Document:

CONSULTING AGREEMENT

THIS AGREEMENT dated for reference October 25, 2005.

BETWEEN:
            Duane Fadness, of 1274 Fillmore Street, Denver, Colorado
            (hereinafter called the "Consultant")
                                                            OF THE FIRST PART

AND:
            LIONS PETROLEUM INC., a corporation having an office at 600 17th
            Street, Suite 2800 South, Denver, CO 80202
            (hereinafter called the "Company")

                                                            OF THE SECOND PART

WHEREAS the Company wishes to acquire and the Consultant wishes to supply the
services described herein upon the terms and conditions set out in this
Agreement;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual
premises and covenants contained in this Agreement, the parties hereto
covenant and agree as follows:

1. Provision of Services
   ---------------------

1.1.   Subject to the terms of this Agreement, the Consultant shall provide to
the Company the services fisted in Schedule "A" hereto and all such ether
services as are necessarily incidental thereto that may be required by the
Company (the "Services").

1.2    The Consultant shall use his best efforts to further the interests of
the Company in providing the Services.

2. Changes in Service
   ------------------

2.1.   The Company shall be entitled to order changes and/or deletions from
the Services as set out in Schedule "A" if such changes do not change the
general nature and effect of the Services or are not material in nature, or,
in any other event, by mutual agreement; by giving written notice to the
Consultant without invalidating this Agreement. The Consultant shall be deemed
to have agreed to such changes and/or deletions and the Services to be
provided hereunder shall be modified accordingly.

3. Remuneration of Consultant
   --------------------------

3.1. In consideration of the Consultant's performance of the Services as
required by this Agreement, the Company shall pay the Consultant the following
remuneration,

     (a.)  Upon completion of this Agreement, incentive stock options for the
purchase of 100,000 shares of common stock in the Company at a price of $0.10
per share, on and subject to the terms applicable to other outstanding stock
options of the

<PAGE> 1

Company now issued to Gordon Wiltse and Dale Paulson (collectively the
'Options') and shall thereafter issue to the Consultant 1/3 of the total
number of all further options issued to Gordon Wiltse and Dale Paulson, up to
a maximum of 1,000,000 shares; and

     (b.)   subject to such restrictions and requirements as the Company may
impose from time to time, the Company shall reimburse the Consultant for
out-of-pocket expenses incurred in performance of the services upon receipt of
such evidence of those expenses as the Company may reasonably require.

4. Consultant Not An Agent or Employee
   -----------------------------------

4.1.  The Consultant is not the employee or agent of the Company and
accordingly, shall not purport to enter into any a contract or subcontract on
behalf of the Company or otherwise purport to act on its behalf. Nothing in
this Agreement shall be deemed to require the Consultant to provide his
services exclusively to the Company and the Consultant hereby acknowledges
that the Company shall not be required to make any remittances or payments
required of employers by statute on the Consultant's behalf and the Consultant
shall not be entitled to the fringe benefits provided by the Company to its
employees.

4.2.  The Company acknowledges that since the Consultant is an independent
contractor and not an employee of the Company, the Consultant shall have
direction and control of the manner, methods, techniques and procedures used
by the Consultant to perform the Services.

5. Books and Records
   ------------------

5.1.  The Consultant shall keep proper accounts and records of all
expenditures made by him in connection with the Services; and of the time
expended by him in performing the Services and all invoices, receipts and
vouchers relating thereto.

6. Company's Obligations
   ---------------------

6.1.   The Company shall make available to the Consultant such information and
data and shall permit the Consultant to have access to such documents or
premises as are reasonably necessary to enable him to perform the Services:

7. Duties of Consultant
   --------------------

7.1.   During the tern of this Agreement, the Consultant shall devote such of
his time, attention and abilities to the business of the Company as is
reasonably necessary for the proper exercise of his duties pursuant to this
Agreement. Nothing contained herein shall be deemed to require the Consultant
to devote his exclusive time, attention and ability to the business of the
Company.

<PAGE> 2

7.2.   Notwithstanding any other provision herein, the Consultant shall
introduce to the Company any and all prospective oil and gas properties which
may be available for acquisition or participation by the Company or any other
related business opportunities of which the Consultant is aware and which the
Company may be interested in other than those prospective transactions which
he is obligated by virtue of his employment relationship with Western Gas
Resources, Inc. and Lance Oil & Gas Company, Inc. (collectively "Western Gas")
to present first to Western Gas or where he is otherwise prevented by law or
binding agreement with a third party entered into prior to the date of this
Agreement from doing so.

7.3.  During the term of this Agreement, the Consultant agrees that he will:

      (a.)  at all times; except when disabled by sickness or incapacity,
faithfully and diligently perform his duties and use his best efforts to
promote and advance the business of the Company;

      (b.)  devote such of his time, labour and attention to the business of
the Company as is necessary for the proper exercise of the Consultant's duties
hereunder and, except as otherwise provided herein, refrain from engaging in
any business, venture, or other commercial or sales activities that in any way
conflict with or detract from his ability to fulfill his duties in the manner
contemplated in this paragraph. Notwithstanding anything to the contrary
herein, the Consultant's employment relationship with Western Gas and his
duties performed in connection therewith shall not be a breach or violation of
the covenants of this Consulting Agreement; and

      (c.)  refrain from acting in any manner contrary to the interests at the
Company contrary to the duties of the Consultant as contemplated herein.

7.4.  Without limiting the generality of the foregoing, the Consultant shall
not during the term of this Agreement:

      (a.)  act in any manner contrary to the terms of this Agreement, or the
best interests of the Company; or

      (b.)  take advantage for personal gain, either directly or indirectly,
of a business opportunity, which opportunity arose because of the Consultant's
relationship with the Company unless such opportunity is associated with the
Consultant's relationship with Western Gas or such opportunity is first
presented to the Company and the Company expressly declines to take advantage
of or pursue such opportunity or agrees in writing that the Consultant may
take advantage thereof.

8. Confidentiality and Ownership of Work Product
   ---------------------------------------------

8.1.  All information pertaining to oil and gas properties in which the
Company has an interest

<PAGE> 3

or is seeking to acquire including, without limitation, any oil and gas
property introduced to the Company by the Consultant within 12 months prior to
any particular date which is not rejected in writing by the Company,
including, without limitation, any geological information, geophysical
surveys, technical reports, maps, logs, test results, results of exploration
or other information pertaining to any such property, together with any
reports, documents, concepts, products and processes, information pertaining
to prospective property vendors, business or financing contacts, or
information pertaining to prospective property or other acquisitions, joint
ventures or business combinations or any business opportunities prepared,
produced, developed, or acquired, by or at the direction of the Consultant,
directly or indirectly, in connection with or otherwise developed or first
reduced to practice by the Consultant in the course of performing services
pursuant to this Agreement and pertaining to the Company's business
(collectively, the `'Work Product") shall belong exclusively to and shall be
the sole property of the Company and the Company shall be entitled to all
right, title and interest therein, and all profits, or benefits therefrom. No
copies, summaries or other reproductions of any Work Product shall be made by
the Consultant without the express permission of the Company and the
Consultant shall, forthwith upon the Company's request, deliver to the Company
all Work Product in the possession of or otherwise available to or under the
control of the Consultant notwithstanding a termination of this Agreement

8.2.  The Consultant shall not at any time either during the term of this
Agreement or thereafter divulge to any person, firm or corporation, any
information, documents or Work Product other than information, documents or
Work product which the Company has authorized for public disclosure or which
has previously been disclosed to the public) received by him during the course
of its providing the services to the Company with regard to the personal,
financial or other affairs of the Company or any of its subsidiaries, or the
Company's directors, officers and employees and all such information shall be
kept confidential and shall not in any manner be revealed to anyone by the
Consultant, except as may be required by law or otherwise permitted by the
Company in writing.

8.3.  The Consultant shall comply and shall take proper measures to cause any
agents or employees of the Consultant or other persons under the Consultant's
direction or control to comply, with such directions as the Company shall make
to ensure the safeguarding or confidentiality of all such information,
documents, and Work Product.

8.4.  The Company shall accept or reject in writing any oil and gas property
introduced by the Consultant to the Company within 120 days after introduction
of the property, provided that any property not accepted in writing by the
Company within such 120 days shall be deemed to be rejected, and shall no
longer be deemed to be property of the Company.

<PAGE> 4

8.5.  The Consultant shall be liable for any loss, damages and expenses
incurred by the Company which are caused by a breach by the Consultant of the
covenants stated in this paragraph 8.

8.6   Notwithstanding anything else to the contrary herein, unless the parties
expressly agree in writing as to the date a property was or is deemed to have
been introduced to the Company for the purposes of section 8.4, a property
shall be deemed to have been introduced to the Company for the purposes of
section 8.4 only if that property and the proposed terms of acquisition or
participation have been delivered to the Company in writing, together with
sufficient information for the Company to make an informed decision as to
whether to proceed with the proposed transaction.

9.  Termination
    -----------

9.1.  The term of this Agreement shall be for thirty six (36) months and shall
commence upon the 25th day of October, 2005 and unless terminated earlier
pursuant to the provisions hereof, or unless renewed in writing by the
parties, shall expire on the 25th day of October, 2008.

9.2.  This Agreement may be terminated prior to the completion of the services
as follows:

     (a.)  by the Consultant or the Company upon 30 days prior written notice;
or

     (b.)  immediately upon the Company giving written notice to the
Consultant of the occurrence of an event of Default as defined in clause 9.5.

9.3.  If either party fails to give any notice under section 9.2, this
Agreement shall continue in full force and effect.

9.4.  Upon the termination of this agreement, the Company shall, subject to
its right to set off any damages or other amounts claimed by the Company from
the Consultant, pay to the Consultant any compensation payable hereunder that
the Consultant has accrued hereunder up to and including the effective date of
termination.

9.5.  In Event of Default shall be deemed to occur if:

      (a.)  the Consultant is in breach of any covenant, obligation or
warranty hereunder and such breach continues for a period of seven (7) days
after written notice thereof has been given to the Consultant; or

      (b.)  the Consultant becomes insolvent or unable to discharge his
liabilities generally as they became due, makes an assignment for the benefit
of his creditors, or is made subject to a petition or other proceedings in
bankruptcy.

10. Non-Assignability
    -----------------

10.1.  The Consultant shall not subcontract to any person, any right, duty or
obligation hereunder

<PAGE> 5

without the prior written consent of the Company. This Agreement may not be
assigned by either party without the prior written consent of the other party.

11. Co-operatian with Other Parties
    -------------------------------

11.1.   The Consultant shall co-operate with all other parties engaged or
employed by the Company from time to time and shall coordinate his activities
with the activities of such parties as and when requested by the Company.

12. Force Majeure
    -------------

12.1.  Notwithstanding anything herein to the contrary, neither party hereto
shall be deemed to be in default with respect to the performance of the terms,
covenants and conditions of this Agreement if the same shall be due to any
strike, lockout, civil commotion, invasion; rebellion, hostilities, sabotage,
governmental regulations or controls, or acts of God.

13. Notice
    -------

13.1.  All notices, demands and payments required or permitted to be given
hereunder shall be in writing and may be delivered personally, or sent by
telegram or telex or other means of electronic communication providing a
printed copy ("Electronic Communication") or may be forwarded by first class
prepaid registered mail to the addresses set forth below. Any notice delivered
or sent by Electronic Communication deemed to have been given and received at
the time of delivery. Any notice mailed as aforesaid shall be deemed to have
been given and received on expiration of 72 hours after it is posted,
addressed to the Company or the Consultant at their respective addresses or
telefax numbers set out above or such other address or addresses or telefax
numbers as the parties may from time to time give notice of in writing;
provided that if there shall be between the time of mailing and the actual
receipt of the notice a mail strike, slow down or other labour dispute which
may affect the delivery of such notice by the mails, then such notice shall be
effective only if actually delivered.

14. Entire Agreement
    ----------------

14.1.  The provisions herein contained constitute the entire agreement between
the parties and supersede all previous communications, representations and
agreements, whether oral or written, between the parties with respect to the
subject matter hereof.

15. Further Assurances
    ------------------

15.1.  Each of the parties shall execute such other documents and instruments
and shall do such other acts as may be necessary to implement and carry out
the intent of this Agreement.

<PAGE> 6

16. Proper Law, Attornment and Venue
    --------------------------------

16.1.  This Agreement will be governed by and construed in accordance with the
laws of British Columbia. The Company and the Consultant hereby attorn to the
jurisdiction the Courts of British Columbia and hereby select Vancouver,
British Columbia as the proper forum for any action commenced by either party
with respect to this agreement or the transactions contemplated herein.

17. Time of Essence
    ----------------

17.1.  Time is of the essence of this Agreement.

18. Waiver of Breach
    ----------------

18.1. The waiver by either the Company or the Consultant of a breach of any
provisions of this Agreement by the other party to this Agreement shall not
operate or be construed as a waiver of any subsequent breach by that party.
IN WITNESS WHEREOF the parties have affixed their common seal hereto in the
presence of their officers duly authorized for that purpose.

The corporate seal of Lions Petroleum Inc,   )
was hereunto affixed in the                  )
presence of:                                 )
                                             )
/s/ Dale M, Paulson                          )              c/s
Authorized Signatory                         )
                                             )
/s/ Gordon L. Wiltse                         )
Authorized Signatory                         )

SIGNED, SEALED AND                           )
DELIVERED by Duane D. Fadness                )
                                             )
in the presence of:                          )
                                             )
/s/ Jed M. Lemmons                           )
Signature of Witness                         )  /s/ Duane D. Fadness    (S)
                                             )  Duane D. Fadness
Jed M. Lemmons                               )
Name of witness (Please Print)               )
                                             )
7655 W. 48th Ave. [illegible]                )
Address of Witness                           )
                                             )
Petroleum [illegible]                        )
Occupation of Witness                        )

<PAGE> 7

                           SCHEDULE "A"
To The Consulting Agreement Dated For Reference _______________, 2005
        Between LIONS PETROLEUM INC. and DUANE D. FADNESS

Services and Duties
-------------------

The Consultant shall report to the President and the Board of Directors of the
Company and perform all duties as designated by the President and/or the Board
of Directors, including:
..    identifying and introducing to the Company suitable prospective oil and
     gas properties; including coal bed methane properties, drilling
     participation agreements or other suitable oil and gas related
     opportunities;
..    Reviewing and advising the Company with respect to prospective oil and
     gas acquisitions, dispositions, drilling programs or other proposed oil
     and gas activities
..    Supervising the Company's ongoing oil and gas activities and operations
     including any drilling programs or exploration activities;
..    Supervising the hiring or termination of employees or consultants to
     carry out the Company's oil and gas exploration activities;
..    Vetting or supervising the vetting of any news releases, technical
     reports or documents containing oil and gas related information; and
..    Attending meetings or participating in conference calls or other
     communication with existing or prospective investors or financing
     sources, in co-operation with other directors or representatives of the
     Company, with a view to providing oil and gas related expertise to assist
     the Company in fund raising, investor relations or similar activities, as
     and when required.
..    Such other duties which are not inconsistent with this Agreement as the
     Company may from time to time reasonably request.QuickLinks
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Exhibit 4.1    
    

INDENTURE,  

Dated as of February 8, 2006, 

among

ALTRA INDUSTRIAL MOTION INC.,  

as Issuer, 

THE GUARANTORS NAMED HEREIN,  

as Guarantors, 

THE BANK OF NEW YORK  

as Trustee and Principal Paying Agent, 

and 

THE BANK OF NEW YORK (LUXEMBOURG) S.A.  

as Luxembourg Paying Agent 

111/4% SENIOR NOTES DUE 2013  

CROSS REFERENCE TABLE  

	TIA

Section
 
	 	Indenture

Section

	310	(a)(1)	 	7.10(a)
	 	(a)(2)	 	7.10(a)
	 	(a)(3)	 	7.10(a)
	 	(a)(4)	 	N.A.
	 	(a)(5)	 	7.10(a)
	 	(b)	 	7.03; 7.08; 7.10(a)
	 	(c)	 	N.A.
	311	(a)	 	7.03; 7.11
	 	(b)	 	7.03; 7.11
	312	(a)	 	2.05
	 	(b)	 	7.07; 11.03
	 	(c)	 	11.03
	313	(a)	 	7.06
	 	(b)	 	7.06
	 	(c)	 	7.06
	 	(d)	 	7.06
	314	(a)	 	4.06; 4.21
	 	(b)	 	12.02
	 	(c)(1)	 	4.06; 11.04
	 	(c)(2)	 	11.04
	 	(c)(3)	 	4.06
	 	(d)	 	12.03(c)
	 	(e)	 	11.05
	 	(f)	 	N.A.
	315	(a)	 	7.01(b)
	 	(b)	 	7.05
	 	(c)	 	7.01(a)
	 	(d)	 	7.01(c)
	 	(e)	 	6.11
	316	(a)(last sentence)	 	2.09
	 	(a)(1)(A)	 	6.05
	 	(a)(1)(B)	 	6.04
	 	(a)(2)	 	N.A.
	 	(b)	 	6.07
	 	(c)	 	9.04
	317	(a)(1)	 	6.08
	 	(a)(2)	 	6.09
	 	(b)	 	2.04
	318	(a)	 	11.01
	 	(b)	 	N.A.
	 	(c)	 	11.01

N.A.
means Not Applicable 

NOTE:
This Cross-Reference Table shall not, for any purpose, be deemed to be a part of this Indenture. 

   TABLE OF CONTENTS  

	 
	 	 
	 	Page

	ARTICLE ONE DEFINITIONS AND INCORPORATION BY REFERENCE	 	1
	 	
 Section 1.01	
 	

Definitions.	
 	

1
	 	
 Section 1.02	
 	

Incorporation by Reference of TIA.	
 	

19
	 	
 Section 1.03	
 	

Rules of Construction.	
 	

20
	

ARTICLE TWO THE NOTES	
 	

20
	 	
 Section 2.01	
 	

Form and Dating.	
 	

20
	 	
 Section 2.02	
 	

Execution and Authentication; Aggregate Principal Amount.	
 	

21
	 	
 Section 2.03	
 	

Registrar and Paying Agent.	
 	

22
	 	
 Section 2.04	
 	

Obligations of Paying Agent.	
 	

22
	 	
 Section 2.05	
 	

Holder Lists.	
 	

23
	 	
 Section 2.06	
 	

Transfer and Exchange.	
 	

23
	 	
 Section 2.07	
 	

Replacement Notes.	
 	

23
	 	
 Section 2.08	
 	

Outstanding Notes.	
 	

24
	 	
 Section 2.09	
 	

Treasury Notes; When Notes are Disregarded.	
 	

24
	 	
 Section 2.10	
 	

Temporary Notes.	
 	

24
	 	
 Section 2.11	
 	

Cancellation.	
 	

24
	 	
 Section 2.12	
 	

ISIN and Common Code Numbers.	
 	

25
	 	
 Section 2.13	
 	

Deposit of Moneys.	
 	

25
	 	
 Section 2.14	
 	

Book-Entry Provisions for Global Notes.	
 	

25
	 	
 Section 2.15	
 	

Special Transfer Provisions.	
 	

26
	 	
 Section 2.16	
 	

Transfers of Global Notes and Physical Notes.	
 	

28
	

ARTICLE THREE REDEMPTION	
 	

29
	 	
 Section 3.01	
 	

Optional Redemption.	
 	

29
	 	
 Section 3.02	
 	

Selection of Notes to be Redeemed.	
 	

29
	 	
 Section 3.03	
 	

Notice of Redemption.	
 	

29
	 	
 Section 3.04	
 	

Effect of Notice of Redemption.	
 	

30
	 	
 Section 3.05	
 	

Deposit of Redemption Price.	
 	

30
	 	
 Section 3.06	
 	

Notes Redeemed in Part.	
 	

31
	 	
 Section 3.07	
 	

Applicable Procedures.	
 	

31
	

ARTICLE FOUR COVENANTS	
 	

31
	 	
 Section 4.01	
 	

Payment of Notes.	
 	

31
	 	
 Section 4.02	
 	

Maintenance of Office or Agency.	
 	

31
	 	 	 	 	 

i

 

	 	
 Section 4.03	
 	

Corporate Existence.	
 	

31
	 	
 Section 4.04	
 	

Payment of Taxes and Other Claims.	
 	

32
	 	
 Section 4.05	
 	

Maintenance of Properties and Insurance; Compliance with Laws.	
 	

32
	 	
 Section 4.06	
 	

Compliance Certificate; Notice of Default.	
 	

32
	 	
 Section 4.07	
 	

Waiver of Stay, Extension or Usury Laws.	
 	

33
	 	
 Section 4.08	
 	

Limitation on Incurrence of Additional Indebtedness.	
 	

33
	 	
 Section 4.09	
 	

Limitation on Restricted Payments.	
 	

33
	 	
 Section 4.10	
 	

Limitation on Asset Sales.	
 	

36
	 	
 Section 4.11	
 	

Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.	
 	

39
	 	
 Section 4.12	
 	

Limitation on Issuances and Sales of Capital Stock of Subsidiaries.	
 	

39
	 	
 Section 4.13	
 	

Limitation on Liens.	
 	

40
	 	
 Section 4.14	
 	

Limitations on Transactions with Affiliates.	
 	

40
	 	
 Section 4.15	
 	

Additional Subsidiary Guarantees.	
 	

41
	 	
 Section 4.16	
 	

Conduct of Business.	
 	

42
	 	
 Section 4.17	
 	

Reports to Holders.	
 	

42
	 	
 Section 4.18	
 	

Payments for Consent.	
 	

42
	 	
 Section 4.19	
 	

Repurchase Upon Change of Control.	
 	

43
	 	
 Section 4.20	
 	

Additional Interest.	
 	

44
	 	
 Section 4.21	
 	

Hay Hall Acquisition.	
 	

44
	 	
 Section 4.22	
 	

Listing.	
 	

45
	

ARTICLE FIVE SUCCESSOR CORPORATION	
 	

46
	 	
 Section 5.01	
 	

Merger, Consolidation and Sale of Assets.	
 	

46
	 	
 Section 5.02	
 	

Successor Entity Substituted.	
 	

46
	

ARTICLE SIX DEFAULT AND REMEDIES	
 	

47
	 	
 Section 6.01	
 	

Events of Default.	
 	

47
	 	
 Section 6.02	
 	

Acceleration.	
 	

48
	 	
 Section 6.03	
 	

Other Remedies.	
 	

48
	 	
 Section 6.04	
 	

Waiver of Past Defaults.	
 	

49
	 	
 Section 6.05	
 	

Control by Majority.	
 	

49
	 	
 Section 6.06	
 	

Limitation on Suits.	
 	

49
	 	
 Section 6.07	
 	

Rights of Holders to Receive Payment.	
 	

49
	 	
 Section 6.08	
 	

Collection Suit by Trustee.	
 	

49
	 	
 Section 6.09	
 	

Trustee May File Proofs of Claim.	
 	

50
	 	 	 	 	 

ii

 

	 	
 Section 6.10	
 	

Priorities.	
 	

50
	 	
 Section 6.11	
 	

Undertaking for Costs.	
 	

51
	 	
 Section 6.12	
 	

Restoration of Rights and Remedies.	
 	

51
	

ARTICLE SEVEN TRUSTEE	
 	

51
	 	
 Section 7.01	
 	

Duties of Trustee.	
 	

51
	 	
 Section 7.02	
 	

Rights of Trustee.	
 	

52
	 	
 Section 7.03	
 	

Individual Rights of Trustee.	
 	

53
	 	
 Section 7.04	
 	

Trustee's Disclaimer.	
 	

53
	 	
 Section 7.05	
 	

Notice of Default.	
 	

53
	 	
 Section 7.06	
 	

Reports by Trustee to Holders.	
 	

54
	 	
 Section 7.07	
 	

Compensation and Indemnity.	
 	

54
	 	
 Section 7.08	
 	

Replacement of Trustee.	
 	

55
	 	
 Section 7.09	
 	

Successor Trustee by Merger, Etc.	
 	

56
	 	
 Section 7.10	
 	

Eligibility; Disqualification.	
 	

56
	 	
 Section 7.11	
 	

Preferential Collection of Claims Against Company.	
 	

56
	 	
 Section 7.12	
 	

Trustee as Paying Agent.	
 	

56
	 	
 Section 7.13	
 	

Co-Trustees and Separate Trustees.	
 	

56
	 	
 Section 7.14	
 	

Form of Documents Delivered to Trustee.	
 	

57
	

ARTICLE EIGHT SATISFACTION AND DISCHARGE OF INDENTURE	
 	

58
	 	
 Section 8.01	
 	

Legal Defeasance and Covenant Defeasance.	
 	

58
	 	
 Section 8.02	
 	

Satisfaction and Discharge.	
 	

60
	 	
 Section 8.03	
 	

Survival of Certain Obligations.	
 	

60
	 	
 Section 8.04	
 	

Acknowledgment of Discharge by Trustee.	
 	

61
	 	
 Section 8.05	
 	

Application of Trust Moneys.	
 	

61
	 	
 Section 8.06	
 	

Repayment to the Company; Unclaimed Money.	
 	

62
	 	
 Section 8.07	
 	

Reinstatement.	
 	

62
	

ARTICLE NINE AMENDMENTS, SUPPLEMENTS AND WAIVERS	
 	

62
	 	
 Section 9.01	
 	

Without Consent of Holders.	
 	

62
	 	
 Section 9.02	
 	

With Consent of Holders.	
 	

63
	 	
 Section 9.03	
 	

Compliance with TIA.	
 	

64
	 	
 Section 9.04	
 	

Revocation and Effect of Consents.	
 	

64
	 	
 Section 9.05	
 	

Notation on or Exchange of Notes.	
 	

64
	 	
 Section 9.06	
 	

Trustee to Sign Amendments, Etc.	
 	

65
	 	 	 	 	 

iii

 

	

ARTICLE TEN GUARANTEE	
 	

65
	 	
 Section 10.01	
 	

Guarantee.	
 	

65
	 	
 Section 10.02	
 	

Release of a Guarantor.	
 	

66
	 	
 Section 10.03	
 	

Limitation of Guarantor's Liability.	
 	

66
	 	
 Section 10.04	
 	

Guarantors May Consolidate, etc., on Certain Terms.	
 	

66
	 	
 Section 10.05	
 	

Contribution.	
 	

67
	 	
 Section 10.06	
 	

Waiver of Subrogation.	
 	

67
	 	
 Section 10.07	
 	

Waiver of Stay, Extension or Usury Laws.	
 	

67
	 	
 Section 10.08	
 	

Evidence of Guarantee.	
 	

67
	

ARTICLE ELEVEN MISCELLANEOUS	
 	

68
	 	
 Section 11.01	
 	

TIA Controls.	
 	

68
	 	
 Section 11.02	
 	

Notices.	
 	

68
	 	
 Section 11.03	
 	

Communications by Holders with Other Holders.	
 	

69
	 	
 Section 11.04	
 	

Certificate and Opinion as to Conditions Precedent.	
 	

69
	 	
 Section 11.05	
 	

Statements Required in Certificate or Opinion.	
 	

69
	 	
 Section 11.06	
 	

Rules by Trustee, Paying Agent, Registrar.	
 	

70
	 	
 Section 11.07	
 	

Legal Holidays.	
 	

70
	 	
 Section 11.08	
 	

Governing Law.	
 	

70
	 	
 Section 11.09	
 	

No Adverse Interpretation of Other Agreements.	
 	

70
	 	
 Section 11.10	
 	

No Recourse Against Others.	
 	

70
	 	
 Section 11.11	
 	

Successors.	
 	

70
	 	
 Section 11.12	
 	

Duplicate Originals.	
 	

70
	 	
 Section 11.13	
 	

Severability.	
 	

70
	 	
 Section 11.14	
 	

Waiver of Jury Trial.	
 	

71

	Exhibit A	 	—	 	Form of Initial Note	 	A-1
	

Exhibit B	
 	

—	
 	

Form of Exchange Note	
 	

B-1
	

Exhibit C	
 	

—	
 	

Form of Legend for Global Notes	
 	

C
	

Exhibit D	
 	

—	
 	

Form of Legend for Regulation S Temporary Global Notes	
 	

D
	

Exhibit E	
 	

—	
 	

Form of Certificate to be Delivered in Connection with Transfers to Non-QIB Accredited Investors	
 	

E-1
	

Exhibit F	
 	

—	
 	

Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S	
 	

F

NOTE:
This Table of Contents shall not, for any purpose, be deemed to be part of this Indenture. 

*    Form
of exhibits available upon request from the Company. 

iv

   
        INDENTURE, dated as of February 8, 2006, among Altra Industrial Motion, Inc., a Delaware corporation (the "Company"), the
Guarantors (as herein defined), The Bank of New York, as Trustee and Principal Paying Agent and The Bank of New York (Luxembourg) S.A., as Luxembourg Paying Agent. 

WITNESSETH:  

        WHEREAS, the Company and the Guarantors (with respect to the Guarantees) have duly authorized the creation of the Notes and, to provide therefor, the Company and
the Guarantors have duly authorized the execution and delivery of this Indenture; and 

        WHEREAS,
all things necessary to make the Notes, when duly issued and executed by the Company, and authenticated and delivered hereunder, the valid obligations of the Company, and to
make this Indenture a valid and binding agreement of each of the Company and the Guarantors, have been done. 

        NOW,
THEREFORE, each party hereto agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders: 

ARTICLE ONE  

DEFINITIONS AND INCORPORATION BY REFERENCE  

        Section 1.01 Definitions. 

        "144A Global Notes" has the meaning set forth in Section 2.01. 

        "Acceleration Notice" has the meaning set forth in Section 6.02(a). 

        "Acquired Indebtedness" means Indebtedness of a Person or any of its Subsidiaries: 

        (a)   (i) existing
at the time such Person becomes a Restricted Subsidiary or at the time it merges or consolidates with or into the Company or any of its Restricted
Subsidiaries or assumed in connection with the acquisition of assets from such Person or (ii) incurred by such Person in connection with, or in anticipation or contemplation of, such Person
becoming a Restricted Subsidiary upon the consummation of the acquisition of all or substantially all of the assets or all of the Capital Stock of such Person by the Company or any of its Restricted
Subsidiaries; and 

        (b)   that
is without recourse to the Company or any of its Subsidiaries or to any of their respective properties or assets other than the Person or the assets to which such
Indebtedness relates. 

        "Additional Interest" has the meaning set forth in the Registration Rights Agreement. 

        "Additional Notes" means all Notes issued after the Issue Date (other than pursuant to Sections
2.06, 2.07, 2.10 and 3.06 of
this Indenture and other than Exchange Notes) from time to time in accordance with the terms of this Indenture, including, without limitation,  Section 2.02. 

        "Administrative Agent" has the meaning set forth in the definition of the term "Credit Agreement." 

        "Affiliate" means, with respect to any specified Person, any other Person who directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified Person. The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; provided, that Beneficial
Ownership of 10% or more of the Voting Stock of any Person shall be deemed to be control of such Person. The terms "controlling" and "controlled" have meanings correlative of the foregoing. 

1

 

        "Affiliate Transaction" has the meaning set forth in Section 4.14. 

        "Agent" means any Registrar, Paying Agent or co-Registrar. 

        "Agent Members" has the meaning set forth in Section 2.14(a) and means, with
respect to the Common Depository, Euroclear or Clearstream, a Person who has an account with the Common Depository, Euroclear or Clearstream, respectively (and with respect to the Common Depository,
shall include Euroclear and Clearstream). 

        "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 Common Depository, Euroclear and Clearstream that apply to such transfer or exchange. 

        "Asset Acquisition" means: 

        (1)   an
Investment by the Company or any Restricted Subsidiary in any Person (other than a Subsidiary) pursuant to which such Person becomes a Wholly Owned Subsidiary, or is
merged with or into the Company or any Restricted Subsidiary, or 

        (2)   the
acquisition by the Company or any Restricted Subsidiary of the assets of any Person (other than a Subsidiary) that constitute all or substantially all of the assets
of such Person or comprise any division or line of business of such Person. 

        "Asset Sale" means any direct or indirect sale, issuance, conveyance, transfer, lease (other than operating leases entered into in the
ordinary course of business, consistent with past practice), assignment or other transfer of: 

        (1)   any
Capital Stock of any Restricted Subsidiary; or 

        (2)   any
other property or assets of the Company or any Restricted Subsidiary other than in the ordinary course of business, consistent with past practice; 

        provided, that Asset Sales shall not include: 

        (c)   a
transaction or series of related transactions for which the Company or its Restricted Subsidiaries receive aggregate consideration of less than $2.5 million; 

        (d)   the
transfer of all or substantially all of the assets of the Company as permitted under Section 5.01; 

        (e)   any
Restricted Payment permitted under Section 4.09, or any Permitted Investment; 

        (f)    the
sale of Cash Equivalents; 

        (g)   the
creation of a Permitted Lien (but not the sale or other disposition of the property subject to such Lien); and 

        (h)   a
transfer to the Company or to a Guarantor. 

        "Authenticating Agent" has the meaning set forth in Section 2.02. 

        "Bankruptcy Code" means the United States Bankruptcy Reform Act of 1978, as amended, and codified as 11 U.S.C.
§§101 et seq. 

        "Beneficial Owner" has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the
Exchange Act, except that in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange Act), such "person" will be deemed to have
beneficial ownership of all securities that such "person" has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only
upon the occurrence 

2

 

of
a subsequent condition. The terms "Beneficially Owns," "Beneficially Owned" and "Beneficial Ownership" have meanings correlative to the foregoing. 

        "Board of Directors" means, as to any Person, the board of directors or similar governing body of such Person or any duly authorized
committee thereof. 

        "Board Resolution" means, with respect to any Person, a copy of a resolution certified by the Secretary or an Assistant Secretary of such
Person to have been duly adopted by the Board of Directors of such Person and to be in full force and effect on the date of such certification, and delivered to the Trustee. 

        "Business Day" means a day that is not a Legal Holiday. 

        "Capital Stock" means: 

        (1)   with
respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of
corporate stock, including each class of Common Stock and Preferred Stock of such Person; 

        (2)   with
respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person; and 

        (3)   any
warrants, rights or options to purchase any of the instruments or interests referred to in clauses (1) or  (2) above. 

        "Capitalized Lease Obligation" means, as to any Person, the obligations of such Person under a lease that are required to be classified
and accounted for as capital lease obligations under GAAP and, for purposes of this definition, the amount of such obligations at any date shall be the capitalized amount of such obligations at such
date, determined in accordance with GAAP. 

        "Cash Equivalents" means: 

        (4)   marketable
direct obligations issued by, or unconditionally guaranteed by, the United States Government or issued by any agency thereof and backed by the full faith and
credit of the United States, in each case maturing within one year from the date of acquisition thereof; 

        (5)   marketable
direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either S&P or Moody's; 

        (6)   commercial
paper maturing no more than one year from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P
or at least P-1 from Moody's; 

        (7)   certificates
of deposit or bankers' acceptances maturing within one year from the date of acquisition thereof issued by any bank organized under the laws of the United
States of America or any state thereof or the District of Columbia or any U.S. branch of a foreign bank having at the date of acquisition thereof combined net capital and surplus of not less than
$250.0 million; 

        (8)   repurchase
obligations with a term of not more than seven days for underlying securities of the types described in  clause (1) above entered into with any bank meeting the qualifications specified in 
clause (4) above; and 

        (9)   investments
in money market funds which invest substantially all their assets in securities of the types described in clauses
(1) through (5) above. 

3

 

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

        (10) any
direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one transaction or a series of related
transactions, of all or substantially all of the assets of the Company to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act (a
"Group"), other than a transaction in which the transferee is controlled by one or more Permitted Holders; 

        (11) the
Company consolidates with, or merges with or into, any Person, or any Person consolidates with, or merges with or into, the Company, other than (A) a
transaction in which the surviving or Transferee Person is a Person that is controlled by the Permitted Holders or (B) any such transaction where the Voting Stock of the Company outstanding
immediately prior to such transaction is converted into or exchanged for Voting Stock (other than Disqualified Capital Stock) of the surviving or transferee Person constituting a majority of the
outstanding shares of such Voting Stock of such surviving or transferee Person (immediately after giving effect to such issuance); 

        (12) the
approval by the holders of Capital Stock of the Company of any plan or proposal for the liquidation, winding up or dissolution of the Company; 

        (13) prior
to the first Public Equity Offering, the Permitted Holders cease for any reason to be the Beneficial Owner, directly or indirectly, in the aggregate of at least a
majority of the total voting power of the Voting Stock of the Company, whether by virtue of the issuance, sale or other disposition of Capital Stock of the Company, a merger, consolidation or sale of
assets involving the Company, a Restricted Subsidiary, any voting trust or other agreement; or 

        (14) subsequent
to the first Public Equity Offering, (a) any Person or Group is or becomes the Beneficial Owner, directly or indirectly, in the aggregate of more than
35% of the total voting power of the Voting Stock of the Company, and (b) the Permitted Holders Beneficially Own, directly or indirectly, in the aggregate a lesser percentage of the total
voting power of the Voting Stock of the Company than such other Person or Group. 

        "Change of Control Offer" has the meaning set forth in Section 4.19. 

        "Change of Control Payment Date" has its meaning set forth in Section 4.19. 

        "Clearstream" means Clearstream Banking, societe anonyme. 

        "Common Depository" means the common depository to Euroclear and Clearstream or their nominee, being initially The Bank of New York
Depository Nominee Limited, until a successor Common Depository, if any, shall have become such pursuant to this Indenture, and thereafter Common Depository shall mean or include each Person who is
then a Common Depository hereunder. 

        "Common Stock" of any Person means any and all shares, interests or other participations in, and other equivalents (however designated and
whether voting or non-voting) of such Person's common stock, whether outstanding on the Issue Date or issued after the Issue Date, and includes, without limitation, all series and classes
of such common stock. 

        "Company" has the meaning set forth in the preamble to this Indenture. 

        "Consolidated EBITDA" means, for any period, the sum (without duplication) of: 

        (15) Consolidated
Net Income; and 

        (16) to
the extent Consolidated Net Income has been reduced thereby: 

	(i)
	all
income taxes paid or accrued in accordance with GAAP for such period; 

4

 

	(j)
	Consolidated
Interest Expense and interest attributable to write-offs of deferred financing costs; and

	(k)
	Consolidated
Non-cash Charges less any non-cash items increasing Consolidated Net Income for such period, 

all
as determined on a consolidated basis in accordance with GAAP. 

        "Consolidated Fixed Charge Coverage Ratio" means the ratio of Consolidated EBITDA during the four consecutive full fiscal quarters (the
"Four Quarter Period") most recently ending on or prior to the date of the transaction or event giving rise to the need to calculate the Consolidated
Fixed Charge Coverage Ratio for which financial statements are available (the "Transaction Date") to Consolidated Fixed Charges for the Four Quarter
Period. 

        For
purposes of this definition, "Consolidated EBITDA" and "Consolidated Fixed Charges" shall be calculated after giving effect on a pro forma basis for the period of such calculation
to: 

        (1)   the
incurrence or repayment of any Indebtedness of the Company or any of its Restricted Subsidiaries (and the application of the proceeds thereof) giving rise to the
need to make such calculation and any incurrence or repayment of other Indebtedness (and the application of the proceeds thereof), other than the incurrence or repayment of Indebtedness in the
ordinary course of business for working capital purposes pursuant to working capital facilities, occurring during the Four Quarter Period or at any time subsequent to the last day of the Four Quarter
Period and on or prior to the Transaction Date, as if such incurrence or repayment, as the case may be (and the application of the proceeds thereof), occurred on the first day of the Four Quarter
Period; and 

        (2)   any
Asset Sale or Asset Acquisition (including, without limitation, any Asset 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 who becomes a Restricted Subsidiary as a result of any such Asset Acquisition) incurring, assuming or otherwise being liable for Acquired
Indebtedness during the Four Quarter Period or at any time subsequent to the last day of the Four Quarter Period and on or prior to the Transaction Date), as if such Asset Sale or Asset Acquisition
(including the incurrence, assumption or liability for any such Indebtedness or Acquired Indebtedness and also including any Consolidated EBITDA associated with such Asset Acquisition) occurred on the
first day of the Four Quarter Period. 

        Furthermore,
in calculating "Consolidated Fixed Charges" for purposes of determining the denominator (but not the numerator) of this "Consolidated Fixed Charge Coverage Ratio": 

        (3)   interest
on outstanding Indebtedness determined on a fluctuating basis as of the Transaction Date (including Indebtedness actually incurred on the Transaction Date) and
which will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on the Transaction Date; and 

        (4)   notwithstanding  clause (1) above, interest on Indebtedness determined on a fluctuating basis, to the extent such
interest is covered by agreements relating to Interest Swap Obligations, shall be deemed to accrue at the rate per annum resulting after giving effect to the operation of such agreements. 

        "Consolidated Fixed Charges" means, with respect to any Person for any period, the sum, without duplication, of: 

        (5)   Consolidated
Interest Expense (excluding amortization or write-off of deferred financing costs); plus

        (6)   the
product of (x) the amount of all dividend payments on any series of Preferred Stock of such Person (other than dividends paid in Qualified Capital Stock)
paid, accrued or scheduled 

5

 

to
be paid or accrued during such period times (y) a fraction, the numerator of which is one and the denominator of which is one minus the then
current effective consolidated federal, state and local tax rate of such Person, expressed as a decimal. 

        "Consolidated Interest Expense" means, with respect to any Person for any period, the aggregate of the interest expense of such Person and
its consolidated Subsidiaries for such period, on a consolidated basis, as determined in accordance with GAAP, and including, without duplication, (a) all amortization or accretion of original
issue discount; (b) the interest component of Capitalized Lease Obligations paid, accrued and/or scheduled to be paid or accrued by such Person and its Restricted Subsidiaries during such
period; and (c) net cash costs under all Interest Swap Obligations (including amortization of fees). 

        "Consolidated Net Income" means, for any period, the aggregate net income (or loss) of the Company and its Restricted Subsidiaries for
such period on a consolidated basis, determined in accordance with GAAP; provided, that there shall be excluded therefrom (to the extent otherwise
included therein): 

        (7)   gains
from Asset Sales and extraordinary gains, in each case together with any provision for taxes on such gains; 

        (8)   the
net income (but not loss) of any Subsidiary of the Company to the extent that the declaration of dividends or similar distributions by that Subsidiary of that income
is restricted by a contract, operation of law or otherwise; 

        (9)   the
net income (but not loss) of any Person, other than the Company or a Restricted Subsidiary, except to the extent of cash dividends or distributions paid to the
Company or to a Restricted Subsidiary by such Person; 

        (10) any
restoration to income of any material contingency reserve, except to the extent that provision for such reserve was made out of Consolidated Net Income accrued at
any time following the Issue Date; 

        (11) income
or loss attributable to discontinued operations (including, without limitation, operations disposed of during such period whether or not such operations were
classified as discontinued); 

        (12) all
gains realized on or because of the purchase or other acquisition by the Company or any of its Restricted Subsidiaries of any securities of such Person or any of
its Restricted Subsidiaries; 

        (13) the
cumulative effect of a change in accounting principles; and 

        (14) in
the case of a successor to the Company by consolidation or merger or as a transferee of the Company's assets, any earnings of the successor corporation prior to such
consolidation, merger or transfer of assets. 

        "Consolidated Non-cash Charges" means, with respect to any Person, for any period, the aggregate depreciation, amortization
and other non-cash items and expenses of such Person and its consolidated Subsidiaries to the extent they reduce Consolidated Net Income of such Person for such period, determined on a
consolidated basis in accordance with GAAP (excluding any such charges constituting an extraordinary item or loss or any such charge that requires an accrual of or a reserve for cash charges for any
future period). 

6

   
        "Corporate Trust Office" means (a) with respect to the Trustee, the office of The Bank of New York at which the trust created by
this Indenture shall, at any particular time, be principally administered, which office is, at the date of this Indenture, located at 101 Barclay Street, 21W, New York, NY 10286 or (b) such
other location located in the Borough of Manhattan in the City of New York, New York that is specified in writing by the Trustee for purposes of this Indenture. 

        "Covenant Defeasance" has the meaning set forth in Section 8.01(c). 

        "Credit Agreement" means the Credit Agreement, dated as of November 30, 2004, among the Company and the lenders party thereto
(together with their successors and assigns, the "Lenders") and Wells Fargo Foothill, Inc., as administrative agent (in such capacity, together
with its successors and assigns, the "Administrative Agent"), together with the related documents thereto (including, without limitation, any guarantee
agreements and security documents), or any agreement extending the maturity of, refinancing, replacing, refunding, restating or otherwise restructuring (whether upon or at any time or from time to
time after termination or otherwise) all or any portion of the Indebtedness under such agreement or document or any successor or replacement agreement or document and whether by the same or any other
agent, lender or group of lenders, or institutional investors, providing for revolving credit loans, term loans, letters of credit or issuance of notes or any other debt, in each of the above cases as
such agreements may be amended, supplemented or otherwise modified from time to time. 

        "Currency Agreement" means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement designed to
protect the Company or any Restricted Subsidiary against fluctuations in currency values. 

        "Custodian" means any receiver, trustee, assignee, liquidator, sequestrator or similar official under the Bankruptcy Code or any other
state or federal bankruptcy or insolvency law. 

        "Default" means an event or condition the occurrence of which is, or with the lapse of time or the giving of notice or both would be, an
Event of Default. 

        "Deferred Cash" has the meaning set forth in Section 4.21. 

        "Disqualified Capital Stock" with respect to any Person means that portion of any Capital Stock of such Person which, by its terms (or by
the terms of any security into which it is convertible or for which it is exchangeable at the option of the holder thereof), or upon the happening of any event (other than an event that would
constitute a Change of Control), matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the sole option of the holder thereof (except in each
case, upon the occurrence of a Change of Control) on or prior to the first anniversary of the final maturity date of the Notes for cash or is convertible into or exchangeable for debt securities of
the Company or its Subsidiaries at any time prior to such anniversary. 

        "Distribution Compliance Period" means the 40-day distribution compliance period as defined in Regulation S. 

        "Domestic Restricted Subsidiary" means, with respect to any Person, a Domestic Subsidiary of such Person that is a Restricted Subsidiary
of such Person. 

        "Domestic Subsidiary" means, with respect to any Person, a Subsidiary of such Person that is not a Foreign Subsidiary of such Person. 

        "Equity Offering" means an underwritten public offering of Common Stock of the Company or any holding company of the Company (including
Holdings) pursuant to a registration statement filed with the SEC (other than on Form S-8) or any private placement of Common Stock of the Company or any holding company of the
Company (including Holdings) to any Person other than issuances upon exercise of options by employees of any holding company, the Company or any of the Restricted Subsidiaries. 

7

 

        "Euroclear" means Euroclear Bank S.A./N.V., as operator of the Euroclear system. 

        "Event of Default" has the meaning set forth in Section 6.01. 

        "Exchange Act" means the United States Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto. 

        "Exchange Notes" means Notes issued in exchange for the Initial Notes or Additional Notes pursuant to the terms of the Registration Rights
Agreement. 

        "Exchange Offer" means an exchange offer that may be made by the Company, pursuant to the Registration Rights Agreement, to exchange for
any and all the Notes a like aggregate principal amount of Notes having substantially identical terms to the Notes registered under the Securities Act. 

        "Fair Market Value" means, with respect to any asset or property, the price which could be negotiated in an arm's length, free market
transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the transaction. Fair Market Value shall be determined
by the Board of Directors of the Company acting in good faith and shall be evidenced by a Board Resolution. 

        "Foreign Restricted Subsidiary" means any Restricted Subsidiary that is organized under the laws of any jurisdiction other than the United
States of America, any state thereof or the District of Columbia. 

        "Foreign Subsidiary" means, with respect to any Person, any Subsidiary of such Person that is organized under the laws of any jurisdiction
other than the United States of America, any state thereof or the District of Columbia. 

        "Four Quarter Period" has the meaning set forth in the definition of "Consolidated Fixed Charge Coverage
Ratio." 

        "GAAP" means accounting principles generally accepted in the United States set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other
entity as may be approved by a significant segment of the accounting profession of the United States, which are in effect from time to time. 

        "Global Notes" means, collectively, the 144A Global Notes, the IAI Global Notes, the Regulation S Permanent Global Notes and the
Regulation S Temporary Global Notes. 

        "Government Obligations" means any direct obligations of, or obligations guaranteed by the United Kingdom (or any agency or
instrumentality thereof) for the payment of which, guarantee or obligation the full faith and credit of such government is pledged. 

        "Group" has the meaning set forth in the definition of the term "Change of Control." 

        "Guarantee" has the meaning set forth in Section 10.01. 

        "Guarantor" means (1) each of the Company's Domestic Restricted Subsidiaries existing on the Issue Date and (2) each of the
Company's Domestic Restricted Subsidiaries that in the future executes a supplemental indenture in which such Domestic Restricted Subsidiary agrees to be bound by the terms of this Indenture as a
Guarantor; provided that any Person constituting a Guarantor as described above shall cease to constitute a Guarantor when its respective Guarantee is
released in accordance with the terms of this Indenture. 

        "Hay Hall Acquisition" has the meaning set forth in Section 4.21. 

        "Holder" means the Person in whose name a Note is registered on the Registrar's books. 

        "Holdings" means Altra Holdings, Inc. 

8

 

        "IAI Global Notes" has the meaning set forth in Section 2.01. 

        "incur" has the meaning set forth in Section 4.08. 

        "Indebtedness" means with respect to any Person, without duplication: 

        (15) all
Obligations of such Person for borrowed money; 

        (16) all
Obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; 

        (17) all
Capitalized Lease Obligations of such Person; 

        (18) all
Obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations and all Obligations under any title
retention agreement (but excluding trade accounts payable and other accrued liabilities arising in the ordinary course of business, consistent with past practice, that are not overdue by
90 days or more or are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted and any deferred purchase price represented by earn outs consistent
with the Company's past practice); 

        (19) all
Obligations for the reimbursement of any obligor on any letter of credit, banker's acceptance or similar credit transaction, whether or not then due; 

        (20) guarantees
and other contingent obligations in respect of Indebtedness referred to in clauses (1) through  (5) above and clause (8)
 below; 

        (21) all
Obligations of any other Person of the type referred to in clauses (1) through  (6) which are secured by any Lien on any property or asset of such Person,
the amount of any such Obligation being deemed to be the lesser of the Fair
Market Value of the property or asset securing such Obligation or the amount of such Obligation; 

        (22) all
Interest Swap Obligations and all Obligations under Currency Agreements of such Person; and 

        (23) all
Disqualified Capital Stock issued by such Person with the amount of Indebtedness represented by such Disqualified Capital Stock being equal to the greater of its
voluntary or involuntary liquidation preference and its maximum fixed repurchase price, but excluding accrued dividends, if any. 

        For
purposes hereof, the "maximum fixed repurchase price" of any Disqualified Capital Stock which does not have a fixed repurchase price
shall be calculated in accordance with the terms of such Disqualified Capital Stock as if such Disqualified Capital Stock were purchased 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 of such Disqualified Capital Stock, such Fair Market Value shall be determined reasonably
and in good faith by the board of directors of the issuer of such Disqualified Capital Stock. 

        "Indemnified Party" has the meaning set forth in Section 7.07. 

        "Indenture" means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof. 

        "Indenture Documents" means, collectively, this Indenture, the Notes, and the Guarantees. 

        "Independent Financial Advisor" means a nationally recognized accounting, appraisal or investment banking firm: (1) that does not,
and whose directors, officers and employees or Affiliates do not, have a direct or indirect financial interest in the Company; and (2) that, in the judgment of the Board of 

9

 

Directors
of the Company, is otherwise independent and qualified to perform the task for which it is to be engaged. 

        "Initial Notes" means the 111/4% Senior Notes due 2013 issued on the Issue Date. 

        "Initial Purchasers" means Jefferies & Company, Inc. and Jefferies International Limited. 

        "Institutional Accredited Investor" means an institution that is an "accredited investor" as that term is defined in
Rule 501(a)(1), (2), (3) or (7) under the Securities Act. 

        "Interest Payment Date" means February 15 and August 15 of each year, commencing August 15, 2006. 

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

        "Investment" in any Person means any direct or indirect advance, loan (other than advances to customers in the ordinary course of
business, consistent with past practice, that are required to be recorded in accordance with GAAP as accounts receivable on the balance sheet of the lender) or other extensions of credit (including by
way of guarantee or similar arrangement) or capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of
others), or any purchase or acquisition for value of Capital Stock,
Indebtedness or other similar instruments issued by such Person. If the Company or any Restricted Subsidiary issues, sells or otherwise disposes of any Capital Stock of a Person that is a Restricted
Subsidiary such that, after giving effect thereto, such Person is no longer a Restricted Subsidiary, any Investment by the Company or any Restricted Subsidiary in such Person remaining after giving
effect thereto will be deemed to be a new Investment at such time. The acquisition by the Company or any Restricted Subsidiary of a Person that holds an Investment in a third Person will be deemed to
be an Investment by the Company or such Restricted Subsidiary in such third Person at such time. Except as otherwise provided for herein, the amount of an Investment shall be its fair market value at
the time the Investment is made and without giving effect to subsequent changes in value. 

        For
purposes of the definition of "Unrestricted Subsidiary," the definition of "Restricted
Payment" and Section 4.09: 

	(ii)
	"Investment" shall include the portion (proportionate to the Company's equity interest in such Subsidiary) of the Fair
Market Value of the net assets of any Subsidiary of the Company at the time that such Subsidiary is designated an Unrestricted Subsidiary; provided,  however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company shall be deemed to continue to have a permanent
"Investment" in an Unrestricted Subsidiary equal to an amount (if positive) equal to (A) the Company's "Investment" in such Subsidiary at the time of such redesignation less (B) the
portion (proportionate to the Company's equity interest in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time of such redesignation; and

	(iii)
	any
property transferred to or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of such transfer, in each case as determined in
good faith by the Board of Directors of the Company. 

        "Issue Date" means February 8, 2006. 

        "Legal Defeasance" has the meaning set forth in Section 8.01(b). 

10

 

        "Legal Holiday" has the meaning set forth in Section 11.07. 

        "Lenders" has the meaning set forth in the definition of the term "Credit Agreement." 

        "Lien" means any lien, mortgage, deed of trust, pledge, security interest, charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof and any agreement to give any security interest). 

        "Loan Notes" has the meaning set forth in Section 4.21. 

        "Luxembourg Paying Agent" has the meaning set forth in Section 2.03. 

        "Management Agreement" means the Advisory Services Agreement, dated as of November 30, 2004, by and among the Company, Holdings and
Genstar Capital, L.P. 

        "Maturity Date" means February 15, 2013. 

        "Moody's" means Moody's Investors Service, Inc. 

        "Net Cash Proceeds" means, with respect to any Asset Sale, the proceeds in the form of cash or Cash Equivalents including payments in
respect of deferred payment obligations when received in the form of cash or Cash Equivalents (other than the portion of any such deferred payment constituting interest) received by the Company or any
of its Restricted Subsidiaries from such Asset Sale net of: 

        (1)   reasonable
out-of-pocket expenses and fees relating to such Asset Sale (including, without limitation, legal, accounting and investment banking
fees and sales commissions); 

        (2)   all
taxes and other costs and expenses actually paid or estimated by the Company (in good faith) to be payable in cash in connection with such Asset Sale; 

        (3)   repayment
of Indebtedness that is secured by the property or assets that are the subject of such Asset Sale and is required to be repaid in connection with such Asset
Sale; and 

        (4)   appropriate
amounts to be provided by the Company or any Restricted Subsidiary, as the case may be, as a reserve, in accordance with GAAP, against any liabilities
associated with such Asset Sale and retained by the Company or any Restricted Subsidiary, as the case may be, after 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; 

provided, however, that if, after the payment of all taxes with respect to such Asset Sale, the amount of estimated taxes, if any, pursuant to  clause (2)
above exceeded the tax amount actually paid in cash in respect of such Asset Sale, the aggregate amount of such excess shall, at such
time, constitute Net Cash Proceeds. 

        "Net Proceeds Offer" has the meaning set forth in Section 4.10. 

        "Net Proceeds Offer Amount" has the meaning set forth in Section 4.10. 

        "Net Proceeds Offer Payment Date" has the meaning set forth in Section 4.10. 

        "Net Proceeds Offer Trigger Date" has the meaning set forth in Section 4.10. 

        "Non-U.S. Person" means a Person who is not a U.S. person, as defined in Regulation S. 

        "Notes" means, collectively, the Initial Notes, the Additional Notes and the Exchange Notes. 

        "Obligations" means all obligations for principal, premium, interest, Additional Interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness. 

11

 

        "Offering Circular" means the Offering Circular, dated February 3, 2006, relating to the offering of the Initial Notes. 

        "Officer" means the Chief Executive Officer, the President, the Chief Financial Officer or any Vice President of the Company. 

        "Officers' Certificate" means a certificate signed by two Officers of the Company, at least one of whom shall be the principal financial
officer of the Company, and delivered to the Trustee. 

        "Opinion of Counsel" means a written opinion of counsel who shall be reasonably acceptable to the Trustee complying with the requirements
of Sections 11.04 and 11.05, as they relate to the giving of an Opinion of Counsel. 

        "Paying Agent" has the meaning set forth in Section 2.03. 

        "Permitted Affiliate Transaction" had the meaning set forth in Section 4.14.

        "Permitted Business" means any business that is the same as or similar, reasonably related, complementary or incidental to the business in
which the Company and its Restricted Subsidiaries are engaged on the Issue Date. 

        "Permitted Holders" means Genstar Capital, L.P. and its Affiliates. 

        "Permitted Indebtedness" means, without duplication, each of the following: 

        (5)   Indebtedness
under the Notes issued on the Issued Date or in the Exchange Offer, in an aggregate outstanding principal amount not to exceed
£33.0 million, and the related Guarantees; 

        (6)   Indebtedness
incurred pursuant to the Credit Agreement in an aggregate principal amount at any time outstanding not to exceed $30.0 million, as such amount may be
reduced from time to time as a result of permanent reductions of the commitments thereunder as provided in Section 4.10; 

        (7)   other
Indebtedness of the Company and its Restricted Subsidiaries outstanding on the Issue Date; 

        (8)   Interest
Swap Obligations of the Company or any Restricted Subsidiary of the Company covering Indebtedness of the Company or any of its Restricted Subsidiaries;  provided, however, that such Interest Swap
Obligations are entered into for the purpose of fixing or hedging interest rates with respect to any fixed or
variable rate Indebtedness that is permitted by this Indenture to be outstanding to the extent that the notional amount of any such Interest Swap Obligation does not exceed the principal amount of
Indebtedness to which such Interest Swap Obligation relates; 

        (9)   Indebtedness
under Currency Agreements; provided that in the case of Currency Agreements which relate to Indebtedness,
such Currency Agreements do not increase the Indebtedness of the Company and its Restricted Subsidiaries outstanding other than as a result of fluctuations in foreign currency exchange rates or by
reason of fees, indemnities and compensation payable thereunder; 

        (10) intercompany
Indebtedness of the Company or a Guarantor for so long as such Indebtedness is held by the Company or a Guarantor; provided that if as of any date any
other Person owns or holds any such Indebtedness or a Lien in respect of such Indebtedness, such date shall be deemed the incurrence of Indebtedness not constituting Permitted Indebtedness under this  clause (6)
 by the issuer of such Indebtedness; 

        (11) Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn 

12

 

against
insufficient funds in the ordinary course of business, consistent with past practice; provided, that such Indebtedness is extinguished within three Business Days of incurrence; 

        (12) Indebtedness
of the Company or any of its Restricted Subsidiaries represented by letters of credit for the account of the Company or such Restricted Subsidiary, as the
case may be, to provide security for workers' compensation claims, payment obligations in connection with self-insurance or similar requirements in the ordinary course of business,
consistent with past practice; 

        (13) obligations
in respect of performance, bid and surety bonds and completion guarantees provided by the Company or any Restricted Subsidiary in the ordinary course of
business, consistent with past practice; 

        (14) Indebtedness
represented by Capitalized Lease Obligations and Purchase Money Indebtedness incurred in the ordinary course of business, consistent with past practice
(including Refinancings thereof that do not result in an increase in the aggregate principal amount of Indebtedness of such Person as of the date of such proposed Refinancing (plus the amount of any
premium required to be paid under the terms of the instrument governing such Indebtedness and plus the amount of
reasonable expenses incurred by the Company in connection with such Refinancing)) not to exceed $5.0 million at any time outstanding; 

        (15) Refinancing
Indebtedness; 

        (16) Indebtedness
represented by guarantees by the Company or a Restricted Subsidiary of Indebtedness incurred by the Company or a Restricted Subsidiary so long as the
incurrence of such Indebtedness by the Company or any such Restricted Subsidiary is otherwise permitted by the terms of this Indenture; 

        (17) Indebtedness
of the Company or any of its Restricted Subsidiaries to the extent the net proceeds thereof are promptly used to redeem the Notes in full or deposited to
defease or discharge the Notes, in each case, in accordance with this Indenture; 

        (18) additional
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate principal amount not to exceed $15.0 million at any time outstanding; and 

        (19) Indebtedness
under the Senior Secured Notes issued on November 30, 2004 or in the exchange offer related thereto in an aggregate principal amount not to exceed
$165.0 million. 

        For
purposes of determining compliance with Section 4.08, (a) the outstanding principal amount of any item of Indebtedness
shall be counted only once and (b) in the event that an item of Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness described in  clauses (1) through
(15) above or is entitled to be incurred pursuant to  Section 4.08, the Company shall, in its sole discretion, classify (or later reclassify) such item
of Indebtedness in any manner that complies
with Section 4.08. 

        "Permitted Investments" means: 

        (20) Investments
in any Person that is or will become immediately after such Investment a Guarantor or that will merge or consolidate with or into the Company or a
Guarantor, or that transfers or conveys all or substantially all of its assets to the Company or a Guarantor; 

        (21) Investments
in the Company by any Restricted Subsidiary; provided that any Indebtedness evidencing such Investment is
unsecured and subordinated, pursuant to a written agreement, to the Company's Obligations under the Notes and this Indenture; 

        (22) Investments
in cash and Cash Equivalents; 

13

  

        (23) Currency
Agreements and Interest Swap Obligations entered into in the ordinary course of the Company's or its Restricted Subsidiaries' businesses, consistent with past
practice, and otherwise in compliance with this Indenture; 

        (24) Investments
in the Notes or the Senior Secured Notes; 

        (25) Investments
in securities of trade creditors or customers received pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of
such trade creditors or customers in exchange for claims against such trade creditors or customers; 

        (26) Investments
as a result of non-cash consideration received in connection with an Asset Sale made in compliance with  Section 4.10; 

        (27) Investments
in existence on the Issue Date; 

        (28) loans
and advances, including advances for travel and moving expenses, to employees, officers and directors of the Company and its Restricted Subsidiaries in the
ordinary course of business, consistent with past practice, for bona fide business purposes and in accordance with applicable laws not in excess of $500,000 at any one time outstanding; and 

        (29) advances
to suppliers and customers in the ordinary course of business, consistent with past practice. 

        "Permitted Liens" means the following types of Liens: 

        (30) Liens
(other than Liens arising under ERISA) for taxes, assessments or governmental charges or claims either (a) not delinquent or (b) contested in good
faith by appropriate proceedings and as to which the Company or its Restricted Subsidiaries shall have set aside on its books such reserves as may be required pursuant to GAAP; 

        (31) statutory
Liens of landlords and Liens of carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and other Liens imposed by law or pursuant to customary
reservations or retentions of title incurred in the ordinary course of business, consistent with past practice, for sums not yet delinquent or being contested in good faith, if such reserve or other
appropriate provision, if any, as shall be required by GAAP shall have been made in respect thereof; 

        (32) Liens
incurred or deposits made in the ordinary course of business, consistent with past practice, in connection with workers' compensation, unemployment insurance and
other types of social security, including any Lien securing letters of credit issued in the ordinary course of business, consistent with past practice, in connection therewith, or to secure the
performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money); 

        (33) easements,
rights-of-way, zoning restrictions and other similar charges or encumbrances in respect of real property not interfering in any
material respect with the ordinary conduct of the business, consistent with past practice, of the Company or any of its Restricted Subsidiaries; 

        (34) any
interest or title of a lessor under any Capitalized Lease Obligation permitted pursuant to clause (10) of the
definition of "Permitted Indebtedness;" provided that such Liens do not extend to any property or assets which is not leased property subject to such
Capitalized Lease Obligation; 

        (35) Liens
securing Purchase Money Indebtedness permitted pursuant to clause (10) of the definition of "Permitted
Indebtedness;" provided, that (a) the Indebtedness shall not exceed the cost of the property or assets acquired, together, in the case of real
property, with the cost of the construction thereof and improvements thereto, and shall not be secured by a Lien on any 

14

 

property
or assets of the Company or any Restricted Subsidiary other than such property or assets so acquired or constructed and improvements thereto and (b) the Lien securing such Indebtedness
shall be created within 180 days of such acquisition or construction or, in the case of a refinancing of any Purchase Money Indebtedness, within 180 days of such refinancing; 

        (36) Liens
upon specific items of inventory or other goods and proceeds of any Person securing such Person's obligations in respect of bankers' acceptances issued or created
for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods; 

        (37) Liens
securing reimbursement obligations with respect to commercial letters of credit which encumber documents and other property relating to such letters of credit and
products and proceeds thereof; 

        (38) Liens
encumbering deposits made to secure obligations arising from statutory, regulatory, contractual, or warranty requirements of the Company or any of its Restricted
Subsidiaries, including rights of offset and set-off; 

        (39) Liens
securing Interest Swap Obligations that relate to Indebtedness that is otherwise permitted under this Indenture; 

        (40) Liens
securing Indebtedness under Currency Agreements that are permitted under this Indenture; 

        (41) judgment
Liens not giving rise to an Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings which may have been duly initiated
for the review of such judgment shall not have been finally terminated or the period within such proceedings may be initiated shall not have expired; 

        (42) Liens
securing Acquired Indebtedness incurred in accordance with Section 4.08, provided, that such Liens do not
extend to or cover any property or assets of the Company or of any of its Restricted Subsidiaries other than the property or assets that secure the Acquired Indebtedness; 

        (43) Liens
securing Indebtedness, accrued interest or other Obligations, if any, pursuant to the Senior Secured Notes and the guarantees thereon to the extent such Liens are
permitted under the Senior Secured Notes Indenture as in effect on the Issue Date; 

        (44) Liens
securing Indebtedness under the Credit Agreement to the extent such Indebtedness is permitted under  clause (2) of the definition of the term "Permitted Indebtedness;" and 

        (45) Liens
securing Refinancing Indebtedness incurred to Refinance any Indebtedness secured by a Lien permitted under this paragraph and incurred in accordance with  Section 4.08; provided, that such Liens: (i) are no less favorable to the Holders and are
not more favorable to the lienholders with respect to such Liens than the Liens in respect of the Indebtedness being Refinanced; and (ii) do not extend to or cover any property or assets of the
Company or any of its Restricted Subsidiaries not securing the Indebtedness so Refinanced. 

        "Person" means an individual, partnership, corporation, limited liability company, unincorporated organization, trust or joint venture, or
a governmental agency or political subdivision thereof. 

        "Physical Notes" has the meaning set forth in Section 2.14(b). 

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

        "Principal Paying Agent" has the meaning set forth in Section 2.03. 

15

 

        "Private Placement Legend" means the legend set forth on the Initial Notes in the form set forth in  Exhibit A. 

        "Public Equity Offering" means an underwritten public offering of Common Stock of the Company or any holding company of the Company
pursuant to a registration statement filed with the SEC (other than on Form S-8). 

        "Purchase Money Indebtedness" means Indebtedness of the Company and its Restricted Subsidiaries incurred for the purpose of financing all
or any part of the purchase price, or the cost of installation, construction or improvement, of property or equipment, provided, that the aggregate principal amount of such Indebtedness does not
exceed the lesser of the Fair Market Value of such property or such purchase price or cost. 

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

        "Qualified Capital Stock" means any Capital Stock that is not Disqualified Capital Stock. 

        "Record Date" means any of the Record Dates specified in the Notes, whether or not a Legal Holiday. 

        "Redemption Date" means, when used with respect to any Note to be redeemed, the date fixed for redemption pursuant to this Indenture and
the Notes. 

        "Redemption Price" means, when used with respect to any Note to be redeemed, the price fixed for redemption pursuant to this Indenture and
the Notes. 

        "Reference Date" has the meaning set forth in Section 4.09. 

        "Refinance" means, in respect of any security or Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem, defease or
retire, or to issue a security or Indebtedness in exchange or replacement for, such security or Indebtedness in whole or in part. "Refinanced" and
"Refinancing" shall have correlative meanings. 

        "Refinancing Indebtedness" means any Refinancing by the Company or any Restricted Subsidiary of Indebtedness incurred in accordance with  Section 4.08 (other than
pursuant to Permitted Indebtedness) or clauses (1),  (3) or (11) of the definition of Permitted Indebtedness,
in each case that does not:
 

        (46) have
an aggregate principal amount (or, if such Indebtedness is issued with original issue discount, an aggregate offering price) greater than the sum of (x) the
aggregate principal amount of the Indebtedness being Refinanced (or, if such Indebtedness being Refinanced is issued with original issue discount, the aggregate accreted value) as of the date of such
proposed Refinancing plus (y) the amount of fees, expenses, premium, defeasance costs and accrued but unpaid interest relating to the Refinancing of such Indebtedness being Refinanced; 

        (47) create
Indebtedness with: (a) a Weighted Average Life to Maturity that is less than the Weighted Average Life to Maturity of the Indebtedness being Refinanced;
or (b) a final maturity earlier than the final maturity of the Indebtedness being Refinanced; or 

        (48) affect
the security, if any, for such Refinancing Indebtedness (except to the extent that less security is granted to holders of such Refinancing Indebtedness); 

        If
such Indebtedness being Refinanced is subordinate or junior by its terms to the Notes, then such Refinancing Indebtedness shall be subordinate by its terms to the Notes at least to
the same extent and in the same manner as the Indebtedness being Refinanced. 

        "Register" is defined in Section 2.03. 

        "Registrar" has the meaning set forth in Section 2.03. 

16

 

        "Registration Rights Agreement" means the Registration Rights Agreement, dated February 8, 2006, among the Company, the Guarantors
and the Initial Purchasers, as the same may be amended or modified from time to time in accordance with the terms thereof. 

        "Regulation S" means Regulation S under the Securities Act. 

        "Regulation S Permanent Global Note" means a permanent Global Note deposited with or on behalf of and registered in the name of the
Common Depository or its nominee, issued in a denomination equal to the outstanding principal amount of the Regulation S Temporary Global Note upon expiration of the Distribution Compliance
Period. 

        "Regulation S Temporary Global Note" means a temporary Global Note in the form attached hereto as Exhibit A, deposited with
or on behalf of and registered in the name of the Common Depository or its nominee, issued in a denomination equal to the outstanding principal amount of the Initial Notes or Additional Notes
initially sold in reliance on Rule 903 of Regulation S. 

        "Restricted Payment" has the meaning set forth in Section 4.09. 

        "Restricted Security" has the meaning assigned to such term in Rule 144(a)(3) under the Securities Act; provided that the Trustee
shall be entitled to request and conclusively rely on an Opinion of Counsel with respect to whether any Note constitutes a Restricted Security. 

        "Restricted Subsidiary" means any Subsidiary of the Company which at the time of determination is not an Unrestricted Subsidiary. 

        "Rule 144A" means Rule 144A under the Securities Act. 

        "S&P" means Standard & Poor's Ratings Group. 

        "SEC" has the meaning set forth in Section 4.17. 

        "Securities Act" means the United States Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated
thereunder. 

        "Senior Secured Notes" means those certain 9% Senior Secured Notes due 2011, issued by the Company pursuant to the Senior Secured Notes
Indenture. 

        "Senior Secured Notes Indenture" means the Indenture dated as of November 30, 2004, by and among the Company, the guarantors
thereunder and The Bank of New York Trust Company, N.A. supplemented by the supplemental indenture dated as of February 6, 2006. 

        "Significant Subsidiary" with respect to any Person, means any Restricted Subsidiary of such Person that satisfies the criteria for a
"significant subsidiary" set forth in Rule 1-02(w) of Regulation S-X under the Exchange Act. 

        "Subsidiary" with respect to any Person, means: 

        (49) any
corporation of which the outstanding Capital Stock having at least a majority of the votes entitled to be cast in the election of directors under ordinary
circumstances shall at the time be owned, directly or indirectly, by such Person; or 

        (50) any
other Person of which at least a majority of the voting interest under ordinary circumstances is at the time, directly or indirectly, owned by such Person. 

        "Surviving Entity" has the meaning set forth in Section 5.01(1)(b). 

        "TIA" means the United States Trust Indenture Act of 1939 (15 U.S.C. SS 77aaa-77bbbb) as amended, as in effect on the date of
this Indenture. 

17

 

        "Transaction Date" has the meaning set forth in the definition of the term "Consolidated Fixed Charge Coverage Ratio." 

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

        "Trust Officer" means, when used with respect to the Trustee, any officer within the Corporate Trust Office of the Trustee, including any
other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is
referred because of such person's knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture. 

        "U.K. Legal Tender" means such coin or currency of the United Kingdom which, as at the time of payment, shall be immediately available
legal tender for the payment of public and private debts. 

        "Unrestricted Subsidiary" means: 

        (51) any
Subsidiary of the Company that at the time of determination shall be or continue to be designated an Unrestricted Subsidiary by the Board of Directors of the
Company in the manner provided below; and 

        (52) any
Subsidiary of an Unrestricted Subsidiary. 

        The
Board of Directors may designate any Subsidiary (including any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns any Capital
Stock of, or owns or holds any Lien on any property of, the Company or any other Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so designated,  provided that: 

        (53) the
Company certifies to the Trustee that such designation complies with Section 4.09; and 

        (54) each
Subsidiary to be so designated and each of its Subsidiaries has not at the time of designation, and does not thereafter, create, incur, issue, assume, guarantee or
otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to which the lender has recourse to any of the assets of the Company or any of its Restricted Subsidiaries. 

        The
Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary only if: 

        (55) immediately
after giving effect to such designation, the Company is able to incur at least $1.00 of additional Indebtedness (other than Permitted Indebtedness) in
compliance with Section 4.08; and 

        (56) immediately
before and immediately after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing. 

        Any
such designation by the Board of Directors shall be evidenced to the Trustee by promptly filing with the Trustee a copy of the Board Resolution giving effect to such designation and
an Officers' Certificate certifying that such designation complied with the foregoing provisions. 

        "Voting Stock" means, with respect to any Person, securities of any class or classes of Capital Stock of such Person entitling the holders
thereof (whether at all times or only so long as no senior class of stock has voting power by reason of any contingency) to vote in the election of members of the Board of Directors (or equivalent
governing body) of such Person. 

18

 

        "Weighted Average Life to Maturity" means, when applied to any Indebtedness at any date, the number of years obtained by dividing
(1) the then outstanding aggregate principal amount of such Indebtedness into (2) the sum of the total of the products obtained by multiplying: 

	(l)
	the
amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal, including payment at final maturity, in respect thereof, by

	(m)
	the
number of years (calculated to the nearest one-twelfth) which will elapse between such date and the making of such payment. 

        "Wholly Owned Subsidiary" means any Guarantor of which all the outstanding Capital Stock (other than directors' qualifying shares or an
immaterial amount of shares required to be owned by other Persons pursuant to applicable law) are owned by the Company or any other Wholly Owned Subsidiary. 

        Section 1.02    Incorporation by Reference of TIA    

        Whenever
this Indenture refers to a provision of the TIA, such 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: 

        "indenture securities" means the Notes. 

        "indenture security holder" means a Holder. 

19

   
        "indenture to be qualified" means this Indenture. 

        "indenture trustee" or "institutional trustee" means the Trustee. 

        "obligor" on the indenture securities means the Company or any other obligor on the Notes. 

        All
other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule and not otherwise defined herein have the
meanings assigned to them therein. 

        Section 1.03    Rules of Construction.    Unless the context otherwise requires in this or any other Indenture
Document: 

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

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

        (3)   "or"
is not exclusive; 

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

        (5)   "herein,"
"hereof" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; 

        (6)   when
the words "includes" or "including" are used herein, they shall be deemed to be followed by the words "without limitation"; 

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

        (8)   unless
otherwise defined or the context otherwise requires, terms for which meanings are provided in this Indenture shall have such meanings when used in each other
Indenture Document. 

ARTICLE TWO  

THE NOTES  

        Section 2.01    Form and Dating.    

        The
Initial Notes and the Additional Notes and the Trustee's certificate of authentication thereon shall be substantially in the form of  Exhibit A hereto. The Exchange Notes and the Trustee's
certificate of authentication thereon shall be substantially in the form of  Exhibit B hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or the
Common Depository rule or
usage. The Company and the Trustee shall approve the form of the Notes and any notation, legend or endorsement on them. Each Note shall be dated the date of its authentication. 

        The
terms and provisions contained in the forms of the Notes annexed hereto as Exhibit A and  Exhibit B shall constitute, and are hereby expressly
made, a part of this Indenture and, to the extent applicable, the Company, the Guarantors
and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 

        Notes
offered and sold in reliance on Rule 144A shall be issued initially in the form of one or more permanent global notes in registered form, substantially in the form set forth
in Exhibit A (the "144A Global Notes"), deposited with the Common Depository, duly executed by
the Company and authenticated by the Trustee as hereinafter provided and shall bear the legend set forth in Exhibit C. 

20

 

        Notes
offered and sold to Institutional Accredited Investors in reliance on Rule 501(a)(1), (2), (3) or (7) under the Securities Act shall be issued initially in the
form of one or more permanent global notes in registered form, substantially in the form set forth in Exhibit A (the "IAI
Global Notes"), deposited with the Common Depository, duly executed by the Company and authenticated by the Trustee as hereinafter provided and shall bear the legend set forth
in Exhibit C. 

        Notes
offered and sold in offshore transactions in reliance on Regulation S shall be issued initially in the form of one or more Regulation S Temporary Global Notes
deposited with the Common Depository, and registered in the name of the Common Depository or the nominee of the Common Depository for the accounts of designated agents holding on behalf of Euroclear
or Clearstream, duly executed by the Company and authenticated by the Trustee as hereinafter provided and shall bear the legends set forth in  Exhibit C and Exhibit D. 

        Following
the termination of the Distribution Compliance Period, beneficial interests in a Regulation S Temporary Global Note will be exchanged for beneficial interests in a
Regulation S Permanent Global Note pursuant to the Applicable Procedures. Simultaneously with the authentication of a Regulation S Permanent Global Note, the Trustee will cancel the
related Regulation S Temporary Global Note. 

        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 will be applicable to transfers of beneficial interests in the Global Notes that are held by participants through Euroclear or Clearstream. 

        The
aggregate principal amount of any Global Note may from time to time be increased or decreased by adjustments made on the records of the Common Depository, as hereinafter provided. 

        The
definitive Notes shall be typed, printed, lithographed or engraved or produced by any combination of these methods or may be produced in any other manner permitted by the rules of
any securities exchange on which the Notes may be listed, all as determined by the Officer executing such Notes, as evidenced by their execution of such Notes. 

        Section 2.02    Execution and Authentication; Aggregate Principal Amount.    

        An
Officer (who shall have been duly authorized by all requisite corporate actions) shall sign the Notes for the Company by manual or facsimile signature. 

        If
an Officer whose signature is on a Note was an Officer at the time of such execution but no longer holds that office or position at the time the Trustee authenticates the Note, the
Note shall nevertheless be valid. 

        A
Note shall not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Note. The signature shall be conclusive evidence that the
Note has been authenticated under this Indenture. 

        The
Trustee shall authenticate (i) Initial Notes for original issue in the aggregate principal amount not to exceed £33,000,000, (ii) Exchange Notes from time
to time for issue only in exchange for a like principal amount of Initial Notes or Additional Notes, and (iii) subject to compliance with  Section 4.08, one or more series of Additional Notes
in an unlimited amount in each case upon written orders of the Company in the form of an
Officers' Certificate, which Officers' Certificate shall, in the case of any issuance of Additional Notes, certify that such issuance is in compliance with  Section 4.08. In addition, each Officers'
Certificate shall specify the amount of Notes to be authenticated and the date on which the Notes are
to be authenticated, whether the Notes are to be Initial Notes, Exchange Notes or Additional Notes. All Notes issued under this Indenture shall vote and consent together on all matters as one class
and no series of Notes shall have the right to vote or consent as a separate class on any matter. 

21

 

        The
Trustee may appoint an authenticating agent (the "Authenticating Agent") reasonably acceptable to the Company to authenticate Notes.
Unless otherwise provided in the appointment, an Authenticating Agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes
authentication by such Authenticating Agent. An Authenticating Agent has the same rights as an Agent to deal with the Company and Affiliates of the Company. 

        The
Notes shall be issuable in fully registered form only, without coupons, in minimum denominations of £50,000 in principal amount and integral multiples of
£1,000 in excess thereof. 

        Section 2.03    Registrar and Paying Agent.    

        The
Company initially appoints the Trustee as registrar (the "Registrar") and agent for service of demand and notices in connection with
the Notes. The Company shall maintain a paying agent and a transfer agent in New York, New York (the "Principal Paying Agent") and, for so long as the
Notes are listed on the Euro MTF Market of the Luxembourg Stock Exchange and the rules of such exchange so require, in Luxembourg (the "Luxembourg Paying
Agent" and, together with the Principal Paying Agent, the "Paying Agent"). The Company initially appoints the Trustee as the
Principal Paying Agent and initially appoints The Bank of New York (Luxembourg, S.A.) as the Luxembourg Paying Agent. In addition, the Company shall maintain an office or agency in the Borough of
Manhattan, The City of New York, where (a) Notes may be presented or surrendered for registration of transfer or for exchange, (b) Notes may be presented or surrendered for payment and
(c) notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. Such office shall initially be at The Bank of New York, 101 Barclay Street, Floor 21W,
New York, New York 10286, Attention: Global Finance Unit. The Registrar shall keep a register of the Notes and of their transfer and exchange (the
"Register"). The Company, upon prior written notice to the Trustee, may have one or more co-Registrars and one or more additional Paying
Agents reasonably acceptable to the Trustee. The term "Paying Agent" includes any additional Paying Agent and any successor to the Paying Agent. Neither the Company nor any Affiliate of the Company
may act as Paying Agent. 

        The
Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture, which agreement shall incorporate the provisions of the TIA and implement the
provisions of this Indenture that relate to such Agent. The Company shall notify the Trustee in writing, in advance, of the name and address of any such Agent and otherwise be reasonably satisfactory
to the Trustee. If the Company fails to maintain a Registrar or Paying Agent, or fails to give the foregoing notice, the Trustee shall act as such. 

        Any
Paying Agent or Registrar may resign upon thirty (30) days' written notice to the Company. 

        Section 2.04    Obligations of Paying Agent.    

        The
Company shall require each Paying Agent other than the Trustee to agree in writing that such Paying Agent shall hold separate and apart from, and not commingle with any other
properties, for the benefit of the Holders or the Trustee, all assets held by the Paying Agent for the payment of principal of, or interest and Additional Interest, if any, on, the Notes (whether such
assets have been distributed to it by the Company or any other obligor on the Notes), and the Company and the Paying Agent shall notify the Trustee in writing of any Default by the Company (or any
other obligor on the Notes) in making any such payment. The Company at any time may require a Paying Agent to distribute all assets held by it to the Trustee and account for any assets disbursed and
the Trustee may at any time during the continuance of any payment Default, upon written request to a Paying Agent, require such Paying Agent to distribute all assets held by it to the Trustee and to
account for any assets distributed. Upon receipt by the Trustee of all assets that shall have been delivered by the Company to the Paying Agent, the Paying Agent shall have no further liability for
such assets. 

22

 

        Section 2.05    Holder Lists.    

        The
Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of the Holders and shall otherwise comply
with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall furnish or cause the Registrar to furnish to the Trustee before each Record Date and at such other times as the
Trustee may request in writing a list as of such date and in such form as the Trustee may reasonably request of the names and addresses of the Holders, which list may be conclusively relied upon by
the Trustee. 

        Section 2.06    Transfer and Exchange.    

        Subject
to Sections 2.14 and 2.15, when Notes are presented to the Registrar or a
co-Registrar with a request to register the transfer of such Notes or to exchange such Notes for an equal principal amount of Notes of other authorized denominations, the Registrar or
co-Registrar shall register the transfer or make the exchange as requested; provided, however, that the Notes presented or surrendered for registration of transfer or exchange shall be
duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar or co-Registrar, duly executed by the Holder thereof or his attorney
duly authorized in writing and such other documents as the Registrar or co-Registrar may reasonably require. To permit registrations of transfers and exchanges, the Company shall issue and
the Trustee shall authenticate Notes at the Registrar's or co-Registrar's request. No service charge shall be made for any registration of transfer or exchange, but the Company or the
Trustee 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 exchanges or transfers pursuant to Section 2.10, 3.06 or  4.10, in which event the
Company shall be responsible for the payment of such taxes). 

        The
Registrar or co-Registrar shall not be required to register the transfer or exchange of any Note (i) during a period beginning at the opening of business fifteen
(15) days before the mailing of a notice of redemption of Notes and ending at the close of business on the day of such mailing and (ii) selected for redemption in whole or in part
pursuant to Article Three, except the unredeemed portion of any Note being redeemed in part. 

        Any
Holder of a Global Note shall, by acceptance of such Global Note, agree that transfers of beneficial interests in such Global Note may be effected only through the Common Depository
and Euroclear and Clearstream, in accordance with this Indenture and the Applicable Procedures. 

        Section 2.07    Replacement Notes.    

        If
a mutilated Note is surrendered to the Trustee or if the Holder of a Note claims in writing that the Note has been lost, destroyed or wrongfully taken, then, in the absence of written
notice to the Company or the Trustee that such Note has been acquired by a protected purchaser, the Company shall issue and the Trustee shall authenticate a replacement Note of like tenor and
principal amount and bearing a number not contemporaneously outstanding if the Trustee's requirements are met. Except with respect to mutilated Notes, such Holder must provide an affidavit of lost
certificate and an indemnity bond, sufficient in the judgment of both the Company and the Trustee, to protect the Company, the Trustee or any Agent from any loss which any of them may suffer if a Note
is replaced. The Company may charge such Holder for its reasonable out-of-pocket expenses in replacing a Note, including reasonable fees and expenses of its counsel and of the
Trustee and its counsel. In case any mutilated, lost, destroyed or wrongfully taken Note has become or is about to become due and payable, the Company in its discretion may pay such Note instead of
issuing a new Note in replacement thereof. Every replacement Note shall constitute an additional obligation of the Company, entitled to the benefits of this Indenture. 

23

 

        Section 2.08    Outstanding Notes.    

        Notes
outstanding at any time are all the Notes that have been authenticated by the Trustee except those cancelled by it, those delivered to it for cancellation and those described in
this Section 2.08 as not outstanding. Subject to Section 2.09, a Note does not cease to be
outstanding because the Company or any of its Affiliates holds the Note. 

        If
a Note is replaced pursuant to Section 2.07 (other than a mutilated Note surrendered for replacement), it ceases to be
outstanding unless each of the Company and the Trustee receives proof
satisfactory to it that the replaced Note is held by a protected purchaser. A mutilated Note ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to  Section 2.07.

        If
on a Redemption Date or the Maturity Date the Paying Agent holds U.K. Legal Tender or Government Obligations sufficient to pay all of the principal and interest, and Additional
Interest, if any, due on the Notes payable on that date and is not prohibited from paying such money to the Holders thereof pursuant to the terms of this Indenture, then on and after that date such
Notes cease to be outstanding and interest, and Additional Interest, if applicable, on them ceases to accrue. 

        Section 2.09    Treasury Notes; When Notes are Disregarded.    

        In
determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Company or any of its Affiliates shall
be considered as though they are not outstanding; provided, that for the purposes of determining whether the Trustee shall be protected in relying on
any such direction, waiver or consent, only Notes which the Trustee actually knows are so owned shall be so considered. Notes so owned which have been pledged in good faith may be regarded as
outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Notes and that the pledgee is not the Company or any other obligor upon the
Notes or any Affiliate of the Company or of such other obligor. The Company shall notify the Trustee, in writing (which notice shall constitute actual notice for purposes of the foregoing sentence),
when it or any of its Affiliates repurchases or otherwise acquires Notes, of the aggregate principal amount of such Notes so repurchased or otherwise acquired. 

        Section 2.10    Temporary Notes.    

        Until
definitive Notes are ready for delivery, the Company may prepare and execute and the Trustee shall authenticate temporary Notes upon receipt of a written order of the Company in
the form of an Officers' Certificate. The Officers' Certificate shall specify the amount of temporary Notes to be authenticated and the date on which the temporary Notes are to be authenticated.
Temporary Notes shall be substantially in the form of definitive Notes but may have variations that the Company considers appropriate for temporary Notes. Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate upon receipt of a written order of the Company pursuant to Section 2.02 definitive Notes in exchange
for temporary Notes. Until so exchanged, the temporary Notes shall be entitled to the same benefits under this Indenture as definitive Notes. 

        Section 2.11    Cancellation.    

        The
Company at any time may deliver Notes previously authenticated hereunder which the Company has acquired in any lawful manner, to the Trustee for cancellation. The Registrar and the
Paying Agent shall forward to the Trustee any Notes surrendered to them for transfer, exchange or payment. The Trustee, or at the direction of the Trustee, the Registrar or the Paying Agent, and no
one else, shall cancel all Notes surrendered for transfer, exchange, payment or cancellation. Subject to Section 2.07, the Company may not issue
new Notes to replace Notes that it has paid or delivered to the Trustee for cancellation. If the Company shall acquire any of the Notes, such acquisition shall not operate as a redemption or
satisfaction of the Indebtedness represented by such Notes unless and until the same are surrendered to the Trustee for cancellation pursuant to this  Section 2.11. The Trustee shall 

24

 

dispose
of all cancelled Notes in accordance with customary procedures or, at the written request of the Company, shall return the same to the Company. 

        Section 2.12    ISIN and Common Code Numbers.    

        "ISIN"
and "Common Code" numbers (if then generally in use), shall each be printed on the Notes. The Trustee shall use such numbers in notices of redemption, purchase or exchange as a
convenience to Holders; provided that any such notice may state that no representation is made as to the correctness or accuracy of such numbers or codes printed in the notice or on the Notes and that
reliance may be placed only on the other identification numbers printed on the Notes. The Company shall promptly notify the Trustee of any change in the ISIN or Common Code number. 

        Section 2.13    Deposit of Moneys.    

        Prior
to 11:00 a.m. London time on each Interest Payment Date and the Maturity Date, the Company shall deposit with the Paying Agent U.K. Legal Tender sufficient to make cash
payments in U.K. pounds sterling, if any, due on such Interest Payment Date or the Maturity Date, as the case may be. 

        Section 2.14    Book-Entry Provisions for Global Notes.    

        (a)   The
Global Notes initially shall (i) be registered in the name of the Common Depository or the nominee of the Common Depository, (ii) be delivered to or on
behalf of the Common Depository and (iii) bear legends as set forth in Exhibit C. 

        Members
of, or participants in, Euroclear and Clearstream ("Agent Members") shall have no rights under this Indenture with respect to any
Global Note held on their behalf by the Common Depository,
or under any Global Note, and the Common Depository may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the Global Note for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or
other authorization furnished by the Common Depository or impair, as between Euroclear and Clearstream and their respective Agent Members, the operation of customary practices governing the exercise
of the rights of a Holder of any Note. 

        (b)   Transfers
of the Global Notes shall be limited to transfers in whole, but not in part, to the Common Depository, its successors or their respective nominees. Interests
of beneficial owners in the Global Notes may be transferred or exchanged in accordance with the Applicable Procedures of the Common Depository and Euroclear and Clearstream and  Section 2.15;
provided, however, that prior to the expiration of the Distribution Compliance
Period, transfers of beneficial interests in the Regulation S Temporary Global Note may not be made to a U.S. Person or for the account or benefit of a U.S. Person (other than the Initial
Purchasers or to QIBs in accordance with Rule 144A of the Securities Act). In addition, Notes in the form of certificated Notes in registered form in substantially the form set forth in  Exhibit A hereto (the "Physical Notes") shall be transferred to all beneficial owners in exchange
for their beneficial interests in the Global Notes if (i) Euroclear or Clearstream notifies the Company that it is unwilling or unable to continue as clearing agency, (ii) the Common
Depository notifies the Company that it is unwilling or unable to continue as Common Depository for the Global Notes and a successor Common Depository is not appointed by the Company within ninety
(90) days of such notice or (iii) an Event of Default has occurred and is continuing and the Registrar has received a request from the Common Depository or Euroclear and Clearstream to
issue Physical Notes; provided that a beneficial interest in the Regulation S Temporary Global Note may not be exchanged for a Physical Note or
transferred to a Person who takes delivery thereof in the form of a Physical Note prior to (A) the expiration of the Distribution Compliance Period and (B) the receipt by the Registrar
of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act, 

25

 

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. 

        (c)   Any
beneficial interest in one of the Global Notes that is transferred to a person who takes delivery in the form of an interest in another Global Note shall, upon
transfer, cease to be an interest in such Global Note and become a beneficial interest in such other Global Note and, accordingly, shall thereafter be subject to all transfer restrictions, if any, and
other procedures applicable to a beneficial interest in such other Global Notes for as long as it remains such an interest. 

        (d)   In
connection with any transfer or exchange of a portion of the beneficial interest in the Global Note to beneficial owners pursuant to  paragraph (b) of this Section 2.14, the Registrar shall (if one or more Physical Notes are
to be issued) reflect on its books and records the date and a decrease in the principal amount of the Global Note in an amount equal to the principal amount of the beneficial interest in the Global
Note to be transferred, and the Company shall execute, and the Trustee shall authenticate and deliver, one or more Physical Notes of like tenor and aggregate principal amount. 

        (e)   In
connection with the transfer of an entire Global Note to beneficial owners pursuant to paragraph (b) of this  Section 2.14, the Global Notes shall
be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee
shall authenticate and deliver, to each beneficial owner identified by the Common Depository in exchange for its beneficial interest in the Global Notes, an equal aggregate principal amount of
Physical Notes of authorized denominations. 

        (f)    Any
Physical Note constituting a Restricted Security delivered in exchange for an interest in the Global Note pursuant to  paragraph (b) or (c) shall,
except as otherwise provided by paragraphs
(a)(i)(x) and (c) of Section 2.15, bear the legend regarding transfer
restrictions applicable to the Physical Notes set forth in Exhibit A, as applicable. 

        (g)   The
Holder of a Global Note may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to
take any action which a Holder is entitled to take under this Indenture or the Notes. 

        Section 2.15    Special Transfer Provisions.    

        (a)   Transfers
to Non-QIB Institutional Accredited Investors and Non-U.S. Persons. The following provisions shall apply with respect to the
registration of any proposed transfer of a Note constituting a Restricted Security to any Institutional Accredited Investor (which is not a QIB) or to any Non-U.S. Person: 

        (ii)   the
Registrar shall register the transfer of any Note constituting a Restricted Security, whether or not such Note bears the Private Placement Legend, if (x) the
requested transfer is after February 8, 2008 or (y) (1) in the case of a transfer to an Institutional Accredited Investor which is not a QIB (excluding Non-U.S. Persons), the
proposed transferee has delivered to the Registrar a certificate substantially in the form of Exhibit E hereto or (2) in the case of a
transfer to a Non-U.S. Person, the proposed transferor has delivered to the Registrar a certificate substantially in the form of  Exhibit F hereto; and 

        (iii)  if
the proposed transferor is an Agent Member holding a beneficial interest in the Global Note, upon receipt by the Registrar of (x) the certificate, if any,
required by paragraph (i) above and (y) instructions given in accordance with the Applicable Procedures and the Registrar's procedures, 

whereupon
(1) the Registrar shall reflect on its books and records the date and (if the transfer does not involve a transfer of outstanding Physical Notes) a decrease in the principal amount of
the Global Note in an amount equal to the principal amount of the beneficial interest in the Global Note to be 

26

 

transferred,
and (2) the Company shall execute and the Trustee shall authenticate and deliver one or more Physical Notes of like tenor and principal amount. 

        (b)   Transfers to QIBs. The following provisions shall apply with respect to the registration of any proposed transfer of a
Note constituting a Restricted Security to a QIB (excluding transfers to Non-U.S. Persons): 

        (i)    the
Registrar shall register the transfer if such transfer is being made by a proposed transferor who has checked the box provided for on the form of Note stating, or
has otherwise advised the Company and the Registrar in writing, that the sale has been made in compliance with the provisions of Rule 144A to a transferee who has signed the certification
provided for on the form of Note stating, or has otherwise advised the Company and the Registrar in writing, that it is purchasing the Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a QIB within the meaning of Rule 144A, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as it has requested pursuant to Rule 144A or has determined not to request such information and that it is aware
that the transferor is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A; and 

        (ii)   if
the proposed transferee is an Agent Member, and the Notes to be transferred consist of Physical Notes which after transfer are to be evidenced by an interest in the
Global Note, upon receipt by the Registrar of instructions given in accordance with the Applicable Procedures and the Registrar's procedures, the Registrar shall reflect on its books and records the
date and an increase in the principal amount of the Global Note in an amount equal to the principal amount of the Physical Notes to be transferred, and the Trustee shall cancel the Physical Notes so
transferred. 

        (c)   Private Placement Legend. Upon the transfer, exchange or replacement of Notes not bearing the Private Placement Legend,
the Registrar shall deliver Notes that do not bear the Private Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the Private Placement Legend, the Registrar shall deliver
only Notes that bear the Private Placement Legend unless (i) the circumstance contemplated by paragraph (a)(i)(x) of this  Section 2.15
exists or (ii) an Opinion of Counsel reasonably satisfactory to the Company and the Trustee to the effect that neither such
legend nor the related restrictions on transfer are required in order to maintain compliance with the provisions of the Securities Act is delivered to the Registrar or such exchange occurs pursuant to
an Exchange Offer. The Registrar shall not register a transfer of any Note unless such transfer complies with the restrictions on transfer of such Note set forth in this Indenture. In connection with
any transfer of Notes, each Holder agrees by its acceptance of the Notes to furnish the Registrar or the Company such certifications, legal opinions or other information as either of them may
reasonably require to confirm that such transfer is being made pursuant to an exemption from, or a transaction not subject to, the registration requirements of the Securities Act; provided that the
Registrar shall not be required to determine (but may rely on a determination made by the Company with respect to) the sufficiency of any such certifications, legal opinions or other information. 

        (d)   General. By its acceptance of any Note bearing the Private Placement Legend, each Holder of such a Note acknowledges the
restrictions on transfer of such Note set forth in this Indenture and in the Private Placement Legend and agrees that it shall transfer such Note only as provided in this Indenture. 

        The
Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 2.14 or
this Section 2.15. The Company shall have the right to inspect and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the Registrar. 

27

 

        Section 2.16    Transfers of Global Notes and Physical Notes.    

        A
transfer of a Global Note or a Physical Note (including the right to receive principal and interest, and Additional Interest, if any, payable thereon) may be made only by the
Registrar's entering the transfer in the Register. Prior to such entry, the Company shall treat the person in whose name such Note is registered as the owner of the Note for all purposes. 

        Each
Holder of a Note agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or assignment of such Holder's Note in violation
of any provision of this Indenture and/or applicable United States Federal or state securities law. 

        The
Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with
respect to any transfer of any interest in any Note (including any transfers between or among participants of Euroclear and Clearstream or beneficial owners of interests in any Global Note) other than
to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine
the same to determine substantial compliance as to form with the express requirements hereof. 

28

   ARTICLE THREE  

REDEMPTION  

        Section 3.01    Optional Redemption.    

        The
Company may, at its option, redeem the Notes, in whole or in part, at specified times and under specified conditions, as set forth in  Paragraph 5 of the Notes. If the Company elects to redeem Notes
pursuant to Paragraph 5 of
the Notes, it shall, at least forty-five (45) days (or such shorter period as the Trustee may agree) before the Redemption Date, notify to the Trustee and Paying Agent in writing of
the Redemption Date and the principal amount of the Notes to be redeemed and the clause of this Indenture or the Notes pursuant to which the redemption shall occur. 

        Each
Officers' Certificate provided for in this Section 3.01 shall be accompanied by an Opinion of Counsel stating that such
redemption has complied with the conditions contained herein and in the Notes. 

        Section 3.02    Selection of Notes to be Redeemed.    

        In
the event that fewer than all of the Notes are to be redeemed pursuant to Paragraph 5 of the Notes, the Trustee shall select the
Notes to be redeemed: 

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

        (2)   if
such Notes are not then listed on a securities exchange, on a pro rata basis, by lot or by such method as the Trustee
may reasonably determine is fair and appropriate; provided that no partial redemption will reduce the principal amount of a Note not redeemed to less than £50,000; and  provided further, that if a
partial redemption is made with the proceeds of an Equity Offering then the Trustee shall select the Notes or portions
thereof for redemption only on a pro rata basis or on as nearly a pro rata basis as is practicable
(subject to the Applicable Procedures), unless such method is prohibited. 

        The
Trustee shall make the selection from the Notes outstanding and not previously called for redemption and shall promptly notify the Company 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. Notes in denominations of less than £50,000 in principal
amount at maturity may be redeemed only in whole. The Trustee may select for redemption portions (in integral amounts of £1,000; provided no
Notes of less than £50,000 will remain outstanding thereafter) of the principal of each Holder's Notes that have denominations larger than £50,000. Provisions of this Indenture
that apply to Notes called for redemption also apply to portions of Notes called for redemption. 

        If
and for so long as the Notes are listed on the Euro MTF Market of the Luxembourg Stock Exchange and its rules so require, notice of such redemption shall be sent to the Luxembourg
Stock Exchange. 

        Section 3.03    Notice of Redemption.    

        At
least thirty (30) days but not more than sixty (60) days before a Redemption Date, the Company shall mail or cause to be mailed a notice of redemption by first class
mail, postage prepaid, to each Holder whose Notes are to be redeemed at its registered address, with a copy to the Trustee and any Paying Agent. At the Company's written request, the Trustee shall
give the notice of redemption in the Company's name and at the Company's expense. Failure to give notice of redemption, or any defect therein to any Holder of any Note selected for redemption shall
not impair or affect the validity of the redemption of any other Note. 

29

 

        Each
notice of redemption shall identify the Notes to be redeemed and shall state: 

        (1)   the
Redemption Date; 

        (2)   the
Redemption Price and the amount of accrued interest and Additional Interest, if any, to be paid to (but not including) the Redemption Date; 

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

        (4)   the
ISIN and/or Common Code numbers; 

        (5)   the
subparagraph of the Notes pursuant to which such redemption is being made; 

        (6)   the
place where such Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption Price plus accrued interest and Additional Interest,
if any, to (but not including) the Redemption Date; 

        (7)   that,
unless the Company fails to deposit with the Paying Agent funds in satisfaction of the applicable redemption price, interest and Additional Interest, if any, on
Notes called for redemption ceases to accrue on and after the Redemption Date in accordance with Section 3.05, and the only remaining right of
the Holders of such Notes is to receive payment of the Redemption Price plus accrued interest and Additional Interest, if any, to (but not including) the Redemption Date, upon surrender to the Paying
Agent of the Notes redeemed; 

        (8)   if
any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the Redemption Date, and upon surrender of such
Note, a new Note or Notes in the aggregate principal applicable amount equal to the unredeemed portion thereof shall be issued; provided, that each such new Note will be in a principal amount of
£50,000 or integral multiples of £1,000 in excess thereof; and 

        (9)   if
fewer than all the applicable Notes are to be redeemed, the identification of the particular Notes (or portion thereof) to be redeemed, as well as the aggregate
principal amount of the applicable Notes to be redeemed and the aggregate principal amount of the applicable Notes to be outstanding after such partial redemption. 

        If
any of the Notes to be redeemed is in the form of a Global Note, then the Company shall modify such notice to the extent necessary to accord with the procedures of the Common
Depository and Euroclear and Clearstream applicable to redemption. 

        Section 3.04    Effect of Notice of Redemption.    

        Once
notice of redemption is mailed in accordance with Section 3.03, Notes or portions thereof called for redemption shall become
irrevocably due and payable on the Redemption Date and at the Redemption Price plus accrued interest and Additional Interest, if any, to (but not including) the Redemption Date. Upon surrender to the
Trustee or Paying Agent, such Notes or portions thereof called for redemption shall be paid at the Redemption Price plus accrued interest and Additional Interest, if any, thereon to (but not
including) the Redemption Date, but installments of interest, the maturity of which is on or prior to the Redemption Date, shall be payable to Holders of record at the close of business on the
relevant Record Dates referred to in the Notes. 

        Section 3.05    Deposit of Redemption Price.    

        Not
later than 11:00 a.m. London time in the place of payment on the Redemption Date, the Company shall deposit with the Paying Agent U.K. Legal Tender sufficient to pay the
Redemption Price plus accrued and unpaid interest and Additional Interest, if any, to (but not including) the Redemption Date, of all Notes or portions thereof to be redeemed on that date. 

30

 

        The
Paying Agent shall promptly return to the Company any U.K. Legal Tender so deposited which is not required for that purpose, except with respect to monies owed as obligations to the
Trustee pursuant to Article Seven. 

        If
the Company complies with the preceding paragraph, then, unless the Company defaults in the payment of such Redemption Price plus accrued interest and Additional Interest, if any, to
(but not including) the Redemption Date, on the Notes or portions thereof to be redeemed shall cease to accrue on and after the applicable Redemption Date, whether or not such Notes are presented for
payment. 

        Section 3.06    Notes Redeemed in Part.    

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

        Section 3.07    Applicable Procedures.    

        The
redemption procedures contained herein shall be subject to the Applicable Procedures. 

ARTICLE FOUR  

COVENANTS  

        Section 4.01 Payment of Notes. 

        The
Company shall pay the principal of, or premium, if any, or interest, and Additional Interest, if any, on the Notes on the dates and in the manner provided in the Notes and in this
Indenture. An installment of principal of, or premium, if any, or interest, and Additional Interest, if any, on the Notes shall be considered paid on the date it is due if the Trustee or Paying Agent
(other than the Company or an Affiliate of the Company) holds by 11:00 a.m. (London time) on that date U.K. Legal Tender designated for and sufficient to pay the installment in full. 

        Notwithstanding
anything to the contrary contained in this Indenture, the Company may, to the extent it is required to do so by law, deduct or withhold income or other similar taxes
imposed by the United States from principal or interest payments hereunder. 

        Section 4.02    Maintenance of Office or Agency.    

        The
Company shall maintain the office or agency required under Section 2.03. The Company shall give prior written notice to the
Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of The Bank of New York and the Company hereby appoints The
Bank of New York as its agent to receive all such presentations, surrenders, notices and demands. 

        Section 4.03    Corporate Existence.    

        Except
as otherwise permitted by Article Four, Article Five and  Article Ten, the Company shall do or cause to be
done, at its own cost and expense, all things necessary to preserve and keep in full force and effect
its corporate existence and the limited liability company, partnership or corporate existence of each of the Restricted Subsidiaries in accordance with the respective organizational documents of each
such Restricted Subsidiary and the material rights (charter and statutory) and franchises of the Company and each such Restricted Subsidiary; provided, however,  that the Company shall not be required to
preserve, with respect to itself, any material right or franchise and, with respect to any of 

31

 

the
Restricted Subsidiaries, any such existence, material right or franchise, if the Board of Directors of the Company, shall determine in good faith that the preservation thereof is no longer
desirable in the conduct of the business of the Company and its Restricted Subsidiaries, taken as a whole. 

        Section 4.04    Payment of Taxes and Other Claims.    

        The
Company shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (i) all material taxes, assessments and governmental charges
(including withholding taxes and any penalties, interest and additions to taxes) levied or imposed upon it or any of the Restricted Subsidiaries or its properties or any of the Restricted
Subsidiaries' properties and (ii) all material lawful claims for labor, materials and supplies that, if unpaid, might by law become a Lien upon its properties or any of its Restricted
Subsidiaries' properties; provided, however, that the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being or shall be contested in good faith by appropriate proceedings properly instituted and diligently conducted for which
adequate reserves, to the extent required under GAAP, have been taken. 

        Section 4.05    Maintenance of Properties and Insurance; Compliance with Laws.    

        (a)   The
Company shall, and shall cause each of its Restricted Subsidiaries to, maintain in good working order and condition in all material respects (subject to ordinary
wear and tear) its properties that are used or useful in the conduct of its business and that are material to the conduct of such business, and make all necessary repairs, renewals, replacements,
additions, betterments and improvements thereto and actively conduct and carry on its business; provided, however, that nothing in this  Section 4.05
shall prevent the Company or any of the Restricted Subsidiaries from discontinuing the operation and maintenance of any of its
properties if such discontinuance is, in the good faith judgment of the Board of Directors or other governing body of the Company or the Restricted Subsidiary concerned, as the case may be, desirable
in the conduct of its businesses and is not disadvantageous in any material respect to the Holders. 

        (b)   The
Company shall maintain insurance (including appropriate self-insurance) against loss or damage of the kinds that, in the good faith judgment of the
Company, is adequate and appropriate for the conduct of the business of the Company and the Restricted Subsidiaries in a prudent manner, with reputable insurers or with the government of the United
States or an agency or instrumentality thereof, in such amounts, with such deductibles, and by such methods as shall be customary, in the good faith judgment of the Company, for companies similarly
situated in the industry in which the Company and the Restricted Subsidiaries are engaged. 

        (c)   The
Company shall, and shall cause each of its Subsidiaries to, comply with all applicable statutes, rules, regulations, orders and restrictions of the United States,
all states and municipalities thereof, and of any governmental department, commission, board, regulatory authority, bureau, agency and instrumentality of the foregoing, in respect of the conduct of
its businesses and the ownership of its properties, except for such noncompliances as are not in the aggregate reasonably likely to have a material adverse effect on the financial condition or results
of operations of the Company and its Subsidiaries, taken as a whole, or the ability of the Company to perform its obligations hereunder. 

        Section 4.06    Compliance Certificate; Notice of Default.    

        (a)   The
Company shall deliver to the Trustee, within ninety (90) days after the end of the Company's fiscal year, an Officers' Certificate stating that a review of
the activities of the Company and its Restricted Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers (one of whom is the principal executive
officer, principal financial officer or principal accounting officer) with a view to determining whether they have kept, observed, performed and fulfilled their obligations under this Indenture and
the other Indenture Documents and further stating, as to each such Officer signing such certificate, that to the best of such Officer's actual knowledge the 

32

 

Company
and its Restricted Subsidiaries during such preceding fiscal year have kept, observed, performed and fulfilled each and every condition and covenant under this Indenture and the other
Indenture Documents in all material respects and at the date of such certificate there is no Default or Event of Default that has occurred and is continuing or, if such signers do know of such Default
or Event of Default, the certificate shall describe the Default or Event of Default and its status with particularity. 

        (b)   The
Company shall, so long as any Notes are outstanding, upon any Officer of the Company becoming aware of any Default or Event of Default, deliver to the Trustee an
Officers' Certificate specifying such Default or Event of Default within five (5) Business Days of such Officer becoming aware of such occurrence. 

        Section 4.07    Waiver of Stay, Extension or Usury Laws.    

        The
Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law or any usury law or other law that would prohibit or forgive the Company from paying all or any portion of the principal of, premium, if any, or interest or Additional
Interest, if any, on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture; and (to the
extent that it may lawfully do so) the Company hereby expressly waives all benefit or advantage of any such law, and covenant that it shall not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted. 

        Section 4.08    Limitation on Incurrence of Additional Indebtedness.    

        The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume, guarantee, acquire, become liable, contingently or
otherwise, with respect to, or otherwise become responsible for payment of (collectively, "incur") any Indebtedness (other than Permitted Indebtedness).
Notwithstanding the foregoing the Company and the Guarantors may incur Indebtedness (including Acquired Indebtedness) if on the date of (after giving effect to) the incurrence of such Indebtedness:
(i) no Default or Event of Default shall have occurred and be continuing; and (ii) the Consolidated Fixed Charge Coverage Ratio of the Company will be at least 2.0 to 1.0. 

        Section 4.09    Limitation on Restricted Payments.    

        The
Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly: 

        (1)   declare
or pay any dividend or make any distribution (other than dividends or distributions payable (i) in Qualified Capital Stock of the Company or
(ii) to the Company or a Guarantor) on or in respect of shares of Capital Stock of the Company or its Restricted Subsidiaries; 

        (2)   purchase,
redeem or otherwise acquire or retire for value any Capital Stock of the Company, any Restricted Subsidiary or any Affiliate of the Company (other than any
such Capital Stock owned by the Company or any Guarantor); 

        (3)   make
any principal payment on, purchase, defease, redeem, prepay or otherwise acquire or retire for value, prior to any scheduled final maturity, scheduled repayment or
scheduled sinking fund payment, any Indebtedness of the Company or any Guarantor that is subordinate or junior in right of payment to the Notes or a Guarantee; or 

        (4)   make
any Investment (other than Permitted Investments); 

33

 

        (each
of the foregoing actions set forth in clauses (1), (2),  (3) and (4) being referred to as a "Restricted
Payment"), if at the time of such Restricted Payment or immediately after giving effect thereto: 

        (ii)   a
Default or an Event of Default shall have occurred and be continuing; 

        (iii)  the
Company is not permitted to incur at least $1.00 of additional Indebtedness (other than Permitted Indebtedness) pursuant to  Section 4.08; or 

        (iv)  the
aggregate amount of Restricted Payments (including such proposed Restricted Payment) made subsequent to the Issue Date (the amount expended for such purposes, if
other than in cash, being the Fair Market Value of such property at the time of the making thereof) shall exceed the sum of: 

        (A)  50%
of the cumulative Consolidated Net Income (or if cumulative Consolidated Net Income is a loss, minus 100% of such loss) of the Company during the period beginning on
January 1, 2005 and ending on the last day of the Company's most recent fiscal quarter ending prior to the date of such Restricted Payment for which financial statements are available (the
"Reference Date") (treating such period as a single accounting period); plus

        (B)  100%
of the aggregate net cash proceeds received by the Company from any Person (other than a Subsidiary of the Company) from the issuance and sale subsequent to the
Issue Date and on or prior to the Reference Date of Qualified Capital Stock of the Company (which shall include capital contributions to the Company) (excluding any net proceeds from an Equity
Offering to the extent used to redeem Notes pursuant to Section 3.01; plus

        (C)  100%
of the aggregate net cash proceeds received from the issuance of Indebtedness or shares of Disqualified Capital Stock of the Company (other than to a Subsidiary of
the Company) that have been
converted into or exchanged for Qualified Capital Stock of the Company subsequent to the Issue Date and on or prior to the Reference Date; plus

        (D)  the
net reduction in the Investments (other than Permitted Investments) treated as a Restricted Payment previously made by the Company or any Restricted Subsidiary in
any Person (other than a Restricted Subsidiary) to the extent such reduction results from net proceeds received by the Company and its Restricted Subsidiaries upon the (x) repurchase, repayment
or redemption of such Investments by such Person (but only to the extent constituting return of capital) and (y) the sale of such Investment (but only to the extent such sale does not increase
Consolidated Net Income of the Company), in each case, in an amount not exceeding the aggregate amount of such Investments; plus

        (E)  (1)
the Company's portion (proportionate to the Company's equity interest in such Subsidiary) of the fair market value of the net assets of any Unrestricted Subsidiary
at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary in an amount not to exceed the amount of Investments (excluding Permitted Investments) previously made (and treated as a
Restricted Payment) by the Company of any of its Restricted Subsidiaries in such Unrestricted Subsidiary and (2) the aggregate amount of cash dividends or cash distributions received by the
Company or the Guarantors from an Unrestricted Subsidiary from the Issue Date to the Reference Date. 

In
the case of clause (iii)(B) above, any net cash proceeds from issuances and sales of Qualified Capital Stock of the Company financed directly
or indirectly using funds borrowed from the Company or any Subsidiary of the Company, shall be excluded until and to the extent such borrowing is repaid. 

34

 

        Notwithstanding
the foregoing, the provisions set forth in the immediately preceding paragraph do not prohibit: 

        (1)   the
payment of any dividend or other distribution or redemption within 60 days after the date of declaration of such dividend or call for redemption if such
payment would have been permitted on the date of declaration or call for redemption; 

        (2)   the
acquisition of any shares of Qualified Capital Stock of the Company, solely in exchange for other shares of Qualified Capital Stock of the Company; 

        (3)   the
acquisition of any Indebtedness of the Company or the Guarantors that is subordinate or junior in right of payment to the Notes and Guarantees or the acquisition of
Disqualified Capital Stock either
(i) solely in exchange for shares of Qualified Capital Stock of the Company, or (ii) through the application of net proceeds of a sale for cash (other than to a Subsidiary of the
Company) within sixty (60) days after such sale if no Default or Event of Default would exist after giving effect thereto, of Refinancing Indebtedness; 

        (4)   an
Investment either (i) solely in exchange for shares of Qualified Capital Stock of the Company or (ii) through the application of the net proceeds of a
sale for cash (other than to a Subsidiary of the Company) of shares of Qualified Capital Stock of the Company within sixty (60) days after such sale; 

        (5)   in
the event of a Change of Control, and if no Default shall have occurred and be continuing or would exist after giving effect thereto, the payment, purchase,
redemption, defeasance, satisfaction, discharge or other acquisition or retirement of Indebtedness that is subordinated to the Notes or the Guarantees, in each case, at a purchase price not greater
than 101% of the principal amount of such Indebtedness (or, if such Indebtedness was issued with original issue discount, 101% of the accreted value), plus any accrued and unpaid interest thereon;
provided, however, that prior to such payment, purchase, redemption, defeasance, satisfaction, discharge or other acquisition or retirement, the Company
has made a Change of Control Offer with respect to the Notes as a result of such Change of Control and has repurchased all Notes validly tendered and not withdrawn in connection with such Change of
Control Offer; 

        (6)   (i) general
corporate overhead expenses of Holdings, including, without limitation, franchise taxes and other fees required to maintain the existence of Holdings,
insurance premiums and indemnification claims made by directors or officers of Holdings attributable to the ownership or operation of the Company and its Subsidiaries and (ii) reasonable fees
and expenses paid to members of the board of directors of Holdings; provided, that such fees and expenses described in this clause (ii) are in an
aggregate amount not to exceed $500,000 in any fiscal year; 

        (7)   the
application of the proceeds from the issuance of the Notes on the Issue Date as described under the "Use of Proceeds" section of the Offering Circular; 

        (8)   advances
to any direct or indirect parent entity of the Company to be used by such entity solely to pay federal, state and local income taxes made no earlier than five
days prior to the date on which such entity is required to make such payment in an amount not to exceed the aggregate tax liability of the Company and its Restricted Subsidiaries for such calendar
year determined as if the Company and its Restricted Subsidiaries were a separate affiliated group (as defined in Section 1504 of the Internal Revenue Code of 1986, as amended) filing a
consolidated return, or, to the extent applicable, a separate group filing combined or unitary returns, and then only to the extent that any such payments are actually paid by such entity to
governmental entities; 

        (9)   if
no Default or Event of Default has occurred and is continuing or would exist after giving effect thereto, the purchase, repurchase, redemption or other acquisition of
Capital Stock of the Company from employees, former employees, directors, or former directors of the Company 

35

 

(or
permitted transferees of such employees, former employees, directors or former directors), pursuant to the terms of the agreements (including employment agreements) or plans (or amendments
thereto) approved by the Board of Directors of the Company under which such individuals purchase or sell, or are granted the option to purchase or sell, shares of such Capital Stock;  provided, that the
aggregate amount of such repurchases and other acquisitions in any calendar year shall not exceed $500,000; 

        (10) if
no Default or Event of Default has occurred and is continuing or would exist after giving effect thereto, the payment of the consulting fee pursuant to the
Management Agreement; provided, that the aggregate amount of such fee in any calendar year shall not exceed $1.0 million; and 

        (11) if
no Default or Event of Default shall have occurred and be continuing or would exist after giving effect thereto, other Restricted Payments not to exceed
$10.0 million in the aggregate since the Issue Date. 

        In
determining the aggregate amount of Restricted Payments made subsequent to the Issue Date in accordance with clause (iii) of the
first paragraph of this Section 4.09 amounts expended pursuant to clauses (1), (4)(ii) and  (9) shall be
included in such calculation and amounts expended pursuant to clauses (2), (3), 4(i), (5), (6), (7), (8),
(10) and (11) shall not be included in such calculation. 

        Not
later than the date of making any Restricted Payment, the Company shall deliver to the Trustee an Officers' Certificate stating that such Restricted Payment complies with this
Indenture and setting forth in reasonable detail the basis upon which the required calculations were computed, which calculations may be based upon the Company's latest available internal quarterly
financial statements. 

        Section 4.10    Limitation on Asset Sales.    

        The
Company will not, and will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless: 

        (1)   the
Company or the applicable Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal to the Fair Market Value of
the assets sold or otherwise disposed; 

        (2)   at
least 75% of the consideration received by the Company or the Restricted Subsidiary, as the case may be, from such Asset Sale is in the form of cash or Cash
Equivalents received substantially concurrent with the time of such disposition; provided that the amount of any liabilities (as shown on the most
recent applicable balance sheet) of the Company or such Restricted Subsidiary (other than liabilities that are by their terms subordinated to the Notes) that are assumed by the transferee of any such
assets shall be deemed to be cash for purposes of this provision if the documents governing such liabilities provide that there is no further recourse to the Company or any of its Subsidiaries with
respect to such liabilities; and 

        (3)   the
Company shall apply, or cause such Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset Sale within 360 days of receipt thereof
either: 

        (b)   to
repay any outstanding Indebtedness under the Credit Agreement and correspondingly reduce the commitments thereunder; 

        (c)   to
repurchase, redeem or defease some or all of the Senior Secured Notes in accordance with the terms thereof and the Senior Secured Notes Indenture; 

        (d)   to
reinvest in property, plant, equipment or other long-term assets that replace the properties and assets that were the subject of such Asset Sale or that
will be used or useful in the Permitted Business (including expenditures for maintenance, repair or improvement of existing properties and assets); or 

36

 

        (e)   a
combination of repayment and investment permitted by the foregoing clauses (3)(a),  (3)(b) and 3(c).

        Pending
the final application of Net Cash Proceeds, the Company may temporarily reduce revolving credit borrowings or invest such Net Cash Proceeds in Cash Equivalents. On the 361st day
after an Asset Sale or such earlier date, if any, as the Board of Directors of the Company or of such Restricted Subsidiary determines not to apply the Net Cash Proceeds relating to such Asset Sale as
set forth in clauses (3)(a), 3(b) 3(c) or 3(d) of the preceding paragraph (each, a "Net Proceeds Offer Trigger Date"), such aggregate amount of Net Cash Proceeds which have not been applied (each a
"Net Proceeds Offer Amount") shall be applied by the Company or such Restricted Subsidiary to make an offer to purchase Senior Secured Notes in accordance with the terms of the Senior Secured Notes
Indenture (the "Senior Secured Notes Offer"). If any of the Net Cash Proceeds Amount remains after
the consummation of the Senior Secured Notes Offer, such proceeds shall be applied by the Company or such Restricted Subsidiary to make an offer to purchase (the "Net Proceeds
Offer") on a date (the "Net Proceeds Offer Payment Date") not less than thirty (30) nor more than forty-five
(45) days following the applicable Net Proceeds Offer Trigger Date, from all Holders of the Notes the maximum principal amount of Notes that may be purchased with the Net Proceeds Offer Amount
at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest and Additional Interest, if any, to the date of purchase. 

        If
at any time any consideration other than cash and Cash Equivalents received by the Company or any Restricted Subsidiary, as the case may be, in connection with any Asset Sale is
converted into or sold or otherwise disposed of for cash or Cash Equivalents (other than interest received with respect to any such non-cash consideration), then such conversion or
disposition shall be deemed to be an Asset Sale on the date of such conversion or disposition, as the case may be, and the Net Cash Proceeds thereof shall be applied in accordance with this  Section 4.10. 

        The
Company may defer any Net Proceeds Offer until there is an aggregate unutilized Net Proceeds Offer Amount equal to or in excess of $5.0 million resulting from one or more
Asset Sales in which case the accumulation of such amount shall constitute a Net Proceeds Offer Trigger Date (at which time, the entire unutilized Net Proceeds Offer Amount, and not just the amount in
excess of $5.0 million, shall be applied as required pursuant to this Section 4.10). If any of the Net Cash Proceeds Amount remains after
consummation of a Net Proceeds Offer, the Company may use such amount for any corporate purpose to the extent not otherwise prohibited by this Indenture and the Net Proceeds Offer Amount will be reset
at zero. 

        In
the event of the transfer of substantially all (but not all) of the property and assets of the Company and its Restricted Subsidiaries as an entirety to a Person in a transaction
permitted under Section 5.01 that does not constitute a Change of Control, the successor entity shall be deemed to have sold the properties and
assets of the Company and its Restricted Subsidiaries not so transferred for purposes of this Section 4.10, and shall comply with this  Section 4.10 with respect to such deemed sale as if it constituted an Asset Sale. The Fair Market Value of such properties and assets of the
Company or its Restricted Subsidiaries deemed to be sold shall be deemed to be Net Cash Proceeds for purposes of this Section 4.10. 

        Each
notice of a Net Proceeds Offer shall be mailed first class, postage prepaid, to the record Holders as shown on the register of Holders within twenty (20) days following the
Net Proceeds Offer Trigger Date, with a copy to the Trustee. Upon receiving notice of the Net Proceeds Offer, Holders may elect to tender their Notes in whole or in part in integral multiples of
£1,000 (provided no Notes of less than £50,000 may remain outstanding thereafter) in exchange for cash. To the extent Holders properly tender Notes in an amount exceeding the
Net Proceeds Offer Amount, Notes of tendering Holders will be purchased on a pro rata basis (based on amounts tendered). A Net Proceeds Offer shall
remain open for a period of 20 Business Days or such longer period as may be required by law. 

37

 

        The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant to a Net Proceeds Offer. To the extent that the provisions of any securities laws or regulations conflict with this  Section 4.10, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.10 by virtue of such compliance. 

38

   
        Section 4.11    Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.    

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

        (1)   pay
dividends or make any other distributions on or in respect of its Capital Stock; 

        (2)   make
loans or advances or to pay any Indebtedness or other obligation owed to the Company or any other Restricted Subsidiary; or 

        (3)   transfer
any of its property or assets to the Company or any other Restricted Subsidiary, 

        except
for such encumbrances or restrictions existing: 

        (b)   under
applicable law, rule, regulation, order, license or permit; 

        (c)   under
this Indenture; 

        (d)   by
reason of customary non-assignment provisions of any lease of any Restricted Subsidiary to the extent such provisions restrict the transfer of the lease
or the property leased thereunder; 

        (e)   under
any instrument governing Acquired Indebtedness, which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other
than the Person or the properties or assets of the Person so acquired; 

        (f)    under
the Credit Agreement and the Senior Secured Notes Indenture; 

        (g)   by
reason of restrictions on the transfer of assets subject to any Permitted Lien; 

        (h)   under
customary agreements to sell assets or Capital Stock permitted to be sold under this Indenture pending the closing of such sale; 

        (i)    under
Purchase Money Indebtedness or Capitalized Lease Obligations permitted under this Indenture; provided, that such
encumbrances and restrictions relate only to the assets financed with such Indebtedness; 

        (j)    by
reason of restrictions on cash or other deposits under bona fide arrangements with customers entered into in the ordinary course of business, consistent with past
practice; 

        (k)   on
any Foreign Restricted Subsidiary under Indebtedness of such Subsidiary permitted under this Indenture; or 

        (l)    under
Refinancing Indebtedness incurred to Refinance the Indebtedness referred to in clause (b),  (d) or (e);
provided, that the provisions relating to such encumbrance or restriction contained in any
such Indebtedness are no more adverse to the Holders and no less favorable or more onerous to the Company and its Restricted Subsidiaries than the provisions relating to such encumbrance or
restriction contained in agreements referred to in the Indebtedness being Refinanced. 

        Section 4.12    Limitation on Issuances and Sales of Capital Stock of Subsidiaries.    

        The
Company will not, and will not permit or cause any of its Restricted Subsidiaries to, transfer, convey, issue or sell any Capital Stock of any Restricted Subsidiary to any Person
(other than to the 

39

 

Company
or to a Wholly Owned Subsidiary and directors' qualifying shares); provided, that this Section 4.12 shall not prohibit: 

        (1)   any
transfer, issuance or sale if, immediately after giving effect thereto, 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 4.09 if made
on the date of such issuance or sale; or 

        (2)   the
sale of all of the Capital Stock of a Restricted Subsidiary in compliance with Section 4.10. 

        Section 4.13    Limitation on Liens.    

        The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or suffer to exist any Lien of any kind on any asset now
owned or hereafter acquired by the Company or any of its Restricted Subsidiaries or any proceeds, income or profits therefrom, securing any Indebtedness, except Permitted Liens or unless (i) in
the case of any Lien securing Indebtedness that ranks pari passu with the Notes, contemporaneously therewith effective provision is made to secure the
Notes equally and ratably with such Indebtedness with a Lien on the same assets securing such Indebtedness for so long as such Indebtedness is secured by such Lien and (ii) in the case of any
Lien securing Indebtedness that is subordinated in right of payment to the Notes, contemporaneously therewith effective provision is made to secure the Notes with a Lien on the same assets securing
such Indebtedness that is prior to the Lien securing such Indebtedness. 

        Section 4.14    Limitations on Transactions with Affiliates.    

        (a)   The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction or series of
related transactions (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with, or for the benefit of, any of its Affiliates (each an
"Affiliate Transaction"), other than: 

        (x)   Permitted
Affiliate Transactions, and 

        (y)   Affiliate
Transactions on terms that are no less favorable than those that might reasonably have been obtained in a comparable transaction at such time on an arm's
length basis from a Person that is not an Affiliate of the Company or such Restricted Subsidiary. 

        With
respect to all Affiliate Transactions (other than Permitted Affiliated Transactions): 

        (i)    the
Company will deliver an Officers' Certificate to the Trustee certifying that such transactions are in compliance with  clause (y) of the preceding paragraph; 

        (ii)   if
such Affiliate Transaction involves aggregate payments or other property with a Fair Market Value in excess of $2.5 million shall be approved by a majority of
the members of the Board of Directors of the Company (including a majority of the disinterested members thereof), as the case may be, such approval to be evidenced by a Board Resolution stating that
such Board of Directors has determined that such transaction complies with this Section 4.14(ii); and 

        (iii)  if
such Affiliate Transaction involves an aggregate Fair Market Value of more than $5.0 million, the Company will, prior to the consummation thereof, obtain a
favorable opinion as to the fairness of the financial terms of such transaction or series of related transactions to the Company or the relevant Restricted Subsidiary, as the case may be, from an
Independent Financial Advisor and file the same with the Trustee. 

40

 

        (b)   The
restrictions set forth in the first paragraph of this Section 4.14 will not apply to the following
transactions (collectively, "Permitted Affiliate Transactions"): 

        (1)   reasonable
fees and compensation paid to and indemnity provided on behalf of, officers, directors, employees or consultants of the Company or any Restricted Subsidiary; 

        (2)   transactions
exclusively between or among the Company and any of its Wholly Owned Subsidiaries or exclusively between or among such Wholly Owned Subsidiaries, provided,
that such transactions are not otherwise prohibited by this Indenture; 

        (3)   any
agreement as in effect as of the Issue Date or any transaction contemplated thereby and any amendment thereto or any replacement agreement thereto so long as any
such amendment or replacement agreement is not more disadvantageous to the Holders, the Company or the Restricted Subsidiaries in all material respects than the original agreement as in effect on the
Issue Date; 

        (4)   Restricted
Payments permitted by this Indenture or Permitted Investments; 

        (5)   any
merger or other transaction with an Affiliate solely for the purpose of reincorporating the Company in another jurisdiction or creating a holding company of the
Company; 

        (6)   any
employment, stock option, stock repurchase, employee benefit compensation, business expense reimbursement, severance, termination or other employment related
agreements, arrangements or plans entered into in good faith by the Company or any of its Restricted Subsidiaries in the ordinary course of business; and 

        (7)   sales
or purchases of inventory, other products or services to or from any Affiliate of the Company entered into in the ordinary course of business on terms no less
favorable to the Company and its Subsidiaries than those that could be obtained at the time of such sale or purchase in arm's length dealings with a Person who is not an Affiliate. 

        Section 4.15    Additional Subsidiary Guarantees.    

        If
the Company or any of its Restricted Subsidiaries acquires or creates another Domestic Restricted Subsidiary after the Issue Date (other than an Unrestricted Subsidiary), then the
Company shall cause such Domestic Restricted Subsidiary to: 

        (1)   execute
and deliver to the Trustee a supplemental indenture in form reasonably satisfactory to the Trustee pursuant to which such Subsidiary shall unconditionally
guarantee on a senior unsecured basis all of the Company's obligations under the Notes and this Indenture on the terms set forth in this Indenture; provided, that Inertia Dynamics LLC will not execute
and deliver such supplemental indenture until consummation of the exchange offer of the Senior Secured Notes pursuant to the Registration Rights Agreement dated November 30, 2004, between the
Company and Jefferies & Company, Inc.; 

        (2)   take
such further action and execute and deliver such other documents specified in this Indenture or otherwise reasonably requested by the Trustee to effectuate the
foregoing; and 

        (3)   deliver
to the Trustee an Opinion of Counsel that such supplemental indenture and any other documents required to be delivered have been duly authorized, executed and
delivered by such Domestic Restricted Subsidiary and constitutes a legal, valid, binding and enforceable obligations of such Domestic Restricted Subsidiary and such other opinions regarding the
perfection of such Liens in the assets of such Domestic Restricted Subsidiary. 

Thereafter,
such Subsidiary shall be a Guarantor for all purposes of this Indenture. 

41

 

        Section 4.16    Conduct of Business.    

        The
Company will not, and will not permit any of its Restricted Subsidiaries to, engage in any businesses other than Permitted Businesses. 

        Section 4.17    Reports to Holders.    

        Whether
or not required by the rules and regulations of the United States Securities and Exchange Commission (the "SEC"), so long as any
Notes are outstanding, the Company will furnish to the Trustee and, upon request, to the Holders: 

        (1)   all
quarterly and annual financial information that would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the
Company were required to file such Forms, including a "Management's Discussion and Analysis of Financial Condition and Results of Operations" that describes the financial condition and results of
operations of the Company and its consolidated Subsidiaries (showing in reasonable detail, 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," 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, if any) and, with respect to the annual information only, a report thereon by the Company's certified independent
accountants; and 

        (2)   all
current reports that would be required to be filed with the SEC on Form 8-K if the Company were required to file such reports, in each case within
the time periods specified in the SEC's rules and regulations. 

        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). 

        Notwithstanding
this Section 4.17, the Company may satisfy such requirements prior to the effectiveness of the registration
statement contemplated by the Registration Rights Agreement by filing with the SEC such registration statement, to the extent that any such registration statement contains substantially the same
information as would be required to be filed by the Company if it were subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, and by providing the Trustee and Holders
with such Registration Statement (and any amendments thereto) promptly following the filing thereof. 

        In
addition, following the consummation of the Exchange Offer, whether or not required by the rules and regulations of the SEC, the Company will file a copy of all such
information and reports with the SEC for public availability within the time periods specified in the SEC's rules and regulations (unless the SEC will not accept such a filing). In addition, the
Company has agreed that, prior to the consummation of the Exchange Offer, for so long as any Notes remain outstanding, it will furnish to the Holders upon their request, the information required to be
delivered pursuant to Rule 144(A)(d)(4) under the Securities Act. 

        Section 4.18    Payments for Consent.    

        The
Company will not, and will 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 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 or is paid to all Holders that
consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement. 

42

 

        Section 4.19    Repurchase Upon Change of Control.    

        (a)   Upon
the occurrence of a Change of Control, the Company shall make an offer to purchase all or a portion (in integral multiples of £1,000;  provided no Notes of less than £50,000 may remain
outstanding thereafter) of each Holder's outstanding Notes pursuant to the requirements
described in clause (b) below (the "Change of Control Offer") at a purchase price in cash equal
to 101% of the principal amount thereof on the date of purchase plus accrued and unpaid interest and Additional Interest, if any, to the date of purchase. 

        (b)   Within
thirty (30) days following the date upon which the Change of Control occurred, the Company shall send, by registered first class mail, postage prepaid, a
notice to each record Holder as shown on
the register of Holders, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. The notice to the Holders shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Change of Control Offer. Such notice shall state: 

        (1)   that
the Change of Control Offer is being made pursuant to this Section 4.19 and that, to the extent lawful, all
Notes tendered and not withdrawn shall be accepted for payment; 

        (2)   the
purchase price (including the amount of accrued interest, if any) and the purchase date (which shall be no earlier than thirty (30) days nor later than sixty
(60) days from the date such notice is mailed, other than as may be required by law) (the "Change of Control Payment Date"); 

        (3)   that
any Note not tendered shall continue to accrue interest and Additional Interest, if applicable; 

        (4)   that,
unless the Company defaults in making payment therefor, any Note accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest, and
Additional Interest, if applicable, after the Change of Control Payment Date; 

        (5)   that
Holders electing to have a Note purchased pursuant to a Change of Control Offer shall be required to surrender the Note, with the form entitled "Option of Holder to
Elect Purchase" on the reverse of the Note completed, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day prior to the Change of Control
Payment Date; 

        (6)   that
Holders shall be entitled to withdraw their election if the Paying Agent receives, not later than five (5) Business Days prior to the Change of Control
Payment Date, a facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Notes the Holder delivered for purchase and a statement that such Holder is
withdrawing its election to have such Notes purchased; 

        (7)   that
a Holder whose Note is purchased only in part shall be issued a new Note in a principal amount equal to unpurchased portion of the original Note upon cancellation
of the original Note (or appropriate adjustments to the amount and beneficial interests in a Global Note will be made); provided that each such new Note
will be in a principal amount of £50,000 or £1,000 integral multiples in excess thereof; and 

        (8)   the
circumstances and relevant facts regarding such Change of Control. 

        If
any of the Notes subject to the Change of Control Offer is in the form of a Global Note, then the Company shall modify such notice to the extent necessary to comply with the
procedures of the Common Depository applicable to repurchases. 

        On
or before the Change of Control Payment Date, the Company shall, to the extent lawful (i) accept for payment Notes or portions thereof properly tendered pursuant to the Change
of Control 

43

 

Offer,
(ii) deposit with the Paying Agent U.K. Legal Tender sufficient to pay the purchase price plus accrued interest and Additional Interest, if any, 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 Company. The Paying Agent shall promptly mail to the Holders of Notes so tendered the purchase price for such Notes and the Company shall promptly issue and the Trustee
shall promptly (but in any case not later than five days after the Change of Control Payment Date) authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note in a
principal amount equal to the unpurchased portion of the Notes surrendered; provided that each such new Note will be in a principal amount of
£50,000 or £1,000 integral multiples in excess thereof. Any Notes not so accepted shall be promptly mailed by the Company to the Holders thereof. For purposes of this  Section 4.19, the
Trustee shall act as the Paying Agent. 

        Any
amounts remaining after the purchase of Notes pursuant to a Change of Control Offer shall be returned by the Trustee to the Company. 

        Neither
the Board of Directors of the Company nor the Trustee may waive the Company's obligation to offer to purchase the Notes pursuant to this  Section 4.19. 

        The
Company 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 of this Section 4.19 and purchases all Notes validly tendered and not withdrawn under such Change of Control
Offer. 

        The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant to a Change of Control Offer. To the extent the provisions of any securities laws or regulations conflict with this  Section 4.19, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached their
obligations under this Section 4.19 by virtue thereof. 

        Section 4.20    Additional Interest.    

        If
Additional Interest becomes payable by the Company pursuant to the Registration Rights Agreement, the Company shall deliver to the Trustee an Officers' Certificate stating
(i) the amount of Additional Interest due and payable, (ii) the Section of the Registration Rights Agreement pursuant to which Additional Interest is due and payable and (iii) the
date on which Additional Interest is payable. Unless and until a Responsible Officer of the Trustee receives such an Officers' Certificate, the Trustee may assume without inquiry that no Additional
Interest is payable; provided, that the failure of the Company to deliver to the Trustee such Officers' Certificate shall not relieve the Company of its
obligation to pay any such Additional Interest when due and payable. 

        Section 4.21    Hay Hall Acquisition.    

        Notwithstanding
anything contained elsewhere in this Indenture: (a) the Company or any Restricted Subsidiary may acquire all of the outstanding capital stock of Hay Hall Holdings
Limited and its Subsidiaries (the "Hay Hall Acquisition") for a purchase price not to exceed $50.5 million (plus any purchase price adjustments
provided for in the stock purchase agreement therefor), which purchase price shall be paid in cash as follows: (i) not less than $44.5 million in cash payable to the sellers and
(ii) up to $6.0 million of cash which shall be deposited in an escrow account to be released to Sellers on or prior to December 31, 2006 (the "Deferred
Cash"); and (b) the Company may issue and the Guarantors may guarantee on a senior unsecured basis up to $55.0 million aggregate principal amount of the Notes,
the net proceeds of which are to be used by the Company directly or indirectly (by a loan or loans from the Company to one or more of its Restricted Subsidiaries) to finance the Hay Hall Acquisition
and pay related fees and expenses. The obligation to pay the Deferred Cash shall be 

44

 

represented
by loan notes (the "Loan Notes"); provided that the sole recourse of the holders of the Loan Notes shall be to amounts in such escrow
account unless the Company takes action to prevent or interfere in the release of such funds from such escrow account. Without limiting the foregoing, the Hay Hall Acquisition (and any loans from the
Company to one or more of its Restricted Subsidiaries in connection therewith) shall not be a Restricted Payment, the Loan Notes shall not constitute Indebtedness, and any Liens on such account
securing obligations under such Loan Notes shall be "Permitted Liens" (and the assets in such account shall not be collateral therefor). Following such transaction, substantially simultaneous
transfers of assets between the Foreign Restricted Subsidiaries solely to consolidate operations in connection with the Hay Hall Acquisition shall not be Asset Sales and shall not otherwise be deemed
to violate this Indenture and the consummation of any transaction solely to transfer the ownership of Inertia Dynamics LLC from being owned by a Foreign Restricted Subsidiary to instead be owned by a
Guarantor shall not be a Restricted Payment and shall not otherwise be deemed to violate this Indenture. 

        Section 4.22    Listing.    

        The
Company shall use its best efforts to have the Notes accepted for listing on the Euro MTF Market of the Luxembourg Stock Exchange as promptly as practicable after the Issue Date and
to maintain such listing for so long as the Notes are outstanding. 

45

   ARTICLE FIVE  

SUCCESSOR CORPORATION  

        Section 5.01 Merger, Consolidation and Sale of Assets. 

        The
Company will not, in a single transaction or series of related transactions, consolidate or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise
dispose of (or cause or permit any Restricted Subsidiary to sell, assign, transfer, lease, convey or otherwise dispose of) all or substantially all of the Company's assets (determined on a
consolidated basis for the Company and its Restricted Subsidiaries) whether as an entirety or substantially as an entirety to any Person unless: 

        (1)   either:

        (a)   the
Company shall be the surviving or continuing corporation; or 

        (b)   the
Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by sale, assignment, transfer,
lease, conveyance or other disposition the properties and assets of the Company and of the Company's Restricted Subsidiaries substantially as an entirety (the "Surviving
Entity"): 

        (x)   shall
be an entity organized and validly existing under the laws of the United States or any State thereof or the District of Columbia; and 

        (y)   shall
expressly assume by supplemental indenture (in form and substance reasonably satisfactory to the Trustee), executed and delivered to the Trustee, the due and
punctual payment of the principal of,
and premium, if any, interest and Additional Interest, if any, on all of the Notes and the performance of every covenant of the Notes, this Indenture and the Registration Rights Agreement on the part
of the Company to be performed or observed thereunder; 

        (2)   immediately
after giving effect to such transaction and the assumption contemplated by clause (1)(b)(y) above
(including giving effect to any Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred in connection with or in respect of such transaction), (a) the Company or such
Surviving Entity, as the case may be, is able to incur at least $1.00 of additional Indebtedness (other than Permitted Indebtedness) in compliance with  Section 4.08 and (b) no Default or Event
of Default shall have occurred or be continuing; and 

        (3)   the
Company or the Surviving Entity shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, merger,
sale, assignment, transfer, lease, conveyance or other disposition and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with the
applicable provisions of this Indenture and that all conditions precedent in this Indenture relating to such transaction have been satisfied. 

        For
purposes of Section 5.01(1), the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or more Restricted Subsidiaries of the Company, the Capital Stock of which constitutes all or substantially all of the
properties and assets of the Company, shall be deemed to be the transfer of all or substantially all of the properties and assets of the Company. 

        Section 5.02    Successor Entity Substituted.    

        Upon
any consolidation, combination or merger or any transfer of all or substantially all of the assets of the Company in accordance with  Section 5.01, in which the Company is not surviving or the
continuing corporation, the successor Person formed by such consolidation or into
which the Company 

46

 

is
merged or to which such conveyance, lease or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture and the Notes
with the same effect as if such surviving entity had been named as such. Upon such substitution, the Company and any Guarantors that remain Subsidiaries of the Company shall be released and discharged
from their obligations under this Indenture and the Guarantees. 

ARTICLE SIX  

DEFAULT AND REMEDIES  

        Section 6.01 Events of Default. 

        The
following events are defined as "Events of Default": 

        (1)   the
failure to pay interest and Additional Interest, if any, on any Notes when the same becomes due and payable and the default continues for a period of thirty
(30) days; 

        (2)   the
failure to pay the principal of or premium, if any, on any Notes, when such principal becomes due and payable, at maturity, upon redemption or otherwise (including
the failure to make a payment to purchase Notes tendered pursuant to a Change of Control Offer or a Net Proceeds Offer when such payments become due); 

        (3)   a
default in the observance or performance of any other covenant or agreement contained in this Indenture (other than the payment of the principal of, or premium, if
any, or interest or Additional Interest, if any, on any Note) which default continues for a period of thirty (30) days after the Company receives written notice specifying the default (and
demanding that such default be remedied) from the Trustee or the Holders of at least 25% of the outstanding principal amount of the Notes (except in the case of a default pursuant to  Section 5.01,
which will constitute an Event of Default with such notice requirement but without such passage-of-time
requirement); 

        (4)   the
failure to pay at final maturity (giving effect to any applicable grace periods and any extensions thereof) the principal amount of any Indebtedness of the Company
or any Restricted Subsidiary other than the Notes and Guarantees, or the acceleration of the final stated maturity of any such Indebtedness (which acceleration is not rescinded, annulled or otherwise
cured within twenty (20) days from the date of acceleration) if the aggregate principal amount of such Indebtedness, together with the principal amount of any other such Indebtedness in default
for failure to pay principal at final maturity or which has been accelerated (in each case with respect to which the 20-day period described above has elapsed), aggregates
$5.0 million or more at any time; 

        (5)   one
or more judgments in an aggregate amount in excess of $5.0 million shall have been rendered against the Company or any of its Restricted Subsidiaries (other
than any judgment as to which a reputable and solvent third party insurer has accepted full coverage) and such judgments remain undischarged, unpaid or unstayed for a period of sixty (60) days
after such judgment or judgments become final and non-appealable; 

        (6)   the
Company or any Significant Subsidiary (A) commences a voluntary case or proceeding under the Bankruptcy Code or any other state or federal bankruptcy or
insolvency law with respect to itself, (B) consents to the entry of an order for relief against it in an involuntary case under the Bankruptcy Code or any other state or federal bankruptcy or
insolvency law, (C) consents to the appointment of a Custodian of it or for substantially all of its property, (D) makes a general assignment for the benefit of its creditors; or
(E) takes any corporate action to authorize or effect any of the foregoing; 

47

 

        (7)   a
court of competent jurisdiction enters an order or decree that (A) is an order for relief in respect of the Company or any Significant Subsidiary in an
involuntary case under the Bankruptcy Code or any other state or federal bankruptcy or insolvency law, (B) appoints a Custodian of the Company or any Significant Subsidiary or for substantially
all of its property or (C) orders the winding-up or liquidation of its affairs; and such order or decree shall remain unstayed and in effect for a period of sixty
(60) consecutive days; or 

        (8)   any
Guarantee of a Significant Subsidiary ceases to be in full force and effect or any Guarantee of a Significant Subsidiary is declared to be null and void and
unenforceable or any Guarantee of a Significant Subsidiary is found to be invalid or any Guarantor denies its liability under its Guarantee (other than by reason of release of a Guarantor in
accordance with the terms of this Indenture). 

        Section 6.02    Acceleration.    

        (a)   If
an Event of Default (other than an Event of Default specified in Section 6.01(6) or  (7)above with respect to the Company) shall occur and be
continuing and has not been waived, the Trustee or the Holders of at least 25% in principal
amount of outstanding Notes may declare the principal of and premium, if any, accrued interest and Additional Interest, if any, on all the Notes to be due and payable by notice in writing to the
Company and the Trustee specifying the Event of Default and that it is a "notice of acceleration" (the "Acceleration Notice"), and the same shall become
immediately due and payable. 

        (b)   If
an Event of Default specified in Section 6.01(6) or (7) above
with respect to the Company occurs and is continuing, then all unpaid principal of, and premium, if any, and accrued and unpaid interest and Additional Interest, if any, on all of the outstanding
Notes shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. 

        (c)   At
any time after a declaration of acceleration with respect to the Notes as described in Section 6.02(a) and  (b), the Holders of a majority in principal
amount of the Notes may rescind and cancel such declaration and its consequences: 

        (ii)   if
the rescission would not conflict with any judgment or decree; 

        (iii)  if
all existing Events of Default have been cured or waived except nonpayment of principal, premium, if any, interest or Additional Interest, if any, that has become
due solely because of the acceleration; 

        (iv)  to
the extent the payment of such interest is lawful, interest on overdue installments of interest and overdue principal and premium, if any, and Additional Interest,
if any, which has become due otherwise than by such declaration of acceleration, has been paid; 

        (v)   if
the Company has paid the Trustee its reasonable compensation and reimbursed the Trustee for its reasonable expenses, disbursements and its advances; and 

        (vi)  in
the event of the cure or waiver of an Event of Default of the type described in Section 6.01(6) or  (7), the Trustee shall have received an Officers'
Certificate and an Opinion of Counsel that such Event of Default has been cured or waived.
 

        (d)   No
such rescission shall affect any subsequent Default or impair any right consequent thereto. 

        Section 6.03    Other Remedies.    

        If
an Event of Default occurs and is continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of principal of, premium, if any, or
interest, or 

48

 

Additional
Interest, if any, on the Notes or to enforce the performance of any provision of the Notes or this Indenture. 

        The
Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder 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. No remedy is exclusive of any
other remedy. All available remedies are cumulative to the extent permitted by law. 

        Section 6.04    Waiver of Past Defaults.    

        Subject
to Sections 2.09, 6.07 and 9.02,
the Holders of a majority in principal amount of the Notes may waive any existing Default or Event of Default and its consequences, except (other than as provided in  Section 6.02(c)) a default in
the payment of the principal of or premium, if any, interest or Additional Interest, if any, on any Notes. When a
Default or Event of Default is waived, it is cured and ceases to exist. 

        Section 6.05    Control by Majority.    

        Subject
to Section 2.09, the Holders of a majority in principal amount of the outstanding Notes may direct the time, method and
place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on the Trustee, including, without limitation, any remedies provided
for in Section 6.03. Subject to Section 7.01 and  7.02(f), however, the Trustee may refuse to
follow any direction (which direction, if sent to the Trustee shall be in writing) that the Trustee
reasonably believes conflicts with any applicable law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of another Holder, or that may subject the Trustee to
personal liability; provided that the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction (which direction, if sent to the Trustee, shall be in
writing). 

        Section 6.06    Limitation on Suits.    

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

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

        (2)   subject
to Section 2.09, Holders of at least 25% in principal amount of the outstanding Notes make a written
request to the Trustee to institute proceedings in respect of that Event of Default; 

        (3)   such
Holders offer to the Trustee indemnity reasonably satisfactory to the Trustee against any loss, liability or expense to be incurred in compliance with such request; 

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

        (5)   during
such sixty (60) day period the Holders of a majority in principal amount of the outstanding Notes do not give the Trustee a written direction which, in the
opinion of the Trustee, is inconsistent with the request. 

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

        Section 6.07    Rights of Holders to Receive Payment.    

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

49

 

        Section 6.08    Collection Suit by Trustee.    

        If
an Event of Default specified in Section 6.01(1) or (2) occurs and is
continuing, the Trustee may recover judgment (i) in its own name and (ii) as trustee of an express trust, in each case against the Company or any other obligor on the Notes for the whole
amount of principal of, premium, if any, and
accrued interest, and Additional Interest, if any, remaining unpaid on, the Notes, together with interest on overdue principal and, to the extent that payment of such interest is lawful, interest on
overdue installments of interest at the rate set forth in Section 4.01 and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents and counsel and any other amounts due the Trustee under  Section 7.07. 

        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 allowed in any judicial proceedings relating to the Company or any other
obligor upon the Notes, any of their respective creditors or any of their respective property and shall be entitled and empowered to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same, and any Custodian in any such judicial proceedings 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, taxes, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07. The Company's payment obligations
under this Section 6.09 shall be secured in accordance with Section 7.07. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting
the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

        Section 6.10    Priorities.    

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

        First:    to the Trustee, the Paying Agent and the Registrar for amounts due under  Section 7.07(including payment of all compensation expense, all liabilities incurred and all advances made by the Trustee and the costs and
expenses of collection); 

        Second:    if the Holders are forced to proceed against the Company directly without the Trustee, to Holders for their
collection costs; 

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

        Fourth:    to the Company or any other obligor on the Notes, as their interests may appear, or as a court of competent
jurisdiction may direct. 

        The
Trustee, upon prior written notice to the Company, may fix a record date and payment date for any payment to Holders pursuant to this  Section 6.10. 

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        Section 6.11    Undertaking for Costs.    

        All
parties to this Indenture agree, and each Holder by its acceptance of its Note shall be deemed to have agreed, that 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 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 pursuant to Section 6.07, or a suit by a Holder or Holders of more than 10% in principal amount of the outstanding Notes. 

        Section 6.12    Restoration of Rights and Remedies.    

        If
the Trustee or any Holder has instituted any proceedings to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or
has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding has been instituted. 

ARTICLE SEVEN  

TRUSTEE  

        Section 7.01 Duties of Trustee. 

        The
duties and responsibilities of the Trustee shall be as provided by the TIA and as set forth herein. 

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

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

        (2)   the
duties of the Trustee shall be determined solely by the express provisions of this Indenture and the TIA, and the Trustee need perform only those duties as are
specifically set forth in this Indenture and no covenants or obligations shall be implied in or read into this Indenture against the Trustee; and 

        (3)   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; provided,  however, in case of any such certificates
or opinions furnished to the Trustee which by the provisions hereof are furnished to the Trustee, the Trustee
shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 

        (c)   Notwithstanding
anything to the contrary herein contained, the Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act,
or its own willful misconduct, except that: 

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

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

        (6)   the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to  Section 6.05. 

        (d)   No
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any liability. The Trustee shall be under no obligation to
exercise of any of its rights or powers under this Indenture at the request, order or direction of any Holders unless such Holders have offered to the Trustee security and indemnity reasonably
satisfactory to the Trustee against the costs and expenses which may be incurred by it in compliance with such request, order or direction. 

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

        (f)    The
Trustee shall not be liable for interest on any money or assets received by it except as the Trustee may agree in writing with the Company. Money and assets held in
trust by the Trustee need not be segregated from other funds or assets held by the Trustee except to the extent required by law. 

        Section 7.02    Rights of Trustee.    

        Subject
to Section 7.01: 

        (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, request direction, consent, order, bond, note or other paper or document believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not
investigate any fact or matter stated in the document. 

        (b)   Before
the Trustee acts or refrains from acting, it may consult with counsel of its selection and may require an Officers' Certificate or an Opinion of Counsel, or both,
which shall conform to Sections 11.04 and 11.05. The Trustee shall not be liable for any action it takes
or omits to take in good faith in reliance on such Officers' Certificate or Opinion of Counsel. The written advice of the Trustee's counsel or any Opinion of Counsel shall be full and complete
authorization and protection from liability in respect of any action taken, suffered or omitted by the Trustee hereunder in good faith and in reliance thereon. 

        (c)   The
Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent or attorney appointed with due care. 

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

        (e)   The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, notice,
request, direction, consent, order, bond, debenture, 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, upon reasonable notice to the Company, to examine the books, records and premises of
the Company, personally or by agent or attorney and to consult with the officers and representatives of the Company, including the Company's accountants and attorneys. Except as expressly stated
herein to the contrary, in no event shall the Trustee have any responsibility to ascertain whether there has been compliance with Articles Four or  Five
hereof. 

        (f)    The
Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder. 

52

 

        (g)   Unless
otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the
Company and any resolution of the Board of Directors shall be sufficient if evidenced by a copy of such resolution certified by an Officer of the Company to have been duly adopted and in full force
and effect on the date hereof. 

        (h)   The
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Trust Officer of the Trustee has actual knowledge thereof or shall have
received from the Company, any Guarantor or any other obligor upon the Notes or from any Holder written notice thereof at its address set forth in  Section 11.02 hereof, and such notice references
the Notes and this Indenture. 

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

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

        (k)   The
permissive right of the Trustee to take any action under this Indenture shall not be construed as a duty to so act. 

        Section 7.03    Individual Rights of Trustee.    

        The
Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company, any Subsidiary of the Company or its respective
Affiliates with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. However, the Trustee must comply with Sections
7.10 and 7.11 of this Indenture, and the Trustee is subject to TIA Sections 310(b) and 311. 

        Section 7.04    Trustee's Disclaimer.    

        The
Trustee makes no representation as to the validity, adequacy or sufficiency of this Indenture or the Notes, and it shall not be accountable for the Company's use of the proceeds from
the Notes, and it shall not be responsible for any statement of the Company in this Indenture or the Notes or any other documents in connection with the issuance of the Notes other than the Trustee's
certificate of authentication. 

        Section 7.05    Notice of Default.    

        If
a Default or an Event of Default occurs and is continuing and if a Trust Officer has actual knowledge or has received written notice from the Company or any Holder, the Trustee shall
mail to each Holder, with a copy to the Company, notice of the Default or Event of Default within ninety (90) days thereof. Except in the case of a Default or an Event of Default in payment of
principal of, premium, if any, interest or Additional Interest, if any, on, any Note, including an accelerated payment and the failure to make payment on the Change of Control Payment Date pursuant to
a Change of
Control Offer and, except in the case of a failure to comply with Article Five, the Trustee may withhold the notice if and so long as its Board of
Directors, the executive committee of its Board of Directors or a committee of its directors and/or Trust Officers in good faith determines that withholding the notice is in the interest of the
Holders. 

53

   
        Section 7.06    Reports by Trustee to Holders.    

        Within
sixty (60) days after each May 15, beginning with May 15, 2006, the Trustee shall, to the extent that any of the events described in TIA Section 313(a)
occurred within the previous twelve months, but not otherwise, mail to each Holder a brief report dated as of such date that complies with TIA Section 313(a). The Trustee also shall comply with
TIA Sections 313(b) and (c). 

        A
copy of each report at the time of its mailing to Holders shall be mailed to the Company and filed by the Company with the SEC and each stock exchange or market, if any, on which the
Notes are listed or quoted. 

        The
Company shall promptly notify the Trustee if the Notes become listed or quoted on any stock exchange or market and the Trustee shall comply with TIA Section 313(d). 

        Section 7.07    Compensation and Indemnity.    

        The
Company shall pay to the Trustee, each Paying Agent and the Registrar (each an "Indemnified Party") from time to time compensation for
their respective services as Trustee, Paying Agent or Registrar, as the case may be, as agreed to between each of the Trustee, the Paying Agent and the Registrar, on the one hand and the Company, on
the other. The Trustee's compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse each Indemnified Party upon request for all
reasonable out-of-pocket expenses incurred or made by it in connection with the performance of its duties under, as the case may be, this Indenture. Such expenses shall include
the reasonable fees and expenses of each of such Indemnified Party's agents and counsel. 

        The
Company and the Guarantors, jointly and severally, hereby indemnify each Indemnified Party and its agents, employees, stockholders and directors and officers for, and holds each of
them harmless against, any loss, cost, claim, liability or expense (including taxes) incurred by any of them except to the extent caused by any gross negligence or willful misconduct on the part of
such Indemnified Party, arising out of or in connection with this Indenture, or the administration of this trust, including the reasonable costs and expenses of enforcing this Indenture against the
Company (including this Section 7.07) and defending themselves against any claim or liability in connection with the exercise or performance of
any of their rights, powers or duties hereunder or thereunder (including the reasonable
fees and expenses of counsel). The Trustee shall notify the Company promptly of any claim asserted against an Indemnified Party for which such Indemnified Party has advised the Trustee that it may
seek indemnity hereunder. Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder. At the Indemnified Party's sole discretion, the Company shall
defend the claim and the Indemnified Party shall cooperate and may participate in the defense; provided that any settlement of a claim shall be approved in writing by the Indemnified Party.
Alternatively, the Indemnified Party may at its option have separate counsel of its own choosing and the Company shall pay the reasonable fees and expenses of such counsel; provided that the Company
shall not be required to pay such fees and expenses if it assumes the Indemnified Party's defense and there is no conflict of interest between the Company and the Indemnified Party in connection with
such defense as reasonably determined by the Indemnified Party. The Company need not pay for any settlement made without its written consent, which consent shall not be unreasonably withheld. 

        To
secure the Company's and each Guarantor's payment obligations in this Section 7.07, each Indemnified Party shall have a lien
prior to the Notes on all money and properties held or collected by the Trustee, in its capacity as Trustee, except assets or money held in trust to pay principal of or interest on particular Notes. 

        When
an Indemnified Party incurs expenses or renders services after an Event of Default specified in Section 6.01(6) or  (7) occurs, such expenses
(including the reasonable fees and expenses of its counsel) and the compensation for such services are intended to constitute
expenses of administration under any Bankruptcy Code. 

54

 

        The
obligations of the Company under this Section 7.07 shall survive the satisfaction and discharge of this Indenture or the
resignation or removal of the Trustee. 

        The
Trustee shall comply with the provisions of TIA Section 312(b)(2) to the extent applicable. 

        Section 7.08    Replacement of Trustee.    

        The
Trustee may resign by providing written notice to the Company. No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this  Section 7.08 shall become
effective until the acceptance of appointment by the successor Trustee in accordance with this Indenture. The Holders
of a majority in aggregate principal amount of the outstanding Notes may remove the Trustee by so notifying the Company and the Trustee in writing and may appoint a successor Trustee. The Company, by
a Board Resolution, may remove the Trustee if: 

        (1)   the
Trustee fails to comply with Section 7.10; 

        (2)   the
Trustee is adjudged bankrupt or insolvent; 

        (3)   a
receiver or other public officer takes charge of the Trustee or its property; or 

        (4)   the
Trustee becomes incapable of acting with respect to the Notes. 

        If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall notify each Holder in writing of such event and shall promptly
appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in aggregate principal amount of the outstanding Notes may appoint a successor Trustee
to replace the successor Trustee appointed by the Company. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company 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 rights, powers, trusts, duties and obligations of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property and money held by such Trustee so ceasing to act hereunder subject nevertheless to its lien, if any, provided for in  Section 7.07. Upon request of the Company or the successor Trustee, such retiring Trustee shall at the expense of the Company and upon payment of
the charges of the Trustee then unpaid, 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. 

        If
a successor Trustee does not take office within thirty (30) days after the retiring Trustee resigns or is removed, the retiring Trustee, at the Company's expense, the Company
or the Holders of at least 10% in aggregate principal amount of the outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

        If
the Trustee fails to comply with Section 7.10, any Holder who satisfies the requirements of TIA Section 310(b) may
petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 

        The
Company shall give notice of any resignation and any removal of the Trustee and each appointment of a successor Trustee to all Holders in writing. Each notice shall include the name
of the successor Trustee and the address of its Corporate Trust Office. 

        Notwithstanding
any resignation or replacement of the Trustee pursuant to this Section 7.08, the Company's obligations under  Section 7.07 shall continue for the
benefit of the retiring Trustee. 

55

 

        Section 7.09    Successor Trustee by Merger, Etc.    

        If
the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business (including the administration of the trust created by
this Indenture) to, another Person, the resulting, surviving or transferee Person without any further act shall, if such resulting, surviving or transferee Person is otherwise eligible hereunder, be
the successor Trustee; provided, however, that such Person shall be otherwise qualified and eligible
under this Article Seven. 

        In
case any Notes 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 7.10    Eligibility; Disqualification.    

        (a)   This
Indenture shall always have a Trustee who satisfies the requirements of TIA Sections 310(a)(1), (2), (3) and (5). The Trustee (or, in the case of a
corporation included in a bank holding company system, the related bank holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published
annual report of condition. In addition, if the Trustee is a corporation included in a bank holding company system, the Trustee, independently of such bank holding company, shall meet the capital
requirements of TIA Section 310(a)(2). The Trustee shall comply with TIA Section 310(b); provided, however, that there shall be excluded
from the operation of TIA Section 310(b)(1) any indenture or indentures under which other securities, or certificates of interest or participation in other securities, of the Company are
outstanding if the requirements for such exclusion set forth in TIA Section 310(b)(1) are met. The provisions of TIA Section 310 shall apply to the Company, as obligor of the Notes. 

        (b)   If
the Trustee has or acquires a conflicting interest within the meaning of the TIA, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the TIA and this Indenture. 

        Section 7.11    Preferential Collection of Claims Against Company.    

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

        Section 7.12    Trustee as Paying Agent.    

        References
to the Trustee in Sections 7.01(f), 7.02,  7.03, 7.04, and
7.07 shall include the Trustee in its
role as Paying Agent. 

        Section 7.13    Co-Trustees and Separate Trustees.    

        (a)   At
any time or times, for the purpose of meeting the legal requirements of any jurisdiction in which the Company and the Trustee shall have the power to appoint, and,
upon the written request of the Trustee or of the Holders of at least 25% in principal amount of the Notes outstanding, the Company shall for such purpose, join with the Trustee in the execution,
delivery and performance of all instruments and agreements necessary or proper to appoint, one or more Persons approved by the Trustee either to act as co-trustee, jointly with the Trustee
or to act as separate trustees with such powers as may be provided in the instrument of appointment. 

        (b)   Every
co-trustee or separate trustee shall, to the extent permitted by law, but to such extent only, be appointed subject to the following terms, namely: 

	(ii)
	The
Notes shall be authenticated and delivered, and all rights, powers, duties and obligations hereunder in respect of the custody of securities, cash and other
personal property held by, or 

56

 

required
to be deposited or pledged with, the Trustee hereunder, shall be exercised solely, by the Trustee. 

	(iii)
	The
rights, powers, duties and obligations hereby conferred or imposed upon the Trustee shall be conferred or imposed upon and exercised or performed by the Trustee or
by the Trustee and such co-trustee or separate trustee, jointly as shall be provided in the instrument appointing such co-trustee or separate trustee, except to the extent that
under any law of any jurisdiction in which any particular act is to be performed, the Trustee shall be incompetent or unqualified to perform such act, in which event such rights, powers, duties and
obligations shall be exercised and performed by such co-trustee or separate trustee.

	(iv)
	The
Trustee at any time, by an instrument in writing executed by it, with the concurrence of the Company evidenced by a Board Resolution, may accept the resignation of
or remove any co-trustee or separate trustee appointed under this Section 7.13;  provided, that, in case an Event of Default has occurred and is
continuing, the Trustee shall have power to accept the resignation of, or remove, any
such co-trustee or separate trustee without the concurrence of the Company. Upon the written request of the Trustee, the Company shall join with the Trustee in the execution, delivery and
performance of all instruments and agreements necessary or proper to effectuate such resignation or removal. A successor to any co-trustee or separate trustee so resigned or removed may be
appointed in the manner provided in this Section 7.13.

	(v)
	No
co-trustee or separate trustee hereunder shall be personally liable by reason of any act or omission of any other such trustee hereunder.

	(vi)
	Any
act of Holders delivered to the Trustee shall be deemed to have been delivered to each such co-trustee or separate trustee. 

        Section 7.14    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 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 Company may be based, insofar as it relates to legal matters, upon a certificate or opinion, or representation by, counsel, unless such
Officer knows, or in
the exercise of reasonable care should know, that the 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 of counsel or representation by counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers
of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows that the certificate or opinion or representations with
respect to such matters are erroneous. 

        Where
any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they
may, but need not, be consolidated and form one instrument. 

57

 

ARTICLE EIGHT  

SATISFACTION AND DISCHARGE OF INDENTURE  

        Section 8.01 Legal Defeasance and Covenant Defeasance. 

        (a)   The
Company may, at its option and at any time, elect to have either paragraph (b) or  paragraph (c) below be applied to the outstanding Notes upon
compliance with the applicable conditions set forth in  paragraph (d). 

        (b)   Upon
the Company's exercise under paragraph (a) of the option applicable to this  paragraph (b), the Company and the Guarantors shall be deemed to have
been released and discharged from their obligations with respect to the
outstanding Notes and the Guarantees on the date the applicable conditions set forth below are satisfied (hereinafter, "Legal Defeasance"). For this
purpose, such Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes, which shall thereafter be deemed to be
"outstanding" only for the purposes of the Sections and matters under this Indenture referred to in clause (i) and  (ii) below, and the Company and the
Guarantors shall be deemed to have satisfied all their other obligations under such Notes and this Indenture and the
Guarantees, except for the following which shall survive until otherwise terminated or discharged hereunder: (i) the rights of Holders of outstanding Notes to receive solely from the trust fund
described in paragraph (d) below and as more fully set forth in such paragraph payments in respect of the principal of, and premium, if any,
interest and Additional Interest, if any, on such Notes when such payments are due, (ii) obligations listed in Section 8.03, subject to
compliance with this Section 8.01 and (iii) the rights, powers, trusts, duties and immunities of the Trustee and the Company's obligations
in connection therewith. The Company may exercise its option under this paragraph (b)notwithstanding the prior exercise of its option under  paragraph (c) below with respect to the Notes. 

        (c)   Upon
the Company's exercise under paragraph (a) of the option applicable to this  paragraph (c), the Company and its Restricted Subsidiaries shall be
released and discharged from their obligations under  Section 4.05, Sections 4.08 through 4.17, 
Sections 4.19 through 4.21 and Section 5.01(2),
with respect to the outstanding Notes on and after the date the conditions set forth below are satisfied (hereinafter, "Covenant Defeasance"), and the
Notes shall thereafter be deemed to be not "outstanding" for the purpose 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, such Covenant Defeasance means that, with respect to the outstanding Notes, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision
herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01, but, except
as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the Company's exercise under  paragraph (a) hereof of the option applicable to this
paragraph (c), subject to the
satisfaction of the conditions set forth in paragraph (d) below, Sections 6.01(3) through  6.01(8)
(provided, in the case of Section 6.01(6) and
6.01(7), with respect only to Significant Subsidiaries) shall not constitute Events of Default. 

        (d)   The
following shall be the conditions to application of either paragraph (b) or  paragraph (c) above to the outstanding Notes: 

        (2)   The
Company shall have irrevocably deposited in trust with the Trustee, pursuant to an irrevocable trust and security agreement in form and substance reasonably
satisfactory to the Trustee, 

58

 

U.K.
Legal Tender or non-callable Government Obligations or a combination thereof, in such amounts and at such times as are sufficient, in the opinion of a nationally-recognized firm of
independent public accountants, to pay the principal of, and premium, if any, interest and Additional Interest, if any, on the outstanding Notes on the stated dates for payment or redemption, as the
case may be; provided, however, that the Trustee (or other qualifying trustee) shall have received an irrevocable written order from the Company
instructing the Trustee (or other qualifying trustee) to apply such U.K. Legal Tender or the proceeds of such Government Obligations to said payments with respect to the Notes to maturity or
redemption; 

        (3)   No
Default or Event of Default shall have occurred and be continuing on the date of such deposit (other than a Default or Event of Default arising from the failure to
comply with Section 4.08 in connection with the substantially contemporaneous borrowing of funds to fund the deposit referenced in  clause (1)
above and/or the granting of any Lien securing such borrowing) or insofar as Defaults or Events of Default from bankruptcy or
insolvency events are concerned, at any time in the period ending on the 91st day after the date of such deposit; 

        (4)   Such
Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default hereunder (other than a Default or Event of Default
arising in connection with the substantially contemporaneous borrowing of funds to fund the deposit referenced in clause (1) above and the
granting of any Lien securing such borrowing) or any other material agreement or instrument to which the Company or any of it Subsidiaries is a party or by which the Company or any of its Subsidiaries
is bound; 

        (5)   (i) In
the event the Company elects paragraph (b) above, the Company shall deliver to the Trustee an
Opinion of Counsel in the United States of America, in form and substance reasonably acceptable to the Trustee, to the effect that (A) the Company has received from, or there has been published
by, the Internal Revenue Service of the United States a ruling or (B) since the Issue Date, 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 state that, Holders shall not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance contemplated hereby
and shall be subject to federal income tax in the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred or (ii) in the
event the Company elects paragraph (c) above, the Company shall deliver to the Trustee an Opinion of Counsel in the United States, in form and
substance reasonably satisfactory to the Trustee, to the effect that Holders shall not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance
contemplated hereby and shall be subject to federal income tax in the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

        (6)   The
Company shall have delivered to the Trustee an Officers' Certificate stating that the deposit under clause (1)
was not made by the Company with the intent of preferring the Holders over any other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of
the Company or others; 

        (7)   The
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent specified herein relating
to the defeasance contemplated by this Section 8.01 have been complied with; 

        (8)   The
Company shall have delivered to the Trustee an Opinion of Counsel (subject to customary qualifications and exclusions) to the effect that after the 91st day
following the date of deposit, the trust funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally; and 

59

 

        (9)   The
Company shall have delivered to the Trustee an Opinion of Counsel (subject to customary qualifications and exclusions) to the effect that the trust resulting from
the deposit under clause (1) does not constitute, or is qualified as, a regulated investment company under the United States Investment Company
Act of 1940, as amended. 

        Notwithstanding
the foregoing, the Opinion of Counsel required by Section 8.01(d)(4)(i) above with respect to a Legal Defeasance
need not be delivered if all Notes not theretofore delivered to the Trustee for cancellation (1) have become due and payable or (2) shall become due and payable on the maturity date
within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company. 

        In
the event all or any portion of the Notes are to be redeemed through such irrevocable trust, the Company must make arrangements reasonably satisfactory to the Trustee, at the time of
such deposit, for the giving of the notice of such redemption or redemptions by the Trustee in the name and at the expense of the Company. 

        Section 8.02    Satisfaction and Discharge.    

        In
addition to the Company's rights under Section 8.01, the Company may terminate all of its obligations under this Indenture
(subject to Section 8.03), and this Indenture, the Notes and the Guarantees, shall be discharged and shall cease to be in effect when: 

        (1)   either:

        (a)   all
the Notes theretofore authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or paid as provided in  Section 2.07 and Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust) have been delivered to the Trustee for cancellation; or 

        (b)   all
Notes not theretofore delivered to the Trustee for cancellation (i) have become due and payable, (ii) shall become due and payable at their stated
maturity within one year or (iii) are to be called for redemption within one year under arrangements reasonably satisfactory to the Trustee, and the Company has irrevocably deposited or caused
to be deposited with the Trustee funds in an amount sufficient to pay and discharge the entire Indebtedness on the Notes not theretofore delivered to the Trustee for cancellation, for principal of,
and premium, if any, interest and Additional Interest, if any, on the Notes to the date of deposit together with irrevocable instructions from the Company directing the Trustee to apply such funds to
the payment thereof at maturity or redemption, as the case may be; 

        (2)   all
other sums payable under this Indenture and the Notes by the Company have been paid; and 

        (3)   the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel stating that all conditions precedent under this Indenture relating to the
satisfaction and discharge of this Indenture have been complied with. 

        Section 8.03    Survival of Certain Obligations.    

        Notwithstanding
the satisfaction and discharge of this Indenture and of the Notes referred to in Section 8.01or  8.02, the respective obligations of the Company and
the Trustee under Sections 2.03,  2.04, 2.05, 2.06,
2.07,
2.08 and 2.10, Sections 7.07 and  7.08 and Sections
8.05, 8.06 and  8.07 shall survive until the Notes are no longer outstanding, and thereafter the obligations of the Company and the
Trustee under  Sections 7.07, 8.04, 8.05 and  8.06 and
8.07 shall survive. 

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        Section 8.04    Acknowledgment of Discharge by Trustee.    

        Subject
to Section 8.07, after (i) the conditions of Section 8.01 or  8.02 have been satisfied,
(ii) the Company has paid or caused to be paid all other sums payable hereunder by the Company and (iii) the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent referred to in  clause (i) above relating to the satisfaction and
discharge of this Indenture have been complied with, the Trustee, upon written request, shall
acknowledge in writing the discharge of the Company's obligations under this Indenture except for those surviving obligations specified in  Section 8.03. 

        Section 8.05    Application of Trust Moneys.    

        The
Trustee shall hold any U.K. Legal Tender or Government Obligations deposited with it in the irrevocable trust established pursuant to  Section 8.01. The Trustee shall apply the deposited U.K. Legal
Tender or the Government Obligations, together with earnings thereon, through the
Paying Agent, in accordance with this Indenture and the terms of the irrevocable trust agreement established pursuant to Section 8.01, to the
payment of principal of, premium, if any, and interest, and Additional Interest, if any, on the Notes. Anything in this Article Eight to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the Company's request any U.K. Legal Tender or Government Obligations held by it as provided in  Section 8.01(d) which, in the opinion of a nationally-recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 

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        Section 8.06    Repayment to the Company; Unclaimed Money.    

        Subject
to Sections 7.07, 8.01 and 8.02,
the Trustee and the Paying Agent shall promptly pay to the Company upon written request from the Company any excess U.K. Legal Tender or Government Obligations held by them at any time. The Trustee
and the Paying Agent shall pay to the Company, upon receipt by the Trustee or the Paying Agent, as the case may be, of a written request from the Company any money held by it for the payment of
principal, premium, if any, or interest and Additional Interest, if any, that remains unclaimed for two years after payment to the Holders is required, without interest thereon;  provided, however, that
the Trustee and the Paying Agent before being required to make any payment may, but need not, at the expense of the Company
cause to be published once in a newspaper of general circulation in the City of New York or mail to each Holder entitled to such money notice that such money remains unclaimed and that after a date
specified therein, which shall be at least thirty (30) days from the date of such publication or mailing, any unclaimed balance of such money then remaining shall be repaid to the Company,
without interest thereon. After payment to the Company, Holders entitled to money must look solely to the Company for payment as general creditors unless an applicable abandoned property law
designated another Person, and all liability of the Trustee or Paying Agent with respect to such money shall thereupon cease. 

        Section 8.07    Reinstatement.    

        If
the Trustee or Paying Agent is unable to apply any U.K. Legal Tender, Government Obligations or other funds in accordance with  Section 8.01 or 8.02 by
reason of any legal proceeding or by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company's and each Guarantors' obligations under this Indenture and each other Indenture
Document to which such person is a party shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 or  8.02 until such
time as the Trustee or Paying Agent is permitted to apply all such U.K. Legal Tender, Government Obligations or other funds in
accordance with Section 8.01 or 8.02; provided, however, that if the Company has made any payment
of premium, if any, or interest and Additional Interest, if any, on or principal of any Notes because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the
Holders of such Notes to receive such payment from the money, Government Obligations or other funds held by the Trustee or Paying Agent. 

ARTICLE NINE  

AMENDMENTS, SUPPLEMENTS AND WAIVERS  

        Section 9.01 Without Consent of Holders. 

        From
time to time, the Company, the Guarantors and the Trustee, without the consent of the Holders, may amend, modify, waive or supplement provisions of this Indenture, the Notes, the
Guarantees and the Registration Rights Agreement: 

        (1)   to
cure any ambiguity, defect or inconsistency contained therein; 

        (2)   to
provide for uncertificated Notes in addition to or in place of certificated Notes; 

        (3)   to
provide for the assumption of the Company's or a Guarantor's obligations to Holders in accordance with the  Section 5.01; 

        (4)   to
make any change that would provide any additional rights or benefits to the Holders or that does not adversely affect the legal rights of any such Holder under this
Indenture, the Notes or the Guarantees; 

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        (5)   to
comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; 

        (6)   to
allow any Subsidiary or any other Person to guarantee the Notes; 

        (7)   to
release a Guarantor as permitted by this Indenture and the relevant Guarantee; or 

        (8)   to
allow changes that would be necessary in order to effect listing on the Euro MTF Market of the Luxembourg Stock Exchange pursuant to  Section 4.22. 

        After
an amendment, modification, waiver or supplement under this Section 9.01 becomes effective, the Company shall mail to the
Holders affected thereby a notice briefly describing the amendment, modification, waiver or supplement. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amendment, modification, waiver or supplement. 

        Section 9.02    With Consent of Holders.    

        The
Company and the Guarantors, when authorized by a Board Resolution, and the Trustee, with the written consent of the Holder or Holders of at least a majority in aggregate principal
amount of the outstanding Notes, may amend or supplement this Indenture, the Notes, the Guarantees or the Registration Rights without notice to any other Holders. The Holder or Holders of a majority
in aggregate principal amount of the outstanding Notes may waive compliance by the Company with any provision of this Indenture or the Notes without notice to any other Holder. However, no amendment,
supplement or waiver, including a waiver pursuant to Section 6.04, shall without the consent of each Holder of each Note affected thereby: 

        (1)   reduce
the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver of any provision of this Indenture or the Notes; 

        (2)   reduce
the rate of or change or have the effect of changing the time for payment of interest, including default interest, or Additional Interest on any Notes; 

        (3)   reduce
the principal of or change or have the effect of changing the fixed maturity of any Notes, or change the date on which any Notes may be subject to redemption or
reduce the redemption price therefor; 

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

        (5)   make
any change in provisions of this Indenture protecting the right of each Holder to receive payment of principal of, premium, if any, interest and Additional
Interest, if any, on such Note on or after the due date thereof or to bring suit to enforce such payment, or permitting Holders of a majority in principal amount of Notes to waive Defaults or Events
of Default; 

        (6)   amend,
change or modify in any material respect the obligation of the Company to make and consummate a Change of Control Offer after the occurrence of a Change of
Control, or, modify any of the provisions or definitions with respect thereto; 

        (7)   subordinate
the Notes in right of payment to any other Indebtedness of the Company or any Guarantor; 

        (8)   release
any Guarantor from any of its obligations under its Guarantee or this Indenture otherwise than in accordance with the terms of this Indenture; or 

        (9)   make
any change to Section 9.01 or this Section 9.02. 

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

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        After
an amendment, supplement or waiver under this Section 9.02 becomes effective, the Company shall mail to the Holders affected
thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company 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. 

        Section 9.03    Compliance with TIA.    

        Every
amendment, waiver or supplement of this Indenture, the Notes or the Guarantees shall comply with the TIA as then in effect. 

        Section 9.04    Revocation and Effect of Consents.    

        Until
an amendment, waiver or supplement becomes effective, a consent to it by a Holder is a continuing consent by the Holder 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. Subject to the following paragraph, any such Holder or subsequent Holder may
revoke the consent as to such Holder's Note or portion of such Note by written notice to the Trustee and the Company received before the date on which the Trustee receives an Officers' Certificate
certifying that the Holders of the requisite principal amount of Notes have consented (and not theretofore revoked such consent) to the amendment, supplement or waiver. An amendment, waiver or
supplement shall become effective upon receipt by the Trustee of written consents from the Holders of the requisite percentage in principal amount of the outstanding Notes or such Officers'
Certificate, whichever first occurs, and the execution thereof by the Trustee. 

        The
Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment, supplement or waiver, which record date
shall be either (i) at least thirty (30) days prior to the first solicitation of such consent or (ii) the date of the most recent list furnished to the Trustee under  Section 2.05. If
a record date is fixed, then notwithstanding the last sentence of the immediately preceding paragraph, those Persons who were
Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to revoke any consent previously given, whether or not such Persons continue to be Holders
after such record date. No such consent shall be valid or effective for more than ninety (90) days after such record date. 

        After
an amendment, supplement or waiver becomes effective, it shall bind every Holder unless it makes a change described in any of clauses
(1) through (9) of Section 9.02, in which case, the amendment, supplement
or waiver shall bind only each Holder of a Note who has consented to it and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder's Note;
provided that any such waiver shall not impair or affect the right of any Holder to receive payment of principal of, premium, if any, and interest and Additional Interest, if any, on a Note, on or
after the respective due dates expressed in such Note, or to bring suit for the enforcement of any such payment on or after such respective dates without the consent of such Holder. 

        Section 9.05    Notation on or Exchange of Notes.    

        If
an amendment, supplement or waiver changes the terms of a Note, the Trustee may require the Holder of the Note to deliver the Note to the Trustee. The Trustee at the written direction
of the Company may place an appropriate notation on the Note about the changed terms and return it to the Holder and the Trustee may place an appropriate notation on any Note thereafter authenticated.
Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. Failure to
make an appropriate notation, or issue a new Note, shall not affect the validity and effect of such amendment, supplement or waiver. Any such notation or exchange shall be made at the sole cost and
expense of the Company. 

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        Section 9.06    Trustee to Sign Amendments, Etc.    

        The
Trustee shall execute any amendment, supplement or waiver authorized pursuant to this Article Nine; provided that the Trustee may, but
shall not be obligated to, execute any such amendment, supplement or waiver that affects the rights, duties or immunities of the Trustee under this Indenture. The Trustee shall be entitled to receive,
and shall be fully protected in relying upon, an Opinion of Counsel and an Officers' Certificate each stating that the execution of any amendment, supplement or waiver authorized pursuant to this  Article Nine is authorized or permitted by this Indenture. Such Opinion of Counsel shall not be an expense of the Trustee and shall be paid for by the
Company. 

ARTICLE TEN  

GUARANTEE  

        Section 10.01 Guarantee. 

        Each
Guarantor hereby fully, irrevocably and unconditionally, jointly and severally, unconditionally and irrevocably guarantees (such guarantee to be referred to herein as the
"Guarantee"), to each of the Holders and the Trustee and their respective successors and assigns that (i) the principal of, premium, if any and
interest, and Additional Interest, if any, on the Notes shall be promptly paid in full when due, subject to any applicable grace period, whether upon redemption pursuant to the terms of the Notes, by
acceleration or otherwise, and interest on the overdue principal, if any, and interest on any interest, if any, to the extent lawful, of the Notes and all other Obligations of the Company to the
Holders and the Trustee hereunder or thereunder shall be promptly paid in full or performed, all in accordance with the terms hereof or thereof; and (ii) in case of any extension of time of
payment or renewal of any of the Notes or of any such other obligations, the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, subject
to any applicable grace period, whether at stated maturity, by acceleration or otherwise, subject, however, in the case of clauses (i) and  (ii) above, to
the limitations set forth in Section 10.03. The Guarantee of each Guarantor shall
rank senior in right of payment to all subordinated Indebtedness of such Guarantor and equal in right of payment with all other senior obligations of such Guarantor. Each Guarantor hereby agrees that
its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver
or consent by any of the Holders with respect to any provisions hereof or thereof, any release of any other Guarantor, the recovery of any judgment against the Company, any action to enforce the same
or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor. Each Guarantor hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever, in each case,
other than the defense that the principal of, premium, if any and interest, and Additional Interest, if any, on the Notes shall have been paid in cash, to the extent of any such payments and covenants
that this Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, this Indenture and in this Guarantee. Each Guarantor may consolidate with or merge
into or sell its assets to the Company or another Guarantor without limitation in accordance with Sections 5.01,  4.10 and 10.04. If any Holder or the Trustee is required by any court or otherwise to return to the
Company, any Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to the Company or any Guarantor, any amount paid by the Company or any Guarantor to the
Trustee or such Holder, this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. Each Guarantor further agrees that, as between each Guarantor, on the one
hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article
Six for the purposes of this Guarantee notwithstanding any stay, injunction or other prohibition preventing such acceleration in 

65

 

respect
of the obligations guaranteed hereby, and (y) in the event of any acceleration of such obligations as provided in Article Six, such
obligations (whether or not due and payable) shall forthwith become due and payable by each Guarantor for the purpose of this Guarantee. 

        Section 10.02    Release of a Guarantor.    

        A
Guarantor will be automatically and unconditionally released from its Guarantee (and may subsequently dissolve) without any action required on the part of the Trustee or any Holder: 

        (1)   if
(a) all of the Capital Stock issued by such Guarantor or all or substantially all of the assets of such Guarantor are sold or otherwise disposed of (including
by way of merger or consolidation) to a Person other than the Company or any of its Domestic Restricted Subsidiaries or (b) such Guarantor ceases to be a Restricted Subsidiary, and the Company
otherwise complies, to the extent applicable, with Section 4.10, or 

        (2)   if
the Company designates such Guarantor as an Unrestricted Subsidiary in accordance with Section 4.09, or 

        (3)   if
the Company exercises its legal defeasance option or its covenant defeasance option as described in  Section 8.01, or 

        (4)   upon
satisfaction and discharge of this Indenture or payment in full of the principal of, premium, if any, accrued and unpaid interest and Additional Interest, if any,
on the Notes and all other Obligations that are then due and payable. 

        The
Trustee shall promptly deliver an appropriate instrument evidencing such release upon receipt of a request by the Company accompanied by an Officers' Certificate certifying as to the
compliance with this Section 10.02. Any Guarantor not so released remains liable for the full amount of its Guarantee as provided in this  Article Ten.

        Section 10.03    Limitation of Guarantor's Liability.    

        Each
Guarantor and, by its acceptance hereof, each of the Holders hereby confirms that it is the intention of all such parties that the guarantee by such Guarantor pursuant to its
Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Bankruptcy Code, the United States Uniform Fraudulent Conveyance Act, the United States Uniform Fraudulent Transfer Act
or any similar Federal or state law. To effectuate the foregoing intention, the Holders and such Guarantor hereby irrevocably agree that the obligations of such Guarantor under the Guarantee shall be
limited to the maximum amount as shall, after giving effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to any collections from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other Guarantor under its Guarantee or pursuant to Section 10.05, result in
the obligations of such Guarantor under the Guarantee not constituting such fraudulent transfer or conveyance. 

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

        Each
Guarantor (other than any Guarantor whose Guarantee is to be released in accordance with the terms of the Guarantee and this Indenture in connection with any transaction complying
with Section 4.10) will not, and the Company will not cause or permit any Guarantor to, consolidate with or merge with or into any Person other
than the Company or any other Guarantor unless: 

        (1)   the
entity formed by or surviving any such consolidation or merger (if other than the Guarantor) or to which such sale, lease, conveyance or other disposition shall have
been made is a corporation organized and existing under the laws of the United States or any State thereof or the District of Columbia; 

66

 

        (2)   such
entity assumes by supplemental indenture (in form and substance reasonably satisfactory to the Trustee), executed and delivered to the Trustee, all of the
obligations of the Guarantor under the Guarantee and the performance of every covenant of the Guarantee, this Indenture and the Registration Rights Agreement; and 

        (3)   immediately
after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing. 

        Any
merger or consolidation of (i) a Guarantor with and into the Company (with the Company being the surviving entity) or another Guarantor or (ii) a Guarantor or the
Company with an Affiliate organized solely for the purpose of reincorporating such Guarantor or the Company in another jurisdiction in the United States or any state thereof or the District of
Columbia need only comply with (A) clause (3) of Section 5.01; and (B) in
the case of clause (ii) above, (x) clause (1)(b)(y) of  Section 5.01 and (y)
 clause (2) of the immediately preceding paragraph. 

        Section 10.05    Contribution.    

        In
order to provide for just and equitable contribution among the Guarantors, the Guarantors agree, inter se, that each Guarantor that makes a payment or distribution under a Guarantee
shall be entitled to a pro rata contribution from each other Guarantor hereunder based on the net assets of each other Guarantor. The preceding sentence
shall in no way affect the rights of the Holders of Notes to the benefits of this Indenture, the Notes or the Guarantees. 

        Section 10.06    Waiver of Subrogation.    

        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. 

        Section 10.07    Waiver of Stay, Extension or Usury Laws.    

        Each
Guarantor covenants to the extent permitted by law that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay
or extension law or any usury law or other law that would prohibit or forgive such Guarantor from performing its Guarantee as contemplated herein, wherever enacted, now or at any time hereafter in
force, or which may affect the covenants or the performance of this Guarantee; and each Guarantor hereby expressly waives to the extent permitted by law all benefit or advantage of any such law, and
covenants that it shall not 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 had
been enacted. 

        Section 10.08    Evidence of Guarantee.    

        To
evidence their guarantees to the Holders set forth in this Article Ten, each of the Guarantors hereby agrees to execute the notation of
Guarantee in substantially the applicable forms included in the Notes attached as Exhibit A and  Exhibit B. Each such notation of Guarantee shall
be signed on behalf of each Guarantor by an Officer, Secretary or an assistant Secretary by
manual or facsimile signature. 

        If
an Officer whose signature is on a notation of the Guarantee was an Officer at the time of such execution but no longer holds that office or position at the time the Trustee
authenticates a Note on which such notation of Guarantee appears, such notation of Guarantee shall nevertheless be valid. 

        Each
Guarantor hereby agrees that its 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 Guarantee. 

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

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ARTICLE ELEVEN  

MISCELLANEOUS  

        Section 11.01 TIA Controls. 

        If
any provision of this Indenture limits, qualifies, or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall
control. Any provision of the TIA which is required to be included in a qualified Indenture, but not expressly included herein, shall be deemed to be included by this reference. 

        Section 11.02    Notices.    

        Any
notices or other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if made by hand delivery, by telecopier, regular mail, or
registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 

if
to the Company: 

Altra
Industrial Motion, Inc.

14 Hayward Street

Quincy, Massachusetts 02171

Facsimile No. (617) 689-6202

Attention: Michael L. Hurt 

with
a copy to: 

Weil
Gotshal & Manges, LLP

767 Fifth Avenue

New York, NY 10153

Facsimile No. (212) 310-8007

Attention: Todd R.Chandler, Esq. 

if
to the Trustee or Principal Paying Agent: 

The
Bank of New York

101 Barclay Street, 21W

New York, NY 10286

Facsimile No.: (212) 815-5802

Attention: Global Finance Unit 

with
a copy to: 

Emmet,
Marvin & Martin, LLP

120 Broadway

New York, NY 10271

Facsimile No. (212) 238-3100

Attention: Anthony Harvin, Esq. 

if
to the Luxembourg Paying Agent: 

The
Bank of New York (Luxembourg) S.A.

Aerogolf Centre

1A Hochenhof

L-1736 Senningerberg

Grand-Duchyof Luxembourg

Facsimile No.: 44-20-7-964-6399 

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with
a copy to: 

Emmet,
Marvin & Martin, LLP

120 Broadway New York, NY 10271

Facsimile No. (212) 238-3100

Attention: Anthony Harvin, Esq. 

        Each
of the Company and the Trustee by written notice to each other may designate additional or different addresses for notices to such Person. Any notice or communication to the Company
shall be deemed to have been given or made as of the date so delivered if personally delivered; when receipt is acknowledged, if faxed; and five (5) calendar days after mailing if sent by
registered or certified mail, postage prepaid. Notwithstanding anything to the contrary contained herein, notices to the Trustee shall be effective only upon actual receipt by the Trustee. 

        Any
notice or communication mailed to a Holder shall be mailed to such Holder by first class mail or other equivalent means at such Holder's address as it appears on the registration
books of the Registrar and shall be sufficiently given to such Holder if so mailed within the time prescribed. 

        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. If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives it, except that notices to the Trustee shall be deemed duly given only upon receipt. 

        Section 11.03    Communications by Holders with Other Holders.    

        Holders
may communicate pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture, any Guarantee or the Notes. The Company, the Trustee,
the Registrar and any other Person shall have the protection of TIA Section 312(c). 

        Section 11.04    Certificate and Opinion as to Conditions Precedent.    

        Upon
any request or application by the Company or any Guarantor to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee upon request: 

        (1)   an
Officers' Certificate, in form and substance reasonably satisfactory to the Trustee stating that, in the opinion of the signers, all conditions precedent to be
performed by the Company or the applicable Guarantor (as the case may be), if any, provided for in this Indenture relating to the proposed action have been complied with; and 

        (2)   an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent to be performed by the Company or the applicable Guarantor (as the case
may be), if any, provided for in this Indenture relating to the proposed action have been complied with. 

        Section 11.05    Statements Required in Certificate or Opinion.    

        Each
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture, other than the Officers' Certificate required by  Section 4.06, shall include:

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

        (2)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are
based; 

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

69

 

        (4)   a
statement as to whether or not, in the opinion of each such Person, such condition or covenant has been complied with. 

        Section 11.06    Rules by Trustee, Paying Agent, Registrar.    

        The
Trustee may make reasonable rules in accordance with the Trustee's customary practices for action by or at a meeting of Holders. The Paying Agent or Registrar may make reasonable
rules for its functions. 

        Section 11.07    Legal Holidays.    

        A
"Legal Holiday" used with respect to a particular place of payment is a Saturday, a Sunday or a day on which banking institutions in
London, England or New York, New York, in the city in which the Corporate Trust Office of the Trustee is located or at such place of payment are not required to be open. If a payment date is a Legal
Holiday at such place, payment may be made at such place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. 

        Section 11.08    Governing Law.    

        THIS
INDENTURE, THE NOTES AND THE GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN
THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE. 

        Section 11.09    No Adverse Interpretation of Other Agreements.    

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

        Section 11.10    No Recourse Against Others.    

        A
past, present or future director, officer, employee, stockholder or incorporator, as such, of the Company or a Guarantor shall not have any liability for any obligations of the Company
or the Guarantors under the Notes, the Guarantees, or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder, by accepting a Note,
waives and releases all such liability. Such waiver and release are part of the consideration for the issuance of the Notes. 

        Section 11.11    Successors.    

        All
agreements of the Company and the Guarantors in this Indenture, the Notes, and the Guarantees shall bind their successors. All agreements of the Trustee in this Indenture shall bind
its successors. 

        Section 11.12    Duplicate Originals.    

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

        Section 11.13    Severability.    

        In
case any one or more of the provisions in this Indenture, the Notes or in the Guarantees shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in 

70

 

any
way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law. 

        Section 11.14    Waiver of Jury Trial.    

        THE
COMPANY AND EACH GUARANTOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR IN CONNECTION
WITH THIS INDENTURE, THE NOTES, THE GUARANTEES OR THE TRANSACTIONS CONTEMPLATED BY THIS INDENTURE. 

71

SIGNATURES  

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

	 	 	ALTRA INDUSTRIAL MOTION, INC.
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	

 	
 	

THE BANK OF NEW YORK, as Trustee and Principal Paying Agent
	

 	
 	

By:	

/s/  LUIS PEREZ      
 Name: Luis Perez

Title: Assistant Vice President
	

 	
 	

THE BANK OF NEW YORK (LUXEMBOURG) S.A., as Luxembourg Paying Agent
	

 	
 	

By:	

/s/  LUIS PEREZ      
 Name: Luis Perez

Title: Assistant Vice President
	

 	
 	

AMERICAN ENTERPRISE MPT CORP., as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	

 	
 	

AMERICAN ENTERPRISES MPT HOLDINGS, L.P., as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	

 	
 	

AMERIDRIVES INTERNATIONAL, L.P., as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	 	 	 	 

	

 	
 	

BOSTON GEAR LLC, as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	

 	
 	

FORMSPRAG LLC, as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	

 	
 	

THE KILIAN COMPANY, as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L.

Hurt Title: Chief Executive Officer
	

 	
 	

KILIAN MANUFACTURING CORPORATION, as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	

 	
 	

NUTTALL GEAR LLC, as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	

 	
 	

WARNER ELECTRIC INTERNATIONAL HOLDING, INC., as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	

 	
 	

WARNER ELECTRIC LLC, as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer
	 	 	 	 

	

 	
 	

WARNER ELECTRIC TECHNOLOGY LLC, as a Subsidiary Guarantor
	

 	
 	

By:	

/s/  MICHAEL L. HURT      
 Name: Michael L. Hurt

Title: Chief Executive Officer

   EXHIBIT A  

FORM OF 111/4% SENIOR NOTE  

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. 

THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT),
(B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S UNDER THE U.S. SECURITIES ACT, OR (C) IT IS AN
INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE U.S. SECURITIES ACT AND (2) 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 COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF
THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
THE U.S. SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE
144A UNDER THE U.S. SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE U.S. SECURITIES ACT, (E) TO AN
INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE U.S. SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
U.S. SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S, OR TRANSFER
AGENT'S, AS APPLICABLE, RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E), OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE OR TRANSFER AGENT. 

A-1

 

ALTRA INDUSTRIAL MOTION, INC.  

 111/4% SENIOR NOTES DUE 2013  

	ISIN No. Common Code	 	U.K.£33,000,000	 	Initial Aggregate Principal Balance
	Certificate No.	 	U.K.£	 	Initial Principal Balance of this Certificate

Altra
Industrial Motion, Inc., a Delaware corporation (the "Company," which term includes any successor entity), for value received promises to
pay to THE BANK OF NEW YORK DEPOSITORY (NOMINEES LIMITED) or registered assigns the principal sum of up to THIRTY-THREE MILLION AND 00/100 Pounds Sterling (U.K.£33,000,000), initial
issuance of                        Pounds Sterling
(U.K.£            ) (or such principal amount at maturity as may be set forth in the records of the Trustee hereinafter referred to in
accordance with the Indenture) on February 15, 2013 and to pay interest thereon as hereinafter set forth. 

        Interest
Rate: 111/4% 

        Interest
Payment Dates: February 15 and August 15, commencing August 15, 2006. 

        Record
Dates: February 1 and August 1 

        Reference
is made to the further provisions of this Note contained on the reverse side of this Note, which will for all purposes have the same effect as if set forth at this place. 

[Signature page follows] 

A-2

 

IN
WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by its duly authorized officer. 

	 	 	ALTRA INDUSTRIAL MOTION, INC.
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

Dated: February            , 2006	
 	

 	

 

A-3

 
TRUSTEE CERTIFICATE OF AUTHENTICATION  

        This is one of the 111/4% Senior Notes due 2013 referred to in the within-mentioned Indenture. 

	 	 	THE BANK OF NEW YORK, as Trustee
	

Dated: February            , 2006	
 	

By:	

 
	 	 	 	
 Name:

Authorized Signatory

A-4

   (REVERSE OF SECURITY)  

 111/4% SENIOR NOTES DUE 2013  

        1.    Interest.    

        Altra
Industrial Motion, Inc., a Delaware corporation (the "Issuer"), promises to pay interest on the principal amount of this Note
at the rate per annum shown above. Interest on the Notes will accrue from the most recent date on which interest has been paid or, if no interest has been paid, from and including the date of
issuance. The Issuer will pay interest semi-annually in arrears on each Interest Payment Date, commencing August 15, 2006. Interest will be computed on the basis of a
360-day year comprised of twelve 30-day months. 

        2.    Method of Payment.    

        The
Issuer shall pay interest on the Notes to the Persons who are the registered Holders at the close of business on the Record Date immediately preceding the Interest Payment Date even
if the Notes are cancelled on registration of transfer or registration of exchange after such Record Date, and on or before such Interest Payment Date. Holders must surrender Notes to a Paying Agent
to collect principal payments. The Issuer shall pay principal and interest in money of the United Kingdom that at the time of payment is legal tender for payment of public and private debts
("U.K. Legal Tender"). However, the Issuer may pay principal and interest by check payable in such U.K. Legal Tender. The Issuer may deliver any such
interest payment to the Paying Agent or to a Holder at the Holder's registered address. 

        3.    Paying Agent and Registrar.    

        Initially,
The Bank of New York (the "Trustee") will act as Registrar and as paying agent in the City of New York (the
"Principal Paying Agent") and The Bank of New York (Luxembourg) S.A. will act as
paying agent in Luxembourg (the "Luxembourg Paying Agent" and, together with the Principal Paying Agent, the "Paying
Agent"). The Issuer may change any Paying Agent, Registrar or co-Registrar without notice to the Holders. 

        4.    Indenture.    

        The
Notes and the Guarantees were issued under an Indenture, dated as of February 8, 2006, by and among the Issuer, the Guarantors named therein, the Trustee and Principal Paying
Agent and the Luxembourg Paying Agent (the "Indenture"). The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the U.S. Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the "U.S. TIA"), as
in effect on the date of the Indenture until such time as the Indenture is qualified under the U.S. TIA, and thereafter as in effect on the date on which the Indenture is qualified under the U.S. TIA.
Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and Holders of Notes are referred to in the Indenture and the U.S. TIA for a statement of such terms. The
Notes are senior unsecured obligations of the Issuer. Each Holder, by accepting a Note, agrees to be bound by all of the terms and provisions of the Indenture, as the same may be amended from time to
time. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. 

        5.    Redemption on or After February 15, 2010.    

        (a)   Optional Redemption.    Except as described below, the Notes are not redeemable before February 15,
2010. On or after February 15, 2010, the Company may redeem the Notes, at its option, in whole or in part, upon not less than 30 nor more than 60 days' notice, at the following
redemption 

A-5

 

prices
(expressed as percentages of the principal amount thereof) if redeemed during the twelve-month period commencing on February 15 of the year set forth below: 

	Year
 
	 	Percentage
	 
	2010	 	105.625	%
	2011	 	102.813	%
	2012 and thereafter	 	100.000	%

        In
addition, the Company must pay accrued and unpaid interest and Additional Interest, if any, on the Notes redeemed to the date of redemption (subject to the right of the Holders of the
relevant record date to receive interest due on the relevant interest payment date). 

        (b)   Optional Redemption upon Equity Offerings.    In addition, at any time, or from time to time, until
February 15, 2009, the Company may, at its option, use an amount not to exceed the net cash proceeds of one or more Equity Offerings to redeem up to 35% of the aggregate principal amount of the
Notes (which includes Additional Notes, if any) originally issued under the Indenture at a redemption price of 111.25% of the aggregate principal amount thereof, plus accrued and unpaid interest and
Additional Interest thereon, if any, to the date of redemption; provided that: 

        (1)   at
least 65% of the original principal amount of Notes (which includes Additional Notes, if any) issued under the Indenture remains outstanding immediately after any
such redemption; and 

        (2)   the
Company makes such redemption not more than 120 days after the consummation of any such Equity Offering. 

        (c)   Notice of Redemption.    Notice of redemption will be mailed by first-class mail at least 30 days but
not more than 60 days before the redemption date to each Holder of Notes to be redeemed at such Holder's registered address. If fewer than all of the Notes are to be redeemed, at any time,
selection of Notes for redemption will be made by the Trustee in compliance with the requirements of the principal U.S. or foreign securities exchange, if any, on which the Notes are listed, or, if
the Notes are not so listed, on a pro rata basis, by lot or by such method as the Trustee reasonably determines to be fair and appropriate;  provided that
no partial redemption will reduce the principal amount of a Note not redeemed to a denomination of less than £50,000; and
provided, further, that any such partial redemption made with the proceeds of an Equity Offering will be
made only on a pro rata basis or on as nearly a pro rata basis as practicable (subject to the procedures
of Euroclear or Clearstream or any other depository) unless such method is otherwise prohibited. Notes in denominations of £50,000 or more may be redeemed in part. 

        Except
as set forth in the Indenture, if monies for the redemption of the Notes called for redemption shall have been deposited with the Paying Agent for redemption on such redemption
date sufficient to pay such redemption price plus accrued and unpaid interest and Additional Interest, if any, the Notes called for redemption will cease to bear interest from and after such
redemption date, and the only remaining right of the Holders of such Notes will be to receive payment of the redemption price plus accrued and unpaid interest and Additional Interest, if any, as of
the redemption date upon surrender to the Paying Agent of the Notes redeemed. 

        6.    Offers to Purchase.    

        Sections
4.10 and 4.19 of the Indenture provide that after certain Asset Sales and upon the occurrence of a Change of Control and subject to further limitations contained therein, the
Issuer will make an offer to purchase the Notes in accordance with the procedures set forth in the Indenture. 

A-6

 

        7.    Registration Rights.    

        Pursuant
to the Registration Rights Agreement among the Issuer, the Guarantors and the Initial Purchasers, the Issuer will be obligated to consummate an exchange offer. Upon such
exchange offering, the Holders of the Initial Notes shall have the right, subject to compliance with U.S. securities laws, to exchange such Initial Notes for Notes, which have been registered under
the U.S. Securities Act, in like principal amount and having terms identical in all material respects to the Initial Notes. The Holders of the Initial Notes shall be entitled to receive certain
Additional Interest payments in the event such exchange offer is not consummated and upon certain other conditions, all pursuant to and in accordance with the terms of the Registration Rights
Agreement. 

        8.    Denominations; Transfer; Exchange.    

        The
Notes are in registered form, without coupons, in denominations of £50,000 and integral multiples of £1,000 in excess thereof. A Holder shall register the
transfer of or exchange of Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any
taxes, fees or similar governmental charges payable in connection therewith as permitted by the Indenture. The Registrar need not register the transfer of or exchange of any Notes or portions thereof
selected for redemption. 

        9.    Persons Deemed Owners.    

        The
registered Holder of a Note shall be treated as the owner of such Note for all purposes. 

        10.    Unclaimed Money.    

        If
money for the payment of principal or interest remains unclaimed for two years, the Trustee and the Paying Agent may pay the money without interest thereon back to the Issuer. After
that, all liability of the Trustee and such Paying Agent with respect to such money shall cease. 

        11.    Discharge Prior to Redemption or Maturity.    

        If
the Issuer at any time deposits with the Trustee U.K. Legal Tender or Government Obligations sufficient to pay the principal of and interest on the Notes to redemption or Maturity and
complies with the other provisions of the Indenture relating thereto, the Issuer shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes, except for
the rights of Holders to receive payments in respect of the principal of, and premium, if any, interest and Additional Interest, if any, on the Notes when such payments are due from the deposits
referred to above. 

        12.    Amendment; Supplement; Waiver.    

        Subject
to certain exceptions, the Indenture, the Notes or the Guarantees may be amended or supplemented with the written consent of the Holders of at least a majority in aggregate
principal amount of the Notes then outstanding, and any existing Default or Event of Default or noncompliance with any provision may be waived with the written consent of the Holders of a majority in
aggregate
principal amount of the Notes then outstanding. Without consent of any Holder, the parties thereto may amend or supplement the Indenture, the Notes or the Guarantees to, among other things, cure any
ambiguity, defect or inconsistency, provide for uncertificated Notes or Guarantees in addition to or in place of certificated Notes or Guarantees, comply with the U.S. TIA, or comply with Article Five
of the Indenture or make any other change that does not adversely affect in any material respect the rights of any Holder of a Note. 

        13.    Restrictive Covenants.    

        The
Indenture imposes certain limitations on the ability of the Issuer and the Restricted Subsidiaries to, among other things, incur additional Indebtedness or Liens, make payments in
respect of their Capital Stock or certain Indebtedness, enter into transactions with Affiliates, create dividend or 

A-7

 

other
payment restrictions affecting Subsidiaries, merge or consolidate with any other Person, sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its assets.
Such limitations are subject to a number of important qualifications and exceptions. The Issuer must annually report to the Trustee on compliance with such limitations. 

        14.    Successors.    

        When
a successor assumes, in accordance with the Indenture, all the obligations of its predecessor under the Indenture, the Notes and the Guarantees, the predecessor will be released
from those obligations. 

        15.    Defaults and Remedies.    

        If
an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding may declare all the Notes to be
due and payable in the manner, at the time and with the effect provided in the Indenture. Holders of Notes may not enforce the Indenture except as provided in the Indenture. The Trustee is not
obligated to enforce the Indenture or the Notes unless it has received indemnity satisfactory to it. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in
aggregate principal amount of the Notes then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Notes notice of any continuing Default or
Event of Default (except a Default in payment of principal or interest) if it determines that withholding notice is in their interest. 

        16.    Trustee Dealings with Issuer.    

        Subject
to the terms of the U.S. TIA and the Indenture, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of the Notes and may
otherwise deal with the Issuer, the Subsidiaries or their respective Affiliates as if it were not the Trustee. 

        17.    No Recourse Against Others.    

        No
past, present or future stockholder, director, officer, employee or incorporator, as such, of the Issuer or the Guarantors shall have any liability for any obligation of the Issuer
under the Notes, the Guarantees or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder of a Note by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 

        18.    Guarantees.    

        Payment
of principal, premium, if any, and interest and Additional Interest, if any, is unconditionally guaranteed, jointly and severally, by each of the Guarantors. 

        19.    Authentication.    

        This
Note shall not be valid until the Trustee or Authenticating Agent manually signs the certificate of authentication on this Note. 

        20.    Governing Law.    

        THE
LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS NOTE, THE GUARANTEES AND THE INDENTURE, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. 

        21.    Waiver of Jury Trial.    

        Each
of the parties hereto and the holders (by their acceptance of the Note) hereby irrevocably waives, to the fullest extent permitted by law, any and all right to trial by jury in any
action or 

A-8

 

proceeding
arising out of or in connection with the Indenture, this Note, the Guarantees or the transactions contemplated by the Indenture. 

        22.    Abbreviations and Defined Terms.    

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

        The
Issuer will furnish to any Holder of a Note upon written request and without charge a copy of the Indenture. Requests may be made to: Altra Industrial Motion, Inc., 14 Hayward
Street, Quincy, Massachusetts 02171. 

A-9

   FORM OF GUARANTEE  

        Each of the undersigned and their respective successors under the Indenture (collectively, the "Guarantors") has
jointly and severally with each of the other Guarantors, irrevocably and unconditionally guaranteed, on a senior unsecured basis to the extent set forth in the Indenture, dated as of
February 8, 2006, by and among the Issuer, the Guarantors, The Bank of New York, as Trustee and Principal Paying Agent, and The Bank of New York (Luxembourg) S.A., as Luxembourg Paying Agent
(the "Indenture"), (i) the due and punctual payment of the principal of, premium, if any, and interest and Additional Interest, if any, on the
Notes, whether at maturity, by acceleration or otherwise, and the due and punctual performance of all other obligations of the Issuer to the Holders or the Trustee all in accordance with the terms set
forth in Article Ten of the Indenture and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. Capitalized terms used herein have the meanings assigned to
them in the Indenture unless otherwise indicated. 

        THE
OBLIGATIONS OF THE UNDERSIGNED TO HOLDERS OF THE NOTES AND TO THE TRUSTEE PURSUANT TO THIS NOTATION OF GUARANTEE (THE "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 GUARANTEE AND ALL OTHER PROVISIONS OF THE INDENTURE TO WHICH THE GUARANTEE RELATES. 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 FOR SUCH HOLDER FOR SUCH
PURPOSES. 

        THIS
GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

A-10

 

        IN
WITNESS WHEREOF, each Guarantor has caused its Guarantee to be duly executed. 

	 	 	AMERICAN ENTERPRISES MPT CORP.
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

AMERICAN ENTERPRISES MPT HOLDINGS, LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

AMERIDRIVES INTERNATIONAL, LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

BOSTON GEAR LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

FORMSPRAG LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

A-11

 

	 	 	KILIAN MANUFACTURING CORPORATION
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

NUTTALL GEAR LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

THE KILIAN COMPANY
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

WARNER ELECTRIC INTERNATIONAL HOLDING, INC.
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

WARNER ELECTRIC LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

WARNER ELECTRIC TECHNOLOGY LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

A-12

   ASSIGNMENT FORM  

        If you the Holder want to assign this Note, fill in the form below and have your signature guaranteed: 

        I
or we assign and transfer this Note to: 

	

	 
	

 (Print or type name, address and zip code and

social security or tax ID number of assignee)

and
irrevocably appoint
                                         
        agent to transfer this Note on the books of the Issuer. The agent may substitute another to act for him. 

	Dated:	 	 	 	Signed:	 	 
	 	 	
	 	 	 	
 (Sign exactly as your name appears on the other side of this Note)

	

Signature Guarantee:	
 	

 
	 	 	

        In
connection with any transfer of this Note occurring prior to the date which is the earlier of (i) the date of the declaration by the SEC of the effectiveness of a registration
statement under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), covering resales of this Note (which effectiveness shall not
have been suspended or terminated at the date of the transfer) and (ii) February 8, 2008, the undersigned confirms that it has not utilized any general solicitation or general
advertising in connection with the transfer and that this Note is being transferred: 

[Check One]

	(1)	 	o	 	to the Issuer or a subsidiary thereof; or
	

(2)	
 	

o	
 	

pursuant to and in compliance with Rule 144A under the U.S. Securities Act; or
	

(3)	
 	

o	
 	

to an institutional "accredited investor" (as defined in Rule 501(a)(1), (2), (3) or (7) under the U.S. Securities Act) that has furnished to the Trustee a signed letter containing certain representations and agreements (the form of
which letter can be obtained from the Trustee); or
	

(4)	
 	

o	
 	

outside the United States to a person other than a "U.S. person" in compliance with Rule 904 of Regulation S under the U.S. Securities Act; or
	

(5)	
 	

o	
 	

pursuant to the exemption from registration provided by Rule 144 under the U.S. Securities Act; or
	

(6)	
 	

o	
 	

pursuant to an effective registration statement under the U.S. Securities Act.

        Unless
one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the registered Holder thereof;  provided that if box
(3), (4) or (5) is checked, the Issuer or the Trustee may require, prior to registering any such transfer of the
Notes, in its sole discretion, such legal opinions, certifications (including an investment letter in the case of box (3) or (4)) and other information as the Trustee or the either Issuer has
reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act. 

        If
none of the foregoing boxes is checked, the Trustee or Registrar shall not be obligated to register this Note in the name of any person other than the Holder hereof unless and until
the 

A-13

 

conditions
to any such transfer of registration set forth herein and in Section 2.15 of the Indenture shall have been satisfied. 

	Dated:	 	 	 	Signed:	 	 
	 	 	
	 	 	 	
 (Sign exactly as your name appears on the other side of this Note)

	

Signature Guarantee:	
 	

 
	 	 	

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED  

        The undersigned represents and warrants that it is purchasing this Note for its own account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a "qualified institutional buyer" within the meaning of Rule 144A under the U.S. Securities Act and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information regarding the Issuer as the undersigned has requested pursuant to Rule 144A or has determined not to request
such information and that it is aware that the transferor is relying upon the undersigned's foregoing representations in order to claim the exemption from registration provided by Rule 144A. 

	Dated:	 	 	 	 
	 	 	
	 	
 NOTICE: To be executed by an executive officer

A-14

 
OPTION OF HOLDER TO ELECT PURCHASE  

        If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.10 or 4.19 of the Indenture, check the appropriate box: 

        Section 4.10
[            ] 

        Section 4.19
[            ] 

        If
you want to elect to have only part of this Note purchased by the Issuer pursuant to Section 4.10 or 4.19 of the Indenture, state the amount you elect to have purchased: 

	£	 	 
	 	 	

	Dated:	 	 	 	 
	 	 	
	 	
 NOTICE: The signature on this assignment must correspond with the name as it appears upon the face of the within Note in every particular without alteration or enlargement or any change whatsoever and be
guaranteed by the endorser's bank or broker.

	

 	
 	

Signature Guarantee:	
 	

 
	 	 	 	 	

A-15

 
SCHEDULE A

SCHEDULE OF PRINCIPAL AMOUNT  

        The initial principal amount of this Note is
£                        . The following decreases/increases in the principal amount of this Note have been made:

	Date of

Decrease/Increase
 
	 	Decrease in Principal

Amount
	 	Increase in Principal

Amount
	 	Principal Amount

Following such

Decrease/Increase
	 	Notation Made by or on Behalf of Registrar

	 	 	 	 	 	 	 	 	 
	

 	
 	

 	
 	

 	
 	

 	
 	

 

A-16

   EXHIBIT B  

 FORM OF 111/4% SENIOR EXCHANGE NOTE

ALTRA INDUSTRIAL MOTION, INC.

111/4% SENIOR NOTES DUE 2013  

	ISIN No. Common Code	 	U.K.£33,000,000	 	Initial Aggregate Principal Balance
	Certificate No.	 	U.K.£	 	Initial Principal Balance of this Certificate

        Altra
Industrial Motion, Inc., a Delaware corporation (the "Company," which term includes any successor entity), for value received
promises to pay to THE BANK OF NEW YORK DEPOSITORY (NOMINEES LIMITED) or registered assigns the principal sum of up to THIRTY-THREE MILLION AND 00/100 Pounds Sterling (U.K.£33,000,000),
initial issuance of                        Pounds Sterling
(U.K.£                        ) (or such principal amount at maturity as may be set forth in the records of the Trustee
hereinafter referred to
in accordance with the Indenture) on February 15, 2013 and to pay interest thereon as hereinafter set forth. 

        Interest
Rate: 111/4% 

        Interest
Payment Dates: February 15 and August 15, commencing August 15, 2006. 

        Record
Dates: February 1 and August 1 

        Reference
is made to the further provisions of this Note contained on the reverse side of this Note, which will for all purposes have the same effect as if set forth at this place. 

[Signature page follows] 

B-1

 

        IN
WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by its duly authorized officer. 

	 	 	ALTRA INDUSTRIAL MOTION, INC.
	

 	
 	

By:	
 	

    
 Name:

Title:
	

Dated:                        , 2006	
 	

 	
 	

 

B-2

 
TRUSTEE CERTIFICATE OF AUTHENTICATION  

        This is one of the 111/4% Senior Notes due 2013 referred to in the within-mentioned Indenture. 

	 	 	THE BANK OF NEW YORK, as Trustee
	

 	
 	

By:	
 	

    
 Name:

Authorized Signatory
	

Dated:                        , 2006	
 	

 	
 	

 

B-3

   (REVERSE OF SECURITY)

111/4% SENIOR NOTES DUE 2013  

        1.     Interest. 

        Altra
Industrial Motion, Inc., a Delaware corporation (the "Issuer"), promises to pay interest on the principal amount of this Note
at the rate per annum shown above. Interest on the Notes will accrue from the most recent date on which interest has been paid or, if no interest has been paid, from and including the date of
issuance. The Issuer will pay interest semi-annually in arrears on each Interest Payment Date, commencing August 15, 2006. Interest will be computed on the basis of a
360-day year comprised of twelve 30-day months. 

        2.     Method of Payment. 

        The
Issuer shall pay interest on the Notes to the Persons who are the registered Holders at the close of business on the Record Date immediately preceding the Interest Payment Date even
if the Notes are cancelled on registration of transfer or registration of exchange after such Record Date, and on or before such Interest Payment Date. Holders must surrender Notes to a Paying Agent
to collect principal payments. The Issuer shall pay principal and interest in money of the United Kingdom that at the time of payment is legal tender for payment of public and private debts
("U.K. Legal Tender"). However, the Issuer may pay principal and interest by check payable in such U.K. Legal Tender. The Issuer may deliver any such
interest payment to the Paying Agent or to a Holder at the Holder's registered address. 

        3.     Paying Agent and Registrar. 

        Initially,
The Bank of New York (the "Trustee") will act as Registrar and as paying agent in the City of New York (the
"Principal Paying Agent") and The Bank of New York (Luxembourg) S.A. will act as paying agent in Luxembourg (the "Luxembourg
Paying Agent" and, together with the Principal Paying
Agent, the "Paying Agent"). The Issuer may change any Paying Agent, Registrar or co-Registrar without notice to the Holders. 

        4.     Indenture. 

        The
Notes and the Guarantees were issued under an Indenture, dated as of February 8, 2006, by and among the Issuer, the Guarantors named therein, the Trustee and Principal Paying
Agent and the Luxembourg Paying Agent (the "Indenture"). The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the U.S. Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the "U.S. TIA"), as
in effect on the date of the Indenture until such time as the Indenture is qualified under the U.S. TIA, and thereafter as in effect on the date on which the Indenture is qualified under the U.S. TIA.
Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and Holders of Notes are referred to in the Indenture and the U.S. TIA for a statement of such terms. The
Notes are senior unsecured obligations of the Issuer. Each Holder, by accepting a Note, agrees to be bound by all of the terms and provisions of the Indenture, as the same may be amended from time to
time. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. 

        5.     Redemption on or After February 15, 2010. 

        (a)   Optional Redemption.    Except as described below, the Notes are not redeemable before February 15,
2010. On or after February 15, 2010, the Company may redeem the Notes, at its option, in whole or in part, upon not less than 30 nor more than 60 days' notice, at the following
redemption 

B-4

 

prices
(expressed as percentages of the principal amount thereof) if redeemed during the twelve-month period commencing on February 15 of the year set forth below: 

	Year
 
	 	Percentage
	 
	2010	 	105.625	%
	2011	 	102.813	%
	2012 and thereafter	 	100.000	%

        In
addition, the Company must pay accrued and unpaid interest and Additional Interest, if any, on the Notes redeemed to the date of redemption (subject to the right of the Holders of the
relevant record date to receive interest due on the relevant interest payment date). 

        (b)   Optional Redemption upon Equity Offerings.    In addition, at any time, or from time to time, until
February 15, 2009, the Company may, at its option, use an amount not to exceed the net cash proceeds of one or more Equity Offerings to redeem up to 35% of the aggregate principal amount of the
Notes (which includes Additional Notes, if any) originally issued under the Indenture at a redemption price of 111.250% of the aggregate principal amount thereof, plus accrued and unpaid interest and
Additional Interest thereon, if any, to the date of redemption; provided that: 

        (1)   at
least 65% of the original principal amount of Notes (which includes Additional Notes, if any) issued under the Indenture remains outstanding immediately after any
such redemption; and 

        (2)   the
Company makes such redemption not more than 120 days after the consummation of any such Equity Offering. 

        (c)   Notice of Redemption.    Notice of redemption will be mailed by first-class mail at least 30 days but
not more than 60 days before the redemption date to each Holder of Notes to be redeemed at such Holder's registered address. If fewer than all of the Notes are to be redeemed, at any time,
selection of Notes for redemption will be made by the Trustee in compliance with the requirements of the principal U.S. or foreign securities exchange, if any, on which the Notes are listed, or, if
the Notes are not so listed, on a pro rata basis, by lot or by such method as the Trustee reasonably determines to be fair and appropriate;  provided that
no partial redemption will reduce the principal amount of a Note not redeemed to a denomination of less than £50,000; and
provided, further, that any such partial redemption made with the proceeds of an Equity Offering will be
made only on a pro rata basis or on as nearly a pro rata basis as practicable (subject to the procedures
of Euroclear or Clearstream or any other depository) unless such method is otherwise prohibited. Notes in denominations of £50,000 or more may be redeemed in part. 

        Except
as set forth in the Indenture, if monies for the redemption of the Notes called for redemption shall have been deposited with the Paying Agent for redemption on such redemption
date sufficient to pay such redemption price plus accrued and unpaid interest and Additional Interest, if any, the Notes called for redemption will cease to bear interest from and after such
redemption date, and the only remaining right of the Holders of such Notes will be to receive payment of the redemption price plus accrued and unpaid interest and Additional Interest, if any, as of
the redemption date upon surrender to the Paying Agent of the Notes redeemed. 

        6.     Offers to Purchase. 

        Sections
4.10 and 4.19 of the Indenture provide that after certain Asset Sales and upon the occurrence of a Change of Control and subject to further limitations contained therein, the
Issuer will make an offer to purchase the Notes in accordance with the procedures set forth in the Indenture. 

B-5

 

        7.     Denominations; Transfer; Exchange. 

        The
Notes are in registered form, without coupons, in denominations of £50,000 and integral multiples of £1,000 in excess thereof. A Holder shall register the
transfer of or exchange of Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any
taxes, fees or similar governmental charges payable in connection therewith as permitted by the Indenture. The Registrar need not register the transfer of or exchange of any Notes or portions thereof
selected for redemption. 

        8.     Persons Deemed Owners. 

        The
registered Holder of a Note shall be treated as the owner of such Note for all purposes. 

        9.     Unclaimed Money. 

        If
money for the payment of principal or interest remains unclaimed for two years, the Trustee and the Paying Agent may pay the money without interest thereon back to the Issuer. After
that, all liability of the Trustee and such Paying Agent with respect to such money shall cease. 

        10.   Discharge Prior to Redemption or Maturity. 

        If
the Issuer at any time deposits with the Trustee U.K. Legal Tender or Government Obligations sufficient to pay the principal of and interest on the Notes to redemption or Maturity and
complies with the other provisions of the Indenture relating thereto, the Issuer shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes, except for
the rights of Holders to receive payments in respect of the principal of, and premium, if any, interest and Additional Interest, if any, on the Notes when such payments are due from the deposits
referred to above. 

        11.   Amendment; Supplement; Waiver. 

        Subject
to certain exceptions, the Indenture, the Notes or the Guarantees may be amended or supplemented with the written consent of the Holders of at least a majority in aggregate
principal amount of the Notes then outstanding, and any existing Default or Event of Default or noncompliance with any provision may be waived with the written consent of the Holders of a majority in
aggregate principal amount of the Notes then outstanding. Without consent of any Holder, the parties thereto may amend or supplement the Indenture, the Notes or the Guarantees to, among other things,
cure any ambiguity, defect or inconsistency, provide for uncertificated Notes or Guarantees in addition to or in place of certificated Notes or Guarantees, comply with the U.S. TIA, or comply with
Article Five of the Indenture or make any other change that does not adversely affect in any material respect the rights of any Holder of a Note. 

        12.   Restrictive Covenants. 

        The
Indenture imposes certain limitations on the ability of the Issuer and the Restricted Subsidiaries to, among other things, incur additional Indebtedness or Liens, make payments in
respect of their
Capital Stock or certain Indebtedness, enter into transactions with Affiliates, create dividend or other payment restrictions affecting Subsidiaries, merge or consolidate with any other Person, sell,
assign, transfer, lease, convey or otherwise dispose of all or substantially all of its assets. Such limitations are subject to a number of important qualifications and exceptions. The Issuer must
annually report to the Trustee on compliance with such limitations. 

        13.   Successors. 

        When
a successor assumes, in accordance with the Indenture, all the obligations of its predecessor under the Indenture, the Notes and the Guarantees, the predecessor will be released
from those obligations. 

B-6

 

        14.   Defaults and Remedies. 

        If
an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding may declare all the Notes to be
due and payable in the manner, at the time and with the effect provided in the Indenture. Holders of Notes may not enforce the Indenture except as provided in the Indenture. The Trustee is not
obligated to enforce the Indenture or the Notes unless it has received indemnity satisfactory to it. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in
aggregate principal amount of the Notes then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Notes notice of any continuing Default or
Event of Default (except a Default in payment of principal or interest) if it determines that withholding notice is in their interest. 

        15.   Trustee Dealings with Issuer. 

        Subject
to the terms of the U.S. TIA and the Indenture, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of the Notes and may
otherwise deal with the Issuer, the Subsidiaries or their respective Affiliates as if it were not the Trustee. 

        16.   No Recourse Against Others. 

        No
past, present or future stockholder, director, officer, employee or incorporator, as such, of the Issuer or the Guarantors shall have any liability for any obligation of the Issuer
under the Notes, the Guarantees or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder of a Note by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 

        17.   Guarantees. 

        Payment
of principal, premium, if any, and interest and Additional Interest, if any, is unconditionally guaranteed, jointly and severally, by each of the Guarantors. 

        18.   Authentication. 

        This
Note shall not be valid until the Trustee or Authenticating Agent manually signs the certificate of authentication on this Note. 

        19.   Governing Law. 

        THE
LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS NOTE, THE GUARANTEES AND THE INDENTURE, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. 

        20.   Waiver of Jury Trial. 

        Each
of the parties hereto and the holders (by their acceptance of the Note) hereby irrevocably waives, to the fullest extent permitted by law, any and all right to trial by jury in any
action or proceeding arising out of or in connection with the Indenture, this Note, the Guarantees or the transactions contemplated by the Indenture. 

        21.   Abbreviations and Defined Terms. 

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

        The
Issuer will furnish to any Holder of a Note upon written request and without charge a copy of the Indenture. Requests may be made to: Altra Industrial Motion, Inc., 14 Hayward
Street, Quincy, Massachusetts 02171. 

B-7

  

 
 

FORM OF GUARANTEE    
    

        Each of the undersigned and their respective successors under the Indenture (collectively, the "Guarantors") has
jointly and severally with each of the other Guarantors, irrevocably and unconditionally guaranteed, on a senior unsecured basis to the extent set forth in the Indenture, dated as of
February 8, 2006, by and among the Issuer, the Guarantors, The Bank of New York, as Trustee and Principal Paying Agent, and The Bank of New York (Luxembourg) S.A., as Luxembourg Paying Agent
(the "Indenture"), (i) the due and punctual payment of the principal of, premium, if any, and interest and Additional Interest, if any, on the
Notes, whether at maturity, by acceleration or otherwise, and the due and punctual performance of all other obligations of the Issuer to the Holders or the Trustee all in accordance with the terms set
forth in Article Ten of the Indenture and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. Capitalized terms used herein have the meanings assigned to
them in the Indenture unless otherwise indicated. 

        THE
OBLIGATIONS OF THE UNDERSIGNED TO HOLDERS OF THE NOTES AND TO THE TRUSTEE PURSUANT TO THIS NOTATION OF GUARANTEE (THE "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 GUARANTEE AND ALL OTHER PROVISIONS OF THE INDENTURE TO WHICH THE GUARANTEE RELATES. 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 FOR SUCH HOLDER FOR SUCH
PURPOSES. 

        THIS
GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

B-8

 

        IN
WITNESS WHEREOF, each Guarantor has caused its Guarantee to be duly executed. 

	

 	
 	

[NAME OF GUARANTOR], as Guarantor
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

B-9

 
 
 

ASSIGNMENT FORM    
    

        If you the Holder want to assign this Note, fill in the form below and have your signature guaranteed: 

I
or we assign and transfer this Note to: 

	

	  
	

 (Print or type name, address and zip code and

social security or tax ID number of assignee)

and
irrevocably appoint
                                         
                                       

agent to transfer this Note on the books of the Issuer. The agent may substitute another to act for him. 

	

Dated:	

 	
 	

Signed:	

 
	 	
	 	 	
 (Sign exactly as your name appears on the other side of this Note)

	Signature Guarantee:	 
	 	

B-10

  

 
 

OPTION OF HOLDER TO ELECT PURCHASE    
    

        If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.10 or 4.19 of the Indenture, check the appropriate box: 

Section 4.10
[            ] 

Section 4.19
[            ] 

        If
you want to elect to have only part of this Note purchased by the Issuer pursuant to Section 4.10 or 4.19 of the Indenture, state the amount you elect to have purchased: 

£                                       
                     
 

	Dated:	  
	 	  

	 	 	 	NOTICE:	 	The signature on this assignment must correspond with the name as it appears upon the face of the within Note in every particular without alteration or enlargement or any change whatsoever and be guaranteed by the
endorser's bank or broker.

	

 	

 	
 	

Signature Guarantee:	
 	

 
	 	 	 	 	 	

B-11

 
 
 

SCHEDULE A
  
    SCHEDULE OF PRINCIPAL AMOUNT    
    

        The initial principal amount of this Note is
£                        . The following decreases/increases in the principal amount of this Note have been made:

	Date of

Decrease/Increase
	 	Decrease in Principal

Amount
	 	Increase in Principal

Amount
	 	Principal Amount

Following such

Decrease/Increase
	 	Notation Made by or

on Behalf of

Registrar

	

    	
 	

 	
 	

 	
 	

 	
 	

 
	

    	
 	

 	
 	

 	
 	

 	
 	

 
	

    	
 	

 	
 	

 	
 	

 	
 	

 
	

    	
 	

 	
 	

 	
 	

 	
 	

 
	

    	
 	

 	
 	

 	
 	

 	
 	

 
	

    	
 	

 	
 	

 	
 	

 	
 	

 
	

    	
 	

 	
 	

 	
 	

 	
 	

 
	

    	
 	

 	
 	

 	
 	

 	
 	

 

B-12

  

 
 

EXHIBIT C    
    

 
 

FORM OF LEGEND FOR GLOBAL NOTES    
    

        Any Global Note authenticated and delivered hereunder shall bear a legend (which would be in addition to any other legends required in the case of a Restricted
Security) in substantially the following form: 

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

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE BANK OF NEW YORK TO THE ISSUER OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES LIMITED) OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE BANK OF NEW YORK (AND ANY PAYMENT IS MADE
TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES LIMITED) OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE BANK OF NEW YORK), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES LIMITED), HAS AN INTEREST HEREIN. 

C-1

  

 
 

EXHIBIT D    
    

 
 

FORM OF LEGEND FOR REGULATION S GLOBAL NOTES    
    

        Any Regulation S Global Note authenticated and delivered hereunder shall bear a legend (which would be in addition to any other legends required in the
case of a Restricted Security) in substantially the following form: 

UNTIL
40 DAYS AFTER THE COMMENCEMENT OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE U.S. SECURITIES ACT) MAY VIOLATE THE REGISTRATION
REQUIREMENTS OF THE U.S. SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A UNDER THE U.S. SECURITIES ACT. 

D-1

  

 
 

EXHIBIT E    
    

 
 

Form of Certificate To Be
  Delivered in Connection with
  Transfers to Non-QIB Accredited Investors    
    

                                ,
        

The
Bank of New York

101 Barclay Street, 8 W

New York, NY 10286 

	Re:
	111/4% Senior Notes due 2013 (the "Notes") of Altra Industrial Motion, Inc. (the "Company")  

Ladies and Gentlemen: 

        In
connection with our proposed purchase of £                aggregate principal amount at maturity of the Notes, we confirm that: 

        1.     We
have received a copy of the Offering Circular (the "Offering Circular"), dated February 3, 2006, relating to the
Notes and such other information as we deem necessary in order to make our investment decision. We acknowledge that we have read and agreed to the matters stated in the section entitled "Notice to
Investors" of the Offering Circular. 

        2.     We
understand that any subsequent transfer of the Notes is subject to certain restrictions and conditions set forth in the Indenture dated as of February 8, 2006
relating to the Notes (the "Indenture") and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes except in
compliance with, such restrictions and conditions and the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). 

        3.     We
understand that the offer and sale of the Notes have not been registered under the U.S. Securities Act, and that the Notes 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 or otherwise transfer any Notes
prior to the date which is within two years after the original issuance of the Notes or the last date on which the Note is owned by the Company or any affiliate of the Company, we will do so only
(i) to the Company or any of its subsidiaries, (ii) inside the United States in accordance with Rule 144A under the U.S. Securities Act to a "qualified institutional buyer" (as
defined in Rule 144A under the U.S. Securities Act), (iii) inside the United States to an institutional "accredited investor" (as defined below) provided that, prior to such transfer,
the transferee furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you a signed letter containing certain representations and agreements relating to the restrictions on transfer of
the Notes, substantially in the form of this letter, (iv) outside the United States in accordance with Rule 904 of Regulation S under the U.S. Securities Act, (v) pursuant
to the exemption from registration provided by Rule 144 under the U.S. Securities Act (if available) or (vi) pursuant to an effective registration statement under the U.S. Securities
Act, and we further agree to provide to any person purchasing any of the Notes from us a notice advising such purchaser that resales of the Notes are restricted as stated herein. 

        4.     We
are not acquiring the Notes for or on behalf of, and will not transfer the Notes to, any pension or welfare plan (as defined in Section 3 of the Employee
Retirement Income Security Act of 1974), except as permitted in the section entitled "Notice to Investors" of the Offering Circular. 

        5.     We
understand that, on any proposed resale of any Notes, we will be required to furnish to you and the Company such certification, legal opinions and other information as
you and the Company 

E-1

 

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. 

        6.     We
are an institutional "accredited investor" (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the U.S. 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 their investment, as the case may be. 

        7.     We
are acquiring the Notes 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. 

        8.     We
are not acquiring Notes with a view to any distribution thereof in a transaction that would violate the U.S. Securities Act or the securities laws of any state of the
United States or any other applicable jurisdiction; provided that the disposition of our property and the property of any accounts for which we are acting as fiduciary shall remain at all times within
our and their control. 

        You
and the Company 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, and we agree to notify you promptly if any of our representations or warranties herein cease to be accurate and complete. 

        This
letter shall be governed by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of laws. 

	

 	

Very truly yours,
	 	[Name of Transferee]
	

 	

By:	

  

	 	 	Authorized Signature

E-2

  

 
 

EXHIBIT F    
    

 
 

Form of Certificate To Be
  Delivered in Connection with
  Transfers Pursuant to Regulation S    
    

The
Bank of New York

101 Barclay Street, 8 W

New York, NY 10286 

	Re:
	111/4% Senior Notes due 2013 (the "Notes") of Altra Industrial Motion, Inc. (the "Company")  

Ladies and Gentlemen: 

        In
connection with our proposed sale of £                aggregate principal amount at maturity of the Notes, we confirm that such sale has been effected pursuant to
and in
accordance with Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and, accordingly, we represent that: 

        1.     the
offer of the Notes was not made to a person in the United States; 

        2.     either
(a) at the time the buy offer was originated, the transferee was outside the United States or we and any person acting on our behalf reasonably believed
that the transferee was outside the United States, or (b) the transaction was executed in, on or through the facilities of a designated off-shore securities market and neither we
nor any person acting on our behalf knows that the transaction has been pre-arranged with a buyer in the United States; 

        3.     no
directed selling efforts have been made in the United States in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S,
as applicable; 

        4.     the
transaction is not part of a plan or scheme to evade the registration requirements of the U.S. Securities Act; and 

        5.     we
have advised the transferee of the transfer restrictions applicable to the Notes. 

        You
and the Company 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. Terms used in this certificate have the meanings set forth in Regulation S. 

	

 	

Very truly yours,
	 	[Name of Transferee]
	

 	

By:	

  

	 	 	Authorized Signature

F-1

QuickLinks

Exhibit 4.1

FORM OF GUARANTEE

ASSIGNMENT FORM

OPTION OF HOLDER TO ELECT PURCHASE

SCHEDULE A SCHEDULE OF PRINCIPAL AMOUNT

EXHIBIT C

FORM OF LEGEND FOR GLOBAL NOTES

EXHIBIT D

FORM OF LEGEND FOR REGULATION S GLOBAL NOTES

EXHIBIT E

Form of Certificate To Be Delivered in Connection with Transfers to Non-QIB Accredited Investors

EXHIBIT F

Form of Certificate To Be Delivered in Connection with Transfers Pursuant to Regulation S

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