Document:

Exhibit 10.1

 

CONTINGENT
VALUE RIGHT AGREEMENT

 

This
Contingent Value Right Agreement, dated as of November 19, 2021 (this “Agreement”),
is entered into by and between Pacira BioSciences, Inc., a Delaware corporation (“Parent”), and American
Stock Transfer & Trust Company, LLC, a New York limited liability company, as Rights Agent (the “Rights Agent”).

 

RECITALS

 

WHEREAS,
Parent, Oyster Acquisition Company Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Purchaser”),
and Flexion Therapeutics, Inc., a Delaware corporation (the “Company”), have entered into an Agreement and Plan of
Merger, dated as of October 11, 2021 (as it may be amended or supplemented from time to time pursuant to the terms thereof, the “Merger
Agreement”), pursuant to which Purchaser (a) has agreed to commence a cash tender offer (as it may be extended and amended
from time to time as permitted under the Merger Agreement, the “Offer”) to acquire all of the outstanding shares of
Company Common Stock (“Shares”) and (b) following the consummation of the Offer, will merge with and into the Company
(the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Parent, in accordance with Section
251(h) of the DGCL and on the terms and subject to the conditions set forth in the Merger Agreement;

 

WHEREAS,
pursuant to the Merger Agreement, (a) in each of the Offer and the Merger, Parent has agreed to provide to the holders of Shares (other
than holders of Excluded Shares and Dissenting Shares) and (b) in the Merger, Parent has agreed to provide to holders of Company RSUs
and holders of In-the-Money Options, in each case, that are outstanding as of immediately prior to the Effective Time (collectively,
the “Covered Equity Awards”), in the case of each of clauses (a) and (b), the right to receive contingent cash payments
as hereinafter described;

 

WHEREAS,
pursuant to Section 3.8(b) of the Merger Agreement, holders of Out-of-the-Money Options shall be entitled to receive contingent cash payments
from Parent or the Surviving Corporation, subject to the terms of the Merger Agreement, upon delivery of a Milestone Notice (as hereinafter
defined) to the Rights Agent; and

 

WHEREAS,
pursuant to the terms of that certain Indenture, dated as of May 2, 2017 (the “Original Indenture”), by and between
the Company and Wells Fargo Bank, National Association, as trustee (the “Trustee”), as amended by that certain First
Supplemental Indenture, dated as of November 19, 2021 (the “Supplemental Indenture” and the Original Indenture as amended
by the Supplemental Indenture, the “Indenture”), between the Company and the Trustee, at and after the effective time
of the Merger, the right to convert each $1,000 principal amount of Notes (as defined in the Indenture) shall be changed into a right
to convert such principal amount of Notes into the number of “units of Reference Property” (as defined in the Supplemental
Indenture) that a holder of a number of Shares equal to the Conversion Rate (as defined in the Indenture) immediately prior to the Merger
would have owned or been entitled to receive upon the Merger with a unit of Reference Property equal to an amount in cash equal to $8.50
per share, plus one CVR (as defined below).

 

    1.

     

    

 

NOW,
THEREFORE, in consideration of the foregoing and the consummation of the transactions referred to above, Parent and the Rights Agent agree,
for the equal and proportionate benefit of all Holders (as hereinafter defined), as follows:

 

1.                 
DEFINITIONS

 

1.1.           
Definitions. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Merger
Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Acting
Holders” means, at the time of determination, Holders of at least 40% of the outstanding CVRs as set forth on the CVR Register.

 

“Agreement”
is defined in the Preamble to this Agreement.

 

“Assignee”
has the meaning set forth in Section 7.3.

 

“BLA”
shall mean a Biologics License Application as described in Title 21 of the U.S. Code of Federal Regulations, Part 601, et seq., that is
submitted to the FDA in order to gain the FDA’s approval to commercialize a biologic product in the United States for the indications
set forth in such BLA.

 

“Calendar Quarter”
means each period of three consecutive months commencing on January 1, April 1, July 1 and October 1 of each calendar year.

 

“Calendar Year”
means the period of four consecutive Calendar Quarters beginning on January 1 and ending on December 31 of each calendar year.

 

“Change
of Control” means (i) a sale or other disposition of all or substantially all of the assets of either Parent or the Company
on a consolidated basis (other than to any direct or indirect wholly owned subsidiary of Parent), (ii) a merger or consolidation
involving either Parent or the Company in which Parent or the Company, respectively, is not the surviving entity, and (iii) any other
transaction involving either Parent or the Company in which Parent or the Company, respectively, is the surviving entity but in which
the stockholders of Parent or the Company, respectively, immediately prior to such transaction own less than fifty percent (50%) of the
surviving entity’s voting power immediately after the transaction, other than any bona fide equity financing transaction
solely related to the continued financing of the operations of Parent and its subsidiaries.

 

“Commercially
Reasonable Efforts” means, with respect to a task related to a product, the efforts required to carry out such task in a diligent
and sustained manner without undue interruption, pause or delay, which level is at least commensurate with the level of efforts that a
pharmaceutical company of comparable size and resources as those of Parent and its controlled Affiliates would devote to a product of
similar potential (including commercial potential), taking into account its proprietary position and profitability (including pricing
and reimbursement status, but excluding the obligation to pay the Milestone Payments under this Agreement), anticipated or actual market
conditions and economic return potential, the regulatory environment, and other relevant technical, commercial, legal, scientific and/or
medical factors.

 

    2.

     

    

 

“Company”
has the meaning set forth in the Recitals of this Agreement.

 

“Covered
Equity Awards” has the meaning set forth in the Recitals.

 

“Covered
Milestone Payments” has the meaning set forth in Section 2.4(f).

 

“CVRs”
means the rights of Holders to receive contingent cash payments pursuant to the Merger Agreement, the Indenture and this Agreement where
one (1) CVR is issuable for each Share, each Share subject to a Covered Equity Award and each unit of Reference Property.

 

“CVR
Register” has the meaning set forth in Section 2.3(b).

 

“DTC”
means The Depository Trust Company or any successor entity thereto.

 

“Event
of Default” has the meaning set forth in Section 6.1.

 

“FDA”
shall mean the U.S. Food and Drug Administration, or any successor agency thereto.

 

“Funds”
has the meaning set forth in Section 2.4(h).

 

“FX201”
means a product that includes the viral vector currently referred to by the Company as “FX201” and described in (a) IND #19,214
titled “Humantakinogene hadenovec, gene therapy for intra-articular administration for the treatment of osteoarthritis of the
knee” submitted to the FDA on September 11, 2019 or any modification thereof, and (b) US Patent 10,301,647 and Provisional Patent
Application 63236580.

 

“FX301”
means the product currently referred to by the Company as “FX301” and described in (a) IND #146,177 titled “Post-surgical
Regional Analgesia by Peripheral Nerve Block Technique” submitted to the FDA on January 26, 2021 or any modification thereof,
and (b) PCT Application Number PCT/US2020/049826.

 

“Holder”
means a Person in whose name a CVR is registered in the CVR Register at the applicable time.

 

“Indenture”
has the meaning set forth in the Recitals.

 

“Independent
Accountant” has the meaning set forth in Section 4.5(a).

 

“Merger”
has the meaning set forth in the Recitals of this Agreement.

 

“Merger
Agreement” has the meaning set forth in the Recitals of this Agreement.

 

“Milestone”
means each of Milestone 1, Milestone 2, Milestone 3, Milestone 4 and Milestone 5.

 

“Milestone
1” means, the first time that the Net Sales of the Company in any Calendar Year ending on or prior to the Milestone Deadline
Date is equal to or exceeds $250,000,000.

 

    3.

     

    

 

“Milestone
1 Amount” means, with respect to the achievement of Milestone 1, an amount per CVR equal to $1.00.

 

“Milestone
2” means, the first time that the Net Sales of the Company in any Calendar Year ending on or prior to the Milestone Deadline
Date is equal to or exceeds $375,000,000.

 

“Milestone
2 Amount” means, with respect to the achievement of Milestone 2, an amount per CVR equal to $2.00.

 

“Milestone
3” means, the first time that the Net Sales of the Company in any Calendar Year ending on or prior to the Milestone Deadline
Date is equal to or exceeds $500,000,000.

 

“Milestone
3 Amount” means, with respect to the achievement of Milestone 3, an amount per CVR equal to $3.00.

 

“Milestone
4” means FDA approval of a BLA for FX201.

 

“Milestone
4 Amount” means, with respect to the achievement of Milestone 4, an amount per CVR equal to $1.00.

 

“Milestone
5” means FDA approval of a NDA for FX301.

 

“Milestone
5 Amount” means, with respect to the achievement of Milestone 5, an amount per CVR equal to $1.00.

 

“Milestone
Deadline Date” means December 31, 2030.

 

“Milestone
Non-Achievement Certificate” has the meaning set forth in Section 2.4(g).

 

“Milestone
Notice” has the meaning set forth in Section 2.4(a).

 

“Milestone
Payment” means each of Milestone 1 Amount, Milestone 2 Amount, Milestone 3 Amount, Milestone 4 Amount and Milestone 5 Amount.

 

“Milestone
Payment Date” has the meaning set forth in Section 2.4(a).

 

“NDA”
shall mean a “new drug application” as such term is used under the United States Federal Food, Drug and Cosmetic Act, 21 U.S.C.
301, et. seq., as it may be amended from time to time, including all subsequent submissions, supplements and amendments thereto.

 

“Net
Sales” means the gross amount invoiced by Parent, any of its Affiliates (including the Surviving Corporation) or any of its
Sublicensees (each, a “Selling Party”) to a third party for sales or distribution of the Product, less the following
deductions actually incurred, allowed, paid and accrued, in each case, as calculated in accordance with GAAP consistently applied:

 

    4.

     

    

 

(i)                
customary trade, cash and quantity discounts given to customers;

 

(ii)             
 rebates, credits and allowances given by reason of rejections returns, damaged or defective product or recalls, or any other items
returned or returnable in accordance with policy;

 

(iii)           
government-mandated rebates, credits and adjustments paid or deducted;

 

(iv)            
customary price adjustments, allowances, credits, chargeback payments, discounts, rebates, free of charge concessions, fees and
reimbursements granted or made to managed care organizations, wholesaler fees, group purchasing organizations or other buying groups,
pharmacy benefit management companies, health maintenance organizations and any other providers of health insurance coverage, health care
organizations or other health care institutions (including hospitals), health care administrators, patient assistance or other similar
programs, or to federal state/provincial, local and other governments, including their agencies;

 

(v)              
reasonable and customary freight, shipping, insurance and other transportation expenses to the extent included in the price and
separately itemized on the invoice;

 

(vi)            
amounts written off as uncollectable debt; provided that the amount of any uncollectable debt deducted pursuant to this exception
and actually collected in a subsequent Calendar Quarter shall be included in Net Sales for such subsequent Calendar Quarter; and

 

(vii)         
sales, value-added, excise taxes, tariffs and duties, and other taxes and government charges directly related to the sale, delivery
or use of the Product (but not including taxes assessed against the net income derived from such sale).

 

No
particular amount identified above shall be deducted more than once in calculating Net Sales (i.e., no “double counting” of
deductions). Furthermore, Net Sales shall not include use of, disposition of, or sale at or below the direct manufacturing cost of, the
Product by Parent, its Affiliates (including the Surviving Corporation) and/or its Sublicensees of the Product for non-clinical or clinical
studies, samples, grants, patient-assistance programs or charitable donations.

 

Resales
or sales of the Product made in good faith between or among any Selling Party shall not be included in the calculation of Net Sales but
the subsequent resale or sale to a non-Affiliate third party (other than a Selling Party) shall be included in the computation of Net
Sales.

 

In
the event of any sale of Product for any consideration other than exclusively monetary consideration on bona fide arm’s-length terms,
then for purposes of calculating Net Sales under this Agreement, such Product shall be deemed to have been sold exclusively for cash at
the weighted (by sales volume) average sale price of such Product in bona fide arm’s-length transactions (when sold alone, and not
with other products) in the applicable region in which such sale or other disposition occurred during the applicable accounting period
in accordance with GAAP consistently applied. In the event of any sale or disposition of Product combined with other products, the Net
Sales apportioned to the Product shall be calculated in accordance with GAAP consistently applied.

 

All
Net Sales shall be computed in Dollars, and where any Net Sales are calculated in a currency other than Dollars, they shall be translated
into Dollars in accordance with GAAP.

 

    5.

     

    

 

“Noteholder”
means a “Holder” as defined in the Indenture.

 

“Offer”
has the meaning set forth in the Recitals of this Agreement.

 

“Officer’s
Certificate” means a certificate signed by the chief executive officer, president, chief financial officer, any vice president,
the controller, the treasurer or the secretary, in each case of Parent, in his or her capacity as such an officer, and delivered to the
Rights Agent.

 

“Permitted
Transfer” means a transfer of CVRs (a) upon death of a Holder by will or intestacy; (b) pursuant to a court order; (c) by operation
of law (including by consolidation or merger) or without consideration in connection with the dissolution, liquidation or termination
of any corporation, limited liability company, partnership or other entity; (d) in the case of CVRs held in book-entry or other similar
nominee form, from a nominee to a beneficial owner and, if applicable, through an intermediary, as allowable by DTC; (e) if the Holder
is a partnership or limited liability company, a distribution by the transferring partnership or limited liability company to its partners
or members, as applicable; (f) by instrument to an inter vivos or testamentary trust in which the CVRs are to be passed to beneficiaries
upon the death of the trustee; or (g) as provided in Section 2.6; provided that the term “Permitted Transfer”
in respect of a CVR that was received with respect to Covered Equity Awards pursuant to the Merger Agreement shall be limited to the event
described in (a), unless Parent permits otherwise.

 

“Product”
means ZILRETTA® (triamcinolone acetonide extended-release injectable suspension).

 

“Progress
Report” has the meaning set forth in Section 4.7.

 

“Progress
Report Date” has the meaning set forth in Section 4.7.

 

“Purchaser”
has the meaning set forth in the Recitals of this Agreement.

 

“Rights
Agent” means the Rights Agent named in the first paragraph of this Agreement, until a successor Rights Agent becomes such pursuant
to the applicable provisions of this Agreement, and thereafter “Rights Agent” shall mean such successor Rights Agent.

 

“Shares”
is defined in the Preamble to this Agreement.

 

“Sublicensee”
shall mean an authorized or permitted licensee or sublicensee of rights to the Product.

 

    6.

     

    

 

1.2.            Rules
of Construction. For purposes of this Agreement, the parties hereto agree that: (a) whenever the context requires, the
singular number shall include the plural, and vice versa; (b) the word “extent” in the phrase “to the
extent” means the degree to which a subject or other thing extends, and does not simply mean “if”; (c) the words
 “include” and “including,” and variations thereof, shall not be deemed to be terms of limitation, but rather
shall be deemed to be followed by the words “without limitation;” (d) the meaning assigned to each capitalized term
defined and used in this Agreement is equally applicable to both the singular and the plural forms of such term, and words denoting
any gender include all genders; (e) where a word or phrase is defined in this Agreement, each of its other grammatical forms has a
corresponding meaning unless the context otherwise requires; (f) a reference to any specific Law or to any provision of any Law
includes any amendment to, and any modification, re-enactment or successor thereof, any legislative provision substituted therefor
and all rules, regulations and statutory instruments issued or promulgated thereunder or pursuant thereto, except that, for purposes
of any representations and warranties in this Agreement that are made as a specific date, references to any specific Law will be
deemed to refer to such legislation or provision (and all rules, regulations and statutory instruments issued or promulgated
thereunder or pursuant thereto) as of such date; (g) references to any agreement or Contract are to that agreement or Contract as
amended, modified or supplemented as of the date of this Agreement or, thereafter from time to time; (h) the word “or”
shall not be exclusive (i.e., “or” shall be deemed to mean “and/or”); (i) all references to
 “dollars” or “$” are to U.S. Dollars, unless expressly stated otherwise; and (j) the measure of a period of
one (1) month or year for purposes of this Agreement will be the date of the following month or year corresponding to the starting
date; provided, however, if no corresponding date exists, then the end date of such period being measured will be the next actual
date of the following month or year (for example, one month following August 18 is September 18 and one month following August 31 is
October 1). The headings contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of this
Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.

 

2.                 
CONTINGENT VALUE RIGHTS

 

2.1.           
CVRs. The CVRs represent the rights of Holders to receive contingent cash payments pursuant to the Merger Agreement and
this Agreement. The initial Holders shall be determined pursuant to the terms of the Merger Agreement and this Agreement, and a list of
the initial Holders shall be furnished to the Rights Agent by or on behalf of Parent in accordance with Section 4.1 hereof.

 

2.2.           
Non-transferable. The CVRs may not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred
or disposed of, in whole or in part, other than through a Permitted Transfer. Any such sale, assignment, transfer, pledge, encumbrance
or disposal that is not a Permitted Transfer shall be null and void.

 

2.3.           
No Certificate; Registration; Registration of Transfer; Change of Address.

 

(a)              
The CVRs shall not be evidenced by a certificate or other instrument.

 

(b)               The
Rights Agent shall keep a register (the “CVR Register”) for the purpose of registering CVRs and transfers of CVRs
as herein provided. The CVR Register will initially show one position for Cede & Co. representing all of the CVRs that are
issued to the holders of Shares held by DTC on behalf of the street holders of the Shares. The Rights Agent will have no
responsibility whatsoever directly to the street name holders or DTC participants with respect to transfers of CVRs. With respect to
any payments to be made under Section 2.4 below, the Rights Agent will accomplish the payment to any former street name
holders of the Shares by sending a lump sum payment to DTC. The Rights Agent will have no responsibilities whatsoever with regard to
the distribution of payments by DTC to such street name holders. In the case of CVRs to be received by the holders of Covered Equity
Awards pursuant to the Merger Agreement, such CVRs shall initially be registered in the name and address of the holder of such
Covered Equity Awards as set forth in the records of the Company at the Effective Time and in a denomination equal to the number of
shares of Company Common Stock subject to such Covered Equity Awards cancelled in connection with the Merger. In the case of CVRs to
be received by a Noteholder upon conversion of a Note pursuant to the Indenture, (i) such Noteholder shall become a Holder under
this Agreement with respect to such CVRs as of the Conversion Date (as defined in the Indenture) for such Note, (ii) such CVRs shall
initially be registered in the name and address of the beneficial Noteholder as of the Conversion Date as directed by Parent and
(iii) such CVRs shall be in a denomination equal to the number of units of Reference Property for such Note pursuant to the terms of
the Indenture.

 

    7.

     

    

 

(c)              
Subject to the restrictions on transferability set forth in Section 2.2, every request made to transfer a CVR must be in
writing and accompanied by a written instrument of transfer and other documentation reasonably requested by the Rights Agent in form reasonably
satisfactory to the Rights Agent pursuant to its guidelines, duly executed by the Holder thereof, the Holder’s attorney duly authorized
in writing, the Holder’s personal representative or the Holder’s survivor, as applicable, and setting forth in reasonable
detail the circumstances relating to the transfer. Upon receipt of such written notice, the Rights Agent shall, subject to its reasonable
determination that the transfer instrument is in proper form, notify Parent that it has received such written notice. Upon receipt of
such notice from the Rights Agent, Parent shall in good faith reasonably determine whether the transfer otherwise complies with the other
terms and conditions of this Agreement (including the provisions of Section 2.2), and if the Parent so reasonably determines that
it does so comply, Parent shall instruct the Rights Agent in writing to register the transfer of the CVRs in the CVR Register and notify
the Parent of the same. No service charge shall be made for any registration of transfer of a CVR, but Parent and the Rights Agent may
require payment of a sum sufficient to cover any stamp or other Tax or charge that is imposed in connection with any such registration
of transfer. The Rights Agent shall have no duty or obligation to take any action under any section of this Agreement that requires the
payment of applicable Taxes or charges unless and until the Rights Agent is satisfied that all such Taxes or charges have been paid. All
duly transferred CVRs registered in the CVR Register shall be the valid obligations of Parent and shall entitle the transferee to the
same benefits and rights under this Agreement as those held immediately prior to the transfer by the transferor. No transfer of a CVR
shall be valid unless and until registered in the CVR Register.

 

(d)              
A Holder may make a written request to the Rights Agent to change such Holder’s address of record in the CVR Register. The
written request must be duly executed by the Holder. Upon receipt of such written request, the Rights Agent is hereby authorized to, and
shall promptly, record the change of address in the CVR Register.

 

2.4.           
Payment Procedures.

 

(a)               If
any Milestone is achieved, then, in each case, on a date (a “Milestone Payment Date”) that is within sixty
(60) days following the last day of such Calendar Quarter in which such Milestone is achieved, Parent will deliver to the
Rights Agent (A) a notice (a “Milestone Notice”) indicating the achievement of such Milestone and that the
Holders are entitled to receive the applicable Milestone Payment, and (B) cash, by wire transfer of immediately available funds
to an account specified by the Rights Agent, equal to the aggregate amount necessary to pay the applicable Milestone Payment to all
Holders pursuant to Section 4.2, along with any letter of instruction reasonably required by the Rights Agent.

 

    8.

     

    

 

(b)              
The Rights Agent shall promptly, and in any event within ten (10) Business Days of receipt of a Milestone Notice and cash, by wire
transfer of immediately available funds, equal to the aggregate amount necessary to pay the Milestone Payment to all Holders pursuant
to Section 4.2 as well as any letter of instruction reasonably required by the Rights Agent, send each Holder at its registered
address a copy of such Milestone Notice. If a Milestone Payment is payable to the Holders, then at the time the Rights Agent sends a copy
of the Milestone Notice to the Holders, the Rights Agent shall also pay the Milestone Payment to each of the Holders in accordance with
the corresponding letter of instruction (i) by electronic payment or check mailed to the address of such Holder reflected in the CVR Register
as of 5:00 p.m. New York City time on the date of the Milestone Notice or (ii) with respect to any such Holder that is due an amount in
excess of $100,000 in the aggregate who has provided the Rights Agent wiring instructions in writing as of the close of business on the
date of the Milestone Notice, by wire transfer of immediately available funds to the account specified on such instructions.

 

(c)              
Parent shall be entitled to deduct or withhold, or cause the Rights Agent or the Surviving Corporation to deduct or withhold, from
any payments made pursuant to this Agreement such amounts as are required to be deducted or withheld therefrom under the Code, the U.S.
Treasury Regulations thereunder, or any other applicable Tax Law, as may be reasonably determined by Parent and communicated to the Rights
Agent in writing. Prior to making any such Tax withholdings or causing any such Tax withholdings to be made with respect to any Holder
(other than payroll withholding and reporting on the Covered Milestone Payments (as hereinafter defined)), Parent shall instruct the Rights
Agent to use commercially reasonable efforts to solicit from such Holder an IRS Form W-9 or other applicable Tax form within a reasonable
amount of time in order to provide the opportunity for the Holder to provide such Tax forms to avoid or reduce such withholding amounts.
To the extent any such amounts are so deducted or withheld, such amounts shall be treated for all purposes under this Agreement and the
Merger Agreement as having been paid to the Holder to whom such amounts would otherwise have been paid, and, to the extent required by
applicable Law, Parent shall deliver (or shall cause the Rights Agent to deliver) to the Holder to whom such amounts would otherwise have
been paid an Internal Revenue Service Form 1099, an Internal Revenue Service Form W-2 or other reasonably acceptable evidence of such
withholding. Prior to the Effective Time, Parent and the Rights Agent will cooperate to establish procedures for complying with applicable
tax reporting, withholding and remittance obligations arising from any payments of the Covered Milestone Payments.

 

(d)              
If any funds delivered to the Rights Agent for payment to Holders as Milestone Payments remain undistributed to the Holders on
the one (1) year anniversary of the applicable Milestone Payment Date, Parent shall be entitled to require the Rights Agent to deliver
to Parent or its designee any funds which had been made available to the Rights Agent in connection with such Milestone Payment and not
disbursed to the Holders (including, all interest and other income received by the Rights Agent in respect of all funds made available
to it), and, thereafter, such Holders shall be entitled to look to Parent (subject to abandoned property, escheat and other similar Laws)
only as general creditors thereof with respect to the Milestone Payments that may be payable.

 

    9.

     

    

 

(e)              
 Neither Parent, the Rights Agent nor any of their Affiliates shall be liable to any Holder for any Milestone Payments delivered
to a public official pursuant to any abandoned property, escheat or other similar Laws. Any amounts remaining unclaimed by such Holders
at such time at which such amounts would otherwise escheat to or become property of any Governmental Body shall become, to the extent
permitted by applicable Laws, the property of Parent or its designee, free and clear of all claims or interest of any Person previously
entitled thereto. In addition to and not in limitation of any other indemnity obligation herein, Parent agrees to indemnify and hold harmless
the Rights Agent with respect to any liability, penalty, cost or expense the Rights Agent may incur or be subject to in connection with
transferring such property to Parent. The indemnification provided by this Section 2.4(e) shall survive the resignation, replacement
or removal of the Rights Agent and the termination of this Agreement.

 

(f)               
Except to the extent any portion of any Milestone Payment is required to be treated as imputed interest pursuant to applicable
Law, the parties hereto intend to treat (i) the CVRs received with respect to the Shares pursuant to the Merger Agreement for all U.S.
federal and applicable state and local income tax purposes as additional consideration paid for the Shares pursuant to the Merger Agreement,
(ii) any Milestone Payments received in respect of such CVRs as amounts realized on the disposition of the applicable CVRs (or Shares),
and (iii) Milestone Payments paid in respect of each CVR that was received with respect to Covered Equity Awards pursuant to the Merger
Agreement (the “Covered Milestone Payments”), and not the receipt of such CVR, for all U.S. federal and applicable
state and local income tax purposes, as compensation for services in the year in which the Milestone Payment is made. Notwithstanding
the foregoing, to the extent required by applicable tax Law, Parent shall, and shall cause the Surviving Corporation to, report imputed
interest on the CVRs and Milestone Payments pursuant to Section 483 of the Code.

 

(g)              
If a Milestone is not achieved during a Calendar Year, then on or before the date that is sixty (60) days after the expiration
of each such Calendar Year period, Parent shall deliver to the Rights Agent a certificate certifying that such Milestone has not occurred
(each, a “Milestone Non-Achievement Certificate”). The Rights Agent shall promptly, and in any event within ten (10) Business
Days of receipt of a Milestone Non-Achievement Certificate, send each Holder at its registered address a copy of such Milestone Non-Achievement
Certificate, including detail regarding the ability of a Holder or Holders to dispute or contest such determination of non-achievement
of a Milestone pursuant to this Agreement.

 

(h)               All
funds received by the Rights Agent under this Agreement that are to be distributed or applied by the Rights Agent in the performance
of services hereunder (the “Funds”) shall be held by the Rights Agent as agent for Parent and deposited in one or
more bank accounts to be maintained by the Rights Agent in its name as agent for Parent. Until paid pursuant to the terms of this
Agreement, the Rights Agent will hold the Funds through such accounts in: deposit accounts of commercial banks with Tier 1 capital
exceeding $1 billion or with an average rating above investment grade by S&P (LT Local Issuer Credit Rating), Moody’s
(Long Term Rating) and Fitch Ratings, Inc. (LT Issuer Default Rating) (each as reported by Bloomberg Finance L.P.). The Rights Agent
shall have no responsibility or liability for any diminution of the Funds that may result from any deposit made by the Rights Agent
in accordance with this paragraph, including any losses resulting from a default by any bank, financial institution or other third
party. The Rights Agent may from time to time receive interest, dividends or other earnings in connection with such deposits. The
Rights Agent shall not be obligated to pay such interest, dividends or earnings to the Parent, any Holder or any other Person,
unless there is a diminution of the Funds due to a deposit or investment made by the Rights Agent, in which case, the Rights Agent
agrees that such interest, dividends or earnings shall accrue to the benefit of Parent to the extent of such diminution of the
Funds.

 

    10.

     

    

 

2.5.           
No Voting, Dividends or Interest; No Equity or Ownership Interest.

 

(a)              
The CVRs shall not have any voting or dividend rights, and interest shall not accrue on any amounts payable on the CVRs to any
Holder.

 

(b)              
The CVRs shall not represent any equity or ownership interest in Parent or in any constituent company to the Merger or any of their
respective Subsidiaries or Affiliates.

 

2.6.           
Ability to Abandon CVR. A Holder may at any time, at such Holder’s option, abandon all of such Holder’s remaining
rights in a CVR by transferring such CVR to Parent or any of its Affiliates without consideration therefor. Nothing in this Agreement
shall prohibit Parent or any of its Affiliates from offering to acquire or acquiring any CVRs for consideration from the Holders, in private
transactions or otherwise, in its sole discretion. Any CVRs acquired by Parent or any of its Affiliates shall be automatically deemed
extinguished and no longer outstanding for purposes of the definition of Acting Holders and Article 5 and Article 6.

 

3.                 
THE RIGHTS AGENT

 

3.1.           
Certain Duties and Responsibilities. Parent hereby appoints the Rights Agent to act as rights agent for Parent in accordance
with the express terms and conditions set forth in this Agreement (and no implied terms and conditions), and the Rights Agent hereby accepts
such appointment. The Rights Agent shall not have any liability for any actions taken, suffered or omitted to be taken in connection with
this Agreement, except to the extent of its gross negligence, bad faith or willful or intentional misconduct (each as determined by a
final judgment of a court of competent jurisdiction).

 

3.2.           
Certain Rights of the Rights Agent. The Rights Agent undertakes to perform such duties and only such duties as are specifically
set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Rights Agent. In addition:

 

(a)              
the Rights Agent may rely and shall be protected and held harmless by Parent in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order or other paper or document believed by
it in good faith to be genuine and to have been signed or presented by the proper party or parties;

 

(b)               whenever
the Rights Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Rights Agent may rely upon an Officer’s Certificate, which certificate shall be full authorization and
protection to the Rights Agent, and the Rights Agent shall, in the absence of gross negligence, bad faith or willful or intentional
misconduct (each as determined by a final judgment of a court of competent jurisdiction) on its part, incur no liability and be held
harmless by Parent for or in respect of any action taken, suffered or omitted to be taken by it under the provisions of this
Agreement in reliance upon such certificate;

 

    11.

     

    

 

(c)              
the Rights Agent may engage and consult with counsel of its selection and the written advice of such counsel or any opinion of
counsel shall be full and complete authorization and protection and shall be held harmless by Parent in respect of any action taken, suffered
or omitted by it hereunder in good faith and in reliance thereon;

 

(d)              
the permissive rights of the Rights Agent to do things enumerated in this Agreement shall not be construed as a duty;

 

(e)              
the Rights Agent shall not be required to give any note or surety in respect of the execution of such powers or otherwise in respect
of the premises;

 

(f)               
the Rights Agent shall not be liable for or by reason of, and shall be held harmless by Parent with respect to any of the statements
of fact or recitals contained in this Agreement or be required to verify the same, but all such statements and recitals are and shall
be deemed to have been made by Parent only;

 

(g)              
the Rights Agent shall have no liability and shall be held harmless by Parent in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent and the enforceability of this Agreement
against the Rights Agent assuming the due execution and delivery hereof by Parent); nor shall it be responsible for any breach by Parent
of any covenant or condition contained in this Agreement;

 

(h)              
Parent agrees to indemnify the Rights Agent for, and hold the Rights Agent harmless against, any loss, liability, damage, judgement,
fine, penalty, claim, demands, suits or expense arising out of or in connection with Rights Agent’s duties under this Agreement,
including the reasonable out-of-pocket costs and expenses of counsel in defending Rights Agent against any loss, liability, damage, judgement,
fine, penalty, claim, demands, suits or expense, unless such loss has been determined by a final non-appealable judgment of court of competent
jurisdiction to be a result of Rights Agent’s gross negligence, bad faith or willful or intentional misconduct;

 

(i)                
Anything to the contrary notwithstanding, in the absence of fraud, bad faith or willful or intentional misconduct on the part of
the Rights Agent, (i) the Rights Agent shall not be liable for any special, punitive, indirect, consequential or incidental loss or damage
of any kind whatsoever (including but not limited to lost profits) arising out of any act or failure to act hereunder, even if the Rights
Agent has been advised of the likelihood of such loss or damage or has foreseen the possibility or likelihood of such damages and (ii)
the aggregate liability of the Rights Agent arising in connection with this Agreement, whether in contract, or in tort, or otherwise,
is limited to, and shall not exceed the amounts paid or payable hereunder by Parent to the Rights Agent as fees and charges;

 

(j)                 Parent
agrees (i) to pay the fees and expenses of the Rights Agent in connection with this Agreement agreed upon in writing by the Rights
Agent and Parent prior to the date hereof, and (ii) to reimburse the Rights Agent for all Taxes and governmental charges, reasonable
out-of-pocket expenses and other charges of any kind and nature incurred by the Rights Agent in the execution of this Agreement
(other than Taxes imposed on or measured by the Rights Agent’s net income and franchise or similar Taxes imposed on it (in
lieu of net income Taxes)). The Rights Agent shall also be entitled to reimbursement from Parent for all reasonable and necessary
out-of-pocket expenses paid or incurred by it in connection with the administration by the Rights Agent of its duties hereunder;

 

    12.

     

    

 

(k)              
No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be reasonable grounds for
believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it; and

 

(l)                
The provisions of this Section 3.2 shall survive the termination of this Agreement, the resignation, replacement or removal
of the Rights Agent, and the payment, termination and the expiration of the CVRs.

 

3.3.           
Resignation and Removal; Appointment of Successor.

 

(a)              
The Rights Agent may resign at any time by giving written notice thereof to Parent specifying a date when such resignation shall
take effect, which notice shall be sent at least sixty (60) days prior to the date so specified but in no event shall such resignation
become effective until a successor Rights Agent has been appointed and accepted such appointment in accordance with Section 3.4.
Parent has the right to remove the Rights Agent at any time by specifying a date when such removal shall take effect but no such removal
shall become effective until a successor Rights Agent has been appointed and accepted such appointment in accordance with Section 3.4.
Notice of such removal shall be given by Parent to the Rights Agent, which notice shall be sent at least sixty (60) days prior to the
date so specified.

 

(b)              
If the Rights Agent provides notice of its intent to resign, is removed or becomes incapable of acting, Parent shall, as soon as
is reasonably practicable, appoint a qualified successor Rights Agent who shall be a stock transfer agent of national reputation or the
corporate trust department of a commercial bank. Notwithstanding the foregoing, if Parent shall fail to make such appointment within a
period of sixty (60) days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity
by the resigning or incapacitated Rights Agent, then the incumbent Rights Agent may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent. The successor Rights Agent so appointed shall, forthwith upon its acceptance of such appointment in
accordance with Section 3.4, become the successor Rights Agent.

 

(c)               Parent
shall give notice of each resignation and each removal of a Rights Agent and each appointment of a successor Rights Agent through
the facilities of DTC in accordance with DTC’s procedures and/or by mailing written notice of such event by first-class mail
to the Holders as their names and addresses appear in the CVR Register. Each notice shall include the name and address of the
successor Rights Agent. If Parent fails to send such notice within ten (10) Business Days after acceptance of appointment by a
successor Rights Agent, the successor Rights Agent shall cause the notice to be transmitted at the expense of Parent. Failure to
give any notice provided for in this Section 3.3, however, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

 

(d)              
Notwithstanding anything else in this Section 3.3, unless consented to in writing by the Acting Holders, Parent shall not
appoint as a successor Rights Agent any Person that is not a stock transfer agent of national reputation or the corporate trust department
of an international commercial bank.

 

    13.

     

    

 

3.4.           
Acceptance of Appointment by Successor. Every successor Rights Agent appointed hereunder shall execute, acknowledge and
deliver to Parent and to the retiring Rights Agent an instrument accepting such appointment and a counterpart of this Agreement, and thereupon
such successor Rights Agent, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Rights Agent. On request of Parent or the successor Rights Agent, the retiring Rights Agent shall execute and deliver
an instrument transferring to the successor Rights Agent all the rights, powers, trusts and duties of the retiring Rights Agent.

 

4.                 
COVENANTS

 

4.1.           
List of Holders. Parent shall furnish or cause to be furnished to the Rights Agent, in a form reasonably satisfactory to
the Rights Agent, and received from the Paying Agent in the Offer, the Paying Agent in the Merger, and in the case of Holders who held
Covered Equity Awards and Holders who held Notes, the Company, the names and addresses of the Holders promptly upon the Offer Acceptance
Time or the Effective Time, as applicable. Until such list of Holders are furnished to the Rights Agent, the Rights Agent shall have no
duties, responsibilities or obligations with respect to such Holders.

 

4.2.           
Payment of Milestone Payments. If a Milestone has been achieved in accordance with this Agreement, Parent shall, promptly
(but in any event no later than five (5) Business Days) following the delivery of the Milestone Notice, deposit with the Rights Agent,
for payment to the Holders in accordance with Section 2.4, the aggregate amount necessary to pay the applicable Milestone Payment
to all Holders.

 

4.3.           
Books and Records. Parent shall, and shall cause its subsidiaries to, keep true, complete and accurate records in sufficient
detail to enable the Holders and their consultants or professional advisors to determine the amounts payable hereunder.

 

4.4.           
Further Assurances. Parent agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed,
acknowledged and delivered, all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent
for the carrying out or performing by the Rights Agent of the provisions of this Agreement.

 

4.5.           
Audit Rights.

 

(a)               Until
one (1) year after the Milestone Deadline Date, upon reasonable advance written notice from the Acting Holders, Parent shall permit
an independent certified public accounting firm of nationally recognized standing selected by such Acting Holders and reasonably
acceptable to Parent (the “Independent Accountant”) to have access at reasonable times during normal business
hours to the books and records of Parent and its controlled Affiliates as may be reasonably necessary to evaluate and verify
Parent’s calculation of Net Sales hereunder; provided that (x) such Acting Holders (and the Independent Accountant) enter into
customary confidentiality agreements reasonably satisfactory to Parent with respect to the confidential information of Parent or its
Affiliates to be furnished pursuant to this Section 4.5 and (y) such access does not unreasonably interfere with the conduct
of the business of Parent or any of its Affiliates. The fees charged by such accounting firm shall be borne by the Acting Holders; provided
that if the amount by which the Net Sales determined by the Independent Accountant are greater than the Net Sales determined by
Parent results in Parent’s obligation to make a Milestone Payment, the fees charged by such accounting firm shall be borne by
Parent. The Independent Accountant shall provide Parent with a copy of all disclosures made to the Acting Holders. The decision of
such Independent Accountant shall be final, conclusive and binding on Parent and the Holders, shall be nonappealable and shall not
be subject to further review, absent manifest error. Parent shall not enter into any transaction constituting a Change of Control
unless such agreement contains provisions that would permit such Independent Accountant with such access to the records of the other
party in such Change of Control if and to the extent as are reasonably necessary to ensure compliance with this Section 4.5.
The audit rights set forth in this Section 4.5(a) may not be exercised by the Acting Holders more than once in any given
twelve (12) month period. Notwithstanding the foregoing, no audit pursuant to this Section 4.5(a) shall be permitted for any
Calendar Year ending on a date more than three years prior to the date of written notice from the Acting Holders of commencement of
an audit pursuant to this Section 4.5(a).

 

    14.

     

    

 

(b)              
If, in accordance with the procedures set forth in Section 4.5(a), the Independent Accountant concludes that any Milestone
Payment should have been paid but was not paid when due, Parent shall promptly, and in any event within thirty (30) days of the date the
Independent Accountant delivers to Parent the Independent Accountant’s written report and in no event later than December 31 of
the Calendar Year that includes such delivery date, pay each Holder such Milestone Payment (to the extent not paid on a subsequent date),
plus interest at the thirty (30) day U.S. dollar “prime rate” effective for the date such payment was due, as reported by
Bloomberg, from when such Milestone Payment should have been paid, as applicable, to the date of actual payment, pursuant to Section
2.4(a).

 

4.6.           
Commercially Reasonable Efforts. Commencing upon the Closing and continuing until the earlier of the Milestone Deadline
Date or the achievement of all Milestones, Parent shall, and shall cause its controlled Affiliates and direct any Sublicensees to, use
Commercially Reasonable Efforts to achieve the Milestones. Without limiting the foregoing, neither Parent nor any of its controlled Affiliates
shall act in bad faith for the purpose of avoiding achievement of the Milestones or the payment of any Milestone Payment.

 

4.7.            Progress
Report. Within sixty (60) days after the end of the fourth (4th) Calendar Quarter of each Calendar Year prior to the
Milestone Deadline Date or the achievement of all Milestones (each a “Progress Report Date”), Parent shall
provide to the Rights Agent a written report setting forth in reasonable detail the activities Parent and its Affiliates have
undertaken in the preceding twelve (12)-month period to market and commercialize the Product and develop each of FX201 and FX301
(the “Progress Report”). Parent’s obligation to deliver a Progress Report on any Progress Report Date
pursuant to this Section 4.7 shall be deemed satisfied to the extent one or more of Parent’s periodic and current
reports and other documents filed with the Securities and Exchange Commission then available on such Progress Report Date set forth
in reasonable detail the activities Parent and its Affiliates have undertaken in such preceding twelve (12)-month period to market
and commercialize the Product and develop each of FX201 and FX301.

 

    15.

     

    

 

5.                 
AMENDMENTS

 

5.1.           
Amendments without Consent of Holders.

 

(a)              
Without the consent of any Holders, Parent and the Rights Agent, at any time and from time to time, may enter into one or more
amendments hereto, for any of the following purposes:

 

(i)                
subject to Section 3.3(d), to evidence the succession of another Person as a successor Rights Agent and the assumption
by any such successor of the covenants and obligations of the Rights Agent herein;

 

(ii)              
to add to the covenants of Parent such further covenants, restrictions, conditions or provisions as Parent shall consider
to be for the protection of the Holders; provided that, in each case, such provisions do not adversely affect the interests of the Holders;

 

(iii)            
to cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other
provision herein or in the Merger Agreement, or to make any other provisions with respect to matters or questions arising under this Agreement;
provided that, in each case, such provisions do not adversely affect the interests of the Holders;

 

(iv)             
as may be necessary or appropriate to ensure that the CVRs are not subject to registration under the Securities Act, the
Exchange Act or any applicable state securities or “blue sky” laws;

 

(v)               
to evidence the assignment of this Agreement by Parent as provided in Section 7.3; or

 

(vi)             
any other amendments hereto for the purpose of adding, eliminating or changing any provisions of this Agreement, unless
such addition, elimination or change is adverse to the interests of the Holders.

 

(b)              
Without the consent of any Holders, Parent and the Rights Agent, at any time and from time to time, may enter into one or more
amendments hereto to reduce the number of CVRs, in the event any Holder agrees to renounce such Holder’s rights under this Agreement
in accordance with Section 7.4 or to transfer CVRs to Parent pursuant to Section 2.6.

 

(c)              
Promptly after the execution by Parent and the Rights Agent of any amendment pursuant to the provisions of this Section 5.1,
Parent shall mail (or cause the Rights Agent to mail) a notice thereof through the facilities of DTC in accordance with DTC’s procedures
and/or by first class mail to the Holders at their addresses as they appear on the CVR Register, setting forth such amendment.

 

    16.

     

    

 

5.2.           
 Amendments with Consent of Holders.

 

(a)              
Subject to Section 5.1 (which amendments pursuant to Section 5.1 may be made without the consent of any Holder or
the Rights Agent), with the consent of the Holders of not less than a majority of the outstanding CVRs as set forth in the CVR Register,
whether evidenced in writing or taken at a meeting of the Holders, Parent and the Rights Agent may enter into one or more amendments hereto
for the purpose of adding, eliminating or changing any provisions of this Agreement, even if such addition, elimination or change is materially
adverse to the interest of the Holders.

 

(b)              
Promptly after the execution by Parent and the Rights Agent of any amendment pursuant to the provisions of this Section 5.2,
Parent shall mail (or cause the Rights Agent to mail) a notice thereof through the facilities of DTC in accordance with DTC’s procedures
and/or by first class mail to the Holders at their addresses as they appear on the CVR Register, setting forth such amendment.

 

5.3.           
Execution of Amendments. Prior to executing any amendment permitted by this Section 5, the Rights Agent shall be
entitled to receive, and shall be fully protected in relying upon, an opinion of counsel selected by Parent and reasonably acceptable
to Rights Agent stating that the execution of such amendment is authorized or permitted by this Agreement. Each amendment to this Agreement
shall be evidenced by a writing signed by the Rights Agent and Parent. The Rights Agent may, but is not obligated to, enter into any such
amendment that affects the Rights Agent’s own obligations, rights, powers, immunities or duties under this Agreement or otherwise,
and the Rights Agent shall not be bound by amendments not executed by it.

 

5.4.           
Effect of Amendments. Upon the execution of any amendment under this Section 5, this Agreement shall be modified
in accordance therewith, such amendment shall form a part of this Agreement for all purposes and every Holder shall be bound thereby.

 

6.                 
REMEDIES OF THE HOLDERS

 

6.1.           
Event of Default. “Event of Default” with respect to the CVRs, means each one of the following events
which shall have occurred and be continuing (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary
or be effected by operation of Law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any Governmental
Body):

 

(a)              
default in the payment by Parent pursuant to the terms of this Agreement of all or any part of a Milestone Payment after a period
of ten (10) Business Days after such Milestone Payment shall become due and payable; or

 

(b)               material
default in the performance, or breach in any material respect, of any covenant or warranty of Parent hereunder (other than a default
in whose performance or whose breach is elsewhere in this Section 6.1 specifically dealt with), and continuance of such
default or breach for a period of ninety (90) days after a written notice specifying such default or breach and requiring it to be
remedied is given, which written notice states that it is a “Notice of Default” hereunder and is sent by registered or
certified mail to Parent and the Rights Agent by the Acting Holders.

 

    17.

     

    

 

If
an Event of Default described above occurs and is continuing (and has not been cured or waived), then, and in each and every such case,
the Acting Holders by notice in writing to Parent and the Rights Agent, may, in their discretion, commence a proceeding to protect the
rights of the Holders, including to obtain payment for any amounts then due and payable.

 

The
foregoing provisions of this Section 6.1, however, are subject to the condition that if, at any time after the Acting Holders shall
have commenced such proceeding, and before any award shall have been obtained, Parent shall pay or shall deposit with the Rights Agent
a sum sufficient to pay all amounts which shall have become due and such amount as shall be sufficient to cover reasonable compensation
to the Rights Agent, its agents, attorneys and counsel, and all Events of Default under this Agreement shall have been cured, waived or
otherwise remedied as provided herein, then and in every such case the Acting Holders, by written notice to Parent and to the Rights Agent,
may waive all defaults that are the subject of such proceeding, but no such waiver or rescission and annulment shall extend to or shall
affect any subsequent default.

 

6.2.           
Suits by Holders. Except for the rights of the Rights Agent set forth herein, the Acting Holders will have the sole right,
on behalf of all Holders, by virtue of or under any provision of this Agreement, to institute any action or proceeding with respect to
this Agreement, and no individual Holder or other group of Holders will be entitled to exercise such rights. Notwithstanding the foregoing,
in the event of an insolvency proceeding of the Parent, individual Holders shall be entitled to assert claims in such insolvency proceeding
and take related actions in pursuit of such claims with respect to any payment that may be claimed by or on behalf of the Parent or by
any creditor of the Parent. Notwithstanding any other provision in this Agreement, the right of any Holder of any CVR to receive payment
of the amounts that a Milestone Notice indicates are payable in respect of such CVR on or after the applicable due date, or to commence
arbitration proceedings for the enforcement of any such payment on or after such due date, shall not be impaired or affected without the
consent of such Holder.

 

7.                 
OTHER PROVISIONS OF GENERAL APPLICATION

 

7.1.           
Notices to the Rights Agent and Parent. Any notice or other communication required or permitted to be delivered to Parent
or the Rights Agent under this Agreement shall be in writing and shall be deemed properly delivered, given and received (a) upon receipt
when delivered by hand, (b) two (2) Business Days after being sent by registered mail or by courier or express delivery service, (c) if
sent by email transmission prior to 6:00 p.m. recipient’s local time, upon transmission when receipt is confirmed or (d) if sent
by email transmission after 6:00 p.m. recipient’s local time and receipt is confirmed, the Business Day following the date of transmission;
provided that in each case the notice or other communication is sent to the physical address or email address, as applicable, set forth
beneath the name of such party below (or to such other physical address or email address as such party shall have specified in a written
notice given to the other party):

 

    18.

     

    

 

If to the Rights Agent, to it
at:

 

American Stock Transfer &
Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Attention:      Legal Dept

E-mail:            LegalTeamAST@astfinancial.com

 

If to Parent, to it at:

Pacira BioSciences, Inc.

5401 West Kennedy Boulevard, Suite 890

Tampa, Florida 33609

Attention: Kristen Williams

Email: Kristen.Williams@pacira.com

With a copy to:

Perkins Coie LLP

1900 Sixteenth Street, Suite 1400

Denver, Colorado 80202

Attention: Jason Day; Jeffrey Beuche

Email: JDay@perkinscoie.com; JBeuche@perkinscoie.com

 

The
Rights Agent or Parent may specify a different address, facsimile number or email address by giving notice in accordance with this Section
7.1.

 

7.2.           
Notice to Holders. Where this Agreement provides for notice to Holders, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if in writing and transmitted through the facilities of DTC in accordance with DTC’s procedures
or mailed, first-class postage prepaid, to each Holder affected by such event, at the Holder’s address as it appears in the CVR
Register, not later than the latest date, and not earlier than the earliest date, if any, prescribed for the giving of such notice. In
any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders.

 

    19.

     

    

 

7.3.            Successors
and Assigns. Parent may assign, in its sole discretion and without the consent of any
other Person, any or all of its rights, interests and obligations hereunder to one or more direct or indirect wholly owned
subsidiaries of Parent for so long as they remain wholly owned subsidiaries of Parent and any such subsidiary may assign any or all
of its rights, interests and obligations hereunder to one or more other direct or indirect wholly owned subsidiaries of Parent for
so long as they remain wholly owned subsidiaries of Parent (each, an “Assignee”); provided that
each such Assignee agrees to assume and be bound by all of the terms and conditions of this Agreement; provided, further,
that Parent shall remain liable for the performance by each such Assignee of all covenants, agreements and obligations of Parent
hereunder. This Agreement will be binding upon, inure to the benefit of and be enforceable by Parent’s successors and each
Assignee. Each of Parent’s successors and each Assignee shall, by a supplemental contingent consideration payment agreement or
other acknowledgement executed and delivered to the Rights Agent, expressly agree to assume and be bound by all of the terms and
conditions of this Agreement. This Agreement shall not restrict Parent’s or any successor’s ability to merge or
consolidate or enter into or consummate any Change of Control. Except as otherwise permitted herein, Parent may not assign this
Agreement without the prior written consent of the Acting Holders. Any attempted assignment of this Agreement or any such rights in
violation of this Section 7.3 shall be void and of no effect. Unless a successor or assignee meets the requirements set forth
in Section 3.3(b), Rights Agent may not assign this Agreement without Parent’s written consent. Any attempted
assignment of this Agreement or any such rights in violation of this Section 7.3 shall be void and of no effect.

 

7.4.           
No Third Party Beneficiaries. Nothing in this Agreement, express or implied, shall give to any Person (other than the Rights
Agent and its permitted successors and assigns, Parent, Parent’s successors and Assignees, and the Holders and the Holders’
successors and assigns pursuant to Permitted Transfers, each of whom is intended to be, and is, a third party beneficiary hereunder) any
benefit or any legal or equitable right, remedy or claim under this Agreement or under any covenant or provision herein contained, all
such covenants and provisions being for the sole benefit of the Rights Agent and its permitted successors and assigns, Parent, Parent’s
successors and Assignees, and the Holders and the Holders’ successors and assigns pursuant to Permitted Transfers. The rights hereunder
of Holders and their successors and assigns pursuant to Permitted Transfers are limited to those expressly provided in this Agreement.
Notwithstanding anything to the contrary contained herein, any Holder or Holder’s successor or assign pursuant to a Permitted Transfer
may at any time agree to renounce, in whole or in part, whether or not for consideration, its rights under this Agreement by written notice
to the Rights Agent and Parent, which notice, if given, shall be irrevocable, and Parent may, in its sole discretion, at any time offer
consideration to Holders in exchange for their agreement to irrevocably renounce their rights, in whole or in part, hereunder.

 

7.5.           
Governing Law. This Agreement, the CVRs and all actions arising under or in connection herewith and therewith (whether sounding
in contract, tort or otherwise) shall be governed by and construed in accordance with the laws of the State of Delaware, regardless of
the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

7.6.           
Severability. In the event that any provision of this Agreement, or the application thereof, becomes or is declared by a
court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement shall continue in full force and
effect and the application of such provision to other Persons or circumstances shall be interpreted so as reasonably to effect the intent
of the parties. The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable
provision that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision.

 

    20.

     

    

 

7.7.            Termination.
This Agreement shall be terminated and of no force or effect, the parties hereto shall have no liability hereunder (other than with
respect to monies due and owing by Parent to Rights Agent), and no payments shall be required to be made, upon the earlier to occur
of (a) the mailing by the Rights Agent to the address of each Holder as reflected in the CVR Register (or payment by wire transfer,
as applicable) the full amount of each potential Milestone Payment required to be paid under the terms of this Agreement, (b) the
termination of the Merger Agreement in accordance with its terms and (c) upon the Milestone Deadline Date. Notwithstanding the
foregoing, no such termination shall affect any rights or obligations accrued prior to the effective date of such termination or Sections
2.4(e), 3.2, 7.4 to 7.8, which shall survive the termination of this Agreement, or the resignation,
replacement or removal of the Rights Agent.

 

7.8.           
Entire Agreement; Counterparts. As it relates to the Rights Agent, this Agreement constitutes the entire agreement of the
parties hereto and supersedes all contemporaneous and prior agreements and understandings, both written and oral, among or between any
of the parties hereto, with respect to the subject matter hereof. As between the Parent and the Company, this Agreement and the Merger
Agreement constitute the entire agreement and supersede all contemporaneous and prior agreements and understandings, both written and
oral, among or between any of the Parties, with respect to the subject matter hereof and thereof. If and to the extent that any provision
of this Agreement is inconsistent or conflicts with the Merger Agreement, this Agreement shall govern and be controlling. This Agreement
may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument.
The exchange of a fully executed Agreement (in counterparts or otherwise) by PDF shall be sufficient to bind the parties hereto to the
terms and conditions of this Agreement.

 

7.9.           
No Fiduciary Obligations. Each of Parent and the Rights Agent acknowledges and agrees that (i) neither party owes any fiduciary
duties to the Holders and (ii) the other party, its affiliates and their respective officers, directors and controlling Persons do not
owe any fiduciary duties to the first party or any of its respective affiliates, officers, directors or controlling Persons. The only
obligations of the Parent and the Rights Agent to each other and their affiliates and their respective officers, directors and controlling
Persons arising out of this Agreement are the contractual obligations expressly set forth in this Agreement.

 

7.10.       
Confidentiality. The Rights Agent and the Parent agree that all books, records, information and data pertaining to the business
of the other party, including inter alia, personal, non-public Holder information and any Progress Report, which are exchanged or received
pursuant to the negotiation or the carrying out of this Agreement including the fees for services set forth in the attached schedule shall
remain confidential, and shall not be voluntarily disclosed to any other person, including any Holder, except as may be required by a
valid order of an arbitration panel, court or Governmental Body of competent jurisdiction or is otherwise required by law or regulation,
including SEC or Nasdaq rules and regulations, or pursuant to subpoenas from state or federal government authorities (e.g., in divorce
and criminal actions).

 

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    21.

     

    

 

IN
WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its duly authorized officers as of the
day and year first above written.

 

	 	PARENT:
	 	 	 
	 	PACIRA BIOSCIENCES, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Kristen Williams
	 	Name:	Kristen Williams
	 	Title:	Chief Administrative Officer
	 	 	 
	 	 	 
	 	RIGHTS AGENT:
	 	 	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
	 	 	 
	 	By:  	/s/ Michael Legregin
	 	Name:	Michael Legregin
	 	Title:	Senior Vice President, Attorney Advisory Group

 

[Signature Page to Contingent Value Right Agreement]exhibit41-indentureexecu

Exhibit 4.1  Execution Version  SENIOR NOTES INDENTURE  Dated as of November 18, 2021  Among  KONTOOR BRANDS, INC.  THE GUARANTORS LISTED ON THE SIGNATURE PAGES HERETO  and  U.S. BANK NATIONAL ASSOCIATION  as Trustee  4.125% SENIOR NOTES DUE 2029  

 

-i- TABLE OF CONTENTS  Page  ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE ............................................... 1  Section 1.01 Definitions .......................................................................................................................... 1  Section 1.02 Other Definitions .............................................................................................................. 34  Section 1.03 Rules of Construction ....................................................................................................... 35  Section 1.04 Limited Condition Transactions and Certain Financial Calculations. .............................. 36  Section 1.05 Acts of Holders ................................................................................................................. 38  ARTICLE 2 THE NOTES .......................................................................................................................... 41  Section 2.01 Form and Dating; Terms ................................................................................................... 41  Section 2.02 Execution and Authentication ........................................................................................... 41  Section 2.03 Registrar and Paying Agent .............................................................................................. 42  Section 2.04 Paying Agent to Hold Money in Trust .............................................................................. 42  Section 2.05 Holder Lists....................................................................................................................... 43  Section 2.06 Transfer and Exchange ..................................................................................................... 43  Section 2.07 Replacement Notes ........................................................................................................... 44  Section 2.08 Outstanding Notes ............................................................................................................. 44  Section 2.09 Treasury Notes .................................................................................................................. 45  Section 2.10 Temporary Notes .............................................................................................................. 45  Section 2.11 Cancellation ...................................................................................................................... 45  Section 2.12 Defaulted Interest .............................................................................................................. 45  Section 2.13 CUSIP and ISIN Numbers ................................................................................................ 46  ARTICLE 3 REDEMPTION ...................................................................................................................... 46  Section 3.01 Notices to Trustee ............................................................................................................. 46  Section 3.02 Selection of Notes to Be Redeemed or Purchased ............................................................ 46  Section 3.03 Notice of Redemption ....................................................................................................... 47  Section 3.04 Effect of Notice of Redemption ........................................................................................ 48  Section 3.05 Deposit of Redemption or Purchase Price ........................................................................ 48  Section 3.06 Notes Redeemed or Purchased in Part .............................................................................. 49  Section 3.07 Optional Redemption ........................................................................................................ 49  Section 3.08 Mandatory Redemption .................................................................................................... 50  Section 3.09 Offers to Repurchase by Application of Excess Proceeds ................................................ 50  ARTICLE 4 COVENANTS ....................................................................................................................... 53  Section 4.01 Payment of Notes .............................................................................................................. 53  Section 4.02 Maintenance of Office or Agency ..................................................................................... 53  Section 4.03 Taxes. ................................................................................................................................ 53  Section 4.04 Stay, Extension and Usury Laws ...................................................................................... 53  Section 4.05 Corporate Existence .......................................................................................................... 54  Section 4.06 Reports and Other Information ......................................................................................... 54  Section 4.07 Compliance Certificate ..................................................................................................... 56  Section 4.08 Limitation on Restricted Payments ................................................................................... 56  

 

Page  -ii- Section 4.09 Limitation on Indebtedness ............................................................................................... 61  Section 4.10 Limitation on Liens ........................................................................................................... 67  Section 4.11 Future Guarantors ............................................................................................................. 67  Section 4.12 Limitation on Restrictions on Distribution From Restricted Subsidiaries ........................ 68  Section 4.13 Designation of Restricted and Unrestricted Subsidiaries .................................................. 69  Section 4.14 Transactions with Affiliates .............................................................................................. 70  Section 4.15 Offer to Repurchase Upon Change of Control.................................................................. 72  Section 4.16 Asset Dispositions ............................................................................................................. 75  Section 4.17 Effectiveness of Covenants. .............................................................................................. 78  ARTICLE 5 SUCCESSORS ....................................................................................................................... 80  Section 5.01 Merger, Consolidation or Sale of All or Substantially All Assets .................................... 80  Section 5.02 Officers’ Certificate and Opinion of Counsel to be Given to Trustee .............................. 82  ARTICLE 6 DEFAULTS AND REMEDIES ............................................................................................. 82  Section 6.01 Events of Default .............................................................................................................. 82  Section 6.02 Acceleration ...................................................................................................................... 85  Section 6.03 Other Remedies ................................................................................................................. 86  Section 6.04 Waiver of Past Defaults .................................................................................................... 86  Section 6.05 Control by Majority .......................................................................................................... 87  Section 6.06 Limitation on Suits ............................................................................................................ 87  Section 6.07 Rights of Holders to Receive Payment ............................................................................. 87  Section 6.08 Collection Suit by Trustee ................................................................................................ 88  Section 6.09 Restoration of Rights and Remedies ................................................................................. 88  Section 6.10 Rights and Remedies Cumulative ..................................................................................... 88  Section 6.11 Delay or Omission Not Waiver......................................................................................... 88  Section 6.12 Trustee May File Proofs of Claim .................................................................................... 88  Section 6.13 Priorities ............................................................................................................................ 89  Section 6.14 Undertaking for Costs ....................................................................................................... 89  ARTICLE 7 TRUSTEE .............................................................................................................................. 90  Section 7.01 Duties of Trustee ............................................................................................................... 90  Section 7.02 Rights of Trustee ............................................................................................................... 91  Section 7.03 Individual Rights of Trustee ............................................................................................. 92  Section 7.04 Trustee’s Disclaimer ......................................................................................................... 92  Section 7.05 Notice of Defaults ............................................................................................................. 93  Section 7.06 [Reserved] ......................................................................................................................... 93  Section 7.07 Compensation and Indemnity ........................................................................................... 93  Section 7.08 Replacement of Trustee .................................................................................................... 94  Section 7.09 Successor Trustee by Merger, etc. .................................................................................... 95  Section 7.10 Eligibility; Disqualification .............................................................................................. 95  ARTICLE 8 LEGAL DEFEASANCE AND COVENANT DEFEASANCE ............................................ 95  Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance ........................................... 95  Section 8.02 Legal Defeasance and Discharge ...................................................................................... 95  Section 8.03 Covenant Defeasance ........................................................................................................ 96  Section 8.04 Conditions to Legal or Covenant Defeasance ................................................................... 96  

 

Page  -iii- Section 8.05 Deposited Money and Government Securities to Be Held in Trust; Other  Miscellaneous Provisions ................................................................................................. 98  Section 8.06 Repayment to the Company .............................................................................................. 98  Section 8.07 Reinstatement .................................................................................................................... 98  ARTICLE 9 AMENDMENT, SUPPLEMENT AND WAIVER ............................................................... 99  Section 9.01 Without Consent of Holders ............................................................................................. 99  Section 9.02 With Consent of Holders ................................................................................................ 100  Section 9.03 [Reserved] ....................................................................................................................... 101  Section 9.04 Revocation and Effect of Consents ................................................................................. 101  Section 9.05 Notation on or Exchange of Notes .................................................................................. 102  Section 9.06 Trustee to Sign Amendments, etc. .................................................................................. 102  ARTICLE 10 GUARANTEES ................................................................................................................. 102  Section 10.01 Guarantee ........................................................................................................................ 102  Section 10.02 Limitation on Guarantor Liability ................................................................................... 104  Section 10.03 Execution and Delivery .................................................................................................. 104  Section 10.04 Subrogation ..................................................................................................................... 104  Section 10.05 Benefits Acknowledged .................................................................................................. 105  Section 10.06 Release of Note Guarantees ............................................................................................ 105  ARTICLE 11 SATISFACTION AND DISCHARGE .............................................................................. 106  Section 11.01 Satisfaction and Discharge .............................................................................................. 106  Section 11.02 Application of Trust Money............................................................................................ 106  ARTICLE 12 MISCELLANEOUS .......................................................................................................... 107  Section 12.01 Concerning the Trust Indenture Act ............................................................................... 107  Section 12.02 Notices ............................................................................................................................ 107  Section 12.03 [Reserved] ....................................................................................................................... 109  Section 12.04 Certificate and Opinion as to Conditions Precedent ....................................................... 109  Section 12.05 Statements Required in Certificate or Opinion ............................................................... 109  Section 12.06 Rules by Trustee and Agents .......................................................................................... 110  Section 12.07 No Personal Liability of Directors, Officers, Employees, Members, Partners  and Stockholders ............................................................................................................. 110  Section 12.08 Governing Law; Submission to Jurisdiction ................................................................... 110  Section 12.09 Waiver of Jury Trial ........................................................................................................ 110  Section 12.10 Force Majeure ................................................................................................................. 110  Section 12.11 No Adverse Interpretation of Other Agreements ............................................................ 111  Section 12.12 Successors ....................................................................................................................... 111  Section 12.13 Severability ..................................................................................................................... 111  Section 12.14 Counterpart Originals ..................................................................................................... 111  Section 12.15 Table of Contents, Headings, etc. ................................................................................... 111  Section 12.16 Facsimile and PDF Delivery of Signature Pages ............................................................ 111  Section 12.17 U.S.A. PATRIOT Act ..................................................................................................... 112 Section 12.18 Payments Due on Non-Business Days ............................................................................ 112  

 

-iv- Appendix A Provisions Relating to Initial Notes and Additional Notes  Exhibit A Form of Note  Exhibit B Form of Institutional Accredited Investor Transferee Letter of Representation  Exhibit C Form of Supplemental Indenture to Be Delivered by Subsequent Guarantors  

 

INDENTURE, dated as of November 18, 2021, among Kontoor Brands, Inc., a North  Carolina corporation (the “Company”), the Guarantors listed on the signature pages hereto and U.S. Bank  National Association, as Trustee.  W I T N E S S E T H  WHEREAS, the Company has duly authorized the creation and issue of $400,000,000  aggregate principal amount of 4.125% Senior Notes due 2029 (the “Initial Notes”); and  WHEREAS, the Guarantors have duly authorized the execution and delivery of this  Indenture and issuance of the Note Guarantees.  NOW, THEREFORE, the Company, the Guarantors and the Trustee agree as follows for  the benefit of each other and for the equal and ratable benefit of the Holders of the Notes.  ARTICLE 1  DEFINITIONS AND INCORPORATION BY REFERENCE  Section 1.01 Definitions.  “Accounting Change” refers to a change after the Issue Date in accounting principles  required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial  Accounting Standards Board of the American Institute of Certified Public Accountants or, if applicable,  the SEC.  “Acquired Indebtedness” means, with respect to any specified Person, (1) Indebtedness of  any Person or any of its Subsidiaries existing at the time such Person becomes a Restricted Subsidiary, (2)  Indebtedness assumed in connection with the acquisition of assets from such Person, or (3) Indebtedness  secured by a Lien encumbering any asset acquired by such specified Person in each case whether or not  Incurred by such Person in connection with, or in anticipation or contemplation of, such Person becoming  a Restricted Subsidiary or such acquisition; provided, however, that any Indebtedness of such acquired  Person or in respect of such acquired assets that is redeemed, defeased, retired or otherwise repaid at the  time of or immediately upon consummation of the transactions by which such Person merges with or into  or becomes a Subsidiary of such Person or such assets in respect of such assumed Indebtedness are  acquired shall not be considered to be Acquired Indebtedness. Acquired Indebtedness shall be deemed to  have been Incurred, with respect to clause (1) of the preceding sentence, on the date such Person becomes  a Restricted Subsidiary and, with respect to clauses (2) and (3) of the preceding sentence, on the date of  consummation of such acquisition of assets.  “Acquisition Debt Ratio” means, as of any date of determination, either (a) 4.50 to 1.00  or (b) if a Material Acquisition has been consummated during the current fiscal quarter or in any of the  immediately preceding four fiscal quarters prior to such date of determination, 5.00 to 1.00.   “Additional Assets” means:  (1) any property, plant, equipment or other asset (excluding working capital or current assets) used, usable or to be used by the Company or a Restricted Subsidiary in a Similar  Business;  (2) the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Company or a Restricted Subsidiary; or  

 

-2- (3) Capital Stock constituting a minority interest in any Person that at such time is a Restricted Subsidiary;  provided, however, that, in the case of clauses (2) and (3), such Restricted Subsidiary is primarily engaged  in a Similar Business.  “Additional Notes” means additional Notes (other than the Initial Notes) issued from time  to time under this Indenture in accordance with Section 2.01 and Section 4.09, whether or not they have  the same CUSIP and/or CUSIP number.  “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” (including, with correlative meanings, the terms “controlling,”  “controlled by” and “under common control with”) when used with respect to any Person means  possession, directly or indirectly, of 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.  “Agent” means any Registrar or Paying Agent or Custodian.  “Applicable Premium” means, with respect to a Note on any redemption date thereof, the  greater of:  (1) 1.0% of the principal amount of such Note; and (2) the excess, if any, of (a) the present value as of such redemption date of (i) the redemption price of such Note on November 15, 2024 (such redemption price being set forth in  Section 3.07(d)), plus (ii) all required interest payments due on such Note through November 15,  2024 (excluding accrued but unpaid interest to the redemption date), computed using a discount  rate equal to the Treasury Rate as of such redemption date plus 50 basis points; over (b) the then  outstanding principal amount of such Note.  Calculation of the Applicable Premium will be made by the Company or on behalf of the  Company by such Person as the Company shall designate; provided that such calculation or the  correctness thereof shall not be a duty or obligation of the Trustee.  “Approved Commercial Bank” means a commercial bank with a consolidated combined  capital and surplus of at least $5.0 billion.   “Asset Disposition” means any direct or indirect sale, lease (other than an operating lease  entered into in the ordinary course of business), transfer, issuance or other disposition, or a series of  related sales, leases, transfers, issuances or dispositions that are part of a common plan, of shares of  Capital Stock of a Subsidiary (other than directors’ qualifying shares), property or other assets (each  referred to for the purposes of this definition as a “disposition”) by the Company or any of its Restricted  Subsidiaries, including any disposition by means of a merger, consolidation or similar transaction.  Notwithstanding the preceding, the following items shall not be deemed to be Asset  Dispositions:  (1) a disposition of assets by a Restricted Subsidiary to the Company or by the Company or a Restricted Subsidiary to a Restricted Subsidiary (other than a Receivables Entity);  

 

-3- (2) the sale of Cash Equivalents in the ordinary course of business; (3) a disposition of inventory in the ordinary course of business; (4) a disposition of obsolete or worn out equipment or equipment that is no longer used or no longer useful in the conduct of the business of the Company and its Restricted  Subsidiaries and that is disposed of in each case in the ordinary course of business;  (5) the disposition of all or substantially all of the assets of the Company in a manner permitted pursuant to Section 5.01 or any disposition that constitutes a Change of Control;  (6) an issuance of Capital Stock by a Restricted Subsidiary to the Company or to a Wholly Owned Subsidiary (other than a Receivables Entity);  (7) for purposes of Section 4.16 only, the making of a Permitted Investment (other than a Permitted Investment to the extent such transaction results in the receipt of cash or Cash  Equivalents by the Company or its Restricted Subsidiaries) or a disposition that is permitted  pursuant to Section 4.08;  (8) sales of accounts receivable and related assets or an interest therein in connection with a Permitted Receivables Financing;  (9) a disposition of trade payables in connection with a Supply Chain Financing in the ordinary course of business;  (10) dispositions of assets in a single transaction or a series of related transactions with an aggregate Fair Market Value of less than $10.0 million;  (11) the creation of a Permitted Lien and dispositions in connection with Permitted Liens;  (12) dispositions of receivables in connection with the compromise, settlement or collection thereof in the ordinary course of business or in bankruptcy or similar proceedings and  exclusive of factoring or similar arrangements;  (13) the issuance by a Restricted Subsidiary of Preferred Stock that is permitted by Section 4.09;  (14) the licensing or sublicensing of intellectual property or other general intangibles and licenses, leases or subleases of other property in the ordinary course of business which do not  materially interfere with the business of the Company and its Restricted Subsidiaries;  (15) any termination or settlement of Hedging Obligations permitted under the terms thereof;  (16) any sale of Capital Stock in, or Indebtedness or other securities of, an Unrestricted Subsidiary;  (17) any surrender or waiver of contract rights or the settlement, release, recovery on or surrender of contract, tort or other claims of any kind;  

 

-4- (18) any exchange of like property on a tax-free basis pursuant to Section 1031 of the Code for use in a Similar Business;  (19) dispositions of non-core assets, in each case acquired in any acquisition or other Investment not prohibited herein, including such dispositions (x) made in order to obtain the  approval of any antitrust authority or otherwise necessary or advisable in the good faith  determination of the Company to consummate any acquisition or other Investment not prohibited  herein or (y) which are being held for sale and not for the continued operation of the Company or  any of the Restricted Subsidiaries or any of their respective businesses;  (20) dispositions constituting any part of a Permitted Reorganization; and (21) the settlement or early termination of any Permitted Bond Hedge or Permitted Warrant.  “Attributable Indebtedness” in respect of a Sale/Leaseback Transaction means, as at the  time of determination, the present value (discounted at the interest rate implicit in the transaction) 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), determined in  accordance with GAAP; provided, however, that if such Sale/Leaseback Transaction results in a  Capitalized Lease Obligation, the amount of Indebtedness represented thereby will be determined in  accordance with the definition of “Capitalized Lease Obligations.”  “Average Life” means, as of the date of determination, with respect to any Indebtedness  or Preferred Stock, the quotient obtained by dividing (1) the sum of the products obtained by multiplying  (a) the amount of each successive scheduled principal payment of such Indebtedness or redemption or similar payment with respect to such Preferred Stock by (b) the number of years (calculated to the nearest one-twelfth) from the date of determination to the date of such payment; by (2) the sum of the amounts of all such payments. “balance sheet date” means the end of the most recent fiscal quarter for which internal  financial statements prepared on a consolidated basis in accordance with GAAP are available.    “Bankruptcy Law” means Title 11, U.S. Code, as amended, or any similar federal, state or  foreign law for the relief of debtors.  “beneficial ownership” has the meaning assigned to such term in Rule 13d-3 and  Rule 13d-5 under the Exchange Act, and “beneficial owner” has a corresponding meaning.   “Board of Directors” means:  (1) with respect to a corporation, the Board of Directors of the corporation or (other than for purposes of determining Change of Control) any duly authorized committee of the Board  of Directors;  (2) with respect to a partnership, the Board of Directors of the general partner of the partnership; and  (3) with respect to any other Person, the board or committee of such Person serving a similar function.  

 

-5- “Business Day” means each day that is not a Saturday, Sunday or other day on which  banking institutions in New York, New York or the location of the Corporate Trust Office of the Trustee  are authorized or required by law to close.  “Capital Stock” of any Person means any and all shares, interests, rights to purchase,  warrants, options (including any Permitted Bond Hedge), participations or other equivalents of or  interests in (however designated) equity of such Person, including any Preferred Stock and limited  liability or partnership interests (whether general or limited), but excluding any debt securities convertible  or exchangeable into such equity.  “Capitalized Lease Obligations” of any Person means the obligations of such Person to  pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or  personal property, or a combination thereof, which obligations are required to be classified and accounted  for as capital leases on a balance sheet of such Person under GAAP and, for the purposes of this  Indenture, the amount of such obligations at any time shall be the capitalized amount thereof at such time  determined in accordance with GAAP; provided that notwithstanding any change in GAAP on or after  December 15, 2018 that would require obligations that would be classified and accounted for as an  operating lease under GAAP as existing on the Issue Date to be classified and accounted for as capital  leases or otherwise reflected on the consolidated balance sheet of the Company and its Subsidiaries, such  obligations shall continue to be treated as operating leases for all purposes under this Indenture.  “Cash Equivalents” means:  (1) U.S. dollars or, in the case of any Foreign Subsidiary, such local currencies held by it from time to time in the ordinary course of business;  (2) securities issued or directly and fully Guaranteed or insured by the United States government or any agency or instrumentality of the United States (provided that the full faith and  credit of the United States is pledged in support thereof), having maturities of not more than one  year from the date of acquisition;   (3) marketable general obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof,  Canada, any member of the European Economic Area or Japan or any agency or instrumentality  of any of the foregoing, in each case maturing within one year from the date of acquisition and, at  the time of acquisition, having a credit rating of at least “A” or the equivalent thereof by S&P,  Moody’s or Fitch, or carrying an equivalent rating by a nationally recognized Rating Agency, if  all of the named Rating Agencies cease publishing ratings of investments;   (4) certificates of deposit, time deposits, eurodollar time deposits, overnight bank deposits or bankers’ acceptances having maturities of not more than one year from the date of  acquisition thereof issued by any commercial bank (i) the long-term debt of which is rated at the  time of acquisition thereof at least “A” or the equivalent thereof by S&P, Moody’s or Fitch, or  carrying an equivalent rating by a nationally recognized Rating Agency, if both of the two named  Rating Agencies cease publishing ratings of investments, and (ii) having a combined capital and  surplus in excess of $500.0 million;  (5) certificates of deposit, time deposits, eurodollar time deposits, overnight bank deposits or bankers’ acceptances having maturities of not more than one year from the date of  acquisition thereof in an aggregate amount at any one time not to exceed $25.0 million issued by  any commercial bank;  

 

-6- (6) repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clauses (2), (3) and (4) entered into with any bank meeting the  qualifications specified in clause (4) above;   (7) commercial paper rated at the time of acquisition thereof at least “A-2” or the equivalent thereof by S&P, “P-2” or the equivalent thereof by Moody’s or “F-2” or the equivalent  thereof by Fitch, or carrying an equivalent rating by a nationally recognized Rating Agency, if all  of the named Rating Agencies cease publishing ratings of investments, and in any case maturing  within one year after the date of acquisition thereof;   (8) interests in any investment company or money market fund which invests 95% or more of its assets in instruments of the type specified in clauses (1) through (4), (6) and (7)  above; and  (9) money market funds that (i) comply with the criteria set forth under Rule 2a-7 under the Investment Company Act of 1940, as amended, (ii) are rated “AAA” or “Aaa” or the  equivalent thereof by any two of S&P, Moody’s and Fitch, or carrying an equivalent rating by a  nationally recognized Rating Agency if all of the named Rating Agencies cease publishing ratings  of investments, and (iii) have portfolio assets of at least $5.0 billion.  “Cash Management Obligations” means any obligation of the Company or any of its  Restricted Subsidiaries in respect of (i) cash netting, overdrafts and related liabilities that arise from  treasury, depositary or cash pooling or management services including in connection with any automated  clearing house transfers of funds or any similar transactions including in connection with deposit accounts  and (ii) credit, debit, travel and expense, corporate purchasing and/or other purchasing cards issued to or  for the benefit or account of the Company or any of its Restricted Subsidiaries or their respective  employees.  “Cash Pooling Agreement” means any agreement, substantially in the form of (a) the  Cash Pool Agreement dated February 21, 2019, between LeeWrangler Belgium Services BVBA and  Bank Mendes Gans, N.V. (the “Existing Pooling Agreement”), by and among Company and/or any of its  Restricted Subsidiaries, on the one hand, and one or more banks or similar financing institutions, on the  other hand, together with any documents evidencing or governing any obligations relating thereto  (including any guarantee agreements and security documents contemplated by or customary in connection  with the Existing Pooling Agreement) or (b) any other cash pooling arrangement or agreement of the  Company and/or any of its Restricted Subsidiaries in effect on the Issue Date, in each case as such  agreements may be amended (including any amendment and restatement thereof), supplemented or  otherwise modified from time to time, including any agreement extending the maturity of, refinancing,  replacing or otherwise restructuring, in whole or in part, obligations (or adding Restricted Subsidiaries as  additional parties or other Restricted Subsidiaries as guarantors thereunder) under any such agreement or  any successor or replacement agreement and whether by the same or any other bank or similar financing  institution or group of banks or similar financing institutions; provided that any such amendment,  restatement, supplement or modification, extension, refinancing, replacement or other agreement is  limited to the provision of a cash management system or systems for the Foreign Subsidiaries of the  Company and will not create any Indebtedness, or Lien on the property, of the Company or any of its  Restricted Subsidiaries for any other purpose. The Cash Pooling Agreements provide a cash management  system for Restricted Subsidiaries of the Company, and obligations of Subsidiaries thereunder may be  guaranteed by the Company and its Restricted Subsidiaries.   “CFC” means any “controlled foreign corporation” within the meaning of Section 957 of  the Code.  

 

-7- “Change of Control” means:  (1) any “person” or “group” of related persons (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, becomes the  beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or  indirectly, in a single transaction or, a related series of transactions, by way of merger,  consolidation or other business combination or purchase of beneficial ownership (within the  meaning of Rule 13d-3 under the Exchange Act) of more than 50% of the total voting power of  the Voting Stock of the Company or any of its direct or indirect parent entities (or their  successors by merger, consolidation or purchase of all or substantially all of their assets);  (2) the sale, assignment, conveyance, transfer, lease or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or  substantially all of the assets of the Company and its Restricted Subsidiaries taken as a whole to  any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act); or  (3) the adoption by the stockholders of the Company of a plan or proposal for the liquidation or dissolution of the Company.  For the avoidance of doubt, for purposes of clause (1), (i) a merger or consolidation of a Subsidiary of the  Company into another Subsidiary of the Company or (ii) a sale of a Subsidiary of the Company to another  Person in a transaction permitted pursuant to the terms of this Indenture will not be deemed to be a  Change of Control.   Notwithstanding the preceding or any provision of Rule 13d‐3 or 13d‐5 of the Exchange Act, (i) a Person  or group shall not be deemed to beneficially own Voting Stock subject to an equity or asset purchase  agreement, merger agreement, option agreement, warrant agreement or similar agreement (or voting or  option or similar agreement related thereto) until the consummation of the acquisition of the Voting Stock  in connection with the transactions contemplated by such agreement, and (ii) a Person or group will not  be deemed to beneficially own the Voting Stock of another Person as a result of its ownership of Voting  Stock or other securities of such other Person’s parent entity (or related contractual rights) unless it owns  50.0% or more of the total voting power of the Voting Stock entitled to vote for the election of directors  of such parent entity having a majority of the aggregate votes on the Board of Directors of such parent  entity.  “Change of Control Triggering Event” means the occurrence of (1) a Change of Control  that is accompanied or followed by a downgrade of the Notes within the Ratings Decline Period for such  Change of Control by at least two of three Rating Agencies and (2) in each case, the rating of the Notes  by the applicable Rating Agency on any day during such Ratings Decline Period is below the lower of the  rating by such Rating Agency in effect by one or more gradations (including gradations within rating  categories as well as between rating categories) (a) immediately preceding the first public announcement  of the Change of Control (or occurrence thereof if such Change of Control occurs prior to public  announcement) and (b) on the Issue Date. In determining whether the rating of the Notes has decreased by  one or more gradations, gradations within rating categories, namely + or - for Fitch, + or - for S&P and 1,  2, and 3 for Moody’s, and will be taken into account; for example, in the case of S&P, a rating decline  either from BB+ to BB or BB- to B+ will constitute a decrease of one gradation.  “Code” means the Internal Revenue Code of 1986, as amended.  

 

“Commodity Agreement” means, with respect to any Person, any commodity future or  forward, swap or option, cap or collar or other similar agreement or arrangement as to which such Person  is a party or beneficiary.  “Common Stock” means with respect to any Person, any and all shares, interests or other  participations in, and other equivalents (however designated and whether voting or nonvoting) of such  Person’s common stock, whether or not outstanding on the Issue Date, and includes, without limitation,  all series and classes of such common stock.  “Company” means the party named as such in the first paragraph of this Indenture or any  successor obligor to its obligations under this Indenture and the Notes pursuant to Article 5.  “Consolidated Coverage Ratio” means as of any date of determination, with respect to  any Person, the ratio of (x) the aggregate amount of Consolidated EBITDA of such Person for the Test  Period to (y) Consolidated Interest Expense for the Test Period. In the event that the Company or any of  its Restricted Subsidiaries Incurs, assumes, guarantees, redeems, retires or extinguishes any Indebtedness  or issues or redeems Disqualified Stock or Preferred Stock subsequent to the commencement of the  applicable Test Period but prior to or simultaneously with the event for which the calculation of the  Consolidated Coverage Ratio is made, then the Consolidated Coverage Ratio shall be calculated on a pro  forma basis for such Incurrence, assumption, guarantee, redemption, retirement or extinguishment of  Indebtedness, or such issuance or redemption of Disqualified Stock or Preferred Stock, as if the same had  occurred at the beginning of the applicable Test Period.  “Consolidated EBITDA” means, with respect to any Person for any, Consolidated Net  Income of such Persons for such period;   (1) increased, without duplication and, to the extent deducted (and not added back) (or, in the case of clauses (g), (l) and (n), to the extent not included) in calculating Consolidated Net  Income for such period, the sum of:  (a) income tax expense, (b) Consolidated Interest Expense, amortization or writeoff of debt discount and debt issuance costs and commissions, discounts and other fees, charges and expenses associated with  Indebtedness (including with respect to the Notes and the Senior Secured Credit Facilities),  (c) depreciation and amortization expense and impairment charges, (d) all premiums and interest rate hedge termination costs in connection with any purchase or redemption of any Indebtedness,  (e) any other non-cash charges (excluding any such charge that constitutes an accrual of or a reserve for cash charges for any future period),  (f) restructuring charges and related charges, (g) (i) pro forma adjustments, “run rate” cost savings, operating expense reductions and cost synergies, in each case, related to any Specified Transaction consummated by the Company or  any of its Restricted Subsidiaries and projected by the Company in good faith to result from actions taken  or expected to be taken (in the good faith determination of the Company) within 24 months after the date  any such Specified Transaction is consummated, and (ii) any pro forma adjustments, “run rate” cost  savings, operating expense reductions and cost synergies projected by the Company in good faith to result  -8- 

 

from actions either taken or expected to be taken (including in connection with any restructuring  initiative, cost savings initiative, new initiative, business optimization activities, cost rationalization  programs and/or similar initiatives or programs) within 24 months after the date of determination to take  such action (any such pro forma adjustments, “run rate” cost savings, operating expense reductions or  synergies set forth in clauses (i) and (ii), “Expected Cost Savings”) (in each case, calculated on a pro  forma basis as though the full recurring benefit of such Expected Cost Savings had been realized in full  on the first day of such period); provided that (A) such Expected Cost Savings are reasonably identifiable  and factually supportable, (B) no Expected Cost Savings shall be added pursuant to this clause (g) to the  extent duplicative of any expenses or charges relating to such Expected Cost Savings that are included in  clause (a) through (f) above or (h) through (s) below and (C) the aggregate amount of all adjustments  pursuant to this clause (g) (other than to the extent permitted under Regulation S-X, which shall not be  subject to the cap set forth in this proviso) shall not exceed 30.0% of Consolidated EBITDA (such  percentage calculated before any amounts are added to Consolidated EBITDA pursuant to this clause (g)),  (h) cash expenses relating to customary earn outs and similar obligations to the  extent constituting Indebtedness;  (i) fees and the amount of loss or discount on the sale of accounts receivables and  related assets in connection with a Permitted Receivables Financing;  (j) any charge with respect to any liability or casualty event, business interruption or  any product recall, (i) so long as such Person has submitted in good faith, and reasonably expects to  receive payment in connection with, a claim for reimbursement of such amounts under its relevant  insurance policy within the next four fiscal quarters (with a deduction in the applicable future period for  any amount so added back to the extent not so reimbursed within the next four fiscal quarters) or (ii)  without duplication of amounts included in a prior period under the preceding clause (i), to the extent  such charge is covered by insurance, indemnification or otherwise reimbursable by a third party (whether  or not then realized so long as the Company in good faith expects to receive proceeds arising out of such  insurance, indemnification or reimbursement obligation within the next four fiscal quarters) (it being  understood that if the amount received in cash under any such agreement in any period exceeds the  amount of expense paid during such period, any excess amount received may be carried forward and  applied against any expense in any future period);  (k) unrealized net losses in the Fair Market Value of any arrangements under any  Hedging Obligations;  (l) the amount of any cash actually received by such Person (or the amount of the  benefit of any netting arrangement resulting in reduced cash expenditures) during such period, and not  included in Consolidated Net Income in any period, to the extent that any non-cash gain relating to such  cash receipt or netting arrangement was deducted in the calculation of Consolidated EBITDA for any  previous period and not added back;  (m) the amount of any non-controlling interest or minority interest charge consisting of income attributable to minority equity interests of third parties in any non-Wholly Owned Subsidiary;  (n) without duplication, any other adjustments, exclusions and add-backs included in  the definition of “Consolidated EBITDA” under the Senior Secured Credit Facilities (as such term is  defined on the Issue Date);  (o) charges, expenses and costs in anticipation of, or preparation for, standalone compliance with the requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations  -9- 

 

promulgated in connection therewith and charges, expenses and costs in anticipation of, or preparation  for, compliance with the provisions of the Securities Act, as amended, and the Exchange Act, as  applicable to companies with equity or debt securities held by the public and the rules of national  securities exchange for companies with listed equity or debt securities, including listing fees;  (p) any costs, expenses, fees, fines, penalties, judgments, legal settlements and other  amounts associated with any restructuring, litigation, claim, proceeding or investigation related to or  undertaken by the Company or any of its Restricted Subsidiaries, together with any related provision for  taxes;  (q) consulting fees, advisory fees, financing fees incurred and taxes incurred or  accrued in connection with the distribution;  (r) costs and expenses incurred in connection with the preparation, negotiation and delivery of this Indenture and the documents governing the Senior Secured Credit Facilities; and  (s) any net charge with respect to (i) any disposed, abandoned, divested and/or  discontinued asset, property or operation (other than, at the option of the Company, any asset, property or  operation pending the disposal, abandonment, divestiture and/or termination thereof), (ii) any disposal,  abandonment, divestiture and/or discontinuation of any asset, property or operation (other than, at the  option of the Company, relating to assets or properties held for sale or pending the divestiture or  discontinuation thereof) and/or (iii) any facility that has been closed during such period; and  (2) decreased, without duplication, to the extent taken into account in calculating  Consolidated Net Income for such period, the sum of (a) interest income, (b) any non-cash income and (c)  unrealized net gains in the Fair Market Value of any arrangement under any Hedging Obligations, all as  determined on a consolidated basis.  “Consolidated Income Taxes” means, with respect to any Person for any period, taxes  imposed upon such Person or any of its consolidated Restricted Subsidiaries or other payments required  to be made by such Person or any of its consolidated Restricted Subsidiaries to any governmental  authority, which taxes or other payments are calculated by reference to the income or profits or capital of  such Person or any of its consolidated Restricted Subsidiaries (to the extent such income or profits were  included in computing Consolidated Net Income for such period), including, without limitation, state,  franchise and similar taxes and foreign withholding taxes regardless of whether such taxes or payments  are required to be remitted to any governmental authority (including any penalties and interest related to  such taxes or arising from any tax examinations).  “Consolidated Interest Expense” means, with respect to any Person for any period, total  cash interest expense of the Company and its Restricted Subsidiaries for such period determined in  accordance with GAAP (excluding, to the extent otherwise included in such interest expense, (i) all  premiums and interest rate hedge termination costs in connection with any purchase or redemption of any  Indebtedness, (ii) any fees, including upfront fees, and any other fees and expenses associated or paid in  connection with the Senior Secured Credit Facilities or the consummation of the other Refinancing  Transactions, (iii) annual agency fee, paid to the administrative agent of the Senior Secured Credit  Facilities, (iv) fees and expenses associated with any Permitted Investment or any issuance of Capital  Stock or Indebtedness permitted hereunder (whether or not consummated), (v) any interest component  relating to the accretion or accrual of discounted liabilities and (vi) any writeoff of unamortized debt  issuance costs upon any prepayment of any Indebtedness), net of cash interest income. Notwithstanding  the foregoing, in the event that Company or a Restricted Subsidiary has entered into an operating lease in  connection with a Sale/Leaseback Transaction, then Consolidated Interest Expense for any period shall be  -10- 

 

deemed to be increased by the interest component of lease payments under such operating lease made  during such period.  “Consolidated Net Income” means, for any period, the consolidated net income (loss) of  the Company and its Restricted Subsidiaries determined on a consolidated basis in accordance with  GAAP; provided, however, that there will not be included in such Consolidated Net Income on an after- tax basis:  (1) the income (or deficit) of any Person accrued prior to the date it becomes a  Restricted Subsidiary of the Company or is merged into or consolidated with the Company or any of its  Restricted Subsidiaries;  (2) the income (or deficit) of any Person (other than a Restricted Subsidiary of the  Company) in which the Company or any of its Restricted Subsidiaries has an ownership interest, except  to the extent that any such income is actually received by the Company or such Restricted Subsidiary in  the form of dividends or similar distributions;  (3) the undistributed earnings of any Restricted Subsidiary of the Company to the  extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the  time permitted by the terms of any contractual obligation (other than hereunder or the Senior Secured  Credit Facilities) or requirement of law applicable to such Restricted Subsidiary;  (4) any goodwill or other asset impairment charges, write-offs or write-downs or  amortization of intangibles;  (5) any gain or charge attributable to any Asset Disposition (including asset  retirement costs or sales or issuances of Capital Stock) or of returned or surplus assets outside the  ordinary course of business (as determined in good faith by such Person);  (6) (i) any unrealized or realized net foreign currency transactional gains or charges  impacting net income (including currency re-measurements of Indebtedness, any net gains or charges  resulting from Hedging Obligations for currency exchange risk associated with the above or any other  currency related risk, any transactional gains or charges relating to assets and liabilities denominated in a  currency other than a functional currency and those resulting from intercompany Indebtedness), (ii) any  realized or unrealized gain or charge in respect of (x) any obligation under any Hedging Obligations as  determined in accordance with GAAP and/or (y) any other derivative instrument pursuant to, in the case  of this clause (y), Financial Accounting Standards Board’s Accounting Standards Codification No. 815- Derivatives and Hedging and (iii) unrealized gains or losses in respect of any Hedging Obligations;  (7) any net income or charge (less all fees and expenses related thereto) attributable  to (i) the early extinguishment or cancellation of Indebtedness or (ii) any derivative transaction under a  Hedging Obligation;  (8) non-cash expenses resulting from any employee benefit or management  compensation plan or grant of stock and stock options or other equity and equity-based interests to  employees of the Company or any Restricted Subsidiary pursuant to a written plan or agreement  (including expenses arising from the grant of stock and stock options prior to the Issue Date) or the  treatment of such options or other equity and equity-based interests under variable plan accounting;  (9) any charge that is established, adjusted and/or incurred (i) within 12 months after the closing of any acquisition that is required to be established, adjusted or incurred, as applicable, as a  -11- 

 

result of such acquisition in accordance with GAAP or (ii) as a result of any change in, or the adoption or  modification of, accounting principles or policies;  (10) any (i) write-off or amortization made in such period of deferred financing costs and premiums paid or other expenses incurred directly in connection with any early extinguishment of  Indebtedness, (ii) amortization of intangible assets and (iii) other amortization (including amortization of  goodwill, software, deferred or capitalized financing fees, debt issuance costs, commissions and expenses  and other intangible assets);  (11) fees, costs and expenses incurred, or amortization thereof, in connection with, to the extent permitted hereunder, any Investment, any issuance of debt or equity, any Asset Disposition,  any casualty event or any amendments or waivers of this Indenture or the documents governing the Senior  Secured Credit Facilities, and refinancing, refunding, renewals or extensions permitted hereunder in  connection therewith, in each case, whether or not consummated;  (12) non-cash compensation charges and/or any other non-cash charges arising from the granting of any stock, stock option or similar arrangement (including any profits interest) or the  granting of any restricted stock, stock appreciation right and/or similar arrangement (including any  repricing, amendment, modification, substitution or change of any such stock option, restricted stock,  stock appreciation right, profits interest or similar arrangement or the vesting of any warrant);  (13) the effects of adjustments (including the effects of such adjustments pushed down to the Company and its Restricted Subsidiaries) in component amounts required or permitted by  GAAP (including, without limitation, in the inventory (including any impact of changes to inventory  valuation policy methods, including changes in capitalization of variances), property and equipment,  lease, rights fee arrangements, software, goodwill, intangible asset (including customer molds), in-process  research and development, deferred revenue, advanced billing and debt line items thereof), resulting from  the application of recapitalization accounting or acquisition or purchase accounting, as the case may be, in  relation to the Notes or the Senior Secured Credit Facilities or any consummated acquisition or similar  Investment or the amortization or write-off of any amounts thereof (including any write-off of in process  research and development); and  (14) any extraordinary, exceptional or nonrecurring gains or losses. “Consolidated Total Debt” means, at any date of determination, the aggregate principal  amount of debt of the Company and its Restricted Subsidiaries at such date in an amount that would be  reflected on a balance sheet prepared as of such date on a consolidated basis in accordance with GAAP  (but excluding the effects of any discounting of Indebtedness resulting from the application of purchase  accounting in connection with any permitted Investment), consisting of Indebtedness for borrowed  money, obligations evidenced by notes, bonds (excluding surety bonds), debentures or similar instruments  (other than an operating lease, synthetic lease or similar arrangement), purchase money indebtedness and  Capitalized Lease Obligations.   “Consolidated Secured Debt” means, at any date of determination, (x) the aggregate  principal amount of Consolidated Total Debt as of such date plus (y) the Reserved Indebtedness Amount  as of such date, in each case, that is secured by a Lien.  “Convertible Notes” means Indebtedness of the Company that is convertible into  Common Stock of the Company and/or cash based on the value of such Common Stock and/or  Indebtedness of a Subsidiary of the Company that is exchangeable for Common Stock of the Company  and/or cash based on the value of such Common Stock.  -12- 

 

“Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified in  Section 12.02, and for purposes of Agent services such office shall also mean the office or agency of the  Trustee located initially at the same address, or such other address as to which the Trustee may give  notice to the Holders and the Company.  “Currency Agreement” means, with respect to any Person, any foreign exchange future or  forward, swap or option, cap or collar or other similar agreement or arrangement as to which such Person  is a party or a beneficiary.  “Custodian” means the Trustee, as custodian with respect to the Notes in global form, or  any successor entity thereto.  “Debt Facility” means one or more debt facilities (including, without limitation, the  Senior Secured Credit Facilities) or commercial paper facilities with banks or other commercial or  institutional lenders or investors providing for revolving credit loans, term loans, receivables financing  (including through the sale of receivables to such lenders or to special purpose entities formed to borrow  from such lenders against such receivables) or letters of credit or issuances of debt securities evidenced by  notes, debentures, bonds or similar instruments, in each case, as amended, restated, modified, renewed,  refunded, replaced or refinanced (including by means of sales of debt securities) in whole or in part from  time to time (and whether or not in one or multiple facilities, with the original administrative agent,  lenders or trustee or another administrative agent or agents, other lenders or trustee, whether provided  under the original Senior Secured Credit Facilities or any other credit or other agreement or indenture,  and irrespective of any changes in the terms and conditions thereof, the borrower(s) thereunder or the  guarantors thereof).  “Default” means any event that is, or after notice or passage of time or both would be, an  Event of Default.  “Definitive Note” means a certificated Initial Note or Additional Note (bearing the  Restricted Notes Legend if the transfer of such Note is restricted by applicable law) that does not include  the Global Notes Legend.  “Depositary” means, with respect to the Notes issuable or issued in whole or in part in  global form, the Person specified in Section 2.03 as the Depositary with respect to the Notes, and any and  all successors thereto appointed as Depositary hereunder and having become such pursuant to the  applicable provision of this Indenture.  “Derivative Instrument” means, with respect to a Person, any contract, instrument or  other right to receive payment or delivery of cash or other assets to which such Person or any Affiliate of  such Person that is acting in concert with such Person in connection with such Person’s investment in the  Notes (other than a Regulated Bank or Screened Affiliate) is a party (whether or not requiring further  performance by such Person), the value and/or cash flows of which (or any material portion thereof) are  materially affected by the value and/or performance of the Notes and/or the creditworthiness of the  Company and/or any one or more of the Guarantors (the “Performance References”). “Designated Non-cash Consideration” means the noncash consideration received by the  Company or one of its Restricted Subsidiaries in connection with an Asset Disposition that is so  designated as Designated Non-cash Consideration pursuant to an Officers’ Certificate setting forth the  Fair Market Value thereof, together with the basis of such valuation. The Fair Market Value of any  Designated Non-cash Consideration shall be deemed to be reduced by the amount of any cash or Cash  -13- 

 

Equivalents received in connection with a subsequent sale, redemption or payment of, on or with respect  to such Designated Non-cash Consideration.  “Disqualified Stock” means, with respect to any Person, any Capital Stock of such Person  that by its terms (or by the terms of any security into which it is convertible or for which it is  exchangeable) or upon the happening of any event:  (1) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise;  (2) is convertible into or exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock which is convertible or exchangeable solely at the option of the Company or a  Restricted Subsidiary (it being understood that upon such conversion or exchange it shall be an  Incurrence of such Indebtedness or Disqualified Stock)); or   (3) is mandatorily redeemable or must be purchased at the option of the holder upon the occurrence of certain events or otherwise, in whole or in part,  in each case on or prior to the date 91 days after the earlier of the final maturity date of  the Notes or the date the Notes are no longer outstanding; provided, however, that only the portion of  Capital Stock which so matures or is mandatorily redeemable, is so convertible or exchangeable or is so  redeemable at the option of the holder thereof prior to such date will be deemed to be Disqualified Stock;  provided, further, that any Capital Stock that would constitute Disqualified Stock solely because the  holders thereof have the right to require the Company or its Restricted Subsidiaries to repurchase such  Capital Stock upon the occurrence of a Change of Control or Asset Disposition (each defined in a  substantially identical manner to the corresponding definitions in this Indenture) shall not constitute  Disqualified Stock if the terms of such Capital Stock (and all such securities into which it is convertible  or exchangeable or for which it is redeemable) provide that the Company or its Restricted Subsidiaries, as  applicable, are not required to repurchase or redeem any such Capital Stock (and all such securities into  which it is convertible or exchangeable or for which it is redeemable) pursuant to such provision prior to  compliance by the Company with Section 4.15 and Section 4.16 and such repurchase or redemption  complies with Section 4.08; and provided, further, that Capital Stock shall not constitute Disqualified  Stock solely because it may be required to be repurchased by the Company or its Subsidiaries in order to  satisfy applicable statutory or regulatory obligations.  “Disregarded Entity” means any entity treated as disregarded as an entity separate from  its owner under Treasury Regulations Section 301.7701-3.  “Domestic Subsidiary” means any Restricted Subsidiary that is not a Foreign Subsidiary.  “DTC” means The Depository Trust Company.  “Electronic Means” shall mean the following communications methods: e-mail,  facsimile transmission, secure electronic transmission containing applicable authorization codes,  passwords and/or authentication keys, or another method or system specified by the Trustee as  available for use in connection with its services hereunder.  “Equity Offering” means a private or public offering for cash by the Company of its  Common Stock, or options, warrants or rights with respect to its Common Stock other than (1) public  offerings with respect to the Company’s Common Stock, or options, warrants or rights, registered on  Form S-4 or Form S-8, (2) an issuance to any Subsidiary or (3) any offering of Common Stock issued in  connection with a transaction that constitutes a Change of Control.   -14- 

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules  and regulations of the SEC promulgated thereunder.  “Excluded Subsidiary” means (i) any Subsidiary that is directly or indirectly owned by a  CFC, (ii) any Foreign Holding Company and (iii) any other Subsidiary that, at the time of such  determination, meets the definition of an “Excluded Subsidiary” under the Senior Secured Credit  Facilities as such term is defined as of the Issue Date.  “Existing Receivables Financing” means any transactions under (a) the Receivables  Purchase Agreement dated as of April 1, 2019, by and among Jeanswear Receivables, LLC and Wells  Fargo Bank, National Association, and related documentation, and (b) any refinancing, renewal,  replacement or extension of any such receivables financing referred to in clause (a) (or any successive  refinancings, renewals, replacements or extensions) (collectively, a “Replacement” and the financing  subject to such Replacement, the “Replaced Receivables Financing”), so long as the aggregate principal  amount of such Replacement does not exceed the aggregate principal amount of the Replaced Receivables  Financing.   “Fair Market Value” means, with respect to any asset or liability, the fair market value  of such asset or liability as determined by Senior Management of the Company in good faith.  “Fitch” means Fitch Ratings Inc.  “Foreign Holding Company” means any (i) Subsidiary, all or substantially all of the  assets of which consist of the Capital Stock of one or more CFCs and/or intercompany loans,  indebtedness or receivables owed by any CFC, and (ii) Disregarded Entity, all or substantially all of the  assets of which consist of the Capital Stock of one or more Subsidiaries described in part (i) of this  definition.   “Foreign Subsidiary” means any Restricted Subsidiary that is not organized under the  laws of the United States of America or any state thereof or the District of Columbia, and any Restricted  Subsidiary of such Foreign Subsidiary.  “GAAP” means generally accepted accounting principles in the United States of America  as in effect as from time to time; provided that if the Company notifies the Trustee following the  effectiveness of any applicable Accounting Change that the Company requests an amendment to any  provision hereof to eliminate the effect of such Accounting Change or in the application thereof on the  operation of such provision, regardless of whether any such notice is given before or after such  Accounting Change or in the application thereof, then such provision shall be interpreted on the basis of  GAAP as in effect and applied immediately before such Accounting Change shall have become effective  until such notice shall have been withdrawn or such provision amended in accordance herewith.  “Government Securities” means securities that are (1) direct obligations of the United  States of America for the timely payment of which its full faith and credit is pledged or (2) obligations of  a Person controlled or supervised by and acting as an agency or instrumentality of the United States of  America, the timely payment of which is unconditionally Guaranteed as a full faith and credit obligation  of the United States of America, which, in either case, are not callable or redeemable at the option of the  issuer thereof, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2)  of the Securities Act), as custodian with respect to any such Government Securities or a specific payment  of principal of or interest on any such Government Securities held by such custodian for the account of  the holder of such depositary receipt; provided that (except as required by law) such custodian is not  authorized to make any deduction from the amount payable to the holder of such depositary receipt from  -15- 

 

any amount received by the custodian in respect of the Government Securities or the specific payment of  principal of or interest on the Government Securities evidenced by such depositary receipt.  “Guarantee” means (1) any obligation, contingent or otherwise, of any Person directly or  indirectly guaranteeing any Indebtedness of any other Person and (2) any obligation, direct or indirect,  contingent or otherwise, of such Person:  (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or  by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to  maintain financial statement conditions or otherwise); or   (b) entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in  whole or in part);  provided, however, that the term “Guarantee” will not include endorsements for collection or deposit in  the ordinary course of business.  “Guarantor” means each Restricted Subsidiary in existence on the Issue Date that  provides a Note Guarantee on the Issue Date (and any other Restricted Subsidiary that provides a Note  Guarantee after the Issue Date); provided that upon release or discharge of such Restricted Subsidiary  from its Note Guarantee in accordance with this Indenture, such Restricted Subsidiary shall cease to be a  Guarantor.  “Guarantor Subordinated Obligation” means, with respect to a Guarantor, any  Indebtedness of such Guarantor (whether outstanding on the Issue Date or thereafter Incurred) that is  expressly contractually subordinated in right of payment to the obligations of such Guarantor under its  Note Guarantee.  “Hedging Obligations” of any Person means the obligations of such Person pursuant to  any Interest Rate Agreement, Currency Agreement or Commodity Agreement. For the avoidance of  doubt, any agreements or arrangements related to a Permitted Bond Hedge or a Permitted Warrant shall  not constitute a Hedging Obligation.  “Holder” means a Person in whose name a Note is registered on the Registrar’s books.  “Incur” means issue, create, assume, Guarantee, incur or otherwise become liable for;  provided, however, that any Indebtedness or Capital Stock of a Person existing at the time such Person  becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise) will be  deemed to be Incurred by such Restricted Subsidiary at the time it becomes a Restricted Subsidiary; and  the terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.  “Indebtedness” means, with respect to any Person on any date of determination (without  duplication):  (1) the principal of and premium (if any) in respect of indebtedness of such Person  for borrowed money;  (2) the principal component of all obligations of such Person to pay the deferred  purchase price of property or services (other than any such obligations incurred in the ordinary course of  such Person’s business maturing less than one year from the creation thereof), including any earnout  -16- 

 

obligations or similar deferred or contingent purchase price obligations of such Person incurred or created  in connection with any acquisition to the extent such obligations are a liability on the consolidated  balance sheet of such Person in accordance with GAAP;  (3) the principal of and premium (if any) in respect of obligations of such Person evidenced by bonds (excluding surety bonds), debentures, notes or other similar instruments (other than  an operating lease, synthetic lease or similar arrangement);  (4) the principal of and premium (if any) in respect of indebtedness created or arising under any conditional sale or other title retention agreement (other than an operating lease) with respect to  property acquired by such Person (even though the rights and remedies of the seller or lender under such  agreement in the event of default are limited to repossession or sale of such property);   (5) the principal component of all Capitalized Lease Obligations of such Person; (6) the principal component of all obligations of such Person, contingent or otherwise, as an account party under acceptances, surety bonds or similar arrangements (other than  obligations arising out of endorsements of instruments for deposit or collection in the ordinary course of  business);  (7) the principal component of all unpaid reimbursement obligations of such Person  in respect of drawings under letters of credit and surety bonds and the face amount of all letters of credit  issued for the account of such Person;  (8) the principal component of Indebtedness of other Persons to the extent  Guaranteed by such Person in respect of obligations of the kind referred to in clauses (1) through (7) of  this definition;  (9) without limitation of the foregoing, the principal component of all obligations of  the kind referred to in clauses (1) through (8) of this definition secured by (or for which the holder of such  obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property  (including accounts and contract rights) owned by such Person, whether or not such Person has assumed  or become liable for the payment of such obligation; provided that the amount of any such obligation  shall be deemed to be the lesser of the face principal amount thereof and the Fair Market Value of the  property subject to such Lien; and   (10) the principal component of all obligations of such Person in respect of Hedging  Obligations; provided that for purposes of Section 4.09 and clause (4) of Section 6.01(a), the amount of  “Indebtedness” included with respect to any such Hedging Obligations shall be based on the net  termination value thereof;   provided that in the case of clauses (4) through (10) of this definition, such obligations  shall constitute “Indebtedness” solely for the purposes of determining compliance with the covenant  described under Section 4.09, the definition of “Permitted Liens” and clause (4) of Section 6.1(a).  Notwithstanding the foregoing, overdrafts by the Company and its Restricted  Subsidiaries in the ordinary course of business in connection with cash management (and not working  capital) and trade letter of credit with a maturity of less than 180 days issued in the ordinary course of  business shall not constitute Indebtedness.  Notwithstanding the foregoing, (i) money borrowed and set aside at the time of the  Incurrence of any Indebtedness in order to pre-fund the payment of interest on such Indebtedness shall not  -17- 

 

-18- be deemed to be “Indebtedness”; provided that such money is held to secure the payment of such interest  and (ii) for the avoidance of doubt, undrawn commitments under any revolving credit facility will not be  considered Indebtedness.  Notwithstanding the foregoing, the amount of any Indebtedness outstanding as of any  date shall (i) be the accreted value thereof in the case of any Indebtedness issued with original issue  discount or the aggregate principal amount outstanding in the case of Indebtedness issued with interest  payable in kind and (ii) include any interest (or in the case of Preferred Stock, dividends) thereon that is  more than 30 days past due; provided that, in connection with the purchase by the Company or any  Restricted Subsidiary of any business, the term “Indebtedness” will exclude post-closing payment  adjustments to which the 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 until  such obligations become due and payable. Except to the extent provided in the preceding sentence, the  amount of any Indebtedness that is convertible into or exchangeable for Capital Stock of the Company  outstanding as of any date shall be deemed to be equal to the principal and premium, if any, in respect of  such Indebtedness, notwithstanding the provisions of GAAP (including Accounting Standards  Codification Topic 470-20, Debt—Debt with Conversion and Other Options).   “Indenture” means this Indenture, as amended or supplemented from time to time.  “Independent Financial Advisor” means an accounting, appraisal, investment banking  firm or consultant to Persons engaged in Similar Businesses of nationally recognized standing that is, in  the good faith judgment of the Company, qualified to perform the task for which it has been engaged.  “Initial Notes” has the meaning set forth in the recitals hereto.  “Interest Payment Date” means May 15 and November 15 of each year to the stated  maturity of the Notes, commencing May 15, 2022.   “Interest Rate Agreement” means, with respect to any Person, any interest rate future or  forward, swap or option, cap, collar or other agreement or arrangement designed to protect against  fluctuations in interest rates and any other similar agreement or arrangement as to which such Person is  party or a beneficiary.  “Investment” means, with respect to any Person, all investments by such Person in other  Persons (including Affiliates) in the form of any direct or indirect advance, loan or other extensions of  credit (including by way of Guarantee or similar arrangement, but excluding advances or extensions of  credit to customers in the ordinary course of business, or any debt or extension of credit represented by a  bank deposit (other than a time deposit)) or capital contribution to (by means of any transfer of cash or  other property to others or any payment for property or services for the account or use of others), or any  purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by, such Person  and all other items that are or would be classified as investments on a balance sheet prepared in  accordance with GAAP; provided that none of the following will be deemed to be an Investment:  (1) Hedging Obligations entered into in the ordinary course of business and in compliance with this Indenture;  (2) endorsements of negotiable instruments and documents in the ordinary course of business; and  

 

(3) an acquisition of assets, Capital Stock or other securities by the Company or a Subsidiary for consideration to the extent such consideration consists of Common Stock of the  Company.  For purposes of Section 4.08 and Section 4.13,  (1) Investment will include the portion (proportionate to the Company’s equity interest in a Restricted Subsidiary that is to be designated an Unrestricted Subsidiary) of the Fair  Market Value of the net assets of such Restricted Subsidiary at the time that such Restricted  Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a redesignation  of such Subsidiary as a Restricted Subsidiary, the Company will be deemed to continue to have a  permanent Investment in an Unrestricted Subsidiary in an amount (if positive) equal to (a) the  Company’s aggregate Investment in such Subsidiary as of 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 that such Subsidiary is so redesignated a  Restricted Subsidiary;   (2) any property transferred to or from an Unrestricted Subsidiary will be valued at its Fair Market Value at the time of such transfer; and  (3) if the Company or any Restricted Subsidiary sells or otherwise disposes of any Voting Stock of any Restricted Subsidiary such that, after giving effect to any such sale or  disposition, such entity is no longer a Subsidiary of the Company, the Company shall be deemed  to have made an Investment on the date of any such sale or disposition equal to the Fair Market  Value of the Capital Stock of such Subsidiary not sold or disposed of.   “Investment Grade Rating” means a rating equal to or higher than (w) Baa3 (or the  equivalent) by Moody’s, (x) BBB- (or the equivalent) by S&P, or (y) BBB- (or the equivalent) by Fitch,  or (z) any other equivalent rating by any Rating Agency, in each case, with a stable or better outlook.  “Issue Date” means November 18, 2021.  “Lien” means, with respect to any asset, any mortgage, lien (statutory or otherwise),  pledge, hypothecation, charge, security interest, preference, priority or encumbrance of any kind in  respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law,  including any conditional sale or other title retention agreement, any lease in the nature thereof or  sale/leaseback, or any other agreement to sell or give a security interest in respect of such asset; provided  that in no event shall an operating lease be deemed to constitute a Lien.  “Limited Condition Transaction” means (1) any Investment or acquisition (whether by  merger, amalgamation, consolidation or other business combination or the acquisition of Capital Stock or  otherwise and which may include, for the avoidance of doubt, a transaction that may constitute a Change  of Control), whose consummation is not conditioned on the availability of, or on obtaining, third-party  financing, (2) any redemption, repurchase, defeasance, satisfaction and discharge or repayment of  Indebtedness, Disqualified Stock or Preferred Stock requiring irrevocable notice in advance of such  redemption, repurchase, defeasance, satisfaction and discharge or repayment and (3) any asset sale or  disposition.  “Long Derivative Instrument” means a Derivative Instrument (i) the value of which  generally increases, and/or the payment or delivery obligations under which generally decrease, with  positive changes to the Performance References and/or (ii) the value of which generally decreases, and/or  -19- 

 

-20- the payment or delivery obligations under which generally increase, with negative changes to the  Performance References.  “Material Acquisition” means any acquisition, or a series of related acquisitions by the  Company or any Restricted Subsidiary, of (a) Capital Stock in any Person if, after giving effect thereto,  such Person will become a Restricted Subsidiary or (b) assets comprising all or substantially all the assets  of (or all or substantially all the assets constituting a business unit, division, product line or line of  business of) any Person; provided that the aggregate consideration therefor (including Indebtedness  assumed in connection therewith, all obligations in respect of deferred purchase price (including  obligations under any purchase price adjustment, as estimated in good faith by the Company, but  excluding earnout, contingent payment or similar payments) and all other consideration payable in  connection therewith (including payment obligations in respect of noncompetition agreements or other  arrangements representing acquisition consideration)) exceeds $100.0 million.  “Material Indebtedness” means any Indebtedness of the Company or any Guarantor in an  aggregate principal amount equal to or greater than $75.0 million.  “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  (including any cash payments received by way of deferred payment of principal pursuant to a note or  installment receivable or otherwise (other than interest) and net proceeds from the sale or other  disposition of any securities or other assets received as consideration, but only as and when received, but  excluding any other consideration received in the form of assumption by the acquiring Person of  Indebtedness or other obligations relating to the properties or assets that are the subject of such Asset  Disposition or received in any other non-cash form) therefrom, in each case net of:  (1) all legal, accounting, investment banking, title and recording tax expenses, commissions and other fees and expenses (including brokerage and sales commissions) Incurred,  and all federal, state, provincial, foreign and local taxes paid or required to be paid or accrued as a  liability under GAAP (after taking into account any available tax credits or deductions and any  tax sharing agreements), as a consequence of such Asset Disposition;  (2) all payments made on any Indebtedness that is secured by any assets subject to such Asset Disposition, in accordance with the terms of any Lien upon such assets, or which must  by its terms, or in order to obtain a necessary consent to such Asset Disposition, or by applicable  law be repaid out of the proceeds from such Asset Disposition;   (3) all distributions and other payments required to be made to noncontrolling interest holders in Subsidiaries or Permitted Joint Ventures as a result of such Asset Disposition;  and  (4) the deduction of appropriate amounts to be provided by the seller as a reserve, in accordance with GAAP, against any liabilities associated with the assets disposed of in such  Asset Disposition and retained by the Company or any Restricted Subsidiary after such Asset  Disposition.  “Net Cash Proceeds,” with respect to any issuance or sale of Capital Stock, means the  cash proceeds of such issuance or sale, net of attorneys’ fees, accountants’ fees, underwriters’ or  placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other fees  

 

and expenses and charges actually incurred in connection with such issuance or sale and net of taxes paid  or payable as a result of such issuance or sale (after taking into account any available tax credits or  deductions and any tax sharing arrangements).   “Net Leverage Ratio,” as of any date of determination, means the ratio of (x)  Consolidated Total Debt (including, without duplication, any Reserved Indebtedness Amount) as of such  date less Netted Cash as of such date, to (y) Consolidated EBITDA of the Company and its Restricted  Subsidiaries for the applicable Test Period.  “Net Short” means, with respect to a Holder or beneficial owner, as of a date of  determination, either (i) the value of its Short Derivative Instruments exceeds the sum of (x) the value of  its Notes plus (y) the value of its Long Derivative Instruments as of such date of determination or (ii) it is  reasonably expected that such would have been the case were a “Failure to Pay” or “Bankruptcy Credit  Event” (each as defined in the 2014 ISDA Credit Derivatives Definitions) to have occurred with respect  to the Company or any Guarantor immediately prior to such date of determination.  “Netted Cash” means, at any date of determination, the aggregate amount of all  unrestricted cash and Cash Equivalents of the Company and its Restricted Subsidiaries.   “Non-Guarantor Subsidiary” means any Restricted Subsidiary that is not a Guarantor.  “Non-Recourse Debt” means Indebtedness of a Person:  (1) as to which neither the Company nor any Restricted Subsidiary (a) provides any Guarantee or credit support of any kind (including any undertaking, Guarantee, indemnity,  agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable  (as a guarantor or otherwise);   (2) no default with respect to which (including any rights that the holders thereof may have to take enforcement action against an Unrestricted Subsidiary) would permit (upon  notice, lapse of time or both) any holder of any other Indebtedness of the Company or any  Restricted Subsidiary to declare a default under such other Indebtedness or cause the payment  thereof to be accelerated or payable prior to its Stated Maturity; and   (3) the explicit terms of which provide there is no recourse against any of the assets of the Company or its Restricted Subsidiaries, except that Standard Securitization Undertakings  shall not be considered recourse.  “Note Guarantee” means, individually, any Guarantee of payment of the Notes and the  Company’s other Obligations under this Indenture by a Guarantor pursuant to the terms of this Indenture  and any supplemental indenture thereto, and, collectively, all such Guarantees.  “Notes” means the Initial Notes and more particularly means any Note authenticated and  delivered under this Indenture. For all purposes of this Indenture, the term “Notes” shall also include any  Additional Notes that may be issued under a supplemental indenture and Notes to be issued or  authenticated upon transfer, replacement or exchange of Notes.  “Obligations” means any principal, interest (including any interest accruing subsequent  to the filing of a petition in bankruptcy, reorganization or similar proceeding at the rate provided for in the  documentation with respect thereto, whether or not such interest is an allowed claim under applicable  state, federal or foreign law), other monetary obligations, penalties, fees, indemnifications,  reimbursements (including reimbursement obligations with respect to letters of credit and banker’s  -21- 

 

-22- acceptances), damages and other liabilities, and Guarantees of payment of such principal, interest,  penalties, fees, indemnifications, reimbursements, damages and other liabilities, payable under the  documentation governing any Indebtedness.  “Offering Memorandum” means the offering memorandum dated November 10, 2021  related to the offer and sale of the Initial Notes.  “Offer to Purchase” means an Asset Disposition Offer or a Change of Control Offer.  “Officer” means the Chair of the Board, the Chief Executive Officer, the President, the  Chief Financial Officer, any Executive Vice President, Senior Vice President or Vice President, the  Treasurer or the Secretary of the Company or, in the event that the Company is a partnership or a limited  liability company that has no such officers, a person duly authorized under applicable law by the general  partner, managers, members or a similar body to act on behalf of the Company. “Officer” of any  Guarantor has a correlative meaning.  “Officers’ Certificate” means a certificate signed by two Officers of the Company, one of  whom is the principal executive officer, the President, the principal financial officer, the treasurer or the  principal accounting officer.  “Opinion of Counsel” means a written opinion from legal counsel, who may be an  employee of or counsel to the Company or other counsel who is reasonably acceptable to the Trustee.  “Pari Passu Indebtedness” means Indebtedness that ranks equally in right of payment to  the Notes, in the case of the Company, or the Note Guarantees, in the case of any Guarantor (without  giving effect to collateral arrangements).  “Permitted Bond Hedge” means any net-settled call options or capped call options  referencing the Company’s Common Stock purchased by the Company in connection with the issuance of  convertible or exchangeable debt securities by the Company or any Restricted Subsidiary to hedge the  Company’s or such Restricted Subsidiary’s obligations to deliver Common Stock and/or pay cash under  such Indebtedness, which call options are either “capped” or are purchased concurrently with the sale by  the Company of a call option or options in respect of its Common Stock, in either case on terms that are  customary for “call spread” transactions entered in connection with the issuance of convertible or  exchangeable debt securities.  “Permitted Holders” means (a) the Section 16 Officers and (b) any “group” (as such term  is used in Sections 13(d) and 14(d) of the Exchange Act) which includes and is under the general  direction of any Section 16 Officer; provided that, without giving effect to the existence of such group or  any other group, the Persons described in clause (a), collectively, beneficially own Voting Stock  representing more than 50% of the total voting power of the Voting Stock of the Company held by such  group.  “Permitted Investment” means any Investment by the Company or any Restricted  Subsidiary in:  (1) the Company or a Restricted Subsidiary (other than a Receivables Entity); (2) any Investment by the Company or any of its Restricted Subsidiaries in a Person that is engaged in a Similar Business if as a result of such Investment:  (a) such Person becomes a Restricted Subsidiary; or 

 

-23- (b) such Person, in one transaction or a series of related transactions, is merged or consolidated with or into, or transfers or conveys all or substantially all of its  assets to, or is liquidated into, the Company or a Restricted Subsidiary,  and, in each case, any Investment held by such Person; provided that such Investment  was not acquired by such Person in contemplation of such acquisition, merger,  consolidation or transfer;  (3) cash and Cash Equivalents; (4) receivables owing to the Company or any Restricted Subsidiary created or acquired in the ordinary course of business and payable or dischargeable in accordance with  customary trade terms; provided, however, that such trade terms may include such concessionary  trade terms as the Company or any such Restricted Subsidiary deems reasonable under the  circumstances;   (5) payroll and similar advances to officers and employees in the ordinary course of business;  (6) loans or advances to employees of the Company or any Restricted Subsidiary in the ordinary course of business consistent with past practices (including for travel, entertainment  and relocation expenses) in an aggregate amount not to exceed the greater of (x) $21.0 million  and (y) 5.0% of Consolidated EBITDA at any one time outstanding (without giving effect to the  forgiveness of any such loan);   (7) any Investment 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 settlements, compromises or resolutions of  litigation, arbitration or other disputes with such issuer; 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;  (8) Investments made as a result of the receipt of non-cash consideration from an Asset Disposition that was made pursuant to and in compliance with Section 4.16;  (9) Investments in existence on the Issue Date; (10) Hedging Obligations Incurred in compliance with Section 4.09; (11) Guarantees issued in accordance with Section 4.09 or Section 4.11; (12) Investments in Additional Assets made with the proceeds from any Asset Disposition that are applied pursuant to clauses (C) or (D) of Section 4.16(b);  (13) Investments by the Company or a Restricted Subsidiary in a Receivables Entity or any Investment by a Receivables Entity in any other Person, in each case, in connection with a  Permitted Receivables Financing; provided, however, that any Investment in a Receivables Entity  

 

-24- by the Company or a Restricted Subsidiary is in the form of a Purchase Money Note or a  contribution of additional Receivables;   (14) Investments consisting of earnest money deposits in connection with an Investment permitted by this Indenture;  (15) advances to suppliers of amounts provided by customers for the purchase of materials and the preparation of goods and inventory in respect of customer contracts entered into  in the ordinary course of business;  (16) Investments in Permitted Joint Ventures in an aggregate amount outstanding at the time of each such Investment not to exceed the greater of (x) $65.0 million and (y) 15.0% of  Consolidated EBITDA outstanding at the time of such Investment (with the Fair Market Value of  each such Investment being measured at the time made and without giving effect to subsequent  changes in value);   (17) Investments in Unrestricted Subsidiaries in an aggregate amount outstanding at the time of each such Investment not to exceed the greater of (x) $65.0 million and (y) 15.0% of  Consolidated EBITDA outstanding at the time of such Investment (with the Fair Market Value of  each such Investment being measured at the time made and without giving effect to subsequent  changes in value);  (18) Investments by the Company or any of its Restricted Subsidiaries, together with all other Investments pursuant to this clause (18), in an aggregate amount outstanding at the time  of each such Investment not to exceed the greater of (x) $105.0 million and (y) 25.0% of  Consolidated EBITDA outstanding at the time of such Investment (with the Fair Market Value of  each such Investment being measured at the time made and without giving effect to subsequent  changes in value);  (19) deposit accounts and securities accounts maintained in the ordinary course of business, and to the extent constituting an Investment, Cash Management Obligations and Cash  Pooling Agreements; and  (20) any Investment, so long as immediately after giving effect to such Investment, the Net Leverage Ratio on the date of the making of such Investment is less than 3.25 to 1.00.  “Permitted Joint Venture” means any joint venture in which the Company or any of its  Restricted Subsidiaries has an Investment and which is engaged in a Similar Business.  “Permitted Liens” means, with respect to any Person:  (1) (a) Liens securing Indebtedness and other obligations permitted to be Incurred under the provisions described in clause (1) of Section 4.09(b), including any letter of credit  facility related thereto, related Hedging Obligations and related banking services or cash  management obligations, (b) Liens on assets of Restricted Subsidiaries securing Guarantees of  Indebtedness and such other obligations of the Company referred to in clause (a), and (c) Liens  securing Cash Management Obligations, including Cash Pooling Agreements, and other cash  management services in the ordinary course of business;  (2) pledges or deposits by such Person under workers’ compensation laws, social security, unemployment insurance laws or similar legislation, or good faith deposits in connection  with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such  

 

-25- Person is a party, or deposits to secure public or statutory obligations of such Person or deposits  of cash or United States government bonds to secure surety or appeal bonds to which such Person  is a party, or deposits as security for contested taxes or for the payment of rent or deposits in  respect of letters of intent or purchase agreements, in each case Incurred in the ordinary course of  business;  (3) Liens imposed by law, including carriers’, warehousemen’s, mechanics’, materialmen’s and repairmen’s Liens, and Incurred in the ordinary course of business;  (4) Liens for taxes, assessments or other governmental charges not yet subject to penalties for nonpayment or that are being contested in good faith by appropriate proceedings,  provided appropriate reserves required pursuant to GAAP have been made in respect thereof;   (5) Liens in favor of issuers of surety or trade contracts, performance bonds or letters of credit or bankers’ acceptances or similar obligations issued pursuant to the request of and for  the account of such Person in the ordinary course of its business; provided, however, that such  letters of credit do not constitute Indebtedness;  (6) encumbrances, ground leases, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and other similar  purposes, or zoning, building codes or other restrictions (including, without limitation, minor  defects or irregularities in title and similar encumbrances) as to the use of real property or Liens  incidental to the conduct of the business of such Person or to the ownership of its properties that  do not in the aggregate materially adversely affect the value of said properties or materially  impair their use in the operation of the business of such Person;  (7) Liens securing Hedging Obligations that are Incurred in the ordinary course of business (and not for speculative purposes);  (8) leases, licenses, subleases and sublicenses of assets (including, without limitation, real property and intellectual property rights) that do not materially interfere with the  ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;  (9) judgment Liens not giving rise to an Event of Default and notices of lis pendens and associated rights related to such litigation;  (10) Liens for the purpose of securing the payment of all or a part of the purchase price of, or Capitalized Lease Obligations, mortgage financings, purchase money obligations or  other payments Incurred to finance assets or property (other than Capital Stock or other  Investments) acquired, constructed, improved or leased in the ordinary course of business;  provided that:  (a) the aggregate principal amount of Indebtedness secured by such Liens is otherwise permitted to be Incurred under this Indenture and does not exceed the cost of  the assets or property so acquired, constructed or improved and any fees, premiums, costs  and expenses related to such Incurrence; and  (b) such Liens are created within 180 days of construction, acquisition or improvement of such assets or property and do not encumber any other assets or property  of the Company or any Restricted Subsidiary other than such assets or property, assets  affixed or appurtenant thereto, improvements and accessions thereof and the proceeds  from the sale, disposition or casualty event thereof;  

 

-26- (11) Liens arising solely by virtue of any statutory or common law provisions relating to banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or other  funds maintained with a depositary institution;  (12) Liens arising from Uniform Commercial Code financing statement filings regarding operating leases entered into by the Company and its Restricted Subsidiaries in the  ordinary course of business;  (13) Liens existing on the Issue Date (other than Liens permitted under clause (1)); (14) Liens on property or shares of stock of a Person at the time such Person becomes a Restricted Subsidiary; provided, however, that such Liens are not created, Incurred or assumed  in connection with, or in contemplation of, such other Person becoming a Restricted Subsidiary;  provided, further, however, that any such Lien may not extend to any other property owned by  the Company or any Restricted Subsidiary;  (15) Liens on property at the time the Company or a Restricted Subsidiary acquired the property, including any acquisition by means of a merger or consolidation with or into the  Company or any Restricted Subsidiary; provided, however, that such Liens are not created,  Incurred or assumed in connection with, or in contemplation of, such acquisition; provided,  further, however, that such Liens may not extend to any other property owned by the Company or  any Restricted Subsidiary;  (16) Liens securing Indebtedness or other obligations of a Restricted Subsidiary owing to the Company or another Restricted Subsidiary (other than a Receivables Entity);  (17) Liens securing the Notes and the Note Guarantees; (18) Liens securing Refinancing Indebtedness Incurred to refinance, refund, replace, amend, extend or modify, as a whole or in part, Indebtedness that was previously so secured  pursuant to clauses (10), (13), (14), (15), (17), this clause (18) and clause (23) of this definition;  provided that any such Lien is limited to all or part of the same property or assets (plus assets  affixed or appurtenant thereto, improvements, accessions, proceeds or dividends or distributions  in respect thereof) that secured (or, under the written arrangements under which the original Lien  arose, could secure) the Indebtedness being refinanced or is in respect of property that is the  security for a Permitted Lien hereunder;  (19) any interest or title of a lessor under any Capitalized Lease Obligation or operating lease;  (20) Liens in favor of the Company or any Restricted Subsidiary; (21) Liens on assets owned by Foreign Subsidiaries of the Company; (22) Liens on assets transferred to a Receivables Entity or on assets of a Receivables Entity, in either case Incurred in connection with a Permitted Receivables Financing, including  Liens granted on any Qualified Receivables Account in favor of the financial institution  counterparty to the Permitted Receivables Financing;  (23) Liens securing Indebtedness (other than Subordinated Obligations and Guarantor Subordinated Obligations) in an aggregate principal amount which, when taken together with the  principal amount of any outstanding Refinancing Indebtedness Incurred to refinance Indebtedness  

 

that was previously so secured pursuant to this clause (23), will not exceed the greater of (x)  $160.0 million and (y) 37.5% of Consolidated EBITDA;  (24) Liens securing Indebtedness (other than Subordinated Obligations and Guarantor Subordinated Obligations); provided that on a pro forma basis for the Incurrence of such  Indebtedness and the application of the proceeds therefrom, the Secured Net Leverage Ratio  would not exceed 3.25 to 1.00 (or, to the extent Incurred in connection with any acquisition or  similar Investment not prohibited by this Indenture, the greater of (x) 3.25 to 1.00 and (y) the  Secured Net Leverage Ratio immediately prior to giving effect to such Incurrence), assuming, for  purposes of the calculation of the Secured Net Leverage Ratio, that any commitments with  respect to Indebtedness under any revolving Debt Facility permitted to be Incurred under clause  (1) of  Section 4.09(b) had been fully drawn on such date); (25) Liens in favor or customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary  course of business;   (26) Liens on insurance policies and proceeds thereof, or other deposits, to secure insurance premium financings;  (27) Liens on cash, Cash Equivalents or other property arising in connection with the defeasance, discharge or redemption of Indebtedness;  (28) Liens on Capital Stock or assets to be sold pursuant to an agreement entered into for the sale or disposition of all or substantially all of the Capital Stock or assets of a Restricted  Subsidiary in connection with any Asset Disposition or disposition of assets not constituting an  Asset Disposition, in each case permitted by the terms of this Indenture, pending the closing of  such sale or disposition; and  (29) 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.  “Permitted Receivables Financing” means (a) any Existing Receivables Financing and  (b) any Receivables Financing Transactions under which the aggregate principal amount of the proceeds  received by the Company or a Restricted Subsidiary from Persons other than the Company or a Restricted  Subsidiary does not exceed $250.0 million. “Permitted Reorganization” means any transaction or undertaking, including  Investments, in connection with internal reorganizations and or restructurings (including in connection  with tax planning and corporate reorganizations), so long as, after giving effect thereto, (a) the Guarantees  of the Notes, taken as a whole, are not materially impaired and (b) the Company shall not change its  jurisdiction of organization or formation in connection therewith to a jurisdiction outside of the United  States.   “Permitted Warrant” means any call option in respect of the Company’s Common Stock  sold by the Company concurrently with any Permitted Bond Hedge, which call option permits settlement  in cash at the option of the Company.  -27- 

 

“Person” means any individual, corporation, limited liability company, partnership, joint  venture, association, joint stock company, trust, unincorporated organization, government or any agency  or political subdivision thereof or any other entity.   “Preferred Stock,” as applied to the Capital Stock of any corporation, means Capital  Stock of any class or classes (however designated), which is preferred as to the payment of dividends, or  as to the distributions of assets upon any voluntary or involuntary liquidation or dissolution of such  corporation, over shares of Capital Stock of any other class of such corporation.  “pro forma basis” (and the making of any “pro forma adjustment”) means, with respect  to any determination of the Net Leverage Ratio, the Secured Net Leverage Ratio, the Consolidated  Coverage Ratio, Consolidated EBITDA or Consolidated Net Income (including component definitions  thereof), that each Specified Transaction shall be deemed to have occurred as of the first day of the Test  Period with respect to any test or covenant for which such calculation is being made and that:   (a) (i) in the case of (A) any disposition of all or substantially all of the Capital Stock of  any Restricted Subsidiary or any division and/or product line of the Company or any Subsidiary or (B)  any designation of a Restricted Subsidiary as an Unrestricted Subsidiary, income statement items  (whether positive or negative) attributable to the property or Person subject to such Specified Transaction,  shall be excluded as of the first day of the applicable Test Period with respect to any test or covenant for  which the relevant determination is being made and (ii) in the case of any acquisition, Investment and/or  designation of an Unrestricted Subsidiary as a Restricted Subsidiary described in the definition of the  term “Specified Transaction,” income statement items (whether positive or negative) attributable to the  property or Person subject to such Specified Transaction shall be included as of the first day of the  applicable Test Period with respect to any test or covenant for which the relevant determination is being  made; provided that any pro forma adjustment may be applied to any such test or covenant solely to the  extent that such adjustment is consistent with, subject to the limitations set forth in and without  duplication with respect to the application of, the definition of “Consolidated EBITDA,”  (b) any Expected Cost Savings shall be calculated on a pro forma basis as though such  Expected Cost Savings had been realized on the first day of the applicable Test Period and as if such  Expected Cost Savings were realized in full during the entirety of such period; provided that any pro  forma adjustment may be applied to any such test or covenant solely to the extent that such adjustment is  consistent with, subject to the limitations set forth in and without duplication with respect to the  application of, the definition of “Consolidated EBITDA,”  (c) any retirement or repayment of Indebtedness (other than normal fluctuations in  revolving Indebtedness Incurred for working capital purposes) shall be deemed to have occurred as of the  first day of the applicable Test Period with respect to any test or covenant for which the relevant  determination is being made, and   (d) any Indebtedness Incurred by the Company or any of its Restricted Subsidiaries in  connection therewith shall be deemed to have occurred as of the first day of the applicable Test Period  with respect to any test or covenant for which the relevant determination is being made; provided that (x)  if such Indebtedness has a floating or formula rate, such Indebtedness shall have an implied rate of  interest for the applicable Test Period for purposes of this definition determined by utilizing the rate that  is or would be in effect with respect to such Indebtedness at the relevant date of determination (taking into  account any interest hedging arrangements applicable to such Indebtedness), (y) interest on any obligation  with respect to any capital lease shall be deemed to accrue at an interest rate determined by an Officer of  the Company in good faith to be the rate of interest implicit in such obligation in accordance with GAAP  and (z) interest on any Indebtedness that may optionally be determined at an interest rate based upon a  -28- 

 

-29- factor of a prime or similar rate, any interbank offered rate or other rate shall be determined to have been  based upon the rate actually chosen, or if none, then based upon such optional rate chosen by the  Company.   “Purchase Money Note” means a promissory note of a Receivables Entity evidencing the  deferred purchase price of Receivables (and related assets) and/or a line of credit, which may be  irrevocable, from the Company or any Restricted Subsidiary in connection with a Permitted Receivables  Financing with a Receivables Entity, which deferred purchase price or line is repayable from cash  available to the Receivables Entity, other than amounts required to be established as reserves pursuant to  agreements, amounts paid to investors in respect of interest, principal and other amounts owing to such  investors and amounts paid in connection with the purchase of newly generated Receivables.  “Qualified Receivables Account” means any bank account, lock box or other deposit  account of the Company or any Restricted Subsidiary that is maintained primarily for the purpose of  receiving collections of transferred Receivables or other amounts owing with respect to Receivables  subject to a Receivables Financing Transaction. “Rating Agency” means (1) each of S&P, Moody’s and  Fitch or (2) if S&P, Moody’s or Fitch shall not make a rating on the Notes publicly available, a nationally  recognized statistical rating agency or agencies, as the case may be, selected by the Company (as certified  by a resolution of the Board of Directors) which shall be substituted for any or all of S&P, Moody’s or  Fitch, as the case may be.  “Ratings Decline Period” means, with respect to any Change of Control, the period that  (1) begins on the earlier of (a) the date of the first public announcement of the occurrence of such Change of Control or of the intention by the Company or a stockholder of the Company, as applicable, to effect such Change of Control or (b) the occurrence of such Change of Control and (2) ends on the 60th calendar day following consummation of such Change of Control; provided, however, that such period shall be extended for so long as the rating of the Notes, as noted by the applicable rating agency, is under publicly announced consideration for downgrade by the applicable rating agency. “Receivable” means a right to receive payment arising from a sale or lease of goods or  the performance of services by a Person pursuant to an arrangement with another Person pursuant to  which such other Person is obligated to pay for goods or services under terms that permit the purchase of  such goods and services on credit and shall include, in any event, any items of property that would be  classified as an “account,” “chattel paper,” “payment intangible” or “instrument” under the Uniform  Commercial Code as in effect in the State of New York and any “supporting obligations” as so defined.  For purposes of this Indenture, Assets related to Receivables may include (A) any collateral for  transferred Receivables (other than any interest in goods the sale of which gave rise to such Receivables)  and any agreements supporting or securing payment of transferred Receivables, (B) any service contracts  or other agreements associated with such Receivables and records relating to such Receivables, (C) any  Qualified Receivables Account and (D) proceeds of all of the foregoing.  “Receivables Entity” means a Wholly Owned Subsidiary (or another Person in which the  Company or any Restricted Subsidiary makes an Investment and to which the Company or any Restricted  Subsidiary transfers Receivables and related assets) which engages in no activities other than in  connection with the financing of Receivables and which is designated by the Senior Management of the  Company (as provided below) as a Receivables Entity:   (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 (excluding Guarantees of obligations (other than the principal of, and interest on, Indebtedness)  pursuant to Standard Securitization Undertakings);   (b) is recourse to or obligates the Company or any Restricted Subsidiary in any way other than pursuant to Standard Securitization Undertakings; or  (c) subjects any property or asset of the Company or any Restricted Subsidiary, 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 has any material contract, agreement, arrangement or understanding (except in connection with a Purchase Money  Note or Receivables Financing Transaction) other than on terms no less favorable to the  Company or such Restricted Subsidiary than those that might be obtained at the time from  Persons that are not Affiliates of the Company, other than fees payable in the ordinary course of  business in connection with servicing Receivables; 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 Senior Management of the Company shall be evidenced to the  Trustee by an Officers’ Certificate certifying that such designation complies with the foregoing  conditions.  “Receivables Fees” means any fees or interest paid to purchasers or lenders providing the  financing in connection with a Permitted Receivables Financing, Receivables Financing Transaction or  other similar arrangement, including any such amounts paid by discounting the face amount of  Receivables or participations therein transferred in connection with a Permitted Receivables Financing,  Receivables Financing Transaction or other similar arrangement, regardless of whether any such  transaction is structured as on-balance sheet or off-balance sheet or through a Restricted Subsidiary or an  Unrestricted Subsidiary.  “Receivables Financing Transactions” means (a) any sale by the Company or a  Restricted Subsidiary of Receivables and related assets to a Receivables Entity intended to be (and which  shall be treated for the purposes hereof as) a true sale transaction with customary limited recourse based  upon the collectability of the Receivables sold and the corresponding sale or pledge of such Receivables  and related assets (or an interest therein) by the Receivables Entity, in each case without any guarantee of  the collectability of such Receivables by the Company or any Restricted Subsidiary thereof (other than by  such Receivables Entity); and (b) (i) any sale by the Company or a Restricted Subsidiary of Receivables  and related assets under a factoring agreement that is intended to be (and which shall be treated for the  purposes hereof as) a true sale transaction with customary limited recourse based upon collectability of  the Receivables sold, without any guarantee by the Company and any other Restricted Subsidiary thereof  of the collectability of such Receivables and (ii) any sale or financing by any Foreign Subsidiary to or  with local buyers or lenders of Receivables and related assets in the ordinary course of business, in each  case without any guarantee by the Company or any Domestic Subsidiary.    “Record Date” for the interest payable on any applicable Interest Payment Date means  May 1 or November 1 (whether or not a Business Day) next preceding such Interest Payment Date.  -30- 

 

“Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance,  replace, exchange, renew, repay or extend, in whole or in part (including pursuant to any defeasance or  discharge mechanism) (collectively, “refinance,” “refinances” and “refinanced” shall each have a  correlative meaning), any Indebtedness existing on the Issue Date or Incurred in compliance with this  Indenture (or any combination thereof) (including additional Indebtedness Incurred to pay premiums  (including reasonable tender premiums, as determined in good faith by the Company), defeasance costs,  accrued interest and fees, costs and expenses in connection with any such refinancing) including  Indebtedness that refinances Refinancing Indebtedness; provided, however, that:  (1) (a) if the Stated Maturity of the Indebtedness being refinanced is earlier than the Stated Maturity of the Notes, the Refinancing Indebtedness has a Stated Maturity no earlier than  the Stated Maturity of the Indebtedness being refinanced or (b) if the Stated Maturity of the  Indebtedness being refinanced is later than the Stated Maturity of the Notes, the Refinancing  Indebtedness has a Stated Maturity at least 91 days later than the Stated Maturity of the Notes;   (2) the Refinancing Indebtedness has an Average Life at the time such Refinancing Indebtedness is Incurred that is equal to or greater than the Average Life of the Indebtedness  being refinanced;  (3) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with original issue discount, an aggregate issue price) that is equal to or less than the sum  of the aggregate principal amount (or if issued with original issue discount, the aggregate accreted  value) then outstanding of the Indebtedness being refinanced (plus, without duplication, any  additional Indebtedness Incurred to pay premiums required by the instruments governing such  existing Indebtedness or reasonable tender premiums (as determined in good faith by the  Company), defeasance costs, accrued interest and fees, costs and expenses in connection with any  such refinancing);  (4) if the Indebtedness being refinanced is subordinated in right of payment to the Notes or the Note Guarantees, such Refinancing Indebtedness is subordinated in right of payment  to the Notes or the Note Guarantees on terms, taken as a whole, at least as favorable to the  Holders as those contained in the documentation governing the Indebtedness being refinanced;  and  (5) Refinancing Indebtedness shall not include Indebtedness of a Non-Guarantor Subsidiary that refinances Indebtedness of the Company or a Guarantor.  “Refinancing Transactions” has the meaning set forth in the Offering Memorandum.  “Regulated Bank” means an Approved Commercial Bank that is (i) a U.S. depository  institution the deposits of which are insured by the Federal Deposit Insurance Corporation; (ii) a  corporation organized under section 25A of the U.S. Federal Reserve Act of 1913; (iii) a branch, agency  or commercial lending company of a foreign bank operating pursuant to approval by and under the  supervision of the Board of Governors under 12 CFR part 211; (iv) a non-U.S. branch of a foreign bank  managed and controlled by a U.S. branch referred to in clause (iii); or (v) any other U.S. or non-U.S.  depository institution or any branch, agency or similar office thereof supervised by a bank regulatory  authority in any jurisdiction.   “Responsible Officer” means, when used with respect to the Trustee, any officer within  the corporate trust department of the Trustee having direct responsibility for the administration of this  -31- 

 

Indenture, or any other officer to whom any corporate trust matter is referred because of such officer’s  knowledge of and familiarity with the particular subject.  “Restricted Investment” means any Investment other than a Permitted Investment.  “Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted  Subsidiary. Unless otherwise indicated, when used herein, the term “Restricted Subsidiary” shall refer to  a Restricted Subsidiary of the Company.  “S&P” means S&P Global Ratings, a business unit of S&P Global Inc., and any  successor to its rating agency business.  “Sale/Leaseback Transaction” means an arrangement relating to property now owned or  hereafter acquired whereby the Company or a Restricted Subsidiary transfers such property to a Person  (other than the Company or any of its Restricted Subsidiaries) and the Company or a Restricted  Subsidiary leases it from such Person.  “SEC” means the United States Securities and Exchange Commission.  “Section 16 Officer” means any officer of the Company that would be an “officer” of the  Company within the meaning of Rule 16a-1(f) under the Exchange Act.  “Secured Indebtedness” means any Indebtedness of the Company or any of its Restricted  Subsidiaries secured by a Lien.  “Secured Net Leverage Ratio” means, as of any date of determination, the ratio of (x)  Consolidated Secured Debt as of such date less Netted Cash as of such date to (y) Consolidated EBITDA  of the Company and its Restricted Subsidiaries for the applicable Test Period.  “Securities Act” means the Securities Act of 1933, as amended, and the rules and  regulations of the SEC promulgated thereunder.  “Senior Secured Credit Facilities” means the Credit Agreement dated as of the Issue  Date, by and among the Company, Kontoor International Sagl (formerly known as Lee Wrangler  International Sagl), the guarantors parties thereto, JPMorgan Chase Bank, N.A., as administrative agent,  and the lenders parties thereto from time to time, as the same may be amended, restated, modified,  renewed, refunded, replaced or refinanced in whole or in part from time to time (including, in each case,  increasing the amount loaned thereunder; provided that such additional Indebtedness is Incurred in  accordance with Section 4.09).  “Senior Management” means the Chief Executive Officer and the Chief Financial Officer  of the Company.  “Short Derivative Instrument” means a Derivative Instrument, (i) the value of which  generally decreases, and/or the payment or delivery obligations under which generally increase, with  positive changes to the Performance References and/or (ii) the value of which generally increases, and/or  the payment or delivery obligations under which generally decrease, with negative changes to the  Performance References.   “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 as of the Issue Date.  -32- 

 

“Similar Business” means any business conducted or proposed to be conducted by the  Company and its Restricted Subsidiaries on the Issue Date or any business that is similar, reasonably  related, incidental or ancillary thereto.  “Specified Transaction” means, with respect to any period, any merger, Investment,  disposition, Incurrence, assumption or repayment of Indebtedness, Restricted Payment or designation of a  Subsidiary as an Unrestricted Subsidiary or of an Unrestricted Subsidiary as a Subsidiary or other event  that by the terms of this Indenture requires such test or covenant to be calculated on a “pro forma basis.”  “Standard Securitization Undertakings” means representations, warranties, covenants  and indemnities entered into by the Company or any Restricted Subsidiary that are reasonably customary  in Receivables Financing Transactions.  “Stated Maturity” means, with respect to any Indebtedness, the date specified in the  agreement governing or certificate relating to such Indebtedness 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 not including any contingent obligations to repay, redeem or repurchase any  such principal prior to the date originally scheduled for the payment thereof.  “Subordinated Obligation” means any Indebtedness of the Company (whether  outstanding on the Issue Date or thereafter Incurred) that is subordinated or junior in right of payment to  the Notes pursuant to its terms.  “Subsidiary” of any Person means (a) any corporation, association or other business  entity (other than a partnership, joint venture, limited liability company or similar entity) of which more  than 50% of the total ordinary voting power of shares of Capital Stock is entitled (without regard to the  occurrence of any contingency) to vote in the election of directors, managers or trustees thereof (or  Persons performing similar functions) or (b) any partnership, joint venture, limited liability company or  similar entity of which more than 50% of the capital accounts, distribution rights, total equity and voting  interests or general or limited partnership interests, as applicable, is, in the case of clauses (a) and (b), at  the time owned or controlled, directly or indirectly, by (1) such Person, (2) such Person and one or more  Subsidiaries of such Person or (3) one or more Subsidiaries of such Person. Unless otherwise specified  herein, each reference to a Subsidiary will refer to a Subsidiary of the Company.   “Supply Chain Financing” means any agreement under which any bank, financial  institution or other person may from time to time provide any financial accommodation to the Company  or any Restricted Subsidiary in connection with trade payables of the Company or any Restricted  Subsidiary, in each case issued for the benefit of any such bank, financial institution or such other person  that has acquired such trade payables pursuant to “supply chain” or other similar financing for vendors  and suppliers of the Company or any Restricted Subsidiaries.  “Test Period” means, with respect to any determination date, the period of the most  recent four consecutive fiscal quarters ending prior to such determination date for which internal financial  statements of the Company prepared on a consolidated basis in accordance with GAAP are available.  “Transfer Restricted Notes” means Definitive Notes and any other Notes that bear or are  required to bear the Restricted Notes Legend.  “Treasury Rate” means as of any redemption date of Notes the yield to maturity at the  time of computation of United States Treasury securities with a constant maturity (as compiled and  published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly  -33- 

 

-34- available at least two Business Days prior to the redemption date (or, if such Statistical Release is no  longer published, any publicly available source or similar market data)) most nearly equal to the period  from the redemption date to November 15, 2024; provided, however, that if the period from the  redemption date to November 15, 2024 is not equal to the constant maturity of a United States Treasury  security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear  interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United  States Treasury securities for which such yields are given, except that if the period from the redemption  date to November 15, 2024 is less than one year, the weekly average yield on actually traded United  States Treasury securities adjusted to a constant maturity of one year will be used.  “Trustee” means U.S. Bank National Association, as trustee, until a successor replaces it  in accordance with the applicable provisions of this Indenture and thereafter means the successor serving  hereunder.   “Unrestricted Subsidiary” means:  (1) any Subsidiary of the Company which at the time of determination shall be designated an Unrestricted Subsidiary by the Board of Directors of the Company pursuant to this  Indenture; and  (2) any Subsidiary of an Unrestricted Subsidiary. “U.S.” means the United States of America.  “Voting Stock” of a Person means all classes of Capital Stock of such Person then  outstanding and normally entitled to vote in the election of directors, managers or trustees, as applicable,  of such Person.  “Wholly Owned Subsidiary” means a Restricted Subsidiary, all of the Capital Stock of  which (other than directors’ qualifying shares) is owned by the Company or another Wholly Owned  Subsidiary.  Section 1.02 Other Definitions.  Term Defined in Section  “Acceptable Commitment” ......................................................................................  4.16(b)  “Agent Members” ....................................................................................................  2.1(c) of Appendix A  “Affiliate Transaction” ............................................................................................  4.14(a)  “Applicable Procedures”  .......................................................................................  1.1(a) of Appendix A  “Asset Disposition Offer” ........................................................................................  4.16(c)  “Asset Disposition Offer Amount” ..........................................................................  4.16(c)  “Asset Disposition Offer Period” ............................................................................  4.16(c)  “Asset Disposition Purchase Date” ........................................................................  4.16(c)  “Authentication Order” ...........................................................................................  2.02  “Change of Control Offer” ......................................................................................  4.15(a)  “Change of Control Payment” ................................................................................  4.15(a)  “Change of Control Payment Date” .......................................................................  4.15(a)  “Clearstream”  ........................................................................................................  1.1(a) of Appendix A  “Covenant Defeasance” ..........................................................................................  8.03  “Default Direction” ................................................................................................  6.01(b)  “Definitive Notes Legend”.......................................................................................  2.2(e) of Appendix A  

 

-35- Term Defined in Section  “Designation”  .........................................................................................................  4.13  “Directing Holder” .................................................................................................  6.01(b)  “Distribution Compliance Period” .........................................................................  1.1(a) of Appendix A  “ERISA Legend” ......................................................................................................  2.2(e) of Appendix A  “Euroclear” .............................................................................................................  1.1(d) of Appendix A  “Event of Default” ...................................................................................................  6.01(a)  “Excess Proceeds” ..................................................................................................  4.16(c)  “Expiration Date” ...................................................................................................  1.05(j)  “Foreign Disposition” ............................................................................................ ̀  4.16(b)  “Global Note” .........................................................................................................  2.1(b) of Appendix A  “Global Notes Legend” ...........................................................................................  2.2(e) of Appendix A  “Guaranteed Obligations” ......................................................................................  10.01(a)  “IAI”  .......................................................................................................................  1.1(a) of Appendix A  “IAI Global Note”  ..................................................................................................  2.1(b) of Appendix A  “Legal Defeasance” ................................................................................................  8.02(a)  “Note Register” .......................................................................................................  2.03(a)  “Noteholder Direction” ..........................................................................................  6.01(b)  “Paying Agent” .......................................................................................................  2.03(a)  “Position Representation” ......................................................................................  6.01(b)  “LCT Election” ........................................................................................................  1.04  “LCT Test Date” ......................................................................................................  1.04  “QIB”  .....................................................................................................................  1.1(a) of Appendix A  “Reclassifiable Covenants” ....................................................................................  1.04  “Reclassifiable Item” ..............................................................................................  1.04  “Registrar” ..............................................................................................................  2.03(a)  “Regulation S”  ........................................................................................................  1.1(a) of Appendix A  “Regulation S Global Note”  ...................................................................................  2.1(b) of Appendix A  “Regulation S Notes”  .............................................................................................  2.1(a) of Appendix A  “Reinstatement Date” ..............................................................................................  4.17(b)  “Reserved Indebtedness Amount” ...........................................................................  1.04  “Restricted Payment” ..............................................................................................  4.08(a)  “Restricted Notes Legend” ......................................................................................  2.2(e) of Appendix A  “Revocation”  ..........................................................................................................  4.13(b)  “Rule 144”  ..............................................................................................................  1.1(a) of Appendix A  “Rule 144A”  ...........................................................................................................  1.1(a) of Appendix A  “Rule 144A Global Note”  .......................................................................................  2.1(b) of Appendix A  “Rule 144A Notes”  .................................................................................................  2.1(a) of Appendix A  “Second Commitment” ............................................................................................  4.16(b)  “Successor Company” .............................................................................................  5.01(a)  “Successor Guarantor” ...........................................................................................  5.01(c)  “Suspended Covenants” ..........................................................................................  4.17(a)  “Suspension Date” ..................................................................................................  4.17(a)  “Suspension Period” ...............................................................................................  4.17(b)  “Unrestricted Global Note” ....................................................................................  1.1(a) of Appendix A  “Verification Covenant” ..........................................................................................  6.01(b)  Section 1.03 Rules of Construction.  Unless the context otherwise requires:  

 

(1) a term defined in Section 1.01 or 1.02 has the meaning assigned to it therein; (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;  (3) “or” is not exclusive; (4) words in the singular include the plural, and words in the plural include the singular;  (5) provisions apply to successive events and transactions; (6) unless the context otherwise requires, any reference to an “Appendix,” “Article,” “Section,” “clause,” “Schedule” or “Exhibit” refers to an Appendix, Article, Section, clause,  Schedule or Exhibit, as the case may be, of this Indenture;  (7) the words “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not any particular Article, Section, clause or other subdivision;  (8) “including” means including without limitation; (9) references to sections of, or rules under, the Securities Act or the Exchange Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the  SEC from time to time;  (10) unless otherwise provided, references to agreements and other instruments shall be deemed to include all amendments and other modifications to such agreements or instruments,  but only to the extent such amendments and other modifications are not prohibited by the terms of  this Indenture; and  (11) in the event that a transaction meets the criteria of more than one category of permitted transactions or listed exceptions, the Company may classify such transaction as it, in its  sole discretion, determines.  Section 1.04 Limited Condition Transactions and Certain Financial Calculations.  When calculating the availability under any basket, test or ratio under this Indenture or  compliance with any provision of this Indenture in connection with any Limited Condition Transaction  and any actions or transactions related thereto (including Restricted Payments, Investments, the  incurrence of Indebtedness or Liens and repayments), in each case, at the option of the Company (the  Company’s election to exercise such option, an “LCT Election”), the date of determination for availability  under any such basket, test or ratio and whether any such action or transaction is permitted (or any  requirement or condition therefor is complied with or satisfied (including as to the absence of any  continuing Default or Event of Default)) under this Indenture shall be deemed to be the date (the “LCT  Test Date”) the definitive agreement for such Limited Condition Transaction is entered into, if, after  giving pro forma effect to the Limited Condition Transaction and any actions or transactions related  thereto (including Restricted Payments, Investments, the incurrence of Indebtedness or Liens and  repayments) and any related pro forma adjustments, the Company or any of its Restricted Subsidiaries  would have been permitted to take such actions or consummate such transactions on the relevant LCT  Test Date in compliance with such ratio, test or basket (and any related requirements and conditions),  such ratio, test or basket (and any related requirements and conditions) shall be deemed to have been  complied with (or satisfied) for all purposes; provided, that compliance with such ratios, test or baskets  -36- 

 

(and any related requirements and conditions) shall not be determined or tested at any time after the  applicable LCT Test Date for such Limited Condition Transaction and any actions or transaction related  thereto (including Restricted Payments, Investments, the incurrence of Indebtedness or Liens and  repayments).  For the avoidance of doubt, if the Company has made an LCT Election, (1) if any of the ratios, tests or  baskets for which compliance was determined or tested as of the LCT Test Date would at any time after  the LCT Test Date have been exceeded or otherwise failed to have been complied with as a result of  fluctuations in any such ratio, test or basket, including due to fluctuations in Consolidated EBITDA of the  Company or the Person subject to such Limited Condition Transaction, such baskets, tests or ratios will  not be deemed to have been exceeded or failed to have been complied with as a result of such  fluctuations; (2) if any related requirements and conditions (including as to the absence of any continuing  Default or Event of Default) for which compliance or satisfaction was determined or tested as of the LCT  Test Date would at any time after the LCT Test Date not have been complied with or satisfied (including  due to the occurrence or continuation of a Default or Event of Default), such requirements and conditions  will not be deemed to have been failed to be complied with or satisfied (and such Default or Event of  Default shall be deemed not to have occurred or be continuing); and (3) in calculating the availability  under any ratio, test or basket in connection with any action or transaction unrelated to such Limited  Condition Transaction following the relevant LCT Test Date and prior to the earlier of the date on which  such Limited Condition Transaction is consummated or the date that the definitive agreement or date for  redemption, purchase or repayment specified in an irrevocable notice for such Limited Condition  Transaction is terminated, expires or passes, as applicable, without consummation of such Limited  Condition Transaction, any such ratio, test or basket shall be determined or tested giving pro forma effect  to such Limited Condition Transaction, including any incurrence of Indebtedness related thereto (any  such Indebtedness, the “Reserved Indebtedness Amount”).   In addition, for purposes of determining the permissibility of any action, change, transaction or event that  requires a calculation of any financial ratio or financial test and/or the amount of Consolidated EBITDA  or Consolidated Net Income, such financial ratio, financial test or amount shall, subject to the  immediately preceding two paragraphs, be calculated at the time such action is taken, such change is  made, such transaction is consummated or such event occurs, as the case may be, and no Default or Event  of Default shall be deemed to have occurred solely as a result of a change in such financial ratio, financial  test or amount occurring after the time such action is taken, such change is made, such transaction is  consummated or such event occurs, as the case may be. Notwithstanding anything to the contrary herein,  in the event an item of Indebtedness (or any portion thereof) is incurred or issued, any Lien is incurred,  any Restricted Payment is made or any other transaction is undertaken in reliance on a ratio basket based  on the Consolidated Coverage Ratio, the Net Leverage Ratio or the Secured Net Leverage Ratio, such  ratio(s) shall be calculated with respect to such incurrence, issuance, Restricted Payment or other  transaction without giving effect to amounts being utilized under any other basket (other than a ratio  basket based on the Consolidated Coverage Ratio, the Net Leverage Ratio or the Secured Net Leverage  Ratio, and including, for purposes of the determination of ratio-based amounts under clause (24) of the  definition of “Permitted Liens,” any Incurrences of Indebtedness under clause (1) of Section 4.09(b)) on  the same date. Each item of Indebtedness that is incurred or issued, each Lien incurred, each Restricted  Payment that is made and each other transaction undertaken will be deemed to have been incurred, issued,  made or taken first, to the extent available, pursuant to the relevant ratio-based test.   Notwithstanding anything to the contrary in this Indenture, but subject to the preceding paragraphs under  this caption and the last paragraph of the definition of “pro forma basis,” all financial ratios and tests  (including the Secured Net Leverage Ratio, the Net Leverage Ratio, the Consolidated Coverage Ratio and  the amount of Consolidated Net Income and Consolidated EBITDA contained herein that are calculated  with respect to any applicable Test Period during which any Specified Transaction occurs) shall be  -37- 

 

calculated with respect to such applicable Test Period and such Specified Transaction on a pro forma  basis. Further, if since the beginning of any such applicable Test Period and on or prior to the date of any  required calculation of any financial ratio or test (x) any Specified Transaction has occurred or (y) any  Person that subsequently became a Restricted Subsidiary or was merged, amalgamated or consolidated  with or into the Company or any of its Restricted Subsidiaries since the beginning of such applicable Test  Period has consummated any Specified Transaction, then, in each case, any applicable financial ratio or  test shall be calculated on a pro forma basis for such applicable Test Period as if such Specified  Transaction had occurred at the beginning of the applicable Test Period.  For purposes of determining compliance with Section 4.09 or Section 4.10 or the definition of “Permitted  Liens,” if any Indebtedness, Preferred Stock, Disqualified Stock or Lien is created or Incurred in reliance  on a basket measured by reference to a percentage of Consolidated EBITDA, and any refinancing or  replacement thereof would cause the percentage of Consolidated EBITDA to be exceeded if calculated  based on the Consolidated EBITDA on the date of such refinancing or replacement, such percentage of  Consolidated EBITDA will be deemed not to be exceeded so long as the principal amount of such  refinancing or replacement Indebtedness, Preferred Stock, Disqualified Stock or other obligation does not  exceed the sum of (x) the amount sufficient to repay the principal amount of such Indebtedness, Preferred  Stock, Disqualified Stock or other obligation being refinanced or replaced, (y) the amount necessary to  pay accrued and unpaid interest, fees, underwriting discounts and expenses, including any premium and  defeasance costs Incurred in connection with such refinancing or replacement and (z) additional amounts  permitted to be Incurred under Section 4.09 (it being understood that any such additional amounts  thereunder will be deemed to be Incurred under such other basket(s) under such covenant as so  permitted). For purposes of determining compliance at any time with Section 4.08, Section 4.09 and  Section 4.10 and the related definitions of “Permitted Investments” and “Permitted Liens” (such  covenants and related definitions collectively, the “Reclassifiable Covenants”), in the event that any  Indebtedness, Lien, Restricted Payment, Investment, Asset Disposition and/or Affiliate Transactions or  portion thereof, as applicable, at any time meets the criteria of more than one of the categories of  transactions or items permitted pursuant to any clause of the Reclassifiable Covenants (other than clause  (1)(a) of Section 4.09(b) and the Liens securing Indebtedness Incurred thereunder pursuant to clause  (1)(a) of the definition of “Permitted Liens”) (each of the foregoing, a “Reclassifiable Item”), the  Company, in its sole discretion, may, from time to time, divide, classify or reclassify such Reclassifiable  Item (or portion thereof) under one or more clauses of each such covenant and will only be required to  include such Reclassifiable Item (or portion thereof) in any one category; provided that upon delivery of  any financial statements pursuant to Section 4.06 following the initial Incurrence or making of any such  Reclassifiable Item, if such Reclassifiable Item could, based on such financial statements, have been  Incurred or made in reliance on any “ratio-based” basket or exception, such Reclassifiable Item shall  automatically be reclassified as having been Incurred or made under the applicable provisions of such  “ratio-based” basket or exception, as applicable (in each case, subject to any other applicable provision of  such “ratio-based” basket or exception, as applicable). Any Reclassifiable Item need not be permitted  solely by reference to one clause, exception or category under the Reclassifiable Covenants, as applicable,  but may instead be permitted in part under any combination thereof or under any other available  exception hereunder.  Section 1.05 Acts of Holders.  (a) Any request, demand, authorization, direction, notice, consent, waiver or other  action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by  one or more instruments of substantially similar tenor signed by such Holders in person or by an agent  duly appointed in writing. Except as herein otherwise expressly provided, such action shall become  effective when such instrument or instruments or record or both are delivered to the Trustee and, where it  is hereby expressly required, to the Company and the Guarantors. Proof of execution of any such  -38- 

 

instrument or of a writing appointing any such agent, or the holding by any Person of a Note, shall be  sufficient for any purpose of this Indenture and (subject to Section 7.01) conclusive in favor of the  Trustee, the Company and the Guarantors, if made in the manner provided in this Section 1.05.  To the  extent that it is necessary for the Trustee to determine whether any Person is a beneficial owner, the  Trustee shall make such determination based on a certification of such Person (on which the Trustee  may conclusively rely) setting forth in satisfactory detail the principal balance and Note certificate  owned and any intermediaries through which such Note certificate is held. The Trustee shall also be  entitled to rely conclusively on information it receives from DTC or other applicable Depositary, its  direct participants and the indirect participating brokerage firms for such participants with respect to  the identity for a beneficial owner. The Trustee shall not be deemed to have actual or constructive  knowledge of the books and records of DTC or its participants.  (b) The fact and date of the execution by any Person of any such instrument or writing may be proved (1) by the affidavit of a witness of such execution or by the certificate of any  notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the  individual signing such instrument or writing acknowledged to him the execution thereof or (2) in any  other manner deemed reasonably sufficient by the Trustee. Where such execution is by or on behalf of  any legal entity other than an individual, such certificate or affidavit shall also constitute proof of the  authority of the Person executing the same. The fact and date of the execution of any such instrument or  writing, or the authority of the Person executing the same, may also be proved in any other manner that  the Trustee deems sufficient.  (c) The ownership of Notes shall be proved by the Note Register. (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Note shall bind every future Holder of the same Note and the Holder of every  Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in respect  of any action taken, suffered or omitted by the Trustee, the Company or the Guarantors in reliance  thereon, whether or not notation of such action is made upon such Note.  (e) The Company may set a record date for purposes of determining the identity of  Holders entitled to make, give or take any request, demand, authorization, direction, notice, consent,  waiver or other action provided in this Indenture to be made, or to vote on or consent to any action  authorized or permitted to be taken by Holders; provided that the Company may not set a record date for,  and the provisions of this paragraph shall not apply with respect to, the giving or making of any notice,  declaration, request or direction referred to in clause (f) below. Unless otherwise specified, if not set by  the Company prior to the first solicitation of a Holder made by any Person in respect of any such action,  or in the case of any such vote, prior to such vote, any such record date shall be the later of 30 days prior  to the first solicitation of such consent or vote or the date of the most recent list of Holders furnished to  the Trustee prior to such solicitation or vote. If any record date is set pursuant to this clause (e), the  Holders on such record date, and only such Holders, shall be entitled to make, give or take such request,  demand, authorization, direction, notice, consent, waiver or other action (including revocation of any  action), whether or not such Holders remain Holders after such record date; provided that no such action  shall be effective hereunder unless made, given or taken on or prior to the applicable Expiration Date by  Holders of the requisite principal amount of Notes, or each affected Holder, as applicable, on such record  date. Promptly after any record date is set pursuant to this paragraph, the Company, at its own expense,  shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date  to be given to the Trustee in writing and to each Holder in the manner set forth in Section 12.02.    (f) The Trustee may set any day as a record date for the purpose of determining the Holders entitled to join in the giving or making of (1) any notice of default under Section 6.01(a), (2) any  -39- 

 

declaration of acceleration referred to in Section 6.02, (3) any direction referred to in Section 6.05 or (4)  any request to pursue a remedy as permitted in Section 6.06. If any record date is set pursuant to this  paragraph, the Holders on such record date, and no other Holders, shall be entitled to join in such notice,  declaration, request or direction, whether or not such Holders remain Holders after such record date;  provided that no such action shall be effective hereunder unless made, given or taken on or prior to the  applicable Expiration Date by Holders of the requisite principal amount of Notes or each affected Holder,  as applicable, on such record date. Promptly after any record date is set pursuant to this paragraph, the  Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action by Holders  and the applicable Expiration Date to be given to the Company and to each Holder in the manner set forth  in Section 12.02.  (g) Without limiting the foregoing, a Holder entitled to take any action hereunder  with regard to any particular Note may do so with regard to all or any part of the principal amount of such  Note or by one or more duly appointed agents, each of which may do so pursuant to such appointment  with regard to all or any part of such principal amount. Any notice given or action taken by a Holder or its  agents with regard to different parts of such principal amount pursuant to this paragraph shall have the  same effect as if given or taken by separate Holders of each such different part.  (h) Without limiting the generality of the foregoing, a Holder, including a Depositary  that is the Holder of a Global Note, may make, give or take, by a proxy or proxies duly appointed in  writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in  this Indenture to be made, given or taken by Holders, and a Depositary that is the Holder of a Global Note  may provide its proxy or proxies to the beneficial owners of interests in any such Global Note through  such Depositary’s standing instructions and customary practices.  (i) The Company may fix a record date for the purpose of determining the Persons  who are beneficial owners of interests in any Global Note held by a Depositary entitled under the  procedures of such Depositary, if any, to make, give or take, by a proxy or proxies duly appointed in  writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in  this Indenture to be made, given or taken by Holders; provided that if such a record date is fixed, only the  beneficial owners of interests in such Global Note on such record date or their duly appointed proxy or  proxies shall be entitled to make, give or take such request, demand, authorization, direction, notice,  consent, waiver or other action, whether or not such beneficial owners remain beneficial owners of  interests in such Global Note after such record date. No such request, demand, authorization, direction,  notice, consent, waiver or other action shall be effective hereunder unless made, given or taken on or prior  to the applicable Expiration Date.  (j) With respect to any record date set pursuant to this Section 1.05, the party hereto  that sets such record date may designate any day as the “Expiration Date” and from time to time may  change the Expiration Date to any earlier or later day; provided that no such change shall be effective  unless notice of the proposed new Expiration Date is given to the other party hereto in writing, and to  each Holder of Notes in the manner set forth in Section 12.02, on or prior to both the existing and the new  Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to  this Section 1.05, the party hereto which set such record date shall be deemed to have initially designated  the 90th day after such record date as the Expiration Date with respect thereto, subject to its right to  change the Expiration Date as provided in this clause (j).  -40- 

 

ARTICLE 2  THE NOTES  Section 2.01 Form and Dating; Terms.  (a) Provisions relating to the Initial Notes, Additional Notes, and any other Notes  issued under this Indenture are set forth in Appendix A, which is hereby incorporated in and expressly  made a part of this Indenture. However, to the extent that any provision of Appendix A conflicts with the  express provisions of this Indenture, the provisions of this Indenture shall govern and be controlling. The  Notes and the Trustee’s certificate of authentication shall each be substantially in the form of Exhibit A  hereto, which is hereby incorporated in and expressly made a part of this Indenture. The Notes may have  notations, legends or endorsements required by law, rules or agreements with national securities  exchanges to which the Company or any Guarantor is subject, if any, or usage (provided that any such  notation, legend or endorsement is in a form acceptable to the Company). Each Note shall be dated the  date of its authentication. The Notes shall be in denominations of $2,000 and integral multiples of $1,000  in excess thereof.  (b) The aggregate principal amount of Notes that may be authenticated and delivered  under this Indenture is unlimited.  The terms and provisions contained in the Notes shall constitute, and are hereby  expressly made, a part of this Indenture, and the Company, the Guarantors and the Trustee, by their  execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound  thereby. However, to the extent any provision of any Note conflicts with the express provisions of this  Indenture, the provisions of this Indenture shall govern and be controlling.  The Notes shall be subject to repurchase by the Company pursuant to an Asset  Disposition Offer as provided in Section 4.16 or a Change of Control Offer as provided in Section 4.15,  and otherwise as not prohibited by this Indenture. The Notes shall not be redeemable, other than as  provided in Article 3.  Additional Notes ranking pari passu with the Initial Notes may be created and issued  from time to time by the Company without notice to or consent of the Holders and shall be consolidated  with and form a single class with the Initial Notes and shall have the same terms as to status, redemption  or otherwise (other than issue date, issue price and, if applicable, the first interest payment date and the  first date from which interest will accrue) as the Initial Notes; provided that the Company’s ability to  issue Additional Notes shall be subject to the Company’s compliance with Section 4.09. Any Additional  Notes shall be issued with the benefit of a supplemental indenture to this Indenture.  Section 2.02 Execution and Authentication.  (a) At least one Officer shall execute the Notes on behalf of the Company by  manual, facsimile or electronic signature. If an Officer whose signature is on a Note no longer holds that  office at the time a Note is authenticated, the Note shall nevertheless be valid.  (b) A Note shall not be entitled to any benefit under this Indenture or be valid or  obligatory for any purpose until authenticated substantially in the form of Exhibit A attached hereto by  the manual, facsimile or electronic signature of an authorized signatory of the Trustee. The signature shall  be conclusive evidence that the Note has been duly authenticated and delivered under this Indenture.  -41- 

 

(c) On the Issue Date, the Trustee shall, upon receipt of a written order of the  Company signed by an Officer (an “Authentication Order”), authenticate and deliver the Initial Notes. In  addition, at any time and from time to time, the Trustee shall, upon receipt of an Authentication Order,  authenticate and deliver any Additional Notes in an aggregate principal amount specified in such  Authentication Order for such Additional Notes issued hereunder.  (d) The Trustee may appoint an authenticating agent acceptable to the Company to  authenticate Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with Holders, the Company or an  Affiliate of the Company.  (e) The Trustee shall authenticate and make available for delivery upon a written  order of the Company signed by one Officer of the Company (i) Initial Notes for original issue on the  Issue Date in an aggregate principal amount of $400,000,000, (ii) subject to the terms of this Indenture,  Additional Notes, (iii) any other Unrestricted Global Notes issued in exchange for any of the foregoing in  accordance with this Indenture and (iv) Notes pursuant to Sections 2.06, 2.07, 2.10, 3.06, 3.09, 4.15, 4.16  and 9.05 in accordance with this Indenture. Such order shall specify the amount of the Notes to be  authenticated, the date on which the original issue of Notes is to be authenticated and whether the Notes  are to be Initial Notes, Additional Notes or other Unrestricted Global Notes.  Section 2.03 Registrar and Paying Agent.  (a) The Company shall maintain an office or agency where Notes may be presented  for registration of transfer or for exchange (“Registrar”) and at least one office or agency where Notes  may be presented for payment (“Paying Agent”). The Registrar shall keep a register of the Notes (“Note  Register”) and of their transfer and exchange. The Company may appoint one or more co-registrars and  one or more additional paying agents. The term “Registrar” includes any co-registrar, and the term  “Paying Agent” includes any additional paying agent. The Company may change any Paying Agent or  Registrar without prior notice to any Holder. The Company shall notify the Trustee in writing of the name  and address of any Agent not a party to this Indenture. If the Company fails to appoint or maintain  another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its  Restricted Subsidiaries may act as Paying Agent or Registrar.  (b) The Company initially appoints The Depository Trust Company to act as  Depositary with respect to the Global Notes. The Company initially appoints the Trustee to act as Paying  Agent and Registrar for the Notes and to act as Custodian with respect to the Global Notes.  (c) The Company will be responsible for making calculations called for under the  Notes, including but not limited to determination of redemption price, premium, if any, and any additional  amounts or other amounts payable on the Notes.  The Company will provide a schedule of its calculations  to the Trustee when requested by the Trustee, and, absent manifest error, the Trustee is entitled to rely  conclusively on the accuracy of the Company’s calculations without independent verification.  Section 2.04 Paying Agent to Hold Money in Trust.  The Company shall, no later than 11:00 a.m. (New York City time) on each due date for  the payment of principal, premium, if any, and interest on any of the Notes, deposit with a Paying Agent a  sum sufficient to pay such amount, such sum to be held in trust for the Holders entitled to the same, and  (unless such Paying Agent is the Trustee) the Company shall promptly notify the Trustee of its action or  failure so to act. The Company shall require each Paying Agent other than the Trustee to agree in writing  -42- 

 

that such Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by such  Paying Agent for the payment of principal, premium, if any, and interest on the Notes, and shall notify the  Trustee of any default by the Company in making any such payment. While any such default continues,  the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any  time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the  Trustee, a Paying Agent shall have no further liability for the money. If the Company or a Restricted  Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the  Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings  relating to the Company, the Trustee shall serve as Paying Agent for the Notes.  Section 2.05 Holder Lists.  The Trustee shall preserve in as current a form as is reasonably practicable the most  recent list available to it of the names and addresses of all Holders. If the Trustee is not the Registrar, the  Company shall furnish to the Trustee at least two Business Days before each Interest Payment Date and at  such other times as the Trustee may request in writing, a list in such form and as of such date as the  Trustee may reasonably require of the names and addresses of the Holders.  Section 2.06 Transfer and Exchange.  (a) The Notes shall be issued in registered form and shall be transferable only upon  the surrender of a Note for registration of transfer and in compliance with Appendix A.  (b) To permit registrations of transfers and exchanges, the Company shall execute  and the Trustee shall authenticate Global Notes and Definitive Notes upon receipt of an Authentication  Order in accordance with Section 2.02 or at the Registrar’s request.  (c) No service charge shall be made to a holder of a beneficial interest in a Global  Note or to a Holder of a Definitive Note for any registration of transfer or exchange (other than pursuant  to Section 2.07), but the Company may require Holders to pay any transfer tax or similar governmental  charge payable in connection therewith (other than any such transfer taxes or similar governmental charge  payable upon exchange or transfer pursuant to Sections 2.10, 3.06, 3.09, 4.15, 4.16 and 9.05).  (d) All Global Notes and Definitive Notes issued upon any registration of transfer or  exchange of Global Notes or Definitive Notes shall be the valid obligations of the Company, evidencing  the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive  Notes surrendered upon such registration of transfer or exchange.  (e) Neither the Company nor the Registrar shall be required (1) to issue, to register  the transfer of or to exchange any Note during a period beginning at the opening of business 10 days  before the day of any selection of Notes for redemption under Section 3.02 and ending at the close of  business on the day of selection, (2) to register the transfer of or to exchange any Note so selected for  redemption, or tendered for repurchase (and not withdrawn) in connection with a Change of Control Offer  or an Asset Disposition Offer, in whole or in part, except the unredeemed or unpurchased portion of any  Note being redeemed or repurchased in part or (3) to register the transfer of or to exchange any Note  between a Record Date and the next succeeding Interest Payment Date.  (f) Prior to due presentment for the registration of a transfer of any Note, the  Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is  registered as the absolute owner of such Note for the purpose of receiving payment of principal, premium,  -43- 

 

if any, and (subject to the Record Date provisions of the Notes) interest on such Notes and for all other  purposes, and none of the Trustee, any Agent or the Company shall be affected by notice to the contrary.  (g) Upon surrender for registration of transfer of any Note at the office or agency of  the Company designated pursuant to Section 4.02, the Company shall execute, and the Trustee shall  authenticate and mail, in the name of the designated transferee or transferees, one or more replacement  Notes of any authorized denomination or denominations of a like aggregate principal amount.  (h) At the option of the Holder, Notes may be exchanged for other Notes of any  authorized denomination or denominations of a like aggregate principal amount upon surrender of the  Notes to be exchanged at such office or agency. Whenever any Global Notes or Definitive Notes are so  surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and mail or  deliver in accordance with the Applicable Procedures, the replacement Global Notes and Definitive Notes  which the Holder making the exchange is entitled to in accordance with the provisions of Appendix A.  (i) All certifications, certificates and Opinions of Counsel required to be submitted  to the Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be  submitted by mail or by facsimile or electronic transmission.  Section 2.07 Replacement Notes.  If a mutilated Note is surrendered to the Trustee or if a Holder claims that its Note has  been lost, destroyed or wrongfully taken and the Trustee receives evidence to its satisfaction of the  ownership and loss, destruction or theft of such Note, the Company shall issue and the Trustee, upon  receipt of an Authentication Order, shall authenticate a replacement Note if the Trustee’s requirements are  otherwise met. If required by the Trustee or the Company, an indemnity bond must be provided by the  Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company, the  Trustee, any Agent and any authenticating agent from any loss, claim, cost or liability that any of them  may suffer if a Note is replaced. The Company may charge the Holder for the expenses of the Company  and the Trustee in replacing a Note. Every replacement Note is a contractual obligation of the Company  and shall be entitled to all of the benefits of this Indenture equally and proportionately with all other  Notes duly issued hereunder. Notwithstanding the foregoing provisions of this Section 2.07, in case any  mutilated, lost, destroyed or wrongfully taken Note has become or is about to become due and payable,  the Company in its discretion may, instead of issuing a new Note, pay such Note.  Section 2.08 Outstanding Notes.  (a) The Notes outstanding at any time are all the Notes authenticated by the Trustee  except for those canceled by it, those delivered to it for cancellation, those reductions in the interest in a  Global Note effected by the Trustee in accordance with the provisions hereof, and those described in this  Section 2.08 as not outstanding. Except as set forth in Section 2.09, a Note does not cease to be  outstanding because the Company or an Affiliate of the Company holds the Note; provided that Notes  held by the Company or a Subsidiary of the Company will not be deemed to be outstanding for purposes  of Section 3.07(b).  (b) If a Note is replaced pursuant to Section 2.07, it ceases to be outstanding unless  the Trustee receives proof satisfactory to it that the replaced Note is held by a protected purchaser, as such  term is defined in Section 8-303 of the Uniform Commercial Code in effect in the State of New York.  (c) If the principal amount of any Note is considered paid under Section 4.01, it ceases to be outstanding and interest on it ceases to accrue from and after the date of such payment.  -44- 

 

(d) If a Paying Agent (other than the Company, a Subsidiary or an Affiliate of any  thereof) holds, on the maturity date, any redemption date or any date of purchase pursuant to an Offer to  Purchase, money sufficient to pay Notes payable or to be redeemed or purchased on that date, then on and  after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest.  Section 2.09 Treasury Notes.  In determining whether the Holders of the requisite principal amount of Notes have  concurred in any direction, waiver or consent, Notes beneficially owned by the Company, or by any  Affiliate of the Company, shall be considered as though not outstanding, except that for the purposes of  determining whether the Trustee shall be protected in relying on any such direction, waiver or consent,  only Notes that a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.  Notes so owned which have been pledged in good faith shall not be disregarded if the pledgee establishes  to the satisfaction of the Trustee the pledgee’s right to deliver any such direction, waiver or consent with  respect to the Notes and that the pledgee is not the Company or any obligor upon the Notes or any  Affiliate of the Company or of such other obligor.  Section 2.10 Temporary Notes.  Until definitive Notes are ready for delivery, the Company may prepare and the Trustee,  upon receipt of an Authentication Order, shall authenticate temporary Notes. Temporary Notes shall be  substantially in the form of definitive Notes but may have variations that the Company considers  appropriate for temporary Notes and as shall be reasonably acceptable to the Trustee. Without  unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Notes in  exchange for temporary Notes. Holders and beneficial holders, as the case may be, of temporary Notes  shall be entitled to all of the benefits accorded to Holders, or beneficial holders, respectively, of Notes  under this Indenture.  Section 2.11 Cancellation.  The Company at any time may deliver Notes to the Trustee for cancellation. The  Registrar and Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of  transfer, exchange or payment. The Trustee or, at the direction of the Trustee, the Registrar or the Paying  Agent and no one else shall cancel all Notes surrendered for registration of transfer, exchange, payment,  replacement or cancellation and shall dispose of cancelled Notes in accordance with its customary  procedures (subject to the record retention requirement of the Exchange Act). Certification of the  cancellation of all cancelled Notes shall, upon the written request of the Company, be delivered to the  Company. The Company may not issue new Notes to replace Notes that it has paid or that have been  delivered to the Trustee for cancellation.  Section 2.12 Defaulted Interest.  (a) If the Company defaults in a payment of interest on the Notes, it shall pay the  defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted  interest, to the Persons who are Holders on a subsequent special record date, in each case at the rate  provided in the Notes and in Section 4.01. The Company shall notify the Trustee in writing of the amount  of defaulted interest proposed to be paid on each Note and the date of the proposed payment, and at the  same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount  proposed to be paid in respect of such defaulted interest or shall make arrangements satisfactory to the  Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held  in trust for the benefit of the Persons entitled to such defaulted interest as provided in this Section 2.12.  -45- 

 

The Company shall fix or cause to be fixed each such special record date and payment date; provided that  no such special record date shall be less than 10 days prior to the related payment date for such defaulted  interest. The Trustee shall promptly notify the Company of such special record date. At least 15 days  before the special record date, the Company (or, upon the written request of the Company, the Trustee in  the name and at the expense of the Company) shall mail or deliver by electronic transmission in  accordance with the Applicable Procedures, or cause to be mailed or delivered by electronic transmission  in accordance with the Applicable Procedures to each Holder, a notice that states the special record date,  the related payment date and the amount of such interest to be paid. Notwithstanding the foregoing, any  interest which is paid prior to the expiration of the 30-day period set forth in Section 6.01(a)(1) shall be  paid to Holders as of the Record Date for the Interest Payment Date for which interest has not been paid.  (b) Subject to the foregoing provisions of this Section 2.12 and for greater certainty,  each Note delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of  any other Note shall carry the rights to interest accrued and unpaid, and to accrue interest, which were  carried by such other Note.  Section 2.13 CUSIP and ISIN Numbers  The Company in issuing the Notes may use CUSIP or ISIN numbers (if then generally in  use) and, if so, the Trustee may use CUSIP or ISIN numbers in notices of redemption or exchange or in  Offers to Purchase as a convenience to Holders; provided that any such notice may state that no  representation is made as to the correctness of such numbers either as printed on the Notes or as contained  in any notice of redemption or exchange or in Offers to Purchase and that reliance may be placed only on  the other identification numbers printed on the Notes, and any such redemption or exchange or Offer to  Purchase shall not be affected by any defect in or omission of such numbers. The Company shall as  promptly as practicable notify the Trustee in writing of any change in the CUSIP or ISIN numbers.  ARTICLE 3  REDEMPTION  Section 3.01 Notices to Trustee.  If the Company elects to redeem Notes pursuant to Section 3.07, it shall furnish to the  Trustee, at least five Business Days before notice of redemption is required to be mailed or sent or caused  to be mailed or sent to Holders pursuant to Section 3.03 (unless a shorter notice shall be agreed to by the  Trustee) but not more than 60 days before a redemption date, an Officers’ Certificate setting forth (1) the  paragraph or subparagraph of such Note or Section of this Indenture pursuant to which the redemption  shall occur, (2) the redemption date, (3) the principal amount of the Notes to be redeemed, (4) the  redemption price, if then ascertainable, and (5) any condition precedent to such redemption pursuant to  Section 3.07(f).  Section 3.02 Selection of Notes to Be Redeemed or Purchased.  (a) If less than all of the Notes are to be redeemed pursuant to Section 3.07 or  purchased in an Offer to Purchase at any time, the Notes to be redeemed or purchased shall be selected in  accordance with the Applicable Procedures. In the event of partial redemption or purchase by lot, the  particular Notes to be redeemed or purchased shall be selected, unless otherwise provided herein, not less  than 10 nor more than 60 days prior to the redemption date by the Trustee from the then outstanding  Notes not previously called for redemption or purchase.  -46- 

 

-47- (b) The Trustee shall promptly notify the Company in writing of the Notes selected for redemption or purchase and, in the case of any Note selected for partial redemption or purchase, the  principal amount thereof to be redeemed or purchased. Notes and portions of Notes selected shall be in  amounts of $1,000 or whole number multiples of $1,000; provided that no Notes of $2,000 in principal  amount or less shall be redeemed in part, except that if all of the Notes of a Holder are to be redeemed or  purchased, the entire outstanding amount of Notes held by such Holder, even if not $2,000 or a multiple  of $1,000 in excess thereof, shall be redeemed or purchased. Except as provided in the preceding  sentence, provisions of this Indenture that apply to Notes called for redemption or purchase also apply to  portions of Notes called for redemption or purchase.  (c) After the redemption date, upon surrender of a Note to be redeemed in part only, a new Note or Notes in principal amount equal to the unredeemed portion of the original Note,  representing the same Indebtedness to the extent not redeemed, shall be issued in the name of the Holder  of the Notes upon cancellation of the original Note (or appropriate book entries shall be made to reflect  such partial redemption).  Section 3.03 Notice of Redemption.  (a) Subject to Section 3.09, the Company shall mail or deliver by electronic transmission in accordance with the Applicable Procedures, or cause to be mailed (or delivered by  electronic transmission in accordance with the Applicable Procedures) notices of redemption of Notes not  less than 10 days but not more than 60 days before the redemption date to each Holder (with a copy to the  Trustee) whose Notes are to be redeemed pursuant to this Article at such Holder’s registered address or  otherwise in accordance with the Applicable Procedures, except that redemption notices may be mailed or  delivered more than 60 days prior to a redemption date if the notice is issued in connection with Article 8  or Article 11.  (b) The notice shall identify the Notes to be redeemed (including CUSIP and ISIN number, if applicable) and shall state:  (1) the redemption date; (2) the redemption price, including the portion thereof representing any accrued and unpaid interest; provided that in connection with a redemption under Section 3.07(a), the notice  need not set forth the redemption price but only the manner of calculation thereof;  (3) if any Note is to be redeemed in part only, the portion of the principal amount of that Note that is to be redeemed;  (4) the name and address of the Paying Agent; (5) that Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price;  (6) that, unless the Company defaults in making such redemption payment or the Paying Agent is prohibited from making such payment pursuant to the terms of this Indenture,  interest on Notes called for redemption ceases to accrue on and after the redemption date;  (7) the paragraph or subparagraph of the Notes or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed;  

 

(8) that no representation is made as to the correctness or accuracy of the CUSIP or ISIN number, if any, listed in such notice or printed on the Notes; and  (9) if applicable, any condition to such redemption. (c) At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at the Company’s expense; provided that the Company shall have delivered to the  Trustee, at least five Business Days before notice of redemption is required to be sent or caused to be sent  to Holders pursuant to this Section 3.03 (unless a shorter notice shall be agreed to by the Trustee), an  Officers’ Certificate requesting that the Trustee give such notice, together with the notice to be given,  setting forth the information to be stated in such notice as provided in Section 3.03(b).  (d) If any notice of redemption is conditioned upon the satisfaction of one or more  conditions precedent, such notice shall state that, in the Company’s discretion, the redemption date may  be delayed until such time as any or all such conditions shall be satisfied, or such redemption may not  occur and such notice may be rescinded in the event that any or all such conditions shall not have been  satisfied by the redemption date, or by the redemption date so delayed. If any such condition precedent  has not been satisfied, the Company will provide prompt written notice to the Trustee delaying or  rescinding such redemption not later than 5:00 p.m. (New York City time) two Business Days  immediately prior to the redemption date, and the Company may delay such redemption until a new  redemption date set forth in such notice (provided that such new redemption date shall not be more than  60 days after the date the original redemption notice was mailed (or delivered by electronic transmission  in accordance with the Applicable Procedures) pursuant to Section 3.03(a)) or rescind the redemption and  notice of redemption, in which case the notice of redemption shall be of no force or effect and the  redemption of the Notes shall not occur. Upon receipt of such notice from the Company, if requested by  the Company, the Trustee shall promptly send a copy of such notice to the Holders of the Notes to be  redeemed in the same manner in which the notice of redemption was given if such notice was delivered  by the Trustee.  Section 3.04 Effect of Notice of Redemption.  Once notice of redemption is mailed or delivered in accordance with Section 3.03, Notes  called for redemption become irrevocably due and payable on the redemption date at the redemption price  (except as provided for in Section 3.07(f)). The notice, if mailed or delivered by electronic transmission in  a manner herein provided, shall be conclusively presumed to have been given, whether or not the Holder  receives such notice. In any case, failure to give such notice or any defect in the notice to the Holder of  any Note designated for redemption in whole or in part shall not affect the validity of the proceedings for  the redemption of any other Note. Subject to Section 3.05, on and after the redemption date, interest  ceases to accrue on Notes or portions of Notes called for redemption.  Section 3.05 Deposit of Redemption or Purchase Price.  (a) No later than 11:00 a.m. (New York City time) on the redemption or purchase  date (or such later time on such date as consistent with the Applicable Procedures to which the Trustee  may reasonably agree), the Company shall deposit with the Trustee or with the Paying Agent money  sufficient to pay the redemption or purchase price of and accrued and unpaid interest on all Notes to be  redeemed or purchased on that date. If funds for such purpose are on deposit, the Paying Agent shall  promptly send or mail to each Holder whose Notes are to be redeemed or repurchased the applicable  redemption or purchase price thereof and accrued and unpaid interest thereon. The Trustee or the Paying  Agent shall promptly return to the Company any money deposited with the Trustee or the Paying Agent  -48- 

 

by the Company in excess of the amounts necessary to pay the redemption or purchase price of, and  accrued and unpaid interest on, all Notes to be redeemed or purchased.  (b) If the Company complies with the provisions of Section 3.05(a), on and after the redemption or purchase date, interest shall cease to accrue on the Notes or the portions of Notes called for  redemption or purchase. If a Note is redeemed or purchased on or after a Record Date but on or prior to  the related Interest Payment Date, then any accrued and unpaid interest, to, but excluding, the redemption  or purchase date in respect of such Note will be paid on such redemption or purchase date to the Person in  whose name such Note is registered at the close of business on such Record Date. If any Note called for  redemption or purchase shall not be so paid upon surrender for redemption or purchase because of the  failure of the Company to comply with Section 3.05(a), interest shall be paid on the unpaid principal,  from the redemption or purchase date until such principal is paid, and, to the extent lawful, on any interest  accrued to the redemption or purchase date not paid on such unpaid principal, in each case at the rate  provided in the Notes and in Section 4.01.  Section 3.06 Notes Redeemed or Purchased in Part.  Upon surrender of a Note that is redeemed or purchased in part, the Company shall issue  and, upon receipt of an Authentication Order, the Trustee shall promptly authenticate and mail to the  Holder (or cause to be transferred by book entry) at the expense of the Company a new Note equal in  principal amount to the unredeemed or unpurchased portion of the Note surrendered representing the  same Indebtedness to the extent not redeemed or purchased; provided that each new Note shall be in a  principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. It is understood that,  notwithstanding anything in this Indenture to the contrary, only an Authentication Order and not an  Opinion of Counsel or Officers’ Certificate is required for the Trustee to authenticate such new Note.  Section 3.07 Optional Redemption.  (a) At any time prior to November 15, 2024, the Company may redeem the Notes, in whole or in part, upon notice pursuant to Section 3.03 at a redemption price equal to 100% of the  aggregate principal amount of the Notes, plus the Applicable Premium, plus accrued and unpaid interest,  if any, to, but excluding, the redemption date. Promptly after the determination thereof, the Company  shall give the Trustee notice of the redemption price provided for in this Section 3.07(a), and the Trustee  shall not be responsible for such calculation.  (b) Prior to November 15, 2024, the Company may on any one or more occasions redeem up to 40% of the original aggregate principal amount of the Notes (calculated after giving effect  to any issuance of Additional Notes) with the Net Cash Proceeds of one or more Equity Offerings, upon  notice pursuant to Section 3.03, at a redemption price equal to 104.125% of the aggregate principal  amount thereof, plus accrued and unpaid interest thereon, if any, to, but excluding, the applicable  redemption date; provided that (1) at least 60% of the original aggregate principal amount of the Notes  (calculated after giving effect to any issuance of Additional Notes) remains outstanding immediately after  the occurrence of each such redemption; and (2) such redemption occurs within 120 days after the date of  closing of such Equity Offering.   (c) Except pursuant to clause (a),  (b) or (h) of this Section 3.07, the Notes shall not be redeemable at the Company’s option prior to November 15, 2024.  (d) On and after November 15, 2024, the Company may redeem the Notes, in whole or in part, upon notice pursuant to Section 3.03 at the redemption prices (expressed as percentages of the  principal amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon,  -49- 

 

if any, to, but excluding, the applicable redemption date, if redeemed during the 12-month period  beginning on November 15 of each of the years indicated below:  Year Percentage  2024 ..................................................................................  102.063%  2025 ..................................................................................  101.031%  2026 and thereafter ...........................................................  100.000%  (e) Any redemption pursuant to this Section 3.07 shall be made pursuant to the  provisions of Sections 3.01 through 3.06.  (f) Any redemption notice in connection with this Section 3.07 may, at the  Company’s discretion, be subject to one or more conditions precedent, including the consummation of  any related Equity Offering or other corporate transaction or event.   (g) The Company may acquire Notes by means other than a redemption, whether by  tender offer, open market purchases, negotiated transactions or otherwise, in accordance with applicable  securities laws, so long as such acquisition does not otherwise violate the terms of this Indenture.  (h) Notwithstanding the foregoing, in connection with any tender offer for the Notes,  including a Change of Control Offer, if Holders of not less than 90% in aggregate principal amount of the  outstanding Notes validly tender and the Company or a third party in lieu of the Company purchases all  of the Notes validly tendered and not withdrawn by such Holders, the Company or such third party shall  have the right upon not less than 10 nor more than 60 days’ prior notice, given not more than 30 days  following such purchase date, to redeem all Notes that remain outstanding following such purchase at a  redemption price equal to the price offered to each other Holder (excluding any early tender or incentive  fee) in such tender offer (including a Change of Control Offer) plus, to the extent not included in the  tender offer payment (or payment pursuant to the Change of Control Offer), accrued and unpaid interest,  if any, thereon, to, but excluding, the date of such redemption.  Section 3.08 Mandatory Redemption.  The Company will not be required to make mandatory redemption or sinking fund  payments with respect to the Notes. The Company may acquire Notes by means other than a redemption,  whether by tender offer, open market purchases, negotiated transactions or otherwise, in accordance with  applicable securities laws, so long as such acquisition does not otherwise violate the terms of this  Indenture.  Section 3.09 Offers to Repurchase by Application of Excess Proceeds.  (a) In the event that, pursuant to Section 4.16, the Company is required to commence  an Asset Disposition Offer, the Company will follow the procedures specified below.  (b) The Asset Disposition Offer will remain open for the Asset Disposition Offer  Period. No later than the Asset Disposition Purchase Date, the Company will apply all Excess Proceeds to  the purchase of the Asset Disposition Offer Amount, or, if less than the Asset Disposition Offer Amount  of Notes (and, if applicable, Pari Passu Indebtedness) has been so validly tendered, all Notes and Pari  Passu Indebtedness validly tendered in response to the Asset Disposition Offer. Payment for any Notes so  purchased will be made in the same manner as redemption payments on the Notes are made.  -50- 

 

-51- (c) If the Asset Disposition Purchase Date is on or after a Record Date and on or before the related Interest Payment Date, any accrued and unpaid interest to the Asset Disposition  Purchase Date, shall be paid on the Asset Disposition Purchase Date to the Person in whose name a Note  is registered at the close of business on such Record Date.  (d) Upon the commencement of an Asset Disposition Offer, the Company shall mail a notice (or, in the case of Global Notes, otherwise communicate in accordance with the Applicable  Procedures of the Depository) to each of the Holders, with a copy to the Trustee, which notice shall  contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the  Asset Disposition Offer. The Asset Disposition Offer shall be made to all Holders and, if required, all  holders of Pari Passu Indebtedness. The notice, which shall govern the terms of the Asset Disposition  Offer, shall state:  (1) that the Asset Disposition Offer is being made pursuant to this Section 3.09 and Section 4.16 and the length of time the Asset Disposition Offer shall remain open;  (2) the Asset Disposition Offer Amount, the purchase price, including the portion thereof representing any accrued and unpaid interest, and the Asset Disposition Purchase Date;  (3) that any Note not properly tendered or accepted for payment shall continue to accrue interest;  (4) that, unless the Company defaults in making such payment, any Note accepted for payment pursuant to the Asset Disposition Offer will cease to accrue interest on and after the  Asset Disposition Purchase Date;  (5) that Holders electing to have a Note purchased pursuant to an Asset Disposition Offer may elect to have Notes purchased in integral multiples of $1,000 only;  (6) that Holders electing to have a Note purchased pursuant to any Asset Disposition Offer shall be required to surrender the Note, with the form entitled “Option of Holder to Elect  Purchase” attached to the Note completed, or to transfer such Note by book-entry transfer, to the  Company, the Depositary, if applicable, or a Paying Agent at the address specified in the notice  prior to the close of business on the third Business Day preceding the Asset Disposition Purchase  Date;  (7) that Holders shall be entitled to withdraw their election if the Company, the Depositary or the Paying Agent, as the case may be, receives at the address specified in the  notice, not later than the expiration of the Asset Disposition Offer Period, a telegram, facsimile  transmission or letter setting forth the name of the Holder, the principal amount of the Notes the  Holder tendered for purchase and a statement that such Holder is withdrawing its tendered Notes  and its election to have such Note purchased;  (8) that, if the aggregate principal amount of Notes and Pari Passu Indebtedness surrendered by the holders thereof exceeds the Asset Disposition Offer Amount, then the Notes  and such Pari Passu Indebtedness will be purchased on a pro rata basis based on the aggregate  accreted value or principal amount, as applicable, of the Notes or such Pari Passu Indebtedness  validly tendered and not properly withdrawn and the selection of the Notes for purchase shall be  made by the Trustee by such method as the Trustee in its sole discretion shall deem to be fair and  appropriate, although no Note having a principal amount of $2,000 shall be purchased in part; and  

 

(9) that Holders whose Notes were purchased only in part shall be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or transferred by  book-entry transfer) representing the same Indebtedness to the extent not repurchased.  (e) On or before the Asset Disposition Purchase Date, the Company will, to the  extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer  Amount of Notes and Pari Passu Indebtedness or portions thereof validly tendered and not properly  withdrawn pursuant to the Asset Disposition Offer, or, if less than the Asset Disposition Offer Amount  has been validly tendered and not properly withdrawn, all Notes and Pari Passu Indebtedness so tendered,  in the case of the Notes in integral multiples of $1,000; provided that if, following repurchase of a portion  of a Note, the remaining principal amount of such Note outstanding immediately after such repurchase  would be less than $2,000, then the portion of such Note so repurchased shall be reduced so that the  remaining principal amount of such Note outstanding immediately after such repurchase is $2,000. The  Company will deliver, or cause to be delivered, to the Trustee the Notes so accepted and an Officers’  Certificate stating the aggregate principal amount of Notes so accepted and that such Notes were accepted  for payment by the Company in accordance with the terms of this Section 3.09. In addition, the Company  will deliver all certificates and instruments required, if any, by the agreements governing the Pari Passu  Indebtedness.  (f) The Paying Agent or the Company, as the case may be, will promptly, but in no  event later than five Business Days after termination of the Asset Disposition Offer Period, mail or wire  transfer (or otherwise deliver in accordance with the Applicable Procedures) to each tendering Holder or  holder or lender of Pari Passu Indebtedness, as the case may be, an amount equal to the purchase price of  the Notes or Pari Passu Indebtedness so validly tendered and not properly withdrawn by such holder or  lender, as the case may be, and accepted by the Company for purchase, and the Company will promptly  issue a new Note, and the Trustee, upon delivery of an Authentication Order from the Company, will  authenticate and mail (or otherwise deliver in accordance with the Applicable Procedures) such new Note  to such Holder (it being understood that, notwithstanding anything in this Indenture to the contrary, no  Opinion of Counsel will be required for the Trustee to authenticate and mail or deliver such new Note) in  a principal amount equal to any unpurchased portion of the Note surrendered; provided that each such  new Note will be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. In  addition, the Company will take any and all other actions required by the agreements governing the Pari  Passu Indebtedness with respect to the applicable Asset Disposition. Any Note not so accepted will be  promptly mailed or delivered by the Company to the Holder thereof.   (g) The Company will comply, to the extent applicable, with the requirements of  Rule 14e-1 under the Exchange Act and any other securities laws or regulations in connection with the  repurchase of Notes pursuant to an Asset Disposition Offer. To the extent that the provisions of any  securities laws or regulations conflict with provisions of this Indenture, the Company will comply with  the applicable securities laws and regulations and will not be deemed to have breached its obligations  under this Indenture by virtue of any conflict. An Asset Disposition Offer may be made at the same time  as consents are solicited with respect to an amendment, supplement or waiver of this Indenture, the Notes  and/or the Note Guarantees (but the Asset Disposition Offer) may not condition tenders on the delivery of  such consents).  (h) Other than as specifically provided in this Section 3.09 or Section 4.16, any  purchase pursuant to this Section 3.09 shall be made pursuant to the applicable provisions of Sections  3.01 through 3.06.  -52- 

 

ARTICLE 4  COVENANTS  Section 4.01 Payment of Notes.  (a) The Company will pay, or cause to be paid, the principal, premium, if any, and  interest on the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any,  and interest shall be considered paid on the date due if the Paying Agent, if other than the Company or a  Subsidiary, holds as of 11:00 a.m. (New York City time), on the due date money deposited by the  Company in immediately available funds and designated for and sufficient to pay the principal, premium,  if any, and interest then due.   (b) The Company shall pay interest (including post-petition interest in any  proceeding under any Bankruptcy Law) on overdue principal and premium, if any, at the rate equal to the  then applicable interest rate on the Notes to the extent lawful; it shall pay interest (including post-petition  interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard  to any applicable grace period) at the same rate to the extent lawful.  Section 4.02 Maintenance of Office or Agency.  The Company shall maintain an office or agency (which may be an office of the Trustee  or an affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for registration of  transfer or for exchange and where notices and demands to or upon the Company and the Guarantors in  respect of the Notes and this Indenture may be served. The Company shall give prompt written notice to  the Trustee of the location, and any change in the location, of such office or agency. If at any time the  Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with  the address thereof, such presentations, surrenders, notices and demands may be made or served at the  Corporate Trust Office of the Trustee; provided that the Trustee shall not be considered an agent for  service of legal process on the Company or any Guarantor.   The Company may also from time to time designate additional offices or agencies where  the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind  such designations. The Company shall give prompt written notice to the Trustee of any such designation  or rescission and of any change in the location of any such other office or agency.  The Company hereby designates the Corporate Trust Office of the Trustee as one such  office or agency of the Company in accordance with Section 2.03.  Section 4.03 Taxes.  The Company shall pay, and shall cause each of the Guarantors to pay, prior to  delinquency, all material taxes, assessments and governmental levies except (a) such as are being  contested in good faith and by appropriate negotiations or proceedings or (b) where the failure to effect  such payment is not adverse in any material respect to the Holders of the Notes.   Section 4.04 Stay, Extension and Usury Laws.  Each of the Company and the Guarantors covenants (to the extent that it may lawfully do  so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit  or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force,  that may affect the covenants or the performance of this Indenture; and each of the Company and the  -53-   

 

-54- Guarantors (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of  any such law, and covenants that it shall not, by resort to any such law, hinder, delay or impede the  execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every  such power as though no such law has been enacted.  Section 4.05 Corporate Existence.  Subject to Article 5, the Company shall do or cause to be done all things necessary to  preserve and keep in full force and effect (1) its corporate existence and the corporate, partnership, limited  liability company or other existence of each of the Guarantors, in accordance with the respective  organizational documents (as the same may be amended from time to time) of the Company or any such  Guarantor and (2) the rights (charter and statutory), licenses and franchises of the Company and the  Guarantors; provided that the Company shall not be required to preserve any such right, license or  franchise, or the corporate, partnership, limited liability company or other existence of any of the  Guarantors, if the Company in good faith shall determine that the preservation thereof is no longer  desirable in the conduct of the business of the Company and the Guarantors, taken as a whole.   Section 4.06 Reports and Other Information.  (a) Notwithstanding that the Company may not be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act or otherwise report on an annual and quarterly  basis on forms provided for such annual and quarterly reporting pursuant to the rules and regulations  promulgated by the SEC, the Company will furnish to the Trustee and make available to Holders and  prospective purchasers of the Notes in the manner described in the following paragraphs (which such  obligations will be deemed satisfied by filing with the SEC within the time periods (including any grace  period or extension permitted by the SEC) specified in the SEC’s rules and regulations that are then  applicable to the Company (or if the Company is not then subject to the reporting requirements of the  Exchange Act, then the time periods for filing applicable to a filer that is not an “accelerated filer” as  defined in such rules and regulations):  (1) all financial information that would be required to be contained in an annual report on Form 10-K, or any successor or comparable form, filed with the SEC, including  a “Management’s discussion and analysis of financial condition and results of operations” section  and a report on the annual financial statements by the Company’s independent registered public  accounting firm;  (2) all financial information that would be required to be contained in a quarterly report on Form 10-Q, or any successor or comparable form, filed with the SEC,  including a “Management’s discussion and analysis of financial condition and results of  operations” section; and  (3) all current reports that would be required to be filed with the SEC on Form 8-K, or any successor or comparable form, if the Company were required to file such  reports.  (b) Notwithstanding Section 4.06(a), if the Company is not then subject to the reporting requirements of the Exchange Act, such reports (A) shall not be required to comply with  Section 302, Section 404 or Section 906 of the Sarbanes-Oxley Act of 2002, or related Items 307 or 308  of Regulation S-K promulgated by the SEC, or Item 10(e) of Regulation S-K (with respect to any non- GAAP financial measures contained therein), (B) shall not be required to contain any separate financial  information contemplated by Rule 3-05, Rule 3-09, Rule 3-10, Rule 3-16, Rule 13-01 or Rule 13-02 of  

 

Regulation S-X promulgated by the SEC, (C) shall not be required to comply with Items 402, 405, 406,  407 and 601 of Regulation S-K promulgated by the SEC, (D) shall not be required to contain any exhibits  (including any financial statements that would be required to be filed as an exhibit), and (E) shall not be  required to comply with rules or regulations promulgated by the SEC concerning Extensible Business  Reporting Language (XBRL). In addition, to the extent not satisfied by the information required to be  furnished pursuant to Section 4.06(a), for so long as any Notes are outstanding, the Company will furnish  to Holders and to securities analysts and prospective purchasers of the Notes, upon their request, the  information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long as the  Notes are not freely transferable under the Securities Act.   (c) The requirements set forth in Sections 4.06(a) and 4.06(b) may be satisfied by the  Company, in its sole discretion, (i) filing the required reports with the SEC, (ii) posting the required  reports on its website or (iii) delivering such information to the Trustee and posting copies of such  information on any website (which may be password protected and nonpublic and may be maintained by  the Company or a third party) to which access will be given to Holders, securities analysts and  prospective purchasers of the Notes, in each case at the Company’s expense within the time periods that  would apply if the Company were required to file those reports with the SEC.  (d) In addition, no later than ten Business Days after the date the annual and  quarterly financial information for the prior fiscal period have been furnished pursuant to Section  4.06(a)(1) or (2), the Company shall also hold live quarterly conference calls with the opportunity to ask  questions of management; provided that, as long as the Company holds quarterly conference calls for  investors in its common stock, it shall not be required to hold separate or additional conference calls for  the benefit of the Holders and beneficial owners of the Notes, prospective purchasers of the Notes,  securities analysts and market making financial institutions. No fewer than five Business Days prior to the  date such conference call is to be held, the Company shall issue a press release to the appropriate U.S.  wire services announcing such conference call, which press release shall contain information on how and  when to access such conference call.  (e) If the Company has designated any of its Subsidiaries as Unrestricted  Subsidiaries and such Unrestricted Subsidiaries, either individually or collectively, would otherwise have  been a Significant Subsidiary, then the annual and quarterly financial information required by this Section  4.06 shall include a reasonably detailed presentation, as determined in good faith by Senior Management  of the Company, either on the face of the financial statements or in the footnotes to the financial  statements and in the “Management’s discussion and analysis of financial condition and results of  operations” section, 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 any Unrestricted  Subsidiaries.  (f) The Trustee shall have no duty to review or analyze reports delivered to it.  Delivery of such reports, information and documents to the Trustee hereunder is for informational  purposes only and the Trustee’s receipt of such reports shall not constitute actual or constructive notice of  any information contained therein or determinable from information contained therein, including the  Company’s compliance with any of its covenants hereunder or under the Notes (as to which the Trustee is  entitled to rely exclusively on Officers’ Certificates). The Trustee shall have no obligation to monitor or  confirm, on a continuing basis or otherwise, the Company’s compliance with the covenants or with  respect to any reports or other documents filed with the SEC or EDGAR or posted on the Company’s  website, or participate in any conference calls.  -55-   

 

-56- Section 4.07 Compliance Certificate.  (a) The Company will deliver to the Trustee, within 90 days after the end of each fiscal year ending after the Issue Date, a certificate from the principal executive officer, principal  financial officer or principal accounting officer stating that a review of the activities of the Company and  its Restricted Subsidiaries during the preceding fiscal year has been made under the supervision of the  signing Officer with a view to determining whether the Company has kept, observed, performed and  fulfilled its obligations under this Indenture, and further stating, as to such Officer signing such  certificate, that to the best of his or her knowledge, the Company has kept, observed, performed and  fulfilled each and every condition and covenant contained in this Indenture and is not in default in the  performance or observance of any of the terms, provisions, covenants and conditions of this Indenture (or,  if a Default shall have occurred and be continuing, describing all such Defaults of which he or she may  have knowledge and what action the Company is taking or propose to take with respect thereto).  (b) When any Default has occurred and is continuing under this Indenture, or if the Trustee or the holder of any other evidence of Indebtedness of the Company or any Subsidiary gives any  notice or takes any other action with respect to a claimed Default, the Company will promptly (which  shall be within ten days following the date on which the Company becomes aware of such Default,  receives notice of such Default or becomes aware of such action, as applicable) send to the Trustee an  Officers’ Certificate specifying such event, its status and what action the Company is taking or proposes  to take with respect thereof.  Section 4.08 Limitation on Restricted Payments.  (a) The Company will not, and will not permit any of its Restricted Subsidiaries, directly or indirectly, to:  (1) declare or pay any dividend or make any distribution (whether made in cash, securities or other property) on or in respect of its or any of its Restricted Subsidiaries’  Capital Stock (including any payment in connection with any merger or consolidation involving  the Company or any of its Restricted Subsidiaries) other than:  (A) dividends or distributions payable solely in Capital Stock of the Company (other than Disqualified Stock); and  (B) dividends or distributions by a Restricted Subsidiary, so long as, in the case of any dividend or distribution payable on or in respect of any Capital Stock issued  by a Restricted Subsidiary that is not a Wholly Owned Subsidiary, the Company or the  Restricted Subsidiary holding such Capital Stock receives at least its pro rata share of  such dividend or distribution;  (2) purchase, redeem, retire or otherwise acquire for value, including in connection with any merger or consolidation, any Capital Stock of the Company or any direct or  indirect parent of the Company held by Persons other than the Company or a Restricted  Subsidiary;  (3) make any principal payment on, or purchase, repurchase, redeem, defease or otherwise acquire or retire for value, prior to any scheduled repayment, scheduled  sinking fund payment or scheduled maturity, any Subordinated Obligations or Guarantor  Subordinated Obligations, other than:  

 

-57- (A) Indebtedness of the Company owing to and held by any Guarantor or Indebtedness of a Guarantor owing to and held by the Company or any other Guarantor  permitted under clause (5) of Section 4.09(b); or  (B) the purchase, repurchase, redemption, defeasance or other acquisition or retirement of Subordinated Obligations or Guarantor Subordinated Obligations of any  Guarantor purchased in anticipation of satisfying a sinking fund obligation, principal  installment or final maturity, in each case due within one year of the date of purchase,  repurchase, redemption, defeasance or other acquisition or retirement; or  (4) make any Restricted Investment (all such payments and other actions referred to in clauses (1) through (4) of this Section 4.08(a) (other  than any exception thereto) shall be referred to as a “Restricted Payment”), unless, at the time of and after  giving effect to such Restricted Payment:   (A) no Event of Default shall have occurred and be continuing (or would result therefrom);  (B) immediately after giving effect to such transaction on a pro forma basis, the Company could Incur $1.00 of additional Indebtedness under Section 4.09(a); and  (C) the aggregate amount of such Restricted Payment and all other Restricted Payments declared or made subsequent to March 31, 2019 (including Restricted  Payments permitted by clauses (4), (5), (6), (7) and (13) of Section 4.08(b) but excluding  Restricted Payments permitted by all other clauses of Section 4.08(b)) would not exceed  the sum of (without duplication):  (i) 50% of Consolidated Net Income for the period (treated as one accounting period) for the cumulative period from March 31, 2019 to and including the end of the most  recent fiscal quarter ending prior to the date of such Restricted Payment for which financial  statements are available (or, in case such Consolidated Net Income is a deficit, an amount equal  to zero); plus  (ii) 100% of the aggregate Net Cash Proceeds and the Fair Market Value of marketable securities or other property received by the Company from the issue or sale of its  Capital Stock (other than Disqualified Stock) or other capital contributions subsequent to March  31, 2019, other than:  (x) Net Cash Proceeds received from an issuance or sale of such Capital Stock to a Subsidiary of the Company or to an employee stock ownership plan, option plan or similar trust to the extent such sale to an employee stock ownership plan, option plan or similar trust is financed by loans from or Guaranteed by the Company or any Restricted Subsidiary unless such loans have been repaid with cash on or prior to the date of determination; and (y) Net Cash Proceeds received by the Company from the issue and sale of its Capital Stock or capital contributions to the extent applied in accordance with Section 4.08(b)(7)(A); plus 

 

-58- (iii) the amount by which Indebtedness of the Company or its Restricted Subsidiaries is reduced on the Company’s consolidated balance sheet upon the conversion or exchange (other  than Indebtedness held by a Subsidiary of the Company) subsequent to March 31, 2019 of any  Indebtedness of the Company or its Restricted Subsidiaries convertible or exchangeable for  Capital Stock (other than Disqualified Stock) of the Company (less the amount of any cash, or the  Fair Market Value of any other property, distributed by the Company upon such conversion or  exchange); plus  (iv) the amount equal to the net reduction in Restricted Investments and received in respect of Restricted Investments made by the Company or any of its Restricted Subsidiaries in  any Person resulting from:  (x) repurchases or redemptions of such Restricted Investments by such Person, proceeds realized upon the sale of such Restricted Investment to a purchaser that is not an Affiliate, repayments of loans or advances or other transfers of assets (including by way of dividend or distribution) by such Person to the Company or any Restricted Subsidiary (other than for reimbursement of tax payments), and the amount of any cancellation of any Guarantee or other contingent obligation constituting a Restricted Investment; or (y) the redesignation of Unrestricted Subsidiaries as Restricted Subsidiaries or the merger or consolidation of an Unrestricted Subsidiary with and into the Company or any of its Restricted Subsidiaries (valued in each case as provided in the definition of “Investment”), which amount in each case under this clause (iv) was previously included in the calculation of  the amount of Restricted Payments; provided, however, that no amount will be included  under this clause (iv) to the extent it is already included in Consolidated Net Income; plus  (v) the greater of (x) $65.0 million and (y) 15.0% of Consolidated EBITDA. (b) The provisions of Section 4.08(a) will not prohibit: (1) any purchase, repurchase, redemption, defeasance or other acquisition or retirement of Capital Stock, Disqualified Stock or Subordinated Obligations of the Company or  Guarantor Subordinated Obligations of any Guarantor made by exchange for, or out of the  proceeds of the substantially concurrent sale of, Capital Stock of the Company (other than  Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary or an employee  stock ownership plan or similar trust to the extent such sale to an employee stock ownership plan  or similar trust is financed by loans from or Guaranteed by the Company or any Restricted  Subsidiary unless such loans have been repaid with cash on or prior to the date of determination);  provided, however, that the Net Cash Proceeds from such sale of Capital Stock will be excluded  from clause (C)(ii) of Section 4.08(a);   (2) any purchase, repurchase, redemption, defeasance or other acquisition or retirement of Subordinated Obligations of the Company or Guarantor Subordinated Obligations  of any Guarantor made by exchange for, or out of the proceeds of the substantially concurrent  sale of, Subordinated Obligations of the Company or any purchase, repurchase, redemption,  defeasance or other acquisition or retirement of Guarantor Subordinated Obligations of any  Guarantor made by exchange for or out of the proceeds of the substantially concurrent sale of  

 

-59- Guarantor Subordinated Obligations of a Guarantor, so long as such refinancing Subordinated  Obligations or Guarantor Subordinated Obligations are permitted to be Incurred pursuant to  Section 4.09 and constitute Refinancing Indebtedness;   (3) any purchase, repurchase, redemption, defeasance or other acquisition or retirement of Disqualified Stock of the Company or a Restricted Subsidiary made by exchange  for or out of the proceeds of the substantially concurrent sale of Disqualified Stock of the  Company or such Restricted Subsidiary, as the case may be, so long as such refinancing  Disqualified Stock is permitted to be Incurred pursuant to Section 4.09 and constitutes  Refinancing Indebtedness;   (4) the purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of any Subordinated Obligation (A) at a purchase price not greater than  101% of the principal amount of such Subordinated Obligation in the event of a Change of  Control Triggering Event in accordance with provisions similar to Section 4.15 or (B) at a  purchase price not greater than 100% of the principal amount thereof in accordance with  provisions similar to Section 4.16; provided that, prior to or simultaneously with such purchase,  repurchase, redemption, defeasance or other acquisition or retirement, the Company has made the  Change of Control Offer or Asset Disposition Offer, as applicable, as provided in such covenant  with respect to the Notes and has completed the repurchase or redemption of all Notes validly  tendered for payment in connection with such Change of Control Offer or Asset Disposition  Offer;   (5) any purchase or redemption of Subordinated Obligations or Guarantor Subordinated Obligations from Net Available Cash to the extent permitted under Section 4.16;  (6) dividends paid within 60 days after the date of declaration if at such date of declaration such dividend would have complied with this Section 4.08;  (7) the purchase, redemption or other acquisition (including by cancellation of Indebtedness), cancellation or retirement for value of Capital Stock or equity appreciation  rights of the Company or any direct or indirect parent of the Company held by any existing or  former directors, officers or employees of the Company or any Subsidiary of the Company or  their assigns, estates or heirs, in each case in connection with the repurchase provisions under  stock option or stock purchase agreements or other agreements to compensate such persons  approved by the Board of Directors of the Company or upon their death, disability or termination;  provided that such Capital Stock or equity appreciation rights were received for services related  to, or for the benefit of, the Company and its Restricted Subsidiaries; and provided, further, that  such redemptions or repurchases pursuant to this clause will not exceed the greater of (x) $21.0  million and (y) 5.0% of Consolidated EBITDA for the most recently ended Test Period in the  aggregate in any fiscal year; provided, further, that any amount not so made as a Restricted  Payment in the fiscal year for which it is permitted may be carried over to be made as a Restricted  Payment in subsequent fiscal years, so long as the aggregate amount of all Restricted Payments  made in reliance on this clause (7) in any fiscal year does not exceed the greater of (x) $42.0  million and (y) 10.0% of Consolidated EBITDA for the most recently ended Test Period,  although such amounts may be increased by an amount not to exceed:  (A) the Net Cash Proceeds from the sale of Capital Stock (other than Disqualified Stock) of the Company and, to the extent contributed to the Company, the  Net Cash Proceeds from the sale of Capital Stock of any of the Company’s direct or  indirect parent companies, in each case to existing or former directors, officers or  

 

-60- employees of the Company, or any of its Subsidiaries that occurs after the Issue Date, to  the extent the Net Cash Proceeds from the sale of such Capital Stock have not otherwise  been applied to the payment of Restricted Payments; plus  (B) the cash proceeds of key man life insurance policies received by the Company or its Restricted Subsidiaries after the Issue Date; less  (C) the amount of any Restricted Payments made since the Issue Date with the Net Cash Proceeds described in clauses (A) and (B) of this clause (7);  (8) the declaration and payment of dividends to holders of any class or series of Disqualified Stock of the Company issued in accordance with the terms of this Indenture to the  extent such dividends are included in the definition of “Consolidated Interest Expense”;  (9) repurchases of Capital Stock deemed to occur upon the exercise, conversion or exchange of stock options, warrants, other rights to purchase Capital Stock or other  convertible or exchangeable securities if such Capital Stock represents all or a portion of the  exercise price thereof;   (10) the distribution, by dividend or otherwise, of shares of Capital Stock of Unrestricted Subsidiaries (other than Unrestricted Subsidiaries the primary assets of which are  cash and/or cash equivalents);  (11) any payment of cash by the Company in respect of fractional shares of the Company’s Capital Stock upon the exercise, conversion or exchange of any stock options,  warrants, other rights to purchase Capital Stock or other convertible or exchangeable securities;  (12) any payment of cash by the Company or any Subsidiary issuer to a holder of Convertible Notes upon conversion or exchange of such Convertible Notes, which cash  payment is made at the election of the Company or such Subsidiary and does not exceed an  amount equal to the principal amount of the Convertible Notes that are converted or exchanged  and any accrued interest paid thereon;  (13) the purchase of any Permitted Bond Hedge; (14) any payments of or in respect of Subordinated Indebtedness in an aggregate amount not to exceed the greater of (x) $53.0 million and (y) 12.5% of Consolidated  EBITDA in the aggregate;  (15) any Restricted Payment, so long as immediately after giving effect to such Restricted Payment, the Net Leverage Ratio is less than 3.00 to 1.00 on a pro forma basis;  (16) other Restricted Payments in an aggregate amount not to exceed $350.0 million;  (17) additional Restricted Payments constituting any part of a Permitted Reorganization; and  (18) any Restricted Payments in respect of required withholding or similar non-U.S. taxes with respect to any existing or former directors, officers or employees of the  Company or any Subsidiary of the Company or their assigns, estates or heirs and any repurchases  of Capital Stock in consideration of such payments, including deemed repurchases in connection  

 

-61- with the exercise of stock options or the issuance of restricted stock units or similar stock based  awards;  provided, however, that at the time of and after giving effect to, any Restricted Payment permitted under  clauses (5), (7), (8), (10), (14), (15) and (16), no Event of Default shall have occurred and be continuing  or would occur as a consequence thereof.  (c) The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of such Restricted Payment of the assets or securities proposed to be transferred or  issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to such Restricted  Payment. The amount of any Restricted Payment paid in cash shall be its face amount.   (d) To the extent any cash or any other property (other than Capital Stock of the Company which is not Disqualified Stock) is distributed by the Company or any of its Restricted  Subsidiaries upon the conversion or exchange of any Indebtedness of the Company or its Restricted  Subsidiaries convertible or exchangeable for Capital Stock of the Company, (1) any amount of such cash  or property that exceeds the principal amount of the Indebtedness that is converted or exchanged and any  accrued interest paid thereon (and only such excess amount) shall be deemed to be a Restricted Payment  described in clause (2) of Section 4.08(a) and (2) the amount of such cash or property up to an amount  equal to the principal amount of the Indebtedness that is converted or exchanged and any accrued interest  paid thereon shall be deemed to be a Restricted Payment described in clause (3) of Section 4.08(a) if such  Indebtedness is a Subordinated Obligation or Guarantor Subordinated Obligation. If the Company or any  of its Restricted Subsidiaries repurchases any Indebtedness of the Company or its Restricted Subsidiaries  convertible or exchangeable for Capital Stock of the Company in the open market at a price in excess of  the principal amount of such Indebtedness and any accrued interest thereon, such excess amount (and  only such excess amount) shall be deemed to be a Restricted Payment described in clause (2) of Section  4.08(a).  (e) For the avoidance of doubt, this Section 4.08 shall not restrict the making of any “AHYDO catch-up payment” with respect to, and required by the terms of, any Indebtedness of the  Company or any of the Restricted Subsidiaries permitted to be incurred under the terms of this Indenture.  Section 4.09 Limitation on Indebtedness.  (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, Incur any Indebtedness (including Acquired Indebtedness); provided, however, that  the Company and any of its Restricted Subsidiaries may Incur Indebtedness if on the date thereof and  after giving effect thereto on a pro forma basis (after giving effect to the application of the proceeds of  such Incurrence) the Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is at  least 2.00 to 1.00; provided, further, that Non-Guarantor Subsidiaries may not Incur Indebtedness  pursuant to the Consolidated Coverage Ratio test under this Section 4.09(a) if, after giving pro forma  effect to such Incurrence (including the application of the proceeds therefrom), more than an aggregate of  the greater of (x) $130.0 million and (y) 30.0% of Consolidated EBITDA at the time of Incurrence of  Indebtedness of Non-Guarantor Subsidiaries would be outstanding pursuant to the Consolidated Coverage  Ratio test under this Section 4.09(a),  (b) The provisions of Section 4.09(a) will not prohibit the Incurrence of the following Indebtedness:  (1) Indebtedness of the Company or any Restricted Subsidiary Incurred under one or more Debt Facilities (including Indebtedness outstanding under the Senior Secured  

 

-62- Credit Facilities on the Issue Date) and the issuance and creation of letters of credit and bankers’  acceptances thereunder (with undrawn trade letters of credit and reimbursement obligations  relating to trade letters of credit satisfied within 30 days being excluded, and bankers’  acceptances being deemed to have a principal amount equal to the face amount thereof), and any  Refinancing Indebtedness of the Company or a Restricted Subsidiary which serves to refinance  any Indebtedness Incurred pursuant to this clause (1), in an aggregate amount outstanding at any  one time not to exceed the sum of (a) $900.0 million, plus (b) the greater of (i) $425.0 million and  (ii) 100.0% of Consolidated EBITDA, plus (c) an additional amount such that on a pro forma basis (after giving effect to the application of the proceeds of such Incurrence), the Secured Net Leverage Ratio is less than or equal to 3.25 to 1.00 (assuming, for purposes of the calculation of the Secured Net Leverage Ratio, that (x) any commitments with respect to Indebtedness under any revolving Debt Facility permitted to be Incurred under this clause (1) are fully drawn on such date and (y) any unsecured Indebtedness Incurred under this clause (1) is treated as Secured Indebtedness); (2) Indebtedness represented by the Notes (including any Note Guarantee) (other than any Additional Notes);  (3) Indebtedness of the Company and its Restricted Subsidiaries in existence on the Issue Date (other than Indebtedness described in clauses (1), (2), (4), (5), (6), (8), (12),  (14) and (17) of this Section 4.09(b)); (4) Guarantees by (A) the Company or Guarantors of Indebtedness permitted to be Incurred by the Company or a Guarantor in accordance with the provisions of this  Indenture; provided that in the event such Indebtedness that is being Guaranteed is a  Subordinated Obligation or a Guarantor Subordinated Obligation, then the related Guarantee shall  be subordinated in right of payment to the Notes or the Note Guarantee, as the case may be, to the  same extent as the Subordinated Obligation or Guarantor Subordinated Obligation, as applicable,  and (B) Non-Guarantor Subsidiaries of Indebtedness Incurred by Non-Guarantor Subsidiaries in  accordance with the provisions of this Indenture;  (5) Indebtedness of the Company owing to and held by any Restricted Subsidiary (other than a Receivables Entity) or Indebtedness of a Restricted Subsidiary owing to  and held by the Company or any other Restricted Subsidiary (other than a Receivables Entity);  provided, however, that for purposes of this clause (5),  (A) any subsequent issuance or transfer of Capital Stock or any other event which results in any such Indebtedness being beneficially held by a Person other  than the Company or a Restricted Subsidiary of the Company (other than a Receivables  Entity); and  (B) any sale or other transfer of any such Indebtedness to a Person other than the Company or a Restricted Subsidiary of the Company (other than a  Receivables Entity),  shall be deemed, in each case under this clause (5), to constitute an Incurrence of such  Indebtedness by the Company or such Restricted Subsidiary, as the case may be, as of the time of  such issuance or transfer;  (6) Disqualified Stock or Preferred Stock of a Restricted Subsidiary held by the Company or any other Restricted Subsidiary (other than a Receivables Entity); provided,  

 

-63- however, (A) any subsequent issuance or transfer of Capital Stock or any other event which  results in such Disqualified Stock or Preferred Stock being beneficially held by a Person other  than the Company or a Restricted Subsidiary of the Company (other than a Receivables Entity)  and (B) any sale or other transfer of any such Disqualified Stock or Preferred Stock to a Person  other than the Company or a Restricted Subsidiary of the Company (other than a Receivables  Entity), shall be deemed, in each case under this clause (6), to constitute an Incurrence of such  Disqualified Stock or Preferred Stock by such Subsidiary, as of the time of such issuance or  transfer;  (7) Indebtedness of (A) the Company or a Restricted Subsidiary Incurred to finance an acquisition or Investment or (B) Persons Incurred and outstanding on the date on  which such Person became a Restricted Subsidiary or all or substantially all of the assets of such  Person were acquired by, or such Person was merged with or into, the Company or any Restricted  Subsidiary (in the case of this clause (B) of clause (7) of Section 4.09(b), other than Indebtedness  Incurred (i) to provide all or any portion of the funds utilized to consummate the transaction or  series of related transactions pursuant to which such Restricted Subsidiary became a Restricted  Subsidiary or was otherwise acquired or merged with or into the Company or a Restricted  Subsidiary or (ii) otherwise in connection with, or in contemplation of, such acquisition or  merger); provided, however, that either   (A) the Company would have been able to Incur $1.00 of additional Indebtedness pursuant to Section 4.09(a) on a pro forma basis after giving effect to such  acquisition, Investment or merger; or  (B) on a pro forma basis, either (x) the Consolidated Coverage Ratio of the Company and its Restricted Subsidiaries would be greater than or equal to such  ratio immediately prior to such Incurrence or (y) the Net Leverage Ratio would be less  than or equal to the greater of (A) the Acquisition Debt Ratio and (B) the Net Leverage  Ratio immediately prior to giving effect to such Incurrence;  (8) Indebtedness under Hedging Obligations (excluding Hedging Obligations entered into for speculative purposes);  (9) Indebtedness (including Capitalized Lease Obligations) of the Company or a Restricted Subsidiary Incurred to finance the acquisition, purchase, lease, construction or  improvement of any property, real property, plant or equipment used or to be used in the business  of the Company or such Restricted Subsidiary, whether through the direct purchase or acquisition  of such property, real property, plant or equipment or through the purchase or acquisition of the  Capital Stock of any Person owning such property, real property, plant or equipment, in an  aggregate outstanding principal amount which, when taken together with the principal amount of  all other Indebtedness Incurred pursuant to this clause (9) and then outstanding and any  outstanding Refinancing Indebtedness under clause (16) of Section 4.09(b) Incurred to refinance  Indebtedness initially Incurred pursuant to this clause (9), will not exceed the greater of (x)  $105.0 million and (y) 25.0% of Consolidated EBITDA at the time of Incurrence;  (10) Indebtedness of Non-Guarantor Subsidiaries and any Refinancing Indebtedness of a Non-Guarantor Subsidiary which serves to refinance any Indebtedness Incurred  pursuant to this clause (10), in an aggregate amount outstanding at any one time not to exceed the  greater of (x) $130.0 million and (y) 30.0% of Consolidated EBITDA at the time of Incurrence;  

 

-64- (11) Indebtedness Incurred by the Company or its Restricted Subsidiaries in respect of workers’ compensation claims, health, disability or other employee benefits or  property, casualty or liability insurance, self-insurance obligations, performance, bid, surety,  appeal and similar bonds and completion Guarantees (not for borrowed money) and similar  obligations in the ordinary course of business;  (12) Indebtedness arising from agreements of the Company or a Restricted Subsidiary providing for indemnification, adjustment of purchase price, earn-out or similar  obligations, or letters of credit, surety bonds or performance bonds securing any obligations of the  Company or any of its Restricted Subsidiaries pursuant to such agreements, in each case, Incurred  or assumed in connection with the acquisition or disposition of any business or assets of the  Company or any business, assets or Capital Stock of a Restricted Subsidiary or any business,  assets or Capital Stock of any Person, other than Guarantees of Indebtedness Incurred by any  Person acquiring all or any portion of such business, assets or Capital Stock for the purpose of  financing such acquisition; provided that with respect to a disposition, the maximum aggregate  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 subsequent changes in value) actually received by the  Company and its Restricted Subsidiaries in connection with such disposition;  (13) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary  course of business; provided, however, that such Indebtedness is extinguished within five  Business Days of Incurrence;  (14) Indebtedness Incurred in Permitted Receivables Financing, or any outstanding Refinancing Indebtedness under clause (16) of this Section 4.09(b) Incurred to  refinance Indebtedness initially Incurred pursuant to this clause (14);  (15) Indebtedness related to any letter of credit issued in the ordinary course of business or created by or for the account of the Company or any of its Restricted Subsidiaries,  other than pursuant to the Senior Secured Credit Facilities, in an aggregate amount which, when  taken together with the principal amount of all other Indebtedness Incurred pursuant to this clause  (15) and then outstanding and any outstanding Refinancing Indebtedness under clause (16) of this Section 4.09(b) Incurred to refinance Indebtedness initially Incurred pursuant to this clause (15), will not exceed $35.0 million; (16) the Incurrence or issuance by the Company or any Restricted Subsidiary of Refinancing Indebtedness that serves to refund or refinance any Indebtedness Incurred as  permitted under Section 4.09(a) and clauses (2), (3), (7), (9), (14), (15),this clause (16) and clause  (23) of this Section 4.09(b), or any combination thereof, or any Indebtedness issued to so refund or refinance such Indebtedness, including additional Indebtedness Incurred to pay premiums (including reasonable, as determined in good faith by the Company, tender premiums), defeasance and discharge costs, accrued interest and fees and expenses in connection therewith; (17) Indebtedness consisting of Indebtedness issued by the Company or any Restricted Subsidiary to existing or former directors, officers or employees of the Company or  any Subsidiary of the Company or their assigns, estates or heirs, in each case to finance the  purchase, redemption or other acquisition of Capital Stock or equity appreciation rights of the  Company to the extent described in clause (7) of Section 4.08(b);  

 

-65- (18) Cash Management Obligations, including Cash Pooling Agreements, and guarantees in respect thereof incurred in the ordinary course of business;  (19) Indebtedness representing installment insurance premiums of the Company or any Restricted Subsidiary owing to insurance companies in the ordinary course of  business;  (20) unsecured guarantees Incurred in the ordinary course of business by the Company of operating leases of Subsidiaries;  (21) (A) Indebtedness of any Restricted Subsidiary located in China and any Refinancing Indebtedness of a Restricted Subsidiary located in China which serves to refinance  any Indebtedness Incurred pursuant to this clause (21)(A) in an aggregate principal amount not to  exceed $50.0 million and (B) Indebtedness of any Restricted Subsidiary located in India and any  Refinancing Indebtedness of a Restricted Subsidiary located in India which serves to refinance  any Indebtedness Incurred pursuant to this clause (21)(B) in an aggregate principal amount not to  exceed $25.0 million;   (22) Indebtedness under any Supply Chain Financing; and (23) in addition to the items referred to in clauses (1) through (22) of this Section 4.09(b), Indebtedness of the Company and its Restricted Subsidiaries in an aggregate  outstanding principal amount which, when taken together with the principal amount of all other  Indebtedness Incurred pursuant to this clause (23) and then outstanding and any outstanding  Refinancing Indebtedness under clause (16) of this Section 4.09(b) Incurred to refinance  Indebtedness initially Incurred pursuant to this clause (23), will not exceed the greater of (x)  $160.0 million and (y) 37.5% of Consolidated EBITDA at the time of Incurrence.  (c) The Company will not Incur any Indebtedness under Section 4.09(b) if the proceeds thereof are used, directly or indirectly, to refinance any Subordinated Obligations of the  Company unless such Indebtedness will be subordinated to the Notes to at least the same extent as such  Subordinated Obligations. No Guarantor will Incur any Indebtedness under Section 4.09(b) if the  proceeds thereof are used, directly or indirectly, to refinance any Guarantor Subordinated Obligations of  such Guarantor unless such Indebtedness will be subordinated to the obligations of such Guarantor under  its Note Guarantee to at least the same extent as such Guarantor Subordinated Obligations. No  Indebtedness will be deemed to be contractually subordinated in right of payment to any other  Indebtedness of the Company or Guarantors solely by virtue of being unsecured, by virtue of being  secured on a junior priority basis, by reason of any liens or guarantees arising or created in respect  thereof, or by virtue of the fact that the holders of any Secured Indebtedness have entered into  intercreditor agreements giving one or more of such holders priority over the other holders in the  collateral held by them.   (d) For purposes of determining compliance with this Section 4.09: (1) in the event that Indebtedness meets the criteria of more than one of the types of Indebtedness described in Section 4.09(b) or may be Incurred under Section 4.09(a), the  Company, in its sole discretion, will classify such item of Indebtedness on the date of Incurrence  and may later reclassify such item of Indebtedness in any manner that complies with Section  4.09(a) or Section 4.09(b) and will be entitled to divide the amount and type of such Indebtedness  among Section 4.09(a) and more than one of the clauses of Section 4.09(a) or Section 4.09(b);  provided that all Indebtedness outstanding on the Issue Date under the Senior Secured Credit  

 

Facilities (including any Indebtedness in respect of commitments outstanding on the Issue Date),  shall be deemed Incurred under clause (1)(a) of Section 4.09(b) (and not Section 4.09(a) or clause  (3) of Section 4.09(b)) and may not later be reclassified; (2) if obligations in respect of letters of credit are Incurred pursuant to a Debt Facility and relate to other Indebtedness, then such letters of credit shall be treated as  Incurred pursuant to clause (1) or (15) of Section 4.09(b) and such other Indebtedness shall not be  included;   (3) except as provided in clause (2) of this Section 4.09(d), Guarantees of, or obligations in respect of letters of credit relating to, Indebtedness that is otherwise included in the  determination of a particular amount of Indebtedness shall not be included in the calculation of  such particular amount; and  (4) any amounts outstanding or permitted to be Incurred under Existing Receivables Financing on the Issue Date shall be treated as being Incurred as of the Issue Date  under clause (14) of Section 4.09(b), whether or not Incurred and outstanding as of such date, and  so long as the total amount outstanding under Existing Receivables Financing does not exceed the  total amount permitted to be Incurred under Existing Receivables Financing as of the Issue Date,  any subsequent transactions under Existing Receivables Financing shall not be deemed, for  purposes of this covenant, to be an Incurrence of additional Indebtedness at such subsequent time.  (e) Accrual of interest, accrual of dividends, the accretion of accreted value, the  amortization of debt discount, the payment of interest in the form of additional Indebtedness and the  payment of dividends in the form of additional shares of Preferred Stock or Disqualified Stock will not be  deemed to be an Incurrence of Indebtedness for purposes of this Section 4.09.   (f) In addition, the Company will not permit any of its Unrestricted Subsidiaries to  Incur any Indebtedness or issue any shares of Disqualified Stock, other than Non-Recourse Debt. If at any  time an Unrestricted Subsidiary becomes a Restricted Subsidiary, any Indebtedness of such Subsidiary  shall be deemed to be Incurred by a Restricted Subsidiary as of such date (and, if such Indebtedness is not  permitted to be Incurred as of such date under this Section 4.09, the Company shall be in Default of this  Section 4.09).   (g) For purposes of determining compliance with any U.S. dollar-denominated  restriction on the Incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness  denominated in a foreign currency shall be calculated based on the relevant currency exchange rate in  effect on the date such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in  the case of revolving credit Indebtedness; provided that if such Indebtedness is Incurred to refinance other  Indebtedness denominated in a foreign currency, and such refinancing would cause the applicable U.S.  dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect  on the date of such refinancing, such U.S. dollar-denominated restriction shall be deemed not to have  been exceeded so long as the principal amount of such Refinancing Indebtedness does not exceed the  principal amount of such Indebtedness being refinanced. Notwithstanding any other provision of this  covenant, the maximum amount of Indebtedness that the Company may Incur pursuant to this covenant  shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rate of currencies.  The principal amount of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a  different currency from the Indebtedness being refinanced, shall be calculated based on the currency  exchange rate applicable to the currencies in which such Refinancing Indebtedness is denominated that is  in effect on the date of such refinancing.  -66-   

 

(h) The Company will not, and will not permit any Guarantor to, directly or indirectly, Incur any Indebtedness (including Acquired Indebtedness) that is or purports to be by its terms  (or by the terms of any agreement governing such Indebtedness) subordinated or junior in right of  payment to any other Indebtedness (including Acquired Indebtedness) of the Company or such Guarantor,  as the case may be, unless such Indebtedness is expressly subordinated in right of payment to the Notes or  such Guarantor’s Guarantee, as the case may be, to the same extent and in the same manner as such  Indebtedness is subordinated to such other Indebtedness of the Company or such Guarantor, as the case  may be. For purposes of the foregoing, no Indebtedness will be deemed to be contractually subordinated  or junior in right of payment to any other Indebtedness solely by virtue of (i) being unsecured or (ii) its  having a junior priority with respect to the same collateral.  Section 4.10 Limitation on Liens.  The Company will not, and will not permit any of its Restricted Subsidiaries to, directly  or indirectly, create, Incur, assume or suffer to exist any Lien (other than Permitted Liens) upon any of its  property or assets (including Capital Stock of Subsidiaries), or income or profits therefrom, whether  owned on the Issue Date or acquired after that date, which Lien is securing any Indebtedness, unless  contemporaneously with the Incurrence of such Liens:  (1) in the case of Liens securing Subordinated Obligations or Guarantor Subordinated Obligations, the Notes and related Note Guarantees are secured by a Lien on such  property, assets or proceeds that is senior in priority to such Liens; or  (2) in all other cases, the Notes and related Note Guarantees are equally and ratably secured or are secured by a Lien on such property, assets or proceeds that is senior in  priority to such Liens.  Any Lien created for the benefit of Holders pursuant to this Section 4.10 shall be automatically and  unconditionally released and discharged upon the release and discharge of each of the related Liens  described in clauses (1) and (2) above.  Section 4.11 Future Guarantors.  (a) The Company will cause (1) each Domestic Subsidiary (other than any Excluded  Subsidiary) that becomes a borrower under the Senior Secured Credit Facilities or that Guarantees, on the  Issue Date or at any time thereafter, the Obligations under the Senior Secured Credit Facilities and (2)  each Domestic Subsidiary (other than any Excluded Subsidiary) that Guarantees any other Material  Indebtedness of the Company or any Guarantor on the Issue Date or at any time thereafter, to execute and  deliver to the Trustee a supplemental indenture substantially in the form provided as Exhibit C to this  Indenture pursuant to which such Domestic Subsidiary will irrevocably and unconditionally Guarantee,  on a joint and several basis, the full and prompt payment of the principal of, premium, if any, and interest  in respect of the Notes on a senior basis and all other Obligations under this Indenture.   (b) The obligations of each Guarantor will be limited to the maximum amount as  will, after giving effect to all other contingent and fixed liabilities of such Guarantor (including, without  limitation, any Guarantees under the Senior Secured Credit Facilities) and after giving effect to any  collections from or payments made by or on behalf of any other Guarantor in respect of the Obligations of  such other Guarantor under its Note Guarantee or pursuant to its contribution Obligations under this  Indenture, result in the Obligations of such Guarantor under its Note Guarantee not constituting a  fraudulent conveyance or fraudulent transfer under federal or state law.  -67-   

 

-68- (c) Each Note Guarantee shall be released in accordance with the provisions of Section 10.06.  Section 4.12 Limitation on Restrictions on Distribution From Restricted Subsidiaries.  (a) The Company will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create or otherwise cause or permit to exist or become effective any consensual  encumbrance or consensual restriction on the ability of any Restricted Subsidiary to:  (1) pay dividends or make any other distributions on its Capital Stock to the Company or any of its Restricted Subsidiaries, or with respect to any other interest or  participation in, or measured by, its profits, or pay any Indebtedness or other obligations owed to  the Company or any Restricted Subsidiary (it being understood that the priority of any Preferred  Stock in receiving dividends or liquidating distributions prior to dividends or liquidating  distributions being paid on Common Stock shall not be deemed a restriction on the ability to  make distributions on Capital Stock);   (2) make any loans or advances to the Company or any Restricted Subsidiary (it being understood that the subordination of loans or advances made to the Company  or any Restricted Subsidiary to other Indebtedness Incurred by the Company or any Restricted  Subsidiary shall not be deemed a restriction on the ability to make loans or advances); or   (3) sell, lease or transfer any of its property or assets to the Company or any Restricted Subsidiary (it being understood that such transfers shall not include any type of  transfer described in clause (1) or (2) of this Section 4.12(a)).  (b) The preceding provisions will not prohibit encumbrances or restrictions existing under or by reason of:  (1) contractual encumbrances or restrictions pursuant to (i) the Senior Secured Credit Facilities and related documentation and (ii) Hedging Obligations and other  agreements or instruments (whether or not related to the Senior Secured Credit Facilities), in each  case in effect at or entered into on the Issue Date;  (2) this Indenture, the Notes and the Note Guarantees; (3) any agreement or other instrument of a Person acquired by the Company or any of its Restricted Subsidiaries in existence at the time of such acquisition (but not created in  contemplation thereof), which encumbrance or restriction is not applicable to any Person, or the  properties or assets of any Person, other than the Person and its Subsidiaries, or the property or  assets of the Person and its Subsidiaries, so acquired (including after-acquired property);  (4) any amendment, restatement, modification, renewal, supplement, refunding, replacement or refinancing of an agreement referred to in this Section 4.12(b);  provided, however, that such amendments, restatements, modifications, renewals, supplements,  refundings, replacements or refinancings are, in the good faith judgment of the Company, not  materially more restrictive, taken as a whole, than the encumbrances and restrictions contained in  the agreements referred to in this Section 4.12(b) on the Issue Date, or the date such Restricted  Subsidiary became a Restricted Subsidiary or was merged into a Restricted Subsidiary, whichever  is applicable;  

 

-69- (5) in the case of clause (3) of Section 4.12(a), Liens permitted to be Incurred under Section 4.10 that limit the right of the debtor to dispose of the assets subject to  such Liens;  (6) purchase money obligations for property acquired in the ordinary course of business and Capitalized Lease Obligations permitted under this Indenture to the extent such  encumbrance or restriction is customary for such purchase money obligation or Capitalized Lease  Obligation;  (7) contracts for the sale of assets, including customary restrictions with respect to a Subsidiary of the Company pursuant to an agreement that has been entered into for  the sale or disposition of all or a portion of the Capital Stock or assets of such Subsidiary;   (8) restrictions on cash or other deposits or net worth imposed by customers or suppliers, or required by insurance, surety or bonding companies;  (9) any customary provisions in joint venture agreements relating to Permitted Joint Ventures that are not Restricted Subsidiaries and other similar agreements;  (10) any customary provisions (including anti-assignment, net worth and similar provisions) in leases, subleases or licenses and other agreements entered into by the  Company or any Restricted Subsidiary;   (11) encumbrances or restrictions arising or existing by reason of applicable law or any applicable rule, regulation or order;  (12) any Purchase Money Note or other Indebtedness or contractual requirements Incurred with respect to a Permitted Receivables Financing relating exclusively to a  Receivables Entity that, in the good faith determination of the Senior Management of the  Company, are necessary to effect such Permitted Receivables Financing; and  (13) any agreement or instrument governing any Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred or issued under this Indenture that contains  encumbrances and other restrictions that either (x) are no more restrictive in any material respect  taken as a whole with respect to any Restricted Subsidiary than (i) the restrictions contained in  this Indenture or the Senior Secured Credit Facilities as of the Issue Date or, in the case of any  Refinancing Indebtedness, in the Indebtedness being refinanced, or (ii) those encumbrances and  other restrictions that are in effect on the Issue Date with respect to that Restricted Subsidiary  pursuant to agreements in effect on the Issue Date, (y) are not materially more disadvantageous,  taken as a whole, to the Holders than is customary in comparable financings for similarly situated  issuers or (z) will not otherwise materially impair the Company’s ability to make payments on the  Notes when due, in each case in the good faith judgment of Senior Management of the Company.  Section 4.13 Designation of Restricted and Unrestricted Subsidiaries.  (a) The Company may designate after the Issue Date any Subsidiary (including any newly acquired or newly formed Subsidiary) as an “Unrestricted Subsidiary” under this Indenture (a  “Designation”) only if:  (1) no Default or Event of Default has occurred and is continuing after giving effect to such Designation;  

 

(2) the Subsidiary to be so designated and its Subsidiaries do not at the time of Designation own any Capital Stock or Indebtedness of, or own or hold any Lien with respect  to, the Company or any other Restricted Subsidiary of the Company that is not a Subsidiary of the  Subsidiary so designated;  (3) all the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of designation, and will at all times thereafter, consist of Non-Recourse Debt;  (4) such Subsidiary is a Person with respect to which neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation:  (A) to subscribe for additional Capital Stock of such Subsidiary; or (B) to maintain or preserve such Subsidiary’s financial condition or to cause such Subsidiary to achieve any specified levels of operating results; and (5) either (A) the Subsidiary to be so designated has total consolidated assets of $1,000 or less or (B) if such Subsidiary has consolidated assets greater than $1,000, then such  Designation would be permitted under Section 4.08 or the definition of “Permitted Investment.”  (b) The Company may revoke any Designation of a Subsidiary as an Unrestricted Subsidiary (a “Revocation”) only if, immediately after giving effect to such Revocation:  (1) (A) The Company would be able to Incur at least $1.00 of additional Indebtedness pursuant to Section 4.09(a) or (B) the Consolidated Coverage Ratio of the Company  and its Restricted Subsidiaries would be greater than or equal to such ratio for the Company and  its Restricted Subsidiaries immediately prior to such Revocation, in each case on a pro forma  basis taking into account such Revocation;   (2) all Liens of such Unrestricted Subsidiary outstanding immediately following such Revocation would, if Incurred at such time, have been permitted to be Incurred for  all purposes of this Indenture; and  (3) no Default or Event of Default has occurred and is continuing after giving effect to such Revocation.  (c) Any such Designation or Revocation shall be evidenced to the Trustee by filing  with the Trustee a certified copy of the resolution of the Board of Directors of the Company giving effect  to such Designation or Revocation, as the case may be, and an Officers’ Certificate and an Opinion of  Counsel certifying that such Designation or Revocation complies with the foregoing conditions.   (d) A Revocation will be deemed to be an Incurrence of Indebtedness by a Restricted  Subsidiary of any outstanding Indebtedness of such Unrestricted Subsidiary. If, at any time, any  Unrestricted Subsidiary would fail to meet the foregoing requirements as an Unrestricted Subsidiary, it  shall thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture, and any  Indebtedness of such Subsidiary shall be deemed to be Incurred as of such date.   Section 4.14 Transactions with Affiliates.  (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or conduct any transaction (including the purchase, sale, lease or  -70-   

 

-71- exchange of any property or asset or the rendering of any service) with any Affiliate of the Company (an  “Affiliate Transaction”) involving aggregate payments or consideration in excess of $15.0 million, unless:  (1) the terms of such Affiliate Transaction are, taken as a whole, no less favorable to the Company or such Restricted Subsidiary, as the case may be, than those that could  have been obtained by the Company or such Restricted Subsidiary in a comparable transaction at  the time of such transaction in arm’s-length dealings with a Person that is not an Affiliate; and  (2) in the event such Affiliate Transaction involves an aggregate consideration in excess of $30.0 million, either (x) the terms of such transaction have been  approved by a majority of the members of such Board of Directors; or (y) the Company has  received a written opinion from an Independent Financial Advisor stating that such Affiliate  Transaction is fair to the Company or such Restricted Subsidiary from a financial point of view or  stating that the terms, taken as a whole, are not materially less favorable than those that might  reasonably have been obtained by the Company or such Restricted Subsidiary in a comparable  transaction at such time on an arm’s-length basis from a Person that is not an Affiliate.  (b) Section 4.14(a) will not apply to: (1) any transaction between the Company and a Restricted Subsidiary (other than a Receivables Entity) or between Restricted Subsidiaries (other than a Receivables Entity or  Receivables Entities) and any Guarantees issued by the Company or a Restricted Subsidiary for  the benefit of the Company or a Restricted Subsidiary, as the case may be, in accordance with  Section 4.09;  (2) Restricted Payments permitted to be made pursuant to Section 4.08 and Permitted Investments (other than Permitted Investments made pursuant to clause (2) or (17) of  the definition thereof);  (3) any issuance of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or as the funding of, employment agreements and other  compensation arrangements, options to purchase Capital Stock of the Company, restricted stock  plans, long-term incentive plans, stock appreciation rights plans, participation plans, severance  agreements or similar employee benefits plans and/or indemnity provided on behalf of directors,  officers, employees or consultants approved by the Board of Directors of the Company;  (4) the payment of reasonable and customary fees paid to and indemnity provided on behalf of, directors, officers, employees or consultants of the Company or any  Restricted Subsidiary;  (5) loans or advances to employees, officers or directors of the Company or any Restricted Subsidiary in the ordinary course of business consistent with past practice, in an  aggregate amount not to exceed the greater of (x) $10.5 million and (y) 2.5% of Consolidated  EBITDA at any one time outstanding (without giving effect to the forgiveness of any such loan);  (6) any transaction pursuant to any agreement as in effect as of the Issue Date, as these agreements may be amended, modified, supplemented, extended or renewed from  time to time, so long as any such amendment, modification, supplement, extension or renewal is  not more disadvantageous to the Holders in any material respect in the good faith judgment of the  Board of Directors of the Company, when taken as a whole, than the terms of the agreements in  effect on the Issue Date;  

 

-72- (7) any agreement between any Person and an Affiliate of such Person existing at the time such Person is acquired by or merged into the Company or a Restricted  Subsidiary; provided that such agreement was not entered into in contemplation of such  acquisition or merger, and any amendment thereto, so long as any such amendment is not  disadvantageous to the Holders in the good faith judgment of the Board of Directors of the  Company, when taken as a whole, as compared to the applicable agreement as in effect on the  date of such acquisition or merger;   (8) transactions with customers, clients, suppliers or purchasers or sellers of goods or services, in each case in the ordinary course of the business of the Company and its  Restricted Subsidiaries, and otherwise in compliance with the terms of this Indenture; provided  that in the reasonable determination of the members of the Board of Directors or Senior  Management of the Company, such transactions are on terms that are no less favorable to the  Company or the relevant Restricted Subsidiary than those that could have been obtained at the  time of such transactions in a comparable transaction by the Company or such Restricted  Subsidiary with an unrelated Person;  (9) sales or other transfers or dispositions of accounts receivable and other related assets customarily transferred in an asset securitization transaction involving accounts  receivable to a Receivables Entity in a Permitted Receivables Financing, and acquisitions of  Permitted Investments in connection with a Permitted Receivables Financing; and  (10) transactions in which the Company or any Restricted Subsidiary delivers to the Trustee a letter from an Independent Financial Advisor stating that such transaction is fair  to the Company or such Restricted Subsidiary from a financial point of view or stating that the  terms, taken as a whole, are not materially less favorable than those that might reasonably have  been obtained by the Company or such Restricted Subsidiary in a comparable transaction at such  time on an arm’s-length basis from a Person that is not an Affiliate.  Section 4.15 Offer to Repurchase Upon Change of Control Triggering Event.  (a) If a Change of Control Triggering Event occurs, unless the Company has exercised its right to redeem all of the Notes pursuant to Sections 3.03 and 3.07 (including by providing  notice of optional redemption in accordance with Section 3.03), the Company will make an offer to  purchase all of the Notes (the “Change of Control Offer”) at a purchase price in cash equal to 101% of the  aggregate principal amount of the Notes plus accrued and unpaid interest, if any, to, but excluding, the  date of purchase (the “Change of Control Payment”), subject to the right of Holders of record on a Record  Date to receive any interest due on the Change of Control Payment Date. No later than 30 days following  any Change of Control Triggering Event, unless the Company has exercised its right to redeem all of the  Notes pursuant to Sections 3.03 and 3.07 (including by providing notice of optional redemption in  accordance with Section 3.03), the Company will send a notice of such Change of Control Offer to each  Holder or otherwise deliver notice in accordance with the applicable procedures of DTC, with a copy to  the Trustee, stating:  (1) that a Change of Control Offer is being made pursuant to this Section 4.15 and that all Notes properly tendered pursuant to such Change of Control Offer will be  accepted for purchase by the Company at a purchase price in cash equal to 101% of the principal  amount of such Notes plus accrued and unpaid interest, if any, to, but excluding, the Change of  Control Payment Date (subject to the right of Holders of record on the applicable Record Date to  receive interest due on the Change of Control Payment Date);  

 

-73- (2) the purchase date (which shall be no earlier than 10 days nor later than 60 days from the date such notice is mailed or otherwise delivered in accordance with the  Applicable Procedures), except in the case of a conditional Change of Control Offer made in  advance of a Change of Control Triggering Event as described in clause (a)(3) of this Section  4.15 (such purchase date, the “Change of Control Payment Date”);  (3) if such notice is delivered prior to the occurrence of a Change of Control Triggering Event, that the Change of Control Offer is conditioned upon the occurrence of such  Change of Control Triggering Event and setting forth a brief description of the definitive  agreement for the transaction that could result in the occurrence of the Change of Control  Triggering Event, describing each such condition, and, if applicable, stating that, in the  Company’s discretion, the Change of Control Payment Date may be delayed until such time  (including more than 60 days after the notice is mailed or delivered, including by electronic  transmission) as any or all such conditions shall be satisfied, or that such repurchase may not  occur and such notice may be rescinded in the event that any or all such conditions shall not have  been satisfied by the Change of Control Payment Date, or by the Change of Control Payment  Date as so delayed or such notice or offer may be rescinded at any time in the Company’s sole  discretion if the Company determines that any or all of such conditions will not be satisfied;  (4) that Notes must be tendered in multiples of $1,000, and any Note not properly tendered will remain outstanding and continue to accrue interest;  (5) that, unless the Company defaults in the payment of the Change of Control Payment, any Note accepted for payment pursuant to the Change of Control Offer will  cease to accrue interest on and after the Change of Control Payment Date;  (6) that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender such Notes, with the form entitled “Option of  Holder to Elect Purchase” on the reverse of such Notes completed or to transfer such Notes by  book-entry transfer, to the Paying Agent specified in the notice at the address specified in the  notice prior to the close of business on the third Business Day preceding the Change of Control  Payment Date;  (7) that Holders shall be entitled to withdraw their tendered Notes and their election to require the Company to purchase such Notes; provided that the Paying Agent receives  at the address specified in the notice, not later than the expiration time of the day of the Change of  Control Offer, notice, a telegram, facsimile transmission or letter setting forth the name of the  Holder of the Notes, the principal amount of Notes tendered for purchase, and a statement that  such Holder is withdrawing its tendered Notes and its election to have such Notes purchased;  (8) that if a Holder is tendering less than all of its Notes, such Holder will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered  (the unpurchased portion of the Notes must be equal to $2,000 or an integral multiple of $1,000 in  excess thereof); and  (9) the procedures determined by the Company, consistent with this Section 4.15 that a Holder must follow in order to have its Notes purchased.  The notice, if mailed or delivered in a manner herein provided, shall be conclusively presumed to have  been given, whether or not the Holder receives such notice. If (A) the notice is mailed or delivered in a  manner herein provided and (B) any Holder fails to receive such notice or a Holder receives such notice  

 

but it is defective, such Holder’s failure to receive such notice or such defect shall not affect the validity  of the proceedings for the purchase of the Notes as to all other Holders that properly received such notice  without defect.  (b) On the Change of Control Payment Date, the Company will, to the extent lawful: (1) accept for payment all Notes or portions of Notes (in principal amounts of $2,000 and integral multiples of $1,000 in excess thereof) properly tendered pursuant to the  Change of Control Offer; provided that if, following purchase of a portion of a Note, the  remaining principal amount of such Note outstanding immediately after such purchase would be  less than $2,000, then the portion of such Note so purchased shall be reduced so that the  remaining principal amount of such Note outstanding immediately after such purchase is $2,000;  (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes so tendered; and  (3) deliver or cause to be delivered to the Trustee for cancellation the Notes so purchased together with an Officers’ Certificate and an Opinion of Counsel stating the  aggregate principal amount of Notes or portions of Notes being purchased by the Company is in  accordance with this Section 4.15.  (c) The Paying Agent will promptly mail or wire transfer (or otherwise deliver in  accordance with the Applicable Procedures) to each Holder of Notes so tendered the Change of Control  Payment for such Notes, and the Company will promptly issue and, upon delivery of an authentication  order from the Company, the Trustee will promptly authenticate and mail (or otherwise deliver in  accordance with the Applicable Procedures or cause to be transferred by book entry) to each Holder a  new Note (it being understood that, notwithstanding anything herein to the contrary, no Opinion of  Counsel will be required for the Trustee to authenticate and mail, deliver or transfer such new Note) equal  in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such  new Note will be in a principal amount of $2,000 or integral multiples of $1,000 in excess thereof.  (d) If the Change of Control Payment Date is on or after a Record Date and on or  before the related Interest Payment Date, any accrued and unpaid interest to the Change of Control  Payment Date will be paid on the Change of Control Payment Date to the Person in whose name a Note is  registered at the close of business on such Record Date.  (e) The Company will not be required to make a Change of Control Offer upon a  Change of Control Triggering Event if a third party makes the Change of Control Offer in the manner, at  the times and otherwise in compliance with the requirements set forth in this Section 4.15 applicable to a  Change of Control Offer made by the Company and purchases all Notes validly tendered and not  withdrawn under such Change of Control Offer.  Notwithstanding anything to the contrary herein, a  Change of Control Offer may be made in advance of a Change of Control Triggering Event and  conditioned upon the occurrence of such Change of Control Triggering Event, if a definitive agreement is  in place for the transaction that could result in the occurrence of a Change of Control Triggering Event at  the time the Change of Control Offer is made.  (f) The Company will comply, to the extent applicable, with the requirements of  Rule 14e-1 under the Exchange Act and any other securities laws or regulations in connection with the  purchase of Notes pursuant to a Change of Control Offer. To the extent that the provisions of any  securities laws or regulations conflict with provisions of this Indenture, the Company will comply with  -74-   

 

-75- the applicable securities laws and regulations and will not be deemed to have breached its obligations  under this Indenture by virtue of the conflict.  (g) Other than as specifically provided in this Section 4.15, any purchase pursuant to this Section 4.15 shall be made pursuant to the provisions of Sections 3.05 and 3.06.  (h) The provisions of this Section 4.15 with respect to the Company’s obligation to make a Change of Control Offer may be waived or modified with the written consent of the Holders of a  majority in principal amount of the Notes prior to the time at which a Change of Control Triggering Event  has occurred. A Change of Control Offer may be made at the same time as consents are solicited with  respect to an amendment, supplement or waiver of this Indenture pursuant to Article 9, the Notes and/or  the Note Guarantees so long as the offer to purchase a Holder’s Notes in the tender offer is not  conditioned upon the delivery of consents by such Holder. In addition, the Company or any third party  approved in writing by the Company that is making the Change of Control Offer may increase or decrease  the Change of Control Payment (or decline to pay any early tender or similar premium) being offered to  Holders at any time in its sole discretion, so long as the Change of Control Payment is at least equal to  101% of the aggregate principal amount of the Notes being repurchased, plus accrued and unpaid interest  thereon.  Section 4.16 Asset Dispositions.  (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, consummate any Asset Disposition unless:  (1) except in the case of an Asset Disposition of an Investment in a Permitted Joint Venture if and to the extent such an Asset Disposition is required by, or made  pursuant to, buy/sell arrangements between the joint venture parties, the Company or such  Restricted Subsidiary, as the case may be, receives consideration at least equal to the Fair Market  Value (such Fair Market Value to be determined on the date of contractually agreeing to such  Asset Disposition) of the shares and assets subject to such Asset Disposition; and  (2) if the Fair Market Value of such Asset Disposition received by the Company or such Restricted Subsidiary exceeds $50.0 million, at least 75% of the consideration  from such Asset Disposition received by the Company or such Restricted Subsidiary, as the case  may be, is in the form of cash or Cash Equivalents.  For the purposes of clause (2) of this Section 4.16(a) and for no other purpose, the following will be  deemed to be cash:  (1) any liabilities (as shown on the Company’s or such Restricted Subsidiary’s most recent balance sheet) of the Company or any Restricted Subsidiary that are  assumed by the transferee of any such assets and from which the Company and all Restricted  Subsidiaries have been validly released by all creditors in respect of such liabilities in writing;  (2) any securities, notes or other obligations received by the Company or any Restricted Subsidiary from the transferee that are converted by the Company or such Restricted  Subsidiary into cash (to the extent of the cash received) within 180 days following the closing of  such Asset Disposition;   (3) any Designated Non-cash Consideration received by the Company or any of its Restricted Subsidiaries in such Asset Disposition having an aggregate Fair Market Value,  taken together with all other Designated Non-cash Consideration received pursuant to this clause  

 

-76- (3) that is at that time outstanding, not to exceed the greater of (x) $105.0 million and (y) 25.0% of Consolidated EBITDA at the time of the receipt of such Designated Noncash Consideration (with the Fair Market Value of each item of Designated Non-cash Consideration being measured at the time received without giving effect to subsequent changes in value); (4) any cash consideration paid to the Company or a Restricted Subsidiary in connection with the Asset Disposition that is held in escrow or on deposit to support  indemnification, adjustment of purchase price or similar obligations in respect of such Asset  Disposition;  (5) Additional Assets; and (6) any combination of the consideration specified in clauses (1) through (5) above.  (b) Within 540 days from the later of the date of such Asset Disposition or the receipt of such Net Available Cash, an amount equal to 100% of the Net Available Cash from such Asset  Disposition may be applied by the Company or such Restricted Subsidiary, as the case may be, as  follows:   (A) to permanently reduce (and, in the case of a revolving Debt Facility, permanently reduce commitments with respect thereto): (i) Secured Indebtedness under  the Senior Secured Credit Facilities or (ii) Secured Indebtedness of the Company (other  than any Disqualified Stock or Subordinated Obligations) or Secured Indebtedness of a  Guarantor or Indebtedness of a Non-Guarantor Subsidiary (other than any Disqualified  Stock or Guarantor Subordinated Obligations), in each case other than Indebtedness owed  to the Company or any Restricted Subsidiary of the Company;  (B) to permanently reduce obligations under other Indebtedness of the Company (other than any Disqualified Stock or Subordinated Obligations) or  Indebtedness of a Guarantor (other than any Disqualified Stock or Guarantor  Subordinated Obligations), in each case other than Indebtedness owed to the Company or  an Affiliate of the Company; provided that the Company shall either (i) equally and  ratably reduce Obligations under the Notes, as provided under Section 3.07, through open  market purchases at privately negotiated prices (which may be below 100% of the  principal amount thereof) or (ii) make an offer (in accordance with the procedures set  forth in this Section 4.16 for an Asset Disposition Offer) to all Holders to purchase their  Notes on a ratable basis at 100% of the principal amount thereof, in each case plus the  amount of accrued but unpaid interest, if any, on the Notes that are purchased or  redeemed;   (C) to invest in Additional Assets; or (D) any combination of the foregoing; provided that pending the final application of any such Net Available Cash in accordance with  clause (A), (B), (C) or (D) of this Section 4.16(b), the Company and its Restricted Subsidiaries  may temporarily reduce Indebtedness (including under a revolving Debt Facility) or otherwise  invest such Net Available Cash in any manner not prohibited by this Indenture; provided, further,  that in the case of clause (C) of this Section 4.16(b), a binding commitment to invest in  Additional Assets shall be treated as a permitted application of the Net Available Cash from the  

 

date of such commitment so long as the Company or a Restricted Subsidiary enters into such  commitment with the good faith expectation that such Net Available Cash will be applied to  satisfy such commitment within 180 days of such commitment (an “Acceptable Commitment”)  and such Net Available Cash is actually applied in such manner within the later of 540 days from  the consummation of the Asset Disposition and 180 days from the date of the Acceptable  Commitment, and in the event any Acceptable Commitment is later canceled or terminated for  any reason before the Net Available Cash is applied in connection therewith, the Company or  such Restricted Subsidiary enters into another Acceptable Commitment (a “Second  Commitment”) within 180 days of such cancellation or termination and such Net Available Cash  is actually applied in such manner within 180 days from the date of the Second Commitment, it  being understood that if a Second Commitment is later cancelled or terminated for any reason  before such Net Available Cash is applied, then such Net Available Cash shall constitute Excess  Proceeds.  (c) Notwithstanding any other provisions of this Section 4.16, (i) to the extent that  the application of any or all of the Net Available Cash of any Asset Disposition by the Company or a  Foreign Subsidiary (a “Foreign Disposition”) is (x) prohibited or materially delayed by applicable local  law or (y) prohibited or materially delayed by applicable organizational documents or any agreement  from being repatriated to the United States, an amount equal to the portion of such Net Available Cash so  affected will not be required to be applied in compliance with this covenant, and such amount may be  retained by the Company or the applicable Foreign Subsidiary; provided that if at any time within one  year following the date on which the respective payment would otherwise have been required, such  repatriation of any of such affected Net Available Cash is permitted under the applicable local law or the  applicable organizational document or agreement, an amount equal to such amount of Net Available Cash  so permitted to be repatriated will be promptly applied (net of any taxes, costs or expenses that would be  payable or reserved against if such amounts were actually repatriated whether or not they are repatriated)  in compliance with this covenant and (ii) to the extent that the Company has determined in good faith that  repatriation of any or all of the Net Available Cash of any Foreign Disposition (or the obligation to do so)  would have a material adverse tax consequence (which for the avoidance of doubt, includes, but is not  limited to, the Company, any Restricted Subsidiary or any of their respective Affiliates and/or their  equityholders potentially incurring a material tax liability, including as a result of a tax dividend, a  deemed dividend pursuant to Code Section 956 or a withholding tax), the Net Available Cash so affected  may be retained by the Company or the applicable Foreign Subsidiary and an amount equal to such Net  Available Cash will not be required to be applied in compliance with this covenant (and for the avoidance  of doubt, there is no obligation to do otherwise). The non-application of any prepayment amounts as a  consequence of the foregoing provisions will not, for the avoidance of doubt, constitute a Default or an  Event of Default. For the avoidance of doubt, nothing herein shall be construed to require the Company or  any Subsidiary to repatriate cash.  (d) Any Net Available Cash from Asset Dispositions that is not applied or invested  as provided and within the time period set forth in Section 4.16(b) shall be deemed to constitute “Excess  Proceeds.” When the aggregate amount of Excess Proceeds exceeds $50.0 million, the Company will be  required to make an offer (an “Asset Disposition Offer”) to all Holders and, to the extent required by the  terms of any outstanding Pari Passu Indebtedness, to all holders of such Pari Passu Indebtedness, to  purchase the maximum aggregate principal amount or accreted value, as applicable, of Notes and any  such Pari Passu Indebtedness that may be purchased out of the Excess Proceeds on a pro rata basis based  on the aggregate principal amount or accreted value, as applicable, of Notes and Pari Passu Indebtedness  validly tendered and not properly withdrawn, at an offer price in cash in an amount equal to 100% of the  principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase (subject to the  right of Holders of record on a Record Date to receive interest due on the Asset Disposition Purchase  -77-   

 

-78- Date), in accordance with the procedures set forth in Section 3.08 or the agreements governing the Pari  Passu Indebtedness, as applicable, in the case of the Notes in integral multiples of $1,000; provided that  if, following repurchase of a portion of a Note, the remaining principal amount of such Note outstanding  immediately after such repurchase would be less than $2,000, then the portion of such Note so  repurchased shall be reduced so that the remaining principal amount of such Note outstanding  immediately after such repurchase is $2,000. The Company shall commence an Asset Disposition Offer  with respect to Excess Proceeds by mailing (or otherwise communicating in accordance with the  Applicable Procedures) the notice required by Section 3.09, with a copy to the Trustee. The Company  may satisfy the foregoing obligations with respect to any Net Available Cash from an Asset Disposition  by making an Asset Disposition Offer with respect to such Net Available Cash prior to the expiration of  the relevant 540 day period (or such longer period provided above) or with respect to Excess Proceeds of  $50.0 million or less.  (e) To the extent that the aggregate amount of Notes and Pari Passu Indebtedness validly tendered and not properly withdrawn pursuant to an Asset Disposition Offer is less than the  Excess Proceeds, the Company may use any remaining Excess Proceeds for any purpose not prohibited  by this Indenture. If the aggregate principal amount of Notes and Pari Passu Indebtedness validly tendered  and not properly withdrawn pursuant to an Asset Disposition Offer exceeds the amount of Excess  Proceeds, subject to the Applicable Procedures, the Trustee shall select the Notes to be purchased on a  pro rata basis on the basis of the principal amount of tendered Notes required to be purchased pursuant to  the immediately preceding paragraph, and the selection of such Pari Passu Indebtedness to be purchased  shall be made pursuant to the terms of such Pari Passu Indebtedness. Upon completion of such Asset  Disposition Offer, the amount of Excess Proceeds shall be reset at zero.   (f) The Asset Disposition Offer will remain open for a period of 20 Business Days following its commencement, except to the extent that a longer period is required by applicable law (the  “Asset Disposition Offer Period”). No later than five Business Days after the termination of the Asset  Disposition Offer Period (the “Asset Disposition Purchase Date”), the Company will apply all Excess  Proceeds to the purchase of the aggregate principal amount of Notes and, if applicable, Pari Passu  Indebtedness (on a pro rata basis, if applicable), required to be offered for purchase pursuant to this  Section 4.16 (the “Asset Disposition Offer Amount”) and the governing documentation relating to Pari  Passu Indebtedness or, if less than the Asset Disposition Offer Amount has been so validly tendered, all  Notes and Pari Passu Indebtedness validly tendered in response to the Asset Disposition Offer. Payment  for any Notes so purchased will be made in the same manner as interest payments are made.  (g) The provisions of this Section 4.16 with respect to the Company’s obligation to make an Asset Disposition Offer may be waived or modified with the written consent of the Holders of a  majority in principal amount of the Notes prior to the time at which the obligation to make an Asset  Disposition Offer arises.  Section 4.17 Effectiveness of Covenants.  (a) Following the first day (such date, a “Suspension Date”): (1) the Notes have an Investment Grade Rating from any two of the three Rating Agencies; and  (2) no Default has occurred and is continuing under this Indenture, the Company and its Restricted Subsidiaries will not be subject to the provisions of  Sections 4.08, 4.09, 4.11 (but only with respect to a Person that is required to become a  

 

Guarantor after the applicable Suspension Date), 4.12, 4.13, 4.14, 4.16 and 5.01(a)(4)  (collectively, the “Suspended Covenants”).   (b) If at any time after a Suspension Date the Notes’ credit rating is downgraded  from an Investment Grade Rating by any Rating Agency or if a Default or Event of Default occurs and is  continuing, then the Suspended Covenants will thereafter be reinstated as if such covenants had never  been suspended (the “Reinstatement Date”) and be applicable pursuant to the terms of this Indenture  (including in connection with performing any calculation or assessment to determine compliance with the  terms of this Indenture), unless and until the Notes subsequently attain an Investment Grade Rating from  any two of the three Rating Agencies and no Default or Event of Default is in existence (in which event  the Suspended Covenants shall no longer be in effect for such time that the Notes maintain an Investment  Grade Rating from any two of the three Rating Agencies and no Default or Event of Default is in  existence); provided, however, that no Default, Event of Default or breach of any kind shall be deemed to  exist under this Indenture, the Notes or the Note Guarantees with respect to the Suspended Covenants  based on, and none of the Company or any of its Subsidiaries shall bear any liability for, any actions  taken or events occurring during the Suspension Period, or any actions taken at any time pursuant to any  contractual obligation arising during a Suspension Period, in each case regardless of whether such actions  or events would have been permitted if the applicable Suspended Covenants remained in effect during  such period. The period of time between the Suspension Date and the Reinstatement Date is referred to as  the “Suspension Period.”  (c) On the Reinstatement Date, all Indebtedness Incurred during the Suspension  Period will be classified to have been Incurred pursuant to clause (3) of Section 4.09(b). Calculations  made after the Reinstatement Date of the amount available to be made as Restricted Payments under  Section 4.08 will be made as though Section 4.08 had been in effect since the Issue Date and throughout  the Suspension Period. Accordingly, Restricted Payments made during the Suspension Period will reduce  the amount available to be made as Restricted Payments under Section 4.08(a) on and after the  Reinstatement Date.  (d) During any period when the Suspended Covenants are suspended, the Board of  Directors of the Company may not designate any of the Company’s Subsidiaries as Unrestricted  Subsidiaries pursuant to this Indenture unless the Company’s Board of Directors would have been able,  under the terms of this Indenture, to designate such Subsidiaries as Unrestricted Subsidiaries if the  Suspended Covenants were not suspended. Notwithstanding that the Suspended Covenants may be  reinstated, no Default or Event of Default will be deemed to have occurred as a result of a failure to  comply with the Suspended Covenants during the Suspension Period. In addition, the Company and its  Restricted Subsidiaries will be permitted to honor any contractual commitments made during a  Suspension Period following a Reinstatement Date.  (e) Promptly following the occurrence of any Suspension Date or Reinstatement  Date, the Company shall provide an Officers’ Certificate to the Trustee regarding such occurrence. The  Trustee shall have no obligation to independently determine or verify if a Suspension Date or  Reinstatement Date has occurred or notify the Holders of any Suspension Date or Reinstatement Date.   The Trustee may provide a copy of such Officers’ Certificate to any Holder of Notes upon request.    -79-   

 

-80- ARTICLE 5  SUCCESSORS  Section 5.01 Merger, Consolidation or Sale of All or Substantially All Assets.  (a) The Company will not consolidate with or merge with or into or wind up into (whether or not the Company is the surviving corporation), or sell, assign, convey, transfer, lease or  otherwise dispose of all or substantially all of the assets of the Company and its Restricted Subsidiaries,  taken as a whole, in one or more related transactions, to any Person unless:  (1) the resulting, surviving or transferee Person (the “Successor Company”) is a corporation or limited liability company organized and existing under the laws of the United  States of America, any state or territory thereof or the District of Columbia, and if such entity is  not a corporation, a co-obligor of the Notes is a corporation organized or existing under such  laws;  (2) the Successor Company (if other than the Company) expressly assumes all of the obligations of the Company under the Notes and this Indenture pursuant to a  supplemental indenture;  (3) immediately after giving pro forma effect to such transaction, no Default or Event of Default shall have occurred and be continuing;  (4) immediately after giving pro forma effect to such transaction and any related financing transactions, as if such transactions had occurred at the beginning of the  applicable four-quarter period,  (A) the Successor Company would be able to Incur at least $1.00 of additional Indebtedness pursuant to Section 4.09(a); or  (B) the Consolidated Coverage Ratio of the Successor Company and its Restricted Subsidiaries would be greater than such ratio for the Company and its  Restricted Subsidiaries immediately prior to such transaction;  (5) unless the Company is the Successor Company, each Guarantor (unless it is the other party to the transactions described above, in which case clause (1) of Section 5.01(b)  shall apply) shall have by supplemental indenture confirmed that its Note Guarantee shall apply  to such Successor Company’s obligations under this Indenture and the Notes; and  (6) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, winding up or  disposition, and such supplemental indenture, if any, comply with this Indenture.  (b) Subject to certain limitations, the Successor Company will succeed to, and be substituted for, the Company under this Indenture, the Notes and the Note Guarantees. Notwithstanding  clauses (4) or (6) of Section 5.01(a):  (1) any Restricted Subsidiary may consolidate with, merge with or into or transfer all or part of its properties and assets to the Company;  

 

(2) the Company may merge with an Affiliate of the Company solely for the purpose of reincorporating or forming the Company in another state or territory of the United  States of America or the District of Columbia, so long as the amount of Indebtedness of the  Company and its Restricted Subsidiaries is not increased thereby; and  (3) any Non-Guarantor Subsidiary may consolidate with or merge into or transfer all or part of its properties and assets to the Company or a Guarantor.  (c) The Company will not permit any Guarantor to consolidate with or merge with or into or wind up into (whether or not such Guarantor is the surviving corporation), or sell, assign, convey,  transfer, lease or otherwise dispose of all or substantially all of its properties and assets, in one or more  related transactions, to any Person (other than to the Company or another Guarantor) unless:  (1) (A) if such entity remains a Guarantor, the resulting, surviving or transferee Person (the “Successor Guarantor”) is a Person (other than an individual) organized  and existing under the laws of the United States of America, any state or territory thereof or the  District of Columbia;  (B) the Successor Guarantor, if other than such Guarantor, expressly assumes all the obligations of such Guarantor under this Indenture, the Notes and its Note  Guarantee pursuant to a supplemental indenture or other documents or instruments;  (C) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; and  (D) the Company will have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, winding up  or disposition and such supplemental indenture (if any) comply with this Indenture; or  (2) in the event the transaction results in the release of the Subsidiary’s Note Guarantee under clause (1) of Section 10.06(a), the transaction is made in compliance with  Section 4.16 (it being understood that only such portion of the Net Available Cash as is required  to be applied on the date of such transaction in accordance with the terms of this Indenture needs  to be applied in accordance therewith at such time).  (d) Subject to Sections 5.01(f) and 5.02, the Successor Guarantor will succeed to,  and be substituted for, such Guarantor under this Indenture and the Note Guarantee of such Guarantor.  Notwithstanding Section 5.01(c), any Guarantor may (1) merge with or into or transfer all or part of its  properties and assets to a Guarantor or the Company or merge with a Restricted Subsidiary of the  Company, so long as the resulting entity is the Company or remains or becomes a Guarantor and (2)  merge with an Affiliate of the Company solely for the purpose of reincorporating or forming the  Guarantor in another state or territory of the United States of America or the District of Columbia, so long  as Indebtedness is not Incurred in connection with such merger (unless otherwise permitted under this  Indenture).  (e) For purposes of this Section 5.01, the sale, assignment, conveyance, transfer,  lease or other disposition of all or substantially all of the properties and assets of one or more Subsidiaries  of the Company or a Guarantor, as the case may be, which properties and assets, if held by the Company  or such Guarantor instead of such Subsidiaries, would constitute all or substantially all of the properties  and assets of the Company or such Guarantor on a consolidated basis, will be deemed to be the  -81-   

 

-82- disposition of all or substantially all of the properties and assets of the Company or such Guarantor, as  applicable.  (f) The Company and a Guarantor, as the case may be, will be released from its obligations under this Indenture and the Notes and its Note Guarantee, as the case may be, and the  Successor Company and the Successor Guarantor, as the case may be, will succeed to, and be substituted  for, and may exercise every right and power of, the Company or a Guarantor, as the case may be, under  this Indenture, the Notes and such Note Guarantee; provided that, in the case of a lease of all or  substantially all its assets, the Company will not be released from the obligation to pay the principal of  and interest on the Notes, and a Guarantor will not be released from its obligations under its Note  Guarantee, solely by virtue of such transaction.  Section 5.02 Officers’ Certificate and Opinion of Counsel to be Given to Trustee.  Upon the occurrence of the transactions permitted under the provisions of Sections  5.01(a) or 5.01(c) (other than (i) a merger of Guarantors, (ii) a merger of the Guarantor and the Company  in which the Company is the surviving entity, or (iii) as otherwise set forth in Section 5.01(b)), the  Company shall deliver to the Trustee an Officers’ Certificate and an Opinion of Counsel in each case  stating that such transaction and agreement, if any, complies with this Article 5, that all conditions  precedent provided for herein relating to such transaction have been complied with, and that such  agreement or supplemental indenture, if any, is the legal, valid and binding obligation of the Company or  such other Person, as the case may be, enforceable against them in accordance with its terms, subject to  customary exceptions, on which the Trustee may rely as conclusive evidence that any consolidation,  merger, sale, conveyance, transfer or lease, and any assumption, permitted or required by the terms of this  Article 5 complies with the provisions of this Article 5 and this Indenture.  ARTICLE 6  DEFAULTS AND REMEDIES  Section 6.01 Events of Default.  (a) Each of the following is an “Event of Default”: (1) default in any payment of interest on any Note when due, continued for 30 days; (2) default in the payment of principal of or premium, if any, on any Note when due at its Stated Maturity, upon mandatory or optional redemption, upon required repurchase, upon  declaration or otherwise;  (3) failure by the Company or any Guarantor to comply for 60 days after notice as provided below with its other agreements contained in this Indenture or the Notes;  (4) default under any mortgage, indenture or instrument under which there is issued or by which there is secured or evidenced any Indebtedness for money borrowed by the Company  or any of its Restricted Subsidiaries (or the payment of which is Guaranteed by the Company or  any of its Restricted Subsidiaries), other than Indebtedness owed to the Company or a Restricted  Subsidiary, whether such Indebtedness or Guarantee now exists or is created after the Issue Date,  which default:  

 

-83- (A) is caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such  Indebtedness; or  (B) results in the acceleration of such Indebtedness prior to its maturity; and, in each case, the principal amount of any such Indebtedness, together with the principal  amount of any other such Indebtedness under which there has been a payment default or the  maturity of which has been so accelerated, aggregates $75.0 million or more;   (5) failure by the Company or any Significant Subsidiary or any group of Restricted Subsidiaries that, taken together (as of the date of the latest audited consolidated financial  statements of the Company and its Restricted Subsidiaries), would constitute a Significant  Subsidiary, to pay final judgments aggregating in excess of $75.0 million (net of any amounts as  to which the relevant insurance company has not disputed coverage), which judgments are not  paid, discharged, vacated, bonded, or stayed for a period of 60 days or more after such judgment  becomes final;  (6) (i) the Company or a Significant Subsidiary or any group of Restricted  Subsidiaries that, taken together (as of the date of the latest audited consolidated financial  statements of the Company and its Restricted Subsidiaries), would constitute a Significant  Subsidiary, pursuant to or within the meaning of any Bankruptcy Law:  (A) commences proceedings to be adjudicated bankrupt or insolvent; (B) consents to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking an arrangement of  debt, reorganization, dissolution, winding up or relief under applicable Bankruptcy Law;  (C) consents to the appointment of a receiver, interim receiver, receiver and manager, liquidator, assignee, trustee, sequestrator or other similar official of it or for all  or substantially all of its property;  (D) makes a general assignment for the benefit of its creditors; or (E) generally is not paying its debts as they become due; (ii) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:  (A) is for relief against the Company, any Restricted Subsidiary that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together (as of  the date of the latest audited consolidated financial statements of the Company and its  Restricted Subsidiaries), would constitute a Significant Subsidiary, in a proceeding in  which the Company, any such Restricted Subsidiary that is a Significant Subsidiary or  any group of Restricted Subsidiaries that, taken together (as of the date of the latest  audited consolidated financial statements of the Company and its Restricted  Subsidiaries), would constitute a Significant Subsidiary, is to be adjudicated bankrupt or  insolvent;  (B) appoints a receiver, interim receiver, receiver and manager, liquidator, assignee, trustee, sequestrator or other similar official of the Company, any Restricted  

 

Subsidiary that is a Significant Subsidiary or any group of Restricted Subsidiaries that,  taken together (as of the date of the latest audited consolidated financial statements of the  Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary, or  for all or substantially all of the property of the Company, any Restricted Subsidiary that  is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together (as  of the date of the latest audited consolidated financial statements of the Company and its  Restricted Subsidiaries), would constitute a Significant Subsidiary; or  (C) orders the liquidation, dissolution or winding up of the Company, or any Restricted Subsidiary that is a Significant Subsidiary or any group of Restricted  Subsidiaries that, taken together (as of the date of the latest audited consolidated financial  statements of the Company and its Restricted Subsidiaries), would constitute a  Significant Subsidiary;  and the order or decree remains unstayed and in effect for 60 consecutive days; or  (7) any Note Guarantee of a Significant Subsidiary or any group of Guarantors that, taken together (as of the date of the latest audited consolidated financial statements of the  Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary, ceases to be  in full force and effect (except as contemplated by the terms of this Indenture) or is declared null  and void in a judicial proceeding, or any Guarantor that is a Significant Subsidiary or any group  of Guarantors that, taken together (as of the date of the latest audited consolidated financial  statements of the Company and its Restricted Subsidiaries), would constitute a Significant  Subsidiary, denies or disaffirms its obligations under this Indenture or its Note Guarantee.  However, a Default under clauses (3), (4) or (5) of this Section 6.01(a) will not constitute an Event of  Default until the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes  notifies or notify the Company (with a copy to the Trustee) of the Default and the Company does not cure  such Default within the time specified in clauses (3), (4) or (5) of this Section 6.01(a) after receipt of such  notice; provided that a notice of Default (i) must specify the Default, demand that it be remediated and  state that such notice is a “Notice of Default” and (ii) may not be given with respect to any action taken,  and reported publicly or to Holders of the Notes, more than two years prior to such notice of Default.  (b) Any notice of Default, notice of acceleration or instruction to the Trustee to  provide a notice of Default, notice of acceleration or take any other action (a “Noteholder Direction”)  provided by any one or more Holders (other than a Regulated Bank) (each a “Directing Holder”) must be  accompanied by a written representation from each such Holder delivered to the Company and the  Trustee that such Holder is not (or, in the case such Holder is DTC or its nominee, that such Holder is  being instructed solely by beneficial owners that are not) Net Short (a “Position Representation”), which  representation, in the case of a Noteholder Direction relating to the delivery of a notice of Default (a  “Default Direction”) shall be deemed repeated at all times until the resulting Event of Default is cured or  otherwise ceases to exist or the Notes are accelerated. In addition, each Directing Holder is deemed, at the  time of providing a Noteholder Direction, to covenant to provide the Company with such other  information as the Company may reasonably request from time to time in order to verify the accuracy of  such Holder’s Position Representation within five Business Days of request therefor (a “Verification  Covenant”). In any case in which the Holder is DTC or its nominee, any Position Representation or  Verification Covenant required hereunder shall be provided by the beneficial owner of the Notes in lieu of  DTC or its nominee, and DTC shall be entitled to conclusively rely on such Position Representation and  Verification Covenant in delivering its direction to the Trustee.  -84-   

 

(c) If, following the delivery of a Noteholder Direction, but prior to acceleration of  the Notes, the Company determines in good faith that there is a reasonable basis to believe a Directing  Holder was, at any relevant time, in breach of its Position Representation and provides to the Trustee an  Officers’ Certificate stating that the Company has initiated litigation in a court of competent jurisdiction  seeking a determination that such Directing Holder was, at such time, in breach of its Position  Representation, and seeking to invalidate any Default or Event of Default that resulted from the  applicable Noteholder Direction, the cure period with respect to such Default or Event of Default shall be  automatically stayed and the cure period with respect to such Default or Event of Default shall be  automatically reinstituted and any remedy stayed pending a final and nonappealable determination of a  court of competent jurisdiction on such matter. If, following the delivery of a Noteholder Direction, but  prior to acceleration of the Notes, the Company provides to the Trustee an Officers’ Certificate stating  that a Directing Holder failed to satisfy its Verification Covenant, the cure period with respect to such  Default or Event of Default shall be automatically stayed and the cure period with respect to any Default  or Event of Default that resulted from the applicable Noteholder Direction shall be automatically  reinstituted and any remedy stayed pending satisfaction of such Verification Covenant. Any breach of the  Position Representation shall result in such Holder’s participation in such Noteholder Direction being  disregarded; and, if, without the participation of such Holder, the percentage of Notes held by the  remaining Holders that provided such Noteholder Direction would have been insufficient to validly  provide such Noteholder Direction, such Noteholder Direction shall be void ab initio, with the effect that  such Event of Default shall be deemed never to have occurred, acceleration voided and the Trustee shall  be deemed not to have received such Noteholder Direction or any notice of such Default or Event of  Default.  (d) Notwithstanding anything in clauses (b) and (c) of this Section 6.01 to the  contrary, any Noteholder Direction delivered to the Trustee during the pendency of an Event of Default as  the result of a bankruptcy or similar proceeding shall not require compliance with the preceding two  paragraphs. In addition, for the avoidance of doubt, the preceding two paragraphs shall not apply to any  Holder that is a Regulated Bank.  (e) For the avoidance of doubt, the Trustee shall be entitled to conclusively rely on  any Noteholder Direction delivered to it in accordance with this Section 6.01, shall have no duty to  inquire as to or investigate the accuracy of any Position Representation, enforce compliance with any  Verification Covenant, verify any statements in any Officers’ Certificate delivered to it, or otherwise  make calculations, investigations or determinations with respect to Derivative Instruments, Net Shorts,  Long Derivative Instruments, Short Derivative Instruments or otherwise, and shall have no liability for  ceasing to take any action, staying any remedy or otherwise failing to act in accordance with a Noteholder  Direction as provided above. The Trustee shall not have any liability or responsibility to the Company,  any Holder or any other Person in connection with any Noteholder Direction or to determine whether or  not any Holder has delivered a Position Representation or that such Position Representation conforms  with this Indenture or any other agreement.  Section 6.02 Acceleration.  (a) If an Event of Default (other than an Event of Default described in clause (6) of  Section 6.01(a)) occurs and is continuing of which the Trustee has been notified or is deemed to have  notice under the terms hereof, the Trustee by written notice to the Company, specifying the Event of  Default, or the Holders of at least 25% in principal amount of the then outstanding Notes by notice to the  Company and the Trustee, may declare the principal, premium, if any, and accrued and unpaid interest, if  any, on all the Notes to be due and payable. Upon such declaration, such principal, premium, if any, and  accrued and unpaid interest, if any, will be due and payable immediately.   -85-   

 

-86- (b) Notwithstanding the foregoing, in case an Event of Default under clause (6) of Section 6.01(a) occurs and is continuing, the principal of, premium, if any, and accrued and unpaid  interest, if any, on all the Notes will become and be immediately due and payable without any declaration  or other act on the part of the Trustee or any Holders.  (c) The Holders of a majority in principal amount of the outstanding Notes may waive all past Defaults (except with respect to nonpayment of principal, premium or interest) and rescind  any such acceleration with respect to the Notes and its consequences if (1) such rescission would not  conflict with any judgment or decree of a court of competent jurisdiction and (2) all existing Events of  Default, other than the nonpayment of the principal of, premium, if any, and interest on the Notes that  have become due solely by such declaration of acceleration, have been cured or waived. Promptly  following any such rescission, the Company shall pay to the Trustee all amounts owing to the Trustee  under Section 7.07 related to such Event of Default and acceleration, including all sums paid or advanced  by the Trustee hereunder and the reasonable compensation, expenses and disbursements and advances of  the Trustee, its agents and counsel.  (d) In the event of a declaration of acceleration of the Notes because an Event of Default described in clause (4) of Section 6.01(a) has occurred and is continuing, the declaration of  acceleration of the Notes shall be automatically annulled if:   (1) the default triggering such Event of Default pursuant to clause (4) of Section 6.01(a) shall be remedied or cured by the Company or a Restricted Subsidiary or waived by the  holders of the relevant Indebtedness within 20 days after the declaration of acceleration with  respect thereto; and   (2) (A) the annulment of the acceleration of the Notes would not conflict with any judgment or decree of a court of competent jurisdiction and (B) all existing Events of Default,  except nonpayment of principal, premium, if any, or interest on the Notes that became due solely  because of the acceleration of the Notes, have been cured or waived.  Section 6.03 Other Remedies.  If an Event of Default occurs and is continuing, the Trustee may pursue any available  remedy to collect the payment of principal, premium, if any, and interest on the Notes or to enforce the  performance of any provision of the Notes, the Note Guarantees or this Indenture.  The Trustee may maintain a proceeding even if it does not possess any of the Notes or  does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a  Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or  remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are cumulative to  the extent permitted by law.  Section 6.04 Waiver of Past Defaults.  The Holders of a majority in principal amount of the outstanding Notes by written notice  to the Trustee may on behalf of all Holders waive any existing Default and its consequences hereunder,  except:  (1) a continuing Default in the payment of the principal, premium, if any, or interest on any Note held by a non-consenting Holder (including in connection with an Asset Disposition  Offer or a Change of Control Offer); and  

 

(2) a Default with respect to a provision that under Section 9.02 cannot be amended or waived without the consent of each Holder affected,  provided that, subject to Section 6.02, the Holders of a majority in principal amount of the then  outstanding Notes may rescind an acceleration and its consequences, including any related payment  Default that resulted from such acceleration. Upon any such waiver, such Default shall cease to exist, and  any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this  Indenture, but no such waiver shall extend to any subsequent or other Default or impair any right  consequent thereon.  Section 6.05 Control by Majority.  The Holders of a majority in principal amount of the outstanding Notes may direct the  time, method and place of conducting any proceeding for any remedy available to the Trustee or of  exercising any trust or power conferred on the Trustee, subject to the Trustee’s right to be indemnified to  its satisfaction. However, the Trustee may refuse to follow any direction that conflicts with law, this  Indenture, the Notes or any Note Guarantee, or that the Trustee determines in good faith is unduly  prejudicial to the rights of any other Holder (it being understood that the Trustee does not have an  affirmative duty to ascertain whether or not any such directions are unduly prejudicial to such Holders) or  that would involve the Trustee in personal liability or expense. The Trustee may take any other action  deemed proper by the Trustee which is not inconsistent with such direction.  Section 6.06 Limitation on Suits.  Subject to Section 6.07, no Holder may pursue any remedy with respect to this Indenture,   the Notes or any Note Guarantee unless:  (1) such Holder has previously given the Trustee notice that an Event of Default is continuing;  (2) the Holders of at least 25% in principal amount of the then outstanding Notes have requested the Trustee to pursue the remedy;  (3) such Holders have offered the Trustee security or indemnity satisfactory to the Trustee for the payment of its extraordinary compensation and against any loss, liability or  expense;  (4) the Trustee has not complied with such request within 60 days after the receipt of the request and the offer of security or indemnity satisfactory to the Trustee for the payment of its  extraordinary compensation and against any loss, liability or expense; and  (5) the Holders of a majority in principal amount of the then outstanding Notes have not given the Trustee a direction that, in the opinion of the Trustee, is inconsistent with such  request within such 60-day period.  A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or  priority over another Holder.  Section 6.07 Rights of Holders to Receive Payment.  Notwithstanding any other provision of this Indenture, the contractual right of any Holder  expressly set forth in this Indenture to receive payment of principal, premium, if any, and interest on its  -87-   

 

Note, on or after the respective due dates expressed or provided for in such Note (including in connection  with an Asset Disposition Offer or a Change of Control Offer), or to bring suit for the enforcement of any  such payment on or after such respective dates, shall not be amended without the consent of such Holder.  Section 6.08 Collection Suit by Trustee.  If an Event of Default specified in Section 6.01(a)(1) or (2) occurs and is continuing, the  Trustee may recover judgment in its own name and as trustee of an express trust against the Company, the  Guarantors and any other obligor on the Notes for the whole amount of principal, premium, if any, and  interest remaining unpaid on the Notes, together with interest on overdue principal and, to the extent  lawful, interest and such further amount as shall be sufficient to cover the costs and expenses of  collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee  and its agents and counsel.  Section 6.09 Restoration of Rights and Remedies.  If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy  under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been  determined adversely to the Trustee or to such Holder, then and in every such case, subject to any  determination in such proceedings, the Company, the Guarantors, the Trustee and the Holders shall be  restored severally and respectively to their former positions hereunder and thereafter all rights and  remedies of the Trustee and the Holders shall continue as though no such proceeding has been instituted.  Section 6.10 Rights and Remedies Cumulative.  Except as otherwise provided with respect to the replacement or payment of mutilated,  destroyed, lost or stolen Notes in Section 2.07, no right or remedy herein conferred upon or reserved to  the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and  remedy is, to the extent permitted by law, cumulative and in addition to every other right and remedy  given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or  employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or  employment of any other appropriate right or remedy.  Section 6.11 Delay or Omission Not Waiver.  No delay or omission of the Trustee or of any Holder to exercise any right or remedy  accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any  such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law  to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed  expedient, by the Trustee or by the Holders, as the case may be.  Section 6.12 Trustee May File Proofs of Claim.  The Trustee may file proofs of claim and other papers or documents as may be necessary  or advisable in order to have the claims of the Trustee (including any claim for the reasonable  compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the  Holders of the Notes allowed in any judicial proceedings relative to the Company (or any other obligor  upon the Notes, including the Guarantors), its creditors or its property and is entitled and empowered to  participate as a member in any official committee of creditors appointed in such matter and to collect,  receive and distribute any money or other property payable or deliverable on any such claims. Any  custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to  the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the  -88-   

 

Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses,  disbursements and advances of the Trustee and its agents and counsel, and any other amounts due the  Trustee under Section 7.07. To the extent that the payment of any such compensation, expenses,  disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee  under Section 7.07 out of the estate in any such proceeding, shall be denied for any reason, payment of  the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends,  money, securities and other properties that the Holders may be entitled to receive in such proceeding  whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein  contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf  of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or  the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any  such proceeding.  Section 6.13 Priorities.  After an Event of Default, any money or property distributable in respect of the  Company’s or any Guarantor’s obligations under this Indenture, or any money or property collected by  the Trustee pursuant to this Article 6, shall be paid out or distributed in the following order:  (1) to the Trustee and any predecessor Trustee and its agents and attorneys for amounts due under Section 7.07, including payment of all reasonable compensation of the  Trustee, its agents and counsel, expenses and liabilities incurred, and all advances made, by the  Trustee and the costs and expenses of collection;  (2) to Holders for amounts due and unpaid on the Notes for principal, premium, if any, and interest ratably, without preference or priority of any kind, according to the amounts due  and payable on the Notes for principal, premium, if any, and interest, respectively; and  (3) to the Company or to such party as a court of competent jurisdiction shall direct, including a Guarantor, if applicable.  The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section  6.13. Promptly after any record date is set pursuant to this Section 6.13, the Trustee shall cause notice of  such record date and payment date to be given to the Company and to each Holder in the manner set forth  in Section 12.02.   Section 6.14 Undertaking for Costs.  In any suit for the enforcement of any right or remedy under this Indenture or in any suit  against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require  the filing by any party litigant in such suit of an undertaking to pay the costs of the suit, and the court in  its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any  party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by  the party litigant. This Section 6.14 does not apply to a suit by the Trustee, a suit by a Holder pursuant to  Section 6.07, or a suit by Holders of more than 10% in aggregate principal amount of the outstanding  Notes.  -89-   

 

ARTICLE 7  TRUSTEE  Section 7.01 Duties of Trustee.  (a) If an Event of Default has occurred and is continuing, the Trustee will exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care in its  exercise, as a prudent person would exercise or use under the circumstances in the conduct of such  person’s own affairs.  (b) Except during the continuance of an Event of Default: (1) the duties of the Trustee shall be determined solely by the express provisions of this Indenture and the Trustee need perform only those duties that are specifically set forth in this  Indenture and no others, and no implied covenants or obligations shall be read into this Indenture  against the Trustee; and  (2) in the absence of bad faith on its part, the Trustee may conclusively rely and shall be protected in acting or refraining from acting, as to the truth of the statements and the  correctness of the opinions expressed therein, upon certificates or opinions furnished to the  Trustee and conforming to the requirements of this Indenture. However, in the case of any such  certificates or opinions which by any provision hereof are specifically required to be furnished to  the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not  they conform to the requirements of this Indenture (but need not confirm or investigate the  accuracy of mathematical calculations or other facts stated therein).  (c) The Trustee may not be relieved from liabilities for its own grossly negligent action, its own grossly negligent failure to act, or its own willful misconduct, except that:  (1) this paragraph does not limit the effect of paragraph (b) of this Section 7.01; (2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved in a court of competent jurisdiction 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) Whether or not therein expressly so provided, every provision of this Indenture  that in any way relates to the Trustee is subject to this Section 7.01 and Section 7.02.  (e) The Trustee will be under no obligation to exercise any of the rights or powers  under this Indenture, the Notes and the Note Guarantees at the request or direction of any of the Holders  unless such Holders have offered to the Trustee indemnity or security satisfactory to it for the payment of  its extraordinary compensation and against any loss, liability or expense, including attorney’s fees and  expenses, that might be incurred by it in compliance with such request or direction.  (f) The Trustee shall not be liable for interest on any money received by it except as  the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be  segregated from other funds except to the extent required by law.  -90- 

 

(g) None of the provisions of this Indenture shall require the Trustee to expend or  risk its own funds or otherwise to incur any liability, financial or otherwise, in the performance of any of  its duties hereunder, or in the exercise of any of its rights or powers if it shall have reasonable grounds for  believing that repayment of such funds or indemnity reasonably satisfactory to it against such expense,  risk or liability is not assured to it.  Section 7.02 Rights of Trustee.  (a) The Trustee may conclusively rely and shall be protected in acting or refraining  from acting upon any document (whether in its original (including one signed manually or by way of  electronic signature initiated by the Trustee and sent via electronic mail) or facsimile form) 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 and shall have no duty to inquire as to the performance by the  Company of any of its covenants in this Indenture and may accept the same as conclusive evidence of the  accuracy of the statements contained therein, but the Trustee, in its discretion, may make such further  inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine in  good faith to make such further inquiry or investigation, it shall be entitled to examine the books, records  and premises of the Company, personally or by agent or attorney at the sole cost of the Company and  shall incur no liability or additional liability of any kind by reason of such inquiry or investigation. The  Trustee shall not be deemed to have notice of any Default or Event of Default which may be  disclosed (whether explicitly or implicitly) in information  which it receives from the Company,  except for any specific notice thereof contained in any document delivered by the Company to the  Trustee.  (b) Before the Trustee acts or refrains from acting, or in order to establish any  matter, it may require an Officers’ Certificate or an Opinion of Counsel or both subject to the other  provisions of this Indenture. The Trustee shall not be liable for any action it takes or omits to take in good  faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee may consult with  counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and  complete authorization and protection from liability in respect of any action taken, suffered or omitted by  it hereunder in good faith and in reliance thereon.  (c) The Trustee may act through its attorneys, receivers and agents and shall not be responsible for the misconduct or negligence of any agent or attorney appointed with due care.  (d) The Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture.  (e) Unless otherwise specifically provided in this Indenture, any demand, request,  direction or notice from the Company or a Guarantor shall be sufficient if signed by an Officer of the  Company or such Guarantor.  (f) The Trustee shall not be deemed to have notice or knowledge of any Default or  Event of Default except Events of Default described in clauses (1) and (2) of Section 6.01(a) (where the  Trustee is acting as Paying Agent) unless written notice from the Company or the Holders of at least 25%  of the aggregate principal amount of the Notes of any event which is in fact such a Default is received by  the Trustee at the Corporate Trust Office of the Trustee, and such notice specifically notifies the Trustee  of the existence of a Default or Event of Default in the Notes and this Indenture.  (g) The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be compensated, reimbursed and indemnified, are extended to,  -91-   

 

and shall be enforceable by, the Trustee in each of its capacities hereunder, and each Agent, custodian and  other Person employed to act hereunder.  (h) The Trustee may request that the Company deliver an Officers’ Certificate  setting forth the names of individuals or titles of officers authorized at such time to take specified actions  pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an  Officers’ Certificate, including any Person specified as so authorized in any such certificate previously  delivered and not superseded.  (i) The Trustee shall not be required to give any bond or surety in respect of the  performance of its powers and duties hereunder.  (j) The permissive right of the Trustee to do things enumerated in this Indenture  shall not be construed as a duty.  (k) In no event shall the Trustee be responsible or liable for any special, indirect,  punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of  profit), irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and  regardless of the form of action.  (l) The Trustee shall not be responsible or liable for any action taken or omitted by it  in good faith at the direction of the Holders of not less than a majority in principal amount of the Notes as  to the time, method and place of conducting any proceedings for any remedy available to the Trustee or  the exercising of any power conferred by this Indenture.   (m) The Trustee shall have no duty to inquire, no duty to determine and no duty to  monitor the performance of the Company’s covenants in this Indenture or the financial performance of  the Company. The Trustee shall be entitled to assume, until it has received written notice in accordance  with this Indenture, that the Company is performing its duties hereunder.  Section 7.03 Individual Rights of Trustee.  The Trustee or any Agent in its individual or any other capacity may become the owner  or pledgee of Notes and may otherwise deal with the Company or any Affiliate of the Company with the  same rights it would have if it were not Trustee or such Agent. Any Agent may do the same with like  rights and duties. The Trustee is also subject to Section 7.10.  Section 7.04 Trustee’s Disclaimer.  The Trustee shall not be responsible for and makes no representation as to the validity or  adequacy of this Indenture or the Notes or the Note Guarantees, it shall not be accountable for the  Company’s use of the proceeds from the Notes or any money paid to the Company or upon the  Company’s direction under any provision of this Indenture, it shall not be responsible for the use or  application of any money received by any Paying Agent other than the Trustee, and it shall not be  responsible for any statement or recital herein or any statement in the Notes or in the Offering  Memorandum or in any other document in connection with the sale of the Notes or pursuant to this  Indenture other than its certificate of authentication on the Notes.  Under no circumstances shall the  Trustee be liable in its individual capacity for the obligations evidenced by the Notes or the Note  Guarantees. The Trustee shall not be responsible for and makes no representation as to any act or  omission of any Rating Agency or any rating with respect to the Notes. The Trustee shall have no  obligation to independently determine or verify if any event has occurred or notify the Holders of any  event dependent upon the rating of the Notes, or if the rating on the Notes has been changed, suspended  -92- 

 

or withdrawn by any Rating Agency.  The Trustee shall have no obligation to independently determine or  verify if any Change of Control or any other event has occurred or notify the Holders of any such event  and whether any Change of Control Offer with respect to the Notes is required. Neither the Trustee nor  any Paying Agent shall be responsible for determining whether any Asset Disposition has occurred and  whether any Asset Disposition Offer with respect to the Notes is required.    Section 7.05 Notice of Defaults.  If an Event of Default occurs and is continuing of which the Trustee has been notified or  is deemed to have notice under the terms of this Indenture, the Trustee will deliver to each Holder a notice  of the Event of Default within 90 days after it has been notified or is deemed to have notice thereof under  the terms of this Indenture. Except in the case of an Event of Default specified in clauses (1) or (2) of  Section 6.01(a), the Trustee may withhold from the Holders notice of any continuing Event of Default if  the Trustee determines in good faith that withholding the notice is in the interests of the Holders.  Section 7.06 [Reserved].  Section 7.07 Compensation and Indemnity.  (a) The Company and the Guarantors, jointly and severally, shall pay to the Trustee  from time to time such compensation for its acceptance of this Indenture and services hereunder as the  parties shall agree in writing from time to time. The Trustee’s compensation shall not be limited by any  law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee promptly  upon request for all reasonable disbursements, advances and expenses incurred or made by it in addition  to the compensation for its services. Such expenses shall include the reasonable compensation,  disbursements and expenses of the Trustee’s agents and counsel.   (b) The Company and the Guarantors, jointly and severally, shall indemnify the  Trustee for, and hold each of the Trustee and any predecessor Trustee, and their directors, officers, agents  and employees for harmless against, any and all loss, damage, claims, fines, penalties, liability, cost or  expense (including attorneys’ fees and expenses) incurred by it in connection with the acceptance or  administration of this trust and the performance of its duties hereunder (including the costs and expenses  of enforcing this Indenture against the Company or any Guarantor (including this Section 7.07)) or  defending itself against any claim whether asserted by any Holder, the Company or any Guarantor or any  third party, or liability in connection with the acceptance, exercise or performance of any of its powers or  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 reimburse any  expense or indemnify against any loss, liability or expense incurred by the Trustee through the Trustee’s  own willful misconduct or gross negligence as finally adjudicated by a court of competent jurisdiction.  (c) The obligations of the Company and the Guarantors under this Section 7.07 shall  survive the satisfaction and discharge of this Indenture or the earlier resignation or removal of the  Trustee.  (d) To secure the payment obligations of the Company and the Guarantors in this  Section 7.07, the Trustee shall have a Lien prior to the Notes on all money or property held or collected  by the Trustee, except that held in trust to pay principal and interest on particular Notes. Such Lien shall  survive the satisfaction and discharge of this Indenture.  -93- 

 

(e) When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(a)(6) occurs, the expenses and the compensation for the services (including the  fees and expenses of its agents and counsel) are intended to constitute expenses of administration under  any Bankruptcy Law.  (f) “Trustee” for the purposes of this Section 7.07 shall include any predecessor Trustee and the Trustee in each of its capacities hereunder and each Agent, custodian and other person  employed to act hereunder; provided, however, that the negligence, willful misconduct or bad faith of any  Trustee hereunder shall not affect the rights of any other Trustee hereunder.   Section 7.08 Replacement of Trustee.  (a) A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective, and the Trustee shall be discharged from the trust hereby created, only upon the  successor Trustee’s acceptance of appointment as provided in this Section 7.08. The Trustee may resign  in writing at any time by giving 30 days’ notice of such resignation to the Company.  The Holders of a  majority in aggregate principal amount of the then outstanding Notes may remove the Trustee upon 30  days’ notice by so notifying the Trustee and the Company in writing. The Company may remove the  Trustee upon 30 days’ notice if:  (1) the Trustee fails to comply with Section 7.10; (2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;  (3) a receiver or public officer takes charge of the Trustee or its property; or (4) the Trustee becomes incapable of acting. (b) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee  for any reason, the Company shall promptly appoint a successor Trustee. Within one year after the  successor Trustee takes office, the Holders of a majority in aggregate principal amount of the then  outstanding Notes may remove the successor Trustee to replace it with another successor Trustee  appointed by the Company.  (c) If a successor Trustee does not take office within 60 days after the retiring  Trustee resigns or is removed, the retiring Trustee (at the Company’s expense), the Company or the  Holders of at least 10% in aggregate principal amount of the then outstanding Notes may petition any  court of competent jurisdiction for the appointment of a successor Trustee.  (d) If the Trustee, after written request by any Holder who has been a Holder for at  least six months, fails to comply with Section 7.10, such Holder may petition any court of competent  jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.  (e) 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 Holders. The retiring  Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee; provided that all  sums owing to the Trustee hereunder have been paid and such transfer shall be subject to the Lien  provided for in Section 7.07. Notwithstanding replacement of the Trustee pursuant to this Section 7.08,  the Company’s obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.  -94- 

 

-95- (f) As used in this Section 7.08, the term “Trustee” shall also include each Agent. Section 7.09 Successor Trustee by Merger, etc.  If the Trustee consolidates, merges or converts into, or transfers all or substantially all of  its corporate trust business to, another corporation or national banking association, the successor  corporation or national banking association without any further act shall be the successor Trustee, subject  to Section 7.10, and will have and succeed to the rights, powers, duties, immunities and privileges as its  predecessor, without the execution or filing of any instrument or paper or the performance of any further  act.  Section 7.10 Eligibility; Disqualification.  There shall at all times be a Trustee hereunder that is a corporation or national banking  association organized and doing business under the laws of the United States of America or of any state  thereof that is authorized under such laws to exercise corporate trustee power, that is subject to  supervision or examination by federal or state authorities and that has a combined capital and surplus of at  least $50,000,000 as set forth in its most recent published annual report of condition.  ARTICLE 8  LEGAL DEFEASANCE AND COVENANT DEFEASANCE  Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.  The Company may, at its option and at any time, elect to have either Section 8.02 or  Section 8.03 applied to all outstanding Notes and Note Guarantees upon compliance with the conditions  set forth below in this Article 8.  Section 8.02 Legal Defeasance and Discharge.  (a) Upon the Company’s exercise under Section 8.01 of the option applicable to this Section 8.02, the Company and the Guarantors shall, subject to the satisfaction of the conditions set forth  in Section 8.04, be deemed to have been discharged from their obligations with respect to this Indenture,  all outstanding Notes and Note Guarantees on the date the conditions set forth below are satisfied (“Legal  Defeasance”). For this purpose, Legal Defeasance means that the Company shall be deemed to have paid  and discharged the entire Indebtedness represented by the outstanding Notes, which shall thereafter be  deemed to be “outstanding” only for the purposes of Section 8.05 and the other Sections of this Indenture  referred to in (1) through (4) below, and to have satisfied all of its other obligations under such Notes and  this Indenture, including that of the Guarantors (and the Trustee, on demand of and at the expense of the  Company, shall execute proper instruments provided to it acknowledging the same), except for the  following provisions which shall survive until otherwise terminated or discharged hereunder:  (1) the rights of Holders to receive payments in respect of the principal, premium, if any, and interest on the Notes when such payments are due, solely out of the trust created  pursuant to this Indenture referred to in Section 8.04;  (2) the Company’s obligations with respect to the Notes concerning issuing temporary Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes and the  maintenance of an office or agency for payment and money for Note payments held in trust;  

 

-96- (3) the rights, powers, trusts, duties, protections, indemnities and immunities of the Trustee, and the Company’s obligations in connection therewith; and  (4) this Section 8.02. (b) Following the Company’s exercise of its Legal Defeasance option, payment of the Notes may not be accelerated because of an Event of Default.  (c) Subject to compliance with this Article 8, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option under Section 8.03.  Section 8.03 Covenant Defeasance.  Upon the Company’s exercise under Section 8.01 of the option applicable to this Section  8.03, the Company and the Guarantors shall, subject to the satisfaction of the conditions set forth in  Section 8.04, be released from their obligations under the covenants contained in Sections 3.09, 4.03,  4.05, 4.06, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16 and 4.17 and clause (4) of Section 5.01(a)  with respect to the outstanding Notes, and the Guarantors shall be deemed to have been discharged from  their obligations with respect to all Note Guarantees, on and after the date the conditions set forth in  Section 8.04 are satisfied (“Covenant Defeasance”), and the Notes shall thereafter be deemed not  “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the  consequences of any thereof) in connection with such covenants, but shall continue to be deemed  “outstanding” for all other purposes hereunder. For this purpose, Covenant Defeasance means that, with  respect to this Indenture and the outstanding Notes, the Company may omit to comply with and shall have  no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly  or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any  reference in any such covenant to any other provision herein or in any other document and such omission  to comply shall not constitute a Default or an Event of Default under Section 6.01, but, except as  specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition,  upon the Company’s exercise under Section 8.01 of the option applicable to this Section 8.03, subject to  the satisfaction of the conditions set forth in Section 8.04, payment of the Notes may not be accelerated  because of an Event of Default specified in Section 6.01(a)(3) (only with respect to covenants that are  released as a result of such Covenant Defeasance), 6.01(a)(4), 6.01(a)(5), 6.01(a)(6) (solely with respect  to Significant Subsidiaries or any group of Restricted Subsidiaries that, taken together (as of the date of  the latest audited financial statements of the Company and its Restricted Subsidiaries) would constitute a  Significant Subsidiary), and 6.01(a)(7).  Section 8.04 Conditions to Legal or Covenant Defeasance.  (a) The following shall be the conditions to the exercise of either the Legal Defeasance option under Section 8.02 or the Covenant Defeasance option under Section 8.03 with respect  to the Notes:  (1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, cash in U.S. dollars, Government Securities, or a combination thereof, in amounts  as will be sufficient, as confirmed, certified or attested by an Independent Financial Advisor in  writing to the Trustee, without consideration of any reinvestment of interest, to pay the principal,  premium, if any, and interest due on the outstanding Notes on the Stated Maturity or on the  applicable redemption date, as the case may be, and the Company must specify whether the Notes  are being defeased to Stated Maturity or to a particular redemption date;  

 

-97- (2) in the case of Legal Defeasance, the Company has delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject to customary  assumptions and exclusions,  (A) the Company has received from, or there has been published by, the U.S. Internal Revenue Service a ruling, or  (B) since the Issue Date, there has been a change in the applicable U.S. federal income tax law,  in either case to the effect that, and based thereon such Opinion of Counsel will confirm that, the  beneficial owners of the Notes will not recognize income, gain or loss for U.S. federal income tax  purposes as a result of such Legal Defeasance and will be subject to U.S. federal income tax on  the same amounts, in the same manner and at the same times as would have been the case if such  Legal Defeasance had not occurred;  (3) in the case of Covenant Defeasance, the Company has delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject to customary  assumptions and exclusions, the beneficial owners of the Notes will not recognize income, gain or  loss for U.S. federal income tax purposes as a result of such Covenant Defeasance and will be  subject to U.S. federal income tax on the same amounts, in the same manner and at the same  times as would have been the case if such Covenant Defeasance had not occurred;  (4) no Default or Event of Default has occurred and is continuing on the date of such deposit or will occur as a result of such deposit (other than a Default or an Event of Default  resulting from the borrowing of funds to be applied to make such deposit and any similar and  simultaneous deposit relating to other Indebtedness and, in each case, the granting of Liens in  connection therewith) and the deposit will not result in a breach or violation of, or constitute a  default under, the Senior Secured Credit Facilities or any other material agreement or material  instrument (other than this Indenture) to which the Company or any Guarantor is a party or by  which the Company or any Guarantor is bound;  (5) the Company has delivered to the Trustee an Opinion of Counsel to the effect that, as of the date of such opinion and subject to customary assumptions and exclusions,  including that no intervening bankruptcy of the Company between the date of deposit and the  91st day following the deposit and assuming that no Holder is an “insider” of the Company under  applicable bankruptcy law, after the 91st day following the deposit, the trust funds will not be  subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws  affecting creditors’ rights generally;  (6) the Company has delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of defeating, hindering, delaying or  defrauding any creditors of the Company, any Guarantor or others;   (7) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel (which Opinion of Counsel may be subject to customary assumptions and exclusions),  each stating that all conditions precedent relating to the Legal Defeasance or the Covenant  Defeasance, as the case may be, have been complied with; and  (8) the Company has delivered irrevocable instructions to the Trustee to apply the deposited money toward the payment of the Notes at Stated Maturity or the redemption date, as  

 

the case may be (which instructions may be contained in the Officers’ Certificate referred to in  clause (7) above).  Section 8.05 Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous  Provisions.  (a) Subject to Section 8.06, all money and Government Securities (including the proceeds thereof) deposited with the Trustee pursuant to Section 8.04 in respect of the outstanding Notes  shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this  Indenture, to the payment, either directly or through any Paying Agent (including the Company or a  Guarantor acting as Paying Agent) as the Trustee may determine, to the Holders of all sums due and to  become due thereon in respect of principal, premium, if any, and interest on the Notes, but such money  need not be segregated from other funds except to the extent required by law.  (b) The Company will pay and indemnify the Trustee against any tax, fee or other  charge imposed on or assessed against the cash or Government Securities deposited pursuant to Section  8.04 or the principal and interest received in respect thereof other than any such tax, fee or other charge  which by law is for the account of the Holders.  (c) Anything in this Article 8 to the contrary notwithstanding, the Trustee will  deliver or pay to the Company from time to time upon the request of the Company any money or  Government Securities held by it as provided in Section 8.04 which, in the opinion of an Independent  Financial Advisor expressed in a written certification thereof delivered to the Trustee (which may be the  opinion delivered under Section 8.04(a)), are in excess of the amount thereof that would then be required  to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.  Section 8.06 Repayment to the Company.  Subject to any applicable abandoned property law, any money deposited with the Trustee  or any Paying Agent, or then held by the Company, in trust for the payment of the principal, premium, if  any, or interest on any Note and remaining unclaimed for two years after such principal, premium, if any,  or interest has become due and payable shall be paid to the Company on its written request or (if then held  by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter look  only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with  respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease;  provided, however, that the Trustee or such Paying Agent, before being required to make any such  repayment, may at the expense of the Company cause to be published once, in The New York Times or  The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a  date specified therein, which shall not be less than 30 days from the date of such notification or  publication, any unclaimed balance of such money then remaining shall be repaid to the Company. In the  absence of any such written request, the Trustee shall from time to time deliver such unclaimed  funds to or as directed by pertinent escheat authority, as identified by the Trustee in its sole  discretion, pursuant to and in accordance with applicable unclaimed property laws, rules or  regulations. Any such delivery shall be in accordance with the customary practices and procedures of  the Trustee and the escheat authority. All moneys held by the Trustee and subject to this Section  shall be held uninvested and without liability for interest thereon.  Section 8.07 Reinstatement.  If the Trustee or Paying Agent is unable to apply any U.S. dollars or Government  Securities in accordance with Section 8.02 or Section 8.03, as the case may be, by reason of any order or  -98- 

 

-99- judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such  application, then the Company’s and the Guarantors’ obligations under this Indenture, the Notes and the  Note Guarantees shall be revived and reinstated as though no deposit had occurred pursuant to  Section 8.02 or Section 8.03 until such time as the Trustee or Paying Agent is permitted to apply all such  money in accordance with Section 8.02 or Section 8.03, as the case may be; provided that, if the  Company makes any payment of principal, premium, if any, or interest on any Note following the  reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders to receive  such payment from the money held by the Trustee or Paying Agent.  ARTICLE 9  AMENDMENT, SUPPLEMENT AND WAIVER  Section 9.01 Without Consent of Holders.  (a) Notwithstanding Section 9.02, without the consent of any Holder, the Company, the Guarantors and the Trustee may amend or supplement this Indenture, the Notes and the Note  Guarantees to:  (1) cure any ambiguity, omission, defect or inconsistency; (2) provide for the assumption by a successor entity of the obligations of the Company or any Guarantor under this Indenture, the Notes or the Note Guarantees in accordance  with Article 5;  (3) provide for or facilitate the issuance of uncertificated Notes in addition to or in place of certificated Notes; provided that the uncertificated Notes are issued in registered form for  purposes of Section 163(f) of the Code;  (4) comply with the rules of any applicable Depositary; (5) add Guarantors with respect to the Notes or release a Guarantor from its obligations under its Note Guarantee or this Indenture, in each case, in accordance with the  applicable provisions of this Indenture; provided that any supplemental indenture to add a  Guarantor may be signed by the Company, the Guarantor providing the Note Guarantee and the  Trustee;  (6) secure the Notes and the Note Guarantees; (7) add covenants of the Company and its Restricted Subsidiaries or Events of Default for the benefit of Holders or to make changes that would provide additional rights to the  Holders or to surrender any right or power conferred upon the Company or any Guarantor;  (8) make any change that does not adversely affect the legal rights under this Indenture, the Notes or the Note Guarantees of any Holder;  (9) evidence and provide for the acceptance of an appointment under this Indenture of a successor Trustee; provided that the successor Trustee is otherwise qualified and eligible to  act as such under the terms of this Indenture;  (10) conform the text of this Indenture, the Notes or the Note Guarantees to any provision of the “Description of notes” section of the Offering Memorandum to the extent that  

 

such provision in such “Description of notes” section was intended to be a verbatim recitation of  a provision of this Indenture, the Notes or the Note Guarantees (as evidenced by an Officers’  Certificate of the Company); or  (11) make any amendment to the provisions of this Indenture relating to the transfer, exchange and legending of Notes as permitted by this Indenture, including, without limitation, to  facilitate the issuance and administration of the Notes or, if Incurred in compliance with this  Indenture, Additional Notes; provided, however, that (A) compliance with this Indenture as so  amended would not result in Notes being transferred in violation of the Securities Act or any  applicable securities law and (B) such amendment does not materially and adversely affect the  rights of Holders to transfer Notes.  (b) A supplemental indenture pursuant to Section 9.01(a)(5) substantially in the form  of Exhibit C shall be required to be signed only by the Trustee and the Guarantor providing such Note  Guarantee.  Upon the request of the Company, and upon receipt by the Trustee of the documents  described in Section 12.04, the Trustee shall join with the Company and the Guarantors in the execution  of any amended or supplemental indenture authorized or permitted by the terms of this Indenture and to  make any further appropriate agreements and stipulations that may be therein contained, but the Trustee  shall not be obligated to enter into such amended or supplemental indenture that affects its own rights,  duties or immunities under this Indenture or otherwise.   Section 9.02 With Consent of Holders.  (a) Except as provided in Section 9.01 and this Section 9.02, the Company, the  Guarantors and the Trustee may amend or supplement this Indenture, the Notes and the Note Guarantees  with the consent of the Holders of a majority in principal amount of the Notes then outstanding  (including, without limitation, consents obtained in connection with a purchase of, or tender offer or  exchange offer for, Notes) and, subject to Section 6.04 and Section 6.07, any existing Default or Event of  Default (other than a Default or Event of Default in the payment of the principal, premium, if any, or  interest on the Notes, except a payment default resulting from an acceleration that has been rescinded) or  compliance with any provision of this Indenture, the Notes or the Note Guarantees may be waived with  the consent of the Holders of a majority in principal amount of the Notes then outstanding (including,  without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer  for, Notes). Section 2.08 and Section 2.09 shall determine which Notes are considered to be “outstanding”  for the purposes of this Section 9.02.  (b) Upon the request of the Company, and upon the filing with the Trustee of  evidence satisfactory to the Trustee of the consent of the Holders as aforesaid, and upon receipt by the  Trustee of the documents described in Section 7.02 and Section 12.04, the Trustee shall join with the  Company and the Guarantors in the execution of such amended or supplemental indenture unless such  amended or supplemental indenture directly affects the Trustee’s own rights, duties or immunities under  this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to,  enter into such amended or supplemental indenture.  (c) It shall not be necessary for the consent of the Holders under this Section 9.02 to  approve the particular form of any proposed amendment, supplement or waiver. It shall be sufficient if  such consent approves the substance thereof.  (d) After an amendment, supplement or waiver under this Section 9.02 becomes effective, the Company will give to the Holders a notice briefly describing such amendment, supplement  -100-   

 

or waiver. However, any failure of the Company to give such notice to all the Holders, or any defect in  the notice, will not impair or affect the validity of any such amendment, supplement or waiver.  (e) Without the consent of each affected Holder, an amendment, supplement or waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):  (1) reduce the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver;  (2) reduce the stated rate of interest or extend the stated time for payment of interest on any Note;  (3) reduce the principal of or extend the Stated Maturity of any Note; (4) waive a Default or Event of Default in the payment of principal of, premium, if any, or interest on the Notes (except a rescission of acceleration of the Notes by the Holders of at  least a majority in aggregate principal amount of the then outstanding Notes with respect to a  nonpayment default and a waiver of the payment default that resulted from such acceleration);  (5) reduce the premium payable upon the redemption of any Note or change the time at which any Note may be redeemed as described in Section 3.07 (excluding, for greater certainty,  any notice periods with respect to Notes that are otherwise redeemable);  (6) reduce the premium payable upon the repurchase of any Note or change the time at which any Note may be repurchased as described in Section 4.15 (subject to Section 4.15(h)) or  Section 4.16 (subject to Section 3.09(g) and Section 4.16(g));   (7) make any Note payable in a currency other than that stated in the Note; (8) amend the contractual right expressly set forth in this Indenture or the Notes of any Holder to institute suit for the enforcement of any payment on or with respect to such  Holder’s Notes;  (9) make any change in the amendment or waiver provisions which require each Holder’s consent; or  (10) modify the Note Guarantees in any manner adverse to the Holders. (f) A consent to any amendment, supplement or waiver of this Indenture, the Notes  or the Note Guarantee by any Holder given in connection with a tender of such Holder’s Notes will not be  rendered invalid by such tender.  Section 9.03 [Reserved].  Section 9.04 Revocation and Effect of Consents.  (a) Until an amendment, supplement or waiver becomes effective, a consent to it by  a Holder of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note  or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the  consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a Note  may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date  -101- 

 

the waiver, supplement or amendment becomes effective. An amendment, supplement or waiver becomes  effective in accordance with its terms and thereafter binds every Holder.  (b) The Company may, but shall not be obligated to, fix a record date pursuant to  Section 1.05 for the purpose of determining the Holders entitled to consent to any amendment,  supplement or waiver.  Section 9.05 Notation on or Exchange of Notes.  (a) The Trustee may place an appropriate notation about an amendment, supplement  or waiver on any Note thereafter authenticated. The Company may, in exchange for all Notes, issue new  Notes that reflect the amendment, supplement or waiver and the Trustee shall, upon receipt of an  Authentication Order, authenticate such new Notes.  (b) Failure to make the appropriate notation or issue a new Note shall not affect the  validity and effect of such amendment, supplement or waiver.  Section 9.06 Trustee to Sign Amendments, etc.  The Trustee shall sign any amendment, supplement or waiver authorized pursuant to this  Article 9 if the amendment, supplement or waiver does not adversely affect the rights, duties, liabilities or  immunities of the Trustee. In executing any amendment, supplement or waiver, the Trustee shall be  entitled to receive and (subject to Section 7.01) shall be fully protected in relying upon, in addition to the  documents required by Section 12.04, an Officers’ Certificate and an Opinion of Counsel stating that the  execution of such amended or supplemental indenture is authorized or permitted by this Indenture and  that such amendment, supplement or waiver is the legal, valid and binding obligation of the Company and  any Guarantor party thereto, enforceable against them in accordance with its terms, subject to customary  exceptions, and complies with the provisions hereof.  ARTICLE 10  GUARANTEES  Section 10.01 Guarantee.  (a) Subject to this Article 10, each of the Guarantors hereby, jointly and severally,  irrevocably and unconditionally guarantees, on a senior unsecured basis, to each Holder and to the  Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the  Notes or the obligations of the Company hereunder or thereunder, that: (1) the principal, premium, if any,  and interest (including post-petition interest in any proceeding under any Bankruptcy Law) on the Notes  shall be promptly paid in full when due, whether at Stated Maturity, by acceleration, redemption or  otherwise, and interest on the overdue principal and interest on the Notes, if any, if lawful, and all other  Obligations of the Company to the Holders or the Trustee hereunder or under the Notes shall be promptly  paid in full or performed, all in accordance with the terms hereof and thereof; and (2) in case of any  extension of time of payment or renewal of any Notes or any of such other obligations, that same shall be  promptly paid in full when due or performed in accordance with the terms of the extension or renewal,  whether at Stated Maturity, by acceleration or otherwise (collectively, the “Guaranteed Obligations”).  Failing payment by the Company when due of any amount so guaranteed or any performance so  guaranteed for whatever reason, the Guarantors shall be jointly and severally obligated to pay the same  immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.  -102- 

 

(b) The Guarantors hereby agree that their obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the  absence of any action to enforce the same, any waiver or consent by any Holder with respect to any  provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the  same or any other circumstance which might otherwise constitute a legal or equitable discharge or  defense of a guarantor. Each Guarantor hereby waives diligence, presentment, demand of payment, filing  of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a  proceeding first against the Company, protest, notice and all demands whatsoever and covenants that this  Note Guarantee shall not be discharged except by complete performance of the obligations contained in  the Notes and this Indenture, or pursuant to Section 10.06.  (c) Each of the Guarantors also agrees, jointly and severally, to pay the Trustee’s ordinary and extraordinary fees and expenses and the costs and expenses (including reasonable attorneys’  fees and expenses) incurred by the Trustee or any Holder in enforcing any rights under this Section 10.01.  (d) If any Holder or the Trustee is required by any court or otherwise to return to the  Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to  the Company or the Guarantors, any amount paid either to the Trustee or such Holder, this Note  Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.  (e) Each Guarantor agrees that it shall not be entitled to any right of subrogation in  relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all  obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on the one  hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the obligations guaranteed  hereby may be accelerated as provided in Article 6 for the purposes of this Note Guarantee,  notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the  obligations guaranteed hereby, and (2) in the event of any declaration of acceleration of such obligations  as provided in Article 6, such obligations (whether or not due and payable) shall forthwith become due  and payable by the Guarantors for the purpose of this Note Guarantee. The Guarantors shall have the right  to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair  the rights of the Holders under the Note Guarantees.  (f) Each Note Guarantee shall remain in full force and effect and continue to be  effective should any petition be filed by or against the Company for liquidation or reorganization, should  the Company become insolvent or make an assignment for the benefit of creditors or should a receiver or  trustee be appointed for all or any significant part of the Company’s assets, and shall, to the fullest extent  permitted by law, continue to be effective or be reinstated, as the case may be, if at any time payment and  performance of the Notes are, pursuant to applicable law, rescinded or reduced in amount, or must  otherwise be restored or returned by any obligee on the Notes or the Note Guarantees, whether as a  “voidable preference,” “fraudulent transfer” or otherwise, all as though such payment or performance had  not been made. In the event that any payment or any part thereof, is rescinded, reduced, restored or  returned, the Notes shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by  such amount paid and not so rescinded, reduced, restored or returned.  (g) In case any provision of any Note Guarantee shall be invalid, illegal or  unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be  affected or impaired thereby.  (h) Each payment to be made by a Guarantor in respect of its Note Guarantee shall  be made without set-off, counterclaim, reduction or diminution of any kind or nature.  -103- 

 

Section 10.02 Limitation on Guarantor Liability.  Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is  the intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent  conveyance or a fraudulent transfer for purposes of Bankruptcy Law, the Uniform Fraudulent  Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent  applicable to any Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the  Guarantors hereby irrevocably agree that the obligations of each Guarantor shall be limited to the  maximum amount as will, after giving effect to such maximum amount and all other contingent and fixed  liabilities of such Guarantor that are relevant under such laws and after giving effect to any collections  from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in  respect of the obligations of such other Guarantor under this Article 10, result in the obligations of such  Guarantor under its Note Guarantee not constituting a fraudulent conveyance or fraudulent transfer under  applicable law. Each Guarantor that makes a payment under its Note Guarantee will be entitled upon  payment in full of all Guaranteed Obligations under this Indenture to a contribution from each other  Guarantor in an amount equal to such other Guarantor’s pro rata portion of such payment based on the  respective net assets of all the Guarantors at the time of such payment, determined in accordance with  GAAP.  Section 10.03 Execution and Delivery.  (a) To evidence its Note Guarantee set forth in Section 10.01, each Guarantor hereby  agrees that this Indenture shall be executed on behalf of such Guarantor by an Officer or person holding  an equivalent title.  (b) Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01  shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of  such Note Guarantee on the Notes.  (c) If an Officer whose signature is on this Indenture no longer holds that office at the time the Trustee authenticates the Note, the Note Guarantees shall be valid nevertheless.  (d) The delivery of any Note by the Trustee, after the authentication thereof  hereunder, shall constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the  Guarantors.  (e) If required by Section 4.11, the Company shall cause any newly created or  acquired Domestic Subsidiary (other than an Excluded Subsidiary) to comply with the provisions of  Section 4.11 and this Article 10, to the extent applicable.    Section 10.04 Subrogation.  Each Guarantor shall be subrogated to all rights of Holders against the Company in  respect of any amounts paid by any Guarantor pursuant to the provisions of Section 10.01; provided that,  if an Event of Default has occurred and is continuing, no Guarantor shall be entitled to enforce or receive  any payments arising out of, or based upon, such right of subrogation until all amounts then due and  payable by the Company under this Indenture or the Notes shall have been paid in full.  -104- 

 

-105- Section 10.05 Benefits Acknowledged.  Each Guarantor acknowledges that it will receive direct and indirect benefits from the  financing arrangements contemplated by this Indenture and that the guarantee and waivers made by it  pursuant to its Note Guarantee are knowingly made in contemplation of such benefits.  Section 10.06 Release of Note Guarantees.  (a) A Note Guarantee by a Guarantor shall be automatically and unconditionally released and discharged and be of no further force and effect, and no further action by such Guarantor, the  Company or the Trustee shall be required for the release of such Guarantor’s Note Guarantee, upon:  (1) any sale, assignment, transfer, conveyance, exchange or other disposition (by merger, consolidation or otherwise) of the Capital Stock of such Guarantor upon which the  applicable Guarantor is no longer a Restricted Subsidiary, which sale, assignment, transfer,  conveyance, exchange or other disposition is made in compliance with the provisions of this  Indenture;  (2) the release or discharge of such Guarantor from its liability as borrower under, or Guarantee of Indebtedness of the Company under, the Senior Secured Credit Facilities (including  by reason of the termination of the Senior Secured Credit Facilities) and its Guarantee of all other  Material Indebtedness of the Company and the Guarantors, including the Guarantee that resulted  in the obligation of such Guarantor to Guarantee the Notes, if such Guarantor would not then  otherwise be required to Guarantee the Notes pursuant to this Indenture, except a release or  discharge by or as a result of payment under such Guarantee under the Senior Secured Credit  Facilities or such Material Indebtedness (it being understood that a release subject to a contingent  reinstatement is still a release, and that if any such Guarantee of Indebtedness of the Company  under the Senior Secured Credit Facilities or any other Material Indebtedness is reinstated, such  Note Guarantee shall also be reinstated to the extent that such Guarantor would then be required  to provide a Note Guarantee pursuant to Section 4.11); provided that if such Guarantor has  Incurred any Indebtedness in reliance on its status as a Guarantor under Section 4.09, such  Guarantor’s obligations under such Indebtedness so Incurred are satisfied in full and discharged  or are otherwise permitted to be Incurred by a Restricted Subsidiary (other than a Guarantor)  under Section 4.09;  (3) the proper designation of such Guarantor as an Unrestricted Subsidiary; or (4) the Company’s exercise of its Legal Defeasance option or Covenant Defeasance option in accordance with Article 8 or the discharge of the Company’s obligations under this  Indenture in accordance with the terms of this Indenture.  (b) At the request of the Company, and upon delivery to the Trustee of an Officers’ Certificate and an Opinion of Counsel that such release of a Note Guarantee complies with this Indenture,  the Trustee shall execute and deliver an appropriate instrument evidencing such release and discharge in  respect of the applicable Note Guarantee.  

 

ARTICLE 11  SATISFACTION AND DISCHARGE  Section 11.01 Satisfaction and Discharge.  (a) This Indenture will be discharged and will cease to be of further effect as to all Notes, when either:  (1) all Notes that have been authenticated and delivered (except lost, stolen or destroyed Notes that have been replaced or paid and Notes for whose payment money has been  deposited in trust) have been delivered to the Trustee for cancellation; or  (2) (A) all Notes not theretofore delivered to the Trustee for cancellation have become due and payable by reason of the giving of a notice of redemption, will become due  and payable within one year or are to be called for redemption within one year under  arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in  the name, and at the expense, of the Company, and the Company or any Guarantor has  irrevocably deposited or caused to be deposited with the Trustee, as trust funds in trust solely for  the benefit of the Holders, cash in U.S. dollars, Government Securities, or a combination thereof,  in such amounts as will be sufficient, as confirmed, certified or attested to by an Independent  Financial Advisor in writing to the Trustee if Government Securities are delivered, without  consideration of any reinvestment of interest, to pay and discharge the entire Indebtedness on the  Notes not theretofore delivered to the Trustee for cancellation for principal, premium, if any, and  accrued interest to the date of maturity or redemption, as the case may be;  (B) no Default or Event of Default has occurred and is continuing on the date of such deposit or will occur as a result of such deposit (other than a Default or an Event of  Default resulting from the borrowing of funds to be applied to make such deposit and any similar  and simultaneous deposit relating to other Indebtedness and, in each case, the granting of Liens in  connection therewith) and the deposit will not result in a breach or violation of, or constitute a  default under, the Senior Secured Credit Facilities or any other material agreement or material  instrument (other than this Indenture) to which the Company or any Guarantor is a party or by  which the Company or any Guarantor is bound;  (C) the Company or any Guarantor has paid or caused to be paid all sums payable by the Company under this Indenture; and  (D) the Company has delivered irrevocable instructions to the Trustee to apply the deposited money toward the payment of the Notes at maturity or the redemption date,  as the case may be.  (b) In addition, the Company shall deliver to the Trustee an Officers’ Certificate and  an Opinion of Counsel (which Opinion of Counsel may be subject to customary assumptions and  exclusions) each stating that all conditions precedent to satisfaction and discharge have been satisfied.  Notwithstanding the satisfaction and discharge of this Indenture, the provisions of Sections 7.07, 8.06 and  11.02 shall survive.  Section 11.02 Application of Trust Money.  (a) Subject to the provisions of Section 8.06, all money deposited with the Trustee pursuant to Section 11.01 shall be held in trust and applied by it, in accordance with the provisions of the  -106- 

 

-107- Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the  Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto,  of the principal, premium, if any, and interest for whose payment such money has been deposited with the  Trustee, but such money need not be segregated from other funds except to the extent required by law.  (b) If the Trustee or Paying Agent is unable to apply any money or Government Securities in accordance with Section 11.01 by reason of any legal proceeding or by reason of any order  or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such  application, the Company’s and any Guarantor’s obligations under this Indenture, the Notes and the Note  Guarantees shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01;  provided that if the Company has made any payment of principal, premium, if any, or interest on any  Notes because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the  Holders of such Notes to receive such payment from the money or Government Securities held by the  Trustee or Paying Agent, as the case may be.  ARTICLE 12  MISCELLANEOUS  Section 12.01 Concerning the Trust Indenture Act.  The Trust Indenture Act of 1939, as amended, shall not be applicable to, and shall not  govern, this Indenture, the Notes and the Note Guarantees.  Section 12.02 Notices.  (a) Any notice or communication to the Company, any Guarantor or the Trustee is duly given if in writing and (1) delivered in person, (2) mailed by first-class mail (certified or registered,  return receipt requested), postage prepaid, or overnight air courier guaranteeing next day delivery or  (3) sent electronic transmission, to its address: if to the Company or any Guarantor:  c/o Kontoor Brands, Inc.  400 N. Elm Street  Greensboro, North Carolina 27401  Email: dave.kovach @kontoorbrands.com  Attention: David Kovach  with a copy (which shall not constitute notice) to:  Davis Polk & Wardwell LLP  450 Lexington Ave  New York, NY 10017  Email: deanna.kirkpatrick@davispolk.com  roshni.cariello@davispolk.com  Attention: Deanna Kirkpatrick  Roshni Banker Cariello  if to the Trustee:  U.S. Bank National Association  214 North Tryon Street, 27th Floor  

 

Charlotte, North Carolina 28202  Attention: Global Corporate Trust – Kontoor Brands, Inc.   The Company, any Guarantor or the Trustee, by like notice, may designate additional or different  addresses for subsequent notices or communications.  (b) All notices and communications (other than those sent to Holders) shall be  deemed to have been duly given: at the time delivered by hand, if personally delivered; on the first date of  which publication is made, if by publication; five calendar days after being deposited in the mail, postage  prepaid, if mailed by first-class mail; the next Business Day after timely delivery to the courier, if mailed  by overnight air courier guaranteeing next day delivery; when receipt acknowledged, if sent by facsimile  or electronic transmission; provided that any notice or communication delivered to the Trustee shall be  deemed effective upon actual receipt thereof.  (c) Any notice or communication to a Holder shall be mailed by first-class mail (certified or registered, return receipt requested) or by overnight air courier guaranteeing next day  delivery to its address shown on the Note Register or by such other delivery system as the Trustee agrees  to accept (including, if applicable, the Applicable Procedures). Failure to mail or otherwise deliver a  notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to  other Holders.  (d) Where this Indenture provides for notice in any manner, such notice may be  waived in writing by the Person entitled to receive such notice, either before or after the event, and such  waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee,  but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such  waiver.  (e) Notwithstanding anything to the contrary, where this Indenture provides for  notice of any event to a Holder of a Global Note, such notice shall be sufficiently given if given to the  Depositary for such Note (or its designee), according to the applicable procedures of such Depositary, if  any, prescribed for the giving of such notice.  (f) The Trustee shall have the right to accept and act upon directions given pursuant  to this Indenture or any other document reasonably relating to the Notes and delivered using Electronic  Means; provided, however, that the Company or other party providing that notice shall provide to the  Trustee an incumbency certificate listing Officers or authorized representatives, as applicable, with the  authority to provide such directions and containing specimen signatures of such Officers or authorized  representatives, which incumbency certificate shall be amended whenever a person is to be added or  deleted from the listing. The Company and any other party providing such notice via Electronic Means  understands and agrees that the Trustee cannot determine the identity of the actual sender of such  directions and that the Trustee shall conclusively presume that they have been sent by an authorized  Officer or authorized representative. The Company and any other party providing notice via Electronic  Means shall be responsible for ensuring that only authorized Officers  or representatives, as applicable,  transmit such directions to the Trustee and that all authorized Officers  or representatives treat applicable  user and authorization codes, passwords and/or authentication keys with extreme care.  The Trustee shall  not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reasonable  reliance upon and compliance with such directions notwithstanding such directions conflict or are  inconsistent with a subsequent written direction. The Company and any other party providing notice via  Electronic Means agrees: (i) to assume all risks arising out of the use of Electronic Means to submit  directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized   directions,  and the  risk of interception and misuse by third parties; (ii) that it is fully informed of the  -108- 

 

-109- protections and risks associated with the various methods of transmitting directions to the Trustee and that  there may be more secure methods of transmitting directions than the method(s) selected by it; (iii) that  the security procedures (if any) to be followed in connection with its transmission of directions provide to  it a commercially reasonable degree of protection in light of its particular needs and circumstances and  (iv) to notify the Trustee  immediately  upon  learning of any compromise or unauthorized use of the security procedures. (g) If a notice or communication is sent in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.  (h) If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time.  Section 12.03 [Reserved].  Section 12.04 Certificate and Opinion as to Conditions Precedent.  Upon any request or application by the Company or any Guarantor to the Trustee to take  any action under this Indenture, the Company or such Guarantor, as the case may be, shall furnish to the  Trustee:  (1) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 12.05) stating that, in the  opinion of the signer(s), all conditions precedent and covenants, 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 (which shall include the statements set forth in Section 12.05) stating that, in the  opinion of such counsel, all such conditions precedent and covenants have been complied with;  provided that no Opinion of Counsel pursuant to this Section 12.04 shall be required in  connection with the authentication of Notes on the Issue Date.  Section 12.05 Statements Required in Certificate or Opinion.  Each certificate or opinion with respect to compliance with a condition or covenant  provided for in this Indenture (other than a certificate provided pursuant to Section 4.07) shall include:  (1) a statement that the Person 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 Person, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion  as to whether or not such covenant or condition has been complied with (and, in the case of an  Opinion of Counsel, may be limited to reliance on an Officers’ Certificate as to matters of fact);  and  (4) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.  

 

Section 12.06 Rules by Trustee and Agents.  The Trustee may make reasonable rules for action by or at a meeting of Holders. The  Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions.  Section 12.07 No Personal Liability of Directors, Officers, Employees, Members, Partners and  Stockholders.  No past, present or future director, officer, employee, incorporator, member, partner or  stockholder of the Company or any Guarantor, as such, shall have any liability for any obligations of the  Company or any Guarantor under the Notes, the Note Guarantees or this Indenture or for any claim based  on, in respect of, or by reason of such obligations or their creation.  Each Holder by accepting a Note waives and releases all such liability. The waiver and  release are part of the consideration for issuance of the Notes.  Section 12.08 Governing Law; Submission to Jurisdiction.  THIS INDENTURE, THE NOTES AND ANY NOTE GUARANTEE WILL BE  GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF  NEW YORK. ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED  UPON THIS INDENTURE OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE  INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN  THE CITY OF NEW YORK OR THE COURTS OF THE STATE OF NEW YORK IN EACH CASE  LOCATED IN THE CITY OF NEW YORK, AND EACH OF THE PARTIES HERETO HEREBY  IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS IN  ANY SUCH SUIT, ACTION OR PROCEEDING.  Section 12.09 Waiver of Jury Trial.  EACH OF THE COMPANY, THE GUARANTORS AND THE TRUSTEE, AND  EACH HOLDER OF A NOTE BY ITS ACCEPTANCE THEREOF, HEREBY IRREVOCABLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL  RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING  TO THIS INDENTURE, THE NOTES, THE NOTE GUARANTEES OR THE TRANSACTIONS  CONTEMPLATED HEREBY.  Section 12.10 Force Majeure.  In no event shall the Trustee be responsible or liable for any failure or delay in the  performance of its obligations under this Indenture arising out of or caused by, directly or indirectly,  forces beyond its reasonable control, including without limitation strikes, work stoppages, accidents, acts  of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God,  epidemics, pandemics, quarantine restrictions, and interruptions, loss or malfunctions of utilities,  communications or computer (software or hardware) services or other unavailability of the Federal  Reserve Bank wire or facsimile or other wire or communication facility or hacking or cyber-attacks, or  other infiltration of the Trustee’s technological infrastructure exceeding authorized access, or other causes  reasonably beyond its control; it being understood that the Trustee shall use reasonable efforts which are  consistent with accepted practices in the banking industry to resume performance as soon as practicable  under the circumstances.   -110- 

 

Section 12.11 No Adverse Interpretation of Other Agreements.  This Indenture may not be used to interpret any other indenture, loan or debt agreement  of the Company or its Restricted Subsidiaries or of any other Person. Any such indenture, loan or debt  agreement may not be used to interpret this Indenture.  Section 12.12 Successors.  All agreements of the Company in this Indenture and the Notes shall bind its successors.  All agreements of the Trustee in this Indenture shall bind its successors. All agreements of each  Guarantor in this Indenture shall bind its successors, except as otherwise provided in Section 10.06.  Section 12.13 Severability.  In case any provision in this Indenture or in the Notes shall be invalid, illegal or  unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be  affected or impaired thereby.  Section 12.14 Counterpart Originals.  The parties may sign any number of copies of this Indenture. Each signed copy shall be  an original, but all of them together represent the same agreement. Counterparts may be delivered via  facsimile, electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of  2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other  applicable law, e.g., www.docusign.com) or other transmission method and any counterpart so delivered,  including as described in Section 12.16, shall be deemed to have been duly and validly delivered and be  valid and effective for all purposes.  Section 12.15 Table of Contents, Headings, etc.  The Table of Contents and headings of the Articles and Sections of this Indenture have  been inserted for convenience of reference only, are not to be considered a part of this Indenture and shall  in no way modify or restrict any of the terms or provisions hereof.  Section 12.16 Facsimile and PDF Delivery of Signature Pages.  The exchange of copies of this Indenture, the Notes and of signature pages by facsimile,  portable document format (“PDF”), or other electronic transmission shall constitute effective execution  and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for  all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their  original signatures for all purposes and shall be of the same legal effect, validity or enforceability as a  manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system,  as the case may be, and the parties hereto consent to conduct the transactions contemplated hereunder by  such means. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or  relating to this Indenture shall be deemed to include electronic signatures provided by the electronic  signing service DocuSign initiated by the Trustee (or such other digital signature provider as specified in  writing to Trustee by the authorized representative as shall be acceptable to the Trustee), deliveries or the  keeping of records in electronic form, each of which shall be of the same legal effect, validity or  enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based  recordkeeping system, as the case may be, and the parties hereto consent to conduct the transactions  contemplated hereunder by Electronic Means.  -111- 

 

-112- Section 12.17 U.S.A. PATRIOT Act.  The parties hereto acknowledge that in accordance with Section 326 of the U.S.A.  PATRIOT Act, the Trustee is required to obtain, verify, and record information that identifies each person  or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this  Indenture agree that they will provide the Trustee with such information as it may request in order for the  Trustee to satisfy the requirements of the U.S.A. PATRIOT Act.  Section 12.18 Payments Due on Non-Business Days.  In any case where any Interest Payment Date, redemption date or repurchase date or the  Stated Maturity of the Notes shall not be a Business Day, then (notwithstanding any other provision of  this Indenture or of the Notes) payment of principal, premium, if any, or interest on the Notes need not be  made on such date, but may be made on the next succeeding Business Day with the same force and effect  as if made on the Interest Payment Date, redemption date or repurchase date, or at the Stated Maturity of  the Notes, provided that no interest will accrue for the period from and after such Interest Payment Date,  redemption date, repurchase date or Stated Maturity, as the case may be.  [Signature pages follow]  

 

[Signature page to Indenture for 4.125% Senior Notes due 2029]  KONTOOR BRANDS, INC.  By:       /s/ David Kovach  Name: David Kovach  Title: Vice President and Treasurer  RETAIL PRODUCTIVITY MANAGEMENT INC.  KONTOOR SALES, INC.  KONTOOR RETAIL, INC.  KONTOOR ENTERPRISES, LLC  THE H.D. LEE COMPANY, INC.  R&R APPAREL COMPANY, LLC  WRANGLER APPAREL CORP.  KONTOOR SERVICES, LLC,  KONTOOR US, LLC   By:       /s/ David Kovach  Name: David Kovach  Title: Vice President and Treasurer  

 

[Signature page to Indenture for 4.125% Senior Notes due 2029]  U.S. BANK NATIONAL ASSOCIATION, as Trustee  By:    /s/ Ryan Riggleman  Name:  Ryan Riggleman  Title:    Vice President  

 

APPENDIX A    PROVISIONS RELATING TO INITIAL NOTES AND  ADDITIONAL NOTES   Section 1.1  Definitions.   (a) Capitalized Terms.  Capitalized terms used but not defined in this Appendix A have the meanings given to  them in this Indenture. The following capitalized terms have the following meanings:    “Applicable Procedures” means, with respect to any transfer or transaction involving a  Global Note or beneficial interest therein, the rules and procedures of the Depositary for such Global  Note, Euroclear or Clearstream, in each case to the extent applicable to such transaction and as in effect  from time to time.    “Clearstream” means Clearstream Banking, Société Anonyme, or any successor  securities clearing agency.    “Distribution Compliance Period,” with respect to any Note, means the period of 40  consecutive days beginning on and including the later of (a) the day on which such Note is first offered to  persons other than distributors (as defined in Regulation S) in reliance on Regulation S, notice of which  day shall be promptly given by the Company to the Trustee, and (b) the date of issuance with respect to  such Note or any predecessor of such Note.    “Euroclear” means Euroclear Bank S.A./N.Y., as operator of Euroclear systems  Clearance System or any successor securities clearing agency.   “IAI” means an institution that is an “accredited investor” as described in Rule 501(a)(1),  (2), (3) or (7) under the Securities Act and is not a QIB.   “QIB” means a “qualified institutional buyer” as defined in Rule 144A.   “Regulation S” means Regulation S promulgated under the Securities Act.   “Rule 144” means Rule 144 promulgated under the Securities Act.   “Rule 144A” means Rule 144A promulgated under the Securities Act.   “Unrestricted Global Note” means any Note in global form that does not bear or is not  required to bear the Restricted Notes Legend.   “U.S. person” means a “U.S. person” as defined in Regulation S.   (b) Other Definitions.  Term:  Defined in  Section:     “Agent Members” ........................................................................................  2.1(c)  “Definitive Notes Legend” ...........................................................................  2.2(e)  “ERISA Legend”  .........................................................................................  2.2(e)  “Global Note”  ............................................................................................  2.1(b)  

 

2  Term:  Defined in  Section:  “Global Notes Legend” ...............................................................................  2.2(e)  “IAI Global Note” .......................................................................................  2.1(b)  “Regulation S Global Note” ........................................................................  2.1(b)  “Regulation S Notes”...................................................................................  2.1(a)  “Restricted Notes Legend” ..........................................................................  2.3(e)  “Rule 144A Global Note” ............................................................................  2.1(b)  “Rule 144A Notes”  .....................................................................................  2.1(a)  Section 2.1 Form and Dating  (a) The Initial Notes issued on the date hereof shall be (i) offered and sold by the Company to the initial purchasers thereof and (ii) resold, initially only to (1) QIBs in reliance on  Rule 144A (“Rule 144A Notes”) and (2) Persons other than U.S. persons in reliance on Regulation S  (“Regulation S Notes”). Additional Notes may also be considered to be Rule 144A Notes or Regulation S  Notes, as applicable.   (b) Global Notes. Rule 144A Notes shall be issued initially in the form of one or more permanent global Notes in definitive, fully registered form, numbered RA-1 upward (collectively, the  “Rule 144A Global Note”) and Regulation S Notes shall be issued initially in the form of one or more  global Notes, numbered RS-1 upward (collectively, the “Regulation S Global Note”), in each case without  interest coupons and bearing the Global Notes Legend and Restricted Notes Legend, which shall be  deposited on behalf of the purchasers of the Notes represented thereby with the Custodian, and registered  in the name of the Depositary or a nominee of the Depositary, duly executed by the Company and  authenticated by the Trustee as provided in this Indenture. One or more global Notes in definitive, fully  registered form without interest coupons and bearing the Global Notes Legend and the Restricted Notes  Legend, numbered RIAI-1 upward (collectively, the “IAI Global Note”) shall also be issued at the request  of the Trustee, deposited with the Custodian, and registered in the name of the Depositary or a nominee of  the Depositary, duly executed by the Company and authenticated by the Trustee as provided in this  Indenture to accommodate transfers of beneficial interests in the Notes to IAIs subsequent to the initial  distribution. The Rule 144A Global Note, the IAI Global Note, the Regulation S Global Note and any  Unrestricted Global Note are each referred to herein as a “Global Note” and are collectively referred to  herein as “Global Notes.” Each Global Note shall represent such of the outstanding Notes as shall be  specified in the “Schedule of Exchanges of Interests in the Global Note” attached thereto and each shall  provide that it shall represent the aggregate principal amount of Notes from time to time endorsed thereon  and that the aggregate principal amount of outstanding Notes represented thereby may from time to time  be reduced or increased, as applicable, to reflect exchanges and redemptions. Any endorsement of a  Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of  outstanding Notes represented thereby shall be made by the Trustee or the Custodian, at the direction of  the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.06 of  this Indenture and Section 2.2(c) of this Appendix A.  The Company has entered into a letter of  representations with the Depositary in the form provided by the Depositary and the Trustee and each  Agent are hereby authorized to act in accordance with such letter and Applicable Procedures.   (c) Book-Entry Provisions. This Section 2.1(c) shall apply only to a Global Note deposited with or on behalf of the Depositary.  The Company shall execute and the Trustee shall, in accordance with this Section 2.1(c)  and Section 2.02 of this Indenture and pursuant to an order of the Company signed by one Officer of the  

 

3  Company, authenticate and deliver initially one or more Global Notes that (i) shall be registered in the  name of the Depositary for such Global Note or Global Notes or the nominee of such Depositary and  (ii) shall be delivered by the Trustee to such Depositary or pursuant to such Depositary’s instructions or held by the Trustee as Custodian. Members of, or participants in, the Depositary (“Agent Members”) shall have no rights  under the Indenture with respect to any Global Note held on their behalf by the Depositary or by the  Trustee as Custodian or under such Global Note, and the Depositary may be treated by the Company, the  Trustee and any agent of the Company or the Trustee as the absolute owner of such Global Note for all  purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the  Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy  or other authorization furnished by the Depositary or impair, as between the Depositary and its Agent  Members, the operation of customary practices of such Depositary governing the exercise of the rights of  a holder of a beneficial interest in any Global Note.  (d) Definitive Notes. Except as provided in Section 2.2 or Section 2.3 of this Appendix A, owners of beneficial interests in Global Notes shall not be entitled to receive physical delivery of  Definitive Notes.  Section 2.2 Transfer and Exchange.  (a) Transfer and Exchange of Definitive Notes for Definitive Notes. When Definitive Notes are presented to the Registrar with a request:  (i) to register the transfer of such Definitive Notes; or (ii) to exchange such Definitive Notes for an equal principal amount of Definitive Notes 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 Notes surrendered for transfer or  exchange:  (1) 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  his attorney duly authorized in writing; and  (2) in the case of Transfer Restricted Notes, they are being transferred or exchanged pursuant to an effective registration statement under the Securities Act or pursuant to  Section 2.2(b) of this Appendix A or otherwise in accordance with the Restricted Notes Legend,  and are accompanied by a certification from the transferor in the form provided on the reverse  side of the Form of Note in Exhibit A for exchange or registration of transfers and, as applicable,  delivery of such legal opinions, certifications and other information as may be requested pursuant  thereto.  (b) Restrictions on Transfer of a Definitive Note for a Beneficial Interest in a Global Note. A Definitive Note may not be exchanged for a beneficial interest in a Global Note except upon  satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Definitive Note, duly  endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the  Company and the Registrar, together with:  

 

4  (i) a certification from the transferor in the form provided on the reverse side of the Form of Note in Exhibit A for exchange or registration of transfers and, as applicable, delivery of such  legal opinions, certifications and other information as may be requested pursuant thereto;   (ii) written instructions directing the Trustee to make, or to direct the Custodian to make, an adjustment on its books and records with respect to such Global Note to reflect an increase in  the aggregate principal amount of the Notes represented by the Global Note, such instructions to  contain information regarding the Depositary account to be credited with such increase; and  (iii) upon request by the Trustee, all information that is in the possession of the applicable party and that is necessary to allow the Trustee to comply with any tax reporting obligations  applicable to the Trustee under applicable tax law in respect of such exchange, including without  limitation any cost basis reporting obligations under Section 6045 of the Code (and the Trustee  may rely on the information provided to it and shall have no responsibility to verify or ensure the  accuracy of such information),  the Trustee shall cancel such Definitive Note and cause, or direct the Custodian to cause, in accordance  with the standing instructions and procedures existing between the Depositary and the Custodian, the  aggregate principal amount of Notes represented by the Global Note to be increased by the aggregate  principal amount of the Definitive Note 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 Global Note equal to the  principal amount of the Definitive Note so canceled. If the applicable Global Note is not then outstanding,  the Company shall issue and the Trustee shall authenticate, upon an Authentication Order, a new  applicable Global Note in the appropriate principal amount.  (c) Transfer and Exchange of Global Notes. (i) The transfer and exchange of Global Notes or beneficial interests therein shall be effected through the Depositary, in accordance with this Indenture (including applicable restrictions on  transfer set forth in Section 2.2(d) of this Appendix A, if any) and the procedures of the Depositary  therefor. A transferor of a beneficial interest in a Global Note shall deliver to the Registrar a written order  given in accordance with the Depositary’s procedures containing information regarding the participant  account of the Depositary to be credited with a beneficial interest in such Global Note, or another Global  Note and such account shall be credited in accordance with such order with a beneficial interest in the  applicable Global Note and the account of the Person making the transfer shall be debited by an amount  equal to the beneficial interest in the Global Note being transferred.   (ii) If the proposed transfer is a transfer of a beneficial interest in one Global Note to a beneficial interest in another Global Note, the Registrar shall reflect on its books and records the date and  an increase in the principal amount of the Global Note 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 Note  from which such interest is being transferred.  (iii) Notwithstanding any other provisions of this Appendix A (other than the provisions set forth in Section 2.3 of this Appendix A), a Global Note may not be transferred except as a whole and  not in part if the transfer is by the Depositary to a nominee of the Depositary or by a nominee of the  Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such  nominee to a successor Depositary or a nominee of such successor Depositary.  

 

5  (d) Restrictions on Transfer of Global Notes; Voluntary Exchange of Interests in Transfer Restricted Global Notes for Interests in Unrestricted Global Notes.  (i) Transfers by an owner of a beneficial interest in a Rule 144A Global Note or an IAI Global Note to a transferee who takes delivery of such interest through another Transfer Restricted Global  Note shall be made in accordance with the Applicable Procedures and the Restricted Notes Legend and  only upon receipt by the Trustee of a certification from the transferor in the form provided on the reverse  side of the Form of Note in Exhibit A for exchange or registration of transfers and, as applicable, delivery  of such legal opinions, certifications and other information as may be requested pursuant thereto. In  addition, in the case of a transfer of a beneficial interest in either a Regulation S Global Note or a  Rule 144A Global Note for an interest in an IAI Global Note, the transferee must furnish a signed letter  substantially in the form of Exhibit B to the Trustee.   (ii) During the Distribution Compliance Period, beneficial ownership interests in the Regulation S Global Note may only be sold, pledged or transferred through Euroclear or Clearstream in  accordance with the Applicable Procedures, the Restricted Notes Legend on such Regulation S Global  Note and any applicable securities laws of any state of the United States of America. Prior to the  expiration of the Distribution Compliance Period, transfers by an owner of a beneficial interest in the  Regulation S Global Note to a transferee who takes delivery of such interest through a Rule 144A Global  Note or an IAI Global Note shall be made only in accordance with the Applicable Procedures and the  Restricted Notes Legend and upon receipt by the Trustee of a written certification from the transferor of  the beneficial interest in the form provided on the reverse side of the Form of Note in Exhibit A for  exchange or registration of transfers. Such written certification shall no longer be required after the  expiration of the Distribution Compliance Period. Upon the expiration of the Distribution Compliance  Period, beneficial ownership interests in the Regulation S Global Note shall be transferable in accordance  with applicable law and the other terms of the Indenture.  (iii) Upon the expiration of the Distribution Compliance Period, beneficial interests in the Regulation S Global Note may be exchanged for beneficial interests in an Unrestricted Global Note upon  certification in the form provided on the reverse side of the Form of Note in Exhibit A for an exchange  from a Regulation S Global Note to an Unrestricted Global Note.   (iv) Beneficial interests in a Transfer Restricted Note that is a Rule 144A Global Note or an IAI Global Note may be exchanged for beneficial interests in an Unrestricted Global Note upon  certification in the form provided on the reverse side of the Form of Note in Exhibit A for an exchange  from a Rule 144A Global Note to an Unrestricted Global Note and/or upon delivery of such legal  opinions, certifications and other information as the Company or the Trustee may reasonably request.   (v) If no Unrestricted Global Note is outstanding at the time of a transfer contemplated by the preceding clauses (iii) and (iv), the Company shall issue and the Trustee shall authenticate, upon an  Authentication Order, a new Unrestricted Global Note in the appropriate principal amount.  (e) Legends. (i) Except as permitted by Section 2.2(d), this Section 2.2(e) and Section 2.2(i) of this Appendix A, each Note certificate evidencing the Global Notes and the Definitive Notes (and all Notes  issued in exchange therefor or in substitution thereof) shall bear a legend in substantially the following  form (each defined term in the legend being defined as such for purposes of the legend only) (“Restricted  Notes Legend”):  

 

6  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: SIX MONTHS AFTER THE LATER OF THE ORIGINAL ISSUE DATE  HEREOF, THE ORIGINAL ISSUE DATE OF THE ISSUANCE OF ANY  ADDITIONAL NOTES AND THE LAST DATE ON WHICH THE ISSUER OR ANY  AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY  PREDECESSOR OF SUCH SECURITY),] [IN THE CASE OF REGULATION S  NOTES: 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF,  THE ORIGINAL ISSUE DATE OF THE ISSUANCE OF ANY ADDITIONAL NOTES  AND THE DATE ON WHICH THIS SECURITY (OR ANY PREDECESSOR OF  SUCH SECURITY) WAS FIRST OFFERED TO PERSONS OTHER THAN  DISTRIBUTORS (AS DEFINED IN RULE 902 OF REGULATION S) IN RELIANCE  ON REGULATION S], ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY  THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS  BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO  LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE  144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT  REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS  DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR  THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE  IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE  144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT  OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF  REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL  “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3)  OR (7) UNDER THE SECURITIES ACT THAT IS NOT A QUALIFIED  INSTITUTIONAL BUYER AND THAT IS PURCHASING FOR ITS OWN  ACCOUNT OR FOR THE ACCOUNT OF ANOTHER INSTITUTIONAL  ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL  AMOUNT OF SECURITIES OF $250,000 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.   [IN THE CASE OF REGULATION S NOTES: BY ITS ACQUISITION HEREOF, THE  HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON NOR IS IT  PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING  

 

7  THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH  REGULATION S UNDER THE SECURITIES ACT.]  Each Definitive Note shall bear the following additional legend (“Definitive Notes Legend”):  IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO  THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER  INFORMATION AS SUCH REGISTRAR AND TRANSFER AGENT MAY  REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES  WITH THE FOREGOING RESTRICTIONS.  Each Global Note shall bear the following additional legend (“Global Notes 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 DTC, TO NOMINEES OF DTC OR TO A  SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS  OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO  TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH  IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.  Each Note shall bear the following additional legend (“ERISA Legend”):  BY ITS ACQUISITION OF THIS SECURITY, THE HOLDER THEREOF WILL BE  DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER (1) NO  PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE OR HOLD  THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT  PLAN THAT IS SUBJECT TO TITLE I OF THE U.S. EMPLOYEE RETIREMENT  INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF A PLAN,  INDIVIDUAL RETIREMENT ACCOUNT OR OTHER ARRANGEMENT THAT IS  SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL REVENUE CODE OF 1986,  AS AMENDED (THE “CODE”) OR PROVISIONS UNDER ANY OTHER U.S. OR  NON-U.S. FEDERAL, STATE, LOCAL OR OTHER LAWS OR REGULATIONS  THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE  (“SIMILAR LAWS”), OR OF AN ENTITY WHOSE UNDERLYING ASSETS ARE  CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT  OR ARRANGEMENT, OR (2) THE ACQUISITION, HOLDING AND DISPOSITION  OF THIS SECURITY WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED  

 

8  TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE  CODE OR A SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.  (ii) Upon any sale or transfer of a Transfer Restricted Note that is a Definitive Note, the Registrar shall permit the Holder thereof to exchange such Transfer Restricted Note for a Definitive Note  that does not bear the Restricted Notes Legend and the Definitive Notes Legend and rescind any  restriction on the transfer of such Transfer Restricted Note if the Holder certifies in writing to the  Registrar that its request for such exchange is in respect of a transfer made in reliance on Rule 144 (such  certification to be in the form set forth on the reverse side of the Form of Note in Exhibit A) and provides  such legal opinions, certifications and other information as the Company or the Trustee may reasonably  request.  (iii) After a transfer of any Initial Notes or Additional Notes during the period of the effectiveness of a Shelf Registration Statement with respect to such Initial Notes or Additional Notes, as  the case may be, all requirements pertaining to the Restricted Notes Legend on such Initial Notes or  Additional Notes shall cease to apply and the requirements that any such Initial Notes or Additional Notes  be issued in global form shall continue to apply.  (iv) Any Additional Notes sold in a registered offering shall not be required to bear the Restricted Notes Legend.  (f) Cancellation or Adjustment of Global Note. At such time as all beneficial interests in a Global Note have either been exchanged for Definitive Notes, transferred in exchange for an interest in  another Global Note, or redeemed, repurchased or canceled, such Global Note shall be returned by the  Depositary to the Trustee for cancellation or retained and canceled by the Trustee. At any time prior to  such cancellation, if any beneficial interest in a Global Note is exchanged for Definitive Notes,  transferred in exchange for an interest in another Global Note, or redeemed, repurchased or canceled, the  principal amount of Notes represented by such Global Note shall be reduced and an adjustment shall be  made on the books and records of the Registrar (if it is then the Custodian for such Global Note) with  respect to such Global Note, by the Registrar or the Custodian, to reflect such reduction.  (g) Obligations with Respect to Transfers and Exchanges of Notes. (i) To permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate, Definitive Notes and Global Notes at the Registrar’s request.  (ii) No service charge shall be made for any registration of transfer or exchange (other than pursuant to Section 2.07 of this Indenture), but the Company may require payment of a sum  sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other  than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant  to Sections 2.10, 3.06, 3.09, 4.15, 4.16 and 9.05 of this Indenture).  (iii) Prior to the due presentation for registration of transfer of any Note, the Company, the Trustee, the Paying Agent or the Registrar may deem and treat the person in whose name a Note is  registered as the absolute owner of such Note for the purpose of receiving payment of principal, premium,  if any, and interest on such Note and for all other purposes whatsoever, whether or not such Note is  overdue, and none of the Company, the Trustee, the Paying Agent or the Registrar shall be affected by  notice to the contrary.  

 

9  (iv) All Notes issued upon any transfer or exchange pursuant to the terms of this Indenture shall evidence the same debt and shall be entitled to the same benefits under this Indenture as  the Notes surrendered upon such transfer or exchange.  (v) In order to effect any transfer or exchange of an interest in any Transfer Restricted Note for an interest in a Note that does not bear the Restricted Notes Legend and has not been registered  under the Securities Act, if the Registrar so requests or if the Applicable Procedures so require, an  Opinion of Counsel, in form reasonably acceptable to the Registrar to the effect that no registration under  the Securities Act is required in respect of such exchange or transfer or the re-sale of such interest by the  beneficial holder thereof, shall be required to be delivered to the Registrar and the Trustee.  (h) No Obligation of the Trustee. (i) The Trustee shall have no responsibility or obligation to any beneficial owner of a Global Note, a member of, or a participant in the Depositary or any other Person with respect to the  accuracy of the records of the Depositary or its nominee or of any participant or member thereof, with  respect to any ownership interest in the Notes or with respect to the delivery to any participant, member,  beneficial owner or other Person (other than the Depositary) of any notice (including any notice of  redemption or repurchase) , obtaining any consent or other action to be taken by Noteholders, the  selection by the Depositary or any Depositary participant of any Person to receive payment in the  event of partial redemption of the Notes, any consent given or other action taken by the Depositary  as Noteholder or the payment of any amount, under or with respect to such Notes. All notices and  communications to be given to the Holders and all payments to be made to Holders under the Notes shall  be given or made only to the registered Holders (which shall be the Depositary or its nominee in the case  of a Global Note). The rights of beneficial owners in any Global Note shall be exercised only through the  Depositary subject to the applicable rules and procedures of the Depositary. The Trustee may rely and  shall be fully protected in relying upon information furnished by the Depositary with respect to its  members, participants and any beneficial owners.  (ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with  respect to any transfer of any interest in any Note (including any transfers between or among Depositary  participants, members or beneficial owners in any Global Note) other than to require delivery of such  certificates and other documentation or evidence as are expressly required by, and to do so if and when  expressly required by, the terms of this Indenture, and to examine the same to determine substantial  compliance as to form with the express requirements hereof.  Section 2.3 Definitive Notes.  (a) A Global Note deposited with the Depositary or with the Trustee as Custodian pursuant to Section 2.1 of this Appendix A may be transferred to the beneficial owners thereof in the form  of Definitive Notes in an aggregate principal amount equal to the principal amount of such Global Note,  in exchange for such Global Note, only if such transfer complies with Section 2.2 of this Appendix A and  (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Note or if at any time the Depositary ceases to be a “clearing agency” registered under the Exchange Act and, in each case, a successor depositary is not appointed by the Company within 90 days of such notice or after the Company becomes aware of such cessation, (ii) an Event of Default has occurred and is continuing and the Registrar has received a request from the Depository or (iii) the Company, in its sole discretion and subject to the procedures of the Depository, notifies the Trustee in writing that it elects to cause the issuance of Definitive Notes under this Indenture.  In addition, any Affiliate of the Company or any Guarantor that is a beneficial owner of all or part of a Global Note may 

 

10  have such Affiliate’s beneficial interest transferred to such Affiliate in the form of a Definitive Note by  providing a written request to the Company and the Trustee and such Opinions of Counsel, certificates or  other information as may be required by this Indenture or the Company or Trustee.  (b) Any Global Note that is transferable to the beneficial owners thereof pursuant to this Section 2.3 shall be surrendered by the Depositary to the Trustee, 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 Note, an equal aggregate principal amount of Definitive Notes of authorized  denominations. Any portion of a Global Note transferred pursuant to this Section 2.3 shall be executed,  authenticated and delivered only in denominations of $2,000 and integral multiples of $1,000 in excess  thereof and registered in such names as the Depositary shall direct. Any Definitive Note delivered in  exchange for an interest in a Global Note that is a Transfer Restricted Note shall, except as otherwise  provided by Section 2.2(e) of this Appendix A, bear the Restricted Notes Legend.  (c) The registered Holder of a Global Note may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to  take any action which a Holder is entitled to take under this Indenture or the Notes.  (d) In the event of the occurrence of any of the events specified in Section 2.3(a) of this Appendix A, the Company shall promptly make available to the Trustee a reasonable supply of Definitive  Notes in fully registered form without interest coupons.  

 

A-1 EXHIBIT A  [FORM OF FACE OF NOTE]  [Insert the Restricted Notes Legend, if applicable, pursuant to the provisions of the Indenture]  [Insert the Global Notes Legend, if applicable, pursuant to the provisions of the Indenture]  [Insert the Definitive Notes Legend, if applicable, pursuant to the provisions of the Indenture]  [Insert the ERISA Legend, if applicable, pursuant to the provisions of the Indenture.]  

 

A-2 [If Regulation 144A Global Note – CUSIP: 50050NAA1; ISIN: US50050NAA19]  [If Regulation S Global Note – CUSIP:  U5250NAA0; ISIN: USU5250NAA01]  GLOBAL NOTE  4.125% Senior Notes due 2029  No. [RA-1] [RA-2] [RS-1] [Up to] $[________]  KONTOOR BRANDS, INC.  promises to pay to CEDE & CO. or registered assigns the principal sum [set forth on the Schedule of  Exchanges of Interests in the Global Note attached hereto] [of $_______ (_______ Dollars)] on  November 15, 2029.  Interest Payment Dates: May 15 and November 15  Record Dates: May 1 and November 1  

 

A-3 IN WITNESS HEREOF, the Company has caused this instrument to be duly executed.  Dated:  KONTOOR BRANDS, INC.  By:  Name:  Title:  

 

A-4 CERTIFICATE OF AUTHENTICATION  This is one of the Notes referred to in the within-mentioned Indenture:  U.S. BANK NATIONAL ASSOCIATION, as Trustee  By:  Authorized Signatory  Dated:  

 

[Reverse Side of Note]  4.125% Senior Notes due 2029  Capitalized terms used herein shall have the meanings assigned to them in the Indenture  referred to below unless otherwise indicated.  1. INTEREST. Kontoor Brands, Inc., a North Carolina corporation (the “Company”), promises to pay interest on the principal amount of this Note at 4.125% per annum until but  excluding maturity. The Company shall pay interest semi-annually in arrears on May 15 and November  15 of each year (each, an “Interest Payment Date”), or if any such day is not a Business Day, on the next  succeeding Business Day. Interest on the Notes shall accrue from the most recent date to which interest  has been paid or, if no interest has been paid, from and including the date of original issuance; provided  that the first Interest Payment Date shall be [  ]. The Company shall pay interest (including  post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if  any, from time to time on demand at the interest rate on the Notes to the extent lawful; it shall pay interest  (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of  interest (without regard to any applicable grace periods) from time to time on demand at the interest rate  on the Notes to the extent lawful. Interest shall be computed on the basis of a 360-day year comprised of  twelve 30-day months.  2. METHOD OF PAYMENT. The Company shall pay interest on the Notes to the  Persons who are registered holders of Notes at the close of business on the May 1 or November 1  (whether or not a Business Day), as the case may be, immediately preceding the related Interest Payment  Date, even if such Notes are canceled after such Record Date and on or before such Interest Payment  Date, except as provided in Section 2.12 of the Indenture with respect to defaulted interest. Principal,  premium, if any, and interest on the Notes shall be payable at the office or agency of the Company  maintained for such purpose or, at the option of the Company, payment of interest and premium, if any,  may be made by check mailed to the Holders at their respective addresses set forth in the Note Register.  Such payment shall be in such coin or currency of the United States of America as at the time of payment  is legal tender for payment of public and private debts.  3. PAYING AGENT AND REGISTRAR. Initially, U.S. Bank National  Association, the Trustee under the Indenture, shall act as Paying Agent and Registrar. The Company may  change any Paying Agent or Registrar without notice to the Holders. The Company or any of its  Restricted Subsidiaries may act in any such capacity.  4. INDENTURE. The Company issued the Notes under an Indenture, dated as of  November 18, 2021 (the “Indenture”), among the Company, the Guarantors named therein and the  Trustee. This Note is one of a duly authorized issue of Notes of the Company designated as its 4.125%  Senior Notes due 2029. The Company shall be entitled to issue Additional Notes pursuant to  Sections 2.01 and 4.09 of the Indenture. The Notes and any Additional Notes issued under the Indenture  shall be treated as a single class of securities under the Indenture. The terms of the Notes include those  stated in the Indenture. The Notes are subject to all such terms, and Holders are referred to the Indenture  for a statement of such terms. Any term used in this Note that is defined in the Indenture shall have the  meaning assigned to it in the Indenture. To the extent any provision of this Note conflicts with the express  provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.  5. REDEMPTION AND REPURCHASE. The Notes are subject to optional redemption, and may be the subject of an Offer to Purchase, as further described in the Indenture. The  A-5   

 

Company shall not be required to make mandatory redemption or sinking fund payments with respect to  the Notes.  6. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The  transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The  Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements  and transfer documents, and Holders shall be required to pay any taxes and fees required by law or  permitted by the Indenture. The Company need not exchange or register the transfer of any Note or  portion of a Note selected for redemption or tendered for repurchase in connection with a Change of  Control Offer or Asset Disposition Offer, except for the unredeemed portion of any Note being redeemed  or repurchased in part.  7. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for all purposes.  8. AMENDMENT, SUPPLEMENT AND WAIVER. The Indenture, the Note Guarantees or the Notes may be amended or supplemented as provided in the Indenture.  9. DEFAULTS AND REMEDIES. The Events of Default relating to the Notes are defined in Section 6.01 of the Indenture. Upon the occurrence of an Event of Default, the rights and  obligations of the Company, the Guarantors, the Trustee and the Holders shall be as set forth in the  applicable provisions of the Indenture.  10 AUTHENTICATION. This Note shall not be entitled to any benefit under the  Indenture or be valid or obligatory for any purpose until authenticated by the manual, facsimile or  electronic signature of the Trustee.  11. GOVERNING LAW. THIS NOTE WILL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  12. CUSIP AND ISIN NUMBERS. Pursuant to a recommendation promulgated by  the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN  numbers to be printed on the Notes, and the Trustee may use CUSIP and ISIN numbers in notices of  redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers  either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only  on the other identification numbers placed thereon.  The Company shall furnish to any Holder upon written request and without charge a copy  of the Indenture. Requests may be made to the Company at the following address:  c/o Kontoor Brands, Inc.  400 N. Elm Street  Greensboro, North Carolina 27401  Email: dave.kovach@kontoorbrands.com  Attention: David Kovach A-6   

 

A-7 ASSIGNMENT FORM  To assign this Note, fill in the form below:  (I) or (we) assign and transfer this Note to: (Insert assignee’s legal name)  (Insert assignee’s soc. sec. or tax I.D. no.)  (Print or type assignee’s name, address and zip code)  and irrevocably appoint   to transfer this Note on the books of the Company. The agent may substitute another to act for him.  Date: _____________________  Your Signature:  _______________________________  (Sign exactly as your name appears on  the face of this Note)  Signature Guarantee*: __________________________________  * Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

A-8 CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR  REGISTRATION OF TRANSFERS OF TRANSFER RESTRICTED NOTES  This certificate relates to $_________ principal amount of Notes held in (check applicable space) ____  book-entry or _____ definitive form by the undersigned.  The undersigned (check one box below):   has requested the Trustee by written order to deliver in exchange for its beneficial interest in a  Global Note held by the Depositary a Note or Notes in either definitive or global registered form  of authorized denominations and an aggregate principal amount equal to its beneficial interest in  such Global Note (or the portion thereof indicated above) in accordance with the Indenture; or   has requested the Trustee by written order to exchange or register the transfer of a Note or Notes.  In connection with any transfer of any of the Notes evidenced by this certificate, the undersigned  confirms that such Notes are being transferred in accordance with its terms:  CHECK ONE BOX BELOW  (1)  to the Company or subsidiary thereof; or  (2)  to the Registrar for registration in the name of the Holder, without transfer; or  (3)  pursuant to an effective registration statement under the Securities Act of 1933,  as amended (the “Securities Act”); or  (4)  to a Person that the undersigned reasonably believes is a “qualified institutional  buyer” (as defined in Rule 144A under the Securities Act (“Rule 144A”)) that  purchases for its own account or for the account of a qualified institutional buyer  and 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; or  (5)  pursuant to offers and sales to non-U.S. persons that occur outside the United  States of America within the meaning of Regulation S under the Securities Act  (and if the transfer is being made prior to the expiration of the Distribution  Compliance Period, the Notes shall be held immediately thereafter through  Euroclear or Clearstream); or  (6)  to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or  (7) under the Securities Act) that has furnished to the Trustee a signed letter containing certain representations and agreements; or (7)  pursuant to Rule 144 under the Securities Act; or  (8)  pursuant to another available exemption from registration under the Securities  Act.  Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced  by this certificate in the name of any Person other than the registered Holder thereof; provided,  

 

A-9 however, that if box (5), (6), (7) or (8) is checked, the Company or the Trustee may require, prior  to registering any such transfer of the Notes, such legal opinions, certifications and other  information as the Company or the Trustee 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.  Your Signature  Date:  Signature of Signature  Guarantor  TO BE COMPLETED BY PURCHASER IF (4) ABOVE IS CHECKED.  The undersigned represents and warrants that it is purchasing this Note for its own  account or an account with respect to which it exercises sole investment discretion and that it and any  such account is a “qualified institutional buyer” within the meaning of Rule 144A, and is aware that the  sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information  regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to  request such information and that it is aware that the transferor is relying upon 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  Name:  Title:  Signature Guarantee*: __________________________________  * Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

A-10 TO BE COMPLETED IF THE HOLDER REQUIRES AN EXCHANGE FROM A  REGULATION S GLOBAL NOTE TO AN UNRESTRICTED GLOBAL NOTE,   PURSUANT TO SECTION 2.2(d)(iii) OF APPENDIX A TO THE INDENTURE1  The undersigned represents and warrants that either:   the undersigned is not a dealer (as defined in the Securities Act) and is a non-U.S. person (within  the meaning of Regulation S under the Securities Act); or   the undersigned is not a dealer (as defined in the Securities Act) and is a U.S. person (within the  meaning of Regulation S under the Securities Act) who purchased interests in the Notes pursuant  to an exemption from, or in a transaction not subject to, the registration requirements under the  Securities Act; or    the undersigned is a dealer (as defined in the Securities Act) and the interest of the undersigned in  this Note does not constitute the whole or a part of an unsold allotment to or subscription by such  dealer for the Notes.  Dated:  Your Signature  1  Include only for Regulation S Global Notes.  

 

A-11 OPTION OF HOLDER TO ELECT PURCHASE  If you want to elect to have this Note purchased by the Company pursuant to Section 4.15  or Section 4.16 of the Indenture, check the appropriate box below:  [ ] Section 4.15 [ ] Section 4.16  If you want to elect to have only part of this Note purchased by the Company pursuant to  Section 4.15 or Section 4.16 of the Indenture, state the amount you elect to have purchased:  $_______________ (integral multiples of $1,000,  provided that the unpurchased  portion must be in a minimum  principal amount of $2,000)  Date: _____________________  Your Signature:  _______________________________  (Sign exactly as your name appears on  the face of this Note)  Tax Identification No.:   Signature Guarantee*: __________________________________  * Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

A-12 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*  The initial outstanding principal amount of this Global Note is $__________. The  following exchanges of a part of this Global Note for an interest in another Global Note or for a  Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this  Global Note, have been made:  Date of Exchange  Amount of decrease  in Principal Amount of  this Global Note  Amount of  increase  in Principal  Amount of  this  Global Note  Principal  Amount of  this Global  Note  following  such  decrease or  increase  Signature of  authorized signatory  of Trustee,  Depositary or  Custodian  __________________  *This schedule should be included only if the Note is issued in global form. 

 

EXHIBIT B  FORM OF  TRANSFEREE LETTER OF REPRESENTATION  Kontoor Brands, Inc.  400 N. Elm Street  Greensboro, North Carolina 27401  Email: dave.kovach@kontoorbrands.com  Attention: David Kovach  U.S. Bank National Association  214 North Tryon Street, 27th Floor  Charlotte, North Carolina 28202  Attention: Global Corporate Trust – Kontoor Brands, Inc.  Ladies and Gentlemen:  This certificate is delivered to request a transfer of $[_______] principal amount of the 4.125%  Senior Notes due 2029 (the “Notes”) of Kontoor Brands, Inc. (the “Company”).  Upon transfer, the Notes 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 Notes, and  we are acquiring the Notes, 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. 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 Notes, and we invest in or purchase securities similar to the Notes 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 Notes 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 Notes to offer, sell or otherwise  transfer such Notes prior to the date that is six months after the later of the date of original issue and the  last date on which the Company or any affiliate of the Company was the owner of such Notes (or any  predecessor thereto) (the “Resale Restriction Termination Date”) only in accordance with the Restricted  Notes Legend (as such term is defined in the indenture under which the Notes were issued) on the Notes  and any applicable securities laws of any state of the United States of America. The foregoing restrictions  on resale will not apply subsequent to the Resale Restriction Termination Date. If any resale or other  B-1   

 

B-2 transfer of the Notes is proposed to be made to another such institutional “accredited investor” 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 Notes 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 Notes with respect to applicable transfers described in the Restricted Notes  Legend to require the delivery of an opinion of counsel, certifications and/or other information  satisfactory to the Company and the Trustee.  TRANSFEREE: ,  by:  

 

EXHIBIT C  C-1 FORM OF SUPPLEMENTAL INDENTURE  TO BE DELIVERED BY SUBSEQUENT GUARANTORS  Supplemental Indenture (this “Supplemental Indenture”), dated as of [__________] [__],  20[__], among __________________ (the “Guaranteeing Subsidiary”), a subsidiary of Kontoor Brands,  Inc., Inc., a North Carolina corporation (the “Company”), the Company and U.S. Bank National  Association, as trustee (the “Trustee”).  W I T N E S E T H  WHEREAS, each of the Company and the Guarantors (as defined in this Indenture  referred to below) has heretofore executed and delivered to the Trustee an indenture (the “Indenture”),  dated as of November 18, 2021, providing for the issuance of an unlimited aggregate principal amount of  4.125% Senior Notes due 2029 (the “Notes”);  WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing  Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which the  Guaranteeing Subsidiary shall unconditionally Guarantee all of the Company’s Obligations under the  Notes and the Indenture on the terms and conditions set forth herein and under the Indenture; and  WHEREAS, the Company has provided to the Trustee such documents as are required to  be provided to it under Article 9 of the Indenture, and pursuant to Section 9.01 of the Indenture, the  Trustee and the Guaranteeing Subsidiary are authorized to execute and deliver this Supplemental  Indenture.  NOW THEREFORE, in consideration of the foregoing and for other good and valuable  consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for  the equal and ratable benefit of the Holders as follows:  1. Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.  2. Guarantor. The Guaranteeing Subsidiary hereby agrees to be a Guarantor under this Indenture and to be bound by the terms of the Indenture applicable to Guarantors, including  Article 10 thereof.  3. Governing Law. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF  NEW YORK.  4. Waiver of Jury Trial. EACH OF THE GUARANTEEING SUBSIDIARY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY  APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING  ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE INDENTURE,  THE NOTES, THE NOTE GUARANTEES OR THE TRANSACTIONS CONTEMPLATED HEREBY  OR THEREBY.  5. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.   The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or portable  document format (“PDF”) transmission shall constitute effective execution and delivery of this  Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental  

 

C-2 Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be  deemed to be their original signatures for all purposes and shall be of the same legal effect, validity or  enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based  recordkeeping system, as the case may be, and the parties hereto consent to conduct the transactions  contemplated hereunder by such means.  6. Headings. The headings of the Sections of this Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part of this Supplemental Indenture  and shall in no way modify or restrict any of the terms or provisions hereof.  7. The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture, the Note Guarantee of the  Guaranteeing Subsidiary or for or in respect of the recitals contained herein, all of which recitals are made  solely by the Company and the Guaranteeing Subsidiary.   

 

C-3 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to  be duly executed, all as of the date first above written.  KONTOOR BRANDS, INC.  By:  Name:  Title:  [NAME OF GUARANTEEING SUBSIDIARY]  By:  Name:  Title:  U.S. BANK NATIONAL ASSOCIATION, as Trustee  By:  Name:  Title:

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