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Exhibit 10.33

                             DISTRIBUTION AGREEMENT

This Agreement is made on the 12th day of November 2007 by and between  Paradigm
Medical Industries, Inc., 2355 South 1070 West, Salt Lake City, Utah 84119, USA,
+801-977-8970  (hereinafter referred to as Paradigm),  and LACE Elettronica srl,
Via Zoe  Fontana,  220 B1, Rome  00131,  Italy,  +39-064-129-4591  (hereinafter,
together with its subsidiaries and representative offices referred to as LACE).

The effective date of this  Agreement  shall be 1 January 2008, or the date when
the product is fully completed, with all accessories and consumables, to be sold
into the North American  markets,  whichever comes first. The effective date for
Canada  shall be effective  once CSA  regulatory  approval is obtained  from the
Canadian governmental regulatory body.

Paradigm  and LACE wish to enter into a  Distribution  trade  agreement  for the
purpose of supplying  product(s)  modified or  unmodified,  in  accordance  with
Appendix 1, to Paradigm  for the purpose of resale  under tl the  Paradignibrand
and through the Paradigm  distribution  channels in the USA and any other agreed
countries.  The LACE Glaid brand,  in addition to the  Paradigm  brand name will
appear on the product.  Product  branding and brand  positioning will need to be
determined prior to product being brought into field.

     1 Definitions

         1.1   LACE  products  shall mean the products as defined in Appendix 1,
               which will be supplied by LACE to Paradigm and by Paradigm to its
               customers/distributors  in the agreed countries under thec0-brand
               of LACE Glaid brand and labeled as a Paradigm  with an equal size
               font in the following format: PARADIGM - GLAID by LACE.

         1.2   Other products and territories can be included and/or added under
               the terms of this  agreement  by means of  appending to the items
               listed in Appendix 1.

     2 Liaison

         2.1   Paradigm and LACE will each appoint a primary  representative who
               shall be responsible  for  co-coordinating  the activities of the
               parties.

         2.2   The initial primary representatives shall be:

              LACE - Mr. Gualtiero Regini Paradigm - Mr. Raymond Cannefax

     3  Responsibilities of the parties

         3.1   In the  interests of promoting  LACE products as part of Paradigm
               product range,  the parties agree to: a. Participate in regularly
               scheduled  periodic  meetings  to  monitor  the  results  of this
               agreement;   b.  To  jointly   develop  and  collaborate  in  the
               improvement and enhancement of the current product; c. To develop
               enhanced  versions  of the  current  product,  or to develop  new
               products.

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         3.2   This  agreement  may not be modified  except by agreement of both
               parties in a written document signed by both parties and appended
               to this agreement and shall not be unreasonably denied.

         3.3   FDA 510(k)  approval has been filed and  obtained by LACE.  If so
               determined  as necessary  and  beneficial,  LACE will arrange for
               Paradigm to also be named on FDA documents.

         3.4   Copies of all FDA and CE  regulatory  documents  will be provided
               the  Paradigm.  Regulatory  document  updates will be provided to
               Paradigm as soon as such are available and presented to LACE.

         3.5   LACE will maintain patent integrity on the product(s)  throughout
               the life of this agreement.

         3.6   Paradigm  agrees to maintain  individual  product  repair/history
               files and notify LACE per FDA  requirement  of any adverse events
               and report  such to the  appropriate  regulatory  body within the
               required time frames.

     4 Maintenance and installation

         4.1   Warranty:  LACE will provide twelve (12) months warranty from the
               date of  delivery  to end  user  (purchaser)  for  all  the  LACE
               products  supplied to Paradigm.  If faults cannot be corrected at
               Paradigm's  facilities or at the  facilities of trained  Paradigm
               repair  centers,  the  product  then must be returned to LACE for
               repair with  freight  costs  being the burden of LACE.  LACE will
               carry  out such  repairs  as  required  and  return  the goods to
               Paradigm or to their designated  agent or distributor  within ten
               (10) working days from the date of  receiving  such goods,  at no
               cost to Paradigm and will pay return freight costs.

         4.2   LACE will provide technical and product  maintenance  training to
               Paradigm in order for  Paradigm to be able to repair  products at
               Paradigm's  U.S.A.  facility  down  to the  individual  component
               level.

         4.3   LACE will  provide an extended  cost of warranty  for a second or
               subsequent years to Paradigm at the initiation of this agreement.

     5 Performance

         5.1   The  performance  specification  for the products as described in
               Product  Manuals and  promotional  printed  material shall be the
               only performance  guarantee  offered by Paradigm and shall be the
               same performance specifications provided by LACE.

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         5.2   If  the  performance   specifications  change,  it  will  be  the
               responsibility  of LACE  to  notify  Paradigm  of the  change  to
               specification   to  any  product,   providing   specific  details
               regarding  the change and the impact this change will have on the
               product as well as the impact  this change will have on the users
               of the products and their  patients  and in  compliance  with FDA
               regulations  and insure the  product is approved by the FDA prior
               to releasing the product for sale.

         5.3   Paradigm,   having   global   distribution,    shall   be   given
               consideration   for  product   placement  into  countries   where
               Paradigm's current  distribution  channels express an interest in
               the product.  Paradigm  shall have the first right of refusal for
               distribution  to any other  country  where Lace is not  currently
               selling or marketing  the LACE Glaid  product.  Distribution  for
               additional  (new)  territories  will be subject to reasonable new
               minimum quotas.  Paradigm,  when granted  extended  distribution,
               shall be  allowed  exclusive  product  distribution  to  Paradigm
               ophthalmic  and  optometric  product  distributors  in  order  to
               provide for product  consistency  of  Paradigm  products  sold by
               these distributors.  The Authorized  Territories are indicated on
               Appendix I.

         5.4   LACE will provide necessary product to the regulatory agencies of
               countries  that require  product  testing by their own regulatory
               bodies,  at no cost to Paradigm.  Such  countries  include China,
               North  Korea,  Japan and others  that are not  specified  in this
               agreement.

6 Scope of Supply, Delivery, Pricing and Packaging

         6.1   The standard  conditions of purchase of LACE products shall apply
               to all sales of all LACE products to Paradigm.

         6.2   LACE will  make  every  effort to  deliver  products  within  the
               delivery times stated in Appendix 3 of this agreement.  LACE will
               make  Paradigm  aware of any problem that may cause late delivery
               of the  products  as soon as  possible  and as far in  advance as
               possible.  Paradigm  will  make  LACE  aware  in  advance  of any
               significant  expected  increase  or  decrease  in  product  order
               demand.  Paradigm  will  notify  LACE as far as  possible  of any
               fluctuation of the estimated  product  delivery  requirement  and
               LACE  will  use all  reasonable  endeavors  to  accommodate  such
               requirements.  Paradigm will provide to LACE on a monthly basis a
               30-day rolling forecast.

         6.3   Paradigm  agrees to purchase the products  from LACE at the price
               as specified in Appendix 2.

         6.4   LACE will  acknowledge  all purchase orders from Paradigi i three
               (3) working days from receipt of the order.

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         6.5   LACE will be entitled  to invoice on  shipping  of the  products,
               which will be paid by Paradigm prior to shipping. Payment to LACE
               by Paradigm shall be as follows: An initial payment of fifty (50)
               percent will be paid to LACE at time of delivery of product (COD)
               with the fifty (50) percent  balance due to LACE thirty (30) days
               when  product  is  received  at  Paradigm  or at  the  designated
               shipping location with proper acceptance of receipt.

         6.6   Prices set out in Appendix 2 will be valid for twelve months from
               the  effective  date.  LACE will  notify  Paradigm  six months in
               advance of any price increase and will supply a new price-list at
               this time.  The  product  prices set out in  Appendix 2 are in US
               Dollars and are based on an established  global banking  exchange
               in effect on January I, 2008.  Pricing  adjustments that may need
               to be made  in case of a  change  in  competitive  elements  or a
               change in COG are defined in Appendix 2.

         6.7   Installation  of the product(s)  will be arranged by Paradigm its
               nominated subsidiary, distributor, representative or agent, at no
               cost to LACE. LACE may be contacted  during product  installation
               to  answer  any  questions  that  are  unique  and  have not been
               previously addressed. A specific contact for this purpose will be
               provided by LACE.

         6.8   LACE will  provide the product to Paradigm as defined in Appendix
               1, fully tested and fit for purpose and immediate use, wrapped in
               a sealed plastic bag,  supported  inside a sealed  cardboard box,
               with the English operator's manual approved by Paradigm, suitable
               for airfreight and include all parts,  components and accessories
               that comprise each product.

         6.9   LACE  will  ship  product  directly  to  Paradigm   international
               customers  when  requested in order to improve  delivery time and
               aid cost control as well as deal with regulatory issues. Paradigm
               may provide  LACE with  special  shipping  material to be used in
               such shipments such as Paradigm branded packing tape and possibly
               Paradigm  branded  boxing.  If agreed to,  Paradigm  will provide
               Paradigm brand  specific  labeling to be applied to LACE products
               shipped directly to Paradigm customers or distributors.  Paradigm
               will provide instruction  regarding the placement of the Paradigm
               specific product labels.

         6.10  LACE and Paradigm will absorb the cost of  demonstration  devices
               that both parties agree are  necessary  for the proper  marketing
               and sales  efforts of the LACE Glaid  device.  LACE will  provide
               special discounts for demonstration  units at fifty (50%) percent
               of regular price,  $6,000,  with special net-90 payment terms. It
               is agreed  that demo units are not to be sold for a period of one
               year after receipt of the demo unit unless  otherwise  negotiated
               and a written modification to this Agreement is provided.

         6.11  Consumables - to be defined  further as development is completed.
               The consumables are anticipated to consist of electrodes,  and/or
               electrodes  with wiring harness,  and/or a wiring  harness.  Also
               included in this consumable  will be skin cleansing  cream/lotion
               and other necessary  components for the LACE Glaid  instrument to
               be used on  patients.  Consumables  are  designed to be a package
               that is used by the  individual  conducting the PERG exam on each
               individual patient given the exam.

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         6.12  Consumables  - Product sales for quota  requirements  of the LACE
               Glaid  shall  commence  as  soon  as the  consumable  package  is
               completed and ready for delivery. Until the consumable package is
               complete,  Paradigm  will  make a best  effort  to  place as many
               devices  as  possible,  providing  the  purchaser  of  the  Glaid
               assurance that the consumable packages will be available within a
               reasonable time frame of four months or less.

      7 Training

         7.1   LACE  shall  endeavor  to  answer as soon as is  practicable  any
               technical  enquiries  concerning  the  products.  LACE will train
               Paradigm  Technical  Services  engineers and Paradigm  designated
               International Distributors, if so determined, within an agreed to
               time  frame of this  agreement  and as the need  arises  LACE may
               determine and request  needs for future  training on new products
               when such is  necessary.  Training  is at no charge to  Paradigm.
               This  training   will  also  be  made   available  to  Paradigm's
               designated repair agencies in order to provide service and repair
               on a global basis.  These agencies will be considered  authorized
               repair   facilities   for  LACE  products   marketed   under  the
               Paradigm/Dicon  brand name and/or sold by Paradigm under the LACE
               brand name.

         7.2   Paradigm  shall provide sales  training on an annual basis on its
               products.  Such sales  training  may be  conducted at the LACE or
               Paradigm  facilities  or in  conjunction  with  a  trade-show  or
               Ophthalmic  Congress  where  LACE  will  have a  presence.  Sales
               training conducted by LACE will be at no charge to Paradigm. When
               training  is  conducted  in  conjunction  with  a  trade-show  or
               ophthalmic  congress  and both parties are  participating  in the
               congress,  the expenses of traveling,  living and hotel  expenses
               shall be the responsibility of the individual respective parties.

    8  Testing and Quality

         8.1   LACE will  allow  Paradigm  access to observe  the  manufacturing
               process of the  products  relevant to this  agreement.  LACE will
               endeavor to implement measures,  procedures and tests to meet the
               quality  standards  required  by  Paradigm.,  TUV (CE) and/or FDA
               within one month of receiving written notification.

         8.2   LACE will provide Paradigm with copies of all TUV Regulatory (CE)
               Certificates.  In addition,  LACE will provide  copies of all FDA
               510(k) Registration  certificates when they are obtained from the
               U.S. Food and Drug Administration.

         8.3   LACE  may  engage  Paradigm  to  assist  in the FDA  registration
               process of its  products in the United  States of  America.  When
               such FDA 510(k) Registration is performed by Paradigm, all of the

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               related testing results required for TUV CE certification will be
               made  available  to Paradigm  and LACE.  Other  required  testing
               results  performed  by Paradigm  will be made  available to LACE.
               Cost of FDA 510(k)  registration  for LACE products shall be paid
               by LACE to  Paradigm  on a per  product  basis  and as  necessary
               testing and document fees are due.

         8.4   Both parties agree to  immediately  inform the other in the event
               that  their  ISO9001 &  ISO13485  &  MDD93/42/EEC  'Certification
               accreditation  status  changes and both parties will provide each
               other   copies  of  the  ISO9001  &  ISO  13485  &   MDD93/42/EEC
               certificates.

         8.5   Paradigm  shall be authorized to visit the LACE facility at least
               two  times  each  year.  LACE  shall be  authorized  to visit the
               Paradigm facility at least two times each year.  Adequate advance
               notice  from  either  party  shall be given to  assure  all vital
               parties to these meetings will be present.

9 Terms of Termination

         9.1   This  agreement  will last for five (5) years from the  effective
               date.  At the end of the five (5)  years  representatives  of the
               parties will discuss the matter of  continuation of the agreement
               and if mutual  agreement for  continuation  is not reached within
               one  hundred  twenty  (120) days  after the  passage of the above
               referenced   five  (5)  years,   then  the  agreement  is  deemed
               terminated. If within the aforesaid one hundred twenty (120) days
               the  parties  mutually  agree to  continue  the  agreement,  then
               thereafter  either party may  terminate  the  agreement by giving
               twelve months notice in writing.  All  outstanding  orders at the
               time of  notification  will be  supplied  under the terms of this
               agreement  and LACE will  continue  to fulfill  all  orders  from
               Paradigm  until the  aforesaid  twelve  month  notice  period has
               expired.  Notwithstanding  anything which may be to the contrary,
               the  provisions of this clause 9.1 are subject to the  provisions
               of clause 9.2.

         9.2   Either  party  shall be  entitled  forthwith  to  terminate  this
               agreement by written notice to the other if:

              9.2.1  The other party commits any breach of any of the provisions
                     of this  agreement  and in the case of a breach  capable of
                     remedy  fails to remedy the same  within  thirty  (30) days
                     after receipt of a written  notice giving full  particulars
                     of the breach and requiring it to be remedied.

              9.2.2  Any action that is taken that is  equivalent  in the United
                     States of a receiver being appointed for the other party or
                     an assignment  made for the benefit of  creditors,  or if a
                     petition  under the  equivalent  of Federal  bankruptcy  or
                     reorganization  action in the United  States shall be filed
                     by or against the other party and is not  dismissed  within
                     sixty (60) days of such filing or appointment.

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              9.2.2  An encumbrance takes possessions or a receiver is appointed
                     over any of the  property  or assets of that  other  party;
                     that other  party  goes into  liquidation  (except  for the
                     purposes  of  amalgamation  or  reconstruction  and in such
                     manner that the  company  resulting  therefore  effectively
                     agrees to be bound by or assume the obligations  imposed on
                     that other party under this agreement): or that other party
                     ceases or threatens to cease to carry on business.

         9.3   Upon  termination  of this  agreement,  each party shall promptly
               return to the other all materials and other items furnished to it
               by the other party before and during this  agreement  unless such
               materials and items were purchased and paid in full.

         9.4   Both parties agree to a 12-month non-compete clause that Paradigm
               will  abide.  Paradigm  agrees  not  to  sell  any  other  visual
               electrophysiology  system  in  competition  with the  LACE  Glaid
               device   during  the   contract   duration.   LACE  will  provide
               proprietary  technical  documents and  technical  know how to the
               Paradigm  in the  course  of  the  collaboration.  This  training
               activity is provided by LACE free of charge in the perspective of
               long-term business  development.  Therefore Paradigm shall not be
               involved   either   directly  or   indirectly   in   development,
               production, sale or advertisement of any ocular electrophysiology
               product in competition  with Lace  Elettronica  for the 12 months
               following the termination of the present distribution agreement.

    10 Warranty of Title

         10.1  Both  parties  warrant  that it has the right to enter  into this
               agreement  and has  sufficient  right,  title and interest in its
               products  and  related  documentation  to make the grants and the
               commitments  made herein,  and shall not make any  commitments to
               the other inconsistent herewith.

    11 Relationships of the parties

         11.1  Both  parties are  independent  contractors  acting for their own
               accounts  and  are  not  authorized  to make  any  commitment  or
               representation on the other's behalf unless authorized in writing
               by the named representative.

         11.2  LACE is responsible for supplying  products to Paradigm are fully
               compliant  with  all  the  European  legislation  and  directives
               required for CE labeling and with FDA Regulations.

         11.3  LACE agrees to provide  Paradigm  with  copies of all  regulatory
               documents  related to Glaid  including  the FDA 510(k) and the CE
               regulatory certificates.

         11.4  LACE with the aid of Paradigm  will  Copyright or  Trademark  the
               output  of the  Glaid  device  in  order  to  provide  additional
               protection  against  unauthorized  competitive  product  entries.
               Copyright and/or Trademark will be under LACE.

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         11.5  LACE is responsible for the performance and safe operation of its
               products supplied to Paradigm,  Paradigm's customers,  Paradigm's
               distributors and Paradigm's representatives.

         11.6  During the course of this agreement,  should the terms "partner",
               "marketing  partner" or  "partnership"  be used to  describe  the
               cooperative trading  relationship,  both parties shall make clear
               to third  parties  that these  terms  refer only to the spirit of
               cooperation  which  exists  between  LACE and Paradigm and do not
               expressly or otherwise  imply  partnership  in the legal sense of
               this term.

         11.7  LACE and Paradigm shall  collaborate on the marketing and product
               launch costs and strategy when the Product is introduced into the
               North  American  markets and when the product is introduced  into
               other markets.  The level of collaboration and cost sharing shall
               be determined by the needs of both parties, which may change, but
               will  initially  include a  division  costs  related  to  product
               introduction,  marketing  and  promotion.  This  division of cost
               shall be  accomplished  by LACE  providing  a supply  of low cost
               Glaid instruments that can be provided to  thought-leaders in the
               field of glaucoma who agree to provide research and documentation
               of merit on the Glaid product at extra-preferential.

         11.8  It is agreed  that the LACE  Glaid  devices  currently  in use at
               reference  sites  will be  allowed  to remain at these  reference
               sites in exchange for endorsement, validation and the ability for
               the  Glaid  product  to gain  greater  exposure  and  credibility
               through the use of this device by these reference sites. Should a
               current  reference site decide that their study and research with
               the Glaid device has been concluded and that there is no longer a
               need for the Glaid  device,  it is agreed  that the  device  from
               these  specific   reference  sites  will  be  provided  to  other
               potential reference sites.

         11.9  LACE  agrees to provide a  technical  representative,  at special
               meetings,  trade shows, product training and in other cases where
               the  ongoing  sale and  marketing  of the LACE Glaid  device will
               benefit  from the  presence  of a technical  representative.  The
               expense for such will be the responsibility of LACE. The need for
               a technical representative will not be unreasonably denied.

         11.10 Should LACE develop or co-develop with Paradigm new and different
               technology  for use with  Glaid or other  products,  the  parties
               would  negotiation,  in good  faith,  a new  agreement  for sales
               volume and territory distribution for the new device.

         11.11 Paradigm will continue to work with the various  institutions and
               doctors who are conducting research and clinical studies with the
               LACE Glaid device in order to remain current with all development
               and  scientific  progress  being made to the  product.  The sites
               where this is taking place are referred to in this Agreement,  in
               11.7, as reference sites.

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         11.12 Paradigm  agrees  to  have a  company  representative  visit  the
               current  reference  sites  and meet  with the  doctors  and other
               professionals conducting research, clinical studies and using the
               LACE Glaid device. A reasonable  effort will be made to meet with
               the  thought-leaders  at the current reference sites prior to the
               introduction of the Glaid device into the North American markets.

         11.13 Cost of Goods (COG). The cost of goods are defined in Appendix 2.

         11.14 Competitive  Pricing:  Annual review and  adjustments  defined in
               Appendix 2.

         11.15 Regulatory parts supply  requirements:  LACE will agree to supply
               Paradigm with repair and  replacement  parts for a period of five
               years past the term of this  Agreement or the  termination of the
               Agreement in order to comply with the FDA  regulations of medical
               product maintenance.

         11.16 Thought  Leaders:  Paradigm  and LACE will agree to  contact  and
               present  the Glaid  device to thought  leaders,  defined as noted
               authority  of accepted  peer review  publications  or two or more
               podium  presentations  at medical  conferences  per year,  in the
               field of Glaucoma.  The objective  will be to meet with a minimum
               of one  recognized  thought leader per quarter with the intent of
               gaining recognition and acceptance of the Glaid device.

         11.17 LACE and  Paradigm  will agree to  develop a program of  "loaner"
               Glaid  devices  to be used by  industry  thought  leaders  as the
               market  for the Glaid  product  is  developed  and  expanded.  In
               addition  to  "loaner"  Glaid  devices,  LACE  agrees to  provide
               extra-preferential  pricing,  negotiated in good faith,  to those
               individuals deemed to be thought leaders and who agree to provide
               research and  documentation  of merit on the Glaid product.  This
               extrapreferential  pricing  will  be  provided  to  Paradigm  for
               specific use purpose Glaid devices and will be negotiated in good
               faith  on  a  -case-by-case  basis.  This  extra-special  product
               pricing  shall  also  include  pricing  for at least one  device,
               referred to as a "loaner" that will be available,  from Paradigm,
               for use in case of product failure and/or for short term research
               projects.

         11.18 LACE shall  provide  Paradigm  with at least one (1) loaner Glaid
               device  in  order  to  support  the  customers   who   experience
               out-of-box   (baby)  failures  or  product  failures  during  the
               warranty  period.  Paradigm  has already  purchased  and received
               delivery of two Glaid  devices  that are  intended to be used for
               demonstration and exhibit purposes. When available and not in use
               for  demonstrations  or at  exhibits,  Paradigm  will make  these
               devices  available for use in case of out-of-box (baby) failures.
               LACE will make  available to Paradigm one (1) loaner Glaid device
               after the sale of the first ten (10) Glaid devices.

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    12 Miscellaneous

         12.1  The parties shall inform their  respective  parent or controlling
               companies, prior to execution hereof, of the existence, terms and
               conditions of this agreement.

         12.2  Neither party may assign,  transfer or delegate any of the rights
               or  obligations  set forth in this  agreement  without  the prior
               written  consent  of the duly  authorized  representative  of the
               other party which will not be unreasonably denied.

         12.3  The  failure  of  either  party  to  enforce,  in any one or more
               instance,  any of the terms or conditions of this agreement shall
               not be  construed  as a waiver of the future  performance  of any
               such term or condition.

         12.4  Disputes  arising  in  connection  with this  agreement  shall be
               mediated.

Any disputes  arising in connection  with this agreement  shall be settled under
the United Nations  Convention on Contracts for the International  Sale of Goods
(1980) in the United Kingdom.

In witness whereof LACE and Paradigm Medical  Industries,  Inc. have caused this
agreement to be executed in its names by it's duly authorized representatives as
of the Effective date.

FOR AND ON BEHALF OF                            FOR AND BEHALF OF

Paradigm Medical Industries, Inc.               LACE Elettronica

Signature:/s/ Raymond P.L. Cannefax             Signature: /s/ Alessio Romani

Name:    Raymond P.L. Cannefax                  Name:  Alessio Romani

Title:  President & Chief Executive Officer     Title:  President & Chief
                                                Executive Officer

Date:         24 January 2007                   Date:   16 /Gen/ 08
Witness:      Diane Macknight                   Witness: Serena Rossi
              Sales Administrator                        Sales Assistant

Signature:    /s/ Diane MacKnight               Signature: /s/ Serena Rossi
                                                         Sales Assistant

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--------------------------------------------------------------------------------EXHIBIT 10.1

 

DIRECTV HOLDINGS LLC

DIRECTV FINANCING CO., INC.

7.625% SENIOR NOTES DUE 2016

 

 

INDENTURE

Dated as of May 14, 2008

 

 

THE BANK OF NEW YORK TRUST COMPANY, N.A.

as

Trustee

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  	
   

  	
   

  	
  Indenture

  
	
  Section

  	
   

  	
   

  	
  Section

  
	
  303

  	
   

  	
   

  	
  1.03

  
	
  310(a)(1)

  	
   

  	
   

  	
  7.10

  
	
       (a)(2)

  	
   

  	
   

  	
  7.10

  
	
       (a)(3)

  	
   

  	
   

  	
  N.A.

  
	
       (a)(4)

  	
   

  	
   

  	
  N.A.

  
	
       (b)

  	
   

  	
   

  	
  7.10

  
	
       (c)

  	
   

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
   

  	
  7.11

  
	
       (b)

  	
   

  	
   

  	
  7.11

  
	
       (c)

  	
   

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
   

  	
  2.05

  
	
       (b)

  	
   

  	
   

  	
  11.03

  
	
       (c)

  	
   

  	
   

  	
  11.03

  
	
  313(a)

  	
   

  	
   

  	
  7.06

  
	
       (b)(1)

  	
   

  	
   

  	
  7.06

  
	
       (b)(2)

  	
   

  	
   

  	
  7.07

  
	
       (c)

  	
   

  	
   

  	
  7.06; 11.02

  
	
       (d)

  	
   

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
   

  	
  4.03(a); 11.05

  
	
       (4)

  	
   

  	
   

  	
  4.04; 11.05

  
	
       (b)

  	
   

  	
   

  	
  N.A.

  
	
       (c)(1)

  	
   

  	
   

  	
  11.04

  
	
       (c)(2)

  	
   

  	
   

  	
  11.04

  
	
       (c)(3)

  	
   

  	
   

  	
  N.A.

  
	
       (d)

  	
   

  	
   

  	
  N.A.

  
	
       (e)

  	
   

  	
   

  	
  11.04; 11.05

  
	
       (f)

  	
   

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
   

  	
  7.01(b); 7.02

  
	
       (b)

  	
   

  	
   

  	
  7.05; 11.02

  
	
       (c)

  	
   

  	
   

  	
  7.01(a)

  
	
       (d)

  	
   

  	
   

  	
  7.01(c)

  
	
       (e)

  	
   

  	
   

  	
  6.11

  
	
  316(a) (last
  sentence)

  	
   

  	
   

  	
  2.09

  
	
       (a)(1)(A)

  	
   

  	
   

  	
  6.05

  
	
       (a)(1)(B)

  	
   

  	
   

  	
  6.04

  
	
       (a)(2)

  	
   

  	
   

  	
  N.A.

  
	
       (b)

  	
   

  	
   

  	
  6.07

  
	
       (c)

  	
   

  	
   

  	
  2.13

  
	
  317(a)(1)

  	
   

  	
   

  	
  6.08

  
	
       (a)(2)

  	
   

  	
   

  	
  6.09

  
	
       (b)

  	
   

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
   

  	
  11.01

  
	
       (c)

  	
   

  	
   

  	
  11.01

  

 

N.A. means Not Applicable.

Note:      This Cross-Reference Table shall not, for any
purposes, be deemed to be part hereof.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE 1

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY
  REFERENCE

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions.

  	
  1

  
	
  SECTION 1.02.

  	
  Other Definitions.

  	
  23

  
	
  SECTION 1.03.

  	
  Incorporation by Reference of Trust Indenture Act.

  	
  23

  
	
  SECTION 1.04.

  	
  Rules of Construction.

  	
  24

  
	
  SECTION 1.05.

  	
  Acts of Holders; Record Dates.

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  
	
   

  	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Form and Dating.

  	
  25

  
	
  SECTION 2.02.

  	
  Form of Execution and Authentication.

  	
  27

  
	
  SECTION 2.03.

  	
  Registrar and Paying Agent.

  	
  28

  
	
  SECTION 2.04.

  	
  Paying Agent To Hold Money in Trust.

  	
  28

  
	
  SECTION 2.05.

  	
  Lists of Holders of the Notes.

  	
  29

  
	
  SECTION 2.06.

  	
  Transfer and Exchange.

  	
  29

  
	
  SECTION 2.07.

  	
  Replacement Notes.

  	
  39

  
	
  SECTION 2.08.

  	
  Outstanding Notes.

  	
  39

  
	
  SECTION 2.09.

  	
  Treasury Notes.

  	
  40

  
	
  SECTION 2.10.

  	
  Temporary Notes.

  	
  40

  
	
  SECTION 2.11.

  	
  Cancellation.

  	
  40

  
	
  SECTION 2.12.

  	
  Defaulted Interest.

  	
  41

  
	
  SECTION 2.13.

  	
  Record Date.

  	
  41

  
	
  SECTION 2.14.

  	
  CUSIP Number.

  	
  41

  
	
  SECTION 2.15.

  	
  Joint and Several Liability.

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  
	
   

  	
   

  	
   

  
	
  REDEMPTION

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Notices to Trustee.

  	
  41

  
	
  SECTION 3.02.

  	
  Selection of Notes To Be Redeemed.

  	
  42

  
	
  SECTION 3.03.

  	
  Notice of Redemption.

  	
  42

  
	
  SECTION 3.04.

  	
  Effect of Notice of Redemption.

  	
  43

  
	
  SECTION 3.05.

  	
  Deposit of Redemption Price.

  	
  43

  
	
  SECTION 3.06.

  	
  Notes Redeemed in Part.

  	
  43

  
	
  SECTION 3.07.

  	
  Optional Redemption.

  	
  43

  
	
  SECTION 3.08.

  	
  Excess Proceeds Offer.

  	
  44

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE 4

  
	
   

  
	
  COVENANTS

  
	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes.

  	
  46

  
	
  SECTION 4.02.

  	
  Maintenance of Office or Agency.

  	
  46

  
	
  SECTION 4.03.

  	
  Reports.

  	
  47

  
	
  SECTION 4.04.

  	
  Compliance Certificate.

  	
  47

  
	
  SECTION 4.05.

  	
  Taxes.

  	
  48

  
	
  SECTION 4.06.

  	
  Stay, Extension and Usury Laws.

  	
  48

  
	
  SECTION 4.07.

  	
  Limitation on Restricted Payments.

  	
  48

  
	
  SECTION 4.08.

  	
  Limitation on Dividend and Other Payment Restrictions Affecting
  Restricted Subsidiaries.

  	
  52

  
	
  SECTION 4.09.

  	
  Limitation on Incurrence of Indebtedness.

  	
  53

  
	
  SECTION 4.10.

  	
  Limitation on Asset Sales.

  	
  56

  
	
  SECTION 4.11.

  	
  Limitation on Transactions with Affiliates.

  	
  58

  
	
  SECTION 4.12.

  	
  Limitation on Liens.

  	
  59

  
	
  SECTION 4.13.

  	
  Additional Subsidiary Guarantees.

  	
  59

  
	
  SECTION 4.14.

  	
  Organizational Existence.

  	
  60

  
	
  SECTION 4.15.

  	
  Change of Control and Rating Decline.

  	
  60

  
	
  SECTION 4.16.

  	
  [Intentionally Omitted]

  	
  61

  
	
  SECTION 4.17.

  	
  Limitation on Activities of DIRECTV Financing.

  	
  61

  
	
  SECTION 4.18.

  	
  Payments for Consent.

  	
  62

  
	
  SECTION 4.19.

  	
  Termination of Covenants.

  	
  62

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  
	
   

  	
   

  	
   

  
	
  SUCCESSORS

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Merger, Consolidation or Sale of Assets.

  	
  62

  
	
  SECTION 5.02.

  	
  Successor Corporation Substituted.

  	
  63

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  
	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of Default.

  	
  63

  
	
  SECTION 6.02.

  	
  Acceleration.

  	
  65

  
	
  SECTION 6.03.

  	
  Other Remedies.

  	
  65

  
	
  SECTION 6.04.

  	
  Waiver of Past Defaults.

  	
  66

  
	
  SECTION 6.05.

  	
  Control by Majority.

  	
  66

  
	
  SECTION 6.06.

  	
  Limitation on Suits.

  	
  66

  
	
  SECTION 6.07.

  	
  Rights of Holders of Notes To Receive Payment.

  	
  66

  
	
  SECTION 6.08.

  	
  Collection Suit by Trustee.

  	
  67

  
	
  SECTION 6.09.

  	
  Trustee May File Proofs of Claim.

  	
  67

  
	
  SECTION 6.10.

  	
  Priorities.

  	
  67

  
	
  SECTION 6.11.

  	
  Undertaking for Costs.

  	
  68

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE 7

  
	
   

  
	
  TRUSTEE

  
	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee.

  	
  68

  
	
  SECTION 7.02.

  	
  Rights of Trustee.

  	
  69

  
	
  SECTION 7.03.

  	
  Individual Rights of Trustee.

  	
  70

  
	
  SECTION 7.04.

  	
  Trustee’s Disclaimer.

  	
  71

  
	
  SECTION 7.05.

  	
  Notice of Defaults.

  	
  71

  
	
  SECTION 7.06.

  	
  Reports by Trustee to Holders of the Notes.

  	
  71

  
	
  SECTION 7.07.

  	
  Compensation and Indemnity.

  	
  71

  
	
  SECTION 7.08.

  	
  Replacement of Trustee.

  	
  72

  
	
  SECTION 7.09.

  	
  Successor Trustee by Merger, Etc.

  	
  73

  
	
  SECTION 7.10.

  	
  Eligibility; Disqualification.

  	
  73

  
	
  SECTION 7.11.

  	
  Preferential Collection of Claims Against Issuers.

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  
	
   

  	
   

  	
   

  
	
  DISCHARGE OF INDENTURE; DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Termination of the Issuers’ Obligations.

  	
  74

  
	
  SECTION 8.02.

  	
  Option To Effect Legal Defeasance or Covenant Defeasance.

  	
  75

  
	
  SECTION 8.03.

  	
  Legal Defeasance and Covenant Discharge.

  	
  75

  
	
  SECTION 8.04.

  	
  Covenant Defeasance.

  	
  75

  
	
  SECTION 8.05.

  	
  Conditions to Legal or Covenant Defeasance.

  	
  76

  
	
  SECTION 8.06.

  	
  Deposited Money and Government Securities To Be Held in Trust; Other
  Miscellaneous Provisions.

  	
  77

  
	
  SECTION 8.07.

  	
  Repayment to Issuers.

  	
  77

  
	
  SECTION 8.08.

  	
  Reinstatement.

  	
  78

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  
	
   

  	
   

  	
   

  
	
  AMENDMENT, SUPPLEMENT AND WAIVER

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Without Consent of Holders of Notes.

  	
  78

  
	
  SECTION 9.02.

  	
  With Consent of Holders of Notes.

  	
  79

  
	
  SECTION 9.03.

  	
  Compliance with Trust Indenture Act.

  	
  80

  
	
  SECTION 9.04.

  	
  Revocation and Effect of Consents.

  	
  80

  
	
  SECTION 9.05.

  	
  Notation on or Exchange of Notes.

  	
  81

  
	
  SECTION 9.06.

  	
  Trustee To Sign Amendments, Etc.

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  
	
   

  	
   

  	
   

  
	
  GUARANTEES

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Guarantee.

  	
  81

  
	
  SECTION 10.02.

  	
  Execution and Delivery of Guarantees.

  	
  83

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 10.03.

  	
  Merger, Consolidation or Sale of Assets of Guarantors.

  	
  83

  
	
  SECTION 10.04.

  	
  Successor Corporation Substituted.

  	
  84

  
	
  SECTION 10.05.

  	
  Releases from Guarantees.

  	
  84

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  Trust Indenture Act Controls.

  	
  85

  
	
  SECTION 11.02.

  	
  Notices.

  	
  85

  
	
  SECTION 11.03.

  	
  Communication by Holders of Notes with Other Holders of Notes.

  	
  86

  
	
  SECTION 11.04.

  	
  Certificate and Opinion as to Conditions Precedent.

  	
  86

  
	
  SECTION 11.05.

  	
  Statements Required in Certificate or Opinion.

  	
  87

  
	
  SECTION 11.06.

  	
  Rules by Trustee and Agents.

  	
  87

  
	
  SECTION 11.07.

  	
  No Personal Liability of Directors, Owners, Employees, Incorporators
  and Stockholders.

  	
  87

  
	
  SECTION 11.08.

  	
  Governing Law.

  	
  87

  
	
  SECTION 11.09.

  	
  No Adverse Interpretation of Other Agreements.

  	
  88

  
	
  SECTION 11.10.

  	
  Successors.

  	
  88

  
	
  SECTION 11.11.

  	
  Severability.

  	
  88

  
	
  SECTION 11.12.

  	
  Counterpart Originals.

  	
  88

  
	
  SECTION 11.13.

  	
  Table of Contents, Headings, Etc.

  	
  88

  
	
  SECTION 11.14.

  	
  Force Majeure.

  	
  88

  
	
  SECTION 11.15.

  	
  Waiver of Jury Trial.

  	
  88

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A FORM OF NOTE

  	
   

  
	
  EXHIBIT B FORM OF GUARANTEE

  	
   

  
	
  EXHIBIT C FORM OF CERTIFICATE OF
  TRANSFER

  	
   

  
	
  EXHIBIT D FORM OF CERTIFICATE OF EXCHANGE

  	
   

  

 

iv

 

INDENTURE dated as of May 14, 2008 by and among
DIRECTV Holdings LLC (the “Company” or an “Issuer”), a Delaware limited liability company, DIRECTV
Financing Co., Inc. (“DIRECTV Financing”
or an “Issuer” and together with the Company,
the “Issuers”), a Delaware corporation, the
Guarantors (as hereinafter defined) and The Bank of New York Trust Corporation,
N.A., a national banking association, as trustee (the “Trustee”).

 

The Issuers, 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 Issuers’ 7.625% Senior Notes due 2016.

 

RECITALS

 

The Issuers and the Guarantors have duly authorized
the execution and delivery hereof to provide for the issuance of the Notes and
the Guarantees.

 

All things necessary (i) to make the Notes,
when executed by the Issuers and authenticated and delivered hereunder and duly
issued by the Issuers and delivered hereunder, the valid obligations of the
Issuers, (ii) to make the Guarantees when executed by the Guarantors and delivered
hereunder the valid obligations of the Guarantors, and (iii) to make this
Indenture a valid and legally binding agreement of the Issuers and the
Guarantors, all in accordance with their respective terms, have been done.

 

For and in consideration of the premises and the
purchase of the Notes by the Holders thereof, it is mutually agreed as follows
for the equal and ratable benefit of the Holders of the Notes.

 

ARTICLE 1

 

DEFINITIONS AND
INCORPORATION BY REFERENCE

 

SECTION 1.01.                                                                 Definitions.

 

“144A Global Note”
means a global note substantially in the form of Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited
with or on behalf of, and registered in the name of, the Depositary or its nominee
that will be issued in a denomination equal to the outstanding principal amount
of the Notes sold in reliance on Rule 144A.

 

“2013 Notes”
means $910 million of 8 3/8% Senior Notes due 2013
outstanding on the Issue Date issued by the Company and DIRECTV Financing under
an indenture dated as of February 28, 2003.

 

“2015 Notes”
means $1,000 million of 6 3/8% Senior Notes due 2015
issued by the Company and DIRECTV Financing under an indenture dated as of June 15,
2005.

 

 

“Acquired Debt”
means, with respect to any specified Person, Indebtedness of any other Person
existing at the time such other Person merges with or into or becomes a Subsidiary
of such specified Person, or Indebtedness incurred by such Person in connection
with the acquisition of assets, in each case so long as such Indebtedness was
not incurred in connection with, or in contemplation of, such other Person
merging with or into or becoming a Subsidiary of such specified Person or the
acquisition of such assets, as the case may be.

 

“Acquired Subscriber”
means a subscriber to a service provided by a Permitted Business as to whom the
Company or one of its Restricted Subsidiaries purchases the right to provide
such service to such subscriber, whether such purchase is undertaken directly,
through the acquisition of the entity providing such service or through the
acquisition of assets used or to be used to provide such service to such
subscriber.

 

“Acquired Subscriber Debt”
means

 

(a)                                  Indebtedness the proceeds of
which are used to pay the purchase price for Acquired Subscribers or to acquire
the entity which has the right to provide service to such Acquired Subscribers
or to acquire from such entity or another Person’s assets used or to be used in
connection with such Permitted Business; provided that
such Indebtedness is incurred within three years after the date of the
acquisition of such Acquired Subscribers, and

 

(b)                                 Acquired Debt of any such
entity being acquired;

 

provided that in no
event shall the amount of such Indebtedness and Acquired Debt for any Acquired
Subscriber exceed the sum of the actual purchase price (inclusive of such Acquired
Debt) for such Acquired Subscriber, such entity and such assets plus the cost,
if any, incurred to convert such Acquired Subscriber to usage of a delivery
format for telecommunications services made available by the Company or any of
its Restricted Subsidiaries.

 

“Affiliate” of
any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified
Person.  For purposes of this definition,
“control” (including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with”), as used with respect to any Person, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; provided,
however, that no individual, other than
a director of Parent or the Company or their respective Subsidiaries or an
officer of Parent or the Company or their respective Subsidiaries with a policy
making function, shall be deemed an Affiliate of the Company or any of its
Subsidiaries solely by reason of such individual’s employment, position or responsibilities
by or with respect to Parent, the Company or any of their respective Subsidiaries.

 

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

 

“Applicable Procedures”
means, with respect to any transfer or exchange of or for beneficial interests
in any Global Note, the rules and procedures of the Depositary that apply
to such transfer or exchange.

 

2

 

“Bankruptcy Law”
means title 11, U.S. Code or any similar federal or state law for the relief of
debtors.

 

“Board of Directors”
means (a) with respect to any Person that is a corporation, the board of
directors of such Person or any duly authorized committee thereof and (b) as
to any other Person, the functionally comparable body of such Person or any
duly authorized committee thereof.

 

“Broker-Dealer”
means any broker or dealer registered under the Exchange Act.

 

“Business Day”
means any day other than a Legal Holiday.

 

“Capital Lease Obligations”
means, as to any Person, the obligations of such Person under a lease that are
required to be classified and accounted for as capital lease obligations under
GAAP and, for purposes of this definition, the amount of such obligations at
the time any determination thereof is to be made shall be the amount of the
liability in respect of a capital lease that would at such time be so required
to be capitalized on a balance sheet in accordance with GAAP.

 

“Capital Stock”
means any and all shares, interests, participations, rights or other equivalents,
however designated, of corporate stock or partnership or membership interests,
whether common or preferred.

 

“Cash Equivalents”
means:

 

(a)                                  United States dollars;

 

(b)                                 securities issued or
directly and fully guaranteed or insured by the United States or any agency or
instrumentality (provided that the full faith and credit of the United States
is pledged in support thereof) having maturities of not more than twelve (12)
months from the date of acquisition;

 

(c)                                  certificates of deposit and
eurodollar time deposits with maturities of one year or less from the date of
acquisition, bankers’ acceptances with maturities not exceeding one year and
overnight bank deposits, in each case with any domestic commercial bank having
capital and surplus in excess of $500.0 million;

 

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

 

(e)                                  commercial paper issued by
any issuer bearing at least a “2” rating for any short term rating provided by
Moody’s or S&P, respectively, and maturing within two hundred seventy (270)
days of the date of acquisition;

 

(f)                                    variable or fixed rate notes
issued by any issuer rated at least AA by S&P (or the equivalent thereof)
or at least Aa2 by Moody’s (or the equivalent thereof) and maturing within one (1) year
of the date of acquisition; and

 

3

 

(g)                                 money market funds offered
by any domestic commercial or investment bank having capital and surplus in
excess of $500.0 million at least 95% of the assets of which constitute Cash
Equivalents of the kinds described in clauses (a) through (g) of this
definition.

 

“Change of Control”
means the occurrence of one or more of the following events:

 

(a)                                  the ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Exchange Act and the rules of the Commission thereunder as
in effect on the Issue Date) other than one or more Permitted Holders of Equity
Interests representing more than 50% (on a fully diluted basis) of the total voting
power represented by the issued and outstanding Equity Interests of the Company
then entitled to vote in the election of the Board of Directors of the Company;
or

 

(b)                                 at any time, the occupation
of a majority of the seats (other than vacant seats) on the Board of Directors
of the Company by persons who were neither (i) nominated by the Board of
Directors of the Company with the affirmative vote of a majority of the members
of said Board of Directors at the time of such nomination or election nor (ii) appointed
by directors so nominated or elected or appointed by Permitted Holders.

 

The formation, by merger or otherwise, of a parent
entity of the Company shall not constitute a Change of Control if more than 50%
of the Equity Interests of the Company held by such parent entity are deemed
beneficially owned by the Permitted Holders pursuant to Rules 13d-3 and
13d-5 under the Exchange Act.

 

“Change of Control
Triggering Event” means the occurrence of both a Change of Control
and a Rating Decline.

 

“Commission”
means the Securities and Exchange Commission.

 

“Communications Act”
means the Communications Act of 1934, as amended.

 

“Consolidated Cash Flow”
means, with respect to any Person for any period, the Consolidated Net Income
of such Person for such period excluding, however, any gain (but not loss),
together with any related provision for taxes on such gain (but not loss),
realized in connection with any Asset Sale (including, without limitation,
dispositions pursuant to sale and leaseback transactions), and excluding any
extraordinary gain (but not loss), together with any related provision for
taxes on such extraordinary gain (but not loss) and excluding any unusual gain
(but not loss) relating to recovery of insurance proceeds on satellites,
together with any related provision for taxes on such unusual gain (but not
loss), plus, to the extent deducted in computing Consolidated Net Income:

 

(a)                                  provision for taxes based on
income or profits;

 

(b)                                 Consolidated Interest
Expense;

 

(c)                                  Consolidated Non-Cash
Charges of such Person for such period; and

 

(d)                                 any extraordinary loss and
any net loss realized in connection with any Asset Sale,

 

4

 

in each case, on a consolidated basis
determined in accordance with GAAP.

 

“Consolidated Interest
Expense” means, with respect to any Person for any period, consolidated
interest expense of such Person for such period, whether paid or accrued,
including amortization of original issue discount and deferred financing costs,
noncash interest payments and the interest component of Capital Lease
Obligations, on a consolidated basis determined in accordance with GAAP; provided, however, that
with respect to the calculation of the consolidated interest expense of the
Company, the interest expense of Unrestricted Subsidiaries shall be excluded.

 

“Consolidated Net Income”
means, with respect to any Person for any period, the aggregate of the Net
Income of such Person and its Restricted Subsidiaries for such period, on a consolidated
basis, determined in accordance with GAAP; provided, however, that:

 

(a)                                  the Net Income of any Person
that is not a Subsidiary or that is accounted for by the equity method of
accounting shall be included only to the extent of the amount of dividends or
distributions paid in cash to the referent Person, in the case of a gain, or to
the extent of any contributions or other payments by the referent Person, in
the case of a loss;

 

(b)                                 the Net Income of any Person
that is a Subsidiary that is not a Wholly Owned Subsidiary shall be included
only to the extent of the amount of dividends or distributions paid in cash to
the referent Person;

 

(c)                                  the Net Income of any Person
acquired in a pooling of interests transaction for any period prior to the date
of such acquisition shall be excluded;

 

(d)                                 the Net Income of any
Subsidiary of such Person that is not a Guarantor shall be excluded to the
extent that the declaration or payment of dividends or similar distributions is
not at the time permitted by operation of the terms of its charter or bylaws or
any other agreement, instrument, judgment, decree, order, statute, rule or
government regulation to which it is subject; and

 

(e)                                  the cumulative effect of a
change in accounting principles shall be excluded.

 

“Consolidated Net Worth”
means, with respect to any Person, the sum of: 
(a) the owners’ equity of such Person; plus
(b) the amount reported on such Person’s most recent balance sheet with respect
to any series of preferred stock (other than Disqualified Stock) that by its
terms is not entitled to the payment of dividends unless such dividends may be
declared and paid only out of net earnings in respect of the year of such
declaration and payment, but only to the extent of any cash received by such
Person upon issuance of such preferred stock, less:  (i) all write-ups (other than write-ups
resulting from foreign currency translations and write-ups of tangible assets
of a going concern business made within 12 months after the acquisition of such
business) subsequent to the Issue Date in the book value of any asset owned by
such Person or a

 

5

 

consolidated Subsidiary of
such Person; and (ii) all unamortized debt discount and expense and
unamortized deferred charges, all of the foregoing determined on a consolidated
basis in accordance with GAAP.

 

“Consolidated Non-Cash
Charges” means, with respect to any Person for any period, the
aggregate depreciation, amortization, impairment, compensation, rent, other
non-cash expenses and write-offs and write-downs of assets of such Person and
its Restricted Subsidiaries for such period on a consolidated basis and
otherwise determined in accordance with GAAP, but excluding (i) any such
charge which consists of or requires an accrual of, or cash reserve for, anticipated
cash charges for any future period and (ii) the non-cash impact of recording
the change in fair value of any embedded derivatives under Statement of
Financial Accounting Standards No. 133 and related interpretations as a
result of the terms of any agreement or instrument to which such Consolidated
Non-Cash Charges relate.

 

“Corporate Trust Office of
the Trustee” means the principal office of the Trustee at which any
time its corporate trust business shall be administered, which office at the
date hereof is located at 700 South Flower Street, Suite 500, Los Angeles,
CA 90017, Attention:  Corporate Unit, or
such other address as the Trustee may designate from time to time by notice to
the Holders and the Company, or the principal corporate trust office of any successor
Trustee (or such other address as such successor Trustee may designate from
time to time by notice to the Holders and the Company).

 

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

 

“Definitive Note”
means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06 hereof, substantially in the form
of Exhibit A hereto except that such Note shall not bear the Global
Note Legend and shall not have the “Schedule of Exchanges of Interests in the
Global Note” attached thereto.

 

“Depositary”
means The Depository Trust Company and any and all successors thereto appointed
as depositary hereunder and having become such pursuant to an applicable
provision hereof.

 

“DIRECTV Group”
means The DIRECTV Group, Inc., a Delaware corporation, and its successors.

 

“Disqualified Stock”
means any Capital Stock which, by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable), or upon the
happening of any event, matures or is mandatorily redeemable, pursuant to a
sinking fund obligation or otherwise, or redeemable at the option of the
holders thereof, in whole or in part, on or prior to the date on which the
Notes mature; provided, however,
that any such Capital Stock may require the issuer of such Capital Stock to
make an offer to purchase such Capital Stock upon the occurrence of certain
events if the terms of such Capital Stock provide that such an offer may not be
satisfied and the purchase of such Capital Stock may not be consummated until
the 91st day after the Notes have been paid in full.

 

6

 

“Domestic Subsidiaries”
shall mean all Subsidiaries incorporated, formed or organized under the laws of
the United States of America, any State thereof or the District of Columbia.

 

“Eligible Institution”
means a commercial banking institution that has combined capital and surplus of
not less than $500.0 million or its equivalent in foreign currency, whose debt
is rated by at least two nationally recognized statistical rating organizations
in one of each such organization’s four highest generic rating categories at
the time as of which any investment or rollover therein is made.

 

“Equity Interests”
means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or
exchangeable for, Capital Stock).

 

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

 

“Exchange Notes”
means the Notes issued in the Exchange Offer pursuant to Section 2.06(f) hereof
or pursuant to a registered exchange offer for Notes with a Private Placement
Legend issued after the Issue Date.

 

“Exchange Offer”
has the meaning set forth in the Registration Rights Agreement.

 

“Exchange Offer
Registration Statement” has the meaning set forth in the
Registration Rights Agreement.

 

“Existing Indebtedness”
means any Indebtedness (other than the Notes and the Guarantees) of the Company
and its Subsidiaries in existence on the Issue Date after giving effect to the
use of proceeds from the offering contemplated by the Offering Memorandum until
such amounts are repaid.

 

“Existing Notes”
means the 2013 Notes and the 2015 Notes.

 

“Existing Satellites”
means the following satellites:  DIRECTV
1, DIRECTV 1R, DIRECTV 4S, DIRECTV 5, DIRECTV 7S, DIRECTV 8, DIRECTV 9S,
DIRECTV 10, DIRECTV 11, Spaceway 1 and Spaceway 2.

 

“FCC” means
Federal Communications Commission.

 

“Financing Subsidiary”
means a Subsidiary of the Company:

 

(1)                                  that is formed solely for
the purpose of, and that engages in no activities other than activities in
connection with, financing the acquisition of customer premise and receiving
equipment (including delivery and installation costs) by such Subsidiary’s or
the Company’s retail customers;

 

(2)                                  that is designated by the
Company as a Financing Subsidiary;

 

7

 

(3)                                  no portion of the
Indebtedness or any other obligation (contingent or otherwise) of which (a) is
at any time guaranteed by the Company or any Restricted Subsidiary, (b) is
at any time recourse to or obligates the Company or any Restricted Subsidiary
in any way or (c) subjects any asset of the Company or any other
Restricted Subsidiary, directly or indirectly, contingently or otherwise, to
the satisfaction thereof;

 

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

 

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

 

“Foreign Currency
Obligations” means, with respect to any Person, the obligations of
such Person pursuant to any foreign exchange contract, currency swap agreement
or other similar agreement or arrangement designed to protect the Company or
any Restricted Subsidiary of the Company against fluctuations in currency
values.

 

“GAAP” means
United States generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession of the United States, which are applicable as of the date of
determination; provided that, except as otherwise specifically provided, all
calculations made for purposes of determining compliance with the terms of the
provisions hereof shall utilize GAAP as in effect on the Issue Date.

 

“Global Note Legend”
means the legend set forth in Section 2.01 hereof, which is required to be
placed on all Global Notes issued under this Indenture.

 

“Global Notes”
means, individually and collectively, each of the Restricted Global Notes and
the Unrestricted Global Notes, substantially in the form of Exhibit A
hereto issued in accordance with Section 2.01 or 2.06 hereof.

 

“Government Securities”
means direct obligations of, or obligations guaranteed by, the United States
for the payment of which guarantee or obligations the full faith and credit of
the United States is pledged.

 

“guarantee”
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including, without limitation, letters of credit and reimbursement
agreements in respect thereof), of all or any part of any Indebtedness.

 

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

 

8

 

“Guarantor”
means any Restricted Subsidiary of the Company that guarantees the Notes and
its successors and assigns.

 

“Hedging Obligations”
means, with respect to any Person, the obligations of such Person pursuant to
any arrangement with any other Person, whereby, directly or indirectly, such
Person is entitled to receive from time to time periodic payments calculated by
applying either floating or a fixed rate of interest on a stated notional
amount in exchange for periodic payments made by such other Person calculated
by applying a fixed or a floating rate of interest on the same notional amount
and shall include, without limitation, interest rate swaps, caps, floors, collars
and similar agreements designed to protect such Person against fluctuations in
interest rates.

 

“Holder” means a
Person in whose name a Note is registered.

 

“Indebtedness”
means, with respect to any Person, any indebtedness of such Person, whether or
not contingent, in respect of borrowed money or evidenced by bonds, notes, debentures
or similar instruments or letters of credit (or reimbursement agreements in
respect thereof) or representing the balance deferred and unpaid of the purchase
price of any property (including pursuant to capital leases) or representing
any Hedging Obligations or Foreign Currency Obligations, except any such
balance that constitutes an accrued expense or trade payable, if and to the
extent any of the foregoing (other than Hedging Obligations or Foreign Currency
Obligations) would appear as a liability upon a balance sheet of such Person
prepared in accordance with GAAP, and also includes, to the extent not
otherwise included, the amount of all obligations of such Person with respect
to the redemption, repayment or other repurchase of any Disqualified Stock or,
with respect to any Subsidiary of such Person, the liquidation preference with
respect to, any Preferred Equity Interests (but excluding, in each case, any
accrued dividends) as well as the guarantee of items that would be included
within this definition.

 

“Indebtedness to Cash Flow
Ratio” means, with respect to any Person, the ratio of: (a) (i) the
Indebtedness of such Person and its Subsidiaries (or, if such Person is the
Company, of the Company and its Restricted Subsidiaries) as of the end of the
most recently ended fiscal quarter, plus (ii) the amount of any
Indebtedness incurred (and minus the amount of any Indebtedness repaid)
subsequent to the end of such fiscal quarter; provided,
however, that if such Indebtedness under
this clause (ii) constitutes Indebtedness under a revolving credit
facility, then the amount of increase or reduction shall be determined by
comparison to the amount determined under clause (I) below; to (b) such
Person’s Consolidated Cash Flow for the most recently ended four full fiscal
quarters for which internal financial statements are available immediately
preceding the date on which the event for which such calculation is being made
shall occur (the “Measurement Period”); provided, however,
that:  (I) in making such
computation, Indebtedness shall include the average daily balance outstanding
under any revolving credit facility during the most recently ended fiscal
quarter and (II) if such Person or any of its Subsidiaries (or, if such
Person is the Company, any of its Restricted Subsidiaries) consummates an
acquisition or an Asset Sale or other disposition of assets subsequent to the
commencement of the Measurement Period but prior to the event for which the
calculation of the Indebtedness to Cash Flow Ratio is made, then the
Indebtedness to Cash Flow Ratio shall be calculated giving pro forma effect to
such acquisition or Asset Sale or other disposition of assets, including giving
effect to Pro Forma Cost Savings, as if the same had occurred at the beginning
of the applicable period.

 

9

 

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

 

“Independent Financial
Advisor” means a Person or entity which, in the judgment of the
Board of Directors of the Company, is independent and otherwise qualified to
perform the task for which it is to be engaged.

 

“Indirect Participant”
means a Person who holds a beneficial interest in a Global Note through a Participant.

 

“Initial Notes”
means the $1.5 billion in aggregate principal amount of the Issuers’
7.625% Senior Notes due 2016 of the Issuers issued under this Indenture on the
Issue Date.

 

“Initial Purchasers”  means, with respect to the Initial Notes, Banc of America
Securities LLC and Credit Suisse First Boston LLC.

 

“Investment Grade”
designates a rating of BBB- or higher by S&P or Baa3 or higher by Moody’s
or the equivalent of such ratings by S&P or Moody’s.  In the event that the Company shall select
any other Rating Agency, the equivalent of such ratings by such Rating Agency
shall be used.

 

“Investments”
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the forms of loans (including guarantees),
advances or capital contributions (excluding commission, travel and similar
advances to officers and employees made in the ordinary course of business),
purchases or other acquisitions for consideration of Indebtedness, Equity
Interests or other securities and all other items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP.

 

“Issue Date”
means May 14, 2008, the date of original issuance of the Initial Notes.

 

“Legal Holiday”
means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or at a place of payment are authorized by law, regulation or
executive order to remain closed.  If a
payment date is a Legal Holiday at a place of payment, payment may be made at
that place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period.

 

“Liberty Group”
means (a) Liberty Media Corporation, a Delaware corporation, and any of
its successors and Affiliates, (b) Greenlady Corporation, a Delaware
corporation, and Greenlady II, LLC, a Delaware limited liability company and
their respective subsidiaries and (c) (i) John C. Malone and any
executor, administrator, guardian, conservator or similar legal representative
thereof, (ii) any member of the immediate family of John C. Malone, (iii) any
person directly or indirectly controlled by one or more of the members of the
Malone family described above (a “Controlled
Person”), and (iv) any Person acting as agent for any Person
described in clauses (i) through (iii) hereof; provided
that a trust and the trustees of such trust shall be deemed to be controlled by
any one or more members of the Malone family if a majority of the trustees of
such trust are members of the Malone family or may be removed or replaced by
any one or more of the members of the Malone family and/or Controlled Persons.

 

10

 

“Letter of Transmittal”
means the letter of transmittal to be prepared by the Company and sent to all
Holders of the Notes for use by such Holders in connection with the Exchange
Offer.

 

“Lien” means,
with respect to any asset, any mortgage, lien, pledge, charge, security interest
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, any
option or other agreement to sell or give a security interest in and any filing
of or agreement to give any financing statement under the Uniform Commercial
Code (or equivalent statute) of any jurisdiction).

 

“Make Whole Amount”
means, with respect to any Note at any redemption date, the greater of (i) 1.0%
of the principal amount of such Note and (ii) the excess, if any, of (A) an
amount equal to the present value of (1) the redemption price of such Note
at May 15, 2012 plus (2) the remaining scheduled interest payments on
the Notes to be redeemed (subject to the right of Holders on the relevant
record date to receive interest due on the relevant interest payment date) to May 15,
2012 (other than interest accrued to the redemption date), computed using a discount
rate equal to the Treasury Rate plus 50 basis points, over (B) the principal
amount of the Notes to be redeemed.

 

“Marketable Securities”
means:  (a) Government Securities; (b) any
certificate of deposit maturing not more than 365 days after the date of
acquisition issued by, or time deposit of, an Eligible Institution; (c) commercial
paper maturing not more than 365 days after the date of acquisition issued by a
corporation (other than an Affiliate of the Company) with a rating by at least
two nationally recognized statistical rating organizations in one of each such
organization’s four highest generic rating categories at the time as of which
any investment therein is made, issued or offered by an Eligible Institution; (d) any
bankers’ acceptances or money market deposit accounts issued or offered by an
Eligible Institution; and (e) any fund investing exclusively in investments
of the types described in clauses (a) through (d) above.

 

“Moody’s” means
Moody’s Investors Service, Inc.

 

“Net Income” means,
with respect to any Person, the net income (loss) of such Person, determined in
accordance with GAAP.

 

“Net Proceeds”
means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries, as the case may be, in respect of any Asset Sale, net
of the direct costs relating to such Asset Sale (including, without limitation,
legal, accounting and investment banking fees, and sales commissions) and any
relocation expenses incurred as a result thereof, taxes paid or payable as a result
thereof (after taking into account any available tax credits or deductions and
any tax sharing arrangements), amounts required to be applied to the repayment
of Indebtedness secured by a Lien on the asset or assets that are the subject
of such Asset Sale and any reserve for adjustment in respect of the sale price
of such asset or assets.  Net Proceeds
shall exclude any non-cash proceeds received from any Asset Sale, but shall
include such proceeds when and as converted by the Company or any Restricted
Subsidiary to cash.

 

“Non-U.S. Person”
means a Person who is not a U.S. Person.

 

11

 

“Notes” means
the Initial Notes, the Exchange Notes and any other notes issued after the
Issue Date in accordance with the fourth paragraph of Section 2.02 hereof
treated as a single class of securities.

 

“Obligations”
means any principal, interest, penalties, fees, indemnifications, reimbursements,
damages and other liabilities payable under the documentation governing any Indebtedness.

 

“Offering Memorandum”
means the Offering Memorandum, dated May 7, 2008, relating to and used in
connection with the initial offering of the Initial Notes.

 

“Officer” means,
with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer,
the Treasurer, any Assistant Treasurer, Controller, Secretary or any Vice
President of such Person, or any other officer designated by the Board of
Directors serving in a similar capacity.

 

“Officers’ Certificate”
means a certificate signed on behalf of the Company or DIRECTV Financing, as
the case may be, by two Officers of such Person or of such Person’s partner or
managing member, one of whom must be the principal executive officer, principal
financial officer, treasurer or principal accounting officer of such Person or
of such Person’s partner or managing member.

 

“Opinion of Counsel”
means an opinion from legal counsel, who may be an employee of or counsel to
the Company or any Subsidiary of the Company.

 

“Parent” means
DIRECTV Group and its successors, in each case together with each Subsidiary of
Parent that beneficially owns any Equity Interests of the Company.

 

“Participant”
means, with respect to the Depositary, a Person who has an account with the
Depositary.

 

“Permitted Business”
means any of developing, owning, engaging in and dealing with all or any part
of the business of domestic and international media, entertainment,
electronics, communications, voice, data and network services and reasonably
related extensions thereof, including but not limited to the purchase,
ownership, operation, leasing and selling of, and generally dealing in or with,
one or more communications satellites and the transponders thereon, and
communications uplink centers and related terrestrial infrastructure, the
acquisition, transmission, broadcast, production and other provision of
programming relating thereto and the manufacturing, distribution and financing
of equipment (including consumer electronic equipment) relating thereto.

 

“Permitted Holder”
means each of (a) Liberty Group, (b) Parent and (c) any other
Person, directly or indirectly, controlled by any of the foregoing.

 

“Permitted Investments”
means:

 

(a)                                  Investments in the Company
or in a Restricted Subsidiary;

 

12

 

(b)                                 Investments in Cash
Equivalents and Marketable Securities;

 

(c)                                  any guarantee permitted by Section 4.09
hereof;

 

(d)                                 Investments by the Company
or any of its Subsidiaries in a Person if, as a result of such Investment:  (i) such Person becomes a Wholly Owned
Restricted Subsidiary and becomes a Guarantor; provided
that to the extent such Person is subject to any instrument governing Acquired
Debt, as in effect at the time of acquisition thereof, that prohibits such
Person from issuing a Guarantee, such Person shall not be required to become a
Guarantor to satisfy the requirements of this clause (d)(i), or (ii) such
Person is merged, consolidated or amalgamated with or into, or transfers or
conveys substantially all of its assets to, or is liquidated into, the Company
or a Wholly Owned Restricted Subsidiary that is a Guarantor; provided that if at any time a Restricted Subsidiary shall
cease to be a Subsidiary of the Company, the Company shall be deemed to have
made a Restricted Investment in the amount of the Company’s remaining
investment, if any, in such former Subsidiary;

 

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

 

(f)                                    loans and advances to
subscribers or distributors of the Company’s products in the ordinary course of
business;

 

(g)                                 Investments in stock,
obligations or securities received in lieu of fees for launching programming
channels in the ordinary course of business;

 

(h)                                 Investments in any Person to
the extent such Investment represents the non-cash portion of the consideration
received for an Asset Sale that was made pursuant to and in compliance with Section 4.10
hereof;

 

(i)                                     loans or advances or other
similar transactions with suppliers or purchasers or sellers of goods or
services, in each case, in the ordinary course of business;

 

(j)                                     Investments in Permitted
Joint Ventures in an amount not to exceed $500.0 million outstanding at any
time for all such Investments made after the Issue Date; and

 

(k)                                  any Investment by the
Company or any Restricted Subsidiary in a Receivables Subsidiary or any
Investment by a Receivables Subsidiary in any other Person in connection with a
Qualified Receivables Transaction, so long as any Investment in a Receivables
Subsidiary is in the form of a Purchase Money Note or an Investment in Capital
Stock.

 

“Permitted Joint Ventures”
means any Person, other than an individual or a Subsidiary of the Company, (i) in
which the Company or a Restricted Subsidiary of the Company holds or acquires
an ownership interest (whether by way of Capital Stock or otherwise) and (ii) which
is engaged in or intends to pursue a Permitted Business.

 

13

 

“Permitted Liens”
means:

 

(a)                                  Liens securing the Notes and
Liens securing any Guarantee;

 

(b)                                 Liens securing any
Indebtedness (and other Obligations arising under the documentation governing
such Indebtedness) permitted by Section 4.09 hereof; provided
that any such Lien, taken together with all other Liens incurred in reliance on
this clause (b), shall not secure Indebtedness in a principal amount at the
time such Lien is incurred exceeding the greater of (x) the product of 4.5
times the Trailing Cash Flow Amount at such time and (y) the sum of the
amount of Indebtedness permitted by clauses (3) and (12) of Section 4.09(b) hereof;

 

(c)                                  Liens securing Purchase
Money Indebtedness; provided that
such Indebtedness was permitted to be incurred by the terms hereof and such
Liens do not extend to any assets of the Company or its Restricted Subsidiaries
other than the assets so acquired;

 

(d)                                 Liens securing Indebtedness
the proceeds of which are used to develop, construct or launch any satellites
other than the Existing Satellites; provided that
such Indebtedness was permitted to be incurred by the terms of this Indenture
and such Liens do not extend to any assets of the Company or its Restricted
Subsidiaries other than such satellites being developed, constructed, launched
or insured, and to the related licenses, permits and construction, launch and
TT&C contracts;

 

(e)                                  Liens on orbital slots,
licenses and other assets and rights of the Company; provided
that such orbital slots, licenses and other assets and rights relate solely to
the satellites referred to in clause (d) of this definition;

 

(f)                                    Liens on property of a
Person existing at the time such Person is merged into or consolidated with the
Company or any of its Restricted Subsidiaries; provided
that such Liens were not incurred in connection with, or in contemplation of,
such merger or consolidation, other than in the ordinary course of business;

 

(g)                                 Liens on property of an
Unrestricted Subsidiary at the time that it is designated as a Restricted
Subsidiary pursuant to the definition of “Unrestricted Subsidiary”; provided that such Liens were not incurred in connection
with, or contemplation of, such designation;

 

(h)                                 Liens on property existing
at the time of acquisition thereof by the Company or any Restricted Subsidiary
of the Company; provided that such Liens were not
incurred in connection with, or in contemplation of, such acquisition and do
not extend to any assets of the Company or any of its Restricted Subsidiaries
other than the property so acquired;

 

(i)                                     Liens to secure the
performance of statutory obligations, surety or appeal bonds or performance
bonds, or landlords’, carriers’, warehousemen’s, mechanics’, suppliers’,
materialmen’s or other like Liens, in any case incurred in the ordinary course
of business and with respect to amounts not yet delinquent or being contested
in good faith by appropriate process of law, if a reserve or other appropriate
provision, if any, as is required by GAAP shall have been made therefor;

 

14

 

(j)                                     Liens existing on the Issue
Date;

 

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

 

(l)                                     Liens securing Indebtedness
permitted under Section 4.09(b)(11); provided that
such Liens shall not extend to assets other than the assets that secure such Indebtedness
being refinanced;

 

(m)                               any interest or title of a
lessor under any Capital Lease Obligations; provided that
such Capital Lease Obligation is permitted under the other provisions of this
Indenture;

 

(n)                                 Liens on the Capital Stock
of a Receivables Subsidiary and accounts receivable and related assets
described in the definition of Qualified Receivables Transaction, in each case,
incurred in connection with a Qualified Receivables Transaction;

 

(o)                                 Liens (other than Liens
created or imposed under ERISA) incurred or deposits made by the Company or any
of its Restricted Subsidiaries in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other types of social
security, or to secure the performance of tenders, statutory obligations, bids,
leases, government contracts, performance and return-of-money bonds and other
similar obligations (exclusive of obligations for the payment of borrowed
money);

 

(p)                                 easements, rights-of-way,
covenants, restrictions (including zoning restrictions), minor defects or
irregularities in title and other similar charges or encumbrances not, in any
material respect, impairing the use of the encumbered property for its intended
purposes;

 

(q)                                 licenses, sublicenses,
leases or subleases granted to others not interfering in any material respect
with the business of the Company or its Restricted Subsidiaries;

 

(r)                                    Liens in favor of customs
and revenue authorities arising as a matter of law to secure payment of customs
duties in connection with the importation of goods and Liens deemed to exist in
connection with Investments in repurchase agreements that constitute Permitted
Investments;

 

(s)                                  normal and customary rights
of setoff upon deposits of cash in favor of banks or other depository
institutions;

 

(t)                                    Liens of a collection bank
arising under Section 4-210 of the Uniform Commercial Code on items in the
course of collection;

 

15

 

(u)                                 Liens in favor of or by a
Financing Subsidiary on the Capital Stock of such Financing Subsidiary or the
customer premise and receiving equipment, accounts receivables and related
assets associated with such equipment;

 

(v)                                 Liens not provided for in
clauses (a) through (u) above securing Indebtedness incurred in
compliance with the terms hereof so long as the Notes are secured by the assets
subject to such Liens on an equal and ratable basis or on a basis prior to such
Liens; provided that to the extent that such
Lien secured Indebtedness that is subordinated to the Notes, such Lien shall be
subordinated to and be later in priority than the Notes on the same basis; and

 

(w)                               extensions, renewals or
refundings of any Liens referred to in clauses (a) through (u) above;
provided that any such extension,
renewal or refunding does not extend to any assets or secure any Indebtedness
not securing or secured by the Liens being extended, renewed or refinanced.

 

“Person” means
any individual, corporation, partnership, limited liability company, joint
venture, association, joint-stock company, trust or unincorporated organization
(including any subdivision or ongoing business of any such entity or
substantially all of the assets of any such entity, subdivision or business).

 

“Preferred Equity Interest”
in any Person, means an Equity Interest of any class or classes (however
designated) which is preferred as to the payment of dividends or distributions,
or as to the distribution of assets upon any voluntary or involuntary
liquidation or dissolution of such Person, over Equity Interests of any other
class in such Person.

 

 “Private Placement Legend” means the legend set forth in Section 2.01
hereof to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions hereof.

 

“Pro Forma Cost Savings”
means, with respect to any period, the reduction in net costs and related
adjustments that (i) were directly attributable to an acquisition, merger,
consolidation or disposition that occurred during the four-quarter reference
period or subsequent to the four-quarter reference period and on or prior to
the date of determination and calculated on a basis that is consistent with
Regulation S-X under the Securities Act as in effect and applied as of the
Issue Date, (ii) were actually implemented by the business that was the
subject of any such acquisition, merger, consolidation or disposition within 12
months after the date of the acquisition, merger, consolidation or disposition
and prior to the date of determination that are supportable and quantifiable by
the underlying accounting records of such business or (iii) relate to the
business that is the subject of any such acquisition, merger, consolidation or
disposition and that the Company reasonably determines are probable based upon
specifically identifiable actions to be taken within 12 months of the date of
the acquisition, merger, consolidation or disposition and, in the case of each
of (i), (ii) and (iii), are described, as provided below, in an Officers’
Certificate, as if all such reductions in costs had been effected as of the beginning
of such period.  Pro Forma Cost Savings
described above shall be accompanied by an Officers’ Certificate delivered to
the Trustee from the chief financial officer of the Company that outlines the
actions taken or to be taken, the net cost savings achieved or to be achieved
from such actions and that, in the case of clause (iii) above, such
savings have been determined to be probable.

 

16

 

“Purchase Money
Indebtedness” means (i) Indebtedness incurred (within 365 days
of such purchase) to finance the purchase of any assets (including the purchase
of Equity Interests of Persons that are not Affiliates of the Company or the
Guarantors):  (a) to the extent the
amount of Indebtedness thereunder does not exceed 100% of the purchase cost of
such assets; and (b) so long as such Indebtedness is without recourse to
the Company or any of its Restricted Subsidiaries or any of their respective
assets, other than to the assets so purchased; or (ii) Indebtedness which
refinances Indebtedness referred to in clause (i) of this definition; provided that such refinancing satisfies subclauses (a) and
(b) of such clause (i).

 

“Purchase Money Note”
means a promissory note of a Receivable Subsidiary to the Company or any
Restricted Subsidiary, which note must be repaid from cash available to the Receivable
Subsidiary, 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.

 

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

 

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

 

“Rating Agencies”
means:

 

(a)                                  S&P;

 

(b)                                 Moody’s; or

 

(c)                                  if S&P or Moody’s or
both shall not make a rating of the Notes publicly available, a nationally
recognized securities rating agency or agencies, as the case may be, selected
by the Company, which shall be substituted for S&P or Moody’s or both, as
the case may be.

 

“Rating Category”
means:

 

17

 

(a)                                  with respect to S&P, any
of the following categories: BB, B, CCC, CC, C and D (or equivalent successor
categories);

 

(b)                                 with respect to Moody’s, any
of the following categories: Ba, B, Caa, Ca, C and D (or equivalent successor
categories); and

 

(c)                                  the equivalent of any such
category of S&P or Moody’s used by another Rating Agency.

 

In determining whether the rating of the Notes has
decreased by one or more gradation, gradations within Rating Categories (+ and
- for S&P; 1, 2 and 3 for Moody’s; or the equivalent gradations for another
Rating Agency) shall be taken into account (e.g., with respect
to S&P, a decline in a rating from BB+ to BB, as well as from BB- to B+,
will constitute a decrease of one gradation).

 

“Rating Decline”
shall be deemed to occur if, at the time of or in connection with the occurrence
of a Change of Control, the rating of the Notes by either Rating Agency shall
be decreased by one or more gradations (including gradations within Rating
Categories as well as between Rating Categories), and such decrease is directly
attributable, in whole or in part, to such Change of Control.

 

“Receivable Fees”
means distributions or payments made directly or by means of discounts with
respect to any participation interest issued or sold in connection with, and
other fees paid to a Person that is not a Restricted Subsidiary in connection
with, any Qualified Receivables Financing.

 

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

 

“Receivables Subsidiary”
means a Subsidiary of the Company:

 

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

 

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

 

(3)                                  no portion of the
Indebtedness or any other obligation (contingent or otherwise) of which (a) is
at any time guaranteed by the Company or any Restricted Subsidiary (excluding
guarantees of obligations (other than any guarantee of Indebtedness) pursuant
to Standard Securitization Undertakings), (b) is at any time recourse to
or obligates the Company or any Restricted Subsidiary in any way, other than
pursuant to Standard

 

18

 

Securitization Undertakings
or (c) subjects any asset of the Company or any other Restricted
Subsidiary, directly or indirectly, contingently or otherwise, to the
satisfaction thereof, other than pursuant to Standard Securitization
Undertakings (such Indebtedness, “Non-Recourse Receivables
Subsidiary Indebtedness”);

 

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

 

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

 

“Registration Rights
Agreement” means the Registration Rights Agreement for the Initial
Notes, dated as of May 14, 2008, by and among the Issuers, the Guarantors
and the Initial Purchasers, as such agreement may be amended, modified or
supplemented from time to time.

 

“Regulation S”
means Regulation S promulgated under the Securities Act.

 

“Regulation S Global Note”
means a Global Note bearing the Private Placement Legend and deposited with or
on behalf of the Depositary and registered in the name of the Depositary or its
nominee, issued in a denomination equal to the outstanding principal amount of
the Notes initially sold in reliance on Rule 903 of Regulation S.

 

“Responsible Officer,”
when used with respect to the Trustee, means any officer within the Corporate
Trust Administration of the Trustee (or any successor group of the Trustee) or
any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the
administration of this Indenture.

 

“Restricted Definitive Note”
means a Definitive Note bearing the Private Placement Legend.

 

“Restricted Global Note”
means a Global Note bearing the Private Placement Legend.

 

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

 

“Restricted Period”
means the 40-day distribution compliance period as defined in Regulation S.

 

19

 

“Restricted Subsidiary”
or “Restricted Subsidiaries” means any
corporation, limited liability company, association or other business entity of
which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by the Company or one or more Subsidiaries of the
Company or a combination thereof, other than Unrestricted Subsidiaries.

 

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

 

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

 

“Rule 903”
means Rule 903 promulgated under the Securities Act.

 

“Rule 904”
means Rule 904 promulgated under the Securities Act.

 

“S&P” means
Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.,
and its subsidiaries.

 

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

 

“Senior Secured Credit
Facility” means any credit agreement to which the Company and/or one
or more of its Restricted Subsidiaries is party from time to time including without
limitation the credit agreement dated as of April 13, 2005 by and among
the Company, as borrower, the lenders party thereto from time to time, Bank of
America N.A., as administrative agent, and JPMorgan Chase Bank, N.A., as
syndication agent, together with the related documents thereto (including,
without limitation, any guarantee agreements and security documents), 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 exchanging, extending the maturity of, refinancing, renewing,
replacing, substituting or otherwise restructuring, whether in the bank or debt
capital markets (or combination thereof) (including increasing the amount of
available borrowings thereunder (provided that
such increase in borrowings is permitted by Section 4.09) or adding
Subsidiaries as additional borrowers or guarantors thereunder) all or any
portion of the Indebtedness under such agreement or any successor or
replacement agreement and whether by the same or any other agent, lender or
group of lenders.

 

“Shelf Registration
Statement” means the Shelf Registration Statement as defined in the
Registration Rights Agreement.

 

“Significant Subsidiary”
means any Subsidiary that would be a “significant subsidiary” as defined in Article 1,
Rule 1-02 of Regulation S-X promulgated pursuant to the Securities Act, as
such regulation is in effect on the Issue Date; provided,
however, that neither a Receivables Subsidiary
nor a Financing Subsidiary shall be considered to be a “Significant Subsidiary.”

 

“Specified Affiliate
Payments” means, to the extent constituting a Restricted Payment,
amounts paid by the Company to Parent or any other Person with which the
Company is included in a consolidated tax return equal to the amount of
federal, state and local income taxes payable in respect of the income of the Company
and its Subsidiaries, including without limitation any payments made in
accordance with tax allocation agreements between the Company and Parent in
effect on the Issue Date.

 

20

 

“Standard Securitization
Undertakings” means representations, warranties, covenants,
indemnities and guarantees of performance entered into by the Company or any
Restricted Subsidiary which are reasonably customary in an accounts receivable
or equipment lease financing securitization transaction, including, without
limitation, those relating to the servicing of the assets of a Receivables
Subsidiary or a Financing Subsidiary, it being understood that any Receivables
Repurchase Obligation which is customary for off-balance sheet receivables
financing shall be deemed to be a Standard Securitization Undertaking.

 

“Subsidiary” or “Subsidiaries” means, with respect to any Person, any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers
or trustees thereof is at the time owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of such Person or a
combination thereof.

 

“TIA” means the
Trust Indenture Act of 1939 as in effect on the date hereof.

 

“Trailing Cash Flow Amount”
means the Company’s Consolidated Cash Flow during the most recent four fiscal
quarters for which financial statements are available; provided
that Consolidated Cash Flow shall be calculated giving pro forma effect to any
acquisitions or Asset Sales or other dispositions of assets, including any Pro
Forma Cost Savings, as if the same had occurred at the beginning of the
applicable period.

 

“Treasury Rate”
means, at the time of computation, the yield to maturity of United States
Treasury Securities with a constant maturity (as compiled and published in the
most recent Federal Reserve Statistical Release H.15(519) which has become
publicly available at least two Business Days prior to the redemption date or,
if such Statistical Release is no longer published, any publicly available
source of similar market data) most nearly equal to the period from the
redemption date to May 15, 2012; provided, however, that if the period from the redemption date to May 15,
2012 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 May 15,
2012 is less than one year, the weekly average yield on actually traded United
States Treasury Securities adjusted to a constant maturity of one year shall be
used.

 

“Trustee” means
the party named as such above until a successor replaces it in accordance with the
applicable provisions hereof and thereafter means the successor serving hereunder.

 

“TT&C” means
telemetry, tracking and control.

 

“Unrestricted Definitive
Note” means one or more Definitive Notes that do not bear and are
not required to bear the Private Placement Legend.

 

21

 

“Unrestricted Global Note”
means a permanent Global Note substantially in the form of Exhibit A
attached hereto that bears the Global Note Legend and that has the “Schedule of
Exchanges of Interests in the Global Note” attached thereto, and that is deposited
with or on behalf of and registered in the name of the Depositary, representing
Notes that do not bear the Private Placement Legend.

 

“Unrestricted Subsidiary”
or “Unrestricted Subsidiaries” means:  (A) RSG Resources Supply GmbH; (B) any
Subsidiary designated as an Unrestricted Subsidiary in a resolution of the
Company’s Board of Directors in accordance with the instructions set forth
below; and (C) any Subsidiary of an Unrestricted Subsidiary.

 

The Company’s Board of Directors may designate any
Subsidiary (including any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary so long as:

 

(a)                                 no portion of the
Indebtedness or any other obligation (contingent or otherwise) of which,
immediately after such designation:  (i) is
guaranteed by the Company or any other Subsidiary of the Company (other than
another Unrestricted Subsidiary); (ii) is recourse to or obligates the
Company or any other Subsidiary of the Company (other than another Unrestricted
Subsidiary) in any way; or (iii) subjects any property or asset of the
Company or any other Subsidiary of the Company (other than another Unrestricted
Subsidiary), directly or indirectly, contingently or otherwise, to satisfaction
thereof;

 

(b)                                 with which neither the
Company nor any other Subsidiary of the Company (other than another
Unrestricted Subsidiary) has any contract, agreement, arrangement,
understanding or is subject to an obligation of any kind, written or oral,
other than on terms no less favorable to the Company or such other Subsidiary
than those that might be obtained at the time from Persons who are not
Affiliates of the Company; and

 

(c)                                  with which neither the
Company nor any other Subsidiary of the Company (other than another
Unrestricted Subsidiary) has any obligation: 
(i) to subscribe for additional shares of Capital Stock or other
equity interests therein; or (ii) to maintain or preserve such Subsidiary’s
financial condition or to cause such Subsidiary to achieve certain levels of
operating results.

 

If at any time after the Issue Date the Company
designates an additional Subsidiary as an Unrestricted Subsidiary, the Company
will be deemed to have made a Restricted Investment in an amount equal to the fair
market value (as determined in good faith by the Board of Directors of the
Company evidenced by a resolution of the Board of Directors of the Company and
set forth in an Officers’ Certificate delivered to the Trustee no later than
ten Business Days following a request from the Trustee, which certificate shall
cover the six months preceding the date of the request) of such Subsidiary.  An Unrestricted Subsidiary may be designated
as a Restricted Subsidiary if, at the time of such designation after giving pro
forma effect thereto, no Default or Event of Default shall have occurred or be
continuing.

 

“U.S. Person”
means a U.S. Person as defined in Rule 902(k) under the Securities
Act.

 

22

 

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

 

“Wholly Owned Restricted
Subsidiary” means a Wholly Owned Subsidiary of the Company that is a
Restricted Subsidiary.

 

“Wholly Owned Subsidiary”
means, with respect to any Person, any Subsidiary all of the outstanding voting
stock (other than directors’ qualifying shares) of which is owned by such Person,
directly or indirectly.

 

SECTION 1.02.                                                           Other
Definitions.

 

	
  Term

  	
   

  	
  Defined

  in Section

  
	
  “Affiliate
  Transaction”

  	
   

  	
  4.11

  
	
  “Asset
  Sale”

  	
   

  	
  4.10

  
	
  “Change
  of Control Offer”

  	
   

  	
  4.15

  
	
  “Change
  of Control Payment”

  	
   

  	
  4.15

  
	
  “Change
  of Control Payment Date”

  	
   

  	
  4.15

  
	
  “Company”

  	
   

  	
  Preamble

  
	
  “Covenant
  Defeasance”

  	
   

  	
  8.04

  
	
  “DTC”

  	
   

  	
  2.01(b)

  
	
  “Event
  of Default”

  	
   

  	
  6.01

  
	
  “Excess
  Proceeds”

  	
   

  	
  4.10

  
	
  “Excess
  Proceeds Offer”

  	
   

  	
  3.08(a)

  
	
  “Global
  Note Legend

  	
   

  	
  2.01(b)

  
	
  “incur”

  	
   

  	
  4.09

  
	
  “Issuers”

  	
   

  	
  Preamble

  
	
  “Legal
  Defeasance”

  	
   

  	
  8.03

  
	
  “Offer
  Amount”

  	
   

  	
  3.08(b)

  
	
  “Offer
  Period”

  	
   

  	
  3.08(b)

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  
	
  “Payment
  Default”

  	
   

  	
  6.01(e)

  
	
  “Permitted
  Refinancing”

  	
   

  	
  4.09(b)

  
	
  “Private
  Placement Legend”

  	
   

  	
  2.01(c)

  
	
  “Purchase
  Date”

  	
   

  	
  3.08(b)

  
	
  “Refinancing
  Indebtedness”

  	
   

  	
  4.09(b)(ii)

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Restricted
  Payments”

  	
   

  	
  4.07

  

 

SECTION 1.03.                                                           Incorporation
by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part hereof.

 

23

 

The following TIA terms used in this Indenture have the following
meanings:

 

“indenture securities”
means the Notes;

 

“indenture security holder”
means a Holder of a Note;

 

“indenture to be qualified”
means this Indenture;

 

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

 

“obligor” on the
Notes means each of the Issuers and any successor obligor upon the Notes.

 

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

 

SECTION 1.04.                                                           Rules of
Construction.

 

Unless the context otherwise requires,

 

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

 

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

 

(3)               “or” is not exclusive;

 

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

 

(5)               provisions apply
to successive events and transactions.

 

SECTION 1.05.                                                           Acts of
Holders; Record Dates.

 

(a)                                 Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders shall 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; and, except
as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Issuers. 
Proof of execution of any such instrument or of a writing appointing any
such agent shall be sufficient for any purpose hereof and conclusive in favor
of the Trustee and the Issuers, if made in the manner provided in this Section 1.05.

 

(b)                                 The fact and
date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a
notary public or other officer authorized by law to take acknowledgments of
deeds, certifying that the individual signing such instrument or writing
acknowledged to such Person the execution

 

24

 

thereof. 
Where such execution is by a signer acting in a capacity other than such
Person’s individual capacity, such certificate or affidavit shall also
constitute sufficient proof of such Person’s authority.  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 which the Trustee deems sufficient.

 

(c)                                  The Issuers
may, in the circumstances permitted by the TIA, fix any date as the record date
for the purpose of determining the Holders entitled to give or take any
request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or take
by Holders.  If not set by the Issuers
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, the
record date for any such action or vote shall be the 30th day (or, if later,
the date of the most recent list of Holders required to be provided pursuant to
Section 2.05 hereof) prior to such first solicitation or vote, as the case
may be.  With regard to any record date,
only the Holders on such date (or their duly designated proxies) shall be
entitled to give or take, or vote on, the relevant action.

 

ARTICLE 2

 

THE NOTES

 

SECTION 2.01.                                                           Form and
Dating.

 

(a)                                 The Notes and
the Trustee’s certificate of authentication shall be substantially in the form
of Exhibit A hereto, the terms of which are incorporated in and
made a part hereof.  The Notes may have
notations, legends or endorsements approved as to form by the Issuers, and required
by law, stock exchange rule, agreements to which the Issuers are subject or
usage.  Each Note shall be dated the date
of its authentication.  The Notes shall
be issuable only in denominations of $2,000 and integral multiples of $1,000 in
excess thereof.

 

(b)                                 The Notes shall
initially be issued in the form of one or more Global Notes and the Depository
Trust Company (“DTC”), its nominees, and their
respective successors, shall act as the Depositary with respect thereto.  Each Global Note shall (i) be registered
in the name of the Depositary for such Global Note or the nominee of such
Depositary, (ii) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary’s instructions, and (iii) shall bear a legend
(the “Global Note Legend”) substantially to
the following effect:

 

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

 

25

 

THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY
OR A SUCCESSOR DEPOSITARY.  THIS NOTE IS
NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN
THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE
AS A WHOLE 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) MAY BE REGISTERED EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

(c)                                  Except as
permitted by Section 2.06(g) hereof, any Note not registered under
the Securities Act shall bear the following legend (the “Private
Placement Legend”) on the face thereof:

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY,
BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF IF ANY
INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS ONE YEAR, OR SUCH SHORTER PERIOD OF TIME AS PERMITTED
BY RULE 144(D) UNDER THE SECURITIES ACT, AFTER THE LATER OF THE ORIGINAL
ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE
ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY),
ONLY (A) TO AN ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER”

 

26

 

AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT
TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED
INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER
THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE
SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE
SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT SUBJECT TO THE ISSUERS’ 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.

 

The Trustee must refuse to register any
transfer of a Note bearing the Private Placement Legend that would violate the
restrictions described in such legend.

 

SECTION 2.02.                                                           Form of
Execution and Authentication.

 

An Officer shall sign the Notes for each Issuer by
manual or facsimile signature.

 

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

 

A Note shall not be valid until authenticated by the
manual signature of the Trustee.  The
signature of the Trustee shall be conclusive evidence that the Note has been authenticated
under this Indenture.

 

The Trustee shall authenticate (i) Initial
Notes for original issue on the Issue Date in an aggregate principal amount of
$1.5 billion, (ii) pursuant to the Exchange Offer, Exchange Notes
from time to time for issue only in exchange for a like principal amount of
Initial Notes and (iii) subject to compliance with Section 4.09
hereof, one or more series of Notes for original issue after the Issue Date
(such Notes to be substantially in the form of Exhibit A) in an
unlimited amount (and if issued with a Private Placement Legend, the same
principal amount of Exchange Notes in exchange therefor upon consummation of a
registered exchange offer), in each case upon written orders of the Issuers in
the form of an Officers’ Certificate, which Officers’ Certificate

 

27

 

shall, in the case of any
issuance pursuant to clause (iii) above, certify that such issuance is in
compliance with Section 4.09 hereof. 
In addition, each such Officers’ Certificate shall specify the amount of
Notes to be authenticated, the date on which the Notes are to be authenticated,
whether the Securities are to be Initial Notes, Exchange Notes or Notes issued
under clause (iii) of the preceding sentence and the aggregate principal
amount of Notes outstanding on the date of authentication, and shall further
specify the amount of such Notes to be issued as a Global Note or Definitive
Notes.  Such Notes shall initially be in
the form of one or more Global Notes, which (i) shall represent, and shall
be denominated in an amount equal to the aggregate principal amount of, the
Notes to be issued, (ii) shall be registered in the name of the Depositary
for such Global Note or Notes or its nominee and (iii) shall be delivered
by the Trustee to the Depositary or pursuant to the Depositary’s
instruction.  All Notes issued under this
Indenture shall vote and consent together on all matters as one class and no series
of Notes will have the right to vote or consent as a separate class on any matter.

 

The Trustee may appoint an authenticating agent
acceptable to the Issuers to authenticate Notes.  Unless limited by the terms of such
appointment, 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 the Issuers or any Affiliate of the
Issuers.

 

SECTION 2.03.                                                           Registrar and
Paying Agent.

 

The Issuers shall maintain (i) an office or
agency where Notes may be presented for registration of transfer or for
exchange (including any co-registrar, the “Registrar”) and
(ii) an office or agency where Notes may be presented for payment (“Paying Agent”).  The
Registrar shall keep a register of the Notes and of their transfer and
exchange.  The Issuers may appoint one or
more co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent.  The Issuers may
change any Paying Agent, Registrar or co-registrar without prior notice to any
Holder of a Note.  The Issuers shall
notify the Trustee in writing and the Trustee shall notify the Holders of the
Notes of the name and address of any Agent not a party to this Indenture.  The Issuers may act as Paying Agent,
Registrar or co-registrar.  The Issuers
shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, which shall incorporate the provisions of the TIA.  The agreement shall implement the provisions
hereof that relate to such Agent.  The
Issuers shall notify the Trustee in writing of the name and address of any such
Agent.  If the Issuers fail to maintain a
Registrar or Paying Agent, or fail to give the foregoing notice, the Trustee shall
act, at the written direction of the Issuers, as such, and shall be entitled to
appropriate compensation in accordance with Section 7.07 hereof.

 

The Issuers initially appoint the Trustee as
Registrar, Paying Agent and agent for service of notices and demands in
connection with the Notes.

 

SECTION 2.04.                                                           Paying Agent To
Hold Money in Trust.

 

The Issuers shall require each Paying Agent other
than the Trustee to agree in writing that the Paying Agent shall hold in trust
for the benefit of the Holders of the Notes or the Trustee all money held by
the Paying Agent for the payment of principal of, premium, if any, and interest
on the Notes, and shall notify the Trustee in writing of any Default by the
Issuers in making any

 

28

 

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 Issuers at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than an Issuer) shall have no further liability for the money
delivered to the Trustee.  If an Issuer
acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of the Holders of the Notes all money held by them as Paying Agent.

 

SECTION 2.05.                                                           Lists of
Holders of the Notes.

 

The Trustee shall preserve in as current a form as
is reasonably practicable the most recent list available to it of the names and
addresses of Holders of the Notes and shall otherwise comply with TIA §
312(a).  If the Trustee is not the
Registrar, the Issuers shall furnish to the Trustee at least seven Business
Days before each interest payment date and at such other times as the Trustee
may request in writing a list in such form and as of such date as the Trustee
may reasonably require of the names and addresses of Holders of the Notes,
including the aggregate principal amount of the Notes held by each thereof, and
the Issuers shall otherwise comply with TIA § 312(a).

 

SECTION 2.06.                                                           Transfer and
Exchange.

 

(a)                                 Transfer
and Exchange of Global Notes.  A Global Note
may not be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.  Beneficial interests in Global Notes will be
exchanged by the Issuers for Definitive Notes, subject to any applicable laws,
if (i) requested by a Holder of a beneficial ownership in the Global Notes
or (ii) the Issuers deliver to the Trustee notice from the Depositary that
it is unwilling or unable to continue to act as Depositary and a successor
Depositary is not appointed by the Issuers within 90 days after the date of
such written notice from the Depositary. 
In any such case, the Issuers will notify the Trustee in writing that,
upon surrender by the Direct Participants and Indirect Participants of their
interest in such Global Note, Certificated Notes will be issued to each Person
that such Direct Participants and Indirect Participants and DTC identify as
being the beneficial owner of the related Notes.  Global Notes also may be exchanged or
replaced, in whole or in part, as provided in Sections 2.07 and 2.10
hereof.  Every Note authenticated and
delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall
be authenticated and delivered in the form of, and shall be, a Global
Note.  A Global Note may not be exchanged
for another Note other than as provided in this Section 2.06.  However, beneficial interests in a Global
Note may be transferred and exchanged as provided in paragraph (b), (c) or
(f) below.

 

(b)                                 Transfer
and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes shall be effected through the Depositary, in
accordance with the provisions hereof and the Applicable Procedures.  Beneficial interests in the Restricted Global
Notes shall be subject to restrictions on transfer comparable to those set
forth in this Indenture to the extent required by the Securities Act.  Transfers of beneficial interests in the
Global Notes also shall require compliance with either subparagraph (i) or
(ii) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable:

 

29

 

(i)                  Transfer
of Beneficial Interests in the Same Global Note.  Beneficial interests in any Restricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided, however, that prior to the expiration of the
Restricted Period, no transfer of beneficial interests in the Regulation S
Global Note may be made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser) unless permitted by applicable
law and made in compliance with subparagraphs (ii) and (iii) below.  Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note.  No written orders or instructions shall be
required to be delivered to the Registrar to effect the transfers described in
this subparagraph (i) unless specifically stated above.

 

(ii)               All
Other Transfers and Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to subparagraph (i) above,
the transferor of such beneficial interest must deliver to the Registrar either
(A) (1) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures directing
the Depositary to credit or cause to be credited a beneficial interest in
another Global Note in an amount equal to the beneficial interest to be
transferred or exchanged and (2) instructions given in accordance with the
Applicable Procedures containing information regarding the Participant account
to be credited with such increase or, (B) (1) if Definitive Notes are
at such time permitted to be issued pursuant to this Indenture, a written order
from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to cause to
be issued a Definitive Note in an amount equal to the beneficial interest to be
transferred or exchanged and (2) instructions given by the Depositary to
the Registrar containing information regarding the Person in whose name such
Definitive Note shall be registered to effect the transfer or exchange referred
to in (1) above.  Upon consummation
of an Exchange Offer by the Issuers in accordance with paragraph (f) below,
the requirements of this subparagraph (ii) shall be deemed to have been
satisfied upon receipt by the Registrar of the instructions contained in the
Letter of Transmittal delivered by the Holder of such beneficial interests in
the Restricted Global Notes.  Upon
satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Indenture and the Notes or
otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to paragraph (h) below.

 

(iii)            Transfer
of Beneficial Interests to Another Restricted Global Note.  A beneficial interest in any Restricted
Global Note may be transferred to a Person who takes delivery thereof in the
form of a beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of subparagraph (ii) above and the
Registrar receives the following:

 

(A)                               if the
transferee will take delivery in the form of a beneficial interest in the 144A
Global Note, then the transferor must deliver a certificate in the form of Exhibit C
hereto, including the certifications in item (1) thereof; and

 

30

 

(B)                                if the transferee will
take delivery in the form of a beneficial interest in the Regulation S Global
Note, then the transferor must deliver a certificate in the form of Exhibit C
hereto, including the certifications in item (2) thereof.

 

(iv)                              Transfer and
Exchange of Beneficial Interests in a Restricted Global Note for Beneficial
Interests in an Unrestricted Global Note.  A beneficial interest in any Restricted
Global Note may be exchanged by any Holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note if
the exchange or transfer complies with the requirements of subparagraph (ii) above
and

 

(A)                              such exchange or transfer
is effected pursuant to the Exchange Offer in accordance with the Registration
Rights Agreement and the Holder of the beneficial interest to be transferred,
in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a
broker-dealer, (2) a Person participating in the distribution of the Exchange
Notes or (3) a Person who is an “affiliate” (as defined in Rule 144)
of the Issuers;

 

(B)                                such transfer is
effected pursuant to a Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)                                such transfer is
effected by a Broker-Dealer pursuant to an Exchange Offer Registration
Statement in accordance with the Registration Rights Agreement; or

 

(D)                               the Registrar receives
the following:

 

(y)                                 if
the Holder of such beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a beneficial interest in an Unrestricted
Global Note, a certificate from such Holder in the form of Exhibit D
hereto, including the certifications in item (1)(a) thereof, or

 

(z)                                   if
the Holder of such beneficial interest in a Restricted Global Note proposes to
transfer such beneficial interest to a Person who shall take delivery thereof
in the form of a beneficial interest in an Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto,
including the certifications in item (4) thereof;

 

and, in each such case set forth in this
subparagraph (D), 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 such exchange or transfer is in compliance with
the Securities Act and that the restrictions on transfer contained in this Indenture
and in the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act.

 

31

 

If any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted Global Note has not yet been issued, the Issuers
shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in
an aggregate principal amount equal to the aggregate principal amount of
beneficial interests transferred pursuant to subparagraph (B) or (D) above.

 

Beneficial interests in an Unrestricted Global Note cannot be exchanged
for, or transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Restricted Global Note.

 

(c)                                  Transfer or Exchange of Beneficial Interests for Definitive Notes.

 

(i)                          Beneficial
Interests in Restricted Global Notes to Restricted Definitive Notes.  If any Holder of a beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a Restricted
Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Restricted Definitive Note, then, upon
receipt by the Registrar of the following documentation:

 

(A)                    if the Holder of such beneficial
interest in a Restricted Global Note proposes to exchange such beneficial
interest for a Restricted Definitive Note, a certificate from such Holder in the
form of Exhibit D hereto, including the certifications in item (2)(a) thereof;

 

(B)                      if such beneficial interest is
being transferred to a QIB in accordance with Rule 144A under the
Securities Act, a certificate to the effect set forth in Exhibit C
hereto, including the certifications in item (1) thereof;

 

(C)                      if such beneficial interest is
being transferred to a Non-U.S. Person in an offshore transaction in accordance
with Rule 903 or Rule 904 under the Securities Act, a certificate to
the effect set forth in Exhibit C hereto, including the
certifications in item (2) thereof;

 

(D)                     if such beneficial interest is
being transferred pursuant to an exemption from the registration requirements
of the Securities Act in accordance with Rule 144 under the Securities
Act, a certificate to the effect set forth in Exhibit C hereto,
including the certifications in item (3)(a) thereof;

 

(E)                       if such beneficial interest is
being transferred to the Issuers or any of their Subsidiaries, a certificate to
the effect set forth in Exhibit C hereto, including the certifications
in item (3)(b) thereof; or

 

(F)                       if such beneficial interest is
being transferred pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in Exhibit C
hereto, including the certifications in item (3)(c) thereof,

 

the Trustee shall cause the aggregate principal amount of the
applicable Global Note to be reduced accordingly pursuant to paragraph (h) below,
and the Issuers shall execute and the Trustee shall authenticate and deliver to
the Person designated in the instructions a Restricted Definitive

 

32

 

Note in the appropriate principal amount.  Any Restricted Definitive Note issued in exchange
for a beneficial interest in a Restricted Global Note pursuant to this
paragraph (c) shall be registered in such name or names and in such
authorized denomination or denominations as the Holder of such beneficial
interest shall instruct the Registrar through instructions from the Depositary
and the Participant or Indirect Participant. 
The Trustee shall deliver such Restricted Definitive Notes to the
Persons in whose names such Notes are so registered.  Any Restricted Definitive Note issued in
exchange for a beneficial interest in a Restricted Global Note pursuant to this
subparagraph (i) shall bear the Private Placement Legend and shall be
subject to all restrictions on transfer contained therein.

 

(ii)                       Beneficial
Interests in Restricted Global Notes to Unrestricted Definitive Notes.  A Holder of a beneficial interest in a
Restricted Global Note may exchange such beneficial interest for an
Unrestricted Definitive Note or may transfer such beneficial interest to a Person
who takes delivery thereof in the form of an Unrestricted Definitive Note only
if

 

(A)       such exchange or transfer
is effected pursuant to an Exchange Offer in accordance with the Registration
Rights Agreement and the Holder of such beneficial interest, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a broker-dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a
Person who is an “affiliate” (as defined in Rule 144) of the Issuers;

 

(B)         such transfer is effected
pursuant to a Shelf Registration Statement in accordance with the Registration
Rights Agreement;

 

(C)         such transfer is effected
by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in
accordance with the Registration Rights Agreement; or

 

(D)        the Registrar receives the
following:

 

(y)                         if the
Holder of such beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Definitive Note that does not bear the
Private Placement Legend, a certificate from such Holder in the form of Exhibit D
hereto, including the certifications in item (1)(b) thereof; or

 

(z)                           if the
Holder of such beneficial interest in a Restricted Global Note proposes to
transfer such beneficial interest to a Person who shall take delivery thereof
in the form of a Definitive Note that does not bear the Private Placement
Legend, a certificate from such Holder in the form of Exhibit C
hereto, including the certifications in item (4) thereof,

 

and, in each such case set forth in this
subparagraph (D), 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 such exchange or transfer is in compliance with
the Securities Act and that the restrictions on transfer contained in this
Indenture and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

 

33

 

If any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted Global Note has not yet been issued, the Issuers
shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in
an aggregate principal amount equal to the aggregate principal amount of
beneficial interests transferred pursuant to subparagraph (B) or (D) above.

 

(iii)                    Beneficial Interests in
Unrestricted Global Notes to Unrestricted Definitive Notes.  If any Holder of a beneficial interest in an
Unrestricted Global Note proposes to exchange such beneficial interest for a
Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Definitive Note, then, upon satisfaction of
the conditions set forth in subparagraph (b)(ii) above, the Trustee shall
cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to paragraph (h) below, and the Issuers shall
execute and the Trustee shall authenticate and deliver to the Person designated
in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a
beneficial interest pursuant to this subparagraph (c)(iii) shall be
registered in such name or names and in such authorized denomination or
denominations as the Holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
deliver such Definitive Notes to the Persons in whose names such Notes are so
registered.  Any Definitive Note issued
in exchange for a beneficial interest pursuant to this subparagraph (c)(iii) shall
not bear the Private Placement Legend.

 

(d)                                 Transfer and Exchange of Definitive Notes for Beneficial Interests.

 

(i)                          Restricted
Definitive Notes to Beneficial Interests in Restricted Global Notes.  If any Holder of a Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a Restricted Global
Note or to transfer such Restricted Definitive Notes to a Person who takes
delivery thereof in the form of a beneficial interest in a Restricted Global
Note, then, upon receipt by the Registrar of the following documentation:

 

(A)                    if the Holder of such Restricted
Definitive Note proposes to exchange such Note for a beneficial interest in a
Restricted Global Note, a certificate from such Holder in the form of Exhibit D
hereto, including the certifications in item (2)(b) thereof;

 

(B)                      if such Restricted Definitive
Note is being transferred to a QIB in accordance with Rule 144A under the
Securities Act, a certificate to the effect set forth in Exhibit C
hereto, including the certifications in item (1) thereof; or

 

(C)                      if such Restricted Definitive
Note is being transferred to a Non-U.S. Person in an offshore transaction in
accordance with Rule 903 or Rule 904 under the Securities Act, a
certificate to the effect set forth in Exhibit C hereto, including
the certifications in item (2) thereof,

 

the Trustee shall cancel the Restricted Definitive Note, increase or
cause to be increased the aggregate principal amount of, in the case of clause (A) above,
the appropriate Restricted Global Note, in the case of clause (B) above,
the 144A Global Note, and in the case of clause (C) above, the Regulation
S Global Note.

 

34

 

(ii)                       Restricted
Definitive Notes to Beneficial Interests in Unrestricted Global Notes.  A Holder of a Restricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted Global Note or
transfer such Restricted Definitive Note to a Person who takes delivery thereof
in the form of a beneficial interest in an Unrestricted Global Note only if

 

(A)                    such exchange or transfer is
effected pursuant to the Exchange Offer in accordance with the Registration
Rights Agreement and the Holder, in the case of an exchange, or the transferee,
in the case of a transfer, certifies in the applicable Letter of Transmittal
that it is not (1) a broker-dealer, (2) a Person participating in the
distribution of the Exchange Notes or (3) a Person who is an “affiliate”
(as defined in Rule 144) of the Issuers;

 

(B)                      such transfer is effected
pursuant to a Shelf Registration Statement in accordance with the Registration
Rights Agreement;

 

(C)                      such transfer is effected by a
Broker-Dealer pursuant to an Exchange Offer Registration Statement in
accordance with the Registration Rights Agreement; or

 

(D)                     the Registrar receives the
following:

 

(y)                                           if
the Holder of such Definitive Notes proposes to exchange such Notes for a
beneficial interest in the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit D hereto, including the certifications
in item (1)(c) thereof; or

 

(z)                                             if
the Holder of such Definitive Notes proposes to transfer such Notes to a Person
who shall take delivery thereof in the form of a beneficial interest in the
Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C
hereto, including the certifications in item (4) thereof;

 

and, in each such case set forth in this
subparagraph (D), 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 such exchange or transfer is in compliance with
the Securities Act and that the restrictions on transfer contained in this
Indenture and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

 

Upon satisfaction of the conditions of any of the subparagraphs in this
subparagraph (d)(ii), the Trustee shall cancel the Definitive Notes and
increase or cause to be increased the aggregate principal amount of the Unrestricted
Global Note.

 

(iii)                    Unrestricted Definitive
Notes to Beneficial Interests in Unrestricted Global Notes.  A Holder of an Unrestricted Definitive Note
may exchange such Note for a beneficial interest in an Unrestricted Global Note
or transfer such Unrestricted Definitive Notes to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note at
any time.  Upon receipt of a request for
such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted
Definitive Note and increase or cause to be increased the aggregate principal
amount of one of the Unrestricted Global Notes.

 

35

 

If any such exchange or transfer from an Unrestricted Definitive Note
or a Restricted Definitive Note, as the case may be, to a beneficial interest
is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above
at a time when an Unrestricted Global Note has not yet been issued, the Issuers
shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in
an aggregate principal amount equal to the principal amount of Unrestricted
Definitive Notes or Restricted Definitive Notes, as the case may be, so
transferred.

 

(e)                                  Transfer and Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes
and such Holder’s compliance with the provisions of this paragraph (e), the
Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of transfer
in form satisfactory to the Registrar duly executed by such Holder or by its
attorney, duly authorized in writing.  In
addition, the requesting Holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions
of this paragraph (e).

 

(i)                                     Restricted Definitive Notes to Restricted Definitive Notes.  Any Restricted Definitive Note may be
transferred to and registered in the name of Persons who take delivery thereof
in the form of a Restricted Definitive Note if the Registrar receives the following:

 

(A)                              if the transfer will be
made pursuant to Rule 144A under the Securities Act, then the transferor
must deliver a certificate in the form of Exhibit C hereto,
including the certifications in item (1) thereof;

 

(B)                                if the transfer will be
made pursuant to Rule 903 or Rule 904, then the transferor must
deliver a certificate in the form of Exhibit C hereto, including
the certifications in item (2) thereof; and

 

(C)                                if the transfer will be
made pursuant to any other exemption from the registration requirements of the
Securities Act, then the transferor must deliver a certificate in the form of Exhibit C
hereto, including, if the Registrar so requests, a certification or Opinion of
Counsel in form reasonably acceptable to the Issuers to the effect that such
transfer is in compliance with the Securities Act.

 

(ii)                                  Restricted
Definitive Notes to Unrestricted Definitive Notes.  Any Restricted Definitive Note may be
exchanged by the Holder thereof for an Unrestricted Definitive Note or
transferred to a Person or Persons who take delivery thereof in the form of an
Unrestricted Definitive Note if

 

(A)                              such exchange or transfer
is effected pursuant to an Exchange Offer in accordance with the Registration
Rights Agreement and the Holder, in the case of an exchange, or the transferee,
in the case of a transfer, certifies in the applicable Letter of Transmittal
that it is not (1) a broker-dealer, (2) a Person participating in the
distribution of the Exchange Notes or (3) a Person who is an “affiliate”
(as defined in Rule 144) of the Issuers;

 

36

 

(B)                                any such transfer is
effected pursuant to a Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)                                any such transfer is
effected by a Broker-Dealer pursuant to an Exchange Offer Registration
Statement in accordance with the Registration Rights Agreement; or

 

(D)                               the Registrar receives
the following:

 

(y)                                 if
the Holder of such Restricted Definitive Notes proposes to exchange such Notes
for an Unrestricted Definitive Note, a certificate from such Holder in the form
of Exhibit D hereto, including the certifications in item (1)(d) thereof;
or

 

(z)                                   if
the Holder of such Restricted Definitive Notes proposes to transfer such Notes
to a Person who shall take delivery thereof in the form of an Unrestricted
Definitive Note, a certificate from such Holder in the form of Exhibit C
hereto, including the certifications in item (4) thereof;

 

and, in each such case set forth in this
subparagraph (D), if the Registrar so requests, an Opinion of Counsel in form
reasonably acceptable to the Issuers to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained in this Indenture and in the Private Placement Legend are no
longer required in order to maintain compliance with the Securities Act.

 

(iii)                               Unrestricted
Definitive Notes to Unrestricted Definitive Notes.  A Holder of Unrestricted Definitive Notes may
transfer such Notes to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note.  Upon
receipt of a request to register such a transfer, the Registrar shall register
the Unrestricted Definitive Notes pursuant to the instructions from the Holder
thereof.

 

(f)                                    Exchange Offer.  Upon
the occurrence of an Exchange Offer in accordance with the Registration Rights
Agreement, the Issuers shall issue and, upon receipt of an Authentication Order
in accordance with Section 2.02 hereof, the Trustee shall authenticate (i) one
or more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Restricted Global Notes
tendered for acceptance by Persons that make the certifications in the
applicable Letters of Transmittal required by Section 2(a) of the
Registration Rights Agreement, and accepted for exchange in an Exchange Offer
and (ii) Definitive Notes in an aggregate principal amount equal to the
principal amount of the Restricted Definitive Notes accepted for exchange in an
Exchange Offer.  Concurrently with the
issuance of such Notes, the Trustee shall cause the aggregate principal amount
of the applicable Restricted Global Notes to be reduced accordingly, and the
Issuers shall execute and the Trustee shall authenticate and deliver to the
Persons designated by the Holders of Restricted Definitive Notes so accepted
Unrestricted Definitive Notes in the appropriate principal amount.

 

37

 

(g)                                 Legends.  The
following legends shall appear on the face of all Global Notes and Definitive
Notes issued under this Indenture unless specifically stated otherwise in the
applicable provisions hereof.

 

(i)                                     Private Placement Legend.

 

(A)                              Except as permitted by
subparagraph (B) below, each Global Note (other than an Unrestricted
Global Note) and each Definitive Note (and all Notes issued in exchange
therefor or substitution thereof) shall bear the Private Placement Legend.

 

(B)                                Notwithstanding the
foregoing, any Global Note or Definitive Note issued pursuant to subparagraphs
(b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) of
this Section 2.06 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement Legend.

 

(ii)                                  Global Note Legend. 
Each Global Note shall bear the Global Note Legend.

 

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

 

(i)                                     General Provisions Relating to Transfers and Exchanges.

 

(i)                                     To permit
registrations of transfers and exchanges, the Issuers shall execute and the
Trustee shall authenticate Global Notes and Definitive Notes upon the Issuers’
order or at the Registrar’s request.

 

(ii)                                  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, but
the Issuers 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, 3.08 and 9.05 hereof).

 

38

 

(iii)                               The Registrar shall not
be required to register the transfer of or exchange any Note selected for
redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part.

 

(iv)                              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 Issuers,
evidencing the same debt, and entitled to the same benefits hereof, as the
Global Notes or Definitive Notes surrendered upon such registration of transfer
or exchange.

 

(v)                                 The Issuers shall not
be required (A) to issue, to register the transfer of or to exchange any
Notes during a period beginning at the opening of business on a Business Day 15
days before the day of any selection of Notes for redemption under Section 3.02
hereof and ending at the close of business on the day of selection or (B) to
register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part.

 

(vi)                              Prior to due presentment
for the registration of a transfer of any Note, the Trustee, any Agent and the
Issuers 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
of and interest on such Notes and for all other purposes, and none of the
Trustee, any Agent or the Issuers shall be affected by notice to the contrary.

 

(vii)                           The Trustee shall
authenticate Global Notes and Definitive Notes in accordance with the
provisions of Section 2.02 hereof.

 

(viii)                        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 facsimile.

 

SECTION 2.07.                                                                 Replacement
Notes.

 

If any mutilated Note is surrendered to the Trustee, or the Issuers and
the Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Note, the Issuers shall issue and the Trustee, upon the written
order of the Issuers signed by two Officers of each Issuer, shall authenticate
a replacement Note if the Trustee’s requirements for replacements of Notes are
met.  If required by the Trustee or the
Issuers, an indemnity bond must be supplied by the Holder that is sufficient in
the judgment of the Trustee and the Issuers to protect the Issuers, the
Trustee, any Agent or any authenticating agent from any loss which any of them
may suffer if a Note is replaced.  The
Issuers and the Trustee may charge for its expenses in replacing a Note.

 

Every replacement Note is a joint and several obligation of the
Issuers.

 

SECTION 2.08.                                                                 Outstanding
Notes.

 

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 and those described in this Section 2.08 as not outstanding.

 

39

 

If a Note is replaced pursuant to Section 2.07 hereof, it ceases
to be outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a protected purchaser.

 

If the principal amount of any Note is considered paid under Section 4.01
hereof, it shall cease to be outstanding and interest on it shall cease to
accrue.

 

Subject to Section 2.09 hereof, a Note does not cease to be
outstanding because the Issuers, a Subsidiary of the Issuers or an Affiliate of
the Issuers holds the Note.

 

SECTION 2.09.                                                                 Treasury
Notes.

 

In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by the
Issuers, any Subsidiary of the Issuers or any Affiliate of the Issuers shall be
considered as though not outstanding, except that for purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Notes which a Responsible Officer knows to be so owned shall
be so considered.  Notwithstanding the
foregoing, Notes that are to be acquired by the Issuers, any Subsidiary of the
Issuers or an Affiliate of the Issuers pursuant to an exchange offer, tender
offer or other agreement shall not be deemed to be owned by the Issuers, a
Subsidiary of the Issuers or an Affiliate of the Issuers until legal title to
such Notes passes to the Issuers, such Subsidiary or such Affiliate, as the
case may be.

 

SECTION 2.10.                                                                 Temporary
Notes.

 

Until definitive Notes are ready for delivery, the Issuers may prepare
and the Trustee shall authenticate temporary Notes.  Temporary Notes shall be substantially in the
form of definitive Notes but may have variations that the Issuers and the
Trustee consider appropriate for temporary Notes.  Without unreasonable delay, the Issuers shall
prepare and the Trustee, upon receipt of the written order of the Issuers
signed by two Officers of the Issuers, shall authenticate definitive Notes in
exchange for temporary Notes.  Until such
exchange, temporary Notes shall be entitled to the same rights, benefits and
privileges as definitive Notes.

 

SECTION 2.11.                                                                 Cancellation.

 

The Issuers 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 shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and shall dispose of all
canceled Notes in its customary manner (subject to the record retention
requirement of the Exchange Act), unless the Issuers direct canceled Notes to
be returned to them.  The Issuers may not
issue new Notes to replace Notes that they have redeemed or paid or that have
been delivered to the Trustee for cancellation. 
All canceled Notes held by the Trustee shall be disposed of and
certification of their disposal delivered to the Issuers upon their request
therefor, unless by a written order, signed by two Officers of the Issuers, the
Issuers shall direct that canceled Notes be returned to them.

 

40

 

SECTION 2.12.                                                           Defaulted
Interest.

 

If the Issuers default in a payment of interest on
the Notes, they 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 of the Notes on a subsequent special record date, which date
shall be at the earliest practicable date but in all events at least five
Business Days prior to the payment date, in each case at the rate provided in
the Notes.  The Issuers shall, with the
consent of the Trustee, fix or cause to be fixed each such special record date
and payment date.  At least 15 days
before the special record date, the Issuers (or the Trustee, in the name of and
at the expense of the Issuers) shall mail to Holders of the Notes a notice that
states the special record date, the related payment date and the amount of such
interest to be paid.

 

SECTION 2.13.                                                           Record Date.

 

The record date for purposes of determining the
identity of Holders of the Notes entitled to vote or consent to any action by
vote or consent authorized or permitted under this Indenture shall be
determined as provided for in TIA § 316(c).

 

SECTION 2.14.                                                           CUSIP Number.

 

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

 

SECTION 2.15.                                                           Joint and
Several Liability.

 

Except as otherwise expressly provided herein, the
Issuers shall be jointly and severally liable for the performance of all
obligations and covenants under this Indenture and the Notes.

 

ARTICLE 3

 

REDEMPTION

 

SECTION 3.01.                                                           Notices to
Trustee.

 

If the Issuers elect to redeem Notes pursuant to the
optional redemption provisions of Section 3.07 hereof, they shall furnish
to the Trustee, at least 35 days (unless a shorter period is acceptable to the
Trustee) but not more than 60 days before a redemption date, an Officers’ Certificate
of the Issuers setting forth (i) the redemption date, (ii) the
principal amount of Notes to be redeemed and (iii) the redemption
price.  If the Issuers are required to
make the redemption pursuant to Section 3.08 hereof, they shall furnish
the Trustee, at least five but not more than ten Business Days before the
applicable purchase date, an Officers’ Certificate of the Issuers setting forth
(i) the purchase date, (ii) the principal amount of Notes offered to
be purchased and (iii) the purchase price.

 

41

 

SECTION 3.02.                                                           Selection of
Notes To Be Redeemed.

 

(a)                                 If less than
all of the Notes are to be redeemed at any time in accordance with Section 3.07
hereof, the selection of Notes for redemption shall be made by the Trustee in
compliance with the requirements of the principal national securities exchange,
if any, on which the Notes are listed, or if the Notes are not so listed on a pro rata basis, or, in the case of a redemption other than
as provided in Section 3.07(b) hereof, by lot or in accordance with
any other method the Trustee deems fair and appropriate; provided
that no Notes with a principal amount of $2,000 or less shall be redeemed in
part.  In the event of partial redemption
by lot, the particular Notes to be redeemed shall be selected, unless otherwise
provided herein, not less than 30 nor more than 60 days prior to the redemption
date by the Trustee from the outstanding Notes not previously called for redemption.

 

(b)                                 The Trustee
shall promptly notify the Issuers in writing of the Notes selected for
redemption and, in the case of any Note selected for partial redemption, the
principal amount thereof to be redeemed. 
Notes and portions of them selected shall be in amounts of $2,000 or
whole multiples of $1,000; except that if all of the Notes of a Holder are to
be redeemed, the entire outstanding amount of Notes held by such Holder, even
if not a multiple of $1,000, shall be redeemed. 
Except as provided in the preceding sentence, provisions hereof that
apply to Notes called for redemption also apply to portions of Notes called for
redemption.

 

SECTION 3.03.                                                           Notice of
Redemption.

 

Subject to the provisions of Section 3.08
hereof, at least 30 days but not more than 60 days before a redemption date, the
Company shall mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed at its registered
address.

 

The notice shall identify the Notes to be redeemed and shall state

 

(i)                          the redemption
date;

 

(ii)                       the redemption
price;

 

(iii)                    if any Note is
being redeemed in part only, the portion of the principal amount of such Note
to be redeemed and that, after the redemption date upon surrender of such Note,
a new Note or Notes in principal amount equal to the unredeemed portion shall
be issued in the name of the Holder thereof upon cancellation of the original
Note;

 

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

 

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

 

(vi)                   that, unless
the Issuers default in making such redemption payment, interest on Notes called
for redemption ceases to accrue on and after the redemption date;

 

42

 

(vii)                the paragraph
of the Notes and/or Section hereof pursuant to which the Notes called for
redemption are being redeemed; and

 

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

 

At the Company’s written request, the Trustee shall
give the notice of redemption in the Company’s name and at its expense; provided that the Company shall have delivered to the Trustee,
at least 35 days (unless a shorter period is acceptable to the Trustee) prior
to the redemption date, an Officers’ Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice
as provided in the preceding paragraph.

 

SECTION 3.04.                                                           Effect of
Notice of Redemption.

 

Once notice of redemption is mailed in accordance
with Section 3.03 hereof, Notes called for redemption become due and
payable on the redemption date at the redemption price.

 

SECTION 3.05.                                                           Deposit of
Redemption Price.

 

On or prior to any redemption date, the Company
shall deposit with the Trustee or with the Paying Agent money sufficient to pay
the redemption price of and accrued interest on all Notes to be redeemed on
that date.  The Trustee or the Paying
Agent shall promptly return to the Company any money deposited with the Trustee
or the Paying Agent by the Company in excess of the amounts necessary to pay
the redemption price of, and accrued interest on, all Notes to be redeemed.

 

On and after the redemption date, if the Company
does not default in the payment of the redemption price, interest shall cease
to accrue on the Notes or the portions of Notes called for redemption.  If a Note is redeemed on or after an interest
record date but on or prior to the related interest payment date, then any
accrued and unpaid interest shall be paid to the Person in whose name such Note
was registered at the close of business on such record date.  If any Note called for redemption shall not
be so paid upon surrender for redemption because of the failure of the Company
to comply with the preceding paragraph, interest shall be paid on the unpaid
principal, from the redemption date until such principal is paid, and to the extent
lawful on any interest not paid on such unpaid principal, in each case at the
rate provided in the Notes.

 

SECTION 3.06.                                                           Notes Redeemed
in Part.

 

Upon surrender and cancellation of a Note that is
redeemed in part, the Issuers shall issue and the Trustee shall authenticate
for the Holder of the Notes at the expense of the Issuers a new Note equal in principal
amount to the unredeemed portion of the Note surrendered.

 

SECTION 3.07.                                                           Optional
Redemption.

 

(a)                                 Except as
provided in paragraphs (b) and (c) below, the Notes will not be redeemable
at the Company’s option prior to May 15, 2012.  Thereafter, the Notes will be subject to redemption
at the option of the Company, in whole or in part, upon not less than 30 nor
more than 60 days’ notice, at the redemption prices (expressed as percentages
of principal amount) set forth

 

43

 

below, together with accrued and unpaid
interest thereon to the applicable redemption date, if redeemed during the
12-month period beginning on May 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2012

  	
   

  	
  103.813

  	
  %

  
	
  2013

  	
   

  	
  101.906

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)                                 Notwithstanding
the foregoing, at any time and from time to time prior to May 15, 2011,
the Company may redeem up to 35% of the aggregate principal amount of the Notes
outstanding at a redemption price equal to 107.625% of the principal amount
thereof on the redemption date, together with accrued and unpaid interest to
such redemption date, with the net cash proceeds of one or more public or
private sales of the Company’s Equity Interests (other than Disqualified Stock)
(including sales to or capital contributions from Parent, regardless of whether
Parent obtains such funds from an offering of its Equity Interests, the
incurrence of Indebtedness or otherwise), other than proceeds from a sale to
the Company or any of its Subsidiaries or any employee benefit plan in which
the Company or any of its Subsidiaries participates; provided
that:  (i) at least 65% in aggregate
principal amount of the Notes originally issued remain outstanding immediately
after the occurrence of such redemption; and (ii) the sale of such Equity
Interests is made in compliance with the terms hereof.

 

(c)                                  In addition, at
any time and from time to time prior to May 15, 2012, the Company may
redeem all or any portion of the Notes outstanding at a redemption price equal
to (i) 100% of the aggregate principal amount of the Notes to be redeemed,
together with accrued and unpaid interest to such redemption date, plus (ii) the
Make Whole Amount.

 

SECTION 3.08.                                                           Excess Proceeds
Offer.

 

(a)                                 When the
cumulative amount of Excess Proceeds that have not been applied in accordance
with Section 4.10 exceeds $100.0 million, the Company shall make an offer
to all Holders of the Notes (an “Excess Proceeds Offer”)
to purchase the maximum principal amount of Notes that may be purchased out of
such Excess Proceeds at an offer price in cash in an amount equal to 100% of
the principal amount thereof, together with accrued and unpaid interest to the
date fixed for the closing of such offer in accordance with the procedures set
forth herein.  To the extent the Company
or a Restricted Subsidiary is required under the terms of Indebtedness of the
Company or such Restricted Subsidiary which is ranked equally with the Notes
with any proceeds which constitute Excess Proceeds under this Indenture, the
Company shall make a pro rata offer to the Holders of all other pari passu Indebtedness (including the Notes) with such
proceeds.  If the aggregate principal
amount of Notes and other pari passu
Indebtedness surrendered by Holders thereof exceeds the amount of such Excess
Proceeds, the Trustee shall select the Notes and other pari passu
Indebtedness to be purchased on a pro rata basis.

 

(b)                                 The Excess
Proceeds Offer shall remain open for a period of 20 Business Days following its
commencement and no longer, except to the extent that a longer period is required
by applicable law (the “Offer Period”).  No later than five Business Days after the termination
of the Offer Period (the “Purchase Date”),
the Company shall purchase the maximum principal

 

44

 

amount of Notes that may be purchased with
such Excess Proceeds (which maximum principal amount of Notes shall be the “Offer Amount”) or, if less than the Offer Amount has been tendered,
all Notes tendered in response to the Excess Proceeds Offer.

 

(c)                                  If the Purchase
Date is on or after an interest record date and on or before the related
interest payment date, any accrued interest shall be paid to the Person in
whose name a Note is registered at the close of business on such record date,
and no additional interest shall be payable to Holders who tender Notes
pursuant to the Excess Proceeds Offer.

 

(d)                                 Upon the
commencement of any Excess Proceeds Offer, the Company shall send, by first
class mail, a notice to each of the Holders of the Notes, with a copy to the
Trustee.  The notice shall contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Excess Proceeds Offer. 
The notice, which shall govern the terms of the Excess Proceeds Offer,
shall state:

 

(i)                          that the Excess
Proceeds Offer is being made pursuant to this Section 3.08 and the length
of time the Excess Proceeds Offer shall remain open;

 

(ii)                       the Offer
Amount, the purchase price and the Purchase Date;

 

(iii)                    that any Note
not tendered or accepted for payment shall continue to accrue interest;

 

(iv)                   that any Note
accepted for payment pursuant to the Excess Proceeds Offer shall cease to
accrue interest after the Purchase Date;

 

(v)                      that Holders
electing to have a Note purchased pursuant to any Excess Proceeds Offer shall
be required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Note completed, to the Company, a depositary,
if appointed by the Company, or a Paying Agent at the address specified in the
notice at least three Business Days before the Purchase Date;

 

(vi)                   that Holders
shall be entitled to withdraw their election if the Company, depositary or
Paying Agent, as the case may be, receives, not later than the expiration of
the Offer Period, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of the Note the Holder
delivered for purchase and a statement that such Holder is unconditionally
withdrawing his election to have the Note purchased;

 

(vii)                that, if the
aggregate principal amount of Notes surrendered by Holders exceeds the Offer
Amount, the Company shall select the Notes to be purchased on a pro rata basis (with such adjustments as may be deemed
appropriate by the Company so that only Notes in denominations of $2,000, or
integral multiples of $1,000 in excess thereof, shall be purchased); and

 

(viii)             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.

 

45

 

(e)                                  On or before
the Purchase Date, the Company shall, to the extent lawful, accept for payment,
on a pro rata basis to the extent necessary,
the Offer Amount of Notes or portions thereof tendered pursuant to the Excess
Proceeds Offer, or if less than the Offer Amount has been tendered, all Notes
or portion thereof tendered, and deliver to the Trustee an Officers’ Certificate
stating that such Notes or portions thereof were accepted for payment by the Company
in accordance with the terms of this Section 3.08.  The Company, Depositary or Paying Agent, as
the case may be, shall promptly (but in any case not later than five days after
the Purchase Date) mail or deliver to each tendering Holder an amount equal to
the purchase price of the Note tendered by such Holder and accepted by the
Company for purchase, and the Company shall promptly issue a new Note, and the
Trustee shall authenticate and mail or deliver such new Note, to such Holder
equal in principal amount to any unpurchased portion of the Note surrendered.  Any Note not so accepted shall be promptly
mailed or delivered by the Company to the Holder thereof.  The Company shall publicly announce the
results of the Excess Proceeds Offer on the Purchase Date.  To the extent that the aggregate principal
amount of Notes tendered pursuant to an Excess Proceeds Offer is less than the
amount of such Excess Proceeds, the Company may use any remaining Excess
Proceeds for general corporate purposes in compliance with the provisions
hereof.  Upon completion of an Excess
Proceeds Offer, the amount of Excess Proceeds shall be reset at zero.

 

(f)                                   Other than as
specifically provided in this Section 3.08, any purchase pursuant to this Section 3.08
shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

 

ARTICLE 4

 

COVENANTS

 

SECTION 4.01.                                                           Payment of
Notes.

 

(a)                                 The Issuers
shall pay or cause to be paid the principal of, 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
either Issuer, holds as of 10:00 a.m. Eastern Time on the due date money
deposited by or on behalf of the Issuers in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and
interest then due.

 

(b)                                 The Issuers
shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue principal at the rate equal to the then
applicable interest rate on the Notes to the extent lawful; they 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.

 

(a)                                 The Issuers
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 exchange and where notices and demands to or
upon the Issuers in

 

46

 

respect of the Notes and this Indenture may
be served.  The Issuers 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 Issuers 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.

 

(b)                                 The Issuers may
also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided,
however, that no such designation or rescission
shall in any manner relieve the Issuers of their obligation to maintain an
office or agency for such purposes.  The
Issuers 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.

 

(c)                                  The Issuers
hereby designate the Corporate Trust Office of the Trustee as one such office
or agency of the Issuers in accordance with Section 2.03 hereof.

 

SECTION 4.03.                                                           Reports.

 

(a)                                 Whether or not
required by the rules and regulations of the Commission, so long as any
Notes are outstanding, the Issuers shall furnish to the Holders of Notes all
quarterly and annual financial information that would be required to be
contained in a filing with the Commission on Forms 10-Q and 10-K if the Issuers
were required to file such forms, including a “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and, with respect to
the annual information only, a report thereon by the certified public
accountants of the Issuers; provided, however, that to the extent such reports are filed with the
Commission and publicly available, no additional copies need be provided to
Holders of the Notes or the Trustee.  The
Issuers shall also comply with the provisions of TIA §314(a).

 

(b)                                 The Issuers
shall provide the Trustee with a sufficient number of copies of all reports and
other documents and information that the Trustee may be required to deliver to
the Holders of the Notes under this Section 4.03.

 

SECTION 4.04.                                                           Compliance
Certificate.

 

(a)                                 The Issuers
shall deliver to the Trustee, within 120 days after the end of each fiscal
year, an Officers’ Certificate of the Issuers stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Issuers and Guarantors have kept, observed, performed
and fulfilled their obligations under this Indenture and further stating, as to
each such Officer signing such certificate, that to the best of his or her
knowledge each such entity has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof,
including, without limitation, a default in the performance or breach of Section 4.07,
Section 4.09, Section 4.10 or Section 4.15 hereof (or, if a
Default or Event of Default shall have occurred, describing all such Defaults
or Events of Default of which he or she may have knowledge and what action each
is taking or proposes to take with respect thereto) and that to the best of his
or her knowledge no event has occurred and remains in existence by reason of

 

47

 

which payments on account of the principal of
or interest, if any, on the Notes is prohibited or if such event has occurred,
a description of the event and what action each is taking or proposes to take
with respect thereto.

 

(b)                                 The Issuers
shall, so long as any of the Notes are outstanding, deliver to the Trustee,
forthwith upon any Officer becoming aware of (i) any Default or Event of
Default, or (ii) any default under any Indebtedness referred to in Section 6.01(f) or
(g) hereof, an Officers’ Certificate of the Issuers specifying such
Default, Event of Default or default and what action the Issuers or any of
their Affiliates are taking or propose to take with respect thereto.

 

SECTION 4.05.                                                           Taxes.

 

The Issuers shall pay, and shall cause each of its
Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and
governmental levies except as contested in good faith and by appropriate
proceedings or where the failure to effect such payment is not adverse in any
material respect to the Holders of the Notes.

 

SECTION 4.06.                                                           Stay, Extension
and Usury Laws.

 

The Issuers covenant (to the extent that they may
lawfully do so) that they 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 hereof; and the Issuers (to
the extent that they may lawfully do so) hereby expressly waive all benefit or
advantage of any such law, and covenant that they 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 4.07.                                                           Limitation on
Restricted Payments.

 

(a)                                 Neither the
Company nor any of its Restricted Subsidiaries may, directly or indirectly:

 

(i)                          declare or pay
any dividend or make any distribution on account of any Equity Interests of the
Company other than dividends or distributions payable in Equity Interests
(other than Disqualified Stock) of the Company;

 

(ii)                       purchase,
redeem or otherwise acquire or retire for value any Equity Interests of Parent,
the Company or any of their respective Subsidiaries, other than any such Equity
Interests owned by the Company or by any Wholly Owned Restricted Subsidiary;

 

(iii)                    declare or pay
any dividend or make any distribution on account of any Equity Interests of any
Restricted Subsidiary, other than:

 

(A)                               to the Company
or any Wholly Owned Restricted Subsidiary; or

 

(B)                               to all Holders
of any class or series of Equity Interests of such Restricted Subsidiary on a pro  rata basis;
provided that in the case of this clause (B), such dividends or distributions
may not be in the form of Indebtedness or Disqualified Stock; or

 

48

 

(iv)                   make any
Restricted Investment.

 

(all such prohibited payments and other
actions set forth in clauses (i) through (iv) being collectively
referred to as “Restricted Payments”), unless, at
the time of such Restricted Payment:

 

(1)                      no Default or Event of
Default shall have occurred and be continuing or would occur as a consequence
thereof;

 

(2)                      after giving effect to the
incurrence of any Indebtedness the net proceeds of which are used to finance
such Restricted Payment, the Indebtedness to Cash Flow Ratio of the Company
would not have exceeded 8.0 to 1; and

 

(3)                      such Restricted Payment,
together with the aggregate of all other Restricted Payments made by the
Company after the Issue Date, is less than the sum of:

 

(A)                               the difference
of:

 

(x)                                 cumulative
Consolidated Cash Flow of the Company determined at the time of such Restricted
Payment (or, in case such Consolidated Cash Flow shall be a deficit, minus 100%
of such deficit); minus

 

(y)                                 120% of
Consolidated Interest Expense of the Company,

 

each as determined for the period (taken as
one accounting period) from March 31, 2008 to the end of the Company’s
most recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment; plus

 

(B)                               an amount equal
to 100% of the aggregate net cash proceeds and the fair market value of any
property or assets received by the Company either from capital contributions,
or from the issue or sale (including an issue or sale to Parent or any of its
Subsidiaries (other than the Company or any of the Company’s Subsidiaries)) of
Equity Interests (other than Disqualified Stock) of the Company (other than
Equity Interests sold to any of the Company’s Subsidiaries), since March 31,
2008; plus

 

(C)                               if any
Unrestricted Subsidiary is designated by the Company as a Restricted
Subsidiary, an amount equal to the fair market value of the net Investment by
the Company or a Restricted Subsidiary in such Subsidiary at the time of such
designation; provided, however,
that the foregoing amount shall not exceed the amount of the Investments made
by the Company or any Restricted Subsidiary in any such Unrestricted Subsidiary
since March 31, 2008; plus

 

49

 

(D)                               100% of any
cash dividends and other cash distributions received by the Company and its
Restricted Subsidiaries from an Unrestricted Subsidiary since March 31,
2008 to the extent not included in Consolidated Cash Flow; plus

 

(E)                                to the extent
not included in clauses (A) through (D) above, an amount equal to the
net reduction in Investments of the Company and its Restricted Subsidiaries
since March 31, 2008 resulting from payments in cash of interest on
Indebtedness, dividends, or repayment of loans or advances, or other transfers
of property, in each case, to the Company or to a Wholly Owned Restricted
Subsidiary or from the net cash proceeds from the sale, conveyance or other disposition
of any such Investment; provided, however, that the foregoing amount shall not
exceed, with respect to any Person in whom such Investment was made, the amount
of Investments previously made by the Company or any Restricted Subsidiary in
such Person which were included in computations made pursuant to this clause
(3); plus

 

(F)                                 the amount
available as of March 31, 2008 under Section 4.07(a)(3) of the
indenture governing the 2013 Notes.

 

Notwithstanding the foregoing clause (3), the
Company may make any Restricted Payment if after giving effect to the
incurrence of any Indebtedness the net proceeds of which are used to finance
such Restricted Payment, the Company’s Indebtedness to Cash Flow Ratio as of
the Company’s most recently ended fiscal quarter for which internal financial
statements are available at the time of such Restricted Payment would not have
exceeded 4.5 to 1.

 

(b)                                 The foregoing
provisions will not prohibit the following (provided that
with respect to clauses (2), (4) and (5) below, no Default or Event
of Default shall have occurred and be continuing):

 

(1)               the payment of
any dividend or distribution within 60 days after the date of declaration
thereof, if at the date of declaration such payment would have complied with
the provisions hereof;

 

(2)               the redemption,
repurchase, retirement or other acquisition of any Equity Interests of the
Company in exchange for, or out of the net proceeds of the substantially
concurrent capital contribution from Parent or from the substantially
concurrent issue or sale (including to Parent) of, Equity Interests (other than
Disqualified Stock) of the Company (other than Equity Interests issued or sold
to any Subsidiary of the Company);

 

(3)               Investments in
a Permitted Business in an amount equal to 100% of the aggregate net proceeds
(whether or not in cash) received by the Company or any Restricted Subsidiary
from capital contributions from Parent or from the substantially concurrent
issue and sale (including to Parent or any of its Subsidiaries other than the
Company and its Subsidiaries) of Equity Interests (other than Disqualified
Stock) of the Company (other than Equity Interests issued or sold to the
Company’s Subsidiaries) on or after the Issue Date to the extent such capital
contributions are not included in the calculation of Consolidated Net Worth for
purposes of clause (4) below; plus, to the extent not

 

50

 

included
in Consolidated Cash Flow, an amount equal to the net reduction in such Investments
resulting from payments in cash of interest on Indebtedness, dividends, or repayment
of loans or advances, or other transfers of property, in each case, to the Company
or to a Restricted Subsidiary or from the net cash proceeds from the sale,
conveyance, or other disposition of any such Investment; provided,
however, that the foregoing amount shall
not exceed, with respect to any Person in whom such Investment was made, the
amount of Investments previously made by the Company or any Restricted
Subsidiary in such Person pursuant to this clause (3);

 

(4)               Investments in
a Permitted Business (other than payment of a dividend or distribution to
Parent without consideration) so long as after giving effect to such Investment
and all other Investments made in reliance on this clause (4), the aggregate
amount of all Investments made in reliance on this clause (4) shall not
exceed the greater of (x) $500.0 million and (y) 25% of the Company’s
Consolidated Net Worth at the time of such Investment; provided,
however, that solely for purposes of
this clause (4), calculations of Consolidated Net Worth shall not include
capital contributions received by the Company or any Wholly Owned Restricted
Subsidiary and applied to make Investments pursuant to clause (3) above;

 

(5)               Investments
made as a result of the receipt of non-cash proceeds from Asset Sales made in
compliance with Section 4.10;

 

(6)               Specified
Affiliate Payments;

 

(7)               purchases of
receivables or other assets pursuant to a Receivables Repurchase Obligation in
connection with a Qualified Receivables Transaction and the payment or
distribution of Receivables Fees; and

 

(8)               Investments to
fund the financing activity of a Financing Subsidiary in the ordinary course of
its business in an amount not to exceed, as of the date of determination, the
sum of (A) $100.0 million, plus (B) 50% of the aggregate cost to such
Financing Subsidiary for customer premise and receiving equipment (including
delivery and installation costs) purchased by such Financing Subsidiary and
leased by such Financing Subsidiary to retail customers in excess of 100,000
units.

 

(c)                                  Restricted
Payments made pursuant to the second paragraph of clause (a) and
paragraphs (b)(1), (2) and (3) (but as to clauses (2) and (3) only
to the extent that net proceeds received by the Company as set forth therein
were included in the computations made in paragraph (a)(3)(B)) shall be
included as Restricted Payments in any computation made pursuant to paragraph
(a)(3).  Restricted Payments made
pursuant to paragraphs (b)(2), (3), (4), (5), (6), (7) and (8) (but
as to clauses (2) and (3) only to the extent that net proceeds
received by the Company as set forth therein were not included in the
computations made in paragraph (a)(3)(B)) shall not be included as Restricted
Payments in any computation made pursuant to paragraph (a)(3).

 

51

 

If the Company or any Restricted Subsidiary makes an
Investment that was included in computations made pursuant to this Section 4.07
and the Person in which such Investment was made subsequently becomes a
Restricted Subsidiary, to the extent such Investment resulted in a reduction in
the amounts calculated under paragraph (a)(3) or under any other provision
of this Section 4.07, then such amount shall be increased by the amount of
such reduction.

 

SECTION 4.08.                                                           Limitation on
Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

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

 

(a)                                 pay dividends
or make any other distribution to the Company or any of its Restricted
Subsidiaries on its Capital Stock or with respect to any other interest or participation
in, or measured by, its profits, or pay any Indebtedness owed to the Company or
any of its Subsidiaries;

 

(b)                                 make loans or
advances to the Company or any of its Subsidiaries; or

 

(c)                                  transfer any of
its properties or assets to the Company or any of the Company’s Subsidiaries;

 

except for such encumbrances or restrictions
existing under or by reason of:

 

(i)                          Existing
Indebtedness and existing agreements as in effect on the Issue Date;

 

(ii)                       applicable law
or regulation;

 

(iii)                    any instrument
governing Acquired Debt as in effect at the time of acquisition (except to the
extent such Indebtedness was incurred in connection with, or in contemplation
of, such acquisition), which encumbrance or restriction is not applicable to
any Person, or the properties or assets of any Person, other than the Person,
or the property or assets of the Person, so acquired;

 

(iv)                   by reason of
customary nonassignment provisions in leases entered into in the ordinary
course of business and consistent with past practices;

 

(v)                      Refinancing
Indebtedness; provided that the restrictions
contained in the agreements governing such Refinancing Indebtedness are no more
restrictive than those contained in the agreements governing the Indebtedness
being refinanced;

 

(vi)                   this Indenture
and the Notes (and any Exchange Notes issued in exchange therefor);

 

(vii)                the Senior
Secured Credit Facility;

 

(viii)             Permitted
Liens;

 

52

 

(ix)          any
agreement for the sale of any Subsidiary or its assets that restricts distributions
by that Subsidiary pending its sale; provided that
during the entire period in which such encumbrance or restriction is effective,
such sale (together with any other sales pending) would be permitted under the
terms of this Indenture;

 

(x)           secured
Indebtedness otherwise permitted to be incurred by this Indenture that limit
the right of the debtor to dispose of the assets securing such Indebtedness;

 

(xi)          customary
provisions in joint venture agreements and other similar agreements;

 

(xii)         purchase
money obligations for property acquired and Capital Lease Obligations in the
ordinary course of business that impose restrictions of the type described in Section 4.08(c) on
the property so acquired;

 

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

 

(xiv)        any
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings of the contracts, instruments or
obligations referred to in clauses (i) through (xiii) of Section 4.08(c);
provided that such amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are, in the Company’s good faith judgment, no more
restrictive as a whole with respect to such encumbrances and restrictions than
those prior to such amendment, modification, restatement, renewal, increase,
supplement, refunding, replacement or refinancing.

 

SECTION 4.09.                                                      Limitation
on Incurrence of Indebtedness.

 

(a)           The Company shall not,
and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, issue, assume, guarantee or otherwise become
directly or indirectly liable with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt); provided, however, that,
notwithstanding the foregoing, the Company, DIRECTV Financing and any Guarantor
may incur Indebtedness (including Acquired Debt), if, after giving effect to
the incurrence of such Indebtedness and the application of the net proceeds
thereof on a pro forma basis, either (a) the Company’s Indebtedness to
Cash Flow Ratio would not have exceeded 8.0 to 1 or (b) the aggregate
amount of the Company’s Indebtedness and that of the Guarantors would not exceed
$1,000 per subscriber.

 

(b)           The foregoing
limitation will not apply to any of the following incurrences of Indebtedness:

 

(1)           Indebtedness
represented by the Notes (and any Exchange Notes issued in exchange therefor)
and the Guarantees in an aggregate principal amount not to exceed $1.5 billion;

 

53

 

(2)           the
incurrence by the Company, DIRECTV Financing or any Guarantor of Acquired
Subscriber Debt of up to $1,750 per Acquired Subscriber;

 

(3)           Indebtedness
of the Company, DIRECTV Financing or any Guarantor under the Senior Secured
Credit Facility in an aggregate principal amount of up to $2.5 billion at any one
time outstanding;

 

(4)           Indebtedness
among the Company and its Restricted Subsidiaries; provided
that in order to be subject to this clause (4), any such Indebtedness owed by
the Company or a Guarantor to any Restricted Subsidiary that is not a Guarantor,
shall be subordinated to the prior payment in full of the Notes and the Guarantees,
as applicable;

 

(5)           Acquired
Debt (A) of a Person incurred prior to the date upon which such Person was
acquired by the Company or any Restricted Subsidiary; provided
that after giving pro forma effect to such acquisition and incurrence of
Acquired Debt the Company’s Indebtedness to Cash Flow Ratio would not have
exceeded 8.0 to 1; or (B) owed to the Company or any of its Restricted
Subsidiaries;

 

(6)           Existing
Indebtedness;

 

(7)           the
incurrence of Purchase Money Indebtedness by the Company or any Restricted
Subsidiary in an amount not to exceed the cost of (A) construction, acquisition
or improvement of assets used in a Permitted Business and (B) any launch
costs and insurance premiums related to such assets;

 

(8)           Hedging
Obligations of the Company or any of its Restricted Subsidiaries covering
Indebtedness of the Company or such Restricted Subsidiary; provided,
however, that such Hedging Obligations
are entered into for purposes of managing interest rate exposure of the Company
and its Restricted Subsidiaries on Existing Indebtedness or other Indebtedness
incurred in accordance with this Indenture and not for speculative purposes;

 

(9)           Foreign
Currency Obligations of the Company or any of its Restricted Subsidiaries
entered into to manage exposure of the Company and its Restricted Subsidiaries
to fluctuations in currency values and not for speculative purposes;

 

(10)         Indebtedness
of the Company or any of its Restricted Subsidiaries in respect of performance
bonds or letters of credit of the Company or any Restricted Subsidiary or
surety bonds provided by the Company or any Restricted Subsidiary incurred in
the ordinary course of business and on ordinary business terms in connection
with a Permitted Business;

 

(11)         the
incurrence by the Company, DIRECTV Financing or any Guarantor of Indebtedness
issued in exchange for, or the proceeds of which are used to extend, refinance,
renew, replace, substitute or refund in whole or in part, Indebtedness referred
to in paragraph (a) of this Section 4.09 or in clauses (b)(1), (2),
(5), (6) or (7) (“Refinancing Indebtedness”);
provided, however,
that:

 

54

 

(A)          the principal amount of such Refinancing
Indebtedness shall not exceed the principal amount and accrued interest of the
Indebtedness so exchanged, extended, refinanced, renewed, replaced, substituted
or refunded and any premiums payable and reasonable fees, expenses, commissions
and costs in connection therewith;

 

(B)          the Refinancing Indebtedness shall have a
final maturity equal to or later than, and a Weighted Average Life to Maturity
equal to or greater than, the final maturity and Weighted Average Life to
Maturity, respectively, of the In debtedness being exchanged, extended,
refinanced, renewed, replaced, substituted or refunded; and

 

(C)          the Refinancing Indebtedness shall be
subordinated in right of payment to the Notes and the Guarantees, if at all, on
terms at least as favorable to the Holders of Notes as those contained in the
documentation governing the Indebtedness being exchanged, extended, refinanced,
renewed, replaced, substituted or refunded (a “Permitted
Refinancing”);

 

(12)         additional Indebtedness in an aggregate
principal amount of up to $500.0 million at any one time outstanding (which
amount may, but need not be, incurred in whole or in part under the Senior
Secured Credit Facility); 

 

(13)         the guarantee by the Company or any Guarantor
of Indebtedness of the Company or a Restricted Subsidiary that was permitted to
be incurred by another provision of this Section 4.09; and

 

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

 

(c)           For purposes of
determining compliance with this Section 4.09, (1) the outstanding
principal amount of any item of Indebtedness shall be counted only once, and
any obligation arising under any guarantee, Lien, letter of credit or similar
instrument supporting such Indebtedness incurred in compliance with this Section 4.09
shall be disregarded, and (2) if an item of Indebtedness meets the
criteria of more than one of the categories described in clauses (b)(1) through
(14) above or is permitted to be incurred pursuant to paragraph (a) of
this Section 4.09 and also meets the criteria of one or more of the
categories described in paragraphs (b)(1) through (14), the Company shall,
in its sole discretion, classify such item of Indebtedness in any manner that
complies with this Section 4.09 and may from time to time reclassify such
item of Indebtedness in any manner in which such item could be incurred at the
time of such reclassification; provided that
Indebtedness outstanding under the Senior Secured Credit Facility on the Issue
Date shall be deemed to be outstanding under paragraph (b)(3) and may not
be reclassified.

 

(d)           Accrual of interest,
the accretion of original issue discount and the payment of interest in the
form of additional Indebtedness of the same class shall not be deemed to be an
incurrence of Indebtedness for purposes of determining compliance with this Section 4.09.  Any increase in the amount of Indebtedness
solely by reason of currency fluctuations shall not be 

 

55

 

deemed to be an incurrence of
Indebtedness for purposes of determining compliance with this Section 4.09.  A change in GAAP that results in an
obligation existing at the time of such change, not previously classified as
Indebtedness, becoming Indebtedness will not be deemed to be an incurrence of
Indebtedness for purposes of determining compliance with this Section 4.09.

 

(e)           Notwithstanding the
foregoing, the Company shall not, and shall not permit any Guarantor to,
directly or indirectly, incur any Indebtedness that purports to be by its terms
(or by the terms of any agreement or instrument governing such Indebtedness)
subordinated to any other Indebtedness of the Company or of such Guarantor, as
the case may be, unless such In debtedness is also by its terms (or by the
terms of the agreement or instrument governing such Indebtedness) made
expressly subordinated to the Notes or the Guarantee of such Guarantor, as
applicable, to at least the same extent as such Indebtedness is subordinated to
such other Indebtedness of the Company or such Guarantor, as applicable.  Indebtedness shall not be deemed to be subordinated
solely by virtue of being unsecured.

 

SECTION 4.10.                                                      Limitation
on Asset Sales.

 

If the Company
or any Restricted Subsidiary, in a single transaction or a series of related
transactions,

 

(a)           sells, leases (in a
manner that has the effect of a disposition), conveys or otherwise disposes of
any of the Company’s or any Restricted Subsidiary’s assets (including by way of
a sale-and-leaseback transaction), other than:

 

(1)           sales or other dispositions of assets in the
ordinary course of business;

 

(2)           sales or other dispositions to the Company
or a Restricted Subsidiary by the Company or any Restricted Subsidiary;

 

(3)           sales or other dispositions of rights to
construct or launch satellites;

 

(4)           any transfer or other disposition of
accounts receivable and related assets (including contract rights) of the type
specified in the definition of “Qualified Receivables Transaction” or a
fractional undivided interest therein, by a Receivables Subsidiary in a
Qualified Receivables Transaction; and

 

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

 

provided
that the sale, lease, conveyance or other disposition of all or substantially
all of the Company’s assets shall be governed by the provisions of Section 5.01;
or

 

56

 

(b)           issues or sells Equity
Interests of any Restricted Subsidiary, in either case, which assets or Equity
Interests: (1) have a fair market value in excess of $100.0 million (as
determined in good faith by the Board of Directors of the Company evidenced by
a resolution of the Board of Directors of the Company and set forth in an
Officers’ Certificate delivered to the Trustee); or (2) are sold or
otherwise disposed of for Net Proceeds in excess of $100.0 million (each of the
foregoing, an “Asset Sale”), then:

 

(A)          the Company or such
Restricted Subsidiary, as the case may be, must receive consideration at the
time of such Asset Sale at least equal to the fair market value of the assets
sold or otherwise disposed of (as determined in good faith by the Board of Directors
of the Company evidenced by a resolution of the Board of Directors of the Company
and set forth in an Officers’ Certificate delivered to the Trustee not later
than ten Business Days following a request from the Trustee, which certificate
shall cover each Asset Sale made in the six months preceding the date of the
request, as the case may be); and

 

(B)          at least 75% of the
consideration therefor received by the Company or such Restricted Subsidiary,
as the case may be, must be in the form of:

 

(x)           cash, Cash Equivalents
or Marketable Securities;

 

(y)           any asset which is
promptly (and in no event later than 180 days after the date of transfer to the
Company or a Restricted Subsidiary) converted into cash; provided
that to the extent that such conversion is at a price that is less than the
fair market value (as determined above) of such asset at the time of the Asset
Sale in which such asset was acquired, the Company shall be deemed to have made
a Restricted Payment in the amount by which such fair market value exceeds the
cash received upon conversion; and/or

 

(z)           properties and capital
assets (including Capital Stock of an entity owning such property or assets so
long as the receipt of such Capital Stock otherwise complies with Section 4.07
hereof (other than paragraph (b)(5) thereof)) to be used by the Company or
any of its Restricted Subsidiaries in a Permitted Business;

 

provided, however, the
amount of any liabilities (other than subordinated Indebtedness) of the Company
or any Restricted Subsidiary that are assumed by or on behalf of the transferee
in connection with an Asset Sale and from which the Company or such Restricted
Subsidiary are unconditionally released shall be deemed to be cash for purposes
of this clause (B).

 

The Net Proceeds from an Asset Sale shall be
used only:  to acquire assets used in, or
stock or other ownership interests in a Person that becomes a Restricted
Subsidiary upon the acquisition and will be engaged primarily in, a Permitted
Business or to prepay, repay or purchase indebtedness under the Senior Secured
Credit Facility or other senior secured Indebtedness.  Any Net Proceeds from any Asset Sale that are
not applied or invested (or committed pursuant to a written agreement to be
applied) as provided in the preceding sentence within 365 days after the
receipt thereof and, in the case of funds committed other than to purchase a
satellite, any such 

 

57

 

funds which
are not actually so applied within 270 days following such 365 day period shall
constitute “Excess  Proceeds”
and shall be applied to an offer to purchase secured Indebtedness, Notes and
other senior Indebtedness of the Company if and when required under Section 3.08.  Pending the final application of any such Net
Proceeds, the Company or such Restricted Subsidiary may temporarily reduce
revolving indebtedness under a Senior Secured Credit Facility, if any, or
otherwise invest such Net Proceeds in Cash Equivalents.

 

SECTION 4.11.                                                      Limitation
on Transactions with Affiliates.

 

The Company shall not and shall not permit
any Restricted Subsidiary to, directly or indirectly, sell, lease, transfer or
otherwise dispose of any of the Company’s or any Restricted Subsidiary’s
properties or assets to, or purchase any property or assets from, or enter into
any contract, agreement, understanding, loan, advance or guarantee with, or for
the benefit of, any Affiliate (including any Unrestricted Subsidiary) (each of
the foregoing, an “Affiliate Transaction”),
unless:

 

(a)           such
Affiliate Transaction is on terms that are no less favorable to the Company,
taken as a whole, or such Restricted Subsidiary in any material respect than
those that would have been obtained in a comparable transaction by the Company
or such Restricted Subsidiary with an unrelated Person; and

 

(b)           if such Affiliate Transaction involves
aggregate payments in excess of the greater of (A) $200.0 million or (B) 7.5%
of Consolidated Net Worth, either (i) such Affiliate Transaction has been
approved by a resolution of the majority of the disinterested members of the
Company’s Board of Directors or (ii) if there are no disinterested directors
on the Company’s Board of Directors, the Company or such Restricted Subsidiary
has obtained the favorable opinion of an Independent Financial Advisor as to
the fairness of such Affiliate Transaction to the Company or the relevant
Restricted Subsidiary, as the case may be, from a financial point of view, and
the Company delivers to the Trustee no later than ten business days following a
request from the Trustee such resolution (set forth in an Officers’ Certificate
certifying that such Affiliate Transaction has been so approved and complies
with clause (a) above) or such opinion;

 

provided, however, that the following shall, in each case, not be
deemed Affiliate Transactions:

 

(i)            the
payment of compensation to directors and management of Parent and its
Subsidiaries;

 

(ii)           indemnification
payments made to officers, directors, employees or agents of the Company or any
of its Restricted Subsidiaries pursuant to charter, bylaw, statutory or
contractual provisions;

 

(iii)          transactions
between or among the Company and its Restricted Subsidiaries (other than any
Restricted Subsidiary more than 10% of the Equity Interests of which are owned
by the Company’s Affiliates (other than its Restricted Subsidiaries));

 

58

 

(iv)          Restricted
Payments (other than Investments permitted by Section 4.07(b)(4))
permitted by Section 4.07 and Permitted Investments (other than transactions
permitted by clauses (a) and (j) of the definition of “Permitted
Investments”);

 

(v)           any
transactions between the Company or any of its Restricted Subsidiaries and any
Affiliate of the Company the Equity Interests of which Affiliate are owned
solely by the Company or one of its Restricted Subsidiaries, on the one hand,
and by Persons who are not Affiliates of the Company or its Restricted
Subsidiaries, on the other hand;

 

(vi)          any
agreements in effect on the Issue Date and any modifications, extensions or
renewals thereof that are no less favorable to the Company or the applicable Restricted
Subsidiary in any material respect than such agreement as in effect on the
Issue Date;

 

(vii)         so
long as it complies with clause (a) above, customary transactions with
DIRECTV Group or any of its Subsidiaries or Affiliates or any other suppliers
or purchasers or sellers of goods or services including, without limitation,
entering into of programming agreements, subscription agreements,
telecommunications services agreements, broadcast engineering services
agreements, television advertising and intellectual property agreements;

 

(viii)        transactions
with Liberty Group approved by a majority of the members of the audit committee
of the board of directors of DIRECTV Group for so long as such members meet the
independence requirements of the New York Stock Exchange or NASDAQ;

 

(ix)          transactions
with Permitted Joint Ventures (other than any Permitted Joint Venture more than
10% of the Equity Interests of which are owned by an Affiliate of the Company
(other than the Company’s Restricted Subsidiaries)); and

 

(x)           transactions
effected as part of a Qualified Receivables Transaction.

 

SECTION 4.12.                                                      Limitation
on Liens.

 

The Company shall not, and shall not permit
any Restricted Subsidiary to, directly or indirectly, create, incur, assume or
suffer to exist any Lien on any asset now owned or hereafter acquired, or on
any income or profits therefrom or assign or convey any right to receive income
therefrom, except Permitted Liens.

 

SECTION 4.13.                                                      Additional
Subsidiary Guarantees.

 

If (a) any of the Company’s Domestic
Subsidiaries (other than a Financing Subsidiary or a Receivables Subsidiary)
that is not a Guarantor guarantees or becomes otherwise obligated under the
Senior Secured Credit Facility, other of the Company’s senior secured Indebtedness
or the Existing Notes, or (b) the Company or any of its Restricted
Subsidiaries transfers or causes to be transferred, in one transaction or a
series of related transactions, any property to any Restricted Subsidiary
(other than a Financing Subsidiary or a Receivables Subsidiary) that is a Domestic

 

59

 

Subsidiary but
not a Guarantor, or if the Company or any of its Subsidiaries shall organize,
acquire or otherwise invest in another Restricted Subsidiary that is a Domestic
Subsidiary (other than a Financing Subsidiary or a Receivables Subsidiary)
having total assets with a fair market value in excess of the greater of (A) $50.0
million and (B) 5% of the Company’s Consolidated Net Worth, then in each
case such guarantor, obligor, transferee or acquired or other Restricted
Subsidiary shall (i) execute and deliver to the Trustee a supplemental
indenture in form reasonably satisfactory to the Trustee pursuant to which such
Restricted Subsidiary shall unconditionally guarantee all of the Issuers’
obligations under the Notes and this Indenture on the terms set forth in this
Indenture and (ii) deliver to the Trustee an Opinion of Counsel that such
supplemental indenture has been duly authorized, executed and delivered by such
Restricted Subsidiary and constitutes a legal, valid, binding and enforceable
obligation of such Restricted Subsidiary. 
Thereafter, such Restricted Subsidiary shall be a Guarantor for all
purposes hereof; provided, however,
that to the extent that a Restricted Subsidiary is subject to any instrument
governing Acquired Debt, as in effect at the time of acquisition thereof, that
prohibits such Restricted Subsidiary from issuing a Guarantee, such Restricted
Subsidiary shall not be required to execute such a supplemental indenture until
it is permitted to issue such Guarantee pursuant to the terms of such Acquired
Debt; provided, further,
however, that any Guarantee existing
solely due to the requirement of clause (a) above shall be released upon
the release of the guarantee or other obligation under the Senior Secured
Credit Facility or such other senior secured Indebtedness.

 

SECTION 4.14.                                                      Organizational
Existence.

 

Subject to Article 5 hereof and the
proviso to this Section 4.14, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect (i) its existence
as a limited liability company and, subject to Section 4.10 hereof, the
corporate, limited liability company, partnership or other existence of any
Restricted Subsidiary, in accordance with the respective organizational
documents (as the same may be amended from time to time) of the Company or any
Restricted Subsidiary and (ii) subject to Section 4.10 hereof, the
rights (charter and statutory), licenses and franchises of the Company and its
Restricted Subsidiaries; provided, however, that the Company shall not be required to preserve
any such right, license or franchise, or the corporate, partnership or other
existence of any Restricted Subsidiary (other than the corporate existence of
DIRECTV Financing) if the Board of Directors of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries, taken as a whole, and that the
loss thereof is not adverse in any material respect to the Holders of the
Notes.

 

SECTION 4.15.                                                      Change
of Control and Rating Decline.

 

Upon the occurrence of a Change of Control
Triggering Event, the Company shall make an offer (a “Change of
Control Offer”) to each Holder of Notes to repurchase all or any
part (equal to $1,000 or an integral multiple thereof) of such Holder’s Notes
at a purchase price equal to 101% of the aggregate principal amount thereof,
together with accrued and unpaid interest thereon to the date of repurchase (in
either case, the “Change of Control Payment”).  Within 30 days following any Change of
Control Triggering Event, the Company shall mail a notice to each Holder
stating:

 

60

 

(1)           that the Change of Control Offer is being
made pursuant to this Section 4.15;

 

(2)           the purchase price and the purchase date,
which shall be no earlier than 30 days nor later than 45 days after the
date such notice is mailed (the “Change of  Control Payment Date”);

 

(3)           that any Notes not tendered will continue to
accrue interest in accordance with the terms hereof;

 

(4)           that, unless the Company defaults in the
payment of the Change of Control Payment, all Notes accepted for payment
pursuant to the Change of Control Offer shall cease to accrue interest after
the Change of Control Payment Date;

 

(5)           that Holders will be entitled to withdraw
their election if the Paying Agent receives, not later than the close of
business on the second Business Day preceding the Change of Control Payment
Date, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of Notes delivered for purchase, and a
statement that such Holder is unconditionally withdrawing its election to have
such Notes purchased;

 

(6)           that Holders whose Notes are being purchased
only in part will be issued new Notes equal in principal amount to the
unpurchased portion of the Notes surrendered, which unpurchased portion must be
equal to $2,000 in principal amount or an integral multiple of $1,000 in excess
thereof, and

 

(7)           any other information material to such
Holder’s decision to tender Notes.

 

The Company will comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and
regulations thereunder to the extent such laws and regulations are applicable
in connection with the repurchase of the Notes required in the event of a
Change of Control Triggering Event.

 

SECTION 4.16.                                                      [Intentionally
Omitted]

 

SECTION 4.17.                                                      Limitation
on Activities of DIRECTV Financing.

 

DIRECTV Financing may not hold any material
assets, become liable for any material obligations, engage in any trade or
business, or conduct any business activity, other than the issuance of Equity
Interests to the Company or any Wholly Owned Restricted Subsidiary of the
Company, the Incurrence of Indebtedness as a co-obligor or guarantor of the
Notes, the Exchange Notes, if any, the Senior Secured Credit Facility and any
other Indebtedness that is permitted to be incurred by the Company under Section 4.09.  Neither the Company nor any Restricted
Subsidiary shall engage in any transactions with DIRECTV Financing in violation
of the immediately preceding sentence.

 

61

 

SECTION 4.18.                                                      Payments
for Consent.

 

The Issuers shall not, and shall not permit
any of their Subsidiaries to, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
of a Note for or as an inducement to any consent, waiver or amendment of any of
the terms or provisions hereof or the Notes unless such consideration is
offered to be paid or agreed to be paid to all Holders of the Notes that so
consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

 

SECTION 4.19.                                                      Termination
of Covenants.

 

From and after the first date on which the
Notes are rated Investment Grade by both Rating Agencies and notwithstanding
that the Notes may cease to be so rated thereafter, the following Sections
shall no longer apply:

 

(1)                                               Section 3.08;

 

(2)                                               Section 4.07;

 

(3)                                               Section 4.09;

 

(4)                                               Section 4.10;

 

(5)                                               Section 4.11;
and

 

(6)                                               clauses
(d)(i) and (ii) of Section 5.01.

 

At such time Sections 3.08, 4.07, 4.09, 4.10,
4.11 and clauses (d)(i) and (ii) of Section 5.01 are terminated,
the Company shall no longer be permitted to designate any Restricted Subsidiary
as an Unrestricted Subsidiary.

 

ARTICLE 5

 

SUCCESSORS

 

SECTION 5.01.                                                      Merger,
Consolidation or Sale of Assets.

 

The Company shall not consolidate or merge
with or into (whether or not the Company is the surviving entity), or sell,
assign, transfer, lease, convey or otherwise dispose of all or substantially
all of its properties or assets in one or more related transactions to, another
Person unless:

 

(a)                                 the
Company is the surviving Person or the Person formed by or surviving any such
consolidation or merger (if other than the Company) or to which such sale, assignment,
transfer, lease, conveyance or other disposition shall have been made is a corporation,
limited partnership or limited liability company organized or existing under
the laws of the United States, any state thereof or the District of Columbia;

 

62

 

(b)           the Person formed by or
surviving any such consolidation or merger (if other than the Company) or the
Person to which such sale, assignment, transfer, lease, conveyance or other
disposition shall have been made assumes all the obligations of the Company
pursuant to a supplemental indenture in form reasonably satisfactory to the
Trustee, under the Notes and this Indenture;

 

(c)           immediately after such
transaction, no Default or Event of Default exists; and

 

(d)           the Company or the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or to which such sale, assignment, transfer, lease, conveyance or
other disposition will have been made:

 

(i)           will have an
Indebtedness to Cash Flow Ratio immediately after the transaction (but prior to
any purchase accounting adjustments or accrual of deferred tax liabilities
resulting from the transaction) not less than the Company’s Indebtedness to
Cash Flow Ratio immediately preceding the transaction; or

 

(ii)          would, at the time of
such transaction after giving pro forma effect thereto as if such transaction
had occurred at the beginning of the applicable four-quarter period, be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Indebtedness to Cash Flow Ratio set forth in Section 4.09(a).

 

SECTION 5.02.                                                            Successor
Corporation Substituted.

 

Upon any consolidation or merger, or any
sale, lease, conveyance or other disposition of all or substantially all of the
assets of the Company in accordance with Section 5.01 hereof, the
successor corporation formed by such consolidation or into or with which the Company
is merged or to which such sale, lease, conveyance or other disposition is made
shall succeed to, and be substituted for (so that from and after the date of
such consolidation, merger, sale, lease, conveyance or other disposition, the
provisions hereof referring to the Company shall refer instead to the successor
corporation and not to the Company), and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person has been named as the Company herein.

 

ARTICLE 6

 

DEFAULTS AND
REMEDIES

 

SECTION 6.01.                                                            Events
of Default.

 

Each of the following constitutes an “Event of Default”:

 

(a)           default for 30 days in the payment when due
of interest or additional interest, if any, on the Notes;

 

63

 

(b)           default in the payment when due of principal
of or premium, if any, on the Notes at maturity, upon repurchase, redemption or
otherwise;

 

(c)           failure to comply with the provisions of Section 3.08,
Section 4.15 or Section 5.01 hereof;

 

(d)           default under any other provision of this
Indenture or the Notes, which default remains uncured for 60 days after notice
from the Trustee or the Holders of at least 25% of the aggregate principal
amount then outstanding of the Notes;

 

(e)           default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company and any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Company
and any of its Restricted Subsidiaries), other than Non-Recourse Receivables
Subsidiary Indebtedness, which default is caused by a failure to pay the
principal of such Indebtedness at the final stated maturity thereof within the
grace period provided in such Indebtedness (a “Payment
Default”), and 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, aggregates $100 million or more;

 

(f)            default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company and any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Company
or any of its Restricted Subsidiaries), other than Non-Recourse Receivables
Subsidiary Indebtedness, which default results in the acceleration of such
Indebtedness prior to its express maturity not rescinded or cured within 30
days after such acceleration, and 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 $100 million or more;

 

(g)           failure by the Company and any of its
Restricted Subsidiaries to pay final judgments (other than any judgment as to
which a reputable insurance company has accepted full liability) aggregating
$100 million or more, which judgments are not stayed within 60 days after their
entry other than judgments in respect of Non-Recourse Receivables Subsidiary
Indebtedness;

 

(h)           any Guarantee of a Significant Subsidiary
shall be held in a judicial proceeding to be unenforceable or invalid or shall
cease for any reason to be in full force and effect, or any Guarantor that
qualifies as a Significant Subsidiary, or any Person acting on behalf of any
Guarantor that qualifies as a Significant Subsidiary, shall deny or disaffirm
its obligations under its Guarantee;

 

(i)            the Company, DIRECTV Financing or any
Significant Subsidiary of the Company pursuant to or within the meaning of
Bankruptcy Law (i) commences a voluntary case; (ii) consents to the
entry of an order for relief against it in an involuntary case; (iii) consents
to the appointment of a Custodian of it or for all or substantially all of its
property; or (iv) makes a general assignment for the benefit of its
creditors; and

 

64

 

(j)            a court of competent jurisdiction enters an
order or decree under any Bankruptcy Law that: 
(i) is for relief against the Company, DIRECTV Financing or any
Significant Subsidiary of the Company in an involuntary case; (ii) appoints
a custodian of the Company, DIRECTV Financing or any Significant Subsidiary of
the Company or for all or substantially all of the property of the Company,
DIRECTV Financing or any Significant Subsidiary of the Company; or (iii) orders
the liquidation of the Company, DIRECTV Financing or any Significant Subsidiary
of the Company, and the order or decree remains unstayed and in effect for 60
consecutive days.

 

SECTION 6.02.                                                            Acceleration.

 

If an Event of Default (other than an Event
of Default relating to an Issuer specified in paragraph (i) or (j) of
Section 6.01 hereof) occurs and is continuing, the Trustee by notice to
the Issuers or the Holders of at least 25% of the aggregate principal amount
then outstanding of the Notes by written notice to the Issuers and the Trustee,
may declare all the Notes to be due and payable immediately. Notwithstanding
the foregoing, in the case of an Event of Default specified in paragraph (i) or
(j) of Section 6.01 hereof with respect to an Issuer, all outstanding
Notes shall become and be immediately due and payable without further action or
notice.  Holders of the Notes may not
enforce this Indenture or the Notes except as provided in this Indenture.  The Trustee may withhold from Holders of the
Notes notice of any continuing Default or Event of Default (except a Default or
Event of Default relating to the payment of principal or interest) if it
determines that withholding notice is in such Holders’ interest.  The Holders of a majority in aggregate
principal amount of the then outstanding Notes by written notice to the Trustee
may on behalf of all of the Holders rescind an acceleration and its consequences
if the rescission would not conflict with any judgment or decree and if all
existing Events of Default (except nonpayment of principal, interest or premium
that has become due solely because of the acceleration) have been cured or
waived.

 

All powers of the Trustee under this
Indenture will be subject to applicable provisions of the Communications Act,
including without limitation, the requirements of prior approval for de facto or de jure transfer
of control or assignment of Title III licenses.

 

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 and 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.

 

65

 

SECTION 6.04.                                                            Waiver
of Past Defaults.

 

Holders of not less than a majority in aggregate
principal amount of Notes then outstanding, by written notice to the Trustee,
may on behalf of the Holders of all of the Notes waive an existing Default or
Event of Default and its consequences under this Indenture, except a continuing
Default or Event of Default in the payment of the principal of, premium, if
any, or interest on, the Notes.  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 hereof;
but no such waiver shall extend to any subsequent or other Default or impair
any right consequent thereon.

 

SECTION 6.05.                                                            Control
by Majority.

 

Holders of a majority in principal amount of
the then outstanding Notes may direct the time, method and place of conducting
any proceeding for exercising any remedy available to the Trustee or exercising
any trust or power conferred on it. 
However, the Trustee may refuse to follow any direction that conflicts
with the law or this Indenture that the Trustee determines may be unduly
prejudicial to the rights of other Holders of Notes or that may involve the
Trustee in personal liability.

 

SECTION 6.06.                                                            Limitation
on Suits.

 

A Holder of a Note may pursue a remedy with
respect to this Indenture or the Notes only if

 

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

 

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

 

(c)           such Holder of a Note or Holders of Notes
offer and, if requested, provide to the Trustee indemnity satisfactory to the
Trustee against any loss, liability or expense;

 

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

 

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

 

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

 

SECTION 6.07.                                                            Rights
of Holders of Notes To Receive Payment.

 

Notwithstanding any other provision hereof,
the right of any Holder of a Note to receive payment of principal, premium, if
any, and interest on the Note, on or after the respective due dates expressed
in the Note, or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the consent
of the Holder of the Note.

 

66

 

SECTION 6.08.                                                            Collection
Suit by Trustee.

 

If an Event of Default specified in Section 6.01(a) or
(b) hereof occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Issuers
for the whole amount of principal of, premium, if any, and interest remaining
unpaid on the Notes and 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, its agents and counsel.

 

SECTION 6.09.                                                            Trustee
May File Proofs of Claim.

 

The Trustee is authorized to file such proofs
of claim and other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable
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 Issuers (or any other obligor upon the Notes), the Issuers’
creditors or the Issuers’ property and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial proceeding
is hereby authorized by each Holder of a Note to make such payments to the
Trustee, and in the event that the Trustee shall consent to the making of such
payments directly to the Holders of the Notes, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.07 hereof.  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 hereof 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 which the Holders of the Notes 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 of a Note
any plan of reorganization, arrangement, adjustment or composition affecting
the Notes or the rights of any Holder of a Note thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder of a Note in any such
proceeding.

 

SECTION 6.10.                                                            Priorities.

 

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

 

First:  to the Trustee, its agents and attorneys for
amounts due under Section 7.07 hereof, including payment of all
compensation, expense and liabilities incurred, and all advances made, by the
Trustee and the costs and expenses of collection;

 

67

 

Second:  to Holders of Notes 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

 

Third:  to the Issuers or to such party as a court of
competent jurisdiction shall direct in writing.

 

The Trustee may fix a record date and payment
date for any payment to Holders of Notes.

 

SECTION 6.11.                                                            Undertaking
for Costs.

 

In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as a Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees and expenses, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. 
This Section 6.11 does not apply to a suit by the Trustee, a suit
by a Holder of a Note pursuant to Section 6.07 hereof, or a suit by Holders
of more than 10% in principal amount of the then outstanding Notes pursuant to
this Article 6.

 

ARTICLE 7

 

TRUSTEE

 

SECTION 7.01.                                                            Duties
of Trustee.

 

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

 

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

 

(i)            the duties of the Trustee shall be
determined solely by the express provisions hereof 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

 

(ii)           in the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements hereof.  However, in the case of certificates or
opinions specifically required by any provision hereof to be furnished to it,
the Trustee shall examine the certificates and opinions to determine whether or
not they conform to the requirements hereof.

 

68

 

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

 

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

 

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

 

(iii)          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 hereof.

 

(d)           Whether or not therein
expressly so provided, every provision hereof that in any way relates to the
Trustee is subject to paragraphs (a), (b), and (c) of this Section 7.01.

 

(e)           No provision hereof
shall require the Trustee to expend or risk its own funds or incur any
liability.  The Trustee shall be under no
obligation to exercise any of its rights or powers under this Indenture at the
request of any Holders of Notes, unless such Holder shall have offered to the
Trustee security and indemnity satisfactory to the Trustee against any loss,
liability or expense.

 

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

 

SECTION 7.02.                                                            Rights
of Trustee.

 

(a)           The Trustee may conclusively
rely upon any document (whether in original 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.

 

(b)           Before the Trustee acts
or refrains from acting, it may require an Officers’ Certificate of the Issuers
or an Opinion of Counsel or both.  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 and agents and shall not be responsible for the misconduct
or negligence of any agent appointed with due care.

 

(d)           The Trustee shall not
be liable for any action it takes or omits to take in good faith which it
believes to be authorized or within its rights or powers conferred upon it by
this Indenture.

 

69

 

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

 

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

 

(g)           Except with respect to Section 4.01
hereof, the Trustee shall have no duty to inquire as to the performance of the
Issuers’ covenants in Article 4.  In
addition, the Trustee shall not be deemed to have knowledge of any Default or
Event of Default except (i) any Event of Default occurring pursuant to
Sections 4.01, 6.01(a) and 6.01(b) hereof or (ii) any Default or
Event of Default of which the Trustee shall have received written notification
or obtained actual knowledge.

 

(h)           Delivery of reports,
information and documents to the Trustee under Section 4.03 hereof is for
informational purposes only and the Trustee’s receipt of the foregoing shall
not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Issuers’
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).

 

(i)            The rights,
privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder;

 

(j)            The Trustee may request
that the Company deliver a certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions
pursuant to this Indenture; and

 

(k)           In no event shall the
Trustee be responsible or liable for special, indirect, 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.

 

SECTION 7.03.                                                            Individual
Rights of Trustee.

 

The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Issuers or any Affiliate of the Issuers with the same rights it would have
if it were not Trustee.  However, in the
event that the Trustee acquires any conflicting interest it must eliminate such
conflict within 90 days, apply to the Commission for permission to continue as
Trustee (if any of the Notes are registered pursuant to the Securities Act), or
resign.  Any Agent may do the same with
like rights and duties.  The Trustee is
also subject to Sections 7.10 and 7.11 hereof.

 

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SECTION 7.04.                                                            Trustee’s
Disclaimer.

 

(a)           The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy
hereof or the Notes, it shall not be accountable for the Issuers’ use of the proceeds
from the Notes or any money paid to the Issuers or upon the Issuers’ direction
under any provision hereof, 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 any other document in connection with the sale of the
Notes or pursuant to this Indenture other than its certificate of authentication.

 

(b)           The Trustee shall not
be bound to make any investigation into facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture or other paper or document.

 

SECTION 7.05.                                                            Notice
of Defaults.

 

If a Default or Event of Default occurs and
is continuing and if it is known to a Responsible Officer of the Trustee, the
Trustee shall mail to Holders of Notes a notice of the Default or Event of
Default within 90 days after it occurs. 
Except in the case of a Default or Event of Default in payment of
principal of, premium, if any, or interest on any Note, the Trustee may withhold
the notice if and so long as a committee of its Responsible Officers in good
faith determines that withholding the notice is in the interests of the Holders
of the Notes.

 

SECTION 7.06.                                                            Reports
by Trustee to Holders of the Notes.

 

Within 60 days after each May 15
beginning with the May 15, 2009, the Trustee shall mail to the Holders of
the Notes a brief report dated as of such reporting date that complies with TIA
§ 313(a) (but if no event described in TIA § 313(a) has occurred
within the twelve months preceding the reporting date, no report need be
transmitted).  The Trustee also shall
comply with TIA § 313(b).  The Trustee
shall also transmit by mail all reports as required by TIA § 313(c).

 

A copy of each report at the time of its mailing
to the Holders of Notes shall be mailed to the Issuers and filed with the
Commission and each stock exchange on which any Notes are listed.  The Issuers shall promptly notify the Trustee
in writing when any Notes are listed on any stock exchange or any delisting
thereof.

 

SECTION 7.07.                                                            Compensation
and Indemnity.

 

The Issuers shall pay to the Trustee from
time to time reasonable compensation for its acceptance hereof and services
hereunder.  The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express
trust.  The Issuers 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.

 

The Issuers, jointly and severally, shall
indemnify the Trustee against any and all losses, liabilities, claims, damages
or expenses incurred by it arising out of or in connection with the acceptance
or administration of its duties under this Indenture, except any such loss,
liability or 

 

71

 

expense as
shall be determined to have been caused by the negligence, willful misconduct
or bad faith of the Trustee.  The Trustee
shall notify the Issuers promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the
Issuers shall not relieve the Issuers of their obligations hereunder.  The Issuers shall defend the claim and the
Trustee shall cooperate in the defense. 
The Trustee may have separate counsel and the Issuers shall pay the
reasonable fees and expenses of such counsel. 
The Issuers need not pay for any settlement made without their consent,
which consent shall not be unreasonably withheld.

 

The obligations of the Issuers under this Section 7.07
shall survive the satisfaction and discharge hereof.

 

To secure the Issuers’ payment obligations 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 hereof.

 

When the Trustee incurs expenses or renders
services after an Event of Default specified in Section 6.01(i) or (j) hereof
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.

 

SECTION 7.08.                                                            Replacement
of Trustee.

 

A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective 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
and be discharged from the trust hereby created by so notifying the Issuers and
obtaining the prior written approval of the FCC, if so required by the
Communications Act, including Section 310(d) and the rules and
regulations promulgated thereunder.  The
Holders of at least a majority in principal amount of the then outstanding
Notes may remove the Trustee by so notifying the Trustee and the Issuers in writing.  The Issuers may remove the Trustee (subject
to the prior written approval of the FCC, if required by the Communications
Act, including Section 310(d), and the rules and regulations promulgated
thereunder) if:

 

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

 

(b)           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;

 

(c)           the Trustee is no longer in compliance with
the foreign ownership provisions of Section 310 of the Communications Act
and the rules and regulations promulgated thereunder.

 

(d)           a Custodian or public officer takes charge
of the Trustee or its property; or

 

(e)           the Trustee becomes incapable of acting.

 

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If the Trustee resigns or is removed or if a
vacancy exists in the office of Trustee for any reason, the Issuers shall
promptly appoint a successor Trustee. 
Within one year after the successor Trustee takes office, the Holders of
a majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Issuers.

 

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

 

If the Trustee after written request by any Holder
of a Note who has been a Holder of a Note for at least six months fails to
comply with Section 7.10 hereof, such Holder of a Note may petition any
court of competent jurisdiction for the removal of the Trustee and the appointment
of a successor Trustee.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Issuers.  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 of the Notes. 
The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, provided all sums owing to the Trustee hereunder
have been paid and subject to the Lien provided for in Section 7.07
hereof.  Notwithstanding replacement of
the Trustee pursuant to this Section 7.08, the Issuers’ obligations under Section 7.07
hereof shall continue for the benefit of the retiring Trustee.

 

If a Trustee is removed without cause, all
fees and expenses of the Trustee incurred in the administration of the trust or
in the performance of the duties hereunder shall be paid to the Trustee.

 

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, the successor corporation without any further
act shall be the successor Trustee.

 

SECTION 7.10.                                                            Eligibility;
Disqualification.

 

There shall at all times be a Trustee
hereunder which shall be a corporation organized and doing business under the
laws of the United States of America or of any state thereof authorized under
such laws to exercise corporate trustee power, shall be subject to supervision
or examination by federal or state authority and shall have a combined capital
and surplus of at least $25 million as set forth in its most recent published
annual report of condition.

 

This Indenture shall always have a Trustee
who satisfies the requirements of TIA § 310(a)(1), (2) and (5).  The Trustee is subject to TIA § 310(b).

 

73

 

SECTION 7.11.                                                            Preferential
Collection of Claims Against Issuers.

 

The Trustee is subject to TIA § 311(a),
excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated therein.

 

ARTICLE 8

 

DISCHARGE OF INDENTURE;
DEFEASANCE

 

SECTION 8.01.                                                            Termination
of the Issuers’ Obligations.

 

(a)           The Issuers may
terminate their Obligations as to all outstanding Notes, except those
obligations referred to in paragraph (b) of this Section 8.01, when

 

(1)           either

 

(A)          all the Notes theretofore authenticated and
delivered (except lost, stolen or destroyed Notes which have been replaced or
paid and Notes for whose payment money has theretofore been deposited in trust
or segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust) have been delivered to the Trustee for
cancellation; or

 

(B)           all Notes not theretofore delivered to the
Trustee for cancellation have become due and payable and the Company has
irrevocably deposited or caused to be deposited with the Trustee funds in an
amount sufficient to pay and discharge the entire Indebtedness on the Notes not
theretofore delivered to the Trustee for cancellation, for principal of,
premium, if any, and interest on the Notes to the date of deposit together with
irrevocable instructions from the Company directing the Trustee to apply such
funds to the payment thereof at maturity or redemption, as the case may be;

 

(2)           the Company has paid or caused to be paid
all other sums payable under this Indenture by the Company; and

 

(3)           the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel stating that all conditions
precedent under this Indenture relating to the satisfaction and discharge
hereof have been complied with; provided, however,  that such
counsel may rely, as to matters of fact, on a certificate or certificates of
Officers of the Company.

 

(b)           Notwithstanding
paragraph (a) of this Section 8.01, the Issuers’ obligations in
Sections 2.03, 2.04, 2.05, 2.06, 7.07, 7.08, 8.07 and 8.08 hereof shall
survive until the Notes are no longer outstanding pursuant to Section 2.08
hereof.  After the Notes are no longer outstanding,
the Issuers’ obligations in Sections 7.07, 7.08, 8.07 and 8.08 hereof
shall survive such satisfaction and discharge.

 

74

 

SECTION 8.02.                                                       Option
To Effect Legal Defeasance or Covenant Defeasance.

 

The Company may, at the option of its Board
of Directors evidenced by a resolution set forth in an Officers’ Certificate,
at any time, with respect to the Notes, elect to have either Section 8.03
or 8.04 hereof applied to all outstanding Notes upon compliance with the conditions
set forth below in this Article 8.

 

SECTION 8.03.                                                       Legal
Defeasance and Covenant Discharge.

 

Upon the Company’s exercise under Section 8.02
hereof of the option applicable to this Section 8.03, the Issuers shall be
deemed to have been discharged from their obligations with respect to all
outstanding Notes on the date the conditions set forth below are satisfied
(hereinafter, “Legal Defeasance”).  For this purpose, such Legal Defeasance means
that the Issuers 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 8.06 hereof
and the other Sections hereof referred to in clauses (a) and (b) below,
and to have satisfied all its other obligations under such Notes and this
Indenture (and the Trustee, on demand of and at the expense of the Issuers,
shall execute proper instruments acknowledging the same), except for the
following which shall survive until otherwise terminated or discharged
hereunder:  (a) the rights of
Holders of outstanding Notes to receive, solely from the funds deposited with
the Trustee in accordance with Sections 8.05 and 8.06 hereof, payments in
respect of the principal of, premium, if any, and interest on such Notes when
such payments are due, or on the redemption date, as the case may be, (b) the
Issuers’ obligations with respect to such Notes under Sections 2.05, 2.07,
2.08, 2.10, 2.11 and 4.02 hereof, (c) the rights, powers, trusts, duties
and immunities of the Trustee hereunder and the Issuers’ obligations in
connection therewith and (d) this Section 8.03.  Subject to compliance with this Article 8,
the Company may exercise its option under this Section 8.03
notwithstanding the prior exercise of its option under Section 8.04 hereof
with respect to the Notes.

 

SECTION 8.04.                                                       Covenant
Defeasance.

 

Upon the Company’s exercise under Section 8.02
hereof of the option applicable to this Section 8.04, the Company shall be
released from its obligations under the covenants contained in Sections 3.08,
4.03, 4.04, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.17 and 5.01
hereof with respect to the outstanding Notes on and after the date the
conditions set forth below are satisfied (hereinafter, “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 (it being understood that such Notes shall not be deemed outstanding
for GAAP).  For this purpose, such
Covenant Defeasance means that, with respect to the outstanding Notes, the
Issuers 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(c) hereof, but,
except as specified above, the remainder hereof and such Notes shall be unaffected
thereby.  In addition, upon the Company’s
exercise under Section 8.02 hereof of the option applicable to this Section 8.04,
Sections 6.01(c) through 6.01(h) shall not constitute Events of Default.

 

75

 

SECTION 8.05.                                                       Conditions to Legal or Covenant Defeasance.

 

The following shall be the conditions to the
application of either Section 8.03 or Section 8.04 hereof to the outstanding
Notes:

 

(a)           the Company shall
irrevocably have deposited or caused to be deposited with the Trustee (or
another trustee satisfying the requirements of Section 7.10 hereof who
shall agree to comply with the provisions of this Article 8 applicable to
it) in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of
such Notes, (i) cash in U.S. Dollars, (ii) non-callable Government
Securities which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than one
day before the due date of any payment, cash in U.S. Dollars, or (iii) a
combination thereof, in such amounts, as will be sufficient in each case, in
the opinion of a nationally recognized firm of independent public accountants
selected by the Trustee expressed in a written certification thereof delivered
to the Trustee, to pay and discharge and which shall be applied by the Trustee
(or other qualifying trustee) to pay and discharge the principal of, premium,
if any, and interest on the outstanding Notes on the stated maturity or on the
applicable optional redemption date, as the case may be;

 

(b)           in the case of an
election under Section 8.03 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States reasonably satisfactory
to the Trustee confirming that (i) the Company has received from, or there
has been published by, the Internal Revenue Service a ruling or (ii) since
the Issue Date, there has been a change in the applicable federal income tax
law, in each case to the effect that, and based thereon such Opinion of Counsel
shall confirm that, the Holders of the outstanding Notes will not recognize
income, gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax in the same amounts, in
the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

 

(c)           in the case of an
election under Section 8.04 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States reasonably acceptable to
the Trustee confirming that the Holders of the outstanding Notes will not recognize
income, gain or loss for federal income tax purposes as a result of such
Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such Covenant Defeasance had not occurred;

 

(d)           no Default or Event of
Default with respect to the Notes shall have occurred and be continuing on the
date of such deposit or, in so far as Section 6.01(i) or 6.01(j) hereof
is concerned, at any time in the period ending on the 91st day after the date
of such deposit (it being understood that this condition shall not be deemed
satisfied until the expiration of such period);

 

76

 

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

 

(f)            the Company shall have
delivered to the Trustee an Officers’ Certificate stating that the deposit made
by the Company pursuant to its election under Section 8.03 or 8.04 hereof
was not made by the Company with the intent of preferring the Holders of the
Notes over any other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Company or others;
and

 

(g)           the Company shall have
delivered to the Trustee an Officers’ Certificate stating that all conditions
precedent provided for relating to either the Legal Defeasance under Section 8.03
hereof or the Covenant Defeasance under Section 8.04 hereof (as the case
may be) have been complied with as contemplated by this Section 8.05.

 

SECTION 8.06.                                                       Deposited
Money and Government Securities To Be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to Section 8.07 hereof, all
money and Government Securities (including the proceeds thereof) deposited with
the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.06,
the “Trustee”) pursuant to Section 8.05
hereof 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
an Issuer acting as Paying Agent) as the Trustee may determine, to the Holders
of such Notes of all sums due and to become due thereon in respect of
principal, premium, if any, and interest, but such money need not be segregated
from other funds except to the extent required by law.

 

The Issuers shall 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 8.05 hereof or
the principal and interest received in respect thereof other than any such tax,
fee or other charge which by law is for the account of the Holders of the
outstanding Notes.

 

Anything in this Article 8 to the
contrary notwithstanding, the Trustee shall 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 8.05 hereof which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee (which may be the
opinion delivered under Section 8.05(a) hereof), are in excess of the
amount thereof which would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

 

SECTION 8.07.                                                       Repayment
to Issuers.

 

Any money deposited with the Trustee or any
Paying Agent, or then held by the Issuers, in trust for the payment of the
principal of, premium, if any, or interest on any Note and remaining unclaimed
for two years after such principal, and premium, if any, or interest has become
due and payable shall be paid to the Issuers on their request or (if then held
by the Issuers) shall be discharged from such trust; and the Holder of such
Note shall thereafter, as a general creditor, 

 

77

 

look only to
the Issuers for payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Issuers
as trustees 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 Issuers
cause to be published once, in the New York Times and 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 will be repaid to the Issuers.

 

SECTION 8.08.                                                       Reinstatement.

 

If the Trustee or Paying Agent is unable to
apply any United States Dollars or Government Notes in accordance with Section 8.03
or 8.04 hereof, as the case may be, by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Issuers’ obligations under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.03 or 8.04 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section 8.03
or 8.04 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal
of, 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 of
such Notes 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 of Notes.

 

Notwithstanding Section 9.02 hereof, the
Issuers, the Guarantors and the Trustee may amend or supplement this Indenture,
the Notes and the Guarantees or any amended or supplemental indenture without
the consent of any Holder of a Note:

 

(a)           to cure any ambiguity,
defect or inconsistency;

 

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

 

(c)           to provide for the
assumption of the obligations of the Issuers or any Guarantor to the Holders of
the Notes in the case of a merger or consolidation pursuant to Article 5
or Article 10 hereof;

 

78

 

(d)           to make any change that
would provide any additional rights or benefits to the Holders of the Notes or
that does not adversely affect the legal rights hereunder of any Holder of the
Notes; or

 

(e)           to comply with
requirements of the Commission in order to effect or maintain the qualification
hereof under the TIA.

 

Upon the request of the Issuers accompanied
by a resolution of the Boards of Directors of each Issuer and a resolution of
the Board of Directors of each Guarantor and upon receipt by the Trustee of the
documents described in Section 11.04 hereof, the Trustee shall join with
the Issuers and the Guarantors in the execution of any amended or supplemental
Indenture authorized or permitted by the terms hereof and shall make any
further appropriate agreements and stipulations which may be therein contained,
but the Trustee shall not be obligated to enter into such amended or
supplemental Indenture which affects its own rights, duties or immunities under
this Indenture or otherwise.

 

SECTION 9.02.                                                       With
Consent of Holders of Notes.

 

The Issuers, the Guarantors and the Trustee
may amend or supplement this Indenture, the Notes or the Guarantees or any
amended or supplemental Indenture with the written consent of the Holders of
Notes of at least a majority of the aggregate principal amount of Notes then outstanding
(including consents obtained in connection with a tender offer or exchange
offer for the Notes), and any existing Default and its consequences or compliance
with any provision hereof or the Notes may be waived with the consent of the
Holders of a majority of the aggregate principal amount of Notes then
outstanding (including consents obtained in connection with a tender offer or
exchange offer for the Notes). 
Notwithstanding the foregoing, without the consent of each Holder
affected, an amendment or waiver may not (with respect to any Notes held by a
non-consenting Holder of Notes):

 

(a)           reduce the aggregate
principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

 

(b)           reduce the principal of
or change the fixed maturity of any Note or alter the provisions with respect
to the redemption of the Notes;

 

(c)           reduce the rate of or
change the time for payment of interest on any Note;

 

(d)           waive a Default or
Event of Default in the payment of principal of or 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 and a waiver of the payment default that resulted from such acceleration);

 

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

 

(f)            make any change in the
provisions hereof relating to waivers of past Defaults or the rights of Holders
of Notes to receive payments of principal of or interest on the Notes;

 

79

 

(g)           waive a redemption
payment or mandatory redemption with respect to any Note;

 

(h)           amend, change or modify
in any material respect the obligation of the Company to make and consummate a
Change of Control Offer in the event of a Change of Control Triggering Event
after such Change of Control Triggering Event has occurred; or

 

(i)            make any change in the
foregoing amendment and waiver provisions.

 

Upon the request of the Issuers accompanied
by a resolution of the Boards of Directors of the Issuers and a resolution of
the Board of Directors of each Guarantor, and upon the filing with the Trustee
of evidence satisfactory to the Trustee of the consent of the Holders of Notes
as aforesaid, and upon receipt by the Trustee of the documents described in Section 11.04
hereof, the Trustee shall join with the Issuers and the Guarantors in the execution
of such amended or supplemental Indenture unless such amended or supplemental
Indenture 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.

 

It shall not be necessary for the consent of
the Holders of Notes under this Section 9.02 to approve the particular
form of any proposed amendment or waiver, but it shall be sufficient if such
consent approves the substance thereof.

 

After an amendment, supplement or waiver
under this Section 9.02 becomes effective, the Issuers shall mail to the
Holders of Notes affected thereby a notice briefly describing the amendment,
supplement or waiver.  Any failure of the
Issuers to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such amended or supplemental Indenture
or waiver.  Subject to Sections 6.04 and
6.07 hereof, the Holders of a majority in aggregate principal amount of the
Notes then outstanding may waive compliance in a particular instance by the
Issuers with any provision hereof or the Notes.

 

SECTION 9.03.                                                       Compliance
with Trust Indenture Act.

 

Every amendment or supplement to this
Indenture and the Notes shall be set forth in an amended or supplemental
Indenture that complies with the TIA as then in effect.

 

SECTION 9.04.                                                       Revocation
and Effect of Consents.

 

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 the waiver,
supplement or amendment becomes effective. 
An amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder of a Note.

 

80

 

The Issuers may fix a record date for
determining which Holders of the Notes must consent to such amendment,
supplement or waiver.  If the Issuers fix
a record date, the record date shall be fixed at (i) the later of 30 days
prior to the first solicitation of such consent or the date of the most recent
list of Holders of Notes furnished to the Trustee prior to such solicitation
pursuant to Section 2.05 hereof or (ii) such other date as the
Issuers shall designate.

 

SECTION 9.05.                                                       Notation
on or Exchange of Notes.

 

The Trustee may place an appropriate notation
about an amendment, supplement or waiver on any Note thereafter
authenticated.  The Issuers in exchange
for all Notes may issue and the Trustee shall authenticate new Notes that
reflect the amendment, supplement or waiver.

 

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.

 

In executing, or accepting the additional
trusts created by, any supplemental indenture permitted by this Article or
the modification thereby of the trusts created by this Indenture, the Trustee
shall receive, and shall by fully protected in relying upon, an Opinion of
Counsel and an Officers’ Certificate stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture.  The Trustee may, but shall not be obligated
to, enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

 

ARTICLE 10

 

GUARANTEES

 

SECTION 10.01.                                                 Guarantee.

 

Each of the Guarantors, jointly and
severally, hereby unconditionally guarantees to each Holder of a Note
authenticated and delivered by the Trustee 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 Issuers hereunder or thereunder,
that

 

(a)           the principal of,
premium, if any, and interest on the Notes will be promptly paid in full when
due, whether at maturity, by acceleration, redemption or otherwise, and interest
on the overdue principal of and interest on the Notes, if any, if lawful, and
all other obligations of the Issuers to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and

 

(b)           in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, that the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated 

 

81

 

maturity, by acceleration or
otherwise.  Failing payment when due of
any amount so guaranteed or any performance so guaranteed for whatever reason,
each of the Guarantors, jointly and severally, will be obligated to pay the
same immediately.

 

Each of the Guarantors, jointly and
severally, hereby agrees that its 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 of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Issuers, 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 of the Guarantors, jointly and
severally, hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Issuers,
any right to require a proceeding first against the Issuers, protest, notice
(except that the Trustee shall provide at least ten days’ prior written notice
to the Issuers on behalf of the Guarantors before taking any action for which
the Communications Act and/or the FCC rules require such notice and which
right to notice is not waivable by any Guarantor) and all demands whatsoever
and covenant that this Guarantee will not be discharged except by complete
performance of the Obligations guaranteed hereby.  If any Holder or the Trustee is required by
any court or otherwise to return to the Issuers or any Guarantor, or any Custodian,
Trustee, liquidator or other similar official acting in relation to either the
Issuers or any Guarantor, any amount paid by either to the Trustee or such
Holder, this Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect.

 

Each of the Guarantors, jointly and
severally, 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 of the Guarantors, jointly and severally,
further agrees that, as between such Guarantor, on the one hand, and the
Holders and the Trustee, on the other hand, (x) the maturity of the
Obligations guaranteed hereby may be accelerated as provided in Article 6
for the purposes of this Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) 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 each Guarantor
for the purpose of this Guarantee. 
Notwithstanding the foregoing, in the event that any Guarantee would
constitute or result in a violation of any applicable fraudulent conveyance or
similar law of any relevant jurisdiction, the liability of the applicable
Guarantor under its Guarantee shall be reduced to the maximum amount
permissible under such fraudulent conveyance or similar law.

 

The Guarantors hereby agree as among
themselves that each Guarantor that makes a payment or distribution under a
Guarantee shall be entitled to a pro rata
contribution from each other Guarantor hereunder based on the net assets of
each other Guarantor.  The preceding sentence
shall in no way affect the rights of the Holders of Notes to the benefits
hereof, the Notes or the Guarantees.

 

Nothing in this Section 10.01 shall
apply to claims of, or payments to, the Trustee under or pursuant to the
provisions of Section 7.07 hereof. 
Nothing contained in this Section 10.01 or 

 

82

 

elsewhere in
this Indenture, the Notes or the Guarantees shall impair, as between any
Guarantor and the Holder of any Note, the obligation of such Guarantor, which
is unconditional and absolute, to pay to the Holder thereof the principal of,
premium, if any, and interest on the Notes in accordance with their terms and
the terms of the Guarantee and this Indenture, nor shall anything herein or
therein prevent the Trustee or the Holder of any Note from exercising all
remedies otherwise permitted by applicable law or hereunder or thereunder upon
the occurrence of an Event of Default.

 

SECTION 10.02.                                                 Execution
and Delivery of Guarantees.

 

To evidence its Guarantee set forth in Section 10.01
hereof, each Guarantor hereby agrees that a notation of such Guarantee
substantially in the form of Exhibit B hereto shall be endorsed by
an officer of such Guarantor on each Note authenticated and delivered by the
Trustee and that this Indenture shall be executed on behalf of such Guarantor
by any of its Officers.  Each of the
Guarantors, jointly and severally, hereby agrees that its Guarantee set forth
in Section 10.01 hereof shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such
Guarantee.  If an officer or Officer
whose signature is on this Indenture or on the Guarantee of a Guarantor no
longer holds that office at the time the Trustee authenticates the Note on
which the Guarantee of such Guarantor is endorsed, the Guarantee of such
Guarantor shall be valid nevertheless. 
The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Guarantees set forth in
this Indenture on behalf of the Guarantors.

 

SECTION 10.03.                                                 Merger,
Consolidation or Sale of Assets of Guarantors.

 

Subject to Section 10.05 hereof, a
Guarantor may not, and the Company will not cause or permit any Guarantor to,
consolidate or merge with or into (whether or not such Guarantor is the
surviving entity), or sell, assign, transfer, lease, convey or otherwise
dispose of all or substantially all of its properties or assets in one or more
related transactions to, another Person other than the Company or another
Guarantor unless:

 

(a)           such Guarantor is the
surviving Person or the Person formed by or surviving any such consolidation or
merger (if other than such Guarantor) or to which such sale, assignment,
transfer, lease, conveyance or other disposition shall have been made is a
corporation, limited partnership or limited liability company organized or
existing under the laws of the United States, any state thereof or the District
of Columbia;

 

(b)           the Person formed by or
surviving any such consolidation or merger (if other than such Guarantor) or
the Person to which such sale, assignment, transfer, lease, conveyance or other
disposition shall have been made assumes all the obligations of such Guarantor,
pursuant to a supplemental indenture in form reasonably satisfactory to the
Trustee, under the Notes and this Indenture; and

 

(c)           immediately after such
transaction, no Default or Event of Default exists.

 

Nothing contained in this Indenture shall
prevent any consolidation or merger of a Guarantor with or into the Company or
another Guarantor that is a Wholly Owned Restricted Subsidiary of the Company
or shall prevent any sale or conveyance of the property of a Guarantor as an 

 

83

 

entirety or
substantially as an entirety to the Company or another Guarantor that is a
Wholly Owned Restricted Subsidiary of the Company.  Except as set forth in Articles 4 and 5
hereof, nothing contained in this Indenture shall prevent any consolidation or
merger of a Guarantor with or into the Company or another Guarantor that is a
Restricted Subsidiary of the Company or shall prevent any sale or conveyance of
the property of a Guarantor as an entirety or substantially as an entirety to
the Company or another Guarantor that is a Restricted Subsidiary of the
Company.

 

SECTION 10.04.                                                 Successor
Corporation Substituted.

 

Upon any consolidation, merger, sale or
conveyance described in paragraphs (a) through (c) of Section 10.03
hereof, and upon the assumption by the successor corporation, by supplemental
indenture, executed and delivered to the Trustee and satisfactory in form to
the Trustee, of any Guarantee previously signed by the Guarantor and the due
and punctual performance of all of the covenants and conditions hereof to be
performed by the Guarantor, such successor corporation shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor.  Such successor
corporation thereupon may cause to be signed any or all of the Guarantees to be
issuable hereunder by such Guarantor and delivered to the Trustee.  All the Guarantees so issued shall in all
respects have the same legal rank and benefit under this Indenture as the
Guarantees theretofore and thereafter issued in accordance with the terms
hereof as though all of such Guarantees had been issued at the date of the
execution of such Guarantee by such Guarantor.

 

SECTION 10.05.                                                 Releases
from Guarantees.

 

If pursuant to any direct or indirect sale of
assets (including, if applicable, all of the Capital Stock of any Guarantor) or
other disposition by way of merger, consolidation or otherwise, the assets sold
include all or substantially all of the assets of any Guarantor or all of the
Capital Stock of any such Guarantor, then such Guarantor or the Person
acquiring the property (in the event of a sale or other disposition of all or
substantially all of the assets of such a Guarantor) shall be released and
relieved of its obligations under its Guarantee or Section 10.03 and Section 10.04
hereof, as the case may be; provided that
in the event of an Asset Sale, the Net Proceeds from such sale or other
disposition are applied in accordance with the provisions of Section 4.10
hereof.  In addition, a Guarantor shall
be released and relieved of its obligations under its Guarantee or Section 10.03
and Section 10.04 hereof, as the case may be if (1) such Guarantor is
dissolved or liquidated in accordance with the provisions hereof; (2) the
Company designates any such Guarantor as an Unrestricted Subsidiary in
compliance with the terms hereof; or (3) the Issuers effectively discharge
their obligations or defease the Notes in compliance with the terms of Article 8
hereof.  Upon delivery by the Company to
the Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect
that such sale or other disposition was made by the Company in accordance with
the provisions hereof, including without limitation Section 4.10 hereof,
if applicable, the Trustee shall execute any documents pursuant to written
direction of the Company in order to evidence the release of any such Guarantor
from its obligations under its Guarantee. 
Any such Guarantor not released from its obligations under its Guarantee
shall remain liable for the full amount of principal of and interest on the
Notes and for the other obligations of such Guarantor under this Indenture as
provided in this Article 10.

 

84

 

ARTICLE 11

 

MISCELLANEOUS

 

SECTION 11.01.                                                 Trust
Indenture Act Controls.

 

If any provision hereof limits, qualifies or
conflicts with the duties imposed by TIA § 318(c), the imposed duties shall
control.

 

SECTION 11.02.                                                 Notices.

 

Any notice or communication by the Issuers,
any Guarantor or the Trustee to the other is duly given if in writing by
hand-delivery, registered first-class mail, next-day air courier or facsimile:

 

	
  If to the Issuers or any Guarantor, to it
  care of:

  
	
   

  
	
  DIRECTV Holdings LLC

  
	
  2230 East Imperial Highway

  
	
  El Segundo, California 90245

  
	
  Facsimile No.: (310) 964-0839

  
	
  Attention: General Counsel

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Weil, Gotshal & Manges LLP

  
	
  767 Fifth Avenue

  
	
  New York, New York 10153

  
	
  Attention: Erika L. Weinberg, Esq.

  
	
   

  
	
  If to the Trustee:

  
	
   

  
	
  The Bank of New York Trust Company, N.A.

  
	
  700 South Flower Street, Suite 500

  
	
  Los Angeles, CA 90017

  
	
  Facsimile No.: (213) 630-6298

  
	
  Attention: Corporate Unit

  

 

The Issuers, any Guarantor or the Trustee, by
notice to the other, may designate additional or different addresses for
subsequent notices or communications.

 

All notices and communications (other than
those sent to Holders of Notes) shall be deemed to have been duly given:  when delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage prepaid,
if mailed; one Business Day after being timely delivered to a next-day air
courier; and when transmission is confirmed, if sent by facsimile.

 

85

 

Any notice or communication to a Holder of a
Note 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 register kept by the Registrar.  Any notice or communication shall also be so
mailed to any Person described in TIA § 313(c), to the extent required by the
TIA.  Failure to mail a notice or
communication to a Holder of a Note or any defect in it shall not affect its
sufficiency with respect to other Holders of Notes.

 

If a notice or communication is mailed in the
manner provided above within the time prescribed, it is duly given, whether or
not the addressee receives it.

 

If the Issuers mail a notice or communication
to Holders of Notes, they shall mail a copy to the Trustee and each Agent at the
same time.

 

The Trustee agrees to accept and act upon
facsimile and electronic mail transmission of written instructions and/or
directions pursuant to this Indenture given by the Issuers, provided, however that: (i) the
Issuers, subsequent to such facsimile or electronic mail transmission of written
instructions and/or directions, shall provide the originally executed
instructions and/or directions to the Trustee in a timely manner and (ii) such
originally executed instructions and/or directions shall be signed by an
authorized “Officer” of the Company.

 

SECTION 11.03.                                                 Communication
by Holders of Notes with Other Holders of Notes.

 

Holders of the Notes may communicate pursuant
to TIA § 312(b) with other Holders of Notes with respect to their rights
under this Indenture or the Notes.  The
Issuers, the Trustee, the Registrar and anyone else shall have the protection
of TIA § 312(c).

 

SECTION 11.04.                                                 Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or application by the
Issuers to the Trustee to take any action under this Indenture (except in
connection with the original issuance of the Notes), the Issuers shall furnish
to the Trustee:

 

(a)           an Officers’
Certificate of each Issuer in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

 

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

 

86

 

SECTION 11.05.                                                 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 TIA § 314(a)(4)) shall include:

 

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

 

(b)           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;

 

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

 

(d)           a statement as to
whether or not, in the opinion of such Person, such condition or covenant has
been satisfied.

 

SECTION 11.06.                                                 Rules by
Trustee and Agents.

 

The Trustee may make reasonable rules for
action by or at a meeting of Holders of Notes. 
The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

 

SECTION 11.07.                                                 No
Personal Liability of Directors, Owners, Employees, Incorporators and
Stockholders.

 

No director, owner, officer, employee,
incorporator or stockholder of the Issuers, the Guarantors or any of their Affiliates,
as such, shall have any liability for any obligations of the Issuers, the
Guarantors and any of their Affiliates under the Notes, the Guarantees or this
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  Each
Holder of the Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes. 
Such waiver may not be effective to waive liabilities under the federal
securities laws and it is the view of the Commission that such waiver is
against public policy.

 

SECTION 11.08.                                                 Governing
Law.

 

The internal law of the State of New York
shall govern and be used to construe this Indenture, the Notes and the
Guarantees without giving effect to applicable principles of conflicts of law
to the extent that the application of the laws of another jurisdiction would be
required thereby.

 

87

 

SECTION 11.09.                                                 No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret
another indenture, loan or debt agreement of the Issuers or any of their
respective Subsidiaries.  Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

 

SECTION 11.10.                                                 Successors.

 

All agreements of the Issuers and the
Guarantors in this Indenture and the Notes and the Guarantees shall bind the
successors of the Issuers and the Guarantors, respectively.  All agreements of the Trustee in this
Indenture shall bind its successor.

 

SECTION 11.11.                                                 Severability.

 

In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

SECTION 11.12.                                                 Counterpart
Originals.

 

The parties may sign any number of copies
hereof.  Each signed copy shall be an
original, but all of them together represent the same agreement.

 

SECTION 11.13.                                                 Table
of Contents, Headings, Etc.

 

The Table of Contents and headings of the
Articles and Sections hereof have been inserted for convenience of reference
only, are not to be considered a part hereof and shall in no way modify or
restrict any of the terms or provisions hereof.

 

SECTION 11.14.                                                 Force
Majeure.

 

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

 

SECTION 11.15.                                                 Waiver
of Jury Trial.

 

EACH OF THE ISSUERS 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 INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

[Signatures on following page]

 

88

 

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

 

	
   

  	
  DIRECTV HOLDINGS LLC, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV FINANCING CO., INC., as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV, INC., as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV CUSTOMER SERVICES, INC.,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV MERCHANDISING, INC.,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV ENTERPRISES, LLC,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-1

 

	
   

  	
  DIRECTV OPERATIONS, LLC,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  LABC PRODUCTIONS, LLC,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  DIRECTV HOME SERVICES, LLC,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  DIRECTV PROGRAMMING HOLDINGS I, LLC,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  DIRECTV PROGRAMMING HOLDINGS II, LLC,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-2

 

	
   

  	
  THE BANK OF
  NEW YORK TRUST

  COMPANY, N.A.

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-3

 

EXHIBIT A

 

[Face of Note]

7.625% Senior Note due 2016

 

Cert. No.

CUSIP No. [                   ]

 

DIRECTV Holdings LLC and

DIRECTV Financing Co., Inc.

 

jointly and severally promise
to pay to

 

or its registered assigns the
principal sum of                        

 

Dollars on May 15, 2016

 

Interest Payment Dates:  May 15 and November 15, commencing November 15,
2008.

 

Record Dates:  May 1 and November 1 (whether or
not a Business Day).

 

IN WITNESS WHEREOF, the Issuers have caused
this Note to be duly executed.

 

Dated:

 

	
   

  	
  DIRECTV
  HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV
  FINANCING CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

This is one of the Notes referred to in

the within-mentioned Indenture:

 

THE BANK OF NEW YORK TRUST COMPANY, N.A. , as Trustee

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
					

 

A-1

 

(Back of Note)

 

Capitalized terms used herein have the
meanings assigned to them in the Indenture (as defined below) unless otherwise
indicated.

 

(1)           Interest.  DIRECTV Holdings LLC, a Delaware limited
liability company (the “Company”) and
DIRECTV Financing Co., Inc., a Delaware corporation (“DIRECTV
Financing” and, together with the Company, the “Issuers”)
jointly and severally promise to pay interest on the principal amount of this
Note at the rate and in the manner specified below.  Interest will accrue at 7.625% per annum and
will be payable semi-annually in cash on each May 15 and November 15,
commencing November 15, 2008, or if any such day is not a Business Day on
the next succeeding Business Day (each, an “Interest Payment Date”)
to Holders of record of the Notes at the close of business on the immediately
preceding May 1 and November 1, whether or not a Business Day.  Interest will be computed on the basis of a
360-day year consisting of twelve 30-day months.  Interest shall accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from the
date of original issuance.  To the extent
lawful, the Issuers shall pay interest on overdue principal at the rate of the
then applicable interest rate on the Notes; they shall pay interest on overdue
installments of interest (without regard to any applicable grace periods) at
the same rate to the extent lawful.  In
addition, Holders may be entitled to the benefits of certain provisions of the
Registration Rights Agreement.

 

(2)           Method of
Payment.  The Issuers shall
pay interest on the Notes (except defaulted interest) to the Persons who are
registered Holders of Notes at the close of business on the record date next
preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date.  The Holder hereof must surrender this Note to
a Paying Agent to collect principal payments. 
The Issuers will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and
private debts.  The Notes will be payable
both as to principal and interest at the office or agency of the Issuers
maintained for such purpose or, at the option of the Issuers, payment of
interest may be made by check mailed to the Holders of Notes at their
respective addresses set forth in the register of Holders of Notes.  Unless otherwise designated by the Issuers,
the Issuers’ office or agency will be the office of the Trustee maintained for
such purpose.

 

(3)           Paying Agent
and Registrar.  Initially, the
Trustee will act as Paying Agent and Registrar. 
The Issuers may change any Paying Agent, Registrar or co-registrar
without prior notice to any Holder of a Note. 
The Company may act in any such capacity.

 

(4)           Indenture.  The Issuers issued the Notes under an
Indenture, dated as of May 14, 2008 (the “Indenture”),
among the Issuers, the Guarantors and the Trustee.  This is one of an issue of Notes of the
Issuers issued, or to be issued, under the Indenture.  The Issuers shall be entitled to issue
additional Notes pursuant to Section 2.02 of the Indenture.  All Notes issued under the Indenture shall be
treated as a single class of Notes under the Indenture.  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb), as in effect
on the date of the Indenture.  The Notes
are subject to all such terms, and Holders of Notes are referred to the Indenture
and such act for a statement of such terms. 
The terms of the Indenture shall govern any inconsistencies between the
Indenture and the Notes.  The Notes are
senior unsecured obligations of the Issuers.

 

A-2

 

(5)     Optional
Redemption.  (a)  Except
as provided in paragraphs (b) and (c) below, the Notes will not be redeemable
at the Company’s option prior to May 15, 2012.  Thereafter, the Notes will be subject to
redemption at the option of the Company, in whole or in part, upon not less
than 30 nor more than 60 days’ notice, at the redemption prices (expressed as
percentages of principal amount) set forth below, together with accrued and
unpaid interest thereon to the applicable redemption date, if redeemed during
the 12-month period beginning on May 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2012

  	
   

  	
  103.813

  	
  %

  
	
  2013

  	
   

  	
  101.906

  	
  %

  
	
  2014 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b) 
Notwithstanding the foregoing, at any time and from time to time prior to May 15,
2011, the Company may redeem up to 35% of the aggregate principal amount of the
Notes outstanding at a redemption price equal to 107.625% of the principal
amount thereof on the redemption date, together with accrued and unpaid
interest to such redemption date, with the net cash proceeds of one or more
public or private sales of the Company’s Equity Interests (other than Disqualified
Stock) (including sales to or capital contributions from Parent, regardless of
whether Parent obtains such funds from an offering of its Equity Interests, the
incurrence of Indebtedness or otherwise), other than proceeds from a sale to
the Company or any of its Subsidiaries or any employee benefit plan in which
the Company or any of its Subsidiaries participates; provided that (a) at least 65% in aggregate principal
amount of the Notes originally issued remain outstanding immediately after the
occurrence of such redemption; and (b) the sale of such Equity Interests
is made in compliance with the terms of the Indenture.

 

(c)  In addition, at any time and from
time to time prior to May 15, 2012, the Company may redeem all or any
portion of the Notes outstanding at a redemption price equal to (a) 100%
of the aggregate principal amount of the Notes to be redeemed, together with
accrued and unpaid interest to such redemption date, plus (b) the Make
Whole Amount.

 

“Make Whole Amount”
means, with respect to any Note at any redemption date, the greater of (i) 1.0%
of the principal amount of such Note and (ii) the excess, if any, of (A) an
amount equal to the present value of (1) the redemption price of such Note
at May 15, 2012 plus (2) the remaining scheduled interest payments on
the Notes to be redeemed (subject to the right of Holders on the relevant
record date to receive interest due on the relevant interest payment date) to May 15,
2012 (other than interest accrued to the redemption date), computed using a discount
rate equal to the Treasury Rate plus 50 basis points, over (B) the principal
amount of the Notes to be redeemed.

 

“Treasury Rate”
means, at the time of computation, the yield to maturity of United States
Treasury Securities with a constant maturity (as compiled and published in the
most recent Federal Reserve Statistical Release H.15(519) which has become
publicly available at least two 

 

A-3

 

Business Days
prior to the redemption date or, if such Statistical Release is no longer
published, any publicly available source of similar market data) most nearly
equal to the period from the redemption date to May 15, 2012; provided, however, that
if the period from the redemption date to May 15, 2012 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 May 15, 2012 is less
than one year, the weekly average yield on actually traded United States
Treasury Securities adjusted to a constant maturity of one year shall be used.

 

(6)           Repurchase
at Option of Holder.  Upon the
occurrence of a Change of Control Triggering Event, the Company shall make an
offer to purchase on the Change of Control Payment Date all outstanding Notes
at a purchase price equal to 101% of the aggregate principal amount thereof,
together with accrued and unpaid interest thereon to the date of
repurchase.  Holders of Notes that are
subject to an offer to purchase will receive a Change of Control Offer from the
Company prior to any related Change of Control Payment Date and may elect to
have such Notes purchased by completing the form entitled “Option of Holder To
Elect Purchase” appearing below.

 

When the cumulative amount of Excess Proceeds
that have not been applied in accordance with Section 4.10 of the
Indenture exceeds $100.0 million, the Company shall make an offer to all
Holders of the Notes (an “Excess  Proceeds  Offer”) to
purchase the maximum principal amount of Notes that may be purchased out of
such Excess Proceeds at an offer price in cash in an amount equal to 100% of
the principal amount thereof, together with accrued and unpaid interest to the
date fixed for the closing of such offer in accordance with the procedures set
forth in the Indenture. To the extent the Company or a Restricted Subsidiary is
required under the terms of Indebtedness of the Company or such Restricted
Subsidiary which is ranked equally with the Notes with any proceeds which
constitute Excess Proceeds under the Indenture, the Company shall make a pro
rata offer to the holders of all other pari passu
Indebtedness (including the Notes) with such proceeds.  If the aggregate principal amount of Notes
and other pari passu Indebtedness surrendered by
holders thereof exceeds the amount of such Excess Proceeds, the Trustee shall
select the Notes and other pari passu
Indebtedness to be purchased on a pro rata basis.  Holders of Notes that are subject to an offer
to purchase will receive a Excess Proceeds Offer from the Company prior to any
related Purchase Date and may elect to have such Notes purchased by completing
the form entitled “Option of Holder To Elect Purchase” appearing below.

 

(7)           Notice of
Redemption.  Notice of
redemption shall be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder whose Notes are to be redeemed at its
registered address.  Notes may be
redeemed in part but only in whole multiples of $2,000, unless all of the Notes
held by a Holder of Notes are to be redeemed. 
On and after the redemption date, interest ceases to accrue on Notes or
portions of them called for redemption unless the Company fails to redeem such
Notes or such portions thereof.

 

(8)           Termination of Covenants.  From and after the first date on which the
Notes are rated Investment Grade by both Rating Agencies and notwithstanding
that the Notes may cease to be so rated thereafter, Sections 3.08 (Excess
Proceeds Offer), 4.07 (Limitation on Restricted 

 

A-4

 

Payments, 4.09 (Limitation on
Incurrence of Indebtedness), 4.10 (Limitation on Asset Sales), 4.11 (Limitation
on Transactions with Affiliates), and 5.01(d)(i) and (ii) (Merger,
Consolidation or Sale of Assets) of the Indenture will not apply.

 

(9)           Denominations,
Transfer, Exchange.  The Notes
are in registered form without coupons in denominations of $2,000 and integral
multiples of $1,000.  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 of a Note, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture.  The
Registrar need not exchange or register the transfer of any Note or portion of
a Note selected for redemption.  Also, it
need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed.

 

(10)      Persons Deemed Owners.  Prior to due presentment to the Trustee for
registration of the transfer of this Note, the Trustee, any Agent and the
Issuers may deem and treat the Person in whose name this Note is registered as
their absolute owner for the purpose of receiving payment of principal of,
premium, if any, and interest on this Note and for all other purposes
whatsoever, whether or not this Note is overdue, and neither the Trustee, any
Agent nor the Issuers shall be affected by notice to the contrary.  The registered Holder of a Note shall be
treated as its owner for all purposes.

 

(11)      Amendments, Supplement and
Waivers.  Subject to certain
exceptions, the Indenture, the Notes and the Guarantees or any amended or
supplemental indenture may be amended or supplemented with the written consent
of the Holders of at least a majority of the aggregate principal amount of the
then outstanding Notes (including consents obtained in connection with a tender
offer or exchange offer for the Notes), and any existing Default and its consequences
or compliance with any provision of the Indenture or the Notes may be waived
with the consent of the Holders of a majority of the aggregate principal amount
of Notes then outstanding (including consents obtained in connection with a
tender offer or exchange offer for the Notes). 
Notwithstanding the foregoing, without the consent of each Holder
affected, an amendment or waiver may not (with respect to any Notes held by a
non-consenting Holder of Notes) reduce the principal amount of Notes whose
Holders must consent to an amendment, supplement or waiver; reduce the
principal of or change the fixed maturity of any Note or alter the provisions
with respect to the redemption of the Notes; reduce the rate of or change the
time for payment of interest on any Note; waive a Default or Event of Default
in the payment of principal of or 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 and a
waiver of the payment default that resulted from such acceleration); make any
Note payable in money other than that stated in the Notes; make any change in
the provisions of the Indenture relating to waivers of past Defaults or the
rights of Holders of Notes to receive payments of principal of or interest on
the Notes; waive a redemption payment or mandatory redemption with respect to
any Note; amend, change or modify in any material respect the obligation of the
Company to make and consummate a Change of Control Offer in the event of a
Change of Control Triggering Event after such Change of Control Triggering
Event has occurred; or make any change in the foregoing amendment and waiver
provisions.  Notwithstanding the
foregoing, without the consent of any Holder of a Note, the Indenture, the
Notes or the Guarantees or any amended or supplemental indenture may be amended
or supplemented to cure any ambiguity, defect or inconsistency; to 

 

A-5

 

provide for uncertificated
Notes or Guarantees in addition to or in place of certificated Notes or
Guarantees; to provide for the assumption of the obligations of the Issuers or
any Guarantor to the Holders of the Notes in case of a merger or consolidation
pursuant to Article 5 or Article 10 of the Indenture; to make any
change that would provide any additional rights or benefits to the Holders of
the Notes or that does not adversely affect the legal rights under the
Indenture of any such Holder; or to comply with the requirements of the Commission
in order to effect or maintain the qualification of the Indenture under the
Trust Indenture Act.

 

(12)      Defaults and Remedies.  Each of the following constitutes an Event of
Default:

 

(a)           default for 30 days in the payment when due of interest or
additional interest, if any, on the Notes;

 

(b)           default in payment when due of principal of or premium, if
any, on the Notes at maturity, upon repurchase, redemption or otherwise;

 

(c)           failure to comply with Section 3.08, 4.15 or 5.01 of
the Indenture;

 

(d)           default under any other provision of the Indenture or the
Notes, which default remains uncured for 60 days after notice from the Trustee
or the Holders of at least 25% of the aggregate principal amount then
outstanding of the Notes;

 

(e)           default under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company and any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company and any of
its Restricted Subsidiaries), other than Non-Recourse Receivables Subsidiary
Indebtedness, which default is caused by a failure to pay the principal of such
Indebtedness at the final stated maturity thereof within the grace period
provided in such Indebtedness (a “Payment  Default”), and 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, aggregates $100 million or more;

 

(f)            default under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company and any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of
its Restricted Subsidiaries), other than Non-Recourse Receivables Subsidiary
Indebtedness, which default results in the acceleration of such Indebtedness
prior to its express maturity not rescinded or cured within 30 days after such
acceleration, and 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
$100 million or more;

 

(g)           failure by the Company and any of its Restricted
Subsidiaries to pay final judgments (other than any judgment as to which a
reputable insurance company has accepted full liability) aggregating $100
million or more, which judgments are not stayed within 60 days after their
entry other than judgments in respect of Non-Recourse Receivables Subsidiary
Indebtedness;

 

A-6

 

(h)           any Guarantee of a Significant Subsidiary shall be held in
a judicial proceeding to be unenforceable or invalid or shall cease for any reason
to be in full force and effect, or any Guarantor that qualifies as a
Significant Subsidiary, or any Person acting on behalf of any Guarantor that
qualifies as a Significant Subsidiary, shall deny or disaffirm its obligations
under its Guarantee;

 

(i)            the Company, DIRECTV Financing or any Significant
Subsidiary of the Company pursuant to or within the meaning of Bankruptcy Law (i) commences
a voluntary case; (ii) consents to the entry of an order for relief
against it in an involuntary case; (iii) consents to the appointment of a
Custodian of it or for all or substantially all of its property; or (iv) makes
a general assignment for the benefit of its creditors; and

 

(j)            a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that: (i) is for relief against the
Company, DIRECTV Financing or any Significant Subsidiary of the Company in an
involuntary case; (ii) appoints a custodian of the Company, DIRECTV
Financing or any Significant Subsidiary of the Company or for all or substantially
all of the property of the Company, DIRECTV Financing or any Significant Subsidiary
of the Company; or (iii) orders the liquidation of the Company, DIRECTV
Financing or any Significant Subsidiary of the Company, and the order or decree
remains unstayed and in effect for 60 consecutive days.

 

If an Event of Default (other than an Event
of Default relating to an Issuer specified in clause (i) or (j) above)
occurs and is continuing, the Trustee by notice to the Issuers, or the Holders
of at least 25% of the aggregate principal amount then outstanding of the Notes
by written notice to the Issuers and the Trustee, may declare all the Notes to
be due and payable immediately. Notwithstanding the foregoing, in the case of
an Event of Default specified in clause (i) or (j) above with respect
to an Issuer, all outstanding Notes shall become and immediately be due and payable
without further action or notice. 
Holders of the Notes may not enforce the Indenture or the Notes except
as provided in the Indenture.  The
Trustee may withhold from Holders of the Notes notice of any continuing Default
or Event of Default (except a Default or Event of Default relating to the
payment of principal or interest) if it determines that withholding notice is
in such Holders’ interest.

 

The Holders of a majority in aggregate
principal amount of the then outstanding Notes by written notice to the Trustee
may on behalf of all the Holders rescind an acceleration and its consequences
if the rescission would not conflict with any judgment or decree and if all
existing Events of Default (except nonpayment of principal, interest or premium
that has become due solely because of the acceleration) have been cured or
waived.  The Holders of a majority in aggregate
principal amount of the then outstanding Notes, by written notice to the
Trustee, may on behalf of the Holders of all of the Notes waive any existing Default
or Event of Default and its consequences under the Indenture, except a
continuing Default or Event of Default in the payment of interest or premium
on, or principal of, the Notes.

 

A-7

 

The Issuers are required to deliver to the
Trustee annually a statement regarding compliance with the Indenture, and the
Issuers are required upon becoming aware of any Default or Event of Default to
deliver to the Trustee a statement specifying such Default or Event of Default.

 

All powers of the Trustee under the Indenture
will be subject to applicable provisions of the Communications Act, including,
without limitation, the requirements of prior approval for de facto or de jure transfer of control or assignment of Title III
licenses.

 

(13)      Trustee Dealings with
Issuers.  The Trustee under
the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Issuers or their
Subsidiaries, and may otherwise deal with the Issuers or their Subsidiaries, as
if it were not Trustee; however, if the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the
Commission for permission to continue as Trustee or resign.

 

(14)      No Personal Liabilities of
Directors, Owners, Employees, Incorporators and Stockholders.  No director, owner, officer, employee,
incorporator or stockholder of the Issuers, the Guarantors or any of their
Affiliates, as such, shall have any liability for any obligations of the
Issuers, the Guarantors or any of their Affiliates under this Note, the
Guarantees or the Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. 
Each Holder of Notes by accepting a Note waives and releases all such
liability.  The waiver and release are
part of the consideration for issuance of the Notes.

 

(15)      Guarantees.  Payment of principal and interest (including
interest on overdue principal and overdue interest, if lawful) is
unconditionally guaranteed, jointly and severally, by each of the Guarantors.

 

(16)      Authentication.  This Note shall not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.

 

(17)      Abbreviations.  Customary abbreviations may be used in the
name of a Holder of a Note or an assignee, such as TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties), JT TEN ( = joint tenants with
right of survivorship and not as tenants in common), CUST (5 Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

 

(18)      CUSIP Numbers.  Pursuant to a recommendation promulgated by
the Committee on Uniform Note Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and has directed the Trustee to use
CUSIP numbers in notices of redemption as a convenience to Holders of
Notes.  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 will furnish to any Holder of a
Note upon written request and without charge a copy of the Indenture.  Request may be made to:

 

DIRECTV Holdings LLC

2230 East Imperial Highway

El Segundo, California  90245

Attention:  Corporate Secretary

 

A-8

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form
below:  (I) or (we) assign and
transfer this Note to

 

 

(Insert assignee’s Soc. Sec. or tax I.D. no.)

 

 

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

 

and irrevocably appoint
                            
agent 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.

  	
   

  

 

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have all or any part
of this Note purchased by the Issuers pursuant to Section 3.08 (Excess
Proceeds Offer) or Section 4.15 (Change of Control and Rating Decline) of
the Indenture, check the appropriate box:

 

o            Section 3.08                          o            Section 4.15

 

If you want to have only part of the Note
purchased by the Issuers pursuant to Section 3.08 or Section 4.15 of
the Indenture, state the amount you elect to have purchased:

 

$

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Your
  Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the
  face of 

  
	
   

  	
  this Note)

  
	
   

  	
   

  
	
  Signature Guarantee.

  	
   

  

 

A-10

 

[ATTACHMENT FOR GLOBAL NOTES]

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

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

  Principal Amount of

  the Global Note

  	
   

  	
  Principal Amount

  of this Global Note

  following such

  Decrease (or Increase)

  	
   

  	
  Signature of

  authorized officer

  of Trustee or 

  Note Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-11

 

EXHIBIT B

 

FORM OF GUARANTEE

 

[Name of Guarantor] and its successors under
the Indenture, jointly and severally with any other Guarantors, hereby
irrevocably and unconditionally (i) guarantee the due and punctual payment
of the principal of, premium, if any, and interest on the Notes, whether at
maturity, by acceleration, redemption or otherwise, the due and punctual
payment of interest on the overdue principal of and interest, if any, on the
Notes, to the extent lawful, and the due and punctual performance of all other
obligations of DIRECTV Holdings LLC and DIRECTV Financing Co., Inc.
(together the “Issuers”) to the Holders or the
Trustee all in accordance with the terms set forth in Article 10 of the
Indenture and (ii) in case of any extension of time of payment or renewal
of any Notes or any of such other obligations, guarantee that the same will 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.  Capitalized terms used herein have the
meanings assigned to them in the Indenture unless otherwise indicated.

 

          No director, owner,
officer, employee, incorporator or stockholder of any Guarantor or any of its
Affiliates, as such, shall have any liability for any obligations of such Guarantor
or any of its Affiliates under this guarantee by reason of his or its status as
such.  This Guarantee shall be binding
upon each Guarantor and its successors and assigns and shall inure to the
benefit of the successors and assigns of the Trustee and the Holders and, in
the event of any transfer or assignment of rights by any Holder or the Trustee,
the rights and privileges herein conferred upon that party shall automatically
extend to and be vested in such transferee or assignee, all subject to the
terms and conditions hereof.

 

This Guarantee shall not be valid or
obligatory for any purpose until the certificate of authentication on the Note
upon which this Guarantee is noted shall have been executed by the Trustee under
the Indenture by the manual signature of one of its authorized officers.

 

THE TERMS OF ARTICLE 10 OF THE INDENTURE ARE
INCORPORATED HEREIN BY REFERENCE.

 

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

 

	
   

  	
  [NAME OF
  GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-1

 

EXHIBIT C

 

FORM OF CERTIFICATE OF TRANSFER

 

DIRECTV Holdings LLC

DIRECTV Financing Co., Inc.

2230 East Imperial Highway

El Segundo, California  92405

 

The Bank of New York Trust Company, N.A.

700 South Flower Street, Suite 500 

Los Angeles, CA 90017

Attn:  Corporate Unit

 

Re:  7.625% Senior Notes due
2016

 

Reference is hereby made to the Indenture,
dated as of May 14, 2008 (the “Indenture”),
among DIRECTV Holdings LLC and DIRECTV Financing Co., Inc., as co-issuers
(the “Issuers”), the Guarantors named therein
and The Bank of New York Trust Company, N.A., as trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

                                  (the “Transferor”)
owns and proposes to transfer the Note[s] or interest in such Note[s] specified
in Annex A hereto, in the principal amount of
$         in such Note[s] or interests
(the “Transfer”), to
                    
(the “Transferee”), as further specified in
Annex A hereto.  In connection with the
Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.                                      o            Check if
Transferee will take delivery of a beneficial interest in the 144A Global Note
or a Definitive Note Pursuant to Rule 144A.  The Transfer is being effected pursuant to
and in accordance with Rule 144A under the United States Securities Act of
1933, as amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believed and believes is purchasing the beneficial
interest or Definitive Note for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and
such Person and each such account is a “qualified institutional buyer” within
the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A
and such Transfer is in compliance with any applicable blue sky securities laws
of any state of the United States.  Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Note and/or the Definitive Note and in the
Indenture and the Securities Act.

 

C-1

 

2.                                      o            Check if
Transferee will take delivery of a beneficial interest in the Regulation S
Global Note or a Definitive Note pursuant to Regulation S.  The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the
Transfer is not being made to a Person in the United States and (x) at the
time the buy order was originated, the Transferee was outside the United States
or such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the 
facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed  selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(b) of  Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is
being made prior to the expiration of the Restricted Period, the transfer is
not being made to a U.S. Person or for the account or benefit of a U.S. Person
(other than an Initial Purchaser).  Upon
consummation of the proposed transfer in accordance with the terms of the Indenture,
the transferred beneficial interest or Definitive Note will be subject to the restrictions
on Transfer enumerated in the Private Placement Legend printed on the
Regulation S Global Note and/or the Definitive Note and in the Indenture and
the Securities Act.

 

3.                                      o            Check and
complete if Transferee will take delivery of a beneficial interest in a
Definitive Note pursuant to any provision of the Securities Act other than Rule 144A
or Regulation S.  The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and
any applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):

 

(a)                                 o            such Transfer is being
effected pursuant to and in accordance with Rule 144 under the Securities
Act;

 

or

 

(b)                                 o            or such Transfer is
being effected to the Issuers or a subsidiary thereof;

 

or

 

(c)                                  o            such Transfer is being
effected pursuant to an effective registration statement under the Securities
Act and in compliance with the prospectus delivery requirements of the Securities
Act.

 

C-2

 

4.                                      o            Check if
Transferee will take delivery of a beneficial interest in an Unrestricted
Global Note or of an Unrestricted Definitive Note.

 

(a)                                 o            Check if
Transfer is pursuant to Rule 144.  (i)  The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and
in compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

 

(b)                                 o            Check if
Transfer is Pursuant to Regulation S.  (i)  The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
no longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

 

(c)                                  o            Check if
Transfer is Pursuant to Other Exemption.  (i)  The Transfer is being effected
pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any State of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will not be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

 

C-3

 

This certificate and the statements contained
herein are made for your benefit and the benefit of the Issuers.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name
  of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
						

 

C-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.      The Transferor owns and
proposes to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)        o      a beneficial interest in the:

 

(i)    o    144A Global Note (CUSIP
[               ]),
or

 

(ii)   o    Regulation S Global 
(CUSIP
[               ])),
or

 

(b)        o      a Restricted Definitive Note.

 

2.      After the Transfer the
Transferee will hold:

 

[CHECK ONE]

 

(a)        o      a beneficial interest in the:

 

(i)    o    144A Global Note 
(CUSIP
[               ]),
or

 

(ii)   o    Regulation S Global Note (CUSIP [               ]),
or

 

(iii)  o    Unrestricted Global Note  CUSIP
[               ],
or

 

(b)        o      a Restricted Definitive Note; or

 

(c)        o      an Unrestricted Definitive Note,

 

in accordance with the terms of the
Indenture.

 

C-5

 

EXHIBIT D

 

FORM OF CERTIFICATE OF EXCHANGE

 

DIRECTV Holdings LLC

DIRECTV Financing Co., Inc.

2230 East Imperial Highway

El Segundo, California   92405

 

The Bank of New York Trust Company, N.A.

700 South Flower Street, Suite 500

Los Angeles, CA 90017

Attn:  Corporate Unit

Re:  7.625% Senior Notes due
2016

 

 (CUSIP
[             ])

 

Reference is hereby made to the Indenture,
dated as of May 14, 2008 (the “Indenture”),
among DIRECTV Holdings LLC and DIRECTV Financing Co., Inc., as co-issuers
(the “Issuers”), the Guarantors named therein
and The Bank of New York, as trustee. 
Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

 

                              
(the “Owner”) owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of
$                
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

 

1.          Exchange of Restricted Definitive Notes or Beneficial
Interests in a Restricted Global Note for Unrestricted Definitive Notes or
Beneficial Interests in an Unrestricted Global Note.

 

(a)        o      Check if Exchange is from
beneficial interest in a Restricted Global Note to beneficial interest in an
Unrestricted Global Note.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Notes and pursuant to and in accordance with the
United States Securities Act of 1933, as amended (the “Securities
Act”), (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial
interest in an Unrestricted Global Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

 

D-1

 

(b)        o      Check if Exchange is from
beneficial interest in a Restricted Global Note to Unrestricted Definitive
Note.  In connection with the
Exchange of the Owner’s beneficial interest in a Restricted Global Note for an
Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the
Definitive Note is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

 

(c)        o      Check if Exchange is from
Restricted Definitive Note to beneficial interest in an Unrestricted Global
Note.  In connection with the
Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in
an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act, (iii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial
interest is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

(d)        o      Check if Exchange is from
Restricted Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner
hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

2.          Exchange of Restricted Definitive Notes or
Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes
or Beneficial Interests in Restricted Global Notes.

 

(a)        o      Check if Exchange is from
beneficial interest in a Restricted Global Note to Restricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a Restricted Definitive
Note with an equal principal amount, the Owner hereby certifies that the
Restricted Definitive Note is being acquired for the Owner’s own account
without transfer.  Upon consummation of
the proposed Exchange in accordance with the terms of the Indenture, the
Restricted Definitive Note issued will continue to be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Definitive Note and in the Indenture and the Securities Act.

 

(b)        o      Check if Exchange is from
Restricted Definitive Note to beneficial interest in a Restricted Global Note.  In connection with the Exchange of the Owner’s
Restricted Definitive Note for a beneficial interest in the [CHECK ONE] _ 144A
Global Note, _ Regulation S Global Note with an equal principal amount, the
Owner hereby certifies (i) the beneficial interest 

 

D-2

 

is being
acquired for the Owner’s own account without transfer and (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance
with the Securities Act, and in compliance with any applicable blue sky securities
laws of any state of the United States. 
Upon consummation of the proposed Exchange in accordance with the terms
of the Indenture, the beneficial interest issued will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

 

This certificate and the statements contained
herein are made for your benefit and the benefit of the Issuers.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name
  of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
					

 

D-3

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