Document:

EX-10.2

 

Exhibit 10.2

STOCK PURCHASE AGREEMENT

Dated as of August 31, 2007

By and Among

GIBRALTAR INDUSTRIES, INC.

as Purchaser

FLORENCE CORPORATION

as Company

and

THE SELLERS SPECIFIED HEREIN

 

 

TABLE OF CONTENTS

[Table of Contents will be revised when

final draft is prepared for circulation.]

	 	 	 	 	 	 	 
	1.
	 	DEFINITIONS; INTERPRETATION	 	 	1	 
	1.1
	 	Definitions	 	 	1	 
	1.2
	 	Interpretation	 	 	10	 
	1.3
	 	Table of Contents and Headings	 	 	10	 
	 
	 	 	 	 	 	 
	2.
	 	SALE AND PURCHASE OF SHARES	 	 	10	 
	2.1
	 	Sale and Purchase of Shares	 	 	10	 
	2.2
	 	Amount of Purchase Price	 	 	11	 
	[2.3
	 	Adjustment of Purchase Price	 	 	11	 
	2.4
	 	Payment of Purchase Price	 	 	12	 
	 
	 	 	 	 	 	 
	3.
	 	CLOSING AND TERMINATION	 	 	14	 
	3.1
	 	Closing Date	 	 	14	 
	3.2
	 	Termination Agreement	 	 	14	 
	3.3
	 	Procedure Upon Termination	 	 	14	 
	3.4
	 	Effect of Termination	 	 	15	 
	 
	 	 	 	 	 	 
	4.
	 	REPRESENTATIONS AND WARRANTIES OF COMPANY	 	 	15	 
	4.1
	 	Organization and Good Standing	 	 	15	 
	4.2
	 	Authorization of Agreement	 	 	15	 
	4.3
	 	Capitalization	 	 	16	 
	4.4
	 	Subsidiaries	 	 	16	 
	4.5
	 	Conflicts; Consents of Third Parties	 	 	17	 
	4.6
	 	Ownership and Transfer of Shares	 	 	18	 
	4.7
	 	Financial Statements; Reference Statement	 	 	18	 
	4.8
	 	No Undisclosed Liabilities	 	 	18	 
	4.9.
	 	Absence of Certain Developments	 	 	18	 
	4.10
	 	Taxes	 	 	19	 
	4.11
	 	Real Property	 	 	19	 
	4.12
	 	Tangible Personal Property	 	 	20	 
	4.13
	 	Intellectual Property	 	 	20	 
	4.14
	 	Material Contracts	 	 	22	 
	4.15
	 	Employee Benefits Plans	 	 	23	 
	4.16
	 	Employees and Labor	 	 	24	 
	4.17
	 	Litigation	 	 	25	 
	4.18
	 	Compliance with Laws; Permits	 	 	25	 
	4.19
	 	Environmental Matters	 	 	25	 
	4.20
	 	Insurance	 	 	26	 
	4.21
	 	Inventories; Receivables; Payables	 	 	26	 
	4.22
	 	Major Customers and Vendors	 	 	26	 

i

 

	 	 	 	 	 	 	 
	4.23
	 	Corporate Records	 	 	27	 
	4.24
	 	Financial Advisors	 	 	27	 
	4.25
	 	Product Warranties	 	 	27	 
	4.26
	 	Bank Accounts; Lockboxes	 	 	27	 
	4.27
	 	No Misrepresentation	 	 	27	 
	 
	 	 	 	 	 	 
	5.
	 	REPRESENTATIONS AND WARRANTIES OF PURCHASER	 	 	27	 
	5.1
	 	Organization and Good Standing	 	 	28	 
	5.2
	 	Authorization of Agreement	 	 	28	 
	5.3
	 	Conflicts; Consents of Third Parties	 	 	28	 
	5.4
	 	Litigation	 	 	28	 
	5.5
	 	Investment Intention	 	 	29	 
	5.6
	 	Financial Advisors	 	 	29	 
	5.7
	 	Financial Resources	 	 	29	 
	 
	 	 	 	 	 	 
	6.
	 	COVENANTS	 	 	29	 
	6.1
	 	Access to Information	 	 	29	 
	6.2
	 	Conduct of Business Pending Closing	 	 	29	 
	6.3
	 	No Solicitation	 	 	31	 
	6.4
	 	Consents	 	 	31	 
	6.5
	 	Filings with Governmental Bodies	 	 	31	 
	6.6
	 	Discharge of Liens	 	 	32	 
	6.7
	 	Schedule 338(h)(10) Election	 	 	32	 
	6.8
	 	Tax Benefit Payment	 	 	34	 
	6.9
	 	Other Actions	 	 	34	 
	6.10
	 	Preservation of Records	 	 	35	 
	6.11
	 	Publicity	 	 	35	 
	6.12
	 	Environmental Matters	 	 	35	 
	6.13
	 	Updated Schedules	 	 	35	 
	 
	 	 	 	 	 	 
	7.
	 	CONDITIONS TO CLOSING	 	 	35	 
	7.1
	 	Conditions Precedent to Obligations of the Purchaser	 	 	36	 
	7.2
	 	Conditions Precedent to Obligations of Sellers	 	 	37	 
	 
	 	 	 	 	 	 
	8.
	 	DOCUMENTS TO BE DELIVERED	 	 	37	 
	8.1
	 	Documents to Be Delivered by Sellers	 	 	37	 
	8.2
	 	Documents to Be Delivered by the Purchaser	 	 	38	 
	 
	 	 	 	 	 	 
	9.
	 	INDEMNIFICATION	 	 	39	 
	9.1
	 	Indemnification	 	 	39	 
	9.2
	 	Limitations on Indemnification	 	 	41	 
	9.3
	 	Indemnification Procedures	 	 	42	 
	 
	 	 	 	 	 	 
	10.
	 	TAX MATTERS	 	 	44	 
	10.1
	 	Preparation of Tax Returns; Payment of Taxes	 	 	44	 

ii

 

	 	 	 	 	 	 	 
	10.2
	 	Cooperation with Respect to Tax Returns	 	 	44	 
	10.3
	 	Tax Audits	 	 	45	 
	10.4
	 	Refund Claims	 	 	45	 
	10.5
	 	Disputes	 	 	45	 
	 
	 	 	 	 	 	 
	11.
	 	MISCELLANEOUS	 	 	45	 
	11.1
	 	Expenses	 	 	45	 
	11.2
	 	Further Assurances	 	 	46	 
	11.3
	 	Submission to Jurisdiction; Consent to Service of Process	 	 	46	 
	11.4
	 	Entire Agreement; Amendments and Waivers	 	 	46	 
	11.5
	 	Governing Law	 	 	46	 
	11.6
	 	Notices	 	 	46	 
	11.7
	 	Severability	 	 	49	 
	11.8
	 	Binding Effect; Assignment	 	 	49	 
	11.9
	 	Sellers’ Representative	 	 	49	 

Annexes

Annex 1 — The Sellers

Annex 2 — Agreed Principles

Annex 3 — Tax Timetable

Exhibits

Exhibit 1 — Escrow Agreement

Exhibit 2 — Noncompetition Agreement

Disclosure Schedule

iii

 

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT, dated as of

August 31, 2007, is by and among Gibraltar
Industries, Inc., a Delaware corporation (the “Purchaser”), Florence Corporation, an Illinois
corporation (the “Company”), and the shareholders of the Company listed on the signature pages
hereof and in Annex 1 (each, a “Seller” and, collectively, the “Sellers”) and David P.
Dailey, an individual residing in Illinois.

WITNESSETH:

     WHEREAS, the Sellers own an aggregate of 2,440

shares of the Company’s common stock, $10.00
par value per share (collectively, the “Shares”), which constitute all of the issued and
outstanding shares of capital stock of the Company; and

     WHEREAS, the Sellers desire to sell to the Purchaser,

and the Purchaser desires to purchase
from the Sellers, the Shares for the purchase price and upon the terms and conditions set forth
herein.

     NOW, THEREFORE, in consideration of the premises

and the mutual covenants and agreements
hereinafter contained, the parties hereby agree as follows:

	1.	 	DEFINITIONS; INTERPRETATION

     1.1 Definitions. In this

Agreement, unless the context otherwise requires, all of the
terms defined in the preamble or the recitals hereto shall have the same meanings herein and the
following terms shall have the following meanings:

	 	 	 	 	 
	“Affiliate”

	 	with respect to any Person, any other Person that,
directly or
indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such Person,
and the term “control” (including the terms “controlled by”
and “under common control with”) means the possession,
directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person,
whether through owners of voting securities, by contract or
otherwise.

	 
	 	 	 	 
	“Agreed Principles”

	 	the accounting principles set forth on Annex 2.

	 
	 	 	 	 
	“Agreement”

	 	this Stock Purchase Agreement, as amended, modified and
supplemented from time to time.

	 
	 	 	 	 
	“Business Day”

	 	any day of the year on which national banking institutions
in
the City of Chicago, Illinois are open to the public for
conducting business and are not required or authorized by law
or other governmental action to close.

	 
	 	 	 	 
	“Capital Lease Obligations”

	 	any lease of any asset that, in accordance with GAAP,
would be
required to be capitalized on the balance sheet of the lessee.

	 
	 	 	 	 
	“CERCLA”

	 	the Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (42 U.S.C. § 9601 et seq.), as amended

1

 

	 	 	 	 	 
	 

	 	through the Closing Date, and regulations promulgated
thereunder.

	 
	 	 	 	 
	“Claim”

	 	the term defined in Section 9.3.1.

	 
	 	 	 	 
	“Closing Date”

	 	the term defined in Section 3.1.

	 
	 	 	 	 
	“Closing Net Working Capital”

	 	the term defined in Section 2.3.2.

	 
	 	 	 	 
	“Closing Statement”

	 	the term defined in Section 2.3.2.

	 
	 	 	 	 
	“Code”

	 	the Internal Revenue Code of 1986, as amended.

	 
	 	 	 	 
	“Common Stock”

	 	the term defined in Section 4.3.1.

	 
	 	 	 	 
	“Company Property”

	 	the term defined in Section 4.11.

	 
	 	 	 	 
	“Contract”

	 	any agreement, contract, indenture, note, bond, loan,
instrument, lease, commitment or other arrangement or
agreement.

	 
	 	 	 	 
	“Covered Breach”

	 	the term defined in Section 9.2.3.

	 
	 	 	 	 
	“Current Company Properties”

	 	the term defined in Section 4.19.2.

	 
	 	 	 	 
	“Debt”

	 	the following of the Company and the Subsidiary (without
duplication): (1) all consolidated indebtedness created,
assumed or incurred in any manner, representing money borrowed
(including by the issuance of debt securities); (2) all
obligations for the deferred purchase price of property or
services (other than trade accounts payable arising in the
ordinary course of business); (3) all obligations secured by
any Lien, whether or not the Company or the Subsidiary has
assumed or become liable for the payment of such indebtedness;
(4) all Capital Lease Obligations; and (5) all obligations on
or with respect to letters of credit, banker’s acceptances and
other evidences of indebtedness representing extensions of
credit whether or not representing obligations for borrowed
money provided, however, that the loans to the Corporation
from the City of Manhattan, Kansas and from the Department of
Economic Development of the State of Kansas, in an aggregate
outstanding principal amount of $96,000 shall not be included
in the term “Debt”.

	 
	 	 	 	 
	“Deductible”

	 	the term defined in Section 9.2.3.

	 
	 	 	 	 
	“Disclosure Schedule”

	 	the Schedules delivered to the Purchaser concurrent with
the
execution of this Agreement pursuant to Section 4.

	 
	 	 	 	 
	“Documents”

	 	all files, documents, instruments, papers, books, reports,
records, tapes, microfilms, photographs, letters, budgets,
forecasts, ledgers, journals, title policies, customer lists,
regulatory filings, operating data and plans, technical
documentation (design

2

 

	 	 	 	 	 
	 

	 	specifications, functional requirements,
operating instructions, logic manuals, flow charts, etc.),
user documentation (installation guides, user manuals,
training materials, release notes, working papers, etc.),
marketing documentation (sales brochures, flyers, pamphlets,
web pages, etc.), and other similar materials related to the
business of the Company in each case whether or not in
electronic form.

	 
	 	 	 	 
	“Effective Time”

	 	the term defined in Section 2.1.

	 
	 	 	 	 
	“Employee Benefit Plans”

	 	the term defined in Section 4.15.1.

	 
	 	 	 	 
	“Environmental Costs and
Liabilities”

	 	with respect to any Person, all liabilities, obligations,
responsibilities, Remedial Actions, losses, damages, punitive
damages, consequential damages, treble damages, costs and
expenses (including all reasonable fees, disbursements and
expenses of counsel, experts and consultants and costs of
investigation and feasibility studies), fines, penalties,
sanctions and interest incurred to the extent based upon,
related to, or arising under or pursuant to any Environmental
Law, Environmental Permit, order or agreement with any
Governmental Body, which relates to any Environmental Law or a
Release or threatened Release of Hazardous Materials.

	 
	 	 	 	 
	“Environmental Law”

	 	any federal, state or local statute, regulation or
ordinance
of any Governmental Body now in effect that is applicable to
the Company and which relates to pollution or protection of
human health or the environment, including any law relating to
emissions, discharges, Releases, threatened Releases of
pollutants, contaminants or Hazardous Materials or wastes into
ambient air, surface water, groundwater or land; provided,
however, that OSHA shall not be deemed or considered an
Environmental Law.

	 
	 	 	 	 
	“ERISA”

	 	the term defined in Section 4.15.1.

	 
	 	 	 	 
	“ERISA Affiliate”

	 	the term defined in Section 4.15.2.

	 
	 	 	 	 
	“Escrow Account”

	 	the account, established and maintained by the Escrow Agent

	 

	 	for the purpose of temporarily holding a portion of the
Purchase Price and distributing the same pursuant to the terms
of the Escrow Agreement.

	 
	 	 	 	 
	“Escrow Agent”

	 	LaSalle Bank, or any successor thereto under the Escrow
Agreement.

	 
	 	 	 	 
	“Escrow Agreement”

	 	the Escrow Agreement, dated as of the Closing Date, between
the Purchaser, the Sellers’ Representative, the PR Holder and
the Escrow Agent, substantially in the form of Exhibit 1, as
amended, modified and supplemented from time to time.

3

 

	 	 	 	 	 
	“Estimated Net Working
Capital”

	 	the term defined in Section 2.3.1.

	 
	 	 	 	 
	“FTC”

	 	the term defined in Section 6.5.

	 
	 	 	 	 
	“Final Net Working Capital”

	 	the term defined in Section 2.3.6.

	 
	 	 	 	 
	“Financial Statements”

	 	the term defined in Section 4.7.

	 
	 	 	 	 
	“FIRPTA Affidavit”

	 	the term defined in Section 7.1 (10).

	 
	 	 	 	 
	“GAAP”

	 	generally accepted United States accounting principles as
of
the date hereof applied on a basis consistent with the basis
on which the Financial Statements were prepared.

	 
	 	 	 	 
	“Governmental Body”

	 	any government or governmental or regulatory body thereof,
or
political subdivision thereof, whether federal, state, or
local, or any agency, instrumentality or authority thereof, or
any court or arbitrator (public or private).

	 
	 	 	 	 
	“Harris Bank

	 	Harris Trust and Savings Bank, an Illinois banking
corporation.

	 
	 	 	 	 
	“Hazardous Material”

	 	any (i) “hazardous waste” as defined in
the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et
seq.), as amended through the Closing Date, and regulations
promulgated thereunder; (ii) any “hazardous substance” as
defined in CERCLA; and (iii) petroleum.
	 
	 	 	 	 
	“Hazardous Materials
Contamination”

	 	contamination of the environment, including soil, groundwater or air, by Hazardous Materials that would give rise to
liability under applicable Environmental Law.

	 
	 	 	 	 
	“Historical Properties”

	 	the term defined in Section 4.19.

	 
	 	 	 	 
	“HSR Act”

	 	the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as
amended.

	 
	 	 	 	 
	“Indemnified Losses”

	 	the term defined in Section 9.1.1.

	 
	 	 	 	 
	“Indemnified Party”

	 	the term defined in Section 9.3.1.

	 
	 	 	 	 
	“Indemnifying Party”

	 	in connection with the rights of the Purchaser Affiliates
to
indemnification described in Article 9, the Indemnifying
Sellers and, in connection with the rights of the Seller
Affiliates to indemnification described in Article 9, the
Purchaser.

	 
	 	 	 	 
	“Indemnifying Seller”

	 	each Seller and the PR Holder.

	 
	 	 	 	 
	“Indenture”

	 	the Trust Indenture, dated as of April 1, 2003, as
amended,
modified and supplemented from time to time, from Manhattan to
U.S. Bank National Association.

4

 

	 	 	 	 	 
	“Independent Accountant”

	 	the term defined in Section 2.3.4.

	 
	 	 	 	 
	“Intellectual Property”

	 	all Patents, copyrights, technology, know-how, processes,
trade secrets, inventions, proprietary data, formulae,
research and development data and computer software programs;
all trademarks, trade names, service marks and service names;
all registrations, applications, recordings, licenses and
common-law rights relating thereto, including the right to
receive all proceeds and damages therefrom, and all rights to
obtain renewals, continuations, divisions or other extensions
of legal protections pertaining thereto that are material to
the business and operations of the Company or the Subsidiary
and used or held for use in the business and operations of the
Company or the Subsidiary.

	 
	 	 	 	 
	“Intellectual Property
Licenses”

	 	the term defined in Section 4.13.3.

	 
	 	 	 	 
	“IRB Financing”

	 	$8,000,000 Variable Rate Demand Industrial Development
Revenue
Bonds (Florence Corporation of Kansas Project) Series 2003, as
amended, modified and supplemented from time to time, issued
by Manhattan under the Indenture and payable from and secured
by: (1) the revenues and receipts derived from the Lease
Agreement and (2) payments to be made under the Letter of
Credit.

	 
	 	 	 	 
	“IRS”

	 	the United States Internal Revenue Service.

	 
	 	 	 	 
	“knowledge of the Company” or
“to the Company’s knowledge”

	 	the actual knowledge of: Lloyd Schooley, David Dailey,
Michael Powles, John Altstadt, Frank Vecchione, Kerri Winter
and Stacy Kohlmeier.

	 
	 	 	 	 
	“knowledge of the Purchaser”

	 	the actual knowledge of Henning Kornbrekke, David W. Kay,
Timothy J. Heasley, Paul M. Murray.

	 
	 	 	 	 
	“knowledge of the Sellers” or
“to the Sellers’ knowledge”

	 	the actual knowledge of the Sellers.

	 
	 	 	 	 
	“Law”

	 	any federal, state, or local law, statute, code, ordinance,
rule, regulation or other requirement of any Governmental
Body.

	 
	 	 	 	 
	“Lease Agreement”

	 	the Lease Agreement, dated as of April 1, 2003, as
amended,
modified and supplemented from time to time, between Manhattan
and the Subsidiary.

	 
	 	 	 	 
	“Legal Proceeding”

	 	any judicial, administrative or arbitral actions, suits,
proceedings (public or private), claims or governmental
proceedings.

	 
	 	 	 	 
	“Letter of Credit”

	 	Letter of Credit Number HACH2093960S (initially issued as
Number SPL90010434), dated April 24, 2003, as amended,
modified and supplemented from time to time, issued by Harris
Bank pursuant to a Reimbursement Agreement, dated as of April
1, 2003, as amended, modified and supplemented from time to

5

 

	 	 	 	 	 
	“Lien”

	 	time, between Harris Bank and the Subsidiary.
	 
	 	 	 	 
	 
	 	
any lien, encumbrance, pledge, mortgage, deed of trust,
security interest, claim, lease, charge, option, right of
first refusal, easement, servitude, or transfer restriction
under any shareholder or similar agreement.

	 
	 	 	 	 
	“Manhattan”

	 	the City of Manhattan, Kansas.

	 
	 	 	 	 
	“Material Adverse Change”

	 	any fact, event, change, circumstance, or occurrence which
has
resulted in or would reasonably be expected to result in a
Material Adverse Effect.

	 
	 	 	 	 
	“Material Adverse Effect”

	 	a material adverse effect on: (i) the business,
assets,
properties, results of operations or condition (financial or
otherwise) of the Company and the Subsidiary taken as a whole;
or (ii) the ability of the Sellers to consummate the
transactions contemplated by this Agreement; provided,
however, that, notwithstanding the foregoing, any changes,
circumstance or effects resulting from or relating to changes
or developments in the economy, financial markets, commodity
markets, or in the political climate generally shall not be
deemed to constitute a Material Adverse Effect.

	 
	 	 	 	 
	“Material Contracts”

	 	the term defined in Section 4.14.

	 
	 	 	 	 
	“Net Working Capital”

	 	on any day, the consolidated current assets of the Company
and
Subsidiary (excluding cash) less the consolidated current
liabilities of the Company and Subsidiary (excluding Debt), as
determined on such day in accordance with the Agreed
Principles.

	 
	 	 	 	 
	“Noncompetition Agreement”

	 	with respect to each of Lloyd Schooley, Darlene Schooley,
Deborah Schooley, David Schooley, Douglas Schooley, Darren
Schooley and Michael Powles, the Noncompetition Agreement,
substantially in the form of Exhibit 2, in favor of the
Purchaser and the Company.

	 
	 	 	 	 
	“Off-the-Shelf Software”

	 	the term defined in Section 4.13.1.

	 
	 	 	 	 
	“Order”

	 	any order, injunction, judgment, decree, ruling, writ,
assessment or arbitration award of any Governmental Body.

	 
	 	 	 	 
	“Ordinary Course of Business”

	 	the ordinary and usual course of day to day operations of
the
business as conducted prior to the Closing consistent with
past practices.

	 
	 	 	 	 
	“Organizational Documents”

	 	the term defined in Section 4.5.1

	 
	 	 	 	 
	“OSHA”

	 	the Occupational Safety and Health Act (29 U.S.C. §
651 et
seq.), as amended through the Closing Date, and regulations
promulgated thereunder.

6

 

	 	 	 	 	 
	“Permits”

	 	any approvals, authorizations, consents, licenses, permits
or
certificates.

	 
	 	 	 	 
	“Permitted Exceptions”

	 	(i) all defects, exceptions, restrictions, easements,
rights
of way and encumbrances disclosed in policies of title
insurance; (ii) statutory liens for current taxes, assessments
or other governmental charges not yet delinquent or the amount
or validity of which is being contested in good faith by
appropriate proceedings; (iii) mechanics’, carriers’,
workers’, repairers’ and similar Liens arising or incurred in
the Ordinary Course of Business that are not material to the
business, operations and financial condition of the property
so encumbered or the Company; (iv) zoning, entitlement and
other land use regulations of any Governmental Body provided
that the business and operations of the Company and the
Subsidiary at any real property subject to any such zoning,
land use or entitlement regulations complies with such zoning,
land use or entitlement regulations in all material respects;
(v) all Liens contemplated by the IRB Financing; and (vi) such
other imperfections in title, charges, easements, restrictions
and encumbrances which do not materially detract from the
value of or materially interfere with the present use of any
Company Property subject thereto or affected thereby.

	 
	 	 	 	 
	“Person”

	 	any individual, corporation, limited liability company,
partnership, firm, joint venture, association, joint-stock
company, trust, unincorporated organization, Governmental Body
or other entity.

	 
	 	 	 	 
	“Personal Property Lease”

	 	the term defined in Section 4.12.1.

	 
	 	 	 	 
	“Phantom Stock Plan”

	 	each of the following: (1) the Phantom Stock Plan
between the
Company and John Altstadt, effective December 25, 2001; (2)
the Phantom Stock Plan between the Company and Michael Powles
effective December 25, 2001; (3) the Phantom Rights Agreement
between the Company and David Dailey effective February 8,
2005; and (4) the Phantom Stock Plan between the Company and
Frank Vecchione effective December 25, 2001 (collectively,
the “Phantom Stock Plans”).

	 
	 	 	 	 
	“PR Holder”

	 	David Dailey, as holder of phantom rights under his Phantom
Stock Plan.

	 
	 	 	 	 
	“Pro Rata”

	 	with respect to this Agreement only: (1) in respect
of each
Seller (and such Seller in relation to all of the Sellers),
the number of Shares owned by such Seller as a percentage of
the total number of Shares; and (2) in respect of each
Indemnifying Seller (and such Indemnifying Seller in relation
to all of the Indemnifying Sellers): for the PR Holder, 15%,
and for each of the Indemnifying Sellers that are Sellers,
such Sellers’ Pro Rata

7

 

	 	 	 	 	 
	 

	 	share of the remaining 85%.

	 
	 	 	 	 
	“Products”

	 	all cluster box units, 4B and private horizontal units, 4C
mailbox suites, vertical mailboxes, single tenant mailboxes,
parcel lockers, key keepers, collection boxes, mail/book drop
boxes, directories, mail-shelters and chimes manufactured by
the Company and its Subsidiary.

	 
	 	 	 	 
	“PSP Holder”

	 	each of John Altstadt, Michael Powles, Frank Vecchione and
David Dailey, as recipients under the respective Phantom Stock
Plans (collectively, the “PSP Holders”).

	 
	 	 	 	 
	“Purchase Price”

	 	the term defined in Section 2.2.

	 
	 	 	 	 
	“Purchaser”

	 	Gibraltar Industries, Inc., a Delaware corporation.

	 
	 	 	 	 
	“Purchaser Affiliates”

	 	the term defined in Section 9.1.1.

	 
	 	 	 	 
	“Purchaser’s Amount”

	 	the term defined in Section 6.7.

	 
	 	 	 	 
	“Real Property Lease”

	 	the term defined in Section 4.11.

	 
	 	 	 	 
	“Release”

	 	any release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, or dumping into the
environment, but excludes: (i) emissions from the engine
exhaust of a motor vehicle, rolling stock, aircraft, vessel or
pipeline pumping station engine, and (ii) the normal
application of household chemicals such as pesticides,
herbicides and fertilizers.

	 
	 	 	 	 
	“Remedial Action”

	 	all actions to: (i) clean up, remove, treat or in any
other
way address any Hazardous Material; (ii) prevent the Release
of any Hazardous Material so it does not endanger or threaten
to endanger public health or welfare or the indoor or outdoor
environment; (iii) perform pre-remedial studies and
investigations or post-remedial monitoring and care; or (iv)
to correct a condition of noncompliance with Environmental
Laws.

	 
	 	 	 	 
	“Section 338(h)(10)
Election”

	 	the term defined in Section 6.7.

	 
	 	 	 	 
	“Securities Act”

	 	the term defined in Section 5.5.

	 
	 	 	 	 
	“Seller”

	 	each of the shareholders of the Company listed on the
signature pages hereof and in Annex 1 hereto (collectively,
the “Sellers”); provided, however, that, for purposes of any
provision of this Agreement that applies to a Seller by reason
of its status as a taxpayer (including without limitation
Sections 6.7, 6.8, 9.2.1, 10.1 and 10.2.2), the term “Seller”
shall include the grantor, the beneficiaries or any other
deemed owner of such Seller that is a trust.

	 
	 	 	 	 
	“Seller Affiliates”

	 	the Sellers, the PSP Holders and their respective
Affiliates,

8

 

	 	 	 	 	 
	 

	 	agents, successors and assigns.

	 
	 	 	 	 
	“Sellers’
Representative”

	 	the term defined in Section 11.10.

	 
	 	 	 	 
	“Shareholders Agreement”

	 	the Amended and Restated Stock Purchase Agreement, dated
December 15, 2003, among the Sellers, the beneficiaries of the
Sellers and the Company.

	 
	 	 	 	 
	“Subsidiary”

	 	Florence Corporation of Kansas, a Kansas corporation.

	 
	 	 	 	 
	“Target Net Working Capital”
	 	$13,800,000.	 
	 
	 	 	 	 
	“Tax Benefit”

	 	37.6 % of the amount of the payments made by the Company
and
the Subsidiary on the Closing Date and the payments made by
the Purchaser on the Closing Date pursuant to the provisions
of Sections 2.4.3, 2.4.4 and 2.4.5 that are not properly
deductible for Federal Income Tax purposes by the Company on
the final S Corporation Tax Return of the Company or by the
Sellers.

	 
	 	 	 	 
	“Tax Escrow Agent”

	 	the Escrow Agent, or such other financial institution
acceptable to the Purchaser and the Sellers’ Representative,
which shall act in accordance with the provisions of Section
6.7.

	 
	 	 	 	 
	“Tax Indemnification Payment”

	 	the term defined in Section 6.7.

	 
	 	 	 	 
	“Tax Return”

	 	all returns, declarations, reports, estimates, information,
returns and statements required to be filed in respect of any
Taxes.

	 
	 	 	 	 
	“Tax Timetable”

	 	the timetable set forth on Annex 3.

	 
	 	 	 	 
	“Taxes”

	 	(i) all federal, state, local or foreign taxes,
charges, fees,
imposts, levies or other assessments, including, without
limitation, all net income, gross receipts, capital, sales,
use, ad valorem, value added, transfer, franchise, profits,
inventory, capital stock, license, withholding, payroll,
employment, social security, unemployment, excise, severance,
stamp, occupation, property and estimated taxes, customs
duties, fees, assessments and charges of any kind whatsoever,
(ii) all interest, penalties, fines, additions to taxes or
additional amounts imposed by any taxing authority in
connection with any item described in clause (i).

	 
	 	 	 	 
	“Transaction Agreements”

	 	the Escrow Agreement and the Noncompetition Agreement.

	 
	 	 	 	 
	“WARN”

	 	the term defined in Section 4.16.

	 
	 	 	 	 
	“Wiring Instructions”

	 	the wiring instructions executed and delivered by the
Sellers’
Representative at the Closing with respect to various payments
contemplated under Section 2.4 and the Phantom Stock Plans.

9

 

     1.2 Interpretation. In this Agreement, unless otherwise specified, any reference
to:

     (1) (i) words of any gender include each other gender; (ii) words using the singular or
plural number also include the plural or singular number, respectively; (iii) the terms
“hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement;
(iv) any reference to any Article, Section, Exhibit, Annex, Schedule or paragraph shall be
deemed to refer to an Article, Section, Exhibit, Annex, Schedule or paragraph of this
Agreement, unless the context clearly indicates otherwise; and (v) the word “or” shall be
disjunctive but not exclusive;

     (2) references to another agreement or instrument shall be construed as a reference to
that other agreement or instrument as the same may have been, or may from time to time be,
amended or supplemented;

     (3) references to statutes shall include all regulations promulgated thereunder and
references to statutes or regulations shall be construed as including all statutory and
regulatory provisions consolidating, amending or replacing the statute or regulation;

     (4) the language used in this Agreement shall be deemed to be the language chosen by
the parties to express their mutual intent, and no rule of strict construction shall be
applied against either party;

     (5) the annexes, schedules and exhibits to this Agreement are a material part hereof
and shall be treated as if fully incorporated into the body of the Agreement.

     (6) whenever this Agreement refers to a number of days, such number shall refer to
calendar days unless Business Days are specified and shall be counted from the day
immediately following the date from which such number of days are to be counted; and

     (7) any accounting term, any determination of the character or amount of any asset or
liability or item of income or expense, and any consolidation or other accounting
computation shall, to the extent applicable and except as otherwise specified in this
Agreement, be construed or made (as the case may be) in accordance GAAP applied (in the case
of determinations or computations) on a basis consistent with the past practices of the
Company.

     1.3 Table of Contents and Headings. The table of contents and section headings of
this Agreement are for reference purposes only and are to be given no effect in the construction or
interpretation of this Agreement.

	2.	 	SALE AND PURCHASE OF SHARES

     2.1 Sale and Purchase of Shares. Upon the terms and subject to the conditions
contained herein, on the Closing Date, each Seller shall sell, assign, transfer, convey and deliver
to the Purchaser, and the Purchaser shall purchase from each Seller, the Shares owned by such
Seller set forth opposite such Seller’s name on Annex 1 hereto. Upon completion of the
transactions contemplated by this Agreement, the purchase and sale of the Shares pursuant to this
Agreement shall be deemed to be effective as of 8:00 a.m. (Manhattan, Kansas time) on the Closing
Date (the “Effective Time”) provided, however, that all payments by the Company under the Phantom
Stock Plans, as well as the distributions and success bonuses contemplated by Section 4.9
and the expenses paid under this Section 2 by the Company, shall be deemed to be effective
immediately prior to such Effective Time.

10

 

     2.2 Amount of Purchase Price. The aggregate purchase price for the Shares shall be an
amount equal to $116,600,000 (the “Purchase Price”), as adjusted prior to and after the Closing
Date pursuant to the provisions of Section 2.3.

     2.3 Adjustment of Purchase Price.

     2.3.1 Prior to the date hereof, the Company delivered to the Purchaser an estimate,
prepared by the Company in good faith (based upon (i) information then available to the
Company, (ii) the Agreed Principles and (iii) such assumptions as a reasonably prudent
business person would make in preparing such an estimate), of the Net Working Capital as of
the Effective Time (the “Estimated Net Working Capital”). The Purchase Price payable on the
Closing Date under Section 2.2 shall be (1) increased on a dollar for dollar basis
by the amount, if any, by which the Estimated Net Working Capital exceeds the total of: (i)
the Target Net Working Capital and (ii) $500,000; and (2) decreased, on a dollar for dollar
basis by the amount, if any, by which the total of: (i) the Target Net Working Capital less
(ii) $500,000 exceeds the Estimated Net Working Capital.

     2.3.2 As promptly as practicable, but no later than 60 days after the Closing Date, the
Purchaser shall cause to be prepared and delivered to the Sellers’ Representative a closing
statement (the “Closing Statement”) fairly presenting the Net Working Capital as determined,
as of the Effective Time, in accordance with the Agreed Principles (the “Closing Net Working
Capital”), together with a certificate based on such Closing Statement setting forth the
Purchaser’s calculation of the Closing Net Working Capital. The preparation of the Closing
Statement and such certificate shall be for the sole purpose of determining the difference
between the Closing Net Working Capital and the Target Net Working Capital.

     2.3.3 If the Sellers’ Representative disagrees with the Purchaser’s calculation of the
Closing Net Working Capital delivered pursuant to Section 2.3.2, then the Sellers’
Representative may, within 30 days after delivery of the Closing Statement, deliver a notice
to the Purchaser (with a copy to each of the Indemnifying Sellers) disagreeing with such
calculation and setting forth the Sellers’ Representative’s calculation of such amount. Any
such notice of disagreement shall specify those items or amounts as to which the Sellers’
Representative disagrees, and the Sellers’ Representative shall be deemed to have agreed, on
behalf of the Indemnifying Sellers, with all other items and amounts contained in the
Closing Statement and the calculation of Closing Net Working Capital delivered pursuant to
Section 2.3.2.

     2.3.4 If a notice of disagreement shall be duly delivered pursuant to Section
2.3.3, the Purchaser and the Sellers’ Representative shall, during the 30 days following
such delivery, use their best efforts to reach agreement on the disputed items or amounts in
order to determine, as may be required, the amount of Closing Net Working Capital, which
amount shall not be more than the amount thereof shown in the Sellers’ Representative’s
calculation delivered pursuant to Section 2.3.3 nor less than the amount thereof
shown in the Purchaser’s calculation delivered pursuant to Section 2.3.2. If during
such period, the Purchaser and the Sellers’ Representative are unable to reach such
agreement, they shall promptly thereafter cause KPMG Peat Marwick (the “Independent
Accountant”) to review this Agreement and the disputed items or amounts for the purpose of
calculating the Closing Net Working Capital (it being understood that, in making such
calculation, the Independent Accountant shall be functioning as an expert and not as an
arbitrator). In making such calculation, the Independent Accountant shall consider
only those items or amounts in the Closing Statement and the Purchaser’s calculation of
Closing Net Working Capital as to which the Sellers’ Representative’s has disagreed. The
Independent Accountant shall deliver to the Purchaser and the Sellers’ Representative and
the Indemnifying

11

 

Sellers, as promptly as practicable (but in any case no later than 30 days
from the date of engagement of the Independent Accountant), a report setting forth such
calculation of Closing Net Working Capital. Such report shall be final and binding upon the
Purchaser and the Indemnifying Sellers. The cost of such review and report shall be paid
equally by the Purchaser and the Sellers.

     2.3.5 The Purchaser and the Sellers shall, and shall cause their respective
representatives to, cooperate and assist in the preparation of the Closing Statement and the
calculation of Closing Net Working Capital and in the conduct of the review referred to in
this Section 2.3, including, without limitation, promptly making available to both
the Purchaser and the Sellers’ Representative any relevant books, records, work papers and
personnel.

     2.3.6 If the Final Net Working Capital exceeds the total of (I) the Target Net Working
Capital and (II) $500,000, then the Purchaser shall pay to each Indemnifying Seller, in the
manner and with interest as provided in Section 2.3.7, such Indemnifying Seller’s
Pro Rata portion of the amount of such excess and, if the total of (A) the Target Net
Working Capital less (B) $500,000 exceeds the Final Net Working Capital, then the
Indemnifying Sellers shall, severally and not jointly, pay to the Purchaser, in the manner
and with interest as provided in Section 2.3.7, such Indemnifying Seller’s Pro Rata
portion of the amount of such excess. “Final Net Working Capital” means the Closing Net
Working Capital (1) as shown in the Purchaser’s calculation delivered pursuant to
Section 2.3.2 if no notice of disagreement with respect thereto is duly delivered
pursuant to Section 2.3.3; or (2) if such a notice of disagreement is delivered, (i)
as agreed by the Purchaser and the Seller’s Representative pursuant to Section 2.3.4
or (ii) in the absence of such agreement, as shown in the Independent Accountant’s
calculation delivered pursuant to Section 2.3.4; provided, however,
that in no event shall the Final Net Working Capital be less than the Purchaser’s
calculation of Closing Net Working Capital delivered pursuant to Section 2.3.2 or
more than the Sellers’ Representative’s calculation thereof delivered pursuant to
Section 2.3.3.

     2.3.7 Any payment pursuant to Section 2.3.6 shall be: (1) deemed an adjustment
to the Purchase Price, (2) made not later than five Business Days after the Final Net
Working Capital has been determined, and (3) made by wire transfer of immediately available
funds to the account of such recipient thereof under Section 2.3.6 as such recipient
may designate in writing by such other party. The amount of any payment to be made pursuant
to this Section 2.3 shall bear interest from and including the Closing Date to but
excluding the date of payment at a rate per annum equal to the rate of interest announced by
the Harris Bank as its Prime Rate in Chicago, Illinois in effect from time to time during
the period from the Closing Date to the date of payment. Such interest shall be payable at
the same time as the payment to which it relates and shall be calculated daily on the basis
of a year of 365 days and the actual number of days elapsed.

     2.4 Payment of Purchase Price; Payments Under Phantom Stock Plans.

     On the Closing Date, by wire transfer of immediately available funds
to the respective accounts designated by the various recipients
specified below and set forth in the Wiring Instructions, the
Purchaser shall pay:

     2.4.1 to the Escrow Agent $9,840,000 (the “Escrow Amount”) to be held to satisfy any
claims for indemnification pursuant to Section 9, with such Escrow Amount to be
held and distributed by the Escrow Agent in accordance with the Escrow Agreement;

12

 

     2.4.2 to BMO Capital Markets, the amount set forth opposite its name on the Wiring
Instructions, such amount representing the total fees and expenses payable pursuant to the
terms of the engagement of BMO Capital Markets by the Sellers, the Company and the
Subsidiary;

     2.4.3 pursuant to the instructions of the Company and the instructions of the PSP
Holders, the following: (1) to each PSP Holder (other than the PR Holder), the amount set
forth opposite such PSP Holder’s name on the Wiring Instructions, such amount representing
the amount due to such individual under the applicable Phantom Stock Plan resulting from the
transaction contemplated by this Agreement, after subtraction of (i) the employee portion of
all applicable withholding taxes payable in connection with such payment and (ii) any
withholdings made with respect to such PSP Holder and described in Section 2.4.4(2)
and (2) to the PR Holder, the amount due to such individual under the applicable Phantom
Stock Plan after subtraction of (i) the amount indicated on the Wiring Instructions as being
paid to the Escrow Agent and related to the PR Holder ; and (ii) the full amount of the
employee portion of all applicable withholding taxes payable with respect to the entire
amount payable to the PR Holder under the applicable Phantom Stock Plan; and (iii) any
withholdings made with respect to the PR Holder and described in Section 2.4.4(2);

     2.4.4 pursuant to the instructions of the Company:

     (1) to ADP Inc. an amount equal to the sum of:

     (i) the full amount of the employee portion of all applicable
withholding taxes payable in connection with the payments under the Phantom
Stock Plans resulting from the transaction contemplated by this Agreement;
(including, in the case of the PR Holder, the portion of such amount, if
any, which is paid to the Escrow Agent); and

     (ii) the full amount of the employer portion of all applicable
withholding taxes payable by the Company or the Subsidiary in connection
with the payments under the Phantom Stock Plans; and

     (2) to Wells Fargo Bank Institutional Trust Services Inc., for credit to the
appropriate accounts of each PSP Holder, the portion of the amount payable to the
PSP Holders under the applicable Phantom Stock Plan which the PSP Holder has
elected to have contributed to the Florence Corporation 401(k) Plan together with
the amount of the employer matching contribution required to be made with respect
to such payment, all as more particularly set forth in the Wiring Instructions,
relating to payments to the PSP Holders under this Section 2.4.

     2.4.5 to the attorneys and other business and financial advisers of the Sellers, the
amount set forth in the Wiring Instructions; and

     2.4.6 to each of the Sellers, the amount set forth in the Wiring Instructions opposite
the name of such Seller, such amount representing such Seller’s Pro Rata portion of the
remaining balance of the Purchase Price.

     2.5 Escrow Agreement. Prior to the Closing, the Purchaser, the Sellers’
Representative, the PR Holder and the Escrow Agent shall execute and deliver the Escrow Agreement
which shall contain terms mutually agreeable to the Purchaser, the Sellers’ Representative, the PR
Holder and the Escrow Agent.

13

 

	3.	 	CLOSING AND TERMINATION

     3.1 Closing Date. Subject to the satisfaction of the conditions set forth in
Sections 7.1 and 7.2 hereof (or the waiver thereof by the party entitled to waive that
condition), the closing of the sale and purchase of the Shares provided for in Section 2.1
hereof (the “Closing”) shall take place at 10:00 a.m. at the offices of Masuda, Funai, Eifert &
Mitchell, Ltd., 203 North LaSalle Street, Chicago, Illinois, on the later of: (1) August 31, 2007
or (2) the date that is 8 Business Days following the termination of the applicable waiting period
under the HSR Act, or at such other place or on such other date as the Sellers and the Purchaser
may agree, including, but not limited to, the date hereof (the “Closing Date”).

     3.2 Termination of Agreement. This Agreement may be terminated at any time prior to
the Closing (the “Termination Date”) as follows:

     3.2.1 by the Purchaser, effective immediately upon delivery of written notice to the
Seller’s Representative, if, between the date hereof and the time scheduled for the Closing:
(1) an event or condition occurs that has resulted in or that would reasonably be expected
to result in a Material Adverse Effect or an inability to satisfy any condition to Closing
set forth in Section 7.1  and the Sellers are unable to otherwise satisfy such
condition within 30 days following the delivery of written notice to the Sellers’
Representative of notice of the occurrence of such event or condition; or (2) the Sellers
shall have breached any material covenant or obligation hereunder and such breach shall not
have been cured within 30 days following the delivery to Sellers’ Representative of written
notice of such breach;

     3.2.2 by the Sellers, effective immediately upon delivery of written notice to the
Purchaser, if, between the date hereof and the time scheduled for the Closing, the Purchaser
shall have breached any material covenant or obligation hereunder and such breach shall not
have been cured by the Purchaser within 30 days following the delivery to the Purchaser of
written notice of such breach;

     3.2.3 by the Sellers, effective immediately upon delivery of written notice to the
Purchaser, or by the Purchaser, effective immediately upon delivery of written notice to the
Seller’s Representative, if the Closing shall not have occurred by September 14, 2007;
provided, however, that the right to terminate this Agreement under this
Section 3.2 shall not be available to any party whose failure to fulfill any
obligation under this Agreement shall have been the cause of, or shall have resulted in, the
failure of the Closing to occur on or prior to such date;

     3.2.4 by the Purchaser, effective immediately upon delivery of written notice to the
Sellers’ Representative, or by the Sellers, effective immediately upon delivery of written
notice to the Purchaser, if a final nonappealable Order of a Governmental Body of competent
jurisdiction shall be been issued restraining, enjoining or otherwise prohibiting the
transactions contemplated by this Agreement; or

     3.2.5 by the mutual written consent of the parties hereto.

     3.3 Procedure Upon Termination. In the event of termination by the Purchaser or the
Sellers, or both, pursuant to Section 3.2 hereof, this Agreement shall terminate and the
purchase of the Shares hereunder shall be abandoned, without further action by the Purchaser or the
Sellers. If this Agreement is terminated as provided herein, then each party shall redeliver all
documents, work papers and other material of any other party relating to the transactions
contemplated hereby, whether obtained before or after the execution hereof, to the party furnishing
the same.

14

 

     3.4 Effect of Termination. If this Agreement is validly terminated as provided
herein, then, from and after the Termination Date, each of the parties hereto shall be relieved of
their respective duties and obligations arising under this Agreement, except: (1) as set forth in
Section 11.1 ; (2) as provided under any Confidentiality Agreement previously
signed by such parties; and (3) that nothing herein shall relieve either party from liability for
breach of this Agreement. In the event that this Agreement is terminated by the Purchaser,
pursuant to the provisions of Section 3.2.1(2) or by Sellers pursuant to the provisions of
Section 3.2.2 above, the party that terminated this Agreement shall be entitled to be
reimbursed by the other party for all reasonable out of pocket costs incurred by such party in
connection with the investigation and negotiation of this Agreement, including but not limited to,
the fees and expenses of such party’s attorneys, accountants and financial advisors; provided;
however, that any amounts provided for in this Section 3.4 shall not exceed $500,000.

	4.	 	REPRESENTATIONS AND WARRANTIES OF COMPANY

     Each of the Indemnifying Sellers and the Company hereby make the following representations and
warranties, as of the date hereof and as of the Effective Time, which representations and
warranties shall be qualified by the Disclosure Schedule provided that the disclosure of an item in
one section of the Schedules shall be deemed to modify both (i) the representations and warranties
contained in the Section of this Agreement to which it corresponds in number, and (ii) any other
representation and warranty of the Company and the Indemnifying Sellers in this Agreement to the
extent that it is or should be evident from a reading of such disclosure item that it would also
qualify or apply to such other representation and warranty; provided that the matters required to
be disclosed on Schedule 4.9 (Absence of Certain Developments), Schedule 4.17
(Litigation), Schedule 4.15 (Employee Benefit Plans), Schedule 4.5 (Conflicts;
Consents of Third Parties), Schedule 4.19 (Environmental Matters) and Schedule 4.10
(Taxes), shall not be deemed to be disclosed unless disclosed on Schedules corresponding in number
to such Sections. Notwithstanding the foregoing, each of the Sellers shall, solely with respect to
the representations and warranties set forth in Section 4.6 (Ownership and Transfer of
Shares) only be bound by and responsible for the representations and warranties contained in such
Section as they apply to the shares owned by such Seller.

     4.1 Organization and Good Standing. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of Illinois and has all
necessary corporate power and authority to own, lease and operate its properties and to carry on
its business as now conducted, except where any lack of such power or authority would not
reasonably be expected to result in a Material Adverse Change. Schedule 4.1 attached
hereto contains a list of each jurisdiction in which the Company and the Subsidiary are qualified
to do business as a foreign corporation. The Company and the Subsidiary are duly qualified to do
business as a foreign corporation in each jurisdiction in which the failure of the Company or the
Subsidiary to be so qualified would reasonably be expected to have a Material Adverse Effect.

     4.2 Authorization of Agreement.

     4.2.1 Authorization of Agreement by Company The Company has all requisite
power and authority to execute and deliver this Agreement, each Transaction Agreement to
which it is a party and each other agreement, document, or instrument or certificate
contemplated by this Agreement to be executed by the Company in connection with the
consummation of the transactions contemplated by this Agreement, and to consummate the
transactions contemplated hereby or thereby. This Agreement has been, and when executed and
delivered, each Transaction Agreement executed by the Company, will be, duly and validly
executed and delivered by the

15

 

Company and (assuming the due authorization, execution and
delivery by the other parties hereto and thereto) this Agreement and each such Transaction
Agreement constitutes the legal, valid and binding obligations of the Company, enforceable
against it in accordance with its terms, subject to applicable bankruptcy, insolvency,
moratorium and similar laws affecting creditors’ rights and remedies generally, and subject,
as to enforceability, to rules of law governing specific performance, injunctive relief and
to general principles of equity, including principles of commercial reasonableness, good
faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law
or in equity).

     4.2.2 Authorization of Agreement by Sellers. Each Seller has all requisite
power, authority and legal capacity to execute and deliver this Agreement, each Transaction
Agreement to which it is a party and each other agreement, document, or instrument or
certificate contemplated by this Agreement to be executed by such Seller in connection with
the consummation of the transactions contemplated by this Agreement and to consummate the
transactions contemplated hereby and thereby. This Agreement has been, and when executed
and delivered by the Sellers or the Sellers’ Representative, each Transaction Agreement to
which such Seller or the Sellers’ Representative shall be a party will be, duly and validly
executed and delivered by each Seller and the Sellers’ Representative and (assuming the due
authorization, execution and delivery by the other parties hereto and thereto) this
Agreement constitutes, and each of such Transaction Agreements, when executed and delivered,
will constitute, a legal, valid and binding obligation of such Seller, enforceable against
such Seller and the Sellers’ Representative in accordance with its terms, subject to
applicable bankruptcy, insolvency, moratorium and similar laws affecting creditors’ rights
and remedies generally, and subject, as to enforceability, to rules of law governing
specific performance, to injunctive relief and to general principles of equity, including
principles of commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity).

     4.3 Capitalization; Officers and Directors.

     4.3.1 The authorized capital stock of the Company consists of 5,000 shares of common
stock, $10.00 par value per share (the “Common Stock”). As of the date hereof, there are
2,440 shares of Common Stock issued and outstanding and 2,560 outstanding shares of Common
Stock that are held by the Company as treasury stock. All of the issued and outstanding
shares of Common Stock were duly authorized for issuance and are validly issued, fully paid
and non-assessable.

     4.3.2 Except as contemplated by the Shareholders Agreement and the Phantom Stock Plans,
there is no existing option, warrant, call, right, commitment or other agreement of any
character to which any Seller or the Company is a party or which are binding on the Company
or any Seller requiring, and there are no securities of the Company outstanding which upon
conversion or exchange would require, the issuance, sale or transfer of any additional
shares of capital stock or other equity securities of the Company or other securities
convertible into, exchangeable for or evidencing the right to subscribe for or purchase
shares of capital stock or other equity securities of the Company.

     4.3.3 Schedule 4.3.3 sets forth, for each of the Company and the Subsidiary,
the officers and directors of such corporation, as well as the outside affiliation or
employment of such directors.

     4.4 Subsidiaries. Except for the Subsidiary, the Company does not own any capital
stock or other equity interests in any Person. The Company owns all of the issued and outstanding
shares of the

16

 

Subsidiary. The outstanding shares of capital stock or equity interests of the
Subsidiary are validly issued, fully paid and non-assessable, and all such shares or other equity
interests represented as being owned by the Company are owned by it free and clear of any and all
Liens, except as set forth in Schedule 4.4 hereto. No shares of capital stock are held by
the Subsidiary as treasury stock. There is no existing option, warrant, call, commitment or
agreement to which the Company or the Subsidiary is a party requiring, and there are no convertible
securities of the Company or the Subsidiary outstanding which upon conversion would require, the
issuance of any additional shares of capital stock or other equity interests of the Subsidiary or
other securities convertible into shares of capital stock or other equity interests of the
Subsidiary. The Subsidiary is a duly organized and validly existing corporation in good standing
under the laws of Kansas. The Subsidiary has all requisite corporate power and authority to own
its properties and carry on its business as presently conducted, except where any lack of such
power or authority would not reasonably be expected to result in a Material Adverse Change.

     4.5 Conflicts; Consents of Third Parties.

     4.5.1 Neither the execution and delivery by the Company of this Agreement, or any other
Transaction Agreement, nor the consummation of the transactions contemplated hereby or
thereby, nor compliance by the Company with any of the provisions hereof or thereof will
conflict with, or result in any violation of or default (with or without notice or lapse of
time, or both) under, or give rise to a right of termination, cancellation or acceleration
of any obligation or to loss of a material benefit under, or give rise to any obligation of
the Company to make any payment under, or to the increased, additional, accelerated or
guaranteed rights or entitlements of any person under, or result in the creation of any
Liens upon any of the properties or assets of the Company or any Subsidiary under any
provision of (1) the articles of incorporation and bylaws or comparable organizational
documents of the Company or the Subsidiary (collectively, “Organizational Documents”), (2)
any Contract or Permit or other obligation to which the Company or the Subsidiary is a party
or by which any of the properties or assets of the Company or the Subsidiary are bound
except the Phantom Stock Plans and as set forth in Schedule 4.5.1; or (3) any Order
of any court, Governmental Body or arbitrator applicable to the Company or any Subsidiary or
any of the properties or assets of the Company or any Subsidiary as of the date hereof,
except in the case of clauses (2) and (3), for such violations, breaches or defaults as
would not, individually or in the aggregate, have a Material Adverse Effect.

     4.5.2 Neither the execution and delivery by the Sellers of this Agreement and the
Transaction Agreements to which the Sellers are a party, nor the compliance by the Sellers
with any of the provisions hereof or thereof, will conflict with or result in any violation
of or default (with or without notice or lapse of time or both) under any provisions of: (1)
the agreements which contain the terms of the trusts which are the holders of the Shares;
(2) any Contract or other
obligation to which any of the Sellers is a party, or any Contract or other obligation
pertaining to the interests in the trusts comprising the Sellers to which any of the
beneficiaries of such trusts is a party, other than the Shareholder Agreement which shall be
terminated on or prior to the Closing Date; or (3) any Order of any court, Governmental Body
or arbitrator applicable to any of the trusts comprising the Sellers or any Order of any
court, Governmental Body or arbitrator known by the Sellers, which is applicable to the
beneficiaries of the trusts comprising the Sellers.

     4.5.3 Except as set forth in Schedule 4.5.3, no consent, waiver, approval,
Order, Permit or authorization of, or declaration or filing with, or notification to, any
Person or Governmental Body is required on the part of the Company, the Subsidiary or any
Seller in connection with the execution and delivery of this Agreement or the Transaction
Agreements to be executed and delivered by the Company or the Sellers in connection with the
consummation of the transactions contemplated hereunder or the compliance by the Company,
the Subsidiary or any Seller with any

17

 

of the provisions hereof or thereof, the consummation
of the transactions contemplated hereby or thereby or the taking of any other action
contemplated hereby, or the continuing validity and effectiveness immediately following the
Closing of any Permit or Contract of the Company, except for compliance with the applicable
requirements of the HSR Act and the rules and regulations promulgated thereunder.

     4.6 Ownership and Transfer of Shares. Each Seller is the record owner of the Shares
and the beneficiary or beneficiaries of such Seller, as the case may be, is the beneficial owner or
are the beneficial owners of the Shares indicated as being owned by such Seller on Annex 1.
At the Closing, the Purchaser will acquire good title to the Shares free and clear of any and all
Liens (other than as contemplated by Section 5.5).

     4.7 Financial Statements. Set forth as Schedule 4.7 are: (1) the audited
consolidated balance sheets of the Company and its Subsidiary as of December 31, 2006, 2005, and
2004 and the related audited consolidated statements of income and of cash flows of the Company and
its Subsidiary for the years then ended; and (2) the unaudited non-consolidated and consolidated
balance sheets of the Company and its Subsidiary as of January, February, March and April 2007 and
the related non-consolidated and consolidated statements of profit and loss of the Company and its
Subsidiary for the four month period then ended (such audited and unaudited statements, including
the related notes and schedules thereof, the “Financial Statements”). Each of the Financial
Statements has been prepared in accordance with GAAP consistently applied by the Company and
presents fairly in all material respects the financial position, results of operations of the
Company and the Subsidiary as of the dates and for the periods indicated.

     4.8 No Undisclosed Liabilities. To the Company’s knowledge, except as set forth in
the Financial Statements and in Schedule 4.8, neither the Company nor the Subsidiary has
any indebtedness, obligations or liabilities of any kind (whether accrued, absolute, contingent or
otherwise, and whether due or to become due) that would have been required to be reflected in,
reserved against or otherwise described in the Financial Statements in accordance with GAAP or
would have a Material Adverse Effect on the assets of the Company or the Subsidiary.

     4.9 Absence of Certain Developments. Except as expressly contemplated by this
Agreement or as set forth on Schedule 4.9 and in the Financial Statements, since the date
of the last set of Financial Statements: (1) the Company has conducted its business in all material
respects only in the Ordinary Course of Business and in substantially the same manner as previously
conducted; (2) has not made any change in any method of
accounting or accounting practice or policy used by the Company or the Subsidiary; (3) has not made
any material changes in the customary methods of operating the business of the Company or the
Subsidiary including, without limitation, practices and policies relating to marketing, selling and
pricing; (4) has not amended, terminated, cancelled or compromised any material claims of the
Company or the Subsidiary or waived any rights of substantial value; (5) has not entered into any
agreement, arrangement or transaction with any directors, officers, employees or shareholders of
the Company or the Subsidiary other than those contemplated by this Agreement or for compensation
in the Ordinary Course of Business consistent with past practices; (6) has not granted any general
increase in the compensation payable or to become payable to officers or employees (including any
such increase pursuant to any bonus, pension, profit-sharing or other plan or commitment), of the
Company or the Subsidiary or any special increase in the compensation payable or to become payable
to any such officer or employee, or made any bonus payments to any such officer or employee, except
for normal, bargained, merit or cost of living payments or increases made in the Ordinary Course of
Business; (7) has not made capital expenditures or commitments on behalf of or relating to the
business in excess of $50,000 in the aggregate; (8) has not agreed, whether in writing or
otherwise, to take any action described in this Section 4.9; or (9) to the knowledge of the
Company and the Sellers, there has not been any event, change,

18

 

occurrence or circumstance that has
had or would reasonably be expected to have a Material Adverse Effect. For purposes of the
“Effective Time”, the distributions and success bonuses described in this Section shall be deemed
to have occurred prior to the Effective Time.

     4.10 Taxes.

     4.10.1 Except as set forth on Schedule 4.10.1: (1) all Tax Returns required to
be filed by or on behalf of the Company and the Subsidiary have been timely filed with the
appropriate taxing authorities in all jurisdictions in which such Tax Returns are required
to be filed (after giving effect to any valid extensions of time in which to make such
filings) and all such Tax Returns are accurate and complete in all respects; (2) all Taxes
payable by or on behalf of the Company or the Subsidiary or in respect of their respective
income, assets or operations have been fully and timely paid and adequate reserves or
accruals for Taxes have been provided in the Financial Statements with respect to any period
to which such Financial Statements relate and for which Tax Returns have not yet been filed
or for which Taxes are not yet due and owing; (3) neither the Company nor the Subsidiary has
executed or filed with the IRS or any other taxing authority any agreement, waiver or other
document or arrangement extending or having the effect of extending the period for
assessment or collection of Taxes (including, but not limited to, any applicable statute of
limitation), and no power of attorney with respect to any Tax matter is currently in force;
and (4) there are no pending or, to the knowledge of the Company, threatened actions or
proceedings for the assessment or collection of Taxes against the Company or the Subsidiary.

     4.10.2 The Company and the Subsidiary have: (1) complied in all material respects with
all applicable laws, rules and regulations relating to the payment and withholding of Taxes;
(2) duly and timely withheld from employee salaries, wages and other compensation; and (3)
paid over to the appropriate taxing authorities all amounts required to be so withheld and
paid over for all periods under all applicable laws.

     4.10.3 No Seller is a foreign person within the meaning of Section 1445 of the Code.

     4.10.4 Neither the Company nor the Subsidiary is liable for the Taxes of any Person
under Treasury Regulation Section 1.1502-6 or any similar provision of state, local or
foreign Tax Law, as a transferee or successor, by Contract, or otherwise.

     4.10.5 The Company is and has been an “S corporation” within the meaning of Section
1361(a)(1) of the Code at all times since January 1, 2001, and the Subsidiary is and has
been “qualified subchapter S subsidiary” within the meaning of Section 1361(b)(3)(B) of the
Code at all times since July 25, 2003. Except as set forth on Schedule 4.10.5,
neither the Company nor the Subsidiary owns any assets that would give rise to a potential
tax liability under Section 1374 of the Code, whether as a result of a deemed sale of the
Company’s and the Subsidiary’s assets caused by a Section 338(h)(10) Election (including in
connection with the transactions contemplated by this Agreement).

     4.11 Real Property.

     4.11.1 Neither the Company nor the Subsidiary currently owns any real property.
Schedule 4.11.1 sets forth a complete list of all real property and interests in
real property leased by the Company and its Subsidiary (collectively, “Real Property Leases”
and the real properties specified in such leases being referred to herein individually as a
“Company Property” and, collectively, as the “Company Properties”) as lessee. The Company
Properties constitute all

19

 

interests in real property currently used or currently held for
use in connection with the business of the Company and its Subsidiary and which are
necessary for the continued operation of the business of the Company and its Subsidiary as
such business is currently conducted. The Company and its Subsidiary have a valid and
enforceable leasehold interest under each of the Real Property Leases, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in equity),
and neither the Company nor the Subsidiary has received any written notice of any default or
event that, with notice or lapse of time, or both, would constitute a default by the Company
or the Subsidiary under any of the Real Property Leases, and, to the knowledge of the
Company, no other party is in default thereof, and no party to the Real Property Leases has
exercised any termination rights with respect thereto. True, correct and complete copies of
all Real Property Leases have been provided to the Purchaser.

     4.11.2 The Company and the Subsidiary have all material certificates of occupancy and
Permits of any Governmental Body necessary for the current use and operation of each Company
Property, except for such Permits the failure to hold of which would not reasonably be
expected to have a Material Adverse Effect .

     4.12 Tangible Personal Property.

     4.12.1 Schedule 4.12.1 sets forth each lease of personal property
(collectively, the “Personal Property Leases”) involving annual payments in excess of
$50,000 relating to personal property used in the business of the Company or its Subsidiary
or to which the Company or its Subsidiary is a party or by which the properties or assets of
the Company or its Subsidiary is bound.

     4.12.2 A copy of each of the Personal Property Leases listed on Schedule 4.12.1
has been delivered to the Purchaser. The Company and its Subsidiary have a valid leasehold
interest under each of the Personal Property Leases under which it is a lessee, subject to
applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
creditors’ rights and remedies generally and subject, as to enforceability, to general
principles of equity (regardless of whether enforcement is sought in a proceeding at law or
in equity), and there is no default under any Personal Property Leases by the Company or its
Subsidiary or, to the knowledge of the
Company, by any other parties thereto, other than such defaults by the Company, the
Subsidiary or such other parties as would not reasonably be expected to result in a Material
Adverse Effect.

     4.12.3 Except as set forth on Schedule 4.12.3, the Company and its Subsidiary
have good and marketable title to all of the items of tangible personal property reflected
in the balance sheet of the most recent of the Financial Statements (except as sold or
disposed of subsequent to the date thereof in the Ordinary Course of Business consistent
with past practice), free and clear of any and all Liens other than Permitted Exceptions.
Except as set forth on Schedule 4.12.3, no material maintenance, replacement or
repair of any fixtures or equipment currently used in the business (other than spare parts)
has been deferred or neglected.

     4.13 Intellectual Property

     4.13.1 Schedule 4.13.1 lists all Intellectual Property that, as of the date
hereof and at the Effective Time, is owned or used under license or similar agreements by
the Company or Subsidiary other than that acquired pursuant to the purchase of off-the-shelf
software (“Off-the-Shelf Software”). The Company is the sole and exclusive owner of, or has
valid and continuing

20

 

rights to use, sell and license, as the case may be, all of the
Intellectual Property set forth on Schedule 4.13.1 and Products sold or licensed by
the Company in the business as presently conducted and as currently proposed to be
conducted, free and clear of all Liens or obligations to others (except for those specified
licenses included in Schedule 4.13.6).

     4.13.2 Neither the Company nor the Subsidiary has received any notice that the use of
any Intellectual Property identified on Schedule 4.13.1 violates or infringes the
rights of any other Person. To the knowledge of the Company, the Intellectual Property
owned, used, practiced or otherwise commercially exploited by the Company, the
manufacturing, licensing, marketing, offering for sale, sale or use of the products in
connection with the business as presently and as currently proposed to be conducted, and the
Company’s present and currently proposed business practices and methods do not constitute an
unauthorized use or misappropriation of any patent, copyright, trade secret or other similar
right, of any Person and, to the knowledge of the Company, does not infringe, constitute an
unauthorized use of, or violate any other right of any Person (including, without
limitation, pursuant to any non-disclosure agreements or obligations to which the Company is
a party). The Intellectual Property owned by or licensed to the Company includes all of the
intellectual property rights necessary to enable the Company to conduct the business of the
Company and the Subsidiary in the manner in which such business is currently being
conducted.

     4.13.3 Except with respect to licenses of Off-the-Shelf Software, and except pursuant
to the licenses for the use of the Intellectual Property (“Intellectual Property Licenses”)
listed in Schedule 4.13.3, the Company is not required, obligated, or under any
liability whatsoever, to make any payments by way of royalties, fees or otherwise to any
owner, licensor of, or other claimant to any Intellectual Property, or other third party,
with respect to the use thereof or in connection with the conduct of the business as
currently conducted or proposed to be conducted.

     4.13.4 Neither the execution nor delivery of this Agreement nor the carrying on of the
business as currently conducted will conflict with or result in a breach of the terms,
conditions or provisions of, or constitute a default under, any of the Intellectual Property
Licenses or any other material Contract relating to the Intellectual Property under which
the Company is now obligated.

     4.13.5 Schedule 4.13.5 sets forth an accurate and complete list of all patents
or applications therefor, trademarks, trade names, software (other than “Off the Shelf”),
domain names, pending applications for registrations of any trademarks and unregistered trademarks,
registered copyrights, and pending applications for registration of copyrights, owned or
filed by the Company. Schedule 4.13.5 lists the jurisdictions in which each such
item of Intellectual Property has been issued or registered or in which any such application
for such issuance and registration has been filed.

     4.13.6 Schedule 4.13.6 sets forth a complete and accurate list of all Contracts
to which the Company is a party: (1) as grantor, granting any rights to third parties to use
the Intellectual Property; (2) as a grantee of any rights in the Intellectual Property; or
(3) containing a covenant not to compete or otherwise limiting the Company’s ability to (i)
exploit fully any of the Intellectual Property or (ii) conduct the business in any market or
geographical area or with any Person.

     4.13.7 No secret information of the Company used in the manufacturing of the Products
or any other non-public, proprietary information material to the business of the Company as
presently conducted has been authorized to be disclosed or, to the knowledge of the Company,
has been actually disclosed by the Company to any third party other than pursuant to a
non-

21

 

disclosure agreement restricting the disclosure and use of the Intellectual Property.
The Company has taken adequate security measures to protect the secrecy and confidentiality
of all the secret information of the Company and any other confidential information,
including invention disclosures, not covered by any patents owned or patent applications
filed by the Company, which measures are reasonable in the industry in which the Company
operates.

     4.13.8 As of the date hereof, the Company is not the subject of any pending or, to the
Company’s knowledge, overtly threatened Legal Proceedings that involve a claim of
infringement, unauthorized use, or violation by any Person against the Company or
challenging the ownership, use, validity or enforceability of, any material Intellectual
Property.

     4.13.9 To the knowledge of the Company, no Person is infringing, violating, misusing or
misappropriating any Intellectual Property of the Company, and no such claims have been made
against any Person by the Company.

     4.13.10 No present or former employee has any right, title, or interest, directly or
indirectly, in whole or in part, in any material Intellectual Property owned or used by the
Company.

     4.14 Material Contracts. Schedule 4.14 sets forth all of the following
Contracts to which the Company or its Subsidiary is a party or by which it is bound (collectively,
the “Material Contracts”): (1) Contracts with any Seller or any current officer or director of the
Company or of its Subsidiary; (2) Contracts pursuant to which any party is required to purchase or
sell a stated portion of its requirements or output from or to another party; (3) Contracts for the
sale of the assets of the Company or its Subsidiary other than in the Ordinary Course of Business
or for the grant to any person of any preferential rights to purchase any of its material assets;
(4) Contracts containing covenants of the Company or its Subsidiary not to compete in any line of
business or with any other Person in any geographical area or covenants of any other Person not to
compete with the Company or its Subsidiary in any line of business or in any geographical area; (5)
Contracts relating to the borrowing of money, including indebtedness under capital leases; (6) any
other Contracts, other than Real Property Leases, that: (i) involve, individually, the expenditure
by the Company or the Subsidiary of more than $50,000 annually, (ii) are not cancelable upon 30 or
fewer days notice without any liability or (iii) require performance by any party more than one
year from the date hereof; (7) Contracts that provide for the receipt of payment by the Company or
the Subsidiary of $100,000 or more annually; (8) Contracts requiring the Company or the Subsidiary to pay, perform,
discharge or otherwise guarantee any Debt or obligation of any Person; or (9) Contracts containing
any provisions that are contingent upon the occurrence of or prohibit any change in ownership of
the capital stock of the Company or the Subsidiary. Except as set forth on Schedule 4.14,
all of the Material Contracts and other agreements to which the Company or the Subsidiary is a
party: (i) are the legal, valid and binding obligation of the Company and/or its Subsidiary,
enforceable against the Company and/or the Subsidiary in accordance with their respective terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
creditors’ rights and remedies generally and subject, as to enforceability, to rules of law
governing specific performance, to injunctive relief, and to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity) and (ii) to the
Company’s knowledge, are in full force and effect. Unless otherwise stated in Schedule
4.14, neither the Company nor the Subsidiary is in default in any material respect under any
Material Contracts and to the Company’s knowledge, no other party is in default under the terms of
any Material Contract. True, correct and complete copies of all Material Contracts have been
provided to the Purchaser.

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     4.15 Employee Benefits Plans.

     4.15.1 Schedule 4.15.1 sets forth a correct and complete list of the following
(collectively, the “Employee Benefit Plans”): all “employee pension benefit plans” (as
defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)), any “employee welfare benefit plan (as defined in Section 3(1) of ERISA) and any
other written or oral plan, agreement or arrangement involving direct or indirect
compensation, including insurance coverage, retirement, life and health insurance,
hospitalization, severance benefits, disability benefits, holiday, vacation, severance pay,
sick pay, sick leave, disability, tuition refund, service award, company car, scholarship,
relocation, patent award, fringe benefit, deferred compensation, Bonuses, stock options,
stock purchase, phantom stock, stock appreciation or other forms of incentive compensation
or post-retirement compensation currently maintained or contributed to by the Company or its
Subsidiary on behalf of employees, former employees, directors or former directors of the
Company or its Subsidiary.

     4.15.2 None of the Employee Benefit Plans is a “multiemployer plan,” (as defined in
Section 4001(a)(3) of ERISA) and at no time has the Company or any ERISA Affiliate been
obligated to contribute to any multiemployer plan. As used herein, the term “ERISA
Affiliate” shall mean any Person that is, or at any applicable time was, a member of: (1) a
controlled group of corporations (as defined in Section 414(b) of the Code, (2) a group of
trades or businesses under common control (as defined in Section 414(c) of the Code), or (3)
an affiliated service group (as defined in Section 414(m) of the Code or the regulations
under Section 414(o) of the Code), any of which includes or included the Company or its
Subsidiary.

     4.15.3 Neither the Company nor any ERISA Affiliate has ever maintained an Employee
Benefit Plan subject to Section 412 of the Code or Title IV of ERISA.

     4.15.4 All Employee Benefit Plans that are intended to be qualified under Section
401(a) of the Code have received determination letters from the IRS to the effect that such
Employee Benefit Plans are qualified and the plans and the trusts related thereto are exempt
from federal income taxes under Sections 401(a) and 501(a), respectively, of the Code, no
such determination letter has been revoked and revocation has not been threatened, and no
such Employee Benefit Plan has been amended since the date of its most recent determination
letter or application therefor in any material respect. Except as set forth in Schedule
4.15.4, all Employee Benefit Plans have, in all material respects, been operated and administered in accordance
with their terms.

     4.15.5 Except as set forth in Schedule 4.15.5, all filings and reports as to
each Employee Benefit Plan required to have been submitted to the IRS or to the United
States Department of Labor have been duly submitted. No Employee Benefit Plan has assets
that include securities issued by any of the Company or any ERISA Affiliate.

     4.15.6 There are no claims or Legal Proceedings (except claims for benefits payable in
the normal operation of the Employee Benefit Plans and Legal Proceedings with respect to
qualified domestic relations orders) against or involving any Employee Benefit Plan or
asserting any rights or claims to benefits under any Employee Benefit Plan that could give
rise to any material liability.

     4.15.7 Schedule 4.15.7 discloses each: (1) agreement with any shareholder,
director, executive officer or other key employee of the Company or its Subsidiary (i) the
benefits of which are contingent, or the terms of which are altered, upon the occurrence of
a transaction involving

23

 

the Company of the nature of any of the transactions contemplated by
this Agreement, (ii) providing any term of employment or compensation guarantee or (iii)
providing severance benefits or other benefits after the termination of employment of such
director, executive officer or key employee; (2) agreement, plan or arrangement under which
any Person may receive payments from the Company or its Subsidiary that may be subject to
the tax imposed by Section 4999 of the Code (or any similar applicable foreign tax law) or
included in the determination of such Person’s “parachute payment” under Section 280G of the
Code (or any similar applicable foreign tax law); and (3) other than the Phantom Stock
Plans, agreement or plan binding the Company or its subsidiary, including any stock option
plan, stock appreciation right plan, restricted stock plan, stock purchase plan, severance
benefit plan or Employee Benefit Plan, any of the benefits of which will be increased, or
the vesting of the benefits of which will be accelerated, by the occurrence of any of the
transactions contemplated by this Agreement or the value of any of the benefits of which
will be calculated on the basis of any of the transactions contemplated by this Agreement.

     4.15.8 Except as set forth in Schedule 4.15.8, there are no unfunded
obligations under any Employee Benefit Plan providing benefits after termination of
employment to any employee of the Company or the Subsidiary (or to any beneficiary of any
such employee), including but not limited to retiree health coverage and deferred
compensation, but excluding continuation of health coverage required to be continued under
Section 4980B of the Code or other applicable law (or any similar applicable foreign tax
law) and insurance conversion privileges under state law. Except as set forth in
Schedule 4.15.8 or as provided herein, neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereby will, either alone or
upon the occurrence of subsequent events: (1) result in any payment becoming due to any
employee (current, former or retired) of the Company or the Subsidiary, (2) increase any
benefits otherwise payable under any Employee Benefit Plan, (3) result in the acceleration
of the time of payment or vesting of any benefits under any Employee Benefit Plan, or (4)
constitute a “change in control” or similar event under any Employee Benefit Plan, for which
the Purchaser, the Company or the Subsidiary shall become liable.

     4.15.9 Schedule 4.15.9 sets forth the policy of the Company and its Subsidiary
with respect to accrued vacation, accrued sick time and earned time off and the amount of
such liabilities as of April 30, 2007.

     4.16 Employees and Labor. Schedule 4.16 contains a complete and correct list
of all employees employed by the Company and the Subsidiary as of 2 business days prior to the date
hereof, including, each active employee and each employee classified as inactive as a result of
disability, leave of absence or other absence (collectively, the “Employees”). Neither the Company
nor its Subsidiary is currently a party to any collective bargaining agreement or union contract
recognizing any labor organization as the bargaining agent of any Employees. To the Company’s
knowledge, except as set forth in Schedule 4.16, there is no union organization activity
involving any of the Employees, pending or threatened. Each of the Company and its Subsidiary is
in material compliance with all Laws relating to the employment of labor, including all such Laws
relating to wages, hours, the Worker Adjustment and Retraining Notification Act and any similar
state or local “mass layoff” or “plant closing” Law (“WARN”). There has been no “mass layoff” or
“plant closing” (as defined by WARN) with respect to the Company or its Subsidiary within the six
months prior to Closing. Except as set forth on Schedule 4.16, neither the Company nor the
Subsidiary, during the last three (3) years, has experienced any material labor disputes or any
material work stoppages due to labor disagreements.

24

 

     4.17 Litigation. Except as set forth in Schedule 4.17, there is no Legal
Proceeding pending or, to the knowledge of the Company, overtly threatened against the Company or
its Subsidiary before any court, or before any governmental department, commission, board, agency,
or instrumentality.

     4.18 Compliance with Laws; Permits. Except as set forth on Schedule 4.18
hereto: (1) to the Company’s knowledge, the Company is in compliance in all material respects with
all Laws of any Governmental Body applicable to its business or operations, except where
noncompliance thereof would not reasonably be expected to have a Material Adverse Effect; (2)
within the past 18 months, neither the Company nor the Subsidiary has received any written or other
notice of or been charged with the violation of any Laws; and (3) to the Company’s knowledge,
neither the Company nor the Subsidiary is under investigation with respect to the violation of any
Laws. Schedule 4.18(i) contains a list of all Permits that are required for the operation
of the Business as presently conducted and as presently intended to be conducted other than those
the failure to hold of which would not reasonably be expected to result in a Material Adverse
Effect. The Company and the Subsidiary currently have all Permits that are required for the
operation of the business as presently conducted, except where failure to have any such Permit
would not reasonably be expected to have a Material Adverse Effect. Except as set forth on
Schedule 4.18, all of the Permits are valid and will not be lost or otherwise forfeited as
a result of the purchase of the Shares by the Purchaser.

     4.19 Environmental Matters.

     4.19.1 Schedule 4.19.1 attached hereto sets forth a list, by date of occupancy,
of all real property owned or leased by the Company or the Subsidiary at any time prior to
January 1, 2003 (such real property, the “Historical Properties”); provided, however, that
such Schedule and the definition of the term Historical Properties does not include any real
property owned by an entity acquired by the Company or the Subsidiary and disposed of by
such entity prior to such entity’s acquisition by the Company or the Subsidiary. Other than
Releases that have occurred in de minimis quantities or that in the aggregate are not
material, and except as set forth on Schedule 4.19.1, no Release of Hazardous
Materials in violation of any Environmental Law has occurred on any Company Properties or
Historical Properties during the period of the Company’s ownership, occupancy, or operation
thereof in a manner or quantity that triggered or would have triggered a reporting
obligation under Section 103 of CERCLA or constituted a reportable event under an existing
permit, or in a manner that would reasonably be expected to require remediation
by the Company under any Environmental Law, nor does the Company know of any such Release
prior to the Company’s ownership, occupancy or operation of any Company Properties.

     4.19.2 To the knowledge of the Company, the operations of the Company presently comply
and, except as set forth on Schedule 4.19.2, have at all times complied with
applicable Environmental Laws except where failure so to comply would not reasonably be
expected to have a Material Adverse Effect. To the knowledge of the Company, there is no
condition in or under any Company Properties at the date of this Agreement (“Current Company
Properties”) that would require remediation under applicable Environmental Law. Except as
set forth on Schedule 4.19.2, the Company has not received any written communication
in the last 10 years from or on behalf of any Governmental Body or other third party: (1) of
any noncompliance of any Current Company Properties or Historical Properties with
Environmental Laws or of any condition thereon that would require remediation under
applicable Environmental Law or (2) that any Current Company Properties, any Historical
Properties or any property to which the Company has directly or indirectly transported or
arranged for the transportation of any Hazardous Material is currently on any federal or
state “Superfund” list. No Current Company Properties is on any federal or state
“Superfund” list.

25

 

     4.19.3 Except as set forth on Schedule 4.19.3, no administrative order, consent
order, settlement agreement, suit or material citation to which the Company is a party with
respect to any Environmental Law, Hazardous Materials or Hazardous Materials Contaminations
has been received by the Company during the last 10 years with respect to or in connection
with the operation of any Current Company Properties or, to the knowledge of the Company,
Historical Properties or any off-site location to which Hazardous Materials used or
generated by the Company have been transported or disposed of or have come to be located.

     4.19.4 Except as set forth on Schedule 4.19.4, to the knowledge of the Company,
all Hazardous Materials used, generated or disposed of by the Company in the last 10 years
have been disposed in compliance in all material respects with all applicable Environmental
Laws except where any such non-compliance would not reasonably be expected to have a
Material Adverse Effect.

     4.19.5 This Section 4.19 contains the only representations and warranties of
the Company with regard to Environmental Laws or Hazardous Materials.

     4.19.6 The term “Company” as used in this Section shall be deemed to include the
Company and the Subsidiary.

     4.20 Insurance. Schedule 4.20 sets forth a complete and accurate list of all
policies of insurance of any kind or nature covering the Company or the Subsidiary or any of their
respective employees, properties or assets, including, without limitation, policies of life,
disability, fire, theft, workers compensations, employee fidelity and other casualty and liability
insurance. All such policies are valid and in full force and effect, and neither the Company nor
its Subsidiary is in default of any provision thereof, except for such defaults as would not,
individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

     4.21 Inventories; Receivables; Payables. Except as set forth in Schedule
4.21:

     4.21.1 The inventories of the Company and its Subsidiary are in good and marketable
condition, and are usable and saleable in the Ordinary Course of Business. Adequate
reserves have been reflected in the Financial Statements for short, obsolete or otherwise unusable
inventory, which reserves were calculated in a manner consistent with past practice and in
accordance with GAAP consistently applied.

     4.21.2 All accounts receivable of the Company and its Subsidiary have arisen from bona
fide transactions in the Ordinary Course of Business consistent with past practice,
including applicable reserves for returns or doubtful accounts reflected thereon, which
reserves were calculated in a manner consistent with past practice and in accordance with
GAAP.

     4.21.3 All accounts payable of the Company and its Subsidiary reflected in the
Financial Statements or arising after the date thereof are the result of bona fide
transactions in the Ordinary Course of Business and have been paid or are not yet due and
payable.

     4.22 Major Customers and Vendors. Schedule 4.22 sets forth: (1) the names of
the top 10 customers of the Company and the Subsidiary (with the term “customer”, for purposes of
this Section, including distributors) by dollar purchase volume during the calendar year 2006
(measured by the net amount invoiced to such party during the fiscal year of the Company and
Subsidiary ended on December 31, 2006); and (2) the names and addresses of the top 10 suppliers to
the Company and Subsidiary from which the Company and Subsidiary ordered raw materials, components,
supplies, merchandise, finished

26

 

goods, other goods and services (collectively, “Goods”) during
calendar year 2006 by dollar purchase volume during such year (measured by the net amount invoiced
to the Company and Subsidiary by such party during the fiscal year of the Company and Subsidiary
ended on December 31, 2006), together with a brief description of the Goods provided. Except as
set forth in Schedule 4.22, neither the Company nor the Subsidiary is engaged in any
material dispute with any customers or suppliers identified on Schedule 4.22. Except as
set forth in Schedule 4.22, neither the Company nor the Subsidiary has received notice of,
or, to Company’s knowledge, obtained credible information reasonably suggesting, the loss of a
supplier or customer identified on Schedule 4.22 or the loss of any group of suppliers or
customers of the Company or the Subsidiary where such loss would have a Material Adverse Effect.
Except as set forth in Schedule 4.22, no supplier is the sole source of supply of any
materials used by the Company or the Subsidiary.

     4.23 Corporate Records. The respective minute books of the Company and the Subsidiary
contain true, complete and accurate records of all meetings and accurately reflect all other
corporate action of the Stockholders and directors of the Company and the Subsidiary. The stock
certificate book and stock transfer ledgers are true, complete and correct.

     4.24 Financial Advisors. No Person has acted, directly or indirectly, as a broker,
finder or financial advisor for the Company, the Subsidiary or the Sellers in connection with the
transactions contemplated by this Agreement and no person is entitled to any fee or commission or
like payment in respect thereof except for BMO Capital Markets.

     4.25 Product Warranties. The standard product or service warranties, indemnifications
and guarantees which the Company and the Subsidiary extend to customers in the Ordinary Course of
Business, copies of which have been delivered to the Purchaser, are identified and described in
Schedule 4.25. No warranties, indemnifications or guarantees are now in effect or
outstanding with respect to the products or services manufactured, produced or performed by the
Company or the Subsidiary, except for the warranties, indemnifications and guarantees identified
and described in Schedule 4.25. Except for product returns, the scope and magnitude of
which are consistent with the product returns experienced by the Company and the Subsidiary prior
to the date hereof, to the knowledge of the Company, the products sold by the Company and the Subsidiary prior
to the date hereof do not have any defects or failure rates that have given rise to material
warranty, product liability or related claims.

     4.26 Bank Accounts; Lockboxes. Schedule 4.26 contains a true, correct and
complete list of each bank account maintained by the Company and the Subsidiary together with a
true, correct and complete list of each bank or other financial institution at which any lock box
for the collection of accounts receivable of the Company or the Subsidiary is maintained, together
with the identity of all Persons authorized to withdraw any funds contained in such accounts or
lockboxes.

     4.27 No Misrepresentation. To the knowledge of the Company and the Sellers : (i),
neither this Agreement (including the Schedules and Exhibits hereto) nor any document, certificate
or instrument furnished in connection therewith contains, with respect to any Seller or the
Company, any untrue statement of a material fact or omits to state a material fact necessary to
make the statements therein not misleading; and (ii) there is no fact known to any Sellers, the
Company or the Subsidiary which has or would reasonably be expected in the future to result in a
Material Adverse Effect and which has not been set forth in this Agreement (including the Schedules
and Exhibits hereto).

	5.	 	REPRESENTATIONS AND WARRANTIES OF PURCHASER

     The Purchaser hereby represents and warrants to the Company and each of the Sellers that:

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     5.1 Organization and Good Standing. The Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware.

     5.2 Authorization of Agreement. The Purchaser has full corporate power and authority
to execute and deliver this Agreement, each Transaction Agreement to which it is a party, and each
other document, instrument or certificate contemplated by this Agreement or to be executed by the
Purchaser in connection with the consummation of the transactions contemplated hereby and thereby
and to consummate the transactions contemplated hereby and thereby. The execution, delivery and
performance by the Purchaser of this Agreement, the Transaction Agreements and each other agreement
to be executed and delivered by the Purchaser in connection with the consummation of the
transactions contemplated hereby has been duly authorized by all necessary corporate action on
behalf of the Purchaser. This Agreement has been, and the Transaction Agreements to be executed
and delivered by the Purchaser in connection with the consummation of the transactions contemplated
hereby will be at or prior to the Closing, duly executed and delivered by the Purchaser and
(assuming the due authorization, execution and delivery by the other parties hereto and thereto)
this Agreement constitutes, and the Transaction Agreements to be executed and delivered by the
Purchaser in connection with the consummation of the transactions contemplated hereby when so
executed and delivered will constitute, legal, valid and binding obligations of the Purchaser,
enforceable against the Purchaser in accordance with their respective terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to rules of law governing specific
performance, to injunctive relief and to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought
in a proceeding at law or in equity).

     5.3 Conflicts; Consents of Third Parties.

          5.3.1 Except as set forth on Schedule 5.3.1 hereto, neither of the execution and
delivery by the Purchaser of this Agreement and the Transaction Agreements executed and delivered
by the Purchaser in connection with the consummation of the transactions contemplated hereby, nor
the compliance by the Purchaser with any of the provisions hereof and thereof will: (1) conflict
with, or result in the breach of, any provision of the constituent documents of the Purchaser, (2)
conflict with, violate, result in the breach of, or constitute a default under any Contract,
instrument or Permit or other obligation to which the Purchaser is a party or by which the
Purchaser or its properties or assets are bound or (3) violate any statute, rule, regulation, order
or decree of any governmental body or authority by which the Purchaser is bound, except, in the
case of clauses (2) and (3), for such violations, breaches or defaults as would not have a material
adverse effect on the business, properties, results of operations, conditions (financial or
otherwise) of the Purchaser and its subsidiaries, taken as a whole.

          5.3.2 Except as set forth in Schedule 5.3.2, no consent, waiver, approval, Order,
Permit or authorization of, or declaration or filing with, or notification to, any Person or
Governmental Body is required on the part of the Purchaser in connection with the execution and
delivery of this Agreement or the compliance by the Purchaser of any of the provisions hereof, the
consummation of the transactions contemplated hereby or the taking of any other action contemplated
hereby, except for compliance with the applicable requirements of the HSR Act and the rules and
regulations promulgated thereunder.

     5.4 Litigation. There is no Legal Proceeding pending or, to the knowledge of the
Purchaser, threatened against the Purchaser or its Affiliates, which, if adversely determined, is
reasonably likely to prohibit or restrain the ability of the Purchaser to enter into this Agreement
or consummate the transactions contemplated hereby.

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     5.5 Investment Intention. The Purchaser is acquiring the Shares for its own account,
for investment purposes only and not with a view to the distribution (as such term is used in
Section 2(11) of the Securities Act of 1933, as amended (the “Securities Act”). The Purchaser
understands that the Shares have not been registered under the Securities Act and cannot be sold
unless subsequently registered under the Securities Act or an exemption from such registration is
available.

     5.6 Financial Advisors. No Person has acted, directly or indirectly, as a broker,
finder or financial advisor for the Purchaser in connection with the transactions contemplated by
this Agreement and no person is entitled to any fee or commission or like payment in respect
thereof.

     5.7 Financial Resources. The Purchaser has sufficient financial resources to
consummate the transactions contemplated by this Agreement.

	6.	 	COVENANTS

     6.1 Access to Information. Prior to the Closing Date, the Purchaser shall be
entitled, through its officers, employees and representatives (including, without limitation, its
legal advisors and accountants), to make such investigation of the properties, businesses and
operations of the Company and its Subsidiary and such examination of the
books, records and financial condition of the Company and its Subsidiary as it reasonably requests
and to make extracts and copies of such books and records. Any such investigation and examination
shall be conducted during regular business hours and under reasonable circumstances, and the
Sellers shall cooperate, and shall direct the Company and its Subsidiary to cooperate, fully
therein. In order that the Purchaser may have full opportunity to make such physical, business,
accounting and legal review, examination or investigation as it may reasonably request of the
affairs of the Company and its Subsidiary, the Sellers shall direct the officers, employees,
consultants, agents, accountants, attorneys and other representatives of the Company and its
Subsidiary to cooperate fully with such representatives in connection with such review and
examination.

     6.2 Conduct of Business Pending Closing.

     6.2.1 Except as otherwise expressly contemplated by this Agreement or with the prior
written consent of the Purchaser, the Sellers shall, and shall direct the Company and its
Subsidiary to:

     (1) conduct the business of the Company and its Subsidiary only in the Ordinary
Course of Business;

     (2) use its commercially reasonable best efforts to: (i) preserve its present
business operations, organization (including, without limitation, management and the
sales force) and goodwill of the Company and its Subsidiary; and (ii) preserve its
present relationship with Persons having material business dealings with the Company
and its Subsidiary; and

     (3) maintain the books, accounts and records of the Company and its Subsidiary
in the Ordinary Course of Business.

     6.2.2 Except as set forth in Section 6.2.3 and except as otherwise expressly
contemplated by this Agreement or with the prior written consent of the Purchaser, the
Sellers shall not, and shall cause the Company and its Subsidiary not to:

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          (1) declare, set aside, make or pay any dividend or other distribution in
respect of the capital stock of the Company or repurchase, redeem or otherwise
acquire any outstanding shares of the capital stock or other securities of, or other
ownership interests in, the Company or its Subsidiary;

          (2) transfer, issue, sell or dispose of any shares of capital stock or other
securities of the Company or its Subsidiary or grant options, warrants, calls or
other rights to purchase or otherwise acquire shares of the capital stock or other
securities of the Company or its Subsidiary;

          (3) effect any recapitalization, reclassification, stock split or like change in
the capitalization of the Company or its Subsidiary;

          (4) amend the Organizational Documents;

          (5) enter into any Contract that, upon execution, would constitute a Material
Contract;

          (6) incur, assume or guarantee any Debt other than in the Ordinary Course of
Business;

          (7) create, assume or incur any Lien on any material asset of the Company or the
Subsidiary other than the Permitted Exceptions;

          (8) grant any increase in compensation or benefits to employees or officers of
the Company or the Subsidiary, pay any severance or termination pay or any bonus,
enter into or amend any severance agreements or change in control agreements with
officers or employees of the Company or the Subsidiary;

          (9) adopt any new Employee Benefit Plans or amend or terminate any existing
Employee Benefit Plans (other than as set forth in all of the Schedules to
Section 4.15);

          (10) acquire any material properties or assets or sell, assign, transfer,
convey, lease or otherwise dispose of any of the material properties or assets of the
Company and its Subsidiary;

          (11) permit the Company or its Subsidiary to enter into or agree to enter into
any merger or consolidation with, any corporation or other entity, or engage in any
material new line of business or invest in, make a loan, advance or capital
contribution to, or otherwise acquire the securities of any other Person; or

          (12) take any other action or omit to take any other action that would
reasonably be expected to have a Material Adverse Change.

     6.2.3 Notwithstanding Sections 6.2.1 and 6.2.2, but subject to the Shareholders
Agreement, the Phantom Stock Plans and applicable law, at any time prior to the Closing
Date, the Sellers may cause the Company and the Subsidiary: (1) to pay the bonuses described
in Section 4.9; and (2) to distribute, and the Company and the Subsidiary may
distribute, any amount to the Sellers (including, without limitation, distributions to
enable the Sellers to pay Taxes or estimated Taxes based upon the operations of the Company and the Subsidiary);

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provided that, notwithstanding the foregoing, the Sellers shall not cause the Company or the
Subsidiary to pay such bonuses or make any distribution if and to the extent that, following
such bonus payment or distribution, the aggregate amount of cash or immediately available
funds held in all bank accounts maintained by the Company and the Subsidiary is less than
the aggregate dollar amount of all outstanding checks written, as well as all payment
instructions (including standing and automatic payment instructions) given, by the Company
or the Subsidiary and not yet debited from the actual amount of the funds held by the
Company and the Subsidiary in such bank accounts.

     6.2.4 Notwithstanding Sections 6.2.1 and 6.2.2, the Sellers shall cause
the Company and the Subsidiary, as the case may be, to: (1) pay in full, prior to the
Closing Date, all amounts payable to members of the Board of Directors of the Company and
members of the Board of Directors of the Subsidiary for services rendered on or prior to the
Closing Date; and (2) insure that, following the payment of the amounts described in
Section 6.2.4(1) above, the aggregate amount of cash or immediately available funds
held in all bank accounts maintained by the Company and the Subsidiary is not less than the
aggregate dollar amount of all outstanding checks written, as well as all payment
instructions (including standing and automatic payment instructions) given by the Company or
the Subsidiary and not yet debited from the actual amount of the funds held by the Company
and the Subsidiary in such bank accounts.

     6.3 No Solicitation. None of the Company, the Subsidiary, the Sellers’ or any of
their respective directors, officers, employees or agents, as the case may be, shall, directly or
indirectly, encourage, solicit, initiate or enter into any discussions or negotiations concerning,
any disposition of all or substantially all of the Shares or assets of the Company or the
Subsidiary (other than pursuant to this Agreement), or any proposal therefor, or furnish or cause
to be furnished any information concerning the Shares, the Company or the Subsidiary to any party
in connection with any transaction involving the acquisition of the Shares or the assets of the
Company or the Subsidiary by any person other than the Purchaser. The Sellers will promptly inform
the Purchaser of any inquiry (including the terms thereof and the Person making such inquiry) that
any Seller, the Company or the Subsidiary may receive or learn of in respect of any such proposal.

     6.4 Consents. The Company shall use its commercially reasonable best efforts, and the
Purchaser shall cooperate with the Company and the Sellers, to obtain at the earliest practicable
date all consents and approvals required to consummate the transactions contemplated by this
Agreement, including, without limitation, the consents and approvals referred to in Section
4.5.2 hereof.

     6.5 Filings with Governmental Bodies. Each of the Purchaser, the Company (if
necessary) and the Indemnifying Sellers shall: (1) make or cause to be made all filings required of
each of them or any of their respective Affiliates under the HSR Act or other applicable antitrust
Laws with respect to the transactions contemplated hereby as promptly as practicable and, in any
event, not later than 10 Business Days after the date of this Agreement in the case of all filings
required under the HSR Act and within four weeks in the case of all other filings (if any) required
by other such antitrust Laws; (2) comply at the earliest practicable date with any request under
the HSR Act or other such antitrust Laws for additional information, documents, or other materials
received by each of them or any of their respective subsidiaries from the Federal Trade Commission
(the “FTC”), the Antitrust Division or any other Governmental Body in respect of such filings or
such transactions; and (3) cooperate with each other in connection with any such filing (including,
to the extent permitted by applicable law, providing copies of all such documents to the non-filing parties prior to filing and considering all reasonable
additions, deletions or changes suggested in connection therewith). The filing fees payable in
connection with the filing of the HSR Act Notification and Report form shall be paid by the
Purchaser.

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     6.6 Discharge of Liens. On or before the Closing Date, the Sellers will take such
action as may be necessary to discharge any Lien (other than Permitted Exceptions) on the assets
and properties of the Company and the Subsidiary.

     6.7 Section 338(h)(10) Election. Subject to compliance by the Purchaser with the Tax
Timetable, with respect to the acquisition of the Shares hereunder, the Purchaser reserves the
right to make an election under Section 338(h)(10) of the Code at any time on or prior to the due
date for making any such election as provided for by Section 338(h)(10) of the Code and the
Regulations thereunder; provided, however, that the Sellers shall have no obligation to cooperate
with the Purchaser with respect to such an election if (1) the Purchaser has not complied in all
material respects with the requirements of the Tax Timetable required to be performed by the
Purchaser or (2) the Sellers have not received the Tax Indemnification Payment by April 11, 2008.
If the Purchaser makes such election and the Purchaser makes the Tax Indemnification Payment (as
defined below) to each of the Sellers, the Sellers and the Purchaser shall jointly make an election
under Section 338(h)(10) of the Code (and any corresponding elections under state or local tax law)
(collectively, a “Section 338(h)(10) Election”). The term “Tax Indemnification Payment” shall
mean, for each Seller, the amount that the Purchaser shall be required to pay to such Seller equal
to the aggregate amount reasonably required to reimburse such Seller on a net, after-tax basis for
any cost, loss, liability or expense (including any increase in liability for Taxes, penalties, and
interest and any reasonable legal and accounting fees) reasonably incurred in connection with: (1)
the aforesaid Section 338(h)(10) Election, and (2) the receipt not later than April 11, 2008 by
such Seller from the Purchaser of the Tax Indemnification Payment. If the Purchaser makes a Tax
Indemnification Payment to a Seller (or, as provided by the following paragraph), to the Tax Escrow
Agent on or prior to April 11, 2008, such Seller will take, and will cooperate with the Purchaser
and with each other Seller to take, all actions necessary and appropriate (including filing such
forms, returns, elections, schedules and other documents as may be required) to effect and preserve
a timely Section 338(h)(10) Election in accordance with the Code and the regulations thereunder, or
any successor provisions. If the Purchaser has elected to make the Section 338(h)(10) Election,
and makes the Tax Indemnification Payment to each of the Sellers, the Sellers and the Purchaser
shall, for Tax purposes, report the sale of the Shares pursuant to this Agreement in a manner which
is consistent with the Section 338(h)(10) Election and shall take no position contrary thereto or
inconsistent therewith in any Tax return or in any discussion with or proceeding before any taxing
authority, or otherwise. Promptly after deciding to make a Section 338(h)(10) Election, the
Purchaser shall notify the Sellers in writing of such decision so that each Seller has sufficient
time to calculate the Tax Indemnification Payment to be made by the Purchaser to such Seller but in
no event later than the date specified in the Tax Timetable. As soon as practicable following the
receipt by such Seller of the irrevocable written notice from the Purchaser of its decision to make
the 338(h)(10) Election, but in any event not later than the date specified in the Tax Timetable
for the same, each Seller shall deliver a written statement containing the amount of the Tax
Indemnification Payment which is claimed to be due to such Seller and the manner in which the
amount of such Tax Indemnification Payment has been calculated to the Purchaser.

     If the Purchaser disagrees with a Seller’s calculation of the Tax Indemnification Payment,
then the Purchaser shall pay (1) to such Seller the amount of the Tax Indemnification Payment as
calculated by the Purchaser for such Seller (the “Purchaser’s Amount”) and (2) to the Tax Escrow
Agent an amount equal to (i) the amount of the Tax Indemnification Payment which the Purchaser
disagrees with (and as calculated by such Seller) less (ii) the Purchaser’s Amount. The Tax Escrow
Agent shall agree to hold the Purchaser’s Amount for the Purchaser and such Seller until the
Purchaser and such Seller resolve their differences with respect to the amount of the disputed Tax Indemnification Payment in accordance
with the procedures described in Section 2.3.4 (with respect to the calculation of the
Closing Net Working Capital). Upon payment by the Purchaser to the Tax Escrow Agent of the amount
of the disputed Tax Indemnification Payment, the Seller that has computed the Tax Indemnification
Payment which is in

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dispute shall take, and cooperate with the Purchaser and each other Seller to
take, all actions necessary and appropriate to effect and preserve a timely Section 338(h)(10)
Election.

     By way of clarification, if the Purchaser elects to make the Section 338(h)(10) Election, the
Tax Indemnification Payment that is to be made by the Purchaser to each such Seller shall be
computed individually for each such Seller, in an amount which is not only necessary to offset
fully any additional Tax (whether denominated as income, excise, sales or use, transfer, Built-In
Gains (net of any deduction available to the Sellers which is attributable to the Company’s payment
of such Built-in-Gains Tax), penalty and interest or other Tax and regardless of whether such
additional Tax, penalty or interest is imposed by any Federal, state or local governmental
authority) incurred by such Seller as a result of the Section 338(h)(10) Election having been made,
but also any additional Tax (whether denominated as income, excise, sales or use, transfer,
Built-In Gains (net of any deduction available to the Sellers which is attributable to the
Company’s payment of such Built-in-Gains Tax), penalty or interest or other Tax and regardless of
whether such additional Tax is imposed by any Federal, state or local governmental authority)
attributable to the receipt by each such Seller of the Tax Indemnification Payment. The Tax
Indemnification Payment for a Seller shall be paid by wire transfer of immediately available funds
to such Seller (or, if applicable, to the Tax Escrow Agent) at the Account specified in the Wiring
Instructions, no later than April 11, 2008. By way of further clarification, it is the intention
of all the parties that the Tax Indemnification Payment that will be paid by the Purchaser to each
of the Sellers will be an amount sufficient so that each Seller will receive the same after-tax
proceeds from the sale of its Shares, after payment of all such additional Taxes (including
penalties, interest, and reasonable legal and accounting fees), that it would have received had the
Section 338(h)(10) Election not been made. If any subsequent adjustment made by any taxing
authority to the Taxes payable as a result of the Section 338(h)(10) Election increases the Taxes
payable by the Sellers as a result of the 338(h)(10) Election, other than any adjustment to the
amount of the aggregate payments by the Company under the Phantom Stock Plans which is deductible,
the Purchaser shall pay an amount to the Sellers to compensate for such increase within 30 days of
written demand by the Sellers Representative. If any such adjustment causes a decrease in the
Taxes payable by the Sellers as a result of the Section 338(h)(10) Election, then the Sellers shall
reimburse the Purchaser for such amount within 30 days following Purchaser’s delivery of written
notice of such determination to the Sellers’ Representative.

     If the Purchaser elects to make the Section 338(h)(10) Election, then the consideration paid
for the Shares (and any other amounts required to be capitalized pursuant to Section 338 of the
Code) shall be allocated among the Company’s and Subsidiary’s assets in accordance with the
principles of Section 338 of the Code and the regulations thereunder. The Purchaser shall prepare,
using its goods faith efforts, and deliver to the Sellers a proposed allocation of such
consideration in accordance with the Tax Timetable. Unless, within 10 days from receipt thereof,
the Sellers disagree in writing with such allocation, the amount so allocated to each asset shall
be as proposed by the Purchaser and shall constitute the agreed upon allocation. The Purchaser and
the Sellers shall utilize the allocation of consideration described in and agreed upon pursuant to
this Section 6.7 in the preparation of all Tax Returns or forms and for all other Tax
purposes, including, but not limited to, the preparation of IRS Form [8883. Neither the Purchaser
nor the Sellers shall agree to any adjustment relating to the manner in which the consideration has
been allocated as set forth in this Section 6.7 without the prior written approval of the
other, which approval shall not be unreasonably withheld. The parties agree to consult and resolve
in good faith any disputes in allocating the consideration under this Section 6.7. Any
adjustment to the Purchase Price paid pursuant to this Agreement shall result in an appropriate
adjustment to such allocation.

     For purposes of the Tax Indemnification Payment (including the calculation thereof) under this
Section 6.7, the terms “Seller” and “Sellers” shall mean the grantor, the beneficiaries or
any other deemed owner of such Seller.

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     6.8 Tax Benefit Payment.

          6.8.1 If the Purchaser does not elect to make a Section 338(h)(10) Election as contemplated
by Section 6.7, then the Purchaser shall, not later than the due date (without extension)
for filing its Tax Return for the year ending December 31, 2007, pay to each of the Sellers, a Pro
Rata portion of the Tax Benefit that will be available to the Company and/or the Purchaser (or
their respective successors or assignees) for the tax period ending December 31, 2007, arising from
the aggregate amount paid by the Company or the Purchaser (or their respective successors or
assignees) and included in the calculation of the Tax Benefit.

          6.8.2 In addition, if the Purchaser does not elect to make a Section 338(h)(10) Election, the
Sellers shall, promptly following the last day for filing of the Section 338(h)(10) Election set
forth in the Tax Timetable, take such action as may be necessary to apply to the applicable
Governmental Body for a refund of the full amount of the payment, if any, made by the Purchaser as
an estimate of the amount of the Built-in-Gains Tax payable by the Company. If and to the extent
that the amount of any refund received by the Company is less than the payment made by the
Purchaser as an estimate of the Built-in-Gains Tax payable by the Company, the Sellers shall,
jointly and severally pay to the Company, within 30 days following delivery by the Purchaser to the
Sellers’ Representative of a written demand for payment, the amount by which the amount paid by the
Purchaser as an estimate of the Built-in-Gains Tax payable by the Company exceeds the amount of the
refund received by the Company.

          6.8.3 If the Purchaser makes a Section 338(h)(10) Election and the IRS denies a deduction to
the Sellers on their final S Corporation Tax Return for all or any part of the payments made to the
PSP Holders, the Purchaser shall cause the Company to pay to the Sellers the Tax Benefit, if any,
attributable to the Company’s deduction of the portion of the payment made to the PSP Holders that
was disallowed by the IRS but only if the IRS approves a full current deduction to the Purchaser,
for the first Tax period following the Closing Date, of the portion of the Phantom Stock Plan
payment for which the deduction has been disallowed to the Sellers, in addition to a deduction as
goodwill of an amount equal to: (1) the portion of the Purchase Price used to make the Phantom
Stock Payments; reduced by (2) the portion of the Phantom Stock Plan payment which the IRS has
approved as being deductible by the Purchaser. The payment required to be made by the Company to
the Sellers pursuant to this Section 6.8.3 shall be paid to the Sellers not later than 30
days after the IRS allows the Purchaser or the Company to claim such deduction.

     6.9 Payment of Withholding Taxes. On the Closing Date the Sellers and the Purchaser
shall cooperate with each other and take such action as may be reasonably required to cause the
employee portion of all applicable withholding taxes payable in connection with the payments made
under the Phantom Stock Plans and the employer portion of all applicable withholding taxes payable
in connection with the payments made under the Phantom Stock Plans to be paid, on the Closing Date
by check or other payment authorization, from funds paid to the Company by Purchaser pursuant to
Section 2.4.4.

     6.10 Post Closing Severance Payments. The Sellers shall be responsible for and pay,
promptly following the Closing Date, any and all severance payments payable to the individuals
identified in  Schedule 6.10 as required by the Terms of Florence Corporation’s
Non-Solicitation, Non-Competition and Confidentiality Agreement.

     6.11 Other Actions. Each of the Sellers and the Purchaser shall use commercially
reasonable efforts to (i) take all actions necessary or appropriate to consummate the transactions
contemplated by this Agreement and (ii) cause the fulfillment at the earliest practicable date of
all of the conditions to their respective obligations to consummate the transactions contemplated
by this Agreement.

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     6.12 Preservation of Records. Subject to Section 10.2 hereof (relating to
the preservation of Tax records), the Sellers and the Purchaser shall preserve and keep the records
held by them relating to the business of the Company and its Subsidiary for a period of 7 years
from the Closing Date and shall make such records and personnel available to the other as may be
reasonably required by such party in connection with, among other things, any insurance claims by,
legal proceedings against or governmental investigations of the Sellers or the Purchaser or any of
their Affiliates or in order to enable the Sellers or the Purchaser to comply with their respective
obligations under this Agreement.

     6.13 Publicity. Prior to the Closing Date, none of the Sellers, the Company, the
Subsidiary, nor the Purchaser shall issue any press release or public announcement concerning this
Agreement or the transactions contemplated hereby without obtaining the prior written approval of
the other party hereto, which approval will not be unreasonably withheld or delayed, unless, in the
sole judgment of the Purchaser or the Sellers, disclosure is otherwise required by applicable Law
or by the applicable rules of any stock exchange, provided that, to the extent required by
applicable Law, the party intending to make such release shall use its best efforts consistent with
such applicable Law to consult with the other party with respect to the text thereof. Following
the Closing, the Purchaser shall use its best efforts consistent with applicable law to consult
with the Sellers’ Representative and the PR Holder regarding any regulatory filings, including
securities laws filings, regarding the transactions contemplated by this Agreement, and, if this
Agreement or any portion hereof is required to be included in any such filing, any redactions of
provisions of this Agreement.

     6.14 Environmental Matters. The Company shall permit, and the Sellers shall cause the
Company to permit, the Purchaser and the Purchaser’s environmental consultant, to conduct a Phase I
investigation of the environmental conditions of any real property owned, operated or leased by or
for the Company or its Subsidiary and the operations conducted thereat (subject to any limitations
contained in valid, previously executed leases).

     6.15 Updated Schedules. All of the Schedules shall be updated by the Company
and the Sellers, as provided in this Section 6.15, and delivered to the Purchaser at the
Closing (collectively, the “Updated Schedules”). The Updated Schedules shall be updated as of the
Closing Date to reflect changes occurring between the date hereof and the Closing Date to the
information set forth in relation to the corresponding representations and warranties;
provided, that, no such changes or Updated Schedules shall have a Material Adverse Effect
on the representations and warranties (and corresponding Schedules) made as of the date hereof and,
without the consent of the Purchaser, no such changes or Updated Schedules shall be deemed or
construed to cure any breach of any representation or warranty made as of the date hereof.

     6.16 Confidentiality. The parties hereto shall not, without the prior written
consent of the other parties hereto disclose or acquiesce in the disclosure by any person or
entity, or use or enable the use to the competitive detriment of the other parties hereto, any
non-public information regarding the other parties hereto or the financial condition of such other
parties, contained in any documents or otherwise furnished at any time pursuant to the provisions of this Agreement, including,
without limitation, all information and documents furnished pursuant to Sections 6.7, 6.8 and
9, except to the legal counsel, accountants, financial advisors, investment bankers and the
other authorized agents and representatives of the parties hereto, and to such persons only to the
extent required for activities directly related to the obligations of the receiving parties under
this Agreement, except to the extent such information has been publicly disclosed or is otherwise
in the public domain or is required to be disclosed by law or by a court of competent jurisdiction
or Governmental Authority.

7. CONDITIONS TO CLOSING

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     7.1 Conditions Precedent to Obligations of Purchaser. The obligation of the
Purchaser to consummate the transaction contemplated by this Agreement is subject to the
fulfillment, on or prior to the Closing Date, of each of the following conditions (any or all of
which may be waived by the Purchaser in whole or in part to the extent permitted by applicable
law):

     (1) all representations and warranties of the Company and the Sellers contained herein
qualified as to materiality shall be true and correct, and the representations and
warranties of the Company and the Sellers contained herein not qualified as to materiality
shall be true and correct in all material respects, at and as of the Effective Time with the
same effect as though those representations and warranties had been made again at and as of
that time;

     (2) the Company and the Sellers shall have performed and complied in all material
respects with all obligations and covenants required by this Agreement to be performed or
complied with by them on or prior to the Closing Date;

     (3) the Purchaser shall have been furnished with certificates (dated the Closing Date
and in form and substance reasonably satisfactory to the Purchaser) executed by each Seller
certifying as to the fulfillment of the conditions specified in Sections 7.1.(1) and
7.1.(2) hereof;

     (4) the Purchaser shall have been furnished with certificates from the Company,
executed by its President and Secretary, certifying as to the fulfillment of the conditions
specified in Sections 7.1(1) and 7.1(2) hereof;

     (5) no action, suit or proceeding shall have been instituted by any Person before any
Governmental Body seeking to restrain, modify or prevent the carrying out of the
transactions contemplated hereby, or seeking damages or a discovery order in connection with
such transactions, or that has or may have, in the reasonable opinion of the Purchaser, a
Material Adverse Effect;

     (6) certificates representing 100% of the Shares shall at the Closing be validly
delivered and transferred to the Purchaser;

     (7) the Purchaser shall have obtained all consents and waivers referred to in
Section 5.3 hereof with respect to the transactions contemplated by this Agreement
and the Purchaser Documents;

     (8) except for bonus payments and distributions permitted under Section 6.2.3,
there shall not have been or occurred any Material Adverse Change between the date of this
Agreement and the Closing Date;

     (9) the Sellers shall have obtained all consents and waivers referred to in Section
4.5 hereof, in a form reasonably satisfactory to the Purchaser, with respect to the
transactions contemplated by this Agreement and the Seller Documents;

     (10) the Sellers shall have provided the Purchaser with an affidavit of non-foreign
status that complies with Section 1445 of the Code;

     (11) the Purchaser shall have received the items set forth in Section 8.1; and

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     (12) the waiting period under the HSR Act shall have expired or early termination shall
have been granted.

     7.2 Conditions Precedent to Obligations of Sellers. The obligations of the Sellers to
consummate the transactions contemplated by this Agreement are subject to the fulfillment, prior to
or on the Closing Date, of each of the following conditions (any or all of which may be waived by
the Sellers in whole or in part to the extent permitted by applicable law):

     (1) all representations and warranties of the Purchaser contained herein qualified as
to materiality shall be true and correct, and all representations and warranties of the
Purchaser contained herein not qualified as to materiality shall be true and correct in all
material respects, at and as of the Effective Time with the same effect as though those
representations and warranties had been made again at and as of that date;

     (2) the Purchaser shall have performed and complied in all material respects with all
obligations and covenants required by this Agreement to be performed or complied with by the
Purchaser on or prior to the Closing Date;

     (3) the Sellers shall have been furnished with certificates (dated the Closing Date and
in form and substance reasonably satisfactory to the Sellers) executed by the President and
Chief Financial Officer of the Purchaser certifying as to the fulfillment of the conditions
specified in Sections 7.2.(1) and 7.2.(2);

     (4) there shall not be in effect any order by a Governmental Body of competent
jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the
transactions contemplated hereby;

     (5) the waiting period under the HSR Act shall have expired or early termination shall
have been granted;

     (6) the Sellers shall have received a copy of each agreement, amendment or other
document that, as of the Closing Date, terminates, assigns, transfers or otherwise amends,
modifies or supplements any existing agreement, instrument or document relating to the IRB
and to which the Company or the Subsidiary is a party; and

     (7) the Sellers’ Representative shall have received the items set forth in Section
8.2, in form and substance satisfactory to the Sellers’ Representative.

8. DOCUMENTS TO BE DELIVERED

     8.1 Documents to Be Delivered by Sellers. At the closing, the Sellers shall deliver,
or cause to be delivered, to the Purchaser the following:

     (1) stock certificates representing the Shares, duly endorsed in blank or accompanied
by stock transfer powers and with all requisite stock transfer tax stamps attached;

     (2) the certificates referred to in Section 7.1(3) and 7.1(4);

     (3) the opinion of Masuda, Funai, Eifert & Mitchell, Ltd., special counsel to the
Sellers, in a form customary for transactions of the type contemplated by this Agreement;

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     (4) copies of all consents and waivers referred to in Section 7.1.(7) hereof;

     (5) a duly executed W-9 from each beneficiary of each Seller;

     (6) certificates of good standing with respect to the Company issued by the Secretary
of the State of Illinois and with respect to the Subsidiary issued by the Secretary of State
of Kansas;

     (7) a written resignation from each director and officer of the Company and the
Subsidiary;

     (8) an employment arrangement between David Dailey and the Company (including a
release and non-competition agreement) satisfactory to the Purchaser and David Dailey;

     (9) from each Employee that is a party to a Salary Continuation Death Benefit Only
Plan, an executed waiver and release of the requirement set forth in the paragraph thereto
entitled “Successor Companies”;

     (10) the Escrow Agreement, duly executed by the Seller’s Representative (on behalf of
the Sellers), the PR Holder and the Escrow Agent;

     (11) from each of Lloyd Schooley, Darlene Schooley, Deborah Schooley, David Schooley,
Douglas Schooley and Darren Schooley, a duly executed Non-Competition Agreement;

     (12) from Lloyd Schooley, such documents as may be required to release the Company from
any obligation to pay Lloyd Schooley any amount he might be entitled to receive from the
Company under the terms of the Lloyd Schooley Deferred Compensation Plan; provided that,
nothing in this Section shall be deemed to require that Lloyd Schooley release his right to
receive any payments he may be entitled to under the profit sharing plan maintained by the
Company, under the 401(k) plan maintained by the Company, under the individual retirement
account established for Lloyd Schooley in connection with the termination of the defined
benefit pension plain maintained by the Company or under the trust established in connection
with the Lloyd Schooley Deferred Compensation Plan;

     (13) a termination of the Shareholders Agreement;

     (14) the Wiring Instructions; and

     (15) such other documents as the Purchaser shall reasonably request.

     8.2 Documents to Be Delivered by Purchaser. At the Closing, the Purchaser shall
deliver to the Sellers the following:

     (1) evidence of the wire transfers referred to in Section 2.4 hereof;

     (2) the certificates referred to in Section 7.2.(3) hereof;

     (3) a certificate from the Secretary of the Purchaser to which is attached a true and
correct copy of each the constituent documents of the Purchaser;

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     (4) the Escrow Agreement, duly executed by the Purchaser and the Escrow Agent;

     (5) the opinion of Lippes Mathias Wexler Friedman LLP, special counsel to the
Purchaser, in a form customary for transactions of the type contemplated by this Agreement;
and

     (6) such other documents as the Sellers shall reasonably request.

9. INDEMNIFICATION

     9.1 Indemnification.

     9.1.1 Indemnification by Sellers. Subject always to Sections 9.2 and
9.3, each Indemnifying Seller, severally, but not jointly, in proportion to such
Indemnifying Seller’s Pro Rata share of the Indemnified Losses (as defined below), and the
Company shall indemnify and hold the Purchaser, the Company, the Subsidiary and their
respective directors, officers, employees, Affiliates, agents, successors and assigns
(collectively, the “Purchaser Affiliates”) harmless from and against any and all notices,
actions, causes of action, suits, proceedings, claims, demands, obligations, assessments,
judgments, damages, losses, costs, penalties and expenses, including reasonable attorneys’
and other professionals’ fees and disbursements (collectively, “Indemnified Losses”)
resulting from:

          (1) the failure of any representation or warranty of the Indemnifying Sellers or
the Company set forth in Section 4 hereof, other than representations and
warranties contained in Section 4.10, or any representation or warranty
contained in any certificate delivered by or on behalf of the Sellers or the Company
pursuant to this Agreement, to be true and correct as of the date made;

          (2) the failure prior to the Closing Date of the Company to file on a timely
basis any required Form 5500 Annual Return/Reports of any Employee Benefit Plan that
was required to be filed by the Company prior to the Closing Date for any Employee
Benefit Plan that is a welfare benefit plan under Section 3(1) of ERISA and the
regulations thereunder, including any penalties that may be imposed upon the Company
for late filings of such Form 5500 Annual Returns/Reports permitted under the U.S.
Department of Labor Delinquent Filer Voluntary Compliance (DFVC) Program;

          (3) the breach of any covenant or other agreement on the part of the Sellers
under this Agreement or any other agreement entered into between the Company and the
Sellers or any of the beneficiaries of the trusts comprising the Sellers in
connection with the closing of the transactions contemplated by this Agreement; and

          (4) (i) the failure of any representation or warranty made by the Indemnifying
Sellers or the Company in Section 4.10 hereof to be true and correct; and
(ii) any Taxes payable by the Company or the Subsidiary for any Tax period (or
portion thereof) ending prior to or on the Closing Date (if a Section 338(h)(10)
Election is made) or the day prior to the Closing Date (if no Section 338(h)(10)
Election is made) to the extent such Taxes are not taken into account as a current
liability for purposes of determining Net Working Capital (other than the amount of
Taxes payable by the Company pursuant to Section 1374 of the Code if a Section
338(h)(10) Election is made). For this purpose, in the case of a Tax period that
begins before and ends after the Closing Date, the amount of Taxes attributable to
the period prior to the Closing Date shall be determined (A) in the case of any Taxes
based on or measured by income or receipts, by closing the books of the

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Company and the Subsidiary as of the close of business on the Closing Date (if a Section
338(h)(10) Election is made) or the day prior to the Closing Date (if no Section
338(h)(10) Election is made) and (B) in the case of all other Taxes, by multiplying
such Taxes by a fraction the numerator of which is the number of days from the
beginning of such Tax period through the close of business on the Closing Date (if a
Section 338(h)(10) Election is made) or the day prior to the Closing Date (if no
Section 338(h)(10) Election is made) and the denominator of which is the total number
of days in such Tax period.

     9.1.2 Indemnification by Purchaser. Subject always to Section 9.2 and
9.3, the Purchaser shall indemnify and hold each of the Sellers, the PSP Holders and
their respective Affiliates, agents, successors and assigns harmless from and against any
and all Indemnified Losses resulting from:

          (1) the failure of any representation or warranty of the Purchaser set forth in
Section 5, or any representation or warranty contained in any certificate
delivered by or on behalf of the Purchaser pursuant to this Agreement, to be true and
correct as of the date made;

          (2) the breach of any covenant or other agreement on the part of the Purchaser
under this Agreement;

          (3) any event, circumstance, occurrence or condition that occurs on or after the
Closing Date and is attributable to the ownership, holding, leasing, possession,
operation, transfer, disposition, shutting down, liquidation or abandonment directly
or indirectly by the Purchaser, on or after the Closing Date of: (i) any of the
Shares; (ii) the assets of the Company or the Subsidiary; (iii) the trade or business
of the Company or the Subsidiary; or (iv) the operations, results of operations,
financial reporting or tax assets or liabilities of the Company or the Subsidiary; or

          (4) if the Purchaser has notified the Seller of the Purchaser’s decision to
make a Section 338(h)(10) Election, the failure of the Purchaser: (i) to make such
election (other than as a result of the Sellers’ failure to perform their
obligations under Section 6.7) or (ii) to pay the Tax Indemnification Payment to the
Sellers on or prior to April 11, 2008.

     9.1.3 Furthermore, from and after the Closing Date, the Company and the Subsidiary
shall indemnify and hold harmless the current and former directors and officers of the
Company and the Subsidiary for actions or omissions by such Persons in their capacities as
directors and officers of the Company or the Subsidiary, and provide to the current and
former directors and officers of the Company and the Subsidiary exculpation or advancement
of expenses existing in favor of current and former directors and of the Company and the
Subsidiary, to the same extent and subject to the same conditions provided under the
“Organization Documents” as in effect on the date of this Agreement and relating to acts or
omissions occurring at or prior to the Effective Time; provided, however, that (1) any
determination required to be made with respect to whether an indemnified Person’s conduct
complies with standards set forth in (as applicable) the Illinois Business Corporation Act,
as amended, the Kansas General Corporation Code, as amended, or the Organizational
Documents, as the case may be, shall be made by independent legal counsel selected by the
indemnified Person, paid for by the Company, and reasonably acceptable to the Purchaser; (2)
the provisions of this Section 9.1.3 shall not limit or impair any other claims or
rights available to any indemnified Person; and (3) the provisions of this Section
9.1.3 and the obligations of the Purchaser, the Company and the Subsidiary hereunder
shall not limit, impair or

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supersede any claims or rights of the Purchaser under Section
9.1.2. The provisions of this Section 9.1.3 are intended to be for the benefit
of, and shall be enforceable by, the Company’s and the Subsidiary’s current and former
directors and officers.

     9.2 Limitations on Indemnification.

     9.2.1 Provided that no claim for payment of a Tax Indemnification Payment has been made
by a Seller against the Purchaser, the obligation of the Purchaser to pay to each Seller the
amount of the Tax Indemnification Payment shall terminate and expire 60 days following the
expiration of the statute of limitations applicable to the assessment and collection of
Taxes for the tax year of the Sellers in which the Closing Date occurs.

     9.2.2 The Indemnifying Sellers shall not have any liability under Section 9.1.1
nor shall the Purchaser be entitled to indemnification for any Indemnified Losses based
upon, attributable to or resulting from matters within the actual knowledge of the Purchaser
at the Effective Time or accounted for or included in the calculation of the Purchase Price
pursuant to the procedures of Section 2.3. Notwithstanding anything to the contrary
contained in Section 9.1.1, the obligation of the Company to indemnify any party
identified in Section 9.1.1, shall terminate, expire and cease to exist at the
Effective Time.

     9.2.3 Except as otherwise set forth above, an Indemnifying Party shall not have any
liability under Section 9.1.1(1) or Section 9.1.2(1) hereof unless: (1) the
aggregate amount of Indemnified Losses to the indemnified parties (“Collectible Damages”),
as finally determined to arise thereunder resulting from the failure of any representation
or warranty to be true and correct exceeds $15,000 (each breach, non-fulfillment or other
indemnified matter described in Section 9.1.1(1) or Section 9.1.2(1) for
which the Collectible Damages exceeds such amount being referred to as “Covered Breach”),
and (ii) the aggregate amount of Indemnified Losses, collectively, resulting from Covered
Breaches (including the first $15,000 of each Covered Breach), exceed $1,000,000 (the
“Deductible”); it being understood that, if the aggregate amount of Indemnified Losses
attributable to Covered Breaches exceeds the Deductible, the Indemnified Party shall only be
entitled to recover the amount by which the aggregate amount of Indemnified Losses
attributable to Covered Breaches exceeds the Deductible. Notwithstanding the foregoing,
the obligation of an Indemnifying Party to indemnify the Indemnified Party from and against
Indemnified Losses arising from any matter other than the matters described in Section
9.1.1(1) and Section 9.1.2(1) above shall not, except as set forth in the proviso to this
sentence, be limited to the extent that such Indemnified Losses are less than $15,000 or
less than the amount of the Deductible, it being the intent of this sentence that an
Indemnified Party shall be entitled to be indemnified from and against the full amount of
all Indemnified Losses suffered by such Indemnified Party as a result of all matters for
which indemnification is provided for by Section 9.1.1 and Section 9.1.2
hereof other than the matters described in Section 9.1.1(1) and Section
9.1.2(1) above, whether or not such Indemnified Losses exceed the Deductible and whether
or not such Indemnified Losses are Covered Breaches provided, however, that in no event
shall the aggregate obligations of the Indemnifying Sellers with respect to indemnification
relating to all matters described in: (I) Section 9.1.1 (other than those under
Section 9.1.1(4)) exceed $11,800,000; and (II) Section 9.1.1(4) exceed
$20,000,000.

     9.2.4 The Indemnifying Sellers acknowledge and agree that the maximum aggregate amount
of the Indemnified Losses that the Indemnifying Sellers may be obligated to pay exceeds the
portion of the Purchase Price that is to be paid to the Escrow Agent. Accordingly, if the
aggregate amount of the Indemnified Losses payable by the Sellers under this Section
9 exceeds the amount held by the Escrow Agent under the Escrow Agreement, each of the
Indemnifying

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Sellers shall be liable for its Pro Rata share of the amount of any such
excess. Each Indemnifying Seller shall pay its share of any such excess to the Indemnified
Party within 15 days following receipt of written notice from the Seller’s Representative of
the amount of such Indemnifying Seller’s Pro Rata share. Notwithstanding the foregoing, in
no event shall the aggregate liabilities of any Indemnifying Seller under this Section
9 exceed an amount equal to such Indemnifying Sellers’ Pro Rata share of $11,800,000
with respect to Indemnified Losses suffered by the Purchaser Affiliates as a result of the
matters described in Section 9.1.1 (other than the matters described in Section
9.1.1(4)) or $20,000,000 with respect to Indemnified Losses suffered by the Purchaser
Affiliates as a result of the matters described in Section 9.1.1(4).

     9.2.5 Except as provided in Section 9.2.1, the obligation of the Purchaser to
indemnify the Sellers from and against Indemnified Losses arising from the matters described
in Sections 6.7, 6.8 and 9.1.2(4) shall not be limited in any way.

     9.3 Indemnification Procedures.

     9.3.1 In the event that any Legal Proceedings shall be instituted or that any claim or
demand (such Legal Proceedings, claim or demand, a “Claim”) shall be asserted by any Person
in respect of which payment may be sought under Section 9.1 hereof, the Person
entitled to indemnification (the “Indemnified Party”) shall: (1) if the Indemnified Party is
any of the Purchaser Affiliates, reasonably and promptly cause written notice of the
assertion of any Claim of which it has knowledge which is covered by this indemnity to be
forwarded to the Seller’s Representative and the Escrow Agent; and (2) if the Indemnified
Party is any of the Seller Affiliates, reasonably and promptly cause written notice of the
assertion of any Claim of which it has knowledge which is covered by this indemnity to be
forwarded to the Purchaser. The Indemnifying Party shall have the right, at its sole option
and expense, to be represented by counsel of its choice, which must be reasonably
satisfactory to the Indemnified Party, and to defend against, negotiate, settle or otherwise
deal with any Claim which relates to any Indemnified Losses hereunder; provided that no
settlement of any Claim shall be made by the Indemnifying Party, without the written consent
of the Indemnified Party. If the Indemnifying Party elects to defend against, negotiate,
settle or otherwise deal with any Claim which relates to any Indemnified Losses, it shall
within 5 days (or sooner, if the nature of the Claim so requires) notify the Indemnified
Party of its intent to do so. If the Indemnifying Party elects not to defend against, negotiate, settle or otherwise deal with any Claim which relates to any Indemnified
Losses, fails to notify the Indemnified Party of its election as herein provided or contests
its obligation to indemnify the Indemnified Party for such Indemnified Losses under this
Agreement, the Indemnified Party may defend against, negotiate, settle or otherwise deal
with such Claim. If the Indemnifying Party shall assume the defense of such Claim, the
Indemnified Party may participate, at his or its own expense, in the defense of such Claim.
The Indemnifying Party shall not be required to pay for more than one counsel for all
indemnified parties in connection with any Claim. The parties hereto agree to cooperate
fully with each other in connection with the defense, negotiation or settlement of any such
Claim.

     9.3.2 Upon: (1) final determination of the amount of the Indemnified Losses as a result
of any final judgment or award rendered by a court, arbitration board or administrative
agency of competent jurisdiction and the expiration of the time in which to appeal
therefrom; or (2) the consummation of a settlement of a Claim; or (3) the execution and
delivery of a mutually binding agreement between the Indemnified Party and the Indemnifying
Party with respect to a Claim hereunder; then (4) if the Indemnified Party is: (i) the
Purchaser or any of the Purchaser Affiliates and the amount by which the final amount of the
Indemnified Losses exceeds the Deductible is less than or equal to the amount then remaining
in the Escrow Account, the Indemnified Party

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shall forward to the Sellers’ Representative and the Escrow Agent written notice of the sums due and the Sellers’ Representative shall
take such action as may be necessary to cause the Escrow Agent to pay to the Purchaser or
the Purchaser Affiliates, all of the sums so due and owing within 5 Business Days following
receipt of such written notice; (ii) the Purchaser or any of the Purchaser Affiliates and
the amount by which the Indemnified Losses exceeds the Deductible is greater than the amount
then remaining in the Escrow Account, the Indemnified Party shall forward the Sellers’
Representative and, if any amount is then remaining in the Escrow Account, forward the
Escrow Agent, written notice of the amount of the sums due to the Indemnified Party and the
Sellers’ Representative shall take such action as may be necessary to cause the Escrow Agent
to pay to the Purchaser or the Purchaser’s Affiliates, the amount, if any, then remaining in
the Escrow Account within 30 days following receipt of such written notice and shall further
deliver written notice to each of the Sellers and the PR Holder of the amount of their
respective Pro Rata shares of the amount due to the Indemnified Party after payment to the
Indemnified Party of the amount, if any, remaining in the Escrow Account; and (iii) any of
the Sellers, the Sellers’ Representative shall forward to the Purchaser written notice of
any sums due and owing by the Purchaser pursuant to this Agreement with respect to such
matter and the Purchaser shall be required to pay all of the sums so due and owing to the
Sellers by wire transfer of immediately available funds within 30 days after the date of
such notice.

     9.3.3 The failure of an Indemnified Party to give reasonably prompt notice of any Claim
shall not release and waive the Indemnifying Party’s obligations with respect thereto unless
the Indemnified Party can demonstrate that there was actual loss and prejudice to the
Indemnifying Party as a result of such failure.

     9.3.4 The representations and warranties of the parties contained in this Agreement
shall survive for a period of 365 days beginning on the day immediately following the
Closing Date; provided that, notwithstanding the foregoing: (1) the representations and
warranties contained in Sections 4.2, 4.3.1, 4.3.2, 4.6 and 5.2 shall survive
indefinitely and shall not expire; (2) the representations and warranties contained in
Section 4.10 shall survive for a period of 60 days following the expiration of the
statute of limitations applicable to the assessment and collection of the Taxes covered by
such representations and warranties; and (3) the representations and warranties contained in
Section 4.19 shall survive for a period of 731 days beginning on the first day
following the Closing Date.

     9.3.5 The Purchaser Affiliates shall have no right to be indemnified and the
Indemnifying Sellers shall have no obligation to indemnify the Purchaser Affiliates with
respect to any Claim which is based upon the failure of any representation or warranty set
forth in Section 4 hereof or any representation or warranty contained in any
certificate delivered by or on behalf of the Sellers or the Company to be true and correct
as of the date made and as of the Closing Date if written notice of the Claim is not
delivered to the Seller’s Representative prior to the expiration of the period during which
the applicable representation or warranty survives the closing as set forth in Section
9.3.4 hereof.

     9.3.6 The Seller Affiliates shall have no right to be indemnified and the Purchaser
shall have no obligation to indemnify the Seller Affiliates with respect to any Claim which
is based upon the failure of any representation or warranty set forth in Section 5
hereof or any representation or warranty contained in any certificate delivered by or on
behalf of the Purchaser to be true and correct as of the date made and as of the Closing
Date if written notice of the Claim is not delivered to the Purchaser prior to the
expiration of the period during which the applicable representation or warranty survives the
Closing as set forth in Section 9.3.4 hereof.

43

 

10. TAX MATTERS

     10.1 Preparation of Tax Returns; Payment of Taxes.

          10.1.1 The parties hereto understand that the Company: (1) is a “S Corporation”, within the
meaning of Section 1361 of the Code, and (2) will retain that status until the Closing Date (if a
Section 338(h)(10) Election is made) or until the day prior to the Closing Date (if no Section
338(h)(10) Election is made). Each of the Sellers shall include on his, her or its income Tax
Return, such Seller’s Pro Rata share of the taxable income of the Company. The Sellers will cause
the Company to file: (i) the United States federal income Tax Returns of the Company for the
taxable periods of the Company ending on the Closing date or on the day prior to the Closing Date,
as the case may be, and (ii) where applicable, all other Tax Returns of the Company for the taxable
periods of the Company ending (or the portion of any taxable period ending) on the Closing Date or
prior to the Closing Date or on the day prior to the Closing Date, as the case may be. Except for
any Built-in-Gains Tax, which shall be paid by the Purchaser, the Sellers shall cause the Company
to pay any and all Taxes due with respect to the returns referred to in Section 10.1.1(i) and
(ii). The Sellers also shall cause the Company to file all other Tax Returns of the Company
required to be filed (taking into account any extensions) prior to or on the Closing Date and shall
cause the Company to pay any and all Taxes (other than any Built-in-Gains Tax) due with respect to
such Tax Returns. All Tax Returns described in this Section 10.1.1 shall be prepared in a
manner consistent with prior practice unless a past practice has been finally determined to be
incorrect by the applicable taxing authority or a contrary treatment is required by applicable tax
laws (or the judicial or administrative interpretations thereof). The Sellers shall, prior to the
filing of any Tax Returns required to be filed after the Closing Date, permit the Purchaser to
review and comment upon all such Tax Returns. The Sellers and the Purchaser shall attempt in good
faith mutually to resolve any disagreements regarding such Tax Returns prior to the due date for
filing thereof. Any disagreements regarding such Tax Returns which are not resolved prior to the
filing thereof shall be promptly resolved pursuant to Section 10.5 which shall be binding
on the parties.

          10.1.2 Following the Closing, the Purchaser shall be responsible for preparing or causing to
be prepared all federal, foreign, state and local Tax Returns required to be filed by the
Company and the Subsidiary for all taxable periods ending after the Closing Date. The Purchaser
shall file or cause to be filed all such Tax Returns and shall pay the Taxes shown due thereon.

          10.1.3 For federal income tax purposes, the taxable year of the Company shall end on the
Closing Date (if a Section 338(h)(10) Election is made) or on the day prior to the Closing Date (if
no Section 338(h)(10) Election is made), and, with respect to all other Taxes, the Sellers and
the Purchaser will, unless prohibited by applicable law, close the taxable period of the Company as
of the Closing Date (if a Section 338(h)(10) Election is made) or as of the day prior to the
Closing Date (if no Section 338(h)(10) Election is made). None of the Sellers nor the Purchaser
shall take any position inconsistent with the preceding sentence on any Tax Return.

     10.2 Cooperation with Respect to Tax Returns. The Purchaser and the Sellers shall
furnish or cause to be furnished to each other, and each at their own expense, as promptly as
practicable, such information (including access to books and records) and assistance, including
making employees available on a mutually convenient basis to provide additional information and
explanations of any material provided, relating to the Company as is reasonably necessary for the
filing of any Tax Return, for the preparation for any audit, and for the prosecution or defense of
any claim, suit or proceeding relating to any adjustment or proposed adjustment with respect to
Taxes. The Purchaser or the Company shall retain in its possession, and shall provide the Sellers
reasonable access to (including the right to make copies of ), such supporting books and records
and any other materials that the Sellers may specify with

44

 

respect to Tax matters relating to any taxable period ending on the Closing Date or on the day prior to the Closing Date, as the case may
be, until the relevant statute of limitations has expired. After such time, the Purchaser may
dispose of such material, provided that, prior to such disposition, the Purchaser shall give the
Sellers a reasonable opportunity to take possession of such materials.

     10.3 Tax Audits.

     10.3.1 After the Closing Date, the Purchaser and the Company shall have the right to
participate in any Tax audit or administrative or court proceeding relating to any Tax
period ending on or prior to the Closing Date that may have the effect of increasing the
Purchaser’s, the Company’s or the Subsidiary’s Tax liability for any Tax period ending
before or after the Closing Date and the Sellers shall not settle or compromise any such
proceeding without the prior written consent of the Purchaser. In connection with any such
proceeding, the Sellers shall bear their own costs and expenses and the Purchaser and the
Company shall bear their own costs and expenses.

     10.3.2 If any taxing authority asserts a claim, makes an assessment or otherwise
disputes or affects any Tax for which the Sellers are responsible hereunder, the Purchaser
shall, promptly upon receipt by the Purchaser or the Company of notice thereof, inform the
Sellers thereof.

     10.3.3 After the Closing Date, the Sellers’ Representative shall have the right to
participate in any Tax audit or administrative or court proceeding relating to any Tax
period beginning on or after the Closing Date that may have the effect of increasing the Tax
liability of the Sellers for any Tax period beginning before the Closing Date and the
Purchaser and the Company shall not settle or compromise any such proceeding without the
prior written consent of the Sellers’ Representative. In connection with any such
proceeding, the Purchaser and the Company shall bear their own costs and expenses and the
Sellers shall bear their own costs and expenses.

     10.4 Refund Claims. To the extent any determination of tax liability of the Company,
whether as the result of an audit or examination, a claim for refund, the filing of an amended
return or otherwise, results in any refund of Taxes paid (other than Built-in-Gains Taxes under
Section 1374 of the Code paid by the Purchaser with respect to the Tax period ending on the Closing
Date), any such refund shall belong to the Sellers. To the extent any determination of the
liability of the Company for Built-in-Gains Taxes for the Tax period ending on the Closing Date,
whether as a result of an audit or examination, a claim for a refund, the filing of an amended
return or otherwise, results in a refund of any such Built-in-Gains Taxes, any such refund shall
belong to the Purchaser. Any payments made under this Section 10.4 shall be net of any
Taxes payable with respect to such refund, credit or interest thereon (taking into account any
actual reduction in tax liability realized upon the payment pursuant to this Section 10.4).

     10.5 Disputes. Except as specifically provided in Section 2.3: (a) any
dispute as to any matter covered hereby shall be resolved by an independent accounting firm
mutually acceptable to the Sellers and the Purchaser; and (b) the fees and expenses of such
accounting firm shall be borne equally by the Sellers and the Purchaser.

11. MISCELLANEOUS

     11.1 Expenses. Except as otherwise provided in this Agreement, each of the Company
and the Purchaser shall bear its own expenses incurred in connection with the negotiation and
execution of this

45

 

Agreement and each other agreement, document and instrument contemplated by this
Agreement and the consummation of the transactions contemplated hereby and thereby; provided,
however, that the Purchaser shall pay for all sales, use, transfer, intangible, recordation,
documentary stamp or similar Taxes or charges, of any nature whatsoever, applicable to, or
resulting from, the transactions contemplated by this Agreement.

     11.2 Further Assurances. The Sellers and the Purchaser each agree to execute and
deliver such other documents or agreements and to take such other action as may be reasonably
necessary or desirable for the implementation of this Agreement and the consummation of the
transactions contemplated hereby.

     11.3 Submission to Jurisdiction; Consent to Service of Process.

     11.3.1 The parties hereto hereby irrevocably submit to the non-exclusive jurisdiction
of any federal or state court located within the State of Illinois, County of Cook, with
respect to any legal action or proceeding arising out of or relating to this Agreement or
any of the transactions contemplated hereby and each party hereby irrevocably agrees that
all claims in respect of such dispute or any suit, action or proceeding related thereto may
be heard and determined in such courts. The parties hereby irrevocably waive, to the
fullest extent permitted by applicable law, any objection which they may now or hereafter
have to the laying of venue of any such action or proceeding brought in such court or any
defense of inconvenient forum for the maintenance of such action or proceeding may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law.

     11.3.2 Each of the parties hereto hereby consents to process being served by any party
to this Agreement in any suit, action or proceeding by the mailing of a copy thereof in
accordance with the provisions of Section 11.6.

     11.4 Entire Agreement; Amendments and Waivers. This Agreement (including the
schedules and exhibits hereto) represents the entire understanding and agreement between the
parties hereto with respect to the subject matter hereof and can be amended, supplemented or
changed, and any provision hereof can be waived, only by written instrument making specific
reference to this Agreement signed by the party against whom enforcement of any such amendment,
supplement, modification or waiver is sought. No action taken pursuant to this Agreement,
including without limitation, any investigation by or on behalf of any party, shall be deemed to
constitute a waiver by the party taking such action of compliance with any representation,
warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a further or continuing waiver
of such breach or as a waiver of any other or subsequent breach. No failure on the part of any
party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by
such party preclude any other or further exercise thereof or the exercise of any other right, power
or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies
provided by law.

     11.5 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois without regard to conflicts of laws principles.

     11.6 Notices. All notices and other communication under this Agreement shall be
in writing and shall be deemed given when delivered personally or mailed by certified mail, return
receipt requested, to the parties (and shall also be transmitted by facsimile to the Persons
receiving copies thereof) at the

46

 

following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision):

	 	 	 
	If to any Seller, to:

	 	the Contact Information set forth on Annex A
	 
	 	 
	     With a copy to:

	 	BMO Capital Markets
	 

	 	111 West Monroe Street
	 

	 	20th Floor, East
	 

	 	Chicago, Illinois 60603
	 
	 	 
	 

	 	Telephone: (312) 765-8186
	 

	 	Facsimile: (312) 293-5325
	 
	 	 
	 

	 	Attention: Paul Johnson
	 
	 	 
	     With a copy to:

	 	Masuda, Funai, Eifert & Mitchell, Ltd.
	 

	 	203 North LaSalle Street
	 

	 	Suite 2500
	 

	 	Chicago, Illinois 60601
	 
	 	 
	 

	 	Telephone (312) 245-7500
	 

	 	Facsimile: (312) 245-7467
	 
	 	 
	 

	 	Attention: Thomas P. McMenamin, Esq.
	 
	 	 
	If to the Purchaser, to:

	 	Gibraltar Industries, Inc.
	 

	 	3556 Lake Shore Road
	 

	 	Buffalo, New York 14219
	 
	 	 
	 

	 	Telephone: (716) 826-6500
	 

	 	Facsimile: (716) 826-1589
	 
	 	 
	 

	 	Attention: David W. Kay
	 
	 	 
	     With a copy to:

	 	Lippes Mathias Wexler Friedman LLP
	 

	 	665 Main Street, Suite 300
	 

	 	Buffalo, New York 14203
	 
	 	 
	 

	 	Telephone: (716) 853-5100
	 

	 	Facsimile: (716) 853-5199
	 
	 	 
	 

	 	Attention: Paul J. Schulz, Esq.
	 
	 	 
	If to the PR Holder, to:

	 	Dave Dailey
	 

	 	P.O. Box 812
	 

	 	Geneva, Illinois 60134
	 

	 	Telephone: (630) 667-8766
	 
	 	 
	     With a copy to:

	 	Masuda, Funai, Eifert & Mitchell, Ltd
	 

	 	203 North LaSalle Street
	 

	 	Suite 2500
	 

	 	Chicago, Illinois 60601

47

 

	 	 	 
	 

	 	Telephone (312) 245-7500
	 

	 	Facsimile: (312) 245-7467
	 
	 	 
	 

	 	Attention: Thomas P. McMenamin, Esq.
	 
	 	 
	If to the Sellers’ Representative, to:

	 	Lloyd Schooley
	 

	 	40 Shuman Boulevard, Suite 290
	 

	 	Naperville, Illinois 60653
	 
	 	 
	 

	 	Telephone: (630) 258-3677
	 

	 	Facsimile: (630) 428-1886

48

 

	 	 	 
	     With a copy to:

	 	Masuda, Funai, Eifert & Mitchell, Ltd
	 

	 	203 North LaSalle Street
	 

	 	Suite 2500
	 

	 	Chicago, Illinois 60601
	 
	 	 
	 

	 	Telephone (312) 245-7500
	 

	 	Facsimile: (312) 245-7467
	 
	 	 
	 

	 	Attention: Thomas P. McMenamin, Esq.

     11.7 Severability. If any provision of this Agreement is invalid or unenforceable,
such invalidity shall not affect any other provision of this Agreement that can be given effect
without the invalid provision, and, to this end, the provisions hereof are enforceable.

     11.8 Binding Effect; Assignment. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and permitted assigns. Nothing in this
Agreement shall create or be deemed to create any third party beneficiary rights in any person or
entity not a party to this Agreement except as provided below. No assignment of this Agreement or
of any rights or obligations hereunder may be made by either the Sellers or the Purchaser (by
operation of law or otherwise) without the prior written consent of the other parties hereto and
any attempted assignment without the required consents shall be void; provided, however, that, upon
the consent of the Sellers, which consent shall not be unreasonably withheld, the Purchaser may
assign this Agreement and any or all rights or obligations hereunder (including, without
limitation, the Purchaser’s rights to purchase the Shares and the Purchaser’s rights to seek
indemnification hereunder) to any Affiliate of the Purchaser. Upon any such permitted assignment,
the references in this Agreement to the Purchaser shall also apply to any such assignee unless the
context otherwise requires.

     11.9 Sellers’ Representative. Lloyd Schooley, or such other persons as shall succeed
him pursuant to this Section 11.9, is hereby designated as the representative to act for
and represent the Sellers and the Indemnifying Sellers (the “Sellers’ Representative”) with respect
to all matters arising out of Sections 2.3, 9 and 10 hereof and in those other matters with
respect to which this Agreement specifies that the Sellers’ Representative shall so act, as well as
matters which require notice to be given to the Indemnifying Sellers under this Agreement. In the
event of the death or incapacity of the Sellers’ Representative, then such other person or persons
as may be designated by a majority of the Sellers, shall succeed as the Sellers’ Representative.

[Signature Page Follows]

49

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, as of
the date first written above, by themselves or their respective officers or signatories thereunto
duly authorized.

	 	 	 	 	 
	 	PURCHASER:

GIBRALTAR INDUSTRIES, INC.

 	 
	 	By:  	 /s/
 David W. Kay	 
	 	 	Name:  	David W. Kay 	 
	 	 	Title:  	Chief Financial Officer,
Executive Vice
President and Treasurer	 
	 
	 	COMPANY:

FLORENCE CORPORATION

 	 
	 	By:  	 /s/
 David P. Dailey	 
	 	 	Name:  	David P. Dailey 	 
	 	 	Title:  	President 	 
	 

[Signature pages continue.]

 

 

	 	 	 	 	 
	 	SELLERS:

Darlene M. Schooley Living Trust u/a/d 12/6/94 

 	 
	 	By:  	 /s/ 
Darlene M. Schooley	 
	 	 	Name:  	Darlene M. Schooley 	 
	 	 	Title:  	Trustee 	 
	 

	 	 	 	 	 
	 	Deborah Schooley Irrevocable Trust u/a/d 12/21/88

 	 
	 	By:  	 /s/ 
Suzanne B. Dallmeyer 	 
	 	 	Name:  	Suzanne B. Dallmeyer 	 
	 	 	Title:  	Trustee 	 
	 

	 	 	 	 	 
	 	David, Douglas and Darren Schooley Irrevocable Trust

u/a/d 12/21/88

 	 
	 	By:  	 /s/ 
Suzanne B. Dallmeyer	 
	 	 	Name:  	Suzanne B. Dallmeyer 	 
	 	 	Title:  	Trustee 	 
	 
	 	PR HOLDER:

 	 
	 	By:  	 /s/ 
David Dailey	 
	 	 	Name:  	David Dailey 	 
	 	 	 	 
	 

	 	 	 	 	 
	Solely with respect to the appointment as the

Sellers’ Representative under Section 11.9:

 	 	 
	By:  	 /s/ 
Lloyd Schooley	 	 
	 	Name:  	Lloyd Schooley 	 
	 	Title:  	Sellers’ Representative 	 	 
	 

 

 

Annex 1

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Pro Rata
	 	 	Number of	 	Percentage
	Seller and Seller’s Contact Information	 	Shares Owned	 	of Shares
	Darlene M. Schooley Living Trust,

u/a/d 12/6/94

c/o Lloyd Schooley

40 Shuman Boulevard, Suite 290

Naperville, Illinois 60653	 	 	156	 	 	 	6.4	%
	 
	David, Douglas and Darren Schooley Irrevocable Trust,

u/a/d 12/21/88

c/o Suzanne Dallmeyer, Esq.

466 Central Avenue, Suite 47

Northfield, Illinois 60093	 	 	1,764	 	 	 	72.3	%
	 
	Deborah Schooley Irrevocable Trust,

u/a/d 12/21/88

c/o Suzanne Dallmeyer, Esq.

466 Central Avenue, Suite 47

Northfield, Illinois 60093	 	 	520	 	 	 	21.3	%

 

 

Annex 2

Agreed Principles

Agreed Principles for Calculating

Estimated Net Working Capital and Closing Net Working Capital

as of August 31, 2007.

Current assets and current liabilities shall be computed in accordance with GAAP and shall be
derived in a manner consistent with the Company’s internal consolidated financial statements (with
a copy of the July, 2007 balance sheet of the Company included for reference as Attachment 1
hereto).

Current assets shall be adjusted to eliminate the following items, to the extent they are reflected
on the balance sheet:

(a) Shareholder Receivable: Represents a loan to Debbie Cummings

(b) Prepaid Officer Life Insurance: Prepaid expenses relating to the salary continuation
plans for John Alstadt, Frank Vecchione, David Dailey and Mike Powles

(c) Pre-Paid Consulting Fees: Consulting fees prepaid to Kerry Krafthefer

Current liabilities shall be adjusted to eliminate the following items, to the extent they are
reflected on the balance sheet:

(a) Accrued Bonus: Accrued bonuses for Lloyd Schooley and Mike Powles

(b) Accrued Legal Fees: Accrued expenses to Suzanne Dallmeyer

(c) Accrued Interest: Accrued interest on the IRB.

In addition, current liabilities shall exclude liabilities related to the transaction contemplated
by the Agreement to which this Annex is attached], to the extent they are reflected on the balance
sheet, including phantom stock payments, transaction related bonuses, related payroll costs such as
FICA, transaction costs, and Section 338 (h) (10) Acquisition Costs that have not been paid on or
before the Closing.

For purposes of illustration only, Attachment 1 hereto presents an example of the foregoing
methodology to be followed for calculating Net Working Capital.

As used herein, the term “Section 338(h)(10) Acquisition Costs” means all taxes paid or payable by
the Company and the Subsidiary as a result of a Section 338(h)(10) Election.

 

 

Annex 3

Tax Timetable**

	 	 	 
	Friday, August 31, 2007

	 	Closing of sale of shares of the Company to the Purchaser.
	 
	 	 
	Prior to October 15, 2007

	 	Cooperation between the Purchaser and the Sellers
regarding preparation of good faith estimate of tax
amount payable by the Company which is to be paid by the
Purchaser for the final “S” corporation Federal and State
income tax returns by the Company, together with the
payment, if any, of the estimated tax owed by the
Company.
	 
	 	 
	Thursday,
November 15, 2007

	 	Filing of Extension Requests for final Federal and State
income tax returns of the Company as an “S” corporation.
	 
	 	 
	On or prior to Friday,
December 21, 2007

	 	Delivery to Crowe Chizek, tax advisors to the Sellers,
with a copy to the Sellers’ Representative, of the
following: (1) valuation reports arranged by the
Purchaser of tangible assets of the Company and (2)
proposed allocation of purchase price to such assets of
the Company.
	 
	 	 
	On or prior to Friday,
February 29, 2008

	 	Delivery to the Purchaser by Crowe Chizek, on behalf of
Sellers, of information and calculations of the amount of
the Tax Indemnification Payments payable to the Sellers
if a Section 338(h)(10) Election is made.
	 
	 	 
	Prior to April 11, 2008

	 	Delivery to the Sellers’ Representative by the Purchaser
of an Irrevocable Notice of the Purchaser’s decision on
whether it will make a Section 338(h)(10) Election. If
the Purchaser’s Irrevocable Notice indicates that the
Purchaser is making a Section 338(h)(10) Election, then
cooperation between Crowe Chizek, as tax advisors to the
Sellers, and the Purchaser regarding finalization of the
Tax Indemnification Payment amounts.
	 
	 	 
	On or prior to Friday, April 11, 2008
	 	If the Purchaser’s Irrevocable Notice indicates that the
Purchaser is making a Section 338(h)(10) Election, then: (1) payment of the Tax Indemnification Payment amounts
by the Purchaser to the Sellers; and (2) execution of
Section 338(h)(10) Election documents by the Purchaser
and the Sellers.
	 
	 	 
	April 15, 2008

	 	Filing of Tax Returns by the Sellers.
	 
	 	 
	On or prior to Thursday,
May 15, 2008

	 	Filing of Section 338(h)(10) Election.

 

Capitalized terms used in this Tax Timetable have their respective meanings set forth in the Stock
Purchase Agreement to which this Annex is attached.exv4w9

 

Exhibit 4.9

STARWOOD HOTELS AND RESORTS WORLDWIDE, INC.

U.S. BANK NATIONAL ASSOCIATION, Trustee

Form of Indenture

Dated as of _________, 2007

 

 

CROSS-REFERENCE TABLE

This Cross-Reference Table is not part of the Indenture

	 	 	 	 	 
	Trust Indenture Act of 1939 Section	 	Indenture Section
	310

	 	(a)(1)
	 	7.09 
	 

	 	(a)(2)
	 	7.09 
	 

	 	(a)(3)
	 	Not applicable 
	 

	 	(a)(4)
	 	Not applicable 
	 

	 	(a)(5)
	 	7.09 
	 

	 	(b)
	 	7.08 and 7.10 
	 

	 	(c)
	 	Not applicable 
	311

	 	(a)
	 	* 
	 

	 	(b)
	 	* 
	 

	 	(c)
	 	Not applicable 
	312

	 	(a)
	 	5.01 
	 

	 	(b)
	 	* 
	 

	 	(c)
	 	* 
	313

	 	(a)
	 	5.03 
	 

	 	(b)(1)
	 	Not applicable 
	 

	 	(b)(2)
	 	* 
	 

	 	(c)
	 	* 
	 

	 	(d)
	 	* 
	314

	 	(a)
	 	5.02 
	 

	 	(b)
	 	Not applicable 
	 

	 	(c)(1)
	 	14.05 
	 

	 	(c)(2)
	 	14.05 
	 

	 	(c)(3)
	 	Not applicable 
	 

	 	(d)
	 	Not applicable 
	 

	 	(e)
	 	14.05 
	 

	 	(f)
	 	Not applicable 
	315

	 	(a)
	 	7.01 
	 

	 	(b)
	 	6.08 
	 

	 	(c)
	 	7.01 
	 

	 	(d)
	 	7.01 
	 

	 	(e)
	 	6.09 
	316

	 	(a)(1)
	 	6.01 and 6.07 
	 

	 	(a)(2)
	 	Not applicable 
	 

	 	(b)
	 	6.04 
	 

	 	(c)
	 	* 
	317

	 	(a)
	 	6.02 
	 

	 	(b)
	 	4.04(a) 
	318

	 	(a)
	 	14.08 

 

			
	*	 	Automatically included under Section 318(c) of the Trust Indenture Act of 1939, as amended.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE 1	 	 	 	 
	 
	 	DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 2	 	 	 	 
	 
	 	DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.
	 	Forms	 	 	6	 
	Section 2.02.
	 	Amount Unlimited; Issuable in Series	 	 	7	 
	Section 2.03.
	 	Authentication	 	 	9	 
	Section 2.04.
	 	Date and Denomination of Securities	 	 	10	 
	Section 2.05.
	 	Execution of Securities	 	 	10	 
	Section 2.06.
	 	Exchange and Registration of Transfer of Securities	 	 	11	 
	Section 2.07.
	 	Mutilated, Destroyed, Lost or Stolen Securities	 	 	13	 
	Section 2.08.
	 	Temporary Securities	 	 	13	 
	Section 2.09.
	 	Cancellation of Securities Paid, etc.	 	 	14	 
	Section 2.10.
	 	Computation of Interest	 	 	14	 
	Section 2.11.
	 	Form of Legend for Global Securities	 	 	14	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 3	 	 	 	 
	 
	 	REDEMPTION OF SECURITIES; SINKING FUNDS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.
	 	Applicability of Article	 	 	15	 
	Section 3.02.
	 	Notice of Redemption; Selection of Securities	 	 	15	 
	Section 3.03.
	 	Payment of Securities Called for Redemption	 	 	16	 
	Section 3.04.
	 	Satisfaction of Mandatory Sinking Fund Payments with Securities	 	 	16	 
	Section 3.05.
	 	Redemption of Securities for Sinking Fund	 	 	16	 
	Section 3.06.
	 	Repayment at the Option of the Holder	 	 	18	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 4	 	 	 	 
	 
	 	PARTICULAR COVENANTS OF THE COMPANY	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.
	 	Payment of Principal, Premium and Interest	 	 	18	 
	Section 4.02.
	 	Offices for Notices and Payments, etc.	 	 	18	 
	Section 4.03.
	 	Appointment to Fill Vacancies in Trustee's Office	 	 	18	 
	Section 4.04.
	 	Provision as to Paying Agent	 	 	18	 
	Section 4.05.
	 	Statement as to Compliance	 	 	19	 
	Section 4.06.
	 	Additional Amounts	 	 	19	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 5	 	 	 	 
	 
	 	SECURITYHOLDER LISTS AND REPORTS	 	 	 	 
	 
	 	BY THE COMPANY AND THE TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.
	 	Securityholder Lists	 	 	20	 
	Section 5.02.
	 	Reports by the Company	 	 	20	 
	Section 5.03.
	 	Reports by the Trustee	 	 	21	 

i

 

	 	 	 	 	 	 	 
	 
	 	ARTICLE 6	 	 	 	 
	 
	 	REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS	 	 	 	 
	 
	 	ON EVENT OF DEFAULT	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.
	 	Events of Default	 	 	21	 
	Section 6.02.
	 	Payment of Securities on Default; Suit Therefor	 	 	23	 
	Section 6.03.
	 	Application of Moneys Collected by Trustee	 	 	25	 
	Section 6.04.
	 	Proceedings by Securityholders	 	 	25	 
	Section 6.05.
	 	Proceedings by Trustee	 	 	26	 
	Section 6.06.
	 	Remedies Cumulative and Continuing	 	 	26	 
	Section 6.07.
	 	Direction of Proceedings and Waiver of Defaults by Securityholders	 	 	26	 
	Section 6.08.
	 	Notice of Defaults	 	 	27	 
	Section 6.09.
	 	Undertaking to Pay Costs	 	 	27	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 7	 	 	 	 
	 
	 	CONCERNING THE TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01.
	 	Duties and Responsibilities of Trustee	 	 	27	 
	Section 7.02.
	 	Reliance on Documents, Opinions, etc.	 	 	28	 
	Section 7.03.
	 	No Responsibility for Recitals, etc.	 	 	30	 
	Section 7.04.
	 	Ownership of Securities	 	 	30	 
	Section 7.05.
	 	Moneys to be Held in Trust	 	 	30	 
	Section 7.06.
	 	Compensation and Expenses of Trustee	 	 	30	 
	Section 7.07.
	 	Officers' Certificate as Evidence	 	 	31	 
	Section 7.08.
	 	Indentures Not Creating Potential Conflicting Interests For The Trustee	 	 	31	 
	Section 7.09.
	 	Eligibility of Trustee	 	 	31	 
	Section 7.10.
	 	Resignation or Removal of Trustee	 	 	31	 
	Section 7.11.
	 	Acceptance by Successor Trustee	 	 	32	 
	Section 7.12.
	 	Succession by Merger, etc	 	 	33	 
	Section 7.13.
	 	Other Matters Concerning the Trustee	 	 	34	 
	Section 7.14.
	 	Appointment of Authenticating Agent	 	 	34	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 8	 	 	 	 
	 
	 	CONCERNING THE SECURITYHOLDERS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.01.
	 	Action of Securityholders	 	 	35	 
	Section 8.02.
	 	Proof of Execution by Securityholders	 	 	35	 
	Section 8.03.
	 	Who Are Deemed Absolute Owners	 	 	36	 
	Section 8.04.
	 	Company-Owned Securities Disregarded	 	 	36	 
	Section 8.05.
	 	Revocation of Consents; Future Holders Bound	 	 	36	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 9	 	 	 	 
	 
	 	SECURITYHOLDERS' MEETINGS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.01.
	 	Purposes of Meetings	 	 	37	 
	Section 9.02.
	 	Call of Meetings by Trustee	 	 	37	 
	Section 9.03.
	 	Call of Meetings by Company or Securityholders	 	 	37	 
	Section 9.04.
	 	Qualifications for Voting	 	 	37	 
	Section 9.05.
	 	Quorum; Adjourned Meetings	 	 	37	 
	Section 9.06.
	 	Regulations	 	 	38	 
	Section 9.07.
	 	Voting	 	 	39	 

ii

 

	 	 	 	 	 	 	 
	Section 9.08.
	 	No Delay of Rights by Meeting	 	 	39	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 10	 	 	 	 
	 
	 	SUPPLEMENTAL INDENTURES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.01.
	 	Supplemental Indentures without Consent of Securityholders	 	 	39	 
	Section 10.02.
	 	Supplemental Indentures with Consent of Securityholders	 	 	41	 
	Section 10.03.
	 	Compliance with Trust Indenture Act; Effect of Supplemental Indentures	 	 	42	 
	Section 10.04.
	 	Notation on Securities	 	 	42	 
	Section 10.05.
	 	Evidence of Compliance of Supplemental Indenture to be Furnished Trustee	 	 	42	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 11	 	 	 	 
	 
	 	CONSOLIDATION, MERGER, SALE OR CONVEYANCE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.01.
	 	Company May Consolidate, Merge Or Sell Assets on Certain Terms	 	 	42	 
	Section 11.02.
	 	Successor Corporation or Limited Liability Company to be Substituted	 	 	43	 
	Section 11.03.
	 	Documents to be Given Trustee	 	 	43	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 12	 	 	 	 
	 
	 	SATISFACTION AND DISCHARGE OF INDENTURE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.01.
	 	Discharge of Indenture	 	 	43	 
	Section 12.02.
	 	Legal Defeasance	 	 	44	 
	Section 12.03.
	 	Covenant Defeasance	 	 	45	 
	Section 12.04.
	 	Deposited Moneys to be Held in Trust by Trustee; Miscellaneous Provisions	 	 	45	 
	Section 12.05.
	 	Paying Agent to Repay Moneys Held	 	 	46	 
	Section 12.06.
	 	Return of Unclaimed Moneys	 	 	46	 
	Section 12.07.
	 	Reinstatement	 	 	46	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 13	 	 	 	 
	 
	 	IMMUNITY OF INCORPORATORS,	 	 	 	 
	 
	 	STOCKHOLDERS, OFFICERS AND DIRECTORS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 13.01.
	 	Indenture and Securities Solely Corporate Obligations	 	 	46	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 14	 	 	 	 
	 
	 	MISCELLANEOUS PROVISIONS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 14.01.
	 	Provisions Binding on Company's Successors	 	 	46	 
	Section 14.02.
	 	Official Acts by Successor Corporation	 	 	46	 
	Section 14.03.
	 	Addresses for Notices, Notice to Holders, Waiver	 	 	47	 
	Section 14.04.
	 	New York Contract	 	 	47	 
	Section 14.05.
	 	Evidence of Compliance with Conditions Precedent	 	 	47	 
	Section 14.06.
	 	Legal Holidays	 	 	47	 
	Section 14.07.
	 	Securities in a Specified Currency other than Dollars	 	 	48	 
	Section 14.08.
	 	Trust Indenture Act to Control	 	 	48	 
	Section 14.09.
	 	Table of Contents, Headings, etc	 	 	48	 
	Section 14.10.
	 	Execution in Counterparts	 	 	48	 
	Section 14.11.
	 	Separability; Benefits	 	 	48	 

iii

 

     THIS INDENTURE, dated as of                     , 2007 between Starwood Hotels and Resorts Worldwide,
Inc., a Maryland corporation (the “Company”), and U.S. Bank National Association, a national
banking association (the “Trustee”),

WITNESSETH:

     WHEREAS, the Company has duly authorized the issue from time to time of its unsecured
debentures, notes or other evidences of indebtedness to be issued in one or more series (the
“Securities”) up to such principal amount or amounts as may from time to time be authorized in
accordance with the terms of this Indenture and to provide, among other things, for the
authentication, delivery and administration thereof, the Company has duly authorized the execution
and delivery of this Indenture; and

     WHEREAS, all things necessary to make this Indenture a valid indenture and agreement according
to its terms have been done;

     NOW, THEREFORE:

     In consideration of the premises and the purchases of the Securities by the holders thereof,
the Company and the Trustee mutually covenant and agree for the equal and proportionate benefit of
the respective holders from time to time of the Securities as follows:

ARTICLE 1

DEFINITIONS

     Section 1.01. Definitions. The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of this Indenture
shall have the respective meanings specified in this Section 1.01. All other terms used in this
Indenture which are defined in the Trust Indenture Act of 1939, as amended, or which are by
reference therein defined in the Securities Act of 1933, as amended (except as herein otherwise
expressly provided or unless the context otherwise requires), shall have the meanings assigned to
such terms in said Trust Indenture Act and in said Securities Act as in force at the date of this
Indenture as originally executed. The words “herein,” “hereof,” and “hereunder” and other words of
similar import refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

Authenticating Agent:

     The term “Authenticating Agent” shall mean any Person authorized by the Trustee
pursuant to Section 7.14 to act on behalf of the Trustee to authenticate Securities.

Beneficial Owner:

     The term “Beneficial Owner” shall mean a Person who is the beneficial owner of a
beneficial interest in a Global Security as reflected on the books of the Depositary or on the
books of a Person maintaining an account with such Depositary (directly as a Depositary participant
or as an indirect participant, in each case in accordance with the rules of such Depositary).

Board of Directors:

     The term “Board of Directors” shall mean the Board of Directors of the Company or any
Committee of such Board or specified officers and employees of the Company to which the powers of
such Board have been lawfully delegated.

 

 

Company:

     The term “Company” shall mean Starwood Hotels and Resorts Worldwide, Inc., a Maryland
corporation, until any successor corporation or limited liability company shall have become such
pursuant to the provisions of Article Eleven, and thereafter “Company” shall mean such successor,
except as otherwise provided in Section 11.02.

Consolidated Net Tangible Assets

     The term “Consolidated Net Tangible Assets” shall mean the total of all assets
appearing on a consolidated balance sheet of the Company and its Restricted Subsidiaries prepared
in accordance with generally accepted accounting principles (and as of a date not more than 90 days
prior to the date as of which Consolidated Net Tangible Assets are to be determined), less the sum
of the following items as shown on said consolidated balance sheet:

     (i) the book amount of all segregated intangible assets, including, without limitation, such
items as goodwill, trademarks, trademark rights, trade names, trade name rights, copyrights,
patents, patent rights and licenses, and unamortized debt discount and expense less unamortized
debt premium;

     (ii) all depreciation, valuation and other reserves;

     (iii) current liabilities;

     (iv) any minority interest in the stock and surplus of Restricted Subsidiaries;

     (v) the investment of the Company and its Restricted Subsidiaries in any Subsidiary of the
Company which is not a Restricted Subsidiary;

     (vi) deferred income and deferred liabilities; and

     (vii) other items deductible under generally accepted accounting principles.

Depositary:

     The term “Depositary” shall mean, with respect to Securities of any series issuable in
whole or in part in the form of one or more Global Securities, a clearing agency registered under
the Securities Exchange Act of 1934, as amended, that is designated to act as depositary for such
Securities as contemplated by Section 2.02.

Dollar:

     The term “Dollar” shall mean the coin or currency of the United States of America as
at the time of payment is legal tender for the payment of public and private debts.

Event of Default:

     The term “Event of Default” shall have the meaning specified in Section 6.01.

2

 

Global Security:

     The term “Global Security” shall mean a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 2.11 (or such legend as may be
specified as contemplated by Section 2.02 for such Securities).

Indenture:

     The term “Indenture” shall mean this instrument as originally executed or as it may be
amended or supplemented from time to time as herein provided, and shall include the form and terms
of particular series of Securities established as contemplated hereunder.

Interest:

     The term “interest,” when used with respect to a non-interest bearing Security, means
interest payable after the principal thereof has become due and payable whether at maturity, by
declaration of acceleration, by call for redemption, pursuant to a sinking fund, or otherwise.

Non-Recourse Indebtedness:

     The term “Non-Recourse Indebtedness,” shall mean indebtedness the terms of which
provide that the lender’s claims for repayment of such indebtedness is limited solely to a claim
against the property which secures such indebtedness.

Officers’ Certificate:

     The term “Officers’ Certificate” shall mean a certificate signed by the President, the
Chairman or any Vice Chairman of the Board or any Vice President and by the Treasurer or any
Assistant Treasurer, the Comptroller or the Secretary or any Assistant Secretary of the Company and
delivered to the Trustee. Each such certificate shall comply with Section 314 of the Trust
Indenture Act of 1939 and include the statements provided for in Section 14.05 if and to the extent
required by the provisions of such Section.

Opinion of Counsel:

     The term “Opinion of Counsel” shall mean an opinion in writing signed by legal
counsel, who may be an employee of or of counsel to the Company, or may be other counsel, in any
case, satisfactory to the Trustee. Each such opinion shall comply with Section 314 of the Trust
Indenture Act of 1939 and include the statements provided for in Section 14.05 if and to the extent
required by the provisions of such Sections.

Original Issue Discount Security:

     The term “Original Issue Discount Security” shall mean any Security which provides for
an amount less than the principal amount thereof to be due and payable upon a declaration of
acceleration of the maturity thereof pursuant to Section 6.01.

Overdue Rate:

     The term “Overdue Rate” with respect to each series of Securities shall mean the rate
of interest designated as such in the resolution of the Board of Directors or the supplemental
indenture, as the case

3

 

may be, relating to such series as contemplated by Section 2.02, or if no
such rate is specified, the rate at which such Securities shall bear interest.

Person:

     The term “Person” shall mean any individual, corporation, partnership, joint venture,
association, joint stock company, trust, unincorporated organization or government or any agency or
political subdivision thereof.

Principal Office of the Trustee:

     The term “principal office of the Trustee,” or other similar term, shall mean the
office of the Trustee at which at any particular time its corporate trust business shall be
principally administered.

Responsible Officer:

     The term “Responsible Officer” when used with respect to the Trustee shall mean the
chairman or any vice chairman of the board of directors, the chairman or any vice chairman of the
executive committee of the board of directors, the president, any executive vice president, any
senior vice president, any vice president, any second vice president, any assistant vice president,
the cashier, any assistant cashier, the secretary, any assistant secretary, the treasurer, any
assistant treasurer, any trust officer, any assistant trust officer, or any other officer or
assistant officer of the Trustee customarily performing functions similar to those performed by the
persons who at the time shall be such officers, respectively, or to whom any corporate trust matter
is referred because of his knowledge of and familiarity with the particular subject.

Restricted Subsidiary:

     The term “Restricted Subsidiary” shall mean any Subsidiary other than an Unrestricted
Subsidiary.

Security or Securities; Outstanding:

     The terms “Security” or “Securities” shall mean any Security or Securities, as
the case may be, authenticated and delivered under this Indenture.

     The term “Outstanding,” when used with reference to Securities, shall, subject to the
provisions of Section 8.04, mean, as of any particular time, all Securities authenticated and
delivered by the Trustee under this Indenture, except

     (a) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

     (b) Securities, or portions thereof, for the payment or redemption of which moneys in
the necessary amount shall have been deposited in trust with the Trustee or with any paying
agent (other than the Company) or shall have been set aside and segregated in trust by the
Company (if the Company shall act as its own paying agent), provided that if such Securities
are to be redeemed prior to the maturity thereof, notice of such redemption shall have been
mailed as in Article Three provided, or provision satisfactory to the Trustee shall have
been made for mailing such notice;

4

 

     (c) Securities as to which defeasance has been effected pursuant to Section 12.02; and

     (d) Securities in lieu of or in substitution for which other Securities shall have been
authenticated and delivered, or which shall have been paid, pursuant to the terms of Section
2.07, unless proof satisfactory to the Trustee is presented that any such Securities are
held by persons in whose hands any of such Securities is a valid, binding and legal
obligation of the Company.

     In determining whether the holders of the requisite principal amount of Outstanding Securities
have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the
principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding for
such purposes shall be the amount of the principal thereof that would be due and payable as of the
date of such determination upon a declaration of acceleration of the maturity thereof pursuant to
Section 6.01.

Securityholder:

     The term “Securityholder,” “holder of Securities,” or other similar terms,
shall mean any person in whose name at the time a particular Security is registered on the books of
the Company kept for that purpose in accordance with the terms hereof.

Significant Subsidiary:

     The term “Significant Subsidiary” shall have the same meaning as the definition of
that term set forth in Rule 1-02 of Regulation S-X as promulgated by the Securities and Exchange
Commission.

Specified Currency:

     The term “Specified Currency” shall mean the currency in which a Security is
denominated, which may include Dollars, any foreign currency or any composite of two or more
currencies.

Subsidiary:

     The term “Subsidiary” shall mean any corporation more than 50% of the voting stock of
which at the time is owned or controlled, directly or indirectly, by the Company or the accounts of
which are in fact consolidated with the accounts of the Company.

Trust Indenture Act of 1939:

     The term “Trust Indenture Act of 1939” shall mean the Trust Indenture Act of 1939 as
it was in force at the date of execution of this Indenture, except as provided in Section 10.03.

Trustee:

     The term “Trustee” shall mean the corporation or association named as Trustee in this
Indenture and, subject to the provisions of Article Seven hereof, shall also include its successors
and assigns as Trustee hereunder. If pursuant to the provisions of this Indenture there shall be
at any time more than one Trustee hereunder, the term “Trustee” as used with respect to Securities of any series
shall mean the Trustee with respect to Securities of that series.

Unrestricted Subsidiary:

5

 

     The term “Unrestricted Subsidiary” shall mean any Subsidiary which has been designated
by a resolution of the Board of Directors as an Unrestricted Subsidiary, other than any such
Subsidiary as to which such a designation has been rescinded by a resolution of the Board of
Directors and not thereafter, or after some subsequent such rescission, restored by a resolution of
the Board of Directors, or any Subsidiary 50% or less of the voting stock of which is owned
directly by the Company and/or one or more of its respective Restricted Subsidiaries. A Subsidiary
may not be designated as (or otherwise permitted to become) an Unrestricted Subsidiary unless,
immediately after such Subsidiary becomes an Unrestricted Subsidiary, such Subsidiary would not own
any capital stock of, or hold any indebtedness of, any Restricted Subsidiary. A designation as an
Unrestricted Subsidiary may not be rescinded (or an Unrestricted Subsidiary otherwise permitted to
become a Restricted Subsidiary) unless such Subsidiary (i) is not a party to any lease which it
would have been prohibited by any applicable resolution of the Board of Directors or indenture
supplemental hereto from entering into had it been a Restricted Subsidiary at the time it entered
into such lease, unless (x) such Subsidiary had not been a Restricted Subsidiary prior to its
entering into such lease, (y) the property subject to such lease shall be owned by the Company
and/or one or more of its respective Restricted Subsidiaries, or (z) such Subsidiary would not be
prohibited by any applicable resolution of the Board of Directors or indenture supplemental hereto
from entering into such lease immediately after it becomes a Restricted Subsidiary, and (ii) does
not have outstanding upon any of its property any mortgage, pledge or other lien which it would be
prohibited by any applicable resolution of the Board of Directors or indenture supplemental hereto
from creating, suffering to be created, or assuming, immediately after it becomes a Restricted
Subsidiary. Following the date of this Indenture, upon any designation of a Subsidiary as an
Unrestricted Subsidiary, or any rescission of any such designation, the Company shall, within 30
days of the date of the adoption of the resolution of the Board of Directors effecting such action,
deliver to the Trustee a copy of such resolution of the Board of Directors together with an
Officers’ Certificate to the effect that such action is in compliance with the foregoing provisions
of this paragraph.

U.S. Government Obligations:

     The term “U.S. Government Obligations” shall have the meaning specified in Section
12.02.

ARTICLE 2

DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

     Section 2.01.
Forms. (a) The Securities of each series shall be in substantially such
form as shall be established by or pursuant to a resolution of the Board of Directors or in one or
more indentures supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have
such legends or endorsements placed thereon as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the
Securities of such series may be listed, or to conform to usage.

     (b) The resolutions adopted by the Board of Directors or one or more indentures supplemental
hereto establishing the form and terms of the Securities of any series pursuant to Sections 2.01 and 2.02, respectively,
of this Indenture, may provide for issuance of Global Securities.
If Securities of a series are so authorized to be issued as Global Securities, any such Global
Security may provide that it shall represent that aggregate amount of Securities from time to time
endorsed thereon and may also provide that the aggregate amount of Outstanding Securities
represented thereby may from time to time be reduced to reflect exchanges. Any endorsement of a
Global Security to reflect the amount, or any

6

 

increase or decrease in the amount or changes in the
rights of holders of Securities represented thereby, shall be made in such manner and by such
person or persons as shall be specified therein.

     (c) The Trustee’s Certificate of Authentication on all Securities shall be in substantially
the following form:

     “This is one of the Securities of the series designated therein described in the
within-mentioned Indenture.

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Officer”

     Section 2.02. Amount Unlimited; Issuable in Series. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is unlimited.

     The Securities may be issued in one or more series. There shall be established in or pursuant
to a resolution of the Board of Directors or established in one or more indentures supplemental
hereto, prior to the issuance of Securities of any series:

     (1) the title of the Securities of the series (which shall distinguish the Securities of the
series from all other Securities);

     (2) any limit upon the aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series
pursuant to Sections 2.06, 2.07, 2.08, 3.03, 3.06 or 10.04);

     (3) the date or dates on which the principal and premium, if any, of the Securities of the
series is payable;

     (4) the rate or rates, or the method of determination thereof, at which the Securities of the
series shall bear interest, if any, the date or dates from which such interest shall accrue, the
interest payment dates on which such interest shall be payable and, if other than as set forth in
Section 2.04, the record dates for the determination of holders to whom interest is payable;

     (5) in addition to the office or agency of the Company in the Borough of Manhattan, The City
of New York required to be maintained pursuant to Section 4.02, any other place or places where the
principal of, and premium, if any, and any interest on Securities of the series shall be payable;

     (6) the Specified Currency of the Securities of the series;

     (7) the currency or currencies in which payments on the Securities of the series are payable,
if other than the Specified Currency;

     (8) the price or prices at which, the period or periods within which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the option
of the Company, pursuant to any sinking fund or otherwise;

7

 

     (9) the obligation, if any, of the Company to redeem, purchase or repay Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of a holder thereof
and the price at which or process by which and the period or periods within which and the terms and
conditions upon which Securities of the series shall be redeemed, purchased or repaid, in whole or
in part, pursuant to such obligation;

     (10) if other than denominations of $2,000 and any integral multiple of $1,000 in excess
thereof, the denominations in which Securities of the series shall be issuable;

     (11) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.01;

     (12) if the principal of or interest on the Securities of the series are to be payable, at the
election of the Company or a holder thereof, in a coin or currency other than the Specified
Currency, the period or periods within which, and the terms and conditions upon which, such
election may be made;

     (13) if the amount of payments of principal of and interest on the Securities of the series
may be determined with reference to an index based on a coin or currency other than the Specified
Currency, the manner in which such amounts shall be determined;

     (14) any Events of Default with respect to the Securities of the series, if not set forth
herein;

     (15) if other than the rate of interest stated in the title of the Securities of the series,
the applicable Overdue Rate;

     (16) in the case of any series of non-interest bearing Securities, the applicable dates for
purposes of clause (a) of Section 5.01;

     (17) if other than U.S. Bank National Association is to act as Trustee for the Securities of
the series, the name and Principal Office of such Trustee;

     (18) if either or both of Sections 12.02 and 12.03 do not apply to any Securities of the
series;

     (19) if applicable, that any Securities of the series shall be issuable in whole or in part in
the form of one or more Global Securities and, in such case, the name of the respective
Depositaries for such Global Securities, the form of any legend or legends which shall be borne by
any such Global Security in addition to or in lieu of that set forth in Section 2.11 and any
circumstances in addition to or in lieu of those set forth in clause (2) of Section 2.06 in which
any such Global Security may be exchanged in whole or in part for Securities registered, and any
transfer of such Global Security in whole or in part may be registered, in the name or names of
Persons other than the Depositary for such Global Security or a nominee thereof;

     (20) any addition to the covenants set forth in Article Four which applies to Securities of
the series and whether any such covenant shall be subject to covenant defeasance under Section
12.03; and

     (21) any other terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture).

8

 

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to such resolution of the Board of Directors
or in any such indenture supplemental hereto.

     Notwithstanding Section 2.02(2) herein and unless otherwise expressly provided with respect to
a series of Securities, the aggregate principal amount of a series of Securities may be increased
and additional Securities of such series may be issued up to the maximum aggregate principal amount
authorized with respect to such series as increased; provided that no Event of Default with respect
to such series has occurred and is continuing.

     Section 2.03. Authentication. At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication. Except as otherwise provided in this Article Two, the
Trustee shall thereupon authenticate and deliver said Securities to or upon the written order of
the Company, signed by its President, its Chairman or any Vice Chairman of the Board or one of its
Vice Presidents and by its Treasurer, its Controller or its Secretary, which order shall set forth
the number of separate Securities certificates, the principal amount of each of the Securities to
be authenticated, the date on which the original issue of Securities is to be authenticated, the
registered holder of each of the said Securities and delivery instructions. In authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive and (subject to Section 7.01) shall be fully
protected in relying upon:

     (1) a copy of any resolution or resolutions of the Board of Directors relating thereto and, if
applicable, an appropriate record of any action taken pursuant to such resolution, in each case
certified by the Secretary or an Assistant Secretary of the Company;

     (2) an executed supplemental indenture, if any, relating thereto;

     (3) an Officers’ Certificate prepared in accordance with Section 14.05 which shall also state
to the best knowledge of the signers of such Certificate that no Event of Default with respect to
any series of Securities shall have occurred and be continuing; and

     (4) an Opinion of Counsel prepared in accordance with Section 14.05 to the effect

          (a) that the form of such Securities has been established by or pursuant to a resolution of
the Board of Directors or by a supplemental indenture as permitted by Section 2.01 in conformity
with the provisions of this Indenture;

          (b) that the terms of such Securities have been established by or pursuant to a resolution of
the Board of Directors or by a supplemental indenture as permitted by Section 2.02 in conformity
with the provisions of this Indenture;

          (c) that the Company has all requisite corporate power and authority to execute and deliver
such Securities;

          (d) that the execution and delivery of such Securities by the Company have been duly
authorized by all necessary corporate action on the part of the Company;

          (e) that such Securities have been duly and validly executed, and when duly authenticated by
the Trustee and issued by the Company in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute the legal, valid and binding obligations of the

9

 

Company,
enforceable against it in accordance with their terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally, and subject, as to enforceability, to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing (regardless of
whether enforcement is sought in a proceeding at law or in equity); and

          (f) that the execution and delivery by the Company of such Securities and the performance by
the Company of its obligations thereunder will not conflict with, constitute a default under or
violate any of the terms, conditions or provisions of the organizational certificate or bylaws of
the Company.

     The Trustee shall have the right to decline to authenticate and deliver or cause to be
authenticated and delivered any Securities under this Section 2.03 if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken or if the Trustee in good faith by
its board of directors or trustees, executive committee, or a trust committee of directors or
trustees and/or vice presidents shall determine that such action would expose the Trustee to
personal liability to existing Securityholders.

     Section 2.04. Date and Denomination of Securities. The Securities of each series shall be
issuable in registered form without coupons in such denominations as shall be specified as
contemplated by Section 2.02. In the absence of any such specification with respect to the
Securities of any series, the Securities of such series shall be issuable in denominations of
$2,000 and any integral multiple of $1,000 in excess thereof. Securities of each series shall be
numbered, lettered or otherwise distinguished in such manner or in accordance with such plan as the
officers of the Company executing the same may determine with the approval of the Trustee.

     Every Security shall be dated the date of its authentication.

     The person in whose name any Security of a particular series is registered at the close of
business on any record date (as hereinafter defined) with respect to any interest payment date for
such series shall be entitled to receive the interest payable on such interest payment date
notwithstanding the cancellation of such Security upon any registration of transfer or exchange
subsequent to the record date and prior to such interest payment date; provided, however, that if
and to the extent that the Company shall default in the payment of the interest due on such
interest payment date, such defaulted interest shall be paid to the persons in whose names
Outstanding Securities of such series are registered on a subsequent record date established by
notice given by mail by or on behalf of the Company to the holders of such Securities not less than
15 days preceding such subsequent record date, such record date to be not less than five days
preceding the date of payment of such defaulted interest. Except as otherwise specified as
contemplated by Section 2.02 for Securities of a particular series, the term “record date” as used
in this Section 2.04 with respect to any regular interest payment date, shall mean, the last day of
the calendar month preceding such interest payment date if such interest payment date is the
fifteenth day of such calendar month, and shall mean the fifteenth day of the calendar month
preceding such interest payment date if such interest payment date is the first day of a calendar
month, whether or not such day shall be a day on
which banking institutions in The City of New York are authorized or required by law or
executive order to close or remain closed.

     Interest on the Securities may at the option of the Company be paid by check mailed to the
persons entitled thereto at their respective addresses as such appear on the registry books of the
Company.

     Section 2.05. Execution of Securities. The Securities shall be signed in the name and on
behalf of the Company by the manual or facsimile signature of its President, its Chairman of the
Board or Chief Financial Officer and its Treasurer, Assistant Treasurer, Secretary or Assistant
Secretary. Only such

10

 

Securities as shall bear thereon a certificate of authentication
substantially in the form herein recited, executed by the Trustee by the manual signature of an
authorized officer, shall be entitled to the benefits of this Indenture or be valid or obligatory
for any purpose. Such certificate by the Trustee upon any Security executed by the Company shall
be conclusive evidence that the Security so authenticated has been duly authenticated and delivered
hereunder and that the holder is entitled to the benefits of this Indenture.

     In case any officer of the Company who shall have signed any of the Securities shall cease to
be such officer before the Securities so signed shall have been authenticated and delivered by the
Trustee, or disposed of by the Company, such Securities nevertheless may be authenticated and
delivered or disposed of as though the person who signed such Securities had not ceased to be such
officer of the Company; and any Security may be signed on behalf of the Company by such persons as,
at the actual date of the execution of such Security, shall be the proper officers of the Company,
although at the date of the execution of this Indenture any such person was not such an officer.

     Section 2.06. Exchange and Registration of Transfer of Securities. Securities of any series
may be exchanged for a like aggregate principal amount of Securities of the same series of other
authorized denominations. Securities to be exchanged shall be surrendered, at the option of the
holders thereof, either at the office or agency designated and maintained by the Company for such
purpose in the Borough of Manhattan, The City of New York, in accordance with the provisions of
Section 4.02 or at any of such other offices or agencies as may be designated and maintained by the
Company for such purpose in accordance with the provisions of Section 4.02, and the Company shall
execute and register and the Trustee shall authenticate and deliver in exchange therefor the
Security or Securities which the Securityholder making the exchange shall be entitled to receive.
Each person designated by the Company pursuant to the provisions of Section 4.02 as a person
authorized to register and register transfer of the Securities is sometimes herein referred to as a
“Security registrar”.

     The Company shall keep, at each such office or agency, a register for each series of
Securities issued hereunder (the registers of all Security registrars being herein sometimes
collectively referred to as the “Security register” or the “registry books of the Company”) in
which, subject to such reasonable regulations as it may prescribe, the Company shall register
Securities and shall register the transfer of Securities as in this Article Two provided. The
Security register shall be in written form or in any other form capable of being converted into
written form within a reasonable time. At all reasonable times the Security registrar shall be
open for inspection by the Trustee and any Security registrar other than the Trustee. Upon due
presentment for registration or registration of transfer of any Security of any series at any
designated office or agency, the Company shall execute and register and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new Security or Securities
of the same series for an equal aggregate principal amount. Registration or registration of
transfer of any Security by any Security registrar in the registry books of the Company maintained
by such Security
registrar, and delivery of such Security, duly authenticated, shall be deemed to complete the
registration or registration of transfer of such Security.

     No person shall at any time be designated as or act as a Security registrar unless such person
is at such time empowered under applicable law to act as such under and to the extent required by
applicable law and regulations.

     All Securities presented for registration of transfer or for exchange, redemption or payment
shall (if so required by the Company or the Trustee) be duly endorsed by, or be accompanied by a
written instrument or instruments of transfer or exchange in form satisfactory to the Company and
the Trustee duly executed by, the holder or his attorney duly authorized in writing.

11

 

     No service charge shall be made for any exchange or registration of transfer of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith.

     The Company shall not be required to exchange or register a transfer of (a) any Securities of
any series for the period of 15 days next preceding the selection of Securities of that series to
be redeemed and thereafter until the date of the mailing of a notice of redemption of Securities of
that series selected for redemption, or (b) any Securities selected, called or being called for
redemption in whole or in part except, in the case of any Security to be redeemed in part, the
portion thereof not so to be redeemed.

     The provisions of clauses (1), (2), (3), (4), (5), (6) and (7) below shall apply only to
Global Securities:

     (1) Each Global Security authenticated under this Indenture shall be registered in the name of
the Depositary designated for such Global Security or a nominee thereof and delivered to such
Depositary or nominee thereof or custodian therefor, and each such Global Security shall constitute
a single Security for all purposes under this Indenture.

     (2) Notwithstanding any other provision in this Indenture, no Global Security may be exchanged
in whole or in part for Securities registered, and no transfer of a Global Security in whole or in
part may be registered, in the name of any Person other than the Depositary for such Global
Security or a nominee thereof unless (A) such Depositary (i) has notified the Company that it is
unwilling or unable to continue its services as Depositary for such Global Security and no
successor Depositary has been appointed within 90 days after such notice or (ii) ceases to be a
“clearing agency” registered under Section 17A of the Securities Exchange Act of 1934 when the
Depositary is required to be so registered to act as the Depositary and so notifies the Company,
and no successor Depositary has been appointed within 90 days after such notice, (B) the Company
determines at any time that the Securities shall no longer be represented by Global Securities and
shall inform such Depositary of such determination and participants in such Depositary elect to
withdraw their beneficial interests in the Securities from such Depositary, following notification
by the Depositary of their right to do so, or (C) such exchange is made upon request by or on
behalf of the Depositary in accordance with customary procedures, following the request of a
Beneficial Owner seeking to exercise or enforce its rights under the Securities.

     (3) Subject to clause (2) above, any exchange of a Global Security for other Securities may be
made in whole or in part, and all Securities issued in exchange for a Global Security or any
portion thereof shall be registered in such names as the Depositary for such Global Security shall
direct.

     (4) Every Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof shall be authenticated and
delivered in the form of, and shall be, a Global Security, unless such Security is registered in
the name of a Person other than the Depositary for such Global Security or a nominee thereof.

     (5) Subject to the provisions of clause (7) below, the registered Holder may grant proxies and
otherwise authorize any Person, including Agent Members (as defined below in clause (7)) and
Persons that may hold interests through Agent Members, to take any action which a Holder is
entitled to take under this Indenture or the Securities.

     (6) In the event of the occurrence of any of the events specified in clause (2) above, the
Company will promptly make available to the Trustee a reasonable supply of certificated Securities
in definitive, fully registered form, without interest coupons.

12

 

     (7) Neither any members of, or participants in, the Depositary (collectively, the “Agent
Members”) nor any other Persons on whose behalf Agent Members may act shall have any rights
under this Indenture with respect to any Global Security registered in the name of the Depositary
or any nominee thereof, or under any such Global Security, and the Depositary or such nominee, as
the case may be, may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the absolute owner and holder of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company or the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or such nominee, as the case may be, or impair, as
between the Depositary, its Agent Members and any other person on whose behalf an Agent Member may
act, the operation of customary practices of such Persons governing the exercise of the rights of a
holder of any Security.

     Section 2.07. Mutilated, Destroyed, Lost or Stolen Securities. In case any temporary or
definitive Security shall become mutilated or be destroyed, lost or stolen, the Company in the case
of a mutilated Security shall, and in the case of a lost, stolen or destroyed Security may in its
discretion, execute and, upon the written request or authorization of any officer of the Company,
the Trustee shall authenticate and deliver, a new Security of the same series, bearing a number not
contemporaneously Outstanding, in exchange and substitution for the mutilated Security, or in lieu
of and in substitution for the Security so destroyed, lost or stolen. In every case the applicant
for a substituted Security shall furnish to the Company and to the Trustee such security or
indemnity as may be required by them to save each of them harmless from any loss or liability which
any of them may suffer if a Security is replaced and subsequently presented or claimed for payment
and, in every case of destruction, loss or theft, the applicant shall also furnish the Company and
to the Trustee evidence to their satisfaction of the destruction, loss or theft of such Security
and the ownership thereof.

     Upon the issuance of any substituted Security, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto
and any other expenses connected therewith. In case any Security which has matured or is about to
mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing
a substituted Security, pay or authorize the payment of the same (without surrender thereof except
in the case of a mutilated Security) if the applicant for such payment shall furnish to the Company
and to the Trustee such security or indemnity as may be required by them to save each of them
harmless from any loss or liability which any of them may suffer if a Security is replaced and
subsequently presented or claimed for payment and, in case of destruction, loss or theft, evidence
satisfactory to the Company and the Trustee of the destruction, loss or theft of such Security and
the ownership thereof.

     Every substituted Security issued pursuant to the provisions of this Section 2.07 by virtue of
the fact that any Security is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security shall be found at
any time, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of the same series duly issued hereunder. All Securities shall
be held and owned upon the express condition that the foregoing provisions are exclusive with
respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities and shall
preclude (to the extent lawful) any and all other rights or remedies with respect to the
replacement or payment of negotiable instruments or other securities without their surrender.

     Section 2.08. Temporary Securities. Pending the preparation of definitive Securities of any
series the Company may execute and the Trustee shall authenticate and deliver temporary Securities
(printed, lithographed or typewritten). Temporary Securities shall be issuable in any authorized
denomination and substantially in the form of the definitive Securities in lieu of which they are
issued, but with such omissions, insertions and variations as may be appropriate for temporary
Securities, all as

13

 

may be determined by the Company. Every such temporary Security shall be
authenticated by the Trustee upon the same conditions and in substantially the same manner, and
with the same effect, as the definitive Securities in lieu of which they are issued. Without
unreasonable delay the Company will execute and deliver to the Trustee definitive Securities of
such series and thereupon any or all temporary Securities of such series may be surrendered in
exchange therefor, at the option of the holders thereof, either at the office or agency to be
designated and maintained by the Company for such purpose in the Borough of Manhattan, The City of
New York, in accordance with the provisions of Section 4.02 or at any of such other offices or
agencies as may be designated and maintained by the Company for such purpose in accordance with the
provisions of Section 4.02, and the Trustee shall authenticate and deliver in exchange for such
temporary Securities an equal aggregate principal amount of definitive Securities of the same
series. Such exchange shall be made by the Company at its own expense and without any charge
therefor. Until so exchanged, the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of the same series
authenticated and delivered hereunder.

     Section 2.09. Cancellation of Securities Paid, etc. All Securities surrendered for the
purpose of payment, redemption, repayment, exchange or registration of transfer or for credit
against any sinking fund shall, if surrendered to the Company, any Security registrar, any paying
agent or any other agent of the Company or of the Trustee, be delivered to the Trustee and promptly
cancelled by it, or, if surrendered to the Trustee, shall be promptly cancelled by it, and no
Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions
of this Indenture. The Trustee may dispose of cancelled Securities in accordance with its
customary procedures and deliver a certificate of such disposition to the Company or, at the
written request of the Company, shall deliver cancelled Securities to the Company. If the Company
shall acquire any of the Securities, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

     Section 2.10. Computation of Interest. Except as otherwise specified as contemplated by
Section 2.02 for Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

     Section 2.11. Form of Legend for Global Securities. Unless otherwise specified as
contemplated by Section 2.02 for the Securities evidenced thereby, every Global Security
authenticated and delivered hereunder shall bear a legend in substantially the following form (or
such other form as a securities exchange or Depositary may request or require):

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE OF THE DEPOSITORY TRUST
COMPANY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
THAN THE DEPOSITORY TRUST COMPANY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY TO A NOMINEE
OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITORY
TRUST COMPANY OR ANOTHER NOMINEE OF THE DEPOSITORY TRUST COMPANY.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER 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

14

 

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.

ARTICLE 3

REDEMPTION OF SECURITIES; SINKING FUNDS

     Section 3.01. Applicability of Article. The provisions of this Article shall be applicable,
as the case may be, (i) to the Securities of any series which are redeemable before their maturity
and (ii) to any sinking fund for the retirement of Securities of any series, in either case except
as otherwise specified as contemplated by Section 2.02 for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.”

     Section 3.02. Notice of Redemption; Selection of Securities. In case the Company shall desire
to exercise any right to redeem all, or, as the case may be, any part of, the Securities of any
series in accordance with their terms, it shall fix a date for redemption and shall mail a notice
of such redemption at least 30 and not more than 60 days prior to the date fixed for redemption to
the holders of Securities of such series so to be redeemed as a whole or in part at their last
addresses as the same appear on the registry books of the Company and to the Trustee, except as the
resolutions adopted by the Board of Directors to establish the terms of any series of Securities
may otherwise provide. Such mailing shall be by first class mail. The notice if mailed in the
manner herein provided shall be conclusively presumed to have been duly given, whether or not the
holder receives such notice. In any case, failure to give such notice by mail or any defect in the
notice to the holder of any Security of a series designated for redemption as a whole or in part
shall not affect the validity of the proceedings for the redemption of any other Security of such
series.

     Each such notice of redemption shall specify the date fixed for redemption, the redemption
price at which the Securities of such series are to be redeemed (or if not then ascertainable, the
manner of
calculation thereof), the place or places of payment, that payment will be made upon
presentation and surrender of such Securities, that any interest accrued to the date fixed for
redemption will be paid as specified in said notice and that on and after said date any interest
thereon or on the portions thereof to be redeemed will cease to accrue. Where the redemption price
is not ascertainable at the time the notice of redemption is given as aforesaid, the Company shall
notify the Trustee of said redemption price promptly after the calculation thereof. If less than
all the Securities of a series are to be redeemed, the notice of redemption shall specify the
number or numbers of the Securities of that series to be redeemed. In case any Security of a
series is to be redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the date fixed for
redemption, upon surrender of such Security, a new Security or Securities of that series in
principal amount equal to the unredeemed portion thereof will be issued.

     Prior to the redemption date specified in the notice of redemption given as provided in this
Section 3.02, the Company will deposit with the Trustee or with one or more paying agents (or, if
the Company is acting as its own paying agent, will segregate and hold in trust as provided in
Section 4.04) an amount of money sufficient to redeem on the redemption date all the Securities or
portions thereof so

15

 

called for redemption, together with accrued interest to the date fixed for
redemption. If less than all the Securities of a series are to be redeemed, the Company will give
the Trustee notice not less than 60 days (or such shorter period as may be acceptable to the
Trustee) prior to the redemption date as to the aggregate principal amount of Securities of such
series to be redeemed and the Trustee shall select or cause to be selected, in such manner as in
its sole discretion it shall deem appropriate and fair, the Securities of that series or portions
thereof to be redeemed. Securities of a series may be redeemed in part only in multiples of the
smallest authorized denomination of that series.

     Section 3.03. Payment of Securities Called for Redemption. If notice of redemption has been
given as provided in Section 3.02 or Section 3.05, the Securities or portions of Securities of the
series with respect to which such notice has been given shall become due and payable on the date
and at the place or places stated in such notice at the applicable redemption price, together with
any interest accrued to the date fixed for redemption, and on and after said date (unless the
Company shall default in the payment of such Securities or portions of such Securities, together
with any interest accrued to said date) any interest on the Securities of such series or portions
of Securities of such series so called for redemption shall cease to accrue. On presentation and
surrender of such Securities at a place of payment in said notice specified, the said Securities or
the specified portions thereof shall be paid and redeemed by the Company at the applicable
redemption price, together with any interest accrued thereon to the date fixed for redemption;
provided, however, that any regularly scheduled installment of interest becoming due on or prior to
the date fixed for redemption shall be payable to holders of such Securities registered as such on
the relevant record date according to their terms.

     Upon presentation of any Security redeemed in part only, the Company shall execute and the
Trustee shall authenticate and deliver to the holder thereof, at the expense of the Company, a new
Security or Securities of the same series, of authorized denominations, in aggregate principal
amount equal to the unredeemed portion of the Security so presented.

     Section 3.04. Satisfaction of Mandatory Sinking Fund Payments with Securities. In lieu of
making all or any part of any mandatory sinking fund payment with respect to any Securities of a
series in cash, the Company may at its option (a) deliver to the Trustee Securities of that series
theretofore purchased or otherwise acquired by the Company or (b) receive credit for the principal
amount of Securities of that series which have been redeemed either at the election of the Company
pursuant to the terms of such Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Securities; provided that such Securities have not been
previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the redemption
price specified in such Securities for redemption through operation of the sinking fund and the
amount of such mandatory sinking fund payment shall be reduced accordingly.

     Section 3.05. Redemption of Securities for Sinking Fund. Not less than 60 days prior to each
sinking fund payment date for any series of Securities, the Company will deliver to the Trustee a
certificate signed by the Treasurer or any Assistant Treasurer of the Company specifying the amount
of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the
portion thereof, if any, which is to be satisfied by payment of cash (which cash may be deposited
with the Trustee or with one or more paying agents or, if the Company is acting as its own paying
agent, segregated and held in trust as provided in Section 4.04) and the portion thereof, if any,
which is to be satisfied by delivering and crediting Securities of that series pursuant to Section
3.04 (which Securities, if not theretofore delivered, will accompany such certificate) and whether
the Company intends to exercise its right to make a permitted optional sinking fund payment with
respect to such series. Such certificate shall also state that no Event of Default has occurred
and is continuing with respect to such series. Such certificate shall be irrevocable and upon its
delivery the Company shall be obligated to make the cash payment or payments therein referred to,
if any, on or before the next succeeding sinking fund payment

16

 

date. In the case of the failure of
the Company to deliver such certificate (or to deliver the Securities specified in this paragraph),
the sinking fund payment due on the next succeeding sinking fund payment date for that series shall
be paid entirely in cash and shall be sufficient to redeem the principal amount of such Securities
subject to a mandatory sinking fund payment without the option to deliver or credit Securities as
provided in Section 3.04 and without the right to make any optional sinking fund payment, if any,
with respect to such series.

     Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused
balance of any preceding sinking fund payments made in cash which shall equal or exceed $100,000 or
the equivalent amount in the Specified Currency (if other than Dollars) (or a lesser sum if the
Company shall so request or determine) with respect to the Securities of any particular series
shall be applied by the Trustee (or by the Company if the Company is acting as its own paying
agent) on the sinking fund payment date on which such payment is made (or, if such payment is made
before a sinking fund payment date, on the next sinking fund payment date following the date of
such payment) to the redemption of such Securities at the redemption price specified in such
Securities for operation of the sinking fund together with accrued interest, if any, to the date
fixed for redemption. Any sinking fund moneys not so applied or allocated by the Trustee (or by
the Company if the Company is acting as its own paying agent) to the redemption of Securities shall
be added to the next cash sinking fund payment received by the Trustee (or if the Company is acting
as its own paying agent, segregated and held in trust as provided in Section 4.04) for such series
and, together with such payment (or such amount so segregated), shall be applied in accordance with
the provisions of this Section 3.05. Any and all sinking fund moneys with respect to the
Securities of any particular series held by the Trustee (or if the Company is acting as its own
paying agent, segregated and held in trust as provided in Section 4.04) on the last sinking fund
payment date with respect to Securities of such series and not held for the payment or redemption
of particular Securities of such series shall be applied by the Trustee (or by the Company if the
Company is acting as its own paying agent), together with other moneys, if necessary, to be
deposited (or segregated) sufficient for the purpose, to the payment of the principal of the
Securities of that series at maturity.

     The Trustee shall select or cause to be selected the Securities to be redeemed upon such
sinking fund payment date in the manner specified in the last paragraph of Section 3.02, and the
Company shall cause notice of the redemption thereof to be given in the manner provided in Section
3.02 except that the notice of redemption shall also state that the Securities are being redeemed
by operation of the sinking
fund. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Section 3.03.

     On or before each sinking fund payment date, the Company shall pay to the Trustee in cash (or,
if the Company is acting as its own paying agent, will segregate and hold in trust as provided in
Section 4.04) a sum equal to any interest accrued to the date fixed for redemption of Securities or
portions thereof to be redeemed on such sinking fund payment date pursuant to this Section.

     Neither the Trustee nor the Company shall redeem any Securities of a series with sinking fund
moneys or mail any notice of redemption of such Securities by operation of the sinking fund for
such series during the continuance of a default in payment of interest, if any, on such Securities
or of any Event of Default (other than an Event of Default occurring as a consequence of this
paragraph) with respect to such Securities, except that if the notice of redemption of any such
Securities shall theretofore have been mailed in accordance with the provisions hereof, the Trustee
(or the Company if the Company is acting as its own paying agent) shall redeem such Securities if
cash sufficient for that purpose shall be deposited with the Trustee (or segregated by the Company)
for that purpose in accordance with the terms of this Article. Except as aforesaid, any moneys in
the sinking fund for such series at the time when any such default or Event of Default shall occur
and any moneys thereafter paid into such sinking fund shall, during the continuance of such default
or Event of Default, be held as security for the payment of such

17

 

Securities; provided, however,
that in case such default or Event of Default shall have been cured or waived as provided herein,
such moneys shall thereafter be applied on the next sinking fund payment date for such Securities
on which such moneys may be applied pursuant to the provisions of this Section.

     Section 3.06. Repayment at the Option of the Holder. Any series of Securities may be made, by
provision contained in or established pursuant to a supplemental indenture or a resolution of the
Board of Directors pursuant to Section 2.02 hereof, subject to repayment, in whole or in part, at
the option of the holder on a date or dates specified prior to maturity, at a price equal to 100%
of the principal amount thereof, together with accrued interest to the date of repayment, on such
notice as may be required, provided, however, that the holder of a Security may only elect partial
repayment in an amount that will result in the portion of such Security that will remain
Outstanding after such repayment constituting an authorized denomination, or combination thereof,
of such Securities.

ARTICLE 4

PARTICULAR COVENANTS OF THE COMPANY

     Section 4.01. Payment of Principal, Premium and Interest. The Company covenants and agrees
for the benefit of each series of Securities that it will duly and punctually pay or cause to be
paid the principal of, premium, if any, and interest, if any, on each of the Securities of that
series at the places, at the respective times and in the manner provided in such Securities.

     Section 4.02. Offices for Notices and Payments, etc. As long as any of the Securities of a
series remain Outstanding, the Company will designate and maintain in the Borough of Manhattan, The
City of New York, an office or agency where the Securities of that series may be presented for
payment, an office or agency where the Securities of that series may be presented for registration
of transfer and for exchange as in this Indenture provided and an office or agency where notices
and demands to or upon the Company in respect of the Securities of that series or of this Indenture
may be served. In addition to such office or offices or agency or agencies, the Company may from
time to time designate and maintain one or more additional offices or agencies within or outside
the Borough of Manhattan, The City of New York, where the Securities of that series may be
presented for registration of transfer or for exchange, and the Company may from time to time
rescind such designation, as it may deem desirable or expedient. The Company will give to the Trustee written notice of the location of each such office or
agency and of any change of location thereof. In case the Company shall fail to maintain any such
office or agency in the Borough of Manhattan, The City of New York, or shall fail to give such
notice of the location or of any change in the location thereof, presentations and demands may be
made and notices may be served at the principal office of the Trustee.

     The Company hereby initially designates the office of the Trustee located at 100 Wall Street,
New York, New York 10005 as the office or agency of the Company in the Borough of Manhattan, The
City of New York, where the Securities of each series may be presented for payment, for
registration of transfer and for exchange as in this Indenture provided and where notices and
demands to or upon the Company in respect of the Securities of each series or of this Indenture may
be served.

     Section 4.03. Appointment to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 7.10, a successor trustee, so that there shall at all times be a Trustee with respect to
each series of Securities hereunder.

     Section 4.04. Provision as to Paying Agent. (a) If the Company shall appoint a paying
agent other than the Trustee with respect to the Securities of any series, it will cause such
paying agent to

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execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provisions of this Section 4.04:

          (1) that it will hold all sums held by it as such agent for the payment of the principal of,
premium, if any, or interest, if any, on the Securities of such series (whether such sums have been
paid to it by the Company or by any other obligor on the Securities of such series) in trust for
the benefit of the holders of the Securities of such series;

          (2) that it will give the Trustee notice of any failure by the Company (or by any other
obligor on the Securities of such series) to make any payment of the principal of, premium, if any,
or interest, if any, on the Securities of such series when the same shall be due and payable; and

          (3) that at any time during the continuance of any failure by the Company (or by any other
obligor on the Securities of such series) specified in the preceding paragraph (2), such paying
agent will, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held
in trust by it.

     (b) If the Company shall act as its own paying agent with respect to the Securities of any
series, it will, on or before each due date of the principal of, premium, if any, or interest, if
any, on the Securities of such series, set aside, segregate and hold in trust for the benefit of
the holders of such Securities a sum sufficient to pay such principal, premium, if any, or
interest, if any, so becoming due and will promptly notify the Trustee of any failure to take such
action and of any failure by the Company (or by any other obligor on the Securities of such series)
to make any payment of the principal of, premium, if any, or interest, if any, on the Securities of
such series when the same shall become due and payable.

     (c) Anything in this Section 4.04 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust by it, or any paying agent
hereunder, as required by this Section, such sums to be held by the Trustee upon the trusts herein
contained.

     (d) Anything in this Section 4.04 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 4.04 is subject to Sections 12.05 and 12.06.

     (e) Whenever the Company shall have one or more paying agents with respect to the Securities
of any series, it will, prior to each due date of the principal of, premium, if any, or interest,
if any, on the Securities of such series, deposit with a designated paying agent a sum sufficient
to pay the principal, premium, if any, and interest, if any, so becoming due, such sum to be held
in trust for the benefit of the persons entitled to such principal, premium, if any, or interest,
if any, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee
of any failure so to act.

     Section 4.05. Statement as to Compliance. The Company will furnish to the Trustee on or
before May 1, in each year (beginning with the first May 1 following the first date of issuance of
any Securities under this Indenture) a brief certificate (which need not comply with Section 14.05)
from the principal executive, financial or accounting officer of the Company as required by Section
314(a)(4) of the Trust Indenture Act of 1939. Except with respect to the receipt of Securities
payments and any default or Event of Default information contained in the certificate delivered to
it pursuant to this Section 4.05, the Trustee shall have no duty to review, ascertain or confirm
the Company’s compliance with, or breach of, any representation, warranty or covenant made in this
Indenture.

     Section 4.06. Additional Amounts. If the Securities of a series provide for the payment of
additional amounts, at least 10 days prior to the first interest payment date with respect to that
series of Securities and at least 10 days prior to each date of payment of principal of, premium,
if any, or interest

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on the Securities of that series if there has been a change with respect to the
matters set forth in the below-mentioned Officers’ Certificate, the Company shall furnish to the
Trustee and the principal paying agent, if other than the Trustee, an Officers’ Certificate
instructing the Trustee and such paying agent whether such payment of principal of or interest on
the Securities of that series shall be made to holders of the Securities of that series without
withholding or deduction for or on account of any tax, assessment or other governmental charge
described in the Securities of that series. If any such withholding or deduction shall be
required, then such Officers’ Certificate shall specify by country the amount, if any, required to
be withheld or deducted on such payments to such holders and shall certify the fact that additional
amounts will be payable and the amounts so payable to each holder, and the Company shall pay to the
Trustee or such paying agent the additional amounts required to be paid by this Section. The
Company covenants to indemnify the Trustee and any paying agent for, and to hold them harmless
against, any loss, liability or expense reasonably incurred without negligence or bad faith on
their part arising out of or in connection with actions taken or omitted by any of them in reliance
on any Officers’ Certificate furnished pursuant to this Section.

     Whenever in this Indenture there is mentioned, in any context, the payment of the principal of
or any premium, interest or any other amounts on, or in respect of, any Security of any series,
such mention shall be deemed to include mention of the payment of additional amounts provided by
the terms of such series established hereby or pursuant hereto to the extent that, in such context,
additional amounts are, were or would be payable in respect thereof pursuant to such terms, and
express mention of the payment of additional amounts (if applicable) in any provision hereof shall
not be construed as excluding the payment of additional amounts in those provisions hereof where
such express mention is not made.

ARTICLE 5

SECURITYHOLDER LISTS AND REPORTS

BY THE COMPANY AND THE TRUSTEE

     Section 5.01. Securityholder Lists. If and so long as the Trustee shall not be the Security
registrar for the Securities of any series, the Company and any other obligor on the Securities
will furnish or cause to be furnished to the Trustee a list in such form as the Trustee may
reasonably require of the names and addresses of the holders of the Securities of such series
pursuant to Section 312 of the Trust Indenture Act of 1939 (a) semi-annually not more than 15 days
after each record date for the payment of interest on such Securities, as hereinabove specified, as
of such record date, and on dates to be determined pursuant to Section 2.02 for non-interest
bearing Securities in each year, and (b) at such other times as the Trustee may request in writing,
within thirty days after receipt by the Company of any such request as of a date not more than 15
days prior to the time such information is furnished.

     Section 5.02. Reports by the Company. The Company covenants to file with the Trustee, within
15 days after the Company is required to file the same with the Securities and Exchange Commission,
copies of the annual reports and of the information, documents and other reports that the Company
is required to file with the Securities and Exchange Commission pursuant to Section 13 or Section
15(d) of the Securities Exchange Act of 1934 or pursuant to Section 314 of the Trust Indenture Act
of 1939.

     Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates). The Trustee is under no duty to examine such reports,
information or documents to ensure compliance with the provisions of this Indenture or to ascertain
the correctness or otherwise of

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the information or the statements contained therein. The Trustee
is entitled to assume such compliance and correctness unless a Responsible Officer of the Trustee
is informed otherwise.

     Section 5.03. Reports by the Trustee. Any Trustee’s report required under Section 313(a) of
the Trust Indenture Act of 1939 shall be transmitted on or before March 15 in each year beginning
March 15, 2008, as provided in Section 313(c) of the Trust Indenture Act of 1939, so long as any
Securities are Outstanding hereunder, and shall be dated as of a date convenient to the Trustee no
more than 60 days prior thereto.

ARTICLE 6

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

ON EVENT OF DEFAULT

     Section 6.01. Events of Default. The term “Event of Default” whenever used herein with
respect to Securities of any series means any one of the following events and such other events as
may be established with respect to the Securities of such series as contemplated by Section 2.02
hereof, continued for the period of time, if any, and after the giving of notice, if any,
designated in this Indenture or as may be established with respect to such Securities as
contemplated by Section 2.02 hereof, as the case may be, unless it is either inapplicable or is
specifically deleted or modified in the applicable resolution of the Board of Directors or in the
supplemental indenture under which such series of Securities is issued, as the case may be, as
contemplated by Section 2.02:

     (a) default for 30 days in the payment of any installment of interest on any Security of such
series when and as the same shall become due and payable; or

     (b) default in the payment of the principal of, or premium, if any, on any Security of such
series when and as the same shall become due and payable whether at maturity, upon redemption, by
declaration, repayment or otherwise; or

     (c) default in the making or satisfaction of any sinking fund payment or analogous obligation
as and when the same shall become due and payable by the terms of the Securities of such series; or

     (d) failure on the part of the Company duly to observe or perform any other of the covenants
or agreements on the part of the Company in respect of the Securities of such series contained in
this Indenture (other than a covenant or agreement in respect of the Securities of such series a
default in whose observance or performance is elsewhere in this Section 6.01 specifically dealt
with) continued for a period of 60 days after the date on which written notice of such failure,
requiring the Company to remedy the same, shall have been given to the Company by the Trustee by
registered mail, or to the Company and the Trustee by the holders of at least twenty-five percent
in aggregate principal amount of the Securities of such series at the time Outstanding; or

     (e) an event of default with respect to any other series of Securities issued or hereafter
issued pursuant to this Indenture or as defined in any indenture or instrument evidencing or under
which the Company has at the date of this Indenture or shall hereafter have outstanding any
indebtedness for borrowed money (other than Non-Recourse Indebtedness) shall happen and be
continuing and such other series of Securities or such indebtedness, as the case may be, shall have
been accelerated so that the same shall be or become due and payable prior to the date on which the
same would otherwise have become due and payable, and the aggregate principal amount of any
indebtedness with respect to which such acceleration has occurred exceeds the greater of (a)
$100,000,000 and (b) 5% of Consolidated Net Tangible Assets, and such acceleration shall not be
rescinded or annulled within thirty days after written notice thereof shall have been given to the
Company by the Trustee or to the Company and the Trustee by

21

 

the holders of at least twenty-five
percent in aggregate principal amount of the Securities of such series at the time Outstanding;
provided, however, that if such event of default with respect to such other series of Securities or
under such indenture or instrument, as the case may be, shall be remedied or cured by the Company,
or waived by the holders of such other series of Securities or of such indebtedness, as the case
may be, then the Event of Default hereunder by reason thereof shall be deemed likewise to have been
thereupon remedied, cured or waived without further action upon the part of either the Trustee or
any of the Securityholders of such series; and provided further that, subject to the provisions of
Sections 6.08 and 7.01, the Trustee shall not be charged with knowledge of any such event of
default or any remedy, cure or waiver thereof or any such acceleration unless written notice
thereof shall have been given to the Trustee by the Company, by a holder or an agent of a holder of
any Securities of such other series or of any such indebtedness, as the case may be, or by the
Trustee then acting under this Indenture with respect to such other series of Securities or under
any other indenture or instrument, as the case may be, under which such event of default shall have
occurred, or by the holders of at least twenty-five percent in aggregate principal amount of the
Securities of such series at the time Outstanding; or

     (f) a decree or order by a court having jurisdiction in the premises shall have been entered
adjudging the Company or any of its Significant Subsidiaries bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization of the Company or any of its Significant
Subsidiaries under the Federal Bankruptcy Code or any other similar applicable Federal or State
law, and such decree or order shall have continued undischarged and unstayed for a period of 60
days; or a decree or order of a court having jurisdiction in the premises for the appointment of a
receiver or liquidator or trustee or
assignee (or other similar official) in bankruptcy or insolvency of the Company or any of its
Significant Subsidiaries or of all or substantially all of the property of the Company or any of
its Significant Subsidiaries, or for the winding up or liquidation of the affairs of the Company or
any of its Significant Subsidiaries, shall have been entered, and such decree or order shall have
continued undischarged and unstayed for a period of 60 days; or

     (g) the Company or any of its Significant Subsidiaries shall institute proceedings to be
adjudicated a voluntary bankrupt, or shall consent to the filing of a bankruptcy proceeding against
the Company or such Significant Subsidiary, or shall file a petition or answer or consent seeking
reorganization under the Federal Bankruptcy Code or any other similar applicable Federal or State
law, or shall consent to the filing of any such petition, or shall consent to the appointment of a
receiver or liquidator or trustee or assignee (or other similar official) in bankruptcy or
insolvency of it or of its property, or shall make an assignment for the benefit of creditors, or
shall admit in writing the inability of the Company or such Significant Subsidiary to pay its debts
generally as they become due; or

     (h) any other Event of Default provided in the applicable resolution of the Board of Directors
or in the supplemental indenture under which such series of Securities is issued, as the case may
be, as contemplated by Section 2.02.

     The Trustee shall not be charged with knowledge of the identity of a Significant Subsidiary of
the Company unless it shall have received written notice from the Company or a Securityholder
identifying such Significant Subsidiary as such.

     If an Event of Default as contemplated by Sections 6.01(f) or 6.01(g) occurs, the principal
amount (or, if the Securities of such series are Original Issue Discount Securities, such portions
of the principal amount as may be specified in the terms of such series) with respect to Securities
of any series at the time Outstanding will become due and payable immediately. If any other Event
of Default with respect to Securities of any series at the time Outstanding occurs and is
continuing, then and in each and every such case, unless the principal of all of the Securities of
such series shall have already become due and payable, either the Trustee or the holders of not
less than twenty-five percent in aggregate principal

22

 

amount of the Securities of such series then
Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by
Securityholders of such series), may declare the principal amount (or, if the Securities of such
series are Original Issue Discount Securities, such portion of the principal amount as may be
specified in the terms of such series) of all the Securities of such series to be due and payable
immediately, and upon any such declaration the same shall become and shall be immediately due and
payable, anything in this Indenture or in the Securities of such series contained to the contrary
notwithstanding. This provision, however, is subject to the condition that if, at any time after
the principal amount (or, if the Securities of such series are Original Issue Discount Securities,
such portion of the principal amount as may be specified in the terms of such series) of the
Securities of any series shall have been so declared or otherwise become due and payable, and
before any judgment or decree for the payment of the moneys due shall have been obtained or entered
as hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient
to pay all matured installments of interest, if any, upon all of the Securities of such series and
the principal of, and premium, if any, on any and all Securities of such series which shall have
become due otherwise than by acceleration (with interest on overdue installments of interest (to
the extent that payment of such interest is enforceable under applicable law) and on such principal
at the Overdue Rate applicable to such series, to the date of such payment or deposit) and all
amounts payable to the Trustee pursuant to the provisions of Section 7.06, and any and all defaults
under this Indenture with respect to such series of Securities, other than the nonpayment of
principal of and accrued interest on Securities of such series which shall have become due solely
by acceleration, shall have been remedied or cured or waived or provision shall have been
made therefor to the satisfaction of the Trustee—then and in every such case the holders of a
majority in aggregate principal amount of the Securities of such series then Outstanding, by
written notice to the Company and to the Trustee, may waive all defaults with respect to such
series and rescind and annul such declaration or acceleration and its consequences; but no such
waiver or rescission and annulment shall extend to or shall affect any subsequent default or shall
impair any right consequent thereon.

     In case the Trustee shall have proceeded to enforce any right under this Indenture and such
proceeding shall have been discontinued or abandoned because of such rescission or annulment or for
any other reason or shall have been determined adversely to the Trustee, then and in every such
case the Company and the Trustee shall be restored respectively to their several positions and
rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue
as though no such proceeding had been taken.

     Section 6.02. Payment of Securities on Default; Suit Therefor. The Company covenants that (a)
in case default shall be made in the payment of any installment of interest upon any Security of
any series as and when the same shall become due and payable, and such default shall have continued
for a period of 30 days, (b) in case default shall be made in the payment of the principal of, or
premium, if any, on any Security of any series as and when the same shall become due and payable,
whether at maturity of the Securities of that series or upon redemption or by declaration,
repayment or otherwise or (c) in case of default in the making or satisfaction of any sinking fund
payment or analogous obligation when the same becomes due by the terms of the Securities of any
series—then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of
the holder of any such Security (or holders of any series of Securities in the case of clause (c)
above) the whole amount that then shall have become due and payable on any such Security (or
Securities of any such series in the case of clause (c) above) for principal, premium, if any, and
interest, if any, with interest upon the overdue principal and premium, if any, and (to the extent
that payment of such interest is enforceable under applicable law) upon the overdue installments of
interest, if any, at the Overdue Rate applicable to any such Security (or Securities of any such
series in the case of clause (c) above); and, in addition thereto, such further amount as shall be
sufficient to cover costs and expenses of collection, and any further amounts payable to the
Trustee pursuant to the provisions of Section 7.06.

23

 

     In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in
its own name and as trustee of any express trust, shall be entitled and empowered to institute any
actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and
may prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor upon such Securities and collect
in the manner provided by law out of the property of the Company or any other obligor on such
Securities wherever situated the moneys adjudged or decreed to be payable.

     In case there shall be pending proceedings for the bankruptcy, for the insolvency or for the
reorganization of the Company or any other obligor on the Securities of any series under the
Federal Bankruptcy Code or any other similar applicable Federal or State law, or in case a receiver
or trustee (or other similar official) shall have been appointed for the property of the Company or
such other obligor, or in the case of any other similar judicial proceedings relative to the
Company or other obligor on the Securities of any series, or to the creditors or property of the
Company or such other obligor, the Trustee, irrespective of whether the principal of the Securities
of any series shall then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this
Section 6.02, shall be entitled and empowered, by intervention in such proceedings or otherwise, to
file and prove a claim or claims for the whole amount of principal (or, if the Securities of any
series are Original Issue Discount Securities, such portion of the principal amount as may be due
and payable with respect to such series pursuant to a declaration in accordance with Section 6.01),
premium, if any, and interest, if any, owing and unpaid in respect of the Securities of any series
and, in case of any judicial proceedings, to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee and of the
Securityholders of any series allowed in such judicial proceedings relative to the Company or any
other obligor on the Securities of any series, its or their creditors, or its or their property,
and to collect and receive any moneys or other property payable or deliverable on any such claims,
and to distribute the same after the deduction of costs and expenses of collection, and any further
amounts payable to the Trustee pursuant to the provisions of Section 7.06 and incurred by it up to
the date of such distribution; and any receiver, assignee or trustee (or other similar official) in
bankruptcy or reorganization is hereby authorized by each of the Securityholders to make such
payments to the Trustee, and, in the event that the Trustee shall consent to the making of such
payments directly to the Securityholders, to pay to the Trustee costs and expenses of collection
and any further amounts payable to the Trustee pursuant to the provisions of Section 7.06 and
incurred by it up to the date of such distribution.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement,
adjustment or composition affecting any of the Securities of any series or the rights of any holder
thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder in any
such proceeding.

     All rights of action and of asserting claims under this Indenture, or under the Securities of
any series, may be enforced by the Trustee without the possession of any of the Securities of such
series or the production thereof in any trial or other proceeding relative thereto, and any such
suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall be for the ratable benefit of the holders of the
Securities in respect of which such action was taken. In any proceedings brought by the Trustee
(and also any proceedings in which a declaratory judgment of a court may be sought as to the
interpretation or construction of any provision of this Indenture, to which the Trustee shall be a
party) the Trustee shall be held to represent all the holders of the Securities to which such
proceedings relate, and it shall not be necessary to make any holders of such Securities parties to
any such proceedings.

24

 

     Section 6.03. Application of Moneys Collected by Trustee. Any moneys collected by the Trustee
pursuant to this Article and, if an Event of Default has occurred and is continuing, any money or
other property distributable in respect of the Company’s obligations under the Indenture shall be
applied in the order following, at the date or dates fixed by the Trustee for the distribution of
such moneys, upon presentation of the several Securities in respect of which moneys have been
collected, and the notation thereon of the payment, if only partially paid, and upon surrender
thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee pursuant to the provisions of Section
7.06;

     SECOND: In case the principal of the Outstanding Securities in respect of which such moneys
have been collected shall not have become due (at maturity, upon redemption, by declaration,
repayment or otherwise) and be unpaid, to the payment of interest, if any, on such Securities, in
the order of the maturity of the installments of such interest, with interest (to the extent that
such interest has been collected by the Trustee) upon the overdue installments of interest at the
Overdue Rate applicable to such Securities, such payments to be made ratably to the person entitled
thereto;

     THIRD: In case the principal of the Outstanding Securities in respect of which such moneys
have been collected shall have become due (at maturity, upon redemption, by declaration, repayment
or otherwise), to the payment of the whole amount then owing and unpaid upon such Securities for
principal, premium, if any, and interest, if any, with interest on the overdue principal, and
premium, if any, and (to the extent that such interest has been collected by the Trustee) upon
overdue installments of interest, if any, at the Overdue Rate applicable to such Securities; and in
case such moneys shall be insufficient to pay in full the whole amounts so due and unpaid upon such
Securities, then to the payment of such principal, premium, if any, and interest, if any, without
preference or priority of principal, and premium, if any, over interest, if any, or of interest, if
any, over principal, and premium, if any, or of any installment of interest, if any, over any other
installment of interest, if any, or of any such Security over any other such Security, ratably to
the aggregate of such principal, premium, if any, and accrued and unpaid interest, if any; and

     FOURTH: To the payment of the remainder, if any, to the Company, its successors or assigns, or
to whosoever may be lawfully entitled to receive the same, or as a court of competent jurisdiction
may direct.

     Section 6.04. Proceedings by Securityholders. No holder of any Security of any series shall
have any right by virtue of or by availing of any provision of this Indenture to institute any
suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or
for the appointment of a receiver or trustee (or other similar official), or for any other remedy
hereunder, unless (i) such holder previously shall have given to the Trustee written notice of an
Event of Default with respect to Securities of such series and of the continuance thereof, as
hereinbefore provided, (ii) the holders of not less than twenty-five percent in aggregate principal
amount of the Securities of such series then Outstanding shall have made written request upon the
Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall
have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and (iii) the Trustee for 60 days after its
receipt of such notice, request and offer of indemnity, shall not have received from the holders of
a majority in principal amount of the Securities of such series then Outstanding a direction
inconsistent with that request, and shall have neglected or refused to institute any such action,
suit or proceeding, it being understood and intended, and being expressly covenanted by the taker
and holder of every Security with every other taker and holder and the Trustee, that no one or more
holders of Securities of such series shall have any right in any manner whatever by virtue or by
availing of any provision of this Indenture to affect, disturb or prejudice the rights of any other
holder of Securities of such series, or to obtain or seek to obtain priority over or preference to
any other such holder, or to

25

 

enforce any right under this Indenture, except in the matter herein
provided and for the equal, ratable and common benefit of all holders of Securities of such series.

     Notwithstanding any other provisions in this Indenture, however, the right of any holder of
any Security to receive payment of the principal of, premium, if any, and interest, if any, on such
Security, on or after the respective due dates expressed in such Security, or upon redemption, by
declaration, repayment or otherwise, or to institute suit for the enforcement of any such payment
on or after such respective dates, shall not be impaired or affected without the consent of such
holder, and no provision of the Securities of any series or of this Indenture shall alter or impair
the obligation of the Company, which is absolute and unconditional, to pay the principal of,
premium, if any, and interest, if any, on the Securities of such series at the respective places,
at the respective times, at the respective rates and in the coin or currency, therein and herein
prescribed.

     Section 6.05. Proceedings by Trustee. In case of an Event of Default hereunder the Trustee
may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by
such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any of such rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in this Indenture
or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or
equitable right vested in the Trustee by this Indenture or by law.

     Section 6.06. Remedies Cumulative and Continuing. All powers and remedies given by this
Article Six to the Trustee or to the Securityholders of any series shall, to the extent permitted
by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies
available to the Trustee or the holders of such Securities, by judicial proceedings or otherwise,
to enforce the performance or observance of the covenants and agreements contained in this
Indenture, and no delay or omission of the Trustee or of any holder of any such Securities to
exercise any right or power accruing upon any default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of any such default or an
acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given
by this Article Six or by law to the Trustee or to the Securityholders of any series may be
exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the
Securityholders of such series.

     Section 6.07. Direction of Proceedings and Waiver of Defaults by Securityholders. (a)
The holders of a majority in aggregate principal amount of the Securities of any series at the time
Outstanding shall have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee,
with respect to the Securities of such series; provided, however, that (subject to the provisions
of Section 7.01) the Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, determines that the action or proceeding so directed may not
lawfully be taken or if the Trustee in good faith by its board of directors or trustees, executive
committee, or a trust committee of directors or trustees and/or Responsible Officers shall
determine that the action or proceeding so directed would involve the Trustee in personal liability
or expense for which it is not adequately indemnified.

     (b) Prior to any acceleration or declaration accelerating the maturity of the Securities of
any series, the holders of a majority in aggregate principal amount of the Securities of such
series at the time Outstanding may, on behalf of the holders of all of the Securities of such
series, waive any past default or Event of Default with respect to such series and its consequences
except a default in the payment of interest, if any, on, or the principal of or premium, if any, on
any Security of such series, or in the payment of any sinking fund installment or analogous
obligation with respect to Securities of such series, or in respect of a covenant or provision
hereof which under Section 10.02 cannot be modified or amended

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without the consent of the holder of
each Security affected. Upon any such waiver the Company, the Trustee and the holders of the
Securities of that series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon. Whenever any default or Event of Default hereunder
shall have been waived as permitted by this Section 6.07(b), said default or Event of Default shall
for all purposes of the Securities of such series and this Indenture be deemed to have been cured
and to be not continuing.

     Section 6.08. Notice of Defaults. The Trustee shall, within 90 days after the occurrence of a
default with respect to the Securities of any series, mail to all holders of Securities of such
series, as the names and addresses of such holders appear upon the registry books of the Company,
notice of all defaults with respect to such series known to the Trustee, unless such defaults shall
have been cured or waived before the giving of such notice (the term “defaults” for the purpose of
this Section 6.08 being hereby defined to be the events specified in Section 6.01 or established
with respect to such Securities as contemplated by Section 2.02, not including the periods of
grace, if any, provided for therein or established with respect to such Securities as contemplated
by Section 2.02 and irrespective of the giving
of the notices specified in clauses (d) and (e) of Section 6.01 or established with respect to
such Securities as contemplated by Section 2.02); provided, however, that except in the case of
default in the payment of the principal of, premium, if any, or interest, if any, on any of the
Securities of such series or in the making of any sinking fund installment or analogous obligation
with respect to such series, the Trustee shall be protected in withholding such notice if and so
long as the board of directors, the executive committee, or a trust committee of directors and/or
Responsible Officers of the Trustee in good faith determines that the withholding of such notice is
in the interest of the holders of Securities of such series.

     Section 6.09. Undertaking to Pay Costs. All parties to this Indenture agree, and each holder
of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under this Indenture or
in any suit against the Trustee for any action taken, omitted or suffered by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit and that
such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section 6.09 shall not
apply (i) to any suit instituted by the Trustee, (ii) to any suit instituted by any holder of
Securities of any series or group of such holders, holding in the aggregate more than ten percent
in principal amount of the Outstanding Securities of such series or (iii) to any suit instituted by
any Securityholder for the enforcement of the payment of the principal of, premium, if any, or
interest, if any, on any Security (A) on or after the due date expressed in such Security, (B) on
or after the date fixed for redemption or repayment or (C) after such Security shall have become
due by declaration.

ARTICLE 7

CONCERNING THE TRUSTEE

     Section 7.01. Duties and Responsibilities of Trustee. With respect to the holders of any
series of Securities issued hereunder, the Trustee, prior to the occurrence of an Event of Default
with respect to the Securities of such series and after the curing or waiving of all Events of
Default which may have occurred with respect to such series, undertakes to perform such duties and
only such duties as are specifically set forth in this Indenture. In case an Event of Default with
respect to the Securities of a series has occurred (which has not been cured or waived) the Trustee
shall exercise such of the rights and powers vested in it by this Indenture with respect to such
series, and use the same degree of care and skill in their exercise as a prudent man would exercise
or use under the circumstances in the conduct of his own affairs.

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     No provision of this Indenture shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act, or its own willful misconduct, except
that

     (a) prior to the occurrence of an Event of Default with respect to the Securities of a series
and after the curing or waiving of all Events of Default with respect to such series which may have
occurred:

          (1) the duties and obligations of the Trustee with respect to the Securities of a series shall
be determined solely by the express provisions of this Indenture, and the Trustee shall not be
liable except for the performance of such duties and obligations as are specifically set forth in
this Indenture, and no implied covenants or obligations shall be read into this Indenture against
the Trustee; and

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

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

     (c) the Trustee shall not be liable with respect to any action taken, omitted or suffered to
be taken by it in good faith in accordance with the direction of the holders of Securities of any
series pursuant to Section 6.07 relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power conferred upon the
Trustee, under this Indenture with respect to Securities of such series;

     (d) whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct of, the liability of or affording protection to the Trustee for any series of
Securities shall be subject to the provisions of this Section 7.01;

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

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

     None of the provisions of this Indenture shall be construed as requiring the Trustee to expend
or risk its own funds or otherwise to incur any personal financial liability in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers, if there shall be
reasonable grounds for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it.

     The provisions of this Section 7.01 are in furtherance of and subject to Section 315 of the
Trust Indenture Act of 1939.

     Section 7.02. Reliance on Documents, Opinions, etc. In furtherance of and subject to the
Trust Indenture Act of 1939, and subject to the provisions of Section 7.01:

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

     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an instrument signed in the name of the Company by its President, its
Chairman of the Board or any Vice President and its Treasurer, its Secretary or its Comptroller
(unless other evidence in respect thereof be herein specifically prescribed); and any resolution of
the Board of Directors of the Company may be evidenced to the Trustee by a copy thereof certified
by the Secretary, an Assistant Secretary or an Attesting Secretary of the Company;

     (c) the Trustee may consult with counsel and any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, omitted or suffered to be taken by it
hereunder in good faith and in accordance with such Opinion of Counsel;

     (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Securityholders, pursuant to
the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities which might be
incurred therein or thereby;

     (e) the Trustee shall not be liable for any action taken, omitted or suffered by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Indenture;

     (f) the Trustee shall not be bound to make any inquiry or investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note or other paper or document unless requested in
writing so to do by the holders of a majority in aggregate principal amount of the Securities of
any series affected then Outstanding; provided, however , that if the payment within a reasonable
time to the Trustee of the costs and expenses or liabilities likely to be incurred by it in the
making of such investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security conferred upon it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding;
and the reasonable expense of such investigation shall be paid by the Company, or, if paid by the
Trustee, shall be repaid by the Company upon demand;

     (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys, and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder;

     (h) the Trustee shall not be deemed to have notice of any default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or written notice of any event
which is in fact such a default or Event of Default is received by the Trustee at the Corporate
Trust Office of the Trustee and such notice references the Securities and this Indenture;

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

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     (j) the Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded;

     (k) the Trustee shall not be responsible or liable for special, indirect or consequential loss
or damage of any kind whatsoever (including, but not limited to, loss or profit) irrespective of
whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the
form of action;

     (l) the Trustee shall not be required to give any note, bond or surety in respect of the
execution of the trusts and powers under this Indenture; and

     (m) the Trustee shall not be responsible or liable for any failure or delay in the performance
of its obligations under this Indenture arising out of or caused, directly or indirectly by
circumstances beyond its reasonable control, including, without limitation, acts of God,
earthquakes, fire, flood, terrorism, wars and other military disturbances, sabotage, epidemics,
riots, interruptions, loss or malfunction of utilities or communication services and acts of civil
or military authorities and governmental action.

     Section 7.03. No Responsibility for Recitals, etc. The recitals contained herein and in the
Securities shall be taken as the statements of the Company (except in the Trustee’s certificates of
authentication), and the Trustee assumes no responsibility for the correctness of the same. The
Trustee makes no representations as to the validity or sufficiency of this Indenture or the
Securities, provided that the Trustee shall not be relieved of its duty to authenticate Securities
only as authorized by this Indenture. The Trustee shall not be accountable for the use or
application by the Company or any of the Securities or of the proceeds thereof.

     Section 7.04. Ownership of Securities. The Trustee and any agent of the Company or of the
Trustee, in its individual or any other capacity, may become the owner or pledgee of Securities
with the same rights it would have if it were not Trustee or such agent.

     Section 7.05. Moneys to be Held in Trust. Subject to the provisions of Sections 12.05 and
12.06 hereof, all moneys received by the Trustee or any paying agent shall, until used or applied
as herein provided, be held in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by law. Neither the Trustee nor any
paying agent shall be under any liability for interest on any moneys received by it hereunder
except such as it may agree with the Company to pay thereon. So long as no Event of Default shall
have occurred and be continuing, all interest allowed on any such moneys shall be paid from time to
time upon the written order of the Company, signed by its President, Chairman or any Vice Chairman
of the Board, or any Vice President, Treasurer or Comptroller.

     Section 7.06. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation
(which shall not be limited by any provision of law in regard to the compensation of a trustee of
an express trust) and, except as otherwise expressly provided, the Company will pay or reimburse
the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and of all persons not
regularly in its employ) except any such expense, disbursement or advance as may arise from its
negligence or bad faith. If any property other than cash shall at any time be subject to the lien
of this Indenture, the Trustee, if and to the extent

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authorized by a receivership or bankruptcy
court of competent jurisdiction or by the supplemental instrument subjecting such property to such
lien, shall be entitled to make advances for the purpose of preserving such property or of
discharging tax liens or other prior liens or encumbrances thereon. The Company also covenants to
indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred
without negligence or bad faith on the part of the Trustee, arising out of or in connection with
the acceptance or administration of this trust and its duties hereunder, including the costs and
expenses of defending itself against any claim of liability in the premises. The obligations of
the Company under this Section 7.06 to compensate and indemnify the Trustee and to pay or reimburse
the Trustee for expenses, disbursements and advances shall constitute additional indebtedness
hereunder
and shall survive the satisfaction and discharge of this Indenture. Such additional
indebtedness shall be secured by a lien prior to that of the Securities upon all property and funds
held or collected by the Trustee as such, except funds held in trust for the benefit of the holders
of particular Securities.

     Section 7.07. Officers’ Certificate as Evidence. Subject to the provisions of Sections 7.01
and 7.02, whenever in the administration of the provisions of this Indenture the Trustee shall deem
it necessary or desirable that a matter be proved or established prior to taking, omitting or
suffering any action to be taken hereunder, such matter (unless other evidence in respect thereof
be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of
the Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate
delivered to the Trustee, and such certificate, in the absence of negligence or bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken, omitted or suffered
by it under the provisions of this Indenture upon the faith thereof.

     Section 7.08. Indentures Not Creating Potential Conflicting Interests For The Trustee. The
following indentures are hereby specifically described for the purposes of Section 310(b)(1) of the
Trust Indenture Act of 1939: this Indenture with respect to the Securities of any other series, the
Indenture dated as of May 16, 2003, among the Company, Sheraton Holding Corporation, as guarantor,
and U.S. Bank National Association, as trustee, and the Indenture dated as of April 19, 2002, among
the Company, the guarantors party thereto and U.S. Bank National Association, as trustee.

     Section 7.09. Eligibility of Trustee. The Trustee hereunder shall at all times be a
corporation organized and doing business under the laws of the United States or any state, which
(a) is authorized under such laws to exercise corporate trust powers, (b) is subject to supervision
or examination by Federal or State authority and (c) shall have at all times a combined capital and
surplus of not less than fifty million dollars. If such corporation publishes reports of condition
at least annually, pursuant to law, or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section 7.09, the combined capital and surplus
of such corporation at any time shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section 7.09, the Trustee shall resign
immediately in the manner and with the effect specified in Section 7.10.

     The provisions of this Section 7.09 are in furtherance of and subject to Section 310(a) of the
Trust Indenture Act of 1939.

     Section 7.10. Resignation or Removal of Trustee. (a) The Trustee, or any trustee or
trustees hereafter appointed, may at any time resign with respect to any one or more or all series
of Securities by giving written notice of resignation to the Company and by mailing notice thereof
to the holders of the applicable series of Securities at their addresses as they shall appear on
the registry books of the Company. Upon receiving such notice of resignation, the Company shall
promptly appoint a successor trustee or trustees with respect to the applicable series by written
instrument, in duplicate, executed by order of the Board of Directors of the Company, one copy of
which instrument shall be delivered to the

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resigning Trustee and one copy to the successor trustee.
If no successor trustee shall have been so appointed with respect to any series and have accepted
appointment within 60 days after the giving of such notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a successor trustee, or any
Securityholder who has been a bona fide holder of a Security or Securities of the applicable series
for at least six months may, subject to the provisions of Section 6.09, on behalf of himself and
all others similarly situated, petition any such court for the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a
successor trustee.

     (b) In case at any time any of the following shall occur—

          (1) the Trustee shall fail to comply with the provisions of Section 310(b) of the Trust
Indenture Act of 1939 with respect to any series of Securities after written request therefor by
the Company or by any Securityholder who has been a bona fide holder of a Security or Securities of
such series for at least six months, or

          (2) the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09
and Section 310(a) of the Trust Indenture Act of 1939 with respect to any series of Securities and
shall fail to resign after written request therefor by the Company or by any such Securityholder,
or

          (3) the Trustee shall become incapable of acting with respect to any series of Securities, or
shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be
appointed or any public officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation—

then, in any such case, the Company may remove the Trustee with respect to such series and appoint
a successor trustee with respect to such series by written instrument, in duplicate, executed by
order of the Board of Directors of the Company, one copy of which instrument shall be delivered to
the Trustee so removed and one copy to the successor trustee, or, subject to the provisions of
Section 315(e) of the Trust Indenture Act of 1939, any Securityholder who has been a bona fide
holder of a Security or Securities of such series for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor trustee with respect to such series. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and
appoint a successor trustee with respect to such series.

     (c) The holders of a majority in aggregate principal amount of the Securities of one or more
series (each series voting as a class) or all series at the time Outstanding may at any time remove
the Trustee with respect to the applicable series or all series, as the case may be, and appoint
with respect to the applicable series or all series, as the case may be, a successor trustee by
written notice of such action to the Company, the Trustee and the successor trustee.

     (d) Any resignation or removal of the Trustee with respect to any series and any appointment
of a successor trustee with respect to such series pursuant to any of the provisions of this
Section 7.10 shall become effective upon acceptance of appointment by the successor trustee as
provided in Section 7.11.

     (e) No predecessor Trustee shall be liable for the acts or omissions of any successor Trustee.

     Section 7.11. Acceptance by Successor Trustee. Any successor trustee appointed as provided in
Section 7.10 shall execute, acknowledge and deliver to the Company and to its predecessor trustee
an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the

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predecessor trustee with respect to any or all applicable series shall become effective and such
successor trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, duties and obligations with respect to such series of its predecessor hereunder,
with like effect as if originally named as trustee herein; but, nevertheless, on the written
request of the Company or of the successor trustee, the trustee ceasing to act shall, upon payment
(or due provision therefor) of any amounts then due it pursuant to the provisions of Section 7.06,
execute and deliver an instrument transferring to such successor trustee all the rights and powers
with respect to such series of the trustee so
ceasing to act. Upon request of any such successor trustee, the Company shall execute any and
all instruments in writing in order more fully and certainly to vest in and confirm to such
successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless,
retain a lien upon all property or funds held or collected by such trustee to secure any amounts
then due it pursuant to the provisions of Section 7.06.

     In case of the appointment hereunder of a successor trustee with respect to the Securities of
one or more (but not all) series, the Company, the predecessor trustee and each successor trustee
with respect to the Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the predecessor trustee with respect
to the Securities of any series as to which the predecessor trustee is not retiring shall continue
to be vested in the predecessor trustee and shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such trustees co-trustees of the same trust and that each such trustee
shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts
hereunder administered by any other such trustee.

     No successor trustee with respect to a series of Securities shall accept appointment as
provided in this Section 7.11 unless at the time of such acceptance such successor trustee shall,
with respect to such series, be qualified under Section 310(b) of the Trust Indenture Act of 1939
and eligible under the provisions of Section 7.09.

     Upon acceptance of appointment by a successor trustee with respect to any series as provided
in this Section 7.11, the Company shall mail notice of the succession of such trustee hereunder to
the holders of Securities of such series at their addresses as they shall appear on the registry
books of the Company. If the Company fails to mail such notice within ten days after the
acceptance of appointment by the successor trustee, the successor trustee shall cause such notice
to be mailed at the expense of the Company.

     Section 7.12. Succession by Merger, etc. Any Person into which the Trustee may be merged or
converted or with which it may be consolidated, or any Person resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any Person succeeding to all or
substantially all of the corporate trust business of the Trustee, shall be the successor to the
Trustee hereunder, provided such Person shall be qualified under Section 310(b) of the Trust
Indenture Act of 1939 and eligible under the provisions of Section 7.09, without the execution or
filing of any paper or any further act on the part of any of the parties hereto, anything herein to
the contrary notwithstanding.

     In case at the time such successor to the Trustee shall succeed to the trust created by this
Indenture with respect to one or more series of Securities any of such Securities shall have been
authenticated but not delivered, any such successor to the Trustee by merger, conversion or
consolidation may adopt the certificate of authentication of any predecessor trustee and deliver
such Security so authenticated; and in case at that time any of such Securities shall not have been
authenticated, any successor to the Trustee may authenticate such Securities either in the name of
such successor to the

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Trustee or, if such successor to the Trustee is a successor by merger,
conversion or consolidation, the name of any predecessor hereunder; and in all such cases such
certificate shall have the full force which it is anywhere in such Securities or in this Indenture
provided that the certificate of the Trustee shall have.

     Section 7.13. Other Matters Concerning the Trustee. The principal corporate trust office of
the Trustee at the date of this Indenture is located at
U.S. Bank National Association, Corporate Trust Services,
60 Livingston Avenue, St. Paul, MN 55107-1419,
Attn: Raymond S. Haverstock.

     Section 7.14. Appointment of Authenticating Agent. The Trustee may appoint an Authenticating
Agent or Agents which shall be authorized to act on behalf of the Trustee to authenticate
Securities issued upon original issue and upon exchange, registration of transfer, partial
conversion or partial redemption or pursuant to Section 2.07, and Securities so authenticated shall
be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as
if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia, authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000
and subject to supervision or examination by Federal or State authority. If such Authenticating
Agent publishes reports of condition at least annually, pursuant to law or to the requirements of
said supervising or examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the effect specified in
this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all holders of
Securities as their names and addresses appear in the Security Register. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

     The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

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     If an appointment is made pursuant to this Section, the Securities may have endorsed thereon,
in addition to the Trustee’s certificate of authentication, an alternative certificate of
authentication in the following form:

“Dated:

     This is one of the Securities described in the within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	
 	 
	 	 	As Authenticating Agent 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory” 	 
	 	 	 	 
	 

ARTICLE 8

CONCERNING THE SECURITYHOLDERS

     Section 8.01. Action of Securityholders. Whenever in this Indenture it is provided that the
holders of a specified percentage in aggregate principal amount of the Securities of any or all
series may take any action (including the making of any demand or request, the giving of any
notice, consent or waiver or the taking of any other action) the fact that at the time of taking
any such action the holders of such specified percentage have joined therein may be evidenced (a)
by any instrument or any number of instruments of similar tenor executed by such Securityholders in
person or by agent or proxy appointed in writing, (b) by the record of such holders of Securities
voting in favor thereof at any meeting of such Securityholders duly called and held in accordance
with the provisions of Article Nine or (c) by a combination of such instrument or instruments and
any such record of such a meeting of such Securityholders.

     Section 8.02. Proof of Execution by Securityholders. Subject to the provisions of Sections
7.01, 7.02 and 9.06, proof of the execution of any instrument by a Securityholder or his agent or
proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may
be prescribed by the Trustee or in such manner as shall be reasonably satisfactory to the Trustee.
The ownership of Securities shall be proved by the registry books of the Company.

     The record of any Securityholders’ meeting shall be proved in the manner provided in Section
9.07.

     The Company may set a record date for purposes of determining the identity of holders of
Securities of any series entitled to vote or consent to or revoke any action referred to in Section
8.01, which record date may be set at any time or from time to time by notice to the Trustee, for
any date or dates (in the case of any adjournment or reconsideration) not more than 60 days nor
less than five days prior to the proposed date of such vote or consent, and thereafter,
notwithstanding any other provisions hereof, with respect to Securities of any series, only holders
of Securities of such series of record on such record date shall be entitled to so vote or give
such consent or revoke such vote or consent.

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     Section 8.03. Who Are Deemed Absolute Owners. The Company, the Trustee and any agent of the
Company or of the Trustee may deem the person in whose name any Security shall be registered upon
the books of the Company to be, and may treat him as, the owner of such Security (whether or not
such Security shall be overdue and notwithstanding any notation of ownership or other writing
thereon) for the purpose of receiving payment of or on account of the principal of, premium, if
any, and (subject to Section 2.04) interest, if any, on such Security and for all other purposes;
and neither the Company nor
the Trustee nor any agent of the Company or of the Trustee shall be affected by any notice to
the contrary. All such payments so made to any holder for the time being, or upon his order, shall
be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for moneys payable upon any such Security.

     No Beneficial Owner of a beneficial interest in any Global Security held on its behalf by a
Depositary shall have any rights under this Indenture with respect to such Global Security, and
such Depositary may be treated by the Company, the Trustee, and any agent of the Company or the
Trustee as the owner of such Security for all purposes whatsoever. None of the Company, the
Trustee or any agent of the Company or the Trustee will have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial ownership interests
of a Global Security or maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

     Section 8.04. Company-Owned Securities Disregarded. In determining whether the holders of the
requisite aggregate principal amount of Securities have concurred in any demand, request, notice,
direction, consent or waiver under this Indenture, Securities which are owned by the Company or any
other obligor on the Securities with respect to which such determination is being made or by any
person directly or indirectly controlling or controlled by or under direct or indirect common
control with the Company or any other obligor on the Securities with respect to which such
determination is being made shall be disregarded and deemed not to be Outstanding for the purpose
of any such determination; provided, that for the purposes of determining whether the Trustee shall
be protected in relying on any such demand, request, notice, direction, consent or waiver only
Securities which the Trustee knows are so owned shall be so disregarded. Securities so owned which
have been pledged in good faith may be regarded as Outstanding for the purposes of this Section
8.04 if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right to vote
such Securities and that the pledgee is not a person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any such other
obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the
advice of counsel shall be full protection to the Trustee.

     Section 8.05. Revocation of Consents; Future Holders Bound. At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by
the holders of the percentage in aggregate principal amount of the Securities of any or all series,
as the case may be, specified in this Indenture in connection with such action, any holder of a
Security which is shown by the evidence to be included in the Securities the holders of which have
consented to such action may, by filing written notice with the Trustee at its principal office and
upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such
Security. Except as aforesaid, any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders of such Security, irrespective
of whether or not any notation in regard thereto is made upon such Security or any Security issued
in exchange or substitution therefor.

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ARTICLE 9

SECURITYHOLDERS’ MEETINGS

     Section 9.01. Purposes of Meetings. A meeting of holders of Securities of any or all series
may be called at any time and from time to time pursuant to the provisions of this Article Nine for
any of the following purposes:

     (1) to give any notice to the Company or to the Trustee, to give any directions to the
Trustee, to consent to the waiving of any default hereunder and its consequences or to take any
other action authorized to be taken by Securityholders pursuant to any of the provisions of Article
Six;

     (2) to remove the Trustee and nominate a successor trustee pursuant to the provisions of
Article Seven;

     (3) to consent to the execution of an indenture or indentures supplemental hereto pursuant to
the provisions of Section 10.02; or

     (4) to take any other action authorized to be taken by or on behalf of the holders of any
specified aggregate principal amount of the Securities of any or all series, as the case may be,
under any other provision of this Indenture or under applicable law.

     Section 9.02. Call of Meetings by Trustee. The Trustee may at any time call a meeting of
holders of Securities of any or all series to take any action specified in Section 9.01, to be held
at such time and at such place in the Borough of Manhattan, The City of New York, as the Trustee
shall determine. Notice of every meeting of the holders of Securities of any or all series,
setting forth the time and the place of such meeting and in general terms the action proposed to be
taken at such meeting, shall be mailed to holders of Securities of each series affected at their
addresses as they shall appear on the registry books of the Company. Such notice shall be mailed
not less than 10 nor more than 90 days prior to the date fixed for the meeting.

     Section 9.03. Call of Meetings by Company or Securityholders. In case at any time the
Company, pursuant to a resolution of its Board of Directors, or the holders of at least ten percent
in aggregate principal amount of the Securities then Outstanding of any series that may be affected
by the action proposed to be taken at the meeting shall have requested the Trustee to call a
meeting of the holders of Securities of all series that may be so affected, by written request
setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee
shall not have mailed the notice of such meeting within 20 days after receipt of such request, then
the Company or such Securityholders, in the amount specified above, may determine the time and the
place in said Borough of Manhattan for such meeting and may call such meeting to take any action
authorized in Section 9.01, by mailing notice thereof as provided in Section 9.02.

     Section 9.04. Qualifications for Voting. To be entitled to vote at any meeting of
Securityholders a person shall (a) be a holder of one or more Securities with respect to which such
meeting is being held or (b) be a person appointed by an instrument in writing as proxy by a holder
of one or more such Securities. The only persons who shall be entitled to be present or to speak
at any meeting of Securityholders shall be the persons entitled to vote at such meeting and their
counsel, any representatives of the Trustee and its counsel and any representatives of the Company
and its counsel.

     Section 9.05. Quorum; Adjourned Meetings. The Persons entitled to vote a majority in
aggregate principal amount of the Securities of the relevant series at the time Outstanding shall
constitute a quorum for the transaction of all business specified in Section 9.01. No business
shall be transacted in

37

 

the absence of a quorum (determined as provided in this Section 9.05). In
the absence of a quorum within 30 minutes after the time appointed for any such meeting, the
meeting shall, if convened at the request of the holders of Securities (as provided in Section
9.03), be dissolved. In any other case the meeting shall be adjourned for a period of not less
than ten days as determined by the chairman of the meeting. In the absence of a quorum at any such
adjourned meeting, such adjourned meeting shall be further adjourned for a period of not less than
ten days as determined by the chairman of the meeting. Notice of the reconvening of any adjourned
meeting shall be given as provided in Section 9.02, except that such notice must be mailed not less
than five days prior to the date on which the meeting is scheduled to be reconvened.

     Subject to the foregoing, at the second reconvening of any meeting adjourned for lack of a
quorum, the Persons entitled to vote 25% in aggregate principal amount of the Securities of the
relevant series then Outstanding shall constitute a quorum for the taking of any action set forth
in the notice of the original meeting. Notice of the reconvening of an adjourned meeting shall
state expressly the percentage of the aggregate principal amount of the Securities of the relevant
series then Outstanding which shall constitute a quorum.

     At a meeting or any adjourned meeting duly convened and at which a quorum is present as
aforesaid, any resolution and all matters (except as limited by the proviso in Section 10.02) shall
be effectively passed and decided if passed or decided by the Persons entitled to vote the lesser
of (a) a majority in aggregate principal amount of the Securities of the relevant series then
Outstanding and (b) 75% in aggregate principal amount of the Securities represented and voting at
the meeting.

     Any holder of a Security who has executed in person or by proxy and delivered to the Trustee
an instrument in writing complying with the provisions of Article Eight shall be deemed to be
present for the purposes of determining a quorum and be deemed to have voted; provided that such
holder of a Security shall be considered as present or voting only with respect to the matters
covered by such instrument in writing.

     Section 9.06. Regulations. Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any meeting of
Securityholders, in regard to proof of the holder of Securities and of the appointment of proxies,
and in regard to the appointment and duties of inspectors of votes, the submission and examination
of proxies, certificates and other evidence of the right to vote, and such other matters concerning
the conduct of the meeting as it shall think fit.

     The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Securityholders as provided in
Section 9.03, in which case the Company or the Securityholders calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by majority vote of the meeting.

     Subject to the provisions of Section 8.04, at any meeting each holder of Securities with
respect to which such meeting is being held or proxy shall be entitled to vote the principal amount
(in the case of Original Issue Discount Securities, such principal amount to be determined as
provided in the definition of “Security or Securities; Outstanding” in Section 1.01) of such
Securities held or represented by him; provided, however, that no vote shall be cast or counted at
any meeting in respect of any such Security challenged as not Outstanding and ruled by the chairman
of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote
other than by virtue of such Securities held by him or instruments in writing as aforesaid duly
designating him as the person to vote on behalf of other such Securityholders. Any meeting of
holders of Securities with respect to which a meeting was duly called

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pursuant to the provisions of
Sections 9.02 or 9.03 may be adjourned from time to time by a majority of those present, whether or
not constituting a quorum, and the meeting may be held as so adjourned without further notice.

     Section 9.07. Voting. The vote upon any resolution submitted to any meeting of holders of
Securities with respect to which such meeting is being held shall be by written ballots on which
shall be subscribed the signatures of such holders of Securities or of their representatives by
proxy and the principal amount (in the case of Original Issue Discount Securities, such principal
amount to be determined as provided in the definition of “Security or Securities; Outstanding” in
Section 1.01) and
number or numbers of such Securities held or represented by them. The permanent chairman of
the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for
or against any resolution and who shall make and file with the secretary of the meeting their
verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of
the proceedings of each meeting of Securityholders shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the inspectors of votes
on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the
facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as
provided in Section 9.02. The record shall show the principal amount of the Securities (in the
case of Original Issue Discount Securities, such principal amount to be determined as provided in
the definition of “Security or Securities; Outstanding” in Section 1.01) voting in favor of or
against any resolution. The record shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company
and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto
the ballots voted at the meeting.

     Any record so signed and verified shall be conclusive evidence of the matters therein stated.

     Section 9.08. No Delay of Rights by Meeting. Nothing in this Article Nine contained shall be
deemed or construed to authorize or permit, by reason of any call of a meeting of Securityholders
of any or all series or any rights expressly or impliedly conferred hereunder to make such call,
any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the
Trustee or to the Securityholders of any or all such series under any of the provisions of this
Indenture or of the Securities.

ARTICLE 10

SUPPLEMENTAL INDENTURES

     Section 10.01. Supplemental Indentures without Consent of Securityholders. The Company, when
authorized by resolution of the Board of Directors, and the Trustee may from time to time and at
any time enter into an indenture or indentures supplemental hereto for one or more of the following
purposes:

     (a) to evidence the succession of another Person to the Company, or successive successions,
and the assumption by the successor Person of the covenants, agreements and obligations of the
Company pursuant to Article Eleven hereof;

     (b) to add to the covenants of the Company such further covenants, restrictions, conditions or
provisions for the protection of the holders of all or any series of Securities (and if such
covenants are to be for the benefit of less than all series of Securities, stating that such
covenants are expressly being included for the benefit of such series) as the Board of Directors of
the Company and the Trustee shall consider to be for the protection of the holders of such
Securities, and to make the occurrence, or the occurrence and continuance, of a default in any of
such additional covenants, restrictions, conditions or provisions a default or an Event of Default
permitting the enforcement of all or any of the several

39

 

remedies provided in this Indenture as
herein set forth; provided, however, that in respect of any such additional covenant, restriction,
condition or provision, such supplemental indenture may provide for a particular period of grace
after default (which period may be shorter or longer than that allowed in the case of other
defaults) or may provide for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default;

     (c) to add any additional Events of Default (and, if such Events of Default are to be
applicable to less than all series of Securities, stating that such Events of Default are
applicable only to specified series);

     (d) to provide for the issuance under this Indenture of Securities in coupon form (including
Securities registrable as to principal only) and to provide for exchangeability of such Securities
with the Securities of the same series issued hereunder in fully registered form and to make all
appropriate changes for such purpose;

     (e) to establish the forms or terms of Securities of any series or of the Coupons appertaining
to such Securities as permitted by Sections 2.01 and 2.02;

     (f) to provide for uncertificated debt securities in addition to or in place of certificated
debt securities;

     (g) to cure any ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture which may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture, or to make such other provisions in regard to matters or
questions arising under this Indenture which shall not materially adversely affect the interests of
the holders of any Securities; provided, however, that any amendment made solely to conform the
provisions of this Indenture to the description of the Securities contained in the prospectus or
other offering document pursuant to which the Securities were sold will be deemed not to adversely
affect the interests of the holders of the Securities;

     (h) to modify or amend this Indenture to permit the qualification of this Indenture or any
indentures supplemental hereto under the Trust Indenture Act of 1939, as amended;

     (i) to add to or change any provision of this Indenture to provide that bearer Securities may
be registrable as to principal, to change or eliminate any restrictions on the payment of principal
or premium with respect to registered Securities or of principal, premium or interest with respect
to bearer Securities, or to permit registered Securities to be exchanged for bearer Securities;
provided, however, that any such addition, change or elimination may not materially adversely
affect the interests of any holders of Securities at the time Outstanding nor permit or facilitate
the issuance of Securities of any series in uncertificated form;

     (j) to add guarantees with respect to the Securities of any series or to secure the Securities
of any series;

     (k) to evidence and provide for the acceptance of appointment hereunder by a successor or
separate trustee with respect to the Securities of one or more series or to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one trustee, pursuant to the requirements of
Section 7.11 or pursuant to Section 2.02(17); and

40

 

     (l) to add to, change or eliminate any of the provisions of this Indenture; provided, however,
that any such addition, change or elimination may be effected only when no Outstanding Security of
any series created prior to the execution of such supplemental indenture is entitled to the benefit
of such provision.

     The Trustee is hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and stipulations which may be
therein contained and to accept the conveyance, transfer and assignment of any property thereunder,
but the Trustee shall not be obligated to, but may in its discretion, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this Section 10.01 may be executed
by the Company and the Trustee without the consent of the holders of any of the Securities at the
time Outstanding, notwithstanding any of the provisions of Section 10.02.

     Section 10.02. Supplemental Indentures with Consent of Securityholders. With the written
consent (evidenced as provided in Sections 8.01 and 8.02) of the holders of a majority in the
aggregate principal amount of the Securities of each series (each series voting as a class)
affected by such supplemental indenture at the time Outstanding, the Company and the Trustee may
from time to time and at any time enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or any supplemental indenture or of modifying in any manner the rights of the
holders of the Securities or each such series; provided, however, that no such supplemental
indenture shall (i) change the stated maturity of principal of, or any installment of principal of
or interest on, any Security, (ii) reduce the rate of or extend the time of payment of interest, if
any, on any Security or alter the manner of calculation of interest payable on any Security (except
as part of any remarketing of the Securities of any series, or any interest rate reset with respect
thereto in each case in accordance with the terms thereof), (iii) reduce the principal amount or
premium, if any, on any Security, (iv) make the principal amount or premium, if any, or interest,
if any, on any Security payable in any coin or currency other than that provided in any Security,
(v) reduce the percentage in principal amount of Securities of any series the holders of which are
required to consent to any such supplemental indenture or any waiver of any past default or Event
of Default pursuant to Section 6.07(b), (vi) change any place of payment where the Securities of
any series or interest thereon is payable, (vii) impair the right of any holder of a Security to
institute suit for any such payment, reduce the amount of the principal of an Original Issue
Discount Security that would be due and payable upon an acceleration of the maturity thereof
pursuant to Section 6.01, adversely affect the right of repayment, if any, at the option of the
holder or extend the time or reduce the amount of any payment to any sinking fund or analogous
obligation relating to any Security, or (viii) modify any provision of Section 6.07(b) or 10.02
(except to increase any such percentage or to provide that certain other provisions of the
Indenture cannot be modified or waived without the consent of the holder of each Security so
affected), without, in the case of each of the foregoing clauses (i) through (viii), the consent of
the holder of each Security so affected. A supplemental indenture which changes or eliminates any
covenant or other provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the rights of the holders
of Securities of such series with respect to such covenant or other provision, shall be deemed not
to affect the rights under this Indenture of the holders of Securities of any other series.

     Upon the request of the Company, accompanied by a copy of the resolutions of the Board of
Directors authorizing the execution and delivery of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders as aforesaid, the Trustee
shall join with the Company in the execution of such supplemental indenture unless such
supplemental indenture affects the

41

 

Trustee’s own rights, duties or immunities under this Indenture
or otherwise, in which case the Trustee may in its discretion but shall not be obligated to, enter
into such supplemental indenture.

     It shall not be necessary for the consent of the Securityholders under this Section 10.02 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof.

     Section 10.03. Compliance with Trust Indenture Act; Effect of Supplemental Indentures. Any
supplemental indenture executed pursuant to the provisions of this Article Ten shall comply with
the Trust Indenture Act of 1939, as then in effect. Upon the execution of any supplemental
indenture pursuant to the provisions of this Article Ten, this Indenture shall be deemed to be
modified and amended in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders
of the Securities shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

     Section 10.04. Notation on Securities. Securities authenticated and delivered after the
execution of any supplemental indenture pursuant to the provisions of this Article Ten may bear a
notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company or the Trustee shall so determine, new Securities of any series so
modified as to conform, in the opinion of the Trustee and the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture may be prepared and
executed by the Company, authenticated by the Trustee and delivered in exchange for the Securities
of such series then Outstanding.

     Section 10.05. Evidence of Compliance of Supplemental Indenture to be Furnished Trustee. The
Trustee, subject to the provisions of Sections 7.01 and 7.02, may receive an Officers’ Certificate
and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant
hereto complies with the requirements of this Article Ten.

ARTICLE 11

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

     Section 11.01. Company May Consolidate, Merge Or Sell Assets on Certain Terms. Nothing
contained in this Indenture or in any of the Securities shall be deemed to prevent the
consolidation or merger of the Company with or into any other corporation, or the merger into the
Company of any other corporation, or the sale by the Company of its property and assets as, or
substantially as, an entirety, or otherwise; provided, however, that (a) in case of any such
consolidation or merger the corporation resulting from such consolidation or any corporation other
than the Company into which such merger shall be made shall succeed to and be substituted for the
Company with the same effect as if it has been named herein as a party hereto and shall become
liable and be bound for, and shall expressly assume, by a supplemental indenture hereto, executed
and delivered to the Trustee, the due and punctual payment of the principal of, premium, if any,
and interest, if any, on all the Securities of each series and the Coupons, if any, appertaining
thereto and the performance and observance of each and every covenant and condition of this
Indenture on the part of the Company to be performed or observed, (b) as a condition of any such
sale of the property and assets of the Company as, or substantially as, an entirety, the
corporation to which such property and assets shall be sold shall (i) expressly assume the due and
punctual payment of the principal of, premium, if any, and interest, if any, on all the Securities
of each series and the Coupons, if any, appertaining thereto and the performance and observance of
all the covenants and conditions of this Indenture on the part of the Company to be performed or
observed and (ii) simultaneously with the delivery to it of the conveyances or instruments of
transfer of such property

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and assets, execute and deliver to the Trustee a supplemental indenture
thereto, in form satisfactory to the Trustee, whereby such purchasing corporation shall so assume
the due and punctual payment of the
principal of, premium, if any, and interest, if any, on all the Securities of each series and
the Coupons, if any, appertaining thereto and the performance and observance of each and every
covenant and condition of this Indenture on the part of the Company to be performed or observed, to
the same extent that the Issuer is bound and liable, (c) either the Company is the continuing
corporation or the successor corporation is a corporation or limited liability company organized
under the laws of the United States of America or any state thereof or the District of Columbia,
Switzerland or any member country of the European Union, and (d) the Company is not, or such
successor corporation is not, immediately after such merger, consolidation or sale, in default in
the performance of any obligations under this Indenture.

     Section 11.02. Successor Corporation or Limited Liability Company to be Substituted. In case
of any such merger, consolidation or sale, and upon any such assumption by the successor
corporation or limited liability company, such successor corporation or limited liability company
shall succeed to and be substituted for the Company, with the same effect as if it had been named
herein as the Company, and the Company shall be relieved of any further obligation under this
Indenture and under the Securities. Such successor corporation or limited liability company
thereupon may cause to be signed, and may issue either in its own name or in the name of Starwood
Hotels and Resorts Worldwide, Inc., any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the
order of such successor corporation or limited liability company, instead of the Company, and
subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee
shall authenticate and shall deliver any Securities which previously shall have been signed and
delivered by the officers of the Company to the Trustee for authentication, and any Securities
which such successor corporation or limited liability company thereafter shall cause to be signed
and delivered to the Trustee for that purpose. All the Securities so issued shall in all respects
have the same legal rank and benefit under this Indenture as the Securities theretofore or
thereafter issued in accordance with the terms of this Indenture as though all of such Securities
had been issued at the date of the execution hereof.

     In case of any such merger, consolidation or sale, such changes in phraseology and form (but
not in substance) may be made in the Securities thereafter to be issued as may be appropriate.

     Section 11.03. Documents to be Given Trustee. The Trustee, subject to the provisions of
Sections 7.01 and 7.02, may receive an Officers’ Certificate and an Opinion of Counsel as
conclusive evidence that any such consolidation, merger or sale, and any such assumption, comply
with the provisions of this Article Eleven.

ARTICLE 12

SATISFACTION AND DISCHARGE OF INDENTURE

     Section 12.01. Discharge of Indenture. When (a) the Company shall deliver to the Trustee for
cancellation all Securities theretofore authenticated (other than any Securities which shall have
been destroyed, lost or stolen or in lieu of or in substitution for which other Securities shall
have been authenticated and delivered, or which shall have been paid, pursuant to the provisions of
Section 2.07 or Securities for whose payment money has theretofore been deposited in trust and
thereafter repaid to the Company as provided in Section 12.06) and not theretofore cancelled, or
(b) all the Securities not theretofore cancelled or delivered to the Trustee for cancellation shall
have become due and payable, or are by their terms to become due and payable within one year or are
to be called for redemption within one year under arrangements satisfactory to the Trustee for the
giving of notice of redemption, and the Company shall deposit with the Trustee, in trust, funds
sufficient to pay at maturity or upon redemption all of the Securities (other than any (i)
Securities which shall have been destroyed, lost or stolen and in lieu of or in substitution for
which other Securities shall have been authenticated and delivered, or which

43

 

shall have been paid,
pursuant to the provisions of Section 2.07 or (ii) Securities for whose payment
money has theretofore been deposited in trust and thereafter repaid to the Company as provided
in Section 12.06) not theretofore cancelled or delivered to the Trustee for cancellation, including
principal, premium, if any, and interest, if any, due or to become due to such date of maturity or
date fixed for redemption, as the case may be, and if in either case the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease
to be of further effect (except as to (i) rights of registration of transfer and exchange of
Securities, (ii) substitution of mutilated, defaced, destroyed, lost or stolen Securities, (iii)
rights of holders to receive payments of principal thereof and interest thereon, and remaining
rights of the holders to receive mandatory sinking fund payments, if any, (iv) the rights,
obligations and immunities of the Trustee hereunder and (v) the rights of the Securityholders as
beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or
any of them), and the Trustee, on demand of the Company accompanied by an Officers’ Certificate and
an Opinion of Counsel and at the cost and expense of the Company, shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture, the Company, however, hereby agreeing
to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by
the Trustee in connection with this Indenture or the Securities.

     Section 12.02. Legal Defeasance. On the 91st day following the deposit referred to in clause
(a), the Company will be deemed to have paid and will be discharged from its obligations in respect
of the Securities of the series with respect to which such deposit shall have been made and the
Indenture with respect to such Securities, other than (i) the rights of the Securityholders of
Outstanding Securities of such series to receive, solely from the trust fund described in clause
(a), payments in respect of the principal of and interest on such securities when such payments are
due and (ii) its obligations in Article Two and Sections 4.02, 7.06, 7.10, 12.06; and 12.07
provided the following conditions have been satisfied:

     (a) The Company has irrevocably deposited in trust with the Trustee, as trust funds solely for
the benefit of the Securityholders of such series, money sufficient, or U.S. Government
Obligations, the principal of and interest on which shall be sufficient, or a combination thereof
sufficient, in the opinion of the Board of Directors of the Company evidenced by a resolution set
forth in an Officers’ Certificate delivered to the Trustee, without consideration of any
reinvestment, to pay principal of, premium, if any, and interest, if any, on the Securities of such
series to maturity or redemption, as the case may be, provided that any redemption before maturity
has been irrevocably provided for under arrangements satisfactory to the Trustee.

     (b) The deposit will not result in a breach or violation of, or constitute a default under,
the Indenture or any other agreement or instrument to which the Company is a party or by which it
is bound.

     (c) The Company has delivered to the Trustee either (x) a ruling received from the Internal
Revenue Service to the effect that the holders of the Securities of such series will not recognize
income, gain or loss for federal income tax purposes as a result of the defeasance and will be
subject to federal income tax on the same amount and in the same manner and at the same times as
would otherwise have been the case or (y) an Opinion of Counsel, based on a change in law after the
date of the Indenture, to the same effect as the ruling described in clause (x).

     (d) The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, in each case stating that all conditions precedent provided for herein relating to the
defeasance have been complied with.

     Prior to the end of the 91-day period, none of the Company’s obligations under the Indenture
with respect to the Securities of such series will be discharged. Thereafter, the Trustee, upon
the request
and at the cost and expense of the Company, will acknowledge in writing the discharge of the
Company’s

44

 

obligations under the Securities of such series and the Indenture with respect to such
series except for the surviving obligations specified above.

     As used herein, “U.S. Government Obligation” means (x) any security which is (i) a direct
obligation of the United States of America for the payment of which its full faith and credit is
pledged or (ii) an obligation 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 (i) or
(ii), is not callable or redeemable at the option of the issuer thereof, and (y) any depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933) as custodian
with respect to any U.S. Government Obligation which is specified in clause (x) above and held by
such bank for the account of the holder of such depositary receipt, or with respect to any specific
payment of principal of or interest on any U.S. Government Obligation which is so specified and
held, 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
or interest evidenced by such depositary receipt.

     Section 12.03. Covenant Defeasance. After the 91st day following the deposit referred to in
clause (a) with respect to the Securities of a series, the Company’s obligations set forth in the
covenant or covenants for such series of Securities established as contemplated by Section 2.02(20)
will terminate, and clauses (d) (to the extent relating to such covenant or covenants), (e) and (h)
of Section 6.01 will no longer constitute Events of Default with respect to the Securities of a
series, provided the following conditions have been satisfied:

     (a) the Company has complied with clauses (a), (b) and (d) of Section 12.02; and

     (b) the Company has delivered to the Trustee an Opinion of Counsel to the effect that the
holders of the Securities of such series will not recognize income, gain or loss for federal income
tax purposes as a result of the defeasance and will be subject to federal income tax on the same
amount and in the same manner and at the same times as would otherwise have been the case.

     Except as specifically stated above, none of the Company’s obligations under the Indenture
will be discharged.

     Section 12.04. Deposited Moneys to be Held in Trust by Trustee; Miscellaneous Provisions. All
moneys and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee
pursuant to the provisions of Section 12.02 or 12.03 shall be held in trust and applied by it to
the payment, either directly or through any paying agent (including the Company if acting as its
own paying agent), to the holders of the particular Securities for payment or redemption of which
such moneys or U.S. Government Obligations have been deposited with the Trustee, of all sums due
and to become due thereon for principal, premium, if any, and interest, if any.

     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 12.01 or 12.03
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 Securities.

     Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to
the Company from time to time upon request of the Company any money or U.S. Government Obligations
held by it as provided in Section 12.02 or 12.03 with respect to any Securities which, in the
opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof

45

 

delivered to the Trustee, are in excess of the amount thereof which would
then be required to be deposited to effect the legal defeasance or covenant defeasance, as the case
may be, with respect to such Securities.

     Section 12.05. Paying Agent to Repay Moneys Held. Upon the satisfaction and discharge of this
Indenture all moneys then held by any paying agent of the Securities (other than the Trustee)
shall, upon demand of the Company, be repaid to the Company or paid to the Trustee, and thereupon
such paying agent shall be released from all further liability with respect to such moneys.

     Section 12.06. Return of Unclaimed Moneys. Any moneys deposited with or paid to the Trustee
for payment of the principal of, premium, if any, or interest, if any, on Securities of any series
and not applied but remaining unclaimed by the holders of Securities of that series for two years
after the date upon which the principal of, premium, if any, or interest, if any, on such
Securities, as the case may be, shall have become due and payable, shall be repaid to the Company
by the Trustee on written demand; and the holder of any such Securities shall thereafter look only
to the Company for any payment which such holder may be entitled to collect and all liability of
the Trustee with respect to such money shall thereupon cease.

     Section 12.07. Reinstatement. If and for so long as the Trustee is unable to apply any money
or U.S. Government Obligations held in trust pursuant to Section 12.01, 12.02 or 12.03 by reason of
any legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under
the Indenture and the Securities will be reinstated as though no such deposit in trust had been
made. If the Company makes any payment of principal of or interest on any Securities because of
the reinstatement of its obligations, it will be subrogated to the rights of the Securityholders of
such Securities to receive such payment from the money or U.S. Government Obligations held in
trust.

ARTICLE 13

IMMUNITY OF INCORPORATORS,

STOCKHOLDERS, OFFICERS AND DIRECTORS

     Section 13.01. Indenture and Securities Solely Corporate Obligations. No recourse for the
payment of the principal of, premium, if any, or interest, if any, on any Security, or for any
claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in this Indenture or in any supplemental indenture, or in any
Security, or because of the creation of any indebtedness represented thereby, shall be had against
any incorporator, stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it being expressly understood that all such liability is
hereby expressly waived and released as a condition of, and as a consideration for, the execution
of this Indenture and the issue of the Securities.

ARTICLE 14

MISCELLANEOUS PROVISIONS

     Section 14.01. Provisions Binding on Company’s Successors. All the covenants, stipulations,
promises and agreements in this Indenture contained by the Company shall bind its successors and
assigns whether so expressed or not.

     Section 14.02. Official Acts by Successor Corporation. Any act or proceeding by any provision
of this Indenture authorized or required to be done or performed by any board, committee or officer
of the

46

 

Company shall and may be done and performed with like force and effect by the like board,
committee or officer of any corporation that shall at the time be the lawful sole successor of the
Company.

     Section 14.03. Addresses for Notices, Notice to Holders, Waiver. Any notice or demand which
by any provision of this Indenture is required or permitted to be given or served by the Trustee or
by the holders of Securities on the Company may be given or served by being deposited postage
prepaid by first class mail in a post office letter box addressed (until another address is filed
by the Company with the Trustee) to Starwood Hotels and Resorts Worldwide, Inc., 1111 Westchester
Avenue, White Plains, New York 10604. Any notice, direction, request or demand by any
Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for
all purposes, if given or made in writing at the principal office of the Trustee, addressed to the
attention of its corporate trust office as specified in Section 7.13 hereof.

     Where this Indenture provides for notice of holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each holder affected by such event, at his address as it appears in
the Security register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to holders is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular holder shall affect the sufficiency of such notice with respect to other holders.
Where this Indenture provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action taken in reliance upon
such waiver.

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

     Section 14.04. New York Contract. This Indenture and each Security shall be deemed to be a
contract made under the laws of the State of New York, and for all purposes shall be construed in
accordance with the laws of said State.

     Section 14.05. Evidence of Compliance with Conditions Precedent. Upon any application or
demand by the Company to the Trustee to take any action under any of the provisions of this
Indenture, the Company shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the proposed action have
been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

     Each certificate or opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant provided for in this Indenture shall include:
(1) a statement that the person making such certificate or opinion has read such covenant or
condition; (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinion contained in such certificate or opinion are based; (3) a
statement that, in the opinion of such person, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (4) a
statement as to whether or not, in the opinion of such person, such condition or covenant has
been complied with.

     Section 14.06. Legal Holidays. In any case where the date of maturity of interest, if any, on
or principal of, or premium, if any, on the Securities or the date fixed for redemption or
repayment of any

47

 

Security will be in The City of New York, New York, a Saturday, a Sunday, a legal
holiday or a day on which banking institutions are authorized or required by law or executive order
to close or remain closed, then payment of such interest, if any, on or principal of or premium, if
any, on the Securities need not be made on such date but may be made on the next succeeding day not
in such city, a Saturday, a Sunday, a legal holiday or a day on which banking institutions are
authorized or required by law or executive order to close or remain closed, with the same force and
effect as if made on the date of maturity or a date fixed for redemption or repayment, and no
interest shall accrue for the period from and after such date.

     Section 14.07. Securities in a Specified Currency other than Dollars. Unless otherwise
specified as contemplated by Section 2.02 with respect to a particular series of Securities,
whenever for purposes of this Indenture any action may be taken by the holders of a specified
percentage in aggregate principal amount of Securities of all series or all series affected by a
particular action at the time Outstanding and, at such time, there are Outstanding any Securities
of any series which are denominated in a Specified Currency other than Dollars then the principal
amount of Securities of such series which shall be deemed to be Outstanding for the purpose of
taking such action shall be that amount of Dollars that could be obtained for such amount of such
Specified Currency at the Market Exchange Rate. For purposes of this Section 14.07, Market
Exchange Rate shall mean the noon Dollar buying rate in New York City for cable transfers of the
Specified Currency published by the Federal Reserve Bank of New York. If such Market Exchange Rate
is not available for any reason with respect to such Specified Currency, the Trustee shall use, in
its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank
of New York or such other quotations as the Trustee shall deem appropriate. The provisions of this
paragraph shall apply in determining the equivalent principal amount in respect of Securities of a
series denominated in a Specified Currency other than Dollars in connection with any action taken
by holders of Securities pursuant to the terms of this Indenture, including, without limitation,
any determination contemplated in Section 6.01(d) or (e).

     All decisions and determination of the Trustee regarding the Market Exchange Rate or any
alternative determination provided for in the preceding paragraph shall be in its sole discretion
and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all
purposes and irrevocably binding upon the Company and all Securityholders.

     Section 14.08. Trust Indenture Act to Control. If and to the extent that any provision of
this Indenture limits, qualifies or conflicts with the duties imposed by, or with another provision
(an “incorporated provision”) included in this Indenture by operation of, Sections 310 to 318,
inclusive, of the Trust Indenture Act of 1939, such imposed duties or incorporated provision shall
control.

     Section 14.09. Table of Contents, Headings, etc. The table of contents and the titles and
headings of the articles and sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way modify or restrict any
of the terms or provisions hereof.

     Section 14.10. Execution in Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

     Section 14.11. Separability; Benefits. In case any one or more of the provisions contained in
this Indenture or in the Securities shall for any reason be held to be invalid, illegal or
unenforceable, in any respect, then, to the extent permitted by law, such invalidity, illegality or
unenforceability of the remaining provisions shall not in any way be affected or impaired thereby.

48

 

     Nothing in this Indenture or in the Securities, expressed or implied, shall give to any
person, other than the parties hereto and their successors hereunder, and the holders of the
Securities, any benefit or any legal or equitable right, remedy or claim under this Indenture.

49

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of                     ,
2007.

	 	 	 	 	 
	 	STARWOOD HOTELS AND RESORTS WORLDWIDE, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[CORPORATE SEAL]

Attest:

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:
	 	 
	 
	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[CORPORATE SEAL]

Attest:

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]