualify or
conflict with the duties imposed by the provisions of the TIA, the TIA shall
control.

(c)           If the Company or any Subsidiary
Guarantor (i) Incurs First-Priority Lien Obligations or Pari Passu Lien
Obligations at any time when no intercreditor agreement is in effect or at any
time when Indebtedness constituting First-Priority Lien Obligations or Pari
Passu Lien Obligations entitled to the benefit of an existing Intercreditor
Agreement is concurrently retired, and (ii) delivers to the Trustee and
the Collateral Agent an Officers’ Certificate so stating and requesting the
Trustee or the Collateral Agent to enter into an intercreditor agreement (on
substantially the same terms as the Intercreditor Agreement in effect on the
Issue Date) in favor of a designated agent or representative for the holders of
the First-Priority Lien Obligations or Pari Passu Lien Obligations so Incurred,
each of the Trustee and the Collateral Agent shall (and is hereby authorized
and directed to) enter into such intercreditor agreement, bind the Holders on
the terms set forth therein and perform and observe its obligations thereunder.

SECTION 11.12.           Designations.  For purposes of the provisions hereof and the
Intercreditor Agreement permitting the Company to designate Indebtedness as “Pari
Passu Lien Obligations” or any other such designations hereunder or under the
Intercreditor Agreement, any such designation shall be sufficient if the
relevant designation is set forth in writing, signed on behalf of the Company
by an Officer and delivered to the Trustee, the Collateral Agent and the
Intercreditor Agent.

Article 12

Miscellaneous

SECTION 12.01.           Trust Indenture
Act Controls. 
If any provision of this Indenture limits, qualifies or conflicts with
another provision which is required to be included in this Indenture by the
TIA, the required provision shall control.

SECTION 12.02.           Notices.  Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail addressed as
follows:

if to the Company or any Note Guarantor:

75 Tri-State
International, Suite 450

Lincolnshire, Illinois
60069

(fax: (847) 295-3851)

Attention: Mike Alger,
Chief Financial Officer

 104
 

 

 

with a copy to:

James S. Rowe, Esq.

Douglas C. Gessner, Esq.

Kirkland & Ellis LLP

200 E. Randolph Drive,

Chicago, Illinois 60601

(fax: (312) 861-2200)

if to the Trustee:

U.S. Bank National
Association

60 Livingston Avenue

EP-MN-WS3C

St. Paul, MN 55107-2292

(fax: (651) 495-8097)

Attention:  Rick Prokosch

with a copy to:

U.S. Bank National
Association

1420 Fifth Avenue, 7th
Floor

Seattle, WA 98101

(fax: (206) 344-4630)

Attention: Craig
Ferguson, TR

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

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

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

SECTION 12.03.           Communication
by Holders with Other Holders.  Securityholders may communicate pursuant to
TIA § 312(b) with other Securityholders with respect to their rights under this
Indenture or the Securities.  The
Company, any Note Guarantor, the Trustee, the Registrar and anyone else shall
have the protection of TIA § 312(c).

SECTION 12.04.           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:

 105
 

 

 

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

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

SECTION 12.05.           Statements
Required in Certificate or Opinion.  Each certificate or opinion with respect to
compliance with a covenant or condition provided for in this Indenture shall
include:

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

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

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

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

SECTION 12.06.           When Securities
Disregarded.  In
determining whether the Holders of the required principal amount of Securities
have concurred in any direction, waiver or consent, Securities owned by the
Company or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company shall be disregarded
and deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which the Trustee knows are so owned shall be so
disregarded.  Also, subject to the
foregoing, only Securities outstanding at the time shall be considered in any
such determination.

SECTION 12.07.           Rules by Trustee, Paying Agent and
Registrar.  The Trustee may
make reasonable rules for action by or a meeting of Securityholders.  The Registrar and the Paying Agent may make
reasonable rules for their functions.

SECTION 12.08.           Legal Holidays.  If a payment date is a Legal Holiday, payment
shall be made on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period.  If a regular record date is a Legal Holiday,
the record date shall not be affected.

 106
 

 

 

SECTION 12.09.           Governing Law.  This Indenture and the Securities shall be
governed by, and construed in accordance with, the laws of the State of
New York.

SECTION 12.10.           No Recourse Against Others.  A director, officer, employee or stockholder,
as such, of the Company or any Note Guarantor shall not have any liability for
any obligations of the Company under the Securities or this Indenture or of
such Note Guarantor under its Note Guaranties or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation.  By accepting a Security, each
Securityholder shall waive and release all such liability.  The waiver and release shall be part of the
consideration for the issue of the Securities.

SECTION 12.11.           Successors.  All agreements of the Company in this
Indenture and the Securities shall bind its successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

SECTION 12.12.           Multiple Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this
Indenture.

SECTION 12.13.           Table of Contents; Headings.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not intended to be considered a part
hereof and shall not modify or restrict any of the terms or provisions hereof.

 107
 

 

 

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

 

	
   

  	
  INDALEX HOLDINGS FINANCE, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Name:

  	
  Timothy R. J. Stubbs

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INDALEX HOLDINGS CORP.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Name:

  	
  Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INDALEX INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Name:

  	
  Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CARADON LEBANON INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Name:

  	
  Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DOLTON ALUMINUM COMPANY, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Name:

  	
  Timothy R.J. Stubbs

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  

 

 108
 

 

 

	
  

  	
  U.S. BANK NATIONAL ASSOCIATION,

  as Trustee and (for purposes of Article 11 only) as the

  Collateral Agent,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Raymond S. Haverstock

  
	
   

  	
   

  	
  Name:

  	
  Raymond S. Haverstock

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 109

 

 

RULE 144A/REGULATION S/IAI
APPENDIX

PROVISIONS RELATING TO
INITIAL SECURITIES

AND EXCHANGE SECURITIES

1.             Definitions

1.1           Definitions

 

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

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

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

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

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

“Exchange Securities”
means (i) the 11-1/2% Second-Priority Senior Secured Notes due 2014 issued
pursuant to the Indenture in connection with a Registered Exchange Offer
pursuant to a Registration Rights Agreement and (ii) Additional Securities, if
any, issued pursuant to a registration statement filed with the SEC under the
Securities Act.

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

“Initial Purchasers” means (1) with respect to the Initial Securities issued on the Issue Date,
JPMorgan Securities Inc., Harris Nesbitt Corp, Credit Suisse Securities
(USA) LLC, Morgan Joseph & Co. Inc. and Piper Jaffray & Co., and (2) with respect to each issuance of
Additional Securities, the Persons purchasing or underwriting such Additional
Securities under the related Purchase Agreement.

 

 

“Initial Securities”
means (i) $270,000,000 aggregate principal amount of 11-1/2% Second-Priority
Senior Secured Notes due 2014 issued on the Issue Date and (ii) Additional
Securities, if any, issued in a transaction exempt from  the registration requirements of the
Securities Act.

“Purchase Agreement”
means (1) with respect to the
Initial Securities issued on the Issue Date, the Purchase Agreement
dated January 30, 2006, among the Company, the Note Guarantors and the Initial
Purchasers, and (2) with respect
to each issuance of Additional Securities, the purchase agreement or
underwriting agreement among the Company, the Note Guarantors and the Persons
purchasing or underwriting such Additional Securities.

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

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

“Registration Rights
Agreements” means (1) with respect
to the Initial Securities issued on the Issue Date, the Registration
Rights Agreement dated February 2, 2006, among the Initial Purchasers, the
Company and the Note Guarantors and
(2) with respect to each issuance of Additional Securities issued in a
transaction exempt from the registration requirements of the Securities Act, the
registration rights agreement, if any, among the Company, the Note Guarantors
and the Persons purchasing such Additional Securities under the related
Purchase Agreement.

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

“Securities Act” means
the Securities Act of 1933.

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

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

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

 2
 

 

 

1.2           Other Definitions

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.1(b)

  	
   

  
	
  “Global
  Securities”

  	
   

  	
  2.1(a)

  	
   

  
	
  “IAI Global
  Security”

  	
   

  	
  2.1(a)

  	
   

  
	
  “Permanent
  Regulation S Global Security”

  	
   

  	
  2.1(a)

  	
   

  
	
  “Regulation S”

  	
   

  	
  2.1(a)

  	
   

  
	
  “Regulation S
  Global Security”

  	
   

  	
  2.1(a)

  	
   

  
	
  “Rule 144A”

  	
   

  	
  2.1(a)

  	
   

  
	
  “Rule 144A
  Global Security”

  	
   

  	
  2.1(a)

  	
   

  
	
  “Sun Capital
  Securities”

  	
   

  	
  2.1(a)

  	
   

  
	
  “Temporary Regulation S
  Global Security”

  	
   

  	
  2.1(a)

  	
   

  

 

2.             The
Securities.

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

 3
 

 

 

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

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

Beneficial interests in
Temporary Regulation S Global Securities and Rule 144A Global Securities
may be exchanged for an interest in IAI Global Securities if (1) such
exchange occurs in connection with a transfer of the securities in compliance
with an exemption under the Securities Act and (2) the transferor of the
Regulation S Global Security or Rule 144A Global Security, as applicable,
first delivers to the trustee a written certificate (substantially in the form
of Exhibit B to this Indenture) to the effect that (A) the
Regulation S Global Security or Rule 144A Global Security, as applicable,
is being transferred (a) to an “accredited investor” within the meaning of
501(a)(1),(2),(3) or (7) under the Securities Act that is an institutional
investor acquiring the securities for its own account or for the account of
such an institutional accredited investor, in each case in a minimum principal
amount of the securities of $250,000, for investment purposes and not with a
view to or for offer or sale in connection with any distribution in violation
of the Securities Act and (B) in accordance with all applicable securities laws
of the States of the United States and other jurisdictions.

Beneficial interests in a
Rule 144A Global Security or an IAI Global Security may be transferred to
a Person who takes delivery in the form of an interest in a Regulation S
Global Security, whether before or after the expiration of the Distribution
Compliance Period, only if the transferor first delivers to the Trustee a
written certificate (in the form of the “Assignment Form” included in
Exhibit 1 to this Appendix, as applicable) to the effect that such
transfer is being made in accordance with Rule 903 or 904 of
Regulation S or Rule 144 (if applicable).

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

 4
 

 

 

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

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

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

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

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

2.2           Authentication.  The Trustee
shall authenticate and deliver: 
(1) on the Issue Date, an aggregate principal amount of
$270,000,000 million of 11-1/2% Second-Priority Senior Secured Notes due
2014, (2) any Additional
Securities for an original issue in an aggregate principal amount specified in
the written order of the Company pursuant to Section 2.02 of the Indenture
and (3) Exchange
Securities for issue only in a Registered Exchange Offer pursuant to a
Registration Rights Agreement, for a like principal amount of Initial
Securities, in each case upon a written order of the Company signed by an
Officer of the Company.  Such order shall
specify the amount of the Securities to be authenticated and the date on which
the original issue of Securities is to be authenticated and, in the case of any issuance of Additional Securities pursuant to
Section 2.13 of the Indenture, shall certify that such issuance is in
compliance with Section 4.03 of the Indenture.

 5
 

 

 

2.3           Transfer and Exchange.

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

(x)                                   to
register the transfer of such Definitive Securities; or

(y)                                 to
exchange such Definitive Securities for an equal principal amount of Definitive
Securities of other authorized denominations,

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

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

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

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

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

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

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

 6

 

 

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

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

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

(c)           Transfer and Exchange of Global
Securities.

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

 7
 

 

 

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

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

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

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

(d)           Restrictions on Transfer of
Temporary Regulation S Global Securities. 
During the Distribution Compliance Period, beneficial ownership
interests in Temporary Regulation S Global Securities may only be sold, pledged
or transferred in accordance with the Applicable Procedures and only
(1) to the Company, (2) so long as such security is eligible for
resale pursuant to Rule 144A, to a person whom the selling holder
reasonably believes is a QIB that purchases for its own account or for the
account of a QIB to whom notice is given that the resale, pledge or transfer is
being made in reliance on Rule 144A, (3) in an offshore transaction
in accordance with Regulation S (other than a transaction resulting in an
exchange for an interest in a Permanent Regulation S Global Security),
(4) pursuant to an exemption from registration under the Securities Act
provided by Rule 144 (if applicable) under the Securities Act, (5) to
an IAI purchasing for its own account, or for the account of such an IAI, in a
minimum principal amount of Securities of $250,000 or (6) pursuant to an effective
registration statement

 8
 

 

 

under the Securities Act, in each case in accordance
with any applicable securities laws of any state of the United States.  Upon the expiration of the Distribution
Compliance Period, beneficial ownership interests in the Regulation S Global
Security shall be transferable in accordance with applicable law and the other
terms of this Indenture.

(e)           Legend.

(i)            Except as permitted by the following
paragraphs (ii), (iii) and (iv), each Security certificate evidencing the
Global Securities (and all Securities issued in exchange therefor or in
substitution thereof) shall bear a legend in substantially the following form:

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

 9
 

 

 

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 COMPANY’S AND
THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.

Each Definitive Security
shall also bear the following additional legend:

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

The Sun Capital
Securities shall also bear the following legend:

ON THE ISSUE DATE, THIS SECURITY WAS ISSUED TO AN
AFFILIATE OF THE COMPANY AS SUCH TERM IS DEFINED IN RULE 144 OF THE SECURITIES
ACT.  ACCORDINGLY, THE APPLICABLE HOLDING
PERIOD UNDER RULE 144 PRIOR TO WHICH ANY SUBSEQUENT TRANSFEREE OF THIS SECURITY
MAY FREELY TRANSFER THIS SECURITY SHALL NOT COMMENCE UNTIL THE LAST DATE ON
WHICH AN AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY.

 10
 

 

 

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

(iii)          After a transfer of any Initial
Securities pursuant to and during the period of the effectiveness of a Shelf
Registration Statement with respect to such Initial Securities, all
requirements pertaining to legends on such Initial Security will cease to
apply, the requirements requiring any such Initial Security issued to certain
Holders be issued in global form will cease to apply, and a certificated
Initial Security or an Initial Security in global form, in each case without
restrictive transfer legends, will be available to the transferee of the Holder
of such Initial Securities upon exchange of such transferring Holder’s
certificated Initial Security or directions to transfer such Holder’s interest
in the Global Security, as applicable.

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

(v)           Upon a sale or transfer after the
expiration of the Distribution Compliance Period of any Initial Security
acquired pursuant to Regulation S, all requirements that such Initial Security
bear the Restricted Securities Legend shall cease to apply and the requirements
requiring any such Initial Security be issued in global form shall continue to
apply.

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

 11
 

 

 

such Global Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such
reduction.

(g)           No Obligation of the Trustee.

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

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

2.4           Definitive Securities.

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

 12
 

 

 

continuing or (iii) the Company, in its sole
discretion, notifies the Trustee in writing that it elects to cause the
issuance of Definitive Securities under this Indenture.

(b)           Any Global Security that is
transferable to the beneficial owners thereof pursuant to this Section 2.4
shall be surrendered by the Depository to the Trustee located at its principal
corporate trust office in the Borough of Manhattan, The City of New York, to be
so transferred, in whole or from time to time in part, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such Global Security, an equal aggregate principal amount of Definitive
Securities of authorized denominations. 
Any portion of a Global Security transferred pursuant to this
Section 2.4 shall be executed, authenticated and delivered only in
denominations of $1,000 principal amount and any integral multiple thereof and
registered in such names as the Depository shall direct.  Any Definitive Security delivered in exchange
for an interest in the Global Security shall, except as otherwise provided by
Section 2.3(e) hereof, bear the applicable restricted securities legend
and definitive securities legend set forth in Exhibit 1 hereto.

(c)           Subject to the provisions of
Section 2.4(b) hereof, the registered Holder of a Global Security shall be
entitled to grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the
Securities.

(d)           In the event of the occurrence of one
of the events specified in Section 2.4(a) hereof, the Company shall
promptly make available to the Trustee a reasonable supply of Definitive
Securities in definitive, fully registered form without interest coupons.  In the event that such Definitive Securities
are not issued, the Company expressly acknowledges, with respect to the right
of any Holder to pursue a remedy pursuant to Article 6 of this Indenture,
the right of any beneficial owner of Securities to pursue such remedy with
respect to the portion of the Global Security that represents such beneficial
owner’s Securities as if such Definitive Securities had been issued.

 13

 

EXHIBIT 1

to

RULE 144A/REGULATION S/IAI APPENDIX

[FORM OF FACE OF INITIAL SECURITY]

[Global Securities Legend]

UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

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

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

[Restricted Securities Legend]

THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE
HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR

 

 

ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) THAT IS [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 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
CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.

[Temporary Regulation S Global Security Legend]

EXCEPT AS SET FORTH
BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
SECURITY WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S
GLOBAL SECURITY OR ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE
SECURITIES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING
RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION
COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(B)(2) OF REGULATION S UNDER
THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY
SATISFACTORY TO THE TRUSTEE

 2
 

 

 

THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY
NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION
THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT.  DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE
PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
SECURITY MAY BE SOLD, PLEDGED OR TRANSFERRED 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 (“RULE 144A”), TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES 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 ANY OTHER 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
CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. IN EACH OF
CASES (A) THROUGH (F) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES AND OTHER JURISDICTIONS.  HOLDERS OF INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL SECURITY WILL NOTIFY ANY PURCHASER OF THIS SECURITY OF THE
RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

BENEFICIAL INTERESTS IN
THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED FOR INTERESTS IN A
RULE 144A GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A
TRANSFER OF THE SECURITIES IN COMPLIANCE WITH RULE 144A AND (2) THE TRANSFEROR
OF THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN
CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE
REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO A PERSON WHO THE
TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A, (B) TO A PERSON WHO IS

 3
 

 

 

PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES
OF THE UNITED STATES AND OTHER JURISDICTIONS.

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

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

[Definitive Securities Legend]

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

[Sun Capital Securities Legend]

 4
 

 

 

ON THE ISSUE DATE, THIS
SECURITY WAS ISSUED TO AN AFFILIATE OF THE COMPANY AS SUCH TERM IS DEFINED IN
RULE 144 OF THE SECURITIES ACT. 
ACCORDINGLY, THE APPLICABLE HOLDING PERIOD UNDER RULE 144 PRIOR TO WHICH
ANY SUBSEQUENT TRANSFEREE OF THIS SECURITY MAY FREELY TRANSFER THIS SECURITY
SHALL NOT COMMENCE UNTIL THE LAST DATE ON WHICH AN AFFILIATE OF THE COMPANY WAS
THE OWNER OF THIS SECURITY.

 5
 

 

 

	
  No.

  	
  $

  

 

11-1/2% Second-Priority
Senior Secured Notes due 2014

Indalex Holding Corp., a
Delaware corporation, promises to pay to [•],
or registered assigns, the principal sum of [•] Dollars
on February 1, 2014.

Interest Payment
Dates:  February 1 and August 1.

Record Dates:       January 15 and July 15.

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

Dated:

	
   

  	
  INDALEX HOLDING CORP.,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  U.S. BANK
  NATIONAL ASSOCIATION

  	
   

  	
   

  
	
  as Trustee, certifies that this is one of the

  Securities referred to in the

  Indenture.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  
					

 

 6
 

 

 

[FORM OF REVERSE SIDE OF INITIAL SECURITY]

11-1/2% Second-Priority Senior Secured Note due 2014

1.                                       Interest.

Indalex Holding Corp., a
Delaware corporation (such corporation and its successors and assigns under the
Indenture hereinafter referred to as the “Company”), promises to pay interest
on the principal amount of this Security at the rate per annum shown above; provided,
however, that if a Registration Default (as defined in the Registration
Rights Agreement) occurs, additional interest will accrue on this Security at a
rate of 0.25% per annum (increasing by an additional 0.25% per annum after each
consecutive 90-day period that occurs after the date on which such Registration
Default occurs, up to a maximum additional interest rate of 1.0%) from and
including the date on which any such Registration Default shall occur to but
excluding the date on which all Registration Defaults have been cured.  The Company will pay interest semiannually in
arrears on February 1 and August 1 of each year, commencing August 1,
2006.  Interest on the Securities will
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from February 2, 2006. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.  The Company will pay
interest on overdue principal at the rate borne by this Security plus 1.0% per
annum, and will pay interest on overdue installments of interest at the same
rate to the extent lawful.

2.                                       Method
of Payment.

The Company will pay
interest on the Securities (except defaulted interest) to the Persons who are
registered holders of Securities at the close of business on the
January 15 or July 15 next preceding the interest payment date even
if Securities are canceled after the record date and on or before the interest
payment date.  Holders must surrender
Securities to a Paying Agent to collect principal payments.  The Company will pay principal and interest
in money of the United States that at the time of payment is legal tender for
payment of public and private debts. 
Payments in respect of the Securities represented by a Global Security
(including principal, premium and interest) will be made by wire transfer of
immediately available funds to the accounts specified by the Depository.  The Company will make all payments in respect
of a certificated Security (including principal, premium and interest) by
mailing a check to the registered address of each Holder thereof; provided,
however, that payments on a certificated Security will be made by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).

3.                                       Paying
Agent and Registrar.

Initially, U.S. Bank
National Association, a national banking association (the “Trustee”), will
act as Paying Agent and Registrar.  The
Company may appoint and

 7
 

 

 

change any Paying Agent, Registrar or co-registrar
without notice.  The Company or any of
its domestically incorporated Wholly Owned Subsidiaries may act as Paying
Agent, Registrar or co-registrar.

4.                                       Indenture.

The Company issued the
Securities under an Indenture dated as of February 2, 2006 (“Indenture”), among the Company, the Note Guarantors and
the Trustee.  The terms of the Securities
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb)
(the “Act”).  Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture.  The Securities are subject to
all such terms, and Securityholders are referred to the Indenture and the Act
for a statement of those terms.

The Securities are
general second priority senior secured obligations
of the Company.  The Company shall be entitled, subject to its compliance with
Section 4.03 of the Indenture, to issue Additional Securities pursuant to Section 2.13 of the
Indenture.  The Initial Securities
issued on the Issue Date, any
Additional Securities and
all Exchange Securities issued in exchange therefor will be treated as a single
class for all purposes under the Indenture. 
The Indenture contains covenants that limit the ability of the Company
and its Restricted Subsidiaries to incur additional indebtedness; pay dividends
or distributions on, or redeem or repurchase capital stock; make investments;
engage in transactions with affiliates; transfer or sell assets; guarantee
indebtedness; restrict dividends or other payments of subsidiaries; and
consolidate, merge or transfer all or substantially all of their assets and the
assets of their subsidiaries.  These covenants are subject to important
exceptions and qualifications.

5.                                       Optional
Redemption.

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

On and after February 1, 2010, the Company shall be
entitled at its option to redeem all or a portion of the Securities upon not
less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed in percentages of principal amount on the redemption date), plus
accrued and unpaid interest, if any, to the redemption date (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date), if redeemed during the 12-month period
commencing on February 1 of the years set forth below:

 

	
  Period

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  108.625

  	
  %

  
	
  2011

  	
   

  	
  102.875

  	
  %

  
	
  2012 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

 8
 

 

 

Prior to February 1,
2009, the Company shall be entitled at its option on one or more occasions to
redeem Securities (which includes
Additional Securities, if any)
in an aggregate principal amount (together with the principal amount of
Securities redeemed as described in the following paragraph) not to exceed 35%
of the aggregate principal amount of the Securities (which includes Additional Securities, if any) originally issued at a redemption price (expressed as a
percentage of principal amount) of 111.50%, plus accrued and unpaid interest,
if any, to the redemption date, with the net cash proceeds from one or more
Equity Offerings; provided, however, that (1) at least 65%
of such aggregate principal amount of Securities (which includes Additional Securities, if any) remains outstanding immediately after the occurrence of
each such redemption (other than Securities held, directly or indirectly, by
the Company or its Affiliates);
and (2) each such redemption occurs within 90 days after the date of
the related Equity Offering.

Prior to February 1,
2010, the Company shall be entitled at its option to redeem all or a portion of
the Securities (which includes Additional Securities, if any) at a redemption
price equal to the sum of 100% of the principal amount of the Securities (which
includes Additional Securities, if any) plus the applicable Make-Whole Amount
(as defined in the Indenture) as of the redemption date, if any, and accrued
and unpaid interest, if any, to the redemption date (subject to the right of
Holders on the relevant record date to receive interest due on the relevant
interest payment date).  The Company
shall cause notice of such redemption to be mailed by first-class mail to each
Holder’s registered address, not less than 30 nor more than 60 days prior to
the redemption date.

6.                                       Notice
of Redemption.

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

 9
 

 

 

7.                                       Put
Provisions.

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

8.                                       Guaranty.

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

9.                                       Security.

The Securities will be
secured by the Collateral on the terms and subject to the conditions set forth
in the Indenture and the Security Documents, such security interest to be (i) second
in priority to security interests granted for the benefit of holders of
First-Priority Lien Obligations and (ii) subject to all other Permitted
Collateral Liens.  The Trustee and the
Collateral Agent, as the case may be, hold the Collateral in trust for the
benefit of the Trustee and the Holders, in each case pursuant to the Security
Documents and the Intercreditor Agreement. 
Each Holder, by accepting this Security, consents and agrees to the
terms of the Security Documents (including the provisions providing for the
foreclosure and release of Collateral) and the Intercreditor Agreement as the
same may be in effect or may be amended from time to time in accordance with
their terms and the Indenture and authorizes and directs the Collateral Agent
to enter into the Security Documents and the Intercreditor Agreement, and to
perform its obligations and exercise its rights thereunder in accordance
therewith.

10.                                 Denominations;
Transfer; Exchange.

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

 10

 

 

11.                                 Persons
Deemed Owners.

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

12.                                 Unclaimed
Money.

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

13.                                 Discharge
and Defeasance.

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

14.                                 Amendment,
Waiver.

Subject to certain
exceptions set forth in the Indenture, (a) the Indenture, the Security
Documents, the Intercreditor Agreement and the Securities may be amended with
the written consent of the Holders of at least a majority in principal amount
outstanding of the Securities and (b) any default or noncompliance with
any provision may be waived with the written consent of the Holders of a majority
in principal amount outstanding of the Securities.  Subject to certain exceptions set forth in
the Indenture, without the consent of any Holder of Securities, the Company, the Note Guarantors and the Trustee
shall be entitled to amend the Indenture, the Security Documents, the
Intercreditor Agreement with respect to the Securities or the Securities to
cure any ambiguity, omission, defect or inconsistency, or to comply with
Article 5 of the Indenture, or to provide for uncertificated Securities in
addition to or in place of certificated Securities, or to add guarantees with
respect to the Securities, including
Note Guaranties, or to secure the Securities, or to add additional
assets as Collateral, or release Collateral when permitted or required under
the Indenture or the Security Documents, or to add additional covenants or
surrender rights and powers conferred on the Company or the Note Guarantors, or to comply with any requirement of the
SEC in connection with qualifying the Indenture under the Act, or to make any
change that does not adversely affect the rights of any Holder of Securities,
or to make amendments to provisions of the Indenture relating to the form,
authentication, transfer and legending of the Securities.

15.                                 Defaults
and Remedies.

Under the Indenture,
Events of Default include (a) default for 30 days in payment of
interest on the Securities; (b) default in payment of principal on the
Securities at maturity, upon redemption pursuant to paragraph 5 of the
Securities, upon acceleration

 11
 

 

 

or otherwise, or failure by the Company to purchase
Securities when required; (c) failure by the Company or any Note Guarantor
to comply with other agreements in the Indenture or the Securities, in certain
cases subject to notice and lapse of time; (d) certain accelerations
(including failure to pay within any grace period after final maturity) of
other Indebtedness of the Company, any Subsidiary Guarantor or any Significant
Subsidiary if the amount accelerated (or so unpaid) exceeds $10 million;
(e) certain events of bankruptcy or insolvency with respect to the
Company, any Subsidiary Guarantor or any Significant Subsidiary;
(f) certain judgments or decrees for the payment of money in excess of
$10 million; (g) certain
defaults with respect to Note Guaranties; and (h) certain defaults
relating to the Collateral under the Security Documents.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the Securities may declare all the Securities to be due and payable
immediately.  Certain events of
bankruptcy or insolvency are Events of Default which will result in the
Securities being due and payable immediately upon the occurrence of such Events
of Default.

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

16.                                 Trustee
Dealings with the Company.

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

17.                                 No
Recourse Against Others.

A director, officer,
employee or stockholder, as such, of the Company or the Trustee shall not have
any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Security, each Securityholder waives and releases all such
liability.  The waiver and release are
part of the consideration for the issue of the Securities.

18.                                 Authentication.

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

 12
 

 

 

19.                                 Abbreviations.

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

20.                                 CUSIP
Numbers.

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

21.                                 Holders’
Compliance with Registration Rights Agreement.

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

22.                                 Governing
Law.

THIS
SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

The Company will furnish
to any Securityholder upon written request and without charge to the Securityholder
a copy of the Indenture which has in it the text of this Security in larger
type.  Requests may be made to:  75 Tri-State International, Suite 450,
Lincolnshire, Illinois 60069, (fax: (847) 295-3851); Attention:  Mike Alger, Chief Financial Officer.

 13
 

 

 

ASSIGNMENT FORM

To assign this Security,
fill in the form below:

I or we assign and
transfer this Security to

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

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

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

	
   

  
	
   

  
	
  Date: 

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  
	
   

  

 

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

In connection with any
transfer of any of the Securities evidenced by this certificate occurring prior
to the expiration of the period referred to in Rule 144(k) under the
Securities Act after the later of the date of original issuance of such
Securities and the last date, if any, on which such Securities were owned by
the Company or any Affiliate of the Company, the undersigned confirms that such
Securities are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

	
  o

  	
  to the Company; or

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (1)

  	
  o

  	
  pursuant to an
  effective registration statement under the Securities Act of 1933; or

  
	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
  o

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

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

  	
  outside the United
  States in an offshore transaction within 

  
						

 

 14
 

 

 

	
   

  	
   

  	
  the meaning of
  Regulation S under the Securities Act in compliance with Rule 904 under
  the Securities Act of 1933; or

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  o

  	
  pursuant to the
  exemption from registration provided by Rule 144 under the Securities Act of
  1933; or

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  o

  	
  to an institutional “accredited
  investor” (as defined in Rule 501(a)(1),(2),(3) or (7) under the Securities
  Act of 1933) that has furnished to the Trustee a signed letter containing
  certain representations and agreements.

  

 

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

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature must be
  guaranteed

  	
  Signature

  
				

 

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

 15
 

 

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Notice:  

  	
  To be executed by an

  executive officer

  

 

 16
 

 

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

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

	
  Date of

  Exchange

  	
   

  	
  Amount of decrease in

  Principal amount of this

  Global Security

  	
   

  	
  Amount of increase in

  Principal amount of this

  Global Security

  	
   

  	
  Principal amount of this

  Global Security following

  such decrease or increase

  	
   

  	
  Signature of authorized

  officer of Trustee or

  Securities Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 17
 

 

 

OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to
have this Security purchased by the Company pursuant to Section 4.06, 4.09 or 4.15 of the Indenture,
check the box:   o

If you want to elect to
have only part of this Security purchased by the Company pursuant to Section
4.06, 4.09 or 4.15 of the Indenture, state the amount in principal amount:  $[·]

 

	
  Dated:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the

  other side of this Security.)

  

 

	
  Signature Guarantee:

  	
   

  
	
   

  	
  (Signature must
  be guaranteed)

  

 

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

 18

 

EXHIBIT A

[FORM OF FACE OF EXCHANGE SECURITY]*

 

 

 

*/
[If the Security is to be issued in global form add the Global Securities
Legend from Exhibit 1 to Appendix A and the attachment from such Exhibit 1
captioned “[TO BE ATTACHED TO GLOBAL SECURITIES] - SCHEDULE OF INCREASES OR
DECREASES IN GLOBAL SECURITY”.]

 

 

No.                           
$

11-1/2% Second-Priority Senior Secured Notes due 2014

Indalex Holding Corp., a
Delaware corporation, promises to pay to [•],
or registered assigns, the principal sum of [•]
Dollars on February 1, 2014.

Interest Payment
Dates:  February 1 and August 1.

Record Dates:  January 15 and July 15.

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

Dated:

 

	
   

  	
  INDALEX HOLDING CORP.,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  U.S. BANK
  NATIONAL ASSOCIATION

  	
   

  	
   

  
	
  as Trustee, certifies that this is one of the

  Securities referred to in the Indenture.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  

 

 2
 

 

 

[FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

11-1/2% Second-Priority Senior Secured Note due 2014

1.                                       Interest.

Indalex Holding Corp., a
Delaware corporation (such corporation and its successors and assigns under the
Indenture hereinafter referred to as the “Company”), promises to pay interest
on the principal amount of this Security at the rate per annum shown above; [provided, however, that if a Registration Default (as
defined in the Registration Rights Agreement) occurs, additional interest will
accrue on this Security at a rate of 0.25% per annum (increasing by an
additional 0.25% per annum after each consecutive 90-day period that occurs
after the date on which such Registration Default occurs, up to a maximum
additional interest rate of 1.0%) from and including the date on which any such
Registration Default shall occur to but excluding the date on which all
Registration Defaults have been cured.](1)  The Company will pay interest semiannually in
arrears on February 1 and August 1 of each year, commencing August 1,
2006.  Interest on the Securities will
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from February 2, 2006. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.  The Company will pay
interest on overdue principal at the rate borne by this Security plus 1.0% per
annum, and will pay interest on overdue installments of interest at the same
rate to the extent lawful.

2.                                       Method
of Payment.

The Company will pay
interest on the Securities (except defaulted interest) to the Persons who are
registered holders of Securities at the close of business on the
January 15 or July 15 next preceding the interest payment date even
if Securities are canceled after the record date and on or before the interest
payment date.  Holders must surrender
Securities to a Paying Agent to collect principal payments.  The Company will pay principal and interest
in money of the United States that at the time of payment is legal tender for
payment of public and private debts. 
Payments in respect of the Securities represented by a Global Security
(including principal, premium and interest) will be made by wire transfer of
immediately available funds to the accounts specified by the Depository.  The Company will make all payments in respect
of a certificated Security (including principal, premium and interest) by
mailing a check to the registered address of each Holder thereof; provided,
however, that payments on a certificated Security will be made by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).

(1) Insert if at the date of issuance of the Exchange Security any
Registration Default has occurred with respect to the related Initial
Securities during the interest period in which such date of issuance occurs.

 3
 

 

 

3.                                       Paying
Agent and Registrar.

Initially, U.S. Bank
National Association, a national banking association (the “Trustee”), will
act as Paying Agent and Registrar.  The
Company may appoint and change any Paying Agent, Registrar or co-registrar
without notice.  The Company or any of
its domestically incorporated Wholly Owned Subsidiaries may act as Paying
Agent, Registrar or co-registrar.

4.                                       Indenture.

The Company issued the
Securities under an Indenture dated as of February 2, 2006 (“Indenture”), among the Company, the Note Guarantors and
the Trustee.  The terms of the Securities
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) (the “Act”).  Terms
defined in the Indenture and not defined herein have the meanings ascribed
thereto in the Indenture.  The Securities
are subject to all such terms, and Securityholders are referred to the
Indenture and the Act for a statement of those terms.

The Securities are
general second priority senior secured obligations
of the Company.  The Company shall be entitled, subject to its compliance with
Section 4.03 of the Indenture, to issue Additional Securities pursuant to Section 2.13 of the
Indenture.  The Initial Securities
issued on the Issue Date, any
Additional Securities and
all Exchange Securities issued in exchange therefor will be treated as a single
class for all purposes under the Indenture. 
The Indenture contains covenants that limit the ability of the Company
and its Restricted Subsidiaries to incur additional indebtedness; pay dividends
or distributions on, or redeem or repurchase capital stock; make investments;
engage in transactions with affiliates; transfer or sell assets; guarantee
indebtedness; restrict dividends or other payments of subsidiaries; and
consolidate, merge or transfer all or substantially all of their assets and the
assets of their subsidiaries.  These covenants are subject to important
exceptions and qualifications.

5.                                       Optional
Redemption.

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

On and after February 1,
2010, the Company shall be entitled at its option to redeem all or a portion of
the Securities upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed in percentages of principal amount on the
redemption date), plus accrued and unpaid interest, if any, to the redemption
date (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date), if redeemed during
the 12-month period commencing on February 1 of the years set forth below:

 4
 

 

 

	
  Period

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  108.625

  	
  %

  
	
  2011

  	
   

  	
  102.875

  	
  %

  
	
  2012 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

Prior to February 1,
2009, the Company shall be entitled at its option on one or more occasions to
redeem Securities (which includes
Additional Securities, if any)
in an aggregate principal amount (together with the principal amount of
Securities redeemed as described in the following paragraph) not to exceed 35%
of the aggregate principal amount of the Securities (which includes Additional Securities, if any) originally issued at a redemption price (expressed as a
percentage of principal amount) of 111.50%, plus accrued and unpaid interest,
if any, to the redemption date, with the net cash proceeds from one or more
Equity Offerings; provided, however, that (1) at least 65%
of such aggregate principal amount of Securities (which includes Additional Securities, if any) remains outstanding immediately after the occurrence of
each such redemption (other than Securities held, directly or indirectly, by
the Company or its Affiliates);
and (2) each such redemption occurs within 90 days after the date of
the related Equity Offering.

Prior to February 1,
2010, the Company shall be entitled at its option to redeem all or a portion of
the Securities (which includes Additional Securities, if any) at a redemption
price equal to the sum of 100% of the principal amount of the Securities (which
includes Additional Securities, if any) plus the applicable Make-Whole Amount
(as defined in the Indenture) as of the redemption date, if any, and accrued
and unpaid interest, if any, to the redemption date (subject to the right of
Holders on the relevant record date to receive interest due on the relevant
interest payment date).  The Company
shall cause notice of such redemption to be mailed by first-class mail to each
Holder’s registered address, not less than 30 nor more than 60 days prior to
the redemption date.

6.                                       Notice
of Redemption.

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

 5
 

 

 

7.                                       Put
Provisions.

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

8.                                       Guaranty.

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

9.                                       Security.

The Securities will be
secured by the Collateral on the terms and subject to the conditions set forth
in the Indenture and the Security Documents, such security interest to be (i)
second in priority to security interests granted for the benefit of holders of
First-Priority Lien Obligations and (ii) subject to all other Permitted
Collateral Liens.  The Trustee and the
Collateral Agent, as the case may be, hold the Collateral in trust for the
benefit of the Trustee and the Holders, in each case pursuant to the Security
Documents and the Intercreditor Agreement. 
Each Holder, by accepting this Security, consents and agrees to the
terms of the Security Documents (including the provisions providing for the
foreclosure and release of Collateral) and the Intercreditor Agreement as the
same may be in effect or may be amended from time to time in accordance with
their terms and the Indenture and authorizes and directs the Collateral Agent
to enter into the Security Documents and the Intercreditor Agreement, and to
perform its obligations and exercise its rights thereunder in accordance
therewith.

10.                                 Denominations;
Transfer; Exchange.

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

11.                                 Persons
Deemed Owners.

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

 6
 

 

 

12.                                 Unclaimed
Money.

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

13.                                 Discharge
and Defeasance.

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

14.                                 Amendment,
Waiver.

Subject to certain
exceptions set forth in the Indenture, (a) the Indenture, the Security
Documents, the Intercreditor Agreement and the Securities may be amended with
the written consent of the Holders of at least a majority in principal amount
outstanding of the Securities and (b) any default or noncompliance with
any provision may be waived with the written consent of the Holders of a
majority in principal amount outstanding of the Securities.  Subject to certain exceptions set forth in
the Indenture, without the consent of any Holder of Securities, the Company, the Note Guarantors and the Trustee
shall be entitled to amend the Indenture, the Security Documents, the
Intercreditor Agreement with respect to the Securities or the Securities to
cure any ambiguity, omission, defect or inconsistency, or to comply with
Article 5 of the Indenture, or to provide for uncertificated Securities in
addition to or in place of certificated Securities, or to add guarantees with
respect to the Securities, including
Note Guaranties, or to secure the Securities, or to add additional
assets as Collateral, or release Collateral when permitted or required under
the Indenture or the Security Documents, or to add additional covenants or
surrender rights and powers conferred on the Company or the Note Guarantors, or to comply with any requirement of the
SEC in connection with qualifying the Indenture under the Act, or to make any
change that does not adversely affect the rights of any Holder of Securities,
or to make amendments to provisions of the Indenture relating to the form,
authentication, transfer and legending of the Securities.

15.                                 Defaults
and Remedies.

Under the Indenture,
Events of Default include (a) default for 30 days in payment of
interest on the Securities; (b) default in payment of principal on the
Securities at maturity, upon redemption pursuant to paragraph 5 of the
Securities, upon acceleration or otherwise, or failure by the Company to
purchase Securities when required; (c) failure by the Company or any Note
Guarantor to comply with other agreements in the Indenture or the Securities,
in certain cases subject to notice and lapse of time; (d) certain
accelerations (including failure to pay within any grace period after final
maturity) of

 7
 

 

 

other Indebtedness of the Company, any Subsidiary
Guarantor or any Significant Subsidiary if the amount accelerated (or so
unpaid) exceeds $10 million; (e) certain events of bankruptcy or
insolvency with respect to the Company, any Subsidiary Guarantor or any
Significant Subsidiary; (f) certain judgments or decrees for the payment
of money in excess of $10 million;
(g) certain defaults with respect to Note Guaranties; and (h) certain
defaults relating to the Collateral under the Security Documents.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the Securities may declare all the Securities to be due and payable
immediately.  Certain events of
bankruptcy or insolvency are Events of Default which will result in the
Securities being due and payable immediately upon the occurrence of such Events
of Default.

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

16.                                 Trustee
Dealings with the Company.

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

17.                                 No
Recourse Against Others.

A director, officer,
employee or stockholder, as such, of the Company or the Trustee shall not have
any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Security, each Securityholder waives and releases all such
liability.  The waiver and release are
part of the consideration for the issue of the Securities.

18.                                 Authentication.

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

19.                                 Abbreviations

Customary abbreviations
may be used in the name of a Securityholder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the

 8
 

 

 

entireties), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A
(=Uniform Gift to Minors Act).

20.                                 CUSIP
Numbers

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

[21.                             Holders’
Compliance with Registration Rights Agreement.

Each
Holder of a Security, by acceptance hereof, acknowledges and agrees to the
provisions of the Registration Rights Agreement, including the obligations of
the Holders with respect to a registration and the indemnification of the
Company to the extent provided therein.](2)

22.                                 Governing
Law.

THIS
SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

The Company will furnish
to any Securityholder upon written request and without charge to the
Securityholder a copy of the Indenture which has in it the text of this
Security in larger type.  Requests may be
made to: 75 Tri-State International, Suite 450 Lincolnshire, Illinois 60069,
(fax: (847) 295-3851); Attention: Mike Alger, Chief Financial Officer.

 

(2) Delete if this security is not being issued in exchange for an
Initial Security.

 9
 

 

 

ASSIGNMENT FORM

To assign this Security,
fill in the form below:

I or we assign and
transfer this Security to

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

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

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

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  

 

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

 10
 

 

 

OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to
have this Security purchased by the Company pursuant to Section 4.06, 4.09 or 4.15 of the Indenture,
check the box:   o

If you want to elect to have only part of this
Security purchased by the Company pursuant to Section 4.06, 4.09 or 4.15 of the
Indenture, state the amount in principal amount:  $[·]

 

	
  Dated:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the

  other side of this Security.)

  

 

	
  Signature Guarantee:

  	
   

  
	
   

  	
  (Signature must
  be guaranteed)

  

 

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

 11

 

EXHIBIT B

Form of

Transferee Letter of Representation

[ ]

In care of

[          ]

[          ]

[          ]

Ladies and Gentlemen:

This certificate is
delivered to request a transfer of $[     ] principal
amount of the 11-1/2% Second-Priority Senior Secured Notes due 2014(the “Securities”)
of Indalex Holding Corp. (the “Company”).

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

Name:

Address:

Taxpayer ID Number:

The undersigned
represents and warrants to you that:

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

2.  We understand that the Securities have not
been registered under the Securities Act and, unless so registered, may not be
sold except as permitted in the following sentence.  We agree on our own behalf and on behalf of
any investor account for which we are purchasing Securities to offer, sell or
otherwise transfer such Securities prior to the date that is two years after
the later of the date of original issue and the last date on which the Company
was or any affiliate of the Company was the owner of such

 

 

Securities (or any predecessor thereto) (the “Resale
Restriction Termination Date”) only (i) to the Company, (ii) in the United
States to a person whom the seller reasonably believes is a qualified
institutional buyer in a transaction meeting the requirements of Rule 144A,
(iii) to an institutional “accredited investor” within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is an institutional
accredited investor purchasing for its own account or for the account of an
institutional accredited investor, in each case in a minimum principal amount
of the Securities of $250,000,  (iv)
outside the United States in a transaction complying with the provisions of
Rule 904 under the Securities Act, (v) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 (if available) or
(vi) pursuant to an effective registration statement under the Securities Act,
in each of cases (i) through (vi), subject to any requirement of law that the
disposition of our property or the property of such investor account or
accounts be at all times within our or their control and in compliance with any
applicable state securities laws.  The
foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date.  If any
resale or other transfer of the Securities is proposed to be made pursuant to
clause (iii) above prior to the Resale Restriction Termination Date, the
transferor shall deliver a letter from the transferee substantially in the form
of this letter to the Company and the Trustee, which shall provide, among other
things, that the transferee is an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act
and that it is acquiring such Securities for investment purposes and not for
distribution in violation of the Securities Act.  Each purchaser acknowledges that the Company
and the Trustee reserve the right prior to the offer, sale or other transfer
prior to the Resale Restriction Termination Date of the Securities pursuant to
clause (iii), (iv) or (v) above to require the delivery of an opinion
of counsel, certifications or other information satisfactory to the Company and
the Trustee.

	
  

  	
  TRANSFEREE:

  	
   

  	
  ,

  
	
   

  	
   

  
	
   

  	
  by:

  	
   

  	
   

  
						

 

 2

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