Document:

EX-10.1 REGISTRATION RIGHTS AGREEMENT

 

EXHIBIT 10.1

REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of
March 26, 2008, by and among MPT Operating Partnership, L.P., a Delaware limited partnership (the
“Issuer”), Medical Properties Trust, Inc., a Maryland corporation (the
“Guarantor”), and UBS Securities LLC, as representative (the “Representative”) of
the initial purchasers (collectively, the “Initial Purchasers”) pursuant to that certain
Purchase Agreement, dated March 20, 2008 (the “Purchase Agreement”), among the Issuer, the
Guarantor and the Initial Purchasers.

          In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Guarantor
has agreed to provide the registration rights set forth in this Agreement. The execution and
delivery of this Agreement is a condition to the closing under the Purchase Agreement. The terms
“herein,” “hereof,” “hereto,” “hereinafter” and similar terms, as used in this Agreement, shall in
each case refer to this Agreement as a whole and not to any particular section, paragraph, sentence
or other subdivision of this Agreement.

          The Guarantor agrees with the Initial Purchasers (i) for their benefit as Initial Purchasers
and (ii) for the benefit of the beneficial owners (including the Initial Purchasers) from time to
time of the Notes and the Covered Securities (as defined herein) (each of the foregoing a
“Holder” and, together, the “Holders”), as follows:

     1. Definitions. Capitalized terms used herein without definition shall have the
respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following
terms shall have the following meanings:

     (a) “additional interest” has the meaning set forth in Section 2(e) hereof.

     (b) “Additional Interest Accrual Period” has the meaning set forth in Section
2(e) hereof.

     (c) “Additional Interest Amount” has the meaning set forth in Section 2(e)
hereof.

     (d) “Additional Interest Payment Date” means each April 1 and October 1 of each
year.

     (e) “Affiliate” means, with respect to any specified person, an “affiliate,” as
defined in Rule 144, of such person.

     (f) “Amendment Effectiveness Deadline Date” has the meaning set forth in
Section 2(d) hereof.

     (g) “Automatic Shelf Registration Statement” has the meaning ascribed to it in
Rule 405.

1

 

     (h) “Business Day” means each day on which the New York Stock Exchange is open
for trading.

     (i) “Claim” has the meaning set forth in Section 9(o) hereof.

     (j) “Common Stock” means the shares of common stock, $0.001 par value per
share, of the Guarantor and any other shares of capital stock as may constitute “Common
Stock” for purposes of the Indenture, including the Underlying Common Stock.

     (k) “Covered Security” has the meaning set forth in Section 1(rr) hereof.

     (l) “Designated Event Repurchase Date” has the meaning ascribed to it in the
Indenture.

     (m) “Effectiveness Deadline Date” has the meaning set forth in Section 2(a)
hereof.

     (n) “Effectiveness Period” means a period that begins as of the date the
Initial Shelf Registration Statement becomes effective under the Securities Act and
terminates (subject to extension pursuant to Section 3(k) hereof) when there are no
Registrable Securities outstanding.

     (o) “Event” has the meaning set forth in Section 2(e) hereof.

     (p) “Event Date” has the meaning set forth in Section 2(e) hereof.

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

     (r) “Exchange Price” has the meaning ascribed to it in the Indenture.

     (s) “Exchange Rate” has the meaning ascribed to it in the Indenture.

     (t) “Filing Deadline Date” has the meaning set forth in Section 2(a) hereof.

     (u) “FINRA Rules” has the meaning set forth in Section 3(t) hereof.

     (v) “Form S-1” means Form S-1 under the Securities Act.

     (w) “Form S-3” means Form S-3 under the Securities Act.

     (x) “Holder” has the meaning set forth in the preamble hereto.

     (y) “Holder Information” has the meaning set forth in Section 6(b) hereof.

     (z) “Indemnified Party” has the meaning set forth in Section 6(c) hereof.

     (aa) “Indemnifying Party” has the meaning set forth in Section 6(c) hereof.

2

 

     (bb) “Indenture” means the Indenture, dated as of March 26, 2008, among the
Guarantor, the Issuer and the Trustee, pursuant to which the Notes are being issued.

     (cc) “Initial Purchasers” has the meaning set forth in the preamble hereto.

     (dd) “Initial Shelf Registration Statement” has the meaning set forth in
Section 2(a) hereof.

     (ee) “Issue Date” means March 26, 2008.

     (ff) “Managing Underwriters” has the meaning set forth in Section 8(a) hereof.

     (gg) “Material Event” has the meaning set forth in Section 3(k) hereof.

     (hh) “Notes” means the 9.25% Exchangeable Senior Notes due 2013 of the Issuer
to be purchased pursuant to the Purchase Agreement.

     (ii) “Notice and Questionnaire” means a written questionnaire containing
substantially the information called for by the Selling Securityholder Notice and
Questionnaire attached as Annex A to the offering memorandum, dated March 20, 2008, relating
to the offering of the Notes.

     (jj) “Notice Holder” means, on a given date, any Holder that has delivered a
Notice and Questionnaire to the Guarantor on or prior to such date, provided not all of such
Holder’s Registrable Securities that have been registered for resale pursuant to a Notice
and Questionnaire have been sold in accordance with a Shelf Registration Statement.

     (kk) “Proceeding” has the meaning set forth in Section 6(c) hereof.

     (ll) “Prospectus” means each prospectus relating to any Shelf Registration
Statement, including all supplements and amendments to such prospectus, in each case in the
form furnished pursuant to this Agreement by the Guarantor to Holders or filed by the
Guarantor with the SEC pursuant to Rule 424 or as part of such Shelf Registration Statement,
as the case may be, and in each case including all materials, if any, incorporated by
reference or deemed to be incorporated by reference in such prospectus.

     (mm) “Purchase Agreement” has the meaning set forth in the preamble hereof.

     (nn) “Record Date” means, (i) March 15, with respect to an Additional Interest
Payment Date that occurs on April 1 and (ii) September 15, with respect to an Additional
Interest Payment Date that occurs on October 1.

     (oo) “Record Holder” means, with respect to an Additional Interest Payment Date
relating to a Registrable Security for which any Additional Interest Amount has accrued, a
Notice Holder that was the holder of record of such Registrable Security at the close of
business on the Record Date relating to such Additional Interest Payment Date.

3

 

     (pp) “Redemption” means the redemption of the Notes pursuant to Section 3.01 of
the Indenture.

     (qq) “Redemption Date” has the meaning ascribed to it in the Indenture.

     (rr) “Registrable Securities” means the Underlying Common Stock initially
issuable in exchange for the Notes initially sold to the Initial Purchasers, and any
securities into or for which such Underlying Common Stock has been converted or exchanged,
and any security issued with respect thereto upon any stock dividend, split or similar event
(each of the foregoing, a “Covered Security”) until, in the case of any such
security, the earliest of:

          (i) the date on which such security has been effectively registered under the
Securities Act and disposed of in accordance with the Registration Statement relating
thereto;

          (ii) the date on which such security may be resold without restriction pursuant to Rule
144 or any successor provision thereto;

          (iii) the date on which such security has been publicly sold pursuant to Rule 144 or
any successor provision thereto; or

          (iv)the date on which such security ceases to be outstanding.

     (ss) “Registration Expenses” has the meaning set forth in Section 5 hereof.

     (tt) “Registration Statement” means each registration statement, under the
Securities Act, of the Guarantor that covers any of the Registrable Securities pursuant to
this Agreement, including amendments and supplements to such registration statement and
including all post-effective amendments to, all exhibits of, and all materials incorporated
by reference or deemed to be incorporated by reference in, such registration statement,
amendment or supplement.

     (uu) “Repurchase Upon Designated Event” means a repurchase of the Notes
pursuant to Section 3.05 of the Indenture.

     (vv) “Rule 144” means Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     (ww) “Rule 144A” means Rule 144A under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     (xx) “Rule 405” means Rule 405 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

4

 

     (yy) “Rule 415” means Rule 415 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     (zz) “Rule 424” means Rule 424 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     (aaa) “Rule 430B” means Rule 430B under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     (bbb) “Rule 456” means Rule 456 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     (ccc) “Rule 457” means Rule 457 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     (ddd) “SEC” means the Securities and Exchange Commission.

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

     (fff) “Shelf Registration Statement” means the Initial Shelf Registration
Statement and any Subsequent Shelf Registration Statement.

     (ggg) “Subsequent Shelf Registration Statement” has the meaning set forth in
Section 2(b) hereof.

     (hhh) “Subsequent Shelf Registration Statement Effectiveness Deadline Date” has
the meaning set forth in Section 2(d) hereof.

     (iii) “Suspension Notice” has the meaning set forth in Section 3(k) hereof.

     (jjj) “Suspension Period” has the meaning set forth in Section 3(k) hereof.

     (kkk) “TIA” means the Trust Indenture Act of 1939, as amended.

     (lll) “Trustee” means Wilmington Trust Company, the trustee under the
Indenture.

     (mmm) “Underlying Common Stock” means the Common Stock issuable upon exchange
of the Notes or upon Redemption or Repurchase Upon Designated Event.

     (nnn) “Well-Known Seasoned Issuer” has the meaning ascribed to it in Rule 405.

     2. Shelf Registration.

5

 

     (a) The Guarantor shall prepare and file, or cause to be prepared and filed, with the
SEC, as soon as practicable but in any event by the date (the “Filing Deadline
Date”) that is one hundred twenty (120) days after the Issue Date, a Registration
Statement (the “Initial Shelf Registration Statement”) for an offering to be made on
a delayed or continuous basis pursuant to Rule 415 registering the resale from time to time
by Holders thereof of all of the Registrable Securities (or, if registration of Registrable
Securities not held by Notice Holders is not permitted by the rules and regulations of the
SEC, then registering the resale from time to time by Notice Holders of their Registrable
Securities). The Initial Shelf Registration Statement shall provide for the registration of
such Registrable Securities for resale by such Holders in accordance with any reasonable
method of distribution elected by the Holders. In no event shall the Initial Shelf
Registration Statement be filed with the SEC prior to completion of the offering of the
Notes contemplated by the Purchase Agreement. If the Initial Shelf Registration Statement is
not an Automatic Shelf Registration Statement, the Guarantor shall use its commercially
reasonable best efforts to cause the Initial Shelf Registration Statement to become
effective under the Securities Act as promptly as practicable but in any event by the date
(the “Effectiveness Deadline Date”) that is two hundred ten (210) days after the
Issue Date. The Guarantor shall use its commercially reasonable best efforts to keep the
Initial Shelf Registration Statement (and any Subsequent Shelf Registration Statement)
continuously effective under the Securities Act from the date the Shelf Registration
Statement is declared effective until the earlier of (i) the twentieth (20th) trading day
immediately following the maturity date of the Notes and (ii) the date upon which there are
no Notes or Registrable Securities outstanding. At the time the Initial Shelf Registration
Statement becomes effective under the Securities Act, each Holder that became a Notice
Holder on or before the 15th day before the date of such effectiveness shall be named as a
selling securityholder in the Initial Shelf Registration Statement and the related
Prospectus in such a manner as to permit such Holder to deliver such Prospectus to
purchasers of Registrable Securities in accordance with applicable law.

     (b) If, for any reason, at any time during the Effectiveness Period any Shelf
Registration Statement ceases to be effective under the Securities Act, or ceases to be
usable for the purposes contemplated hereunder, the Guarantor shall use its commercially
reasonable best efforts to promptly cause such Shelf Registration Statement to become
effective or usable under the Securities Act (including obtaining the prompt withdrawal of
any order suspending the effectiveness of such Shelf Registration Statement), and in any
event shall, within thirty (30) days of such cessation of effectiveness or usability, (i)
amend such Shelf Registration Statement in a manner reasonably expected to obtain the
withdrawal of any order suspending the effectiveness of such Shelf Registration Statement or
(ii) file an additional Registration Statement (a “Subsequent Shelf Registration
Statement”) for an offering to be made on a delayed or continuous basis pursuant to Rule
415 registering the resale from time to time by Holders thereof of all securities that are
Registrable Securities as of the time of such filing (or, if registration of Registrable
Securities not held by Notice Holders is not permitted by the rules and regulations of the
SEC, then registering the resale from time to time by Notice Holders of their securities
that are Registrable Securities as of the time of such filing). If a Subsequent Shelf
Registration Statement is filed and such Subsequent Shelf Registration Statement is not an
Automatic Shelf Registration Statement, the Guarantor shall use its

6

 

commercially reasonable best efforts to cause such Subsequent Shelf Registration
Statement to become effective under the Securities Act as promptly as practicable after such
filing, but in no event later than the Subsequent Shelf Registration Statement Effectiveness
Deadline Date. The Guarantor shall use its commercially reasonable best efforts to keep such
Subsequent Shelf Registration Statement (or another Subsequent Shelf Registration Statement)
continuously effective under the Securities Act from the date the Subsequent Shelf
Registration Statement is declared effective until the earlier of (i) the twentieth (20th)
trading day immediately following the maturity date of the Notes and (ii) the date upon
which there are no Notes or Registrable Securities outstanding. Each such Subsequent Shelf
Registration Statement, if any, shall provide for the registration of such Registrable
Securities for resale by such Holders in accordance with any reasonable method of
distribution elected by the Holders.

     (c) The Guarantor shall supplement and amend any Shelf Registration Statement if
required by the rules, regulations or instructions applicable to the registration form used
by the Guarantor for such Shelf Registration Statement, if required by the Securities Act
or, if necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading, as reasonably requested by the Representative or the Trustee
on behalf of the Holders of the Registrable Securities covered by such Shelf Registration
Statement.

     (d)

          (i) Each Holder of Registrable Securities agrees that, if such Holder wishes to sell
Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus, it
will do so only in accordance with this Section 2(d) and Section 3(k). Each Holder of
Registrable Securities wishing to sell Registrable Securities pursuant to a Shelf
Registration Statement and related Prospectus agrees to deliver a completed and executed
Notice and Questionnaire to the Guarantor, together with any other information the Guarantor
may reasonably request, prior to any attempted or actual distribution of Registrable
Securities under a Shelf Registration Statement. If a Holder becomes a Notice Holder after
the 15th day before the date the Initial Shelf Registration Statement becomes effective
under the Securities Act, the Guarantor shall use its commercially reasonable best efforts
to, after the date such Holder became a Notice Holder, and in any event, subject to clause
(B) below, within the later of (x) twenty (20) Business Days after such date or (y) twenty
(20) Business Days after the expiration of any Suspension Period that either (I) is in
effect when such Holder became a Notice Holder or (II) is put into effect within twenty (20)
Business Days after the date such Holder became a Notice Holder;

     (A) file with the SEC a supplement to the related Prospectus (or, if required
by applicable law, a post-effective amendment to the Shelf Registration Statement or
a Subsequent Shelf Registration Statement), and all other document(s), in each case
as is required so that such Notice Holder is named as a selling securityholder in a
Shelf Registration Statement and the related Prospectus in such a manner as to
permit such Notice Holder to deliver a Prospectus to purchasers of the Registrable
Securities in accordance with the Securities Act;

7

 

provided, however, that, if a post-effective amendment or a
Subsequent Shelf Registration Statement is required by the rules and regulations of
the SEC in order to permit resales by such Notice Holder, the Guarantor shall not be
required to file more than one (1) post-effective amendment or Subsequent Shelf
Registration Statement for such purpose in any ninety (90) day period;

     (B) if, pursuant to Section 2(d)(i)(A), the Guarantor shall have filed a
post-effective amendment to the Shelf Registration Statement or filed a Subsequent
Shelf Registration Statement, the Guarantor shall use its commercially reasonable
best efforts to cause such post-effective amendment or Subsequent Shelf Registration
Statement, as the case may be, to become effective under the Securities Act as
promptly as practicable, but in any event by the date (the “Amendment
Effectiveness Deadline Date,” in the case of a post-effective amendment, and the
“Subsequent Shelf Registration Statement Effectiveness Deadline Date,” in
the case of a Subsequent Shelf Registration Statement) that is ninety (90) days
after the date such post-effective amendment or Subsequent Shelf Registration
Statement, as the case may be, is required by this Section 2(d) to be filed with the
SEC;

     (C) the Guarantor shall provide such Notice Holder a reasonable number of
copies of any documents filed pursuant to clause (A) above, if requested by such
Notice Holder;

     (D) the Guarantor shall notify such Notice Holder as promptly as practicable
after the effectiveness under the Securities Act of any post-effective amendment or
Subsequent Shelf Registration Statement filed pursuant to clause (A) above;

     (E) if such Holder became a Notice Holder during a Suspension Period, or a
Suspension Period is put into effect within twenty (20) Business Days after the date
such Holder became a Notice Holder, the Guarantor shall so inform such Notice Holder
and shall take the actions set forth in clauses (A), (B), (C) and (D) above within
fifteen (15) Business Days after expiration of such Suspension Period in accordance
with Section 3(k);

     (F) if (A) the Notes are called for redemption and the then prevailing market
price of the Common Stock is above the Exchange Price or (B) the Notes are exchanged
as provided for in Sections 13.01(i), 13.01(ii) or 13.01(iv) of the Indenture, then
the Guarantor shall take the actions set forth in clauses (A), (B), (C) and (D)
above within ten (10) Business Days of the redemption date or the end of the
exchange period, as applicable, or if such Notice and Questionnaire is delivered
during a Suspension Period, upon expiration of the Suspension Period in accordance
with Section 3(k); and

     (G) if, under applicable law, the Guarantor has more than one option as to the
type or manner of making any such filing, the Guarantor shall make the required
filing or filings in the manner or of a type that is reasonably expected to

8

 

result in the earliest availability of a Prospectus for effecting resales of
Registrable Securities under the Securities Act.

          (ii) Notwithstanding anything contained herein to the contrary, the Guarantor shall be
under no obligation to name any Holder that is not a Notice Holder as a selling
securityholder in any Shelf Registration Statement or related Prospectus; provided,
however, that any Holder that becomes a Notice Holder (regardless of when such
Holder became a Notice Holder) shall be named as a selling securityholder in a Shelf
Registration Statement or related Prospectus in accordance with the requirements of this
Section 2(d) or Section 2(a), as applicable.

     (e) The parties hereto agree that the Holders of Registrable Securities will suffer
damages, and that it would not be feasible to ascertain the extent of such damages with
precision, if:

          (i) the Initial Shelf Registration Statement (which shall be an Automatic Shelf
Registration Statement if the Guarantor is a Well-Known Seasoned Issuer) has not been filed
with the SEC on or prior to the Filing Deadline Date;

          (ii) the Guarantor is not a Well Known Seasoned Issuer, the Initial Shelf Registration
Statement has not been declared or become effective under the Securities Act on or prior to
the Effectiveness Deadline Date;

          (iii) the Initial Shelf Registration Statement or any Subsequent Registration Statement
is filed with the SEC and is declared or becomes effective under the Securities Act but
shall thereafter cease to be effective (without being succeeded immediately by a new
Registration Statement that is filed and immediately becomes effective under the Securities
Act) or usable under the Securities Act for the offer and sale of Registrable Securities in
the manner contemplated by this Agreement and (I) other than in connection with (A) a
Suspension Period or (B) as a result of a requirement to file a post-effective amendment or
supplement to the Prospectus to make changes to the information regarding selling
securityholders provided for therein, the Guarantor does not cure the lapse of effectiveness
or usability within ten (10) Business Days or (II) the Suspension Period, when aggregated
with other Suspension Periods, shall exceed the number of days permitted in Section 3(k); or

          (iv) any Registration Statement or amendment thereto, at the time it becomes effective
under the Securities Act, or any Prospectus relating thereto, at the time it is filed with
the SEC or, if later, at the time the Registration Statement to which such Prospectus
relates becomes effective under the Securities Act, shall fail to name each Holder as a
selling securityholder in such a manner as to permit such Holder to sell its Registrable
Securities pursuant to such Registration Statement and Prospectus in accordance with the
Securities Act, which Holder was required, pursuant to the terms of this Agreement, to be so
named (it being understood that, without limitation, naming such Holder in a manner that
permits such Holder to sell only a portion of such Holder’s Registrable Securities
referenced in such Holder’s Notice and Questionnaire shall be deemed to be an
“Event” (as defined below) for purposes of this clause (iv)).

9

 

Each of the events of a type described in any of the foregoing clauses (i) through (iv) are
individually referred to herein as an “Event,” and

     (W) the Filing Deadline Date, in the case of clause (i) above,

     (X) the Effectiveness Deadline Date, in the case of clause (ii) above,

     (Y) the date on which the duration of the ineffectiveness or unusability of the
Shelf Registration Statement exceeds the number of days permitted by clause (iii)
above, in the case of clause (iii) above, and

     (Z) the date the applicable Registration Statement or amendment thereto shall
become effective under the Securities Act, or the date the applicable Prospectus is
filed with the SEC or, if later, the time the Registration Statement to which such
Prospectus relates becomes effective under the Securities Act, as the case may be,
in the case of clause (iv) above,

are each herein referred to as an “Event Date.” Events shall be deemed to continue until
the following dates with respect to the respective types of Events:

     (A) the date the Initial Shelf Registration Statement is filed with the SEC, in
the case of an Event of the type described in clause (i) above;

     (B) the date the Initial Shelf Registration Statement is declared or becomes
effective under the Securities Act, in the case of an Event of the type described in
clause (ii) above;

     (C) the date the Initial Shelf Registration Statement or the Subsequent Shelf
Registration Statement, as the case may be, becomes effective and usable again, or
the date another Subsequent Shelf Registration Statement is filed with the SEC
pursuant to Section 2(b) and becomes effective, in the case of an Event of the type
described in clause (iii) above; or

     (D) the date a supplement to the Prospectus is filed with the SEC, or the date
a post-effective amendment to the Registration Statement becomes effective under the
Securities Act, or the date a Subsequent Shelf Registration Statement becomes
effective under the Securities Act, which supplement, post-effective amendment or
Subsequent Shelf Registration Statement, as the case may be, names as selling
securityholders, in such a manner as to permit them to sell their Registrable
Securities pursuant to the Registration Statement and Prospectus supplement in
accordance with the Securities Act, all Holders required as herein provided to be so
named, in the case of an Event of the type described in clause (iv) above.

Accordingly, commencing on (and including) any Event Date and ending on (but excluding) the next
date on which there are no Events that have occurred and are continuing (an “Additional
Interest Accrual Period”), the Guarantor agrees to pay, as additional interest (“additional
interest”) and not as a penalty, an amount (the “Additional Interest Amount”) at the
rate described below,

10

 

payable periodically on each Additional Interest Payment Date to Record Holders, to the extent of,
for each such Additional Interest Payment Date, the unpaid Additional Interest Amount that has
accrued to (but excluding) such Additional Interest Payment Date (or, if the Additional Interest
Accrual Period shall have ended prior to such Additional Interest Payment Date, to, but excluding,
the day immediately after, the last day of such Additional Interest Accrual Period);
provided, however, that any unpaid Additional Interest Amount that has accrued with
respect to any Note, or portion thereof, called for Redemption on a Redemption Date, or purchased
by the Company pursuant to a Repurchase Upon Designated Event on a Designated Event Repurchase
Date, as the case may be, that is after the close of business on the Record Date relating to such
Additional Interest Payment Date and before such Additional Interest Payment Date, shall, in each
case, be instead paid, on such Redemption Date or Designated Event Repurchase Date, as the case may
be, to the Holder who submitted such Note or portion thereof for Redemption or Repurchase Upon
Designated Event, as the case may be.

The Additional Interest Amount shall accrue at a rate per annum equal to one quarter of one percent
(0.25%) for the ninety (90) day period beginning on, and including, the Event Date and thereafter
at a rate per annum equal to one half of one percent (0.50%) of the aggregate principal amount of
the Notes of which such Record Holders were holders of record at the close of business on the
applicable Record Date; provided, however, that:

     (I) unless there shall be a default in the payment of any Additional Interest Amount,
no Additional Interest Amounts shall accrue as to any Note from and after the earlier of (x)
the date such security is no longer a Registrable Security, (y) the date, and to the extent,
such Note is exchanged for cash and, if applicable, shares of Common Stock in accordance
with the Indenture and (z) the expiration of the Effectiveness Period;

     (II) only those Holders (or their subsequent transferees) failing to be named as
selling securityholders in the manner prescribed in Section 2(e)(iv) above shall be entitled
to receive any Additional Interest Amounts that have accrued solely with respect to an Event
of the type described in Section 2(e)(iv) above (it being understood that this clause (II)
shall not impair any right of any Holder to receive Additional Interest Amounts that have
accrued with respect to an Event other than an Event of the type described in Section
2(e)(iv) above); and

     (III) if a Note ceases to be outstanding during an Additional Interest Accrual Period
for which an Additional Interest Amount would be payable with respect to such Note, then the
Additional Interest Amount payable hereunder with respect to such Note shall be prorated on
the basis of the number of full days such Note is outstanding during such Additional
Interest Accrual Period.

No Additional Interest Amounts shall be payable in respect of any Common Stock delivered as payment
of any portion of a make-whole payment. Except as provided in the final paragraph of this Section
2(e), (i) the rate of accrual of the Additional Interest Amount with respect to any period shall
not exceed the rate provided for in this Section 2(e) notwithstanding the occurrence of multiple
concurrent Events and (ii) following the cure of all Events requiring the payment by the Guarantor
of Additional Interest Amounts to the Holders pursuant to this Section, the accrual of Additional
Interest Amounts shall cease (without in any way limiting the effect of any

11

 

subsequent Event requiring the payment of Additional Interest Amounts by the Guarantor). All
installments of additional interest on any Global Note (as defined in the Indenture) shall be paid
by wire transfer of immediately available funds to the account of the Depositary (as defined in the
Indenture) or its nominee. Payment of additional interest on the Notes not represented by a Global
Note will be made at the Corporate Trust Office maintained for that purpose in the Borough of
Manhattan, The City of New York, New York, in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Issuer, payments of additional interest on the Notes may be made
(i) by check mailed to the address of the Person (as defined in the Indenture) entitled thereto as
such address shall appear in the Note Register (as defined in the Indenture) or (ii) by wire
transfer to an account maintained by the Person entitled thereto located within the United States.

All of the Guarantor’s obligations set forth in this Section 2(e) that are outstanding with respect
to any Registrable Security at the time such Registrable Security ceases to be a Registrable
Security shall survive until such time as all such obligations with respect to such security have
been satisfied in full (notwithstanding termination of this Agreement pursuant to Section 9(n)).

The parties hereto agree that the additional interest provided for in this Section 2(e) constitutes
a reasonable estimate of the damages that may be incurred by Holders by reason of an Event,
including, without limitation, the failure of a Shelf Registration Statement to be filed, become
effective under the Securities Act, amended or replaced to include the names of all Notice Holders
or available for effecting resales of Registrable Securities in accordance with the provisions
hereof.

If any Additional Interest Amounts are not paid when due, then, to the extent permitted by law,
such overdue Additional Interest Amounts, if any, shall bear interest, compounded semi-annually,
until paid at the rate of interest payable with respect to overdue amounts on the Notes pursuant to
the Indenture.

Notwithstanding any provision in this Agreement, in no event shall an Additional Interest Amount
accrue to holders of Common Stock issued upon exchange of Notes. In lieu thereof, if during an
Additional Interest Accrual Period a Holder shall exchange their Notes for Common Stock, the
Guarantor shall increase the Exchange Rate by 3% for each $1,000 principal amount of Notes
exchanged.

     (f) The Trustee shall be entitled, on behalf of Holders, to seek any available remedy
for the enforcement of this Agreement, including for the payment of any Additional Interest
Amount.

     3. Registration Procedures. In connection with the registration obligations of the
Guarantor under Section 2 hereof, the Guarantor shall:

     (a) Prepare and file with the SEC a Shelf Registration Statement or Shelf Registration
Statements in the manner provided in this Agreement and use its commercially reasonable best
efforts to cause each such Shelf Registration Statement to become effective under the
Securities Act and remain effective under the Securities Act as provided herein;
provided, that, before filing any Shelf Registration Statement or

12

 

Prospectus or any amendments or supplements thereto with the SEC, the Guarantor shall
furnish to the Representative and counsel for the Holders and for the Representative (or, if
applicable, a single separate counsel for the Holders) copies of all such documents proposed
to be filed and reflect in each such document when so filed with the SEC such comments as
the Representative or such counsel reasonably shall propose within three (3) Business Days
of the delivery of such copies to the Representative and such counsel. Each Registration
Statement that is or is required by this Agreement to be filed with the SEC shall be filed
on Form S-3 if the Guarantor is then eligible to use Form S-3 for the purposes contemplated
by this Agreement, or, if the Guarantor is not then so eligible to use Form S-3, shall be on
Form S-11 or another appropriate form that is then available to the Guarantor for the
purposes contemplated by this Agreement. Each such Registration Statement that is filed on
Form S-3 shall constitute an Automatic Shelf Registration Statement if the Guarantor is then
eligible to file an Automatic Shelf Registration Statement on Form S-3 for the purposes
contemplated by this Agreement. If, at the time any Registration Statement is filed with the
SEC, the Guarantor is eligible, pursuant to Rule 430B(b), to omit, from the prospectus that
is filed as part of such Registration Statement, the identities of selling securityholders
and amounts of securities to be registered on their behalf, then the Guarantor shall prepare
and file such Registration Statement in a manner as to permit such omission and to allow for
the subsequent filing of such information in a prospectus pursuant to Rule 424(b) in the
manner contemplated by Rule 430B(d).

     (b) Prepare and file with the SEC such amendments and post-effective amendments to each
Shelf Registration Statement as may be necessary to keep such Shelf Registration Statement
or Subsequent Shelf Registration Statement continuously effective until the expiration of
the Effectiveness Period; cause the related Prospectus to be supplemented by any required
Prospectus supplement and, as so supplemented, to be filed with the SEC pursuant to Rule
424; and comply with the provisions of the Securities Act applicable to it with respect to
the disposition of all securities covered by each Shelf Registration Statement during the
Effectiveness Period in accordance with the intended methods of disposition by the sellers
thereof set forth in such Shelf Registration Statement as so amended or such Prospectus as
so supplemented.

     (c) If the third anniversary of the initial effective date of any Registration
Statement (within the meaning of Rule 415(a)(5) under the Securities Act) shall occur at any
time during the Effectiveness Period, to the extent required pursuant to Rule 415(a)(5)
under the Securities Act in order to permit the Registrable Securitim to continue to be
offered, file with the SEC, prior to such third anniversary, a new Registration Statement
covering the Registrable Securities, in the manner contemplated by, and in compliance with,
Rule 415(a)(6), and use its commercially reasonable best efforts to cause such new
Registration Statement to become effective under the Act as soon as practicable, but in any
event within 180 days after such third anniversary. Each such new Registration Statement, if
any, shall be deemed, for purposes of this Agreement, to be a Subsequent Shelf Registration
Statement.

     (d) If, at any time during the Effectiveness Period, any Registration Statement shall
cease to comply with the requirements of the Securities Act with respect to

13

 

eligibility for the use of the form on which such Registration Statement was filed with
the SEC (or if such Registration Statement constituted an Automatic Shelf Registration
Statement at the time it was filed with the SEC and shall thereafter cease to constitute an
Automatic Shelf Registration Statement, or if the Guarantor shall have received, from the
SEC, a notice, pursuant to Rule 401(g)(2) under the Securities Act, of objection to the use
of the form on which such Registration Statement was filed with the SEC), (i) promptly give
notice to the Notice Holders and counsel for the Holders and for the Representative (or, if
applicable, a single separate counsel for the Holders) and to the Representative and (ii)
promptly file with the SEC a new Registration Statement under the Securities Act, or a
post-effective amendment to such Registration Statement, to effect compliance with the
Securities Act. The Guarantor shall use its commercially reasonable best efforts to cause
such new Registration Statement or post-effective amendment to become effective under the
Securities Act as soon as practicable, but subject to compliance with Section 3(a) hereof,
and shall promptly give notice of such effectiveness to the Notice Holders and counsel for
the Holders and for the Representative (or, if applicable, a single separate counsel for the
Holders) and to the Representative. Each such new Registration Statement, if any, shall be
deemed, for purposes of this Agreement, to be a Subsequent Shelf Registration Statement.

     (e) As promptly as practicable during the Effectiveness Period, give notice to the
Notice Holders, the Representative and counsel for the Holders and for the Representative
(or, if applicable, a single separate counsel for the Holders):

          (i) when any Prospectus, Prospectus supplement, Shelf Registration Statement or
post-effective amendment to a Shelf Registration Statement has been filed with the SEC and,
with respect to a Shelf Registration Statement or any post-effective amendment, when the
same has become effective under the Securities Act.

          (ii) of any request, following the effectiveness of a Shelf Registration Statement
under the Securities Act, by the SEC or any other governmental authority for amendments or
supplements to such Shelf Registration Statement or the related Prospectus or for additional
information,

          (iii) of the issuance by the SEC or any other governmental authority of any stop order
suspending the effectiveness of any Shelf Registration Statement or the initiation or
threatening of any proceedings for that purpose,

          (iv) of the receipt by the Guarantor or its legal counsel of any notification with
respect to the suspension of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose,

          (v) after the effective date of any Shelf Registration Statement filed with the SEC
pursuant to this Agreement, of the occurrence of (but not the nature of or details
concerning) a Material Event, and

14

 

          (vi) of the determination by the Guarantor that a post-effective amendment to a Shelf
Registration Statement or a Subsequent Shelf Registration Statement will be filed with the
SEC, which notice may, at the discretion of the Guarantor (or as required pursuant to
Section 3(k)), state that it constitutes a Suspension Notice, in which event the provisions
of Section 3(k) shall apply.

     (f) Use its commercially reasonable best efforts to (i) prevent the issuance of, and,
if issued, to obtain the withdrawal of, any order suspending the effectiveness of a Shelf
Registration Statement and (ii) obtain the lifting of any suspension of the qualification
(or exemption from qualification) of any of the Registrable Securities for sale in any
jurisdiction in which they have been qualified for sale, in either case at the earliest
practicable moment, and provide prompt notice to each Notice Holder and the Representative,
and counsel for the Holders and for the Representative (or, if applicable, a single separate
counsel for the Holders), of the withdrawal or lifting of any such order or suspension.

     (g) If requested in writing by the Representative or any Notice Holder, as promptly as
practicable incorporate in a Prospectus supplement or a post-effective amendment to a Shelf
Registration Statement such information as the Initial Purchasers, such Notice Holder or
counsel for the Holders and for the Initial Purchasers (or, if applicable, a single separate
counsel for the Holders) shall determine to be required to be included therein by applicable
law and make any required filings of such Prospectus supplement or such post-effective
amendment; provided, however, that the Guarantor shall not be required to
take any actions under this Section 3(g) that, in the written opinion of counsel for the
Guarantor, are not required to be included therein by applicable law.

     (h) As promptly as practicable, furnish to each Notice Holder (but only upon such
Notice Holder’s request), counsel for the Holders and for the Representative (or, if
applicable, a single separate counsel for the Holders) and the Representative, without
charge, at least one (1) conformed copy of each Shelf Registration Statement and each
amendment thereto, including financial statements but excluding schedules, all documents
incorporated or deemed to be incorporated therein by reference and all exhibits (unless
requested in writing to the Guarantor by such Notice Holder, such counsel or the
Representative).

     (i) During the Effectiveness Period, deliver to each Notice Holder, counsel for the
Holders and for the Representative (or, if applicable, a single separate counsel for the
Holders) and the Representative, in connection with any sale of Registrable Securities
pursuant to a Shelf Registration Statement, without charge, as many copies of the Prospectus
or Prospectuses relating to such Registrable Securities (including each preliminary
prospectus) and any amendment or supplement thereto as such Notice Holder or the
Representative may reasonably request; and the Guarantor hereby consents (except during such
periods that a Suspension Notice is outstanding and has not been revoked) to the use of such
Prospectus and each amendment or supplement thereto by each Notice Holder, in connection
with any offering and sale of the Registrable Securities covered by such Prospectus or any
amendment or supplement thereto in the manner set forth therein.

15

 

     (j) Prior to any public offering of the Registrable Securities pursuant to a Shelf
Registration Statement, use its commercially reasonable best efforts to register or qualify
or cooperate with the Notice Holders in connection with the registration or qualification
(or exemption from such registration or qualification) of such Registrable Securities for
offer and sale under the securities or Blue Sky laws of such jurisdictions within the United
States as any Notice Holder reasonably requests in writing (which request may be included in
the Notice and Questionnaire); use its commercially reasonable best efforts to keep each
such registration or qualification (or exemption therefrom) effective during the
Effectiveness Period in connection with such Notice Holder’s offer and sale of Registrable
Securities pursuant to such registration or qualification (or exemption therefrom) and do
any and all other acts or things reasonably necessary or advisable to enable the disposition
in such jurisdictions of such Registrable Securities in the manner set forth in the relevant
Shelf Registration Statement and the related Prospectus; provided, however,
that the Guarantor will not be required to (i) qualify generally to do business in any
jurisdiction where it is not then so qualified; (ii) take any action that would subject it
to general service of process in suits, other than those arising out of the offering or sale
of Registrable Securities or arising in connection with this Agreement, in any jurisdiction
where it is not now so subject; or (iii) take any action that would subject it to taxation
in any jurisdiction where it is not then so subject.

     (k) Upon the occurrence or existence of any pending corporate development, public
filings with the SEC or any other material event (a “Material Event”) that, in the
reasonable discretion of the Guarantor, makes it appropriate to suspend the availability of
any Shelf Registration Statement and the related Prospectus:

          (i) subject to the next sentence, as promptly as practicable, prepare and file, if
necessary pursuant to applicable law, a post-effective amendment to such Shelf Registration
Statement or a supplement to such Prospectus or any document incorporated therein by
reference or file any other required document that would be incorporated by reference into
such Shelf Registration Statement and Prospectus so that such Shelf Registration Statement
does not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading,
and so that such Prospectus does not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading, as thereafter delivered to
the purchasers of the Registrable Securities being sold thereunder, and, in the case of a
post-effective amendment to a Shelf Registration Statement, subject to the next sentence,
use its commercially reasonable best efforts to cause it to become effective under the
Securities Act as promptly as practicable, and

          (ii) give notice (without notice of the nature or details of such events) to the Notice
Holders and counsel for the Holders and for the Representative (or, if applicable, a single
separate counsel for the Holders) and to the Representative that the availability of the
Shelf Registration Statement is suspended (a “Suspension Notice”) (and, upon receipt
of any Suspension Notice, each Notice Holder agrees (x) not to sell any Registrable
Securities pursuant to such Shelf Registration Statement until such

16

 

Notice Holder’s receipt of copies of the supplemented or amended Prospectus provided
for in clause (i) above or until such Notice Holder is advised in writing by the Guarantor
that the Prospectus may be used and (y) to hold such Suspension Notice in confidence).

The Guarantor will use its commercially reasonable best efforts to ensure that the use of the
Prospectus may be resumed as soon as, in the reasonable discretion of the Guarantor, such
suspension is no longer appropriate. Except in the case of a suspension of the availability of the
Shelf Registration Statement and the related Prospectus solely as the result of the filing of a
post-effective amendment or supplement to the Prospectus to add additional selling securityholders
therein, the period during which the availability of the Shelf Registration Statement and any
Prospectus may be suspended (the “Suspension Period”) without the Guarantor incurring any
obligation to pay additional interest pursuant to Section 2(e) shall not exceed forty-five (45)
days in the aggregate in any ninety (90) day period or ninety (90) days in the aggregate in any
three hundred and sixty (360) day period, provided, that, if the event triggering the Suspension
Period relates to a proposed or pending material business transaction, the disclosure of which the
board of directors of the Guarantor determines in good faith would be reasonably likely to impede
the ability to consummate the transaction or would otherwise be seriously detrimental to the
Guarantor and its subsidiaries taken as a whole, the Guarantor may extend the Suspension Period
from forty-five (45) days to sixty (60) days in any ninety (90) day period or from ninety (90) days
to one hundred and twenty (120) days in any three hundred and sixty (360) day period. The
Effectiveness Period shall be extended by the number of days from and including the date of the
giving of the Suspension Notice to and including the date on which the Notice Holder received
copies of the supplemented or amended Prospectus provided in clause (i) above, or the date on which
it is advised in writing by the Guarantor that the Prospectus may be used and has received copies
of any additional or supplemental filings that are incorporated or deemed incorporated by reference
in such Prospectus.

     (l) Make reasonably available for inspection during normal business hours by
representatives for the Notice Holders and any underwriters participating in any disposition
pursuant to any Shelf Registration Statement and any broker-dealers, attorneys and
accountants retained by such Notice Holders or any such underwriters, all relevant financial
and other records and pertinent corporate documents and properties of the Guarantor and its
subsidiaries, and cause the appropriate officers, directors and employees of the Guarantor
and its subsidiaries to make available for inspection during normal business hours all
relevant information reasonably requested by such representatives for the Notice Holders, or
any such underwriters, broker-dealers, attorneys or accountants in connection with such
disposition, in each case as is customary for similar “due diligence” examinations;
provided, however, that such persons shall, at the Guarantor’s request,
first agree in writing with the Guarantor that such person will not engage in any
transaction involving securities of the Guarantor in violation of applicable law (including,
without limitation, federal securities laws prohibiting trading on the basis of material
non-public information) and that any information that is reasonably and in good faith
designated by the Guarantor in writing as confidential at the time of delivery of such
information shall be kept confidential by such persons and shall be used solely for the
purposes of exercising rights under this Agreement, unless (i) disclosure of such
information is required by court or administrative order or is necessary to respond to
inquiries of governmental or regulatory authorities, (ii) disclosure of such information is

17

 

required by law (including any disclosure requirements pursuant to federal securities
laws in connection with the filing of any Shelf Registration Statement or the use of any
Prospectus referred to in this Agreement) or necessary to defend or prosecute a claim
brought against or by any such persons (e.g., to establish a “due diligence” defense), (iii)
such information becomes generally available to the public other than as a result of a
disclosure or failure to safeguard by any such person or (iv) such information becomes
available to any such person from a source other than the Guarantor and such source is not
bound by a confidentiality agreement or is not otherwise under a duty of trust to the
Guarantor; provided further, that the foregoing inspection and information
gathering shall, to the greatest extent possible, be coordinated on behalf of all the Notice
Holders and the other parties entitled thereto by the counsel, referred to in Section 5, for
the Holders in connection with Shelf Registration Statements.

     (m) Comply in all material respects with all applicable rules and regulations of the
SEC; and make generally available to its securityholders earnings statements (which need not
be audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder (or any similar rule promulgated under the Securities Act), which statements
shall cover a period of twelve (12) months commencing on the first day of the first fiscal
quarter of the Guarantor commencing after the effective date of each Shelf Registration
Statement (within the meaning of Rule 158(c) under the Securities Act), and which statements
shall be so made generally available to the Guarantor’s securityholders as follows: (i) with
respect to an earnings statement which will be contained in one report on Form 10-K (or any
other form as may then be available for such purpose), such earnings statement shall be made
so generally available no later than the due date by which the Guarantor is required,
pursuant to the Exchange Act (subject to any applicable extensions under Rule 12b-25
thereunder), to file such report with the SEC; and (ii) with respect to an earnings
statement which will be contained in any combination of reports on Form 10-K or Form 10-Q
(or any other form(s) as may then be available for such purpose), such earnings statement
shall be made so generally available no later than the due date by which the Guarantor is
required, pursuant to the Exchange Act (subject to any applicable extensions under Rule
12b-25 thereunder), to file the last of such reports which together constitute such earnings
statement.

     (n) Cooperate with each Notice Holder to facilitate the timely preparation and delivery
of certificates representing Registrable Securities sold pursuant to a Shelf Registration
Statement, which certificates shall not bear any restrictive legends, and cause such
Registrable Securities to be in such denominations as are permitted by the Indenture and
registered in such names as such Notice Holder may request in writing at least three (3)
Business Days prior to any sale of such Registrable Securities.

     (o) Provide a CUSIP number for all Registrable Securities covered by a Shelf
Registration Statement not later than the effective date of the Initial Shelf Registration
Statement and provide the Trustee and the transfer agent for the Common Stock with
certificates for the Registrable Securities that are in a form eligible for deposit with The
Depository Trust Guarantor.

18

 

     (p) Cooperate and assist in any filings required to be made with the National
Association of Securities Dealers, Inc.

     (q) Upon the filing of the Initial Shelf Registration Statement, and upon the
effectiveness under the Securities Act of the Initial Shelf Registration Statement, announce
the same, in each case by release through a reputable national newswire service.

     (r) Take all actions and enter into such customary agreements (including, if requested,
an underwriting agreement in customary form) as are necessary, or reasonably requested by
the Holders of a majority of the Registrable Securities being sold, in order to expedite or
facilitate disposition of such Registrable Securities; and in such connection, if an
underwriting agreement or similar agreement is entered into and whether or not the
registration is an underwritten registration:

          (i) the Guarantor shall make such representations and warranties to the Holders of such
Registrable Securities and the underwriters, if any, in form, substance and scope as would
be customarily made by the Guarantor to underwriters in similar offerings of securities;

          (ii) the Guarantor shall obtain opinions of counsel of the Guarantor and updates
thereof (which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the Managing Underwriters, if any, and to the counsel to the Holders of the
Registrable Securities being sold) addressed to each selling Holder and the underwriters, if
any, covering the matters that would be customarily covered in opinions requested in sales
of securities or underwritten offerings;

          (iii) the Guarantor shall obtain “comfort letters” and updates thereof from the
Guarantor’s independent certified public accountants (and, if necessary, any other
independent certified public accountants of any subsidiary of the Guarantor or of any
business acquired by the Guarantor for which financial statements are, or are required to
be, included in any Shelf Registration Statement) addressed to the underwriters, if any, and
the selling Holders of Registrable Securities (to the extent consistent with Statement on
Auditing Standards No. 72 of the American Institute of Certified Public Accounts), such
letters to be in customary form and covering matters of the type that would customarily be
covered in “comfort letters” to underwriters in connection with similar underwritten
offerings;

          (iv) the Guarantor shall, if an underwriting agreement is entered into, cause any such
underwriting agreement to contain customary indemnification provisions and procedures; and

          (v) the Guarantor shall deliver such documents and certificates as may be reasonably
requested and as are customarily delivered in similar offerings to the holders of a majority
of the Registrable Securities being sold and to the Managing Underwriters, if any;

the above to be done in connection with any underwriting or similar agreement as and to the extent
required thereunder.

19

 

     (s) Cause the Underlying Common Stock to be listed on the New York Stock Exchange.

     (t) In the event that any broker-dealer registered under the Exchange Act shall
underwrite any Registrable Securities or participate as a member of an underwriting
syndicate or selling group or “participate in a public offering” (within the meaning of the
Conduct Rules (the “FINRA Rules”) of the Financial Industry Regulatory Authority
Inc.) thereof, whether as a Holder of such Registrable Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or otherwise, the
Guarantor will assist such broker-dealer in complying with the requirements of such FINRA
Rules, including, without limitation, by: (i) if such FINRA Rules, including FINRA Rule
2720, shall so require, engaging a “qualified independent underwriter” (as defined in FINRA
Rule 2720) to participate in the preparation of the Shelf Registration Statement relating to
such Registrable Securities, to exercise usual standards of due diligence in respect thereof
and, if any portion of the offering contemplated by such Shelf Registration Statement is an
underwritten offering or is made through a placement or sales agent, to recommend the yield
or price, as the case may be, of such Registrable Securities; (ii) indemnifying any such
qualified independent underwriter to the extent of the indemnification of underwriters
provided in Section 6 hereof; and (iii) providing such information to such broker-dealer as
may be required in order for such broker-dealer to comply with the requirements of the FINRA
Rules.

     4. Holder’s Obligations. Each Holder agrees, by acquisition of the Registrable
Securities, that no Holder of Registrable Securities shall be entitled to sell any of such
Registrable Securities pursuant to a Shelf Registration Statement or to receive a Prospectus
relating thereto, unless such Holder has furnished the Guarantor with a Notice and Questionnaire as
required pursuant to Section 2(d) hereof (including the information required to be included in such
Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder
agrees promptly to furnish to the Guarantor all information required to be disclosed in order to
make the information previously furnished to the Guarantor by such Notice Holder not misleading and
any other information regarding such Notice Holder and the distribution of such Registrable
Securities as the Guarantor may from time to time reasonably request. Any sale of any Registrable
Securities by any Holder shall constitute a representation and warranty by such Holder that the
Holder Information of such Holder furnished in writing by or on behalf of such Holder to the
Guarantor does not include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements in such Holder Information, in the light of the
circumstances under which they were made, not misleading.

     5. Registration Expenses. The Guarantor shall bear all fees and expenses incurred in
connection with the performance by the Guarantor of its obligations under Section 2 and Section 3
of this Agreement whether or not any of the Shelf Registration Statements are filed or declared
effective under the Securities Act. Such fees and expenses (“Registration Expenses”) shall
include, without limitation, (i) all registration and filing fees and expenses (including, without
limitation, fees and expenses (x) with respect to filings required to be made with the National
Association of Securities Dealers, Inc. and (y) of compliance with federal securities laws and
state securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements
of counsel for the Holders in connection with Blue Sky qualifications of the

20

 

Registrable Securities under the laws of such jurisdictions as the Notice Holders of a
majority of the Registrable Securities being sold pursuant to a Shelf Registration Statement may
designate), (ii) all printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities in a form eligible for deposit with The Depository Trust
Company and printing Prospectuses), (iii) all duplication and mailing expenses relating to copies
of any Shelf Registration Statement or Prospectus delivered to any Holders hereunder, (iv) all fees
and disbursements of counsel for the Guarantor, (v) all fees and disbursements of the Trustee and
its counsel and of the registrar and transfer agent for the Common Stock and (vi) Securities Act
liability insurance obtained by the Guarantor in its sole discretion. In addition, the Guarantor
shall pay the internal expenses of the Guarantor (including, without limitation, all salaries and
expenses of officers and employees performing legal or accounting duties), the expense of any
annual audit or quarterly review, the fees and expenses incurred in connection with the listing by
the Guarantor of the Registrable Securities on any securities exchange or quotation system on which
similar securities of the Guarantor are then listed and the fees and expenses of any person,
including, without limitation, special experts, retained by the Guarantor. If the Guarantor shall,
pursuant to Rule 456(b), defer payment of any registration fees due under the Securities Act with
respect to any Registration Statement, the Guarantor agrees that it shall pay the fees applicable
to such Registration Statement within the time required by Rule 456(b)(1)(i) (without reliance on
the proviso to Rule 456(b)(1)(i)) and in compliance with Rule 456(b) and Rule 457(r). In addition
and notwithstanding the foregoing, the Guarantor shall pay the reasonable fees and disbursements of
only one counsel for the Holders in connection with the Shelf Registration Statement.

     6. Indemnification, Contribution.

     (a) The Guarantor and the Issuer agree to indemnify, defend and hold harmless each
Initial Purchaser, each Holder, each person (a “Controlling Person”), if any, who
controls any Initial Purchaser or Holder within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act and the respective officers, directors, partners,
employees, representatives and agents of any Initial Purchaser, the Holders or any
Controlling Person (each, an “Indemnified Party”), from and against any loss,
damage, expense, liability, claim or any actions in respect thereof (including the
reasonable cost of investigation) which such Indemnified Party may incur or become subject
to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage,
expense, liability, claim or action arises out of or is based upon any untrue statement or
alleged untrue statement of a material fact contained in any Shelf Registration Statement or
Prospectus, including any document incorporated by reference therein, or in any amendment or
supplement thereto or in any preliminary prospectus, or arises out of or is based upon any
omission or alleged omission to state a material fact required to be stated in any Shelf
Registration Statement or in any amendment or supplement thereto or necessary to make the
statements therein not misleading, or arises out of or is based upon any omission or alleged
omission to state a material fact necessary in order to make the statements made in any
Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in
the light of the circumstances under which such statements were made, not misleading, and
the Guarantor and the Issuer shall reimburse, as incurred, the Indemnified Parties for any
legal or other expenses reasonably incurred by them in connection with investigating or
defending any

21

 

such loss, damage, expense, liability, claim or action in respect thereof; provided,
however, that the Guarantor and the Issuer shall not be required to provide any
indemnification pursuant to this Section 6(a) in any such case insofar as any such loss,
damage, expense, liability, claim or action arises out of or is based upon (i) any untrue
statement or omission or alleged untrue statement or omission of a material fact contained
in, or omitted from, and in conformity with information furnished in writing by or on behalf
of an Initial Purchaser or a Holder to the Guarantor expressly for use in, any Shelf
Registration Statement or any Prospectus or (ii) a disposition, pursuant to a Shelf
Registration Statement, of Registrable Securities by an Indemnified Party during a
Suspension Period, provided such Indemnified Party received, prior to such disposition, a
Suspension Notice with respect to such Suspension Period; provided further,
however, that this indemnity agreement will be in addition to any liability which
the Guarantor and the Issuer may otherwise have to such Indemnified Party.

     (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold
harmless the Guarantor and the Issuer, each of its directors, officers, employees,
representatives, agents and any person who controls the Guarantor and the Issuer within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a
“Guarantor Indemnified Party”) from and against any loss, damage, expense,
liability, claim or any actions in respect thereof (including the reasonable cost of
investigation) which such Guarantor Indemnified Party may incur or become subject to under
the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense,
liability, claim or action arises out of or is based upon (A) any untrue statement or
alleged untrue statement of a material fact contained in, and in conformity with information
(the “Holder Information”) furnished in writing by or on behalf of such Holder to
the Guarantor expressly for use in, any Shelf Registration Statement or Prospectus, or
arises out of or is based upon any omission or alleged omission to state a material fact in
connection with such Holder Information, which material fact was not contained in such
Holder Information, and which material fact was either required to be stated in any Shelf
Registration Statement or Prospectus or necessary to make such Holder Information not
misleading, (B) a sale, by such Holder pursuant to a Shelf Registration Statement in or with
respect to which such Holder is named as a selling securityholder, of Registrable Securities
during a Suspension Period, provided that the Guarantor shall have theretofore provided such
Holder a Suspension Notice in accordance with Section 3(k), or (C) a public sale of
Registrable Securities by such Holder without delivery, if required by the Securities Act,
of the most recent applicable Prospectus provided to such Holder by the Guarantor pursuant
to Section 3(i) or Section 2(d)(i)(C), provided the Guarantor shall have theretofore
provided such Holder with copies of such Prospectus in a timely manner so as to permit such
delivery; and, subject to the limitation set forth in the immediately preceding clause, each
Holder shall reimburse, as incurred, the Guarantor and the Issuer for any legal or other
expenses reasonably incurred by the Guarantor and the Issuer or any such controlling person
in connection with investigating or defending any loss, damage, expense, liability, claim or
action in respect thereof. This indemnity agreement will be in addition to any liability
which such Holder may otherwise have to the Guarantor and the Issuer or any of its
controlling persons. In no event shall the liability of any selling Holder of Registrable
Securities hereunder be greater in amount than the dollar amount of the proceeds received by
such Holder upon the sale, pursuant to the

22

 

Shelf Registration Statement, of the Registrable Securities giving rise to such
indemnification obligation.

     (c) If any action, suit or proceeding (each, a “Proceeding”) is brought against
any person in respect of which indemnity may be sought pursuant to either Section 6(a) or
Section 6(b), such person (the “Indemnified Party”) shall promptly notify the person
against whom such indemnity may be sought (the “Indemnifying Party”) in writing of
the institution of such Proceeding and the Indemnifying Party shall assume the defense of
such Proceeding; provided, however, that the omission to so notify such
Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may
have to such Indemnified Party or otherwise. Such Indemnified Party shall have the right to
employ its own counsel in any such case, but the fees and expenses of such counsel shall be
at the expense of such Indemnified Party unless the employment of such counsel shall have
been authorized in writing by such Indemnifying Party in connection with the defense of such
Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the
defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such
Indemnified Party shall have reasonably concluded upon the written advice of counsel that
there may be one or more defenses available to it that are different from, additional to or
in conflict with those available to such Indemnifying Party (in which case such Indemnifying
Party shall not have the right to direct that portion of the defense of such Proceeding on
behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and
participate in the defense thereof but the fees and expenses of such counsel shall be at the
expense of such Indemnifying Party), in any of which events such reasonable fees and
expenses shall be borne by such Indemnifying Party and paid as incurred (it being
understood, however, that such Indemnifying Party shall not be liable for the expenses of
more than one separate counsel in any one Proceeding or series of related Proceedings
together with reasonably necessary local counsel representing the Indemnified Parties who
are parties to such action). An Indemnifying Party shall not be liable for any settlement of
such Proceeding effected without the written consent of such Indemnifying Party, but if
settled with the written consent of such Indemnifying Party, such Indemnifying Party agrees
to indemnify and hold harmless an Indemnified Party from and against any loss or liability
by reason of such settlement. Notwithstanding the foregoing sentence, if at any time an
Indemnified Party shall have requested an Indemnifying Party to reimburse such Indemnified
Party for fees and expenses of counsel as contemplated by the second sentence of this
paragraph, then such Indemnifying Party agrees that it shall be liable for any settlement of
any Proceeding effected without its written consent if (i) such settlement is entered into
more than sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid
request, (ii) such Indemnifying Party shall not have fully reimbursed such Indemnified Party
in accordance with such request prior to the date of such settlement and (iii) such
Indemnified Party shall have given such Indemnifying Party at least thirty (30) days’ prior
notice of its intention to settle. No Indemnifying Party shall, without the prior written
consent of any Indemnified Party, effect any settlement of any pending or threatened
Proceeding in respect of which such Indemnified Party is or could have been a party and
indemnity could have been sought hereunder by such Indemnified Party, unless such settlement
includes an unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding and does not include an

23

 

admission of fault or culpability or a failure to act by or on behalf of such
Indemnified Party.

     (d) If the indemnification provided for in this Section 6 is unavailable to an
Indemnified Party under Section 6(a) or Section 6(b), or insufficient to hold such
Indemnified Party harmless, in respect of any losses, damages, expenses, liabilities, claims
or actions referred to therein, then each applicable Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, damages, expenses, liabilities, claims or
actions (i) in such proportion as is appropriate to reflect the relative benefits received
by the Guarantor and the Issuer, on the one hand, and by the Holders or the Initial
Purchasers, on the other hand, from the offering of the Registrable Securities or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Guarantor and the Issuer, on the one hand, and
of the Holders or the Initial Purchasers, on the other hand, in connection with the
statements or omissions which resulted in such losses, damages, expenses, liabilities,
claims or actions, as well as any other relevant equitable considerations. The relative
fault of the Guarantor and the Issuer, on the one hand, and of the Holders or the Initial
Purchasers, on the other hand, shall be determined by reference to, among other things,
whether the untrue statement or alleged untrue statement of a material fact or omission or
alleged omission relates to information supplied by the Guarantor and the Issuer or by the
Holders or the Initial Purchasers and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The amount
paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims
and actions referred to above shall be deemed to include any reasonable legal or other fees
or expenses reasonably incurred by such party in connection with investigating or defending
any Proceeding.

     (e) The Guarantor, the Issuer, the Holders and the Initial Purchasers agree that it
would not be just and equitable if contribution pursuant to this Section 6 were determined
by pro rata allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in Section 6(d) above. Notwithstanding the
provisions of this Section 6, no Holder shall be required to contribute any amount in excess
of the amount by which the total price at which the Registrable Securities giving rise to
such contribution obligation and sold by such Holder were offered to the public exceeds the
amount of any damages which it has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders’ respective obligations to contribute pursuant to this
Section 6 are several in proportion to the respective amount of Registrable Securities they
have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided
for in this Section 6 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.

24

 

     (f) The indemnity and contribution provisions contained in this Section 6 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of any Holder or the Initial Purchasers or any
person controlling any Holder or Initial Purchaser, or the Guarantor, or the Issuer, or the
Guarantor’s or the Issuer’s officers or directors or any person controlling the Guarantor or
the Issuer and (iii) the sale of any Registrable Security by any Holder.

     7. Information Requirements.

     (a) The Guarantor covenants that, if at any time before the end of the Effectiveness
Period it is not subject to the reporting requirements of the Exchange Act, it will
cooperate with any Holder of Registrable Securities and take such further action as any
Holder of Registrable Securities may reasonably request in writing (including, without
limitation, making such representations as any such Holder may reasonably request), all to
the extent required from time to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act within the limitations of the exemptions
provided by Rule 144, Rule 144A and Regulation S under the Securities Act and customarily
taken in connection with sales pursuant to such exemptions. Upon the written request of any
Holder, the Guarantor shall deliver to such Holder a written statement as to whether the
Guarantor has complied with the reporting requirements of the Exchange Act, unless such a
statement has been included in the Guarantor’s most recent report filed with the SEC
pursuant to Section 13 or Section 15(d) of Exchange Act. Notwithstanding the foregoing,
nothing in this Section 7 shall be deemed to require the Guarantor to register any of its
securities (other than the Common Stock) under any section of the Exchange Act.

     (b) The Guarantor shall file the reports required to be filed by it under the Exchange
Act and shall comply with all other requirements set forth in the instructions to Form S-3
in order to allow the Guarantor to be eligible to file registration statements on Form S-3.
The Guarantor shall use its commercially reasonable best efforts to remain eligible,
pursuant to Rule 430B(b), to omit, from the prospectus that is filed as part of a
Registration Statement, the identities of selling securityholders and amounts of securities
to be registered on their behalf.

     8. Underwritten Registrations.

     (a) If any of the Registrable Securities covered by the Shelf Registration Statement
are to be offered and sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will administer the offering (“Managing
Underwriters”) shall be selected by the holders of a majority of such Registrable
Securities to be included in such offering.

     (b) No person may participate in any underwritten registration hereunder unless such
person (i) agrees to sell such person’s Registrable Securities on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled hereunder to
approve such arrangements and (ii) completes and executes all

25

 

questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents reasonably required under the terms of such underwriting arrangements.

     (c) Notwithstanding anything herein to the contrary, in no event shall Registrable
Securities be offered and sold pursuant hereto through a Shelf Registration Statement
pursuant to an underwritten offering without the prior written agreement of the Guarantor.

     9. Miscellaneous.

     (a) Remedies. The Guarantor and the Issuer acknowledge and agree that any
failure by the Guarantor or the Issuer to comply with their obligations under this Agreement
may result in material irreparable injury to the Initial Purchasers and the Holders for
which there is no adequate remedy at law, that it will not be possible to measure damages
for such injuries precisely and that, in the event of any such failure, any Initial
Purchaser or Holder may obtain such relief as may be required to specifically enforce the
Guarantor’s and the Issuer’s obligations under this Agreement. The Guarantor and the Issuer
further agree to waive the defense in any action for specific performance that a remedy at
law would be adequate. Notwithstanding the foregoing two sentences, this Section 9(a) shall
not apply to the subject matter referred to in and contemplated by Section 2(e).

     (b) No Conflicting Agreements. The Guarantor and the Issuer are not, as of the
date hereof, a party to, nor shall they, on or after the date of this Agreement, enter into,
any agreement with respect to the Guarantor’s securities that conflicts with the rights
granted to the Holders in this Agreement. The Guarantor and the Issuer represent and warrant
that the rights granted to the Holders hereunder do not in any way conflict with the rights
granted to the holders of the Guarantor’s or the Issuer’s securities under any other
agreements. The Guarantor and the Issuer will not take any action with respect to the
Registrable Securities which would adversely affect the ability of any of the Holders to
include such Registrable Securities in a registration undertaken pursuant to this Agreement.
The Guarantor represents and covenants that it has not granted, and shall not grant, to any
of its securityholders (other than the Holders in such capacity) the right to include any of
the Guarantor’s securities in any Shelf Registration Statement filed pursuant to this
Agreement.

     (c) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, unless the Guarantor has
obtained the written consent of Holders of a majority of outstanding Registrable Securities;
provided, however, that, no consent is necessary from any of the Holders in
the event that this Agreement is amended, modified or supplemented for the purpose of curing
any ambiguity, defect or inconsistency that does not adversely affect the rights of any
Holders. Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of Holders of
Registrable Securities whose securities are being sold pursuant to a Shelf Registration
Statement and that does not directly or indirectly affect the rights of other

26

 

Holders of Registrable Securities may be given by Holders of at least a majority of the
Registrable Securities being sold by such Holders pursuant to such Shelf Registration
Statement; provided, however, that the provisions of this sentence may not
be amended, modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence. Each Holder of Registrable Securities outstanding at the
time of any such amendment, modification, supplement, waiver or consent or thereafter shall
be bound by any such amendment, modification, supplement, waiver or consent effected
pursuant to this Section 9(c), whether or not any notice, writing or marking indicating such
amendment, modification, supplement, waiver or consent appears on the Registrable Securities
or is delivered to such Holder.

     (d) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, by telecopier, by courier guaranteeing
overnight delivery or by first-class mail, return receipt requested, and shall be deemed
given (A) when made, if made by hand delivery, (B) upon confirmation, if made by telecopier,
(C) one (1) Business Day after being deposited with such courier, if made by overnight
courier or (D) on the date indicated on the notice of receipt, if made by first-class mail,
to the parties as follows:

          (i) if to a Holder, at the most current address given by such Holder to the Guarantor
in a Notice and Questionnaire or any amendment thereto;

	 	(ii)	 	if to the Guarantor or the Issuer, to:

1000 Urban Center Drive, Suite 501

Birmingham, Alabama 35242

Attention: Chief Financial Officer

Telecopy No.: (205) 969-3756
	 
	 	(iii)	 	if to the Initial Purchasers, to:
	 
	 	 	 	c/o UBS Securities LLC

299 Park Avenue

New York, New York 10171

Attention: Syndicate Department

Telecopy No.: (212) 713-1205
	 
	 	 	 	and
	 
	 	 	 	UBS Securities LLC

677 Washington Boulevard

Stamford, Connecticut 06901

Attention: Syndicate Department

Telecopy No.: (203) 719-0683

or to such other address as such person may have furnished to the other persons identified in this
Section 9(d) in writing in accordance herewith.

27

 

     (e) Majority of Registrable Securities. For purposes of determining what
constitutes holders of a majority of Registrable Securities, as referred to in this
Agreement, a majority shall constitute a majority in aggregate principal amount of
Registrable Securities, treating each relevant holder of shares of Underlying Common Stock,
Redemption or Repurchase Upon Designated Event of the Notes as a holder of the aggregate
principal amount of Notes in respect of which such Common Stock was issued.

     (f) Approval of Holders. Whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder, Registrable Securities
held by the Guarantor or its “affiliates” (as such term is defined in Rule 405 under the
Securities Act) (other than the Initial Purchasers or subsequent Holders of Registrable
Securities, if the Initial Purchasers or such subsequent Holders are deemed to be such
affiliates solely by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the Holders of such
required percentage.

     (g) Third Party Beneficiaries. The Holders shall be third party beneficiaries
to the agreements made hereunder between the Guarantor and the Issuer, on the one hand, and
the Initial Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent they may deem such enforcement necessary or advisable to
protect their rights or the rights of Holders hereunder. The Trustee shall be entitled to
the rights granted to it pursuant to this Agreement.

     (h) Successors and Assigns. Any person who purchases any Notes or Covered
Security from any Initial Purchaser or from any Holder shall be deemed, for purposes of this
Agreement, to be an assignee of such Initial Purchaser or such Holder, as the case may be.
This Agreement shall inure to the benefit of and be binding upon the respective successors
and assigns of each of the parties hereto and shall inure to the benefit of and be binding
upon each Holder of any Notes or Covered Security.

     (i) Counterparts. This Agreement may be executed in any number of counterparts
and by the parties hereto in separate counterparts, each of which when so executed shall be
deemed to be original and all of which taken together shall constitute one and the same
agreement.

     (j) Headings. The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

     (k) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES THEREOF.

     (l) Severability. If any term, provision, covenant or restriction of this
Agreement is held to be invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated thereby, and the parties
hereto

28

 

shall use their best efforts to find and employ an alternative means to achieve the
same or substantially the same result as that contemplated by such term, provision, covenant
or restriction, it being intended that all of the rights and privileges of the parties shall
be enforceable to the fullest extent permitted by law.

     (m) Entire Agreement. This Agreement is intended by the parties hereto as a
final expression of their agreement and is intended to be a complete and exclusive statement
of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein and the registration rights granted by the Guarantor with respect to the
Registrable Securities. Except as provided in the Purchase Agreement, there are no
restrictions, promises, warranties or undertakings, other than those set forth or referred
to herein, with respect to the registration rights granted by the Guarantor with respect to
the Registrable Securities. This Agreement supersedes all prior agreements and undertakings
among the parties with respect to such registration rights. No party hereto shall have any
rights, duties or obligations other than those specifically set forth in this Agreement.

     (n) Termination. This Agreement and the obligations of the parties hereunder
shall terminate upon the end of the Effectiveness Period, except for any liabilities or
obligations under Section 4, Section 5 or Section 6 hereof and the obligations to make
payments of and provide for additional interest under Section 2(e) hereof to the extent such
additional interest accrues prior to the end of the Effectiveness Period and to the extent
any overdue additional interest accrues in accordance with the last paragraph of such
Section 2(e), each of which shall remain in effect in accordance with its terms.

     (o) Submission to Jurisdiction. Except as set forth below, no claim,
counterclaim or dispute of any kind or nature whatsoever arising out of or in any way
relating to this Agreement (“Claim”) may be commenced, prosecuted or continued in
any court other than the courts of the State of New York located in the City and County of
New York or in the United States District Court for the Southern District of New York, which
courts shall have jurisdiction over the adjudication of such matters, and the Guarantor and
the Issuer hereby consents to the jurisdiction of such courts and personal service with
respect thereto. The Guarantor and the Issuer hereby consents to personal jurisdiction,
service and venue in any court in which any Claim arising out of or in any way relating to
this Agreement is brought by any third party against any Initial Purchaser. THE GUARANTOR
AND THE ISSUER HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED
UPON CONTRACT, TORT OR OTHERWISE) IN ANY WAY ARISING OUT OF OR RELATING TO THIS AGREEMENT.
The Guarantor and the Issuer agree that a final judgment in any such Proceeding brought in
any such court shall be conclusive and binding upon the Guarantor or the Issuer and may be
enforced in any other courts in the jurisdiction of which the Guarantor or the Issuer is or
may be subject, by suit upon such judgment.

[The Remainder of This Page Intentionally Left Blank; Signature Page Follows]

29

 

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	MEDICAL PROPERTIES TRUST, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Edward K. Aldag, Jr.
 

Name: Edward K. Aldag, Jr.
	 	 
	 

	 	 	 	Title: Chairman, President & CEO	 	 
	 
	 	 	 	 	 	 
	 	 	MPT OPERATING PARTNERSHIP, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Medical Properties Trust, LLC

Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Medical Properties Trust, Inc.

Its: Sole Member	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Edward K. Aldag, Jr.
 	 
	 	 	Name:  	Edward K. Aldag, Jr. 	 
	 	 	Title:  	Chairman, President & CEO 	 

 

	 	 	 	 	 

Accepted and agreed to as of the date

first above written, on behalf of itself

and the other several Initial

Purchasers:

UBS SECURITIES LLC

	 	 	 	 	 
	By:

	 	/s/ Jon Santemma
 

Name: Jon Santemma
	 	 
	 

	 	Title: Managing Director	 	 
	 
	 	 	 	 
	By:

	 	/s/ Ryan Bondroff
 

Name: Ryan Bondroff
	 	 
	 

	 	Title: Associate DirectorEX-4.3.1

 

Exhibit 4.3.1

          NINETEENTH SUPPLEMENTAL INDENTURE, dated as of March 27, 2008, between The Kroger Co., a
corporation duly organized and existing under the laws of the State of Ohio (herein called the
“Company”), having its principal office at 1014 Vine Street, Cincinnati, Ohio 45202, the Guarantors
listed on the signature pages and Schedule I hereto (each, a “Guarantor”) and U.S. Bank National
Association (formerly known as Firstar Bank, N.A.), a banking corporation duly organized and
existing under the laws of the State of Ohio, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

          The Company has heretofore executed and delivered to the Trustee an Indenture dated as of June
25, 1999 (the “Indenture”), providing for the issuance from time to time of the Company’s unsecured
debentures, notes or other evidences of indebtedness (herein and therein called the “Securities”),
to be issued in one or more series as in the Indenture provided.

          Section 201 of the Indenture permits the form of the Securities of any series to be
established pursuant to an indenture supplemental to the Indenture.

          Section 301 of the Indenture permits the terms of the Securities of any series to be
established in an indenture supplemental to the Indenture.

          Section 901(7) of the Indenture provides that, without the consent of any Holders, the
Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time,
may enter into one or more indentures supplemental to the Indenture for the purpose of establishing
the form or terms of Securities of any series as permitted by Sections 201 and 301 of the
Indenture.

          Each of the Guarantors has duly authorized the issuance of a guarantee of the Securities, as
set forth herein, and to provide therefor, each of the Guarantors has duly authorized the execution
and delivery of this Nineteenth Supplemental Indenture.

          The Company and the Guarantors, pursuant to the foregoing authority, propose in and by this
Nineteenth Supplemental Indenture to establish the terms and form of the Securities of a new series
and to amend and supplement the Indenture in certain respects with respect to the Securities of
such series.

 

 

          All things necessary to make this Nineteenth Supplemental Indenture a valid agreement of the
Company and the Guarantors, and a valid amendment of and supplement to the Indenture, have been
done.

          NOW, THEREFORE, THIS NINETEENTH SUPPLEMENTAL INDENTURE WITNESSETH:

          For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the
Securities of the series to be created hereby, as follows:

ARTICLE ONE

DEFINITIONS

Section 101. Definitions.

(a) For all purposes of this Nineteenth Supplemental Indenture:

     (1) Capitalized terms used herein without definition shall have
the meanings specified in the Indenture;

     (2) All references herein to Articles and Sections, unless
otherwise specified, refer to the corresponding Articles and Sections
of this Nineteenth Supplemental Indenture and, where so specified, to
the Articles and Sections of the Indenture as supplemented by this
Nineteenth Supplemental Indenture; and

     (3) The terms “hereof”, “herein”, “hereby”, “hereto”, “hereunder”
and “herewith” refer to this Nineteenth Supplemental Indenture.

          (b) For all purposes of the Indenture and this Nineteenth Supplemental Indenture, with respect
to the Securities of the series created hereby, except as otherwise expressly provided or unless
the context otherwise requires:

     “Adjusted Treasury Rate” means, with respect to any Redemption
Date, the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption
Date.

     “Attributable Debt” means, in connection with a Sale and
Lease-Back Transaction, as of any particular time, the aggregate of
present values (discounted at a rate per annum equal to the interest

- 2 -

 

rate borne by the Securities of the series created by this
Nineteenth Supplemental Indenture) of the obligations of the Company
or any Restricted Subsidiary for net rental payments during the
remaining primary term of the applicable lease, calculated in
accordance with generally accepted accounting principles. The term
“net rental payments” under any lease for any period shall mean the
sum of the rental and other payments required to be paid in such
period by the lessee thereunder, not including, however, any amounts
required to be paid by such lessee (whether or not designated as
rental or additional rental) on account of maintenance and repairs,
reconstruction, insurance, taxes, assessments, water rates, operating
and labor costs or similar charges required to be paid by such lessee
thereunder or any amounts required to be paid by such lessee
thereunder contingent upon the amount of sales, maintenance and
repairs, reconstruction, insurance, taxes, assessments, water rates or
similar charges.

     “Business Day” means any day other than a Saturday or Sunday or a
day on which banking institutions in New York City or Cincinnati, Ohio
are authorized or obligated by law or executive order to close.

     “Capital Lease” means any lease of property which, in accordance
with generally accepted accounting principles, should be capitalized
on the lessee’s balance sheet or for which the amount of the asset and
liability thereunder as if so capitalized should be disclosed in a
note to such balance sheet; and “Capitalized Lease Obligation” means
the amount of the liability which should be so capitalized or
disclosed.

     “Comparable Treasury Issue” means the United States Treasury
security selected by a Quotation Agent as having a maturity comparable
to the remaining term of the Securities to be redeemed that would be
utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities
of comparable maturity to the remaining term of such Securities.

     “Comparable Treasury Price” means, with respect to any Redemption
Date, (i) the average of the Reference Treasury Dealer Quotations,
after excluding the highest and lowest such Reference Treasury Dealer
Quotations for such Redemption Date, or (ii) if the Trustee obtains
fewer than three such Reference Treasury Dealer Quotations, the
average of all such Quotations.

- 3 -

 

     “Consolidated Net Tangible Assets” means, for the Company and its
Subsidiaries on a consolidated basis determined in accordance with
generally accepted accounting principles, the aggregate amounts of
assets (less depreciation and valuation reserves and other reserves
and items deductible from gross book value of specific asset accounts
under generally accepted accounting principles) which under generally
accepted accounting principles would be included on a balance sheet
after deducting therefrom (a) all liability items except deferred
income taxes, commercial paper, short-term bank Indebtedness, Funded
Indebtedness, other long-term liabilities and shareholders’ equity and
(b) all goodwill, trade names, trademarks, patents, unamortized debt
discount and expense and other like intangibles, which in each case
would be so included on such balance sheet.

     “Credit Facility” means any credit agreement, loan agreement or
credit facility, whether syndicated or not, involving the extension of
credit by banks or other credit institutions, entered into by the
Company or Fred Meyer, Inc. and outstanding on the date of this
Nineteenth Supplemental Indenture, and any refinancing or other
restructuring of such agreement or facility.

     “Funded Indebtedness” means any Indebtedness maturing by its
terms more than one year from the date of the determination thereof,
including (i) any Indebtedness having a maturity of 12 months or less
but by its terms renewable or extendible at the option of the obligor
to a date later than 12 months from the date of the determination
thereof and (ii) rental obligations payable more than 12 months from
the date of determination thereof under Capital Leases (such rental
obligations to be included as Funded Indebtedness at the amount so
capitalized at the date of such computation and to be included for the
purposes of the definition of Consolidated Net Tangible Assets both as
an asset and as Funded Indebtedness at the amount so capitalized).

     “Non-Restricted Subsidiary” means any Subsidiary that the
Company’s Board of Directors has in good faith declared pursuant to a
written resolution not to be of material importance, either singly or
together with all other Non-Restricted Subsidiaries, to the business
of the Company and its consolidated Subsidiaries taken as a whole.

     “Operating Assets” means all merchandise inventories, furniture,
fixtures and equipment (including all transportation and

- 4 -

 

warehousing equipment but excluding office equipment and data
processing equipment) owned or leased pursuant to Capital Leases by
the Company or a Restricted Subsidiary.

     “Operating Property” means all real property and improvements
thereon owned or leased pursuant to Capital Leases by the Company or a
Restricted Subsidiary and constituting, without limitation, any store,
warehouse, service center or distribution center wherever located,
provided that such term shall not include any store, warehouse,
service center or distribution center which the Company’s Board of
Directors declares by written resolution not to be of material
importance to the business of the Company and its Restricted
Subsidiaries.

     “Quotation Agent” means the Reference Treasury Dealer appointed
by the Company.

     “Reference Treasury Dealer” means (i) J.P. Morgan Securities Inc.
and its successors; provided, however, that if the foregoing shall
cease to be a primary U.S. Government securities dealer in New York
City (a “Primary Treasury Dealer”), the Company shall substitute
therefor another Primary Treasury Dealer, and (ii) any other Primary
Treasury Dealer selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to
each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Company, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Trustee by such
Reference Treasury Dealer at 5:00 p.m. on the third Business Day
preceding such Redemption Date.

     “Restricted Subsidiaries” means all Subsidiaries other than
Non-Restricted Subsidiaries.

     “Sale and Lease-Back Transaction” has the meaning specified in
Section 1010.

     “Subsidiary” means (i) any corporation or other entity of which
securities or other ownership interests having ordinary voting power
to elect a majority of the board of directors or other persons
performing similar functions are at the time directly or indirectly
owned by the Company and/or one or more Subsidiaries

- 5 -

 

or (ii) any partnership of which more than 50% of the partnership
interest is owned by the Company or any Subsidiary.

ARTICLE TWO

SECURITY FORMS

	 	 	 
	Section 201.

	 	Form of Securities of this Series.
	 
	 	 
	 

	 	The Securities of this series shall be in the form set forth in this Article.
	 
	 	 
	Section 202.

	 	Form of Face of Security.

          This Security is a Global Security within the meaning of the Indenture hereinafter referred to
and is registered in the name of a Depositary or a nominee of a Depositary. This Security 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
Security (other than a transfer of this Security 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) may be registered except in the limited circumstances described in the Indenture.

          Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to The Kroger Co. or its 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.

THE KROGER CO.

5.00% Senior Notes due 2013

	 	 	 	 	 
	CUSIP No. 501044CJ8
	 	 	 	 
	ISIN No. US501044CJ85

	 	$	400,000,000	 

          The Kroger Co., a corporation duly organized and existing under the laws of the State of Ohio
(herein called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to      , or registered
assigns, the principal sum of $400,000,000 on April 15, 2013 and to pay interest thereon from March
27, 2008, or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on April 15 and October 15 in each year, commencing October 15, 2008 at
the rate of interest of 5.00% per annum until the principal

- 6 -

 

hereof is paid or made available for payment. Interest on the Security will be computed on
the basis of a 360-day year of twelve 30-day months. The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the April 1 or
October 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities not less than 10 days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

          Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in Cincinnati, Ohio, in such
coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that at the option of the
Company payment of interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register.

          In the case where any Interest Payment Date or the maturity date of this Security does not
fall on a Business Day, payment of interest or principal otherwise payable on such day need not be
made on such day, but may be made on the next succeeding Business Day with the same force and
effect as if made on such Interest Payment Date or the maturity date of this Security.

          Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

- 7 -

 

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 	 	 
	Dated: March 27, 2008
	 	 	 	 	 	 
	 	 	THE KROGER CO.	 	 
	 
	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Name:

	 	 
	 	 	 	 
	Title:
	 	 	 	 	 	 

          This is one of the Securities of the series designated therein referred to in the within
mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION,	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

          Authorized Officer
	 	 
	Attest:

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Section 203. Form of Reverse of Security.

          This Security is one of a duly authorized issue of Securities of the Company (including the
related Guarantees, the “Securities”) issued and to be issued under an Indenture dated as of June
25, 1999, as supplemented by the First Supplemental Indenture dated as of June 25, 1999, the Second
Supplemental Indenture dated as of June 25, 1999, the Third Supplemental Indenture dated as of June
25, 1999, the Fourth Supplemental Indenture dated as of September 22, 1999, the Fifth Supplemental
Indenture dated as of September 22, 1999, the Sixth Supplemental Indenture dated as of September
22, 1999, the Seventh Supplemental Indenture dated as of February 11, 2000, the Eighth Supplemental
Indenture dated as of

- 8 -

 

February 11, 2000, the Ninth Supplemental Indenture dated as of August 21, 2000, the Tenth
Supplemental Indenture dated as of May 11, 2001, the Eleventh Supplemental Indenture dated as of
May 11, 2001, the Twelfth Supplemental Indenture dated as of August 16, 2001, the Thirteenth
Supplemental Indenture dated as of April 3, 2002, the Fourteenth Supplemental Indenture dated as of
June 17, 2002, the Fifteenth Supplemental Indenture dated as of January 28, 2003, the Sixteenth
Supplemental Indenture dated as of December 20, 2004, the Seventeenth Supplemental Indenture dated
as of August 15, 2007, the Eighteenth Supplemental Indenture dated as of January 16, 2008 and the
Nineteenth Supplemental Indenture dated as of March 27, 2008 (as so supplemented, herein called the
“Indenture”), each between the Company and the Guarantors named therein, and Firstar Bank, N.A.
(now known as U.S. Bank National Association), as Trustee (herein called the “Trustee”, which term
includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Guarantors named therein, the
Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face
hereof, initially limited in aggregate principal amount to $400,000,000.

          The Company may from time to time, without notice to or consent of the registered holders of
the Securities issue further Securities (“Additional Securities”). The Additional Securities will
rank equal with the Securities in all respects (or in all respects other than the payment of
interest accruing prior to the issue date of the Additional Securities, or except for the first
payment of interest following the issue date of the Additional Securities). The Additional
Securities may be consolidated and form a single series with the Securities and may have the same
terms as to status, redemption, or otherwise, as the Securities.

          The Securities of this series will be redeemable, in whole or in part, at the option of the
Company at any time at a redemption price equal to the greater of (i) 100% of the principal amount
of such Securities or (ii) as determined by a Quotation Agent, the sum of the present values of the
remaining scheduled payments of principal and interest thereon (not including any portion of such
payments of interest accrued as of the date of redemption) discounted to the date of redemption on
a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted
Treasury Rate plus 40 basis points, plus, in each case, accrued interest thereon to the date of
redemption.

          Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each holder of the Securities to be redeemed. Unless the Company defaults in
payment of the redemption price, on and after the Redemption Date, interest will cease to accrue on
the Securities or portions thereof called for redemption.

          If a Change of Control Triggering Event occurs, unless the Company has exercised its right to
redeem the Securities, Holders of Securities will have the right to require the Company to
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
their Securities pursuant to the offer described below (the “Change of

- 9 -

 

Control Offer”). In the Change of Control Offer, the Company shall offer payment in cash
equal to 101% of the aggregate principal amount of Securities repurchased plus accrued and unpaid
interest, if any, on the Securities repurchased, to the date of purchase (the “Change of Control
Payment”). Within 30 days following any Change of Control Triggering Event, or, at the Company’s
option, prior to any Change of Control, but after the public announcement of the Change of Control,
the Company shall mail a notice to Holders of Securities describing the transaction or transactions
that constitute or may constitute the Change of Control Triggering Event and offering to repurchase
the Securities on the date specified in the notice, which date will be no earlier than 30 days and
no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”),
pursuant to the procedures described herein and in such notice. The notice shall, if mailed prior
to the date of consummation of the Change of Control, state that the offer to purchase is
conditioned on the Change of Control Triggering Event occurring on or prior to the payment date
specified in the notice. The Company shall comply with the requirements of Rule 14e-1 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities laws and
regulations thereunder to the extent those laws and regulations are applicable in connection with
the repurchase of the Securities as a result of a Change of Control Triggering Event. To the
extent that the provisions of any securities laws or regulations conflict with the Change of
Control provisions herein, the Company shall be required to comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations under the Change of
Control provisions herein by virtue of such conflicts.

          On the Change of Control Payment Date, the Company shall, to the extent lawful, (i) accept for
payment all Securities or portions of Securities properly tendered pursuant to the Change of
Control Offer; (ii) deposit with the paying agent an amount equal to the Change of Control Payment
in respect of all Securities or portions of Securities properly tendered; and (iii) deliver or
cause to be delivered to the Trustee the Securities properly accepted, together with an officers’
certificate stating the aggregate principal amount of Securities or portions of Securities being
purchased.

          “Below Investment Grade Rating Event” means the Securities are rated below an Investment Grade
Rating by any two of the three Rating Agencies (as defined below) on any date from the date of the
public notice of an arrangement that could result in a Change of Control until the end of the
60-day period following public notice of the occurrence of the Change of Control (which 60-day
period shall be extended so long as the rating of the Securities is under publicly announced
consideration for possible downgrade below investment grade by any of the Rating Agencies);
provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular
reduction in rating shall not be deemed to have occurred in respect of a particular Change of
Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the
definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in
rating to which this definition would otherwise apply do not announce or publicly confirm or inform
the Trustee in writing at the Company’s request that the reduction was the result, in whole or in
part, of any event or circumstance comprised of or arising as a result of, or in respect of, the
applicable Change of

- 10 -

 

Control (whether or not the applicable Change of Control shall have occurred at the time of
the Below Investment Grade Rating Event).

          “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the properties or assets of
the Company and its subsidiaries taken as a whole to any “person” (as that term is used in Section
13(d)(3) of the Exchange Act) other than the Company or one of its subsidiaries; (2) the
consummation of any transaction (including, without limitation, any merger or consolidation) the
result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)
becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding
number of shares of the Company’s voting stock; or (3) the first day on which a majority of the
members of the Company’s Board of Directors are not Continuing Directors. Notwithstanding the
foregoing, a transaction will not be deemed to involve a Change of Control if (1) the Company
becomes a wholly owned subsidiary of a holding company that has agreed to be bound by the terms of
the Securities and (2) the Holders of the voting stock of such holding company immediately
following that transaction are substantially the same as the Holders of the Company’s voting stock
immediately prior to that transaction.

          “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

          “Continuing Directors” means, as of any date of determination, members of the Board of
Directors of the Company who (1) were members of such Board of Directors on the date of original
issuance of the Securities; or (2) were nominated for election or elected to such Board of
Directors with the approval of a majority of the continuing directors under clause (1) or (2) of
this definition who were members of such Board of Directors at the time of such nomination or
election (either by a specific vote or by approval of the Company’s proxy statement in which such
member was named as a nominee for election as a director, without objection to such nomination).

          “Fitch” means Fitch, Inc.

          “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s and BBB- (or the equivalent) by S&P and Fitch, and the equivalent investment grade credit
rating from any replacement rating agency or rating agencies selected by the Company.

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

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

          “Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if Fitch, Moody’s or S&P
ceases to rate the Securities or fails to make a rating of the Securities publicly available for
reasons outside of the Company’s control, a “nationally recognized statistical

- 11 -

 

rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act,
selected by the Company (as certified by a Board Resolution) as a replacement agency for Fitch,
Moody’s or S&P, or any of them, as the case may be.

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

          The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of
this Security or (ii) certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth therein.

          If an Event of Default shall occur and be continuing, the principal of all Securities of this
series may be declared due and payable in the manner and with the effect provided in the Indenture.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of 50% in aggregate principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of the Securities of each
series at the time Outstanding, on behalf of the Holders of all the Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange
therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

          As set forth in, and subject to, the provisions of the Indenture, no Holder of any Security
will have any right to institute any proceeding with respect to the Indenture or for any remedy
thereunder, unless such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default, the Holders of not less than 25% in principal amount of the
Outstanding Securities shall have made written request, and offered reasonable indemnity, to the
Trustee to institute such proceeding as trustee, and the Trustee shall not have received from the
Holders of a majority in principal amount of the Outstanding Securities a direction inconsistent
with such request and shall have failed to institute such proceeding within 60 days;
provided, however, that such limitations do not apply to a suit instituted by the
Holder hereof for the enforcement of payment of the principal of (and premium, if any) or any
interest on this Security on or after the respective due dates expressed herein.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

- 12 -

 

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of like tenor, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or transferees.

          The Securities are issuable only in registered form without coupons in denominations of $2,000
and integral multiples of $1,000. As provided in the Indenture and subject to certain limitations
therein set forth, Securities are exchangeable for a like aggregate principal amount of Securities
of like tenor, of a different authorized denomination, as requested by the Holder surrendering the
same.

          Except where otherwise specifically provided in the Indenture, no service charge shall be made
for any such registration of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

          All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

Section 204. Form of Guarantee.

          The form of Guarantee shall be set forth on the Securities substantially as follows:

GUARANTEE

     For value received, each of the undersigned hereby absolutely, fully and unconditionally and
irrevocably guarantees, jointly and severally with each other Guarantor, to the holder of the
Security on which this Guarantee is endorsed the payment of principal of, premium, if any, and
interest on such Security in the amounts and at the time when due and payable whether by
declaration thereof, or otherwise, and interest on the overdue principal and interest, if any, of
such Security, if lawful, and the payment or performance of all other obligations of the Company
under the Indenture or such Security, to the holder of such Security and the Trustee, all in
accordance with and subject to the terms and limitations of such

- 13 -

 

Security and Article Five of the Nineteenth Supplemental Indenture to the Indenture. This
Guarantee will not become effective until the Trustee duly executes the certificate of
authentication on this Guarantee. This Guarantee shall be governed by and construed in accordance
with the laws of the State of New York, without regard to conflict of law principles thereof.

Dated: March 27, 2008

	 	 	 	 	 
	 	Each of the Guarantors Listed on Schedule I

hereto, as Guarantor of the Securities

 	 
	 	By:  	 	 
	 	 	Name:  	Paul W. Heldman 	 
	 	 	Title:  	President/Vice President 	 

- 14 -

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	QUEEN CITY ASSURANCE, INC.,	 	 
	 	 	as Guarantor of the Securities	 	 
	 	 	RJD ASSURANCE, INC.,	 	 
	 	 	as Guarantor of the Securities	 	 
	 	 	VINE COURT ASSURANCE INCORPORATED,	 	 
	 	 	as Guarantor of the Securities	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 
Name:
 Bruce M. Gack
	 	 
	 

	 	 
	 	Title: Senior Vice President/Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	ROCKET NEWCO, INC.,	 	 
	 	 	as Guarantor of the Securities	 	 
	 	 	HENPIL, INC.,	 	 
	 	 	as Guarantor of the Securities	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 
	 	 
Name: 
Kim Storch
	 	 
	 

	 	 
	 	Title: Vice President	 	 

- 15 -

 

This is one of the Guarantees referred to in the within mentioned Indenture.

	 	 	 	 	 	 	 
	Attest:	 	U.S. BANK NATIONAL ASSOCIATION	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

- 16 -

 

SCHEDULE I

Guarantors

	 	 	 
	Name of Guarantor	 	State of Organization
	Alpha Beta Company

	 	California
	Bay Area Warehouse Stores, Inc.

	 	California
	Bell Markets, Inc.

	 	California
	Cala Co.

	 	Delaware
	Cala Foods, Inc.

	 	California
	CB&S Advertising Agency, Inc.

	 	Oregon
	Crawford Stores, Inc.

	 	California
	Dillon Companies, Inc.

	 	Kansas
	Dillon Real Estate Co., Inc.

	 	Kansas
	Distribution Trucking Company

	 	Oregon
	F4L L.P.

	 	Ohio
	FM, Inc.

	 	Utah
	FMJ, Inc.

	 	Delaware
	Food 4 Less GM, Inc.

	 	California
	Food 4 Less Holdings, Inc.

	 	Delaware
	Food 4 Less Merchandising, Inc.

	 	California
	Food 4 Less of California, Inc.

	 	California
	Food 4 Less of Southern California, Inc.

	 	Delaware
	Fred Meyer, Inc.

	 	Delaware
	Fred Meyer Jewelers, Inc.

	 	California
	Fred Meyer Stores, Inc.

	 	Ohio
	Hughes Markets, Inc.

	 	California
	Hughes Realty, Inc.

	 	California
	Inter-American Foods, Inc.

	 	Ohio
	Junior Food Stores of West Florida, Inc.

	 	Florida
	J.V. Distributing, Inc.

	 	Michigan
	KRGP Inc.

	 	Ohio
	KRLP Inc.

	 	Ohio
	The Kroger Co. of Michigan

	 	Michigan
	Kroger Dedicated Logistics Co.

	 	Ohio
	Kroger Group Cooperative, Inc.

	 	Ohio
	Kroger Limited Partnership I

	 	Ohio
	Kroger Limited Partnership II

	 	Ohio
	Kroger Texas L.P.

	 	Ohio
	Kwik Shop, Inc.

	 	Kansas
	Mini Mart, Inc.

	 	Wyoming
	Peyton’s-Southeastern, Inc.

	 	Tennessee
	Quik Stop Markets, Inc.

	 	California

- 17 -

 

	 	 	 
	Name of Guarantor	 	State of Organization
	Ralphs Grocery Company

	 	Ohio
	Second Story, Inc.

	 	Washington
	Smith’s Beverage of Wyoming, Inc.

	 	Wyoming
	Smith’s Food & Drug Centers, Inc.

	 	Ohio
	THGP Co., Inc.

	 	Pennsylvania
	THLP Co., Inc.

	 	Pennsylvania
	Topvalco, Inc.

	 	Ohio
	Turkey Hill, L.P.

	 	Pennsylvania

- 18 -

 

ARTICLE THREE

THE SERIES OF SECURITIES

Section 301. Title and Terms.

          There shall be a series of Securities designated as the “5.00% Senior Notes due 2013” of the
Company. Their Stated Maturity shall be April 15, 2013, and they shall bear interest at the rate
of 5.00% per annum.

          Interest on the Securities of this series will be payable semi-annually on April 15 and
October 15 of each year, commencing October 15, 2008, until the principal thereof is made available
for payment. Interest on the Securities of this series will be computed on the basis of a 360-day
year of twelve 30-day months. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will be paid to the Person in whose name the Securities of this series
(or one or more Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the April 1 or October 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date.

          In the case where any Interest Payment Date or the maturity date of the Securities of this
series does not fall on a Business Day, payment of interest or principal otherwise payable on such
date need not be made on such day, but may be made on the next succeeding Business Day with the
same force and effect as if made on such Interest Payment Date or the maturity date of the
Securities of this series.

          The aggregate principal amount of Securities of this series which may be authenticated and
delivered under this Nineteenth Supplemental Indenture is initially limited to $400,000,000, except
for Securities authenticated and delivered upon registration or transfer of, or in exchange for, or
in lieu of, other Securities of this series pursuant to Section 304, 305 and 306 of the Indenture
and except for any Securities of this series which, pursuant to Section 303 of the Indenture, are
deemed never to have been authenticated and delivered under the Indenture. Notwithstanding the
foregoing, the Company may from time to time, without notice to or consent of the registered
holders of the Securities issue further Securities (“Additional Securities”). The Additional
Securities will rank equal with the Securities in all respects (or in all respects other than the
payment of interest accruing prior to the issue date of the Additional Securities, or except for
the first payment of interest following the issue date of the Additional Securities). The
Additional Securities may be consolidated and form a single series with the Securities and may have
the same terms as to status, redemption, or otherwise, as the Securities.

          The Securities of this series will be represented by one or more Global Securities
representing the entire $400,000,000 aggregate principal amount of the Securities of this series

- 19 -

 

(as such amount may be increased by the Additional Securities), and the Depositary with
respect to such Global Security or Global Securities will be The Depository Trust Company.

          The Place of Payment for the principal of (and premium, if any) and interest on the Securities
of this series shall be the office or agency of the Company in the City of Cincinnati, State of
Ohio, maintained for such purpose, which shall be the Corporate Trust Office of the Trustee and at
any other office or agency maintained by the Company for such purpose; provided,
however, that at the option of the Company payment of interest may be made by check mailed
to the address of the Person entitled thereto as such address shall appear in the Security
Register.

          The Securities of this series are redeemable prior to maturity at the option of the Company as
provided in this Nineteenth Supplemental Indenture.

          The Securities of this series are not subject to a sinking fund and the provisions of Section
501(3) and Article Twelve of the Indenture shall not be applicable to the Securities of this
series.

          The Securities of this series are subject to defeasance at the option of the Company as
provided in this Nineteenth Supplemental Indenture.

ARTICLE FOUR

MODIFICATIONS AND ADDITIONS TO THE INDENTURE

	 	 	 
	Section 401.

	 	Modifications to the Consolidation, Merger,
	 

	 	Conveyance, Transfer or Lease Provisions.

          With respect to the Securities of this series, Section 801 of the Indenture shall be deleted
in its entirety and the following shall be substituted therefor:

     “Section 801. Covenant Not to Merge, Consolidate, Sell or Convey Property Except
Under Certain Conditions.

     The Company covenants that it will not merge with or into or consolidate with
any corporation, partnership, or other entity or sell, lease or convey all or
substantially all of its assets to any other Person, unless (i) either the Company
shall be the continuing corporation, or the successor entity or the Person which
acquires by sale, lease or conveyance all or substantially all the assets of the
Company (if other than the Company) shall be a corporation or partnership organized
under the laws of the United States of America or any State thereof or the District
of Columbia and shall expressly assume all obligations of the Company under this
Indenture and the Securities of the series created by the Nineteenth Supplemental
Indenture, including the due and punctual payment of the principal of and interest
on all the Securities of the series created by the

- 20 -

 

Nineteenth Supplemental Indenture according to their tenor, and the due and
punctual performance and observance of all of the covenants and conditions of the
Indenture to be performed or observed by the Company, by supplemental indenture in
form satisfactory to the Trustee, executed and delivered to the Trustee by such
entity, and (ii) the Company, such person or such successor entity, as the case may
be, shall not, immediately after such merger or consolidation, or such sale, lease
or conveyance, be in default in the performance of any such covenant or condition
and, immediately after giving effect to such transaction, no Event of Default, and
no event which, after notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing.

     Section 802. Successor Substituted

     Upon any consolidation of the Company with, or merger of the Company into, any other
Person or any sale, lease or conveyance of all or substantially all of the assets of the
Company in accordance with Section 801, the successor Person formed by such consolidation or
into which the Company is merged or to which such sale, lease or conveyance is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor Person had been named as the
Company herein, and thereafter, except in the case of a lease, the predecessor Person shall
be relieved of all obligations and covenants under this Indenture and the Securities.”

Section 402. Other Modifications.

          With respect to the Securities of this series, the Indenture shall be modified as follows:

          (a) The eighth paragraph of Section 305 of the Indenture shall be modified by inserting “,
and a successor Depositary is not appointed by the Company within 90 days” at the end of clause (i)
in such paragraph; and

          (b) Section 401 of the Indenture shall be modified by adding to the end of such Section the
following paragraph:

     “For the purpose of this Section 401, trust funds may consist of (A) money in an
amount, or (B) U.S. Government Obligations (as defined in Section 1304) 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, money in an
amount, or (C) a combination thereof, sufficient, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, the principal of, premium, if any, and each
installment of interest on the Securities of this series on the Stated Maturity of such
principal or installment of interest on the day on which such

- 21 -

 

payments are due and payable in accordance with the terms of this Indenture and of such
Securities of this series.”

Section 403. Additional Covenants; Defeasance and Covenant Defeasance.

          (a) With respect to the Securities of this series, the following provisions shall be added as
Sections 1009, 1010 and 1011 and as Article Thirteen (Section references contained in these
additional provisions are to the Indenture as supplemented by this Nineteenth Supplemental
Indenture):

          “Section 1009. Limitations on Liens.

     After the date hereof and so long as any Securities of the series created by the
Nineteenth Supplemental Indenture are Outstanding, the Company will not issue, assume or
guarantee, and will not permit any Restricted Subsidiary to issue, assume or guarantee, any
Indebtedness which is secured by a mortgage, pledge, security interest, lien or encumbrance
of any kind (including any conditional sale or other title retention agreement, any lease in
the nature thereof, and any agreement to give any of the foregoing) (each being hereinafter
referred to as a “lien” or “liens”) of or upon any Operating Property or Operating Asset,
whether now owned or hereafter acquired, of the Company or any Restricted Subsidiary without
effectively providing that the Securities of the series created by the Nineteenth
Supplemental Indenture (together with, if the Company shall so determine, any other
Indebtedness of the Company ranking equally with the Securities) shall be equally and
ratably secured by a lien on such assets ranking ratably with and equal to (or at the
Company’s option prior to) such secured Indebtedness; provided that the foregoing
restriction shall not apply to:

          (a) liens on any property or assets of any corporation existing at the time such
corporation becomes a Restricted Subsidiary provided that such lien does not extend to any
other property of the Company or any of its Restricted Subsidiaries;

          (b) liens on any property or assets (including stock) existing at the time of
acquisition of such property or assets by the Company or a Restricted Subsidiary, or liens
to secure the payment of all or any part of the purchase price of such property or assets
(including stock) upon the acquisition of such property or assets by the Company or a
Restricted Subsidiary or to secure any indebtedness incurred, assumed or guaranteed by the
Company or a Restricted Subsidiary for the purpose of financing all or any part of the
purchase price of such property or, in the case of real property, construction or
improvements thereon or attaching to property substituted by the Company to obtain the
release of a lien on other property of the Company on which a lien then exists, which
indebtedness is incurred, assumed or guaranteed prior to, at the time of, or within 18
months after such acquisition (or in the case of real property, the completion of
construction (including any improvements on an existing asset) or commencement of full
operation at such property, whichever is later (which in the case of a retail store is the
opening of the store for business to the public)); provided that in

- 22 -

 

the case of any such acquisition, construction or improvement, the lien shall not apply
to any other property or assets theretofore owned by the Company or a Restricted Subsidiary;

          (c) liens on any property or assets to secure Indebtedness of a Restricted Subsidiary
to the Company or to another Restricted Subsidiary;

          (d) liens on any property or assets of a corporation existing at the time such
corporation is merged into or consolidated with the Company or a Restricted Subsidiary or at
the time of a purchase, lease or other acquisition of the assets of a corporation or firm as
an entirety or substantially as an entirety by the Company or a Restricted Subsidiary
provided that such lien does not extend to any other property of the Company or any of its
Restricted Subsidiaries;

          (e) liens on any property or assets of the Company or a Restricted Subsidiary in favor
of the United States of America or any State thereof, or any department, agency or
instrumentality or political subdivision of the United States of America or any State
thereof, or in favor of any other country, or any political subdivision thereof, to secure
partial, progress, advance or other payments pursuant to any contract or statute or to
secure any Indebtedness incurred or guaranteed for the purpose of financing all or any part
of the purchase price (or, in the case of real property, the cost of construction) of the
property or assets subject to such liens (including, but not limited to, liens incurred in
connection with pollution control, industrial revenue or similar financings);

          (f) liens existing on properties or assets of the Company or any Restricted Subsidiary
existing on the date hereof; provided that such liens secure only those obligations which
they secure on the date hereof or any extension, renewal or replacement thereof;

          (g) any extension, renewal or replacement (or successive extensions, renewals or
replacements) in whole or in part, of any lien referred to in the foregoing clauses (a)
through (f), inclusive; provided that such extension, renewal or replacement shall be
limited to all or a part of the property or assets which secured the lien so extended,
renewed or replaced (plus improvements and construction on real property);

          (h) liens imposed by law, such as mechanics’, workmen’s, repairmen’s, materialmen’s,
carriers’, warehouseman’s, vendors’, or other similar liens arising in the ordinary course
of business of the Company or a Restricted Subsidiary, or governmental (federal, state or
municipal) liens arising out of contracts for the sale of products or services by the
Company or any Restricted Subsidiary, or deposits or pledges to obtain the release of any of
the foregoing liens;

          (i) pledges, liens or deposits under worker’s compensation laws or similar legislation
and liens or judgments thereunder which are not currently dischargeable, or

- 23 -

 

in connection with bids, tenders, contracts (other than for the payment of money) or
leases to which the Company or any Restricted Subsidiary is a party, or to secure the public
or statutory obligations of the Company or any Restricted Subsidiary, or in connection with
obtaining or maintaining self-insurance or to obtain the benefits of any law, regulation or
arrangement pertaining to unemployment insurance, old age pensions, social security or
similar matters, or to secure surety, appeal or customs bonds to which the Company or any
Restricted Subsidiary is a party, or in litigation or other proceedings such as, but not
limited to, interpleader proceedings, and other similar pledges, liens or deposits made or
incurred in the ordinary course of business;

          (j) liens created by or resulting from any litigation or other proceeding which is
being contested in good faith by appropriate proceedings, including liens arising out of
judgments or awards against the Company or any Restricted Subsidiary with respect to which
the Company or such Restricted Subsidiary is in good faith prosecuting an appeal or
proceedings for review or for which the time to make an appeal has not yet expired; or final
unappealable judgment liens which are satisfied within 30 days of the date of judgment; or
liens incurred by the Company or any Restricted Subsidiary for the purpose of obtaining a
stay or discharge in the course of any litigation or other proceeding to which the Company
or such Restricted Subsidiary is a party;

          (k) liens for taxes or assessments or governmental charges or levies not yet due or
delinquent, or which can thereafter be paid without penalty, or which are being contested in
good faith by appropriate proceedings; landlord’s liens on property held under lease; and
any other liens or charges incidental to the conduct of the business of the Company or any
Restricted Subsidiary or the ownership of the property or assets of any of them which were
not incurred in connection with the borrowing of money or the obtaining of advances or
credit and which do not, in the opinion of the Company, materially impair the use of such
property or assets in the operation of the business of the Company or such Restricted
Subsidiary or the value of such property or assets for the purposes of such business; or

          (l) liens not permitted by clauses (a) through (k) above if at the time of, and after
giving effect to, the creation or assumption of any such lien, the aggregate amount of all
Indebtedness of the Company and its Restricted Subsidiaries secured by all such liens not so
permitted by clauses (a) through (k) above together with the Attributable Debt in respect of
Sale and Lease-Back Transactions permitted by paragraph (a) of Section 1010 does not exceed
10% of Consolidated Net Tangible Assets.

     Section 1010. Limitations on Sale and Lease-Back Transactions.

     After the date hereof and so long as any Securities of the series created by the
Nineteenth Supplemental Indenture are Outstanding, the Company agrees that it will not, and
will not permit any Restricted Subsidiary to, enter into any arrangement with any Person
providing for the leasing by the Company or a Restricted Subsidiary of any

- 24 -

 

Operating Property or Operating Asset (other than any such arrangement involving a
lease for a term, including renewal rights, for not more than 3 years and leases between the
Company and a Restricted Subsidiary or between Restricted Subsidiaries), whereby such
Operating Property or Operating Asset has been or is to be sold or transferred by the
Company or any Restricted Subsidiary to such Person (herein referred to as a “Sale and
Lease-Back Transaction”), unless:

          (a) the Company or such Restricted Subsidiary would, at the time of entering into a
Sale and Lease-Back transaction, be entitled to incur Indebtedness secured by a lien on the
Operating Property or Operating Asset to be leased in an amount at least equal to the
Attributable Debt in respect of such Sale and Lease-Back Transaction without equally and
ratably securing the Securities of the series created by the Nineteenth Supplemental
Indenture pursuant to Section 1009; or

          (b) the proceeds of the sale of the Operating Property or Operating Asset to be leased
are at least equal to the fair market value of such Operating Property or Operating Asset
(as determined by the chief financial officer or chief accounting officer of the Company)
and an amount in cash equal to the net proceeds from the sale of the Operating Property or
Operating Asset so leased is applied, within 180 days of the effective date of any such Sale
and Lease-Back Transaction, to the purchase or acquisition (or, in the case of Operating
Property, the construction) of Operating Property or Operating Assets or to the retirement,
repurchase, redemption or repayment (other than at maturity or pursuant to a mandatory
sinking fund or redemption provision and other than Indebtedness owned by the Company or any
Restricted Subsidiary) of Securities of the series created by the Nineteenth Supplemental
Indenture or of Funded Indebtedness of the Company ranking on a parity with or senior to the
Securities of the series created by the Nineteenth Supplemental Indenture, or in the case of
a Sale and Lease-Back Transaction by a Restricted Subsidiary, of Funded Indebtedness of such
Restricted Subsidiary; provided that in connection with any such retirement, any related
loan commitment or the like shall be reduced in an amount equal to the principal amount so
retired.

     The foregoing restriction shall not apply to, in the case of any Operating Property or
Operating Asset acquired or constructed subsequent to the date eighteen months prior to the
date of this Indenture, any Sale and Lease-Back Transaction with respect to such Operating
Asset or Operating Property (including presently owned real property upon which such
Operating Property is to be constructed) if a binding commitment is entered into with
respect to such Sale and Lease-Back Transaction within 18 months after the later of the
acquisition of the Operating Property or Operating Asset or the completion of improvements
or construction thereon or commencement of full operations at such Operating Property (which
in the case of a retail store is the opening of the store for business to the public).

     Section 1011. Change of Control.

- 25 -

 

     If a Change of Control Triggering Event occurs, unless the Company has exercised its
right to redeem the Securities, Holders of Securities will have the right to require the
Company to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in
excess thereof) of their Securities pursuant to the offer described below (the “Change of
Control Offer”). In the Change of Control Offer, the Company shall offer payment in cash
equal to 101% of the aggregate principal amount of Securities repurchased plus accrued and
unpaid interest, if any, on the Securities repurchased, to the date of purchase (the “Change
of Control Payment”). Within 30 days following any Change of Control Triggering Event, or,
at the Company’s option, prior to any Change of Control, but after the public announcement
of the Change of Control, the Company shall mail a notice to Holders of Securities
describing the transaction or transactions that constitute or may constitute the Change of
Control Triggering Event and offering to repurchase the Securities on the date specified in
the notice, which date will be no earlier than 30 days and no later than 60 days from the
date such notice is mailed (the “Change of Control Payment Date”), pursuant to the
procedures described herein and in such notice. The notice shall, if mailed prior to the
date of consummation of the Change of Control, state that the offer to purchase is
conditioned on the Change of Control Triggering Event occurring on or prior to the payment
date specified in the notice. The Company shall comply with the requirements of Rule 14e-1
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other
securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Securities as a result of a Change of
Control Triggering Event. To the extent that the provisions of any securities laws or
regulations conflict with the Change of Control provisions herein, the Company shall be
required to comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations under the Change of Control provisions herein by
virtue of such conflicts.

     On the Change of Control Payment Date, the Company shall, to the extent lawful, (i)
accept for payment all Securities or portions of Securities properly tendered pursuant to
the Change of Control Offer; (ii) deposit with the paying agent an amount equal to the
Change of Control Payment in respect of all Securities or portions of Securities properly
tendered; and (iii) deliver or cause to be delivered to the Trustee the Securities properly
accepted, together with an officers’ certificate stating the aggregate principal amount of
Securities or portions of Securities being purchased.

     “Below Investment Grade Rating Event” means the Securities are rated below an
Investment Grade Rating by any two of the three Rating Agencies (as defined below) on any
date from the date of the public notice of an arrangement that could result in a Change of
Control until the end of the 60-day period following public notice of the occurrence of the
Change of Control (which 60-day period shall be extended so long as the rating of the
Securities is under publicly announced consideration for possible downgrade below investment
grade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event
otherwise arising by virtue of a particular

- 26 -

 

reduction in rating shall not be deemed to have occurred in respect of a particular
Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for
purposes of the definition of Change of Control Triggering Event) if the Rating Agencies
making the reduction in rating to which this definition would otherwise apply do not
announce or publicly confirm or inform the Trustee in writing at the Company’s request that
the reduction was the result, in whole or in part, of any event or circumstance comprised of
or arising as a result of, or in respect of, the applicable Change of Control (whether or
not the applicable Change of Control shall have occurred at the time of the Below Investment
Grade Rating Event).

     “Change of Control” means the occurrence of any of the following: (1) the direct or
indirect sale, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of
the properties or assets of the Company and its subsidiaries taken as a whole to any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than the
Company or one of its subsidiaries; (2) the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that any “person”
(as that term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner,
directly or indirectly, of more than 50% of the then outstanding number of shares of the
Company’s voting stock; or (3) the first day on which a majority of the members of the
Company’s Board of Directors are not Continuing Directors. Notwithstanding the foregoing, a
transaction will not be deemed to involve a Change of Control if (1) the Company becomes a
wholly owned subsidiary of a holding company that has agreed to be bound by the terms of the
Securities and (2) the Holders of the voting stock of such holding company immediately
following that transaction are substantially the same as the Holders of the Company’s voting
stock immediately prior to that transaction.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control
and a Below Investment Grade Rating Event.

     “Continuing Directors” means, as of any date of determination, members of the Board of
Directors of the Company who (1) were members of such Board of Directors on the date of
original issuance of the Securities; or (2) were nominated for election or elected to such
Board of Directors with the approval of a majority of the continuing directors under clause
(1) or (2) of this definition who were members of such Board of Directors at the time of
such nomination or election (either by a specific vote or by approval of the Company’s proxy
statement in which such member was named as a nominee for election as a director, without
objection to such nomination).

     “Fitch” means Fitch, Inc.

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by S&P and Fitch, and the equivalent
investment grade credit rating from any replacement rating agency or rating agencies
selected by the Company.

- 27 -

 

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

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

     “Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if Fitch, Moody’s
or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly
available for reasons outside of the Company’s control, a “nationally recognized statistical
rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act,
selected by the Company (as certified by a Board Resolution) as a replacement agency for
Fitch, Moody’s or S&P, or any of them, as the case may be.

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

ARTICLE THIRTEEN

DEFEASANCE AND COVENANT DEFEASANCE

     Section 1301. Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may at its option by Board Resolution, at any time, elect to have either
Section 1302 or Section 1303 applied to the Outstanding Securities of this series upon
compliance with the conditions set forth below in this Article Thirteen.

     Section 1302. Defeasance and Discharge.

     Upon the Company’s exercise of the option provided in Section 1301 applicable to this
Section, the Company shall be deemed to have been discharged from its obligations with
respect to the Outstanding Securities of the series created by the Nineteenth Supplemental
Indenture on the date the conditions set forth below are satisfied (hereinafter,
“Defeasance”). For this purpose, such Defeasance means that the Company shall be deemed to
have paid and discharged the entire indebtedness represented by the Outstanding Securities
of this series and to have satisfied all its other obligations under such Securities of this
series and this Indenture insofar as such Securities of this series are concerned (and the
Trustee, at the expense of the Company, 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 Securities of this series to receive,
solely from the trust fund described in Section 1304 and as more fully set forth in such
Section, payments in respect of the principal of (and premium, if any) and interest on such
securities when such payments are due, (B) the Company’s obligations with respect to such
Securities of this series under Sections 304, 305, 306, 1002 and 1003, (C) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (D) this Article
Thirteen. Subject to

- 28 -

 

compliance with this Article Thirteen, the Company may exercise its option under this
Section 1302 notwithstanding the prior exercise of its option under Section 1303.

     Section 1303. Covenant Defeasance.

     Upon the Company’s exercise of the option provided in Section 1301 applicable to this
Section, the Company shall be released from its obligations under Section 501(4) (in respect
of the covenants in Sections 1008 through 1010), Section 801 and Sections 1008 through 1010,
the Securities of this series and the Holders of Securities of this series, on and after the
date the conditions set forth below are satisfied (hereinafter, “covenant Defeasance”). For
this purpose, such covenant Defeasance means that the Company may omit to comply with and
shall have no liability in respect of any term, condition or limitation set forth in any
such Section, whether directly or indirectly, by reason of any reference elsewhere herein to
any such Section or by reason of any reference in any such Section to any other provision
herein or in any other document, but the remainder of this Indenture and such Securities of
this series shall be unaffected thereby.

     Section 1304. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to application of either Section 1302 or Section
1303 to the Outstanding Securities of this series:

     (1) The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee satisfying the
requirements of Section 609 who shall agree to comply with the
provisions of this Article Thirteen applicable to it) as trust funds
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 Securities of this series, (A) money in
an amount, or (B) U.S. Government Obligations 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, money in an amount, or (C) a
combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants 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 each installment of interest on the Securities of this
series on the Stated Maturity of such principal or installment of
interest on the day on which such payments are due and payable in
accordance with the terms of this Indenture and of such Securities of
this series. For this purpose, “U.S. Government Obligations” means
securities that are (x) direct obligations of the

- 29 -

 

United States of America for the payment of which its full faith
and credit is pledged or (y) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United
States of America the payment of which is unconditionally guaranteed
as a full faith and credit obligation by the United States of America,
which, in either case, are not callable or redeemable at the option of
the Company thereof, and shall also include a depository receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act
of 1933, as amended) as custodian with respect to any such U.S.
Government Obligation or a specific payment of principal of or
interest on any such U.S. Government Obligation held by such custodian
for the account of the holder of such depository receipt,
provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the
holder of such depositary receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific
payment of principal of or interest on the U.S. Government Obligation
evidenced by such depositary receipt.

     (2) No Event of Default or event which with notice or lapse of
time or both would become an Event of Default shall have occurred and
be continuing on the date of such deposit or, insofar as subsections
501(6) and (7) are concerned, at any time during the period ending on
the 121st day after the date of such deposit (it being understood that
this condition shall not be deemed satisfied until the expiration of
such period).

     (3) Such Defeasance or covenant Defeasance shall not cause the
Trustee to have a conflicting interest as defined in Section 608 and
for purposes of the Trust Indenture Act with respect to any securities
of the Company.

     (4) Such Defeasance or covenant Defeasance shall not result in a
breach or violation of, or constitute a default under, this Indenture
or any other agreement or instrument to which the Company is a party
or by which it is bound.

     (5) The Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to either the Defeasance
under Section 1302 or the covenant Defeasance under Section 1303 (as
the case may be) have been complied with.

- 30 -

 

     (6) In the case of an election under Section 1302, the Company
shall have delivered to the Trustee an Opinion of Counsel stating that
(x) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling, or (y) since the date of this
Nineteenth Supplemental Indenture there has been a change in the
applicable Federal income tax law, in either case to the effect that
and based thereon such opinion shall confirm that, and in the case of
an election under Section 1303, the Company shall have delivered to
the Trustee an Opinion of Counsel stating that, the Holders of the
Outstanding Securities of this series will not recognize income, gain
or loss for Federal income tax purposes as a result of such Defeasance
or 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 Defeasance or covenant Defeasance had not
occurred.

     Section 1305. Deposited Money and U.S. Government Obligations to Be Held in Trust;
Other Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 1003, all money and U.S.
Government Obligations (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee—collectively, for purposes of this Section 1305, the “Trustee”) pursuant
to Section 1304 in respect of the Securities of this series shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities of this series
and this Indenture, to the payment, either directly or through any Paying Agent (including
the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of
such Securities of this series, of all sums due and to become due thereon in respect of
principal (and premium, if any) and interest, but such money need not be segregated from
other funds except to the extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the U.S. Government Obligations deposited pursuant to Section
1304 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 Securities
of this series.

     Anything in this Article Thirteen to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money or U.S.
Government Obligations held by it as provided in Section 1304 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited to effect an equivalent Defeasance or covenant
Defeasance.

- 31 -

 

     Section 1306. Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money in accordance with
Section 1302 or 1303 by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Securities of this series shall be
revived and reinstated as though no deposit had occurred pursuant to this Article Thirteen
until such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 1302 or 1303; provided, however, that if the Company
makes any payment of principal of (and premium, if any) or interest on any Security of this
series following the reinstatement of its obligations, the Company shall be subjugated to
the rights of the Holders of such Securities of this series to receive such payment from the
money held by the Trustee or the Paying Agent.”

Section 404. Redemption of Securities.

          With respect to Securities of this series, Section 1101 of the Indenture shall be deleted in
its entirety and the following shall be substituted therefor:

     “Section 1101. Optional Redemption.

     The Securities will be redeemable, in whole or in part, at the option of the Company at
any time at a redemption price equal to the greater of (i) 100% of the principal amount of
such Securities or (ii) as determined by a Quotation Agent, the sum of the present values of
the remaining scheduled payments of principal and interest thereon (not including any
portion of such payments of interest accrued as of the date of redemption) discounted to the
date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Adjusted Treasury Rate plus 40 basis points plus, in each case,
accrued interest thereon to the date of redemption.”

ARTICLE FIVE

GUARANTEE

Section 501. Guarantee.

          Each Guarantor hereby jointly and severally fully and unconditionally guarantees (each a
“Guarantee”) to each Holder of a Security authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, irrespective of the validity and enforceability of the
Indenture or the Securities or the obligations of the Company or any other Guarantor to the Holders
or the Trustee hereunder or thereunder, that (a) the principal of, premium, if any, and interest on
the Securities will be duly and punctually paid in full when due, whether at maturity, upon
redemption, by acceleration or otherwise, and interest on the overdue principal and (to the extent
permitted by law) interest, if any, on the Securities and all other obligations of the Company or
the Guarantor to the Holders of or the Trustee under the Indenture or the

- 32 -

 

Securities hereunder (including fees, expenses or others) (collectively, the “Obligations”)
will be promptly paid in full or performed, all in accordance with the terms of the Indenture and
the Securities; and (b) in case of any extension of time of payment or renewal of any Obligations,
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. If the Company
shall fail to pay when due, or to perform, any Obligations, for whatever reason, each Guarantor
shall be obligated to pay, or to perform or cause the performance of, the same immediately. An
Event of Default under the Indenture or the Securities shall constitute an event of default under
this Guarantee, and shall entitle the Holders of Securities to accelerate the Obligations of the
Guarantor hereunder in the same manner and to the same extent as the Obligations of the Company.

          Each Guarantor hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Securities or the Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Securities
with respect to any provisions of the Indenture or the Securities, any release of any other
Guarantor, the recovery of any judgment against the Company, any action to enforce the same,
whether or not a Guarantee is affixed to any particular Security, or any other circumstance which
might otherwise constitute a legal or equitable discharge or defense of a Guarantor.

          Each Guarantor further agrees that, as between it, on the one hand, and the Holders of
Securities and the Trustee, on the other hand, (a) the maturity of the Obligations may be
accelerated as provided in Article Five of the Indenture for the purposes of the Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the Obligations, and (b) in the event of any acceleration of such Obligations as provided in
Article Five of the Indenture, such Obligations (whether or not due and payable) shall forthwith
become due and payable by the Guarantor for the purposes of its Guarantee.

Section 502. Waiver of Demand.

          To the fullest extent permitted by applicable law, each of the Guarantors waives presentment
to, demand of payment from and protest of any of the Obligations, and also waives notice of
acceptance of its Guarantee and notice of protest for nonpayment.

Section 503. Guarantee of Payment.

          Each of the Guarantors further agrees that its Guarantee constitutes a guarantee of payment
when due and not of collection, and waives any right to require that any resort be had by the
Trustee or any Holder of the Securities to the security, if any, held for payment of the
Obligations.

- 33 -

 

Section 504. No Discharge or Diminishment of Guarantee.

          Subject to Section 510 of this Nineteenth Supplemental Indenture, the obligations of each of
the Guarantors hereunder shall not be subject to any reduction, limitation, impairment or for any
reason (other than the indefeasible payment in full in cash of the Obligations), including any
claim of waiver, release, surrender, alteration or compromise of any of the Obligations, and shall
not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by
reason of the invalidity, illegality or unenforceability of the Obligations or otherwise. Without
limiting the generality of the foregoing, the obligations of each of the Guarantors hereunder shall
not be discharged or impaired or otherwise affected by the failure of the Trustee or any Holder of
the Securities to assert any claim or demand or to enforce any remedy under the Indenture or the
Securities, any other guarantee or any other agreement, by any waiver or modification of any
provision of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Obligations, or by any other act or omission that may or might in any manner or
to any extent vary the risk of any Guarantor or that would otherwise operate as a discharge of any
Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash of all
the Obligations).

Section 505. Defenses of Company Waived.

          To the extent permitted by applicable law, each of the Guarantors waives any defense based on
or arising out of any defense of the Company or any other Guarantor or the unenforceability of the
Obligations or any part thereof from any cause, or the cessation from any cause of the liability of
the Company, other than final and indefeasible payment in full in cash of the Obligations. Each of
the Guarantors waives any defense arising out of any such election even though such election
operates to impair or to extinguish any right of reimbursement or subrogation or other right or
remedy of each of the Guarantors against the Company or any security.

Section 506. Continued Effectiveness.

          Subject to Section 510 of this Nineteenth Supplemental Indenture, each of the Guarantors
further agrees that its Guarantee hereunder shall continue to be effective or be reinstated, as the
case may be, if at any time payment, or any part thereof, of principal of or interest on any
Obligation is rescinded or must otherwise be restored by the Trustee or any Holder of the
Securities upon the bankruptcy or reorganization of the Company.

Section 507. Subrogation.

          In furtherance of the foregoing and not in limitation of any other right of each of the
Guarantors by virtue hereof, upon the failure of the Company to pay any Obligation when and as the
same shall become due, whether at maturity, by acceleration, after notice of prepayment or
otherwise, each of the Guarantors hereby promises to and will, upon receipt of written demand by
the Trustee or any Holder of the Securities, forthwith pay, or cause to be

- 34 -

 

paid, to the Holders in cash the amount of such unpaid Obligations, and thereupon the Holders
shall, assign (except to the extent that such assignment would render a Guarantor a “creditor” of
the Company within the meaning of Section 547 of Title 11 of the United States Code as now in
effect or hereafter amended or any comparable provision of any successor statute) the amount of the
Obligations owed to it and paid by such Guarantor pursuant to this Guarantee to such Guarantor,
such assignment to be pro rata to the extent the Obligations in question were discharged by
such Guarantor, or make such other disposition thereof as such Guarantor shall direct (all without
recourse to the Holders, and without any representation or warranty by the Holders). If (a) a
Guarantor shall make payment to the Holders of all or any part of the Obligations and (b) all the
Obligations and all other amounts payable under this Nineteenth Supplemental Indenture shall be
indefeasibly paid in full, the Trustee will, at such Guarantor’s request, execute and deliver to
such Guarantor appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to such Guarantor of an interest in the
Obligations resulting from such payment by such Guarantor.

Section 508. Information.

          Each of the Guarantors assumes all responsibility for being and keeping itself informed of the
Company’s financial condition and assets, and of all other circumstances bearing upon the risk of
nonpayment of the Obligations and the nature, scope and extent of the risks that each of the
Guarantors assumes and incurs hereunder, and agrees that the Trustee and the Holders of the
Securities will have no duty to advise the Guarantors of information known to it or any of them
regarding such circumstances or risks.

Section 509. Subordination.

          Upon payment by any Guarantor of any sums to the Holders, as provided above, all rights of
such Guarantor against the Company, arising as a result thereof by way of right of subrogation or
otherwise, shall in all respects be subordinated and junior in right of payment to the prior
indefeasible payment in full in cash of all the Obligations to the Trustee; provided,
however, that any right of subrogation that such Guarantor may have pursuant to this
Nineteenth Supplemental Indenture is subject to Section 507 hereof.

Section 510. Termination.

          A Guarantor shall, upon the occurrence of either of the following events, be automatically
and unconditionally released and discharged from all obligations under this Nineteenth Supplemental
Indenture and its Guarantee without any action required on the part of the Trustee or any Holder if
such release and discharge will not result in any downgrade in the rating given to the Securities
by Moody’s Investors Service and Standard and Poor’s Rating Services:

          (a) upon any sale, exchange, transfer or other disposition (by merger or otherwise) of all of
the Capital Stock of a Guarantor or all, or substantially all, of the assets of such Guarantor,
which sale or other disposition is otherwise in compliance with the terms of

- 35 -

 

the Indenture; provided, however, that such Guarantor shall not be released and discharged
from its obligations under this Nineteenth Supplemental Indenture and its Guarantee if, upon
consummation of such sale, exchange, transfer or other disposition (by merger or otherwise), such
Guarantor remains or becomes a Guarantor under any Credit Facility; or

          (b) at the request of the Company, at any time that none of the Credit Facilities are
guaranteed by any Subsidiary of the Company.

The Trustee shall deliver an appropriate instrument evidencing such release upon receipt of a
request of the Company accompanied by an Officers’ Certificate certifying as to the compliance with
this Section. Any Guarantor not so released will remain liable for the full amount of the
principal of, premium, if any, and interest on the Notes provided in this Nineteenth Supplemental
Indenture and its Guarantee.

Section 511. Guarantees of other Indebtedness.

          As long as the Securities are guaranteed by the Guarantors, the Company will cause each of its
Subsidiaries that becomes a Guarantor in respect of (i) any Indebtedness of the Company which is
outstanding on the date hereof and (ii) any Indebtedness incurred by the Company after the date
hereof (other than in respect of asset-backed securities), to include in any guarantee given by any
such Guarantor, provisions similar to those set forth in Section 510 hereof.

Section 512. Additional Guarantors.

          The Company will cause each of its Subsidiaries that becomes a Guarantor in respect of any
Indebtedness of the Company following the date hereof to execute and deliver a supplemental
indenture pursuant to which it will become a Guarantor under this Nineteenth Supplemental
Indenture, if it has not already done so or unless the Guarantor is prohibited from doing so by
applicable law or a provision of a contract to which it is a party or by which it is bound.

Section 513. Limitation of Guarantor’s Liability.

          Each Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the
intention of all such parties that the Guarantee by such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Title 11 of the United States Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal of state law. To
effectuate the foregoing intention, the Holders and such Guarantor hereby irrevocably agree that
the obligations of such Guarantor under this Nineteenth Supplemental Indenture and its Guarantee
shall be limited to the maximum amount which, after giving effect to all other contingent and fixed
liabilities of such Guarantor, and after giving effect to any collections from or payments made by
or on behalf of, any other Guarantor in respect of the obligations of such Guarantor under its
Guarantee or pursuant to its

- 36 -

 

contribution obligations under this Nineteenth Supplemental Indenture, will result in the
obligations of such Guarantor under its Guarantee not constituting such fraudulent transfer or
conveyance.

Section 514. Contribution from Other Guarantors.

          Each Guarantor that makes a payment or distribution under its Guarantee shall be entitled to a
contribution from each other Guarantor in a pro rata amount based on the net assets of each
Guarantor, determined in accordance with generally accepted accounting principles in effect in the
United States of America as of the date hereof.

Section 515. No Obligation to Take Action Against the Company.

          Neither the Trustee, any Holder nor any other Person shall have any obligation to enforce or
exhaust any rights or remedies or take any other steps under any security for the Obligations or
against the Company or any other Person or any property of the Company or any other Person before
the Trustee, such Holder or such other Person is entitled to demand payment and performance by any
or all Guarantors of their liabilities and obligations under their Guarantee.

Section 516. Dealing with the Company and Others.

          The Holders, without releasing, discharging, limiting or otherwise affecting in whole or in
part the obligations and liabilities of any Guarantor hereunder and without the consent of or
notice to any Guarantor, may:

          (a) grant time, renewals, extensions, compromises, concessions, waivers, releases, discharges
and other indulgences to the Company or any other Person;

          (b) take or abstain from taking security or collateral from the Company or from perfecting
security or collateral from the Company;

          (c) release, discharge, compromise, realize, enforce or otherwise deal with or do any act or
thing in respect of (with or without consideration) any and all collateral, mortgages or other
security given by the Company or any third party with respect to the Obligations;

          (d) accept compromises or arrangements from the Company;

          (e) apply all monies at any time received from the Company or from any security to such part
of the Obligations as the Holders may see fit or change any such application in whole or in part
from time to time as the Holders may see fit; and

          (f) otherwise deal with, or waive or modify their right to deal with, the Company and all
other Persons and any security as the Holders or the Trustee may see fit.

- 37 -

 

Section 517. Execution and Delivery of the Guarantee.

          (a) To further evidence the Guarantee set forth in this Article Five, each Guarantor hereby
agrees that a notation of such Guarantee shall be endorsed on each Security authenticated and
delivered by the Trustee and executed by either manual or facsimile signature of an officer of each
Guarantor. The corporate seal of a Guarantor may be reproduced on the executed Guarantee and the
execution thereof may be attested to by any appropriate officer of the Guarantor, but neither such
reproduction nor such attestation is or shall be required.

          (b) Each of the Guarantors hereby agrees that its Guarantee set forth in this Article Five
shall remain in full force and effect notwithstanding any failure to endorse on each Security a
notation of such Guarantee.

          (c) If an officer of a Guarantor whose signature is on this Nineteenth Supplemental Indenture
or a Guarantee no longer holds that office at the time the Trustee authenticates such Guarantee or
at any time thereafter, such Guarantor’s Guarantee of such Security shall be valid nevertheless.

          (d) The delivery of any Security by the Trustee, after the authentication thereof hereunder,
shall constitute due delivery of any Guarantee set forth in this Nineteenth Supplemental Indenture
on behalf of each Guarantor.

ARTICLE SIX

MISCELLANEOUS

Section 601. Miscellaneous.

          (a) The Trustee accepts the trusts created by the Indenture, as supplemented by this
Nineteenth Supplemental Indenture, and agrees to perform the same upon the terms and conditions of
the Indenture, as supplemented by this Nineteenth Supplemental Indenture.

          (b) The recitals contained herein shall be taken as statements of the Company, and the Trustee
assumes no responsibility for their correctness. The Trustee makes no representations as to the
validity or sufficiency of this Nineteenth Supplemental Indenture.

          (c) All capitalized terms used and not defined herein shall have the respective meanings
assigned to them in the Indenture.

          (d) Each of the Company and the Trustee makes and reaffirms as of the date of execution of
this Nineteenth Supplemental Indenture all of its respective representations, covenants and
agreements set forth in the Indenture.

- 38 -

 

          (e) All covenants and agreements in this Nineteenth Supplemental Indenture by the Company or
the Trustee and each Guarantor shall bind its respective successors and assigns, whether so
expressed or not.

          (f) In case any provisions in this Nineteenth Supplemental Indenture 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.

          (g) Nothing in this Nineteenth Supplemental Indenture, express or implied, shall give to any
Person, other than the parties hereto and their successors under the Indenture and the Holders of
the series of Securities created hereby, any benefit or any legal or equitable right, remedy or
claim under the Indenture.

          (h) If any provision hereof limits, qualifies or conflicts with a provision of the Trust
Indenture Act of 1939, as may be amended from time to time, that is required under such Act to be a
part of and govern this Nineteenth Supplemental Indenture, the latter provision shall control. If
any provision hereof modifies or excludes any provision of such Act that may be so modified or
excluded, the latter provision shall be deemed to apply to this Nineteenth Supplemental Indenture
as so modified or excluded, as the case may be.

          (i) This Nineteenth Supplemental Indenture shall be governed by and construed in accordance
with the laws of the State of New York.

          (j) All amendments to the Indenture made hereby shall have effect only with respect to the
series of Securities created hereby.

          (k) All provisions of this Nineteenth Supplemental Indenture shall be deemed to be
incorporated in, and made a part of, the Indenture; and the Indenture, as supplemented by this
Nineteenth Supplemental Indenture, shall be read, taken and construed as one and the same
instrument.

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

- 39 -

 

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

	 	 	 	 	 
	 	THE KROGER CO.

Each of the Guarantors Listed on Schedule I

hereto, as Guarantor of the Securities

 	 
	 	By:  	/s/ Paul W. Heldman
 	 
	 	 	Name:  	Paul W. Heldman 	 
	 	 	Title:  	President/Vice President 	 
	 
	 	QUEEN CITY ASSURANCE, INC.,

as Guarantor of the Securities

RJD ASSURANCE, INC.,

as Guarantor of the Securities

VINE COURT ASSURANCE INCORPORATED,

as Guarantor of the Securities

 	 
	 	By:  	/s/ Bruce M. Gack
 	 
	 	 	Name:  	Bruce M. Gack 	 
	 	 	Title:  	Senior Vice President/Vice President 	 
	 
	 	ROCKET NEWCO, INC.,

as Guarantor of the Securities

HENPIL, INC.,

as Guarantor of the Securities

 	 
	 	By:  	/s/ Kim Storch
 	 
	 	 	Name:  	Kim Storch 	 
	 	 	Title:  	Vice President 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	/s/ William E. Sicking
 	 
	 	 	Name:  	William E. Sicking 	 
	 	 	Title:  	Vice President & Trust Officer 	 
	 

	 	 	 	 	 
	 	

Attest:

 	 
	 	     /s/ Jack C. Hannah
 	 
	 	Jack C. Hannah 	 
	 	Assistant Vice President & Trust Officer 	 

- 40 -

 

	 	 	 	 	 

SCHEDULE I

Guarantors

	 	 	 
	Name of Guarantor	 	State of Organization
	Alpha Beta Company

	 	California
	Bay Area Warehouse Stores, Inc.

	 	California
	Bell Markets, Inc.

	 	California
	Cala Co.

	 	Delaware
	Cala Foods, Inc.

	 	California
	CB&S Advertising Agency, Inc.

	 	Oregon
	Crawford Stores, Inc.

	 	California
	Dillon Companies, Inc.

	 	Kansas
	Dillon Real Estate Co., Inc.

	 	Kansas
	Distribution Trucking Company

	 	Oregon
	F4L L.P.

	 	Ohio
	FM, Inc.

	 	Utah
	FMJ, Inc.

	 	Delaware
	Food 4 Less GM, Inc.

	 	California
	Food 4 Less Holdings, Inc.

	 	Delaware
	Food 4 Less Merchandising, Inc.

	 	California
	Food 4 Less of California, Inc.

	 	California
	Food 4 Less of Southern California, Inc.

	 	Delaware
	Fred Meyer, Inc.

	 	Delaware
	Fred Meyer Jewelers, Inc.

	 	California
	Fred Meyer Stores, Inc.

	 	Ohio
	Hughes Markets, Inc.

	 	California
	Hughes Realty, Inc.

	 	California
	Inter-American Foods, Inc.

	 	Ohio
	Junior Food Stores of West Florida, Inc.

	 	Florida
	J.V. Distributing, Inc.

	 	Michigan
	KRGP Inc.

	 	Ohio
	KRLP Inc.

	 	Ohio
	The Kroger Co. of Michigan

	 	Michigan
	Kroger Dedicated Logistics Co.

	 	Ohio
	Kroger Group Cooperative, Inc.

	 	Ohio
	Kroger Limited Partnership I

	 	Ohio
	Kroger Limited Partnership II

	 	Ohio
	Kroger Texas L.P.

	 	Ohio
	Kwik Shop, Inc.

	 	Kansas
	Mini Mart, Inc.

	 	Wyoming
	Peyton’s-Southeastern, Inc.

	 	Tennessee
	Quik Stop Markets, Inc.

	 	California

- 41 -

 

	 	 	 
	Name of Guarantor	 	State of Organization
	Ralphs Grocery Company

	 	Ohio
	Second Story, Inc.

	 	Washington
	Smith’s Beverage of Wyoming, Inc.

	 	Wyoming
	Smith’s Food & Drug Centers, Inc.

	 	Ohio
	THGP Co., Inc.

	 	Pennsylvania
	THLP Co., Inc.

	 	Pennsylvania
	Topvalco, Inc.

	 	Ohio
	Turkey Hill, L.P.

	 	Pennsylvania

- 42 -

 

	 	 	 	 	 	 	 
	STATE OF OHIO

	 	)	 	 	 	 
	 

	 	)	 	ss.:	 	 
	COUNTY OF HAMILTON

	)	 	 	 	 

          On the 27th day of March, 2008, before me personally came Paul W. Heldman, to me
known, who, being by me duly sworn, did depose and say that he is Executive Vice President of The
Kroger Co., and President/Vice President of each of the Guarantors Listed on Schedule I hereto,
corporations described in and which executed the foregoing instrument; that he knows the seals of
said corporations; that the seals affixed to said instrument are such corporate seals; that they
were so affixed by authority of the Board of Directors of such corporations, and that he signed his
name thereto by like authority.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ Dorothy D. Roberts
	 	 
	 

	 	 	 	 	 	 	 	 
	STATE OF OHIO

	 	)	 	 	 	 	 	 
	 

	 	)	 	ss.:	 	 	 	 
	COUNTY OF HAMILTON

	)	 	 	 	 	 	 

          On the 27th day of March, 2008, before me personally came Bruce M. Gack, to me
known, who, being by me duly sworn, did depose and say that he is Senior Vice President/Vice
President of Queen City Assurance, Inc., RJD Assurance, Inc. and Vine Court Assurance Incorporated,
corporations described in and which executed the foregoing instrument; that he knows the seal of
said corporation; that the seal affixed to said instrument is such corporate seal; that it was so
affixed by authority of the Boards of Directors of said corporation, and that he signed his name
thereto by like authority.

	 	 	 	 	 
	 

	 	/s/ Dorothy D. Roberts
	 	 
	 

	 	 	 	 

- i -

 

	 	 	 	 	 	 	 
	STATE OF TEXAS

	 	)	 	 	 	 
	 

	 	)	 	ss.:	 	 
	COUNTY OF MONTGOMERY

	)	 	 	 	 

          On the 27th day of March, 2008, before me personally came Kim Storch to me known,
who, being by me duly sworn, did depose and say that she is Vice President of Rocket Newco, Inc.
and Henpil, Inc., corporations described in and which executed the foregoing instrument; that she
knows the seal of said corporation; that the seal affixed to said instrument is such corporate
seal; that it was so affixed by authority of the Boards of Directors of said corporation, and that
she signed her name thereto by like authority.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ Barbara Edwards
	 	 
	 

	 	 	 	 	 	 	 	 
	STATE OF OHIO

	 	)	 	 	 	 	 	 
	 

	 	)	 	ss.:	 	 	 	 
	COUNTY OF HAMILTON

	)	 	 	 	 	 	 

          On the 27th day of March, 2008, before me personally came William E. Sicking, to me
known, who, being by me duly sworn, did depose and say that he is a Vice President of U.S. Bank
National Association, one of the corporations described in and which executed the foregoing
instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.

	 	 	 	 	 
	 

	 	/s/ Dorothy D. Roberts
	 	 
	 

	 	 	 	 

- ii -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]