Document:

Exhibit 4.03

 

THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), OR UNDER ANY STATE SECURITIES LAWS.  THESE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO
REGISTRATION UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR UPON
RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

WARRANT CERTIFICATE

For Purchase of
Common Stock

of

HOME SOLUTIONS OF
AMERICA, INC.

September 27, 2005

THIS CERTIFIES
THAT, for value received, Florida Environmental Remediation Services, Inc., a Florida
corporation, whose address is 1400 SW 12th Avenue, Pompano Beach,
Florida, 33069, or its registered transferees or assigns ("Holder"), is
entitled, subject to the terms and conditions hereinafter set forth, to
purchase from Home Solutions of America, Inc., a Delaware corporation (the
"Company"), One Million Fifty Two Thousand Six Hundred Thirty-Two (1,052,632)
fully paid and nonassessable shares of common stock, $.001 par value per share
("Common Stock"), of the Company (the shares of Common Stock issuable under
this Warrant being referred to as the "Warrant Shares").

This Warrant
is executed in connection with the transactions contemplated by the Asset
Purchase Agreement among the Company, Home Restoration Solutions of Louisiana,
Inc., a Louisiana corporation and a wholly-owned subsidiary of the Company,
Holder, and the shareholders of Holder dated as of September 27, 2005 (the "Purchase
Agreement").  Capitalized terms not defined herein shall have the
respective meanings given to such terms in the Purchaser Agreement.

This Warrant
may be exercised only upon certain circumstances set forth herein, by
presentation and surrender of this Warrant Certificate, together with (i) a
completed and executed Election to Purchase in the form attached as Annex I
hereto, at any time during the Exercise Period (as hereinafter defined), at the
principal office of the Company or at such other office as shall have been
theretofore designated by the Company by notice pursuant hereto, and (ii)
payment to the Company of the applicable purchase price, as hereinafter set
forth.  In certain contingencies provided for below, the number of Warrant Shares
subject to purchase hereunder or the purchase price thereof are subject to
adjustment.

 

 

	
  1

  

 

This Warrant
is subject to the following terms and conditions:

1.         Exercise
of Warrant.

                        (a)        This
Warrant shall become exercisable if at least one of the Economic Goals is met
by the Deadline. If neither Economic Goal is met by the Deadline, then this
Warrant shall automatically become void and of no force or effect, and upon
return to the Parent by the Escrow Agent, shall be cancelled.  If either of the
Economic Goals are met by the Deadline, then this Warrant shall be exercisable
for the Exercise Period (as defined below).

(b)        The
term "Exercise Period" shall mean and refer to a period
commencing on the date the Economic Goal is confirmed by the Company as having
been met, and ending at midnight, central time, on December 31, 2006.  

(c)        The purchase rights which are represented
by this Warrant are exercisable at the option of the holder hereof, in whole at
any time, or in part from time to time (but not as to a fractional share of
Common Stock), during the Exercise Period.  In the case of the purchase of, or
the surrender of rights to purchase, less than all the shares purchasable under
this Warrant, the Company shall cancel this Warrant upon the surrender hereof
and shall execute and deliver a new Warrant of like tenor for the balance of
the shares purchasable hereunder. 

2.         Price. 
The purchase price of each Warrant Share purchasable pursuant to the exercise
of this Warrant (the "Exercise Price") shall be $0.001,
subject to adjustment as set forth herein, payable by bank check or wire
transfer of same day funds. 

            3.         Anti-Dilution
Provisions.  The Exercise Price in effect at any time and the number of
Warrant Shares and kind of securities purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the happening of
any of the following events:

            (a)        In
case at any time the Company shall subdivide its outstanding shares of Common
Stock into a greater number of shares, the Exercise Price in effect immediately
prior to such subdivision shall be proportionately reduced.  In case at any
time the outstanding shares of Common Stock of the Company shall be combined
into a smaller number of shares, the Exercise Price in effect immediately prior
to such combination shall be proportionately increased. 

	
  2

  

 

            (b)        In
case of any reclassification, capital reorganization or other change of
outstanding shares of Common Stock, or in case of any consolidation, merger or
other business combination of the Company with or into another corporation or
other entity (other than a merger with a subsidiary in which merger the Company
shall be the continuing corporation and which shall not result in any
reclassification, capital reorganization or other change of outstanding shares
of Common Stock of the class issuable upon conversion of this Warrant) or in
case of any sale, lease or conveyance to another corporation or other entity of
all or substantially all of the assets of the Company, the Company shall cause
effective provisions to be made so that Holder, at any time after the
consummation of such reclassification, change, consolidation, merger, sale,
lease, conveyance, dividend or distribution, shall be entitled to receive upon
exercise of this Warrant during the Exercise Period and in lieu of the shares
of Common Stock that would have been issued immediately prior to consummation
of such transaction, the stock or other securities or property to which Holder
would have been entitled upon such consummation if such Warrant had been
exercised into shares of Common Stock immediately prior to such consummation. 
Any such provision shall include provisions for adjustments that shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
Warrant.  The foregoing provisions of this paragraph (b) shall similarly apply
to successive reclassifications, capital reorganizations and changes of shares
of Common Stock and to successive consolidations, mergers, sales, leases or
conveyances.  In the event that, in connection with any such capital
reorganization or reclassification, consolidation, merger, sale, lease or
conveyance, additional shares of Common Stock shall be issued in exchange,
conversion, substitution or payment, in whole or in part, for a security of the
Company other than Common Stock, any such issue shall be treated as an issue of
Common Stock subject to the provisions of this Section 3. 

            (c)        In
each case of any event described above that may require any adjustment or readjustment
in the shares of Common Stock issuable upon the exercise of this Warrant, the
Company at its expense will promptly compute the adjustment or readjustment, if
any, in accordance with this Warrant and provide written notice of such
adjustment or readjustment to the Holder. 

4.         Representations
of Holder.  In consideration of the issuance of the Warrants, Holder
represents, warrants and covenants, to the Company as follows:

            (a)        Authorization.  
Holder is duly organized, validly existing and in good standing under the laws
of its jurisdiction.  Holder has the necessary power and authority to execute
and deliver this Warrant and to perform its obligations hereunder.  The
execution and delivery of, and the performance under, this Warrant by Holder
will not conflict with any rule, regulation, judgment or agreement applicable
to Holder.

(b)        Investment Purpose.   Holder was not formed for the
purpose of acquiring the Warrants or the Warrant Shares.  Holder is purchasing
the Warrants (and will, upon exercise hereof, purchase the Warrant Shares) for
investment purposes and not with a present view to, or for sale in connection
with, a distribution thereof within the meaning of the Securities Act of 1933,
as amended (the "Securities Act").  Holder understands that it
may not be able to sell or otherwise dispose of the Warrants or the Warrant
Shares, and accordingly it must bear the economic risk of this investment
indefinitely.

(c)        Reliance On Exemptions.   Holder understands that
neither the Warrants nor the Warrant Shares have been registered under the
Securities Act or any state securities laws and are being offered and sold in
reliance upon specific exemptions from the registration requirements of federal
and state securities laws, and that the Company is relying upon the truth and
accuracy of the representations and warranties of Holder set forth herein in
order to determine the availability of such exemptions and the eligibility of
Holder to acquire the Warrants and the Warrant Shares.

	
  3

  

 

(d)        Information.   Holder has been furnished all
documents relating to the business, finances and operations of the Company that
Holder requested from the Company and has evaluated the risks and merits
associated with an investment in the Warrants and the Warrant Shares to its
satisfaction.  Holder has been afforded the opportunity to ask questions of the
Company's representatives concerning the Company in making the decision to
purchase and acquire the Warrants and the Warrant Shares, and such questions
have been answered to its satisfaction.

            (e)        Governmental
Review.   Holder understands that no federal or state agency or any other
government or governmental agency has passed upon or made any recommendation or
endorsement of the Warrants or the Warrant Shares.

(f)         Holder's Qualifications.   Holder is an
"accredited investor" as defined in Rule 501 under Regulation D of
the Securities Act.  Holder is capable of evaluating the merits and risks of an
investment in the Warrants and the Warrant Shares.   

(g)        Restrictions on Transfer.   Holder covenants and
agrees that it shall not transfer any of the Warrants or the Warrant Shares
unless such Securities are registered under the Securities Act or unless an
exemption from registration and qualification requirements is available under
the Securities Act and applicable state securities laws and the Company has
received an opinion of counsel satisfactory to it stating that such
registration and qualification is not required.  Holder understands that
certificates representing the Warrants and the Warrant Shares shall bear the
following, or a substantially similar, legend until such time as they have been
registered under the Securities Act or otherwise may be sold without volume or
other limitations under Rule 144 promulgated under the Securities Act:

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT"), OR UNDER ANY STATE SECURITIES LAWS. 
THESE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
EXCEPT PURSUANT TO REGISTRATION UNDER THE ACT AND APPLICABLE STATE SECURITIES
LAWS, OR UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

            (h)        Residence.  
Holder is domiciled within the jurisdiction set forth under its name on the
signature pages hereto.

                        (i)         Compliance with Laws. 
Holder further represents to the Company that:

(i)         it will not act, or fail to act, in any way that might
make unavailable to the Company, any of the exemptions from registration under
both state and federal securities law that it is relying upon in connection
with issuing this Warrant; and

 

	
  4

  

 

(ii)        Holder will at all times comply with all
applicable laws relating to its activities under this Warrant, including without
limitation all applicable federal and state securities laws and regulations.

            5.         Elimination
of Fractional Interests.  The Company shall not be required to issue
certificates representing fractions of Warrant Shares, but will make a payment
in cash based on the Exercise Price in effect at that time.

6.         Exchange and Replacement of Warrant.  This Warrant is
exchangeable, upon the surrender hereof by the registered holder at the
principal office of the Company, for new Warrants of like tenor and date representing
the right to purchase the number of shares purchasable hereunder, registered in
such names as requested by such holder (subject to the approval and consent of
the Company), each of such new Warrants to represent the right to purchase such
number of shares as shall be designated by said registered holder at the time
of such surrender.  Upon receipt by the Company of (a) evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant and, in case of loss, theft or destruction, and  (b) indemnity or
security reasonably satisfactory to it, and upon surrender and cancellation of
this Warrant, if mutilated, the Company will make and deliver a new Warrant or
Warrants of like tenor, in lieu of this Warrant.

7.        Rights Prior to Exercise of Warrant.  Prior to the
exercise of this Warrant, Holder  shall not, by reason of this Warrant or the
shares underlying this Warrant, be entitled to any rights of a stockholder of
the Company, including without limitation the right to vote, to receive
dividends or other distributions or to exercise any preemptive rights and shall
not thereby be entitled to receive any notice of any proceedings of the
Company, except as specifically provided herein.

8.        Notices.  All notices, requests, consents and other
communications hereunder shall be in writing and shall be mailed by first class
registered or certified mail, postage prepaid, at such address as may have been
furnished to the Company in writing by Holder or, until Holder furnishes to the
Company an address, then to, and at the address of, the last Holder of this
Warrant who has so furnished an address to the Company.

9.        
Transferability; Successors.  No transfer of a Warrant for less
than 100,000 shares shall be valid unless made by the registered Holder with
the prior written consent of the Company, which shall not be unreasonably
withheld.  The terms of this Warrant shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors, personal
representatives, successors and assigns and shall be binding upon any person,
firm, corporation or other entity to whom this Warrant and any shares of Common
Stock issuable upon exercise hereof are assigned or transferred (even if in
violation of the provisions of this Warrant) and the heirs, executors, personal
representatives, successors and assigns of such person, firm, corporation or
other entity.

	
  5

  

10.             
Amendment and Waiver.  Any changes in or additions to this
Warrant may be made, and compliance with any covenant or provision herein set
forth may be waived, only if the Company shall obtain consent thereto in
writing from the holder of this Warrant.  Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

11.             
Governing Law; Venue.  This Warrant shall be construed in
accordance with and be governed by the laws of the State of Delaware without regard to its conflict of laws provisions. 
The parties irrevocably submit to the non-exclusive
jurisdiction of the state and federal courts located in Dallas County, Texas for the purpose of any suit, action or other proceeding arising out of or based on
this Warrant or its subject matter.  Each party, to the extent applicable law
permits, waives, and will not assert by way of motion, as a defense or
otherwise, in any suit, action or proceeding brought in the above-named courts,
any claim that (a) it is not subject personally to the jurisdiction of those
courts, (b) the suit, action or proceeding is brought in an inconvenient forum,
(c) the venue of the suit, action or proceeding is improper, or (d) this
Warrant or its subject matter may not be enforced in or by these courts.

[The
remainder of this page is left blank intentionally.]

 

 

 

 

 

 

	
  6

  

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
and delivered as an instrument under seal and as of the date first above
written.

HOME
SOLUTIONS OF AMERICA, INC.,

a Delaware corporation

By:     /s/
Rick O'Brien                                                   

Name:  Rick O'Brien

Title:     Chief Financial Officer

                                                                        

 

 

 

	
  7

  

 

ANNEX I

ELECTION
TO PURCHASE

TO: HOME
SOLUTIONS OF AMERICA, INC.

 

The undersigned owner of the accompanying Warrant hereby irrevocably
exercises the option to purchase _______________ Warrant Shares in accordance
with the terms of such Warrant, directs that the Warrant Shares issuable and
deliverable upon such purchase (together with any check for a fractional
interest) be issued in the name of and delivered to the undersigned, and makes
payment in full therefor at the Exercise Price provided in such Warrant.

COMPLETE FOR
REGISTRATION OF WARRANT SHARES ON THE STOCK TRANSFER RECORDS MAINTAINED BY THE
COMPANY:

Florida Environmental Remediation Services, Inc.,

a Florida corporation

By:                                                                  

Name:                                                 

Title:                                                    

Address:                                                          

                                                                        

 

                                                                       

Social Security or Other Identifying
Number

Date:                                                    ,
20___

	
  8Exhibit 4.1

 

CONFORMED COPY

 

 

TEVECAP S.A.

 

12.625% Senior Notes due 2009

 

 

INDENTURE

 

Dated as of December 21, 2004

 

 

HSBC BANK USA, NATIONAL ASSOCIATION

Trustee

 

and

 

Principal Paying Agent

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  Section

  	
   

  	
   

  	
   

  	
  Indenture

  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
   

  	
   

  	
  6.10

  	
   

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  6.10

  	
   

  
	
  (a)(3)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  (a)(4)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.8; 6.10

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
   

  	
   

  	
  6.11

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.11

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
   

  	
   

  	
  2.16

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  10.3

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  10.3

  	
   

  
	
  313(a)

  	
   

  	
   

  	
   

  	
  6.6

  	
   

  
	
  (b)(1)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  (b)(2)

  	
   

  	
   

  	
   

  	
  6.6

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  6.6

  	
   

  
	
  (d)

  	
   

  	
   

  	
   

  	
  6.6

  	
   

  
	
  314(a)

  	
   

  	
   

  	
   

  	
  4.3; 10.2

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  10.4

  	
   

  
	
  (c)(2)

  	
   

  	
   

  	
   

  	
  10.4

  	
   

  
	
  (c)(3)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  (d)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  (e)

  	
   

  	
   

  	
   

  	
  10.5

  	
   

  
	
  (f)

  	
   

  	
   

  	
   

  	
  4.3

  	
   

  
	
  315(a)

  	
   

  	
   

  	
   

  	
  6.1

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  5.1; 10.2

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  6.1

  	
   

  
	
  (d)

  	
   

  	
   

  	
   

  	
  6.1

  	
   

  
	
  (e)

  	
   

  	
   

  	
   

  	
  5.11

  	
   

  
	
  316(a)(last sentence)

  	
   

  	
   

  	
   

  	
  10.6

  	
   

  
	
  (a)(1)(A)

  	
   

  	
   

  	
   

  	
  5.5

  	
   

  
	
  (a)(1)(B)

  	
   

  	
   

  	
   

  	
  5.4

  	
   

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  5.7

  	
   

  
	
  317(a)(1)

  	
   

  	
   

  	
   

  	
  5.8

  	
   

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  5.9

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  2.8

  	
   

  
	
  318(a)

  	
   

  	
   

  	
   

  	
  10.1

  	
   

  

 

N.A. means Not Applicable.

 

Note:                   This
Cross-Reference Table shall not, for any purpose, be deemed to be part of the
Indenture.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
  SECTION 1.1.

  	
  Definitions

  	
   

  
	
  SECTION 1.2.

  	
  Other Definitions

  	
   

  
	
  SECTION 1.3.

  	
  Incorporation by Reference of Trust Indenture Act

  	
   

  
	
  SECTION 1.4.

  	
  Rules of Construction

  	
   

  
	
  ARTICLE II

  	
  THE NOTES

  	
   

  
	
  SECTION 2.1.

  	
  Title and Terms; Form

  	
   

  
	
  SECTION 2.2.

  	
  Denominations

  	
   

  
	
  SECTION 2.3.

  	
  Execution, Authentication, Delivery and Dating

  	
   

  
	
  SECTION 2.4.

  	
  Temporary Notes

  	
   

  
	
  SECTION 2.5.

  	
  Registration, Registration of Transfer and Exchange

  	
   

  
	
  SECTION 2.6.

  	
  Mutilated, Destroyed, Lost and Stolen Notes

  	
   

  
	
  SECTION 2.7.

  	
  Payment of Interest; Interest Rights Preserved

  	
   

  
	
  SECTION 2.8.

  	
  Paying Agents; Discharge of Payment Obligations;
  Indemnity of Holders

  	
   

  
	
  SECTION 2.9.

  	
  Persons Deemed Owners

  	
   

  
	
  SECTION 2.10.

  	
  Cancellation

  	
   

  
	
  SECTION 2.11.

  	
  Computation of Interest

  	
   

  
	
  SECTION 2.12.

  	
  Legal Holidays

  	
   

  
	
  SECTION 2.13.

  	
  CUSIP and CINS Numbers

  	
   

  
	
  SECTION 2.14.

  	
  Book-Entry Provisions for Global Notes

  	
   

  
	
  SECTION 2.15.

  	
  Money for Note Payments To be Held in Trust

  	
   

  
	
  SECTION 2.16.

  	
  Noteholder Lists

  	
   

  
	
  SECTION 2.17.

  	
  Outstanding Notes

  	
   

  
	
  ARTICLE III

  	
  REDEMPTION

  	
   

  
	
  SECTION 3.1.

  	
  Scheduled Redemption

  	
   

  
	
  SECTION 3.2.

  	
  Optional Redemption

  	
   

  
	
  SECTION 3.3.

  	
  Notices to Trustee

  	
   

  
	
  SECTION 3.4.

  	
  Selection of Notes To Be Redeemed

  	
   

  
	
  SECTION 3.5.

  	
  Notice of Redemption

  	
   

  
	
  SECTION 3.6.

  	
  Effect of Notice of Redemption

  	
   

  
	
  SECTION 3.7.

  	
  Deposit of Redemption Price

  	
   

  
	
  SECTION 3.8.

  	
  Notes Redeemed in Part

  	
   

  
	
  ARTICLE IV

  	
  COVENANTS

  	
   

  
				

 

i

 

	
  SECTION 4.1.

  	
  Payment of Notes

  	
   

  
	
  SECTION 4.2.

  	
  Payment of Additional Amounts

  	
   

  
	
  SECTION 4.3.

  	
  Compliance Certificate

  	
   

  
	
  SECTION 4.4.

  	
  Further Instruments and Acts

  	
   

  
	
  ARTICLE V

  	
  DEFAULTS AND REMEDIES

  	
   

  
	
  SECTION 5.1.

  	
  Events of Default

  	
   

  
	
  SECTION 5.2.

  	
  Acceleration

  	
   

  
	
  SECTION 5.3.

  	
  Other Remedies

  	
   

  
	
  SECTION 5.4.

  	
  Waiver of Past Defaults

  	
   

  
	
  SECTION 5.5.

  	
  Control by Majority

  	
   

  
	
  SECTION 5.6.

  	
  Limitation on Suits

  	
   

  
	
  SECTION 5.7.

  	
  Rights of Holders to Receive Payment

  	
   

  
	
  SECTION 5.8.

  	
  Collection Suit by Trustee

  	
   

  
	
  SECTION 5.9.

  	
  Trustee May File Proofs of Claim

  	
   

  
	
  SECTION 5.10.

  	
  Priorities

  	
   

  
	
  SECTION 5.11.

  	
  Undertaking for Costs

  	
   

  
	
  ARTICLE VI

  	
  TRUSTEE

  	
   

  
	
  SECTION 6.1.

  	
  Duties of Trustee

  	
   

  
	
  SECTION 6.2.

  	
  Rights of Trustee

  	
   

  
	
  SECTION 6.3.

  	
  Individual Rights of Trustee

  	
   

  
	
  SECTION 6.4.

  	
  Trustee’s Disclaimer

  	
   

  
	
  SECTION 6.5.

  	
  Intentionally Omitted

  	
   

  
	
  SECTION 6.6.

  	
  Reports by Trustee to Holders

  	
   

  
	
  SECTION 6.7.

  	
  Compensation and Indemnity

  	
   

  
	
  SECTION 6.8.

  	
  Replacement of Trustee

  	
   

  
	
  SECTION 6.9.

  	
  Successor Trustee by Merger

  	
   

  
	
  SECTION 6.10.

  	
  Eligibility; Disqualification

  	
   

  
	
  SECTION 6.11.

  	
  Preferential Collection of Claims
  Against Company

  	
   

  
	
  ARTICLE VII

  	
  DISCHARGE OF
  INDENTURE; DEFEASANCE

  	
   

  
	
  SECTION 7.1.

  	
  Discharge of Liability on Notes;
  Defeasance

  	
   

  
	
  SECTION 7.2.

  	
  Conditions to Defeasance

  	
   

  
	
  SECTION 7.3.

  	
  Application of Trust Money

  	
   

  
	
  SECTION 7.4.

  	
  Repayment to Company

  	
   

  
				

 

ii

 

	
  SECTION 7.5.

  	
  Indemnity for U.S. Government
  Obligations

  	
   

  
	
  SECTION 7.6.

  	
  Reinstatement

  	
   

  
	
  ARTICLE VIII

  	
  AMENDMENTS

  	
   

  
	
  SECTION 8.1.

  	
  Without Consent of Holders

  	
   

  
	
  SECTION 8.2.

  	
  With Consent of Holders

  	
   

  
	
  SECTION 8.3.

  	
  Compliance with Trust Indenture Act

  	
   

  
	
  SECTION 8.4.

  	
  Revocation and Effect of Consents and
  Waivers

  	
   

  
	
  SECTION 8.5.

  	
  Notation on or Exchange of Notes

  	
   

  
	
  SECTION 8.6.

  	
  Trustee To Sign Amendments

  	
   

  
	
  ARTICLE IX

  	
  SUBSIDIARY
  GUARANTEE

  	
   

  
	
  SECTION 9.1.

  	
  Execution of Subsidiary Guarantee

  	
   

  
	
  SECTION 9.2.

  	
  Subsidiary Guarantee

  	
   

  
	
  SECTION 9.3.

  	
  Limitation on Liability

  	
   

  
	
  SECTION 9.4.

  	
  Successors and Assigns

  	
   

  
	
  SECTION 9.5.

  	
  No Waiver

  	
   

  
	
  SECTION 9.6.

  	
  Right of Contribution

  	
   

  
	
  SECTION 9.7.

  	
  No Subrogation

  	
   

  
	
  SECTION 9.8.

  	
  Modification

  	
   

  
	
  SECTION 9.9.

  	
  Waiver of Brazilian Law Benefits

  	
   

  
	
  ARTICLE X

  	
  MISCELLANEOUS

  	
   

  
	
  SECTION 10.1.

  	
  Trust Indenture Act Controls

  	
   

  
	
  SECTION 10.2.

  	
  Notices

  	
   

  
	
  SECTION 10.3.

  	
  Communication by Holders with other
  Holders

  	
   

  
	
  SECTION 10.4.

  	
  Certificate and Opinion as to
  Conditions Precedent

  	
   

  
	
  SECTION 10.5.

  	
  Statements Required in Certificate or
  Opinion

  	
   

  
	
  SECTION 10.6.

  	
  When Notes Disregarded

  	
   

  
	
  SECTION 10.7.

  	
  Rules by Trustee, Paying Agent
  and Registrar

  	
   

  
	
  SECTION 10.8.

  	
  Legal Holidays

  	
   

  
	
  SECTION 10.9.

  	
  Governing Law

  	
   

  
	
  SECTION 10.10.

  	
  No Recourse Against Others

  	
   

  
	
  SECTION 10.11.

  	
  Successors

  	
   

  
	
  SECTION 10.12.

  	
  Multiple Originals

  	
   

  
	
  SECTION 10.13.

  	
  Variable Provisions

  	
   

  
				

 

iii

 

	
  SECTION 10.14.

  	
  Qualification of Indenture

  	
   

  
	
  SECTION 10.15.

  	
  Table of Contents; Headings

  	
   

  
	
  SECTION 10.16.

  	
  Agent for Service; Submission to
  Jurisdiction; Waiver of Immunities

  	
   

  
	
  SECTION 10.17.

  	
  Currency of Account; Conversion of
  Currency; Foreign Exchange Restrictions

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of
  Note

  	
   

  
	
  EXHIBIT B

  	
  Form of
  Guarantee

  	
   

  
				

 

iv

 

INDENTURE, dated as of December 21,
2004, among TEVECAP S.A., a sociedade anônima
organized under the laws of the Federative Republic of Brazil (the “Company”),
HSBC Bank USA, National Association as Trustee (the “Trustee”) and
Principal Paying Agent.

 

The Company agrees as
follows for the benefit of the other parties hereto and for the equal and
ratable benefit of the Holders of the Company’s 12.625% Senior Notes due 2009
(the “Notes”):

 

ARTICLE I

Definitions and Incorporation by Reference

 

SECTION 1.1.   Definitions.

 

“Additional Amounts”
shall have the meaning specified in Section 4.2 hereof.

 

“Affiliate” of any
specified Person means any other Person, directly or indirectly, controlling or
controlled by or under direct or indirect common control with such specified
Person. For the purposes of this definition, “control” when used with respect
to any Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting Notes,
by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

 

“Business Day” means each
day which is not a Legal Holiday.

 

“Capital Stock” of any
Person means any and all shares, interests, rights to purchase, warrants,
options, participations or other equivalents of or interests in (however
designated) equity of such Person, excluding any debt securities convertible
into such equity.

 

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

 

“Commission” or “SEC”
means the United States Securities and Exchange Commission, as from time to
time constituted, or if at any time after the execution of this Indenture such
Commission is not existing and performing the applicable duties now assigned to
it, then the body or bodies performing such duties at such time.

 

“Company Request” or “Company
Order” means a written request or order signed in the name of the Company by
any two of its Chief Executive Officer, Chief Operating Officer, Chief
Financial Officer, President or a Vice President or its Secretary or an
Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office”
means the office of the Trustee at which at any particular time its corporate
trust business shall be principally administered, which office at the date of
execution of this Indenture is located at 452 Fifth Avenue, New York, NY 10018,
Attention: Corporate Trust.

 

“Default” means any event
which is, or after notice or passage of time or both would be, an Event of
Default.

 

“Depository” means The
Depository Trust Company, its nominees and their respective successors.

 

1

 

“Determination Period”
means, as the context requires, the First Determination Period or the Second
Determination Period.

 

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

 

“Exchange Adjustment”
means:

 

(i)                                     with
respect to the First Redemption Date, an amount equal to:

 

(A)                              the
Installment Amount due on the First Redemption Date minus

 

(B)                                the
Installment Amount due on the First Redemption Date first converted into reais
using the Exchange Rate as of November 1, 2004, second multiplied by the
sum of (1) one plus (2) the Inflation Rate Increase for the First
Redemption Date and third converted into US dollars using the Exchange Rate as
of five Business Days prior to the First Redemption Date; and

 

(ii)                                  with
respect to the Second Redemption Date, an amount equal to:

 

(A)                              the
Installment Amount due on the Second Redemption Date (as adjusted, if
applicable, in accordance with Section 3.1(b)(1)(ii)) minus

 

(B)                                the
Installment Amount due on the Second Redemption Date (as adjusted, if applicable,
in accordance with Section 3.1(b)(1)(ii)) first converted into
reais using the Exchange Rate as of November 1, 2004, second multiplied by
the sum of (1) one plus (2) the Inflation Rate Increase for the
Second Redemption Date and third converted into US dollars using the Exchange
Rate as of five Business Days prior to the Second Redemption Date.

 

“Exchange Rate” means, as
of any date, the real/US dollar commercial rate, expressed as the amount of
reais per one US dollar, reported as of 7:30pm (São Paulo time) on such date by
the Banco Central do Brasil on SISBACEN Data System under transaction code PTAX-800
(“Consultas de Câmbio” or Exchange Rate Inquiry) Option 5 (“Cotações para
Contabilidade” or Rates for Accounting Purposes) market type L (corresponding
to US dollars traded in the foreign exchange market segment officially
denominated “Livre” and commonly known as “Commercial”), or such other
transaction code as shall have replaced the PTAX-800 transaction code from time
to time.

 

“Exchange Rate Increase”
means, with respect to the First Redemption Date or the Second Redemption Date,
the percentage increase, if any, in the Exchange Rate for the period from the
first day of the First Determination Period or the Second Determination Period
(as applicable) until the final day of the First Determination Period or the
Second Determination Period (as applicable).

 

“Excluded Debt” means
indebtedness due with respect to the Company’s 12.625% Senior Notes due 2004.

 

“First Determination
Period,” for exchange rate purposes, means the period from November 1,
2004 through and including the fifth Business Day prior to the First Redemption
Date.

 

“GAAP” means generally
accepted accounting principles in the United States of America as in effect
from time to time, including those 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
approved by a significant segment of the accounting profession. All ratios and

 

2

 

computations based
on GAAP contained in this Indenture shall be computed in conformity with GAAP
as in effect on the Issue Date.

 

“Guarantee” means any
obligation, contingent or otherwise, of any Person directly or indirectly
guaranteeing any indebtedness of any other Person and any obligation, direct or
indirect, contingent or otherwise, of such Person (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such indebtedness
or other obligation of any other Person (whether arising by virtue of
partnership arrangements, or by agreement to keep-well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (ii) entered into for purposes of
assuring in any other manner the obligee of such indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part); provided, however,
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. 
The term “Guarantee” used as a verb has a corresponding meaning.

 

“Holder” or “Noteholder”
means the Person in whose name a Note is registered on the Registrar’s books.

 

“IGP-M” means the Índice Geral de Preços do Mercado, as published by the Fundação Getúlio Vargas, or such other index as shall
replace the IGP-M from time to time.

 

“IGP-M Variation” for any
Determination Period means the product of the IGP-M for each month during such
Determination Period; it being understood that (i) for period from November 1,
2007 through and including the fifth Business Day prior to the First Redemption
Date, the IGP-M for such period shall be calculated on a pro rata
temporis basis using the IGP-M for the month of October 2007
and (ii) for the period from November 1, 2008 through and including
the fifth Business Day prior to the Second Redemption Date, the IGP-M for such
period shall be calculated on a pro rata temporis
basis using the IGP-M for the month of October 2008.

 

“Inflation Rate Increase”
means:

 

(i)                                     with
respect to the First Redemption Date, the product of the IGP-M Variation for
the First Determination Period multiplied by 1.12; and

 

(ii)                                  with
respect to the Second Redemption Date, the product of the IGP-M Variation for
the Second Determination Period multiplied by 1.15.

 

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

 

“Issue Date” means the
date on which the Notes are originally issued.

 

“Legal Holiday” has the
meaning ascribed in Section 10.8.

 

“Notes” means the Notes
issued under this Indenture.

 

“Notes Custodian” means
the custodian with respect to the Global Notes (as appointed by the
Depository), or any successor Person thereto and shall initially be the
Trustee.

 

“Officer” means the
President, Chief Executive Officer, Chief Operating Officer, Chief Financial
Officer, any Vice President, the Treasurer or the Secretary of the Company, as
applicable.

 

3

 

“Officers’ Certificate”
means a certificate signed by two Officers. 
One of the officers giving an Officers’ Certificate pursuant to Section 4.3
shall be the principal executive, financial or accounting officer of the
Company.

 

“Opinion of Counsel”
means a written opinion from legal counsel who is acceptable to the
Trustee.  The counsel may be an employee
of or counsel to the Company or the Trustee.

 

“Paying Agent” means any
person authorized by the Company to pay the principal, premium, if any,
interest (or Additional Amounts) on any Notes on behalf of the Company.  The Company may so authorize a principal
Paying Agent and one or more co-Paying Agents.

 

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

 

“Physical Note” means a
certificated Note registered in the name of the Holder thereof and issued in
accordance with this Indenture, in the form of Exhibit A, except that such
Note shall not bear the global note legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto.

 

“Predecessor Note” means,
with respect to any particular Note, every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for
the purposes of this definition, any Note authenticated and delivered under Section 2.3
hereof in exchange for a mutilated Note or in lieu of a lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the mutilated, lost,
destroyed or stolen Note.

 

“Principal” of a Note
means the principal of the Note plus the premium, if any, payable on the Note
which is due or overdue or is to become due at the relevant time.

 

“Redemption Date” means,
as the context requires, the First Redemption Date, the Second Redemption Date
or the Third Redemption Date.

 

“Second Determination
Period,” for exchange rate purposes, means the period from November 1,
2004 through and including the fifth Business Day prior to the Second
Redemption Date.

 

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

 

“Stated Maturity” means,
with respect to any Note, the date specified in such Note as the fixed date on
which the payment of principal of such Note is due and payable.

 

“Subsidiary” of any
Person means any corporation, association, partnership, joint venture or other
business entity (i) of which more than 50.0% of the total voting power of
shares of Capital Stock or other interests (including partnership interests)
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by (A) such Person, (B) such
Person and one or more Subsidiaries of such Person or (C) one or more
Subsidiaries of such Person and (ii) which is controlled by such Person.
Unless otherwise specified herein, each reference to a Subsidiary shall refer
to a Subsidiary of the Company.

 

4

 

“Subsidiary Guarantors”
means each Subsidiary of the Company that executes a Guarantee in the form
attached hereto as Exhibit B and that becomes a party hereto
pursuant to Section 9.1.

 

“Subsidiary Guarantee”
means the Guarantee of the Notes by the Subsidiary Guarantors set forth in Article IX,
a notation of which shall be executed by any Subsidiary Guarantor in the form
attached hereto as Exhibit B.

 

“Taxes” means any tax,
duty, levy, impost, assessment or other governmental charge (including
penalties, interest and any other liabilities related thereto) imposed or
levied by or on behalf of a Taxing Authority.

 

“Taxing Authority” means
the government of the Federative Republic of Brazil or any state of the
Federative Republic of Brazil or any political subdivision or territory or
possession of the government of the Federative Republic of Brazil or any
jurisdiction in which the Company or a Subsidiary Guarantor is engaged in
business for tax purposes or is resident for withholding tax purposes or, in
all such instances, any authority or agency therein or thereof having power to
tax.

 

“TIA” means the Trust
Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date
of this Indenture; provided, however, that in the Event the Trust Indenture Act of 1939
is amended after such dated, “TIA” means, to the extent required by any such
amendment the Trust Indenture Act of 1939 as so amended.

 

“Trustee” means HSBC Bank
USA, National Association until a successor replaces it and, thereafter, means
the successor.

 

“Trust Officer” means any
officer of the Trustee having direct responsibility for the administration of
this Indenture.

 

“US Dollar Equivalent”
means, with respect to any monetary amount in a currency other than the US
dollar at any one time for the determination thereof, the amount of US dollars
obtained by converting such foreign currency involved in such computation into
US dollars at the spot rate for the purchase of US dollars with the applicable
foreign currency as quoted by Reuters at approximately 11:00 a.m. (New
York time) on the date not more than two business days prior to such
determination.

 

“U.S. Government
Obligations” means direct obligations (or certificates representing an
ownership interest in such obligations) of the United States of America
(including any agency or instrumentality thereof) for the payment of which the
full faith and credit of the United States of America is pledged and which are
not callable or redeemable at the issuer’s option.

 

SECTION 1.2.   Other Definitions.

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Agent Member”

  	
   

  	
   

  	
  2.14(a)

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
   

  	
  5.1

  	
   

  
	
  “covenant defeasance option”

  	
   

  	
   

  	
  7.1(b)

  	
   

  
	
  “Custodian”

  	
   

  	
   

  	
  5.1

  	
   

  
	
  “Event of Default”

  	
   

  	
   

  	
  5.1

  	
   

  
	
  “First Redemption Date”

  	
   

  	
   

  	
  3.1

  	
   

  
	
  “Global Note”

  	
   

  	
   

  	
  2.1

  	
   

  
	
  “Installment Amount”

  	
   

  	
   

  	
  3.1

  	
   

  
	
  “legal defeasance option”

  	
   

  	
   

  	
  7.1(b)

  	
   

  
	
  “Note Register”

  	
   

  	
   

  	
  2.5

  	
   

  
	
  “Note Registrar”

  	
   

  	
   

  	
  2.5

  	
   

  
	
  “Obligations”

  	
   

  	
   

  	
  9.2

  	
   

  
	
  “Second Redemption Date”

  	
   

  	
   

  	
  3.1

  	
   

  
	
  “Third Redemption Date”

  	
   

  	
   

  	
  3.1

  	
   

  

 

5

 

SECTION 1.3.   Incorporation by Reference of Trust
Indenture Act.  This Indenture is subject
to the mandatory provisions of the TIA which are incorporated by reference in
and made a part of this Indenture.  The
following TIA terms have the following meanings:

 

“indenture Notes” means
the Notes.

 

“indenture Note holder”
means a Noteholder.

 

“indenture to be
qualified” means this Indenture.

 

“indenture trustee” or “institutional
trustee” means the Trustee.

 

“obligor” on the
indenture Notes means the Company and any other obligor on the indenture Notes.

 

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

 

SECTION 1.4.   Rules of Construction.  Unless the context otherwise requires:

 

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

 

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

 

(3)                                  “or”
is not exclusive;

 

(4)                                  “including”
means including without limitation;

 

(5)                                  words
in the singular include the plural and words in the plural include the
singular;

 

(6)                                  unsecured
indebtedness shall not be deemed to be subordinate or junior to secured
indebtedness merely by virtue of its nature as unsecured indebtedness;

 

(7)                                  the
principal amount of any noninterest bearing or other discount Note at any date
shall be the principal amount thereof that would be shown on a balance sheet of
the issuer dated such date prepared in accordance with GAAP; and

 

(8)                                  the
principal amount of any Preferred Stock shall be (i) the maximum liquidation
value of such Preferred Stock or (ii) the maximum mandatory redemption or
mandatory repurchase price with respect to such Preferred Stock, whichever is
greater.

 

6

 

ARTICLE II

The Notes

 

SECTION 2.1.   Title and Terms; Form.  The aggregate principal amount of Notes which
may be authenticated and delivered under this Indenture is unlimited.  The Notes shall be issued in the form of one
or more permanent global Notes in fully registered form without interest
coupons (each, a “Global Note”). 
Physical Notes shall be in substantially the form set forth in Exhibit A
hereof excluding the Global Notes Legend. 
The Notes may have notations, legends or endorsements required by law,
stock exchange rule or usage.

 

The Notes shall be known
and designated as the “12.625% Senior Notes due 2009” of the Company.  The final Stated Maturity of the Notes shall
be November 26, 2009, and the Notes shall bear interest at the rate of
12.625% per annum from the Issue Date or from the most recent interest payment
date to which interest has been paid, as the case may be, payable semi-annually
on May 26 and November 26, in each year, commencing on May 26,
2005 to holders of record at the close of business on the May 1 or November 1
immediately preceding the interest payment date, until the principal thereof is
paid or duly provided for.  Interest on
any overdue principal, interest (to the extent lawful) or premium, if any,
shall be payable on demand.

 

The principal of,
premium, if any, and interest (and any Additional Amounts) on Global Notes
shall be payable to the Depository or its nominee, as the case may be, as the
sole registered owner and the sole holder of the Global Notes represented
thereby.  The principal of, premium, if
any, and interest on Physical Notes shall be payable, and the Notes may be
exchanged or transferred, at the office or agency of the Company maintained for
such purpose in the City of New York (which initially shall be the corporate
trust office of the Trustee in the City of New York), or at such other office
or agency of the Company as may be maintained for such purpose; provided, however, that
at the option of the Company interest may be paid by check mailed to the
addresses of the persons entitled thereto as such addresses shall appear on the
Note Register.

 

SECTION 2.2.   Denominations.  The Notes shall be issuable only in fully
registered form without coupons and only in denominations of US$1.00 and any
integral multiple thereof.

 

SECTION 2.3.   Execution, Authentication, Delivery and
Dating.  The Notes shall be executed
on behalf of the Company by the manual or facsimile signature of any two of its
Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, its
President, one of its Executive Vice Presidents, its Secretary, Assistant
Secretary or General Counsel.

 

Notes bearing the manual
or facsimile signature of individuals who were at any time the proper officers
of the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and
delivery of such Notes or did not hold such offices on the date of such Notes.

 

At any time and from time
to time upon or after the execution and delivery of this Indenture, the Company
may deliver Notes executed by the Company to the Trustee for authentication,
together with a Company Order for authentication, and delivery of such Notes as
provided in this Indenture and not otherwise.

 

No Note shall be entitled
to any benefit under this Indenture or be valid or obligatory for any purpose
unless there appears on such Note a certificate of authentication substantially
in the form provided for in Exhibit A hereto duly executed by the Trustee
by manual signature of an authorized

 

7

 

representative,
and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder.

 

In case the Company shall
be consolidated, amalgamated, merged with or into any other Person or shall
convey, transfer or lease substantially all of its properties and assets to any
Person, and the successor Person resulting from such consolidation,
amalgamation or surviving such merger, or into which the Company shall have
been merged, or the Person which shall have received a conveyance, transfer or
lease as aforesaid, any of the Notes authenticated or delivered prior to such
consolidation, amalgamation, merger, conveyance, transfer or lease may, from
time to time, at the request of the successor Person, be exchanged for other
Notes executed in the name of the successor Person with such changes in
terminology and form as may be appropriate, but otherwise in substance of the
same tenor as the Notes surrendered for such exchange and the same principal
amount; and the Trustee, upon Company Order of the successor Person, shall
authenticate and deliver replacement Notes as specified in such request for the
purpose of such exchange.  If such Notes
shall at any time be authenticated and delivered in any new name of a successor
Person pursuant to this Section 2.3 in exchange or substitution for
or upon registration of transfer of any Notes, such successor Person, at the
option of the Holders but without expense to them, shall provide for the
exchange of all Notes at the time Outstanding for Notes authenticated and
delivered in such new name.

 

The Trustee may appoint
an authenticating agent to authenticate Notes on behalf of the Trustee if
directed to do so by a Company Order. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by each such agent. 
An authenticating agent has the same rights as any Note Registrar or
Paying Agent to deal with the Company and its Affiliates.

 

If any of the Notes are
to be issued in the form of one or more Global Notes, then the Company shall
execute and the Trustee shall authenticate and deliver one or more Global Notes
that (i) shall be in minimum denominations of US$1.00 or integral
multiples thereof, (ii) shall be registered in the name of the Depository
for such Global Note or Notes or the nominee of such Depository, (iii) shall
be delivered to the Trustee as Notes Custodian for such Depository and (iv) shall
bear the Global Notes legend in substantially the form set forth in Exhibit A.

 

The Trustee shall not be
required to authenticate any Notes if the issue of such Notes pursuant to this
Indenture will affect the Trustee’s own rights, duties or immunities under the
Notes and this Indenture or otherwise in a manner which is not reasonably
acceptable to the Trustee.

 

SECTION 2.4.   Temporary Notes.  Pending the preparation of definitive Notes,
the Company may execute, and upon Company Order the Trustee shall authenticate
and deliver, temporary Notes.  Temporary
Notes may be printed, lithographed, typewritten, mimeographed or otherwise
produced, in any authorized denomination, substantially of the tenor of the
definitive Notes in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the Officers
executing such Notes may determine, as conclusively evidenced by their
execution of such Notes.

 

If temporary Notes are
issued, the Company will cause definitive Notes to be prepared without
unreasonable delay but in no event later than the Issue Date of the Notes.  After the preparation of definitive Notes,
the temporary Notes shall be exchangeable for definitive Notes upon surrender
of the temporary Notes at the office or agency of the Company, without charge
to the Holder.  Upon surrender for
cancellation of any one or more temporary Notes the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor the same
principal amount of definitive Notes of authorized denominations.  Until so exchanged, the temporary Notes shall
in all respects be entitled to the same benefits under this Indenture as
definitive Notes.

 

8

 

SECTION 2.5.   Registration, Registration of Transfer
and Exchange.  The Company shall
cause to be kept at the Corporate Trust Office of the Trustee a register (the “Note
Register”) in which, subject to such reasonable regulations as the Note
Registrar may prescribe, the Company shall provide for the registration of
Notes and of transfers of Notes.  The
Trustee is hereby initially appointed “Note Registrar” for the purpose of
registering Notes and transfers of Notes as herein provided.

 

Upon surrender for
registration of transfer of any Note at the office or agency of the Company,
the Company shall, subject to the terms of this Indenture, execute, and the
Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more Notes of any authorized denomination or
denominations, of the same aggregate principal amount.

 

At the option of the
Holder, subject to the terms of this Indenture, Notes in certificated form may
be exchanged for other Notes of any authorized denomination or denominations,
of the same aggregate principal amount, upon surrender of the Notes to be
exchanged at such office or agency. 
Whenever any Notes are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Notes which the
Holder making the exchange is entitled to receive.

 

Every Note presented or
surrendered for registration of transfer, or for exchange or redemption shall
(if so required by the Company or the Note Registrar) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Note Registrar, duly executed by the Holder thereof or his
attorney duly authorized in writing.

 

No service charge shall
be made to a Holder for any registration of transfer or exchange or redemption
of Notes, but the Company or the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes, other than
exchanges pursuant to Section 2.3, 2.4 and 3.6 not
involving any transfer.

 

The Company shall not be
required (a) to issue, register the transfer of or exchange any Note
during a period beginning at the opening of business 15 days before the mailing
of a notice of redemption of the Notes selected for redemption under Section 3.2
and ending at the close of business on the day of such mailing, or (b) to
register the transfer of or exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of Notes 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 a
book-entry system maintained by the Holder of such Global Note (or its agent),
and that ownership of a beneficial interest in the Note shall be required to be
reflected in a book-entry.

 

When Notes are presented
to the Note Registrar with a request to register the transfer or to exchange
them for an equal principal amount of Notes of other authorized denominations,
the Note Registrar shall register the transfer or make the exchange as
requested if its requirements for such transactions are met.  To permit registrations of transfers and
exchanges, the Company shall execute and the Trustee shall authenticate Notes
at the Note Registrar’s request.

 

SECTION 2.6.   Mutilated, Destroyed, Lost and Stolen
Notes.  If (a) any mutilated
Note is surrendered to the Trustee, or (b) the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any
Note, and there is delivered to the Company, each Subsidiary Guarantor and the
Trustee, such Note or indemnity, in each case, as may be required by them to
save each of them harmless from any loss which any of them may suffer if a Note
is replaced, then, in the absence of notice to the Company, any Subsidiary
Guarantor or the Trustee that such Note has been acquired by a

 

9

 

protected
purchaser, the Company shall execute and upon a Company Order the Trustee shall
authenticate and deliver, in exchange for any such mutilated Note or in lieu of
any such destroyed, lost or stolen Note, a replacement Note of the same tenor
and principal amount, bearing a number not contemporaneously outstanding.

 

Upon the issuance of any
replacement Notes under this Section, the Company may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.

 

Every replacement Note
issued pursuant to this Section in lieu of any destroyed, lost or stolen
Note shall constitute an original additional contractual obligation of the
Company and each Subsidiary Guarantor, whether or not the destroyed, lost or
stolen Note shall be at any time enforceable by anyone, and shall be entitled
to all benefits of this Indenture equally and proportionately with any and all
other Notes duly issued hereunder.

 

The provisions of this Section are
exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes.

 

SECTION 2.7.   Payment of Interest; Interest Rights
Preserved.  Interest relating to the
Notes, on any Note (and any Additional Amounts payable in respect thereof)
which is payable, and is punctually paid or duly provided for, on any interest
payment date shall be paid to the person in whose name that Note (or one or
more Predecessor Notes) is registered at the close of business on the regular
record date for such interest.

 

Any interest on any Note (and any Additional Amounts
payable in respect thereof) which is payable, but is not punctually paid or
duly provided for, on any interest payment date and interest (and any
Additional Amounts payable in respect thereof) on such defaulted interest at
the then applicable interest rate borne by the Notes, to the extent lawful
(such defaulted interest and interest thereon herein collectively called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder on the regular
record date; and such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in subsection (a) or (b) below:

 

(a)                                  The
Company may elect to make payment of any Defaulted Interest to the persons in
whose names the Notes (or their respective Predecessor Notes) are registered at
the close of business on a special record date for the payment of such Defaulted
Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the persons entitled to such Defaulted Interest as provided in this
paragraph (a).  Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest
which shall be not more than 15 days and not less than 10 days prior to the
date of the proposed payment and not less than 10 days after the receipt by the
Trustee of the notice of the proposed payment. 
The Trustee shall promptly notify the Company in writing of such special
record date.  In the name and at the
expense of the Company, the Trustee shall cause notice of the proposed payment
of such Defaulted Interest and the special record date therefor to be mailed,
first-class postage prepaid, to each Holder at its address as it appears in the
Note Register, not less than 10 days prior to such special record date.

 

10

 

Notice of the
proposed payment of such Defaulted Interest and the special record date
therefor having been so mailed, such Defaulted Interest shall be paid to the
persons in whose names the Notes (or their respective Predecessor Notes) are
registered on such special record date and shall no longer be payable pursuant
to the following subsection (b).

 

(b)                                 The
Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any Notes exchange on which the Notes
may be listed, and upon such notice as may be required by such exchange, if,
after written notice given by the Company to the Trustee of the proposed
payment pursuant to this subsection (b), such payment shall be deemed
practicable by the Trustee.

 

Subject to the foregoing
provisions of this Section, each Note delivered under this Indenture upon
registration of transfer of or in exchange for or in lieu of any other Note
shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Note.

 

SECTION 2.8.   Paying Agents; Discharge of Payment
Obligations; Indemnity of Holders.  (a) 
The Company may from time to time appoint one or more Paying Agents and may
designate a Paying Agent as Principal Paying Agent under this Indenture and the
Notes.  By its execution and delivery of
this Indenture, the Company hereby initially designates and appoints HSBC Bank
USA, National Association as Principal Paying Agent.  Subject to Section 2.15, the
Company may act as Paying Agent.

 

(b)                                 Unless
the Company shall be acting as Paying Agent as provided in Section 2.15,
the Company shall, by 10:00 a.m. New York time, no later than one Business
Day prior to each interest payment date or principal payment date on any Notes
(whether on maturity, redemption or otherwise) (each, a “Payment Date”),
deposit with the Principal Paying Agent in immediately available funds a sum
sufficient to pay such principal, any premium, and interest when so becoming
due (including any Additional Amounts). 
The Company shall cause the bank through which such payment is to be
made to supply to the Principal Paying Agent by 10:00 a.m. (New York time)
two Business Days prior to the due date for any such payment an irrevocable
confirmation (by tested telex or authenticated SWIFT MT 100 Message) of its
intention to make such payment.  The
Principal Paying Agent shall arrange with all Paying Agents for the payment,
from funds furnished by the Company or any Subsidiary Guarantor to the Trustee
pursuant to this Indenture, of the principal, and premium, if any, and interest
(including Additional Amounts, if any) on the Notes and of the compensation of
such Paying Agents for their services as such. 
All Paying Agents will hold in trust, for the benefit of Holders or the
Trustee, all money held by such Paying Agent for the payment of principal, or
premium if any, of or interest on the Notes and shall notify the Trustee of any
default by the Company in making any such payment.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee and to account for any funds
disbursed by it.  Upon complying with
this Section 2.8 and the applicable provisions of Section 2.15,
the Paying Agents shall have no further liability for the money delivered to
the Trustee.

 

(c)                                  Any
payment to be made in respect of the Notes or Subsidiary Guarantees by the
Company or any Subsidiary Guarantor to or to the order of a Paying Agent shall
be in satisfaction pro  tanto of the obligations of the Company
under the Notes.  The Company shall
indemnify the Holders against any failure on the part of any Paying Agent to
pay any sum due in respect of the Notes and shall pay such sum to the Trustee
on demand.  This indemnity constitutes a
separate and independent obligation from the other obligations of the Company
under the Notes, shall give rise to a separate and independent cause of action,
will apply irrespective of any waiver granted by the Trustee and/or any Holder
and shall continue in full force and effect despite any judgment, order, claim,
or proof for a liquidated amount in respect of any sum due under the Indenture,
the Notes or any judgment or order.

 

11

 

SECTION 2.9.   Persons Deemed Owners.  Prior to and at the time of due presentment
for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the person in whose name any Note is
registered in the Note Register as the owner of such Note for the purpose of
receiving payment of principal of, premium, if any, and (subject to Section 2.7)
interest on such Note and for all other purposes whatsoever, whether or not
such Note shall be overdue, and neither the Company, the Trustee nor any agent
of the Company or the Trustee shall be affected by notice to the contrary.

 

SECTION 2.10.   Cancellation.  All Notes surrendered for payment, redemption,
registration of transfer or exchange shall be delivered to the Trustee and, if
not already cancelled, shall be promptly cancelled by it.  The Company and any Subsidiary Guarantor may
at any time deliver to the Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Company or such Subsidiary
Guarantor may have acquired in any manner whatsoever, and all Notes so
delivered shall be promptly cancelled by the Trustee.  No Notes shall be authenticated in lieu of or
in exchange for any Notes cancelled as provided in this Section 2.10,
except as expressly permitted by this Indenture.  All cancelled Notes held by the Trustee shall
be destroyed in accordance with its customary procedures and certification of
their destruction delivered to the Company unless by a Company Order the
Company shall direct that the cancelled Notes be returned to it.  The Trustee shall provide the Company a list
of all Notes that have been cancelled from time to time as requested by the
Company in writing.

 

SECTION 2.11.   Computation of Interest.  Interest on the Notes shall be computed on
the basis of a 360-day year of twelve 30-day months.

 

SECTION 2.12.   Legal Holidays.  In any case where any interest payment date,
Redemption Date, date established for the payment of Defaulted Interest or
Stated Maturity of any Note shall not be a Business Day, then (notwithstanding
any other provision of this Indenture or of the Notes) payment of principal,
premium, if any, or interest need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made on
the interest payment date, Redemption Date, date established for the payment of
Defaulted Interest or at the Stated Maturity, as the case may be, and no interest
shall accrue with respect to such payment for the period from and after such
interest payment date, Redemption Date, date established for the payment of
Defaulted Interest or Stated Maturity, as the case may be, to the next
succeeding Business Day.

 

SECTION 2.13.   CUSIP and CINS Numbers.  The Company in issuing the Notes may use a “CUSIP”
and/or a “CINS” number (if then generally in use), and if so, the Trustee may
use the CUSIP and CINS numbers in notices of redemption or exchange as a
convenience to Holders; provided, however, that any such notice may state that no
representation is made as to the correctness or accuracy of the CUSIP or CINS
number printed in the notice or on the Notes, and that reliance may be placed
only on the other identification numbers printed on the Notes.  All Notes shall bear identical CUSIP
numbers.  The Company shall promptly
notify the Trustee in writing of any change in the CUSIP, Common Code or CINS
number.

 

SECTION 2.14.   Book-Entry Provisions for Global Notes.  (a)  Each Global Note shall (i) be
registered in the name of the Depository for such Global Note or the nominee of
such Depository, (ii) be delivered to the Trustee as Notes Custodian for
such Depository and (iii) bear the Global Notes legend as set forth in Exhibit A.

 

Members of, or
participants in, the Depository (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Note held on their behalf by
the Depository, or the Trustee as its custodian, or under such Global Note, and
the Depository may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the absolute owner of such Global Note for

 

12

 

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 Depository or shall impair, as
between the Depository and its Agent Members, the operation of customary
practices governing the exercise of the rights of a holder of any Note.

 

(b)                                 Transfers
of a Global Note shall be limited to transfers of such Global Note in whole,
but not in part, to the Depository, its successors or their respective
nominees.  Interests of beneficial owners
in a Global Note may be transferred in accordance with the rules and
procedures of the Depository and the provisions of Section 2.14.  Beneficial owners may obtain Physical Notes
in exchange for their beneficial interests in a Global Note upon request in
accordance with the Depository’s and the Note Registrar’s procedures at any
time.  In addition, Physical Notes shall
be issued in exchange for a Global Note if (i) the Depository notifies the
Company that it is unwilling or unable to continue as Depository for a Global
Note or the Depository ceases to be a “clearing agency” registered under the
Exchange Act and, in each case, a successor depository is not appointed by the
Company within 90 days of such notice or such cessation, as the case may be or (ii) an
Event of Default has occurred and is continuing with respect to any Notes
represented by a Global Note and Holders who hold more than 25% in aggregate
principal amount of the Notes at the time outstanding represented by such
Global Note advise the Trustee through the Depository in writing that the
continuation of a book-entry system through the Depository (or a successor
thereto) with respect to such Global Note is no longer required and the Note
Registrar has received a request from the Depository to issue Physical Notes.

 

(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 the other Global Note will,
upon transfer, cease to be an interest in such Global Note and become an
interest in the other Global Note and, accordingly, will thereafter be subject
to all transfer restrictions, if any, and other procedures applicable to
beneficial interests in such other Global Note for as long as it remains such
an interest.

 

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

 

(e)                                  In
connection with the transfer of an entire Global Note to beneficial owners
thereof pursuant to subsection (b) of this Section, such Global Note
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 Depository in exchange for its beneficial
interest in such Global Note, an equal aggregate principal amount of Physical
Notes of authorized denominations.

 

(f)                                    The
registered 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.   Money for Note Payments To be Held in
Trust.  If the Company shall at any
time act as its own Paying Agent, it shall, on or before each due date of the
principal of, premium, if any, or interest on, any of the Notes, segregate and
hold in trust for the benefit of the Holders entitled thereto a sum sufficient
to pay the principal, premium, if any, or interest so becoming due until such
sums shall be paid to such persons or otherwise disposed of as herein provided,
and shall promptly notify the Trustee of its action or failure so to act.

 

13

 

If the Company is not
acting as Paying Agent, the Company shall, on the Business Day prior to each
due date of the principal of, premium, if any, or interest on, any Notes,
deposit with a Paying Agent a sum in immediately available funds sufficient to
pay the principal, premium, if any, or interest so becoming due in the manner
set forth in Section 2.8, such sum to be held in trust for the
benefit of the Holders entitled to such principal, premium or interest, and
(unless such Paying Agent is the Trustee) the Company shall promptly notify the
Trustee of such action or any failure so to act.

 

If the Company is not
acting as Paying Agent, the Company shall cause each Paying Agent other than
the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this Section 2.15,
that such Paying Agent shall:

 

(a)                                  hold
all sums held by it for the payment of the principal of, premium, if any, or
interest on Notes in trust for the benefit of the Holders entitled thereto
until such sums shall be paid to such Holders or otherwise disposed of as
herein provided;

 

(b)                                 give
the Trustee notice of any Default by the Company or any Subsidiary Guarantors
(or any other obligor upon the Notes) in the making of any payment of principal
of, premium, if any, or interest on the Notes;

 

(c)                                  at
any time during the continuance of any such Default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent; and

 

(d)                                 acknowledge,
accept and agree to comply in all aspects with the provisions of this Indenture
relating to their duties, rights and liabilities of such Paying Agent.

 

The Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or by Company Order direct any Paying
Agent to pay, to the Trustee all sums held in trust by the Company or such
Paying Agent, such sums to be held by the Trustee upon the same trusts as those
upon which sums were held by the Company or such Paying Agent; and, upon such
payment by any Paying Agent to the Trustee, such Paying Agent shall be released
from all further liability with respect to such money.

 

Any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium, if any, or interest on any Note and
remaining unclaimed for two years after such principal, premium, if any, or
interest has become due and payable shall be paid to the Company upon receipt
of a Company Request therefor, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in The
New York Times and The Wall Street Journal (national edition), notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining shall be repaid to the Company.

 

SECTION 2.16.   Noteholder 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 Noteholders and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Note Registrar, the
Company shall furnish to the Trustee, in writing at least seven Business Days
before each interest payment date and at

 

14

 

such
other times as the Trustee may request in writing, a list in such form and as
of such date as the Trustee may reasonably require of the names and addresses
of Noteholders and the Company shall otherwise comply with TIA § 312(a).

 

SECTION 2.17.   Outstanding Notes.  Notes outstanding at any time are all Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation and those described in this Section as not
outstanding.  A Note does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Note.

 

If a Note is replaced
pursuant to Section 2.6, it ceases to be outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced
Note is held by a protected purchaser.

 

If the Paying Agent
segregates and holds in trust, in accordance with this Indenture, on a
redemption date or maturity date money sufficient to pay all principal and
interest payable on that date with respect to the Notes (or portions thereof)
to be redeemed or maturing, as the case may be, and the Paying Agent is not
prohibited from paying such money to the Noteholders on that date pursuant to
the terms of this Indenture, then on and after that date such Notes (or
portions thereof) cease to be outstanding and interest on them ceases to
accrue.

 

ARTICLE III

Redemption

 

SECTION 3.1.   Scheduled Redemption.  (a)  Amortization.
Unless previously redeemed, or purchased or cancelled, each Note will be
redeemed (subject as provided in subsection (b) below, in three equal
installments on the dates and in the amounts set out below (each an “Installment
Amount”):

 

	
  Scheduled
  Redemption Date

  	
   

  	
  Installment Amount

  
	
   

  	
   

  	
   

  
	
  November 26, 2007 (the “First Redemption Date”)

  	
   

  	
  33.33% of aggregate principal amount

  
	
  November 26, 2008 (the “Second Redemption
  Date”)

  	
   

  	
  33.33% of aggregate principal amount

  
	
  November 26, 2009 (the “Third Redemption Date”)

  	
   

  	
  33.34% of aggregate principal amount

  

 

(b)                                 Adustment of Installment Amounts.

 

(1)                                  If
the Exchange Rate Increase with respect to the First Redemption Date is greater
than the Inflation Rate Increase with respect to the First Redemption Date,
then:

 

(i)                                     the
Installment Amount due on the First Redemption Date shall be reduced by the
amount of the Exchange Adjustment applicable to the First Redemption Date;

 

(ii)                                  the
Installment Amount due on the Second Redemption Date shall be increased by the
amount which is equal to 50% of the amount of the Exchange Adjustment
applicable to the First Redemption Date; and

 

(iii)                               the
Installment Amount due on the Third Redemption Date shall be increased by the
amount which is equal to 50% of the amount of the Exchange Adjustment
applicable to the First Redemption Date.

 

(2)                                  If
the Exchange Rate Increase with respect to the Second Redemption Date is
greater than the Inflation Rate Increase with respect to the Second Redemption
Date, then:

 

15

 

(i)                                     the
Installment Amount due on the Second Redemption Date (as adjusted, if
applicable, in accordance with Section 3.1(b)(1)(ii) above)
shall be reduced by the amount of the Exchange Adjustment applicable to the
Second Redemption Date; and

 

(ii)                                  the
Installment Amount due on the Third Redemption Date (as adjusted, if
applicable, in accordance with Section 3.1(b)(1)(iii) above)
shall be increased by the amount of the Exchange Adjustment applicable to the
Second Redemption Date.

 

(3)                                  If
the Installment Amount due on any Redemption Date is reduced as set forth in Sections
3.1(b)(1) or (2) above, then interest shall continue to
accrue on the amount of such reduction in accordance with this Indenture until
paid in full.

 

(c)                                  Optional Redemption. 
On any of the First Redemption Date, the Second Redemption Date, or the
Third Redemption Date, the Company may redeem all of the Notes, at a redemption
price of 100% of the outstanding principal amount of the Notes so redeemed,
plus accrued and unpaid interest, if any, to the Redemption Date (subject to
the right of holders of record on the relevant record date to receive interest
due on the relevant interest payment date).

 

SECTION 3.2.   Optional Redemption.  On any of the First Redemption Date, the
Second Redemption Date, or the Third Redemption Date, the Company may redeem
all of the Notes, at a redemption price of 100% of the outstanding principal
amount, plus accrued and unpaid interest, if any, to the Redemption Date
(subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

 

SECTION 3.3.   Notices to Trustee.  If the Company elects to redeem Notes
pursuant to Section 3.1 or 3.2, it shall notify the Trustee
in writing of the redemption date and the principal amount of Notes to be
redeemed.

 

The Company shall give
each notice to the Trustee provided for in this Section at least 60 days
before the redemption date unless the Trustee consents to a shorter
period.  Such notice shall be accompanied
by an Officers’ Certificate from the Company to the effect that such redemption
will comply with the conditions herein. 
If fewer than all the Notes are to be redeemed, the record date relating
to such redemption shall be selected by the Company and set forth in the
related notice given to the Trustee, which record date shall be not less than
15 days after the date of such notice.

 

SECTION 3.4.   Selection of Notes To Be Redeemed.  If fewer than all the Notes are to be
redeemed, the Trustee shall select the Notes to be redeemed pro rata or by lot
or by a method that complies with applicable legal and Notes exchange
requirements, if any, and that the Trustee considers fair and appropriate and
in accordance with methods generally used at the time of selection by
fiduciaries in similar circumstances. 
The Trustee shall make the selection from outstanding Notes not previously
called for redemption.  The Trustee may
select for redemption portions of the principal of Notes that have
denominations larger than US$1.00.  Notes
and portions of them the Trustee selects shall be in amounts of US$1.00 or a
whole multiple of US$1.00.  Provisions of
this Indenture that apply to Notes called for redemption also apply to portions
of Notes called for redemption.  The
Trustee shall notify the Company promptly of the Notes or portions of Notes to
be redeemed.

 

SECTION 3.5.   Notice of Redemption.  At least 30 days but not more than 60 days
before a date for redemption of Notes, the Company shall mail a notice of
redemption by first-class mail to each Holder of Notes to be redeemed.  A copy of such notice shall be delivered to
the Trustee.

 

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

 

16

 

(1)                                  the
redemption date;

 

(2)                                  the
redemption price;

 

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

 

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

 

(5)                                  if
fewer than all the outstanding Notes are to be redeemed, the identification and
principal amounts of the particular Notes to be redeemed;

 

(6)                                  that,
unless the Company defaults in making such redemption payment or the Paying
Agent is prohibited from making such payment pursuant to the terms of this
Indenture, interest on Notes (or portion thereof) called for redemption ceases
to accrue on and after the redemption date;

 

(7)                                  the
CUSIP number, if any, printed on the Notes being redeemed;

 

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

 

(9)                                  the
paragraph of the Notes pursuant to which the Notes are being redeemed.

 

At the Company’s request,
the Trustee shall give the notice of redemption in the Company’s name and at
the Company’s expense.  In such event,
the Company shall provide the Trustee with the information required by this
Section.

 

SECTION 3.6.   Effect of Notice of Redemption.  Once notice of redemption is mailed, Notes
called for redemption become due and payable on the redemption date and at the
redemption price stated in the notice. 
Upon surrender to the Paying Agent, such Notes shall be paid at the
redemption price stated in the notice, plus accrued interest to the redemption
date; provided that if the redemption date is
after a regular record date and on or prior to the interest payment date, the
accrued interest shall be payable to the Noteholder of the redeemed Notes
registered on the relevant record date. 
Failure to give notice or any defect in the notice to any Holder shall
not affect the validity of the notice to any other Holder.

 

SECTION 3.7.   Deposit of Redemption Price.  By at least 10:00 a.m. (New York City
time) on the Business Day prior to the date on which any principal of or
interest on any Note is due and payable, the Company shall deposit with the
Paying Agent (or, if the Company or a Subsidiary is the Paying Agent, shall
segregate and hold in trust) money sufficient to pay the redemption price of
and accrued interest on all Notes to be redeemed on that date other than Notes
or portions of Notes called for redemption which are owned by the Company or a
Subsidiary and have been delivered by the Company or such Subsidiary to the
Trustee for cancellation.

 

If the Company complies
with the preceding paragraph, then, unless the Company defaults in the payment
of such redemption price, interest on the Notes to be redeemed will cease to
accrue on and after the applicable redemption date, whether or not such Notes
are presented for payment.

 

17

 

SECTION 3.8.   Notes Redeemed in Part.  Upon surrender of a Note that is redeemed in
part, the Company shall execute and the Trustee shall authenticate for the
Holder (at the Company’s expense) a Note equal in a principal amount to the
unredeemed portion of the Note surrendered.

 

ARTICLE IV

Covenants

 

SECTION 4.1.   Payment of Notes.  The Company shall promptly pay the principal
of and interest and any Additional Amounts payable in respect thereof on the
Notes on the dates and in the manner provided in the Notes and in this
Indenture.  Principal and interest shall
be considered paid on the date due if on such date the Trustee or the Paying
Agent holds in accordance with this Indenture money sufficient to pay all
principal, premium, if any, and interest then due (and any Additional Amounts)
and the Trustee or the Paying Agent, as the case may be, is not prohibited from
paying such money to the Noteholders on that date pursuant to the terms of this
Indenture.

 

The Company shall pay
interest on overdue principal at the rate specified therefor in the Notes, and
it shall pay interest on overdue installments of interest at the same rate to
the extent lawful.

 

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 of America from principal or interest payments
hereunder.

 

SECTION 4.2.   Payment of Additional Amounts. 
(a)  All payments by the Company or any Subsidiary
Guarantor under or in respect of the Notes or any Subsidiary Guarantee will be
made free and clear of, and without withholding or deduction for or on account
of, any present or future taxes, duties, assessments, fees or other
governmental charges of whatever nature (and any fines, penalties or interest
related thereto) (collectively, “Taxes”) imposed or levied by or on behalf of
the Federative Republic of Brazil or the successor jurisdiction (if any) of any
paying agent or, in each case, any political subdivision thereof or taxing
authority therein (each, a “Taxing Jurisdiction”), unless such withholding or
deduction is required by law.  In that
event, the Company or any Subsidiary Guarantor, as the case may be, shall pay
to each holder or Notes such additional amounts (“Additional Amounts”) duly
evidenced as may be necessary in order that every net payment made by the
Company or such Subsidiary Guarantor, as the case may be, on each Note or
Subsidiary Guarantee after deduction or withholding for or on account of any
Tax imposed upon or as a result of such payment by the Taxing Jurisdiction will
not be less than the amount then due and payable on such Note or Subsidiary
Guarantee.  The foregoing obligation to
pay Additional Amounts, however, will not apply to:  (i) any Tax which would not have been
imposed, withheld or otherwise deducted but for the existence of any present or
former connection between such Holder (or between a fiduciary, settlor,
beneficiary, member or shareholder of such Holder, if such Holder is an estate,
a trust, a partnership or a corporation), on the one hand, and the Taxing
Jurisdiction, on the other hand, including, without limitation, such Holder (or
such fiduciary, settlor, beneficiary, member or shareholder) being or having
been a citizen or resident thereof or being or having been engaged in a trade
or business or present therein or having, or having had, a permanent
establishment therein, or any other connection of any kind, other than the mere
receipt of such payment or the ownership or holding of such Note; (ii) any
Tax which would not have been imposed, withheld or otherwise deducted but for
the presentation by such Holder for payment (where presentation is required) on
a date more than 30 days after the date on which such payment became due and
payable or the date on which payment thereof is duly provided for, whichever
occurs later; (iii) the extent that the Taxes would not have been imposed,
withheld or otherwise deducted but for the failure of such Holder to comply
with any certification, identification or other reporting requirements concerning
the nationality, residence, identity or connection with the Taxing Jurisdiction
of the Holder if (a) such compliance is required or imposed by statute,

 

18

 

regulation,
administrative practice or treaty or other applicable law of such Taxing
Jurisdiction as a precondition to exemption from all or a part of such Tax and (b) at
least 30 days prior to the date on which the Companies apply this
clause (iii), the Company or Subsidiary Guarantor shall have notified such
Holder that some or all Holders shall be required to comply with such
requirement; (iv) a Tax imposed, withheld or otherwise deducted on a
payment to an individual and required to be made pursuant to European Council
Directive 2003/48/EC or any other Directive implementing the conclusions of the
ECOFIN Council Meeting of 26-27 November 2000 on the taxation of savings
income or any law complying with, or introduced in order to conform to, such
Directive; (v) any Tax imposed, withheld or otherwise deducted on a Note
or Subsidiary Guarantee presented for payment by or on behalf of a Holder who
would have been able to avoid such withholding or deduction by presenting the
relevant Note or Subsidiary Guarantee to another Paying Agent; (vi) any
estate, inheritance, gift, sales, transfer or personal property tax or similar
Tax or any Tax payable other than by withholding on a payment on the Notes; or (vii) any
combination of items (i) through (vi) above.

 

(b)                                 The
Company and each Subsidiary Guarantor shall also pay any duly evidenced present
or future stamp, court or documentary taxes or any other excise taxes, charges
or similar levies which arise in any jurisdiction from the execution, delivery,
registration or the making of payments in respect of the Notes or Subsidiary
Guarantees, as applicable, excluding any such taxes, charges or similar levies
imposed by any jurisdiction outside of any Taxing Jurisdiction other than those
resulting from, or required to be paid in connection with, the enforcement of the
Notes or Subsidiary Guarantees following the occurrence of any Default.

 

No Additional Amounts
shall be paid with respect to a payment on a Note or Subsidiary Guarantee to a
Holder that is a fiduciary or partnership or any person other than the sole beneficial
owner of such payment to the extent a beneficiary or settlor with respect to
such fiduciary or a member of such partnership or beneficial owner would not
have been entitled to receive payment of the Additional Amounts had the
beneficiary, settlor, member or beneficial owner been the Holder of the Note or
Subsidiary Guarantee.

 

The Company and each
Subsidiary Guarantor shall provide the Trustee with the official acknowledgment
of the relevant taxing authority (or, if such acknowledgment is not available,
a certified copy thereof, if available) evidencing the payment of taxes in any
Taxing Jurisdiction in respect of which the Company or such Subsidiary
Guarantor has paid any Additional Amounts. Copies of such documentation shall
be made available to the Paying Agents upon request therefor.

 

(c)                                  If
the Company or any Subsidiary Guarantor shall be obligated to pay Additional
Amounts with respect to any interest payment under the Notes or a Subsidiary
Guarantee, the Company or such Subsidiary Guarantor, as applicable, will:  (i) at least 10 Business Days prior to
the first interest payment date (and at least 10 Business Days prior to each
succeeding interest payment date or any redemption date or the maturity date if
there has been any change with respect to the matters set forth in the
below-mentioned officer’s certificate or if the Company or such Subsidiary
Guarantor has not previously delivered such certificate), deliver to the
Trustee and each Paying Agent an Officer’s Certificate (a) specifying the
amount, if any, of taxes described in this Section 4.2 imposed or
levied by or on behalf of any Taxing Jurisdiction (the “Relevant Withholding
Taxes”) required to be deducted or withheld on the payment of principal of or
interest on the Notes or Subsidiary Guarantees to holders and the Additional
Amounts, if any, due to Holders in connection with such payment, and (b) certifying
that the Company or such Subsidiary Guarantor will pay such deduction or
withholding; (ii) prior to the due date for the payment thereof, pay any
such Relevant Withholding Taxes, together with any penalties or interest
applicable thereto; (iii) within 15 days after paying such Relevant
Withholding Taxes, deliver to the Trustee and each Paying Agent evidence of
such payment and of the remittance thereof to the relevant taxing or other
authority as described herein; and (iv) pay any Additional Amounts due to
Holders on any

 

19

 

interest
payment date, redemption date or the maturity date to the Trustee in accordance
with the provisions of this section.  Any
such Officer’s Certificate will be deemed to be duly provided if sent by
facsimile to the Trustee and each paying agent.

 

The Company and each
Subsidiary Guarantor hereby covenant to indemnify the Trustee and each Paying
Agent for, and to hold each harmless against, any loss, liability or expense
reasonably incurred without negligence, bad faith or willful misconduct on such
Person’s part, arising out of or in connection with actions taken or omitted by
any of them in reliance on any Officer’s Certificate furnished pursuant to this
section or the failure of the Trustee or any Paying Agent for any reason
(other than its own negligence, bad faith or willful misconduct) to receive on
a timely basis any such Officer’s Certificate or any information or
documentation requested by it or otherwise required by applicable law or
regulations to be obtained, furnished or filed in respect of such Relevant
Withholding Taxes. The Company or such Subsidiary Guarantor will make available
to any Holder requesting the same, evidence that the applicable Relevant
Withholding Taxes have been paid.

 

(d)                                 Whenever
in this Indenture there is mentioned, in any context, the payment of amounts
based upon the payment of principal, premium, if any, interest or of any other
amount payable under or with respect to any Note, such mention shall be deemed
to include mention of the payment of Additional Amounts as are, were or would
be payable in respect thereof.

 

(e)                                  The
obligations of the Company and the Subsidiary Guarantors under this Section 4.2
shall survive the termination of this Indenture and the payment of all other
amounts under or with respect to the Notes or the Subsidiary Guarantees, as the
case may be.

 

SECTION 4.3.   Compliance Certificate.  The Company shall deliver to the Trustee
within 120 days after the end of each fiscal year of the Company an Officers’
Certificate stating that in the course of the performance by the signers of
their duties as Officers of the Company they would normally have knowledge of
any Default or Event of Default and whether or not the signers know of any
Default or Event of Default that occurred during such period.  If they do, the certificate shall describe
the Default or Event of Default, its status and what action the Company is
taking or proposes to take with respect thereto.  The Company also shall comply with TIA § 314(a)(4).

 

SECTION 4.4.   Further Instruments and Acts.  Upon request of the Trustee, the Company will
execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of
this Indenture.

 

ARTICLE V

Defaults and Remedies

 

SECTION 5.1.   Events of Default.  An “Event of Default” occurs if:

 

(1)                                  the
Company defaults in any payment of interest on any Note when the same becomes
due and payable and such default continues for a period of 30 days;

 

(2)                                  the
Company defaults in the payment of the principal or premium, if any, of any
Note when the same becomes due and payable at its Stated Maturity, upon
optional redemption, upon required repurchase, upon declaration or otherwise;

 

20

 

(3)                                  the
Company fails to comply with any of its agreements in the Notes or this
Indenture (other than those referred to in (1), (2) or (3) above) and
such failure continues for 45 days after the notice specified below;

 

(4)                                  indebtedness
of the Company (other than Excluded Debt) is not paid within any applicable
grace period after failure to pay when due or is accelerated by the holders
thereof because of a default;

 

(5)                                  Excluded
Debt that is held by Persons who are not Affiliates of the Company is not paid
within an applicable grace period after failure to pay when due or is
accelerated by the holders thereof because of a default and the total principal
amount of such unpaid or accelerated Excluded Debt exceeds US$35 million;

 

(6)                                  the
Company pursuant to or within the meaning of any Bankruptcy Law:

 

(A)                              commences
a voluntary case;

 

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

 

(C)                                consents
to the appointment of a Custodian of it or for any substantial part of its
property; or

 

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

 

or takes any comparable action under any foreign laws
relating to insolvency;

 

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

 

(A)                              is
for relief against the Company in an involuntary case;

 

(B)                                appoints
a Custodian of the Company or for any substantial part of its property; or

 

(C)                                orders
the winding up or liquidation of the Company;

 

or any similar relief is granted under any foreign
laws and the order, decree or relief remains unstayed and in effect for 60
days;

 

(8)                                  any
judgment or decree for the payment of money in excess of US$5 million (to the
extent not covered by insurance as acknowledged in writing by the insurer) is
rendered against the Company and such judgment or decree remains undischarged
or unstayed for a period of 60 days after such judgment becomes final and
non-appealable;

 

(9)                                  there
shall have occurred any seizure, compulsory acquisition, expropriation or
nationalization of material assets of the Company and its Subsidiaries; or

 

(10)                            any
Subsidiary Guarantee fails to be in full force and effect (except as
contemplated by the terms thereof) or the denial or disaffirmation by any
Subsidiary Guarantor of its obligations under the Indenture or any Subsidiary
Guarantee if such default continues for 10 days, unless otherwise released from
such Subsidiary Guarantee obligation pursuant to the Indenture.

 

21

 

The foregoing will
constitute Events of Default whatever the reason for any such Event of Default
and whether it is voluntary or involuntary or is effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body.

 

The term “Bankruptcy Law”
means Decree Law No. 7661, of June 21, 1945, or any other Brazilian
law relating to, or Title 11, United States Code, or any similar United States
Federal or state law relating to, bankruptcy, insolvency, receivership,
winding-up, liquidation, reorganization, “concordata” or relief of
debtors.  The term “Custodian” means any
receiver, trustee, assignee, liquidator, custodian “sindico,” “comissario” or
similar official under any Bankruptcy Law.

 

Notwithstanding the
foregoing, a Default under clause (4) of this Section 5.1 will
not constitute an Event of Default until the Trustee or the Holders of at least
25% in principal amount of the outstanding Notes notify the Company of the
Default and the Company does not cure such Default within the time specified in
said clause (4) after receipt of such notice.  Such notice must specify the Default, demand
that it be remedied and state that such notice is a “Notice of Default”.

 

If a Default occurs and
is continuing and is known to the Trustee, the Trustee must mail to each holder
notice of the Default within 90 days after it occurs.  Except in the case of a Default under clause (1) or
(2) (including Additional Amounts) of this Section 5.1, the
Trustee may withhold notice if and so long as a committee of its Trust Officers
in good faith determines that withholding notice is in the interests of the
Noteholders. In addition, the Company is required to deliver to the Trustee,
within 120 days after the end of each fiscal year, a certificate indicating
whether the signers thereof know of any Default that occurred during the
previous year.

 

The Company shall deliver
to the Trustee, within 30 days after the occurrence thereof, written notice in
the form of an Officers’ Certificate of any Event of Default under clauses (3),
(4), (7) or (9) of this Section 5.1.

 

SECTION 5.2.   Acceleration.  If an Event of Default (other than an Event
of Default specified in Section 5.1(6), (7) or (9))
occurs and is continuing, the Trustee by notice to the Company, or the Holders
of at least 25% in outstanding principal amount of the Notes by notice to the
Company and the Trustee, may declare the principal of and accrued and unpaid
interest on all the Notes (and all Additional Amounts payable thereon) to be
due and payable.  Upon such a
declaration, such principal and interest shall be due and payable
immediately.  If an Event of Default
specified in Section 5.1(6), (7) or (9), the
principal of and accrued and unpaid interest on all the Notes (and any
Additional Amounts) shall ipso  facto become and be immediately
due and payable without any declaration or other act on the part of the Trustee
or any Noteholders.  The Holders of a
majority in principal amount of the Notes by notice to the Trustee may rescind
an acceleration and its consequences, provided (a) the Company has paid or
deposited with the Trustee a sum sufficient to pay (i) all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and all
other amounts due to the Trustee under Section 6.7, (ii) all
overdue interest on all Notes, (iii) the principal of the premium, if any,
on any Notes that have become due otherwise than by such declaration or
occurrence of acceleration and interest thereon at the rate prescribed
therefore by such Notes and (iv) to the extent that payment of such
interest is lawful, interest upon overdue interest, if any, at the rate
prescribed therefore by such Notes, (b) all existing Events of Default,
other than the non-payment of principal of, premium, if any, and accrued
interest on the Notes that have become due solely by such declaration of
acceleration, have been cured or waived and (c) the rescission would not
conflict with any judgment or decree of a court of competent jurisdiction.

 

22

 

SECTION 5.3.   Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of principal of or interest 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 Noteholder 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.

 

SECTION 5.4.   Waiver of Past Defaults.  Subject to Section 5.2 the
Holders of a majority in principal amount of the Notes by notice to the Trustee
may waive an existing Default or Event of Default and its consequences except a
Default or Event of Default in the payment of the principal of or interest on a
Note When a Default or Event of Default is waived, it is deemed cured, but no
such waiver shall extend to any subsequent or other Default or Event of Default
or impair any consequent right.

 

SECTION 5.5.   Control by Majority.  The Holders of a majority in principal amount
of the Notes may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or of exercising any trust or power
conferred on the Trustee.  However, the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture or, subject to Section 6.1, that the Trustee determines
is unduly prejudicial to the rights of other Noteholders or would involve the
Trustee in personal liability; provided, however, that the Trustee may take any other action deemed
proper by the Trustee that is not inconsistent with such direction.  Prior to taking any action hereunder, the
Trustee shall be entitled to indemnification satisfactory to it in its sole
discretion against all losses and expenses caused by taking or not taking such
action.

 

SECTION 5.6.   Limitation on Suits.  A Noteholder may not pursue any remedy with
respect to this Indenture or the Notes, except the right to receive payment of
principal, premium (if any) or interest when due, unless:

 

(1)                                  the
Holder gives to the Trustee written notice stating that an Event of Default is
continuing;

 

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

 

(3)                                  such
Holder or Holders offer to the Trustee reasonable Note or indemnity against any
loss, liability or expense;

 

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

 

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

 

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

 

SECTION 5.7.   Rights of Holders to Receive Payment.  Notwithstanding any other provision of this
Indenture, the right of any Holder to receive payment of principal of and
interest on the Notes held by such Holder, on or after the respective due dates
expressed in the Notes, or to bring suit for

 

23

 

the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder.

 

SECTION 5.8.   Collection Suit by Trustee.  If an Event of Default specified in Section 5.1(1) or
(2) occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company for the
whole amount then due and owing (together with interest on any unpaid interest
to the extent lawful) and the amounts provided for in Section 6.7.

 

SECTION 5.9.   Trustee May File Proofs of Claim.  The Trustee may file such proofs of claim and
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee and the Noteholders allowed in any judicial proceedings
relative to the Company, its Subsidiaries or their respective creditors or
properties and, unless prohibited by law or applicable regulations, may vote on
behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make 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 it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section 6.7.

 

SECTION 5.10.   Priorities.  If the Trustee collects any money or property
pursuant to this Article V, it shall pay out the money or property
in the following order:

 

FIRST:  to the Trustee for amounts due under Section 6.7;

 

SECOND:  to Noteholders for amounts due and unpaid on
the Notes for principal and interest (including Additional Amounts), ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Notes for principal and interest, respectively; and

 

THIRD:  to the
Company.

 

The Trustee may fix a
record date and payment date for any payment to Noteholders pursuant to this
Section.  At least 15 days before such
record date, the Company shall mail to each Noteholder and the Trustee a notice
that states the record date, the payment date and amount to be paid.

 

SECTION 5.11.   Undertaking for Costs.  In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as 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 does
not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 5.7
or a suit by Holders of more than 10% in outstanding principal amount of the
Notes.

 

ARTICLE VI

Trustee

 

SECTION 6.1.   Duties of Trustee. 
(a)  If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by
this Indenture and use the same

 

24

 

degree
of care and skill in their exercise 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:

 

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

 

and

 

(2)                                  in
the absence of bad faith on 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.  However,
the Trustee shall examine the certificates and opinions to determine whether or
not they conform to the requirements of this Indenture.

 

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

 

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

 

(2)                                  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

 

(3)                                  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 5.5.

 

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

 

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

 

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

 

(g)                                 Every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Section and to the provisions of the TIA.

 

SECTION 6.2.   Rights of Trustee. 
(a)  The Trustee may rely and shall be protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, 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.

 

25

 

(b)                                 Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel. 
The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on the Officers’ Certificate or Opinion of Counsel.

 

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

 

(d)                                 The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers; provided, however, that
the Trustee’s conduct does not constitute wilful misconduct or negligence.

 

(e)                                  The
Trustee may consult with counsel, and the advice or opinion of counsel with
respect to legal matters relating to this Indenture and the Notes shall be full
and complete authorization and protection from liability in respect to any
action taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel.

 

(f)                                    The
Trustee shall not be deemed to have notice of a Default or an Event of Default
unless (a) the Trustee has received written notice thereof from the
Company or any Holder or (b) a Trust Officer shall have actual knowledge
thereof.

 

(g)                                 The
permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as a duty unless so specified herein.

 

SECTION 6.3.   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 or its Affiliates with the same rights it would have if it were not
Trustee.  Any Paying Agent, Note
Registrar, co-registrar or co-paying agent may do the same with like
rights.  However, the Trustee must comply
with Sections 6.10 and 6.11.

 

SECTION 6.4.   Trustee’s Disclaimer.  The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Notes, 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 in any document issued in connection with the sale of the
Notes or in the Notes other than the Trustee’s certificate of authentication.

 

SECTION 6.5.   Intentionally Omitted.

 

SECTION 6.6.   Reports by Trustee to Holders.  As promptly as practicable after each May 15
beginning with the May 15 following the date of this Indenture, and in any
event prior to July 15 in each year, the Trustee shall mail to each
Noteholder a brief report dated as of such May 15 that complies with TIA § 313(a).  The Trustee also shall comply with TIA § 313(b).  The Trustee shall also transmit by mail all
reports required by TIA § 313(c).

 

A copy of each report at
the time of its mailing to Noteholders shall be filed with the SEC and each
stock exchange (if any) on which the Notes are listed.  The Company agrees to notify promptly the
Trustee whenever the Notes become listed on any stock exchange and of any
delisting thereof.

 

SECTION 6.7.   Compensation and Indemnity.  The Company shall pay to the Trustee from
time to time reasonable compensation for its services.  The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses, disbursements and advances
incurred or

 

26

 

made
by it, including costs of collection, costs of preparing and reviewing reports,
certificates and other documents, costs of preparation and mailing of notices
to Noteholders and reasonable costs of counsel retained by the Trustee in
connection with the delivery of an Opinion of Counsel or otherwise, in addition
to the compensation for its services. 
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee’s agents, counsel, accountants and
experts.  The Company shall indemnify the
Trustee against any and all loss, liability or expense (including reasonable
attorneys’ fees) incurred by it in connection with the administration of this
trust and the performance of its duties hereunder, including the costs and
expenses of enforcing this Indenture (including this Section 6.7)
and of defending itself against any claims (whether asserted by any Noteholder,
the Company or otherwise).  The Trustee
shall notify the Company promptly of any claim for which it may seek
indemnity.  Failure by the Trustee to so
notify the Company shall not relieve the Company of its obligations
hereunder.  The Company shall defend the
claim and the Trustee may have separate counsel and the Company shall pay the
fees and expenses of such counsel.  The
Company need not reimburse any expense or indemnify against any loss, liability
or expense incurred by the Trustee through the Trustee’s own willful
misconduct, negligence or bad faith.  Any
Paying Agent, Note Registrar, co-registrar and co-paying agent shall have the
same rights as to compensation and indemnity as set forth for the Trustee in
this Section.

 

To secure the Company’s
payment obligations in this Section, the Trustee shall have a lien prior to the
Notes on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of and interest on particular
Notes.  The Trustee’s right to receive
payment of any amounts due under this Section 6.7 shall not be
subordinate to any other liability or indebtedness of the Company.

 

The Company’s payment
obligations pursuant to this Section shall survive the resignation or
removal of the Trustee and the satisfaction and discharge of this
Indenture.  When the Trustee incurs
expenses after the occurrence of a Default specified in Section 5.1(6) or
(7) with respect to the Company, the expenses are intended to
constitute expenses of administration under any Bankruptcy Law.

 

SECTION 6.8.   Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company.  The Holders of a majority
in principal amount of the Notes may remove the Trustee by so notifying the
Trustee and may appoint a successor Trustee. 
The Company shall remove the Trustee if:

 

(1)                                  the
Trustee fails to comply with Section 6.10;

 

(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 otherwise becomes incapable of acting.

 

If the Trustee resigns or
is removed by the Company or by the Holders of a majority in principal amount
of the Notes and such Holders do not reasonably promptly appoint a successor
Trustee, or if a vacancy exists in the office of Trustee for any reason (the
Trustee in such event being referred to herein as the retiring Trustee), the
Company shall promptly appoint a successor Trustee.

 

A successor Trustee shall
deliver a written acceptance of its appointment to the retiring Trustee and to
the Company.  Thereupon the resignation
or removal of the retiring Trustee shall become

 

27

 

effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture.  The successor
Trustee shall mail a notice of its succession to Noteholders.  The retiring Trustee shall, upon payment of
its charges, promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 6.7.

 

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

 

If the Trustee fails to
comply with Section 6.10, any Noteholder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

Notwithstanding the
replacement of the Trustee pursuant to this Section, the Company’s obligations
under Section 6.7 shall continue for the benefit of the retiring or
removed Trustee.

 

SECTION 6.9.   Successor Trustee by Merger.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust
business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be
the successor Trustee.

 

In case at the time such
successor or successors by merger, conversion or consolidation to the Trustee
shall succeed to the trusts created by this Indenture, any of the Notes shall
have been authenticated but not delivered, any such successor to the Trustee
may adopt the certificate of authentication of any predecessor trustee, and
deliver such Notes so authenticated; and in case at that time any of the Notes
shall not have been authenticated, any successor to the Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Notes or in
this Indenture provided that the certificate of the Trustee shall have.

 

SECTION 6.10.   Eligibility; Disqualification.  The Trustee shall at all times satisfy the
requirements of TIA § 310(a).  The
Trustee shall have a combined capital and surplus of at least US$100 million as
set forth in its most recent published annual report of condition.  The Trustee shall comply with TIA § 310(b);
provided, however,
that there shall be excluded from the operation of TIA § 310(b)(1) any
indenture or indentures under which other Notes or certificates of interest or
participation in other Notes of the Company are outstanding if the requirements
for such exclusion set forth in TIA § 310(b)(1) are met.

 

SECTION 6.11.   Preferential Collection of Claims Against
Company.  The Trustee shall comply
with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated.

 

ARTICLE VII

Discharge of Indenture; Defeasance

 

SECTION 7.1.   Discharge of Liability on Notes;
Defeasance.  (a)  When (i) the
Company delivers to the Trustee all outstanding Notes (other than Notes
replaced pursuant to Section 2.6) for cancellation or (ii) all
outstanding Notes have become due and payable, whether at maturity or as a
result of the mailing of a notice of redemption pursuant to Article III
hereof and the Company irrevocably deposits with the Trustee funds sufficient
to pay at maturity or upon redemption all outstanding Notes (other than Notes
replaced pursuant to Section 2.6), including interest thereon to
maturity or such

 

28

 

redemption
date, and if in either case the Company pays all other sums payable hereunder
by the Company, then this Indenture shall, subject to Section 7.1(c),
cease to be of further effect.  The
Trustee shall acknowledge satisfaction and discharge of this Indenture on
demand of the Company (accompanied by an Officers’ Certificate and an Opinion
of Counsel stating that all conditions precedent specified herein relating to
the satisfaction and discharge of this Indenture have been complied with) and
at the cost and expense of the Company.

 

(b)                                 Subject
to Sections 7.1(c) and 7.2, the Company at any time may
terminate (i) all its obligations under the Notes and this Indenture and
all obligations of the Subsidiary Guarantors under the Subsidiary Guarantees
and this Indenture (“legal defeasance option”) or (ii) the operation of Sections
5.1(3), 5.1(4) and 5.1(7) (“covenant defeasance
option”).  The Company may exercise its
legal defeasance option notwithstanding its prior exercise of its covenant
defeasance option.

 

If the Company exercises
its legal defeasance option, payment of the Notes may not be accelerated
because of an Event of Default.  If the
Company exercises its covenant defeasance option, payment of the Notes may not
be accelerated because of an Event of Default specified in Sections 5.2(3),
5.1(4) and 5.1(7).

 

Upon satisfaction of the conditions set forth herein
and upon request of the Company, the Trustee shall acknowledge in writing the
discharge of those obligations that the Company terminates.

 

(c)                                  Notwithstanding
the provisions of Sections 7.1(a) and (b), the Company’s
obligations in Sections 2.5, 2.6, 2.7, 2.8, 2.16,
2.17, 4.1, 4.2, 6.7, 6.8, 7.4, 7.5
and 7.6 shall survive until the Notes have been paid in full.  For the purpose of applying Section 4.2,
if the Trustee is required by law or by the administration or interpretation
thereof to withhold or deduct any amount for or on account of Taxes from any
payment made from a defeasance trust, such payment shall be deemed to have been
made by the Company and the Company shall be deemed to have been so required to
deduct or withhold such amount. 
Thereafter, the Company’s obligations in Sections 6.7, 7.4 and
7.5 shall survive.

 

SECTION 7.2.   Conditions to Defeasance.  The Company may exercise its legal defeasance
option or its covenant defeasance option only if:

 

(1)                                  the
Company irrevocably deposits in trust with the Trustee money or U.S. Government
Obligations for the payment of principal of, premium, if any, and interest on
the Notes (including any Additional Amounts thereon) to maturity or redemption,
as the case may be;

 

(2)                                  the
Company delivers to the Trustee a certificate from a nationally recognized firm
of independent accountants expressing their opinion that the payments of
principal and interest when due and without reinvestment on the deposited U.S.
Government Obligations plus any deposited money without investment will provide
cash at such times and in such amounts as will be sufficient to pay principal
and interest when due on all the Notes to maturity or redemption, as the case
may be;

 

(3)                                  the
Company shall have delivered to the Trustee an Opinion of Counsel, subject to
certain customary qualifications, to the effect that (i) the funds so
deposited will not be subject to any rights of any other holders of
indebtedness of the Company, and (ii) the funds so deposited will not be
subject to avoidance under applicable Bankruptcy Law;

 

(4)                                  the
deposit does not constitute a default under any other agreement binding on the
Company;

 

29

 

(5)                                  the
Company delivers to the Trustee an Opinion of Counsel to the effect that the
trust resulting from the deposit does not constitute, or is qualified as, a
regulated investment company under the Investment Company Act of 1940;

 

(6)                                  in
the case of the legal defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel stating that (i) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling, or (ii) since the date of this Indenture there has been a change
in the applicable Federal income tax law, in either case to the effect that,
and based thereon such Opinion of Counsel shall confirm that, the Noteholders
will not recognize income, gain or loss for Federal income tax purposes as a
result of such defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such legal defeasance had not occurred;

 

(7)                                  in
the case of the covenant defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Noteholders will not
recognize income, gain or loss for Federal income tax purposes as a result of
such covenant defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such covenant defeasance had not occurred;

 

(8)                                  the
Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel in the United States, the Federative Republic of Brazil and such other
jurisdiction as the Trustee may request, each stating that all conditions
precedent to the defeasance and discharge of the Notes and this Indenture as
contemplated by this Article VII have been complied with; and

 

(9)                                  The
Company shall have delivered to the Trustee an Opinion of Counsel in Brazil
reasonably acceptable to the Trustee to the effect that the Holders of the
Outstanding Notes will not recognize income, gain or loss for Brazilian federal
or state income tax or other tax purposes as a result of such defeasance or
covenant defeasance, as applicable, and will be subject to Brazilian federal
and state income tax and other tax on the same amounts, in the same manner and
at the same times as would have been the case if such defeasance or covenant
defeasance, as applicable, had not occurred. 
Notwithstanding anything to the contrary in this Indenture, this
condition may not be waived by any Holder or the Trustee;

 

Before or after a
deposit, the Company may make arrangements satisfactory to the Trustee for the
redemption of Notes at a future date in accordance with Article III.

 

SECTION 7.3.   Application of Trust Money.  The Trustee shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to this Article VII.  It shall apply the deposited money and the
money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and interest on
the Notes.

 

SECTION 7.4.   Repayment to Company.  The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money or Notes held
by them upon payment of all the obligations under this Indenture.

 

Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal of or
interest on the Notes that remains unclaimed for two years, and, thereafter,
Noteholders entitled to the money must look to the Company for payment as general
creditors.

 

30

 

SECTION 7.5.   Indemnity for U.S. Government Obligations.  The Company shall pay and shall indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against
deposited U.S. Government Obligations or the principal and interest received on
such U.S. Government Obligations.

 

SECTION 7.6.   Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with this Article VII
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 obligations of the Company and the Subsidiary Guarantors
under this Indenture, the Notes and Subsidiary Guarantees shall be revived and
reinstated as though no deposit had occurred pursuant to this Article VII
until such time as the Trustee or Paying Agent is permitted to apply all such
money or U.S. Government Obligations in accordance with this Article VII;
provided, however,
that, if the Company has made any payment of interest 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 or U.S. Government Obligations held by the Trustee or Paying
Agent.

 

ARTICLE VIII

Amendments

 

SECTION 8.1.   Without Consent of Holders.  The Company and the Trustee may amend this
Indenture or the Notes without notice to or consent of any Noteholder:

 

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

 

(2)                                  to
provide for the assumption by a successor corporation of the obligations of the
Company under this Indenture;

 

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

 

(4)                                  to
add guarantees with respect to the Notes or to secure the Notes;

 

(5)                                  to
add to the covenants of the Company for the benefit of the Holders or to
surrender any right or power herein conferred upon the Company;

 

(6)                                  to
comply with any requirements of the SEC in connection with qualifying this
Indenture under the TIA; or

 

(7)                                  to
make any change that does not adversely affect the rights of any Noteholder.

 

After an amendment under
this Section becomes effective, the Company shall mail to Noteholders a
notice briefly describing such amendment. 
The failure to give such notice to all Noteholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section.

 

SECTION 8.2.   With Consent of Holders.  The Company and the Trustee may amend this
Indenture or the Notes or waive any past default or compliance with any
provision of this Indenture

 

31

 

or the
Notes with the written consent of the Holders of at least a majority in
principal amount of the Notes.  However,
without the consent of each Noteholder affected, an amendment may not:

 

(1)                                  reduce
the amount of Notes whose Holders must consent to an amendment;

 

(2)                                  reduce
the rate of or extend the time for payment of interest on any Note or reduce
any Additional Amounts in respect thereof;

 

(3)                                  reduce
the principal of or extend any Stated Maturity of any Note;

 

(4)                                  reduce
the premium payable upon the redemption or repurchase of any Note or change the
time at which any Note may or shall be redeemed or repurchased in accordance
with this Indenture;

 

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

 

(6)                                  modify
or amend in any manner adverse to the Holders the terms and conditions of the
obligation of the Company for the due and punctual payment of the principal of
or interest on Notes;

 

(7)                                  modify
or amend in any manner adverse to the Holders the terms and conditions of the
obligation of the Company for the due and punctual payment of the principal of
or interest on Notes or the right of any Holder to institute suit for
enforcement of any payment on or with respect to such Holder’s Notes;

 

(8)                                  make
any change in Section 5.4 or 5.7 or the second sentence of
this Section 8.2;

 

(9)                                  release
any Subsidiary Guarantor from any of its obligations under its Subsidiary
Guarantee or this Indenture; or

 

(10)                            amend
or modify the provisions of Section 4.2.

 

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

 

After an amendment under
this Section becomes effective, the Company shall mail to Noteholders a
notice briefly describing such amendment. 
The failure to give such notice to all Noteholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section.

 

SECTION 8.3.   Compliance with Trust Indenture Act.  Every amendment to this Indenture or the
Notes shall comply with the TIA as then in effect.

 

SECTION 8.4.   Revocation and Effect of Consents and
Waivers.  A consent to an amendment
or a waiver by a Holder of a Note shall bind the Holder and every subsequent
Holder of that Note or portion of the Note that evidences the same debt as the
consenting Holder’s Note, even if notation of the consent or waiver is not made
on the Note.  However, any such Holder or
subsequent Holder may revoke the consent or waiver as to such Holder’s Note or
portion of the Note if the Trustee receives the notice of revocation before the
date the amendment or waiver becomes effective. 
After an amendment or waiver becomes effective, it shall bind every
Noteholder.

 

32

 

The Company may, but
shall not be obligated to, fix a record date for the purpose of determining the
Noteholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture.  If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Noteholders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to give such consent or to revoke any consent
previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. 
No such consent shall become valid or effective more than 120 days after
such record date.

 

SECTION 8.5.   Notation on or Exchange of Notes.  If an amendment changes the terms of a Note,
the Trustee may require the Holder of the Note to deliver it to the
Trustee.  The Trustee may place an
appropriate notation on the Note regarding the changed terms and return it to the
Holder.  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 the appropriate notation or
to issue a new Note shall not affect the validity of such amendment.

 

SECTION 8.6.   Trustee To Sign Amendments.  The Trustee may, but need not, sign any
amendment authorized pursuant to this Article VIII if the amendment
adversely affects the rights, duties, liabilities or immunities of the
Trustee.  In signing any amendment the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it
and to receive, in addition to the documents required by Section 10.4,
and (subject to Section 6.1) shall be fully protected in relying
upon, an Officers’ Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture.

 

ARTICLE IX

Subsidiary Guarantee

 

SECTION 9.1.   Execution of Subsidiary Guarantee.  Any Subsidiary of the Company that is not a
Subsidiary Guarantor as of the date hereof may become a Subsidiary Guarantor by
executing and delivering to the Trustee (a) a Subsidiary Guarantee in the
form attached hereto as Exhibit B and (b) a supplement to this
Indenture providing that such Subsidiary will be a Subsidiary Guarantor
hereunder.  Each supplement shall be
accompanied by an opinion of counsel in a form reasonably satisfactory to the
Trustee.  In the event that any
Subsidiary of the Company becomes a Subsidiary Guarantor as of the date hereof
or in accordance with this Section 9.1, then Sections 9.2
through 9.9 shall apply to such Subsidiary Guarantor.

 

SECTION 9.2.   Subsidiary Guarantee.  The Subsidiary Guarantors hereby, jointly and
severally, unconditionally and irrevocably, Guarantee to each Holder and to the
Trustee and its successors and assigns, as a principal obligor and not merely
as a surety, (a) the full and punctual payment of principal of and
interest on the Notes when due, whether at maturity, by acceleration, by
redemption or otherwise, and all other monetary obligations of the Company
under this Indenture (including obligations to the Trustee) and the Notes and (b) the
full and punctual performance within applicable grace periods of all other
obligations of the Company under this Indenture and the Notes (all the
foregoing being hereinafter collectively called the “Obligations”).  The Subsidiary Guarantors further agree that
the Obligations may be extended or renewed, in whole or in part, without notice
or further assent from the Subsidiary Guarantors, and that the Subsidiary
Guarantors will remain bound under this Article IX notwithstanding
any extension or renewal of any Obligation.

 

The Subsidiary Guarantors
waive presentation to, demand of, payment from and protest to the Company of
any of the Obligations and also waive notice of protest for nonpayment.  The Subsidiary Guarantors waive notice of any
default under the Notes or the Obligations. 
The obligations of

 

33

 

the Subsidiary
Guarantors hereunder shall not be affected by (a) the failure of any
Holder or the Trustee to assert any claim or demand or to enforce any right or
remedy against the Company or any other Person under this Indenture, the Notes
or any other agreement or otherwise; (b) any extension or renewal of any
Obligation; (c) any rescission, waiver, amendment, modification or
supplement of any of the terms or provisions of this Indenture (other than this
Article IX), the Notes or any other agreement; (d) the release
of any security held by any Holder or the Trustee for the Obligations or any of
them; (e) the failure of any Holder or Trustee to exercise any right or
remedy against any other guarantor of the Obligations; or (f) any change
in the ownership of the Company.

 

The Subsidiary Guarantors
further agree that their Guarantees herein constitute a guarantee of payment,
performance and compliance when due (and not a guarantee of collection) and
waive any right to require that any resort be had by any Holder or the Trustee
to any security held for payment of the Obligations.

 

The obligations of the
Subsidiary Guarantors hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason, including any claim of
waiver, release, surrender, alteration or compromise, and shall not be subject
to any defense, setoff, counterclaim, recoupment or termination whatsoever or
by reason of the invalidity, illegality or unenforceability of the Obligations
or otherwise.  Without limiting the
generality of the foregoing, the obligations of the Subsidiary Guarantors
herein shall not be discharged or impaired or otherwise affected by the failure
of any Holder or the Trustee to assert any claim or demand or to enforce any
remedy under this Indenture, the Notes or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the Obligations, or by any other act or thing
or omission or delay to do any other act or thing which may or might in any
manner or to any extent vary the risk of the Subsidiary Guarantors or would
otherwise operate as a discharge of the Subsidiary Guarantors as a matter of
law or equity.

 

The Subsidiary Guarantors
further agree that their Guarantees herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any Obligation is rescinded or must otherwise be restored by any Holder or the
Trustee upon the bankruptcy or reorganization of the Company or otherwise.

 

In furtherance of the
foregoing and not in limitation of any other right which any Holder or the
Trustee has at law or in equity against the Subsidiary Guarantors by virtue
hereof, upon the failure of the Company to pay any Obligation when and as the
same shall become due, whether at maturity, by acceleration, by redemption or
otherwise, or to perform or comply with any other Obligation, the Subsidiary
Guarantors hereby promise to and will, upon receipt of written demand by the
Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or the
Trustee an amount equal to the sum of (i) the unpaid principal amount of
such Obligations, (ii) accrued and unpaid interest on such Obligations
(but only to the extent not prohibited by law) and (iii) all other
monetary Obligations of the Company to the Holders and the Trustee.

 

The Subsidiary Guarantors
agree that, as between the Subsidiary Guarantors, 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 V
for the purposes of the Guarantee herein, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the Obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration
of such Obligations as provided in Article V, such Obligations
(whether or not due and payable) shall forthwith become due and payable by the
Subsidiary Guarantors for the purposes of this Section.

 

34

 

The Subsidiary Guarantors
also agree to pay any and all costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights
under this Section.

 

SECTION 9.3.   Limitation on Liability.  Any term or provision of this Indenture to
the contrary notwithstanding, the maximum aggregate liability of each
Subsidiary Guarantor hereunder shall not exceed the maximum amount that can be
guaranteed by such Subsidiary Guarantor under applicable federal and state laws
relating to insolvency of debtors.

 

SECTION 9.4.   Successors and Assigns.  (a)   This Article IX shall be binding upon
the Subsidiary Guarantors and their successors and assigns and shall enure to
the benefit of the successors and assigns of the Trustee and the Holders and,
in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges conferred upon that party in this Indenture
and in the Notes shall automatically extend to and be vested in such transferee
or assignee, all subject to the terms and conditions of this Indenture.

 

(b)                                 Notwithstanding
the foregoing, all obligations of a Subsidiary Guarantor under this Article IX
shall be automatically and unconditionally released and discharged upon any
sale, exchange or transfer to any Person which is not a Subsidiary of the
Company, of all or substantially all of the assets of such Subsidiary Guarantor
or all of the capital stock of such Subsidiary Guarantor owned by the Company or
any Subsidiary; provided that (i) such sale,
exchange or transfer is not prohibited by this Indenture and (ii) all
obligations of such Subsidiary Guarantor under all of its Guarantees of, and in
respect of all liens on its assets securing, indebtedness of the Company are
also released and discharged upon such sale, exchange or transfer.

 

SECTION 9.5.   No Waiver.  Neither a failure nor a delay on the part of
either the Trustee or the Holders in exercising any right, power or privilege
under this Article IX shall operate as a waiver thereof, nor shall
a single or partial exercise thereof preclude any other or further exercise of
any right, power or privilege.  The
rights, remedies and benefits of the Trustee and the Holders herein expressly
specified are cumulative and not exclusive of any other rights, remedies or
benefits which either may have under this Article IX at law, in
equity, by statute or otherwise.

 

SECTION 9.6.   Right of Contribution.  Each Subsidiary Guarantor hereby agrees that
to the extent that a Subsidiary Guarantor shall have paid more than its
proportionate share of any payment made hereunder, such Subsidiary Guarantor
shall be entitled to seek and receive contribution from and against any other
Subsidiary Guarantor hereunder who has not paid its proportionate share of such
payment.  Each Subsidiary Guarantor’s
right of contribution shall be subject to the terms and conditions of Section 9.7.  The provisions of this Section shall in
no respect limit the obligations and liabilities of any Subsidiary Guarantor to
the Trustee and the Holders, and each Subsidiary Guarantor shall remain liable
to the Trustee and the Holders for the full amount guaranteed by such Subsidiary
Guarantor hereunder.

 

SECTION 9.7.   No Subrogation.  Notwithstanding any payment or payments made
by any of the Subsidiary Guarantors hereunder, no Subsidiary Guarantor shall be
entitled to be subrogated to any of the rights of the Trustee or any Holder
against the Company or any other Subsidiary Guarantor or any collateral security
or guarantee or right of offset held by the Trustee or any Holder for the
payment of the Obligations, nor shall any Subsidiary Guarantor seek or be
entitled to seek any contribution or reimbursement from the Company or any
other Subsidiary Guarantor in respect of payments made by such Subsidiary
Guarantor hereunder, until all amounts owing to the Trustee and the Holders by
the Company on account of the Obligations are paid in full.  If any amount shall be paid to any Subsidiary
Guarantor on account of such subrogation rights at any time when all of the
Obligations shall not have

 

35

 

been
paid in full, such amount shall be held by such Subsidiary Guarantor in trust
for the Trustee and the Holders, segregated from other funds of such Subsidiary
Guarantor, and shall, forthwith upon receipt by such Subsidiary Guarantor, be
turned over to the Trustee in the exact form received by such Subsidiary
Guarantor (duly indorsed by such Subsidiary Guarantor to the Trustee, if
required), to be applied against the Obligations.

 

SECTION 9.8.   Modification.  No modification, amendment or waiver of any
provision of this Article IX, nor the consent to any departure by
the Subsidiary Guarantors therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given.  No notice to or demand
on the Subsidiary Guarantors in any case shall entitle the Subsidiary
Guarantors to any other or further notice or demand in the same, similar or
other circumstances.

 

SECTION 9.9.   Waiver of Brazilian Law Benefits.  Each Subsidiary Guarantor hereby expressly
waives all benefits set forth in the following provisions of Brazilian
law:  articles 1491, 1494, 1498, 1499,
1500 and 1503 of the Brazilian Civil Code, articles 261 and 262 of the
Brazilian Commercial Code and article 595 of the Brazilian Civil Procedure
Code.

 

ARTICLE X

 

Miscellaneous

 

SECTION 10.1.   Trust Indenture Act 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 provision required by the TIA shall control.

 

SECTION 10.2.   Notices.  Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail addressed as
follows:

 

if to the Company or to the Subsidiary Guarantors:

 

Tevecap S.A.

Av. Das Nações Unidas, 7221 – 7(o) andar

São Paulo, SP

Brazil, 05425-902

Tel:  011-55-11-3037-5127

Fax:  011-55-11-3037-3460

Attention: 
Carlos Eduardo Malagoni

 

if to the Trustee or the Paying Agent:

 

HSBC Bank USA, National Association

452 Fifth Avenue

New York, NY 10018

Attention: Corporate Trust

Tel.: 212-525-1316

Fax: 212-525-1300

 

36

 

if to the Principal Paying Agent:

 

HSBC Bank USA, National Association

452 Fifth Avenue

New York, NY 10018

Attention: Corporate Trust

Tel.: 212-525-1316

Fax: 212-525-1300

 

The Company, any of the
Subsidiary Guarantors, or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or communications.

 

Any notice or
communication mailed to a Noteholder shall be mailed to the Noteholder at the
Noteholder’s address as it appears on the registration books of the Note
Registrar and shall be sufficiently given if so mailed within the time
prescribed.

 

Failure to mail a notice
or communication to a Noteholder or any defect in it shall not affect its
sufficiency with respect to other Noteholders. 
If a notice or communication is mailed in the manner provided above, it
is duly given, whether or not the addressee receives it.

 

SECTION 10.3.   Communication by Holders with other
Holders.  Noteholders may communicate
pursuant to TIA § 312(b) with other Noteholders with respect to their
rights under this Indenture or the Notes. 
The Company, the Trustee, the Note Registrar and anyone else shall have
the protection of TIA § 312(c).

 

SECTION 10.4.   Certificate and Opinion as to Conditions
Precedent.  Upon any request or
application by the Company to the Trustee to take or refrain from taking any
action under this Indenture, the Company shall furnish to the Trustee:

 

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

 

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

 

SECTION 10.5.   Statements Required in Certificate or
Opinion.  Each certificate or opinion
with respect to compliance with a covenant or condition provided for in this
Indenture shall include:

 

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

 

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

 

37

 

SECTION 10.6.   When Notes 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 by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Company shall be disregarded and deemed not to be outstanding, except that,
for the purpose of determining whether a Trust Officer of the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes which
the Trustee knows are so owned shall be so disregarded.  Also, subject to the foregoing, only Notes
outstanding at the time shall be considered in any such determination.

 

SECTION 10.7.   Rules by Trustee, Paying Agent and
Registrar.  The Trustee may make
reasonable rules for action by or a meeting of Noteholders.  The Note Registrar and the Paying Agent may
make reasonable rules for their functions.

 

SECTION 10.8.   Legal Holidays.  A “Legal Holiday” is a Saturday, a Sunday or
a day on which banking institutions are not required to be open in the State of
New York or Sao Paulo, Brazil.  If a
payment date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.  If a regular record
date is a Legal Holiday, the record date shall not be affected.

 

SECTION 10.9.   Governing Law.  This Indenture and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York but without giving effect to applicable principles of conflicts of law to
the extent that the application of the laws of another jurisdiction would be
required thereby.

 

SECTION 10.10.   No Recourse Against Others.  A director, officer, employee or stockholder,
as such, of the Company shall not have any liability for any obligations of the
Company under the Notes or this Indenture or for any claim based on, in respect
of or by reason of such obligations or their creation.  By accepting a Note, each Noteholder shall
waive and release all such liability. 
The waiver and release shall be part of the consideration for the issue
of the Notes.

 

SECTION 10.11.   Successors.  All agreements of the Company and the
Subsidiary Guarantors in this Indenture, the Notes and the Subsidiary
Guarantees shall bind their respective successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

 

SECTION 10.12.   Multiple Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this
Indenture.

 

SECTION 10.13.   Variable Provisions.  The Company initially appoints the Trustee as
Paying Agent and Note Registrar and custodian with respect to any Global Notes.

 

SECTION 10.14.   Qualification of Indenture.  The Company shall qualify this Indenture
under the TIA and shall pay all reasonable costs and expenses (including
attorneys’ fees for the Company, the Trustee and the Holders) incurred in
connection therewith, including, but not limited to, costs and expenses of
qualification of the Indenture and the Notes and printing this Indenture and
the Notes.  The Trustee shall be entitled
to receive from the Company any such Officers’ Certificates, Opinions of
Counsel or other documentation as it may reasonably request in connection with
any such qualification of this Indenture under the TIA.

 

SECTION 10.15.   Table of Contents; Headings.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of

 

38

 

reference
only, are not intended to be considered a part hereof and shall not modify or
restrict any of the terms or provisions hereof.

 

SECTION 10.16.   Agent for Service; Submission to
Jurisdiction; Waiver of Immunities. 
By the execution and delivery of this Indenture or any amendment or supplement
hereto, each of the Company and each Subsidiary Guarantor, (i) acknowledges
that it has, by separate written instrument, designated and appointed CT
Corporation System, currently located at CT Corporation System, 111 Eighth
Avenue, 13th Floor, New York, New York 10011, as its authorized
agent upon which process may be served in any suit, action or proceeding with
respect to, arising out of, or relating to, the Notes, this Indenture or any
Subsidiary Guarantee (other than an insolvency, liquidation or bankruptcy
proceeding or any other proceeding in the nature of an in rem
or quasi in rem proceeding), that may be
instituted in any Federal or state court in the State of New York, The City of
New York, the Borough of Manhattan, or brought under Federal or state Notes
laws or brought by the Trustee (whether in its individual capacity or in its
capacity as Trustee hereunder), and acknowledges that CT Corporation System has
accepted such designation, (ii) submits to the jurisdiction of any such
court in any such suit, action or proceeding, and (iii) agrees that
service of process upon CT Corporation System shall be deemed in every respect
effective service of process upon the Company or any such Subsidiary Guarantor,
as the case may be, in any such suit, action or proceeding.  The Company and each Subsidiary Guarantor
further agree to take any and all action, including the execution and filing of
any and all such documents and instruments as may be necessary to continue such
designation and appointment of CT Corporation System in full force and effect
so long as this Indenture shall be in full force and effect; provided that the Company and each Subsidiary Guarantor may
and shall (to the extent CT Corporation System ceases to be able to be served
on the basis contemplated herein), by written notice to the Trustee, designate
such additional or alternative agents for service of process under this Section 10.16
that (i) maintains an office located in the Borough of Manhattan, The City
of New York in the State of New York, (ii) are either (x) counsel for
the Company and the Subsidiary Guarantors or (y) a corporate service
company which acts as agent for service of process for other persons in the
ordinary course of its business and for other persons in the ordinary course of
its business and (iii) agrees to act as agent for service of process in
accordance with this Section 10.16. 
Such notice shall identify the name of such agent for process and the
address of such agent for process in the Borough of Manhattan, The City of New
York, State of New York.  Upon the
request of any Holder, the Trustee shall deliver such information to such
Holder.  Notwithstanding the foregoing,
there shall, at all times, be at least one agent for service of process for the
Company and the Subsidiary Guarantors appointed and acting in accordance with
this Section 10.16.

 

To the extent that the
Company or any Subsidiary Guarantor has or hereafter may acquire any immunity
from jurisdiction of any court or from any legal process (whether through
service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, the
Company and each Subsidiary Guarantor hereby irrevocably waives such immunity
in respect of its obligations under this Indenture, the Notes and the
Subsidiary Guarantees, to the extent permitted by law.

 

SECTION 10.17.   Currency of Account; Conversion of
Currency; Foreign Exchange Restrictions.  (a) 
U.S. dollars are the sole currency of account and payment for all sums payable
by the Company and the Subsidiary Guarantors under or in connection with the
Notes, the Subsidiary Guarantees or this Indenture, including damages.  Any amount received or recovered in a currency
other than U.S. dollars (whether as a result of, or of the enforcement of, a
judgment or order of a court of any jurisdiction, in the winding-up or
dissolution of the Company and the Subsidiary Guarantors or otherwise) by any
Holder in respect of any sum expressed to be due to it from the Company and the
Subsidiary Guarantors shall only constitute a discharge to the Company and the
Subsidiary Guarantors to the extent of the dollar amount which the recipient is
able to purchase with the amount so received or recovered in that other
currency on the date of that receipt or recover (or, if it is not practicable
to make that purchase

 

39

 

on
that date, on the first date on which it is practicable to do so).  If that dollar amount is less than the dollar
amount expressed to be due to the recipient under the Notes, the Company and
the Subsidiary Guarantors shall jointly and severally indemnify it against any
loss sustained by it as a result as set forth in Section 10.17(b).  In any event, the Company and the Subsidiary
Guarantors shall indemnify the recipient against the cost of making any such
purchase.  For the purposes of this Section 10.17,
it will be sufficient for the holder of a Note to certify in a satisfactory
manner (indicating sources of information used) that it would have suffered a
loss had an actual purchase of dollars been made with the amount so received in
that other currency on the date of receipt or recovery (or, if a purchase of
dollars on such date had not been practicable, on the first date on which it
would have been practicable, it being required that the need for a change of
date be certified in the manner mentioned above).  The indemnities set forth in this Section 10.17
constitute separate and independent cause of action, shall apply irrespective
of any indulgence granted by any Holder of the Notes and shall continue in full
force and effect despite any other judgment, order, claim or proof for a
liquidated amount in respect of any sum due under the Notes.

 

(b)                                 The
Company and each Subsidiary Guarantor covenant and agree that the following
provisions shall apply to conversion of currency in the case of the Notes, the
Subsidiary Guarantees and this Indenture:

 

(i)                                     (A) 
If for the purpose of obtaining judgment in, or enforcing the judgment of, any
court in any country, it becomes necessary to convert into a currency (the “judgment
currency”) an amount due in any other currency (the “Base Currency”), then the
conversion shall be made at the rate of exchange prevailing on the Business Day
before the day on which the judgment is given or the order of enforcement is
made, as the case may be (unless a court shall otherwise determine).

 

(B)                                If
there is a change in the rate of exchange prevailing between the Business Day
before the day on which the judgment is given or an order of enforcement is
made, as the case may be (or such other date as a court shall determine), and
the date of receipt of the amount due, the Company or the relevant Subsidiary
Guarantor, as the case may be, will pay such additional (or, as the case may
be, such lesser) amount, if any, as may be necessary so that the amount paid in
the judgment currency when converted at the rate of exchange prevailing on the
date of receipt will produce the amount in the Base Currency originally due.

 

(ii)                                  In
the event of the winding-up of the Company or any Subsidiary Guarantor at any
time while any amount or damages owing under the Notes, the Subsidiary
Guarantees and this Indenture, or any judgment or order rendered in respect
thereof, shall remain outstanding, the Company or the relevant Subsidiary
Guarantor, as the case may be, shall indemnify and hold the Holders and the
Trustee harmless against any deficiency arising or resulting from any variation
in rates of exchange between (1) the date as of which the U.S. Dollar
Equivalent of the amount due or contingently due under the Notes, the
Subsidiary Guarantees and this Indenture (other than under this Subsection (b)(ii))
is calculated for the purposes of such winding-up and (2) the final date
for the filing of proofs of claim in such winding-up.  For the purpose of this Subsection (b)(ii),
the final date for the filing of proofs of claim in the winding-up of the
Company or the relevant Subsidiary Guarantor, as the case may be, shall be the
date fixed by the liquidator or otherwise in accordance with the relevant
provisions of applicable law as being the latest practicable date as at which
liabilities of the Company or the relevant Subsidiary Guarantor, as the case
may be, may be ascertained for such winding-up prior to payment by the
liquidator or otherwise in respect thereto.

 

(iii)                               The
obligations contained in Subsections (a), (b)(i)(B), (b)(ii) and (b)(v) of
this Section 10.17 shall constitute separate and independent
obligations from the other

 

40

 

Indenture
obligations of the Company and the Subsidiary Guarantors, shall give rise to
separate and independent causes of action against the Company and each
Subsidiary Guarantor, shall apply irrespective of any waiver or extension
granted by any Holder or the Trustee or either of them from time to time and
shall continue in full force and effect notwithstanding any judgment or order
or the filing of any proof of claim in the winding-up of the Company or any
Subsidiary Guarantor for a liquidated sum in respect of amounts due hereunder
(other than under Subsection (b)(ii) above) or under any such
judgment or order.  Any such deficiency
as aforesaid shall be deemed to constitute a loss suffered by the Holders or
the Trustee, as the case may be, and no proof or evidence of any actual loss
shall be required by the Company or the relevant Subsidiary Guarantor or the
liquidator or otherwise or any of them. 
In the case of Subsection (b)(ii) above, the amount of such
deficiency shall not be deemed to be reduced by any variation in rates of
exchange occurring between the said final date and the date of any liquidating
distribution.

 

(iv)                              The
term “rate(s) of exchange” means the rate of exchange quoted by Reuters at
10:00 a.m. (New York time) for spot purchases of the Base Currency with
the judgment currency other than the Base Currency referred to in Subsections
(b)(i) and (b)(ii) above and includes any premiums and costs of
exchange payable.

 

(c)                                  In
the event that on any payment date in respect of the Notes or any Subsidiary
Guarantee, any restrictions or prohibition of access to the Brazilian foreign
exchange market exists, the Company and each Subsidiary Guarantor agree to pay
all amounts payable under the Notes and the Subsidiary Guarantees in the
currency of the Notes by means of any legal procedure existing in Brazil
(except commencing legal proceedings against the Central Bank of Brazil), on
any due date for payment under the Notes, for the purchase of the currency of
such Notes.  All costs and taxes payable
in connection with the procedures referred to in this Section 10.17
shall be borne by the Company and the Subsidiary Guarantors.

 

[The remainder of
the page has been left blank intentionally.]

 

41

 

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

 

	
  TEVECAP S.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Carlos Eduardo Malagoni

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Carlos Eduardo Malagoni

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Vito Chiarella Neto

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Vito Chiarella Neto

  	
   

  
	
   

  	
  Title:

  	
  Attorney-in-fact

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HSBC BANK USA, NATIONAL ASSOCIATION,

  as Trustee and Paying Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Frank J. Godino

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Frank J. Godino

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
					

 

42

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  : ss.

  
	
  COUNTY OF NEW YORK

  	
  )

  

 

On this      day of            ,
2004, before me, a notary public within and for said county, personally
appeared                      ,
to me personally known who being duly sworn, did say that he was the                           
of Tevecap S.A., one of the persons described in and which executed the
foregoing instrument, and acknowledges said instrument to be the free act and
deed of said corporation.

 

 

 

[NOTARIAL SEAL]

 

43

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  : ss.

  
	
  COUNTY OF NEW YORK

  	
  )

  

 

On this       day of            ,
2004, before me, a notary public within and for said county, personally
appeared                      ,
to me personally known who being duly sworn, did say that he is the
attorney-in-fact of HSBC Bank USA, National Association, one of the persons
described in and which executed the foregoing instrument, and acknowledges said
instrument to be the free act and deed of said corporation.

 

 

 

[NOTARIAL SEAL]

 

44

 

EXHIBIT A

 

[FORM OF NOTE]

 

[Global Notes Legend]

 

UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL
NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.

 

45

 

	
  No. [  ]

  	
  Principal Amount US$[ ]

  
	
   

  	
   

  
	
   

  	
  CUSIP NO. 88162X AD 8

  	
   

  

 

12.625% Senior Note due 2009

 

Tevecap S.A., a sociedade
anônima organized under the laws of the Federative Republic of Brazil promises
to pay to [  ], or registered assigns,
the principal sum of [  ] Dollars on November 26,
2009 or such other amount as is shown on the Register on such date in respect
of this Note.

 

Interest Payment
Dates:  May 26 and November 26.

 

Record Dates:  May 1 and November 1.

 

Additional provisions of
this Note are set forth on the other side of this Note.

 

	
  Dated:               ,
  2004

  	
  TEVECAP S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE OF

  	
   

  
	
  AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  HSBC BANK USA, NATIONAL ASSOCIATION

  	
   

  
	
  as Trustee, certifies
  that this is one of

  	
   

  
	
  the Notes referred to
  in the Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  	
   

  

 

46

 

[FORM OF REVERSE SIDE OF NOTE]

 

12.625% Senior Note due 2004

 

1.                                       Interest

 

Tevecap S.A., a sociedade
anônima organized under the laws of the Federative Republic of Brazil (such
entity and its successors and assigns under the Indenture hereinafter referred
to, being herein called the “Company”) promises to pay interest on the
principal amount of this Note at the rate per annum shown above.

 

The Company will pay
interest semiannually on May 26 and November 26 of each year,
commencing on May 26, 2005. 
Interest on the Notes will accrue from the most recent date to which
interest has been paid on the Notes or, if no interest has been paid, from November 26,
2004.  The Company shall pay interest on
overdue principal or premium, if any, at the rate borne by the Notes to the
extent lawful.  Interest will be computed
on the basis of a 360-day year of twelve 30-day months.

 

2.                                       Method
of Payment

 

By at least 10:00 a.m.
(New York City time) on the Business Day prior to the date on which any
principal of or interest on any Note is due and payable, the Company shall
irrevocably deposit with the Trustee or the Paying Agent money sufficient to
pay such principal, premium, if any, and/or interest.  The Company will pay interest (except
defaulted interest) to the Persons who are registered Holders of Notes at the
close of business on the May 1 or November 1 next preceding the
interest payment date even if Notes are cancelled, repurchased or redeemed
after the record date and on or before the interest payment date.  Holders must surrender Notes to a Paying
Agent to collect principal payments.  The
Company will pay principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private
debts.  However, the Company may pay
principal and interest by check payable in such money.  It may mail an interest check to a Holder’s
registered address.  Any such interest
not punctually paid, or duly provided for, and interest on such defaulted
interest at the then applicable interest rate borne by the Notes, to the extent
lawful, shall forthwith cease to be payable to the Holder on a regular record
date, and may be paid to the person in whose name this Note (or one or more
Predecessor Notes) is registered at the close of business on a special record
date for the payment of such defaulted interest to be fixed by the Trustee,
notice of which shall be given to Holders of Notes not less than 10 days prior
to such special record date, or may be paid at any time in any other lawful
manner not inconsistent with the requirements of any Notes exchange on which
the Notes may be listed, and upon such notice as may be required by the
Depository or any such clearing agency or exchange, all as more fully provided
in such Indenture.  In addition, the
Company will pay to the Holder of this Note such Additional Amounts as may
become payable under Section 4.2 of the Indenture.

 

3.                                       Paying
Agent and Registrar

 

Initially, the HSBC Bank
USA, National Association, a national banking association (“Trustee”), will act
as Paying Agent and Note Registrar. 
Initially, HSBC Bank USA, National Association will act as Principal
Paying Agent.  The Company may appoint
and change any Paying Agent, Registrar or co-registrar without notice to any
Noteholder.  The Company may act as
Paying Agent, Note Registrar or co-registrar.

 

47

 

4.                                       Indenture

 

The Company issued the
Notes under an Indenture dated as of December    , 2004 (as
it may be amended or supplemented from time to time in accordance with the
terms thereof, the “Indenture”), between the Company and the Trustee.  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on
the date of the Indenture (the “Act”). 
Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture.  The
Notes are subject to all such terms, and Noteholders are referred to the
Indenture and the Act for a statement of those terms.

 

The Notes are general
unsecured senior obligations of the Company, ranking pari passu
with all other existing and future general unsecured senior indebtedness of the
Company and senior in right of payment to all other existing and future
subordinated indebtedness of the Company. 
This Note is one of the Notes referred to in the Indenture.

 

5.                                       Scheduled Redemption

 

Unless previously
redeemed, or purchased or cancelled, each Note will be redeemed (subject as
provided in subsection (b) below in three equal installments on the
dates and in the amounts set out below (each an “Installment Amount”):

 

	
  Scheduled Redemption Date

  	
   

  	
  Installment Amount

  
	
   

  	
   

  	
   

  
	
  November 26, 2007 (the “First Redemption Date”)

  	
   

  	
  33.33% of aggregate principal amount

  
	
  November 26, 2008 (the “Second Redemption
  Date”)

  	
   

  	
  33.33% of aggregate principal amount

  
	
  November 26, 2009 (the “Third Redemption Date”)

  	
   

  	
  33.34% of aggregate principal amount

  

 

6.                                       Adustment
of Installment Amounts:

 

(i)                                     If
the Exchange Rate Increase with respect to the First Redemption Date is greater
than the Inflation Rate Increase with respect to the First Redemption Date,
then:

 

(I)                                    the
Installment Amount due on the First Redemption Date shall be reduced by the
amount of the Exchange Adjustment applicable to the First Redemption Date;

 

(II)                                the
Installment Amount due on the Second Redemption Date shall be increased by the
amount which is equal to 50% of the amount of the Exchange Adjustment
applicable to the First Redemption Date; and

 

(III)                            the
Installment Amount due on the Third Redemption Date shall be increased by the
amount which is equal to 50% of the amount of the Exchange Adjustment
applicable to the First Redemption Date.

 

(ii)                                  If
the Exchange Rate Increase with respect to the Second Redemption Date is
greater than the Inflation Rate Increase with respect to the Second Redemption
Date, then:

 

(I)                                    the
Installment Amount due on the Second Redemption Date (as adjusted, if
applicable, in accordance with clause (6)(i)(II) above) shall be reduced by the
amount of the Exchange Adjustment applicable to the Second Redemption Date; and

 

48

 

(II)                                the
Installment Amount due on the Third Redemption Date (as adjusted, if
applicable, in accordance with clause (6)(i)(III) above) shall be
increased by the amount of the Exchange Adjustment applicable to the Second
Redemption Date.

 

(iii)                               If
the Installment Amount due on any Redemption Date is reduced as set forth in
clauses (6)(i) or (6)(ii) above, then interest shall continue to
accrue on the amount of such reduction in accordance with the indenture until
paid in full.

 

7.                                       Optional
Redemption

 

On any of the First
Redemption Date, the Second Redemption Date, or the Third Redemption Date, the
Company may redeem all of the new notes, at a redemption price of 100% of the
outstanding principal amount of the new notes so redeemed, plus accrued and
unpaid interest, if any, to the Redemption Date (subject to the right of
holders of record on the relevant record date to receive interest due on the
relevant interest payment date).

 

8.                                       Subsidiary
Guarantee

 

To guarantee the due and
punctual payment of the principal and interest, if any, on the Notes and all
other amounts payable by the Company under the Indenture and the Notes when and
as the same shall be due and payable, whether at maturity, by acceleration or
otherwise, according to the terms of the Notes and the Indenture, the
Subsidiary Guarantors, if any, will unconditionally guarantee such obligations
on a senior basis pursuant to the terms of the Indenture.

 

9.                                       Tax
Redemption

 

The Notes may be redeemed
at the option of the Company, in whole but not in part, at any time prior to
maturity if as the result of any change in or amendment to the laws,
regulations or rulings of Brazil or any political subdivision or taxing
authority thereof or therein, or any change in the application or official
interpretation of such laws, regulations or rulings (including the holding of a
court of competent jurisdiction), the Company or any Subsidiary Guarantor has
or will become obligated to pay Additional Amounts (excluding interest and
penalties) in excess of the Additional Amounts that the Company would be
obligated to pay if Taxes (excluding interest and penalties) were imposed with
respect to such payments of interest at a rate of 15.0% and such obligation
cannot be avoided by the Company or the Subsidiary Guarantors, as the case may
be, taking reasonable measures available to them, then the Company may, at its
option, redeem or cause the redemption of the Notes, as a whole but not in
part, upon not more than 60 nor less than 30 days’ notice given in the manner
set forth in Section 3.3 of the Indenture to the Holders (with
copies to the Trustee and each Paying Agent) at 100% of their principal amount,
together with accrued interest to (but excluding) the date fixed for
redemption, plus any such Additional Amounts payable with respect to such
principal amount and interest.  Prior to
the giving of notice of redemption of the Notes as described herein and as a
condition to any such redemption, the Company will deliver to the Trustee an
Officers’ Certificate (together with a copy of a written Opinion of Counsel to
the effect that the applicable rate has so increased, or the Company or any
Subsidiary Guarantor has or will become so obligated to pay Additional Amounts
as a result of such change or amendment), stating that the Company is entitled
to effect such redemption and setting forth in reasonable detail a statement of
facts relating thereto.  No notice of
redemption shall be given earlier than 90 days prior to the earliest date on
which the Company or any Subsidiary Guarantor would be obligated to pay such
Additional Amounts were a payment in respect of the Notes then due and, at the
time such notice of redemption is given, such obligation to pay such Additional
Amounts remains in effect.

 

49

 

10.                                 Notice
of Redemption

 

Notice of redemption will
be mailed at least 30 days but not more than 60 days before the redemption date
to each Holder of Notes to be redeemed at his registered address.  Notes in denominations of principal amount
larger than US$1.00 may be redeemed in part but only in whole multiples of
US$1.00.  If money sufficient to pay the
redemption price of and accrued and unpaid interest on all Notes (or portions
thereof) to be redeemed on the redemption date is deposited with the Paying
Agent on or before the redemption date and certain other conditions are
satisfied, on and after such date interest ceases to accrue on such Notes (or
such portions thereof) called for redemption.

 

11.                                 Denominations;
Transfer; Exchange

 

The Notes are in
registered form without coupons in denominations of principal amount of US$1.00
and any integrals multiple thereof.  A
Holder may transfer or Notes in accordance with the Indenture.  The Note Registrar may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents
and to pay any taxes and fees required by law or permitted by the
Indenture.  The Note Registrar need not
register the transfer of or exchange of any Notes selected for redemption
(except, in the case of a Note to be redeemed in part, the portion of the Note
not to be redeemed) during a period beginning at the opening of business 15
days before the mailing of a notice of redemption of the Notes selected for
redemption and ending at the close of business on the day of such mailing.

 

12.                                 Persons
Deemed Owners

 

The registered holder of
this Note may be treated as the owner of it for all purposes.

 

13.                                 Unclaimed
Money

 

If money for the payment
of principal or interest remains unclaimed for two years, the Trustee or Paying
Agent shall pay the money back to the Company at its request.  After any such payment, Holders entitled to
the money must look only to the Company and not to the Trustee for payment.

 

14.                                 Defeasance

 

Subject to certain
conditions set forth in the Indenture, the Company at any time may terminate
some or all of its obligations under the Notes and the Indenture if the Company
deposits with the Trustee money or U.S. Government Obligations for the payment
of principal and interest on the Notes to redemption or maturity, as the case
may be.

 

15.                                 Amendment,
Waiver

 

Subject to certain
exceptions set forth in the Indenture, (i) the Indenture or the Notes may
be amended with the written consent of the Holders of at least a majority in
principal amount of the outstanding Notes and (ii) any default or
noncompliance with any provision may be waived with the written consent of the
Holders of a majority in principal amount of the outstanding Notes.  Subject to certain exceptions set forth in
the Indenture, without the consent of any Noteholder, the Company and the
Trustee may amend the Indenture or the Notes to cure any ambiguity, omission,
defect or inconsistency or to provide for uncertificated Notes in addition to
or in place of certificated Notes, or to add guarantees with respect to the
Notes or to secure the Notes, or to add additional covenants or surrender
rights and powers conferred on the Company for the benefit of the Noteholders,
or to comply with any requirements

 

50

 

of the SEC in
connection with qualifying the Indenture under the Act, or to make any change
that does not adversely affect the rights of any Noteholder, or to provide for
the issuance of Notes.

 

16.                                 Defaults
and Remedies

 

Under the Indenture,
Events of Default include (i) a default in any payment of interest on any
Note when due, continued for 30 days; (ii) a default in the payment of
principal or premium, if any, of any Note when due at its Stated Maturity, upon
optional redemption, upon required repurchase, upon declaration or otherwise; (iii) the
failure by us to comply with any other agreements contained in the Indenture
for 45 days after notice (in each case, other than a failure to purchase Notes
which shall constitute an Event of Default under clause (ii) above); (iv) indebtedness
of ours (other than the Excluded Debt) is not paid within any applicable grace
period after failure to pay when due or is accelerated by the holders thereof
because of a default (the “cross acceleration provision”); (v) the
outstanding Excluded Debt that is held by Persons who are not Affiliates of the
Company is not paid within any applicable grace period after failure to pay
when due or is accelerated by the holders thereof because of a default and the
total amount of such indebtedness unpaid or accelerated exceeds US$35 million; (vi) certain
events of bankruptcy, insolvency or reorganization of ours (the “bankruptcy
provisions”); (vii) any judgment or decree for the payment of money in
excess of US$ 5 million (to the extent not covered by insurance as acknowledged
in writing by the insurer) is rendered against us and such judgment or decree
shall remain undischarged or unstayed for a period of 60 days after such
judgment becomes final and non-appealable (the “judgment default provision”); (viii) there
shall have occurred any seizure, compulsory acquisition, expropriation or
nationalization of material assets of ours and our Subsidiaries; or (ix) the
failure of any Subsidiary Guarantee to be in full force or the denial or
disaffirmation by any Subsidiary Guarantor of its obligation under the
Indenture or Subsidiary Guarantee. 
However, a default under clause (iv) will not constitute an Event
of Default until the Trustee or the holders of 25.0% in principal amount of the
outstanding Notes notify us of the default and the Company does not cure such
default within the time specified in clause (iv) hereof after receipt of
such notice.  If an Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Notes may declare all the Notes to be due and payable
immediately (including all Additional Amounts thereon).  Certain events of bankruptcy or insolvency
are Events of Default which will result in the Notes being due and payable
immediately upon the occurrence of such Events of Default.

 

Noteholders may not
enforce the Indenture or the Notes except as provided in the Indenture.  The Trustee may refuse to enforce the
Indenture or the Notes unless it receives reasonable indemnity or Note.  Subject to certain limitations, Holders of a
majority in principal amount of the Notes may direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Noteholders notice of any continuing Default or Event
of Default (except a Default or Event of Default in payment of principal or
interest) if it determines that withholding notice is in their interest.

 

17.                                 Trustee
Dealings with the Company

 

Subject to certain
limitations set forth in the Indenture, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with and collect obligations owed to it by the Company or
its affiliates and may otherwise deal with the Company or its affiliates with
the same rights it would have if it were not Trustee.

 

18.                                 No
Recourse Against Others

 

A director, officer,
employee or stockholder, as such, of the Company or any Subsidiary Guarantor
shall not have any liability for any obligations of the Company or any
Subsidiary Guarantor under the Notes or the Indenture or for any claim based
on, in respect of or by reason of such obligations

 

51

 

or their
creation.  By accepting a Note, each
Noteholder waives and releases all such liability.  The waiver and release are part of the
consideration for the issue of the Notes.

 

19.                                 Authentication

 

This Note shall not be
valid until an authorized signatory of the Trustee (or an authenticating agent
acting on its behalf) manually signs the certificate of authentication on the
other side of this Note.

 

20.                                 Abbreviations

 

Customary abbreviations
may be used in the name of a Noteholder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entirety), JT TEN (=joint
tenants with rights of survivorship and not as tenants in common), CUST
(=custodian) and U/G/M/A (=Uniform Gift to Minors Act).

 

21.                                 CUSIP
and CINS Numbers

 

Pursuant to a
recommendation promulgated by the Committee on Uniform Note Identification
Procedures the Company has caused CUSIP and/or CINS numbers to be printed on
the Notes and has directed the Trustee to use such numbers in notices of
redemption as a convenience to Noteholders. 
No representation is made as to the accuracy of such numbers either as
printed on the Notes or as contained in any notice of redemption and reliance
may be placed only on the other identification numbers placed thereon.

 

22.                                 Governing
Law

 

This Note shall be
governed by, and construed in accordance with, the laws of the State of New
York but without giving effect to applicable principles of conflicts of law to
the extent that the application of the laws of another jurisdiction would be
required thereby.

 

23.                                 Additional
Amounts

 

The Company will pay to
the Holders of Notes such Additional Amounts as may become payable under Section 4.2
of the Indenture.

 

24.                                 Conversion
of Currency

 

U.S. dollars are the sole
currency of account and payment for all sums payable by the Company and the Subsidiary
Guarantors under or in connection with the Notes, the Subsidiary Guarantees or
the Indenture, including damages.  The
Company and each Subsidiary Guarantor have agreed that the provisions of Section 10.17
of the Indenture shall apply to conversion of currency in the case of the
Notes, Subsidiary Guarantees and the Indenture. 
Among other things, Section 10.17 specifies that if there is
a change in the rate of exchange prevailing between the Business Day before the
day on which a judgment is given or an order or enforcement is made, as the
case may be (or such other date as a court shall determine), and the date of
receipt of the amount due, the Company or the relevant Subsidiary Guarantor, as
the case may be, will pay such additional (or, as the case may be, such lesser)
amount, if any, as may be necessary so that the amount paid in the judgment
currency when converted at the rate of exchange prevailing on the date of
receipt will produce the amount in the Base Currency originally due.  In the event that on any payment date in
respect of the Notes or any Subsidiary Guarantee any restrictions or
prohibition of access to the Brazilian foreign exchange market exists, the
Company and each

 

52

 

Subsidiary Guarantor
agree to pay all amounts payable under the Notes and the Subsidiary Guarantees
in the currency of the Notes by means of any legal procedure existing in Brazil
(except commencing legal proceedings against the Central Bank of Brazil), on
any due date for payment under the Notes, for the purchase of the currency of
such Notes.  All costs and taxes payable
in connection with the procedures referred to in this paragraph shall be borne
by the Company and the Subsidiary Guarantors.

 

25.                                 Agent
for Service; Submission to Jurisdiction; Waiver of Immunities

 

The Company and each
Subsidiary Guarantor have appointed CT Corporation System, currently located at
111 Eighth Avenue, 13th Floor, New York, New York 10011, as its
authorized agent upon which process may be served in any suit, action or
proceeding with respect to, arising out of, or relating to, this Note, the
Indenture or any Subsidiary Guarantee (other than an insolvency, liquidation or
bankruptcy proceeding or any other proceeding in the nature of an in rem or quasi in rem
proceeding), that may be instituted in any Federal or state court in the State
of New York, The City of New York, the Borough of Manhattan, or brought under
Federal or state securities laws or brought by the Trustee (whether in its
individual capacity or in its capacity as Trustee hereunder) and have agreed
that there shall, at all time, be at least one agent for service of process for
the Company and the Subsidiary Guarantors appointed and acting in accordance
with the provisions of Section 10.16 of the Indenture relating to
agent for service of process.  To the
extent that the Company or any Subsidiary Guarantor has or hereafter may
acquire any immunity from jurisdiction of any court or from any legal process
(whether through service of notice, attachment prior to judgment, attachment in
aid of execution, execution or otherwise) with respect to itself or its
property, the Company and each Subsidiary Guarantor have irrevocably waived
such immunity in respect of its obligations under the Indenture and this Note
and the Guarantee, to the extent permitted by law.

 

The Company will furnish
to any Noteholder upon written request and without charge to the Noteholder a
copy of the Indenture which has in it the text of this Note in larger type.

 

Requests may be made
to:  Tevecap S.A.

Attention of Chief Financial Officer

 

53

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

(Print or type assignee’s name, address and zip code)

 

(Insert assignee’s soc. sec. or tax I.D. No.)

 

and irrevocably appoint agent to transfer this Note on the books of the
Company.  The agent may substitute
another to act for him.

 

 

	
  Date:

  	
   

  	
   

  	
  Your Signature 

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
									

 

 

(Signature must be
guaranteed)

 

 

Sign exactly as your name appears on the other side of this Note.

 

54

 

EXHIBIT B

 

[FORM OF GUARANTEE]

 

For value received, the
undersigned hereby unconditionally guarantees, as principal obligor and not
merely as a surety, to the Holder of this Note, the cash payments in United
States dollars of principal, premium, if any, and interest on this Note (and
including Additional Amounts payable thereon) in the amounts and at the times
when due, together with interest on the overdue principal, premium, if any, and
interest, if any, on this Note, if lawful, and the payment or performance of
all other obligations of the Company under the Indenture or the Notes, to the
Holder of this Note and the Trustee, all in accordance with and subject to the
terms and conditions of this Note and the Indenture, including Article IX
of the Indenture.  Capitalized terms used
but not defined herein shall have meanings ascribed to them in the Indenture,
dated as of December    , 2004, among the Company, HSBC
Bank USA, National Association, as Trustee and Principal Paying Agent, as
amended or supplemented.

 

The obligations of the
undersigned to the Holders of Notes and to the Trustee are expressly set forth
in Article IX of the Indenture and reference is hereby made to the
Indenture for the precise terms of the Guarantee.

 

IN WITNESS WHEREOF, each
Subsidiary Guarantor has caused this endorsement to be duly executed.

 

               ,
2004

 

55

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]