Document:

Exhibit 10.5

 

THE ST. PAUL TRAVELERS COMPANIES,
INC.

DEFERRED COMPENSATION
PLAN

FOR NON-EMPLOYEE DIRECTORS (the “Plan”)

 

 

Section 1.               Eligibility.  Each
member of the Board of Directors of The St. Paul Travelers Companies, Inc. (the
“Company”) or one of its subsidiaries, if so designated by the Board of
Directors, who is not an employee of the Company or any of its subsidiaries (an
“Eligible Director”) is eligible to participate in the Plan.

Section 2.               Administration.  The
Plan shall be administered, construed and interpreted by the Board of Directors
of the Company.  Pursuant to such
authorization, the Board of Directors shall have the responsibility for
carrying out the terms of the Plan.  To
the extent permitted under the securities laws applicable to compensation plans
including, without limitation, the requirements of Section 16(b) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) or under the
Internal Revenue Code of 1986, as amended (the “Code”), the Governance
Committee of the Board of Directors, or a subcommittee of the Governance
Committee, may exercise the discretion granted to the Board of Directors under
the Plan, provided that the composition of such Committee or subcommittee shall
satisfy the requirements of Rule 16b-3 under the Exchange Act, or any
successor rule or regulation.  The Board
of Directors or the Governance Committee may also designate a plan
administrator to manage the record keeping and other routine administrative
duties under the Plan.  In the absence of
the appointment of a plan administrator, the officer of the Company having
direct responsibility for compensation and benefits shall be the plan
administrator.

Section 3.               Stock-Based Compensation. 
The Board of Directors or the Governance Committee may determine that
the receipt of deferred stock units or other equity compensation that is
received by a director as taxable compensation (“Stock-Based Compensation”) may
be deferred hereunder at the election of a director.

Section 4.               Annual Fixed Director  Compensation.  The Board of Directors or the Governance
Committee may determine the payment of annual fixed director compensation, as
determined by the Board of Directors or the Governance Committee, including any
annual retainer, committee chair or vice-chair fees, additional fees, meeting
fees or other cash compensation (the “Annual Fixed Director Compensation”) to
each Eligible Director who served as a director may be deferred hereunder at
the election of a director.

Section 5.               Election to Defer.

(a)     Time of Election.  As soon as practicable prior to the beginning
of a calendar year, an Eligible Director may elect to defer receipt of the
Stock-Based Compensation and Annual Fixed Director Compensation by directing
that such amounts which otherwise would have been payable during such calendar
year and succeeding calendar years shall be credited to a deferred compensation
account (the “Director’s Account”). 
Under a valid election, such deferred compensation shall be payable in
accordance with paragraph 7(a) below.  Any
person who shall

become an Eligible Director during any calendar year, and who
was not an Eligible Director of the Company (or its subsidiaries) prior to the
beginning of such calendar year, may elect, within thirty (30) days after his
or her term begins, to defer payment of his or her Stock-Based Compensation or
Annual Fixed Director Compensation earned during the remainder of such calendar
year and for succeeding calendar years.

(b)     Form and Duration of Election.  An election to defer Stock-Based Compensation
or Annual Fixed Director Compensation shall be made by written notice executed
by the Eligible Director and filed with the Secretary of the Company.  Such election shall continue until the
Eligible Director terminates such election by subsequent written notice filed
with the Secretary of the Company. 
Amounts credited to the Director’s Account prior to the effective date
of termination shall not be affected by such termination and shall be
distributed only in accordance with the terms of the Plan.

(c)     Change of Election.  An Eligible Director who has terminated his
or her election to defer Stock-Based Compensation or Annual Fixed Director
Compensation hereunder may thereafter make another election in accordance with
paragraph 5(a) to defer such compensation for the calendar year subsequent to
the filing of such election and succeeding calendar years.

Section 6.               The Director’s Account. 
Shares of Common Stock that an Eligible Director has elected to defer
under the Plan shall be credited to the Director’s Account as Common Stock
Units as follows:

(a)     As of each date that a quarterly installment of the Annual Fixed
Director Compensation would otherwise be payable, there shall be credited to
the Director’s Account Common Stock Units equal to the number of shares of the
Company’s Common Stock obtained by dividing the amount of Stock-Based
Compensation payable in such quarter plus the Annual Fixed Director
Compensation allocable to such calendar quarter by the fair market value as
determined by the Compensation Committee pursuant to The St. Paul Travelers
Companies, Inc. 2004 Stock Incentive Plan (the “Stock Incentive Plan”).  If the applicable percentage of Annual Fixed
Director Compensation for the calendar quarter is not evenly divisible by such
average closing price of the Company’s Common Stock, the balance shall be
credited to the Director’s Account in fractional Common Stock Units.

(b)     At the end of each calendar quarter, there shall be credited to
the Director’s Account an amount equal to the cash dividends that would have
been paid on the number of shares of Common Stock credited to the Director’s
Account as of the dividend record date, if any, occurring during such calendar
quarter as if such shares had been shares of issued and outstanding Common Stock
on such record date, and such amounts shall be treated as reinvested in
additional shares of Common Stock Units on the payment date for quarterly
payments of Annual Fixed Director Compensation using fair market value as
determined by the Compensation Committee.

(c)     An Eligible Director shall not have any interest in the cash or
Common Stock in his or her Director’s Account until such cash or Common Stock
is distributed in accordance with the Plan.

2

(d)     Common Stock Units credited to the director’s accounts as
deferral of Stock-Based Compensation or Annual Fixed Director Compensation or
as fractional Common Stock Units, reinvested dividends or other awards shall be
issued exclusively from and pursuant to the Stock Incentive Plan.

Section 7.               Distribution from Accounts.

(a)     Form of Election.  At the time an Eligible Director makes an
election to defer receipt of Stock-Based Compensation or Annual Fixed Director
Compensation pursuant to paragraphs 5(a) or 5(c), such Director shall also file
with the Secretary of the Company a written election with respect to the
distribution of the aggregate amount of shares credited to the Director’s
Account.  An Eligible Director may elect
to receive such amount in one lump-sum payment or in a number of approximately
equal annual installments (provided the payout period does not exceed 15
years).  The lump-sum payment or the
first installment shall be paid as of (i) the first business day of any
calendar year subsequent to the date the Annual Fixed Director Compensation
would otherwise be payable, as specified by the Director, (ii) the first
business day of the calendar quarter immediately following the cessation of the
Eligible Director’s service as a director of the Company or (iii) the earlier
of (i) or (ii), as the Eligible Director may elect.  Subsequent installments shall be paid as of
the first business day of each succeeding annual installment period until the
entire amount credited to the Director’s Account shall have been paid.  A cash payment will be made with the final
installment for any fraction of a share of Common Stock credited to the
Director’s Account.

(b)     Adjustment of Method of Distribution.  An Eligible Director participating in the
Plan may, prior to the beginning of any calendar year, file another written
election with the Secretary of the Company electing to change the date and/or
method of distribution of the aggregate amount of cash and shares of Common
Stock to be credited to the Director’s Account for services rendered as a
director commencing with such calendar year. 
Amounts credited to the Director’s Account prior to the effective date
of such change (the “Prior Amounts”) shall also be affected by such change and
shall be distributed in accordance with the most recent election with respect
to the Prior Amounts except as specified in this paragraph.  The election to change the date and/or method
of distribution will effectively defer the date on which Prior Amounts are to
be paid, and/or extend the payout period if that written election to effect
such change is filed with the Secretary of the Company at least one (1) year
before such change is to take effect. 
The election to change the date and/or method of distribution will
effectively accelerate the date on which the Prior Amounts are to be paid
and/or shorten the payout period if a written election to effect such change is
filed with the Secretary of the Company at least one (1) year before such
change is to effect.  Notwithstanding the
foregoing, in the event an Eligible Director suffers a severe financial
hardship outside the control of such 
Director, as determined by the Governance Committee, the Eligible
Director may elect to advance or defer the date of distribution of his or her
Director’s Account or change the method of distribution thereof and may also
cease the deferral of current calendar year compensation.

(c)     Change of Control.  Notwithstanding anything to the contrary
contained herein, upon a “Change of Control” (as defined in the Stock Incentive
Plan), the full number of shares of Common Stock and cash in each Director’s
Account shall be distributable on 

3

the later of the date six months and one day following the “Change
of Control” or the distribution date(s) previously elected by an Eligible
Director.

Section 8.               Distribution on Death. 
If an Eligible Director should die before all amounts credited to the
Director’s Account shall have been paid in accordance with the election
referred to in paragraph 7, the balance in such Director’s Account as of
the date of such Director’s death shall be paid promptly following such
Director’s death, in accordance with the method of payment elected by the
Eligible Director, to the beneficiary designated in writing by such
Director.  Such balance shall be paid to
the spouse of the Eligible Director or, if no spouse, then to the estate of the
Eligible Director if (a) no such designation has been made or (b) the designated
beneficiary shall have predeceased the Director and no further beneficiary
designation has been made.

Section 9.               Miscellaneous.

(a)     The right of an Eligible Director to receive any amount in the
Director’s Account shall not be transferable or assignable by such Director,
except by will or by the laws of descent and distribution, and no part of such
amount shall be subject to attachment or other legal process.

(b)     Except as otherwise set forth herein and as required to reserve
shares of Common Stock for issuance pursuant to the terms hereof, the Company
shall not be required to reserve or otherwise set aside funds for the payment
of its obligations hereunder.  The
Company shall make available as and when required a sufficient number of shares
of Common Stock to meet the requirements arising under the Plan.  Such shares shall be issued under and
pursuant to the Stock Incentive Plan.

(c)     The establishment and maintenance of, or allocation and credits
to, the Director’s Account shall not vest in the Eligible Director or his
beneficiary any right, title or interest in and to any specific assets of the
Company.  An Eligible Director shall not
have any dividend or voting rights or any other rights of a stockholder (except
as expressly set forth in paragraph 6(b) with respect to dividends and as
provided in subparagraph (g) below) until the shares of Common Stock credited
to a Director’s Account are distributed. 
The rights of an Eligible Director to receive payments under this Plan
shall be no greater than the right of an unsecured general creditor of the
Company.

(d)     Notwithstanding any other provision hereof, if a director’s
balance at the time of termination of service as a director or retirement is
less than $25,000, such balance shall be paid in full on the first day of the
calendar quarter following such termination of service.

(e)     The Plan shall continue in effect until terminated by the Board
of Directors.  The Board of Directors may
at any time amend or terminate the Plan; provided, however, that (i) no
amendment or termination shall impair the rights of an Eligible  Director with respect to amounts then
credited to the Director’s Account; and (ii) no amendment shall become
effective without approval of the shareholders of the Company if such
shareholder approval is required to enable the Plan to satisfy applicable state
or Federal statutory or regulatory requirements.

4

(f)      Each Eligible Director participating in the Plan will receive
an annual statement indicating the amount of cash and number of shares of
Common Stock or Common Stock Units credited to the Director’s Account, as of
the end of the preceding calendar year.

(g)     If adjustments are made to outstanding shares of Common Stock as
a result of stock dividends, stock splits, recapitalizations, mergers,
consolidations and similar transactions, an appropriate adjustment shall be
made in the number of shares of Common Stock or Common Stock Units credited to
the Director’s Account.

(h)     Shares of Common Stock or Common Stock Units that may be granted
under the Plan shall be subject to adjustment upon the occurrence of
adjustments to the outstanding Common Stock described in paragraph 10(f)
hereof.

(i)      The validity, construction, interpretation, administration and
effect of the Plan and of its rules and regulations, and rights relating to the
Plan, shall be determined solely in accordance with the laws of the State of
Minnesota, without regard to the conflicts of laws provisions thereof.

(j)      All claims and disputes between an Eligible Director and the Company
arising out of the Plan shall be submitted to arbitration in accordance with
the then current arbitration policy of the Company.  Notice of demand for arbitration shall be
given in writing to the other party and shall be made within a reasonable time
after the claim or dispute has arisen. 
The award rendered by the arbitrator shall be final, and judgment may be
entered upon it in accordance with applicable law in any court having
jurisdiction thereof.  The provisions of
this Section 10(i) shall be specifically enforceable under applicable law
in any court having jurisdiction thereof.

(k)     If any term or provision of this Plan or the application thereof
to any person or circumstances shall, to any extent, be invalid or
unenforceable, then the remainder of the Plan, or the application of such term
or provision to persons or circumstances other than those as to which it is
held invalid or unenforceable, shall not be affected thereby, and each term and
provision hereof shall be valid and be enforced to the fullest extent permitted
by applicable law.

5EXHIBIT 4.1

 

EXECUTION COPY

 

Rainbow National Services LLC

 

RNS Co-Issuer Corporation

 

and the Guarantors listed on the signature pages
hereof

 

 

83⁄4% SENIOR NOTES DUE 2012

 

_________________________

 

 

Indenture

 

Dated as of August 20, 2004

 

_________________________

 

 

The Bank of New York

 

Trustee

 

_________________________

 

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE

  	
   

  
	
  DEFINITIONS
  AND INCORPORATION

  	
   

  
	
  BY
  REFERENCE

  	
   

  
	
   

  	
   

  
	
  Section 1.01.
  Definitions

  	
   

  
	
  Section 1.02.
  Other Definitions

  	
   

  
	
  Section 1.03.
  Incorporation by Reference of Trust Indenture Act

  	
   

  
	
  Section 1.04.
  Rules of Construction

  	
   

  
	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  
	
  THE
  NOTES

  	
   

  
	
   

  	
   

  
	
  Section 2.01.
  Form and Dating

  	
   

  
	
  Section 2.02.
  Execution and Authentication

  	
   

  
	
  Section 2.03.
  Methods of Receiving Payments on the Notes

  	
   

  
	
  Section 2.04.
  Registrar and Paying Agent

  	
   

  
	
  Section 2.05.
  Paying Agent to Hold Money in Trust

  	
   

  
	
  Section 2.06.
  Holder Lists

  	
   

  
	
  Section 2.07.
  Transfer and Exchange

  	
   

  
	
  Section 2.08.
  Replacement Notes

  	
   

  
	
  Section 2.09.
  Outstanding Notes

  	
   

  
	
  Section 2.10.
  Treasury Notes

  	
   

  
	
  Section 2.11.
  Temporary Notes

  	
   

  
	
  Section 2.12.
  Cancellation

  	
   

  
	
  Section 2.13.
  Defaulted Interest

  	
   

  
	
  Section 2.14.
  CUSIP Numbers

  	
   

  
	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  
	
  REDEMPTION AND OFFERS TO

  PURCHASE

  	
   

  
	
   

  	
   

  
	
  Section 3.01.
  Notices to Trustee

  	
   

  
	
  Section 3.02.
  Selection of Notes to Be Redeemed

  	
   

  
	
  Section 3.03.
  Notice of Redemption

  	
   

  
	
  Section 3.04.
  Effect of Notice of Redemption

  	
   

  
	
  Section 3.05.
  Deposit of Redemption Price

  	
   

  
	
  Section 3.06.
  Notes Redeemed in Part

  	
   

  
	
  Section 3.07.
  Optional Redemption

  	
   

  
	
  Section 3.08.
  Repurchase Offers

  	
   

  
	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  Section 4.01.
  Payment of Notes

  	
   

  

 

i

 

	
  Section 4.02.
  Maintenance of Office or Agency

  	
   

  
	
  Section 4.03.
  Reports

  	
   

  
	
  Section 4.04.
  Compliance Certificate

  	
   

  
	
  Section 4.05. Taxes

  	
   

  
	
  Section 4.06.
  Stay, Extension and Usury Laws

  	
   

  
	
  Section 4.07.
  Restricted Payments

  	
   

  
	
  Section 4.08.
  Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries

  	
   

  
	
  Section 4.09.
  Incurrence of Indebtedness and Issuance of Preferred Stock

  	
   

  
	
  Section 4.10.
  Asset Sales

  	
   

  
	
  Section 4.11.
  Transactions with Affiliates

  	
   

  
	
  Section 4.12. Liens

  	
   

  
	
  Section 4.13.
  Business Activities

  	
   

  
	
  Section 4.14.
  Offer to Repurchase upon a Change of Control

  	
   

  
	
  Section 4.15.
  [Intentionally omitted]

  	
   

  
	
  Section 4.16.
  Designation of Restricted and Unrestricted Subsidiaries

  	
   

  
	
  Section 4.17.
  Payments for Consent

  	
   

  
	
  Section 4.18.
  Guarantees

  	
   

  
	
  Section 4.19.
  Suspension of Certain Covenants and Agreements

  	
   

  
	
  Section 4.20.
  Limitation on Issuances and Sales of Equity Interests in Restricted
  Subsidiaries

  	
   

  
	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  
	
  SUCCESSORS

  	
   

  
	
   

  	
   

  
	
  Section 5.01.
  Merger, Consolidation or Sale of Assets

  	
   

  
	
  Section 5.02.
  Successor Corporation Substituted

  	
   

  
	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  
	
  Section 6.01.
  Events of Default

  	
   

  
	
  Section 6.02.
  Acceleration

  	
   

  
	
  Section 6.03.
  Other Remedies

  	
   

  
	
  Section 6.04.
  Waiver of Past Defaults

  	
   

  
	
  Section 6.05.
  Control by Majority

  	
   

  
	
  Section 6.06.
  Limitation on Suits

  	
   

  
	
  Section 6.07.
  Rights of Holders of Notes to Receive Payment

  	
   

  
	
  Section 6.08.
  Collection Suit by Trustee

  	
   

  
	
  Section 6.09.
  Trustee May File Proofs of Claim

  	
   

  
	
  Section 6.10.
  Priorities

  	
   

  
	
  Section 6.11.
  Undertaking for Costs

  	
   

  
	
   

  	
   

  
	
  ARTICLE SEVEN

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  
	
  Section 7.01.
  Duties of Trustee

  	
   

  
	
  Section 7.02.
  Certain Rights of Trustee

  	
   

  

 

ii

 

	
  Section 7.03.
  Trustee’s Disclaimer

  	
   

  
	
  Section 7.04.
  May Hold Securities

  	
   

  
	
  Section 7.05.
  Money Held in Trust

  	
   

  
	
  Section 7.06.
  Compensation and Reimbursement

  	
   

  
	
  Section 7.07.
  Eligibility; Disqualification

  	
   

  
	
  Section 7.08.
  Replacement of Trustee

  	
   

  
	
  Section 7.09.
  Acceptance of Appointment by Successor.

  	
   

  
	
  Section 7.10.
  Merger, Conversion, Consolidation or Succession to Business

  	
   

  
	
  Section 7.11.
  Preferential Collection of Claims Against Issuers

  	
   

  
	
  Section 7.12.
  Trustee’s Application for Instructions from the Issuers.

  	
   

  
	
  Section 7.13.
  Notice of Defaults

  	
   

  
	
   

  	
   

  
	
  ARTICLE EIGHT

  	
   

  
	
  DEFEASANCE AND
  COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  
	
  Section 8.01.
  Option to Effect Legal Defeasance or Covenant Defeasance

  	
   

  
	
  Section 8.02.
  Legal Defeasance and Discharge

  	
   

  
	
  Section 8.03.
  Covenant Defeasance

  	
   

  
	
  Section 8.04.
  Conditions to Legal or Covenant Defeasance

  	
   

  
	
  Section 8.05.
  Deposited Money and Government Securities to Be Held in Trust; Other
  Miscellaneous Provisions

  	
   

  
	
  Section 8.06.
  Reinstatement

  	
   

  
	
   

  	
   

  
	
  ARTICLE NINE

  	
   

  
	
  AMENDMENT,
  SUPPLEMENT AND WAIVER

  	
   

  
	
   

  	
   

  
	
  Section 9.01.
  Without Consent of Holders of Notes

  	
   

  
	
  Section 9.02.
  With Consent of Holders of Notes

  	
   

  
	
  Section 9.03.
  Compliance with Trust Indenture Act

  	
   

  
	
  Section 9.04.
  Revocation and Effect of Consents

  	
   

  
	
  Section 9.05.
  Notation on or Exchange of Notes

  	
   

  
	
  Section 9.06.
  Trustee to Sign Amendments, Etc

  	
   

  
	
   

  	
   

  
	
  ARTICLE TEN

  	
   

  
	
  NOTE GUARANTEES

  	
   

  
	
   

  	
   

  
	
  Section 10.01.
  Guarantee

  	
   

  
	
  Section 10.02.
  Limitation on Guarantor Liability

  	
   

  
	
  Section 10.03.
  Execution and Delivery of Note Guarantee

  	
   

  
	
  Section 10.04.
  Guarantors May Consolidate, Etc., on Certain Terms

  	
   

  
	
  Section 10.05.
  Release of Guarantor

  	
   

  
	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  
	
  Section 11.01.
  Satisfaction and Discharge

  	
   

  
	
  Section 11.02.
  Deposited Money and Government Securities to Be Held in Trust; Other
  Miscellaneous Provisions

  	
   

  

 

iii

 

	
  Section 11.03.
  Repayment to the Issuers

  	
   

  
	
   

  	
   

  
	
  ARTICLE TWELVE

  	
   

  
	
  [INTENTIONALLY OMITTED]

  	
   

  
	
   

  	
   

  
	
  ARTICLE THIRTEEN

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section 13.01.
  Trust Indenture Act Controls

  	
   

  
	
  Section 13.02.
  Notices

  	
   

  
	
  Section 13.03.
  Communication by Holders of Notes with Other Holders of Notes

  	
   

  
	
  Section 13.04.
  Certificate and Opinion as to Conditions Precedent

  	
   

  
	
  Section 13.05.
  Statements Required in Certificate or Opinion

  	
   

  
	
  Section 13.06.
  Rules by Trustee and Agents

  	
   

  
	
  Section 13.07.
  No Personal Liability of Directors, Officers, Employees and Stockholders

  	
   

  
	
  Section 13.08.
  Governing Law

  	
   

  
	
  Section 13.09.
  Consent to Jurisdiction

  	
   

  
	
  Section 13.10.
  Form of Documents Delivered to Trustee

  	
   

  
	
  Section 13.11.
  Successors

  	
   

  
	
  Section 13.12.
  Severability

  	
   

  
	
  Section 13.13.
  Counterpart Originals

  	
   

  
	
  Section 13.14.
  Acts of Holders

  	
   

  
	
  Section 13.15.
  Benefit of Indenture

  	
   

  
	
  Section 13.16.
  Table of Contents, Headings, Etc.

  	
   

  
	
   

  	
   

  

 

EXHIBITS

 

	
  Exhibit A

  	
  FORM OF
  NOTE

  
	
   

  	
   

  
	
  Exhibit B

  	
  FORM OF
  CERTIFICATE OF TRANSFER

  
	
   

  	
   

  
	
  Exhibit C

  	
  FORM OF
  CERTIFICATE OF EXCHANGE

  
	
   

  	
   

  
	
  Exhibit D

  	
  FORM OF
  CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

  
	
   

  	
   

  
	
  Exhibit E

  	
  FORM OF
  NOTATION OF GUARANTEE

  

 

iv

 

INDENTURE dated as of August 20, 2004 among Rainbow National Services LLC,
a Delaware limited liability company (the “Company”),
RNS Co-Issuer Corporation, a Delaware corporation and wholly owned subsidiary
of the Company (“Co-Issuer Corp.” and,
together with the Company, the “Issuers”),
the initial Guarantors listed on the signature pages hereto and The Bank of New
York, a New York banking corporation, as trustee.

 

The
Issuers have duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of their 83⁄4% Senior Notes due 2012
to be issued as provided in this Indenture. 
The initial Guarantors have duly authorized the execution and delivery
of this Indenture to provide for a guarantee of the Notes and of certain of the
Issuers’ obligations hereunder.

 

The
Issuers, the initial Guarantors and the Trustee (as defined below) agree as
follows for the benefit of each other and for the equal and ratable benefit of
the Holders (as defined below) of the Issuers’ 83⁄4% Senior Notes due 2012 issued
pursuant to this Indenture:

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section 1.01.          Definitions.

 

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

 

“Acquired Debt” means, with respect to any
specified Person:

 

(1)                        Indebtedness of any other Person existing at
the time such other Person is merged with or into, or becomes a Subsidiary of,
such specified Person, whether or not such Indebtedness is incurred in
connection with, or in contemplation of, such other Person merging with or
into, or becoming a Subsidiary of, such specified Person; and

 

(2)                        Indebtedness secured by a Lien encumbering
any asset acquired by such specified Person.

 

“Additional Notes” means an unlimited
maximum aggregate principal amount of Notes (other than the Notes issued on the
date hereof) issued under this Indenture in accordance with Sections 2.02 and
4.09.

 

“Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person. For purposes of
this definition, “control,” as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by 

 

1

 

agreement
or otherwise. For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” shall have correlative
meanings.

 

“Agent” means any Registrar or Paying Agent.

 

“AMC Preferred Stock” means redeemable
preferred membership interests of American Movie Classics Company LLC, as
described in the Offering Memorandum.

 

“Annualized Cash Flow” means, with respect
to the Company as of any date of determination, the product of (x) the
Consolidated Cash Flow of the Company for the most recent two quarters for
which internal financial statements are available immediately prior to such
date of determination and (y) 2.0.

 

“Applicable Premium” means, with respect to
a Note at any date of redemption, the excess of (A) the present value at such
date of redemption of (1) the redemption price of such Note at September 1,
2008 plus (2) all remaining
required interest payments due on such Note through September 1, 2008
(excluding accrued but unpaid interest to the date of redemption), computed
using a discount rate equal to the Treasury Rate plus 50 basis points, over (B)
the principal amount of such Note.

 

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

 

“Asset Sale” means:

 

(1)                        the sale, lease, conveyance or other
disposition of any property or assets; other than a sale, lease, conveyance or
other disposition governed by the provisions of Section 4.14 or 5.01; and

 

(2)                        the issuance of Equity Interests by any of
the Company’s Restricted Subsidiaries or the sale by the Company or any
Restricted Subsidiary thereof of Equity Interests in any of its Restricted
Subsidiaries (other than directors’ qualifying shares and shares issued to
foreign nationals to the extent required by applicable law).

 

Notwithstanding
the preceding, the following items shall be deemed not to be Asset Sales:

 

(1)                        any single transaction or series of related
transactions that involves assets having a Fair Market Value (as determined by
the Board of Directors or senior management) of less than $10.0 million;

 

(2)                        a transfer of assets or properties between or
among the Company and its Restricted Subsidiaries (including any transfer to
any Person that concurrently becomes a Restricted Subsidiary of the Company);

 

(3)                        an issuance of Equity Interests by a
Restricted Subsidiary of the Company to the Company or to another Restricted
Subsidiary, including, without limitation, an

 

2

 

issuance of Equity Interests by a Restricted
Subsidiary of the Company to the Company in exchange for or in conversion of
AMC Preferred Stock;

 

(4)                        the sale, lease, conveyance or other
disposition of equipment, inventory, accounts receivable or other assets in the
ordinary course of business;

 

(5)                        the sale, lease, conveyance or other
disposition of intellectual property and other intangibles under affiliation
agreements or film rights agreements in the ordinary course of business consistent
with past practice;

 

(6)                        the licensing or sublicensing of intellectual
property or other general intangibles, and licenses, leases or subleases of
other property in the ordinary course of business which do not materially
interfere with the business of the Company or any of its Restricted
Subsidiaries;

 

(7)                        the sale or other disposition of Cash
Equivalents;

 

(8)                        dispositions of accounts receivables in
connection with the compromise, settlement or collection thereof in the
ordinary course of business or in bankruptcy or similar proceedings;

 

(9)                        a Restricted Payment that is not prohibited
by Section 4.07 and any Permitted Investment;

 

(10)                  the granting of a Lien not prohibited
hereunder;

 

(11)                  any surrender or waiver of contract rights or
the settlement, release or surrender of contract rights or other litigation
claims in the ordinary course of business; and

 

(12)                  any sale or disposition of any property or
equipment that has become damaged, worn out, obsolete or otherwise unsuitable
for use in connection with the business of the Company or its Restricted
Subsidiaries.

 

“Bankruptcy Law” means Title 11 of the
United States Code or any similar federal or state law for the relief of
debtors.

 

“Beneficial Owner” has the meaning assigned
to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act. The terms
“Beneficially Owns” and “Beneficially Owned” shall have a corresponding
meaning.

 

“Board of Directors” means:

 

(1)                        with respect to a corporation, the board of
directors of the corporation or, except in the context of the definitions of
“Change of Control” and “Continuing Directors,” a committee thereof authorized
to exercise the power of the board of directors of such corporation;

 

3

 

(2)                        with respect to a partnership, the board of
directors of the general partner of the partnership (or if the general partner
is not a corporation, the board or committee of the general partner serving a
similar function); and

 

(3)                        with respect to any other Person, the board
or committee of such Person serving a similar function.

 

“Board Resolution” means a copy of a
resolution certified by the Secretary of an Issuer or any Guarantor to have
been duly adopted by the Board of Directors of such entity and to be in full
force and effect on the date of such certification.

 

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

 

“Capital Lease Obligation” means, at the
time any determination thereof is to be made, the amount of the liability in
respect of a capital lease that would at that time be required to be
capitalized on a balance sheet in accordance with GAAP.

 

“Capital Stock” means:

 

(1)                        in the case of a corporation, corporate
stock;

 

(2)                        in the case of an association or business
entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock;

 

(3)                        in the case of a partnership or limited
liability company, partnership or membership interests (whether general or
limited); and

 

(4)                        any other interest or participation that
confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person.

 

“Cash Equivalents”  means:

 

(1)                        United States dollars;

 

(2)                        marketable direct obligations of the United
States of America maturing, unless such securities are deposited to defease any
Indebtedness, within 397 days of the date of purchase;

 

(3)                        commercial paper issued by a Person having
consolidated net worth of at least $250.0 million, which conducts a substantial
part of its business in the United States of America, maturing within 180 days
from the date of the original issue thereof, and rated “P-1” or better by
Moody’s or “A-1” or better by S&P;

 

(4)                        fully collateralized repurchase agreements
with financial institutions having a rating of “Baa” or better from Moody’s or
a rating of “A–” or better from S&P;

 

4

 

(5)                        certificates of deposit, bankers’ acceptances
and time deposits maturing within 397 days after the date of purchase, which
are issued by a United States national or state bank or foreign bank having
capital, surplus and undivided profits totaling more than $100.0 million, and
having a rating of “Baa” or better from Moody’s, or a rating of “A–” or better
from S&P; and

 

(6)                        money market funds that (i) comply with the
criteria set forth in the Commission’s Rule 2a-7 under the Investment Company
Act of 1940, (ii) are rated “AAA” by S&P and “Aaa” by Moody’s and (iii)
have portfolio assets of at least $5 billion.

 

“Cash Flow” means, with respect to any
specified Person for any period, the sum of (a) Net Income of such Person for such
period, excluding any unusual, non-recurring or extraordinary items (including
any gain or loss, together with any related provision for taxes on such gain or
loss, realized in connection with any sale of assets outside the ordinary
course of business), plus (b) the
sum, without duplication, for such period to the extent, in the case of each of
clauses (i) through (vi), deducted in calculating such Net Income, of (i) Fixed
Charges for such Person, plus
(ii) non-cash dividends or distributions on Preferred Stock of such Person, plus (iii) depreciation for such Person, plus (iv) amortization for such person
(other than (a) Film Rights Amortization and (b) amortization of prepaid cash
expenses that were paid in a prior period), plus
(v) taxes for such Person, plus
(vi) other non-cash expenses (excluding any such non-cash expense to the extent
that it represents an accrual of or reserve for cash expenses in any future
period) for such Person, minus
(vii) non-cash items for such Person increasing such Net Income, other than the
accrual of revenue consistent with past practice, in each case, determined in
accordance with GAAP.

 

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

 

(1)                        the direct or indirect sale, transfer,
conveyance or other disposition (other than by way of merger or consolidation),
in one or a series of related transactions, of all or substantially all of the
properties or assets of the Company and its Restricted Subsidiaries, taken as a
whole, to any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act) other than to one or more of the Principals;

 

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

 

(3)                        any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more
of the Principals, becomes the ultimate Beneficial Owner, directly or
indirectly, of 50% or more of the voting power of the Voting Stock of the
Company;

 

(4)                        the first day on which a majority of the
members of the Board of Directors of the Company are not Continuing Directors;
or

 

(5)                        the Company consolidates with, or merges with
or into, any Person, or any Person consolidates with, or merges with or into
the Company, in any such event pursuant to a transaction in which any of the
outstanding Voting Stock of the Company or such other Person is converted into
or exchanged for cash, securities 

 

5

 

or other property, other than any such
transaction where (A) the Voting Stock of the Company outstanding immediately
prior to such transaction is converted into or exchanged for Voting Stock
(other than Disqualified Stock) of the surviving or transferee Person
constituting, or remains outstanding and constitutes, a majority of the
outstanding shares of such Voting Stock of such surviving or transferee Person
(immediately after giving effect to such issuance) and (B) immediately after
such transaction, no “person” or “group” (as such terms are used in Section 13(d)
and 14(d) of the Exchange Act), other than the Principals, becomes, directly or
indirectly, the ultimate Beneficial Owner of 50% or more of the voting power of
the Voting Stock of the surviving or transferee Person; provided that, following completion of the
offer to purchase Notes pursuant to Section 4.14, any subsequent change in
the voting power of the Voting Stock of the surviving or transferee Person
Beneficially Owned by the “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act) that resulted in such earlier
Change of Control shall not result in an additional Change of Control.

 

“Clearstream” means Clearstream Banking S.A.
and any successor thereto.

 

“Commission” means the United States
Securities and Exchange Commission and any successor thereto.

 

“Consolidated Cash Flow” means, with respect
to the Company for any period, (a) Cash Flow of the Company and its
Subsidiaries for such period, plus (b)
the sum for such period, in each case to the extent deducted in calculating
such Cash Flow and without duplication, (i) any non-cash charges incurred
subsequent to the date of this Indenture resulting from the application of
Statement of Financial Accounting Standards No. 123 or Statement of Financial
Accounting Standards No. 142, plus
(ii) Deferred Carriage Fees, plus
(iii) non-cash unrealized losses in respect of securities and derivatives, plus (iv) Restructuring Charges, plus (v) losses in respect of Monetization
Transactions, minus (vi) non-cash
unrealized gains in respect of securities and derivatives, minus (vii) gains in respect of
Monetization Transactions, in each case, on a consolidated basis and determined
in accordance with GAAP; provided
that:

 

(1)                                  for purposes of calculations under Section 4.07
only:

 

(a)                        the Cash Flow of any Restricted Subsidiary
shall be excluded to the extent that the declaration or payment of dividends or
similar distributions by that Restricted Subsidiary of that Cash Flow is not at
the date of determination permitted without any prior governmental approval
(that has not been obtained) or, directly or indirectly, by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its equityholders; and

 

(b)                       the Cash Flow of any Person acquired during
the specified period for any period prior to the date of such acquisition shall
be excluded;

 

6

 

(2)                                  the Cash Flow of any Person that is not a
Restricted Subsidiary of the Company or that is accounted for by the equity
method of accounting shall be included only to the extent of the amount of
dividends or distributions paid in cash to the specified Person or a Restricted
Subsidiary thereof;

 

(3)                                  the Cash Flow of a Restricted Subsidiary of
the Company shall be included in the same percentage as the percentage
ownership interest in the net income (loss) of such Restricted Subsidiary owned
on the last day of such period by the Company or any of its Restricted
Subsidiaries; and

 

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

 

“Consolidated Leverage Ratio” means, as of
any date of determination, the ratio of:

 

(1)                                  the aggregate outstanding amount of
Indebtedness of the Company and its Restricted Subsidiaries (other than
Monetization Indebtedness) as of such date of determination on a consolidated
basis (subject to the terms described in the paragraph below) after giving pro
forma effect to the incurrence of the Indebtedness giving rise to the need to
make such calculation (including a pro forma application of the use of proceeds
therefrom), on such date to,

 

(2)                                  the Annualized Cash Flow of the Company as of
such date of determination.

 

For
purposes of this definition:

 

(1)                                  Consolidated Cash Flow shall be calculated on
a pro forma basis after giving effect to (A) the incurrence of the Indebtedness
of the Company and its Restricted Subsidiaries (and the application of the
proceeds therefrom) giving rise to the need to make such calculation and any
incurrence (and the application of the proceeds therefrom) or repayment of
other Indebtedness on the date of determination, and (B) any acquisition or
disposition (including, without limitation, any acquisition giving rise to the
need to make such calculation as a result of the Company or one of its
Restricted Subsidiaries (including any Person that becomes a Restricted
Subsidiary as a result of such acquisition) incurring, assuming or otherwise
becoming liable for Indebtedness) at any time on or subsequent to the first day
of the applicable period specified and on or prior to the date of
determination, as if such acquisition or disposition (including the incurrence
or assumption of any such Indebtedness and also including any Consolidated Cash
Flow associated with such acquisition or disposition) occurred on the first day
of such two-quarter period; and

 

(2)                                  pro forma calculations shall be made in good
faith by a responsible financial or accounting officer of the Company and pro
forma effect may be given to any non-recurring expenses, non-recurring costs
and cost reductions within the first year after such acquisition that the
Company reasonably anticipates in good faith if the Company delivers to the
Trustee an Officers’ Certificate executed by the chief financial or accounting
officer of the Company certifying to and describing and 

 

7

 

quantifying with reasonable specificity such
non-recurring expenses, non-recurring costs and cost reduction.

 

“Continuing Directors” means, as of any date
of determination, any member of the Board of Directors of the Company who:

 

(1)                                  was a member of such Board of Directors on
the date of this Indenture; or

 

(2)                                  was nominated for election or elected to such
Board of Directors with the approval of a majority of the Continuing Directors
who were members of such Board of Directors at the time of such nomination or
election.

 

“Corporate Trust Office of the Trustee”
shall be at the address of the Trustee specified in Section 13.02 or such
other address as to which the Trustee may give notice to the Issuers.

 

“Credit Agreement” means that certain loan
agreement, dated as of the date of this Indenture, by and among the Company,
the guarantors thereto, JPMorgan Chase Bank, as Administrative Agent, the other
agents party thereto and the lenders party thereto from time to time, providing
for term loan and revolving credit borrowings, including any related notes,
Guarantees, collateral documents, instruments and agreements executed in
connection therewith, and in each case as amended, modified, renewed, refunded,
replaced, restated, restructured, increased, substituted or refinanced in whole
or in part from time to time, regardless of whether such amendment,
modification, renewal, refunding, replacement, restatement, restructuring,
increase, substitution or refinancing is with the same financial institutions
or otherwise.

 

“Credit Facilities” means one or more debt
or borrowing facilities (including, without limitation, the Credit Agreement),
commercial paper facilities or indentures, in each case with banks or other
institutional lenders or a trustee, providing for revolving credit loans, term
loans, receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders
against such receivables), letters of credit or issuances of notes, in each
case, as amended, modified, renewed, refunded, replaced, restated, substituted
or refinanced in whole or in part from time to time, regardless of whether such
amendment, modification, renewal, refunding, replacement, restatement,
substitution or refinancing is with the same financial institutions or
otherwise.

 

“Custodian” means the Trustee, as custodian
with respect to the Notes in global form, or any successor entity thereto.

 

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

 

“Deferred Carriage Fees” means the
amortization of (x) launch support payments and (y) payment in exchange for
carriage, in each case made by the Company or any of its Restricted
Subsidiaries.

 

“Definitive Note” means a Note registered in
the name of the Holder thereof and issued in accordance with Section 2.07,
substantially in the form of Exhibit A, except that such 

 

8

 

Note
shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means, with respect to the
Notes issuable or issued in whole or in part in global form, the Person
specified in Section 2.04 as the Depositary with respect to the Notes, and
any and all successors thereto appointed as depositary hereunder and having become
such pursuant to the applicable provision of this Indenture.

 

“Disqualified Stock” means any Capital Stock
that, by its terms (or by the terms of any security into which it is
convertible, or for which it is exchangeable, in each case at the option of the
holder thereof), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder thereof, in whole or in part, on or prior to the
date that is 91 days after the date on which the Notes mature. Notwithstanding
the preceding sentence, any Capital Stock that would constitute Disqualified
Stock solely because the holders thereof have the right to require the Company
to repurchase such Capital Stock upon the occurrence of a change of control or
an asset sale shall not constitute Disqualified Stock if the terms of such
Capital Stock provide that the Company may not repurchase or redeem any such
Capital Stock pursuant to such provisions unless such repurchase or redemption
complies with Section 4.07. The term “Disqualified Stock” shall also
include any options, warrants or other rights that are convertible into
Disqualified Stock or that are redeemable at the option of the holder, or
required to be redeemed, prior to the date that is 91 days after the date on
which the Notes mature.

 

“Distribution” means the distribution of
capital stock of Rainbow Media Enterprises to the stockholders of Cablevision
Systems Corporation as described in the Offering Memorandum.

 

“Dolan Family Members” means (i) Charles F.
Dolan and (ii) any spouse, child, child of a spouse, parent, grandchild or
other descendant of Charles F. Dolan (where applicable in each of the foregoing
instances, whether natural or adopted), and any other intestate distributee,
heir or legatee of Charles F. Dolan.

 

“Domestic Subsidiary” means any Restricted
Subsidiary of the Company other than a Restricted Subsidiary that is (1) a
“controlled foreign corporation” under Section 957 of the Internal Revenue
Code (other than any such entity that Guarantees Indebtedness of the Company or
of any of its other Domestic Subsidiaries) or (2) a Subsidiary of an entity
described in the preceding clause (1).

 

“Earn-out Obligation” means any contingent
consideration based on future operating performance of an acquired entity or
assets or other purchase price adjustment or indemnification or similar
obligation, payable following the consummation of an acquisition based on
criteria set forth in the documentation governing or relating to such
acquisition.

 

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

 

9

 

“Euroclear” means Euroclear Bank S.A./N.V.,
as operator of the Euroclear system, and any successor thereto.

 

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

 

“Existing Indebtedness” means the aggregate
principal amount of Indebtedness of the Company and its Subsidiaries (other
than Indebtedness under the Credit Agreement) in existence on the date of this
Indenture after giving effect to the application of the proceeds of (1) the
Notes and (2) any borrowings made under the Credit Agreement on the date of
this Indenture. Existing Indebtedness shall include the Issuers’ 103/8%
Senior Subordinated Notes due 2014, and the guarantees attached thereto, issued
pursuant to the indenture dated as of the date of this Indenture among the
Issuers, the guarantors thereto and The Bank of New York, as trustee.

 

“Fair Market Value” means the price that
would be paid in an arm’s-length transaction between an informed and willing
seller under no compulsion to sell and an informed and willing buyer under no
compulsion to buy, as determined, unless otherwise specified, in good faith by
the Board of Directors or, if permitted by the terms of this Indenture, by
senior management, whose determination in all cases shall be conclusive.

 

“Film Rights Amortization” means the
amortization of expenditures of the Company and its Restricted Subsidiaries for
the acquisition of film rights and broadcast programming.

 

“Fixed Charges” means, with respect to any
specified Person for any period, the sum, without duplication, of:

 

(1)                        the consolidated interest expense of such
Person for such period, whether paid or accrued (without duplication),
including, without limitation, amortization of debt issuance costs and original
issue discount, non-cash interest payments, the interest component of any
deferred payment obligations, the interest component of all payments associated
with Capital Lease Obligations, commissions, discounts and other fees and
charges incurred in respect of letter of credit or bankers’ acceptance
financings, and the net payments made or received pursuant to Hedging
Obligations, but excluding any dividends on Equity Interests of such Person to
the extent paid solely in Equity Interests (other than Disqualified Stock) of
such Person; plus

 

(2)                        any interest expense on Indebtedness of
another Person that is Guaranteed by such Person or one of its Restricted
Subsidiaries or secured by a Lien on assets of such Person or one of its
Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon,

 

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

 

“GAAP” means generally accepted accounting
principles set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and
in the statements and pronouncements of the Financial Accounting Standards
Board or in such other statements by such other entity as have been approved by
a 

 

10

 

significant
segment of the accounting profession, which are in effect on the date of this
Indenture.

 

“Global Note Legend” means the legend set
forth in Section 2.07(g)(ii), which is required to be placed on all Global
Notes issued under this Indenture.

 

“Global Notes” means, individually and
collectively, each of the Restricted Global Notes and the Unrestricted Global
Notes, substantially in the form of Exhibit A, issued in accordance with
Section 2.01 or Section 2.07.

 

“Government Securities” means securities
that are direct obligations of the United States of America for the timely
payment of which its full faith and credit is pledged.

 

“Guarantee” means, as to any Person, a
guarantee other than by endorsement of negotiable instruments for collection in
the ordinary course of business, direct or indirect, in any manner including,
without limitation, by way of a pledge of assets or through letters of credit
or reimbursement agreements in respect thereof, of all or any part of any
Indebtedness of another Person.

 

“Guarantors” means, with respect to this
Indenture:

 

(1)                        each direct or indirect Domestic Subsidiary
of the Company on the date of this Indenture, other than (x) Co-Issuer Corp.
and (y) any Insignificant Subsidiary; and

 

(2)                        any other subsidiary that executes a Note
Guarantee in accordance with the provisions of this Indenture and a
supplemental indenture, pursuant to which it agrees to be bound by the terms of
this Indenture as Guarantor;

 

and
their respective successors and assigns until released from their obligations
under their Note Guarantees and this Indenture in accordance with the terms of
this Indenture.

 

“Hedging Obligations” means, with respect to
any specified Person, the obligations of such Person under:

 

(1)                        interest rate swap agreements, interest rate
cap agreements, interest rate collar agreements and other agreements or
arrangements with respect to interest rates;

 

(2)                        commodity swap agreements, commodity option
agreements, forward contracts and other agreements or arrangements with respect
to commodity prices; and

 

(3)                        foreign exchange contracts, currency swap
agreements and other agreements or arrangements with respect to foreign
currency exchange rates.

 

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

 

11

 

“incur” means, with respect to any
Indebtedness, to incur, create, issue, assume, Guarantee or otherwise become
directly or indirectly liable for or with respect to, or become responsible
for, the payment of, contingently or otherwise, such Indebtedness.

 

“Indebtedness” means, with respect to any
specified Person, any indebtedness of such Person, whether or not contingent:

 

(1)                        in respect of borrowed money;

 

(2)                        evidenced by bonds, notes, debentures or
similar instruments;

 

(3)                        evidenced by letters of credit (or
reimbursement agreements in respect thereof), but excluding obligations with
respect to letters of credit (including trade letters of credit) securing
obligations (other than obligations described in clauses (1) or (2) above or clauses
(5), (6) or (8) below) entered into in the ordinary course of business of such
Person to the extent such letters of credit are not drawn upon or, if drawn
upon, to the extent such drawing is reimbursed no later than the 10th Business
Day following receipt by such Person of a demand for reimbursement;

 

(4)                        in respect of bankers’ acceptances;

 

(5)                        in respect of Capital Lease Obligations;

 

(6)                        in respect of the balance deferred and unpaid
of the purchase price of any property or services, except any such balance that
constitutes an accrued expense or trade payable;

 

(7)                        representing the Fair Market Value (as
determined by the Board of Directors or senior management) of Hedging
Obligations, other than Hedging Obligations that are incurred for the purpose of
fixing, hedging or swapping interest rate, commodity price or foreign currency
exchange rate risk (or to reverse or amend any such agreements previously made
for such purposes), and not for speculative purposes, and that do not increase
the Indebtedness of the obligor outstanding at any time other than as a result
of fluctuations in interest rates, commodity prices or foreign currency
exchange rates or by reason of fees, indemnities and compensation payable
thereunder; or

 

(8)                        representing Disqualified Stock valued at the
greater of its voluntary or involuntary maximum fixed repurchase price plus
accrued dividends.

 

In
addition, the term “Indebtedness” includes (x) all Indebtedness of others
secured by a Lien on any asset of the specified Person (whether or not such
Indebtedness is assumed by the specified Person), provided that the amount of
such Indebtedness shall be the lesser of (A) the Fair Market Value (as
determined by the Board of Directors or senior management) of such asset at
such date of determination and (B) the amount of such Indebtedness, and (y) to
the extent not otherwise included, the Guarantee by the specified Person of any
Indebtedness of any other Person. For purposes hereof, the “maximum fixed
repurchase price” of any Disqualified Stock which does not have a fixed
repurchase price shall be calculated in accordance with the terms of such 

 

12

 

Disqualified
Stock as if such Disqualified Stock were repurchased on any date on which
Indebtedness shall be required to be determined pursuant to this Indenture, and
if such price is based upon, or measured by, the Fair Market Value (as
determined by the Board of Directors or senior management) of such Disqualified
Stock, such fair market shall be determined in good faith by the Company’s
Board of Directors.

 

The
amount of any Indebtedness outstanding as of any date shall be the outstanding
balance at such date of all unconditional obligations as described above and,
with respect to contingent obligations, the maximum liability upon the
occurrence of the contingency giving rise to the obligation, and shall be:

 

(1)                        the accreted value thereof, in the case of
any Indebtedness issued with original issue discount; and

 

(2)                        the principal amount thereof, together with
any interest thereon that is more than 30 days past due, in the case of any
other Indebtedness;

 

provided that Indebtedness shall not include:

 

(i)                           any liability for federal, state, local or
other taxes,

 

(ii)                        any liability in respect of performance
bonds, compensation claims, surety or appeal bonds and payment obligations in
connection with self-insurance or similar obligations,

 

(iii)                     any liability arising from the honoring by a
bank or other financial institution of a check, draft or similar instrument
drawn against insufficient funds in the ordinary course of business, provided,
however, that such liability is extinguished within five Business Days of its
incurrence,

 

(iv)                    any accrued expense or trade payable to trade
creditors arising in the ordinary course of business, including guarantees
thereof or instruments evidencing such liabilities,

 

(v)                       any Earn-out Obligation, except to the extent
that the contingent consideration relating thereto is not paid within five
Business Days after the contingency relating thereto is resolved, or

 

(vi)                    agreements providing for indemnification,
adjustment of purchase price or similar obligations, or Guarantees or letters
of credit, surety bonds or performance bonds securing any obligations of the
Company or any of its Restricted Subsidiaries pursuant to such agreements, in
any case incurred or assumed in connection with the disposition of any
business, assets or Restricted Subsidiary of the Company (other than Guarantees
of Indebtedness incurred by any Person acquiring all or any portion of such
business, assets or such Restricted Subsidiary for the purpose of financing
such acquisition), so long as the principal amount does not exceed the gross
proceeds actually received by the Company or any Restricted Subsidiary thereof
in connection with such disposition.

 

13

 

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

 

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

 

“Institutional Accredited Investor” means an
institution that is an “accredited investor” as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act, who is not also a QIB.

 

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

 

“Insignificant Subsidiary” means any
Subsidiary of the Company designated by the Company as an “Insignificant
Subsidiary;” provided that the
total assets of all Subsidiaries that are so designated, as reflected on the
Company’s most recent consolidating balance sheet prepared in accordance with
GAAP, do not in the aggregate at any time exceed $5.0 million.

 

“Investment Grade Rating” means (1) a rating
of BBB– or better, in the case of S&P (or its equivalent under any
successor Rating Categories of S&P) and a rating of Baa3 or better, in the
case of Moody’s (or its equivalent under any successor Rating Categories of
Moody’s), or (2) in each case, if a Rating Agency in the foregoing clause (1)
ceases to rate the Notes for reasons outside the control of the Company, an
equivalent Rating Category of any other Rating Agency.

 

“Investments” means, with respect to any
Person, all direct or indirect investments by such Person in other Persons
(including Affiliates) in the forms of loans or other extensions of credit
(including Guarantees, but excluding advances to customers or suppliers in the
ordinary course of business that are, in conformity with GAAP, recorded as
accounts receivable, prepaid expenses or deposits on the balance sheet of the
Company or its Restricted Subsidiaries and endorsements for collection or
deposit arising in the ordinary course of business), advances (excluding
commission, payroll, travel and similar advances to officers and employees made
consistent with past practices), capital contributions (by means of any
transfer of cash or other property to others or any payment for property or
services for the account or use of others), purchases or other acquisitions for
consideration of Indebtedness, Equity Interests or other securities, together
with all items that are or would be classified as investments on a balance
sheet prepared in accordance with GAAP.

 

If
the Company or any Restricted Subsidiary of the Company sells or otherwise
disposes of any Equity Interests of any direct or indirect Restricted
Subsidiary of the Company such that, after giving effect to any such sale or
disposition, such Person is no longer a Restricted Subsidiary of the Company,
the Company shall be deemed to have made an Investment on the date of any such
sale or disposition equal to the Fair Market Value (as determined by senior
management or the Board of Directors, unless such Fair Market Value exceeds
$10.0 million, in which event such Fair Market Value must be determined by the
Board of Directors) of the Investment in such Subsidiary not sold or disposed
of.  The acquisition by the Company or
any Restricted Subsidiary of the Company of a Person that holds an Investment
in a third Person 

 

14

 

shall
be deemed (without duplication) to be an Investment by the Company or such
Restricted Subsidiary in such third Person at the time that the acquired Person
becomes a Restricted Subsidiary of the Company in an amount equal to the Fair
Market Value (as determined by senior management or the Board of Directors,
unless such Fair Market Value exceeds $10.0 million, in which event such Fair
Market Value must be determined by the Board of Directors) of the Investment
held by the acquired Person in such third Person. Except as otherwise provided
in this Indenture, the amount of an Investment shall be determined at the time
the Investment is made and without giving effect to subsequent changes in
value.

 

“Issue Date” means the date of the original issuance
of the Notes under this Indenture.

 

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

 

“Lien” means, with respect to any asset, any
mortgage, lien, pledge, charge, security interest or encumbrance of any kind in
respect of such asset, whether or not filed, recorded or otherwise perfected
under applicable law, including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option or other agreement to
sell or give a security interest in and any filing of or agreement to give any
financing statement under the Uniform Commercial Code (or equivalent statutes)
of any jurisdiction.

 

“Monetization Indebtedness” means any
Indebtedness of the Company or any Restricted Subsidiary thereof issued in
connection with a Monetization Transaction; provided
that, (i) on the date of its incurrence, the purchase price or principal amount
of such Monetization Indebtedness does not exceed the Fair Market Value of the
securities that are the subject of such Monetization Transaction on such date
and (ii) the obligations of the Company and its Restricted Subsidiaries with
respect to the purchase price or principal amount of such Monetization
Indebtedness (x) may be satisfied in full by delivery of the securities that
are the subject of such Monetization Transaction and any related options on
such securities or any proceeds received by the Company or any Restricted
Subsidiary thereof on account of such options; provided
that if the Company or such Restricted Subsidiary no longer owns sufficient
securities that were the subject of such Monetization Transaction and/or
related options on such securities to satisfy in full the obligations of the
Company and its Restricted Subsidiaries under such Monetization Indebtedness,
such Indebtedness shall no longer be deemed to be Monetization Indebtedness,
and (y) are not secured by any Liens on any of the Company’s or its Restricted
Subsidiaries’ assets other than the securities that are the subject of such
Monetization Transaction and the related options on such securities.

 

“Monetization Transaction” means a
transaction pursuant to which (1) securities received pursuant to an Asset Sale
are sold, transferred or otherwise conveyed (including by way of a forward
purchase agreement, prepaid forward sale agreement, secured borrowing or
similar agreement) within 120 days of such Asset Sale and (2) the Company
receives (including by way 

 

15

 

of
borrowing under Monetization Indebtedness) not less than 75% of the Fair Market
Value of such securities in the form of cash.

 

“Moody’s” means Moody’s Investors Service,
Inc. and its successors.

 

“Net Income” means, with respect to any
specified Person, the net income (loss) of such Person after taxes (unless such
Person is a partnership or limited liability company), determined in accordance
with GAAP.

 

“Net Proceeds” means the aggregate cash
proceeds, including payments in respect of deferred payment obligations (to the
extent corresponding to the principal, but not the interest component, thereof)
received by the Company or any of its Restricted Subsidiaries in respect of any
Asset Sale (including, without limitation, any cash received upon the sale or
other disposition of any non-cash consideration received in any Asset Sale),
net of (1) the direct costs relating to such Asset Sale, including, without
limitation, legal, accounting, investment banking and brokerage fees, and sales
commissions, and any relocation expenses incurred as a result thereof, (2)
taxes paid or payable as a result thereof, in each case, after taking into
account any available tax credits or deductions and any tax sharing
arrangements, (3) amounts required to be applied to the repayment of
Indebtedness or other liabilities, secured by a Lien on the asset or assets
that were the subject of such Asset Sale, or is required to be paid as a result
of such sale, (4) any reserve for adjustment in respect of the sale price of
such asset or assets established in accordance with GAAP and (5) appropriate
amounts to be provided by the Company or its Restricted Subsidiaries as a
reserve against liabilities associated with such Asset Sale, including, without
limitation, pension and other post-employment benefit liabilities, liabilities
related to environmental matters and liabilities under any indemnification
obligations associated with such Asset Sale, all as determined in accordance
with GAAP.

 

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

 

“Note Guarantee” means a Guarantee of the
Notes pursuant to this Indenture.

 

“Notes” means the 83⁄4% Senior Notes due 2012
of the Issuers issued on the date hereof and any Additional Notes.  The Notes and the Additional Notes, if any,
shall be treated as a single class for all purposes under this Indenture.

 

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

 

“Offering Memorandum” means the offering
memorandum, dated August 13, 2004, relating to the Issuers’ 83⁄4% Senior
Notes due 2012.

 

“Officer” means, with respect to any Person,
the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Operating Officer, the Chief Financial Officer, the Treasurer, any
Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary or
any Vice-President.

 

16

 

“Officers’ Certificate” means a certificate
signed on behalf of the Company by at least two Officers of the Company, one of
whom must be the principal executive officer, the principal financial officer,
the treasurer or the principal accounting officer of the Company, that meets
the requirements of this Indenture.

 

“Opinion of Counsel” means an opinion from
legal counsel (who may be counsel to or an employee of the Company) that meets
the requirements of this Indenture.

 

“Participant” means, with respect to the
Depositary, Euroclear or Clearstream, a Person who has an account with the
Depositary, Euroclear or Clearstream, respectively (and with respect to DTC,
shall include Euroclear and Clearstream).

 

“Permitted Business” means any business
conducted or proposed to be conducted (as described in the Offering Memorandum)
by the Company and its Restricted Subsidiaries on the date of this Indenture
and other businesses reasonably related or ancillary thereto.

 

“Permitted Investments” means:

 

(1)                        any Investment in the Company or in a
Restricted Subsidiary of the Company;

 

(2)                        any Investment in Cash Equivalents;

 

(3)                        any Investment by the Company or any
Restricted Subsidiary of the Company in a Person, if as a result of such
Investment:

 

(a)                        such Person becomes a Restricted Subsidiary
of the Company; or

 

(b)                       such Person is merged, consolidated or
amalgamated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Company or a Restricted Subsidiary of the
Company;

 

(4)                        any Investment made as a result of the
receipt of non-cash consideration from an Asset Sale that was made pursuant to
and in compliance with Section 4.10;

 

(5)                        Investments to the extent acquired in
exchange for the issuance of Equity Interests (other than Disqualified Stock)
of the Company;

 

(6)                        Hedging Obligations that are incurred for the
purpose of fixing, hedging or swapping interest rate, commodity price or
foreign currency exchange rate risk (or to reverse or amend any such agreements
previously made for such purposes), and not for speculative purposes, and that
do not increase the Indebtedness of the obligor outstanding at any time other
than as a result of fluctuations in interest rates, commodity prices or foreign
currency exchange rates or by reason of fees, indemnities and compensation
payable thereunder;

 

(7)                        any Investments received in satisfaction of
judgments or in settlement of debt or compromises of obligations incurred in
the ordinary course of business, including 

 

17

 

pursuant to any plan of reorganization or
similar arrangement upon bankruptcy or insolvency;

 

(8)                        any Investments received as a result of a
foreclosure by the Company or any of its Restricted Subsidiaries with respect
to any secured Investment or other transfer of title with respect to any
secured Investment in default;

 

(9)                        advances to customers or suppliers in the
ordinary course of business that are recorded in accordance with GAAP as
accounts receivable or prepaid expenses or lease, utility or other similar
deposits in the ordinary course of business; and

 

(10)                  Investments consisting of the licensing or
contribution of intellectual property pursuant to affiliation agreements or
film rights agreements in the ordinary course of business consistent with past
practice.

 

“Permitted Liens” means:

 

(1)                        Liens securing Indebtedness in an amount not
to exceed $1,250 million at any one time outsanding;

 

(2)                        Liens in favor of the Company or any
Guarantor;

 

(3)                        Liens securing Monetization Indebtedness;

 

(4)                        Liens on property or assets of a Person
existing at the time such Person is merged with or into or consolidated with
the Company or any Restricted Subsidiary of the Company; provided that such Liens were in existence
prior to the contemplation of such merger or consolidation and do not extend to
any properties or assets other than those of the Person merged into or
consolidated with the Company or the Restricted Subsidiary;

 

(5)                        Liens on property or assets existing at the
time of acquisition thereof by the Company or any Restricted Subsidiary of the
Company, provided that such Liens
were in existence prior to the contemplation of such transaction and do not
extend to any properties or assets other than those so acquired by the Company
or the Restricted Subsidiary;

 

(6)                        Liens to secure Indebtedness (including
Capital Lease Obligations) permitted by Section 4.09(b)(iv) covering only
the assets acquired with such Indebtedness;

 

(7)                        Liens existing on the date of this Indenture;

 

(8)                        Liens securing the Notes;

 

(9)                        during any period commencing from the date
the Suspension Condition is first satisfied, Liens to secure Indebtedness that
is not pari passu or subordinated
to the Notes or the Note Guarantees;

 

18

 

(10)                  Liens incurred in the ordinary course of
business of the Company or any Restricted Subsidiary of the Company with
respect to obligations that do not exceed $10.0 million at any one time
outstanding;

 

(11)                  Liens securing Hedging Obligations of the Company
or any of its Restricted Subsidiaries that do not constitute Indebtedness or
securing letters of credit that support such Hedging Obligations;

 

(12)                  Liens incurred or deposits made in the
ordinary course of business in connection with worker’s compensation,
unemployment insurance or other social security obligations;

 

(13)                  Liens, deposits or pledges to secure the
performance of bids, tenders, contracts (other than contracts for the payment
of Indebtedness), leases, or other similar obligations arising in the ordinary
course of business;

 

(14)                  survey exceptions, encumbrances, easements or
reservations of, or rights of other for, rights of way, zoning or other
restrictions as to the use of properties, and defects in title which, in the
case of any of the foregoing, were not incurred or created to secure the
payment of Indebtedness, and which in the aggregate do not materially adversely
affect the value of such properties or materially impair the use for the
purposes of which such properties are held by the Company or any of its
Restricted Subsidiaries;

 

(15)                  judgment and attachment Liens not giving rise
to an Event of Default and notices of lis
pendens and associated rights related to litigation being contested
in good faith by appropriate proceedings and for which adequate reserves have
been made;

 

(16)                  Liens for taxes, assessments, fees or
governmental charges or claims that are not yet delinquent or that are being
contested in good faith by appropriate proceedings; provided that any reserve or other appropriate provision as
is required in conformity with GAAP has been made therefor;

 

(17)                  Liens securing obligations under film rights
agreements or affiliation agreements that do not constitute Indebtedness and
that were entered into in the ordinary course of business consistent with past
practice;

 

(18)                  Liens, deposits or pledges to secure public
or statutory obligations, surety, stay, appeal, indemnity, performance or other
similar bonds or obligations; and Liens, deposits or pledges in lieu of such
bonds or obligations, or to secure such bonds or obligations, or to secure
letters of credit in lieu of or supporting the payment of such bonds or
obligations;

 

(19)                  Liens on property or assets used to defease
Indebtedness that was not incurred in violation of this Indenture;

 

19

 

(20)                  Liens in favor of collecting or payor banks
having a right of set-off, revocation, refund or chargeback with respect to
money or instruments of the Company or any Subsidiary thereof on deposit with
or in possession of such bank;

 

(21)                  any interest or title of a lessor, licensor
or sublicensor in the property subject to any lease, license or sublicense;

 

(22)                  Liens arising from precautionary UCC
financing statements regarding operating leases or consignments; and

 

(23)                  Liens of franchisors in the ordinary course
of business not securing Indebtedness.

 

“Permitted Refinancing Indebtedness” means:

 

(A)                              any Indebtedness of the Company or any of its
Restricted Subsidiaries (other than Disqualified Stock) issued in exchange for,
or the net proceeds of which are used to extend, refinance, renew, replace,
defease or refund other Indebtedness of the Company or any of its Restricted
Subsidiaries (other than Disqualified Stock and intercompany Indebtedness); provided that:

 

(1)                        the principal amount (or accreted value, if
applicable) of such Permitted Refinancing Indebtedness does not exceed the
principal amount (or accreted value, if applicable) of the Indebtedness so
extended, refinanced, renewed, replaced, defeased or refunded (plus all accrued
and unpaid interest thereon and the amount of any reasonable premium necessary
to accomplish such refinancing and such reasonable expenses incurred in
connection therewith);

 

(2)                        such Permitted Refinancing Indebtedness has a
final maturity date later than the final maturity date of, and has a Weighted
Average Life to Maturity equal to or greater than the Weighted Average Life to
Maturity of, the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded;

 

(3)                        if the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded is subordinated in right of
payment to the Notes or the Note Guarantees, such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of,
and is subordinated in right of payment to, the Notes on terms at least as
favorable, taken as a whole in all material respects, to the Holders of Notes
as those contained in the documentation governing the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded;

 

(4)                        if the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded is pari passu in right of payment with the
Notes or any Note Guarantees, such Permitted Refinancing Indebtedness is pari passu with, or subordinated in right
of payment to, the Notes or such Note Guarantees; and

 

(5)                        such Indebtedness is incurred either by the
Company or by the Restricted Subsidiary who is the obligor on the Indebtedness
being extended, refinanced, renewed, replaced, defeased or refunded; and

 

20

 

 

(B)                                any Disqualified Stock of the Company or any
of its Restricted Subsidiaries issued in exchange for, or the net proceeds of
which are used to extend, refinance, renew, replace or refund Indebtedness or
other Disqualified Stock of the Company or any of its Restricted Subsidiaries
(other than Indebtedness or Disqualified Stock held by the Company or any of
its Restricted Subsidiaries); provided
that:

 

(1)                                  the liquidation or face value of such
Permitted Refinancing Indebtedness does not exceed the principal amount (or
accreted value, if applicable) of the Indebtedness, or the liquidation or face
value of the Disqualified Stock, as applicable, so extended, refinanced,
renewed, replaced or refunded (plus all accrued and unpaid interest or
dividends thereon and the amount of any reasonable premium necessary to
accomplish such refinancing and such reasonable expenses incurred in connection
therewith);

 

(2)                                  such Permitted Refinancing Indebtedness has a
final redemption date later than the final maturity or redemption date of, and
has a Weighted Average Life to Maturity equal to or greater than the Weighted
Average Life to Maturity of, the Indebtedness or Disqualified Stock being
extended, refinanced, renewed, replaced or refunded;

 

(3)                                  such Permitted Refinancing Indebtedness has a
final redemption date later than the final maturity date of, and is
subordinated in right of payment to, the Notes on terms at least as favorable,
taken as a whole in all material respects, to the Holders of Notes as those
contained in the documentation governing the Indebtedness or Disqualified Stock
being extended, refinanced, renewed, replaced or refunded;

 

(4)                                  such Permitted Refinancing Indebtedness is
not redeemable at the option of the holder thereof or mandatorily redeemable
prior to the final maturity or redemption date of the Indebtedness or
Disqualified Stock being extended, refinanced, renewed, replaced or refunded;
and

 

(5)                                  such Disqualified Stock is issued either by the
Company or by the Restricted Subsidiary who is the issuer of the Indebtedness
or Disqualified Stock being extended, refinanced, renewed, replaced or
refunded.

 

“Person” means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company
or government or other entity.

 

“Preferred Stock” means, with respect to any
Person, any Capital Stock of such Person that has preferential rights to any
other Capital Stock of such Person with respect to dividends or redemptions
upon liquidation.

 

“Principals” means (a) any Dolan Family
Member, (b) any trusts for the benefit of any Dolan Family Members, (c) any
estate of any Dolan Family Member or testamentary trust of any Dolan Family
Member for the benefit of any Dolan Family Members, (d) any executor,
administrator, conservator or legal or personal representative of any Person or
Persons specified in clauses (a), (b) and (c) above to the extent acting in
such capacity on behalf of any Dolan

 

21

 

Family
Member or Members and not individually, (e) any Person, eighty percent (80%) of
which is owned and controlled by any of the foregoing or combination of the
foregoing, and (f) The Dolan Family Foundation, a New York not-for-profit
corporation.

 

“Private Placement Legend” means the legend
set forth in Section 2.07(g)(i) to be placed on
all Notes issued under this Indenture except where otherwise permitted by the
provisions of this Indenture.

 

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

 

“Qualified Equity Offering” means (i) an
offer and sale of Equity Interests (other than Disqualified Stock) of the
Company pursuant to a registration statement that has been declared effective
by the Commission pursuant to the Securities Act (other than a registration
statement on Form S-8 or otherwise relating to equity securities issuable under
any employee benefit plan of the Company) or (ii) any private placement of
Equity Interests (other than Disqualified Stock) of the Company to any Person
other than a Subsidiary of the Company.

 

“Rainbow Media Enterprises” means Rainbow
Media Enterprises, Inc.

 

“Rating Agency” means (1) each of S&P
and Moody’s and (2) if S&P or Moody’s ceases to rate the Notes for reasons
outside the control of the Company, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c-3-1(c)(vi)(F)
under the Exchange Act selected by the Company, which shall be substituted for
S&P or Moody’s, as the case may be.

 

“Rating Category” means (1) with respect to
S&P, any of the following categories (any of which may include a “+” or “–”:
AAA, AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor categories),
(2) with respect to Moody’s, any of the following categories: Aaa, Aa, A, Baa,
Ba, B, Caa, Ca, C and D (or equivalent successor categories), and (3) the
equivalent of any such categories of S&P or Moody’s used by another Rating
Agency, if applicable.

 

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

 

“Regulation S Global Note” means a Legended
Regulation S Global Note or an Unlegended Regulation S Global Note, as
appropriate.

 

“Regulation S Global Note Legend” means the
legend set forth in Section 2.07(h) that is required to be placed in
Legended Regulation S Global Notes under the Indenture.

 

“Replacement Assets” means any combination
of (1) non-current assets that shall be used or useful in a Permitted Business
or (2) all or substantially all the assets of a Permitted Business or a
majority of the Voting Stock of any Person engaged in a Permitted Business
(including by means of a merger, consolidation or other business combination
permitted under this Indenture) that shall become on the date of acquisition
thereof a Restricted Subsidiary.

 

“Responsible Officer,” when used with
respect to the Trustee, means any officer within the Corporate Trust Office of
the Trustee (or any successor group of the Trustee) or any

 

22

 

other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter
is referred because of his knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of the
Indenture.

 

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

 

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

 

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

 

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

 

“Restricted Subsidiary” of a Person means
any Subsidiary of such Person that is not an Unrestricted Subsidiary.

 

“Restructuring Charges” means, with respect
to the Company, restructuring charges incurred by the Company and its
Restricted Subsidiaries in connection with exiting an activity or restructuring
an operation or activity, in accordance with GAAP.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Significant Subsidiary” means any
Subsidiary that would constitute a “significant subsidiary” within the meaning
of Article 1 of Regulation S-X promulgated pursuant to the Securities Act,
as such Regulation is in effect on the date of this Indenture.

 

“Stated Maturity” means, with respect to any
installment of interest or principal on any series of Indebtedness, the date on
which such payment of interest or principal was scheduled to be paid in the
original documentation governing such Indebtedness, and shall not include any
contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

 

23

 

“Subsidiary” means, with respect to any
specified Person:

 

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

 

(2)                                  any partnership (a) the sole general partner
or the managing general partner of which is such Person or a Subsidiary of such
Person or (b) the only general partners of which are such Person or one or more
Subsidiaries of such Person (or any combination thereof).

 

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

 

“Treasury Rate” means the yield to maturity
at the time of computation of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) which has become publicly available at least two
Business Days prior to the date fixed for prepayment (or, if such Statistical
Release is no longer published, any publicly available source for similar
market data)) most nearly equal to the then remaining term of the Notes to September 1,
2008; provided, however, that if
the then remaining term of the Notes to September 1, 2008 is not equal to
the constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are
given, except that if the then remaining term of the Notes to September 1,
2008 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

 

“Trustee” means The Bank of New York, a New
York banking corporation, until a successor replaces it in accordance with the
applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

 

“Unlegended Regulation S Global Note” means
a Note in the form of Exhibit A bearing the Global Note Legend and the
Private Placement Legend, deposited with or on behalf of and registered in the
name of the Depositary or its nominee and issued upon expiration of the
Restricted Period.

 

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

 

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

 

24

 

“Unrestricted Subsidiary” means any
Subsidiary of the Company that is designated as an Unrestricted Subsidiary in
compliance with Section 4.16 and any Subsidiary of such Subsidiary.

 

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

 

“Voting Stock” of any Person as of any date
means the Capital Stock of such Person that is at the time entitled to vote in
the election of the Board of Directors of such Person.

 

“Weighted Average Life to Maturity” means,
when applied to any Indebtedness at any date, the number of years obtained by
dividing:

 

(1)                                  the sum of the products obtained by
multiplying (a) the amount of each then remaining installment, sinking fund,
serial maturity or other required payments of principal, including payment at
final maturity, in respect thereof, by (b) the number of years (calculated to
the nearest one-twelfth) that will elapse between such date and the making of
such payment; by

 

(2)                                  the then outstanding principal amount of such
Indebtedness.

 

25

 

Section 1.02.                             Other Definitions.

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  
	
  “Act”

  	
   

  	
  13.14

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  
	
  “Asset Sale Offer”

  	
   

  	
  4.10

  
	
  “Authentication Order”

  	
   

  	
  2.02

  
	
  “Basket Period”

  	
   

  	
  4.07

  
	
  “Change of Control Offer”

  	
   

  	
  4.14

  
	
  “Change of Control Payment”

  	
   

  	
  4.14

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.14

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  
	
  “DTC”

  	
   

  	
  2.01

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  
	
  “Offer Amount”

  	
   

  	
  3.08

  
	
  “Offer Period”

  	
   

  	
  3.08

  
	
  “offshore transaction”

  	
   

  	
  2.07

  
	
  “Paying Agent”

  	
   

  	
  2.04

  
	
  “Payment Default”

  	
   

  	
  6.01

  
	
  “Permitted Debt”

  	
   

  	
  4.09

  
	
  “Purchase Date”

  	
   

  	
  3.08

  
	
  “Registrar”

  	
   

  	
  2.04

  
	
  “Related Proceedings”

  	
   

  	
  13.09

  
	
  “Repurchase Offer”

  	
   

  	
  3.08

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  
	
  “Specified Courts”

  	
   

  	
  13.09

  
	
  “Suspension Condition”

  	
   

  	
  4.19

  
	
  “Suspended Covenants”

  	
   

  	
  4.19

  

 

Section 1.03.                             Incorporation by Reference of Trust Indenture
Act.

 

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

 

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

 

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

 

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

 

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

 

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

 

26

 

(c)                                  “or” is not
exclusive;

 

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

 

(e)                                  “herein”, “hereof”
and other word of similar import refer to this Indenture as a whole and not to
any particular Section, Article or other subdivision;

 

(f)                                    all references to Sections or Articles or
Exhibits refer to Sections or Articles or Exhibits of or to this Indenture
unless otherwise indicated; and

 

(g)                                 references to sections of or rules under the Securities
Act shall be deemed to include substitute, replacement of successor sections or
rules adopted by the Commission from time to time.

 

ARTICLE TWO

THE NOTES

 

Section 2.01.                             Form and Dating.

 

(a)                                  General. 
The Notes and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A. 
The Notes may have notations, legends or endorsements required by law,
stock exchange rule or usage.  Each Note
shall be dated the date of its authentication. 
The Notes shall be issued in registered form without interest coupons in
minimum denominations of $5,000 and integral multiples of $1,000 in excess
thereof.

 

The
terms and provisions contained in the Notes shall constitute, and are hereby
expressly made, a part of this Indenture, and the Issuers, the Guarantors and
the Trustee, by their execution and delivery of this Indenture, expressly agree
to such terms and provisions and to be bound thereby.  However, to the extent any provision of any
Note conflicts with the express provisions of this Indenture, the provisions of
this Indenture shall govern and be controlling.

 

(b)                                 Global Notes. 
Notes issued in global form shall be substantially in the form of Exhibit
A (and shall include the Global Note Legend thereon and the “Schedule of
Exchanges of Interests in the Global Note” attached thereto).  Notes issued in definitive form shall be
substantially in the form of Exhibit A (but without the Global Note
Legend thereon and without the “Schedule of Exchanges of Interests in the
Global Note” attached thereto).  Each
Global Note shall represent such of the outstanding Notes as shall be specified
therein and each shall provide that it represents the aggregate principal
amount of outstanding Notes from time to time endorsed thereon and that the
aggregate principal amount of outstanding Notes represented thereby may from
time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions.  Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the aggregate
principal amount of outstanding Notes represented thereby shall be made by the
Trustee or, if the Custodian and the Trustee are not the same Person, by the
Custodian at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.07 hereof.

 

27

 

(c)                                  Regulation S Global Notes. 
Notes offered and sold in reliance on Regulation S shall be issued
initially in the form of the Legended Regulation S Global Note, which
shall be deposited on behalf of the purchasers of the Notes represented thereby
with the Trustee, as custodian for The Depository Trust Company (“DTC”) in New York, New York, and registered
in the name of the Depositary or its nominee for the accounts of designated
agents holding on behalf of Euroclear or Clearstream, duly executed by the
Issuers and authenticated by the Trustee as hereinafter provided.  Following the termination of the Restricted
Period, beneficial interests in the Legended Regulation S Global Note may be
exchanged for beneficial interests in Unlegended Regulation S Global Notes
pursuant to Section 2.07 and the Applicable Procedures.  Simultaneously with the authentication of
Unlegended Regulation S Global Notes, the Trustee shall cancel any Legended
Regulation S Global Notes.  The aggregate
principal amount of the Regulation S Global Notes may from time to time be increased
or decreased by adjustments made on the records of the Trustee and the
Depositary or its nominee, as the case may be, in connection with transfers of
interest as hereinafter provided.

 

(d)                                 Euroclear and Clearstream
Procedures Applicable.  The provisions of the “Operating Procedures
of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear”
and the “General Terms and Conditions of Clearstream Banking” and “Customer
Handbook” of Clearstream shall be applicable to transfers of beneficial
interests in the Regulation S Global Notes that are held by Participants
through Euroclear or Clearstream.

 

Section 2.02.                             Execution and Authentication.

 

The
Notes shall be executed on behalf of each Issuer by any one of the
following:  its
Chairman, Chief Executive Officer, President or Chief Financial Officer and
attested by any of the aforementioned Officers other than the Officer who
executed the Notes or any other Person authorized for such purpose.  The signature of any of these officers on the
Notes may be manual or facsimile.

 

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

 

A
Note shall not be valid until authenticated by the manual signature of a duly
authorized signatory of the Trustee. 
Such signature shall be conclusive evidence that the Note has been
authenticated under this Indenture.

 

The
aggregate principal amount of Notes that may be authenticated and delivered
under this Indenture is unlimited.

 

The
Issuers may, subject to Article Four of this Indenture and applicable law,
issue Additional Notes under this Indenture. 
The Notes issued on the Issue Date and any Additional Notes subsequently
issued shall be treated as a single class for all purposes under this
Indenture.

 

At
any time and from time to time after the execution of this Indenture, the
Trustee shall, upon receipt of a written order of the Issuers signed by two
Officers of each Issuer (an “Authentication
Order”), authenticate Notes for original issue in an aggregate
principal

 

28

 

amount specified in such Authentication Order.  The Authentication Order shall specify the
amount of Notes to be authenticated and the date on which the Notes are to be
authenticated.

 

The
Trustee may appoint an authenticating agent acceptable to the Issuers to
authenticate Notes.  An authenticating
agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights
as an Agent to deal with Holders or an Affiliate of the Issuers.

 

Section 2.03.                             Methods of Receiving Payments on the Notes.

 

If
a Holder has given wire transfer instructions to the Company, the Paying Agent,
on behalf of the Issuers, shall pay all principal, interest and premium, if
any, on that Holder’s Notes in accordance with those instructions.  All other payments on Notes shall be made at
the office or agency of the Paying Agent and Registrar within the City and
State of New York unless the Issuers elect to make interest payments by check
mailed to the Holders at their addresses set forth in the register of Holders.

 

Section 2.04.                             Registrar and Paying Agent.

 

(a)                                  The Issuers shall maintain a registrar with
an office or agency where Notes may be presented for registration of transfer
or for exchange (“Registrar”) and
a paying agent with an office or agency where Notes may be presented for
payment (“Paying Agent”).  The Registrar shall keep a register of the
Notes and of their transfer and exchange. 
The Issuers may appoint one or more co-registrars and one or more
additional paying agents.  The term “Registrar”
includes any successor thereto and co-registrar and the term “Paying Agent”
includes any successor thereto and additional paying agent.  The Issuers may change any Paying Agent or
Registrar without prior notice to any Holder. 
The Issuers shall notify the Trustee in writing of the name and address
of any Agent not a party to this Indenture. 
If the Issuers fail to appoint or maintain another entity as Registrar
or Paying Agent, the Trustee shall act as such. 
The Company or any of its Subsidiaries may act as Paying Agent or
Registrar.

 

(b)                                 The Issuers initially appoint DTC to act as
Depositary with respect to the Global Notes.

 

(c)                                  The Issuers initially appoint the Trustee to
act as the Registrar and Paying Agent and to act as Custodian with respect to
the Global Notes.

 

Section 2.05.                             Paying Agent to Hold Money in Trust.

 

The
Issuers shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal,
premium, if any, or interest on the Notes, and shall notify the Trustee of any
default by the Issuers in making any such payment.  While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee.  The Issuers at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or one of its Subsidiaries) shall have no
further liability for the money.  If the

 

29

 

Company
or one of its Subsidiaries acts as Paying Agent, it shall segregate and hold in
a separate trust fund for the benefit of the Holders all money held by it as
Paying Agent.  Upon any bankruptcy or
reorganization proceedings relating to the Issuers, the Trustee shall serve as
Paying Agent for the Notes.

 

Section 2.06.                             Holder Lists.

 

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

 

(b)                                 Every Holder, by receiving and holding the
same, agrees with the Issuers, the Guarantors and the Trustee that none of the
Issuers, the Guarantors or the Trustee or any agent of theirs shall be held
accountable by reason of the disclosure of any information as to the names and
addresses of the Holders in accordance with TIA Section 312, regardless of
the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request
made under TIA Section 312.

 

Section 2.07.                             Transfer
and Exchange.

 

(a)                                  Transfer and Exchange of
Global Notes.  A Global Note may not be transferred as a
whole except by the Depositary to a nominee of the Depositary, by a nominee of
the Depositary to the Depositary or to another nominee of the Depositary, or by
the Depositary or any such nominee to a successor Depositary or a nominee of
such successor Depositary.  All Global
Notes shall be exchanged by the Issuers for Definitive Notes if (i) DTC (A)
notifies the Issuers that it is unwilling or unable to continue as Depositary
for the Global Notes and the Issuers fail to appoint a successor Depositary
within 90 days after receiving such notice or (B) has ceased to be a clearing
agency registered under the Exchange Act and the Issuers fail to appoint a
successor Depositary within 90 days after becoming aware of such condition;
(ii) the Issuers, at their option, notify the Trustee in writing that they
elect to cause the issuance of Definitive Notes; provided that in no event shall the Legended Regulation S
Global Note be exchanged by the Issuers for Definitive Notes prior to the
expiration of the Restricted Period; or (iii) there shall have occurred and be
continuing a Default or Event of Default with respect to the Notes.  Upon the occurrence of any of the preceding
events in (i), (ii) or (iii) above, Definitive Notes shall be issued in such
names as the Depositary shall instruct the Trustee.  Global Notes also may be exchanged or
replaced, in whole or in part, as provided in Sections 2.08 and 2.11
hereof.  Every Note authenticated and
delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.07 or Section 2.08 or 2.11 hereof, shall
be authenticated and delivered in the form of, and shall be, a Global
Note.  A Global Note may not be exchanged
for another Note other than as provided in this Section 2.07(a); however,
beneficial interests in a Global Note may be transferred and exchanged as
provided in Section 2.07(b) or (c) hereof.

 

30

 

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

 

(i)                                     Transfer of Beneficial
Interests in the Same Global Note.  Beneficial interests in any
Restricted Global Note may be transferred to Persons who take delivery thereof
in the form of a beneficial interest in the same Restricted Global Note in
accordance with the transfer restrictions set forth in the Private Placement
Legend; provided, however, that prior to the expiration of
the Restricted Period, transfers of beneficial interests in the Legended
Regulation S Global Note may not be made to a U.S. Person or for the account or
benefit of a U.S. Person (other than an Initial Purchaser).  Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note.  No written orders or instructions shall be
required to be delivered to the Registrar to effect the transfers described in
this Section 2.07(b)(i).

 

(ii)                                  All Other Transfers and
Exchanges of Beneficial Interests in Global Notes.  In
connection with all transfers and exchanges of beneficial interests that are
not subject to Section 2.07(b)(i) above, the transferor of such beneficial
interest must deliver to the Registrar either (A) (1) a written order from a
Participant or an Indirect Participant given to the Depositary in accordance
with the Applicable Procedures directing the Depositary to credit or cause to
be credited a beneficial interest in another Global Note in an amount equal to
the beneficial interest to be transferred or exchanged and (2) instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase or (B) (1)
a written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the
Depositary to cause to be issued a Definitive Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions given
by the Depositary to the Registrar containing information regarding the Person
in whose name such Definitive Note shall be registered to effect the transfer
or exchange referred to in (1) above; provided
that in no event shall Definitive Notes be issued upon the transfer or exchange
of beneficial interests in the Legended Regulation S Global Note prior to the
expiration of the Restricted Period. 
Upon satisfaction of all of the requirements for transfer or exchange of
beneficial interests in Global Notes contained in this Indenture and the Notes
or otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount at maturity of the relevant Global Notes pursuant to Section 2.07(i).

 

(iii)                               Transfer of Beneficial
Interests to Another Restricted Global Note.  A
beneficial interest in any Restricted Global Note may be transferred to a
Person who takes delivery thereof in the form of a beneficial interest in
another Restricted Global

31

 

Note if the transfer complies with the requirements of Section 2.07(b)(ii) above and the Registrar receives the following:

 

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

 

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

 

(iv)                              Transfer and Exchange of Beneficial
Interests in a Restricted Global Note for Beneficial Interests in an
Unrestricted Global Note.  A beneficial interest in any Restricted
Global Note may be exchanged by any Holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note if
the exchange or transfer complies with the requirements of Section 2.07(b)(ii) above and the Registrar receives the following:

 

(A)                              if the holder of such beneficial interest in
a Restricted Global Note proposes to exchange such beneficial interest for a
beneficial interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit C, including the certifications in item
(1)(a) thereof; or

 

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

 

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

 

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

 

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

 

32

 

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

 

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

 

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

 

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

 

(C)                                if such beneficial interest is being
transferred to an Institutional Accredited Investor in reliance on an exemption
from the registration requirements of the Securities Act other than that listed
in subparagraph (B) above, a certificate to the effect set forth in Exhibit
B hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable; or

 

(D)                               if such beneficial interest is being
transferred to the Issuers or any of its Subsidiaries, a certificate to the
effect set forth in Exhibit B, including the certifications in item
(3)(a) thereof,

 

the
Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.07(i) hereof, and the
Issuers shall execute and the Trustee shall authenticate and deliver to the
Person designated in the instructions a Definitive Note in the appropriate
principal amount.  Any Definitive Note
issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.07(c) shall be registered in such name or names
and in such authorized denomination or denominations as the holder of such
beneficial interest shall instruct the Registrar through instructions from the
Depositary and the Participant or Indirect Participant.  The Trustee shall deliver such Definitive
Notes to the Persons in whose names such Notes are so registered.  Any Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this Section 2.07(c)(i) shall bear the Private Placement Legend and shall be
subject to all restrictions on transfer contained therein.

 

(ii)                                  Beneficial Interests in
Legended Regulation S Global Note to Definitive Notes.  A
beneficial interest in the Legended Regulation S Global Note may not be
exchanged for a Definitive Note or transferred to a Person who takes delivery
thereof in the form of a Definitive Note prior to the expiration of the
Restricted Period, except in the case of a transfer pursuant to an exemption
from the registration requirements of the Securities Act other than Rule 903 or
Rule 904.

 

33

 

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

 

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

 

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

 

and,
in each such case, if the Registrar or the Issuers so request or if the
Applicable Procedures so require, an opinion of  counsel in form reasonably acceptable
to the Registrar and the Issuers to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

 

(iv)                              Beneficial Interests in Unrestricted
Global Notes to Unrestricted Definitive Notes.  If any holder of a beneficial
interest in an Unrestricted Global Note proposes to exchange such beneficial
interest for a Definitive Note or to transfer such beneficial interest to a
Person who takes delivery thereof in the form of a Definitive Note, then, upon
satisfaction of the conditions set forth in Section 2.07(b)(ii), the
Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.07(i), and the
Issuers shall execute and the Trustee shall authenticate and deliver to the
Person designated in the instructions a Definitive Note in the appropriate
principal amount.  Any Definitive Note
issued in exchange for a beneficial interest pursuant to this Section 2.07(c)(iv) shall be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest shall instruct the Registrar through instructions from the Depositary
and the Participant or Indirect Participant. 
The Trustee shall deliver such Definitive Notes to the Persons in whose
names such Notes are so registered.  Any
Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.07(c)(iv) shall not bear the Private Placement Legend.

 

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

 

(i)                                     Restricted Definitive Notes
to Beneficial Interests in Restricted Global Notes.  If
any Holder of a Restricted Definitive Note proposes to exchange such Note for a
beneficial interest in a Restricted Global Note or to transfer such Restricted
Definitive Notes to a Person who takes delivery thereof in the form of a
beneficial interest in a

 

34

 

Restricted Global Note,
then, upon receipt by the Registrar of the following documentation:

 

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

 

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

 

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

 

(D)                               if such Restricted Definitive Note is being
transferred to the Issuers or any of its Subsidiaries, a certificate to the
effect set forth in Exhibit B, including the certifications in item (3)(a)
thereof,

 

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

 

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

 

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

 

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

 

and,
in each such case, if the Registrar or the Issuers so request or if the
Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar and the Issuers to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

35

 

Upon satisfaction of the conditions of any of the subparagraphs in this
Section 2.07(d)(ii), the Trustee shall cancel the
Definitive Notes and increase or cause to be increased the aggregate principal
amount of the Unrestricted Global Note.

 

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

 

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

 

(e)                                  Transfer and Exchange of
Definitive Notes for Definitive Notes.  Upon request by a Holder of
Definitive Notes and such Holder’s compliance with the provisions of this Section 2.07(e),
the Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section 2.07(e).

 

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

 

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

 

(B)                                if the transfer shall be made pursuant to any
other exemption from the registration requirements of the Securities Act, then
the transferor must deliver a certificate in the form of Exhibit B,
including the certifications, certificates and Opinion of Counsel required by
item (3) thereof, if applicable.

 

(ii)                                  Restricted Definitive Notes
to Unrestricted Definitive Notes.  Any Restricted Definitive Note
may be exchanged by the Holder thereof for an Unrestricted

 

36

 

Definitive Note or transferred to a Person or Persons who take delivery
thereof in the form of an Unrestricted Definitive Note if the Registrar
receives the following:

 

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

 

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

 

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

 

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

 

(f)                                    [Intentionally omitted].

 

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

 

(i)                                     Private Placement Legend. 
Except as permitted below, each Global Note and each Definitive Note
(and all Notes issued in exchange therefor or substitution thereof) shall bear
the legend in substantially the following form:

 

THIS
NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS.  NEITHER THIS NOTE NOR
THE GUARANTEES ENDORSED HEREON NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.  THE HOLDER OF THIS NOTE AND THE GUARANTEES
ENDORSED HEREON, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE

 

37

 

LATER
OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUERS OR ANY
AFFILIATE OF THE ISSUERS WERE THE OWNER OF THIS NOTE AND THE GUARANTEES
ENDORSED HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES ENDORSED
HEREON) (THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO THE COMPANY OR
ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES AND GUARANTEES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)
TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO
NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUERS’ AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
(I) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40 DAY DISTRIBUTION
COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT
OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND (II) IN EACH OF THE FOREGOING
CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS
NOTE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE.  THIS LEGEND WILL BE REMOVED UPON THE REQUEST
OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

Notwithstanding the foregoing, any Global Note or Definitive Note
issued pursuant to subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii),
(e)(ii) or (e)(iii) to this Section 2.07 (and all Notes issued in exchange
therefor or substitution thereof) shall not bear the Private Placement Legend.

 

(ii)                                  Global Note Legend.  Each
Global Note shall bear a legend in substantially the following form:

 

THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE TRUSTEE MAY MAKE SUCH

 

38

 

NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II)
THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a)
OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (IV) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE ISSUERS.

 

(h)                                 Regulation S Global Note
Legend. The Regulation S
Global Note shall bear a legend in substantially the following form:

 

THE
RIGHTS ATTACHING TO THIS REGULATION S GLOBAL NOTE, AND THE CONDITIONS AND
PROCEDURES GOVERNING ITS EXCHANGE FOR DEFINITIVE NOTES, ARE AS SPECIFIED IN THE
INDENTURE (AS DEFINED HEREIN).

 

(i)                                     Cancellation and/or
Adjustment of Global Notes.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in
part, each such Global Note shall be returned to or retained and canceled by
the Trustee in accordance with Section 2.12 hereof.  At any time prior to such cancellation, if any
beneficial interest in a Global Note is exchanged for or transferred to a
Person who shall take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes
represented by such Global Note shall be reduced accordingly and an endorsement
shall be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such reduction; and if the beneficial interest
is being exchanged for or transferred to a Person who shall take delivery
thereof in the form of a beneficial interest in another Global Note, such other
Global Note shall be increased accordingly and an endorsement shall be made on
such Global Note by the Trustee or by the Depositary at the direction of the
Trustee to reflect such increase.

 

(j)                                     General Provisions Relating
to Transfers and Exchanges.

 

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

 

(ii)                                  No service charge shall be made to a Holder
of a beneficial interest in a Global Note or to a Holder of a Definitive Note
for any registration of transfer or exchange, but the Issuers may require
payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to
Sections 2.11, 3.06, 3.08, 4.10, 4.14 and 9.05).

 

39

 

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

 

(iv)                              All Global Notes and Definitive Notes issued
upon any registration of transfer or exchange of Global Notes or Definitive
Notes shall be the valid and legally binding obligations of the Issuers,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Global Notes or Definitive Notes surrendered upon such
registration of transfer or exchange.

 

(v)                                 The Issuers shall not be required (A) to
issue, to register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of any selection of
Notes for redemption under Section 3.02 and ending at the close of
business on the day of selection, (B) to register the transfer of or to
exchange any Note so selected for redemption in whole or in part, except the
unredeemed portion of any Note being redeemed in part, (C) to register the
transfer of or to exchange a Note between a record date and the next succeeding
interest payment date or (D) to register the transfer of or to exchange a Note
tendered and not withdrawn in connection with a Change of Control Offer or an
Asset Sale Offer.

 

(vi)                              Prior to due presentment for the registration
of a transfer of any Note, the Trustee, any Agent and the Issuers may deem and
treat the Person in whose name any Note is registered as the absolute owner of
such Note for the purpose of receiving all payments of principal of and
interest on such Notes and for all other purposes, and none of the Trustee, any
Agent or the Issuers shall be affected by notice to the contrary.

 

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

 

(viii)                        All certifications, certificates and Opinions
of Counsel required to be submitted to the Registrar pursuant to this Section 2.07
to effect a registration of transfer or exchange may
be submitted by facsimile.

 

Section 2.08.                             Replacement
Notes.

 

(a)                                  If any mutilated Note is surrendered to the
Trustee or the Issuers and the Trustee receives evidence to its satisfaction of
the destruction, loss or theft of any Note, the Issuers shall issue and the
Trustee, upon receipt of an Authentication Order, shall authenticate a
replacement Note if the Trustee’s requirements are met.  If required by the Trustee or the Issuers, an
indemnity bond must be supplied by the Holder that is sufficient in the
judgment of the Trustee and the Issuers to protect the Issuers, the Trustee,
any Agent and any authenticating agent from any loss that any of them may
suffer if a Note is replaced.  The
Issuers may charge for their expenses in replacing a Note.

 

(b)                                 Every replacement Note is an additional
obligation of the Issuers and shall be entitled to all of the benefits of this
Indenture equally and proportionately with all other Notes duly issued
hereunder.

 

40

 

Section 2.09.                             Outstanding
Notes.

 

(a)                                  The Notes outstanding at any time are all the
Notes authenticated by the Trustee except for those canceled by it, those
delivered to it for cancellation, those reductions in the interest in a Global
Note effected by the Trustee in accordance with the provisions hereof, and
those described in this Section as not outstanding.  Except as set forth in Section 2.10, a
Note does not cease to be outstanding because the Issuers or an Affiliate of
the Issuers holds the Note; however,
Notes held by the Company or a Subsidiary of the Company shall not be deemed to
be outstanding for purposes of Section 3.07(b).

 

(b)                                 If a Note is replaced pursuant to Section 2.08,
it ceases to be outstanding unless the Trustee receives proof satisfactory to
it that the replaced Note is held by a bona fide purchaser or protected
purchaser.

 

(c)                                  If the principal amount of any Note is
considered paid under Section 4.01, it ceases to be outstanding and
interest on it ceases to accrue.

 

(d)                                 If the Paying Agent (other than the Company,
a Subsidiary of the Company or an Affiliate of any of the foregoing) holds, on
a redemption date or maturity date, money sufficient to pay Notes payable on
that date, then on and after that date such Notes shall be deemed to be no
longer outstanding and shall cease to accrue interest.

 

Section 2.10.                             Treasury
Notes.

 

In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Issuers, or
by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Issuers, shall be considered as
though not outstanding, except that for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Notes that a Responsible Officer of the Trustee actually knows are so
owned shall be so disregarded.

 

Section 2.11.                             Temporary
Notes.

 

(a)                                  Until certificates representing Notes are
ready for delivery, the Issuers may prepare and the Trustee, upon receipt of an
Authentication Order, shall authenticate temporary Notes.  Temporary Notes shall be substantially in the
form of Definitive Notes but may have variations that the Issuers consider
appropriate for temporary Notes and as shall be reasonably acceptable to the
Trustee.  Without unreasonable delay, the
Issuers shall prepare and the Trustee shall authenticate definitive Notes in
exchange for temporary Notes.

 

(b)                                 Holders of temporary Notes shall be entitled
to all of the benefits of this Indenture.

 

Section 2.12.                             Cancellation.

 

The
Issuers at any time may deliver Notes to the Trustee for cancellation.  The Registrar and Paying Agent shall forward
to the Trustee any Notes surrendered to them for

 

41

 

registration of transfer, exchange or payment.  The Trustee and no one else shall cancel all
Notes surrendered for registration of transfer, exchange, payment, replacement
or cancellation and shall dispose of canceled Notes in accordance with its
procedures for the disposition of canceled securities in effect as of the date
of such disposition (subject to the record retention requirement of the
Exchange Act).  Certification of the
disposition of all canceled Notes shall be delivered to the Issuers upon their
written request.  The Issuers may not
issue new Notes to replace Notes that they have paid or that have been
delivered to the Trustee for cancellation.

 

Section 2.13.                             Defaulted
Interest.

 

If
the Issuers default in a payment of interest on the Notes, such interest and
interest on such defaulted interest shall forthwith cease to be payable to the
Holder on the record date set forth in the Notes by virtue of having been such
Holder and the Issuers shall pay the defaulted interest in any lawful manner
plus, to the extent lawful, interest payable on the defaulted interest, to the
Persons who are Holders on a subsequent special record date, in each case at
the rate provided in the Notes and in Section 4.01.  The Issuers shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note and
the date of the proposed payment.  The
Issuers shall fix or cause to be fixed each such special record date and
payment date, provided that no
such special record date shall be less than 10 days prior to the related
payment date for such defaulted interest. 
At least 10 days before the special record date, the Issuers (or, upon
the written request of the Issuers, the Trustee in the name and at the expense
of the Issuers) shall mail or cause to be mailed to Holders a notice that
states the special record date, the related payment date and the amount of such
interest to be paid.

 

Section 2.14.                             CUSIP
Numbers.

 

The
Issuers in issuing the Notes may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption
as a convenience to Holders; provided
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in
any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not
be affected by any defect in or omission of such numbers.  The Issuers shall promptly notify the Trustee
of any change in the “CUSIP” numbers.

 

ARTICLE THREE

REDEMPTION
AND OFFERS TO

PURCHASE

 

Section 3.01.                             Notices
to Trustee.

 

If
the Issuers elect to redeem Notes pursuant to the optional redemption
provisions of Section 3.07, they shall furnish to the Trustee, at least 30
days but not more than 60 days before a redemption date, an Officers’
Certificate setting forth (i) the clause of this Indenture pursuant to which
the redemption shall occur, (ii) the redemption date, (iii) the principal
amount of Notes to be redeemed and (iv) the redemption price.

 

42

 

Section 3.02.                             Selection
of Notes to Be Redeemed.

 

(a)                                  If less than all of the Notes are to be
redeemed at any time, the Trustee shall select the Notes for redemption as
follows:

 

(i)                                     if the Notes are listed on any national
securities exchange, in compliance with the requirements of such principal
national securities exchange; or

 

(ii)                                  if the Notes are not so listed, on a pro rata basis, by lot or by such method
as the Trustee shall deem appropriate.

 

In
the event of partial redemption by lot, the particular Notes to be redeemed
shall be selected, unless otherwise provided herein, not less than 30 nor more
than 60 days prior to the redemption date by the Trustee from the outstanding
Notes not previously called for redemption.

 

(b)                                 The Trustee shall promptly notify the Issuers
in writing of the Notes selected for redemption and, in the case of any Note
selected for partial redemption, the principal amount at maturity thereof to be
redeemed.  No Notes in amounts of $5,000
or less shall be redeemed in part.  Notes
and portions of Notes selected shall be in amounts of $5,000 or whole multiples
of $5,000; except that if all of the Notes of a Holder are to be redeemed, the
entire outstanding amount of Notes held by such Holder, even if not a multiple
of $5,000, shall be redeemed.  Except as
provided in the preceding sentence, provisions of this Indenture that apply to
Notes called for redemption also apply to portions of Notes called for redemption.

 

Section 3.03.                             Notice
of Redemption.

 

(a)                                  At least 30 days but not more than 60 days
before a redemption date, the Issuers shall mail or cause to be mailed, by
first class mail, a notice of redemption to each Holder whose Notes are to be
redeemed at its registered address.

 

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

 

(i)                                     the redemption date;

 

(ii)                                  the redemption price;

 

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

 

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

 

(v)                                 that Notes called for redemption must be
surrendered to the Paying Agent to collect the redemption price and become due
on the date fixed for redemption;

 

43

 

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

 

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

 

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

 

(b)                                 At the Issuers’ request, the Trustee shall
give the notice of redemption in the Issuers’ name and at their expense; provided, however,
that the Issuers shall have delivered to the Trustee, at least 35 days prior to
the redemption date, an Officers’ Certificate requesting that the Trustee give
such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.  The
notice, if mailed in the manner provided herein shall be presumed to have been
given, whether or not the Holder receives such notice.

 

Section 3.04.                             Effect
of Notice of Redemption.

 

Once
notice of redemption is mailed in accordance with Section 3.03 hereof,
Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price. 
Interest, if any, on Notes called for redemption ceases to accrue on and
after the redemption date, unless the Issuers default in making the applicable
redemption payment.  A notice of
redemption may not be conditional.

 

Section 3.05.                             Deposit
of Redemption Price.

 

(a)                                  Not later than 12:00 p.m. (noon) Eastern Time
on the redemption date, the Issuers shall deposit with the Trustee or with the
Paying Agent money sufficient to pay the redemption price of and accrued and
unpaid interest on all Notes to be redeemed on that date.  The Trustee or the Paying Agent shall
promptly return to the Issuers any money deposited with the Trustee or the
Paying Agent by the Issuers in excess of the amounts necessary to pay the
redemption price of, and accrued and unpaid interest on, all Notes to be
redeemed.

 

(b)                                 If the Issuers comply with the provisions of
the preceding paragraph, on and after the redemption date, interest shall cease
to accrue on the Notes or the portions of Notes called for redemption.  If a Note is redeemed on or after an interest
record date but on or prior to the related interest payment date, then any
accrued and unpaid interest shall be paid to the Person in whose name such Note
was registered at the close of business on such record date.  If any Note called for redemption shall not
be so paid upon surrender for redemption because of the failure of the Issuers
to comply with the preceding paragraph, interest shall be paid on the unpaid
principal from the redemption date until such principal is paid and to the
extent lawful on any interest not paid on such unpaid principal, in each case
at the rate provided in the Notes and in Section 4.01.

 

44

 

Section 3.06.                             Notes Redeemed in Part.

 

Upon
surrender and cancellation of a Note that is redeemed in part, the Issuers
shall issue and the Trustee shall authenticate for the Holder at the expense of
the Issuers a new Note equal in principal amount to the unredeemed portion of
the Note surrendered.  No Notes in
denominations of $5,000 or less shall be redeemed in part.

 

Section 3.07.                             Optional
Redemption.

 

(a)                                  Except as set forth in clauses (b) and (c) of
this Section 3.07, the Issuers shall not have the option to redeem the
Notes pursuant to this Section 3.07 prior to September 1, 2008.  On or after September 1, 2008, the
Issuers may redeem all or a part of the Notes at the redemption prices
(expressed as percentages of principal amount) set forth below plus accrued and
unpaid interest thereon, to the applicable redemption date, if redeemed during
the twelve-month period beginning on September 1 of the years indicated
below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.375

  	
  %

  
	
  2009

  	
   

  	
  102.188

  	
  %

  
	
  2010 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)                                 At any time prior to September 1, 2007,
the Issuers may redeem up to 35% of the aggregate principal amount of the Notes
issued hereunder (including any Additional Notes) at a redemption price of
108.75% of the principal amount thereof, plus accrued and unpaid interest
thereon to the redemption date, with the net cash proceeds of one or more
Qualified Equity Offerings; provided
that:

 

(i)                                     at least 65% of the aggregate principal
amount of the Notes issued hereunder (including any Additional Notes) remains
outstanding immediately after the occurrence of such redemption (excluding, for
purposes of such calculation, Notes held by the Company or its Subsidiaries);
and

 

(ii)                                  the redemption must occur within 90 days of the
date of the closing of such Qualified Equity Offering.

 

(c)                                  If at any time prior to September 1,
2008:

 

(i)                                     (A) the Company has made an Asset Sale Offer
for 50% or more of the outstanding Notes in compliance with Section 4.10,
(B) the Company has purchased all Notes tendered and (C) less than all of the
outstanding Notes have been tendered and purchased pursuant to such Asset Sale
Offer; or

 

(ii)                                  the Company or a Restricted Subsidiary
thereof has entered into a binding agreement related to a transaction that is
subject to Section 5.01 pursuant to which the Company or any of its
Restricted Subsidiaries is entitled to receive net proceeds in excess of the
sum of the principal amount of all secured Indebtedness and Notes outstanding
at such time,

 

45

 

then the Company may redeem all or part of the
Notes at a redemption price equal to the sum of (A) 100% of the principal
amount thereof, plus (B) the
Applicable Premium as of the date of redemption, plus (C) accrued and unpaid interest, if any, to the date of
redemption.

 

(d)                                 Any redemption pursuant to this Section 3.07
shall be made in accordance with the provisions of Sections 3.01 through 3.06.

 

Section 3.08.                             Repurchase Offers.

 

In
the event that, pursuant to Section 4.10 or Section 4.14, the Issuers
shall be required to commence an offer to all Holders to purchase all or a
portion of their respective Notes (a “Repurchase
Offer”), they shall follow the procedures specified in such Sections
and, to the extent not inconsistent therewith, the procedures specified below.

 

The
Repurchase Offer shall remain open for a period of no less than 30 days and no
more than 60 days following its commencement, except to the extent that a
longer period is required by applicable law (the “Offer Period”).  No
later than three Business Days after the termination of the Offer Period (the “Purchase Date”), the Issuers shall purchase
the principal amount of Notes required to be purchased pursuant to Section 4.10
or 4.14 hereof (the “Offer Amount”)
or, if less than the Offer Amount has been tendered, all Notes tendered in
response to the Repurchase Offer. 
Payment for any Notes so purchased shall be made in the same manner as
interest payments are made.

 

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

 

Upon
the commencement of a Repurchase Offer, the Issuers shall send, by first class
mail, a notice to each of the Holders, with a copy to the Trustee.  The notice shall contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the
Repurchase Offer.  The Repurchase Offer
shall be made to all Holders.  The
notice, which shall govern the terms of the Repurchase Offer, shall state:

 

(i)                                     that the Repurchase Offer is being made
pursuant to this Section 3.08 and Section 4.10 or Section 4.14
hereof, and the length of time the Repurchase Offer shall remain open;

 

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

 

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

 

(iv)                              that, unless the Issuers default in making such
payment, any Note (or portion thereof) accepted for payment pursuant to the
Repurchase Offer shall cease to accrue interest after the Purchase Date;

 

46

 

(v)                                 that Holders electing to have a Note purchased
pursuant to a Repurchase Offer may elect to have Notes purchased in integral
multiples of $5,000 only and integral multiples of $1,000 in excess thereof;

 

(vi)                              that Holders electing to have a Note
purchased pursuant to any Repurchase Offer shall be required to surrender the
Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Note completed, or transfer by book-entry transfer, to the
Issuers, a depositary, if appointed by the Issuers, or a Paying Agent at the
address specified in the notice at least three days before the Purchase Date;

 

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

 

(viii)                        that, if the aggregate amount of Notes
surrendered by Holders exceeds the Offer Amount, the Trustee shall, subject in
the case of a Repurchase Offer made pursuant to Section 4.10, select the
Notes to be purchased on a pro rata basis (with such adjustments as may be
deemed appropriate by the Trustee so that only Notes in denominations of
$5,000, or integral multiples of $1,000 in excess thereof, shall be purchased);
and

 

(ix)                                that Holders whose Notes were purchased only in
part shall be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered (or transferred by book-entry transfer).

 

On
the Purchase Date, the Issuers shall, to the extent lawful, subject in the case
of a Repurchase Offer made pursuant to Section 4.10 to the provisions of Section 4.10,
accept for payment on a pro rata basis to the extent necessary, the Offer
Amount of Notes (or portions thereof) tendered pursuant to the Repurchase
Offer, or if less than the Offer Amount has been tendered, all Notes tendered,
and shall deliver to the Trustee an Officers’ Certificate stating that such
Notes (or portions thereof) were accepted for payment by the Issuers in
accordance with the terms of this Section 3.08.  The Issuers, a Depositary, if appointed by
the Issuers, or the Paying Agent, as the case may be, shall promptly (but in
any case not later than three days after the Purchase Date) mail or deliver to
each tendering Holder an amount equal to the purchase price of Notes tendered
by such Holder, as the case may be, and accepted by the Issuers for purchase,
and the Issuers shall promptly issue a new Note.  The Trustee, upon written request from the
Issuers shall authenticate and mail or deliver such new Note to such Holder, in
a principal amount at maturity equal to any unpurchased portion of the Note
surrendered.  Any Note not so accepted
shall be promptly mailed or delivered by the Issuers to the respective Holder
thereof.  The Issuers shall publicly
announce the results of the Repurchase Offer on the Purchase Date.

 

The
Issuers shall comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder to the extent such
laws or regulations are applicable in connection with the repurchase of the
Notes pursuant to a

 

47

 

Repurchase
Offer.  To the extent that the provisions
of any securities laws or regulations conflict with Section 3.08, 4.10 or
4.14, the Issuers shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under Section 3.08,
4.10 or 4.14 by virtue of such compliance.

 

ARTICLE FOUR

COVENANTS

 

Section 4.01.                             Payment
of Notes.

 

(a)                                  The Issuers shall pay or cause to be paid the
principal of, and premium, if any, and interest on, the Notes on the dates and
in the manner provided in the Notes. 
Principal, premium, if any, and interest shall be considered paid on the
date due if the Paying Agent, if other than the Company or one of its
Subsidiaries, holds as of 12:00 p.m. (noon) Eastern Time on the due date money
deposited by the Issuers in immediately available funds and designated for and
sufficient to pay all principal, premium, if any, and interest then due.

 

(b)                                 The Issuers shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal at the rate equal to 1% per annum in excess of the then applicable
interest rate on the Notes to the extent lawful.  The Issuers shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace period) at the
same rate to the extent lawful.

 

Section 4.02.                             Maintenance
of Office or Agency.

 

(a)                                  The Issuers shall maintain in the Borough of
Manhattan, The City of New York, an office or agency (which may be an office of
the Trustee or Registrar or agent of the Trustee or Registrar) where Notes may
be surrendered for registration of transfer or for exchange and where notices
and demands to or upon the Issuers in respect of the Notes and this Indenture
may be served.  The Issuers shall give
prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency.  If
at any time the Issuers shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee.

 

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

 

(c)                                  The Issuers hereby designates the Corporate
Trust Office of the Trustee as one such office or agency of the Issuers in
accordance with Section 2.04 of this Indenture.

 

48

 

Section 4.03.                             Reports.

 

(a)                                  So long as any Notes are outstanding, the
Company shall provide the Trustee and the Holders of the Notes, within the time
periods specified in the Commission’s rules and regulations, all quarterly and
annual financial information that would be required to be contained in a filing
with the Commission on Forms 10-Q and 10-K if the Company were required to file
such Forms, including:

 

(i)                                     a “Management’s Discussion and Analysis of
Financial Condition and Results of Operations;”

 

(ii)                                  a presentation of Consolidated Cash Flow for
each period presented; and

 

(iii)                               with respect to the annual information only, a
report on the annual financial statements by the Company’s certified
independent accountant;

 

provided, however, that (A) such reports shall not be required to contain separate
financial statements for any Guarantors other than condensed consolidating
footnote disclosure containing information with respect to Guarantors and
Subsidiaries that are not Guaranteeing the Notes, in each case on an aggregate
basis and (B) such reports shall not be required to comply with the rules, regulations
and policies of the Commission with respect to any non-GAAP financial measures
contained therein.

 

(b)                                 In addition, if the Distribution has not been
consummated on or prior to January 1, 2005 and at all times
thereafter until the Distribution has been consummated, the Company shall:

 

(i)                                     provide the Trustee and the Holders, within
10 Business Days, all current reports that would be required to be filed with
the Commission on Form 8-K (other than (x) with respect to any entry into or
termination of any agreement for the acquisition of film rights, (y) with
respect to any entry into or termination of any affiliation agreement that
would not have a material impact on the Company and its Restricted Subsidiaries
and (z) Item 5.02 thereof) if the Company were required to file such reports;

 

(ii)                                  hold a quarterly conference call for the Holders
to discuss the information contained in the annual and quarterly reports
required under this Section 4.03 not later than 5 Business Days from the
time the Company distributes such information to the Holders;

 

(iii)                               no fewer than 3 Business Days prior to the
date of the conference call required to be held in accordance with clause (ii)
above, issue a press release to the appropriate wire services announcing the
time and date of such conference call and directing the Holders, prospective
investors and securities analysts to contact the investor relations office of
the Company to obtain such information or to access such conference call; and

 

(iv)                              either (A) maintain a non-public website to
which Holders, prospective investors and securities analysts are given access
and to which such information and

 

49

 

conference call access
details are posted or (B) distribute via electronic mail such information and
conference call details to Holders, prospective investors and securities
analysts who request to receive such distributions.

 

(c)                                  If the Company has designated any of its
Subsidiaries as Unrestricted Subsidiaries under this Indenture and such
Subsidiaries together would constitute a Significant Subsidiary, then the
quarterly and annual financial information required by this Section 4.03
shall include a reasonably detailed presentation, either on the face of the
financial statements or in the footnotes thereto, and in “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” of
the financial condition and results of operations of the Company and its
Restricted Subsidiaries separate from the financial condition and results of
operations of the Unrestricted Subsidiaries of the Company.

 

(d)                                 For so long as any Notes remain outstanding,
the Company and the Guarantors shall furnish to the Holders and to prospective
investors, upon their request, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act.

 

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).

 

Section 4.04.                             Compliance
Certificate.

 

(a)                                  The Issuers shall deliver to the Trustee,
within 90 days after the end of each fiscal year, an Officers’ Certificate
stating that a review of the activities of the Company and its Subsidiaries
during the preceding fiscal year has been made under the supervision of the
signing Officers with a view to determining whether the Issuers have kept,
observed, performed and fulfilled their obligations under this Indenture, and
further stating, as to each such Officer signing such certificate, that to his
or her knowledge, the Issuers have kept, observed, performed and fulfilled
their obligations under this Indenture and are not in default in the
performance or observance of any of the terms, provisions and conditions of
this Indenture (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which he or she may have
knowledge and what action the Issuers are taking or propose to take with
respect thereto) and that to his or her knowledge no event has occurred and
remains in existence by reason of which payments on account of the principal of
or interest, if any, on the Notes is prohibited or if such event has occurred,
a description of the event and what action the Issuers are taking or proposes
to take with respect thereto.

 

(b)                                 So long as not contrary to the then current
recommendations of the American Institute of Certified Public Accountants, the
Public Accounting Oversight Board or any other body that may oversee
independent public accountants’ practices, and so long as permitted to be
delivered pursuant to such independent public accountants’ internal rules and
guidelines, the year-end financial statements delivered pursuant to Section 4.03(a)(i)
above shall be accompanied by a written statement of the Company’s independent
public accountants (which shall be a firm of established national reputation)
that in making the examination necessary for

 

50

 

certification of such
financial statements, nothing has come to their attention that would lead them
to believe that the Company has failed to comply with the Company’s financial
covenants set forth in Sections 8.8 through 8.11 of the Credit Agreement or, if
an event of noncompliance has come to their attention, specifying the nature
and period of existence thereof, it being understood that such accountants
shall not be liable directly or indirectly to any Person for any failure to
obtain knowledge of any such violation.

 

(c)                                  The Issuers shall, so long as any of the
Notes are outstanding, deliver to the Trustee, promptly after any Officer
becomes aware of any Default or Event of Default, an Officers’  Certificate specifying such Default or Event
of Default and what action the Issuers are taking or proposes to take with
respect thereto.

 

Section 4.05.                             Taxes.

 

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

 

Section 4.06.                             Stay,
Extension and Usury Laws.

 

The
Issuers and each of the Guarantors covenant (to the extent that they may
lawfully do so) that they shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force,
that may affect the covenants or the performance of this Indenture; and the
Issuers and each of the Guarantors (to the extent that they may lawfully do so)
hereby expressly waive all benefit or advantage of any such law, and covenants
that they shall not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law has been
enacted.

 

Section 4.07.                             Restricted
Payments.

 

(a)                                  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly:

 

(i)                                     declare or pay any dividend or make any other
payment or distribution on account of the Company’s or any of its Restricted
Subsidiaries’ Equity Interests (including, without limitation, any payment in
connection with any merger or consolidation involving the Company or any of its
Restricted Subsidiaries) or to the direct or indirect holders of the Company’s
or any of its Restricted Subsidiaries’ Equity Interests in their capacity as
such (other than dividends, payments or distributions payable in Equity
Interests (other than Disqualified Stock) of the Company or dividends, payments
or distributions payable to the Company or a Restricted Subsidiary of the
Company);

 

(ii)                                  purchase, redeem or otherwise acquire or retire for
value (including, without limitation, in connection with any merger or
consolidation involving the

 

51

 

Company) any Equity
Interests of the Company or any Restricted Subsidiary of the Company held by
Persons other than the Company or any of its Restricted Subsidiaries;

 

(iii)                               purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness that is subordinated to the Notes
or the Note Guarantees, except (i) a payment of interest thereon or principal
at the Stated Maturity thereof or (ii) the purchase, redemption, defeasance or
other acquisition or retirement of any such Indebtedness in anticipation of
satisfying a sinking fund obligation or payment of principal at the Stated
Maturity thereof, in each case, due within one year of the date of such
purchase, redemption, defeasance or other acquisition or retirement; or

 

(iv)                              make any Restricted Investment;

 

(all such payments and other actions set forth in Section 4.07(a)(i)
through (iv) being collectively referred to as “Restricted Payments”), unless, at the time of and after giving
effect to such Restricted Payment:

 

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

 

(B)                                the Company would, at the time of such
Restricted Payment and after giving pro forma effect thereto, have been
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Consolidated Leverage Ratio test set forth in Section 4.09(a) and

 

(C)                                such Restricted Payment, together with the
aggregate amount of all other Restricted Payments made by the Company and its
Restricted Subsidiaries after the date of this Indenture (excluding Restricted
Payments permitted by clauses (ii), (iii), (iv), (v), (vi), (vii), (viii),
(ix), (x) or (xi) of Section 4.07(b)), is less than the sum, without
duplication, of:

 

(1)                                  an amount equal to the Company’s Consolidated
Cash Flow for the period (taken as one accounting period) from July 1,
2004 to the end of the Company’s most recently ended fiscal quarter for which
internal financial statements are available at the time of such Restricted
Payment (the “Basket Period”) less
the product of (x) 1.4 and (y) the Company’s Fixed Charges for the Basket Period;
plus

 

(2)                                  100% of the aggregate net cash proceeds
received by the Company since the date of this Indenture as a contribution to
its common equity capital or from the issue or sale of Equity Interests (other
than Disqualified Stock) of the Company or from the issue or sale of
Disqualified Stock or debt securities of the Company that have been converted
into or exchanged for such Equity Interests (other than Equity Interests (or
Disqualified Stock or debt securities) sold to a Restricted Subsidiary of the
Company); plus

 

(3)                                  with respect to Restricted Investments made by
the Company and its Restricted Subsidiaries after the date of this Indenture,
an amount equal to the

 

52

 

aggregate net cash proceeds from the sale of such Restricted
Investment, except to the extent that any such proceeds are included in the
calculation of Consolidated Cash Flow; plus

 

(4)                                  to the extent that any Unrestricted
Subsidiary that was designated as such after the date of this Indenture is
redesignated as a Restricted Subsidiary of the Company, the Fair Market Value
(as determined, if such Subsidiary is not an Insignificant Subsidiary, by the
Board of Directors) of the Company’s Investments in such Subsidiary as of the
date of such redesignation, not to exceed the amount of Restricted Investments
previously made by the Company or any Restricted Subsidiary of the Company in
such Unrestricted Subsidiary.

 

(b)                                 Section 4.07(a) shall not prohibit:

 

(i)                                     the payment of any dividend within 60 days after
the date of declaration thereof, if at said date of declaration such payment
would have complied with the provisions of this Indenture;

 

(ii)                                  the redemption, repurchase, retirement,
defeasance or other acquisition of any Indebtedness of the Company, Co-Issuer
Corp. or any Guarantor that is subordinated to the Notes or Note Guarantees or
of any Equity Interests of the Company or any Restricted Subsidiary of the
Company in exchange for, or out of the net cash proceeds of a contribution to
the common equity of the Company or a substantially concurrent sale (other than
to a Restricted Subsidiary of the Company) of, Equity Interests (other than
Disqualified Stock) of the Company; provided
that the amount of any such net cash proceeds that are utilized for any such
redemption, repurchase, retirement, defeasance or other acquisition shall be
excluded from Section 4.07(a)(C)(2);

 

(iii)                               the redemption, repurchase, retirement,
defeasance or other acquisition of Indebtedness of the Company, Co-Issuer Corp.
or any Guarantor that is subordinated to the Notes or Note Guarantees with the
net cash proceeds from an incurrence of Permitted Refinancing Indebtedness;

 

(iv)                              the redemption, repurchase, retirement,
conversion, exchange or other acquisition of Preferred Stock of any Restricted
Subsidiary of the Company in exchange for or out of the net cash proceeds of a
substantially concurrent issuance or sale of Equity Interests (other than
Disqualified Stock) of the Restricted Subsidiary of the Company that issued the
Preferred Stock being redeemed, repurchased, retired or otherwise acquired; provided that the liquidation or face
value of such Equity Interests proposed to be issued does not exceed the
liquidation or face value of the Preferred Stock being redeemed, repurchased,
retired, converted, exchanged or otherwise acquired (plus all accrued dividends
thereon and the amount of any reasonable premium and other amounts necessary to
accomplish such refinancing and such reasonable fees and expenses incurred in
connection therewith);

 

(v)                                 the payment of any dividend by a Restricted
Subsidiary of the Company to the holders of its common Equity Interests on a
pro rata basis;

 

53

 

(vi)                              Investments acquired as a capital contribution
to, or in exchange for, or out of the net cash proceeds of a substantially
concurrent offering of, Equity Interests (other than Disqualified Stock) of the
Company; provided that the amount
of any such net cash proceeds that are utilized for any such acquisition or
exchange shall be excluded from Section 4.07(a)(C)(2);

 

(vii)                           the declaration and payment of dividends or
distributions on AMC Preferred Stock (and any Preferred Stock issued in
exchange therefor or issued to redeem, repurchase, retire or otherwise acquire
AMC Preferred Stock, in each case, pursuant to Section 4.07(b)(iv) above)
solely in the form of additional Equity Interests (other than Disqualified
Stock);

 

(viii)                        the repurchase of Capital Stock deemed to occur
upon the exercise of options or warrants to the extent that such Capital Stock
represents all or a portion of the exercise price thereof;

 

(ix)                                so long as no Default has occurred and is
continuing or would be caused thereby, payments to any direct or indirect
parent of the Company to provide for operating costs and expenses and capital
expenditures of such direct or indirect parent, including, without limitation,
in respect of directors’ fees and expenses, administrative, legal and
accounting services and costs and expenses with respect to filings with the
Commission; provided that the
aggregate amount of such dividends and other distributions, together with all
other direct or indirect payments by the Company or any of its Restricted
Subsidiaries on account of such costs and expenses, in any calendar year shall
not exceed $20.0 million for calendar years 2004, 2005 and 2006 and $15.0
million for each calendar year thereafter;

 

(x)                                   so long as no Default has occurred and is
continuing or would be caused thereby, the payment of dividends or other
distributions to any direct or indirect parent of the Company; provided that the aggregate amount of such
dividends and other distributions shall not, since the date of this Indenture,
exceed $325.0 million; or

 

(xi)                                the distribution of the proceeds of the issuance
of the Notes and borrowings under the Credit Agreement to the extent described
in the Offering Memorandum under the section entitled “Use of Proceeds.”

 

(c)                                  The amount of all Restricted Payments (other
than cash) shall be the Fair Market Value (as determined by the Board of
Directors) on the date of the Restricted Payment of the assets or securities
proposed to be transferred or issued to or by the Company or such Subsidiary,
as the case may be, pursuant to the Restricted Payment. Not later than the date
of making any Restricted Payment (other than cash) with a Fair Market Value (as
determined by the Board of Directors) in excess of $25.0 million, the Company
shall deliver to the Trustee an Officers’ Certificate stating that such
Restricted Payment is permitted and setting forth the basis upon which the
calculations required by this Section 4.07 were computed.

 

(d)                                 If the Company or a Restricted Subsidiary of
the Company makes a Restricted Payment that, at the time of the making of such
Restricted Payment, would, in the Company’s

 

54

 

good faith determination, be permitted under the requirements of this Section 4.07,
such Restricted Payment shall be deemed to have been made in compliance with this
Section 4.07 notwithstanding any subsequent adjustments made in good faith
to the Company’s financial statements for any period affecting the calculations
set forth above with respect to such Restricted Payment.

 

Section 4.08.                             Dividend
and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

(a)                                  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, create or permit
to exist or become effective any consensual encumbrance or restriction on the
ability of any Restricted Subsidiary of the Company to:

 

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

 

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

 

(iii)                               transfer any of its properties or assets to the
Company or any of its Restricted Subsidiaries.

 

(b)                                 The restrictions in paragraph (a) above shall
not apply to encumbrances or restrictions:

 

(i)                                     existing under, by reason of or with respect
to the Credit Agreement, Existing Indebtedness or any other agreements in
effect on the date of this Indenture and any amendments, modifications,
restatements, renewals, extensions, supplements, refundings, replacements or
refinancings thereof, provided
that the encumbrances and restrictions in any such amendments, modifications,
restatements, renewals, extensions, supplements, refundings, replacements or
refinancings are not materially more restrictive, taken as a whole, than those
contained in the Credit Agreement, Existing Indebtedness or such other
agreements, as the case may be, as in effect on the date of this Indenture;

 

(ii)                                  set forth in this Indenture, the Notes and the
Note Guarantees;

 

(iii)                               existing under, by reason of or with respect to
applicable law, rule, regulation or order;

 

(iv)                              with respect to any Person or the property or
assets of a Person acquired by the Company or any of its Restricted
Subsidiaries existing at the time of such acquisition and not incurred in
connection with or in contemplation of such acquisition, which encumbrance or
restriction is not applicable to any Person or the properties or assets of any
Person, other than the Person, or the property or assets of the Person, so
acquired and any amendments, modifications, restatements, renewals, extensions,
supplements, refundings, replacements or refinancings thereof, provided that the encumbrances and
restrictions in any such amendments, modifications, restatements,

 

55

 

renewals,
extensions, supplements, refundings, replacements, or refinancings are not
materially more restrictive, taken as a whole, than those in effect on the date
of the acquisition;

 

(v)                                 in the case of Section 4.08(a)(iii):

 

(A)                              that restrict in a customary manner the
subletting, assignment or transfer of any property or asset that is a lease,
license, conveyance or contract or similar property or asset;

 

(B)                                existing by virtue of any transfer of,
agreement to transfer, option or right with respect to, or Lien on, any
property or assets of the Company or any Restricted Subsidiary thereof not otherwise
prohibited by this Indenture; or

 

(C)                                arising or agreed to in the ordinary course
of business, not relating to any Indebtedness, and that do not, individually or
in the aggregate, materially detract from the value of property or assets of
the Company or any Restricted Subsidiary thereof;

 

(vi)                              existing under, by reason of or with respect
to any agreement for the sale or other disposition of all or substantially all
of the capital stock of, or property and assets of, a Restricted Subsidiary
that restrict distributions by that Restricted Subsidiary pending such sale or
other disposition;

 

(vii)                           restrictions on cash or other deposits or net
worth imposed by customers or lessors or required by insurance, surety or
bonding companies, in each case, under contracts, leases or other agreements
entered into in the ordinary course of business; and

 

(viii)                        existing under, by reason of or with respect to
customary supermajority voting provisions and customary provisions with respect
to the disposition or distribution of assets or property, in each case
contained in joint venture, partnership, or limited liability company
agreements.

 

Section 4.09.                             Incurrence of Indebtedness and Issuance of Preferred Stock.

 

(a)                                  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, incur any
Indebtedness (including Acquired Debt), and the Company shall not permit any of
its Restricted Subsidiaries to issue any Preferred Stock; provided, however, that the Company or any
Guarantor may incur Indebtedness at any time prior to January 1, 2009 if
the Company’s Consolidated Leverage Ratio at the time of the incurrence of such
Indebtedness is less than 7.0 to 1.0 and, at any time on or after January 1,
2009, if the Company’s Consolidated Leverage Ratio at the time of the
incurrence of such Indebtedness is less than 6.0 to 1.0.

 

(b)                                 So long as no Default would be caused
thereby, Section 4.09(a) shall not prohibit the incurrence or issuance of
any of the following (collectively, “Permitted
Debt”):

 

56

 

(i)                                     the incurrence by the Company of Indebtedness
under Credit Facilities (and the incurrence by Co-Issuer Corp. and the
Guarantors of Guarantees thereof) in an aggregate principal amount at any one
time outstanding pursuant to this clause (i) (with letters of credit being
deemed to have a principal amount equal to the maximum potential liability of
the Company and its Restricted Subsidiaries thereunder) not to exceed $950.0
million, less the aggregate amount of all Net Proceeds of Asset Sales applied
by the Company or any Restricted Subsidiary of the Company to permanently repay
any such Indebtedness pursuant to Section 4.10;

 

(ii)                                  the incurrence of Existing Indebtedness;

 

(iii)                               the incurrence by the Issuers and the Guarantors
of Indebtedness represented by the Notes and the related Note Guarantees to be
issued on the date of this Indenture;

 

(iv)                              the incurrence by the Company or any of its
Restricted Subsidiaries of Indebtedness represented by Capital Lease
Obligations, mortgage financings or purchase money obligations, in each case,
incurred for the purpose of financing all or any part of the purchase price or
cost of construction or improvement of property, plant or equipment used in the
business of the Company or such Restricted Subsidiary, in an aggregate
principal amount, including all Permitted Refinancing Indebtedness incurred to
refund, refinance or replace any Indebtedness incurred pursuant to this clause
(iv), not to exceed $60.0 million at any time outstanding;

 

(v)                                 the incurrence by the Company or any
Restricted Subsidiary of the Company of Permitted Refinancing Indebtedness in
exchange for, or the net proceeds of which are used to refund, refinance or
replace Indebtedness (other than intercompany Indebtedness) that was permitted
by this Indenture to be incurred under this Section 4.09(a) or clauses
(ii), (iii), (iv), (v) or (xii) of this Section 4.09(b);

 

(vi)                              the incurrence by the Company or any of its
Restricted Subsidiaries of intercompany Indebtedness owing to and held by the
Company or any of its Restricted Subsidiaries; provided,
however, that:

 

(a)          if the Company or any Guarantor is the
obligor on such Indebtedness and such Indebtedness is held by a Person that is
not the Company, Co-Issuer Corp. or a Guarantor, such Indebtedness must be
unsecured and expressly subordinated to the prior payment in full in cash of
all Obligations with respect to the Notes, in the case of the Company, or the
Note Guarantee, in the case of a Guarantor;

 

(b)         Indebtedness owed to the Company or any
Guarantor must be evidenced by an unsubordinated promissory note, unless the
obligor under such Indebtedness is the Company or a Guarantor; and

 

(c)          (i) any subsequent issuance or transfer of
Equity Interests that results in any such Indebtedness being held by a Person
other than the Company or a Restricted Subsidiary thereof and (ii) any sale or
other transfer of any

 

57

 

such
Indebtedness to a Person that is not either the Company or a Restricted
Subsidiary thereof, shall be deemed, in each case, to constitute an incurrence
of such Indebtedness by the Company or such Restricted Subsidiary, as the case
may be, that was not permitted by this clause (vi);

 

(vii)                           the issuance of shares of Preferred Stock by
any of the Company’s Restricted Subsidiaries to the Company or to a Guarantor;
provided that (i) any subsequent issuance or transfer of any Equity Interests
that results in such Preferred Stock being held by a Person other than the
Company or a Guarantor and (ii) any sale or other transfer of any such
Preferred Stock to a Person that is not either the Company or a Guarantor shall
be deemed, in each case, to constitute an issuance of such shares of Preferred
Stock that was not permitted by this clause (vii);

 

(viii)                        the Guarantee by the Issuers or any of the
Guarantors of Indebtedness of the Company or a Restricted Subsidiary of the
Company that was permitted to be incurred by another provision of this Section 4.09;

 

(ix)                                the incurrence of any Monetization Indebtedness;

 

(x)                                   the incurrence by the Company or any of its
Restricted Subsidiaries of Indebtedness to the extent the net proceeds thereof
are promptly deposited to (i) defease all outstanding Notes pursuant to Article Eight
hereof or (ii) satisfy and discharge this Indenture pursuant to Article 11
hereof;

 

(xi)                                the issuance of up to 3,500,000 shares of AMC
Preferred Stock, any Preferred Stock issued in exchange therefor or issued to
redeem, repurchase, retire or otherwise acquire such AMC Preferred Stock
pursuant to Section 4.07(b)(iv), and any subsequent issuance of Equity
Interests (other than Disqualified Stock) on any of the foregoing as a
dividend; or

 

(xii)                             the incurrence by the Company or any of its
Restricted Subsidiaries of additional Indebtedness in an aggregate principal
amount (or accreted value, as applicable) at any time outstanding, including
all Permitted Refinancing Indebtedness incurred to refund, refinance or replace
any Indebtedness incurred pursuant to this clause (xii), not to exceed $50.0
million; provided that the
aggregate principal amount (or accreted value, as applicable) of Indebtedness
of all Restricted Subsidiaries of the Company that are not Guarantors incurred
pursuant to this clause (xii), together with all Permitted Refinancing
Indebtedness incurred to refund, refinance or replace any such Indebtedness,
shall not at any time exceed $25.0 million.

 

For
purposes of determining compliance with this Section 4.09, in the event
that any proposed Indebtedness meets the criteria of more than one of the
categories of Permitted Debt described in clauses (i) through (xii) above, or
is entitled to be incurred pursuant to Section 4.09(a), the Company shall
be permitted to classify at the time of its incurrence such item of
Indebtedness in any manner that complies with this Section 4.09.
Indebtedness under the Credit Agreement outstanding on the date on which Notes
are first issued under this Indenture shall be deemed to have been incurred on
such date in reliance on the exception provided by clause (i)

 

58

 

above. In addition, (A) any Indebtedness
originally classified as incurred pursuant to clauses (i) through (xii) above
may later be reclassified by the Company such that it shall be deemed as having
been incurred pursuant to another of such clauses to the extent that such
reclassified Indebtedness could be incurred pursuant to such new clause at the
time of such reclassification and (B) any Indebtedness originally classified as
incurred pursuant to Section 4.09(a) or pursuant to clauses 4.09(b)(ii)
through (xii) above may later be reclassified by the Company such that it shall
be deemed as having been incurred pursuant to Section 4.09(a) or pursuant
to another of such clauses to the extent that such reclassified Indebtedness
could be incurred pursuant to Section 4.09(a) or such new clause at the
time of such reclassification.

 

(c)                                  Notwithstanding any other provision of this Section 4.09:

 

(i)                                     the maximum amount of Indebtedness that may be
incurred pursuant to this Section 4.09 shall not be deemed to be exceeded
with respect to any outstanding Indebtedness due solely to the result of
fluctuations in the exchange rates of currencies;

 

(ii)                                  any Indebtedness of a Person existing at the
time such Person becomes a Restricted Subsidiary of the Company shall be deemed
to be incurred by such Restricted Subsidiary at the time it becomes a
Restricted Subsidiary of the Company;

 

(iii)                               neither the accrual of interest nor the
accretion of original issue discount (to the extent provided for when the
Indebtedness on which such interest is paid was originally issued) shall be
considered an incurrence of Indebtedness; provided
that in each case the amount thereof is for all other purposes included in the
Fixed Charges and, in the case of accretion of original issue discount,
Indebtedness of the Company or its Restricted Subsidiaries as accrued or
accreted, as applicable; and

 

(iv)                              the payment of interest in the form of
additional Indebtedness with the same terms and the payment of dividends on
Disqualified Stock in the form of additional shares of the same class of
Disqualified Stock (to the extent provided for when the Indebtedness or
Disqualified Stock on which such interest or dividend is paid was originally
issued) shall not be considered an incurrence of Indebtedness; provided that in each case the amount
thereof is for all other purposes included in the Fixed Charges and
Indebtedness of the Company or its Restricted Subsidiaries as accrued.

 

(d)                                 (i) The Company shall not incur any
Indebtedness that is subordinate or junior in right of payment to any other
Indebtedness of the Company unless it is subordinate in right of payment to the
Notes to the same extent and (ii) Co-Issuer Corp. shall not incur any
Indebtedness that is subordinate or junior in right of payment to any other
Indebtedness of Co-Issuer Corp. unless it is subordinate in right of payment to
the Notes to the same extent.

 

No
Guarantor shall incur any Indebtedness that is subordinate or junior in right
of payment to any other Indebtedness of such Guarantor unless it is subordinate
in right of payment to such Guarantor’s Note Guarantee to the same extent.

 

For
purposes of this Section 4.09(d), no Indebtedness shall be deemed to be
subordinated in right of payment to any other Indebtedness of the Company,
Co-Issuer Corp. or any Guarantor, as applicable, solely by virtue of being
unsecured or by virtue of the fact that the

 

59

 

holders of any secured Indebtedness have entered
into intercreditor agreements giving one or more of such holders priority over
the other holders in the collateral held by them.

 

Section 4.10.                             Asset
Sales.

 

(a)                                  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, consummate an Asset Sale unless:

 

(i)                                     the Company (or the Restricted Subsidiary, as
the case may be) receives consideration at the time of such Asset Sale at least
equal to the Fair Market Value (as determined by the Board of Directors) of the
assets or Equity Interests issued or sold or otherwise disposed of; provided that this clause (i) shall not
apply to an Asset Sale resulting solely from a foreclosure or sale by a third
party upon assets or property subject to a Lien not prohibited by this
Indenture;

 

(ii)                                  where such Fair Market Value exceeds $25.0
million, the Company’s Board of Directors’ determination of such Fair Market
Value is set forth in an Officers’ Certificate delivered to the Trustee; and

 

(iii)                               at least 75% of the consideration therefor
received by the Company or such Restricted Subsidiary is in the form of Cash
Equivalents or Replacement Assets or a combination thereof. For purposes of
this provision, each of the following shall be deemed to be Cash Equivalents:

 

(A)                              any liabilities (as shown on the Company’s or
such Restricted Subsidiary’s most recent balance sheet, or would be shown on
the Company’s or such Restricted Subsidiary’s balance sheet on the date of such
Asset Sale) of the Company or any Restricted Subsidiary (other than contingent
liabilities, Indebtedness that is by its terms subordinated to the Notes or any
Note Guarantee and liabilities to the extent owed to the Company or any
Affiliate of the Company) that are assumed by the transferee of any such assets
pursuant to a written agreement that releases the Company or such Restricted
Subsidiary from further liability therefor; and

 

(B)                                any securities, notes or other obligations
received by the Company or any such Restricted Subsidiary from such transferee
that are converted (including by way of any Monetization Transaction) by the
Company or such Restricted Subsidiary into cash (to the extent of the cash
received in that conversion) within 120 days of such Asset Sale.

 

(b)                                 Within 360 days after the receipt of any Net
Proceeds from an Asset Sale, the Company may apply such Net Proceeds at its
option:

 

(i)                                     to repay unsubordinated secured Indebtedness
and, if the Indebtedness repaid is revolving credit Indebtedness, to
correspondingly reduce commitments with respect thereto;

 

60

 

(ii)                                  to acquire all or substantially all of the
assets of, or a majority of the Voting Stock of, another Permitted Business
(including by means of a merger, consolidation or other business combination
permitted under this Indenture) to be held, commencing on the date of such
acquisition, as or in a Restricted Subsidiary of the Company;

 

(iii)                               to pay for or purchase Replacement Assets; or

 

(iv)                              any combination of the foregoing.

 

Pending
the final application of any such Net Proceeds, the Company may temporarily
reduce revolving credit borrowings or otherwise invest such Net Proceeds in any
manner that is not prohibited by this Indenture.

 

(c)                                  Any Net Proceeds from Asset Sales that are
not applied or invested as provided in Section 4.10(b) above shall
constitute “Excess Proceeds.”
Within 30 days after the aggregate amount of Excess Proceeds exceeds $25.0
million, the Company shall make an Asset Sale offer (an “Asset Sale Offer”) to all Holders of Notes
and all holders of other Indebtedness that is pari
passu with the Notes or any Note Guarantee containing provisions
similar to those set forth by this Indenture with respect to offers to purchase
with the proceeds of sales of assets, to purchase the maximum principal amount
of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds. The offer price in any Asset
Sale Offer shall be equal to 100% of the principal amount of the Notes and such
other pari passu Indebtedness
plus accrued and unpaid interest to the date of purchase, and shall be payable
in cash. If any Excess Proceeds remain after consummation of an Asset Sale
Offer, the Company may use such Excess Proceeds for any purpose not otherwise
prohibited by this Indenture. If the aggregate principal amount of Notes and
such other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Notes and such other pari
passu Indebtedness shall be purchased on a pro rata basis based on
the principal amount of Notes and such other pari
passu Indebtedness tendered. Upon completion of each Asset Sale
Offer, the amount of Excess Proceeds shall be reset at zero.

 

(d)                                 The Company shall comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and
regulations thereunder to the extent such laws and regulations are applicable
in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To
the extent that the provisions of any securities laws or regulations conflict
with the Asset Sale Offer provisions of this Indenture, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations under the Asset Sale Offer provisions
of this Indenture by virtue of such compliance.

 

Section 4.11.                             Transactions
with Affiliates.

 

(a)                                  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, make any payment to, or sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into, make, amend, renew or
extend any transaction, contract, agreement, understanding, loan, advance or
Guarantee with, or for the benefit of, any Affiliate (each, an “Affiliate Transaction”), unless:

 

61

 

(i)                                     such Affiliate Transaction is on terms that
are no less favorable to the Company or the relevant Restricted Subsidiary than
those that would have been obtained in a comparable arm’s-length transaction by
the Company or such Restricted Subsidiary with a Person that is not an
Affiliate of the Company; and

 

(ii)                                  the Company delivers to the Trustee:

 

(A)                              with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate consideration in
excess of $25.0 million, a resolution of the Board of Directors set forth in an
Officers’ Certificate certifying that such Affiliate Transaction or series of
related Affiliate Transactions complies with this Section 4.11 and, if
such Affiliate Transaction is with an entity other than Rainbow Media
Enterprises or a Subsidiary thereof, that such Affiliate Transaction or series
of related Affiliate Transactions has been approved by a majority of the
disinterested members of the Board of Directors; and

 

(B)                                with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate consideration in
excess of $50.0 million, an opinion as to the fairness to the Company or such
Restricted Subsidiary of such Affiliate Transaction or series of related
Affiliate Transactions from a financial point of view issued by an independent
accounting, appraisal or investment banking firm of national standing.

 

(b)                                 The following items shall not be deemed to be
Affiliate Transactions and, therefore, shall not be subject to the provisions
of Section 4.11(a):

 

(i)                                     transactions between or among the Company and/or its
Restricted Subsidiaries;

 

(ii)                                  transactions, contracts, agreements,
understandings, loans, advances or Guarantees having aggregate consideration
(for all such transactions, contracts, agreements, understandings, loans,
advances or Guarantees) not to exceed $500,000 in any fiscal year;

 

(iii)                               transactions or other arrangements pursuant
to employment agreements, collective bargaining agreements, employee benefit
plans or arrangements for employees, officers or directors, including vacation
plans, health and life insurance plans, deferred compensation plans, directors’
and officers’ indemnification arrangements, retirement or savings plans, stock
option, stock ownership and similar plans and similar arrangements; provided that, for any of the foregoing
(A) any such transaction or arrangement is with respect to any Person other
than a Principal and (B) the terms of any such transaction or arrangement have
been approved by the Board of Directors of the Company in good faith;

 

(iv)                              Restricted Payments that are not prohibited by the
provisions of Section 4.07;

 

(v)                                 any sale of Capital Stock (other than
Disqualified Stock) of the Company;

 

62

 

(vi)                              loans and advances to officers, directors or
employees of the Company or its Restricted Subsidiaries (or guarantees of third
party loans to such officers, directors or employees) in an amount not to
exceed $5.0 million outstanding at any time;

 

(vii)                           the issuance of up to 3,500,000 shares of AMC
Preferred Stock and any action taken by the holders of the AMC Preferred Stock
permitted by the certificate of designations for the AMC Preferred Stock;

 

(viii)                        the payment of interest and principal to
holders of Indebtedness; provided
that (1) the terms of such interest and principal payments were set forth in
the original documentation pursuant to which such Indebtedness was incurred,
and (2) either (A) the incurrence of such Indebtedness was subject to and not
prohibited by this Section 4.11 or (B) such Indebtedness was not initially
issued, directly or indirectly, to any Affiliate of the Company or any of its
Restricted Subsidiaries;

 

(ix)                                transactions pursuant to agreements or
arrangements between Rainbow Media Enterprises and its Subsidiaries, on the one
hand, and Cablevision Systems Corporation or its Subsidiaries, on the other
hand, that are (1) put in place on or prior to the date of the Distribution and
(2) on terms as favorable to the Company or the relevant Restricted Subsidiary
of the Company as those available from unrelated parties for a comparable
arrangement, or any amendment, modification or supplement thereto or any
replacement thereof, as long as such agreement or arrangement as so amended,
modified, supplemented or replaced, taken as a whole, is not materially more
disadvantageous to the Company and its Restricted Subsidiaries than such
original agreement or arrangement; and

 

(x)                                   transactions pursuant to other agreements or
arrangements in effect on the date of this Indenture that are either (A)
described in the Offering Memorandum or (B) would not be required to be
described pursuant to Item 404 of Regulation S-K promulgated pursuant to the
Securities Act, or any amendment, modification or supplement thereto or any
replacement thereof, as long as such agreement or arrangement as so amended,
modified, supplemented or replaced, taken as a whole, is not materially more
disadvantageous to the Company and its Restricted Subsidiaries than the
original agreement or arrangement as in effect on the date of this Indenture.

 

Section 4.12.                             Liens.

 

The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
create, incur, assume or otherwise cause or suffer to exist or become effective
any Lien of any kind (other than Permitted Liens) upon any of their property or
assets, now owned or hereafter acquired, unless all payments due under this
Indenture and the Notes are secured on an equal and ratable basis with the
obligations so secured (or, in the case of Indebtedness subordinated to the
Notes or the Note Guarantees, senior thereto, with the same relative priority
as the Notes shall have with respect to such subordinated Indebtedness) until
such time as such obligations are no longer secured by a Lien.

 

63

 

Section 4.13.                             Business
Activities.

 

(a)                                  The Company shall not, and shall not permit
any Restricted Subsidiary thereof to, engage in any business other than
Permitted Businesses, except to such extent as would not be material to the
Company and its Restricted Subsidiaries taken as a whole.

 

(b)                                 Co-Issuer Corp. shall not hold any material
assets or become liable for any Obligations or engage in any business
activities; provided that
Co-Issuer Corp. may be a co-obligor of the Notes (including any Additional
Notes) pursuant to the terms of this Indenture, a borrower or guarantor pursuant
to the terms of the Credit Agreement or a co-obligor on other Indebtedness of
the Company if the Company is an obligor of such Indebtedness and the net
proceeds of such Indebtedness are received by the Company or one or more of the
Company’s Restricted Subsidiaries other than Co-Issuer Corp.  Co-Issuer Corp. may, as necessary, engage in
any activities directly related to or necessary in connection with serving as a
co-obligor of the Notes, a borrower or guarantor pursuant to the terms of the
Credit Agreement and a co-obligor on such other Indebtedness. The Company shall
not sell or otherwise dispose of any of its Equity Interests in Co-Issuer Corp.
and shall not permit Co-Issuer Corp., directly or indirectly, to issue or sell
or otherwise dispose of any of its Equity Interests.

 

Section 4.14.                             Offer to Repurchase
upon a Change of Control.

 

(a)                                  If a Change of Control occurs, each Holder of
Notes shall have the right to require the Issuers to repurchase all or any part
(equal to $5,000 or an integral multiple of $1,000 in excess thereof) of that
Holder’s Notes pursuant to an offer by the Issuers (a “Change of Control Offer”) at an offer price
(a “Change of Control Payment”) in
cash equal to 101% of the aggregate principal amount thereof plus accrued and
unpaid interest thereon, to the date of the Change of Control Payment
Date.  Within 60 days following any
Change of Control, the Issuers shall mail a notice to each Holder describing
the transaction or transactions that constitute the Change of Control and
offering to repurchase Notes on a date (the “Change
of Control Payment Date”) specified in such notice, which date shall
be no earlier than 30 days and no later than 60 days from the date such notice
is mailed, pursuant to the procedures described in Section 3.08 (including
the notice required thereby). The Issuers shall comply with the requirements of
Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent such laws and regulations are applicable in connection
with the repurchase of the Notes as a result of a Change of Control. To the
extent that the provisions of any securities laws or regulations conflict with
the Change of Control provisions of this Indenture, the Issuers shall comply
with the applicable securities laws and regulations and shall not be deemed to
have breached their obligations under the Change of Control provisions of this
Indenture by virtue of such compliance.

 

(b)                                 On the Change of Control Payment Date, the
Issuers shall, to the extent lawful:

 

(i)                                     accept for payment all Notes or portions
thereof properly tendered pursuant to the Change of Control Offer;

 

64

 

(ii)                                  deposit with the Paying Agent an amount equal
to the Change of Control Payment in respect of all Notes or portions thereof so
tendered; and

 

(iii)                               deliver or cause to be delivered to the Trustee the
Notes so accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions thereof being purchased by the Issuers.

 

(c)                                  The Paying Agent shall promptly mail or wire
transfer to each Holder of Notes so tendered the Change of Control Payment for
such Notes, and the Trustee shall promptly authenticate and mail (or cause to
be transferred by book entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note shall be
in a principal amount of $5,000 or an integral multiple of $1,000 in excess
thereof.  Any Note so accepted for
payment shall cease to accrue interest on and after the Change of Control
Payment Date.

 

(d)                                 The Issuers shall publicly announce the
results of the Change of Control Offer on or as soon as practicable after the
Change of Control Payment Date.

 

(e)                                  Notwithstanding anything to the contrary in
this Section 4.14, the Issuers shall not be required to make a Change of
Control Offer upon a Change of Control if a third party makes the Change of
Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.14 and all other provisions of
this Indenture applicable to a Change of Control Offer made by the Issuers and
purchases all Notes validly tendered and not withdrawn under such Change of
Control Offer.

 

Section 4.15.                             [Intentionally
omitted].

 

Section 4.16.                             Designation
of Restricted and Unrestricted Subsidiaries.

 

(a)                                  Unless designated as an Unrestricted
Subsidiary, each newly acquired or created Subsidiary of the Company or a
Restricted Subsidiary of the Company shall be a Restricted Subsidiary of the
Company.  Any Restricted Subsidiary of
the Company (other than Co-Issuer Corp.) may be designated by the Company as an
Unrestricted Subsidiary; provided
that:

 

(i)                                     any Guarantee by the Company or any Restricted
Subsidiary thereof of any Indebtedness of the Subsidiary being so designated
shall be deemed to be an incurrence of Indebtedness by the Company or such
Restricted Subsidiary (or both, if applicable) at the time of such designation,
and such incurrence of Indebtedness would be permitted under Section 4.09;

 

(ii)                                  the aggregate Fair Market Value (as
determined by senior management or the Board of Directors, unless such Fair
Market Value exceeds $10.0 million, in which event such Fair Market Value must
be determined by the Board of Directors) of all outstanding Investments owned
by the Company and its Restricted Subsidiaries in the Subsidiary being so
designated (including any Guarantee by the Company or any Restricted Subsidiary
of any Indebtedness of such Subsidiary) shall be deemed to be a

 

65

 

Restricted
Investment made as of the time of such designation and that such Investment
would be permitted under Section 4.07;

 

(iii)                               such Subsidiary does not hold any Liens (other
than Permitted Liens) on any property of the Company or any Restricted
Subsidiary thereof; and

 

(iv)                              the Subsidiary being so designated:

 

(A)                              is not party to any agreement, contract,
arrangement or understanding with the Company or any Restricted Subsidiary of
the Company unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to the Company or such Restricted
Subsidiary than those that might be obtained at the time from Persons who are
not Affiliates of the Company;

 

(B)                                is a Person with respect to which neither the
Company nor any of its Restricted Subsidiaries has any direct or indirect
obligation (1) to subscribe for additional Equity Interests or (2) to maintain
or preserve such Person’s financial condition or to cause such Person to
achieve any specified levels of operating results; and

 

(C)                                has not Guaranteed or otherwise directly or
indirectly provided credit support for any Indebtedness of the Company or any
of its Restricted Subsidiaries, except to the extent such Guarantee or credit
support would be released upon such designation;

 

(v)                                 no Default or Event of Default would be in
existence following such designation; and

 

(vi)                              if the Subsidiary being so designated is a
Significant Subsidiary (or if the group of Subsidiaries being so designated
would together constitute a Significant Subsidiary), such designation must be
evidenced to the Trustee by filing with the Trustee a certified copy of a
resolution of the Board of Directors giving effect to such designation.

 

(b)                                 Any designation of a Restricted Subsidiary of
the Company as an Unrestricted Subsidiary shall be evidenced to the Trustee by
filing with the Trustee an Officers’ Certificate certifying that such
designation complied with the preceding conditions and was permitted by this
Indenture. If, at any time, any Unrestricted Subsidiary would fail to meet any
of the preceding requirements described in Section 4.16(a)(iv) and such
failure continues for a period of 30 days, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness,
Investments, or Liens on the property, of such Subsidiary shall be deemed to be
incurred or made by a Restricted Subsidiary of the Company as of such date and,
if such Indebtedness, Investments or Liens are not permitted to be incurred or
made as of such date under this Indenture, the Company shall be in violation of
the applicable provisions of this Indenture.

 

66

 

(c)                                  The Company may at any time designate any
Unrestricted Subsidiary to be a Restricted Subsidiary of the Company; provided that:

 

(i)                                     such designation shall be deemed to be an
incurrence of Indebtedness by a Restricted Subsidiary of the Company of any
outstanding Indebtedness of such Unrestricted Subsidiary and such designation
shall only be permitted if such Indebtedness is permitted under the Section 4.09,
calculated on a pro forma basis as if such designation had occurred at the
beginning of the applicable two-quarter reference period;

 

(ii)                                  all outstanding Investments owned by such
Unrestricted Subsidiary shall be deemed to be made as of the time of such
designation and such Investments shall only be permitted if such Investments
would be permitted under Section 4.07;

 

(iii)                               all Liens upon property or assets of such
Unrestricted Subsidiary existing at the time of such designation would be
permitted under Section 4.12; and

 

(iv)                              no Default or Event of Default would be in
existence following such designation.

 

Section 4.17.                             Payments
for Consent.

 

The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, pay or cause to be paid any consideration to or for the
benefit of any Holder of Notes for or as an inducement to any consent, waiver
or amendment of any of the terms or provisions of this Indenture or the Notes
unless such consideration is offered to be paid and is paid to all Holders of
the Notes that consent, waive or agree to amend in the time frame set forth in
the solicitation documents relating to such consent, waiver or agreement.

 

Section 4.18.                             Guarantees.

 

(a)                                  The Company shall not permit any of its
Restricted Subsidiaries (other than Co-Issuer Corp. and any Insignificant
Subsidiary), directly or indirectly, to Guarantee or pledge any assets to
secure the payment of any other Indebtedness of the Company or any of the
Company’s other Restricted Subsidiaries unless such Restricted Subsidiary (i)
is a Guarantor under this Indenture or (ii) becomes a Guarantor under this
Indenture and simultaneously executes and delivers a supplemental indenture
pursuant to which it agrees to be bound by the terms of this Indenture as a
Guarantor, provided that such
Guarantee shall be senior to or pari passu
with such Subsidiary’s Guarantee of such other Indebtedness.

 

(b)                                 In the event that any Restricted Subsidiary
that is an Insignificant Subsidiary ceases to be an Insignificant Subsidiary,
then such Restricted Subsidiary must become a Guarantor and execute a
supplemental indenture pursuant to which it agrees to be bound by the terms of
this Indenture as a Guarantor and, if requested, deliver an Opinion of Counsel
to the Trustee. The form of the Note Guarantee is attached as Exhibit E
hereto.

 

(c)                                  Notwithstanding Section 4.18(a), any
Note Guarantee may provide by its terms that it shall be automatically and
unconditionally released and discharged under the circumstances described under
Section 10.05 hereof.

 

67

 

Section 4.19.                             Suspension
of Certain Covenants and Agreements.

 

(a)                                  During any period of time that the Notes
maintain an Investment Grade Rating from both Rating Agencies and no Default or
Event of Default shall have occurred and then be continuing (the foregoing
conditions being referred to collectively as the “Suspension Condition”), the Company and its Restricted
Subsidiaries shall not be subject to Sections 3.08, 4.07, 4.08, 4.09, 4.10,
4.11, 4.14, 4.20 and clauses (iii) and (v) of Section 5.01(a)
(collectively, the “Suspended Covenants”).

 

(b)                                 If the Company and its Restricted
Subsidiaries are not subject to the Suspended Covenants with respect to the
Notes for any period of time pursuant to Section 4.19(a) and,
subsequently, one or both Rating Agencies withdraw their Investment Grade
Rating or downgrade the Investment Grade Rating assigned to the Notes such that
the Notes no longer have an Investment Grade Rating from both Rating Agencies,
then the Company and each of its Restricted Subsidiaries shall thereafter again
be subject to the Suspended Covenants. 
Compliance with the Suspended Covenants with respect to Restricted
Payments made after the time of such withdrawal or downgrade shall be
calculated in accordance with the terms of Section 4.07 as if such section had
been in effect during the entire period of time from the date of this
Indenture.

 

Section 4.20.                             Limitation
on Issuances and Sales of Equity Interests in Restricted Subsidiaries.

 

The
Company shall not transfer, convey, sell, lease or otherwise dispose of, and shall
not permit any of its Restricted Subsidiaries to, issue, transfer, convey,
sell, lease or otherwise dispose of any Equity Interests (other than issuances
of AMC Preferred Stock or any Preferred Stock (other than Disqualified Stock))
issued in exchange therefor or issued to redeem, repurchase, retire, convert,
exchange or otherwise acquire such AMC Preferred Stock pursuant to Section 4.07(b)(iv),
and any subsequent issuance of Equity Interests (other than Disqualified Stock)
on any of the foregoing as a dividend) in any Restricted Subsidiary of the
Company to any Person (other than the Company or a Restricted Subsidiary of the
Company or shares of its Capital Stock constituting directors’ qualifying
shares or issuances of shares of Capital Stock of foreign Restricted
Subsidiaries to foreign nationals, to the extent required by applicable law),
except:

 

(i)                                     if, immediately after giving effect to such
issuance, transfer, conveyance, sale, lease or other disposition, such
Restricted Subsidiary would no longer constitute a Restricted Subsidiary and
any Investment in such Person remaining after giving effect to such issuance or
sale would have been permitted to be made under Section 4.07 if made on
the date of such issuance or sale and the cash Net Proceeds from such transfer,
conveyance, sale, lease or other disposition are applied in accordance with Section 4.10;
or

 

(ii)                                  sales of Equity Interests of a Restricted
Subsidiary of the Company by the Company or a Restricted Subsidiary of the
Company; provided that the
Company or such Restricted Subsidiary complies with Section 4.10.

 

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ARTICLE FIVE

SUCCESSORS

 

Section 5.01.                             Merger, Consolidation or Sale of Assets.

 

(a)                                  The Company shall not, directly or
indirectly: (1) consolidate or merge with or into another Person (whether or
not the Company is the surviving corporation) or (2) sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties and
assets of the Company and its Restricted Subsidiaries taken as a whole, in one
or more related transactions, to another Person, unless:

 

(i)                                     either: (a) the Company is the surviving
corporation or limited liability company; or (b) the Person formed by or
surviving any such consolidation or merger (if other than the Company) or to
which such sale, assignment, transfer, conveyance or other disposition shall
have been made (1) is a Person organized or existing under the laws of the
United States, any state thereof or the District of Columbia and (2) assumes
all the obligations of the Company under the Notes and this Indenture pursuant
to agreements reasonably satisfactory to the Trustee;

 

(ii)                                  immediately after giving effect to such transaction, no
Default or Event of Default exists;

 

(iii)                               immediately after giving effect to such
transaction on a pro forma basis, the Company or the Person formed by or
surviving any such consolidation or merger (if other than the Company), or to
which such sale, assignment, transfer, conveyance or other disposition shall
have been made shall, on the date of such transaction after giving pro forma
effect thereto and any related financing transactions as if the same had
occurred at the beginning of the applicable two-quarter period, be permitted to
incur at least $1.00 of additional Indebtedness pursuant to the Consolidated
Leverage Ratio test set forth in Section 4.09(a);

 

(iv)                              each Guarantor, unless such Guarantor is the
Person with which the Company has entered into a transaction under this Section 5.01,
shall have by amendment to its Note Guarantee confirmed that such Note
Guarantee shall apply to the obligations of the Company or the surviving Person
in accordance with the Notes and this Indenture, and Co-Issuer Corp., unless it
is the other party to the transactions in this Section 5.01, shall have by
supplemental indenture confirmed its obligations under this Indenture and the
Notes; and

 

(v)                                 the Company delivers to the Trustee an
Officers’ Certificate (attaching the arithmetic computation to demonstrate
compliance with clause 5.01(iii)) and, if requested, an Opinion of Counsel, in
each case stating that such transaction and such agreement complies with this Section 5.01
and that all conditions precedent provided for in this Indenture relating to
such transaction have been complied with.

 

(b)                                 In addition, neither the Company nor any
Restricted Subsidiary thereof may, directly or indirectly, lease all or
substantially all of its properties or assets, in one or more related
transactions, to any other Person. Section 5.01(a)(iii)
shall not apply to any merger,

 

69

 

consolidation or sale, assignment, transfer, conveyance or
other disposition of assets between or among the Company and any of its
Restricted Subsidiaries.

 

Section 5.02.                             Successor Corporation
Substituted.

 

Upon
any consolidation or merger, or any sale, assignment, transfer, lease,
conveyance or other disposition of all or substantially all of the assets of
the Company in accordance with Section 5.01 hereof, the successor
corporation formed by such consolidation or into or with which the Company is
merged or to which such sale, assignment, transfer, conveyance or other
disposition is made shall succeed to, and be substituted for (so that from and
after the date of such consolidation, merger, sale, conveyance or other
disposition, the provisions of this Indenture referring to the “Company” shall
refer instead to the successor corporation and not to the Company), and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor Person had been named as the Company herein; provided, however,
that the predecessor Company shall not be relieved from the obligation to pay
the principal of and interest on the Notes except in the case of a sale,
assignment, transfer, conveyance or other disposition of all of the Company’s
assets that meets the requirements of Section 5.01 hereof.

 

ARTICLE SIX

DEFAULTS
AND REMEDIES

 

Section 6.01.                             Events
of Default.

 

(a)                                  Each of the following is an “Event of Default”:

 

(i)                                     default for 30 days in the payment when due of
interest on the Notes;

 

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

 

(iii)                               failure by the Company or any of its Restricted
Subsidiaries to comply with the provisions of Sections 3.08, 4.10(c), 4.14 or
5.01;

 

(iv)                              failure by the Company or any of its
Restricted Subsidiaries for 60 days after written notice by the Trustee or Holders
representing 25% or more of the aggregate principal amount of the Notes
outstanding to comply with any of the other agreements in this Indenture;

 

(v)                                 default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its
Restricted Subsidiaries (or the payment of which is Guaranteed by the Company
or any of its Restricted Subsidiaries) whether such Indebtedness or Guarantee now
exists, or is created after the date of this Indenture, if that default:

 

(A)                              is caused by a failure to make any payment
when due at the final maturity of such Indebtedness (a “Payment Default”); or

 

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(B)                                results in the acceleration of such
Indebtedness prior to its express maturity,

 

and,
in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$15.0 million or more;

 

(vi)                              failure by the Company or any of its
Restricted Subsidiaries to pay final judgments aggregating in excess of $15.0
million, which judgments are not paid, discharged or stayed for a period of 60
days after such judgment becomes final and non-appealable;

 

(vii)                           except as permitted by this Indenture, the
Note Guarantee of any Subsidiary that is not an Insignificant Subsidiary shall
be held in any judicial proceeding to be unenforceable or invalid or shall
cease for any reason to be in full force and effect or any such Guarantor, or
any Person acting on behalf of any such Guarantor, shall deny or disaffirm its
obligations under its Note Guarantee;

 

(viii)                        the Company, any Guarantor that is not an
Insignificant Subsidiary or any Significant Subsidiary of the Company (or any
Restricted Subsidiaries that together would constitute a Significant
Subsidiary) pursuant to or within the meaning of Bankruptcy Law:

 

(A)                              commences a voluntary case;

 

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

 

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

 

(D)                               generally is not paying its debts as they
become due; and

 

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

 

(A)                              is for relief against the Company, any
Guarantor that is not an Insignificant Subsidiary or any Significant Subsidiary
of the Company (or Restricted Subsidiaries that together would constitute a
Significant Subsidiary), in an involuntary case; or

 

(B)                                appoints a custodian of the Company, any
Guarantor that is not an Insignificant Subsidiary or any Significant Subsidiary
of the Company (or Restricted Subsidiaries that together would constitute a
Significant Subsidiary) or for all or substantially all of the property of the
Company, any Guarantor that is not an Insignificant Subsidiary or any of its
Restricted Subsidiaries that is a Significant Subsidiary (or Restricted Subsidiaries
that together would constitute a Significant Subsidiary); or

 

71

 

(C)                                orders the liquidation of the Company, any
Guarantor that is not an Insignificant Subsidiary or any Significant Subsidiary
of the Company (or Restricted Subsidiaries that together would constitute a
Significant Subsidiary);

 

and
the order or decree remains unstayed and in effect for 60 consecutive days.

 

Section 6.02.                            Acceleration.

 

(a)           In the case of an Event of Default specified
in clause (viii) or (ix) of Section 6.01 with respect to the Company, any
Guarantor that is not an Insignificant Subsidiary or any Significant Subsidiary
of the Company (or any Restricted Subsidiaries that together would constitute a
Significant Subsidiary), all outstanding Notes shall become due and payable
immediately without further action or notice. 
If any other Event of Default occurs and is continuing, the Trustee or
the Holders of at least 25% in principal amount of the then outstanding Notes
may declare all the Notes to be due and payable immediately.

 

(b)          In the case of any Event of Default occurring
by reason of any willful action or inaction taken or not taken by or on behalf
of the Issuers with the intention of avoiding payment of the premium that the
Issuers would have had to pay if the Issuers then had elected to redeem the
Notes pursuant Section 3.07, an equivalent premium shall also become and
be immediately due and payable to the extent permitted by law upon the
acceleration of such Notes. If an Event of Default occurs during any time that
the Notes are outstanding, by reason of any willful action (or inaction) taken
(or not taken) by or on behalf of the Issuers with the intention of avoiding
the prohibition on redemption of such Notes, then the premium specified in Section 3.07(c)
shall also become immediately due and payable to the extent permitted by law
upon the acceleration of such Notes.

 

Section 6.03.                             Other
Remedies.

 

(a)           If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal, premium, if any, and
interest on the Notes or to enforce the performance of any provision of the
Notes or this Indenture.

 

(b)          The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any
Holder of a Note in exercising any right or remedy accruing upon an Event of
Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default. 
All remedies are cumulative to the extent permitted by law.

 

Section 6.04.                             Waiver
of Past Defaults.

 

(a)           Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the
Notes waive any existing Default or Event of Default and its consequences
hereunder except a continuing Default or Event of Default in the payment of
interest on, or the principal of, the Notes; provided,
however, that the Holders of a
majority in principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that
resulted from such acceleration.

 

72

 

(b)          The Company shall deliver to the Trustee an Officers’ Certificate
stating that the requisite percentage of Holders have consented to such waiver
and attaching copies of such consents. 
In case of any such waiver, the Issuers, the Trustee and the Holders
shall be restored to their former positions and rights hereunder and under the
Notes, respectively.  This Section 6.04
shall be in lieu of Section 316(a)(1)(B) of the TIA and such Section 316(a)(1)(B)
of the TIA is hereby expressly excluded from this Indenture and the Notes, as
permitted by the TIA.  Upon any such
waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this Indenture;
but no such waiver shall extend to any subsequent or other Default or impair
any right consequent thereon.

 

(c)           In the event of a declaration of acceleration of the Notes because of
an Event of Default specified in Section 6.01(a)(v) has occurred and is
continuing, the declaration of acceleration of the Notes shall be automatically
annulled if the event of default or payment default triggering such Event of
Default pursuant to Section 6.01(a)(v) shall be remedied or cured by the
Company or a Restricted Subsidiary of the Company or waived by the holders of
the relevant Indebtedness within 20 days after the declaration of acceleration
with respect thereto and if (i) the annulment of the acceleration of such Notes
would not conflict with any judgment or decree of a court of competent jurisdiction
and (ii) all existing Events of Default, except non-payment of principal,
premium or interest on the Notes that became due solely because of the
acceleration of the Notes have been cured or waived.

 

Section 6.05.                             Control by Majority.

 

The
Holders of a majority in principal amount of the then outstanding Notes shall
have the right to direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, that may involve the
Trustee in personal liability, or that the Trustee determines in good faith may
be prejudicial to the rights of Holders of Notes not joining in the giving of
such direction and may take any other action it deems proper that is not
inconsistent with any such direction received from Holders of Notes.

 

Section 6.06.                             Limitation on Suits.

 

(a)           A Holder may not pursue any remedy with respect to this Indenture or
the Notes unless:

 

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

 

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

 

(iii)                               such Holder or Holders offer the Trustee
indemnity satisfactory to the Trustee against any costs, liability or expense;

 

(iv)                              the Trustee does not comply with the request
within 60 days after receipt of the request and the offer of indemnity; and

 

73

 

(v)                                 during such 60-day period, the Holders of a
majority in aggregate principal amount of the outstanding Notes do not give the
Trustee a direction that is inconsistent with the request.

 

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

 

Section 6.07.                             Rights of Holders of Notes to Receive Payment.

 

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

 

Section 6.08.                             Collection Suit by Trustee.

 

If
an Event of Default specified in Section 6.01(a)(i) or (a)(ii) occurs and
is continuing, the Trustee is authorized to recover judgment in its own name
and as trustee of an express trust against the Issuers for the whole amount of
principal of, premium, if any, and interest, if any, remaining unpaid on the
Notes and interest on overdue principal and premium, if any, and, to the extent
lawful, and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.09.                             Trustee May File Proofs of Claim.

 

The
Trustee is authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Notes allowed in any judicial proceedings relative to the
Issuers or any Guarantor (or any other obligor upon the Notes), its creditors
or its property and shall be entitled and empowered to collect, receive and
distribute any money or other securities or property payable or deliverable on
any such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.06.  To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel and any other amounts due the Trustee under Section 7.06 out
of the estate in any such proceeding shall be denied for any reason, payment of
the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the
Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise.  Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights

 

74

 

of
any Holder, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

Section 6.10.                             Priorities.

 

(a)           If the Trustee collects any money pursuant to this Article Six, it
shall pay out the money in the following order:

 

First:  to the Trustee, its
agents and attorneys for amounts due under Section 7.06, including payment
of all reasonable compensation, expense and liabilities incurred, and all
advances made, by the Trustee and the reasonable costs and expenses of
collection;

 

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

 

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

 

(b)          The Trustee may fix a record date and payment date for any payment to
Holders of Notes pursuant to this Section 6.10.

 

Section 6.11.                             Undertaking for Costs.

 

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

 

ARTICLE SEVEN

TRUSTEE

 

Section 7.01.                             Duties of Trustee.

 

Except
to the extent, if any, provided otherwise in the TIA:

 

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

 

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

 

75

 

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

 

(ii)                                  in the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; but in the
case of any such certificates or opinions which by any provision hereof are
specifically required to be forwarded 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 (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein).

 

(c)           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:

 

(i)                                     this paragraph shall not be construed to
limit the effect of paragraph (b) of this Section 7.01;

 

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

 

(iii)                               the Trustee shall not be liable with respect
to any action taken or omitted to be taken in good faith in accordance with the
direction of the Holders of a majority in principal amount of the outstanding
Notes 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 the Notes; and

 

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

 

(d)          Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section.

 

Section 7.02.                             Certain Rights of Trustee.

 

Subject
to the provisions of the TIA Sections 315(a) through 315(d):

 

(a)           the Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness

 

76

 

or
other paper or document (whether in its original or facsimile form) believed by
it to be genuine and to have been signed or presented by the proper party or
parties;

 

(b)          any request or direction of the Issuers mentioned herein shall be
sufficiently evidenced by a written request or order signed, with respect to
either Issuer, (i) by its Chairman, Chief Executive Officer, Chief Financial
Officer, a Vice Chairman, its President or a Vice President and (ii) by its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary and
delivered to the Trustee; provided, however,
that such written request or order may be signed by any two of the officers or
directors listed in clause (i) above in lieu of being signed by one of such
officers or directors listed in such clause (i) and one of the officers listed
in clause (ii) above and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;

 

(c)           whenever in the administration of this Indenture the Trustee shall deem
it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely
upon an Officers’ Certificate;

 

(d)          the Trustee may consult with counsel of its selection and the advice of
such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon;

 

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

 

(f)             the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Issuers, personally
or by agent or attorney at the expense of the Issuers and shall incur no
liability or additional liability of any kind by reason of such inquiry or
investigation;

 

(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 liable for any action taken, suffered, or
omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Indenture;

 

77

 

(i)              in no event shall the Trustee be responsible
or liable for special, indirect, or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of
whether the Trustee has been advised of the likelihood of such loss or damage
and regardless of the form of action;

 

(j)              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 unless written notice of any event which
is in fact such a default is received by the Trustee at the Corporate Trust
Office of the Trustee, and such notice references the Notes and this Indenture;
and

 

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

 

Section 7.03.                             Trustee’s Disclaimer.

 

The
recitals contained herein and in the Notes, except the Trustee’s certificates
of authentication, shall be taken as the statements of the Issuers, and the
Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Notes.  The Trustee shall not be accountable for the
use or application by the Issuers of Notes or the proceeds thereof, except that
the Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Notes and perform its obligations hereunder.

 

Section 7.04.                             May Hold Securities.

 

The
Trustee, any Paying Agent, Registrar or any other agent of the Issuers, in its
individual or any other capacity, may become the owner or pledgee of Notes
subject to TIA Sections 310(b) and 311, may otherwise deal with the Issuers
with the same rights it would have if it were not Trustee, Paying Agent,
Registrar or such other agent.

 

Section 7.05.                             Money Held in Trust.

 

Money
held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. 
The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Issuers.

 

Section 7.06.                             Compensation and Reimbursement.

 

The
Issuers and the Guarantors, jointly and severally, agree:

 

(a)           to pay to the Trustee from time to time such compensation as shall be
agreed to in writing between the Issuers and the Trustee for all services
rendered by it hereunder (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust);

 

78

 

(b)          except as otherwise expressly provided herein, to reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this
Indenture (including the reasonable compensation and the expenses and disbursements
of its agents and counsel), except any such expense, disbursement or advance as
shall have been caused by its negligence or willful misconduct; and

 

(c)           to indemnify each of the Trustee or any predecessor Trustee for, and to
hold it harmless against, any and all loss, damage, claim, liability or expense
including taxes (other than taxes based on the income of the Trustee) incurred
without negligence or willful misconduct on its part, arising out of or in
connection with the acceptance or administration of this trust, including the
costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder.

 

As
security for the performance of the obligations of the Issuers under this Section 7.06,
the Trustee shall have a Lien prior to the Notes upon all property and funds
held or collected by the Trustee as such, except funds held in trust for the
benefit of Holders of particular Notes.

 

When
the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 6.01(viii) or 6.01(ix), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services shall be intended to constitute expenses of
administration under any Bankruptcy Law.

 

The
provisions of this Section 7.06 shall survive the termination of this
Indenture.

 

Section 7.07.                             Eligibility; Disqualification.

 

There
shall at all times be a Trustee hereunder qualified or to be qualified under
TIA 310(a)(1) and which shall have a combined capital and surplus of at least
$50,000,000 to the extent there is such an institution eligible and willing to
serve.  If the Trustee publishes reports
of condition at least annually, pursuant to law or to the requirements of
Federal, State, Territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section 7.07, the combined
capital and surplus of the Trustee 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 the Trustee
shall cease to be eligible in accordance with the provisions of this Section 7.07,
it shall resign immediately in the manner and with the effect hereinafter specified
in this Article.

 

Section 7.08.                             Replacement of Trustee.

 

(a)           No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until
the acceptance of appointment by the successor Trustee under Section 7.09.

 

(b)          The Trustee may resign at any time by giving written notice thereof to
the Issuers.  If an instrument of
acceptance by a successor Trustee shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning
Trustee

 

79

 

may
petition at the expense of the Issuers any court of competent jurisdiction for
the appointment of a successor Trustee.

 

(c)           The Trustee may be removed at any time by an Act of Holders of a
majority in principal amount of the Notes, delivered to the Trustee and the
Issuers.  If an instrument of acceptance
by a successor Trustee shall not have been delivered to the Trustee within 30
days after the giving of such notice of removal, the removed Trustee may
petition at the expense of the Issuers any court of competent jurisdiction for
the appointment of a successor Trustee.

 

(d)          If at any time:

 

(i)                                     the Trustee shall fail to comply with the
provisions of TIA Section 310(b) after written request therefor by the
Issuers or by any Holder who has been a bona fide Holder of a Note for at least
six months; or

 

(ii)                                  the Trustee shall cease to be eligible under Section 7.07
and shall fail to resign after written request therefor by the Issuers or by
any Holder who has been a bona fide Holder of a Note for at least six months;
or

 

(iii)                               the Trustee shall become incapable of acting
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 case, (A) the Issuers by a Board Resolution may remove the Trustee, or
(B) subject to Section 6.11, the Holder of any Note who has been a bona
fide Holder of a Note 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.

 

(e)           If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any cause, the
Issuers, by a Board Resolution, shall promptly appoint a successor
Trustee.  If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee shall be appointed by the Act of Holders of a majority in
principal amount of the Notes delivered to the Issuers and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with Section 7.09, become the
successor Trustee and supersede the successor Trustee appointed by the
Issuers.  If no successor Trustee shall
have been so appointed by the Issuers or the Holders of the Notes and so
accepted appointment, the Holder of any Note who has been a bona fide Holder
for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee.

 

(f)            The Issuers shall give notice of each
resignation and each removal of the Trustee and each appointment of a successor
Trustee by mailing written notice of such event by first-class mail, postage
prepaid, to the Holders of Notes as their names and addresses appear in the
register of Notes.  Each notice shall
include the name of the successor Trustee and the address of its Corporate
Trust Office.

 

80

 

No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this
Article.

 

Section 7.09.                             Acceptance of Appointment by Successor.

 

Every
successor Trustee appointed hereunder shall execute, acknowledge and deliver to
the Issuers and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee, provided,
however, that the retiring Trustee shall continue to be entitled to
the benefit of Section 7.06(c); but, on request of the Issuers or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all
the rights, powers and trusts of the retiring Trustee, and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.  Upon
request of any such successor Trustee, the Issuers shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts.

 

Section 7.10.                             Merger, Conversion, Consolidation or
Succession to Business.

 

Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.  In case any
Notes shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Notes so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Notes.

 

Section 7.11.                             Preferential Collection of Claims Against
Issuers.

 

If
and when the Trustee shall be or become a creditor of the Issuers (or any other
obligor under the Notes), the Trustee shall be subject to the provisions of the
TIA regarding the collection of claims against the Issuers (or any such other
obligor).

 

Section 7.12.                             Trustee’s Application for Instructions from
the Issuers.

 

Any
application by the Trustee for written instructions from the Issuers may, at
the option of the Trustee, set forth in writing any action proposed to be taken
or omitted by the Trustee under this Indenture and the date on and/or after
which such action shall be taken or such omission shall be effective.  The Trustee shall not be liable for any
action taken by, or omission of, the Trustee in accordance with a proposal
included in such application on or after the date specified in such application
(which date shall not be less than three Business Days after the date any Officer
of the Issuers actually received such application) unless, with respect to any
such action (or the effective date in the case of an omission), the Trustee
shall have received written instructions in response to such application
specifying the action to be taken or omitted).

 

81

 

Section 7.13.                             Notice of Defaults.

 

Within
90 days after the occurrence of any Default, the Trustee shall transmit by mail
to all Holders, as their names and addresses appear in the register of Notes,
notice of such Default hereunder actually known to a Responsible Officer of the
Trustee, unless such default shall have been cured or waived; provided, however, that, except in the
case of a default in the payment of the principal of or interest on any Note,
the Trustee shall be protected in withholding such notice if and so long as 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.

 

ARTICLE EIGHT

DEFEASANCE
AND COVENANT DEFEASANCE

 

Section 8.01.                             Option to Effect Legal Defeasance or Covenant
Defeasance.

 

The
Issuers may, at their option and at any time, elect to have either Section 8.02
or 8.03 be applied to all outstanding Notes and Note Guarantees upon compliance
with the conditions set forth below in this Article Eight.

 

Section 8.02.                             Legal Defeasance and Discharge.

 

Upon
the Issuers’ exercise under Section 8.01 hereof of the option applicable
to this Section 8.02, the Issuers shall, subject to the satisfaction of
the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from all their obligations with respect to all outstanding Notes and
all obligations of the Guarantors shall be deemed to have been discharged with
respect to their obligations under the Note Guarantees on the date the
conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that
the Issuers and the Guarantors shall be deemed to have paid and discharged the
entire Indebtedness represented by the outstanding Notes and Note Guarantees,
respectively, which shall thereafter be deemed to be “outstanding” only for the
purposes of Section 8.05 and the other Sections of this Indenture referred
to in (a) and (b) below, and to have satisfied all their other obligations
under such Notes and this Indenture (and the Trustee, on demand of and at the
expense of the Issuers, shall execute proper instruments acknowledging the
same), except for the following provisions, which shall survive until otherwise
terminated or discharged hereunder:

 

(a)          the rights of Holders of outstanding Notes to receive solely from the
trust fund described in Section 8.04, and as more fully set forth in such
Section, payments in respect of the principal of, premium, if any, and interest
on such Notes when such payments are due;

 

(b)         the Issuers’ obligations with respect to such Notes under Article Two
concerning issuing temporary Notes, registration of Notes and mutilated,
destroyed, lost or stolen Notes and the Issuers’ obligations under Section 4.02;

 

(c)          the rights, powers, trusts, duties and immunities of the Trustee
hereunder and the Issuers’ and the Guarantors’ obligations in connection
therewith and

 

82

 

(d)         this Section 8.02.

 

Subject
to compliance with this Article Eight, the Issuers may exercise their
option under this Section 8.02 notwithstanding the prior exercise of their
option under Section 8.03 hereof.

 

Section 8.03.                             Covenant Defeasance.

 

Upon
the Issuers’ exercise under Section 8.01 hereof of the option applicable
to this Section 8.03, the Issuers and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be released
from their obligations under the covenants contained in Sections 4.07, 4.08,
4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.16, 4.17, 4.18, 4.20, 5.01 and 10.04 with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and neither the Notes nor the Note
Guarantees shall thereafter be deemed “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes).  For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, the Issuers and
the Guarantors may omit to comply with and shall have no liability in respect
of any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 6.01, but,
except as specified above, the remainder of this Indenture and such Notes shall
be unaffected thereby.  In addition, upon
the Issuers’ exercise under Section 8.01 of the option applicable to this Section 8.03,
subject to the satisfaction of the conditions set forth in Section 8.04,
Sections 6.01(a)(iii) through (vii) shall not constitute Events of Default.

 

Section 8.04.                             Conditions to Legal or Covenant Defeasance.

 

(a)          The following shall be the conditions to the application of either Section 8.02
or 8.03 to the outstanding Notes:

 

(i)                                     the Issuers must irrevocably deposit with the
Trustee, in trust, for the benefit of the Holders of the Notes, cash in U.S.
dollars, non-callable Government Securities, or a combination thereof, in such
amounts as shall be sufficient, in the opinion of a nationally recognized firm
of independent public accountants, to pay the principal of, or interest and
premium, if any, on the Notes on the Stated Maturity or on the applicable
redemption date, as the case may be, and the Issuers must specify whether the
Notes are being defeased to maturity or to a particular redemption date;

 

(ii)                                  in the case of Legal Defeasance, the Issuers
shall have delivered to the Trustee an Opinion of Counsel confirming that (a)
the Issuers have received from, or there has been published by, the Internal
Revenue Service a ruling or (b) since the date of this Indenture, there has
been a change in the applicable federal income tax law, in either case to the
effect that, and based thereon such Opinion of Counsel shall confirm that, the
Holders of the outstanding Notes shall not recognize income, gain or loss for
federal

 

83

 

income
tax purposes as a result of such Legal Defeasance and shall be subject to
federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

 

(iii)                               in the case of Covenant Defeasance, the
Issuers shall have delivered to the Trustee an Opinion of Counsel confirming
that the Holders of the outstanding Notes shall not recognize income, gain or
loss for federal income tax purposes as a result of such Covenant Defeasance
and shall be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;

 

(iv)                              no Default or Event of Default shall have
occurred and be continuing either:  (a)
on the date of such deposit; or (b) insofar as Events of Default from
bankruptcy or insolvency events are concerned, at any time in the period ending
on the 123rd day after the date of deposit;

 

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

 

(vi)                              the Issuers must have delivered to the
Trustee an Opinion of Counsel to the effect that, (1) assuming no intervening
bankruptcy of the Issuers or any Guarantor between the date of deposit and the
123rd day following the deposit and assuming that no Holder is an “insider” of
the Issuers under applicable bankruptcy law, after the 123rd day following the
deposit, the trust funds shall not be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors’
rights generally, including Section 547 of the United States Bankruptcy
Code and (2) the creation of the defeasance trust does not violate the
Investment Company Act of 1940;

 

(vii)                           the Issuers must deliver to the Trustee an
Officers’ Certificate stating that the deposit was not made by the Issuers with
the intent of preferring the Holders of the Notes over the other creditors of
the Issuers with the intent of defeating, hindering, delaying or defrauding
creditors of the Issuers or others;

 

(viii)                        if the Notes are to be redeemed prior to
their Stated Maturity, the Issuers must deliver to the Trustee irrevocable
instructions to redeem all of the Notes on the specified redemption date; and

 

(ix)                                the Issuers must deliver to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

 

Section 8.05.                             Deposited Money and Government Securities to
Be Held in Trust; Other Miscellaneous Provisions.

 

(a)          Subject to Section 8.06, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee pursuant
to Section 8.04 in respect of

 

84

 

the
outstanding Notes shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Issuers
acting as Paying Agent) as the Trustee may determine, to the Holders of such
Notes of all sums due and to become due thereon in respect of principal and
premium, if any, and interest, but such money need not be segregated from other
funds except to the extent required by law.

 

(b)         The Issuers shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

 

(c)          Anything in this Article Eight to the contrary notwithstanding,
the Trustee shall deliver or pay to the Issuers from time to time upon the
request of the Issuers any money or non-callable Government Securities held by
it as provided in Section 8.04 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 8.04(a)), are in excess of the amount thereof that
would then be required to be deposited to effect an equivalent Legal Defeasance
or Covenant Defeasance.

 

Section 8.06.                             Reinstatement.

 

If
the Trustee or Paying Agent is unable to apply any United States dollars or
non-callable Government Securities in accordance with Section 8.02 or
8.03, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Issuers’ obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02
or 8.03 and, in the case of a Legal Defeasance, the Guarantors’ obligations
under their respective Note Guarantees shall be revised and reinstated as
though no deposit had occurred pursuant to Section 8.02, in each case
until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 8.02 or 8.03, as the case may be; provided, however,
that, if the Issuers make any payment of principal of, premium, if any, or
interest on any Note following the reinstatement of their obligations, the
Issuers shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE NINE

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01.                             Without Consent of Holders of Notes.

 

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

 

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

 

85

 

(ii)                                  to provide for uncertificated Notes in
addition to or in place of Certificated Notes;

 

(iii)                               to provide for the assumption of the Issuers’
or any Guarantor’s obligations to Holders of Notes in the case of a merger or
consolidation or sale of all or substantially all of the Issuers’ or such
Guarantor’s assets;

 

(iv)                              to make any change that would provide any
additional rights or benefits to the Holders of Notes (including additional
Note Guarantees or Liens securing the Notes) or that does not materially
adversely affect the rights under this Indenture of any such Holder;

 

(v)                                 to comply with the provisions of Section 4.18;

 

(vi)                              to evidence and provide for the acceptance of
appointment by a successor Trustee; or

 

(vii)                           to provide for the issuance of Additional
Notes in accordance with this Indenture.

 

Upon
the request of the Issuers authorizing the execution of any such amended or
supplemental Indenture, the Trustee shall join with the Issuers in the
execution of any amended or supplemental Indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental Indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

 

Section 9.02.                             With Consent of Holders of Notes.

 

(a)          Except as otherwise provided in this Section 9.02, the Issuers,
the Guarantors and the Trustee may amend or supplement this Indenture, the
Notes or the Notes Guarantees with the consent of the Holders of at least a
majority in principal amount of the Notes then outstanding (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, the Notes), and, subject to Sections 6.04 and 6.07, any
existing Default or Event of Default or compliance with any provision of this
Indenture or the Notes or the Notes Guarantees may be waived with the consent
of the Holders of a majority in principal amount of the then outstanding Notes
(including Additional Notes, if any) (including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer
for, Notes).

 

(b)         The Issuers may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to consent to any indenture
supplemental hereto.  If a record date is
fixed, the Holders on such record date, or its duly designated proxies, and
only such Persons, shall be entitled to consent to such supplemental indenture,
whether or not such Holders remain Holders after such record date; provided that unless such consent shall
have become effective by virtue of the requisite percentage having been
obtained prior to the date which is 90 days after such record date, any such
consent previously given shall automatically and without further action by any
Holder be cancelled and of no further effect.

 

86

 

(c)          Upon the request of the Issuers authorizing the execution of any such
amendment or supplement to this Indenture, and upon the filing with the Trustee
of evidence satisfactory to the Trustee of the consent of the Holders of Notes
as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02,
the Trustee shall join with the Issuers in the execution of such amendment or
supplement unless such amendment or supplement directly affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such amendment or supplement.

 

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

 

(e)          After an amendment, supplement or waiver under this Section becomes
effective, the Issuers shall mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver.  Any failure of the Issuers to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such amendment, supplement or waiver.  Subject to Sections 6.04 and 6.07, the
Holders of a majority in aggregate principal amount of the then outstanding
Notes (including Additional Notes, if any) may waive compliance in a particular
instance by the Issuers with any provision of this Indenture, or the
Notes.  However, without the consent of
each Holder affected, an amendment or waiver under this Section 9.02 may
not (with respect to any Notes held by a non-consenting Holder):

 

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

 

(ii)                                  reduce the principal of or change the fixed
maturity of the Notes or alter the provisions, or waive any payment, with
respect to the redemption of the Notes to the extent such alteration or waiver
reduces the principal amount or premium payable upon redemption of the Notes or
changes the date on which the Notes may be redeemed;

 

(iii)                               reduce the rate of or change the time for
payment of interest on the Notes;

 

(iv)                              waive a Default or Event of Default in the
payment of principal of, or interest, or premium, if any, on, the Notes (except
a rescission of acceleration of the Notes by the Holders of at least a majority
in aggregate principal amount of the Notes and a waiver of the payment default
that resulted from such acceleration);

 

(v)                                 make the Notes payable in money other than
U.S. dollars;

 

(vi)                              make any change in the provisions of this
Indenture relating to waivers of past Defaults or the rights of Holders of the
Notes to receive payments of principal of, or interest or premium, if any, on
the Notes;

 

(vii)                           release any Guarantor from any of its
obligations under its Note Guarantee or this Indenture, except in accordance
with the terms of this Indenture;

 

87

 

(viii)                        impair the right to institute suit for the
enforcement of any payment on or with respect to the Notes or the Note
Guarantees;

 

(ix)                                amend, change or modify the obligation of the
Company to make and consummate an Asset Sale Offer with respect to any Asset
Sale in accordance with Section 4.10(c) after the obligation to make such
Asset Sale Offer has arisen, or the obligation of the Issuers to make and
consummate a Change of Control Offer in the event of a Change of Control in
accordance with Section 4.14 after such Change of Control has occurred,
including, in each case, amending, changing or modifying any definition
relating thereto;

 

(x)                                   except as otherwise permitted under Sections
4.18 and 5.01, consent to the assignment or transfer by the Issuers or any
Guarantor of any of their rights or obligations under this Indenture;

 

(xi)                                amend or modify any of the provisions of this
Indenture or the related definitions affecting the ranking of the Notes or any
Note Guarantee in any manner adverse to the holders of the Notes or Note
Guarantee; or

 

(xii)                             make any change in the preceding amendment
and waiver provisions.

 

Section 9.03.                             Compliance with Trust Indenture Act.

 

Every
amendment or supplement to this Indenture or the Notes shall be set forth in a
document that complies with the TIA as then in effect.

 

Section 9.04.                             Revocation and Effect of Consents.

 

Until
an amendment, supplement or waiver becomes effective, a consent to it by a
Holder of a Note is a continuing consent by the Holder of a Note and every
subsequent Holder of a Note or portion of a Note that evidences the same debt
as the consenting Holder’s Note, even if notation of the consent is not made on
any Note.  However, any such Holder of a
Note or subsequent Holder of a Note may revoke the consent as to its Note if
the Trustee receives written notice of revocation before the date the waiver,
supplement or amendment becomes effective. 
An amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder.

 

Section 9.05.                             Notation on or Exchange of Notes.

 

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

 

(b)         Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

 

88

 

Section 9.06.                             Trustee to Sign Amendments, Etc.

 

The
Trustee shall sign any amendment or supplement to this Indenture or any Note
authorized pursuant to this Article Nine if the amendment or supplement
does not adversely affect the rights, duties, liabilities or immunities of the
Trustee.  The Issuers may not sign an
amendment or supplemental Indenture or Note until the Board of Directors of the
Company approves it.  In executing any
amendment or supplement or Note, the Trustee shall be provided with and
(subject to Section 7.01) shall be fully protected in relying upon an
Officers’ Certificate and an Opinion of Counsel stating that the execution of
such amendment or supplement is authorized or permitted by this Indenture.

 

ARTICLE TEN

NOTE
GUARANTEES

 

Section 10.01.                       Guarantee.

 

(a)          Subject to this Article Ten, each of the Guarantors hereby,
jointly and severally, and fully and unconditionally, guarantees to each Holder
of a Note authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of,
this Indenture, the Notes or the obligations of the Issuers hereunder or
thereunder, that:  (i) the principal of,
premium, if any, and interest on the Notes shall be promptly paid in full when
due, whether at maturity, by acceleration, redemption or otherwise, and
interest on the overdue principal of, premium, if any, and interest on the
Notes, if lawful (subject in all cases to any applicable grace period provided
herein), and all other obligations of the Issuers to the Holders or the Trustee
hereunder or thereunder shall be promptly paid in full, all in accordance with
the terms hereof and thereof; and (ii) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, the same
shall be promptly paid in full when due in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or
otherwise.  Failing payment when due of
any amount so guaranteed for whatever reason, the Guarantors shall be jointly
and severally obligated to pay the same immediately.  Each Guarantor agrees that this is a
guarantee of payment and not a guarantee of collection.

 

(b)         The Guarantors hereby agree that, to the maximum extent permitted under
applicable law, their obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Issuers, any action to enforce the
same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a Guarantor. 
Subject to Section 6.06, each Guarantor hereby waives diligence, presentment,
demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Issuers, any right to require a proceeding first against the
Issuers, protest, notice and all demands whatsoever and covenants that this
Note Guarantee shall not be discharged except by complete performance of the
obligations contained in the Notes and this Indenture.

 

89

 

(c)          If any Holder or the Trustee is required by any court or otherwise to
return to the Issuers, the Guarantors or any custodian, trustee, liquidator or
other similar official acting in relation to any of the Issuers or the
Guarantors, any amount paid by any of them to the Trustee or such Holder, this
Note Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect.

 

(d)         Each Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby.  Each Guarantor further agrees that, as
between the Guarantors, on the one hand, and the Holders and the Trustee, on
the other hand, (i) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article Six for the purposes of this Note
Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (ii) in
the event of any declaration of acceleration of such obligations as provided in
Article Six hereof, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Guarantors for the purpose of
this Note Guarantee.  The Guarantors
shall have the right to seek contribution from any non-paying Guarantor so long
as the exercise of such right does not impair the rights of the Holders under
the Note Guarantee.

 

Section 10.02.                       Limitation on Guarantor Liability.

 

Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Note Guarantee of such Guarantor
not constitute (i) a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal, state or foreign law to the extent
applicable to its Note Guarantee or (ii) an unlawful distribution under any
applicable state law prohibiting shareholder distributions by an insolvent
subsidiary to the extent applicable to its Note Guarantee.  To effectuate the foregoing intention, the
Trustee, the Holders and the Guarantors hereby irrevocably agree that the
obligations of such Guarantor shall be limited to the maximum amount as shall,
after giving effect to all other contingent and fixed liabilities of such
Guarantor that are relevant under such laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other Guarantor
under its Note Guarantee or this Article Ten, result in the obligations of
such Guarantor under its Note Guarantee not constituting a fraudulent transfer
or conveyance or such an unlawful shareholder distribution.

 

Section 10.03.                       Execution and Delivery of Note Guarantee.

 

(a)          To evidence its Note Guarantee set forth in Section 10.01, each
Guarantor hereby agrees that a notation of such Note Guarantee substantially in
the form included in Exhibit E shall be endorsed by an Officer of such
Guarantor by manual or facsimile signature on each Note authenticated and
delivered by the Trustee and that this Indenture shall be executed on behalf of
such Guarantor by one of its Officers.

 

(b)         Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01
shall remain in full force and effect notwithstanding any failure to endorse on
each Note a notation of such Note Guarantee.

 

90

 

(c)          If an Officer whose signature is on this Indenture or on the Note Guarantee
no longer holds that office at the time the Trustee authenticates the Note on
which a Note Guarantee is endorsed, the Note Guarantee shall be valid
nevertheless.

 

(d)         The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Note Guarantee set
forth in this Indenture on behalf of the Guarantors.

 

(e)          If required by Section 4.18, the Company shall cause such
Subsidiaries to execute supplemental indentures to this Indenture and Note
Guarantees in accordance with Section 4.18 and this Article Ten, to
the extent applicable.

 

Section 10.04.                       Guarantors May Consolidate, Etc., on Certain
Terms.

 

(a)          A Guarantor may not sell or otherwise dispose of all or substantially
all of its assets to, or consolidate with or merge with or into (whether or not
such Guarantor is the surviving Person), another Person, other than the Company
or another Guarantor, unless:

 

(i)                                     immediately after giving effect to that
transaction, no Default or Event of Default exists; and

 

(ii)                                  either:

 

(A)                              the Person acquiring the property in any such
sale or disposition or the Person formed by or surviving any such consolidation
or merger (if other than the Guarantor) is organized or existing under the laws
of the United States, any state thereof or the District of Columbia and assumes
all the obligations of that Guarantor under this Indenture and its Note
Guarantee pursuant to a supplemental indenture satisfactory to the Trustee; or

 

(B)                                such sale or other disposition or consolidation
or merger complies with Section 4.10.

 

(b)         In case of any such consolidation, merger, sale or conveyance and upon
the assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the Note
Guarantee endorsed upon the Notes and the due and punctual performance of all
of the covenants and conditions of this Indenture to be performed by a
Guarantor, such successor Person shall succeed to and be substituted for a
Guarantor with the same effect as if it had been named herein as a
Guarantor.  Such successor Person
thereupon may cause to be signed any or all of the Note Guarantees to be
endorsed upon all of the Notes issuable hereunder which theretofore shall not
have been signed by the Issuers and delivered to the Trustee.  All the Note Guarantees so issued shall in
all respects have the same legal rank and benefit under this Indenture as the
Note Guarantees theretofore and thereafter issued in accordance with the terms
of this Indenture as though all of such Note Guarantees had been issued at the
date of the execution hereof.

 

(c)          Except as set forth in Article Five, and notwithstanding clauses
(i) and (ii) of Section 10.04(a), nothing contained in this Indenture or
in any of the Notes shall prevent any

 

91

 

consolidation
or merger of a Guarantor with or into the Company or another Guarantor, or
shall prevent any sale or conveyance of the property of a Guarantor as an
entirety or substantially as an entirety to the Company or another Guarantor.

 

Section 10.05.                       Release of Guarantor.

 

Any
Guarantor shall be released and relieved of any obligations under its Note
Guarantee;

 

(a)                                  in connection with any sale or other
disposition of all of the Capital Stock of that Guarantor to a Person that is
not (either before or after giving effect to such transaction) a Restricted
Subsidiary of the Company, if the sale of all such Capital Stock of that
Guarantor complies with Section 4.10;

 

(b)                                 if the Company properly designates any
Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary under
this Indenture; or

 

(c)                                  upon the release or discharge of the
Guarantee (including the Guarantee under the Credit Agreement) which resulted
in the creation of such Note Guarantee pursuant to Section 4.18 (except a
discharge or release by or as a result of payment under such Guarantee); provided that such Guarantor does not have
any Preferred Stock outstanding at such time that is not held by the Company or
any Guarantor.

 

Upon
delivery by the Company to the Trustee of an Officers’ Certificate and an
Opinion of Counsel to the effect that one of the foregoing requirements has
been satisfied and the conditions to the release of a Guarantor under this Section 10.05
have been met, the Trustee shall execute any documents reasonably required in
order to evidence the release of such Guarantor from its obligations under its
Note Guarantee.

 

ARTICLE ELEVEN

SATISFACTION
AND DISCHARGE

 

Section 11.01.                       Satisfaction and Discharge.

 

(a)          This Indenture shall be discharged and shall
cease to be of further effect as to all Notes issued hereunder, when:

 

(i)                                     either:

 

(A)                              all Notes that have been authenticated under
this Indenture (except lost, stolen or destroyed Notes that have been replaced
or paid and Notes for whose payment money has theretofore been deposited in
trust and thereafter repaid to the Issuers) have been delivered to the Trustee
for cancellation; or

 

(B)                                all Notes that have not been delivered to the
Trustee for cancellation have become due and payable by reason of the making of
a notice of redemption or otherwise or shall become due and payable within one
year and the Issuers or any Guarantor have irrevocably deposited or caused to
be deposited

 

92

 

with
the Trustee as trust funds in trust solely for the benefit of the Holders of
the Notes, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as shall be sufficient without
consideration of any reinvestment of interest, to pay and discharge the entire
indebtedness on the Notes not delivered to the Trustee for cancellation for
principal, premium, if any, and accrued interest to the date of maturity or
redemption;

 

(ii)                                  no Default or Event of Default shall have
occurred and be continuing on the date of such deposit or shall occur as a
result of such deposit and such deposit shall not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Issuers or any Guarantor are a party or by which the Issuers or any Guarantor
are bound;

 

(iii)                               the Issuers or any Guarantor have paid or
caused to be paid all sums payable by them under this Indenture; and

 

(iv)                              the Issuers have delivered irrevocable
instructions to the Trustee under this Indenture to apply the deposited money
toward the payment of the Notes at maturity or the redemption date, as the case
may be.

 

(b)         The Issuers must deliver an Officers’
Certificate and an Opinion of Counsel to the Trustee stating that all
conditions precedent to satisfaction and discharge have been satisfied.

 

(c)          Notwithstanding the above, the Trustee shall
pay to the Issuers or any Guarantor from time to time upon their request any
cash or Government Securities held by it as provided in this section which,
in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification delivered to the Trustee, are
in excess of the amount thereof that would then be required to be deposited to
effect a satisfaction and discharge under this Article Eleven.

 

(d)         After the conditions to discharge contained
in this Article Eleven have been satisfied, the Trustee upon written
request shall acknowledge in writing the discharge of the obligations of the
Issuers and the Guarantors under this Indenture (except for those surviving
obligations specified Section 11.01).

 

Section 11.02.                       Deposited Money and Government Securities to
Be Held in Trust; Other Miscellaneous Provisions.

 

Subject
to Section 11.03 hereof, all money and non-callable Government Securities
(including the proceeds thereof) deposited with the Trustee pursuant to Section 11.01
hereof in respect of the outstanding Notes shall be held in trust and applied
by the Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including either of the Issuers acting as Paying Agent) as the Trustee may
determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium and interest, but such money need not
be segregated from other funds except to the extent required by law.

 

93

 

Section 11.03.                       Repayment to the Issuers.

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Issuers, in trust for the payment of the principal of, premium, if any, or
interest on any Note and remaining unclaimed for two years after such
principal, and premium, if any, or interest has become due and payable shall be
paid to the Issuers on their request or (if then held by the Issuers) shall be
discharged from such trust; and the Holder of such Note shall thereafter look
only to the Issuers for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Issuers as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Issuers cause to be published once, in the
New York Times or The Wall Street Journal (national edition), notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining shall be repaid to the Issuers.

 

ARTICLE TWELVE

[INTENTIONALLY
OMITTED]

 

ARTICLE THIRTEEN

MISCELLANEOUS

 

Section 13.01.                       Trust Indenture Act Controls.

 

If
any provision of this Indenture limits, qualifies or conflicts with the duties
imposed by TIA Section 318(c), the imposed duties shall control.

 

Section 13.02.                       Notices.

 

(a)          Any notice or communication by the Issuers or
any Guarantor, on the one hand, or the Trustee on the other hand, to the other
is duly given if in writing and delivered in Person or mailed by first class
mail (registered or certified, return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the others’ address:

 

If
to the Issuers and/or any Guarantor:

 

Rainbow National Services LLC

200 Jericho Quadrangle

Jericho, NY 11753

Facsimile:  516-803-3003

Attention:  Joshua W. Sapan

 

And to:

 

Rainbow National Services LLC

200 Jericho Quadrangle

 

94

 

Jericho, NY 11753

Facsimile:  516-803-3003

Attention:  Chief Financial
Officer

 

If
to the Trustee:

 

The
Bank of New York

101
Barclay Street, 8W

New
York, NY 10286

Facsimile:
212-815-5707

Attention:
Corporate Trust Administration

 

(b)         The Issuers, the Guarantors or the Trustee,
by notice to the others may designate additional or different addresses for
subsequent notices or communications.

 

(c)          All notices and communications (other than
those sent to Holders) shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; three Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery.

 

(d)         Any notice or communication to a Holder shall
be mailed by first class mail, certified or registered, return receipt
requested, or by overnight air courier guaranteeing next day delivery to its
address shown on the register kept by the Registrar.  Any notice or communication shall also be so
mailed to any Person described in TIA Section 313(c), to the extent
required by the TIA.  Failure to mail a
notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. 
Any notice when mailed to a Holder in the aforesaid manner shall be
conclusively deemed to have been received by such Holder whether or not actually
received by such Holder.

 

(e)          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 on
such waiver.

 

(f)            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 the
approval of the Trustee shall constitute a sufficient notification for every
purpose hereunder.

 

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

 

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

 

95

 

Section 13.03.                       Communication by Holders of Notes with Other
Holders of Notes.

 

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

 

Section 13.04.                       Certificate and Opinion as to Conditions
Precedent.

 

Upon
any request or application by the Issuers to the Trustee to take any action
under this Indenture, the Issuers shall furnish to the Trustee if requested:

 

(i)                                     an Officers’ Certificate (which shall include
the statements set forth in Section 13.05 hereof) stating that, in the
opinion of the signers, all conditions precedent and covenants, if any,
provided for in this Indenture relating to the proposed action have been
satisfied; and

 

(ii)                                  an Opinion of Counsel (which shall include
the statements set forth in Section 13.05 hereof) stating that, in the
opinion of such counsel (who may rely upon an Officers’ Certificate as to
matters of fact), all such conditions precedent and covenants have been
satisfied;

 

except
that, in the case of such request or application as to which the furnishing of
such documents is specifically required by any provision of this Indenture relating
to such particular request or application, no additional certificate or opinion
need be furnished.

 

Section 13.05.                       Statements Required in Certificate or Opinion.

 

(a)          Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (other
than a certificate provided pursuant to TIA Section 314(a)(4)) shall
comply with the provisions of TIA Section 314(e) and shall include:

 

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

 

(ii)                                  a brief statement as to the nature and scope
of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;

 

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

 

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

 

96

 

Section 13.06.                       Rules by Trustee and Agents.

 

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

 

Section 13.07.                       No Personal Liability of Directors, Officers,
Employees and Stockholders.

 

No
director, officer, employee, incorporator, member, manager, partner or
stockholder of either Issuer or of any Guarantor, as such, shall have any
liability for any obligations of the Issuers or the Guarantors under the Notes,
this Indenture, the Note Guarantees or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes.

 

Section 13.08.                       Governing Law.

 

THE
LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
INDENTURE, THE NOTES AND THE NOTE GUARANTEES.

 

Section 13.09.                       Consent to Jurisdiction.

 

Any
legal suit, action or proceeding arising out of or based upon this Indenture or
the transactions contemplated hereby (“Related
Proceedings”) may be instituted in the federal courts of the United
States of America located in the City of New York or the courts of the State of
New York in each case located in the City of New York (collectively, the “Specified Courts”), and each party and each
Holder by accepting the Notes irrevocably submits to the non-exclusive
jurisdiction of such courts in any such suit, action or proceeding.  Service of any process, summons, notice or
document by mail (to the extent allowed under any applicable statute or rule of
court) to such party’s address set forth above shall be effective service of
process for any suit, action or other proceeding brought in any such
court.  The parties and each Holder by
accepting the Notes irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts
and irrevocably and unconditionally waive and agree not to plead or claim in
any such court has been brought in an inconvenient forum.

 

Section 13.10.                       Form of Documents Delivered to Trustee.

 

In
any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

 

Any
certificate or opinion of an officer of the Issuers or Guarantors may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the

 

97

 

certificate
or opinion or representations with respect to the matters upon which his
certificate or opinion is based are erroneous. 
Any such certificate or opinion, including any Officers’ Certificate or
Opinion of Counsel, may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representation by, an officer or officers
of an Issuer or Guarantor stating that the information with respect to such
factual matters is in the possession of the Issuer or Guarantor, as applicable,
unless such counsel knows, or in the exercise of reasonable care should show,
that the certificate or opinion or representations with respect to such matters
are erroneous.

 

Section 13.11.                       Successors.

 

All
agreements of the Issuers in this Indenture and the Notes shall bind any of
their successors.  All agreements of the
Trustee in this Indenture shall bind its successors.  All agreements of each Guarantor in this
Indenture shall bind such Guarantor’s successors, except as otherwise provided
in Section 10.04.

 

Section 13.12.                       Severability.

 

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

 

Section 13.13.                       Counterpart Originals.

 

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

 

Section 13.14.                       Acts of Holders.

 

(a)          Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by the Holders may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such Holders in
person or by agents duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Issuers.  Such
instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as the “Act”
of the Holders signing such instrument or instruments.  Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and conclusive in favor of the Trustee and the Issuers if made
in the manner provided in this Section 13.14.

 

(b)         The fact and date of the execution by any
Person of any such instrument or writing may be proved by the affidavit of a
witness of such execution or by a certificate of a notary public or other officer
authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to such witness,
notary or officer the execution thereof. 
Where such execution is by a signer acting in a capacity other than his
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of authority.  The fact
and date of the execution of any such instrument or writing, or the authority

 

98

 

of
the Person executing the same, may also be proved in any other manner which the
Trustee deems sufficient.

 

(c)          Notwithstanding anything to the contrary
contained in this Section 13.14, the principal amount and serial numbers
of Notes held by any Holder, and the date of holding the same, shall be proved
by the register of the Notes maintained by the Registrar as provided in Section 2.04.

 

(d)         If the Issuers shall solicit from the Holders
of the Notes any request, demand, authorization, direction, notice, consent,
waiver or other Act, the Issuers may, at their option, by or pursuant to a
resolution of the Board of Directors of the Company, fix in advance a record
date for the determination of Holders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act, but the Issuers
shall have no obligation to do so. 
Notwithstanding TIA Section 316(c), such record date shall be the
record date specified in or pursuant to such resolution, which shall be a date
not earlier than the date 30 days prior to the first solicitation of Holders
generally in connection therewith or the date of the most recent list of
Holders forwarded to the Trustee prior to such solicitation pursuant to Section 2.06
and not later than the date such solicitation is completed.  If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of the then
outstanding Notes have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the then outstanding Notes shall be computed as of such record
date; provided that no such
authorization, agreement or consent by the Holders on such record date shall be
deemed effective unless it shall become effective pursuant to the provisions of
this Indenture not later than eleven months after the record date.

 

(e)          Any request, demand, authorization,
direction, notice, consent, waiver or other Act of the Holder of any Note shall
bind every future Holder of the same Note and the Holder of every Note issued
upon the registration or transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the
Trustee, the Paying Agent or the Issuers in reliance thereon, whether or not
notation of such action is made upon such Note.

 

(f)            Without limiting the foregoing, a Holder
entitled hereunder to take any action hereunder with regard to any particular
Note may do so itself with regard to all or any part of the principal amount of
such Note.

 

Section 13.15.                       Benefit of Indenture.

 

Nothing
in this Indenture, the Notes or the Note Guarantees, express or implied, shall
give to any Person, other than the parties hereto and their successors
hereunder, any Paying Agent, any Registrar and the Holders, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

 

99

 

Section 13.16.                       Table of Contents, Headings, Etc.

 

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

 

[SIGNATURE PAGES FOLLOW]

 

100

 

IN
WITNESS WHEREOF, the parties have executed this Indenture as of August       ,
2004.

 

	
   

  	
  RAINBOW
  NATIONAL SERVICES LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RNS
  CO-ISSUER CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN
  MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE
  INDEPENDENT FILM CHANNEL LLC

  
	
   

  	
  By:
  RAINBOW NATIONAL SERVICES LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN
  MOVIE CLASSICS IV HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

S-1

 

	
   

  	
  AMC
  PRODUCTIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WE:
  WOMEN’S ENTERTAINMENT PRODUCTIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IFC
  PROGRAMMING, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMC
  FILM HOLDINGS LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMC
  MOVIE COMPANION LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

S-2

 

	
   

  	
  AMC
  NEW MEDIA LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MONSTERS
  VOD SERVICES LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WE:
  WOMEN’S ENTERTAINMENT LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WE
  NEW MEDIA LLC

  
	
   

  	
  By:
  WE: WOMEN’S ENTERTAINMENT LLC

  
	
   

  	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-3

 

	
   

  	
  IFC
  DIGITAL MEDIA LLC

  
	
   

  	
  By:
  THE INDEPENDENT FILM CHANNEL LLC

  
	
   

  	
   

  	
  By:
  RAINBOW NATIONAL SERVICES LLC

  	 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IFC
  VOD SERVICES LLC

  
	
   

  	
  By:
  THE INDEPENDENT FILM CHANNEL LLC

  	
   

  
	
   

  	
   

  	
  By:
  RAINBOW NATIONAL SERVICES LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-4

 

	
   

  	
  THE
  BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-5

 

EXHIBIT A

 

[Face of Note]

 

THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE INDENTURE,
(III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
ISSUERS.

 

THIS
NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS.  NEITHER THIS NOTE NOR
THE GUARANTEES ENDORSED HEREON NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.  THE HOLDER OF THIS NOTE AND THE
GUARANTEES ENDORSED HEREON, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER
THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
ISSUERS OR ANY AFFILIATE OF THE ISSUERS WERE THE OWNER OF THIS NOTE AND THE
GUARANTEES ENDORSED HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES
ENDORSED HEREON) (THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO THE
COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES AND GUARANTEES
ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)
TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO
NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUERS’ AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
(I) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40 DAY DISTRIBUTION
COMPLIANCE PERIOD WITHIN THE

 

A-1

 

MEANING
OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE
RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM,
AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF
TRANSFER IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE.  THIS LEGEND
WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE.

 

[Additional
language for Regulation S Note to be inserted after paragraph 1]

 

THE
RIGHTS ATTACHING TO THIS REGULATION S GLOBAL NOTE, AND THE CONDITIONS AND
PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN
THE INDENTURE (AS DEFINED HEREIN).

 

A-2

 

CUSIP

 

	
  No.

  	
   

  	
  **$

  	
                    

  	
  **

  

 

RAINBOW NATIONAL SERVICES LLC

RNS CO-ISSUER CORPORATION

 

83⁄4% SENIOR NOTES DUE 2012

 

Issue
Date:

 

Rainbow
National Services LLC, a Delaware limited liability company (the “Company”), and RNS Co-Issuer Corporation, a
Delaware corporation (the “Co-Issuer Corp.”
and, together with the Company, the “Issuers,”
which term includes any successor under the Indenture hereinafter referred to),
for value received, promises to pay to CEDE & CO., or its registered
assigns, the principal sum of $300,000,000 on September 1, 2012.

 

Interest
Payment Dates:  March 1 and September 1,
commencing March 1, 2005.

 

Record
Dates:  February 15 and August 15.

 

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

 

[SIGNATURE PAGE FOLLOWS]

 

 

[Attach Notation
of Guarantee for Guarantors]

 

A-3

 

IN
WITNESS WHEREOF, the Issuers have caused this Note to be signed manually or by
facsimile by its duly authorized officer.

 

	
   

  	
  RAINBOW
  NATIONAL SERVICES LLC, a

  Delaware limited liability company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RNS
  CO-ISSUER CORPORATION, a Delaware

  corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

A-4

 

(Trustee’s Certificate of Authentication)

 

This
is one of the 83⁄4% Senior Notes due 2012 described in the within-mentioned
Indenture.

 

	
  Dated:
  August 20, 2004

  
	
   

  
	
   

  
	
  THE
  BANK OF NEW YORK,

  
	
  as
  Trustee

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

A-5

 

[Reverse Side of Note]

 

RAINBOW NATIONAL SERVICES LLC

RNS CO-ISSUER CORPORATION

 

83⁄4% SENIOR NOTES DUE 2012

 

Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

 

1.                                       Interest.  The
Issuers promise to pay interest on the principal amount of this Note at 83⁄4% per
annum from the date hereof until maturity. 
The Issuers shall pay interest semi-annually in arrears on March 1
and September 1 of each year, or if any such day is not a Business Day, on
the next succeeding Business Day (each an “Interest
Payment Date”).  Interest on
the Notes shall accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from the date of original issuance; provided that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided  further that the first Interest Payment
Date shall be March 1, 2005.  The
Issuers shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal from time to time on demand at
the same rate; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest (without
regard to any applicable grace periods) from time to time on demand at the same
rate to the extent lawful.  Interest shall
be computed on the basis of a 360-day year of twelve 30-day months.

 

2.                                       Method of Payment.  The
Issuers shall pay interest on the Notes (except defaulted interest) to the
Persons who are registered Holders of Notes at the close of business on the
record date immediately preceding the Interest Payment Date, even if such Notes
are canceled after such record date and on or before such Interest Payment
Date, except as provided in Section 2.13 of the Indenture with respect to
defaulted interest.  If a Holder has
given wire transfer instructions to the Issuers, the Issuers shall pay all
principal, interest and premium, if any, on that Holder’s Notes in accordance
with those instructions.  All other
payments on Notes shall be made at the office or agency of the Paying Agent and
Registrar within the City and State of New York unless the Issuers elect to make
interest payments by check mailed to the Holders at their addresses set forth
in the register of Holders.  Such payment
shall be in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.

 

3.                                       Paying Agent and Registrar. 
Initially, the Trustee under the Indenture shall act as Paying Agent and
Registrar.  The Issuers may change any
Paying Agent or Registrar without prior notice to any Holder.  The Issuers or any of their Subsidiaries may
act in any such capacity.

 

4.                                       Indenture.  The
Issuers issued the Notes under an Indenture dated as of August 20, 2004 (“Indenture”) among the Company, Co-Issuer
Corp., the Guarantors and the Trustee. 
The terms of the Notes include those stated in the Indenture and those
specifically made

 

A-6

 

part
of the Indenture by reference to the Trust Indenture Act of 1939, as
amended.  The Notes are subject to all
such terms, and Holders are referred to the Indenture and such Act for a statement
of such terms.  To the extent any
provision of this Note conflicts with the express provisions of the Indenture,
the provisions of the Indenture shall govern and be controlling.  The Indenture pursuant to which this Note is
issued provides that an unlimited aggregate principal amount of Additional
Notes may be issued thereunder.

 

5.                                       Optional Redemption. 
(a)  Except as set forth in
paragraphs 5(b) and (c) below, the Issuers shall not have the option to redeem
the Notes prior to September 1, 2008. 
On or after September 1, 2008, the Issuers may redeem all or part
of the Notes, at the redemption prices (expressed as percentages of principal
amount) set forth below plus accrued and unpaid interest, if any, thereon to
the applicable redemption date, if redeemed during the twelve-month period
beginning on September 1 of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2008

  	
   

  	
  104.375

  	
  %

  
	
  2009

  	
   

  	
  102.188

  	
  %

  
	
  2010 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)                                 At any time prior to September 1, 2007,
the Issuers may, on any one or more occasions, redeem up to 35% of the
aggregate principal amount of Notes issued under the Indenture (including any
Additional Notes) at a redemption price of 108.75% of the principal amount
thereof, plus accrued and unpaid interest, if any, thereon to the applicable
redemption date, with the net cash proceeds of one or more Qualified Equity
Offerings; provided that (1) at
least 65% of the aggregate principal amount of Notes issued under the Indenture
(including any Additional Notes) remains outstanding immediately after the
occurrence of such redemption, excluding Notes held by the Issuers and their
Subsidiaries; and (2) the redemption must occur within 90 days of the date of
the closing of such Qualified Equity Offering.

 

(c)                                  If at any time prior to September 1,
2008: (i)(A) the Company has made an Asset Sale Offer for 50% or more of the
outstanding Notes in compliance with Section 4.10, (B) the Company has
purchased all Notes tendered and (C) less than all of the outstanding Notes
have been tendered and purchased pursuant to such Asset Sale Offer; or (ii) the
Company or a Restricted Subsidiary thereof has entered into a binding agreement
related to a transaction that is subject to Section 5.01 pursuant to which
the Company or any of its Restricted Subsidiaries is entitled to receive net
proceeds in excess of the sum of the principal amount of all secured
Indebtedness and Notes outstanding at such time, then the Company may redeem
all or part of the Notes at a redemption price equal to the sum of (A) 100% of
the principal amount thereof, plus
(B) the Applicable Premium as of the date of redemption, plus (C) accrued and unpaid interest, if
any, to the date of redemption.

 

6.                                       Repurchase at Option of
Holder.  Upon the occurrence of (a) a Change of
Control, the Holders of the Notes shall have the right to require the Company
to purchase such Holder’s outstanding Notes on the terms set forth in the
Indenture and (b) an Asset Sale, the Company may be obligated to make offers to
purchase Notes with a portion of the Net Proceeds of such Asset Sale on the
terms set forth in the Indenture.

 

A-7

 

7.                                       Denominations, Transfer,
Exchange.  The Notes are in registered form without
coupons in minimum denominations of $5,000 and integral multiples of $1,000 in
excess thereof.  The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Issuers may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. The Issuers are not required to
transfer or exchange any Note selected for redemption.

 

8.                                       Persons Deemed Owners.  The
registered Holder of a Note shall be treated as its owner for all purposes.

 

9.                                       Amendment, Supplement and
Waiver.  The Indenture and the Notes may be amended or
supplemented and any existing default or compliance with any provision of the
Indenture or the Notes may be waived only in accordance with the Indenture.

 

10.                                 Defaults and Remedies.  In
the case of an Event of Default arising from events of bankruptcy or insolvency
specified in the Indenture, all outstanding Notes may become due and payable in
the manner and with the effect provided in the Indenture.

 

11.                                 Trustee Dealings with
Issuers.  The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may become a creditor of,
or otherwise deal with the Issuers or any of their Affiliates, with the same
rights it would have if it were not Trustee.

 

12.                                 No Recourse Against Others.  No
director, officer, employee, incorporator, member, manager, partner or
stockholder of the Issuers or any Guarantor, as such, shall have any liability
for any obligations of the Issuers or the Guarantors under the Notes, the
Indenture, the Note Guarantees or for any claim based on, in respect of, or by
reason of, such obligations or their creation. 
Each Holder of Notes by accepting a Note waives and releases all such
liability.  This waiver and release are
part of the consideration for issuance of the Notes.

 

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

 

14.                                 CUSIP Numbers. 
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Issuers have caused CUSIP numbers to be
printed on the Notes and the Trustee may use CUSIP numbers in notices of
redemption as a convenience to Holders. 
No representation is made as to the accuracy of such numbers either as
printed on the Notes or as contained in any notice of redemption and reliance
may be placed only on the other identification numbers placed thereon.

 

15.                                 Guarantee.  The
Issuers’ obligations under the Notes are fully and unconditionally guaranteed,
jointly and severally, by the Guarantors.

 

16.                                 Copies of Documents.  The
Company shall furnish to any Holder upon written request and without charge a
copy of the Indenture.  Requests may be
made to:

 

A-8

 

Rainbow
National Services LLC

200
Jericho Quadrangle

Jericho,
New York  11753

Attention:  Joshua W. Sapan, President and Chief
Executive Officer

 

And to:

 

Rainbow National Services LLC

200 Jericho Quadrangle

Jericho, NY 11753

Attention:  Chief Financial Officer

 

A-9

 

ASSIGNMENT FORM

 

To
assign this Note, fill in the form below:

 

	
  (I) or (we) assign and transfer this Note
  to:

  	
   

  
	
   

  	
  (INSERT ASSIGNEE’S LEGAL NAME)

  
	
   

  
	
   

  
	
  (Insert assignee’s soc. sec. or tax I.D.
  no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Print or type assignee’s name, address and
  zip code)

  
	
   

  
	
  and irrevocably appoint

  
	
  to transfer this Note on the books of the
  Issuers.  The agent may substitute
  another to act for him.

  

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your Signature: 

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on the face of this Note)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
						

 

*  Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the
Trustee).

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have this Note purchased by the Company or the Issuers
pursuant to Section 4.10(c) or 4.14 of the Indenture, respectively, check
the appropriate box below:

 

	
  o  Section 4.10(c)

  	
  o  Section 4.14

  

 

If
you want to elect to have only part of the Note purchased by the Company or the
Issuers pursuant to Section 4.10(c) or Section 4.14 of the Indenture,
respectively, state the amount you elect to have purchased:

 

$                

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tax
  Identification No.:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  	
   

  
									

 

*          Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the
Trustee).

 

A-11

 

[To be inserted
for Rule 144A Global Note]

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The
following exchanges of a part of this Global Note for an interest in another
Global Note or for a Definitive Note, or exchanges of a part of another Global
Note or Definitive Note for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of Decrease in

  Principal Amount at

  Maturity

  of this Global Note

  	
   

  	
  Amount of Increase in

  Principal Amount at

  Maturity

  of this Global Note

  	
   

  	
  Principal Amount at

  Maturity

  of this Global Note

  Following such

  decrease (or increase)

  	
   

  	
  Signature of

  Authorized Officer

  of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[To be inserted
for Regulation S Global Note]

 

SCHEDULE OF EXCHANGES OF REGULATION S GLOBAL NOTE

 

The
following exchanges of a part of this Regulation S Global Note for an interest
in another Global Note or of other Restricted Global Notes for an interest in
this Regulation S Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of Decrease in

  Principal Amount at

  Maturity

  of this Global Note

  	
   

  	
  Amount of Increase in

  Principal Amount at

  Maturity

  of this Global Note

  	
   

  	
  Principal Amount at

  Maturity

  of this Global Note

  Following such

  decrease (or increase)

  	
   

  	
  Signature of

  Authorized Officer

  of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-12

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

Rainbow
National Services LLC

200
Jericho Quadrangle

Jericho,
New York  11753

Attention:  Joshua W. Sapan, President and Chief
Executive Officer

 

The
Bank of New York

101
Barclay Street, 8W

New
York, New York 10286

Attention:  Corporate Trust Administration

 

Re:  83⁄4% Senior Notes due 2012

 

Reference
is hereby made to the Indenture, dated as of August 20, 2004 (the “Indenture”), among Rainbow National
Services LLC, a Delaware limited liability company (the “Company”), RNS Co-Issuer Corporation, a
Delaware corporation (the “Co-Issuer Corp.”
and, together with the Company, the “Issuers”),
the Guarantors, and The Bank of New York, a New York banking corporation, as
trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

 

                               
(the “Transferor”) owns and
proposes to transfer the Note[s] or interest in such Note[s] specified in Annex
A hereto, in the principal amount at maturity of $                      
in such Note[s] or interests (the “Transfer”),
to                                                   
(the “Transferee”), as further
specified in Annex A hereto.  In
connection with the Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

o                                    1.                                       Check if Transferee will take delivery of a
beneficial interest in the 144A Global Note or a Definitive Note Pursuant to
Rule 144A.  The Transfer is being effected pursuant to
and in accordance with Rule 144A under the Securities Act of 1933, as amended
(the “Securities Act”), and,
accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believed and believes is purchasing the beneficial
interest or Definitive Note for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and
such Person and each such account is a “qualified institutional buyer” within
the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A
and such Transfer is in compliance with any applicable blue sky securities laws
of any state of the United States.  Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Note and/or the Definitive Note and in the
Indenture and the Securities Act.

 

o                                    2.                                       Check if Transferee will take delivery of a
beneficial interest in a Legended Regulation S Global Note, or a Definitive
Note pursuant to Regulation S.  The

 

B-1

 

Transfer
is being effected pursuant to and in accordance with Rule 903 or Rule 904 under
the Securities Act and, accordingly, the Transferor hereby further certifies
that (i) the Transfer is not being made to a person in the United States and
(A) at the time the buy order was originated, the Transferee was outside the
United States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (B)
the transaction was executed in, on or through the facilities of a designated offshore
securities market and neither such Transferor nor any Person acting on its
behalf knows that the transaction was prearranged with a buyer in the United
States, (ii) no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities
Act, (iii) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act and (iv) the transfer is not
being made to a U.S. Person or for the account or benefit of a U.S. Person  (other than an Initial Purchaser).  Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Legended Regulation S Global
Note and/or the Definitive Note and in the Indenture and the Securities Act.

 

o                                    3.                                       Check and complete if Transferee will take
delivery of a Restricted Definitive Note pursuant to any provision of the
Securities Act other than Rule 144, Rule 144A or Regulation S.  The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted Definitive
Notes and pursuant to and in accordance with the Securities Act and any
applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):

 

o                                    (a)                                  such Transfer is being effected to the
Company or a subsidiary thereof; or

 

o                                    (b)                                 such Transfer is being effected to an
Institutional Accredited Investor and pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A, Rule 144
or Rule 904, and the Transferor hereby further certifies that it has not
engaged in any general solicitation within the meaning of Regulation D under
the Securities Act and the Transfer complies with the transfer restrictions
applicable to Restricted Definitive Notes and the requirements of the exemption
claimed, which certification is supported by (1) a certificate executed by the
Transferee in the form of Exhibit D to the Indenture and (2) an Opinion
of Counsel provided by the Transferor or the Transferee (a copy of which the
Transferor has attached to this certification), to the effect that such
Transfer is in compliance with the Securities Act.  Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred Definitive Note
will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Definitive Notes and in the Indenture and the
Securities Act.

 

4.                                       Check if Transferee will take delivery of a
beneficial interest in an Unrestricted Global Note or of an Unrestricted
Definitive Note.

 

o                                    (a)                                  Check if Transfer is Pursuant to Rule
144.  (i) The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities

 

B-2

 

laws
of any state of the United States and (ii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

 

o                                    (b)                                 Check if Transfer is Pursuant to Regulation
S.  (i) The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and, in the case of a transfer from a Restricted Global Note or a Restricted
Definitive Note, the Transferor hereby further certifies that (a) the Transfer
is not being made to a person in the United States and (x) at the time the buy
order was originated, the Transferee was outside the United States or such
Transferor and any Person acting on its behalf reasonably believed and believes
that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities
market and neither such Transferor nor any Person acting on its behalf knows
that the transaction was prearranged with a buyer in the United States, (b) no
directed selling efforts have been made in contravention of the requirements of
Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (c) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (d) the transfer is not being made to a
U.S. Person or for the account or benefit of a U.S. Person, and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

 

o                                    (c)                                  Check if Transfer is Pursuant to Other
Exemption.  (i) The Transfer is being
effected pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any State of the United States and
(ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act.  Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Notes or Restricted Definitive Notes and in the
Indenture.

 

B-3

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuers.

 

	
   

  	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
								

 

B-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.                                       The Transferor owns and proposes to transfer
the following:

 

[CHECK ONE OF (a) OR (b)]

 

o                                    (a)                                  a beneficial interest in the:

 

(i)                                     144A Global Note (CUSIP                );
or

 

(ii)                                  Regulation S Global Note (CUSIP              );
or

 

o                                    (b)                                 a Restricted Definitive Note.

 

2.                                       After the Transfer the Transferee will hold:

 

[CHECK ONE]

 

o                                    (a)                                  a beneficial interest in the:

 

(i)                                     144A Global Note (CUSIP             );
or

 

(ii)                                  Regulation S Global Note (CUSIP            );
or

 

(iii)                               Unrestricted Global Note (CUSIP                 );
or

 

o                                    (b)                                 a Restricted Definitive Note; or

 

o                                    (c)                                  an Unrestricted Definitive Note,

 

in accordance with the terms of the Indenture.

 

B-5

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

Rainbow
National Services LLC

200
Jericho Quadrangle

Jericho,
New York  11753

Attention:  Joshua W. Sapan, President and Chief
Executive Officer

 

The
Bank of New York

101
Barclay Street, 8W

New
York, New York 10286

Attention:  Corporate Trust Administration

 

Re:  83⁄4% Senior Notes due 2012

 

Reference
is hereby made to the Indenture, dated as of August 20, 2004 (the “Indenture”), among Rainbow National
Services LLC, a Delaware limited liability company (the “Company”), RNS Co-Issuer Corporation, a
Delaware corporation (the “Co-Issuer Corp.”
and, together with the Company, the “Issuers”),
the Guarantors and The Bank of New York, a New York banking corporation, as
trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

 

                                                         
(the “Owner”)
owns and proposes to exchange the Note[s] or interest in such Note[s] specified
herein, in the principal amount at maturity of $                            
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

 

1.                                       Exchange of Restricted Definitive Notes or
Beneficial Interests in a Restricted Global Note for Unrestricted Definitive
Notes or Beneficial Interests in an Unrestricted Global Note

 

o                                    (a)                                  Check if Exchange is from beneficial interest
in a Restricted Global Note to beneficial interest in an Unrestricted Global
Note.  In connection with the Exchange of
the Owner’s beneficial interest in a Restricted Global Note for a beneficial
interest in an Unrestricted Global Note in an equal principal amount at
maturity, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to the
Global Notes and pursuant to and in accordance with the United States
Securities Act of 1933, as amended (the “Securities
Act”), (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest in an
Unrestricted Global Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

 

o                                    (b)                                 Check if Exchange is from beneficial interest
in a Restricted Global Note to Unrestricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Definitive Note is being acquired for
the Owner’s own account without transfer,

 

C-1

 

(ii)
such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance
with the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of
any state of the United States.

 

o                                    (c)                                  Check if Exchange is from Restricted Definitive
Note to beneficial interest in an Unrestricted Global Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for a beneficial interest in an Unrestricted Global
Note, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act,
(iii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the beneficial interest is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

o                                    (d)                                 Check if Exchange is from Restricted
Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to Restricted Definitive
Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

 

2.                                       Exchange of Restricted Definitive Notes or
Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes
or Beneficial Interests in Restricted Global Notes

 

o                                    (a)                                  Check if Exchange is from beneficial interest
in a Restricted Global Note to Restricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a Restricted Definitive
Note with an equal principal amount at maturity, the Owner hereby certifies
that the Restricted Definitive Note is being acquired for the Owner’s own
account without transfer.  Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Restricted Definitive Note issued will continue to be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Definitive Note and in the Indenture and the Securities Act.

 

o                                    (b)                                 Check if Exchange is from Restricted
Definitive Note to beneficial interest in a Restricted Global Note.  In connection with the Exchange of the Owner’s
Restricted Definitive Note for a beneficial interest in the [CHECK ONE] :

 

o                                    144A Global Note, :

 

C-2

 

o                                    Regulation S Global Note, :

 

with
an equal principal amount at maturity, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and
the Securities Act.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issues.

 

	
   

  	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
									

 

C-3

 

EXHIBIT D

 

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

Rainbow
National Services LLC

200
Jericho Quadrangle

Jericho,
New York  11753

Attention:  Joshua W. Sapan, President and Chief
Executive Officer

 

The
Bank of New York

101
Barclay Street, 8W

New
York, New York 10286

Attention:
Corporate Trust Administration

 

Re:  83⁄4% Senior Notes due 2012

 

Reference
is hereby made to the Indenture, dated as of August 20, 2004 (the “Indenture”), among Rainbow National
Services LLC, a Delaware limited liability company (the “Company”), RNS Co-Issuer Corporation, a
Delaware corporation (the “Co-Issuer Corp.”
and, together with the Company, the “Issuers”),
the Guarantors and The Bank of New York, a New York banking corporation, as
trustee (the “Trustee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

In
connection with our proposed purchase of $                    
aggregate principal amount of:

 

(a)                                  o                                    beneficial interest in a Global Note, or

 

(b)                                 o                                    a Definitive Note,

 

we confirm that:

 

1.                                       We understand that any subsequent transfer of
the Notes or any interest therein is subject to certain restrictions and
conditions set forth in the Indenture and the undersigned agrees to be bound
by, and not to resell, pledge or otherwise transfer the Notes or any interest
therein except in compliance with, such restrictions and conditions and the
Securities Act of 1933, as amended (the “Securities
Act”).

 

2.                                       We understand that the offer and sale of the
Notes have not been registered under the Securities Act, and that the Notes and
any interest therein may not be offered or sold except as permitted in the
following sentence.  We agree, on our own
behalf and on behalf of any accounts for which we are acting as hereinafter
stated, that if we should sell the Notes or any interest therein, we shall do
so only (A) to the Company or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a “qualified
institutional buyer” (as defined therein), (C) to an institutional “accredited
investor” (as defined below) that, prior to such transfer, furnishes (or has
furnished on its behalf by a U.S. broker-dealer) to you and to the

 

D-1

 

Issuers
a signed letter substantially in the form of this letter and an Opinion of
Counsel in form reasonably acceptable to the Issuers to the effect that such
transfer is in compliance with the Securities Act, (D) outside the United
States in accordance with Rule 904 of Regulation S under the Securities Act,
(E) pursuant to the provisions of Rule 144(k) under the Securities Act or
(F) pursuant to an effective registration statement under the Securities
Act, and we further agree to provide to any person purchasing the Definitive
Note or beneficial interest in a Global Note from us in a transaction meeting
the requirements of clauses (A) through (E) of this paragraph a notice advising
such purchaser that resales thereof are restricted as stated herein.

 

3.                                       We understand that, on any proposed resale of
the Notes or beneficial interest therein, we will be required to furnish to you
and the Issuers such certifications, legal opinions and other information as
you and the Issuers may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. 
We further understand that the Notes purchased by us will bear a legend
to the foregoing effect.

 

4.                                       We are an institutional “accredited investor”
(as defined in Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act) and have such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Notes, and we and any accounts for which we are
acting are each able to bear the economic risk of our or its investment.

 

5.                                       We are acquiring the Notes or beneficial
interest therein purchased by us for our own account or for one or more
accounts (each of which is an institutional “accredited investor”) as to each
of which we exercise sole investment discretion.

 

The
Trustee and the Issuers are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert
  Name of Accredited Investor]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

D-2

 

EXHIBIT E

 

FORM OF NOTATION OF GUARANTEE

 

For
value received, each Guarantor (which term includes any successor Person under
the Indenture) has, jointly and severally, unconditionally guaranteed, to the
extent set forth in and subject to the provisions in the Indenture dated as of August 20,
2004 (the “Indenture”) among
Rainbow National Services LLC, a Delaware limited liability company (the “Company”), RNS Co-Issuer Corporation, a
Delaware corporation (the “Co-Issuer Corp.”
and, together with the Company, the “Issuers”),
the other Guarantors (as defined in the Indenture) and The Bank of New York, a
New York banking corporation, as trustee (the “Trustee”), (a) the due and punctual payment of the
principal of, premium, if any, and interest on the Notes (as defined in the
Indenture), whether at maturity, by acceleration, redemption or otherwise, and
the due and punctual payment of interest on overdue principal, premium, if any,
and interest on the Notes, if lawful (subject in all cases to any applicable
grace periods provided in the Indenture and the Notes), and the due and
punctual performance of all other obligations of the Issuers to the Holders or
the Trustee all in accordance with the terms of the Indenture and the Notes and
(b) in case of any extension of time of payment or renewal of any Notes or
any of such other obligations, the same will be promptly paid in full when due
or performed in accordance with the terms of the extension or renewal, whether
at stated maturity, by acceleration or otherwise.  The obligations of the Guarantors to the
Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article Ten of the Indenture and
reference is hereby made to the Indenture for the precise terms of the Note
Guarantee.  Each Holder of a Note, by
accepting the same, (a) agrees to and shall be bound by such provisions and (b)
appoints the Trustee attorney-in-fact of such Holder for such purpose.

 

Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Note Guarantee of such Guarantor
not constitute (i) a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal, state or foreign law to the extent
applicable to its Note Guarantee or (ii) an unlawful distribution under any
applicable state law prohibiting shareholder distributions by an insolvent
subsidiary to the extent applicable to its Note Guarantee.

 

[SIGNATURE PAGE FOLLOWS]

 

E-1

 

IN
WITNESS HEREOF, each Guarantor has caused this Notation of Guarantee to be
signed manually or by facsimile by its duly authorized officers.

 

	
   

  	
  AMERICAN
  MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE
  INDEPENDENT FILM CHANNEL LLC

  
	
   

  	
  By:
  RAINBOW NATIONAL SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN
  MOVIE CLASSICS IV HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMC
  PRODUCTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WE:
  WOMEN’S ENTERTAINMENT PRODUCTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

E-2

 

	
   

  	
  IFC
  PROGRAMMING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMC
  FILM HOLDINGS LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMC
  MOVIE COMPANION LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMC
  NEW MEDIA LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MONSTERS
  VOD SERVICES LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

E-3

 

	
   

  	
  WE:
  WOMEN’S ENTERTAINMENT LLC

  
	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WE
  NEW MEDIA LLC

  
	
   

  	
  By:
  WE: WOMEN’S ENTERTAINMENT LLC

  
	
   

  	
   

  	
  By:
  AMERICAN MOVIE CLASSICS COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IFC
  DIGITAL MEDIA LLC

  
	
   

  	
  By:
  THE INDEPENDENT FILM CHANNEL LLC

  
	
   

  	
   

  	
  By:
  RAINBOW NATIONAL SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IFC
  VOD SERVICES LLC

  
	
   

  	
  By:
  THE INDEPENDENT FILM CHANNEL LLC

  
	
   

  	
   

  	
  By:
  RAINBOW NATIONAL SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

E-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]